##### Table of Contents












---



##### 










Table of Contents


|                                                         |                                                               |                                                                                                     |   |    |    | 
|-------------------------------------------------------- | ------------------------------------------------------------- | --------------------------------------------------------------------------------------------------- | - | -- | -- | 
|                                                         |                                                               | Page                                                                                                |  
|                                                         |                                                               |                                                                                                     |  
|Letter to Shareholders                                   |                                                               |                                                                                                     | 1 |   
|Notice of Annual and Special Meeting of
    Shareholders |                                                               |                                                                                                     | 2 |   
|Management Proxy Circular                                |                                                               |                                                                                                     | 3 |   
|                                                         | Questions and Answers on Voting and
    Proxies               |                                                                                                     |   | 3  |   
|                                                         | Business of the Meeting                                       |                                                                                                     |   | 6  |   
|                                                         | Board of Directors                                            |                                                                                                     |   | 7  |   
|                                                         |                                                               | Nominees for Election to the Board of
    Directors                                                 |   |    | 7  | 
|                                                         |                                                               | Director Independence and Other
    Relationships                                                   |   |    | 11 | 
|                                                         |                                                               | Director Compensation                                                                               |   |    | 13 | 
|                                                         |                                                               | Attendance of Directors                                                                             |   |    | 18 | 
|                                                         |                                                               | At Risk Investment and Year
    Over Year Changes                                                 |   |    | 19 | 
|                                                         | Ownership of Shares                                           |                                                                                                     |   | 20 |   
|                                                         | Appointment of Auditors                                       |                                                                                                     |   | 21 |   
|                                                         | Adoption of 2007 Performance Option Plan                      |                                                                                                     |   | 22 |   
|                                                         | Corporate Governance                                          |                                                                                                     |   | 25 |   
|                                                         |                                                               | Statement of Corporate Governance
    Practices                                                     |   |    | 25 | 
|                                                         |                                                               | Report of the Audit Committee                                                                       |   |    | 25 | 
|                                                         |                                                               | Report on Corporate Governance and
    Nominating Matters                                           |   |    | 26 | 
|                                                         | Compensation                                                  |                                                                                                     |   | 29 |   
|                                                         |                                                               | Report of the Compensation Committee and
    Compensation Committee Responsibilities and Procedures |   |    | 29 | 
|                                                         |                                                               | Compensation Discussion and
    Analysis                                                            |   |    | 30 | 
|                                                         |                                                               | Executive Compensation                                                                              |   |    | 41 | 
|                                                         | Performance Graphs                                            |                                                                                                     |   | 49 |   
|                                                         | Directors and Officers
    Liability Insurance              |                                                                                                     |   | 50 |   
|                                                         | Voting Shares                                                 |                                                                                                     |   | 50 |   
|                                                         | 2008 Shareholder Proposals                                    |                                                                                                     |   | 50 |   
|                                                         | Additional Information                                        |                                                                                                     |   | 50 |   
|                                                         | Directors Approval                                           |                                                                                                     |   | 50 |   
|                                                         | Appendix A  Disclosure of
    Corporate Governance Practices |                                                                                                     |   | 51 |   
|                                                         | Appendix B  Resolution of
    Shareholders                   |                                                                                                     |   | 61 |   
|                                                         | Appendix C  2007 Performance
    Option Plan                 |                                                                                                     |   | 62 |   
|                                                         | Appendix D  Board of Directors
    Charter                   |                                                                                                     |   | 67 |   





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##### Table of Contents








| |  |               |  |                                        
| |  | ------------- |  | ---------------------------------------
| |  | (POTASH LOGO) |  | Potash Corporation of Saskatchewan Inc.












| |                                
| | -------------------------------
| | May 3, 2007                    
| | 10:30 a.m. (local time)        
| | Adam Ballroom                  
| | Delta Bessborough              
| | 601 Spadina Crescent East      
| | Saskatoon, Saskatchewan, Canada





Your vote and participation are very important.






|              |  |                                      
|------------- |  | -------------------------------------
|Sincerely,    |  |                                      
|-s- D.J. Howe |  | -s- W.J. Doyle                       
|D. J. HOWE    |  | W. J. DOYLE                          
|Board Chair   |  | President and Chief Executive Officer













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##### Table of Contents











Notice of Annual and Special Meeting of Shareholders






| |                                
| | -------------------------------
| | May 3, 2007                    
| | 10:30 a.m. (local time)        
| | Adam Ballroom                  
| | Delta Bessborough              
| | 601 Spadina Crescent East      
| | Saskatoon, Saskatchewan, Canada





|   |                                                                                                                                                                                                                                                                                                                                                                         
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|1. | to receive the consolidated financial statements of the
    Corporation for the fiscal year ended December 31, 2006 and
    the report of the auditors thereon;                                                                                                                                                                                                         
|  
|2. | to elect the Board of Directors for 2007;                                                                                                                                                                                                                                                                                                                               
|  
|3. | to appoint auditors for 2007;                                                                                                                                                                                                                                                                                                                                           
|  
|4. | to consider and, if deemed appropriate, adopt, with or without
    variation, a resolution (the full text of which is reproduced in
    Appendix B to the accompanying Management Proxy Circular)
    authorizing the Corporation to implement a new performance
    option plan, which is attached as Appendix C to the
    accompanying Management Proxy Circular; and
|  
|5. | to transact such other business as may properly come before the
    Meeting or any adjournments thereof.                                                                                                                                                                                                                                                                





| |                                   
| | ----------------------------------
| | BY ORDER OF THE BOARD OF DIRECTORS
|
| | -s- Joseph A. Podwika             
| | JOSEPH A. PODWIKA                 
| | Secretary                         

POTASH CORPORATION OF SASKATCHEWAN INC.


ST












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##### Table of Contents









Management Proxy Circular





Questions and Answers on Voting and Proxies




|   |                                                                                                                                                                
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|1. | Who can I call if I have questions about the information
    contained in this Management Proxy Circular or require
    assistance in completing my proxy form?



| |                                                                                                                                                                
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Georgeson Shareholder Communications Canada, Inc., the
    Corporations proxy solicitation agent, at 1-866-425-8527,
    for service in English and in French.



|   |                            
|-- | ---------------------------
|2. | Who is soliciting my proxy?



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The management of the Corporation. Solicitation of proxies will
    be primarily by mail, supplemented by telephone or other contact
    by employees of the Corporation (who will receive no additional
    compensation), and all such costs will be borne by the
    Corporation. We have retained the services of Georgeson for the
    solicitation of proxies in Canada and in the United States.
    Georgesons services are estimated to cost $25,000.



|   |                     
|-- | --------------------
|3. | On what am I voting?



| |             
| | ------------
| | Three items:



| |     |                                                                                         
| | --- | ----------------------------------------------------------------------------------------
| | (1) | the election of directors;                                                              
|
| | (2) | the appointment of auditors; and                                                        
|
| | (3) | a resolution authorizing the Corporation to implement a new
    performance option plan.



| |                                                                                                           
| | ----------------------------------------------------------------------------------------------------------
| | The Corporations Board of Directors and management
    recommend that you vote FORitems (1), (2) and (3).



|   |                         
|-- | ------------------------
|4. | Who is entitled to vote?



| |                                                                                                                                                                       
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Common shareholders as at the close of business on
    March 12, 2007 (the Record Date) or their duly
    appointed representatives will be entitled to cast a vote.
|
| | As at February 20, 2007, 104,991,924 common shares in
    the capital of the Corporation (the Shares) are
    entitled to be voted at the Meeting.                  



|   |                     
|-- | --------------------
|5. | By when must I vote?



| |                                                         
| | --------------------------------------------------------
| | This will depend on the way in which you will be voting:



| |     |                                                                                                                                                                                                                                                                                                                                                              
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | If you are a Registered Shareholder planning to attend the
    Meeting and wish to vote your Shares in person at the Meeting,
    your vote will be taken and counted at the Meeting.                                                                                                                                                                        
|
| | (2) | If you are a Registered Shareholder and voting using the proxy
    form, your proxy form should be received at the Toronto office
    of CIBC Mellon Trust Company by mail or facsimile prior to
    the commencement of the Meeting, or hand-delivered at the
    registration table on the day of the Meeting prior to the
    commencement of the Meeting.
|
| | (3) | If you are a Registered Shareholder and voting your proxy by
    telephone or Internet, your vote should be received by CIBC
    Mellon Trust Company no later than 11:00 p.m. (Saskatoon
    time) on Tuesday May 1, 2007.                                                                                                                                  
|
| | (4) | If you are a Non-Registered Shareholder and wish to attend the
    Meeting or vote by proxy, you should refer to Item 11.                                                                                                                                                                                                                                    





|   |                                                
|-- | -----------------------------------------------
|6. | How do I vote if I am a Registered Shareholder?



| |                                                                                                                                                                     
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | You are a Registered Shareholder if your name appears on your
    share certificate. The enclosed proxy form indicates whether you
    are a Registered Shareholder.
|
| | You can vote your Shares by proxy or in person at the Meeting if
    you are a Registered Shareholder:                                                              



| |     |         
| | --- | --------
| | (1) | By Proxy



| |                                                
| | -----------------------------------------------
| | There are four ways that you can vote by proxy:



| |     |             
| | --- | ------------
| | (a) | By Telephone



| |                                                                                                                                                                        
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Call 1-866-271-1207 from your touch-tone phone and follow the
    instructions (only available to Registered Shareholders resident
    in Canada or the United States).
|
| | You will need the control number located on the enclosed proxy
    form. You do not need to return your proxy form.                                                    



| |     |                
| | --- | ---------------
| | (b) | On the Internet



| |                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------
| | Go to www.eproxyvoting.com/potash and follow the instructions on
    screen.                                       
|
| | You will need the control number located on the enclosed proxy
    form. You do not need to return your proxy form.









---



##### Table of Contents





| |                                                                                                                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | At any time, CIBC Mellon may cease to provide telephone and
    Internet voting, in which case shareholders can elect to vote by
    mail, by fax or by attending the Meeting in person, as described
    below.



| |     |        
| | --- | -------
| | (c) | By Mail



| |                                                                                                           
| | ----------------------------------------------------------------------------------------------------------
| | By completing, dating and signing the enclosed proxy form and
    returning same in the envelope provided.



| |     |       
| | --- | ------
| | (d) | By Fax



| |                                                                                                                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | By completing, dating and signing the enclosed proxy form and
    forwarding same by fax to 1-866-781-3111 (toll-free within
    Canada and the United States) or 1-416-368-2502 (from any
    country other than Canada and the United States).



| |                                                                                                                                                                                                                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If your Shares are not registered in your name (e.g. if they are
    held through a bank, trust company, securities broker or other
    nominee), do not use the above fax number as it is reserved for
    Registered Shareholders. Instead, use the fax numbers, if any,
    provided by your nominee. See Item 11(1).



| |     |                                   
| | --- | ----------------------------------
| | (2) | By Attending the Meeting in Person



| |                                                                                            
| | -------------------------------------------------------------------------------------------
| | If you wish to vote in person at the Meeting, do not complete or
    return the proxy form.



|   |                                                                                  
|-- | ---------------------------------------------------------------------------------
|7. | What if I sign the proxy form as described in this Management
    Proxy Circular?



| |                                                                                                                                                                                                                                                                                                                                    
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Signing the proxy form gives authority to Mr. Dallas J.
    Howe, Mr. William J. Doyle, Mr. Wayne R. Brownlee or
    Mr. Joseph A. Podwika, all of whom are either directors or
    officers of the Corporation, to vote your Shares at the Meeting
    in accordance with your voting instructions.                               
|
| | A proxy must be in writingand must be executed by you or
    by your attorney authorized in writing or, if the shareholder is
    a corporation or other legal entity, by an officer or attorney
    thereof duly authorized. A proxy may also be completed over the
    telephone or over the Internet. See Items 6(1)(a) and (b).



|   |                                                                     
|-- | --------------------------------------------------------------------
|8. | Can I appoint someone other than these people to vote my
    Shares?



| |                                                                                                                                                                                                                                                                                                                                                     
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Yes. You have the right to appoint some other person of your
    choice, who need not be a shareholder, to attend and act on your
    behalf at the Meeting. If you wish to do so, please strike out
    those four printed names appearing on the proxy form, and insert
    the name of your chosen proxyholder in the space provided
    thereon.
|
| | You cannot appoint a person to vote your Shares other than
    our directors or officers whose printed names appear on the
    proxy form if you decide to vote by telephone or Internet.                                                                                                                                                           
|
| | It is important to ensure that any other person you appoint
    is attending the Meeting and is aware that his or her
    appointment has been made to vote your Shares.                                                                                                                                                                            



|   |                                                
|-- | -----------------------------------------------
|9. | How will my Shares be voted if I vote by proxy?



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The persons named in the proxy form must vote or withhold from
    voting your Shares in accordance with your instructions on the
    proxy form. In the absence of such instructions, however, your
    Shares will be voted FORthe election to the
    Corporations Board of Directors of the nominees as
    described in this Management Proxy Circular and on the proxy
    form, FORthe appointment of Deloitte & Touche LLP as
    auditors until the close of the next annual meeting, FORthe resolution authorizing the Corporation to implement a
    new performance option plan and FORmanagements
    proposals generally.



|    |                                                                        
|--- | -----------------------------------------------------------------------
|10. | If I change my mind, can I take back my proxy once I have
    given it?



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Yes. A shareholder who has voted by proxy may revoke it by
    voting again in any manner (telephone, Internet, mail or fax).
    In addition, you may revoke a voted proxy by depositing an
    instrument in writing (which includes another proxy form with a
    later date) executed by you or by your attorney authorized in
    writing with our Corporate Secretary at Suite 500,
    122 
    1st
    Avenue South, Saskatoon, Saskatchewan, Canada, S7K 7G3, at any
    time up to and including the last business day preceding the
    date of the Meeting, or any adjournment or postponement thereof
    or by depositing it with the Meeting chair on the day of the
    Meeting, or any adjournment or postponement thereof. You may
    also revoke a proxy in any other manner permitted by law.
|
| | Note that your participation in person in a vote by ballot at
    the Meeting will automatically revoke any proxy previously given
    by you in respect of business covered by that vote.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         



|    |                                                    
|--- | ---------------------------------------------------
|11. | How do I vote if I am a Non-Registered Shareholder?



| |                                                                                                                                                                                          
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | You are a Non-Registered (or Beneficial) Shareholder if your
    Shares are held through a bank, trust company, securities broker
    or other nominee.                                  
|
| | For most of you, the proxy form or the request for voting
    instructions sent or to be sent by your nominee indicates
    whether you are a Non-Registered (or Beneficial) Shareholder.
|
| | There are two ways that you can vote your Shares if you are a
    Non-Registered (or Beneficial) Shareholder:                                                                            



| |     |                                                 
| | --- | ------------------------------------------------
| | (1) | By Providing Voting Instructions to Your Nominee



| |                                                                                                                                                                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Your nominee is required to seek voting instructions from you in
    advance of the Meeting. Accordingly, you will receive, or have
    already received, from your nominee either a request for voting
    instructions or a proxy form for the number of Shares you hold.









---



##### Table of Contents





| |                                                                                                                                                                                                                                                                                                                                    
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Every nominee has its own procedures which should be carefully
    followed by Non-Registered Shareholders to ensure that their
    Shares are voted at the Meeting. These procedures generally
    allow voting by telephone, on the Internet, by mail or by fax.
    Please contact your nominee for instructions in this regard.
|
| | If your Shares are not registered in your name, do not use the
    fax number in 6(1)(d) as this number is reserved for Registered
    Shareholders.                                                                                                                                                                               



| |     |                                   
| | --- | ----------------------------------
| | (2) | By Attending the Meeting in Person



| |                                                                                                                                                                                                                                                                                                                                                           
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If you wish to vote in person at the Meeting, insert your own
    name in the space provided on the request for voting
    instructions or proxy form to appoint yourself as proxyholder
    and follow the instructions of your nominee.                                                                                                                 
|
| | Non-Registered Shareholders who instruct their nominee to
    appoint themselves as proxyholders should, at the Meeting,
    present themselves to a representative of CIBC Mellon at the
    table identified as Beneficial Shareholders. Do not
    otherwise complete the form sent to you as your vote will be
    taken and counted at the Meeting.



|    |                                                                                                     
|--- | ----------------------------------------------------------------------------------------------------
|12. | What if amendments are made to these matters or if other
    matters are brought before the Meeting?



| |                                                                                                                                                                                                                                                                                                                                 
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The person named in the proxy form has discretionary
    authority with respect to amendments or variations to matters
    identified in the Notice of the Meeting and to other matters
    which may properly come before the Meeting.                                                                                         
|
| | As of the date of this Management Proxy Circular, our management
    knows of no such amendment, variation or other matter expected
    to come before the Meeting. If any other matters properly come
    before the Meeting, the persons named in the proxy form will
    vote on them in accordance with their best judgment.



|    |                               
|--- | ------------------------------
|13. | How will the votes be counted?



| |                                                                                                                                                                                                                                          
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | All matters to be considered at the Meeting will each be
    determined by a majority of votes cast at the Meeting by proxy
    or in person. In the event of equal votes, the Meeting chair is
    entitled to a second or casting vote.



|    |                                      
|--- | -------------------------------------
|14. | How can I contact the transfer agent?



| |                                               
| | ----------------------------------------------
| | You can contact the transfer agent as follows:
|
| | By mail:                                      

| |  |                          
| |  | -------------------------
| |  | CIBC Mellon Trust Company

| |                                 
| | --------------------------------
| | P.O. Box 7010                   
| | Adelaide Street Postal Station  
| | Toronto, Ontario, Canada M5C 2W9



| |              
| | -------------
| | By telephone:

| |                                                                                 
| | --------------------------------------------------------------------------------
| | 1-800-387-0825 (toll-free within Canada and the United States)                  
| | or 1-416-643-5500 (from any country other than Canada and the
    United States)



| |        
| | -------
| | By fax:

| |                               
| | ------------------------------
| | 1-416-643-5501 (all countries)



| |                      
| | ---------------------
| | Through the internet:

| |                   
| | ------------------
| | www.cibcmellon.com











---



##### Table of Contents






Business of the Meeting




|   |                     
|-- | --------------------
|1. | Financial Statements



| |                                                                                                                                                                                                                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Consolidated Financial Statements for the fiscal year ended
    December 31, 2006 are included in the Corporations
    Annual Report on
    Form 10-K for the
    fiscal year ended December 31, 2006 filed with the
    U.S. Securities and Exchange Commission (SEC)
    and the Canadian securities regulatory authorities.



|   |                                                    
|-- | ---------------------------------------------------
|2. | Nominees for Election to the
    Board of Directors



| |                                                                                                                                                                                                                                                                                                                                                                                                     
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The 12 nominees proposed for election as directors of the
    Corporation are listed beginning on page 7. All nominees
    have established their eligibility and willingness to serve as
    directors. Directors will hold office until the next annual
    meeting of shareholders of the Corporation or until their
    successors are elected or appointed.                                    
|
| | Unless otherwise instructed, the persons designated in the form
    of proxy intend to vote for the election of the nominees listed
    beginning on page 7. If, for any reason, at the time of the
    Meeting any of the nominees are unable to serve, it is intended
    that the persons designated in the form of proxy will vote in
    their discretion for a substitute nominee or nominees.



|   |                            
|-- | ---------------------------
|3. | Appointment of
    Auditors



| |                                                                                                                                                                                                                                                                                                                               
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Proxies solicited hereby will be voted to reappoint the firm of
    Deloitte & Touche LLP, the present auditors of the
    Corporation, as auditors of the Corporation to hold office until
    the next annual meeting of shareholders of the Corporation,
    unless the shareholder signing such proxy specifies otherwise.



|   |                                             
|-- | --------------------------------------------
|4. | Adoption of 2007 Performance
    Option Plan



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | At the Meeting, shareholders will be asked to consider and, if
    deemed appropriate, adopt, with or without variation, a
    resolution (the full text of which is reproduced as
    Appendix B to this Management Proxy Circular) authorizing
    the Corporation to implement a new performance option plan,
    which is attached as Appendix C to this Management Proxy
    Circular. Unless a proxy specifies otherwise, the persons
    designated in the form of proxy intend to vote for the
    resolution to approve the new performance option plan.











---



##### Table of Contents






Board of Directors





Nominees for Election to the
Board of Directors
















FREDERICK J. BLESI


(1)






(2)




|                                         |                                                                               |                                      |  |                                     
|---------------------------------------- | ----------------------------------------------------------------------------- | ------------------------------------ |  | ------------------------------------
|                                         |                                                                               |                                     
|Principal Areas of Expertise/Experience: |                                                                               | Value of At Risk
    Holdings(3):   
|                                         |                                                                              
|                                         | Fertilizer Industry
    Global/International Commerce
    Business Management |                                      |  | February
    2007(4):
    $1,607,452
|                                         |                                                                               |                                     
|Board Committee Membership:              |                                                                               | Board & Committee
    Attendance(5):
|                                         |                                                                              
|                                         | Audit
    Corporate Governance and Nominating                                 |                                      |  | 96%                                 
|                                         |                                                                               |                                     







WILLIAM J. DOYLE








(2)




|                                         |                                                                                               |                                      |  |                                      
|---------------------------------------- | --------------------------------------------------------------------------------------------- | ------------------------------------ |  | -------------------------------------
|                                         |                                                                                               |                                     
|Principal Areas of Expertise/Experience: |                                                                                               | Value of At Risk
    Holdings(3):   
|                                         |                                                                                              
|                                         | Fertilizer/Mining/Chemical Industry
    Global/International Commerce
    Business Management |                                      |  | February
    2007(4):
    $13,072,125
|                                         |                                                                                               |                                     
|Board Committee Membership:              |                                                                                               | Board & Committee
    Attendance(5):
|                                         |                                                                                              
|                                         | Executive                                                                                     |                                      |  | 100%                                 
|                                         |                                                                                               |                                     












---



##### Table of Contents









JOHN W. ESTEY








(2)




|                                         |                                                         |                                      |  |                                     
|---------------------------------------- | ------------------------------------------------------- | ------------------------------------ |  | ------------------------------------
|                                         |                                                         |                                     
|Principal Areas of Expertise/Experience: |                                                         | Value of At Risk
    Holdings(3):   
|                                         |                                                        
|                                         | Global/International Commerce
    Business Management   |                                      |  | February
    2007(4):
    $1,481,192
|                                         |                                                         |                                     
|Board Committee Membership:              |                                                         | Board & Committee
    Attendance(5):
|                                         |                                                        
|                                         | Compensation (chair)
    Safety, Health and Environment |                                      |  | 100%                                
|                                         |                                                         |                                     







WADE FETZER III








(2)




|                                         |                                                      |                                      |  |                                     
|---------------------------------------- | ---------------------------------------------------- | ------------------------------------ |  | ------------------------------------
|                                         |                                                      |                                     
|Principal Areas of Expertise/Experience: |                                                      | Value of At Risk
    Holdings(3):   
|                                         |                                                     
|                                         | Finance
    Accounting                               |                                      |  | February
    2007(4):
    $2,092,541
|                                         |                                                      |                                     
|Board Committee Membership:              |                                                      | Board & Committee
    Attendance(5):
|                                         |                                                     
|                                         | Corporate Governance and Nominating
    Compensation |                                      |  | 100%                                
|                                         |                                                      |                                     







DALLAS J. HOWE








(2)




|                                         |                                                                           |                                      |  |                                     
|---------------------------------------- | ------------------------------------------------------------------------- | ------------------------------------ |  | ------------------------------------
|                                         |                                                                           |                                     
|Principal Areas of Expertise/Experience: |                                                                           | Value of At Risk
    Holdings(3):   
|                                         |                                                                          
|                                         | e-Commerce/Technology
    Business Management                             |                                      |  | February
    2007(4):
    $4,359,271
|                                         |                                                                           |                                     
|Board Committee Membership:              |                                                                           | Board & Committee
    Attendance(5):
|                                         |                                                                          
|                                         | Board Chair
    Executive (chair)
    Corporate Governance and Nominating |                                      |  | 100%                                
|                                         |                                                                           |                                     












---



##### Table of Contents









ALICE D. LABERGE








(2)




|                                         |                                                  |                                      |  |                                     
|---------------------------------------- | ------------------------------------------------ | ------------------------------------ |  | ------------------------------------
|                                         |                                                  |                                     
|Principal Areas of Expertise/Experience: |                                                  | Value of At Risk
    Holdings(3):   
|                                         |                                                 
|                                         | e-Commerce/Technology
    Finance
    Accounting |                                      |  | February
    2007(4):
    $1,163,477
|                                         |                                                  |                                     
|Board Committee Membership:              |                                                  | Board & Committee
    Attendance(5):
|                                         |                                                 
|                                         | Audit (chair)
    Safety, Health and Environment |                                      |  | 100%                                
|                                         |                                                  |                                     







KEITH G. MARTELL






(2)




|                                         |                                                              |                                      |  |                             
|---------------------------------------- | ------------------------------------------------------------ | ------------------------------------ |  | ----------------------------
|                                         |                                                              |                                     
|Principal Areas of Expertise/Experience: |                                                              | Value of At Risk
    Holdings(3):   
|                                         |                                                             
|                                         | Finance/Accounting
    First Nations
    Business Management |                                      |  | February
    2007(4):
    $0
|                                         |                                                              |                                     
|Board Committee Membership:              |                                                              | Board & Committee
    Attendance(5):
|                                         |                                                             
|                                         | n/a                                                          |                                      |  | n/a                         
|                                         |                                                              |                                     







JEFFREY J. McCAIG








(2)


(6)


|                                         |                                                           |                                      |  |                                     
|---------------------------------------- | --------------------------------------------------------- | ------------------------------------ |  | ------------------------------------
|                                         |                                                           |                                     
|Principal Areas of Expertise/Experience: |                                                           | Value of At Risk
    Holdings(3):   
|                                         |                                                          
|                                         | Transportation Industry
    Legal
    Business Management |                                      |  | February
    2007(4):
    $1,613,412
|                                         |                                                           |                                     
|Board Committee Membership:              |                                                           | Board & Committee
    Attendance(5):
|                                         |                                                          
|                                         | Audit
    Compensation                                    |                                      |  | 100%                                
|                                         |                                                           |                                     












---



##### Table of Contents









MARY MOGFORD










(2)




|                                         |                                                       |                                      |  |                                     
|---------------------------------------- | ----------------------------------------------------- | ------------------------------------ |  | ------------------------------------
|                                         |                                                       |                                     
|Principal Areas of Expertise/Experience: |                                                       | Value of At Risk
    Holdings(2):   
|                                         |                                                      
|                                         | Finance
    Public Policy
    Corporate Governance    |                                      |  | February
    2007(3):
    $1,960,420
|                                         |                                                       |                                     
|Board Committee Membership:              |                                                       | Board & Committee
    Attendance(4):
|                                         |                                                      
|                                         | Corporate Governance and Nominating (chair)
    Audit |                                      |  | 100%                                
|                                         |                                                       |                                     







PAUL J.


