Uralkali and Silvinit Announce Q1 2011 Production Results

13.04.2011

Uralkali (Berezniki, Perm Territory) and Silvinit (Solikamsk, Perm Territory) have today announced their production results for the three months ended March 31, 2011. Over that period Uralkali shipped 1.265 million tonnes of potassium chloride (KCl), which is 2% higher than in Q1 2010. Silvinit shipped approximately 1.34 million tonnes of KCl in Q1 2011, an increase of 16% on the corresponding quarter in 2010.

In December 2010, Uralkali and Silvinit announced their intention to merge to create a leader in the global potash market. The merger will create one of the largest potash companies in the world, with leading levels of production and production capacity. Moreover, it is expected that the realization of potential synergies will help the combined company to reduce further its unit costs, which will be among the lowest in the industry. Following the completion of the merger therefore, the combined company will be in a strong position to compete successfully with other players in the global potash market.

Vladislav Baumgertner, Uralkali CEO:

The first three months of this year have seen both Uralkali and Silvinit reach pre-crisis production levels. This was achieved through extensive maintenance work that the two companies carried out at their production units. In addition, in Q1 2011 Silvinit completed a project converting Shaft 3 of SKRU-3 from the extraction of sodium chloride to sylvinite ore.

For investor inquiries

Anna Batarina, CFA
Director for Investor Releations
Tel.: +7 (495) 730 2371
anna.batarina@msc.uralkali.com

For media inquiries

Alexey Sotskov
Director for Media Relations
Tel.: +7 (495) 730 2371
alexey.sotskov@msc.uralkali.com

Brian Cattell/ James Devas
Maitland Communications
Tel.: +44 (20) 7379 5151
bcattell@maitland.co.uk

This announcement is not intended to, and does not constitute, or form part of, an offer to sell or an invitation to purchase, exchange or subscribe for any securities or a solicitation of any vote or approval in any jurisdiction. This announcement does not constitute a prospectus or a prospectus equivalent document.

Notice to U.S. investors

The proposed business combination involves securities of a non-US company. It is important for U.S. securities holders to be aware that this announcement is subject to disclosure and regulations in England that are different from those in the United States. In addition, U.S. securities holders should be aware that this announcement has been prepared in accordance with English format and style, which differs from the U.S. format and style. In particular the financial information of Uralkali and Silvinit included herein has been prepared in accordance with International Financial Reporting Standards, and thus may not be comparable to financial information of U.S. companies whose financial statements are prepared in accordance with generally accepted accounting principles in the United States.

It may be difficult for U.S. securities holders to enforce their rights and any claim they may have arising under the U.S. federal securities laws, since Uralkali is located in the Russian Federation, and some or all of its officers and directors may be residents of countries other than the United States. U.S. securities holders may not be able to sue a non-U.S. company or its officers or directors in a non-U.S. court for violations of the U.S. securities laws. It may be difficult to compel a non-U.S. company and its affiliates to subject themselves to a U.S. court’s judgment.

Securities may not be offered or sold in the United States absent registration under the US Securities Act of 1933, as amended (the "Securities Act"), or pursuant to an exemption from such registration. The Uralkali Shares to be issued in connection with the Proposed Combination are not, and will not be, registered under the Securities Act or under the securities laws of any jurisdiction of the United States and will be issued to Silvinit Shareholders in the United States in reliance on the exemption from registration provided by Rule 802 under the Securities Act and in reliance on available exemptions from any state law registration requirements. The securities of Uralkali and Silvinit have not been, and will not be, registered under the Securities Act or under the securities laws of any jurisdiction of the United States.

No profit forecast

Nothing in this announcement is intended to be, or is to be construed as, a profit forecast or to be interpreted to mean that earnings per Uralkali Share, Uralkali GDR, or Silvinit Share for the current or future financial years, or those of either Uralkali or Silvinit, will necessarily match or exceed the historically published earnings per Uralkali Share, Uralkali GDR or Silvinit Share.

Forward looking statements

This announcement, including any information included or incorporated by reference, may contain “forward-looking statements” concerning Uralkali and Silvinit. Generally, the words "will", "may", "should", "could", "would", "can", "continue", "opportunity", "believes", "expects", "intends", "anticipates", "estimates" or similar expressions identify forward-looking statements. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Forward-looking statements include statements relating to the following: (i) future capital expenditures, expenses, revenues, earnings, synergies, economic performance, indebtedness, financial condition, dividend policy, losses and future prospects; (ii) business and management strategies and the expansion and growth of Uralkali and Silvinit operations and potential synergies resulting from the Proposed Combination; and (iii) the effects of government regulation on the businesses of Uralkali and Silvinit. Many of these risks and uncertainties relate to factors that are beyond the companiesí abilities to control or estimate precisely, such as future market conditions and the behaviours of other market participants, and therefore undue reliance should not be placed on such statements which speak only as at the date of this announcement. Each of Uralkali and Silvinit assumes no obligation in respect of, and does not intend to update, these forward-looking statements.

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