PhosAgro Completes Consolidation of Metachem Assets

For Immediate Release 17 July 2013 PhosAgro Completes Consolidation of Metachem Assets Moscow - PhosAgro ("PhosAgro" or "the Company") (Moscow Exchange, LSE: PHOR), aleading global vertically integrated phosphate-based fertilizer producer, hascompleted the consolidation of the core assets of Metachem, which includeproduction of phosphoric and sulphuric acids, potassium sulphate andtripolyphosphate. PhosAgro increased its stake in Metachem from 74.76% to 100% of the enterprise. Through a sequence of related transactions, PhosAgro sold the non-core assetsof Metachem to the former minority owners of Metachem. The non-core assetsincluded 100% of the shares of Pikalevskaya Soda and property related to cementproduction. With the income from these related transactions, including the sale of non-coreassets, PhosAgro's expenditures on the full consolidation of 100% of Metachemamounted to slightly more than USD 14 million. Currently Metachem is constructing a new, 100 kt per annum PKS/NPKS fertilizerproduction line, which is scheduled for launch in the beginning of next year.Total capital expenditure on this project is expected to be USD 12 million. For further information please contact: OJSC PhosAgro+7 495 232-96-89Irina Evstigneeva, Head of Corporate Finance and Investor RelationsTimur Belov, Press Officer M:CommunicationsSam [email protected]+44 7554 993 032 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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