SCHOENHALS








(2)




|                                         |                                                         |                                      |  |                                     
|---------------------------------------- | ------------------------------------------------------- | ------------------------------------ |  | ------------------------------------
|                                         |                                                         |                                     
|Principal Areas of Expertise/Experience: |                                                         | Value of At Risk
    Holdings(3):   
|                                         |                                                        
|                                         | Public Policy
    Business Management                   |                                      |  | February
    2007(4):
    $1,360,010
|                                         |                                                         |                                     
|Board Committee Membership:              |                                                         | Board & Committee
    Attendance(5):
|                                         |                                                        
|                                         | Safety, Health and Environment (chair)
    Compensation |                                      |  | 100%                                
|                                         |                                                         |                                     







E. ROBERT 
 STROMBERG, Q.C.










(2)




|                                         |                                                                                      |                                      |  |                                     
|---------------------------------------- | ------------------------------------------------------------------------------------ | ------------------------------------ |  | ------------------------------------
|                                         |                                                                                      |                                     
|Principal Areas of Expertise/Experience: |                                                                                      | Value of At Risk
    Holdings(3):   
|                                         |                                                                                     
|                                         | Global/International Commerce
    Legal                                              |                                      |  | February
    2007(4):
    $2,873,664
|                                         |                                                                                      |                                     
|Board Committee Membership:              |                                                                                      | Board & Committee
    Attendance(5):
|                                         |                                                                                     
|                                         | Executive
    Safety, Health and Environment
    Corporate Governance and Nominating |                                      |  | 100%                                
|                                         |                                                                                      |                                     












---



##### Table of Contents









ELENA VIYELLA DE PALIZA








(2)




|                                         |                                                         |                                      |  |                                     
|---------------------------------------- | ------------------------------------------------------- | ------------------------------------ |  | ------------------------------------
|                                         |                                                         |                                     
|Principal Areas of Expertise/Experience: |                                                         | Value of At Risk
    Holdings(3):   
|                                         |                                                        
|                                         | Fertilizer Industry
    Finance
    Business Management |                                      |  | February
    2007(4):
    $1,233,293
|                                         |                                                         |                                     
|Board Committee Membership:              |                                                         | Board & Committee
    Attendance(5):
|                                         |                                                        
|                                         | Executive
    Safety, Health and Environment            |                                      |  | 93%                                 
|                                         |                                                         |                                     

Ms. Paliza is not considered independent because of a
business relationship in a company in which
Ms. Palizas father and brother are interested parties
but in which Ms. Paliza has no interest. This relationship
is described in greater detail below.









|    |                                                                                                                                                                                                                                                                                                                                                                                                                                      
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Mr Blesi is 69 as of the date of this Management Proxy Circular,
    but will be 70, the retirement age for directors, as of the
    date of the annual meeting. The Board has evaluated its
    guideline relating to the retirement age for directors and
    determined that it is appropriate for Mr. Blesi to serve
    for an additional year to accommodate the Boards
    succession plan relating to his area of expertise.
|   
|(2) | See Director Independence and Other Relationships.                                                                                                                                                                                                                                                                                                                                                                                 
|   
|(3) | See At Risk Investments and Year Over Year Changes
    for additional detail.                                                                                                                                                                                                                                                                                                                                                      
|   
|(4) | Based on the closing price per Share on the New York Stock
    Exchange of $166.91 on February 20, 2007.                                                                                                                                                                                                                                                                                                                             
|   
|(5) | See Attendance of Directors for additional detail.                                                                                                                                                                                                                                                                                                                                                                                 
|   
|(6) | Mr. McCaig was a director of TCT Logistics Inc.
    (TCT) from June 2001 to January 2002. In January
    2002, a receiver was appointed over the business and assets of
    TCT by a creditor of TCT.                                                                                                                                                                                                                              






Director Independence and Other
Relationships


58-101 58-101),


S-K Securities Exchange Act of 1934 Exchange Act






|   |                                                                                                                    
|-- | -------------------------------------------------------------------------------------------------------------------
|1. | A director will not be considered independent if, currently or
    within the preceding three years, as applicable:



| |     |                                                                                                                                                            
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | the director is, or was, an employee or executive officer of the
    Corporation, including any affiliated entity of the Corporation;                      
|
| | (b) | an immediate family member of the director is, or was, an
    executive officer of the Corporation, including any affiliated
    entity of the Corporation;
|
| | (c) | the director is, or was, a partner of, employed by or affiliated
    with any of the Corporations present or former internal or
    external auditors;    









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##### Table of Contents





| |     |                                                                                                                                                                                                                                                                                                
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (d) | an immediate family member of the director is, or was, a partner
    of, employed by or affiliated with any of the Corporations
    present or former internal or external auditors as a partner,
    principal, manager or in any other capacity; or                                         
|
| | (e) | an executive officer of the Corporation serves or served on the
    compensation committee of an entity which, in turn, employs or
    employed either (i) the particular director as an executive
    officer or (ii) an immediate family member of such director
    as an executive officer.



|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2. | A director will not be considered independent if the director
    received any direct compensation, or an immediate family member
    of the director received more than $100,000 in direct
    compensation, within the past three fiscal years from the
    Corporation, other than director and committee fees and pension
    or other forms of deferred compensation for prior service
    (provided that such compensation is not contingent in any way on
    continued service).
|  
|3. | A director will not be considered independent if the director
    has any of the following commercial or charitable relationships:                                                                                                                                                                                                                                                                                                                                                      



| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | the director has served as an executive officer or employee of,
    or any of his or her immediate family members has served as an
    executive officer of, another company that makes payments to, or
    receives payments from, the Corporation for property or services
    in an amount that, in any one of the three most recent fiscal
    years, exceeds the greater of (x) $1,000,000 and
    (y) 2 percent of the annual consolidated gross
    revenues of the company for which such director, or any of his
    or her immediate family members, has served as an executive
    officer (or as an employee in the case of the director); or
|
| | (b) | the director has served as an officer, director or trustee of a
    charitable organization, and the Corporations
    discretionary charitable contributions to that organization
    exceeds 1.5 percent of that organizations total
    annual consolidated gross revenues within any one of the three
    most recent fiscal years (provided that the Corporations
    matching of employee charitable contributions will not be
    included in the amount of the Corporations contributions
    for this purpose).                                                                                                                              



|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|4. | Where a relationship exists as a result of a director who is a
    limited partner, a non-managing member or who occupies a similar
    position in an entity that does business with the Corporation,
    or who has a shareholding in such entity which is not
    significant, and who, in each case, has no active role in sales
    to, purchases from, or in providing services to the Corporation
    and derives no direct material benefit from same, such
    relationship shall be considered not to be material.





S-K Exchange Act,


Exchange Act,












---



##### Table of Contents








Director Compensation


2006 Director Compensation Package






Cash Compensation






Stock-Based Compensation




















---



##### Table of Contents





Stock Ownership Guidelines




Other Benefits




2007 Director Compensation Package




Cash Compensation




Stock-Based Compensation




Stock Ownership Guidelines


1 2


Director Share Purchase Plan




Other Benefits












---



##### Table of Contents



in accordance with
Item 402(k) of
Regulation S-K. The amounts set forth for each director in the Stock
Awards and Total columns include the
appreciation in value of Deferred Share Units received prior
to 2006 pursuant to the Plan.


2006 Director Compensation


(see explanatory notes)


|                          |  |                |         |              |  |               |         |                |  |              |   |              |  |       |   |  |  |  |   |  |  |  |       |  |  |  |         |  | 
|------------------------- |  | -------------- | ------- | ------------ |  | ------------- | ------- | -------------- |  | ------------ | - | ------------ |  | ----- | - |  |  |  | - |  |  |  | ----- |  |  |  | ------- |  | 
|                          |  |                |         |              |  |               |         |                |  |              |   |              |  |       |  
|                          |  |                |         |              |  |               |         |                |  | Change in    |   |              |  |       |  
|                          |  |                |         |              |  |               |         |                |  | Pension      |   |              |  |       |  
|                          |  |                |         |              |  |               |         |                |  | Value and    |   |              |  |       |  
|                          |  |                |         |              |  |               |         | Non-Equity     |  | Nonqualified |   |              |  |       |  
|                          |  | Fees Earned or |         |              |  |               |         | Incentive Plan |  | Deferred     |   | All Other    |  |       |  
|                          |  | Paid in Cash   |         | Stock Awards |  | Option Awards |         | Compensation   |  | Compensation |   | Compensation |  | Total |  
|Name                      |  | ($)(2)         |         | ($)(2)(3)    |  | ($)(4)        |         | ($)            |  | Earnings     |   | ($)(5)       |  | ($)   |  
|(a)                       |  | (b)            |         | (c)          |  | (d)           |         | (e)            |  | (f)          |   | (g)          |  | (h)   |  
|                          |  |                |         |              |  |               |         |                |  |              |   |              |  |       |  
|Frederick J. Blesi        |  |                | 35,500  |              |  |               | 557,113 | (6)            |  |              |  |              |  |       |  |  |  |  |  |  |  |  | 2,535 |  |  |  | 595,148 |  | 
|                          |  |                |         |              |  |               |         |                |  |              |   |              |  |       |   |  |  |  |   |  |  |  |       |  |  |  |         |  | 
|William J.
    Doyle(7)   |  |                |        |              |  |               |        |                |  |              |  |              |  |       |  |  |  |  |  |  |  |  |      |  |  |  |        |  | 
|                          |  |                |         |              |  |               |         |                |  |              |   |              |  |       |   |  |  |  |   |  |  |  |       |  |  |  |         |  | 
|John W. Estey             |  |                |        |              |  |               | 538,582 | (8)            |  |              |  |              |  |       |  |  |  |  |  |  |  |  | 2,407 |  |  |  | 540,989 |  | 
|                          |  |                |         |              |  |               |         |                |  |              |   |              |  |       |   |  |  |  |   |  |  |  |       |  |  |  |         |  | 
|Wade Fetzer III           |  |                | 74,000  |              |  |               | 256,986 | (9)            |  |              |  |              |  |       |  |  |  |  |  |  |  |  | 2,618 |  |  |  | 333,604 |  | 
|                          |  |                |         |              |  |               |         |                |  |              |   |              |  |       |   |  |  |  |   |  |  |  |       |  |  |  |         |  | 
|Dallas J. Howe            |  |                | 140,000 |              |  |               | 852,414 | (10)           |  |              |  |              |  |       |  |  |  |  |  |  |  |  | 2,811 |  |  |  | 995,225 |  | 
|                          |  |                |         |              |  |               |         |                |  |              |   |              |  |       |   |  |  |  |   |  |  |  |       |  |  |  |         |  | 
|Alice D. Laberge          |  |                | 85,093  |              |  |               | 358,080 | (11)           |  |              |  |              |  |       |  |  |  |  |  |  |  |  | 2,699 |  |  |  | 445,872 |  | 
|                          |  |                |         |              |  |               |         |                |  |              |   |              |  |       |   |  |  |  |   |  |  |  |       |  |  |  |         |  | 
|Jeffrey J. McCaig         |  |                | 40,500  |              |  |               | 559,387 | (12)           |  |              |  |              |  |       |  |  |  |  |  |  |  |  | 1,907 |  |  |  | 601,794 |  | 
|                          |  |                |         |              |  |               |         |                |  |              |   |              |  |       |   |  |  |  |   |  |  |  |       |  |  |  |         |  | 
|Mary Mogford              |  |                | 100,500 |              |  |               | 524,934 | (13)           |  |              |  |              |  |       |  |  |  |  |  |  |  |  | 4,258 |  |  |  | 629,692 |  | 
|                          |  |                |         |              |  |               |         |                |  |              |   |              |  |       |   |  |  |  |   |  |  |  |       |  |  |  |         |  | 
|Paul J. Schoenhals        |  |                | 58,696  |              |  |               | 446,328 | (14)           |  |              |  |              |  |       |  |  |  |  |  |  |  |  | 2,903 |  |  |  | 507,927 |  | 
|                          |  |                |         |              |  |               |         |                |  |              |   |              |  |       |   |  |  |  |   |  |  |  |       |  |  |  |         |  | 
|E. Robert Stromberg, Q.C. |  |                | 79,500  |              |  |               | 386,086 | (15)           |  |              |  |              |  |       |  |  |  |  |  |  |  |  | 4,264 |  |  |  | 469,850 |  | 
|                          |  |                |         |              |  |               |         |                |  |              |   |              |  |       |   |  |  |  |   |  |  |  |       |  |  |  |         |  | 
|Jack G. Vicq              |  |                | 91,407  |              |  |               | 299,893 | (16)           |  |              |  |              |  |       |  |  |  |  |  |  |  |  | 482   |  |  |  | 391,782 |  | 
|                          |  |                |         |              |  |               |         |                |  |              |   |              |  |       |   |  |  |  |   |  |  |  |       |  |  |  |         |  | 
|Elena Viyella de Paliza   |  |                | 76,500  |              |  |               | 343,057 | (17)           |  |              |  |              |  |       |  |  |  |  |  |  |  |  | 2,769 |  |  |  | 422,326 |  | 
|                          |  |                |         |              |  |               |         |                |  |              |   |              |  |       |   |  |  |  |   |  |  |  |       |  |  |  |         |  | 



|    |                                                                                                                                                                                                
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Those amounts that were paid in Canadian dollars have been
    converted to United States dollars using the average exchange
    rate for the month prior to the date of payment.              
|   
|(2) | The following table sets forth each directors annual
    retainer, meeting and other fees for fiscal year 2006 that were
    received in the form of cash or deferred to Deferred Share Units.

Remuneration of Directors


For the Fiscal Year Ended December 31, 2006


|                          |  |                 |         |             |                        |  |         |  |             |  |  |                 |  |              |  |                   |  |  |  |  |         |  |  |  |           |  |  |  |        |  | 
|------------------------- |  | --------------- | ------- | ----------- | ---------------------- |  | ------- |  | ----------- |  |  | --------------- |  | ------------ |  | ----------------- |  |  |  |  | ------- |  |  |  | --------- |  |  |  | ------ |  | 
|                          |  |                 |         |             |                        |  |         |  |             |  |  |                 |  |              |  |                   | 
|                          |  |                 |         |             |                        |  |         |  |             |  |  |                 |  |              |  | Percentage        | 
|                          |  | Annual Retainer |         |             | Meeting and Other Fees |  |         |  |             |  |  | of Total        | 
|                          |  |                 |         |             |                        |  |         |  |             |  |  | Annual Grant of |  |              |  | Remuneration      | 
|                          |  |                 |         | Deferred    |                        |  |         |  | Deferred    |  |  | Deferred Share  |  | Total        |  | in Deferred Share | 
|                          |  | Cash            |         | Share Units |                        |  | Cash    |  | Share Units |  |  | Units           |  | Remuneration |  | Units             | 
|Name                      |  | ($)             |         | ($)         |                        |  | ($)     |  | ($)         |  |  | ($)             |  | ($)          |  | (%)               | 
|                          |  |                 |         |             |                        |  |         |  |             |  |  |                 |  |              |  |                   | 
|Frederick J. Blesi        |  |                 | 0       |             |                        |  | 50,000  |  |             |  |  | 35,500          |  |              |  | 0                 |  |  |  |  | 55,000  |  |  |  | 140,500   |  |  |  | 74.73  |  | 
|                          |  |                 |         |             |                        |  |         |  |             |  |  |                 |  |              |  |                   |  |  |  |  |         |  |  |  |           |  |  |  |        |  | 
|William J. Doyle          |  |                 |        |             |                        |  |        |  |             |  |  |                |  |              |  |                  |  |  |  |  |        |  |  |  |          |  |  |  |       |  | 
|                          |  |                 |         |             |                        |  |         |  |             |  |  |                 |  |              |  |                   |  |  |  |  |         |  |  |  |           |  |  |  |        |  | 
|John W. Estey             |  |                 | 0       |             |                        |  | 50,000  |  |             |  |  | 0               |  |              |  | 37,000            |  |  |  |  | 55,000  |  |  |  | 142,000   |  |  |  | 100.00 |  | 
|                          |  |                 |         |             |                        |  |         |  |             |  |  |                 |  |              |  |                   |  |  |  |  |         |  |  |  |           |  |  |  |        |  | 
|Wade Fetzer III           |  |                 | 50,000  |             |                        |  | 0       |  |             |  |  | 24,000          |  |              |  | 0                 |  |  |  |  | 55,000  |  |  |  | 129,000   |  |  |  | 42.64  |  | 
|                          |  |                 |         |             |                        |  |         |  |             |  |  |                 |  |              |  |                   |  |  |  |  |         |  |  |  |           |  |  |  |        |  | 
|Dallas J. Howe            |  |                 | 140,000 |             |                        |  | 0       |  |             |  |  | 0               |  |              |  | 0                 |  |  |  |  | 140,000 |  |  |  | 280,000   |  |  |  | 50.00  |  | 
|                          |  |                 |         |             |                        |  |         |  |             |  |  |                 |  |              |  |                   |  |  |  |  |         |  |  |  |           |  |  |  |        |  | 
|Alice D. Laberge          |  |                 | 37,500  |             |                        |  | 12,500  |  |             |  |  | 47,593          |  |              |  | 0                 |  |  |  |  | 55,000  |  |  |  | 152,593   |  |  |  | 44.24  |  | 
|                          |  |                 |         |             |                        |  |         |  |             |  |  |                 |  |              |  |                   |  |  |  |  |         |  |  |  |           |  |  |  |        |  | 
|Jeffrey J. McCaig         |  |                 | 0       |             |                        |  | 50,000  |  |             |  |  | 40,500          |  |              |  | 0                 |  |  |  |  | 55,000  |  |  |  | 145,500   |  |  |  | 72.16  |  | 
|                          |  |                 |         |             |                        |  |         |  |             |  |  |                 |  |              |  |                   |  |  |  |  |         |  |  |  |           |  |  |  |        |  | 
|Mary Mogford              |  |                 | 50,000  |             |                        |  | 0       |  |             |  |  | 50,500          |  |              |  | 0                 |  |  |  |  | 55,000  |  |  |  | 155,500   |  |  |  | 35.37  |  | 
|                          |  |                 |         |             |                        |  |         |  |             |  |  |                 |  |              |  |                   |  |  |  |  |         |  |  |  |           |  |  |  |        |  | 
|Paul J. Schoenhals        |  |                 | 33,350  |             |                        |  | 16,650  |  |             |  |  | 25,346          |  |              |  | 12,654            |  |  |  |  | 55,000  |  |  |  | 143,000   |  |  |  | 58.95  |  | 
|                          |  |                 |         |             |                        |  |         |  |             |  |  |                 |  |              |  |                   |  |  |  |  |         |  |  |  |           |  |  |  |        |  | 
|E. Robert Stromberg, Q.C. |  |                 | 50,000  |             |                        |  | 0       |  |             |  |  | 29,500          |  |              |  | 0                 |  |  |  |  | 55,000  |  |  |  | 134,500   |  |  |  | 40.89  |  | 
|                          |  |                 |         |             |                        |  |         |  |             |  |  |                 |  |              |  |                   |  |  |  |  |         |  |  |  |           |  |  |  |        |  | 
|Jack G. Vicq              |  |                 | 50,000  |             |                        |  | 0       |  |             |  |  | 41,407          |  |              |  | 0                 |  |  |  |  | 55,000  |  |  |  | 146,407   |  |  |  | 37.57  |  | 
|                          |  |                 |         |             |                        |  |         |  |             |  |  |                 |  |              |  |                   |  |  |  |  |         |  |  |  |           |  |  |  |        |  | 
|Elena Viyella de Paliza   |  |                 | 50,000  |             |                        |  | 0       |  |             |  |  | 26,500          |  |              |  | 0                 |  |  |  |  | 55,000  |  |  |  | 131,500   |  |  |  | 41.83  |  | 
|                          |  |                 |         |             |                        |  |         |  |             |  |  |                 |  |              |  |                   |  |  |  |  |         |  |  |  |           |  |  |  |        |  | 
|Total                     |  |                 | 460,850 |             |                        |  | 179,150 |  |             |  |  | 320,846         |  |              |  | 49,654            |  |  |  |  | 690,000 |  |  |  | 1,700,500 |  |  |  | 54.03  |  | 
|                          |  |                 |         |             |                        |  |         |  |             |  |  |                 |  |              |  |                   |  |  |  |  |         |  |  |  |           |  |  |  |        |  | 



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(3) | Reports the amounts recognized for fiscal year 2006 US GAAP
    financial statement reporting purposes in accordance with FAS
    123R for Deferred Share Units received pursuant to the Plan.
    Deferred Share Units are settled in cash upon a directors
    retirement and, therefore, are considered a liability award
    under FAS 123R. As such, we recognize amounts attributable to
    (1) the annual increase or decrease in the value of
    outstanding Deferred Share Units received prior to









---



##### Table of Contents



| |                                                                                                                                                                                                                                                                                                                              
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2006, which value is based on the
    annual increase or decrease in the market price of our Shares as
    measured on the last trading day of each year, and (2) the
    value of Deferred Share Units received in 2006, which value is
    based on the market price of our Shares on the last trading day
    of the year.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The amounts set forth in column (c) above primarily reflect
    amounts recognized for the 2006 increase in the value of
    outstanding Deferred Share Units received prior to 2006. This
    increase in value is based on the 2006 increase in the price of
    our Shares on the NYSE from $80.22 to $143.48. The amounts set
    forth in column (c) also reflect amounts recognized for the
    value of Deferred Share Units received in 2006, which value is
    based on $143.48, the price of our Shares on the NYSE on the
    last trading day of 2006. On November 16, 2006, each
    outside director received 399 discretionary Deferred Share
    Units, except for the Board Chair, Mr. Howe, who received
    1,015 discretionary Deferred Share Units. Furthermore, each
    outside director was permitted to defer, in the form of Deferred
    Share Units, up to 100% of the annual retainer fees and any
    other fees payable to such director in respect of serving as a
    director, which we would otherwise have paid in cash. See
    Remuneration of Directors in footnote
    (2) above. The number of Deferred Share Units that each
    director elected to receive in Deferred Share Units, as opposed
    to cash, was determined by the closing price of our Shares on
    the last trading day of the quarter in which such fees were
    earned (on the basis of the closing price on the TSX for
    residents of Canada and on the basis of the closing price on the
    NYSE for all other participants) (Cdn$102.80 and $88.09 for the
    quarter ended March 31, 2006, Cdn$95.60 and $85.97 for the
    quarter ended June 30, 2006, Cdn$116.02 and $104.19 for the
    quarter ended September 30, 2006 and Cdn$167.00 and $143.48
    for the quarter ended December 31, 2006).
|
| | As of December 31, 2006, the total number of all Deferred
    Share Units held by each outside director is as follows:
    Mr. Blesi, 7,623; Mr. Estey, 6,867; Mr. Fetzer, 3,533;
    Mr. Howe, 12,105; Ms. Laberge, 4,966; Mr. McCaig,
    7,658; Ms. Mogford, 7,737; Mr. Schoenhals, 6,142;
    Mr. Stromberg, 5,558; Mr. Vicq, 4,206; and
    Ms. Viyella de Paliza, 4,884.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    



|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(4)  | As of December 31, 2006, the total number of outstanding
    options held by each outside director is as follows:
    Mr. Blesi, 6,000; Mr. Estey, 0; Mr. Fetzer, 3,000;
    Mr. Howe, 32,400; Ms. Laberge, 0; Mr. McCaig,
    26,000; Ms. Mogford, 6,000; Mr. Schoenhals, 0;
    Mr. Stromberg, 13,200; Mr. Vicq, 0; and
    Ms. Viyella de Paliza, 0.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    
|(5)  | Reports the cost of tax gross-ups for taxable benefits and life
    insurance premiums paid for the benefit of each director.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    
|(6)  | Includes $423,184 for appreciation in the value of the 6,689.60
    Deferred Share Units received by Mr. Blesi prior to 2006,
    $57,249 (399.00 units) for the 2006 grant of discretionary
    Deferred Share Units, $70,936 (494.39 units) for Deferred Share
    Units representing 2006 fees deferred by Mr. Blesi and $5,745
    for 2006 dividends on Mr. Blesis Deferred Share
    Units, which dividends were granted in the form of 40.04
    additional Deferred Share Units. The grant date fair value of
    each grant of Deferred Share Units received by Mr. Blesi in
    2006 is as follows: February 13, 2006 dividend of $1,003
    (10.77 units), March 31, 2006 deferred retainer of $12,500
    (141.90 units), May 12, 2006 dividend of $1,026 (10.40
    units), June 30, 2006 deferred retainer of $12,500 (145.40
    units), August 11, 2006 dividend of $1,050 (10.90 units),
    September 30, 2006 deferred retainer of $12,500 (119.97
    units), November 13, 2006 dividend of $1,069 (7.98 units),
    November 16, 2006 discretionary grant of $55,000 (399.00
    units) and December 31, 2006 deferred retainer of $12,500
    (87.12 units).                           
|    
|(7)  | As CEO, any compensation Mr. Doyle receives is disclosed in
    the Summary Compensation Table for Named Executive Officers (as
    defined below). See Executive Compensation 
    Summary Compensation Table.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    
|(8)  | Includes $352,293 for appreciation in the value of the 5,568.98
    Deferred Share Units received by Mr. Estey prior to 2006,
    $57,249 (399.00 units) for the 2006 grant of discretionary
    Deferred Share Units, $124,101 (864.94 units) for Deferred Share
    Units representing 2006 fees deferred by Mr. Estey and $4,939
    for 2006 dividends on Mr. Esteys Deferred Share
    Units, which dividends were granted in the form of 34.42
    additional Deferred Share Units. The grant date fair value of
    each grant of Deferred Share Units received by Mr. Estey in
    2006 is as follows: February 13, 2006 dividend of $835
    (8.96 units), March 31, 2006 deferred retainer and fees of
    $24,000 (272.45 units), May 12, 2006 dividend of $878 (8.89
    units), June 30, 2006 deferred retainer and fees of $20,500
    (238.46 units), August 11, 2006 dividend of $915 (9.50
    units), September 30, 2006 deferred retainer and fees of
    $22,000 (211.15 units), November 13, 2006 dividend of $948
    (7.07 units), November 16, 2006 discretionary grant of
    $55,000 (399.00 units) and December 31, 2006 deferred
    retainer and fees of $20,500 (142.88 units).
|    
|(9)  | Includes $197,136 of appreciation in the value of the 3,116.28
    Deferred Share Units received by Mr. Fetzer prior to 2006,
    $57,249 (399.00 units) for the 2006 grant of discretionary
    Deferred Share Units and $2,602 for 2006 dividends on
    Mr. Fetzers Deferred Share Units, which dividends
    were granted in the form of 18.13 additional Deferred Share
    Units. The grant date fair value of each grant of Deferred Share
    Units received by Mr. Fetzer in 2006 is as follows:
    February 13, 2006 dividend of $467 (5.02 units),
    May 12, 2006 dividend of $468 (4.74 units), August 11,
    2006 dividend of $469 (4.87 units), November 13, 2006
    dividend of $470 (3.50 units) and November 16, 2006
    discretionary grant of $55,000 (399.00 units).                                                                                                                                                                                                                                                                                                                                                                                                               
|    
|(10) | Includes $697,473 for appreciation in the value of the 11,025.49
    Deferred Share Units received by Mr. Howe prior to 2006,
    $145,632 (1,015.00 units) for the 2006 grant of discretionary
    Deferred Share Units and $9,309 for 2006 dividends on
    Mr. Howes Deferred Share Units, which dividends were
    granted in the form of 64.88 additional Deferred Share Units.
    The grant date fair value of each grant of Deferred Share Units
    received by Mr. Howe in 2006 is as follows:
    February 13, 2006 dividend of $1,654 (17.64 units),
    May 12, 2006 dividend of $1,656 (17.48 units),
    August 11, 2006 dividend of $1,659 (17.46 units),
    November 13, 2006 dividend of $1,662 (12.30 units), and
    November 16, 2006 discretionary grant of $140,000 (1,015.00
    units).                                                                                                                                                                                                                                                                                                                                                                                            
|    
|(11) | Includes $279,474 for appreciation in the value of the 4,417.86
    Deferred Share Units received by Ms. Laberge prior to 2006,
    $57,249 (399.00 units) for the 2006 grant of discretionary
    Deferred Share Units, $17,587 (122.57 units) for Deferred Share
    Units representing 2006 fees deferred by Ms. Laberge and $3,770
    for 2006 dividends on Ms. Laberges Deferred Share
    Units, which dividends were granted in the form of 26.28
    additional Deferred Share Units. The grant date fair value of
    each grant of Deferred Share Units received by Ms. Laberge
    in 2006 is as follows: February 13, 2006 dividend of $663
    (7.07 units), March 31, 2006 deferred retainer of $3,125
    (34.93 units), May 12, 2006 dividend of $669 (7.06 units),
    June 30, 2006 deferred retainer of $3,125 (36.27 units),
    August 11, 2006 dividend of $675 (7.11 units),
    September 30, 2006 deferred retainer of $3,125 (30.12
    units), November 13, 2006 dividend of $681 (5.04 units),
    November 16, 2006 discretionary grant of $55,000 (399.00
    units) and December 31, 2006 deferred retainer of $3,125
    (21.26 units).                                     
|    
|(12) | Includes $425,428 for appreciation in the value of the 6,725.07
    Deferred Share Units received by Mr. McCaig prior to 2006,
    $57,249 (399.00 units) for the 2006 grant of discretionary
    Deferred Share Units, $70,936 (494.39 units) for Deferred Share
    Units representing 2006 fees deferred by Mr. McCaig and $5,775
    for 2006 dividends on Mr. McCaigs Deferred Share
    Units, which dividends were granted in the form of 40.25
    additional Deferred Share Units. The grant date fair value of
    each grant of Deferred Share Units received by Mr. McCaig
    in 2006 is as follows: February 13, 2006 dividend of $1,009
    (10.83 units), March 31, 2006 deferred retainer of $12,500
    (141.90 units), May 12, 2006 dividend of $1,032 (10.45
    units), June 30, 2006 deferred retainer of $12,500 (145.40
    units), August 11, 2006 dividend of $1,055 (10.95 units),
    September 30, 2006 deferred retainer of $12,500 (119.97
    units), November 13, 2006 dividend of $1,075 (8.02 units),
    November 16, 2006 discretionary grant of $55,000 (399.00
    units) and December 31, 2006 deferred retainer of $12,500
    (87.12 units).                       
|    
|(13) | Includes $461,526 for appreciation in the value of the 7,295.69
    Deferred Share Units received by Ms. Mogford prior to 2006,
    $57,249 (399.00 units) for the 2006 grant of discretionary
    Deferred Share Units and $6,160 for 2006 dividends on
    Ms. Mogfords Deferred Share Units, which dividends
    were granted in the form of 42.93 additional Deferred Share
    Units. The grant date fair value of each grant of Deferred Share
    Units received by Ms. Mogford in 2006 is as follows:
    February 13, 2006 dividend of $1,094 (11.67 units),
    May 12, 2006 dividend of $1,096 (11.57 units),
    August 11, 2006 dividend of $1,098 (11.55 units),
    November 13, 2006 dividend of $1,100 (8.14 units) and
    November 16, 2006 discretionary grant of $55,000 (399.00
    units).                                                                                                                                                                                                                                                                                                                                                                                            









