2005 Canpotex Sinochem Sales Accord

NEW YORK - Nov 5/04 - SNS -- Canpotex Limited, the offshore sales association for Saskatchewan potash producers, has entered into an agreement to sell 2.1 million metric tons (MT) of potash to Sinochem Corporation in 2005.

The agreement includes 1.5 million MT of red standard grade potash, 300,000 MT of granular grade potash, and 300,000 MT of white standard grade potash covering the 2005 calendar year.

The agreement provides for FOB Vancouver price increases of US$40.00 and US$43.00 per metric tonne, respectively, for red standard potash and white standard potash over 2004 contract prices. The granular grade potash will be priced at a $10 per tonne premium over the red standard potash.

The 2005 agreement covers the second year of the three-year "Memorandum of Understanding" between Canpotex and Sinochem.

Canpotex member companies are: Agrium Inc., The Mosaic Company and Potash Corporation of Saskatchewan Inc.. Agrium supplies Canpotex with 9.13% of its potash product, Mosaic 36.67% and PotashCorp 54.20%.

Canpotex Limited of Saskatoon, Saskatchewan was established in 1970 and is the exclusive offshore marketing company for its members, the Saskatchewan potash producers.