Phosagro S Regulatory News (PHOR)

OJSC PHOSAGRO - PhosAgro and Orica Sign Long Term Agreement

PR Newswire

London, May 31

PhosAgro and Orica Sign Long Term Agreement

Moscow - PhosAgro (Moscow Exchange, LSE: PHOR), a leading global verticallyintegrated phosphate-based fertilizer producer, announces that it has signed anagreement worth over RUB 13.57 billion with CJSC Orica CIS (part of theAustralian corporation Orica Limited*, LSE: ORI) for the supply of emulsionexplosives to PhosAgro subsidiary Apatit from 2015 to 2024.

The Russian division of Orica won in a competitive bidding process that waspart of a project to start using modern, safe emulsion explosives for miningwork at Apatit.

The parties agreed that Orica will finance the construction of a modernemulsion explosives production complex with a capacity of 70 thousand tonnesper year at Apatit, which is to be completed by 2015. The facility will utiliseammonium nitrate produced by PhosAgro-Cherepovets, with which the company willsign an agreement governing purchase prices and volumes.

Prior to completion of the new production complex, Orica will supply emulsionexplosives to Apatit from other production facilities. By 2014 PhosAgro plansto use emulsion explosives for up to 90% of the underground blasting at Apatit.

PhosAgro CEO Maxim Volkov said: "The technology offered by Orica will enable usto make a major leap forward in the safety of our blasting operations whilealso improving efficiency."

For further information please contact:

OJSC PhosAgro

+7 495 231 2747

Irina Evstigneeva, Head of Corporate Finance and Investor Relations

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.

*Orica is the world's largest producer and supplier of explosives for themining industry, with offices in more than 50 countries.

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