Phosagro S Regulatory News (PHOR)

For Immediate Release 14 May 2015 PhosAgro Fertilizer Production up 8% y-o-y in 1Q 2015 Moscow - PhosAgro (Moscow Exchange, LSE: PHOR), a leading global verticallyintegrated phosphate-based fertilizer producer, announces its productionresults for 1Q 2015. Total fertilizer production and sales increased year-on-year in 1Q 2015 by 8.3%and 2.8%, respectively. Production of phosphate-based fertilizers and feedphosphates for 1Q 2015 increased by 9.2%, while production of nitrogen-basedfertilizers increased by 5.1% year-on-year. PhosAgro's production and sales volumes for the 1Q 2015 are summarized in thetables below. Production volumes by type (kmt) 1Q 2015 1Q 2014 Change y-o-y Phosphate-based fertilizers and 1,342.7 1,229.3 9.2%MCP Nitrogen-based fertilizers 394.0 374.8 5.1% TOTAL fertilizers 1,736.7 1,604.1 8.3% Apatit mine and beneficiation 2,224.6 2,171.3 2.5%plant Other products** 38.6 40.2 (4.0%) Sales volumes by type (kmt) 1Q 2015 1Q 2014 Change y-o-y Phosphate-based fertilizers and 1,285.4 1,224.2 5.0%MCP Nitrogen-based fertilizers 412.5 426.7 (3.3%) TOTAL fertilizers 1,697.9 1,650.9 2.8% Apatit mine and beneficiation 724.3 873.0 (17.0%)plant* Other products** 51.7 85.6 (39.6%) Commenting on the 1Q 2015 operational results, PhosAgro CEO Andrey Guryev said:"We saw solid demand for our products from developed agricultural markets inthe first quarter of 2015, with a significant increase in sales to Europe. Wealso finally saw increased activity from Indian buyers, unlike in the previoustwo years, and we resumed sales to this market in 1Q 2015. Latin America gotoff to a relatively slow start compared to the first quarter of 2014, althoughI believe this market has returned to a normal purchasing cycle based onplanting seasonality, where most P2O5 purchases should fall on the second andthird quarters. "Our domestic market has been slow as well, but for a different reason:increased interest rates following the rouble volatility in late 2014 madeborrowing inaccessible for Russian farmers until the Government announced itsagricultural producer support programme in late February 2015. "The pricing environment for phosphate based fertilizers was favourable for thespring planting season compared to 4Q 2014: DAP recovered by over 5% andaveraged USD 483 per tonne FOB Tampa, compared to USD 459 per tonne in 4Q 2014.We were once again able to increase year-on-year production and sales volumesof fertilizers, which I believe clearly demonstrates the success of ourstrategy of focusing on efficiency, modernisation and debottlenecking at ourproduction sites. "Looking forward to the rest of 2015, I believe we will enjoy another year ofsolid demand. While USD-denominated crop prices are lower than a year ago, theweakening euro, Brazilian Real and rouble have improved the competitivepositions of local farmers operating in these currencies. In addition,substantially lower USD fuel prices have made it possible for farmers toallocate more of their budgets to fertilizers in order to increase crop output.Thus we do not see any significant downside risk in this market. "As the global cash cost leader, this gives us every reason to be veryoptimistic about PhosAgro's outlook in terms of financial performance." The table below provides a breakdown of production volumes by major product forthe 1Q 2015: Production volumes (kmt) 1Q 2015 1Q 2014 Change y-o-y Apatit mine and beneficiation plant Phosphate rock 2,020.7 2,009.1 0.6% Nepheline concentrate 203.9 162.2 25.7% Phosphate-based fertilizers and MCP DAP/MAP 703.1 570.5 23.2% NPK 442.3 498.9 (11.3%) NPS 65.2 58.0 12.4% APP 33.4 29.0 15.2% MCP 61.8 65.4 (5.5%) PKS 26.3 - - SOP 10.6 7.5 41.3% Nitrogen-based fertilizers AN 126.5 122.4 3.3% Urea 267.5 252.4 6.0% Other products AlF3 7.4 7.2 2.8% STPP 31.2 33.0 (5.5%) Feed stock Ammonia 307.7 296.4 3.8% Phosphoric acid (kt P2O5) 525.5 470.9 11.6% Sulphuric acid (kt 1,181.9 1,103.4 7.1%monohydrate) The table below provides a breakdown of sales volumes by major product for the1Q 2015: Sales volumes (kmt) 1Q 2015 1Q 2014 Change y-o-y Apatite mine and beneficiation plant Phosphate rock* 518.0 714.3 (27.5%) Nepheline concentrate 206.3 158.7 30.0% Phosphate-based fertilizers and MCP DAP/MAP 697.2 575.6 21.1% NPK 429.6 469.6 (8.5%) NPS 41.8 81.5 (48.7%) APP 25.4 26.4 (3.8%) MCP 55.6 62.9 (11.6%) PKS 25.9 0.0 - SOP 9.9 8.2 20.7% Nitrogen-based fertilizers AN 179.6 142.1 26.4% Urea 232.9 284.6 (18.2%) Other products AlF3 7.3 7.3 - STPP 19.4 28.0 (30.7%) Ammonia 1.5 1.3 15.4% Phosphoric acid 12.6 12.1 4.1% Sulphuric acid 10.9 36.9 (70.5%) * Excluding intra-group sales** Excluding feed stock For further information please contact: OJSC PhosAgroIrina Evstigneeva, Head of Corporate Finance and Investor Relationsir@phosagro.ru+7 495 231 3115 Timur Belov, Press OfficerAnastacia Basos, Deputy Press Secretary+7 495 232 9689 EMSam 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 third 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 2014 IFRS revenue was over USD 3.2 bln and EBITDA was USD 979 mln.

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