PhosAgro Board Approves Share Capital Increase

19 Oct 2012 16:15

For Immediate Release 19 October 2012

PhosAgro Board Approves Share Capital Increase

Moscow - PhosAgro ("PhosAgro" or "the Company") , a leading global vertically integrated phosphate-based fertilizer producer, announced that today its Board of Directors unanimously approved an increase of the Company's share capital by way of issuance of 13.5 million new ordinary shares with a nominal value of RUB 2.50 per share, which amounts to 10.845% of PhosAgro's issued shares.

The Board of Directors also approved the additional share issue and the regulatory prospectus.

In accordance with today's decision, PhosAgro may place additional shares through an open subscription at a price determined by the Board of Directors, following state registration of the share issue and after the expiry of the limitation period for exercise of pre-emptive rights. The price of the shares that will be placed among the shareholders having pre-emptive rights to purchase newly-issued shares in an amount pro rata to the number of ordinary shares owned on the date when the PhosAgro Board of Directors took the decision on the share capital increase (19 October 2012) will be determined within the same period.

The shares may be paid for in Russian Roubles or US Dollars by way of wire transfer.

Information about the placement price will be disclosed simultaneously with information about the start of the placement, but no later than the date of the start of the placement. The placement date, which will come after the expiry of the limitation period for exercise of the pre-emptive rights and no earlier than two weeks following the date of disclosure of the information on state registration of the additional share issue, is determined by the authorised executive body of PhosAgro. The Company has one year from the date of state registration of the additional share issue to conduct the share placement.

For further information please contact:

OJSC PhosAgro+7 495 231 2747Irina Evstigneeva, Head of Corporate Finance and Investor RelationsTimur Belov, Press OfficerM:CommunicationsSam VanDerlipvanderlip@mcomgroup.com+44 (0) 20 7920 2356Notes to Editors

PhosAgro is a leading global vertically integrated phosphate-based fertiliser producer. The Group focuses on the production of phosphate-based fertilisers, feed phosphate and high-grade phosphate rock (P2O5 content of not less than 35.7 percent), as well as ammonia and nitrogen-based fertilisers. The Group is the largest phosphate-based fertiliser producer in Europe, the largest producer of high-grade phosphate rock worldwide and the second largest MAP/DAP producer in the world (excluding China), according to Fertecon. PhosAgro is also a leading producer of MCP feed phosphates in Europe, and the only producer in Russia.

PhosAgro has 2.1 billion tonnes of resources (according to JORC) of high quality apatite-nepheline ore, representing over 75 years of production. The Group also controls substantial Al2O3 resources, and has 41% of Russia's rare earth oxides resources.

The Group's mines and phosphate rock production facilities are located in the mountainous areas of the Kola Peninsula in the Murmansk region of northwest Russia, whereas its fertiliser and feed phosphate production assets are located near the city of Cherepovets in the Vologda region and near the city of Balakovo in the Saratov region of southwest part of European Russia. PhosAgro's 2011 IFRS revenue was USD 3.4 bln and EBITDA was USD 1.2 bln. The Сompany's net debt/EBITDA ratio was 0.43 at 31 December 2011.

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