PotashCorp.com

Q3 2012 Market Analysis ReportMarket Update

September 21, 2012

This presentation contains forward-looking statements or forward-looking information (forward-looking statements). These statements can be identified by expressions of belief, expectation or intention, as well as those statements that are not historical fact. These statements are based on certain factors and assumptions including with respect to foreign exchange rates, expected growth, results of operations, performance, business prospects and opportunities and effective tax rates. While the company considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. Several factors could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to: variations from our assumptions with respect to foreign exchange rates, expected growth, results of operations, performance, business prospects and opportunities, and effective tax rates; fluctuations in supply and demand in the fertilizer, sulfur, transportation and petrochemical markets; costs and availability of transportation and distribution for our raw materials and products, including railcars and ocean freight; changes in competitive pressures, including pricing pressures; adverse or uncertain economic conditions and changes in credit and financial markets; the results of sales contract negotiations with major markets; the European sovereign debt crisis and the recent downgrade of US sovereign debt and political concerns over budgetary matters; timing and impact of capital expenditures; risks associated with natural gas and other hedging activities; changes in capital markets and corresponding effects on the company’s investments; unexpected or adverse weather conditions; changes in currency and exchange rates; unexpected geological or environmental conditions, including water inflows; imprecision in reserve estimates; adverse developments in new and pending legal proceedings or government investigations; acquisitions we may undertake; strikes or other forms of work stoppage or slowdowns; changes in and the effects of, government policies and regulations; security risks related to our information technology systems; 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, 2011 under the captions “Forward-Looking Statements” and “Item 1A – Risk Factors” and in our other filings with the US Securities and Exchange Commission and the 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.

Forward-looking Statements

Presentation Overview

• Agriculture Market Update

• N, P, K Market Overview

• India Market Overview

Agriculture Overview

2012F refers to the 2012/13 crop year.

Corn Yield – Bushels per Acre

US Corn YieldProjected Yield Would Be the Lowest in 17 Years – Demand Rationing Required

Source: USDA

2012F refers to the 2012/13 crop year.

Use - Billion Bushels

US Corn Use and Ending Stocks Reduction in All Uses Necessary to Balance Market; Domestic and International

~2.5 billion bushels

Source: USDA

Stocks - Billion Bushels

2012F refers to the 2012/13 crop year.

Import Share

Exports – Million Tonnes

Exports

South America Unlikely to Make up US Deficit; Importers Will Feel the Pinch

World Corn Trade Profile

Source: USDA

Japan

North Africa

Middle East

MexicoSouth Korea

SE Asia

Other

US Share – Percent

Source: PIRA, ProExporter, PotashCorp

Blender Margins – Cents per GallonIowa Plant Ethanol Margins – Cents per Gallon

Ethanol Economics Remain Intact Despite Higher Corn Prices

US Ethanol Producer and Blender Margins

Return Over Variable Cost - US$/head

US Livestock SituationLivestock Margins Squeezed by Higher Feed Costs and Lower Market Prices

Source: Iowa State University, USDA, PotashCorp

2012F refers to the 2012/13 crop year. FSU refers to Kazakhstan, Russia & Ukraine

Million Tonnes

FSU Domestic Grain ProfileFSU Experiencing Production Challenges, Lowering Exportable Surplus

Source: USDA, PotashCorp

2012F refers to the 2012/13 crop year.

Million Tonnes

Global Wheat Use

Exports – Million Tonnes

Exports

US, Canada and India to Increase Export Share as Demand Remains Stable

World Wheat Profile

Source: USDA

2012F refers to the 2012/13 crop year.

Use - Billion BushelsSoybean Yield – Bushels per Acre

Reduced US Supply Further Tightens Global Oilseeds Market

US Soybean Situation

Source: USDA

Stocks-to-use Ratio

2012F refers to the 2012/13 crop year.

Import Share

Exports - Million Tonnes

Exports

South America to Offset Lower US Exports, But Not Until New Crop in 2013

World Soybean Trade Profile

Source: USDA

ChinaEU-27

SE Asia

Other

US Share – Percent

Source: USDA, ProExporter, PotashCorp

*Assumes: Revenue Assurance with Harvest Payment Option, APH yield of 160bu/ac, actual yield of 95bu/ac.

US$ Billion

US Net Cash Farm Income

Higher Crop Prices and Insurance Payments Support Record Farm Income

US Net Cash Farm Income

US$/Acre

2012 US Corn Revenue Scenario

Source: Bloomberg, PotashCorp

Prices Have Moved Sharply Higher in Response to Global Production Issues

US Crop Prices

SoybeansCorn

US$/bushel US$/bushel

2013 Economics (Sept 20 vs June 1)$1.25/bu x 160 bu/acre = $200/acre

2013 Economics (Sept 20 vs June 1)$1.86/bu x 43 bu/acre = $80/acre

Source: India Meteorological Department

Indian Monsoon SituationMonsoon Recovering But Not In Every State

Percentage of Normal Monsoon Rain (June to Sept)

Stocks-to-Use - Percent

Strong Domestic Consumption Tightened Stocks

China Corn Supply and Demand

Source: USDA, China Grain Consultant

Production - Million Tonnes

2012F refers to the 2012/13 crop year. Assumes demand growth of 2 percent. Previous 10-year growth in production/consumption averaged approximately 2 percent annually.

