PotashCorp.com

Fluid Fertilizer Foundation

Market Update

6 Dec. 2016

Chris Reynolds

VP, Fertilizer Sales

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 often contain words such as “should,” “could,” “expect,” “may,” “anticipate,” “believe,” “intend,” “estimates,” “plans” and similar

expressions. These statements are based on certain factors and assumptions as set forth in this document, 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. Forward-looking statements are subject to risks and uncertainties that are difficult to predict. The results or events set forth in

forward-looking statements may differ materially from actual results or events. Several factors could cause actual results or events to differ

materially from those expressed in forward-looking statements including, but not limited to, unexpected developments with respect to any

of the following: 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 and

petrochemical markets; changes in competitive pressures, including pricing pressures; risks and uncertainties related to any operating and

workforce changes made in response to our industry and the markets we serve, including mine and inventory shutdowns; adverse or

uncertain economic conditions and changes in credit and financial markets; economic and political uncertainty around the world; changes

in capital markets; the results of sales contract negotiations; unexpected or adverse weather conditions; changes in currency and

exchange rates; risks related to reputational loss; the occurrence of a major safety incident; inadequate insurance coverage for a significant

liability; inability to obtain relevant permits for our operations; catastrophic events or malicious acts, including terrorism; certain

complications that may arise in our mining process, including water inflows; risks and uncertainties related to our international operations

and assets; our ownership of non-controlling equity interests in other companies; our prospects to reinvest capital in strategic opportunities

and acquisitions; risks associated with natural gas and other hedging activities; security risks related to our information technology

systems; imprecision in reserve estimates; costs and availability of transportation and distribution for our raw materials and products,

including railcars and ocean freight; changes in, and the effects of, government policies and regulations; earnings and the decisions of

taxing authorities which could affect our effective tax rates; increases in the price or reduced availability of the raw materials that we use;

our ability to attract, develop, engage and retain skilled employees; strikes or other forms of work stoppage or slowdowns; rates of return

on, and the risks associated with, our investments and capital expenditures; timing and impact of capital expenditures; the impact of further

innovation; adverse developments in new and pending legal proceedings or government investigations; and violations of our governance

and compliance policies. These risks and uncertainties, as well as additional risks and uncertainties, are discussed in more detail under

the headings “Forward-Looking Statements,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and

Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and in our other filings with the US

Securities Exchange Commission and Canadian provincial securities commissions. Forward-looking statements included in this

presentation are given only as at the date hereof and PotashCorp disclaims any obligation to update or revise any forward-looking

statements in this presentation, whether as a result of new information, future events or otherwise, except as required by law.

Forward-looking Statements

Agriculture Fundamentals

Highlights

• Record global grain/oilseed consumption

maintains incentive to increase crop

production

• US exports for major crops are at all-time

highs, helping offset record production in

2016

• US corn acreage for 2017 season expected

at 91M+ acres, Soybeans 83M+ acres

• South American planting progressing well;

moisture conditions good in Mato Grosso

with alleviating dry conditions in Southern

growing regions

• Palm oil and Sugar markets supported by

strong demand and tight supply availability

Prices Remain at Supportive Levels Due to Strong Demand

Crop Price Update

Source: CapIQ

Selected Crop Prices*

$3.75$3.40

$3.80

Corn (US$/bu)

2017 Forecast Current 3-Year Average

$9.65$10.50 $10.32

Soybean (US$/bu)

$0.15

$0.20$0.18

Sugar (US$/lbs)

$2,385

$3,050$2,900

Palm Oil (MYR/mt)

Nov ’17 Dec ’17

Oct ’17 Nov ’17

* As at November 30, 2016

Source: USDA

Large Stocks Allow for Strong Demand Growth

US Corn and Soybean Profile

2016/17 US Corn Profile Billion Bushels

2.4

15.2

1.7

Ending

Stocks

Exports

-2.2

Ethanol

-5.3

Food, Feed

& Seed

-7.1

Imports

0.1

Production* Beginning

Stocks

2016/17 US Soybean Profile Billion Bushels

0.5

4.4

0.2

Exports Ending

Stocks

Crush & Seed

-2.1

Imports

0.0

Production Beginning

Stocks

-2.1

Stocks-to-use = 16%

Stocks-to-use = 12%

Farmer Returns Remain Supportive; Forward Budgets to Surpass Prior Year

US and Brazil Crop Returns

Source: USDA, IMEA, Conab, PotashCorp

* 2016F represents the 2016/17 Brazilian crop year.

