PotashCorp Announces Canpotex Sales Agreement with Sinochem Listed: TSX, NYSE Symbol: POT SASKATOON, SK, Nov. 5 /PRNewswire-FirstCall/ -- Potash Corporation of Saskatchewan Inc. (PotashCorp) announced today that Canpotex Limited has signed a 2005 sales contract for 1.5 million tonnes red standard grade potash with Sinochem, China's largest potash importer. The agreement includes a 10 percent additional volume option and provides a price increase of US $40 per tonne over last year's contract price. Canpotex has also contracted for the sale of 0.3 million tonnes of white standard grade potash at a US $43 per tonne price increase over last year's contract price. Over and above the sale of the two grades of standard product, Canpotex and Sinochem have negotiated a 2005 contract for 0.3 million tonnes of granular potash at prices US $10 above the red standard price. This will be the first time Sinochem has ever taken granular product. In total, Sinochem is expected to take a minimum of 2.1 million tonnes of product from Canpotex in 2005, an increase of 27 percent over the 1.65 million expected sales tonnes in 2004. If the option were exercised on the red standard product, it would represent a 36 percent increase. Sinochem purchases product delivered to Vancouver and is responsible for ocean freight costs. Therefore the price increases reflect a higher realized price for potash, rather than an offset against ocean freight. This agreement represents the second year of the three-year Memorandum of Understanding signed in August 2003 between Canpotex and Sinochem. Canpotex is the offshore marketing agency for Saskatchewan potash producers and PotashCorp is its largest member, currently supplying 54.2 percent of its total sales volume. "The conclusion of this negotiation this early and with this type of price increase is a reflection of the marked shift in supply/demand fundamentals in the global potash market," said Bill Doyle, PotashCorp President and CEO. "It gives us great momentum entering 2005, both from a volume and price standpoint." Potash Corporation of Saskatchewan Inc. is the world's largest fertilizer enterprise producing the three primary plant nutrients and a leading supplier to three distinct market categories: agriculture, with the largest capacity in the world in potash and third largest in phosphate and nitrogen; animal nutrition, with the world's largest capacity in phosphate feed ingredients; and industrial chemicals, as one of the largest global producers of industrial nitrogen and industrial phosphate products. This release contains forward-looking statements, which involve risks and uncertainties, including those referred to in the company's annual report to shareholders for 2003 and in filings with the U.S. Securities and Exchange Commission and Canadian provincial securities commissions. A number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, fluctuation in supply and demand in fertilizer, sulfur and petrochemical markets; changes in competitive pressures, including pricing pressures; risks associated with natural gas and other hedging activities; changes in capital markets; changes in currency and exchange rates; unexpected geological or environmental conditions; and government policy changes. DATASOURCE: Potash Corporation of Saskatchewan Inc. CONTACT: please contact: Betty-Ann Heggie, Senior Vice President, Corporate Relations, Phone: (306) 933-8521, Fax: (306) 933-8844, E-mail: , Web Site: http://www.potashcorp.com/

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