PhosAgro and INCRO Sign Contract for New NPK/NPS/NP Line

For Immediate Release 19 July 2013 PhosAgro Signs Contract with INCRO for Design Engineering on 450 ktpa FlexibleNPK/NPS/NP Production Line in Saratov Oblast Moscow - PhosAgro ("PhosAgro" or "the Company") (Moscow Exchange, LSE: PHOR), aleading global vertically integrated phosphate-based fertilizer producer, hassigned a contract with INCRO S.A. (Spain), one of the world's leadingengineering companies for licensed mineral fertilizer production technologies,to conduct design engineering work on a new production line at Balakovo MineralFertilizers in the Saratov region. The contract involves the development of detailed engineering specificationsfor a new NPK/NPS/NP production line with a 450 ths tonne per year productioncapacity, using technology licensed from INCRO. Management Company PhosAgro AG CEO Mikhail Rybnikov said: "This project willhelp PhosAgro to achieve its strategic goal of increasing internal processingof phosphate rock, while also significantly increasing our product assortmentto meet domestic and international demand." PhosAgro is one of the largest suppliers of complex NPK fertilizers to thedomestic market, providing Russian agricultural producers with the most widelyused fertilizer grades. Complex NPK fertilizers provide for the optimal balancebetween nitrogen, phosphor and potassium nutrients, which are essential forincreasing crop output. In 2012 PhosAgro produced 1,644 ths tonnes of complex NPK fertilizers at itsPhosAgro-Cherepovets site. With the launch of the new production line atBalakovo Mineral Fertilizers, PhosAgro will secure its leading position amongRussian NPK producers. Based on previous estimates, the capital expenditure for the new NPK productionline at PhosAgro's Balakovo site is expected to amount to around USD 190million. The project is due to be implemented in 2013-2016. For further information please contact: OJSC PhosAgro +7 495 232-96-89Irina Evstigneeva, Head of Corporate Finance and Investor RelationsTimur Belov, Press Officer M:Communications Sam [email protected]+7 916 306 6112 Notes to Editors PhosAgro is a leading global vertically integrated phosphate-based fertiliserproducer. The Group focuses on the production of phosphate-based fertilisers,feed phosphate and high-grade phosphate rock (with P2O5 content of not lessthan 39 percent), as well as ammonia and nitrogen-based fertilisers. The Group is the largest phosphate-based fertiliser producer in Europe, thelargest producer of high-grade phosphate rock worldwide and the second largestMAP/DAP producer in the world (excluding China), according to Fertecon.PhosAgro is also a leading producer of MCP feed phosphates in Europe, and theonly producer in Russia. PhosAgro has 2.1 billion tonnes of resources (according to JORC) of highquality apatite-nepheline ore, representing over 75 years of production. TheGroup also controls substantial Al2O3 resources and has 41% of Russia's rareearth oxides resources according to the G.P. Luzin Institute of EconomicProblems of the Kolskiy Scientific Centre of the Russian Academy of Sciences,2010). The Group's mines and phosphate rock production facilities are located in themountainous areas of the Kola Peninsula in the Murmansk region of northwestRussia, whereas its fertiliser and feed phosphate production assets are locatednear the city of Cherepovets in the Vologda region and near the city ofBalakovo in the Saratov region of southwest part of European Russia. PhosAgro's2012 IFRS revenue was over USD 3.4 bln and EBITDA was USD 1.1 bln. The Сompany's net debt/EBITDA ratio was 0.77 at 31 December 2012.

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