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##### Table of Contents





|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(14) | Includes $342,976 for appreciation in the value of the 5,421.69
    Deferred Share Units received by Mr. Schoenhals prior to
    2006, $57,249 (399.00 units) for the 2006 grant of discretionary
    Deferred Share Units, $41,429 (288.74 units) for Deferred Share
    Units representing 2006 fees deferred by Mr. Schoenhals and
    $5,775 for 2006 dividends on Mr. Schoenhalss Deferred
    Share Units, which dividends were granted in the form of 32.58
    additional Deferred Share Units. The grant date fair value of
    each grant of Deferred Share Units received by
    Mr. Schoenhals in 2006 is as follows: February 13,
    2006 dividend of $813 (8.67 units), March 31, 2006 deferred
    retainer and fees of $8,159 (91.18 units), May 12, 2006
    dividend of $828 (8.74 units), June 30, 2006 deferred
    retainer and fees of $6,660 (77.30 units), August 11, 2006
    dividend of $841 (8.85 units), September 30, 2006 deferred
    retainer and fees of $7,659 (73.82 units), November 13,
    2006 dividend of $854 (6.32 units), November 16, 2006
    discretionary grant of $55,000 (399.00 units) and
    December 31, 2006 deferred retainer and fees of $6,826
    (46.44 units).
|    
|(15) | Includes $324,507 for appreciation in the value of the 5,129.73
    Deferred Share Units received by Mr. Stromberg prior to
    2006, $57,249 (399.00 units) for the 2006 grant of discretionary
    Deferred Share Units and $4,331 for 2006 dividends on
    Mr. Strombergs Deferred Share Units, which dividends
    were granted in the form of 30.19 additional Deferred Share
    Units. The grant date fair value of each grant of Deferred Share
    Units received by Mr. Stromberg in 2006 is as follows:
    February 13, 2006 dividend of $769 (8.21 units),
    May 12, 2006 dividend of $771 (8.13 units), August 11,
    2006 dividend of $772 (8.12 units), November 13, 2006
    dividend of $773 (5.72 units) and November 16, 2006
    discretionary grant of $55,000 (399.00 units).                                                                                                                                                                                                                                                                                                                                                                                                                    
|    
|(16) | Includes $239,448 for appreciation in the value of the 3,785.15
    Deferred Share Units received by Mr. Vicq prior to 2006,
    $57,249 (399.00 units) for the 2006 grant of discretionary
    Deferred Share Units and $3,196 for 2006 dividends on
    Mr. Vicqs Deferred Share Units, which dividends were
    granted in the form of 22.27 additional Deferred Share Units.
    The grant date fair value of each grant of Deferred Share Units
    received by Mr. Vicq in 2006 is as follows:
    February 13, 2006 dividend of $568 (6.06 units),
    May 12, 2006 dividend of $569 (6.00 units), August 11,
    2006 dividend of $570 (5.99 units), November 13, 2006
    dividend of $570 (4.22 units) and November 16, 2006
    discretionary grant of $55,000 (399.00 units).                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    
|(17) | Includes $282,085 for appreciation in the value of the 4,459.14
    Deferred Share Units received by Ms. Viyella de Paliza
    prior to 2006, $57,249 (399.00 units) for the 2006 grant of
    discretionary Deferred Share Units and $3,723 for 2006 dividends
    on Ms. Viyella de Palizas Deferred Share Units, which
    dividends were granted in the form of 25.95 additional Deferred
    Share Units. The grant date fair value of each grant of Deferred
    Share Units received by Ms. Viyella de Paliza in 2006 is as
    follows: February 13, 2006 dividend of $669 (7.18 units),
    May 12, 2006 dividend of $670 (6.79 units), August 11,
    2006 dividend of $671 (6.97 units), November 13, 2006
    dividend of $672 (5.01 units) and November 16, 2006
    discretionary grant of $55,000 (399.00 units).                                                                                                                                                                                                                                                                                                                                                                                            









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##### Table of Contents






Attendance of
Directors




|                                                          |  |           |   | 
|--------------------------------------------------------- |  | --------- | - | 
|                                                          |  | Number of
|Type of Meeting Held                                      |  | Meetings 
|                                                          |  |          
|Board of Directors                                        |  |           | 9 | 
|Audit Committee
    (AUD)                               |  |           | 9 | 
|Compensation Committee
    (COMP)                       |  |           | 6 | 
|Corporate Governance and
    Nominating Committee (GOV) |  |           | 5 | 
|Executive Committee
    (EXE)                           |  |           | 0 | 
|Safety, Health and
    Environment Committee (SHE)      |  |           | 5 | 

|                          |  |                         |               |                             |  |                       |      |  |  |  |                        |  |  |  |      |  |  |  |          |  |  |  |      | 
|------------------------- |  | ----------------------- | ------------- | --------------------------- |  | --------------------- | ---- |  |  |  | ---------------------- |  |  |  | ---- |  |  |  | -------- |  |  |  | ---- | 
|                          |  |                         |               |                             |  |                       |      | 
|                          |  |                         |               |                             |  | Total Board/Committee
|Director                  |  | Board meetings attended |               | Committee meetings attended |  | meetings attended    
|                          |  |                         |               |                             |  |                       |      | 
|Frederick J. Blesi        |  |                         | 8 of 9        |                             |  |                       | 89%  |  |  |  | 9 of 9 AUD             |  |  |  | 100% |  |  |  | 22 of 23 |  |  |  | 96%  | 
|                          |  |                         |               |                             |  |                       |      |  |  |  | 5 of 5 GOV             |  |  |  | 100% |  |  |  |          |  |  |  |      | 
|                          |  |                         |               |                             |  |                       |      |  |  |  |                        |  |  |  |      |  |  |  |          |  |  |  |      | 
|William J.
    Doyle(1)   |  |                         | 9 of 9        |                             |  |                       | 100% |  |  |  |                        |  |  |  |      |  |  |  | 9 of 9   |  |  |  | 100% | 
|                          |  |                         |               |                             |  |                       |      |  |  |  |                        |  |  |  |      |  |  |  |          |  |  |  |      | 
|John W. Estey             |  |                         | 9 of 9        |                             |  |                       | 100% |  |  |  | 6 of 6 COMP (Chair)    |  |  |  | 100% |  |  |  | 20 of 20 |  |  |  | 100% | 
|                          |  |                         |               |                             |  |                       |      |  |  |  | 5 of 5 SHE             |  |  |  | 100% |  |  |  |          |  |  |  |      | 
|                          |  |                         |               |                             |  |                       |      |  |  |  |                        |  |  |  |      |  |  |  |          |  |  |  |      | 
|Wade Fetzer III           |  |                         | 9 of 9        |                             |  |                       | 100% |  |  |  | 6 of 6 COMP            |  |  |  | 100% |  |  |  | 20 of 20 |  |  |  | 100% | 
|                          |  |                         |               |                             |  |                       |      |  |  |  | 5 of 5 GOV             |  |  |  | 100% |  |  |  |          |  |  |  |      | 
|                          |  |                         |               |                             |  |                       |      |  |  |  |                        |  |  |  |      |  |  |  |          |  |  |  |      | 
|Dallas J.
    Howe(2)     |  |                         | 9 of 9 (Chair | )                           |  |                       | 100% |  |  |  | 5 of 5 GOV             |  |  |  | 100% |  |  |  | 14 of 14 |  |  |  | 100% | 
|                          |  |                         |               |                             |  |                       |      |  |  |  |                        |  |  |  |      |  |  |  |          |  |  |  |      | 
|Alice D. Laberge          |  |                         | 9 of 9        |                             |  |                       | 100% |  |  |  | 9 of 9 AUD (Chair) (3) |  |  |  | 100% |  |  |  | 23 of 23 |  |  |  | 100% | 
|                          |  |                         |               |                             |  |                       |      |  |  |  | 5 of 5 SHE             |  |  |  | 100% |  |  |  |          |  |  |  |      | 
|                          |  |                         |               |                             |  |                       |      |  |  |  |                        |  |  |  |      |  |  |  |          |  |  |  |      | 
|Jeffrey J. McCaig         |  |                         | 9 of 9        |                             |  |                       | 100% |  |  |  | 9 of 9 AUD             |  |  |  | 100% |  |  |  | 24 of 24 |  |  |  | 100% | 
|                          |  |                         |               |                             |  |                       |      |  |  |  | 6 of 6 COMP            |  |  |  | 100% |  |  |  |          |  |  |  |      | 
|                          |  |                         |               |                             |  |                       |      |  |  |  |                        |  |  |  |      |  |  |  |          |  |  |  |      | 
|Mary Mogford              |  |                         | 9 of 9        |                             |  |                       | 100% |  |  |  | 9 of 9 AUD             |  |  |  | 100% |  |  |  | 23 of 23 |  |  |  | 100% | 
|                          |  |                         |               |                             |  |                       |      |  |  |  | 5 of 5 GOV (Chair)     |  |  |  | 100% |  |  |  |          |  |  |  |      | 
|                          |  |                         |               |                             |  |                       |      |  |  |  |                        |  |  |  |      |  |  |  |          |  |  |  |      | 
|Paul J. Schoenhals        |  |                         | 9 of 9        |                             |  |                       | 100% |  |  |  | 6 of 6 COMP            |  |  |  | 100% |  |  |  | 20 of 20 |  |  |  | 100% | 
|                          |  |                         |               |                             |  |                       |      |  |  |  | 5 of 5 SHE (Chair)     |  |  |  | 100% |  |  |  |          |  |  |  |      | 
|                          |  |                         |               |                             |  |                       |      |  |  |  |                        |  |  |  |      |  |  |  |          |  |  |  |      | 
|E. Robert Stromberg, Q.C. |  |                         | 9 of 9        |                             |  |                       | 100% |  |  |  | 5 of 5 GOV             |  |  |  | 100% |  |  |  | 19 of 19 |  |  |  | 100% | 
|                          |  |                         |               |                             |  |                       |      |  |  |  | 5 of 5 SHE             |  |  |  | 100% |  |  |  |          |  |  |  |      | 
|                          |  |                         |               |                             |  |                       |      |  |  |  |                        |  |  |  |      |  |  |  |          |  |  |  |      | 
|Jack G. Vicq              |  |                         | 9 of 9        |                             |  |                       | 100% |  |  |  | 9 of 9 AUD (Chair) (4) |  |  |  | 100% |  |  |  | 18 of 18 |  |  |  | 100% | 
|                          |  |                         |               |                             |  |                       |      |  |  |  |                        |  |  |  |      |  |  |  |          |  |  |  |      | 
|Elena Viyella de Paliza   |  |                         | 8 of 9        |                             |  |                       | 89%  |  |  |  | 5 of 5 SHE             |  |  |  | 100% |  |  |  | 13 of 14 |  |  |  | 93%  | 
|                          |  |                         |               |                             |  |                       |      |  |  |  |                        |  |  |  |      |  |  |  |          |  |  |  |      | 



|    |                                                                                                                                                                                                                               
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Mr. Doyle was a member of only the Executive Committee,
    which did not meet in 2006. However, upon invitation of the
    applicable committees, he did attend all or a portion of many of
    the committee meetings held. 
|   
|(2) | In addition to the committees of which he is a member,
    Mr. Howe, as Board Chair, regularly attends other committee
    meetings as well. Of the 20 such committee meetings held in
    2006, Mr. Howe attended 19 of them.
|   
|(3) | Appointed Chair of Audit Committee May 4, 2006.                                                                                                                                                                               
|   
|(4) | Served as Chair of Audit Committee until May 3, 2006.                                                                                                                                                                         











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##### Table of Contents






At Risk Investment
and Year Over Year Changes




|                        |  |          |      |  |      |        |        |     |  |        |        |         |          |          |             |           |           |  |           |           |          |           |                  |        |              |          |           |       |           |  |                     |  |  |  |      |  |  |  |         | 
|----------------------- |  | -------- | ---- |  | ---- | ------ | ------ | --- |  | ------ | ------ | ------- | -------- | -------- | ----------- | --------- | --------- |  | --------- | --------- | -------- | --------- | ---------------- | ------ | ------------ | -------- | --------- | ----- | --------- |  | ------------------- |  |  |  | ---- |  |  |  | ------- | 
|                        |  |          |      |  |      |        |        |     |  |        |        |         |          | Value of |             |           |           |  |           |           |         
|                        |  |          |      |  |      |        |        |     |  |        |        | Total   |          |          | Common      |           |           |  |           |           |          |          
|                        |  |          |      |  |      |        |        |     |  |        |        | At-Risk |          |          | Shares/DSUs |           |           |  |           | Equity at |          |           | Shares           |       
|                        |  |          |      |  |      |        |        |     |  | Common |        |         | Value of |          |             | Needed to |           |  |           |           | Risk     |           |                  | Deemed |             
|                        |  |          |      |  |      |        |        |     |  | Shares |        |         | Common   |          |             | Meet 2007 |           |  |           |           | Multiple |           |                  | to be  |             
|                        |  |          |      |  |      | Common |        |     |  |        | and    |         |          | Shares   |             |           | Ownership |  |           |           |          | of 2007   |                  |        | Beneficially |         
|                        |  | Director |      |  |      |        | Shares |     |  | DSUs   |        |         | DSUs     |          |             | and DSUs  |           |  | Guideline |           |          | Ownership |                  |        | Annual       |          |           | Owned |          
|                        |  | Since    |      |  | Year |        |        | (#) |  |        | (#)(1) |         |          | (#)      |             |           | ($)(2)    |  |           | ($)       |          |           | Guideline Met(3) |        |              | Retainer |           |       | (#)(4)(5) | 
|                        |  |          |      |  |      |        |        |     |  |        |        |         |          |          |             |           |           |  |           |           |          |           |                  |        |              |          |           |       |           | 
|Frederick J. Blesi      |  |          | 2001 |  |      |        | 2007   |     |  |        | 2,000  |         |          |          | 7,631       |           |           |  | 9,631     |           |          |           | 1,607,452        |        |              |          | 525,000   |       |           |  | Yes                 |  |  |  | 14.6 |  |  |  | 8,000   | 
|                        |  |          |      |  |      |        | 2006   |     |  |        | 2,000  |         |          |          | 6,700       |           |           |  | 8,700     |           |          |           | 835,635          |        |              |          |           |       |           |  |                     |  |  |  |      |  |  |  | 11,000  | 
|                        |  |          |      |  |      |        | Change |     |  |        |       |         |          |          | +931        |           |           |  | +931      |           |          |           |                  |        |              |          |           |       |           |  |                     |  |  |  |      |  |  |  | -3,000  | 
|                       
|William J. Doyle        |  |          | 1989 |  |      |        | 2007   |     |  |        | 78,318 |         |          |          |            |           |           |  | 78,318    |           |          |           | 13,072,125       |        |              |          | n/a       |       |           |  | n/a                 |  |  |  | n/a  |  |  |  | 790,764 | 
|                        |  |          |      |  |      |        | 2006   |     |  |        | 77,978 |         |          |          |            |           |           |  | 77,978    |           |          |           | 7,489,787        |        |              |          |           |       |           |  |                     |  |  |  |      |  |  |  | 790,490 | 
|                        |  |          |      |  |      |        | Change |     |  |        | +340   |         |          |          | n/a         |           |           |  | +340      |           |          |           |                  |        |              |          |           |       |           |  |                     |  |  |  |      |  |  |  | +274    | 
|                       
|John W. Estey           |  |          | 2003 |  |      |        | 2007   |     |  |        | 2,000  |         |          |          | 6,874       |           |           |  | 8,874     |           |          |           | 1,481,192        |        |              |          | 525,000   |       |           |  | Yes                 |  |  |  | 12.9 |  |  |  | 2,000   | 
|                        |  |          |      |  |      |        | 2006   |     |  |        | 2,000  |         |          |          | 5,577       |           |           |  | 7,577     |           |          |           | 727,771          |        |              |          |           |       |           |  |                     |  |  |  |      |  |  |  | 2,000   | 
|                        |  |          |      |  |      |        | Change |     |  |        |       |         |          |          | +1,297      |           |           |  | +1,297    |           |          |           |                  |        |              |          |           |       |           |  |                     |  |  |  |      |  |  |  |        | 
|                       
|Wade Fetzer III         |  |          | 2002 |  |      |        | 2007   |     |  |        | 9,000  |         |          |          | 3,537       |           |           |  | 12,537    |           |          |           | 2,092,541        |        |              |          | 525,000   |       |           |  | Yes                 |  |  |  | 19.9 |  |  |  | 12,000  | 
|                        |  |          |      |  |      |        | 2006   |     |  |        | 4,000  |         |          |          | 3,121       |           |           |  | 7,121     |           |          |           | 683,972          |        |              |          |           |       |           |  |                     |  |  |  |      |  |  |  | 7,000   | 
|                        |  |          |      |  |      |        | Change |     |  |        | +5,000 |         |          |          | +416        |           |           |  | +5,416    |           |          |           |                  |        |              |          |           |       |           |  |                     |  |  |  |      |  |  |  | +5,000  | 
|                       
|Dallas J. Howe          |  |          | 1991 |  |      |        | 2007   |     |  |        | 14,000 |         |          |          | 12,117      |           |           |  | 26,117    |           |          |           | 4,359,271        |        |              |          | 1,400,000 |       |           |  | Yes                 |  |  |  | 15.6 |  |  |  | 46,400  | 
|                        |  |          |      |  |      |        | 2006   |     |  |        | 8,000  |         |          |          | 11,043      |           |           |  | 19,043    |           |          |           | 1,829,080        |        |              |          |           |       |           |  |                     |  |  |  |      |  |  |  | 46,400  | 
|                        |  |          |      |  |      |        | Change |     |  |        | +6,000 |         |          |          | +1,074      |           |           |  | +7,074    |           |          |           |                  |        |              |          |           |       |           |  |                     |  |  |  |      |  |  |  |        | 
|                       
|Alice D. Laberge        |  |          | 2003 |  |      |        | 2007   |     |  |        | 2,000  |         |          |          | 4,971       |           |           |  | 6,971     |           |          |           | 1,163,477        |        |              |          | 525,000   |       |           |  | Yes                 |  |  |  | 10.0 |  |  |  | 2,000   | 
|                        |  |          |      |  |      |        | 2006   |     |  |        | 2,000  |         |          |          | 4,424       |           |           |  | 6,424     |           |          |           | 617,025          |        |              |          |           |       |           |  |                     |  |  |  |      |  |  |  | 2,000   | 
|                        |  |          |      |  |      |        | Change |     |  |        |       |         |          |          | +547        |           |           |  | +547      |           |          |           |                  |        |              |          |           |       |           |  |                     |  |  |  |      |  |  |  |        | 
|                       
|Keith G. Martell        |  |          |     |  |      |        | 2007   |     |  |        | 0      |         |          |          | n/a         |           |           |  | n/a       |           |          |           | n/a              |        |              |          | 525,000   |       |           |  | No                  |  |  |  | n/a  |  |  |  | 0       | 
|                        |  |          |      |  |      |        | 2006   |     |  |        | n/a    |         |          |          | n/a         |           |           |  | n/a       |           |          |           | n/a              |        |              |          |           |       |           |  | (to be fully met by |  |  |  |      |  |  |  | n/a     | 
|                        |  |          |      |  |      |        | Change |     |  |        | n/a    |         |          |          | n/a         |           |           |  | n/a       |           |          |           | n/a              |        |              |          |           |       |           |  | May 3, 2012)        |  |  |  |      |  |  |  | n/a     | 
|                       
|Jeffrey M. McCaig       |  |          | 2001 |  |      |        | 2007   |     |  |        | 2,000  |         |          |          | 7,666       |           |           |  | 9,666     |           |          |           | 1,613,412        |        |              |          | 525,000   |       |           |  | Yes                 |  |  |  | 14.7 |  |  |  | 28,000  | 
|                        |  |          |      |  |      |        | 2006   |     |  |        | 2,000  |         |          |          | 6,735       |           |           |  | 8,735     |           |          |           | 838,997          |        |              |          |           |       |           |  |                     |  |  |  |      |  |  |  | 28,000  | 
|                        |  |          |      |  |      |        | Change |     |  |        |       |         |          |          | +931        |           |           |  | +931      |           |          |           |                  |        |              |          |           |       |           |  |                     |  |  |  |      |  |  |  |        | 
|                       
|Mary Mogford            |  |          | 2001 |  |      |        | 2007   |     |  |        | 4,000  |         |          |          | 7,745       |           |           |  | 11,745    |           |          |           | 1,960,420        |        |              |          | 525,000   |       |           |  | Yes                 |  |  |  | 16.3 |  |  |  | 10,000  | 
|                        |  |          |      |  |      |        | 2006   |     |  |        | 4,000  |         |          |          | 7,307       |           |           |  | 11,307    |           |          |           | 1,086,037        |        |              |          |           |       |           |  |                     |  |  |  |      |  |  |  | 10,000  | 
|                        |  |          |      |  |      |        | Change |     |  |        |       |         |          |          | +438        |           |           |  | +438      |           |          |           |                  |        |              |          |           |       |           |  |                     |  |  |  |      |  |  |  |        | 
|                       
|Paul J. Schoenhals      |  |          | 1992 |  |      |        | 2007   |     |  |        | 2,000  |         |          |          | 6,148       |           |           |  | 8,148     |           |          |           | 1,360,010        |        |              |          | 525,000   |       |           |  | Yes                 |  |  |  | 11.8 |  |  |  | 2,000   | 
|                        |  |          |      |  |      |        | 2006   |     |  |        | 2,000  |         |          |          | 5,430       |           |           |  | 7,430     |           |          |           | 713,652          |        |              |          |           |       |           |  |                     |  |  |  |      |  |  |  | 2,000   | 
|                        |  |          |      |  |      |        | Change |     |  |        |       |         |          |          | +718        |           |           |  | +718      |           |          |           |                  |        |              |          |           |       |           |  |                     |  |  |  |      |  |  |  |        | 
|                       
|E. Robert Stromberg     |  |          | 1991 |  |      |        | 2007   |     |  |        | 11,652 |         |          |          | 5,564       |           |           |  | 17,217    |           |          |           | 2,873,664        |        |              |          | 525,000   |       |           |  | Yes                 |  |  |  | 27.4 |  |  |  | 24,851  | 
|                        |  |          |      |  |      |        | 2006   |     |  |        | 15,580 |         |          |          | 5,137       |           |           |  | 20,717    |           |          |           | 1,989,868        |        |              |          |           |       |           |  |                     |  |  |  |      |  |  |  | 47,980  | 
|                        |  |          |      |  |      |        | Change |     |  |        | -3,928 |         |          |          | +427        |           |           |  | -3,500    |           |          |           |                  |        |              |          |           |       |           |  |                     |  |  |  |      |  |  |  | -23,129 | 
|                       
|Jack G. Vicq            |  |          | 1989 |  |      |        | 2007   |     |  |        | 3,186  |         |          |          | 4,211       |           |           |  | 7,397     |           |          |           | 1,234,572        |        |              |          | 525,000   |       |           |  | Yes                 |  |  |  | 11.8 |  |  |  | 3,186   | 
|                        |  |          |      |  |      |        | 2006   |     |  |        | 3,186  |         |          |          | 3,791       |           |           |  | 6,977     |           |          |           | 670,141          |        |              |          |           |       |           |  |                     |  |  |  |      |  |  |  | 9,186   | 
|                        |  |          |      |  |      |        | Change |     |  |        |       |         |          |          | +420        |           |           |  | +420      |           |          |           |                  |        |              |          |           |       |           |  |                     |  |  |  |      |  |  |  | -6,000  | 
|                       
|Elena Viyella de Paliza |  |          | 2003 |  |      |        | 2007   |     |  |        | 2,500  |         |          |          | 4,889       |           |           |  | 7,389     |           |          |           | 1,233,293        |        |              |          | 525,000   |       |           |  | Yes                 |  |  |  | 11.7 |  |  |  | 2,500   | 
|                        |  |          |      |  |      |        | 2006   |     |  |        | 2,500  |         |          |          | 4,466       |           |           |  | 6,966     |           |          |           | 669,084          |        |              |          |           |       |           |  |                     |  |  |  |      |  |  |  | 2,500   | 
|                        |  |          |      |  |      |        | Change |     |  |        |       |         |          |          | +423        |           |           |  | +423      |           |          |           |                  |        |              |          |           |       |           |  |                     |  |  |  |      |  |  |  |        | 
|                       



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Deferred Share Units do not carry any voting rights. The number
    of Deferred Share Units held by each director has been rounded
    down to the nearest whole number.                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   
|(2) | Based on the closing price per Share on the NYSE of $96.05 on
    February 27, 2006 and $166.91 on February 20, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   
|(3) | By the time a director has served on the Board for 5 years,
    he or she must own Shares and/or Deferred Share Units with a
    value at least five times the annual retainer paid to directors.
    One-half of the ownership threshold is required to be achieved
    within
    21/2 years.                                                                                                                                                                                                                                                                                                                                                
|   
|(4) | For 2007, the number of Shares indicated above as deemed to be
    beneficially owned by the nominated directors includes Shares
    purchasable by such directors within 60 days of
    February 20, 2007 through the exercise of options granted
    by the Corporation, as follows: Frederick J. Blesi 6,000 Shares;
    William J. Doyle 712,512 Shares; Wade Fetzer III 3,000 Shares;
    Dallas J. Howe 32,400 Shares; Jeffrey J. McCaig 26,000 Shares;
    Mary Mogford 6,000 Shares; and E. Robert Stromberg 13,200
    Shares. No stock options have been granted to the
    Corporations non-employee directors since November 2002.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | For 2006, the number of Shares indicated above as deemed to be
    beneficially owned by the nominated directors includes Shares
    purchasable by such directors within 60 days of
    February 27, 2006 through the exercise of options granted
    by the Corporation, as follows: Frederick J. Blesi 14,000
    Shares; William J. Doyle 816,256 Shares; Wade Fetzer III 3,000
    Shares; Dallas J. Howe 42,400 Shares; Jeffrey J. McCaig 26,000
    Shares; Mary Mogford 6,000 Shares; and E. Robert Stromberg
    32,400 Shares.



|    |                                                                                  
|--- | ---------------------------------------------------------------------------------
|(5) | No Shares beneficially owned by any of the directors are pledged
    as security.









