Listed: TSX, NYSE Symbol: POT SASKATOON, SK, Feb. 8 /PRNewswire-FirstCall/ -- Potash Corporation of Saskatchewan Inc. (PotashCorp) announced today that Canpotex Limited (Canpotex), the offshore marketing company for Saskatchewan potash producers, and Sinofert Holdings Limited (Sinofert), a leading fertilizer enterprise in the People's Republic of China (PRC), have reached an agreement on 2007 prices pursuant to the 2007- 2009 Memorandum of Understanding (MOU) that exists between the two companies. Canpotex ships primarily red standard grade potash, but also supplies certain amounts of white standard grade and granular product. This agreement sets the price for red standard grade potash at US $5 per tonne higher than the 2006 price. Volumes will again be based on 2007 market demand in China, as the MOU provides Canpotex with at least 30 percent market share for potash imported into China. This increase, combined with gains made in the 2006 and 2005 pricing agreements, raises the price of potash to China by a total of US $70 per tonne over the last three years. The Canpotex agreement was preceded by a similar price agreement reached February 4, 2007 between Belarusian Potash Company (the marketing agent for potash producers PA Belaruskali of Belarus and JSC Uralkali of Russia) and Chinese importers, establishing the base line for all sea-borne potash prices into China in 2007. "With the early conclusion of the 2007 Chinese contracts, potash fundamentals have just improved," said Bill Doyle, President and Chief Executive Officer of PotashCorp. "China will take a bigger share of available potash supply this year, especially from suppliers in the former Soviet Union. With about 60 percent of Canpotex sales going to spot markets, we see improved earnings potential for potash. The spot market has also traditionally set the base level for price negotiations between Canpotex and China and the 2008 contract is expected to reflect this. We believe the value of our products will be even greater as we move forward, with global potash demand growing and sources of supply becoming more difficult to find. We look forward to using more of our excess potash capacity in a tightening supply/demand environment." Canpotex is a jointly owned offshore marketing company for the three Saskatchewan potash producers and PotashCorp, under a pro rata agreement based on capacity, is entitled to provide Canpotex with 55.8 percent of its potash. PotashCorp also owns 20 percent of Sinofert, one of the largest- volume importers of fertilizer products in the PRC. Sinofert is also the largest distributor of these products and a major producer of phosphate-based fertilizer products. It has 14 branch offices and 1,300 sales centers as part of an extensive distribution network that provided products to 76 percent of total sown lands in China in 2006. Potash Corporation of Saskatchewan Inc. is the world's largest fertilizer enterprise producing the three primary plant nutrients and a leading supplier to three distinct market categories: agriculture, with the largest capacity in the world in potash, third largest in phosphate and fourth largest in nitrogen; animal nutrition, with the world's largest capacity in phosphate feed ingredients; and industrial chemicals, as the largest global producer of industrial nitrogen products and one of only three North American suppliers of industrial phosphates. This release contains forward-looking statements. These statements are based on certain factors and assumptions as set forth in this release including foreign exchange rates, expected growth, results of operations, performance and business prospects and opportunities. While the company considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. A number of factors could cause actual results to differ materially from those in the forward- looking statements, including, but not limited to: fluctuations in supply and demand in fertilizer, sulfur, natural gas, transportation and petrochemical markets; changes in competitive pressures, including pricing pressures; risks associated with natural gas and other hedging activities; changes in capital markets; changes in currency and exchange rates; unexpected geological or environmental conditions; and government policy changes. Additional risks and uncertainties can be found in our 2005 annual report to shareholders and in filings with the U.S. Securities and Exchange Commission and Canadian provincial securities commissions. Forward-looking statements are given only as at the date of this release and the company disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. DATASOURCE: Potash Corporation of Saskatchewan Inc. CONTACT: Tim Herrod, Manager, Investor Relations, Phone: (306) 933-8543, Fax: (306) 933-8844, E-mail: , Web Site: http://www.potashcorp.com/

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