Percent

World Grain Stocks-to-Use RatioConsecutive Years of High Growth in Production Required to Replenish Stocks

Source: USDA, PotashCorp

Annual Production Growth Rate Scenarios

6% (~3X Historical Rate)

4% (~ 2X Historical Rate)

2% (~ Historical Rate)

Nutrient Market Update

Source: USDOC

US Ammonia ImportsProduction and Logistical Hurdles Slow Imports

Cumulative Short Tons - Thousand Short Tons - Thousands

Source: USDOC

US Urea ImportsExpected Strong Import Volumes to Meet Projected Demand

Cumulative Short Tons - Thousands Short Tons - Thousands

Source: Fertecon, CRU

Global Ammonia Trade 2011E: 19.6 Million Tonnes

Global Ammonia Export Profile Cumulative Ammonia Exports

Shipments from Key Export Regions

World Ammonia Trade

Trinidad

FSU

Middle East

Africa

Asia

Europe

Others

2012F Trade MAP/DAP 21 mmt.

Change in MAP/DAP Exports (2012F vs. 2011) Change in MAP/DAP Imports (2012F vs. 2011)

Global Phosphate Trade Profile

Source: CRU, PotashCorp

Global Trade Is Expected to Decline Slightly in 2012

Source: TFI, USDOC

Short Tons

US MAP/DAP ShipmentsShipments are Needed to Restock for Fall Application

Cumulative – Short Tons

Source: ANDA, Potafertz, PotashCorp

Expanding Crop Acreage Expected to Keep Imports Robust

Brazil DAP/MAP Profile

Thousand Tonnes Thousand Tonnes

Production Imports

Source: USDOC, TFI, PotashCorp

Low Distributor Inventory and Agronomic Need is Expected to Drive Demand

North America Potash Shipments

Million Tonnes KCl Million Tonnes KCl

Offshore ImportsDomestic Producer Shipments

Source: ANDA, Potafertz

Million Tonnes KCl

Brazil Potash Monthly ImportsStrong Crop Economics Are Driving Expected Demand

Million Tonnes - KCl

Source: Fertecon, CRU, Industry Publications, PotashCorp

Million Tonnes KCl

World Potash DemandInventory Destocking and Lower Indian Imports Affect Demand in 2012

* Excluding India

Source: Fertecon, CRU, Industry Publications, PotashCorp

Million Tonnes KCl

World Potash ShipmentsExpect Strong Rebound in 2013

Indian Market Overview

Percentage of World Fertilizer ConsumptionPercentage of World Crop Production

Major Producer of Key Crops

India Crop Production and Fertilizer Consumption

Source: FAO, USDA, Fertecon

Population – Billions of People

Rapid Growth in Major Consuming Demographic

India’s Population Growth

Source: United Nations

Kcal/capita/dayMillion Tonnes

Per-Capita Consumption Lags Other Developing Countries

India Food Grain Production and Consumption

Source: FAO, USDA

Rice Yield – MT/HAFood Price Index: 2004/05 Equals 100

High Food Inflation Drives Need for Productivity Improvements

India Food Situation

Source: Government of India, USDA

Source: IFA, FAI

Fertilizer Consumption by Season*Fertilizer Consumption by Crop

Rice and Wheat Largest Consumers of Fertilizer

India Fertilizer Consumption

All Other Crops

SugarCrops

Wheat

Rice

Fruits & Vegetables

Oilseeds

Cotton

Rabi

Kharif

* Kharif crop season normally runs from April through September and the Rabi season is from October to March.

RiceCornSorghumPulsesSoybeans Cotton

WheatBarleyOatsPulses

Source: Fertecon, PotashCorp

Million Tonnes K2O

Potash

Million Tonnes P2O5

Phosphate

Million Tonnes N

Nitrogen

India Reliant on Potash Import to Meet Rising Demand

Indian Fertilizer Consumption Profile

Source: FAI

Major Fertilizer Production Locations

37

Phosphate Production Located Near Major Ports

Source: FAI

India Potash Consumption by State

38

Opportunity to Increase Potash Use Through Improved Distribution

Source: CRU

Indian Potash Imports and Major PortsFSU, Canada and Israel Are Major Suppliers to India

Major Ports

Major NPK Compound Factories

IFFCO

RCF

ZuariCFL

PPL

Tata

India MOP Imports by Supplier (FY 2011/12)

Total Imports: 4.3 million tonnes

US$ Subsidy per product tonneIndia’s Total Fertilizer Subsidy Bill, US$ Billions

Government Is Attempting to Reduce Total Subsidy Bill

Indian Fertilizer Subsidies

Source: Government of India

DAP

Potash

Urea

Note: Rupee to US$ conversion is at the rate of 46 Rupees per US$ for 2010-11 and 50 for 2012.

Source: Fertecon, CRU, FAI, PotashCorp

Rs/tonne of DAPRs/tonne of MOP

Changes to India’s Subsidy System Have Impacted Potash and Phosphate Demand

India Potash and Phosphate Situation

Thousand Tonnes of MOP Thousand Tonnes of DAP

Source: Fertecon, CRU, FAI, PotashCorp

Thousand Tonnes of Urea Rs/tonne of Urea

Strong Domestic Demand Expected to Support Imports

India Urea Situation

Percentage Yield Increase from Potash*

Opportunity to Improve Yields Through Balanced Fertilization

India Fertilizer Market Situation

Return on Potash Fertilizer

Source: Fertecon, IPNI

* Based on IPNI yield trials. Yield increase from optimal N,P,K application vs N & P application only.

Potash return calculation based on minimum crop support prices and IPNI yield response data.

Source: Fertecon, PotashCorp

Million Tonnes KCl Equivalent

Need for Balanced Nutrient Application Drives Demand Growth

India Potash Demand Growth Potential

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