US Corn Return over Operating and Land Costs (US$/acre)

Brazil Soybean Return over Operating and Land Costs (Reals/acre)

10182

125118

195

349

458

381

163

221

308

162

18

60

91

67

23

2002

2001

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016E

2017F

335

102

180

549

403

306

423

135

262

505

268

90

164

486

516

276

242

2014

2016F

2003

2004

2005

2006

2007

2008

2009

2010

2012

2011

2015

2013

2000

2002

2001

US Fertilizer Cost and Soil K Needs

Source: USDA, PotashCorp

Strong Value in Fertilizer As Soils Continue to Test Below Critical Potassium Levels

10

12

14

16

18

20

22

24

26

1976

1981

1986

1991

1996

2001

2006

2011

2016F

30-year average

0

20

40

60

80

100

Fertilizer Cost as Percentage of Corn Revenue Percent

North American Potassium Soil Test Levels Percentage of Soils Testing Below Critical Level for K, 2015

0

20

40

60

80

100

120

140

160

180

200

2000 2002 2004 2006 2008 2010 2012 2014 2016F

Soybeans Corn 1st Corn 2nd

Sugarcane Others

Robust Brazilian Farm Prices Support Strong Planting Outlook

Brazil’s Crop Prices and Planting Area

* 2016F represents the 2016/17 Brazilian crop year.

0

5

10

15

20

25

30

35

40

45

Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

Corn (R$/Bu)

Soybeans (R$/Bu)

Source: USDA, IMEA, Conab, PotashCorp

Brazil Crop Prices (Mato Grasso) Real / Bushel

Brazil Planted Area by Crop Million Acres

Fertilizer Market Fundamentals

K

100

200

300

400

500

600

700

Jan-17 Jul-16 Jan-16 Jul-15 Jan-15 Jul-14 Jan-14

200

250

300

350

400

450

500

Jan-17 Jul-16 Jan-16 Jul-15 Jan-15 Jul-14 Jan-14

Source: Fertilizer Week

Selected Fertilizer Prices (US$)

Potash Prices Move Up; Phosphates Stabilize

World Fertilizer Prices

• Strong demand and tight supply lift prices in

most spot markets

• New business in most markets being

conducted at ~$30/mt higher than end of Q2’16

N

P

Key Highlights

• Tampa ammonia prices recently strengthened

having found near-term support

• Urea prices rally on limited supply from China

• Solid fertilizer market stable to lower on weak

demand and lower input costs

• Phos Acid markets move lower on weak

Indian demand

KCl - CFR Brazil ($/mt)

KCl - FOB US Midwest ($/st)

UAN - FOB NOLA ($/st)

Urea - FOB Midwest ($/st)

Ammonia - FOB Tampa($/mt)

0

200

400

600

800

1,000

1,200

Jan-17 Jan-16 Jul-16 Jul-15 Jan-15 Jul-14 Jan-14

Phos Acid (100%) - CFR India ($/mt)

DAP - FOB Central Florida ($/st)

Potash Shipments by Region

Source: Fertecon, CRU, Industry Publications, PotashCorp

Expect Demand of 61-64 Million Tonnes in 2017

0

5

10

15

20

14 15 16F 17F 14 15 16F 17F 14 15 16F 17F 14 15 16F 17F 14 15 16F 17F

India

Note: Shaded bars represent shipment forecast range.

4.2 – 4.7mmt

• Lower farm retail

prices (due to support

MRP and subsidy

changes) expected to

support consumption

growth

Other Asia

8.8 – 9.3mmt

• Supportive crop

economics and the

absence of lengthy

contract deferrals are

expected to support

normalized demand

North America

9.3 – 9.8mmt

• Significant removal of

nutrients following

record crop along with

attractive potash price

likely to support

strong demand

Latin America

11.5 – 12.0mmt

• Agronomic need and

increased crop

acreage expected to

support demand

growth

China

14.5 – 15.5mmt

• Lower inventories,

more timely contract

settlements, and

strong consumption

trends expected to

support shipments

2017

Hig

hlig

hts

Global Potash Shipment Estimate by Market (Million Tonnes KCl)

Previous Record:

6.3mmt (2010)

Previous Record:

9.5mmt (2014)

Previous Record:

11.1mmt (1997)

Previous Record:

11.7mmt (2014)

Previous Record:

15.8mmt (2015)

World Potash Inventory Changes

Inventory Has Been Drawn Down at Both Producer and Distribution Level

Source: CRU TFI, Company Reports, PotashCorp

Estimated Inventory Change Million Tonnes (KCl)

-4.0

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

2010 2014 2015 2016F 2012 2011 2013

Estimated Distributor Inventory Change (Shipments less Consumption)

Estimated Producer Inventory Change (Production less Sales)

Source: Fertecon, CRU, PotashCorp

Potash Shipments Historical Trends

Late Chinese Contract Settlement Has Historically Created a Rebound in Demand

0

20

40

60

80

+5%

+87% +15%

2017F 2016F 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Denotes years when China has had early potash contract settlements

Ju

ly

2006

No

Co

ntr

act

Denotes years when China has had late (post April) potash contract settlements

Note: 2016F & 2017F based on midpoint of shipment forecast range; all dates reflect timing of Canpotex settlement, with the

exception of 2016, which indicates first announced producer settlement

Ju

ly 2

016

Global Potash Shipment Estimates (Million Tonnes KCl)