---



##### Table of Contents






Ownership of Shares




|                                                                                                        |  |             |         |                   |  |             |           |  |  |  |       |  | 
|------------------------------------------------------------------------------------------------------- |  | ----------- | ------- | ----------------- |  | ----------- | --------- |  |  |  | ----- |  | 
|                                                                                                        |  |             |         |                   |  |             |           |  |  | 
|                                                                                                        |  |             |         | Number of         |  | Percentage  |          
|                                                                                                        |  |             |         | Shares            |  | of          |          
|                                                                                                        |  | Number of   |         | Beneficially      |  | Outstanding |          
|Name                                                                                                    |  | Shares Held |         | Owned(1)(2)(3)(4) |  | Shares      |          
|                                                                                                        |  |             |         |                   |  |             |           |  |  | 
|William J. Doyle,
    Director, President and Chief Executive Officer                                   |  |             | 78,318  |                   |  |             | 790,830   |  |  |  | 0.75% |  | 
|                                                                                                        |  |             |         |                   |  |             |           |  |  | 
|Wayne R. Brownlee,
    Executive Vice President, Treasurer and Chief Financial Officer                  |  |             | 17,499  |                   |  |             | 185,719   |  |  |  | 0.18% |  | 
|                                                                                                        |  |             |         |                   |  |             |           |  |  | 
|James F. Dietz,
    Executive Vice President and Chief Operating Officer                                |  |             | 17,606  |                   |  |             | 213,858   |  |  |  | 0.20% |  | 
|                                                                                                        |  |             |         |                   |  |             |           |  |  | 
|Thomas J. Regan, Jr.,
    President, PCS Phosphate and PCS Nitrogen                                     |  |             | 11,799  |                   |  |             | 11,799    |  |  |  | 0.01% |  | 
|                                                                                                        |  |             |         |                   |  |             |           |  |  | 
|Garth W. Moore,
    President, PCS Potash                                                               |  |             | 8,623   |                   |  |             | 56,843    |  |  |  | 0.05% |  | 
|                                                                                                        |  |             |         |                   |  |             |           |  |  | 
|All directors and executive officers as a group, including the
    above-named individuals (26 persons) |  |             | 242,355 |                   |  |             | 1,854,121 |  |  |  | 1.77% |  | 
|                                                                                                        |  |             |         |                   |  |             |           |  |  | 



|    |                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The number of Shares beneficially owned is reported on the basis
    of regulations of the SEC, and includes Shares that the
    individual has the right to acquire at any time within
    60 days after February 20, 2007 and Shares directly or
    indirectly held by the individual or by certain family members
    or others over which the individual has sole or shared voting or
    investment power.
|   
|(2) | Each of the directors and executive officers of the Corporation
    owned less than 1% of the Shares issued and outstanding as at
    February 20, 2007. The directors and executive officers of
    the Corporation as a group beneficially owned approximately
    1.766% of the Shares issued and outstanding as at
    February 20, 2007.                                                                   
|   
|(3) | Includes Shares purchasable within 60 days after
    February 20, 2007 through the exercise of options granted
    by the Corporation, as follows: Mr. Doyle 712,512 Shares;
    Mr. Brownlee 168,220 Shares; Mr. Dietz 196,252 Shares;
    Mr. Regan 0 Shares; Mr. Moore 48,220 Shares and
    directors and executive officers as a group, including the
    foregoing individuals, 1,611,766 Shares.         
|   
|(4) | No Shares beneficially owned by any of the directors or Named
    Executive Officers are pledged as security.                                                                                                                                                                                                                                                                                                   



|                                                                                                    |  |                      |                      |            |  |  |        |  | 
|--------------------------------------------------------------------------------------------------- |  | -------------------- | -------------------- | ---------- |  |  | ------ |  | 
|                                                                                                    |  |                      |                      |            |  |  |       
|                                                                                                    |  | Amount and Nature of |                      | Percent of | 
|Name and Address of Beneficial Owner                                                                |  | Beneficial Ownership |                      | Class(1)   | 
|                                                                                                    |  |                      |                      |            |  |  |       
|Capital Research and Management Company
    333 South Hope Street
    Los Angeles, California 90071 |  |                      | 12,567,800(2)(3)(4)  |            |  |  | 11.97% |  | 
|                                                                                                    |  |                      |                      |            |  |  |       
|PRIMECAP Management Company
    225 S. Lake Ave., #400
    Pasadena, California 91101               |  |                      | 10,337,515(5)(6)     |            |  |  | 9.85%  |  | 
|                                                                                                    |  |                      |                      |            |  |  |       
|Capital Group International, Inc.
    11100 Santa Monica Blvd.
    Los Angeles, California 90025    |  |                      | 8,902,880(7)(8)(9)   |            |  |  | 8.48%  |  | 
|                                                                                                    |  |                      |                      |            |  |  |       
|FMR Corp. (Fidelity)
    82 Devonshire Street
    Boston, Massachusetts 02109                       |  |                      | 8,348,918(10)(11)    |            |  |  | 7.95%  |  | 
|                                                                                                    |  |                      |                      |            |  |  |       
|Capital Guardian Trust Company
    11100 Santa Monica Blvd.
    Los Angeles, California 90025       |  |                      | 7,418,980(9)(12)(13) |            |  |  | 7.07%  |  | 
|                                                                                                    |  |                      |                      |            |  |  |       
|Janus Capital Management LLC
    151 Detroit Street
    Denver, Colorado 80206                      |  |                      | 6,504,606(14)(15)    |            |  |  | 6.20%  |  | 
|                                                                                                    |  |                      |                      |            |  |  |       
|The Growth Fund of America, Inc.
    333 South Hope Street
    Los Angeles, California 90071        |  |                      | 5,304,000(4)(16)(17) |            |  |  | 5.05%  |  | 
|                                                                                                    |  |                      |                      |            |  |  |       



|     |                                                                                                                                                                                                                
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1)  | Represents percent of Shares outstanding as of February 20,
    2007.                                                                                                                                          
|    
|(2)  | Such person has sole dispositive power as to all 12,567,800
    Shares and sole voting power as to 5,795,400 Shares.                                                                                           
|    
|(3)  | As set forth in a Schedule 13G dated February 12, 2007.                                                                                                                                                        
|    
|(4)  | Capital Research and Management Company may be deemed the
    beneficial owner of the Shares of its subsidiaries, including
    the 5,304,000 Shares beneficially owned by The Growth Fund of
    America, Inc.
|    
|(5)  | Such person has sole dispositive power as to all 10,337,515
    Shares and sole voting power as to 2,631,615 Shares.                                                                                           
|    
|(6)  | As set forth in a Schedule 13G dated February 14, 2007.                                                                                                                                                        
|    
|(7)  | Such person has sole dispositive power as to all 8,902,880
    Shares and sole voting power as to 7,635,740 Shares.                                                                                            
|    
|(8)  | As set forth in a Schedule 13G dated February 12, 2007.                                                                                                                                                        
|    
|(9)  | Capital Group International, Inc. may be deemed the beneficial
    owner of the Shares of its subsidiaries, including the 7,418,980
    Shares beneficially owned by Capital Guardian Trust Company.           
|    
|(10) | Such person has sole dispositive power as to all 8,348,918
    Shares and sole voting power as to 3,589,343 Shares.                                                                                            
|    
|(11) | As set forth in a Schedule 13G dated February 14, 2007.                                                                                                                                                        
|    
|(12) | Such person has sole dispositive power as to all 7,418,980
    Shares and sole voting power as to 6,260,640 Shares.                                                                                            
|    
|(13) | As set forth in a Schedule 13G dated February 12, 2007.                                                                                                                                                        
|    
|(14) | Such person has sole dispositive power as to all 6,504,606
    Shares and sole voting power as to all 6,504,606 Shares.                                                                                        
|    
|(15) | As set forth in a Schedule 13G dated February 14, 2007.                                                                                                                                                        
|    
|(16) | Such person has sole voting power as to all 5,304,000 Shares.                                                                                                                                                  
|    
|(17) | As set forth in a Schedule 13G dated February 12, 2007.                                                                                                                                                        









---



##### Table of Contents






Appointment of Auditors








Auditors Fees




|                   |  |                         |            |      |  |  |            | 
|------------------ |  | ----------------------- | ---------- | ---- |  |  | ---------- | 
|                   |  | Year ended December 31,
|                   |  |                        
|                   |  | 2006                    |            | 2005
|                   |  |                         |            |     
|Audit Fees         |  |                         | $2,361,000 |      |  |  | $2,281,000 | 
|Audit Related Fees |  |                         | 255,000    |      |  |  | 201,000    | 
|Tax Fees           |  |                         | 57,000     |      |  |  | 32,000     | 
|All Other Fees     |  |                         | 0          |      |  |  | 3,000      | 

Audit Fees


10-Q


Audit-Related Fees




Tax Fees




All Other Fees




Pre-Approval Policy for External
Auditor Services








|    |                                                                                                                                                                                                                                                                                                                                                                                                                                        
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Audit and audit-related services  these are
    identified in the annual Audit Service Plan presented by the
    external auditor and require annual approval. The Audit
    Committee monitors the audit services engagement at least
    quarterly.                                                                                                                                                                                 
|   
|(2) | Pre-approved list of non-audit services  non-audit
    services which are reasonably likely to occur have been
    identified and receive general pre-approval of the Audit
    Committee, and as such do not require specific pre-approvals.
    The term of any general pre-approval is 12 months from
    approval unless otherwise specified. The Audit Committee
    annually reviews and pre-approves the services on this list.
|   
|(3) | Other proposed services  all proposed services not
    categorized above are brought forward on a case-by-case basis
    and specifically pre-approved by the Chair of the Audit
    Committee, to whom pre-approval authority has been delegated.                                                                                                                                                                                    











---



##### Table of Contents






Adoption of 2007 Performance Option Plan


2007 Performance Option
Plan












th th th th










|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | if the employment of an optionee as an officer or employee of
    the Corporation or a subsidiary terminates by reason of his or
    her death, or if an optionee who is a retiree pursuant to
    paragraph (b) below dies during the 36-month period
    following retirement, the legal personal representatives of the
    optionee will be entitled to exercise any unexercised vested
    options, including such stock options that may vest after the
    date of death, during the period ending at the end of the
    twelfth calendar month following the calendar month in which the
    optionee dies, failing which exercise the stock options will
    terminate;
|   
|(b) | subject to the terms of paragraph (a) above, if the
    employment of an optionee as an officer or employee of the
    Corporation or a subsidiary terminates by reason of retirement
    in accordance with the then prevailing retirement policy of the
    Corporation or subsidiary, the optionee will be entitled to
    exercise any unexercised vested stock options, including such
    stock options that may vest after the date of retirement, during
    the period ending at the end of the
    36th
    month following the                                                                                                                                       









---



##### Table of Contents



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | calendar month in which the optionee retires, failing which
    exercise the stock options will terminate;                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   
|(c) | if the employment of an optionee as an officer or employee of
    the Corporation or a subsidiary terminates for any reason other
    than as provided in paragraphs (a) or (b) above, the
    optionee will be entitled to exercise any unexercised vested
    stock options, to the extent vested and exercisable at the date
    of such event, during the period ending at the end of the
    calendar month immediately following the calendar month in which
    the event occurs, failing which exercise the stock options will
    terminate; and
|   
|(d) | each stock option is personal to the optionee and is not
    assignable, except (i) as provided in paragraph
    (a) above, and (ii) at the election of the Board, a
    stock option may be assignable to the spouse, children and
    grandchildren of the original optionee and to a trust,
    partnership or limited liability company, the entire beneficial
    interest of which is held by one or more of the foregoing.                                                                                                                        























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##### Table of Contents





UNLESS A PROXY SPECIFIES THAT THE SHARES IT REPRESENTS SHOULD
BE VOTED AGAINST THE RESOLUTION TO APPROVE THE 2007 PERFORMANCE
OPTION PLAN, THE PROXYHOLDERS NAMED IN THE ACCOMPANYING FORM OF
PROXY INTEND TO VOTE FOR THE RESOLUTION.


Securities Authorized for
Issuance Under Equity Compensation Plans










Equity Compensation Plan Information


| |  |                                                        |  |                      |           |                         |  |                          |       |  |  |  |     |  |  | 
| |  | ------------------------------------------------------ |  | -------------------- | --------- | ----------------------- |  | ------------------------ | ----- |  |  |  | --- |  |  | 
|
| |  | (c) Number of Shares                                   |  |                     
| |  | (a) Number of Shares                                   |  |                      |           | remaining available for |  |                         
| |  | to be issued                                           |  | (b) Weighted-average |           | future issuance under   |  |                         
| |  | upon exercise of                                       |  | exercise price of    |           | equity compensation     |  |                         
| |  | outstanding options,                                   |  | outstanding options, |           | plans (excluding Shares |  |                         
| |  | Plan Category                                          |  | warrants and rights  |           | warrants and rights     |  | reflected in column (a)) |       | 
| |  |                                                        |  |                      |           |                         |  |                          |       | 
| |  | December 31, 2006                                      |  |                      |           |                         |  |                          |       |  |  |  |     |  |  | 
| |  | Equity compensation plans approved by shareholders     |  |                      | 4,768,548 | (1)                     |  | $                        | 62.34 |  |  |  | 0   |  |  | 
| |  | Equity compensation plans not approved by shareholders |  |                      | n/a       |                         |  |                          | n/a   |  |  |  | n/a |  |  | 
| |  | February 20, 2007                                      |  |                      |           |                         |  |                          |       |  |  |  |     |  |  | 
| |  | Equity compensation plans approved by shareholders     |  |                      | 4,578,346 | (2)                     |  | $                        | 63.26 |  |  |  | 0   |  |  | 
| |  | Equity compensation plans not approved by shareholders |  |                      | n/a       |                         |  |                          | n/a   |  |  |  | n/a |  |  | 
|



|    |                                                                                                                                                                                                                                                                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Of this amount, 1,173,000 options were outstanding pursuant to
    the 2005 Performance Option Plan, 893,600 options were
    outstanding pursuant to the 2006 Performance Option Plan,
    2,588,948 options were outstanding pursuant to the Stock Option
    Plan  Officers and Employees and 113,000 options were
    outstanding pursuant to the Stock Option Plan 
    Directors.
|   
|(2) | Of this amount, 1,173,000 options were outstanding pursuant to
    the 2005 Performance Option Plan, 893,600 options were
    outstanding pursuant to the 2006 Performance Option Plan,
    2,398,746 options were outstanding pursuant to the Stock Option
    Plan  Officers and Employees and 113,000 options were
    outstanding pursuant to the Stock Option Plan 
    Directors.









---



##### Table of Contents






Corporate Governance





Statement of Corporate
Governance Practices






58-201 58-201).


Sarbanes-Oxley Act




58-101, 58-101,







Report of the Audit
Committee


58-101,




| |                                                                                        
| | ---------------------------------------------------------------------------------------
| | Alice D. Laberge (Chair)
Frederick J. Blesi
Jeffrey J. McCaig
Mary Mogford
Jack G. Vicq















---



##### Table of Contents











Sarbanes-Oxley Act of
2002


10-K






|  |                                                                                                                                                                   
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | the receipt, retention and treatment of complaints received by
    the Corporation regarding accounting, internal accounting
    controls or auditing matters; and
| 
| | the confidential, anonymous submission by employees of the
    Corporation of concerns regarding questionable accounting or
    auditing matters.                 






Report on Corporate Governance
and


Nominating Matters


General


58-101,




| |                                                                                           
| | ------------------------------------------------------------------------------------------
| | Mary Mogford (Chair)
Frederick J. Blesi
Wade Fetzer III
Dallas J. Howe
E. Robert Stromberg

Disclosure Regarding Governance Procedures












---



##### Table of Contents





2006 Governance Activities




Disclosure Regarding Nominating Processes


Canada
Business Corporations Act Act Act




Act




|  |                                  
|- | ---------------------------------
| | fertilizer industry              
| 
| | global and international commerce
| 
| | transportation industry          
| 
| | e-commerce and technology        
| 
| | finance                          
| 
| | legal                            
| 
| | accounting                       
| 
| | mining industry                  
| 
| | chemical industry                
| 
| | general business management      
| 
| | public policy                    















---



##### Table of Contents





Disclosure Regarding Director Orientation and Continuing
Education






|    |                                                                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | provide each new director with a baseline of knowledge about the
    Corporation that will serve as a basis for informed
    decision-making;         
|   
|(b) | tailor the program for each new director to take into account
    his or her unique mix of skills, experience, education,
    knowledge and needs; and
|   
|(c) | deliver information over a period of time to minimize the
    likelihood of overload and maximize the lasting educational
    impact.                 







|    |                                                                                                                                                                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | maintains a directors intranet site to facilitate the
    exchange of views and published information;                                                                                                                                                                                                             
|   
|(b) | maintains a membership for each director in an organization
    dedicated to corporate governance and ongoing director education;                                                                                                                                                                                   
|   
|(c) | each year encourages and funds the attendance of each director
    at one seminar or conference of interest and relevance and funds
    the attendance of each committee Chair at one additional seminar
    or conference. In all cases, approval for attendance is
    obtained, in advance, from the Board Chair;
|   
|(d) | encourages presentations by outside experts to the Board or
    committees on matters of particular import or emerging
    significance; and                                                                                                                                                                        
|   
|(e) | at least annually, schedules a site visit in conjunction with a
    Board meeting.                                                                                                                                                                                                                                  



Disclosure Regarding the Ability of Shareholders to
Communicate With the Board of Directors






| |                                                                                                                               
| | ------------------------------------------------------------------------------------------------------------------------------
| | PotashCorp Board of Directors
c/o Corporate Secretary
Suite 500, 122  1st Avenue South
Saskatoon, Saskatchewan S7K 7G3
CANADA

















---



##### Table of Contents






Compensation





Report of the Compensation
Committee and Compensation Committee Responsibilities and
Procedures


Composition of the Compensation Committee


58-101,


Compensation Committee Responsibilities and
Procedures








|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1)  | Review and approve on an annual basis the corporate goals and
    objectives relevant to the compensation of our CEO. The
    Committee shall evaluate at least once a year the CEOs
    performance in light of established goals and objectives and,
    based on such evaluation, shall, together with all other
    independent members of the Board, determine and approve the
    CEOs annual compensation, including, as appropriate,
    salary, bonus, incentive and equity compensation;                                                                                                                                                                                                                                                                                           
|    
|(2)  | Review and approve on an annual basis the evaluation process and
    compensation structure for our executive officers, including an
    annual Executive Salary Administration Program under which the
    parameters for salary adjustments (at the discretion of the CEO)
    for officers are established;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    
|(3)  | Review and make recommendations to the Board with respect to the
    adoption, amendment and termination of our management
    incentive-compensation and equity-compensation plans, oversee
    their administration and discharge any duties imposed on the
    Committee by any of those plans;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    
|(4)  | Assess the competitiveness and appropriateness of our policies
    relating to the compensation of the executive officers;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    
|(5)  | Review managements long-range planning for executive
    development and succession, and develop a CEO succession plan;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    
|(6)  | Approve the Committees annual report on executive
    compensation for inclusion in our proxy statement, in accordance
    with applicable rules and regulations, and review and approve,
    prior to publication, the compensation sections of the proxy
    statement;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    
|(7)  | Review the general design and make-up of our broadly applicable
    benefit programs as to their general adequacy, competitiveness,
    internal equity, and cost effectiveness;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    
|(8)  | Annually review the performance of our pension plans;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    
|(9)  | Review periodically executive officer transactions in our
    securities and approve such transactions as appropriate for
    their exemption from short-swing profit liability under
    Section 16(b) of the Exchange Act;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    
|(10) | Annually review and recommend to the Board a compensation
    package for our directors. In considering the director
    compensation package, the Committee may take into consideration
    the relative responsibilities of directors in serving on the
    Board and its various Committees. The Committee may request that
    management report to the Committee periodically on the status of
    the compensation package of the Board in relation to other
    similarly situated companies. Directors who are our employees
    shall not be compensated for their services as directors. The
    Committee shall review annually any stock ownership guidelines
    applicable to directors and shall recommend to the Board
    revisions to any such guidelines as appropriate; and



|     |                                                                                                                                            
|---- | -------------------------------------------------------------------------------------------------------------------------------------------
|(11) | Perform other review functions relating to management
    compensation and human resources policies as the Committee deems
    appropriate.











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##### Table of Contents





Compensation Committee Interlocks and Insider
Participation




Report of the Compensation Committee




10-K






| |                      
| | ---------------------
| | John W. Estey (Chair)
| | Wade Fetzer III      
| | Jeffrey J. McCaig    
| | Paul J. Schoenhals   




Compensation Discussion and
Analysis


Compensation Structure and Policies




Compensation Principles




|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | To emphasize performance-based compensation, we maintain total
    cash compensation levels (salary and annual short-term
    incentives) at the median (50th percentile) of the relevant
    group of comparable companies. We provide the opportunity to
    achieve compensation above the median through medium-term and
    long-term incentive plans (performance units and stock options)
    if our performance exceeds the median performance of comparable
    companies.                                                                                                                                                                                                                                                                                                    
| 
| | We determine competitive and median levels of compensation with
    the assistance of independent compensation consultants that
    prepare, at least annually, analyses of external competitive
    compensation. Such analyses currently consist of (1) a
    group of publicly traded U.S. companies with similar industry
    characteristics and market capitalization, which we refer to
    herein as the Comparator Group, and
    (2) additional U.S.-based company executive compensation
    survey information, which we refer to herein as the
    Additional Surveys. We refer to the Comparator Group
    and the Additional Surveys collectively as the Comparative
    Compensation Information. See
     Compensation Consultants and Comparator
    Groups.
| 
| | For the purpose of total cash compensation comparisons, we
    calculate the median of the Comparative Compensation Information
    by applying a regression analysis based upon revenues to the
    salaries and annual short-term incentive targets for each
    position studied.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| 
| | We provide the opportunity to earn total compensation above the
    median through medium-term and long-term incentive plans. We
    design these plans with measures (total shareholder return and
    internal performance measures historically linked with total
    shareholder return) that require company performance above the
    median, relative to other basic materials companies, to deliver
    total compensation above the median. We use the total
    shareholder return of the DJUSBMI as a benchmark for determining
    the relative performance of our company.                                                                                                                                                                                                
| 
| | For purposes of total compensation, including salary, annual
    short-term incentives, medium-term incentives and long-term
    incentives, we calculate the median and upper quartile by using
    the range between competitive levels based upon a comparative
    revenues regression analysis and a comparative market
    capitalization regression analysis.                                                                                                                                                                                                                                                                                                                                                                                                                   
| 
| | We establish the value of retirement and welfare benefits at the
    median of comparable companies.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

Elements of Executive Compensation














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##### Table of Contents









Current
    
    
    
    
    
    PerformanceCompensation
    
    Form
    
    Eligibility
    
    Period
    
    DeterminationBase salary
    
    Cash
    
    All salaried employees
    
    Annual
    
     For executive officers, we set base salary targets
    at the median of the Comparative Compensation Information,
    adjusted to reflect individual performance and internal equity.Short-term incentives
    
    Cash
    
    All executives and most salaried staff employees
    
    1 year
    
     We base awards on achievement of predetermined goals
    for corporate performance or a combination of corporate and
    operating group performance.
     We establish targets at the median of the
    Comparative Compensation Information.
     Individual awards may be adjusted
    (± 20%) to
    recognize individual performance, provided the total adjusted
    awards approximates the total awards at mid-point.










---



##### Table of Contents





Current
    
    
    
    
    
    PerformanceCompensation
    
    Form
    
    Eligibility
    
    Period
    
    DeterminationMedium-term incentives
    
    Performance Share Units
    
    All executives and senior management (approximately
    65 individuals)
    
    3 years
    
     On January 1, 2006, we issued units at a price
    equal to the average closing price of our common stock for the
    last 30 trading days of 2005.
     Each award vests and is paid out at the end of the
    three-year performance period (December 31, 2008) based on
    a vesting schedule whereby half of the units vest in accordance
    with our total shareholder return, or TSR, and half of the units
    vest in accordance with our TSR relative to the DJUSBMIs
    TSR.
     The value at payout equals the number of vested
    units multiplied by the average closing price of our common
    stock for the last 30 trading days of 2008, subject to a maximum
    value per unit of three times the average closing price of our
    common stock for the last 30 trading days of 2005.Long-term incentives
    
    Performance Options
    
    All executives, senior management and other selected managers
    (approximately 235 individuals)
    
    3 year vesting
    10 year option term
    
     Options granted under the 2005, 2006 and 2007
    Performance Option Plans vest based on our cash flow return on
    investment and weighted average cost of capital during the
    three-year performance period.
     The value of vested options is based on appreciation
    of our common stock during the ten-year option period. Post-Retirement andTermination
    
    
    
    
    
    MeasurementCompensation
    
    Form
    
    Eligibility
    
    Period
    
    DeterminationPension BenefitsCanadian Pension Plan
    
    Cash
    
    All Canadian salaried staff and certain union and non-union
    hourly employees
    
    Pensionable service period
    
     Benefits are based on the participants
    required contributions (up to 5.5% of earnings) and equivalent
    matching contributions by our company.Canadian Supplemental Retirement Income Plan
    
    Cash
    
    Selected senior executives (22 individuals)
    
    Pensionable service period to a maximum of 35 years
    
     Benefits are based on 2% of the average of the
    participants three highest years earnings multiplied
    by years of pensionable service, minus the benefit payable under
    the Canadian Pension Plan. Certain senior executives
    benefits are calculated differently. See
     Pension Benefits below.
     No benefits are payable if the participant is not at
    least age 55 at termination; benefits are reduced if the
    participant is not at least age 62 at termination.










