PhosAgro Approves Vol. Tender for PhosAgro-Cherepovets

For Immediate Release 04 February 2014 PhosAgro Management Board Approves Voluntary Tender Offer forPhosAgro-Cherepovets Minority Shareholders Moscow - PhosAgro ("the Company") (Moscow Exchange, LSE: PHOR), one of theworld's leading vertically integrated phosphate-based fertilizer producers,announces that its Management Board has approved a voluntary tender offer forthe purchase of PhosAgro-Cherepovets minority shareholders. PhosAgro Management Board Chairman and CEO Andrey A. Guryev said: "Thisdecision marks a further step forward in our strategy of consolidatingownership of our production facilities. This should increase profit anddividends attributable to shareholders of PhosAgro, and will simplify our legalstructure, making it more understandable and simpler for our investors." The offer price is RUB 40.9 per PhosAgro-Cherepovets ordinary share with anominal value of RUB 1.10. VTB Bank is providing a guarantee of up to RUB 10.1billion for obligations arising as a result of the tender. PhosAgro and affiliated parties currently own 87.61% of the share capital ofPhosAgro-Cherepovets. PhosAgro aims to complete the consolidation of its ownership ofPhosAgro-Cherepovets in the third quarter of 2014. For further information please contact: OJSC PhosAgro Irina Evstigneeva, Head of Corporate Finance and Investor [email protected]+7 495 231 3115 Timur Belov, Press Officer+7 495 232 9689 EM Sam [email protected]+44 7554 993 032+7 916 306 6112 Notes to Editors PhosAgro is a leading global vertically integrated phosphate-based fertilizerproducer. The Group focuses on the production of phosphate-based fertilizers,feed phosphate and high-grade phosphate rock (with P2O5 content of not lessthan 39 percent), as well as ammonia and nitrogen-based fertilizers. The Group is the largest phosphate-based fertilizer 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 fertilizer 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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