PhosAgro Fertilizer Production up 3.7% y-o-y in 2014

For Immediate Release 2 February 2015 PhosAgro Fertilizer Production up 3.7% y-o-y in 2014 Moscow - PhosAgro (Moscow Exchange, LSE: PHOR), one of the world's leadingvertically integrated phosphate-based fertilizer producers, announces itsproduction results for the year ended 31 December 2014. Total fertilizer production and sales increased year-on-year in 2014 by 3.7%and 2.7%, respectively. Production of phosphate-based fertilizers and feedphosphates in 2014 increased by 3.2%, while production of nitrogen-basedfertilizers increased by 5.2% year-on-year. PhosAgro's production and sales volumes for the year 2014 are summarized in thetables below. Production volumes by type (kmt) 2014 2013 Change y-o-y Phosphate-based fertilizers and 4,770.3 4,620.2 3.2%MCP Nitrogen-based fertilizers 1,377.9 1,309.6 5.2% TOTAL fertilizers 6,148.2 5,929.8 3.7% Apatit mine and beneficiation 8,440.8 8,703.6 (3.0%)plant Other products** 156.6 150.3 4.2% Sales volumes by type (kmt) 2014 2013 Change y-o-y Phosphate-based fertilizers and 4,707.7 4,672.1 0.8%MCP Nitrogen-based fertilizers 1,384.5 1,262.2 9.7% TOTAL fertilizers 6,092.2 5,934.3 2.7% Apatit mine and beneficiation 3,328.8 3,912.0 (14.9%)plant* Other products** 349.4 313.0 11.6% Commenting on the full year 2014 operational results, PhosAgro CEO AndreyGuryev said: "We saw solid demand for our products this year: Brazil, one ofthe world's largest consumers of mineral fertilizers, increased imports ofphosphate-containing fertilizers by over 10%; India increased imports by 4%year-on-year, though still remaining at the lowest consumption/applicationrates in the past seven years. "PhosAgro's domestic market demonstrated the best growth rates in consumptionof phosphate-containing fertilizers, with a more than 30% increase in NPKconsumption and 5% growth in MAP. "The pricing environment has also been much more favorable compared to 2013,and we were again able to increase production and sales volumes of fertilizers,which I believe clearly demonstrates the success of our strategy of focusing onefficiency, modernization and debottlenecking at our production sites. "Looking forward to 2015, we believe demand will be solid again, with probablythe most significant growth rates in India, which has been significantlyunder-applying P2O5 for the past two years. Growth rates in Brazil are likelyto be slower, given that cereals prices at the moment are at their lowestlevels in six years. When considering Brazil, however, it is important tofactor in the fact that devaluation has decreased farmers' local currencycosts, which gives a significant cost advantage relative to producers whosecosts are primarily USD-denominated. In addition to this, substantially lowerUSD fuel prices have made it possible for Brazilian farmers to invest more intofertilizers in order to increase crop output. Thus we do not see anysignificant downside risk in this market. "As the global cash cost leader, we are optimistic about the Company's outlookin terms of financial performance." The table below provides a breakdown of production volumes by major product forthe year 2014: Production volumes (kmt) 2014 2013 Change y-o-y Apatit mine and beneficiation plant Phosphate rock 7,500.5 7,713.0 (2.8%) Nepheline concentrate 940.3 990.6 (5.1%) Phosphate-based fertilizers and MCP DAP/MAP 2,366.7 2,134.1 10.9% NPK 1,725.2 1,628.4 5.9% NPS 248.4 459.1 (45.9%) APP 89.7 98.6 (9.0%) MCP 252.1 247.2 2.0% PKS 58.5 0.0 - SOP 29.7 52.8 (43.8%) Nitrogen-based fertilizers AN 291.4 297.4 (2.0%) NP 120.5 109.1 10.4% Urea 966.0 903.1 7.0% Other products AlF3 27.4 27.1 1.1% STPP 129.2 123.2 4.9% Feed stock Ammonia 1,180.2 1,048.1 12.6% Phosphoric acid (kt P2O5) 1,933.9 1,764.6 9.6% Sulphuric acid (kt 4,461.3 4,338.4 2.8%monohydrate) The table below provides a breakdown of sales volumes by major product for theyear 2014: Sales volumes (kmt) 2014 2013 Change y-o-y Apatite mine and beneficiation plant Phosphate rock* 2,392.4 2,920.5 (18.1%) Nepheline concentrate 936.4 991.5 (5.6%) Phosphate-based fertilizers and MCP DAP/MAP 2,364.1 2,139.0 10.5% NPK 1,680.4 1,666.9 0.8% NPS 250.0 486.6 (48.6%) APP 89.9 79.6 12.9% MCP 250.3 245.2 2.1% PKS 45.5 0.0 - SOP 27.5 54.8 (49.8%) Nitrogen-based fertilizers AN 247.6 279.7 (11.5%) NP 120.3 110.0 9.4% Urea 1,016.6 872.5 16.5% Other products AlF3 27.1 27.1 - STPP 128.8 121.7 5.8% Ammonia 34.2 6.3 442.9% Phosphoric acid 51.6 30.5 69.2% Sulphuric acid 107.7 127.4 (15.5%) * Excluding intra-group sales** Excluding feed stock For further information please contact: OJSC PhosAgro Irina Evstigneeva, Head of Corporate Finance and Investor Relationsir@phosagro.ru+7 495 231 3115 Timur Belov, Press Officer+7 495 232 9689 EM Sam VanDerlipvanderlip@em-comms.comt: +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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