---



##### Table of Contents



Post-Retirement andTermination
    
    
    
    
    
    MeasurementCompensation
    
    Form
    
    Eligibility
    
    Period
    
    DeterminationU.S. Pension Plan
    
    Cash
    
    All U.S. salaried and non-union hourly employees
    
    Pensionable service period to a maximum of 35 years
    
     Benefits are based on 1.5% of the participants
    final average compensation, which is calculated using the
    highest paid 60 consecutive months of service out of the
    last 120 months, multiplied by years of service accrued
    after December 31, 1998. Participants with service accrued
    prior to January 1, 1999 under previous plans will have a
    portion of their benefit calculated pursuant to such plans. See
     Pension Benefits below.
     Benefits are reduced if the participant is not at
    least age 65, or age 62 with 20 years of service
    at termination.U.S. Supplemental Plan
    
    Cash
    
    Eligible U.S. salaried and non-union hourly employees
    
    Pensionable service period to a maximum of 35 years
    
     Benefits are intended to provide participants with
    the same aggregate benefits they would have received under the
    U.S. Pension Plan had there been no legal limitations on
    those benefits.
     No benefits are payable if the participant is not at
    least age 55 at termination.Severance BenefitsChange in control
    severance benefits
    
    Cash,
    Insurance and
    Other Benefits
    
    Selected senior
    executives
    (5 individuals)
    
    Upon termination of employment
    
     Benefits are awarded in connection with termination
    within two years of a change of control.
     Termination includes ceasing to be employed for any
    reason, including constructive dismissal, except by reason of
    death, disability, resignation or voluntary retirement, or
    dismissal for dishonest or willful misconduct.General severance benefits
    
    Cash
    
    All salaried employees
    
    Upon termination of employment
    
     Benefits are awarded in connection with termination
    without cause.
     Benefits are generally based on two weeks of salary
    for each complete year of service, subject to a minimum of
    4 weeks and a maximum of 52 weeks.




Salary












---



##### Table of Contents





Incentive Plan Compensation




Short-Term Incentive Plan






±




Medium-Term Incentive Plan


















---



##### Table of Contents





Long-Term Incentives (Stock Options)


















Post-Retirement and Termination Compensation


Pension Benefits












---



##### Table of Contents



















Severance Benefits












---



##### Table of Contents





Change in Control Agreements








|    |                                                                                                                                                                                                  
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | a significant (50% or more) change in the Board within any
    two-year period, not including replacement directors approved
    for nomination by the Board;                                    
|   
|(b) | an amalgamation, merger, consolidation or other transaction
    whereby the control of our existing shareholders is diluted to
    less than 50% control of the surviving or consolidated entity;
|   
|(c) | a significant (50% or more based on book value) sale or other
    disposition of our fixed assets within any twelve-month period;
    or                                                         
|   
|(d) | any partys acquisition of 20% or more of our voting
    securities.                                                                                                                             







|    |                                                                                                                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | a lump-sum payment of three times the executives current
    base salary and average bonus for the last three years;                                                                                                               
|   
|(b) | a lump-sum payment of the pro-rata target bonus for the year in
    which the termination occurs;                                                                                                                                   
|   
|(c) | immediate vesting and cash out of all outstanding Medium-Term
    Incentive Plan awards;                                                                                                                                            
|   
|(d) | a credit of three additional years of service under the Canadian
    Supplemental Plan;                                                                                                                                             
|   
|(e) | a three-year continuation of medical, disability and group term
    life insurance, provided that these benefits terminate upon
    obtaining similar coverage from a new employer or upon
    commencement of retiree benefits; and
|   
|(f) | financial or outplacement counseling to a maximum of Cdn$10,000.                                                                                                                                                                    

Income Tax Act




Compensation Consultants and Comparator Groups














---



##### Table of Contents









|                                   
|-----------------------------------
|Air Products and Chemicals, Inc.   
|Apache Corporation                 
|Boise Cascade LLC                  
|Eastman Chemical Company           
|Ecolab Inc.                        
|Engelhard Corporation              
|Martin Marietta Materials, Inc.    
|MeadWestvaco Corporation           
|The Mosaic Company                 
|Nalco Company                      
|Packaging Corporation of America   
|Pactiv Corporation                 
|Phelps Dodge Corporation           
|PPG Industries, Inc.               
|Praxair, Inc.                      
|Rayonier Inc.                      
|Rohm and Haas Company              
|Smurfit-Stone Container Corporation
|Sonoco Products Company            
|The Valspar Corporation            
|Vulcan Materials Company           
|W.W. Grainger, Inc.                

Executive Share Ownership Guidelines






|                                                                                                     |  |                 |                     | 
|---------------------------------------------------------------------------------------------------- |  | --------------- | ------------------- | 
|                                                                                                     |  | Share Ownership |                    
|Title                                                                                                |  | Guideline       |                    
|                                                                                                     |  |                 |                    
|Chief Executive Officer                                                                              |  |                 | 5 times base salary | 
|Chief Financial Officer, Chief Operating Officer, Senior Vice
    Presidents and Division Presidents |  |                 | 3 times base salary | 
|Designated Senior Vice Presidents and Vice Presidents                                                |  |                 | 1 times base salary | 



| |  |                      |  |           |  |             |  |                |  |             |  | 
| |  | -------------------- |  | --------- |  | ----------- |  | -------------- |  | ----------- |  | 
|
| |  | Named                |  | Number of |  | Value of    |  | Value Required |  | Value Held  |  | 
| |  | Executive            |  | Shares    |  | Shares      |  | to Meet        |  | as Multiple |  | 
| |  | Officer              |  | Held      |  | Held        |  | Guidelines     |  | of Salary   |  | 
|
| |  | William J. Doyle     |  | 78,318    |  | $13,072,057 |  | $5,200,000     |  | 12.6x       |  | 
|
| |  | Wayne R. Brownlee    |  | 17,499    |  | $2,920,758  |  | $1,440,000     |  | 6.1x        |  | 
|
| |  | James F. Dietz       |  | 17,606    |  | $2,938,617  |  | $1,389,000     |  | 6.3x        |  | 
|
| |  | Thomas J. Regan, Jr. |  | 11,799    |  | $1,969,371  |  | $1,126,800     |  | 5.2x        |  | 
|
| |  | Garth W. Moore       |  | 8,623     |  | $1,439,265  |  | $1,148,700     |  | 3.8x        |  | 
|

Chief Executive Officer Compensation














---



##### Table of Contents









|   |                                              
|-- | ---------------------------------------------
|1. | Improvement in all measurable safety indices.



| |                                                                                                                                                                                                                                                                                        
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2006 results were mixed. Recordable injury rates were at a
    record low, but above target. Lost time injuries, targeted to
    decrease, instead approximated 2005 rates. The Trinidad site,
    however, set an all-time record of 6 million hours without
    a lost time accident.



|   |                                                                                                                            
|-- | ---------------------------------------------------------------------------------------------------------------------------
|2. | Meet or exceed approved 2006 budget, including earnings per
    share (EPS) and cash flow per share
    (CFPS) targets.



| |                                                                                                                                
| | -------------------------------------------------------------------------------------------------------------------------------
| | Due to prolonged price negotiations with China and India in
    2006, which impacted potash sales, neither target was achieved.



|   |                                               
|-- | ----------------------------------------------
|3. | Continue to drive the Potash First strategy.



| |                                                                                                                                                                                                                                                                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | This goal was achieved and included successfully increasing
    ownership in Sociedad Quimica y Minera de Chile S.A., or SQM,
    from 25% to 31.6%, and in Sinofert Holdings Limited, or
    Sinofert, from 10% to 20%. Other global potash opportunities and
    strategic developments in phosphate and nitrogen were initiated
    and continue to be actively pursued.



|   |                                                        
|-- | -------------------------------------------------------
|4. | Outperform our peer group of basic materials companies.



| |                                                                                              
| | ---------------------------------------------------------------------------------------------
| | In 2006, our stock price outperformed the DJUSBMI with annual
    results of 78.9% vs. 14.8%.



|   |                                                                                                                                                               
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------
|5. | Continue to implement the Board-approved strategic plan to
    decommoditize our company with the focus on improving the return
    on our phosphate business.



| |                                                                                                                                                                                                                                                                                                    
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our new Aurora-based purified acid plant began operations in
    June 2006. The project came in under budget and met all capacity
    and quality requirements immediately. We expect that our first
    new Silicon Tetraflouride (STF) plant will be completed and
    operational by April 2007.
|
| | Phosphate gross margin increased 27% over 2005, to
    $125.3 million.                                                                                                                                                                                                                             



|   |                                                                                            
|-- | -------------------------------------------------------------------------------------------
|6. | Grow the revenue base and bottom line for our company through
    strategic use of capital.



| |                                                                                          
| | -----------------------------------------------------------------------------------------
| | The following are expected to contribute significantly to future
    annual gross margin:



| |     |                                                                                                                                                                                                           
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | Potash capacity expansion and compaction projects at Allan
    ($187 million) and Lanigan ($313 million);                                                                                                 
|
| | (2) | A Trinidad debottleneck project was completed ($74 million);                                                                                                                                              
|
| | (3) | The Aurora purified acid expansion was completed
    ($72 million); and                                                                                                                                   
|
| | (4) | The initial 10% interest in Sinofert was doubled to 20% for an
    investment of $126 million and our ownership interest in
    SQM was increased from 25% to 31.6% for an investment of
    $235 million.



|   |                                                                                                                                                            
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------
|7. | Oversee the establishment of a global International Plant
    Nutrition Institute to ensure a scientific environmental defense
    for fertilizer products.



| |                                                                                                                                                                
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
| | After a three year effort, the International Plant Nutrition
    Institute was established with 17 global founding members
    and a budget of over $9 million.



|   |                                                                                                 
|-- | ------------------------------------------------------------------------------------------------
|8. | Show measurable success in leadership development and
    succession planning for our employees.



| |                                                                                                                                                                                                                                                             
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The goal to have 75% of senior positions filled with internal
    candidates fell slightly short at 72.4%. Activities related to
    succession planning and identification and development of key
    talent and leadership took place throughout the year.



|   |                                                                                               
|-- | ----------------------------------------------------------------------------------------------
|9. | Lead managements effort in maintaining best corporate
    governance practices at all levels.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Supporting the foundation of excellent corporate governance by
    virtue of transparency and accountability, the CEO engaged
    numerous stakeholders (investors, analysts, customers, media,
    employees, etc.) in meetings and conference calls throughout the
    year. We responded to shareholder sentiment by adopting a
    majority vote policy for our Board. Our commitment to excellence
    in corporate governance was recognized by external monitors
    including the Globe and Mailwhich ranked the Corporation
    9th out of over 200 Canadian companies in its 2006
    corporate governance rankings. Our corporate reporting and
    disclosure practices were recognized by the Canadian Institute
    of Chartered Accountants (CICA) with awards in six
    different categories, including an unprecedented third year in a
    row as winner of the overall award for excellence in corporate
    reporting.



|    |                                                                                                                                                                                                
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|10. | Improve product quality through strict adherence to size
    guide number (SGN) and uniformity index
    (UI) measurements so we can provide the highest quality
    products to our customers.



| |                                                                                                                                                             
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Higher UI standards for diammonium phosphate, or DAP, and
    monoammonium phosphate, or MAP, at Aurora and urea solids at
    Trinidad greatly reduced dust









---



##### Table of Contents



| |                                                                                                                                                                                                                                                                                
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | in our products. A newly installed ribbon blender in Aurora
    improved oil contact with dry phosphate products. Potash
    customer quality claim settlements were reduced from $34,000 in
    2005 to $21,000 in 2006 against total 2006 potash sales of
    $1.228 billion.



|    |                                                                                                                                                          
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------
|11. | Provide leadership for our company with the investment
    community, within our industry and in the communities in which
    our people work and reside.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The CEO supported and was directly involved in numerous analyst
    and shareholder meetings in 2006. The CEO is chairman of The
    Fertilizer Institute and is on the five person Executive
    Management Group of the International Fertilizer Industry
    Association, or IFA, where he was also elected to represent the
    Association as Vice President for Sustainable Development, a
    first for the industry. The International Plant Nutrition
    Institute became a reality in 2006 and the CEO was a key player
    in its creation.
|
| | In Saskatchewan, the CEO was chairman of the University of
    Saskatchewan campaign, raising over Cdn$100 million, the
    most successful campaign in the Universitys history. We
    were the named sponsor of the highly successful Vanier Cup
    Canadian college football championship held in November 2006.
    The CEO serves as a director and member of two community
    business boards.                                                                                                                                                



|    |                                                                              
|--- | -----------------------------------------------------------------------------
|12. | Find new ways to make it easier for our customers to do
    business with us.



| |                                                             
| | ------------------------------------------------------------
| | Four important customer initiatives were introduced in 2006:



|  |                                                                                                                                                                                                                                                                                                
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Posting all our product specification sheets on our company
    website, providing customers with access to the chemical and
    physical properties of all products;                                                                                                                          
| 
| | Creating Customer Profile System to provide us with
    comprehensive up-to-date customer information to improve our
    ability to proactively assist our customers;                                                                                                                          
| 
| | Creating a centralized internal online repository of all product
    analysis information to allow customer service representatives
    with 24/7 access to address customer inquiries; and                                                                                                    
| 
| | Establishing a comprehensive customer service disaster recovery
    plan, providing an alternate site, with information systems and
    telecommunications, to continue to serve customers in the event
    of a major disaster impacting the Northbrook, Illinois Customer
    Service Center.











---



##### Table of Contents






Executive Compensation


Summary Compensation
Table(1)




|                                                               |  |      |      |        |  |       |           |           |  |           |   |                 |  |              |           |              |  |       |           |  |  |  |         |  |  |  |         |      |  |  |         |      |  |  |           |  | 
|-------------------------------------------------------------- |  | ---- | ---- | ------ |  | ----- | --------- | --------- |  | --------- | - | --------------- |  | ------------ | --------- | ------------ |  | ----- | --------- |  |  |  | ------- |  |  |  | ------- | ---- |  |  | ------- | ---- |  |  | --------- |  | 
|                                                               |  |      |      |        |  |       |           |           |  |           |   |                 |  |              |           |              |  |       |          
|                                                               |  |      |      |        |  |       |           |           |  |           |   |                 |  | Change in    |           |              |  |       |          
|                                                               |  |      |      |        |  |       |           |           |  |           |   |                 |  | Pension and  |           |              |  |       |          
|                                                               |  |      |      |        |  |       |           |           |  |           |   | Non-Equity      |  | Nonqualified |           |              |  |       |          
|                                                               |  |      |      |        |  |       |           |           |  |           |   | Incentive       |  | Deferred     |           |              |  |       |          
|                                                               |  |      |      |        |  |       |           | Stock     |  | Option    |   | Plan            |  | Compensation |           | All Other    |  |       |          
|                                                               |  |      |      | Salary |  | Bonus |           | Awards(2) |  | Awards(3) |   | Compensation(4) |  | Earnings     |           | Compensation |  | Total |          
|                                                               |  | Year |      | $      |  | $     |           | ($)       |  | ($)       |   | ($)             |  | ($)          |           | ($)          |  | ($)   |          
|Name and Principal Position(a)                                 |  | (b)  |      | (c)    |  | (d)   |           | (e)       |  | (f)       |   | (g)             |  | (h)          |           | (i)          |  | (j)   |          
|                                                               |  |      |      |        |  |       |           |           |  |           |   |                 |  |              |           |              |  |       |          
|William J. Doyle                                               |  |      | 2006 |        |  |       | 1,000,000 |           |  |           |  |                 |  |              | 1,120,382 |              |  |       | 5,797,500 |  |  |  | 750,000 |  |  |  | 94,917  | (5)  |  |  | 180,958 | (6)  |  |  | 8,943,757 |  | 
|President and Chief Executive Officer                          |  |      |      |        |  |       |           |           |  |           |   |                 |  |              |           |              |  |       |           |  |  |  |         |  |  |  |         |      |  |  |         |      |  |  |           |  | 
|                                                               |  |      |      |        |  |       |           |           |  |           |   |                 |  |              |           |              |  |       |           |  |  |  |         |  |  |  |         |      |  |  |         |      |  |  |           |  | 
|Wayne R. Brownlee                                              |  |      | 2006 |        |  |       | 460,000   |           |  |           |  |                 |  |              | 331,281   |              |  |       | 1,913,173 |  |  |  | 300,000 |  |  |  | 276,707 | (7)  |  |  | 58,556  | (8)  |  |  | 3,339,717 |  | 
|Executive Vice President Treasurer and Chief Financial Officer |  |      |      |        |  |       |           |           |  |           |   |                 |  |              |           |              |  |       |           |  |  |  |         |  |  |  |         |      |  |  |         |      |  |  |           |  | 
|                                                               |  |      |      |        |  |       |           |           |  |           |   |                 |  |              |           |              |  |       |           |  |  |  |         |  |  |  |         |      |  |  |         |      |  |  |           |  | 
|James F. Dietz                                                 |  |      | 2006 |        |  |       | 445,000   |           |  |           |  |                 |  |              | 320,466   |              |  |       | 1,932,500 |  |  |  | 270,000 |  |  |  | 179,240 | (9)  |  |  | 41,397  | (10) |  |  | 3,188,603 |  | 
|Executive Vice President and Chief Operating Officer           |  |      |      |        |  |       |           |           |  |           |   |                 |  |              |           |              |  |       |           |  |  |  |         |  |  |  |         |      |  |  |         |      |  |  |           |  | 
|                                                               |  |      |      |        |  |       |           |           |  |           |   |                 |  |              |           |              |  |       |           |  |  |  |         |  |  |  |         |      |  |  |         |      |  |  |           |  | 
|Thomas J. Regan, Jr.                                           |  |      | 2006 |        |  |       | 355,045   |           |  |           |  |                 |  |              | 223,378   |              |  |       | 927,600   |  |  |  | 177,000 |  |  |  | 388,434 | (11) |  |  | 23,490  | (12) |  |  | 2,094,947 |  | 
|President, PCS Phosphate and PCS Nitrogen                      |  |      |      |        |  |       |           |           |  |           |   |                 |  |              |           |              |  |       |           |  |  |  |         |  |  |  |         |      |  |  |         |      |  |  |           |  | 
|                                                               |  |      |      |        |  |       |           |           |  |           |   |                 |  |              |           |              |  |       |           |  |  |  |         |  |  |  |         |      |  |  |         |      |  |  |           |  | 
|Garth W. Moore                                                 |  |      | 2006 |        |  |       | 366,400   |           |  |           |  |                 |  |              | 234,609   |              |  |       | 918,323   |  |  |  | 171,000 |  |  |  |        | (13) |  |  | 34,704  | (14) |  |  | 1,725,036 |  | 
|President, PCS Potash                                          |  |      |      |        |  |       |           |           |  |           |   |                 |  |              |           |              |  |       |           |  |  |  |         |  |  |  |         |      |  |  |         |      |  |  |           |  | 
|                                                               |  |      |      |        |  |       |           |           |  |           |   |                 |  |              |           |              |  |       |           |  |  |  |         |  |  |  |         |      |  |  |         |      |  |  |           |  | 



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Those amounts that were paid in Canadian dollars have been
    converted to United States dollars using the average exchange
    rate for the month prior to the date of payment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   
|(2) | Reports the amounts recognized for fiscal year 2006 financial
    statement reporting purposes in accordance with revised
    Statement of Financial Accounting Standards No. 123R,
    Share-Based Payment, or FAS 123R, under generally
    accepted accounting principles in the United States, or US GAAP,
    for performance share units granted pursuant to our Medium-Term
    Incentive Plan in effect for the three-year performance period
    January 1, 2006 to December 31, 2008. See
    Compensation Discussion and Analysis 
    Medium-Term Incentive Plan. To calculate the amounts
    recognized in accordance with FAS 123R, the value of the
    performance share units was estimated quarterly using a Monte
    Carlo valuation model with the following assumptions:

|                                                       |  |                |       |               |  |                    |       |                   |  |  |       |   |  |  |       |   | 
|------------------------------------------------------ |  | -------------- | ----- | ------------- |  | ------------------ | ----- | ----------------- |  |  | ----- | - |  |  | ----- | - | 
|                                                       |  |                |       |               |  |                    |       |                   | 
|                                                       |  | Quarter Ended  |       | Quarter Ended |  | Quarter Ended      |       | Quarter Ended     | 
|                                                       |  | March 31, 2006 |       | June 30, 2006 |  | September 30, 2006 |       | December 31, 2006 | 
|                                                       |  |                |       |               |  |                    |       |                   | 
|Risk-Free Interest Rate                                |  |                | 4.816 | %             |  |                    | 5.122 | %                 |  |  | 4.614 | % |  |  | 4.808 | % | 
|                                                       |  |                |       |               |  |                    |       |                   |  |  |       |   |  |  |       |   | 
|Dividend Yield                                         |  |                | 1.24  | %             |  |                    | 1.18  | %                 |  |  | 1.15  | % |  |  | 1.12  | % | 
|                                                       |  |                |       |               |  |                    |       |                   |  |  |       |   |  |  |       |   | 
|Correlation Between our Common Share Price and DJUSBMI |  |                | 0.52  |               |  |                    | 0.56  |                   |  |  | 0.58  |   |  |  | 0.48  |   | 
|                                                       |  |                |       |               |  |                    |       |                   |  |  |       |   |  |  |       |   | 
|Volatility of our Common Share Price                   |  |                | 27.87 | %             |  |                    | 30.85 | %                 |  |  | 29.83 | % |  |  | 31.53 | % | 
|                                                       |  |                |       |               |  |                    |       |                   |  |  |       |   |  |  |       |   | 
|Volatility of DJUSBMI                                  |  |                | 16.68 | %             |  |                    | 17.79 | %                 |  |  | 17.73 | % |  |  | 17.75 | % | 
|                                                       |  |                |       |               |  |                    |       |                   |  |  |       |   |  |  |       |   | 



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(3) | Reports the amounts recognized for fiscal year 2006 US GAAP
    financial statement reporting purposes in accordance with FAS
    123R for options granted pursuant to the 2006 Performance Option
    Plan. The amounts reported represent the full grant date fair
    value of the awards in accordance with FAS 123R, because each of
    the Named Executive Officers are eligible for retirement. See
    Compensation Discussion and Analysis  Long-Term
    Incentives. For a discussion of the assumptions made in
    the valuation of the awards, see Notes 26 and 32 to our
    consolidated financial statements for the fiscal year ended
    December 31, 2006.                                                                                                                               
|   
|(4) | Reports amounts awarded pursuant to our Short-Term Incentive
    Plan for 2006 performance, which amounts were paid in 2007. See
    Compensation Discussion and Analysis 
    Short-Term Incentive Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   
|(5) | Reports the aggregate change of $94,917 in the actuarial present
    value of Mr. Doyles accumulated benefit under the
    Canadian Supplemental Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   
|(6) | Of the amount reported, $8,195 represents our contributions to
    the Canadian Pension Plan on behalf of Mr. Doyle, $60,000
    represents our contributions to the Savings Plan on behalf of
    Mr. Doyle, $10,601 represents life insurance premiums paid
    for the benefit of Mr. Doyle, $14,040 represents medical
    insurance premiums paid on behalf of Mr. Doyle, $19,614
    represents tax gross-ups for taxable benefits and $68,508
    represents perquisites. Perquisites include country club
    memberships, financial and tax planning services, spousal travel
    benefits (while accompanying the executive on corporation
    business) and parking. The aggregate incremental cost of the
    financial and tax planning services paid for the benefit of
    Mr. Doyle was $38,412.
|   
|(7) | Reports the aggregate change of $276,707 in the actuarial
    present value of Mr. Brownlees accumulated benefit
    under the Canadian Supplemental Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   
|(8) | Of the amount reported, $8,218 represents our contributions to
    the Canadian Pension Plan on behalf of Mr. Brownlee,
    $27,600 represents our contributions to the Savings Plan on
    behalf of Mr. Brownlee, $4,240 represents life insurance
    premiums paid for the benefit of Mr. Brownlee, $6,743
    represents tax gross-ups for taxable benefits and $11,755
    represents perquisites. Perquisites include country club
    memberships, spousal travel benefits (while accompanying the
    executive on corporation business) and parking.                                                                                                                                                                                                                                                  
|   
|(9) | Reports the aggregate change of $98,885 in the actuarial present
    value of Mr. Dietzs accumulated benefit under the
    U.S. Pension Plan and the aggregate change of $80,354 in the
    actuarial present value of Mr. Dietzs accumulated
    benefit under the U.S. Supplemental Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   









---



##### Table of Contents





|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | Of the amount reported, $19,807 represents amounts contributed
    or paid by us in connection with the 401(k) Plan (including
    $13,057 in contributions to the 401(k) Plan on behalf of
    Mr. Dietz and $6,750 that exceeds the 401(k) Plan statutory
    limit and is therefore immediately taxable and paid to
    Mr. Dietz in cash), $7,459 represents life insurance
    premiums paid for the benefit of Mr. Dietz, $2,365
    represents tax
    gross-ups for taxable
    benefits and $11,766 represents perquisites. The perquisites
    include country club memberships and reimbursement for spousal
    travel benefits (while accompanying the executive on corporation
    business).
|    
|(11) | Reports the aggregate change of $203,512 in the actuarial
    present value of Mr. Regans accumulated benefit under
    the U.S. Pension Plan and the aggregate change of $184,922 in
    the actuarial present value of Mr. Regans accumulated
    benefit under the U.S. Supplemental Plan.                                                                                                                                                                                                                                                                                                                                                                                                            
|    
|(12) | Of the amount reported, $17,251 represents amounts contributed
    or paid by us in connection with the 401(k) Plan (including
    $13,200 in contributions to the 401(k) Plan on behalf of
    Mr. Regan and $4,051 that exceeds the 401(k) Plan statutory
    limit and is therefore immediately taxable and paid to
    Mr. Regan in cash) and $6,239 represents life insurance
    premiums paid for the benefit of Mr. Regan.                                                                                                                                                                                                                                                                         
|    
|(13) | The actuarial present value of Mr. Moores accumulated
    benefit under the Canadian Supplemental Plan declined by $42,931
    in 2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    
|(14) | Of the amount reported, $8,233 represents our contributions to
    the Canadian Pension Plan on behalf of Mr. Moore, $21,984
    represents our contributions to the Savings Plan on behalf of
    Mr. Moore, $4,006 represents life insurance premiums paid
    for the benefit of Mr. Moore and $481 represents tax
    gross-ups for taxable benefits.                                                                                                                                                                                                                                                                                                                                                  

Salary and Bonus




Stock and Option Awards




Non-Equity Incentive Plan Compensation


±


|                                                                              |  |                         |  |                                      |  |                         
|----------------------------------------------------------------------------- |  | ----------------------- |  | ------------------------------------ |  | ------------------------
|                                                                             
|                                                                              |  | Award Percentage when   |  |                                     
|                                                                              |  | Award Percentage when   |  | ACFR is Equal to or                  |  | Maximum Award Percentage
|Officers                                                                      |  | ACFR is Less than 1     |  | Greater than 1                       |  | (ACFR Greater than 1.5) 
|                                                                             
|Tier I: Corporate President, CEO                                              |  | 100% multiplied by ACFR |  | (200% multiplied by ACFR) minus 100% |  | 200%                    
|                                                                             
|Tier IA: Executive VP and COO, Executive VP
    and CFO                       |  | 70% multiplied by ACFR  |  | (140% multiplied by ACFR) minus 70%  |  | 140%                    
|                                                                             
|Tier II: Sr. VP Admin., Sr. VP Corporate
    Relations, Subsidiary Presidents |  | 55% multiplied by ACFR  |  | (100% multiplied by ACFR) minus 55%  |  | 110%                    
|                                                                             

