ROCANVILLE POTASH MINE

Potash Corp reported that it has produced 3.405 Mt potash in 2009. Available supplies were limited by labor disputes at three of their mines while demand fell due to the start of the global economic crisis in late 2008. Pattern of offshore potash shipments were altered in 2008 by a late contract settlement between Canpotex and China. India benefited from China’s late entry to the market, receiving nearly 60 percent more potash from Canpotex than in 2007. North American sales volumes fell as farmers mostly passed on a fall application due to the late harvest and unfolding global economic concerns.

The company announced a project in 2007 that will bring over 2.0 million tonnes of additional capacity to the plant. The project requires a new mine shaft, extensive expansion to the existing mill site and expansion of the leased mining areas and will take five years to complete. In July 2008, we announced an increase in scope of this project such that an additional 700,000 tonnes of capacity expansion will be incorporated into the 2-million-tonne mine and mill project. With an additional investment of CDN $1.0 billion, the project now is expected to add a total of 2.7 million tonnes at a cost of CDN $2.8 billion and raise the facility’s annual capacity to 5.7 million tonnes. Construction of the mill is scheduled for completion at the end of 2012 with ramp-up over the following two years. Expected expenditures in 2009 are CDN $300 million, plus capitalized interest.

The company reported reserves and resources for its Canadian mining operations. The company’s estimates for its conventionalmining operations in Saskatchewan are based on exploration drill hole data, seismic data and actualmining results during the past 38 to 43 years. In Saskatchewan reserves are estimated by identifyingmaterial in place that is delineated on at least two sides and material in place within one mile from an existing sampled mine entry or borehole. The company’s estimates for its conventional mining operations in New Brunswick are based on exploration drill hole data, seismic data and actual mining results during the past 25 years. In NewBrunswick reserves are estimated by identifying material in place delineated by drilling or mining with results projected conservatively from these intersections.