Now you know why potash RAY and FOS have taken off...

PotashCorp Announces Significant Potash Price Increase in 2008 Canpotex, Sinofert Agreement

    Listed: TSX, NYSE
    Symbol: POT

    SASKATOON, SK, April 16 /CNW/ - Potash Corporation of Saskatchewan Inc.
(PotashCorp) announced today that Canpotex Limited (Canpotex), the offshore
marketing company for Saskatchewan potash producers, and Sinofert Holdings
Limited (Sinofert), a leading fertilizer enterprise in the People's Republic
of China (PRC), have reached agreement on 2008 potash pricing at US $400 per
tonne higher than in 2007. As previously reported, Canpotex has prorated
China's 2008 volumes and, as a result of the timing of this settlement and
unprecedented demand in other markets, has only 1 million tonnes that it can
commit to Sinofert through the remainder of this year.
    The Canpotex/Sinofert agreement is pursuant to the 2007-2009 Memorandum
of Understanding that exists between the two companies. Canpotex ships
primarily red standard grade potash to China, but also supplies certain
amounts of white standard grade and granular product.
    "Significantly higher potash prices and extraordinarily tight supply have
become much more firmly entrenched since China's previous contract was signed
14 months ago," said PotashCorp President and Chief Executive Officer Bill
Doyle. "With the intense pressure on global food production and continued
growth in potash demand, this is the reality for our industry for the
foreseeable future. This settlement highlights the importance of securing
supply in an increasingly tight market. As the world's largest potash company,
we are committed to raising our capability to meet long-term growth in demand
and we intend to capture the benefits for our shareholders as we do so."
    Canpotex is the offshore marketing company jointly owned by three
Saskatchewan potash producers: PotashCorp, Agrium and Mosaic. PotashCorp,
under a pro rata agreement based on capacity, is currently entitled to supply
approximately 54 percent of Canpotex's potash requirements. PotashCorp also
owns 20 percent of Sinofert, the largest distributor of fertilizer products in
the PRC. Sinofert is also a major producer of phosphate-based fertilizer
products and holds an 18 percent interest in the country's primary potash
producer, Qinghai Salt Lake Potash Co., Ltd.

    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, second largest in nitrogen and third largest in
phosphate; animal nutrition, with the world's largest capacity in phosphate
feed ingredients; and industrial chemicals, as the largest global producer of
industrial nitrogen products and the world's largest capacity for production
of purified industrial phosphoric acid.

    This release 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; the results of
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, 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.

    %SEDAR: 00001608EF

For further information: Investors: Denita Stann, Director, Investor
Relations, Phone: (847) 849-4277, Fax: (847) 849-4691, Email:
ir@potashcorp.com; Media: Rhonda Speiss, Manager, Public Relations, Phone:
(306) 933-8544, Fax: (306) 933-8844, pr@potashcorp.com, Web Site:
www.potashcorp.com