Potash Mine Closures (Nameplate Capacity) Million Tonnes KCl

Source: Fertecon, CRU, Company Reports, PotashCorp

Approximately 7 Million Tonnes of Capacity Expected to Be Closed by 2020*

Announced Potash Mine Closures (2016-2020)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

URKA(Berezniki 2)***

POT(NB)

ICL (UK)

Vale(Brazil)

K+S(Germany)

IPI(West)

IPI(East)

Ore Depletion

Product Conversion**

Indefinite Suspension

* Based on changes disclosed in company reports and CRU estimates

** Conversion of KCl mines to specialty multi-nutrient products

*** Represents total mine capacity. Capacity depletion to begin in 2019 as per company reports

Source: Fertecon, CRU

Historically Low Operating Rates Due to Diminishing Profits

China’s Nutrient Profile

0

10

20

30

40

50

60

70

80

2010 2012 2014 2016F

Exports Domestic Sales

~52%

0

5

10

15

20

25

30

35

2010 2012 2014 2016F

Exports Domestic Sales

Nitrogen (Urea) Million Tonnes

Phosphate (DAP/MAP) Million Tonnes

Potash (KCl) Million Tonnes

Current

Operating

Rate*: ~60% ~89%

0

1

2

3

4

5

6

7

8

2010 2012 2014 2016F

Domestic Production

* Based on industry consultants’ estimates.

Ammonia Supply Overview

Global Ammonia Supply** (Million Tonnes)

Source: CRU, Fertecon, Company Reports, PotashCorp

3.4

2.0

1.5

Middle East

Projects

Other Asia

Projects

US

Projects 2016E

Capacity

220.4

0.6 0.2

Russia

Projects

0.8

***China

Projects

228.9

Other

Projects

8.5Mmt

2017F

Capacity

* Does not include smaller debottleneck projects

** Capacity is prorated for startup timing in the year

*** Net of additions and closures

~8.5MMT of new supply in 2017 with 40% in US

US Nitrogen Import Profile

Source: USDOC, PotashCorp

Ammonia (US) (Million Tonnes)

Ammonia

4.6

5.25.0

6.0

2014 2016F 2015 2013

Change in Imports:

-12%

Urea (US) (Million Tonnes)

Ammonia

6.5

7.27.5

6.5

Change in Imports:

-9%

2016F 2015 2014 2013

UAN (US) (Million Tonnes)

Ammonia

2.8

3.13.13.2

Change in Imports:

-10%

2016F 2015 2014 2013

Increased US Production to Reduce Dependency of Offshore Imports

Chinese Urea and UAN Exports

Source: CRU, Fertecon, PotashCorp

Ammonia

Urea (China) (Million Tonnes)

Ammonia

9.0

13.813.6

8.3

2013 2016F

10.0

2015 2014

UAN (China) (Thousand Tonnes)

Ammonia

420441

223

2016F 2015 2014 2013

Coal Cost Increase and Nitrogen Price Decrease Pressuring Exports

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2011 2012 2013 2014 2015 2016F 2017F 2018F 2019F 2020F

Morocco China Saudi Arabia Jordan Brazil Others Closures

Majority of New Capacity Being Developed in Saudi Arabia and Morocco

Global Phosphoric Acid Capacity Additions

Source: CRU, IFA, PotashCorp

Global Capacity Additions (Million Tonnes P2O5)

10 5 0

600

500

400

300

200

100

0

25 20 15

Exports - Million Tonnes (2016F)

$320/mt

Source: Profercy, PotashCorp

TAMPA

DAP Spot ($/MT FOB)

Nov 2016

2016E DAP/MAP Exporter Cash Cost Curve

$US/Tonne FOB Port

Export Cost

Cost Range

Russia Other

Middle

East Africa US China

DAP/MAP Exporter Cash Cost Curve

Current DAP Prices Appear to be At (or Below) Marginal Exporter Levels

China’s DAP Exports and India’s DAP Imports

Source: CRU, Fertecon, PotashCorp

Ammonia

DAP/MAP Exports (China) (Million Tonnes)

Ammonia

7.2

4.54.5

10.8

4.94.9

2016F

8.0

2015 2014 2011 2012 2013 2010

DAP Imports (India) (Million Tonnes)

Ammonia

5.8

3.63.5

6.26.4

7.6

2015 2014 2010

4.5

2013 2011 2012 2016F

China’s Trade Increasingly Dependent on Market in India

MAP Imports Million Tonnes

DAP Imports Million Tonnes

Source: USDOC, Piers, PotashCorp

0.0

0.2

0.4

0.6

0.8

1.0

1.2Russia Morocco China

Lithuania Mexico Others

Offshore Imports Remain Relatively Stable

US DAP/MAP Fertilizer Year Import Profile

0.0

0.2

0.4

0.6

0.8

1.0

1.2 Russia Morocco China

Mexico Canada Others

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