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CALGARY, Alberta -- Agrium Inc. (TSX and NYSE: AGU) announced today that it is pleased that EAgrium has apparently been cleared by the Egyptian Parliamentary Committee of all substantive issues respecting the project. Previous claims of substantial deficiencies in the project development process have also been proven false. 

Agrium continues to be disappointed with being singled out from other projects, considering it has advanced the project to world standards and has followed the same procedures as other world class capital projects located at or adjacent to the industrial port of Damietta.  According to local Egyptian press reports, special interest groups have organized a misinformation campaign within the local community in order to gain access to EAgrium’s land for other purposes.  We are surprised that the Egyptian government has failed to exercise all necessary steps to ensure its obligations are fulfilled and construction activities are resumed at the site given the Council of Ministers has clearly ruled that the land in question is reserved for industrial development consistent with Egypt’s transportation infrastructure strategy and the petrochemical master plan. 

There are significant implications to Egypt if the project were not to proceed.  Agrium, its partners and international banks have already invested over $500-million and the project is now 42 percent complete from an overall engineering, procurement and construction perspective. In addition to the funds already invested, Egypt would be assuming a potentially significant lost profit claim. 

Given the Egyptian Government’s one third investment in the project they would be susceptible to a potential loss of approximately $150-million. Also, the local community and national economy would forego substantial economic benefits associated with the project estimated to be in the hundreds of millions of dollars. Given the political uncertainty that this raises, there are reports that various other international projects and investments have recently been suspended. 

We expect the Egyptian government to secure resumption of the project now that the Committee has confirmed that there are no substantive issues with the project. 

Background

The Egyptian government halted construction of the EAgrium nitrogen facility in April 2008.  The Egyptian Parliamentary Committee was subsequently struck to review the EAgrium project, community concerns and other related issues.  The Committee has apparently confirmed that there are no environmental or permitting issues associated with the project and has also confirmed that the land has been designated by the Egyptian government for industrial purposes since the 1980’s and, more specifically, in 2001 and 2002 for use by the Egyptian Petrochemical Holding Company, Agrium’s lead Egyptian partner and wholly-owned subsidiary of Egypt’s Ministry of Petroleum. The Committee’s report has referenced a possible relocation, although this is not an economically viable option and would result in the loss of the project financing. 

Agrium has been in Egypt for over four years developing local community ties and obtaining all necessary permits for the development of the world scale facility.  Our facility would be the sixth nitrogen facility in the country; there have been no environmental issues raised with any of these facilities.  By way of example, there is an Egyptian owned nitrogen facility (MOPCO) directly across a small canal from EAgrium that is currently commencing production, and, to our knowledge, these types of issues were not raised at that facility. In addition to the obvious economic benefits for the local community and country, the local community will also benefit from EAgrium's strong corporate social responsibility program. 

Forward-Looking statements
Certain statements in this press release constitute forward-looking statements. Such forward-looking statements involve known and unknown risks and uncertainties as well as various assumptions and business sensitivities, including those referred to in the MD&A section of the Corporation's most recent Annual Report to Shareholders as well as those risk factors described in the Corporation's most recent Annual Information Form, which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, changes in development plans, capital construction costs, construction progress, and potential delays in building the Egyptian facility and related infrastructure, availability of equipment and labor, performance of other parties, political risks, including civil unrest, actions by armed groups or conflict, general economic, market and business condition, Egyptian governmental and regulatory requirements and  actions by governmental authorities, including changes in government policy, non-compliance with international treaties, changes in environmental, tax and other laws or regulations and the interpretation thereof.  Agrium disclaims any intention or obligation to update or revise any forward-looking information as a result of new information or future events.
Agrium disclaims any intention or obligation to update or revise any forward-looking information as a result of new information or future events.

About Agrium
Agrium Inc. is a major retail supplier of agricultural products and services in both North and South America and a leading global producer and marketer of agricultural nutrients and industrial products. Agrium produces and markets three primary groups of nutrients: nitrogen, phosphate and potash as well as controlled release fertilizers and micronutrients. Agrium’s strategy is to grow through incremental expansion of its existing operations and acquisitions as well as the development, commercialization and marketing of new products and international opportunities.

FOR FURTHER INFORMATION:
Investor/Media Relations:
Richard Downey, Senior Director, Investor Relations
(403) 225-7357

Ashley Harris, Manager, Investor Relations
(403) 225-7437

Contact us at: www.agrium.com