PhosAgro and RUSAL Sign Aluminium Fluoride Contract

For Immediate Release 21 January 2014 PhosAgro and RUSAL Sign Contract for Supply of Aluminium Fluoride and RawMaterials for its ProductionUnder Long Term Cooperation Agreement Moscow - PhosAgro (Moscow Exchange, LSE: PHOR), one of the world's leadingvertically integrated phosphate-based fertilizer producers, announces thesigning of a contract for the supply of aluminium fluoride and the rawmaterials for its production between PhosAgro-Cherepovets and UC RUSAL, theworld's largest aluminium producer, as part of the cooperation agreementthrough 2034 between the two companies. The first contract involves the supply of aluminium fluoride produced byPhosAgro-Cherepovets to UC RUSAL TD until 31 December 2034. The approximatevalue of the transaction is over RUB 20 billion. UC RUSAL TD will supply aluminium hydroxide, which is used in the production ofaluminium fluoride, to PhosAgro-Cherepovets under a second agreement. The valueof the second transaction is approximately RUB 6.5 billion. Both agreementswere approved by a PhosAgro-Cherepovets extraordinary general meeting ofshareholders on 24 December 2013. The agreement between PhosAgro and UC RUSAL aims to support the furthermodernisation of PhosAgro-Cherepovets and the eventual increase of aluminiumfluoride supplies to RUSAL production facilities from 23 thousand tonnes in2012 to 35 thousand tonnes in 2016. The agreement to increase supplies of aluminium fluoride to RUSAL providesPhosAgro with guaranteed long-term demand for this product, enables the Companyto finance the expansion of its production capacities with a guaranteed returnon investments, increases the depth of processing of its mineral raw materials,and helps to reduce PhosAgro-Cherepovets' impact on the environment. 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.com+44 7554 993 032+7 916 306 6112 Notes to Editors PhosAgro is a leading global vertically integrated phosphate-based fertilizerproducer. The Group focuses on the production of phosphate-based fertilizers,feed phosphate and high-grade phosphate rock (with P2O5 content of not lessthan 39 percent), as well as ammonia and nitrogen-based fertilizers. The Group 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 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 fertilizer 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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