10-K


Employment Agreements












---



##### Table of Contents



Grants of Plan-Based Awards




|                           |  |                                     |          |  |                                |             |         |        |          |            |           |              |  |           |           |  |        |  |   |         |  |  |           |  |  |         |         |  |        |  |            |  |  |  |            |  |  |  |           | 
|-------------------------- |  | ----------------------------------- | -------- |  | ------------------------------ | ----------- | ------- | ------ | -------- | ---------- | --------- | ------------ |  | --------- | --------- |  | ------ |  | - | ------- |  |  | --------- |  |  | ------- | ------- |  | ------ |  | ---------- |  |  |  | ---------- |  |  |  | --------- | 
|                           | 
|                           |  | Estimated Possible Payouts Under    |          |  | Estimated Future Payouts Under |             |         |       
|                           |  | Non-Equity Incentive Plan Awards(1) |          |  | Equity Incentive Plan Awards   |             |         |       
|                           |  |                                     |          |  |                                |             |         |        |          | Grant Date |          
|                           |  |                                     |          |  |                                | Exercise or |         |        | Closing  |            |           | Fair Value   | 
|                           |  |                                     |          |  |                                | Base Price  |         |        | Market   |            |           | of Stock and | 
|                           |  |                                     |          |  |                                | of Option   |         |        | Price on |            |           | Option       | 
|                           |  | Grant                               |          |  | Threshold                      |             |         | Target |          |            | Maximum   |              |  | Threshold |           |  | Target |  |   | Maximum |  |  | Awards(2) |  |  | Date of |         |  | Awards | 
|Name                       |  | Date                                |          |  | ($)                            |             |         | ($)    |          |            | ($)       |              |  | (#)       |           |  | (#)    |  |   | (#)     |  |  | ($/Sh)    |  |  | Grant   |         |  | ($)    | 
|(a)                        |  | (b)                                 |          |  | (c)                            |             |         | (d)    |          |            | (e)       |              |  | (f)       |           |  | (g)    |  |   | (h)     |  |  | (k)       |  |  | ($/Sh)  |         |  | (l)    | 
|                           | 
|William J. Doyle           |  |                                     |          |  |                                |             |         |        |          |            |           |              |  |           |           |  |        |  |   |         |  |  |           |  |  |         |         |  |        |  |            |  |  |  |            |  |  |  |           | 
|Short-Term Incentive Plan  |  |                                     |          |  |                                |             | 500,000 |        |          |            | 1,000,000 |              |  |           | 2,000,000 |  |        |  |   |         |  |  |           |  |  |         |         |  |        |  |            |  |  |  |            |  |  |  |           | 
|Medium-Term Incentive Plan |  |                                     | 1/1/2006 |  |                                |             |         |        |          |            |           |              |  |           |           |  |        |  | 0 |         |  |  | 26,934    |  |  |         | 40,401  |  |        |  |            |  |  |  |            |  |  |  | 2,103,007 | 
|Performance Option Plan    |  |                                     | 5/4/2006 |  |                                |             |         |        |          |            |           |              |  |           |           |  |        |  | 0 |         |  |  | 150,000   |  |  |         | 150,000 |  |        |  | $101.01    |  |  |  | $103.40    |  |  |  | 5,797,500 | 
|                          
|Wayne R. Brownlee          |  |                                     |          |  |                                |             |         |        |          |            |           |              |  |           |           |  |        |  |   |         |  |  |           |  |  |         |         |  |        |  |            |  |  |  |            |  |  |  |           | 
|Short-Term Incentive Plan  |  |                                     |          |  |                                |             | 161,000 |        |          |            | 322,000   |              |  |           | 644,000   |  |        |  |   |         |  |  |           |  |  |         |         |  |        |  |            |  |  |  |            |  |  |  |           | 
|Medium-Term Incentive Plan |  |                                     | 1/1/2006 |  |                                |             |         |        |          |            |           |              |  |           |           |  |        |  | 0 |         |  |  | 7,964     |  |  |         | 11,946  |  |        |  |            |  |  |  |            |  |  |  | 621,829   | 
|Performance Option Plan    |  |                                     | 5/4/2006 |  |                                |             |         |        |          |            |           |              |  |           |           |  |        |  | 0 |         |  |  | 50,000    |  |  |         | 50,000  |  |        |  | Cdn$111.80 |  |  |  | Cdn$114.50 |  |  |  | 1,913,173 | 
|                          
|James F. Dietz             |  |                                     |          |  |                                |             |         |        |          |            |           |              |  |           |           |  |        |  |   |         |  |  |           |  |  |         |         |  |        |  |            |  |  |  |            |  |  |  |           | 
|Short-Term Incentive Plan  |  |                                     |          |  |                                |             | 155,750 |        |          |            | 311,500   |              |  |           | 623,000   |  |        |  |   |         |  |  |           |  |  |         |         |  |        |  |            |  |  |  |            |  |  |  |           | 
|Medium-Term Incentive Plan |  |                                     | 1/1/2006 |  |                                |             |         |        |          |            |           |              |  |           |           |  |        |  | 0 |         |  |  | 7,704     |  |  |         | 11,556  |  |        |  |            |  |  |  |            |  |  |  | 601,528   | 
|Performance Option Plan    |  |                                     | 5/4/2006 |  |                                |             |         |        |          |            |           |              |  |           |           |  |        |  | 0 |         |  |  | 50,000    |  |  |         | 50,000  |  |        |  | $101.01    |  |  |  | $103.40    |  |  |  | 1,932,500 | 
|                          
|Thomas J. Regan, Jr.       |  |                                     |          |  |                                |             |         |        |          |            |           |              |  |           |           |  |        |  |   |         |  |  |           |  |  |         |         |  |        |  |            |  |  |  |            |  |  |  |           | 
|Short-Term Incentive Plan  |  |                                     |          |  |                                |             | 97,637  |        |          |            | 195,275   |              |  |           | 390,550   |  |        |  |   |         |  |  |           |  |  |         |         |  |        |  |            |  |  |  |            |  |  |  |           | 
|Medium-Term Incentive Plan |  |                                     | 1/1/2006 |  |                                |             |         |        |          |            |           |              |  |           |           |  |        |  | 0 |         |  |  | 5,370     |  |  |         | 8,055   |  |        |  |            |  |  |  |            |  |  |  | 419,290   | 
|Performance Option Plan    |  |                                     | 5/4/2006 |  |                                |             |         |        |          |            |           |              |  |           |           |  |        |  | 0 |         |  |  | 24,000    |  |  |         | 24,000  |  |        |  | $101.01    |  |  |  | $103.40    |  |  |  | 927,600   | 
|                          
|Garth W. Moore             |  |                                     |          |  |                                |             |         |        |          |            |           |              |  |           |           |  |        |  |   |         |  |  |           |  |  |         |         |  |        |  |            |  |  |  |            |  |  |  |           | 
|Short-Term Incentive Plan  |  |                                     |          |  |                                |             | 100,760 |        |          |            | 201,520   |              |  |           | 403,040   |  |        |  |   |         |  |  |           |  |  |         |         |  |        |  |            |  |  |  |            |  |  |  |           | 
|Medium-Term Incentive Plan |  |                                     | 1/1/2006 |  |                                |             |         |        |          |            |           |              |  |           |           |  |        |  | 0 |         |  |  | 5,640     |  |  |         | 8,460   |  |        |  |            |  |  |  |            |  |  |  | 440,371   | 
|Performance Option Plan    |  |                                     | 5/4/2006 |  |                                |             |         |        |          |            |           |              |  |           |           |  |        |  | 0 |         |  |  | 24,000    |  |  |         | 24,000  |  |        |  | Cdn$111.80 |  |  |  | Cdn$114.50 |  |  |  | 918,323   | 
|                          



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The amounts in columns (c), (d) and (e) set forth
    the threshold, target and maximum values of the 2006 Short-Term
    Incentive Plan awards based on respective cash flow returns of
    50%, 100% and 150% of target cash flow return for 2006. The
    actual amount of each Named Executive Officers 2006
    Short-Term Incentive Plan award is set forth in column
    (g) of the Summary Compensation Table above.                                                             
|   
|(2) | Pursuant to the terms of the plan, options under the 2006
    Performance Option Plan were granted with an exercise price
    equal to the closing market price per common share on the NYSE
    for Mr. Doyle, Mr. Dietz and Mr. Regan and on the TSX
    for Mr. Brownlee and Mr. Moore, in each case on the
    trading day immediately preceding the grant date. The closing
    market price on the grant date is shown in the adjoining column
    to column (k) in the above table.









---



##### Table of Contents



Stock Awards






|                     |  |                   
|-------------------- |  | ------------------
|                    
|TSR Vesting Schedule
|                    
|TSR                  |  | Vesting Percentage
|                    
|0% or less           |  | 0%                
|                    
|10%                  |  | 50%               
|                    
|20%                  |  | 75%               
|                    
|30%                  |  | 100%              
|                    
|40%                  |  | 125%              
|                    
|50% or more          |  | 150%              
|                    

|                              |  |                   
|----------------------------- |  | ------------------
|                             
|Relative TSR Vesting Schedule
|                             
|TSR minus DJUSBMI TSR         |  | Vesting Percentage
|                             
|Less than 0%                  |  | 0%                
|                             
|0%                            |  | 50%               
|                             
|5%                            |  | 100%              
|                             
|10% or more                   |  | 150%              
|                             



Option Awards


10-year








|                     |  |                   
|-------------------- |  | ------------------
|                    
|TSR Vesting Schedule
|                    
|3 Year Average of    |  |                   
|CFROI Minus WACC     |  | Vesting Percentage
|                    
|Less than 0%         |  | 0%                
|                    
|0.20%                |  | 30%               
|                    
|1.20%                |  | 70%               
|                    
|2.20%                |  | 90%               
|                    
|2.50%                |  | 100%              
|                    











---



##### Table of Contents



Outstanding Equity Awards at Fiscal Year-End




|                     |  |                |         |  |               |  |                  |             |  |              |                |  |                  |                 |            |                 |               |  |            |               |  |  |        |  |  |   |           | 
|-------------------- |  | -------------- | ------- |  | ------------- |  | ---------------- | ----------- |  | ------------ | -------------- |  | ---------------- | --------------- | ---------- | --------------- | ------------- |  | ---------- | ------------- |  |  | ------ |  |  | - | --------- | 
|                     | 
|                     |  | Option Awards  |         |  | Stock Awards  | 
|                     | 
|                     |  | Equity         |         |  |               |  | Equity Incentive |            
|                     |  | Incentive Plan |         |  |               |  | Equity Incentive |             |  | Plan Awards: |               
|                     |  | Awards:        |         |  |               |  | Plan Awards:     |             |  | Market or    |               
|                     |  | Number of      |         |  | Number of     |  |                  | Number of   |  |              |                |  | Number of        |                 |            | Payout Value    |              
|                     |  | Securities     |         |  | Securities    |  |                  | Securities  |  |              |                |  | Unearned         |                 |            | of Unearned     |              
|                     |  | Underlying     |         |  | Underlying    |  |                  | Underlying  |  |              |                |  | Shares, Units or |                 |            | Shares, Units   |              
|                     |  | Unexercised    |         |  | Unexercised   |  |                  | Unexercised |  |              |                |  | Other Rights     |                 |            | or Other Rights |              
|                     |  | Options        |         |  | Options       |  |                  | Unearned    |  |              | Option         |  |                  | Option          |            |                 | That Have Not |  |            | That Have     | 
|Name                 |  | Exercisable    |         |  | Unexercisable |  |                  | Options(1)  |  |              | Exercise Price |  |                  | Expiration Date |            |                 | Vested(2)     |  |            | Not Vested(3) | 
|(a)                  |  | (b)            |         |  | (c)           |  |                  | (d)         |  |              | (e)            |  |                  | (f)             |            |                 | (i)           |  |            | (j)           | 
|                     | 
|William J. Doyle     |  |                | 80,000  |  |               |  |                  |             |  |              |                |  |                  |                 | $43.38     |                 |               |  | 11/6/2007  |               |  |  |        |  |  |   |           | 
|                     |  |                | 100,000 |  |               |  |                  |             |  |              |                |  |                  |                 | $33.94     |                 |               |  | 11/5/2008  |               |  |  |        |  |  |   |           | 
|                     |  |                | 140,000 |  |               |  |                  |             |  |              |                |  |                  |                 | $30.47     |                 |               |  | 11/21/2010 |               |  |  |        |  |  |   |           | 
|                     |  |                | 140,000 |  |               |  |                 |             |  |              |                |  |                  |                 | $31.50     |                 |               |  | 11/20/2011 |               |  |  |        |  |  |   |           | 
|                     |  |                | 140,000 |  |               |  |                  |             |  |              |                |  |                  |                 | $33.01     |                 |               |  | 11/20/2012 |               |  |  |        |  |  |   |           | 
|                     |  |                | 112,512 |  |               |  |                  |             |  |              |                |  |                  |                 | $39.50     |                 |               |  | 11/20/2013 |               |  |  |        |  |  |   |           | 
|                     |  |                |         |  |               |  |                  |             |  |              | 225,000        |  |                  |                 | $88.23     |                 |               |  | 5/5/2015   |               |  |  |        |  |  |   |           | 
|                     |  |                |         |  |               |  |                  |             |  |              | 150,000        |  |                  |                 | $101.01    |                 |               |  | 5/4/2016   |               |  |  | 40,401 |  |  | $ | 5,675,868 | 
|                    
|Wayne R. Brownlee    |  |                | 60,000  |  |               |  |                  |             |  |              |                |  |                  |                 | Cdn$47.65  |                 |               |  | 11/21/2010 |               |  |  |        |  |  |   |           | 
|                     |  |                | 60,000  |  |               |  |                  |             |  |              |                |  |                  |                 | Cdn$49.96  |                 |               |  | 11/20/2011 |               |  |  |        |  |  |   |           | 
|                     |  |                | 60,000  |  |               |  |                 |             |  |              |                |  |                  |                 | Cdn$52.33  |                 |               |  | 11/20/2012 |               |  |  |        |  |  |   |           | 
|                     |  |                | 48,220  |  |               |  |                  |             |  |              |                |  |                  |                 | Cdn$51.52  |                 |               |  | 11/20/2013 |               |  |  |        |  |  |   |           | 
|                     |  |                |         |  |               |  |                  |             |  |              | 65,000         |  |                  |                 | Cdn$109.92 |                 |               |  | 5/5/2015   |               |  |  |        |  |  |   |           | 
|                     |  |                |         |  |               |  |                  |             |  |              | 50,000         |  |                  |                 | Cdn$111.80 |                 |               |  | 5/4/2016   |               |  |  | 11,946 |  |  | $ | 1,678,273 | 
|                    
|James F. Dietz       |  |                | 70,000  |  |               |  |                  |             |  |              |                |  |                  |                 | $31.50     |                 |               |  | 11/20/2011 |               |  |  |        |  |  |   |           | 
|                     |  |                | 70,000  |  |               |  |                 |             |  |              |                |  |                  |                 | $33.01     |                 |               |  | 11/20/2012 |               |  |  |        |  |  |   |           | 
|                     |  |                | 56,252  |  |               |  |                  |             |  |              |                |  |                  |                 | $39.50     |                 |               |  | 11/20/2013 |               |  |  |        |  |  |   |           | 
|                     |  |                |         |  |               |  |                  |             |  |              | 65,000         |  |                  |                 | $88.23     |                 |               |  | 5/5/2015   |               |  |  |        |  |  |   |           | 
|                     |  |                |         |  |               |  |                  |             |  |              | 50,000         |  |                  |                 | $101.01    |                 |               |  | 5/4/2016   |               |  |  | 11,556 |  |  | $ | 1,623,483 | 
|                    
|Thomas J. Regan, Jr. |  |                |        |  |               |  |                 |             |  |              | 35,000         |  |                  |                 | $88.23     |                 |               |  | 5/5/2015   |               |  |  |        |  |  |   |           | 
|                     |  |                |         |  |               |  |                  |             |  |              | 24,000         |  |                  |                 | $101.01    |                 |               |  | 5/4/2016   |               |  |  | 8,055  |  |  | $ | 1,131,633 | 
|                    
|Garth W. Moore       |  |                | 48,220  |  |               |  |                  |             |  |              |                |  |                  |                 | Cdn$51.52  |                 |               |  | 11/20/2013 |               |  |  |        |  |  |   |           | 
|                     |  |                |         |  |               |  |                 |             |  |              | 35,000         |  |                  |                 | Cdn$109.92 |                 |               |  | 5/5/2015   |               |  |  |        |  |  |   |           | 
|                     |  |                |         |  |               |  |                  |             |  |              | 24,000         |  |                  |                 | Cdn$111.80 |                 |               |  | 5/4/2016   |               |  |  | 8,460  |  |  | $ | 1,188,531 | 
|                    



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The outstanding equity incentive plan awards reported in column
    (d) represent unearned options pursuant to our 2005 and 2006
    Performance Option Plans. Options granted pursuant to the 2005
    Performance Option Plan vest at the end of the performance
    period ending December 31, 2007, and options granted
    pursuant to the 2006 Performance Option Plan vest at the end of
    the performance period ending December 31, 2008. The
    reported number of shares underlying the options is based on
    achievement of the plans maximum performance levels.
|   
|(2) | The outstanding equity incentive plan awards reported in column
    (i) represent outstanding awards pursuant to our Medium-Term
    Incentive Plan, which vest at the end of the performance period
    ending December 31, 2008. The reported number of units is
    based on achievement of the plans maximum performance
    level.                                                                                                                                                                                                                                           
|   
|(3) | Based on the average closing price of $140.488 of our common
    shares on the NYSE for the last 30 trading days of 2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                          

Option Exercises and Stock Vested




| |  |                          |  |     |                  |  |           |                 |            |     |                |  |     |  |  |  |   |  |  | 
| |  | ------------------------ |  | --- | ---------------- |  | --------- | --------------- | ---------- | --- | -------------- |  | --- |  |  |  | - |  |  | 
|
| |  | Option Awards            |  |     | Stock Awards     |  |           |                
| |  |                          |  |     |                  |  |           |                
| |  | Number of                |  |     |                  |  | Number of |                 |            |     |                | 
| |  | Shares Acquired          |  |     | Value Realized   |  |           | Shares Acquired |            |     | Value Realized |  |     | 
| |  | on Exercise              |  |     | Upon Exercise(1) |  |           | on Vesting      |            |     | Upon Vesting   |  |     | 
| |  | Name                     |  | (#) |                  |  | ($)       |                 |            | (#) |                |  | ($) |  |  | 
| |  | (a)                      |  | (b) |                  |  | (c)       |                 |            | (d) |                |  | (e) |  |  | 
| |  |                          |  |     |                  |  |           |                 |            |     |                |  |     |  |  | 
| |  | William J. Doyle         |  |     |                 |  |           |                 |           |     |                |  |    |  |  |  |  |  |  | 
| |  | Wayne R.
    Brownlee(2) |  |     | 110,000          |  |           |                 | 11,404,165 |     |                |  |    |  |  |  |  |  |  | 
| |  | James F. Dietz           |  |     | 50,000           |  |           |                 | 3,489,905  |     |                |  |    |  |  |  |  |  |  | 
| |  | Thomas J. Regan, Jr.     |  |     | 48,220           |  |           |                 | 2,783,344  |     |                |  |    |  |  |  |  |  |  | 
| |  | Garth W. Moore
    (2)   |  |     | 50,000           |  |           |                 | 4,220,408  |     |                |  |    |  |  |  |  |  |  | 
|



|    |                                                                                                                                                                           
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | As required by Item 402(g) of
    Regulation S-K,
    the value realized upon exercise represents the value of Shares
    at the time of exercise less the exercise price.
|   
|(2) | The value realized upon exercise was converted to U.S. dollars
    using the average Canadian exchange rate of 1.13461 for fiscal
    year 2006.                          









---



##### Table of Contents



Pension Benefits




| |  |                      |  |                                              |  |                  |          |     |  |     |                |  |  |  |   |  |  | 
| |  | -------------------- |  | -------------------------------------------- |  | ---------------- | -------- | --- |  | --- | -------------- |  |  |  | - |  |  | 
|
| |  | Number of Years      |  | Present Value of                             |  | Payments During  |          |    
| |  | Credited Service     |  | Accumulated Benefit(1)                       |  | Last Fiscal Year |          |    
| |  | Name                 |  | Plan Name                                    |  | (#)              |          | ($) |  | ($) |                | 
| |  |                      |  |                                              |  |                  |          |     |  |     |                | 
| |  | William J. Doyle     |  | Canadian Supplemental Plan                   |  |                  | 19.67    |     |  |     | 8,303,385      |  |  |  |  |  |  | 
| |  | Wayne R. Brownlee    |  | Canadian Supplemental Plan                   |  |                  | 29.67    | (2) |  |     | 2,386,719      |  |  |  |  |  |  | 
| |  | James F. Dietz       |  | U.S. Pension Plan
    U.S. Supplemental Plan |  |                  | 13.59.83 | (3) |  |     | 377,876493,535 |  |  |  |  |  |  | 
| |  | Thomas J. Regan, Jr. |  | U.S. Pension Plan
    U.S. Supplemental Plan |  |                  | 9.759.75 |     |  |     | 867,568733,241 |  |  |  |  |  |  | 
| |  | Garth W. Moore       |  | Canadian Supplemental Plan                   |  |                  | 24.58    |     |  |     | 1,882,169      |  |  |  |  |  |  | 
|



|    |                                                                                                                                                                                                                                                                                                                    
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The present value of accumulated benefit assumes retirement at
    the earliest age that does not require a reduction in benefits.
    For the Canadian Supplemental Plan, such age is 62. For the U.S.
    Pension Plan and U.S. Supplemental Plan, such age is 65 or age
    62 with 20 years of service.        
|   
|(2) | Mr. Brownlees years of credited service includes
    11.6 years of service, from May 1977 to December 1988, with
    the government of Saskatchewan prior to the privatization of our
    company in 1989 and 18.1 years of service, from December
    1988 to the present, with our company and our predecessors.
|   
|(3) | The difference in Mr. Dietzs years of credited
    service under the U.S. Pension Plan and the U.S. Supplemental
    Plan relates to the plans differing treatment of
    Mr. Dietzs years of credited service under the
    Nitrogen Pension Plan, a predecessor to the U.S. Pension Plan.                     



| |  |                 |  |                                       |  | 
| |  | --------------- |  | ------------------------------------- |  | 
|
| |  | Interest Rate   |  | 5.20% per annum                       |  | 
| |  | Retirement Age  |  | Age 62                                |  | 
| |  | Mortality Rates |  | 1994 Unisex Pensioner Mortality Table |  | 
|



Estimated Termination Payments and Benefits












---



##### Table of Contents





| |  |                                                    |  |  |            |  |  |          |           |  |            |  |           |          |  |  |           |  |  |  |           |  |  | 
| |  | -------------------------------------------------- |  |  | ---------- |  |  | -------- | --------- |  | ---------- |  | --------- | -------- |  |  | --------- |  |  |  | --------- |  |  | 
|
| |  | William J.                                         |  |  | Wayne R.   |  |  | James F. |           |  | Thomas J.  |  |           | Garth W. |  |  |          
| |  | Doyle                                              |  |  | Brownlee   |  |  | Dietz    |           |  | Regan, Jr. |  |           | Moore    |  |  |          
| |  | ($)                                                |  |  | ($)        |  |  | ($)      |           |  | ($)        |  |           | ($)      |  |  |          
| |  |                                                    |  |  |            |  |  |          |           |  |            |  |           |          |  |  |           |  | 
| |  | Involuntary Termination/ Termination Without Cause |  |  | 3,994,207  |  |  |          | 1,199,030 |  |            |  | 864,501   |          |  |  | 650,495   |  |  |  | 1,470,023 |  |  | 
| |  | Salary/ Severance                                  |  |  | 757,861    |  |  |          | 639,606   |  |            |  | 231,797   |          |  |  | 273,284   |  |  |  | 692,677   |  |  | 
| |  | Medium-Term Incentive Plan                         |  |  | 1,891,956  |  |  |          | 559,424   |  |            |  | 541,161   |          |  |  | 377,211   |  |  |  | 396,177   |  |  | 
| |  | Supplemental
    Plan(1)(2)(3)                     |  |  | 1,332,686  |  |  |          | 0         |  |            |  | 91,543    |          |  |  | 0         |  |  |  | 381,169   |  |  | 
| |  | Executive Health & Welfare Benefits                |  |  | 11,704     |  |  |          | 0         |  |            |  | 0         |          |  |  | 0         |  |  |  | 0         |  |  | 
|
| |  | Retirement                                         |  |  | 22,026,392 |  |  |          | 6,410,572 |  |            |  | 6,347,454 |          |  |  | 3,330,241 |  |  |  | 3,782,048 |  |  | 
| |  | Medium-Term Incentive Plan                         |  |  | 1,891,956  |  |  |          | 559,424   |  |            |  | 541,161   |          |  |  | 377,211   |  |  |  | 396,177   |  |  | 
| |  | Performance Options (36 Month                      |  |  |            |  |  |          |           |  |            |  |           |          |  |  |           |  |  |  |           |  |  | 
| |  | Continued Vesting)                                 |  |  | 18,801,750 |  |  |          | 5,851,148 |  |            |  | 5,714,750 |          |  |  | 2,953,030 |  |  |  | 3,004,702 |  |  | 
| |  | Supplemental
    Plan(1)(2)(3)                     |  |  | 1,332,686  |  |  |          | 0         |  |            |  | 91,543    |          |  |  | 0         |  |  |  | 381,169   |  |  | 
|
| |  | Termination Following Change in Control            |  |  | 32,042,423 |  |  |          | 9,911,421 |  |            |  | 6,579,251 |          |  |  | 3,603,525 |  |  |  | 6,625,899 |  |  | 
| |  | Salary/Severance                                   |  |  | 6,181,000  |  |  |          | 2,382,000 |  |            |  | 231,797   |          |  |  | 273,284   |  |  |  | 1,732,200 |  |  | 
| |  | Medium-Term Incentive Plan                         |  |  | 5,675,868  |  |  |          | 1,678,273 |  |            |  | 541,161   |          |  |  | 377,211   |  |  |  | 1,188,531 |  |  | 
| |  | Performance Options (Accelerated)                  |  |  | 18,801,750 |  |  |          | 5,851,148 |  |            |  | 5,714,750 |          |  |  | 2,953,030 |  |  |  | 3,004,702 |  |  | 
| |  | Supplemental
    Plan(1)(2)(3)                     |  |  | 1,332,686  |  |  |          | 0         |  |            |  | 91,543    |          |  |  | 0         |  |  |  | 700,466   |  |  | 
| |  | Executive Health & Welfare Benefits                |  |  | 51,119     |  |  |          | 0         |  |            |  | 0         |          |  |  | 0         |  |  |  | 0         |  |  | 
|
| |  | Death or Disability                                |  |  | 1,891,956  |  |  |          | 559,424   |  |            |  | 541,161   |          |  |  | 377,211   |  |  |  | 96,177    |  |  | 
| |  | Medium-Term Incentive Plan                         |  |  | 1,891,956  |  |  |          | 559,424   |  |            |  | 541,161   |          |  |  | 377,211   |  |  |  | 96,177    |  |  | 
|



