PotashCorp Comments on Conference Board of Canada Report

    
    Symbol: POT
    Listed: TSX, NYSE
    

SASKATOON, Oct. 5 /CNW/ - While Potash Corporation of Saskatchewan Inc. (PotashCorp) continues to review the report prepared by The Conference Board of Canada, which details the impact that an acquisition of PotashCorp by BHP Billiton (BHP) would have on Canada and the province of Saskatchewan in particular, the company made the following observations:

The Saskatchewan government notes in its press release that BHP's proposed takeover of PotashCorp would reduce provincial revenues while having little or no net effect on employment in the industry. We would further note that the revenue loss is both:

    
    i)  understated, as the report chose to assume that BHP would not operate
        full out in direct contradiction of previous BHP public statements;
        and
    ii) unique to the BHP bid because of its involvement in the Jansen Lake
        greenfield project
    

The Board of Directors of PotashCorp would encourage the Government of Saskatchewan to continue to remain open to reviewing alternative bids on a fact-based approach, rather than the speculative approach taken by The Conference Board of Canada's report.

PotashCorp has told the Conference Board of Canada that the position it has taken is that all potential interested parties should commit to the following as a starting point, so that prospective Provincial resource revenues were not negatively impacted:

    
    -  support the sale of offshore potash through Canpotex
    -  purchase potash on an arms-length basis, for their own needs as a
       consumer
    -  support the continued profit maximization strategies employed by
       PotashCorp's existing management, as well as the company's ongoing
       capital expenditures for future potash expansions
    

The company believes and told the Conference Board that such assurances would be integral to any alternative expressions of interest. The Conference Board chose to ignore PotashCorp's position in its report.

The company reminds its shareholders that its Board of Directors unanimously recommends that PotashCorp shareholders reject the BHP offer and not tender their shares. The offer is wholly inadequate and is not in the best interests of the company, its shareholders or other stakeholders.

PotashCorp looks forward to Investment Canada's review, which was extended yesterday, which will assess whether an acquisition of PotashCorp by BHP would comply with applicable Canadian law and federal government policies, including the requirements of the Investment Canada Act.

This release contains forward-looking statements or forward-looking information (forward-looking statements). These statements are based on certain factors and assumptions including foreign exchange rates, expected growth, results of operations, performance, business prospects, evaluations 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. Several factors could cause actual results to differ materially from those expressed in the forward lookingstatements, including, but not limited to: future actions taken by BHP Billiton in connection with its unsolicited, non-binding proposal; fluctuations in supply and demand in fertilizer, sulfur, transportation and petrochemical markets; changes in competitive pressures, including pricing pressures; the recent global financial crisis and conditions and changes in credit markets; the results of sales contract negotiations with China and India; 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; 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, 2009 under captions "Forward-Looking Statements" and "Item 1A - Risk Factors" and in our other 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 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, except as required by law.

Important Information

This release is neither an offer to purchase nor the solicitation of an offer to sell any securities. On August 23, 2010, PotashCorp filed a solicitation/recommendation statement on Schedule 14D-9 with the Securities and Exchange Commission (the "SEC") with respect to the offer to purchase commenced by BHP Billiton Development 2 (Canada) Limited, a wholly-owned subsidiary of BHP Billiton Plc. Investors and security holders of PotashCorp are urged to read the solicitation/recommendation statement and any other relevant documents filed with the SEC, because they contain important information.

Investors and security holders may obtain a free copy of the solicitation/recommendation statement and other documents that PotashCorp files with the SEC through the website maintained by the SEC at www.sec.gov and through the website maintained by PotashCorp at www.potashcorp.com. In addition, the solicitation/recommendation statement and other documents filed by PotashCorp with the SEC may be obtained from PotashCorp free of charge by directing a request to Potash Corporation of Saskatchewan Inc., 122 - 1st Avenue South, Suite 500, Saskatoon, Saskatchewan, Canada S7K 7G3, [phone].

%SEDAR: 00001608E

For further information: Investors, Denita Stann, Sr. Director, Investor Relations, Phone: [phone], Fax: [phone], Email: [email protected]; Media, Bill Johnson, Director, Public Affairs, Phone: [phone], Fax: [phone], [email protected]; Eric Brielmann / Jamie Moser / Andrew Siegel, Joele Frank, Wilkinson Brimmer Katcher, Phone: [phone], Web Site: www.potashcorp.com