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Andrew Cote

Andrew Cote. Sales Manager, South Region. World Fertilizer Outlook. PotashCorp.com. Forward-Looking Statements.

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Andrew Cote

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  1. Andrew Cote Sales Manager, South Region World Fertilizer Outlook PotashCorp.com

  2. Forward-Looking Statements The following presentation contains forward-looking statements. These statements are based on certain factors and assumptions including foreign exchange rates, expected growth, results of operations, performance, business prospects and opportunities and effective income tax rates. 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, transportation and petrochemical markets; changes in competitive pressures, including pricing pressures; timing and amount of capital expenditures; risks associated with natural gas and other hedging activities; changes in capital markets and corresponding effects on the company’s investments; changes in currency and exchange rates; unexpected geological or environmental conditions, including water inflow; strikes and other forms of work stoppage or slowdowns including the possibility of work stoppages at our Allan, Cory and Patience Lake facilities; changes in and the effects of, government policy and regulations; and earnings, exchange rates and the decisions of taxing authorities, all of which could affect our effective tax rates. Additional risks and uncertainties can be found in our Form 10-K for the fiscal year ended December 31, 2007 under captions “Forward-Looking Statements” and “Item 1A – Risk Factors” and in our filings with the US Securities and Exchange Commission and Canadian provincial securities commissions. Forward-looking statements are given only as at the date of this presentation 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, except as required by law.

  3. Fertilizer Demand Drivers

  4. Fertilizer Industry Demand Drivers Rising Population and Improving Diets Drive Grain and Fertilizer Consumption Billion People Million Tonnes Billion Tonnes Million Tonnes Source: United Nations, FAO, IFA, Fertecon, PotashCorp

  5. World Grain* Stocks Global Stocks Remain Tight Percent Million Tonnes * Includes wheat and coarse grains Source: USDA August 2008

  6. US Crop Prices Significant Improvement in Crop Prices $US/bushel Source: USDA

  7. Selected International Commodity Prices Not Just Rising Corn, Wheat and Soybean Prices Index 2001 = 100 Rice Coffee Sugar Bananas Cocoa Palm Oil Rubber Source: World Bank July 2008

  8. US Fertilizer Prices Paid by Farmers For Spring Planting Higher Prices Reflect Strong Demand and Tight Supplies $US/Short Ton KCl DAP Ammonia Urea Source: USDA - April 2008 fertilizer prices

  9. US Crop Revenue Per Acre Higher Crop Prices Drive Significant Increase in US Crop Revenues $US/Acre Corn Soybean Wheat Based on estimated 2008 farm prices of $5.50/bushel for corn, $12.50/bushel for soybeans and $7.50/bushel for wheat. Source: USDA, PotashCorp

  10. US Fertilizer Costs and Crop Return Over Variable Costs Sensitivity Analysis – Farmer Returns Still Excellent With Higher Fertilizer Prices Per Acre Return Over Variable Costs* Per Acre Fertilizer Cost* (potash less than 20% of fertilizer cost in 2008) $US/Acre $US/Acre Corn Corn Soybean Wheat Soybean Wheat $208 $115 $47 $46 *2006-2008F cost assumptions based on USDA crop budgets and April Fertilizer Prices Paid Report **2008F fertilizer cost based on $561/ST KCl, $850/ST DAP and $552/ST urea ***Alternate scenario assumes pricing of $1,000/ST KCl, $1,200/ST DAP and $800/ST Urea Source: USDA, PotashCorp

  11. US Net Cash Farm Income Robust Farm Economy $US Billions Source: USDA, Doane

  12. World Fertilizer Consumption Growth Increasing Global Demand for the Three Primary Nutrients Cumulative Growth % YOY KCl P2O5 N Source: Fertecon, PotashCorp

  13. World and US Fertilizer Consumption by Crop Fertilizer Used on a Diverse Set of Crops World US Wheat All Other Crops All Other Crops Wheat Rice Fruits & Vegetables Fruits & Vegetables Rice Sugar Cotton Sugar Other Oilseeds Cotton Corn Soybeans Other Oilseeds Corn Other Cereals Other Cereals Soybeans Source: IFA

  14. N P2O5 KCl Improved Fertilization Can Raise Yields Potential Levels Exceed Current Application Levels Million Tonnes China India Brazil Source: IPNI, Fertecon, PotashCorp

  15. Phosphate Overview

  16. New Phosphate Rock Capacity vs Demand Supply/Demand Balance to Remain Tight Million Tonnes Rock, Cumulative Growth Source: Fertecon, PotashCorp

  17. Non-Integrated Phosphate Producer Cost Non-Integrated Producers at a Significant Cost Disadvantage $US/Tonne of DAP Source: Fertecon, PotashCorp

  18. New DAP/MAP Capacity* vs Demand Market Expected to Remain Snug Until at Least 2012 Million Tonnes Product, Cumulative Growth * Capacity includes several projects classified by sources as uncertain,and excludes projects classified as unlikely Source: British Sulphur, Fertecon, PotashCorp

  19. China DAP & MAP Exports Chinese Export Tax Tightens the Phosphate Market MAP DAP Million Tonnes Million Tonnes Source: Fertecon, PotashCorp

  20. Indian DAP Imports Indian Import Growth Drives Global DAP Market Million Tonnes Product Source: Fertecon, PotashCorp

  21. Nitrogen Overview

  22. World Natural Gas Prices Global Gas Prices Rising $US/MMBtu Western Europe US Gulf Ukraine Russia Source: Fertecon, PotashCorp

  23. Delivered Ammonia Costs to US Gulf/W. Europe Higher Gas Prices Impact Ammonia Production Costs Ukraine Port Producer to US Gulf US Gulf Producer to US Gulf W. Europe (Netherlands) Producer to W. Europe $US/tonne Source: Fertecon, PotashCorp

  24. Urea Capacity Change vs Demand Growth Cumulative Growth Excluding ChinaShows Balance Million Tonnes Product China Excluding China Source: Fertecon, British Sulphur, Potash Corp

  25. China Urea Exports Special Export Tax Could Reduce Chinese Exports Million Tonnes Product Source: Fertecon

  26. Indian Urea Deficit Indian Import Growth Drives Global Urea Market Million Tonnes Product Source: Fertecon, British Sulphur, PotashCorp

  27. Potash Overview

  28. Potential Potash Fertilizer Consumption Growth Significant Catch-Up to Meet Scientifically Recommended Levels Million Tonnes KCl China India Brazil * Based on current acreage Source: IPNI, Fertecon, PotashCorp

  29. Cumulative Potash Demand Growth and Capacity Demand Growth More Than Double New Capacity Growth Since 2000 Million Tonnes KCl, Cumulative Growth Source: Fertecon

  30. Potash Shipments by Market Significant Growth in Major Offshore Markets Million Tonnes KCl Source: Fertecon, PotashCorp

  31. North American Producers’ Ending Potash Inventory Down 41% from Previous 5 Year Average Million Tonnes KCl 2006 5-Year Average 2007 2008 41% below the 5-year average Source: IPNI

  32. PotashCorp’s Announced Potash Capacity Expansions 18.0 MMT Complete by 2012, Full Ramp Up by End of 2014 Million Tonnes Operational Capacity* Rocanville, Cory, Allan NewBrunswick Cory P. Lake Lanigan 18.0MMT * Capacity available by the end of each fiscal year ** 2012 includes a reduction for PotashCorp’s share of Esterhazy reserve depletion Source: PotashCorp

  33. Thank You PotashCorp.com

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