PhosAgro Board Members Visit Production Sites

For Immediate Release 16 September 2014 PhosAgro Board Members Visit Production Sites Moscow - The Board of Directors of PhosAgro (Moscow Exchange, LSE: PHOR)visited the company's main production sites, PhosAgro-Cherepovets and Apatit,on the eve of the Company's Extraordinary General Meeting of Shareholders. PhosAgro CEO Andrey Guryev said: "The Board of Directors, who are tasked withdetermining the Company's sustainable growth strategy, decided to review thequality of the work and the management of the assets where PhosAgro's maininvestment projects are currently underway. This is an important part of ourwork on developing recommendations to further strengthen PhosAgro's position asa global leader in the production of Phosphate-based fertilizers, as well asfor identifying and mitigating risks related to the implementation of ourstrategic goals." At PhosAgro-Cherepovets, the Board members were shown the urea production lineand power generation plant that were launched in 2012, and heard about plansfor the construction of new ammonia and urea production capacities.PhosAgro-Cherepovets has undergone a series of modernisations and renovationsin recent years to increase efficiency. PhosAgro Board of Directors Chairman Sven Ombudstvedt said: "It was veryimportant for the Board of Directors to see how PhosAgro's main productionfacilities are developing and to see first-hand how the major investmentprojects approved by the Board are being implemented. The Company's investmentprogramme includes new production lines for ammonia, urea and other products. "The work due to be completed over the next 3-4 years will result in asignificant expansion of PhosAgro's production capacity, which will be aserious step toward strengthening the Company's competitive strengths. Thegoals we have set before ourselves are quite challenging, but with experienceimplementing similar projects and people confident in their ability, I am surethat PhosAgro will succeed." The Chairman of the Board of Directors of PhosAgro paid special attention tothe need to increase efficiency, both in the implementation of investmentprojects and at existing PhosAgro-Cherepovets production lines. Sven Ombudstvedt added, "We must increase the efficiency of technicalmaintenance programmes. It is especially important to pay attention toworkplace safety and environmental protection." PhosAgro CEO Andrey Guryev supported Sven Ombudstvedt's opinion. Andrey Guryev said, "In terms of the technology and equipment at our productionfacilities, PhosAgro is one of the leading fertilizer producers in the world.With modern production lines built using the best available technologies, wemust ensure that they work efficiently, using leading practices in industrialand workplace safety and environmental protection." At Apatit, the world's largest producer of high-grade phosphate rock, Boardmembers visited ore shaft No 2 at the Kirovsky underground mine, theconstruction of which will help to increase mining volumes to 14 million tonnesper year by 2016. The Board members also had a demonstration of PhosAgro'srecently-installed automated fleet dispatch system, which uses computers andGPS locators to maximise the efficiency of the Company's mining fleet. PhosAgro Board of Directors member Marcus Rhodes said: "Thanks toimplementation of the strategy in the areas of modernisation and expansion ofproduction facilities, as well as improving corporate governance, the Companyis well-positioned to increase its market capitalisation and strengthen itscompetitive position. "After visiting the beneficiation plant and the underground mine, I was pleasedwith what I saw and impressed with the high quality of the equipment, as wellas the efficient way in which production processes are organised. "I have seen many Russian management teams, but the people I met here left anespecially strong impression - they are well-qualified, with a clearunderstanding of the technical aspects of their production facilities and therole that each of their divisions play in the overall production system at thesite. "Through successful implementation of the modernisation goals set out in itsstrategy, PhosAgro has succeeded in upgrading these production facilities to beon a par with some of the best in the world. Constant efforts to improveefficiency, combined with flexible production and sales models, mean thatPhosAgro is able to sell its high-quality fertilizer products at premium pricesnearly anywhere in the world, which delivers healthy profitability levels." For further information please contact: OJSC PhosAgroIrina Evstigneeva, Head of Corporate Finance and Investor [email protected]+7 495 231 3115 Timur Belov, Press Officer+7 495 232 9689 EMSam [email protected]: +44 7554 993 032t: +7 499 918 3134 Notes to Editors PhosAgro is one of the leading global vertically integrated phosphate-basedfertilizer producers. The Company focuses on the production of phosphate-basedfertilizers, feed phosphate and high-grade phosphate rock (P2O5 content of notless than 39%), as well as ammonia and nitrogen-based fertilizers. The Company 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 one of the leading producers of feed phosphates (MCP) inEurope, and the only producer in Russia. PhosAgro has 2.1 billion tonnes of resources (according to JORC) of highquality apatite-nepheline ore. The Company's mines and phosphate rockproduction facilities are located in the mountainous areas of the KolaPeninsula in the Murmansk region of northwest Russia, whereas its fertilizerand feed phosphate production assets are located near the city of Cherepovetsin the Vologda region and near the city of Balakovo in the Saratov region ofsouthwest part of European Russia. PhosAgro's 2013 IFRS revenue was over USD 3.3 bln and EBITDA was USD 752 mln.The Сompany's net debt/EBITDA ratio was 1.8 at 31 December 2013.

For further information on PhosAgro please visit: www.PhosAgro.com