PhosAgro Commissions New PKS Fertilizer Capacity

For Immediate Release 18 February 2015 PhosAgro Commissions New PKS Fertilizer Capacity Moscow - PhosAgro (Moscow Exchange, LSE: PHOR), one of the world's leadingvertically integrated phosphate-based fertilizer producers, has commissioned anew phosphate-potash fertilizer production line with a capacity of 100 thstonnes/year (PKS-100), together with a finished product warehouse with a 1,500tonne capacity. Total investments into the project, which PhosAgro financedwith its own funds, amounted to over RUB 500 million. Leningrad region Governor Alexander Drozdenko and PhosAgro CEO Andrey Guryevattended the opening ceremony. This new fertilizer production line is an important part of PhosAgro's strategyto 2020, which was developed with the participation of the National MineralResources University in St. Petersburg. The new capacity uses leading edgetechnologies and equipment, as well as automated control systems. It is alsofully compliant with stringent environmental regulations. The technology for producing this new fertilizer grade was developed by the Y.V. Samoilov Scientific Research Institute for Fertilizers andInsectofungicides, a PhosAgro subsidiary and Russia's only R&D centre dedicatedto crop nutrients. PhosAgro subsidiary Mining and Chemical Engineeringdeveloped the documentation and engineering for the new line. The fertilizer grade is highly effective because each granule contains all ofthe nutrients. The particles are also very hard and they do not cake. This universal complex fertilizer is useful for soy and other legumes, as wellas potatoes, fruits and vegetables. The balanced nutrient mix means thefertilizer is appropriate for use anywhere in Russia and around the world(especially in Latin America). Interest in the new fertilizer grade is high inRussia, as domestic agricultural producers currently do not have access tosimilar products. PhosAgro CEO Andrey Guryev said: "This new capacity is an important part of ourstrategy to 2020, which aims to increase the number of fertilizer gradesPhosAgro produces as well as total capacity for the high-quality fertilizers wesell in Russia and worldwide." Leningrad region Governor Alexander Drozdenko said: "This investment projectwas supported by regional authorities; it has created new high-quality jobs inVolkhov, increased Metachem's tax payments, and it offers domestic agriculturalproducers a new fertilizer to help them achieve their import substitutionprogrammes." For further information please contact: OJSC PhosAgroIrina Evstigneeva, Head of Corporate Finance and Investor [email protected]+7 495 231 3115 Timur Belov, Press OfficerAnastacia Basos, Deputy Press Secretary+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 in Europe, andthe only producer of monocalcium phosphate (MCP) 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.

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