Potash Corp Boosts Sinochem Holdings

TORONTO - Feb 1/06 - SNS -- Potash Corporation of Saskatchewan Inc. intends to exercise its option to purchase an additional 10.01% of the shares in Sinochem Hong Kong Holdings Limited, more commonly known as Sinofert.

The option exercise will raise PotashCorp's ownership interest in the company to 20%, assuming no further changes to Sinofert's shareholdings.

Under a Strategic Investment Agreement signed on June 7, 2005 with a subsidiary of Sinochem Corporation, PotashCorp purchased an initial 9.99% interest in Sinofert, paying US $97 million for its initial interest and held the right to increase its ownership position no earlier than January 27, 2006.

The total cost of the option exercise is expected to approximate US $125 million, with closing expected before the end of February 2006. PotashCorp will have the right to nominate a second member to the Sinofert Board of Directors at that time.