Mr. Steve Burleton reports

MBAC REPORTS Q1 2013 RESULTS AND PROVIDES CORPORATE UPDATE

MBAC Fertilizer Corp. has released highlights of its first quarter 2013 results and has provided a general corporate update including an update on the Itafos Arraias single superphosphate project.

The company is filing its financial statements and management discussion and analysis (MD&A) for the quarter ended March 31, 2013, on SEDAR.

Highlights for the quarter ended March 31, 2013, include:

• Achieved approximately 94-per-cent completion for the Itafos project;
• Invested $70-million in property, plant and equipment and exploration activities;
• Completed the updated Itafos technical report which provides: 47-per-cent increase in proven and probable reserves, an increase in mine life to approximately 19 years, current project economics and other updates;
• Total estimated capital costs of the project of approximately $323-million;
• Received operating licences for the water dam, the tailings dam, pipelines and the beneficiation plant for the Itafos project;
• Completed a bought deal equity public offering in February, 2013, for net proceeds of approximately $32.5-million;
• Sold interest in a non-material area of exploration ground 35 kilometres from the Santana phosphate project for a price of $10-million;
• Received a working capital loan from Banco Itau BBA for $10-million.

Highlights subsequent to quarter-end

• Raised net proceeds of approximately $48.1-million in a private placement of common shares in April, 2013;
• Received proceeds in advance for the sale of 15,000 tonnes of the 35,000 tonnes of SSP ordered during the quarter, all of which expected to be delivered in July and August, 2013.

Itafos project update

Physical progress of the construction at the Itafos project to date is approximately 94 per cent completed. Highlights of recent progress include:

• Mine construction and preparation have been completed and the mine is operational.
• The beneficiation plant has been commissioned and is operational.
• Powerlines have been completed and are operational.
• Water dam and tailings dam have been completed and are operational.
• The water pipeline has been completed and is operational.
• Construction continues to advance on the chemical plants.
• All key personnel needed to operate the plants are in place.

The company continues to expect that the Itafos project will be fully licensed and in operation by midyear 2013.

SSP market update and sales

Despite the lag in fertilizer product deliveries in the company's target region during the first quarter as compared with last year (due to unusually dry conditions experienced in the first quarter of 2013), there has been an increase in fertilizer purchases in the target region in the last month. Brazilian soybean production is forecast to hit record levels in 2013 leading the company to believe that the market for fertilizer will continue to strengthen as the planting season begins, which typically occurs in October/November. The company continues to expect lower SSP prices in 2013 relative to 2012, but expects prices to rise into 2014.

The company remains focused on its sales efforts. The company has binding agreements to deliver SSP to customers starting in July, 2013, and the company has received prepayment for 15,000 tonnes of this SSP from one of its customers. The company is currently in discussions with prospective purchasers for additional volume.

Corporate update

The company's executive committee remains actively involved in providing oversight of the advancement of the Itafos project and is pleased with the progress made since the beginning of April, 2013. This year is a year of transition for the company during which it will launch operations and start to generate cash flow. Two thousand fourteen will be the first full year of production, when the operations are expected to reach capacity. As the company transitions to full capacity, there will be a strong focus on operations management to keep the cost structure as low as possible and to actively manage working capital to reduce the company's cash needs.

The executive committee has also undertaken a number of significant strategic initiatives to strengthen the financial flexibility of the company by increasing the cash available to finance its operations. These initiatives included retaining financial advisers to review: the sale of part or all of the Araxa project; debt financing alternatives for the company; and the sale of a minority interest in the Santana project.

The company will host its annual and special meeting of shareholders on Thursday, May 23, 2013, at 10 a.m. in the Manitoba room at the Fairmont Royal York Hotel in Toronto, Ont.

We seek Safe Harbor.