SASKATCHEWAN POTASH INDUSTRY POSTS THIRD CONSECUTIVE EXCELLENT YEAR

Energy and Mines Minister Eldon Lautermilch today announced that 1996
marked the third consecutive outstanding year for the Saskatchewan
potash industry with sales and gross industry revenue remaining at very
high levels.

Preliminary statistics indicate 1996 represents the third consecutive
year that sales have exceeded the seven million tonnes level. Total
Saskatchewan potash (K2O) sales in 1996 were 7.04 million tonnes, down
slightly from the record-breaking year of 1995.

The solid performance is the result of strong sales to the United
States and offshore markets, particularly Brazil, Western Europe and
Indonesia. These sales, combined with strong potash prices, sustained
gross revenue to the Saskatchewan industry at the second-highest level
on record.

"The robust figures for 1996 seem to indicate that the performance of
the potash industry is becoming more consistent," Lautermilch said.

As a result of the improved profitability, Saskatchewan potash
companies continue to invest in the potash industry. Agrium is
currently expanding the potash productive capacity at its Vanscoy
facility.

Potash represents the largest mining industry in Saskatchewan with 10
mines spread across the province. It employs about 3,000 people and
has annual capital spending of $60 million. The high levels of potash
sales also result in increased economic activity for related industries
such as the railroads, trucking and mine service.

"The Saskatchewan potash industry is the largest producer and exporter
in the world," Lautermilch said. "Reserves of Saskatchewan potash are
huge and are expected to last for hundreds of years given current rates
of production."

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For more information contact:

Marg Moran McQuinn
Energy and Mines
Regina
Phone: (306) 787-2567