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Supplemental Plan refers to the Canadian Supplemental Plan for
    Mr. Doyle, Mr. Brownlee and Mr. Moore and to the
    U.S. Supplemental Plan for Mr. Dietz and Mr. Regan.
    The Supplemental Plan benefits set forth for each Named
    Executive Officer reflect the incremental value of benefits for
    each termination event that exceeds the present value of
    benefits set forth in the Pension Benefits table
    above.
|   
|(2) | As of December 31, 2006, Mr. Brownlee was age 54
    and ineligible to receive benefits under the Canadian
    Supplemental Plan. No benefits are payable if the participant is
    not at least age 55 at termination.                                                                                                                                                                                                                   
|   
|(3) | As of December 31, 2006, Mr. Regan was age 62
    with 20 years of service and eligible to receive full
    benefits under the U.S. Supplemental Plan. As such, the present
    value of benefits set forth in the Pension Benefits
    table above is equal to the value of benefits Mr. Regan
    would have received if he had retired December 31, 2006.                                                                            

Payments Made Upon Involuntary Termination or Termination
Without Cause




Payments Made Upon Retirement




Payments Made Upon Termination Following a Change in
Control












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Payments Made Upon Death or Disability
















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Performance Graphs


®





| |  |                          |  |        |     |        |  |        |     |        |  |        |     |  |  |   |     |  |  |   |     |  |  |   |     |  |  |  | 
| |  | ------------------------ |  | ------ | --- | ------ |  | ------ | --- | ------ |  | ------ | --- |  |  | - | --- |  |  | - | --- |  |  | - | --- |  |  |  | 
| | 
| |  | Dec-01                   |  | Dec-02 |     | Dec-03 |  | Dec-04 |     | Dec-05 |  | Dec-06 |     |  | 
| |  |                          |  |        |     |        |  |        |     |        |  |        |     |  |  |   |    
| |  | PotashCorp-NYSE Listing  |  | $      | 100 |        |  | $      | 105 |        |  | $      | 145 |  |  | $ | 283 |  |  | $ | 275 |  |  | $ | 495 |  |  |  | 
| |  | Self-Selected Peer Group |  | $      | 100 |        |  | $      | 103 |        |  | $      | 129 |  |  | $ | 217 |  |  | $ | 309 |  |  | $ | 510 |  |  |  | 
| |  | S&P
    500®             |  | $      | 100 |        |  | $      | 78  |        |  | $      | 100 |  |  | $ | 111 |  |  | $ | 117 |  |  | $ | 135 |  |  |  | 
| |  | DJUSBMI                  |  | $      | 100 |        |  | $      | 92  |        |  | $      | 124 |  |  | $ | 141 |  |  | $ | 148 |  |  | $ | 174 |  |  |  | 
| | 

|                                          |  |         
|----------------------------------------- |  | --------
|                                          |  | Symbol  
|The self-selected peer group consists of: |  |         
|Agrium Inc.*                              |  | AGU     
|Mosaic Co (formerly IMC Global Inc)       |  | IGL     
|Yara International ASA                    |  | YAR NO  
|Israel Chemicals Limited                  |  | CHIM IT 
|Sociedad Quimica Y Minera de Chile S.A.   |  | SQM/B CI
|K+S AG                                    |  | SDF GR  






| |  |                          |  |        |     |        |  |        |     |        |  |        |     |  |  |   |     |  |  |   |     |  |  |   |     |  |  |  | 
| |  | ------------------------ |  | ------ | --- | ------ |  | ------ | --- | ------ |  | ------ | --- |  |  | - | --- |  |  | - | --- |  |  | - | --- |  |  |  | 
| | 
| |  | Dec-01                   |  | Dec-02 |     | Dec-03 |  | Dec-04 |     | Dec-05 |  | Dec-06 |     |  | 
| |  |                          |  |        |     |        |  |        |     |        |  |        |     |  |  |   |    
| |  | PotashCorp-TSX Listing   |  | $      | 100 |        |  | $      | 104 |        |  | $      | 119 |  |  | $ | 213 |  |  | $ | 200 |  |  | $ | 362 |  |  |  | 
| |  | S&P/ TSX Composite Index |  | $      | 100 |        |  | $      | 88  |        |  | $      | 111 |  |  | $ | 127 |  |  | $ | 158 |  |  | $ | 185 |  |  |  | 
| | 






® ©












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Directors and Officers


Liability Insurance







Voting Shares









2008 Shareholder Proposals







Additional Information


10-K





Directors Approval





















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##### Table of Contents






Appendix A


Disclosure of Corporate Governance Practices


58-101.


|                                           |  |            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                       |  |     |  |  |                                                                                                                                                                                                                                                                                                                                                                                     
|------------------------------------------ |  | ---------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------- |  | --- |  |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                          
|                                           |  | PotashCorp |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                      
|Disclosure Requirement under Form 58-101F1 |  | Compliance |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Comments & Discussion
|                                          
|1.                                         |  | (a)        |  | Disclose the identity of directors who are independent.                                                                                                                                                                                                                                                                                                                                                                                                |                       |  | Yes |  |  | The Board has determined that all of the directors of the
    Corporation with the exception of Mr. Doyle and Ms. Paliza are
    independent. See disclosure under the Director
    Independence and Other Relationships section of this
    Management Proxy Circular.                                                                                                           
|                                          
|                                           |  | (b)        |  | Disclose the identity of directors who are not independent, and
    describe the basis of that determination.                                                                                                                                                                                                                                                                                                                                          |                       |  | Yes |  |  | See disclosure under the Director Independence and Other
    Relationships section of this Management Proxy Circular.                                                                                                                                                                                                                                                             
|                                          
|                                           |  | (c)        |  | Disclose whether or not a majority of directors are independent.
    If a majority of directors are not independent, describe what
    the board of directors (the board) does to facilitate its
    exercise of independent judgment in carrying out its
    responsibilities.                                                                                                                                                                        |                       |  | Yes |  |  | Ten of twelve, or 83.3%, of the Corporations current
    directors are independent.                                                                                                                                                                                                                                                                                                
|                                          
|                                           |  | (d)        |  | If a director is presently a director of any other issuer that
    is a reporting issuer (or the equivalent) in a jurisdiction or a
    foreign jurisdiction, identify both the director and the other
    issuer.                                                                                                                                                                                                                                     |                       |  | Yes |  |  | Such other directorships have been disclosed in the
    Nominees for Election to the Board of Directors
    section of this Management Proxy Circular.                                                                                                                                                                                                                            
|                                          
|                                           |  | (e)        |  | Disclose whether or not the independent directors hold regularly
    scheduled meetings at which members of management are not in
    attendance. If the independent directors hold such meetings,
    disclose the number of meetings held during the preceding
    12 months. If the independent directors do not hold such
    meetings, describe what the board does to facilitate open and
    candid discussion among its independent directors. |                       |  | Yes |  |  | The Board has adopted a policy for the independent members of
    the Board to meet without management present at each regularly
    scheduled meeting of the Board. These sessions are of no fixed
    duration and participating directors are encouraged to raise and
    discuss any issues of concern. This policy was complied with for
    all meetings of the Board in 2006.
|                                          



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|                                           |  |                                                                                                                                                                 |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                       |  |     |                                                                                                 |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|------------------------------------------ |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------- |  | --- | ----------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                          
|                                           |  | PotashCorp                                                                                                                                                      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                      
|Disclosure Requirement under Form 58-101F1 |  | Compliance                                                                                                                                                      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Comments & Discussion
|                                          
|                                           |  | (f)                                                                                                                                                             |  | Disclose whether or not the chair of the board is an independent
    director. If the board has a chair or lead director who is an
    independent director, disclose the identity of the independent
    chair or lead director, and describe his or her role and
    responsibilities. If the board has neither a chair that is
    independent nor a lead director that is independent, describe
    what the board does to provide leadership for its independent
    directors. |                       |  | Yes |                                                                                                 |  | Dallas J. Howe serves as the Board Chair, and is an independent
    director. He has served as Board Chair since 2003.
    A position description for the Board and Executive Committee
    Chair has been developed and approved by the Board. Amongst
    other things the Board and Executive Committee Chair is expected
    to:
    (a)  provide leadership to ensure effective
    functioning of the Board;
    (b)  lead in the assessment of Board and Executive
    Committee performance;
    (c)  assist the Compensation Committee in monitoring
    and evaluating the performance of the Chief Executive Officer
    and senior officers of the Corporation;
    (d)  lead the Board and Executive Committee in
    ensuring succession plans are in place at the senior management
    level; and
    (e)  act as an effective liaison among the Board and
    management.
|                                          
|                                           |  | (g)                                                                                                                                                             |  | Disclose the attendance record of each director for all board
    meetings held since the beginning of the issuers most
    recently completed financial year.                                                                                                                                                                                                                                                                                                                      |                       |  | Yes |                                                                                                 |  | Attendance records are fully disclosed in the Attendance
    of Directors section of this Management Proxy Circular.
    Pursuant to the PotashCorp Governance Principles,
    directors are expected to attend all meetings of the Board and
    Board committees upon which they serve, to come to such meetings
    fully prepared, and to remain in attendance for the duration of
    the meetings. Where a directors absence from a meeting is
    unavoidable, the director should, as soon as practicable after
    the meeting, contact the Board Chair, the Chief Executive
    Officer or the Corporate Secretary for a briefing on the
    substantive elements of the meeting.                                                                                                                                                                                          
|                                          
|2.                                         |  | Disclose the text of the boards written mandate. If the
    board does not have a written mandate, how the board delineates
    its role and responsibilities. |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Yes                   |  |     | The Board of Directors Charter is attached to this Management
    Proxy Circular as Appendix D.
|                                          
|3.                                         |  | (a)                                                                                                                                                             |  | Disclose whether or not the board has developed written position
    descriptions for the chair and the chair of each board
    committee. If the board has not developed written position
    descriptions for the chair and/or the chair of each board
    committee, briefly describe how the board delineates the role
    and responsibilities of each such position.                                                                                                           |                       |  | Yes |                                                                                                 |  | A position description for the Board and Executive Committee
    Chair and each Board Committee Chair (which are attached to the
    relevant Board Committee Charters) has been developed and
    approved by the Board and can be found on the Corporations
    website at www.potashcorp.com.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|                                          



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|                                           |  |            |  |                                                                                                                                                                                                                                                                               |                       |  |     |  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|------------------------------------------ |  | ---------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------- |  | --- |  |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                          
|                                           |  | PotashCorp |  |                                                                                                                                                                                                                                                                               |                      
|Disclosure Requirement under Form 58-101F1 |  | Compliance |  |                                                                                                                                                                                                                                                                               | Comments & Discussion
|                                          
|                                           |  | (b)        |  | Disclose whether or not the board and CEO have developed a
    written position description for the CEO. If the board and CEO
    have not developed such a position description, briefly describe
    how the board delineates the role and responsibilities of the
    CEO. |                       |  | Yes |  |  | A written position description for the Chief Executive Officer
    has been developed and approved by the Board.
    The Chief Executive Officer reports to the Board and has general
    supervision and control over the business and affairs of the
    Corporation. Amongst other things, the Chief Executive Officer
    is expected to:
    (a)  foster a corporate culture that promotes ethical
    practices, encourages individual integrity and fulfils social
    responsibility;
    (b)  develop and recommend to the Board a long-term
    strategy and vision for the Corporation that leads to creation
    of shareholder value;
    (c)  develop and recommend to the Board annual
    business plans and budgets that support the Corporations
    long-term strategy; and
    (d)  consistently strive to achieve the
    Corporations financial and operating goals and objectives.
|                                          
|4.                                         |  | (a)        |  | Briefly describe what measures the board takes to orient new
    directors regarding the role of the board, its committees and
    its directors, and the nature and operation of the issuers
    business.                                                                  |                       |  | Yes |  |  | The Board has adopted a written New Director Orientation Policy
    designed to:
    (a)  provide each new director with a baseline of
    knowledge about the Corporation that will serve as a basis for
    informed decision- making;
    (b)  tailor the program for each new director, taking
    into account his or her unique mix of skills, experience,
    education, knowledge and needs; and
    (c)  deliver information over a period of time to
    minimize the likelihood of overload and maximize the lasting
    educational impact.
    The orientation program is tailored to the needs of each new
    director, and consists of a combination of written materials,
    one-on-one meetings with senior management, site visits and
    other briefings and training as appropriate.                                                                                                
|                                          



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|                                           |  |            |  |                                                                                                                                                                                                                                                                                                                              |                       |  |     |  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|------------------------------------------ |  | ---------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------- |  | --- |  |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                          
|                                           |  | PotashCorp |  |                                                                                                                                                                                                                                                                                                                              |                      
|Disclosure Requirement under Form 58-101F1 |  | Compliance |  |                                                                                                                                                                                                                                                                                                                              | Comments & Discussion
|                                          
|                                           |  | (b)        |  | Briefly describe what measures, if any, the board takes to
    provide continuing education for its directors. If the board
    does not provide continuing education, describe how the board
    ensures that its directors maintain the skill and knowledge
    necessary for them to meet their obligations as directors. |                       |  | Yes |  |  | The Board recognizes the importance of ongoing director
    education and the need for each director to take personal
    responsibility for this process. To facilitate ongoing
    education, the Corporation:
    (a)  maintains a directors intranet site to
    facilitate the exchange of views and published information;
    (b)  maintains a membership for each director in an
    organization dedicated to corporate governance and ongoing
    director education;
    (c)  each year encourages and funds the attendance of
    each director at one seminar or conference of interest and
    relevance and funds the attendance of each Committee Chair at
    one additional seminar or conference. In all cases, approval for
    attendance is obtained, in advance, from the Board Chair;
    (d)  encourages presentations by outside experts to
    the Board or Committees on matters of particular import or
    emerging significance; and
    (e)  at least annually, schedules a site visit in
    conjunction with a Board meeting.
|                                          
|5.                                         |  | (a)        |  | (i)  Disclose whether or not the board has adopted a
    written code for its directors, officers and employees. If the
    board has adopted a written code, disclose how a person or
    company may obtain a copy of the written code.                                                                                    |                       |  | Yes |  |  | The Board has adopted the PotashCorp Code of
    Conduct. The complete text of the PotashCorp Code of
    Conduct, as well as other governance related documents,
    can be found at www.potashcorp.com and are available in print to
    any shareholder who requests them.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|                                          
|                                           |  |            |  | (ii) Describe how the board monitors compliance with its
    code, or if the board does not monitor compliance, explain
    whether and how the board ensures compliance with its code.                                                                                                                                      |                       |  | Yes |  |  | The Audit Committee reviews the process for communicating the
    PotashCorp Code of Conduct to the Corporations
    personnel, and for monitoring compliance therewith.
    The Board, through the Audit Committee, receives regular reports
    from management directly responsible for compliance-related
    matters (the General Counsel, Vice President Internal Audit and
    Senior Vice President Administration). In addition, annual
    compliance sign offs are sought from each employee. The Board,
    through the Audit Committee Chair, also receives reports of all
    financial or accounting issues raised through the
    Corporations anonymous toll-free hotline.                                                                                                                                                                                                                                                                                                                                                                 
|                                          
|                                           |  |            |  | (iii) If the board has adopted a written code, provide a
    cross-reference to any material change report filed since the
    beginning of the issuers most recently completed financial
    year that pertains to any conduct of a director or executive
    officer that constitutes a departure from the code.          |                       |  | Yes |  |  | The Corporation has not filed any material change reports since
    the beginning of the 2006 financial year that pertains to any
    conduct of a director or executive officer that constitutes a
    departure from the PotashCorp Code of Conduct.
    Pursuant to the PotashCorp Governance Principles, no
    waiver of the application of the PotashCorp Code of
    Conduct to directors or senior officers is permitted.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|                                          



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|                                           |  |            |  |                                                                                                                                                                                                                          |                       |  |     |  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|------------------------------------------ |  | ---------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------- |  | --- |  |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                          
|                                           |  | PotashCorp |  |                                                                                                                                                                                                                          |                      
|Disclosure Requirement under Form 58-101F1 |  | Compliance |  |                                                                                                                                                                                                                          | Comments & Discussion
|                                          
|                                           |  | (b)        |  | Describe any steps the board takes to ensure directors exercise
    independent judgment in considering transactions and agreements
    in respect of which a director or executive officer has a
    material interest. |                       |  | Yes |  |  | Pursuant to the PotashCorp Governance Principles,
    each director of the Corporation must possess and exhibit the
    highest degree of integrity, professionalism and values, and
    must never be in a conflict of interest with the Corporation. A
    director who has a conflict of interest regarding any particular
    matter under consideration should advise the Board, refrain from
    debate on the matter and abstain from any vote regarding it. The
    Board has also developed categorical independence standards to
    assist it in determining when individual directors are free from
    conflicts of interests and are exercising independent judgment
    in discharging their responsibilities. All directors and senior
    officers are bound by the PotashCorp Code of Conduct
    and no waiver of the application of that Code to directors or
    senior officers is permitted.
|                                          
|                                           |  | (c)        |  | Describe any other steps the board takes to encourage and
    promote a culture of ethical business conduct.                                                                                                             |                       |  | Yes |  |  | The Corporations Statement of Core Values and Code
    of Conduct was redistributed to all employees in December
    2006 and is continually reinforced with on-line training
    programs. At the end of 2006, all directors and employees were
    asked to sign a written confirmation of their compliance with
    the Code of Conduct. The Board, through the Audit Committee,
    requires the management Compliance Committee to annually report
    on the status of the corporations ethics and compliance
    programs, including receipt of the Compliance Risk Assessment,
    Summary of Ethics and Compliance Training during the current
    year and plans for ethics and compliance training in the coming
    year.                                                                                                                                                                              
|                                          



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|                                           |  |            |  |                                                                                                                                                                                                                                                                                                          |                       |  |     |  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|------------------------------------------ |  | ---------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------- |  | --- |  |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                          
|                                           |  | PotashCorp |  |                                                                                                                                                                                                                                                                                                          |                      
|Disclosure Requirement under Form 58-101F1 |  | Compliance |  |                                                                                                                                                                                                                                                                                                          | Comments & Discussion
|                                          
|6.                                         |  | (a)        |  | Describe the process by which the board identifies new
    candidates for board nomination.                                                                                                                                                                                                              |                       |  | Yes |  |  | The Corporate Governance and Nominating Committee (the
    CG&N Committee) is responsible for recruiting
    and proposing to the full Board new nominees for directors. The
    CG&N Committee, in the discharge of its duties:
    (a)  in consultation with the Board and Chief
    Executive Officer and, on an ongoing basis, identifies the mix
    of expertise and qualities required for the Board;
    (b)  assesses the attributes new directors should have
    for the appropriate mix to be maintained;
    (c)  in consultation with the Board and Chief
    Executive Officer and, on an ongoing basis, maintains a database
    of potential candidates;
    (d)  has implemented a procedure to identify, with as
    much advance notice as practicable, impending Board vacancies,
    so as to allow sufficient time for recruitment and for
    introduction of proposed nominees to the existing Board;
    (e)  develops a short-list of candidates
    and arranges for each candidate to meet with the CG&N
    Committee, the Board Chair and the Chief Executive Officer;
    (f)  recommends to the Board as a whole proposed
    nominee(s) and arranges for their introduction to as many Board
    members as practicable;
    (g)  ensures that prospective candidates are informed
    of the degree of energy and commitment the Corporation expects
    of its directors; and
    (h)  encourages diversity in the composition of the
    Board.
|                                          
|                                           |  | (b)        |  | Disclose whether or not the board has a nominating committee
    composed entirely of independent directors. If the board does
    not have a nominating committee composed entirely of independent
    directors, describe what steps the board takes to encourage an
    objective nomination process. |                       |  | Yes |  |  | The Corporation has a standing CG&N Committee.
    Each of the five directors who comprise the CG&N Committee
    is independent. Please refer to Director Independence and
    Other Relationships and the Report on Corporate
    Governance and Nominating Matters sections of this
    Management Proxy Circular for additional information.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                          
|                                           |  | (c)        |  | If the board has a nominating committee, describe the
    responsibilities, powers and operation of the nominating
    committee.                                                                                                                                                                        |                       |  | Yes |  |  | The responsibilities, powers and operation of the CG&N
    Committee are set out in its charter, which is available on the
    Corporations website at www.potashcorp.com. Pursuant to
    the CG&N Committee Charter, the purpose of the CG&N
    Committee is to identify the individuals qualified to become
    members of the Board, to recommend to the Board nominees for
    election to the Board at each annual meeting of shareholders or
    to fill vacancies on the Board and to address related matters.
    Please refer to the Report on Corporate Governance and
    Nominating Matters section of this Management Proxy
    Circular for additional information.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|                                          



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|                                           |  |            |  |                                                                                                                                                                                                                                                                                                                                  |                       |  |     |  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|------------------------------------------ |  | ---------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------- |  | --- |  |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                          
|                                           |  | PotashCorp |  |                                                                                                                                                                                                                                                                                                                                  |                      
|Disclosure Requirement under Form 58-101F1 |  | Compliance |  |                                                                                                                                                                                                                                                                                                                                  | Comments & Discussion
|                                          
|7.                                         |  | (a)        |  | Describe the process by which the board determines the
    compensation for your companys directors and officers.                                                                                                                                                                                                               |                       |  | Yes |  |  | Director and officer compensation is established on the advice
    of independent consultants, with a view to establishing target
    compensation at the median of the applicable comparator group.
    Please refer to the Compensation Discussion and
    Analysis and the Director Compensation
    sections of this Management Proxy Circular, as well as the
    response to 7(d) below for additional information.                                                                                                                                                                                                                                                                      
|                                          
|                                           |  | (b)        |  | Disclose whether or not the board has a compensation committee
    composed entirely of independent directors. If the board does
    not have a compensation committee composed entirely of
    independent directors, describe what steps the board takes to
    ensure an objective process for determining such compensation. |                       |  | Yes |  |  | The Corporation has a standing Compensation Committee. Each of
    the four directors who comprise the Compensation Committee is
    independent. Please refer to the Director Independence and
    Other Relationships and Compensation Discussion and
    Analysis sections of this Management Proxy Circular for
    additional information.                                                                                                                                                                                                                                                                                                                                                
|                                          
|                                           |  | (c)        |  | If the board has a compensation committee, describe the
    responsibilities, powers and operation of the compensation
    committee.                                                                                                                                                                                            |                       |  | Yes |  |  | The responsibilities, powers and operation of the Compensation
    Committee are set out in its charter, which is available on the
    Corporations website at www.potashcorp.com. Pursuant to
    the Compensation Committee Charter, the purpose of the
    Compensation Committee is to carry out the Boards
    responsibility for: (i) executive compensation (including
    philosophy and programs); (ii) management development and
    succession; (iii) Board compensation; and (iv) broadly
    applicable compensation and benefit programs. Please refer to
    the Compensation Discussion and Analysis section of
    this Management Proxy Circular for additional information.
|                                          



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|                                           |  |                                                                                                                                                                 |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                       |  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|------------------------------------------ |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------- |  | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                          
|                                           |  | PotashCorp                                                                                                                                                      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                      
|Disclosure Requirement under Form 58-101F1 |  | Compliance                                                                                                                                                      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Comments & Discussion
|                                          
|                                           |  | (d)                                                                                                                                                             |  | If a compensation consultant or advisor has, at any time since
    the beginning of the issuers most recently completed
    financial year, been retained to assist in determining
    compensation for any of the issuers directors and
    officers, disclose the identity of the consultant or advisor and
    briefly summarize the mandate for which they have been retained.
    If the consultant or advisor has been retained to perform any
    other work for the issuer, state that fact and briefly describe
    the nature of the work. |                       |  | Yes |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | In 2005, the Compensation Committee of the Board of Directors
    engaged Watson Wyatt as executive compensation consultants.
    Watson Wyatt provides input to the Committee on the philosophy
    and competitiveness of the design and award values for certain
    executive and director compensation programs. In addition,
    Watson Wyatt assists in the evaluation of compensation
    arrangements associated with certain strategic opportunities. In
    accordance with the Committees adherence to the best
    practice of retaining independent executive compensation
    consulting, Watson Wyatt does not perform any other consulting
    services for the Corporation. Any work other than executive
    compensation consulting services performed for the Corporation
    by Watson Wyatt must be approved in advance by the Chair of the
    Committee. Additionally, Hewitt Associates has historically
    provided executive compensation and human resources consulting
    services for the Corporation, including actuarial consulting,
    employee benefits design, finance consulting and recordkeeping
    services. The Committee will continue to use Hewitt
    Associates proprietary Total Compensation Measurement data
    services to provide specific compensation data for selected
    executive and director positions. This information has been and
    will continue to be supplemented with other compensation survey
    data available through Watson Wyatt.
|                                          
|8.                                         |  | If the board has standing committees other than the audit,
    compensation and nominating committees, identify the committees
    and describe their function. |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Yes                   |  |     | In addition to the Audit Committee, Compensation Committee and
    CG&N Committee, the Board also has an Executive Committee
    and a Safety, Health and Environment Committee. The Executive
    Committee is delegated all powers of the Board in respect of the
    business and affairs of the Corporation during the intervals
    between meetings of the Board, except only such powers specified
    in subsection 115(3) of the Canada Business Corporations Actin all cases in which specific directions shall not have
    been given by the Board. The Executive Committee rarely
    exercises such powers and did not meet in 2006. The Safety,
    Health and Environment Committee assists the Board review and
    recommend for approval policies, management systems and
    performance with respect to safety, health and environment
    matters affecting the Corporation.
|                                          



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|                                           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |  |                       |  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|------------------------------------------ |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  | --------------------- |  |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                          
|                                           |  | PotashCorp                                                                                                                                                                                                                                                                                                                                                                                                                               |  |  |                      
|Disclosure Requirement under Form 58-101F1 |  | Compliance                                                                                                                                                                                                                                                                                                                                                                                                                               |  |  | Comments & Discussion
|                                          
|9.                                         |  | Disclose whether or not the board, its committees
    and individual directors are regularly assessed with respect to
    their effectiveness and contribution. If assessments are
    regularly conducted, describe the process used for the
    assessments. If assessments are not regularly conducted,
    describe how the board satisfies itself that it, its committees,
    and individual directors are performing effectively. |  |  | Yes                   |  |  | Pursuant to the PotashCorp Governance Principles,
    which is available on the Corporations website at
    www.potashcorp.com, the Board has adopted the following
    five-part effectiveness evaluation program:1.   Annual Board Assessment by all Members
    of the BoardEach year Board members complete a detailed questionnaire
    which a) provides for quantitative ratings in key areas and b)
    seeks subjective comment in each of those areas. The
    questionnaire is administered by the Corporate Secretary.
    Responses are reviewed by the Corporate Secretary and the Chair
    of the CG&N Committee. A summary report is then prepared and
    provided to the Board Chair, the CG&N Committee and the
    Chief Executive Officer, and then reported to the full Board by
    the CG&N Committee Chair. Attribution of comments to
    individual directors in the summary report is made only if
    authorized by that director. In assessing the responses to the
    questionnaire, the focus is on continuous improvement. Matters
    requiring follow-up are identified, action plans are developed
    and there is ongoing monitoring by the CG&N Committee to
    ensure satisfactory results. As part of the annual Board
    assessment, the Board reviews and considers any proposed changes
    to the Board of Directors Charter.
|                                           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |  |                       |  |  | 2.   Annual Assessment of each Committee* by
    Members of that CommitteeEach year members of each Committee* complete a detailed
    questionnaire designed to allow Committee members to evaluate
    how well each Committee is operating and to make suggestions for
    improvement. The questionnaire is administered by the Corporate
    Secretary who receives responses and reviews them with the
    appropriate Committee Chair. A summary report is then prepared
    and provided to the Board Chair, the Chair of the CG&N
    Committee, the appropriate Committee and the Chief Executive
    Officer and then reported to the full Board by the appropriate
    Committee Chair. As part of the annual Committee assessment, the
    Board reviews and considers any proposed changes to the
    Committee Charters.
    As with the Board assessment, the focus is on continuous
    improvement. Chairs of each Committee are expected to follow up
    on matters raised in the Committee assessments and take such
    action as appropriate.                                                                                                                                                                                                                                                                                                             






|                                                                                                                                                                                                     |  |  |  |  |  |  |  | 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  |  |  |  |  |  | 
|*   Each of the Audit, Compensation, CG&N,
    and Safety, Health and Environment Committees participate in
    this process. Because of its limited activity, the Executive
    Committee does not.





