Listed: TSX, NYSE Symbol: POT SASKATOON, SK, Jan. 31 /PRNewswire-FirstCall/ -- Potash Corporation of Saskatchewan Inc. (PotashCorp) today announced that it has provided formal notice of its intention to exercise its option to purchase an additional 10.01 percent of the shares in Sinochem Hong Kong Holdings Limited, more commonly known as Sinofert. The option exercise will raise PotashCorp?s ownership interest in the company to 20 percent, assuming no further changes to Sinofert?s shareholdings. Under a Strategic Investment Agreement signed on June 7, 2005 with a subsidiary of Sinochem Corporation, PotashCorp purchased an initial 9.99 percent interest in Sinofert. Sinochem Corporation is a company with sales of US $20.4 billion in 2004 and a member of the Fortune Global 500 for the past 15 years. PotashCorp paid US $97 million for its initial interest and held the right to increase its ownership position no earlier than January 27, 2006. The total cost of the option exercise is expected to approximate US $125 million, with closing expected before the end of February 2006. PotashCorp will have the right to nominate a second member to the Sinofert Board of Directors at that time. Sinofert is a leading fertilizer enterprise in the People?s Republic of China (PRC). On December 19, 2005 it released its 9-month earnings of US $76 million, 51 percent higher than the comparable period in 2004. One of the largest importers of fertilizer products in the PRC in terms of import volume, it is the largest distributor of these products and is also a major producer of phosphate-based fertilizer products. At the end of November 2005, it had 14 branch offices and 1,036 sales centers as part of an extensive distribution network that provided products to 76 percent of total sown lands in China. ?This investment fits our long-term Potash First strategy of extending our enterprise in areas with fast-growing demand for our products,? said Bill Doyle, President and Chief Executive Officer of PotashCorp. ?It has always been our intention to increase our investment in Sinofert, a company with great prospects and outstanding management. As an indication of our confidence, we are completing the second tranche at the earliest possible opportunity. This gives us a significant voice in a company that provides us much greater access to one of the world?s leading agricultural economies.? 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, third largest in phosphate and fourth largest in nitrogen; 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 one of only three North American suppliers of industrial phosphates. This release contains forward-looking statements. These statements are based on certain factors and assumptions as set forth in this release including foreign exchange rates, expected growth, results of operations, performance and business prospects and opportunities. 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, natural gas, transportation and petrochemical markets; changes in competitive pressures, including pricing pressures; risks associated with natural gas and other hedging activities; changes in capital markets; changes in currency and exchange rates; unexpected geological or environmental conditions; and government policy changes. Additional risks and uncertainties can be found in our 2004 annual report to shareholders and in filings with the U.S. Securities and Exchange Commission and Canadian provincial securities commissions. Forward-looking statements are given only as at the date of this release 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. Should subsequent events show that the forward-looking statements released herein may be materially off-target, the company will evaluate whether to issue, and, if appropriate following such review, issue a news release updating guidance or explaining reasons for the difference. DATASOURCE: Potash Corporation of Saskatchewan Inc. CONTACT: Betty-Ann Heggie, Senior Vice President, Corporate Relations, Phone: (306) 933-8521, Fax: (306) 933-8844, E-mail: , Web Site: http://www.potashcorp.com/

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