SASKATOON, SK, (Canada NewsWire via COMTEX News Network) – Potash Corporation of Saskatchewan Inc. (PotashCorp) announced today that Canpotex Limited, the offshore marketing company for Saskatchewan potash producers, and Sinofert, a leading fertilizer enterprise in the People's Republic of China (PRC), have reached an agreement for shipments to China covering the August to December 2006 shipping period. The agreement calls for a base price increase of US $25.00 per tonne over the 2005 contract price. Because of the late settlement, the short shipping period and the unknown impact of both of these factors on Chinese demand, the tonnages under the contract and the shipping schedule itself are to be finalized in an evolving manner over the remainder of 2006. Both parties will put forth mutual best efforts at meeting the content and the spirit of the existing Memorandum of Understanding(1) between the two companies, which governs potash market share in China.

On February 24, PotashCorp purchased an additional 10.01 percent of Sinochem Hong Kong Holdings Limited (Sinofert) for US $126 million, completing the exercise of its option on these shares. This raised PotashCorp's ownership interest in Sinofert to 20 percent and includes the right to nominate a second member to Sinofert's Board of Directors.

Potash Corporation of Saskatchewan Inc. (PotashCorp) today purchased an additional 10.01 percent of Sinochem Hong Kong Holdings Limited (Sinofert) for US $126 million, completing the exercise of its option on these shares. This raised PotashCorp's ownership interest in Sinofert to 20 percent and includes the right to nominate a second member to Sinofert's Board of Directors.

Potash Corporation of Saskatchewan Inc. (PotashCorp) today announced that it has provided formal notice of its intention to exercise its option to purchase an additional 10.01 percent of the shares in Sinochem Hong Kong Holdings Limited, more commonly known as Sinofert. The option exercise will raise PotashCorp's ownership interest in the company to 20 percent, assuming no further changes to Sinofert's shareholdings. Under a Strategic Investment Agreement signed on June 7, 2005 with a subsidiary of Sinochem Corporation, PotashCorp purchased an initial 9.99 percent interest in Sinofert. Sinochem Corporation is a company with sales of US $20.4 billion in 2004 and a member of the Fortune Global 500 for the past 15 years. PotashCorp paid US $97 million for its initial interest and held the right to increase its ownership position no earlier than January 27, 2006. The total cost of the option exercise is expected to approximate US $125 million, with closing expected before the end of February 2006. PotashCorp will have the right to nominate a second member to the Sinofert Board of Directors at that time.