Mr. Matthew O'Neill reports

ITAFOS ANNOUNCES AMENDMENT AND EXTENSION OF ITS EXISTING CREDIT FACILITIES

Itafos Inc. has entered into an amendment of its existing credit facilities with a syndicate of lenders led by RBC Capital Markets, pursuant to which the company will refinance its existing $85-million loan (with $35.4-million outstanding) and its $35-million letter of credit facility for a new commitment of $100-million and a $30-million letter of credit facility, and will extend the maturity date under the existing term loan agreement. The company also announced that it has entered into an amendment to its revolving asset-based credit facility with a syndicate of lenders led by RBC Capital Markets to extend the maturity date of such facility and to effect certain other amendments to such facility. All figures are in U.S. dollars except as otherwise noted.

David Delaney, chief executive officer of Itafos, commented: "The amendment and extension of our credit facilities provide enhanced financial flexibility and liquidity for the company through the development phase of the H1/NDR project. Execution of the H1/NDR project remains on schedule and will extend the Conda mine life through 2037. Over the last three years, the company has prioritized deleveraging its balance sheet and enhancing its available liquidity to improve its ability and flexibility to execute on its strategic initiatives and deliver value to its shareholders."

The key terms of the amended term loan agreement are set out below:

• Extension of maturity date to Sept. 6, 2027;
• Term loan upsized from the original $85-million (currently $35.4-million outstanding) to $100-million;
• Dedicated letter of credit facility reduced from $35-million to $30-million;
• Annual principal amortization reduced from 33.33 per cent to 10 per cent;
• Further amendments to the facility that provide the company greater flexibility and enhance its ability to distribute capital to shareholders.

The key terms of the amended ABL agreement are set out below:

• Extension of maturity date to Sept. 6, 2027;
• Enhancements to the facility that provide the company additional flexibility and capacity under the borrowing base calculation.

The proceeds of the amended term loan agreement and amended ABL agreement are expected to be used to refinance the company's indebtedness under the existing term loan agreement, for the repayment of all outstanding ABL borrowings and for general corporate purposes.

Upon closing the refinancing, the amended term loan will have an outstanding balance of $100-million, the ABL facility will be undrawn and the LC facility will have an outstanding balance of $12.5-million.

About Itafos Inc.

The company is a phosphate and specialty fertilizer company. The company's businesses and projects are as follows:

• Conda -- a vertically integrated phosphate fertilizer business located in Idaho, with production capacity as follows:
  • Approximately 550,000 tonnes per year of monoammonium phosphate (MAP), MAP with micronutrients, superphosphoric acid (SPA), merchant-grade phosphoric acid and ammonium polyphosphate;
  • Approximately 27,000 tonnes per year of hydrofluorosilicic acid;
• Arraias -- a vertically integrated phosphate fertilizer business located in Tocantins, Brazil, with production capacity as follows:
  • Approximately 500,000 tonnes per year of single superphosphate (SSP) and SSP with micronutrients (SSP+);
  • Approximately 40,000 tonnes per year of excess sulphuric acid (220,000 tonnes per year gross sulphuric acid production capacity);
• Farim -- a high-grade phosphate mine project located in Farim, Guinea-Bissau;
• Santana -- a vertically integrated high-grade phosphate mine and fertilizer plant project located in Para, Brazil.

The company is a Delaware corporation that is headquartered in Houston, Tex. The company's shares trade on the TSX Venture Exchange under the ticker symbol IFOS. The company's principal shareholder is CL Fertilizers Holding LLC (CLF). CLF is an affiliate of Castlelake LP, a global private investment firm.

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