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|                                           |  |            |  |  |                       |  |  |  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|------------------------------------------ |  | ---------- |  |  | --------------------- |  |  |  |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                          
|                                           |  | PotashCorp |  |  |                      
|Disclosure Requirement under Form 58-101F1 |  | Compliance |  |  | Comments & Discussion
|                                          
|                                           |  |            |  |  |                       |  |  |  |  | 3.   Annual Assessment of the Board Chair by
    Members of the BoardEach year members of the Board are asked to assess and
    comment on the discharge, by the Board Chair, of his duties.
    Individual responses are received by the Chair of the CG&N
    Committee. A summary report is then provided to the Board Chair
    and the full Board, with no attribution of comments to
    individual directors without their consent. As part of the
    annual Board Chair assessment, the Board reviews and considers
    any proposed changes to the Board and Executive Committee Chair
    position description.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                           |  |            |  |  |                       |  |  |  |  | 4.   Annual Assessment of Each Committee Chair
    by Members of each CommitteeEach year, members of each Committee are asked to assess and
    comment on the discharge, by each Committee Chair, of his or her
    duties. Responses are received by the Corporate Secretary and
    the Committee Chair under review. A summary report is then
    provided to the appropriate Committee and to the full Board,
    with no attribution of comments to individual directors without
    their consent. As part of the annual Committee Chair assessment,
    the Board reviews and considers any proposed changes to the
    Committee Chair position descriptions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|                                           |  |            |  |  |                       |  |  |  |  | 5.   Annual Assessment of Individual
    DirectorsEach year during the period from May to September, the Board
    Chair (and, as in the opinion of the Board Chair is desirable,
    the Chair of the CG&N Committee) formally meets with each
    director individually to engage in full and frank two-way
    discussion of any and all issues that either wish to raise, with
    a focus on maximizing the contribution of each director to the
    Board and Committees. In completing the review, the Board Chair
    will employ a checklist, discuss both short-term and long-term
    goals, and establish action items to allow individual directors
    to enhance both his or her personal contributions and overall
    Board effectiveness. The Board Chair will share peer feedback
    with each director as appropriate and will review progress and
    action taken. Each director, during such formal review, shall be
    prepared to discuss with the Board Chair how the directors, both
    individually and collectively, could operate more effectively.
    The Board Chair will discuss the results of the individual
    evaluations with the Chair of the CG&N Committee and report
    summary findings to both that Committee and to the full Board at
    the November meeting.
|                                          



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Appendix B


Resolution of Shareholders  2007 Performance
Option Plan









|   |                                                                                                                                                                                                                                                                                                 
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|1. | the 2007 Performance Option Plan is hereby adopted and approved
    by the shareholders of the Corporation;                                                                                                                                                                                     
|  
|2. | any officer of the Corporation be and is hereby authorized and
    directed for and on behalf of the Corporation to do such things
    and to take such actions as may be necessary or desirable to
    carry out the intent of the foregoing resolution and the matters
    authorized thereby.









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Appendix C


2007 Performance Option Plan


1.   PURPOSE OF PLAN




| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Potash Corporation of Saskatchewan Inc. (the
    Corporation) by resolution of its Board of Directors
    (the Board) has established, subject to shareholder
    approval at the Corporations 2007 Annual and Special
    Meeting of shareholders, this Potash Corporation of Saskatchewan
    Inc. 2007 Performance Option Plan (the Plan) to
    support the Corporations compensation philosophy of
    providing selected employees and officers with an opportunity
    to: promote the growth and profitability of the Corporation;
    align their interests with shareholders; and earn compensation
    commensurate with corporate performance. The Corporation
    believes this Plan will directly assist in supporting the
    Corporations compensation philosophy by providing
    participants with the opportunity through stock options, which
    will vest, if at all, based on corporate performance over a
    three-year period, to acquire Common Shares of the Corporation
    (Common Shares).

2.   DURATION OF THIS PLAN




| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | This Plan was adopted by the Board on February 20, 2007 to
    be effective as of January 1, 2007 (the Effective
    Date), subject to shareholder approval at the
    Corporations 2007 Annual and Special Meeting of
    shareholders, and shall remain in effect, unless sooner
    terminated as provided herein, until one (1) year from the
    Effective Date, at which time it will terminate. After this Plan
    is terminated, no stock options may be granted but stock options
    previously granted shall remain outstanding in accordance with
    their applicable terms and conditions and this Plans terms
    and conditions.

3.   ADMINISTRATION




| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | This Plan shall be administered by the Compensation Committee of
    the Board or any other committee designated by the Board to
    administer this Plan (the Committee). The Committee
    shall be responsible for administering this Plan, subject to
    this Section 3 and the other provisions of this Plan. The
    Committee may employ attorneys, consultants, accountants,
    agents, and other individuals, any of whom may be an employee,
    and the Committee, the Corporation, and its officers and
    directors shall be entitled to rely upon the advice, opinions,
    or valuations of any such individuals. All actions taken and all
    interpretations and determinations made by the Committee shall
    be made in the Committees sole discretion and shall be
    final and binding upon the participants, the Corporation, and
    all other interested individuals. To the extent applicable, the
    Plan shall be administered with respect to optionees subject to
    the laws of the U.S. so as to avoid the application of penalties
    pursuant to Section 409A of the Internal Revenue
    Code.

4.   AUTHORITY OF THE COMMITTEE




| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The Committee shall have full and exclusive discretionary power
    to interpret the terms and the intent of this Plan and any Stock
    Option Award Agreement or other agreement or document ancillary
    to or in connection with this Plan, to determine eligibility for
    stock options and to adopt such rules, regulations, forms,
    instruments, and guidelines for administering this Plan as the
    Committee may deem necessary or proper. Such authority shall
    include adopting modifications and amendments to any Stock
    Option Award Agreement that are necessary to comply with the
    laws of the countries and other jurisdictions in which the
    Corporation and/or its subsidiaries operate.

5.   SHARES SUBJECT TO STOCK OPTIONS




| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The aggregate number of Common Shares issuable after
    February 20, 2007 pursuant to stock options under this Plan
    may not exceed 1,000,000 Common Shares. The aggregate number of
    Common Shares in respect of which stock options have been
    granted to any one person pursuant to this Plan and which remain
    outstanding shall not at any time exceed 250,000. The authorized
    limits under this Plan shall be subject to adjustment under
    Sections 12 and 13.                                                     
|
| |  | If any stock option granted under this Plan, or any portion
    thereof, expires or terminates for any reason without having
    been exercised in full, the Common Shares with respect to which
    such option has not been exercised shall again be available for
    further stock options under this Plan; provided, however, that
    any stock option that is granted under this Plan that does not
    vest as a result of a failure to satisfy the Performance
    Measures, shall not be again available for grant under this Plan.

6.   GRANT OF STOCK OPTIONS




| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | From time to time the Board may designate individual officers
    and employees of the Corporation and its subsidiaries eligible
    to be granted options to purchase Common Shares and the number
    of Common Shares which each such person will be granted a stock
    option to purchase; provided that the aggregate number of Common
    Shares subject to such stock options may not exceed the number
    provided for in Section 5 of this Plan. Non-employee
    directors and other non-employee contractors and third party
    vendors are not eligible to participate in this Plan.









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##### Table of Contents



7.   OPTION PRICE




| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The option price for any option granted under this Plan to any
    optionee shall be fixed by the Board when the option is granted
    and shall be not less than the fair market value of the Common
    Shares at such time which, for optionees resident in the United
    States and any other optionees designated by the Board, shall be
    deemed to be the closing price per Common Share on the New York
    Stock Exchange on the last trading day immediately preceding the
    day the option is granted and, for all other optionees, shall be
    deemed to be the closing price per Common Share on the Toronto
    Stock Exchange on the last trading day immediately preceding the
    day the option is granted; provided that, in either case, if the
    Common Shares did not trade on such exchange on such day the
    option price shall be the closing price per share on such
    exchange on the last day on which the Common Shares traded on
    such exchange prior to the day the option is granted.

8.   VESTING OF STOCK OPTIONS




| |  |                                                                                                                                                                                                                                                                                                                           
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Subject to achievement of Performance Measures as certified and
    approved by the Audit Committee of the Board, stock options
    granted under this Plan will vest no later than thirty
    (30) days after the audited financial statements for the
    applicable Performance Period have been approved by the Board.

9.   PERFORMANCE MEASURES FOR VESTING OF STOCK
OPTIONS




| |     |                                                                                                                                                                                                                                                                                                                                                                     
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | The Performance Measures which will be used to determine the
    degree to which stock options will vest over the three-year
    period beginning the first day of the fiscal year in which they
    are granted (the Performance Period) shall be cash
    flow return on investment (CFROI) and weighted
    average cost of debt and equity capital (WACC).



| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i)  | CFROI is the ratio of after tax operating cash flow to average
    gross investment over the fiscal year, calculated as A divided
    by B, where (1) A equals operating income plus nonrecurring
    or unusual items plus accrued incentive awards plus depreciation
    and amortization less cash taxes, and (2) B equals the
    average of total assets plus accumulated depreciation plus
    accumulated amortization less cash and cash equivalents less non
    interest bearing current liabilities.        
|
| | (ii) | WACC is the weighted average cost of debt and equity capital,
    calculated as [A times the product of B divided by C] plus
    [D times the product of E divided by C], where
    (1) A equals the after-tax market yield cost of debt,
    (2) B equals the market value of debt less cash and
    cash equivalents (3) C equals the market value of debt less
    cash and cash equivalents, plus the market value of equity,
    (4) D equals the cost of equity, and (5) E equals the
    market value of equity.



| |     |                                                                                                                                                                                                                                                                                                                                                                                          
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | In determining the number of stock options that will actually
    vest based on the degree to which the Performance Measures have
    been attained during the applicable Performance Period, the
    following chart shall be utilized which shows the three year
    average excess of CFROI being greater than WACC and the
    respective portion of the stock option that will vest:

|                         |       |                   |  |  |      | 
|------------------------ | ----- | ----------------- |  |  | ---- | 
|Performance Measure      |       | Vesting Scale    
|                         |       |                  
|3 year average excess of |       | % of Stock Option
|CFROI > WACC             |       | Grant Vesting    
|                         |       |                  
|                         | <0%   |                   |  |  | 0%   | 
|                         | 0.20% |                   |  |  | 30%  | 
|                         | 1.20% |                   |  |  | 70%  | 
|                         | 2.20% |                   |  |  | 90%  | 
|                         | 2.50% |                   |  |  | 100% | 



| |     |                                                                                                                                   
| | --- | ----------------------------------------------------------------------------------------------------------------------------------
| | (c) | In assessing the portion of the stock options that shall vest in
    accordance with the above chart, the following shall be done:



| |       |                                                                                                                                                                                               
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i)   | Each year, the CFROI and WACC will be calculated in accordance
    with the definitions herein, based on the audited financial
    statements and approved by the Audit Committee.            
|
| | (ii)  | In each Performance Period, the average of the three fiscal
    years shall be calculated by taking the simple average of the
    individual years results.                                  
|
| | (iii) | The resulting three-year average will then be applied, using the
    scale above to determine the number of stock options, if any,
    that will vest as of the end of the Performance Period.
|
| | (iv)  | For results falling between the reference points in the chart
    above, the level of vesting shall be mathematically interpolated
    between the reference points.                          









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##### Table of Contents



10. TERMS OF STOCK OPTIONS




| |  |                                                                                                                                                                                                                                                                                                                                                                                                
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The period during which a stock option is exercisable may not
    exceed 10 years from the date the stock option is granted, and
    the Stock Option Award Agreement may contain provisions limiting
    the number of Common Shares with respect to which the stock
    option may be exercised in any one year. Each stock option
    agreement shall contain provisions to the effect that:



| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | if the employment of an optionee as an officer or employee of
    the Corporation or a subsidiary terminates, by reason of his or
    her death, or if an optionee who is a retiree pursuant to
    Section 10(b) dies, the legal personal representatives of
    the optionee will be entitled to exercise any unexercised vested
    options, including such stock options that may vest after the
    date of death, during the period ending at the end of the
    twelfth calendar month following the calendar month in which the
    optionee dies, failing which exercise the stock options
    terminate;                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|
| | (b) | subject to the terms of Section 10(a) above, if the
    employment of an optionee as an officer or employee of the
    Corporation or a subsidiary terminates, by reason of retirement
    in accordance with the then prevailing retirement policy of the
    Corporation or subsidiary, the optionee will be entitled to
    exercise any unexercised vested stock options, including such
    stock options that may vest after the date of retirement, during
    the period ending at the end of the 36th month following
    the calendar month in which the optionee retires, failing which
    exercise the stock options terminate;                                                                                                                                                                                                                                                                                                                                                                                                                                        
|
| | (c) | if the employment of an optionee as an officer or employee of
    the Corporation or a subsidiary terminates, for any reason other
    than as provided in Sections 10(a) or (b), the optionee
    will be entitled to exercise any unexercised vested stock
    options, to the extent exercisable at the date of such event,
    during the period ending at the end of the calendar month
    immediately following the calendar month in which the event
    occurs, failing which exercise the stock options terminate;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|
| | (d) | for greater certainty and for these purposes, an optionees
    employment with the Corporation or a subsidiary shall be
    considered to have terminated effective on the last day of the
    optionees actual and active employment with the
    Corporation or subsidiary whether such day is selected by
    agreement with the optionee or unilaterally by the Corporation
    or subsidiary and whether with or without advance notice to the
    optionee. For the avoidance of doubt, no period of notice that
    is given or ought to have been given under applicable law in
    respect of such termination of employment will be utilized in
    determining an optionees entitlement under the Plan. The
    employment of an optionee with the Corporation shall be deemed
    to have terminated for all purposes of the Plan if such person
    is employed by or provides services to a person that is a
    subsidiary of the Corporation and such person ceases to be a
    subsidiary of the Corporation, unless the Committee determines
    otherwise; and
|
| | (e) | each stock option is personal to the optionee and is not
    assignable, except (i) as provided in Section 10(a),
    and (ii) at the election of the Board, a stock option may
    be assignable to the spouse, children and grandchildren of the
    original optionee and to a trust, partnership or limited
    liability company, the entire beneficial interest of which is
    held by one or more of the foregoing.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         



| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Nothing contained in Sections 10(a), (b) or
    (c) shall extend the period during which a stock option may
    be exercised beyond its stipulated expiration date or the date
    on which it is otherwise terminated in accordance with the
    provisions of this Plan.                                                                                                                                                                                                                                                                                                                                                  
|
| |  | If a stock option is assigned pursuant to
    Section 10(e)(ii), the references in Sections 10(a),
    (b) and (c) to the termination of employment or death
    of an optionee shall not relate to the assignee of a stock
    option but shall relate to the original optionee. In the event
    of such assignment, legal personal representatives of the
    original optionee shall not be entitled to exercise the assigned
    stock option, but the assignee of the stock option or the legal
    personal representatives of the assignee may exercise the stock
    option during the applicable specified period.

11. EXERCISE OF STOCK OPTIONS




| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Subject to the provisions of this Plan, a vested stock option
    may be exercised from time to time by delivering to the
    Corporation at its registered office a written notice of
    exercise specifying the number of Common Shares with respect to
    which the stock option is being exercised and accompanied by
    payment in cash or certified cheque in full of the purchase
    price of the Common Shares then being purchased.

12. ADJUSTMENTS




| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Appropriate adjustments to the authorized limits set forth in
    Section 5, in the number, class and/or type of Common
    Shares optioned and in the option price per share, both as to
    stock options granted or to be granted, shall be made by the
    Board to give effect to adjustments in the number of Common
    Shares which result from subdivisions, consolidations or
    reclassifications of the Common Shares, the payment of share
    dividends by the Corporation, the reconstruction, reorganization
    or recapitalization of the Corporation or other relevant changes
    in the capital of the Corporation.









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##### Table of Contents



13. MERGERS




| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | If the Corporation proposes to amalgamate or merge with another
    body corporate, the Corporation shall give written notice
    thereof to optionees in sufficient time to enable them to
    exercise outstanding vested stock options, to the extent they
    are otherwise exercisable by their terms, prior to the effective
    date of such amalgamation or merger if they so elect. The
    Corporation shall use its best efforts to provide for the
    reservation and issuance by the amalgamated or continuing
    corporation of an appropriate number of Common Shares, with
    appropriate adjustments, so as to give effect to the continuance
    of the stock options to the extent reasonably practicable. In
    the event that the Board determines in good faith that such
    continuance is not in the circumstances practicable, it may upon
    30 days notice to optionees terminate the stock
    options.

14. CHANGE OF CONTROL




| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | If a change of control of the Corporation occurs,
    each then outstanding stock option granted under this Plan may
    be exercised, in whole or in part, even if such option is not
    otherwise exercisable by its terms. For purposes of this Plan, a
    change of control of the Corporation shall be deemed to have
    occurred if any of the following occur, unless the Board adopts
    a plan after the Effective Date of this Plan that has a
    different definition (in which case such definition shall be
    applied), or the Committee decides to modify or amend the
    following definition through an amendment of this Plan:



| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | within any period of two consecutive years, individuals who at
    the beginning of such period constituted the Board and any new
    directors whose appointment by the Board or nomination for
    election by shareholders of the Corporation was approved by a
    vote of at least a majority of the directors then still in
    office who either were directors at the beginning of the period
    or whose appointment or nomination for election was previously
    so approved, cease for any reason to constitute a majority of
    the Board;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| | (b) | there occurs an amalgamation, merger, consolidation, wind-up,
    reorganization or restructuring of the Corporation with or into
    any other entity, or a similar event or series of such events,
    other than any such event or series of events which results in
    securities of the surviving or consolidated corporation
    representing 50% or more of the combined voting power of the
    surviving or consolidated corporations then outstanding
    securities entitled to vote in the election of directors of the
    surviving or consolidated corporation being beneficially owned,
    directly or indirectly, by the persons who were the holders of
    the Corporations outstanding securities entitled to vote
    in the election of directors of the Corporation prior to such
    event or series of events in substantially the same proportions
    as their ownership immediately prior to such event of the
    Corporations then outstanding securities entitled to vote
    in the election of directors of the Corporation;
|
| | (c) | 50% or more of the fixed assets (based on book value as shown on
    the most recent available audited annual or unaudited quarterly
    consolidated financial statements) of the Corporation are sold
    or otherwise disposed of (by liquidation, dissolution, dividend
    or otherwise) in one transaction or series of transactions
    within any twelve month period;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| | (d) | any party, including persons acting jointly or in concert with
    that party, becomes (through a take-over bid or otherwise) the
    beneficial owner, directly or indirectly, of securities of the
    Corporation representing 20% or more of the combined voting
    power of the Corporations then outstanding securities
    entitled to vote in the election of directors of the
    Corporation, unless in any particular situation the Board
    determines in advance of such event that such event shall not
    constitute a change of control; or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| | (e) | the Board approves and/or recommends that shareholders accept,
    approve or adopt any transaction that would constitute a change
    of control under clause (b), (c) or (d) above and
    determines that the change of control resulting from such
    transaction will be deemed to have occurred as of a specified
    date earlier than the date under (b), (c) or (d), as
    applicable.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

15. AMENDMENT OR DISCONTINUANCE OF THIS PLAN




| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The Board may amend or discontinue the Plan at any time, without
    obtaining the approval of shareholders of the Corporation unless
    required by the relevant rules of the Toronto Stock Exchange,
    provided that, subject to Sections 12, 13,
    and 14, no such amendment may increase the aggregate
    maximum number of Common Shares that may be subject to stock
    options under this Plan, change the manner of determining the
    minimum option price, extend the option period under any option
    beyond 10 years, expand the assignment provisions of the
    Plan, permit non-employee directors to participate in the Plan
    or, without the consent of the holder of the option, alter or
    impair any option previously granted to an optionee under this
    Plan; and, provided further, for greater certainty, that,
    without the prior approval of the Corporations
    shareholders, stock options issued under this Plan shall not be
    repriced, replaced, or regranted through cancellation, or by
    lowering the option price of a previously granted stock option.
    Pre-clearance of the Toronto Stock Exchange of amendments to the
    Plan will be required to the extent provided under the relevant
    rules of the Toronto Stock Exchange.









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##### Table of Contents



16. EVIDENCE OF STOCK OPTIONS




| |  |                                                                                                                                                                                                                                                                                                                 
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Each stock option granted under this Plan shall be evidenced by
    a written stock option agreement between the Corporation and the
    optionee which shall give effect to the provisions of this Plan
    and include such other terms as the Committee shall determine
    (Stock Option Award Agreement).

17. WITHHOLDING




| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | To the extent that the Corporation is required to withhold
    federal, provincial, state, local or foreign taxes in connection
    with any payment made or benefit realized by an optionee or
    other person hereunder, and the amounts available to the
    Corporation for such withholding are insufficient, it shall be a
    condition to the receipt of such payment or the realization of
    such benefit that the optionee or such other person make
    arrangements satisfactory to the Corporation for payment of the
    balance of such taxes required to be withheld, which
    arrangements (in the discretion of the Board) may include
    relinquishment of a portion of such benefit. Participants shall
    also make such arrangements in connection with the disposition
    of Common Shares acquired upon the exercise of option rights
    with respect to this Plan.









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##### Table of Contents






Appendix D


Board of Directors Charter


1.   PURPOSE AND ROLE




| |                                                                                                                                                                                                                                                                                                                                                                                   
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Board of Directors (the Board) of Potash
    Corporation of Saskatchewan Inc. (the Corporation)
    is responsible for the stewardship and oversight of the
    management of the Corporation and its global business. It has
    the statutory authority and obligation to protect and enhance
    the assets of the Corporation in the interest of all
    shareholders.
|
| | Although Directors may be elected by the shareholders to bring
    special expertise or a point of view to Board deliberations,
    they are not chosen to represent a particular constituency. The
    best interests of the Corporation and its shareholders must be
    paramount at all times.                                                                                
|
| | The involvement and commitment of Directors is evidenced by
    regular Board and Committee meeting attendance, preparation, and
    active participation in setting goals and requiring performance
    in the interest of shareholders.                                                                                                                                         

2.   COMPOSITION




| |                                                                                                                                                                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Board shall be comprised of that number of Directors as
    shall be determined from time to time by the Board, in
    accordance with the Corporations articles, bylaws and
    applicable laws.

3.   MEETINGS




| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The time at which and place where the meetings of the Board
    shall be held and the calling of the meetings and procedure in
    all things at such meetings shall be determined by the Board in
    accordance with the Corporations articles, bylaws and
    applicable laws.                                                                                                                                                                                                                                                          
|
| | The agenda for each Board meeting shall be established by the
    CEO and the Board Chair, taking into account suggestions from
    other members of the Board. Meeting materials and information
    shall be distributed in advance of each meeting so as to provide
    adequate time for review. The Board has a policy of holding one
    meeting each year at one of the Corporations operating
    facilities. Site visits by the Board and meetings with senior
    management of the facility are incorporated into the itinerary.
|
| | Directors are expected to attend, in person or via tele- or
    video-conference, all meetings of the Board and the Committees
    upon which they serve, to come to such meetings fully prepared,
    and to remain in attendance for the duration of the meeting.
    Where a Directors absence from a meeting is unavoidable,
    the Director should, as soon as practicable after the meeting,
    contact the Board Chair, the CEO, or the Corporate Secretary for
    a briefing on the substantive elements of the meeting.        

4.   CHAIR




| |                                                                                                                                                                           
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Chair of the Board shall have the duties and
    responsibilities set forth in the Chair of the Board of
    Directors and Executive Committee Position Description.

5.   RESPONSIBILITIES




| |                                                                                                                                                                              
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Board operates by delegating certain of its responsibilities
    to management and reserving certain powers to itself. Its
    principal duties fall into six categories:



| |   |                                                                                                                                                                                                      
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | ▪ | Overseeing and approving on an ongoing basis the
    Corporations business strategy and strategic planning
    process;                                                                             
|
| | ▪ | Selection of the management;                                                                                                                                                                         
|
| | ▪ | Setting goals and standards for management, monitoring their
    performance and taking corrective action where necessary;                                                                           
|
| | ▪ | Approving policies, procedures and systems for implementing
    strategy, managing risk, and ensuring the integrity of the
    Corporations internal control and management information
    systems;
|
| | ▪ | Adopting a communications policy and reporting to shareholders
    on the performance of the business;                                                                                               
|
| | ▪ | Approval and completion of routine legal requirements.                                                                                                                                               

5.1 Strategy
Determination




| |     |                                                                                                                                                                                                                                                                                                                                                                     
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | The Board has the responsibility to participate, as a whole and
    through its Committees, in identifying the objectives and goals
    of the business as well as the associated risks, and the
    strategy by which it proposes to reach those goals and mitigate
    such risks. The Board shall adopt a strategic planning process
    and shall approve, on an









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| |     |                                                                                                                                          
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------
| |     | annual basis, a strategic plan which takes into account, among
    other things, the opportunities and risks of the business.            
|
| | (b) | The Board has the responsibility to ensure congruence between
    shareholder expectations, company plans and management
    performance.

5.2 Selection
of the Management




| |     |                                                                                                                                                                                                                                                                                   
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | The Board retains the responsibility for managing its own
    affairs, including planning its composition, selecting its
    Chair, nominating candidates for election to the Board,
    appointing Committees and determining Director compensation.                             
|
| | (b) | The Board has the responsibility for the appointment and
    replacement of a Chief Executive Officer (CEO) of
    the Corporation, for monitoring CEO performance, determining CEO
    compensation, and providing advice and counsel in the execution
    of the CEOs duties.
|
| | (c) | The Board has the responsibility for approving the appointment
    and remuneration of all corporate officers, acting upon the
    advice of the CEO.                                                                                                                             
|
| | (d) | The Board has the responsibility for, to the extent feasible,
    satisfying itself as to the integrity of the CEO and the other
    executive officers and that the CEO and other executive officers
    create a culture of integrity throughout the Corporation.               
|
| | (e) | The Board has the responsibility for ensuring that adequate
    provision has been made for management succession (including
    appointing, training and monitoring senior management).                                                                                          

5.3 Monitoring
and Acting




| |     |                                                                                                                                                                                                                      
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | The Board has the responsibility for monitoring the
    Corporations progress towards its goals, and revising and
    altering its direction in light of changing circumstances.                                    
|
| | (b) | The Board has the responsibility for taking action when
    performance falls short of its goals or when other special
    circumstances (for example mergers and acquisitions or changes
    in control) warrant it.

5.4 Policies
and Procedures




| |     |                                                                                                                                                                                                                                                  
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | The Board has the responsibility for developing the
    Corporations approach to corporate governance, including
    developing a set of corporate governance principles and
    guidelines that are specifically applicable to the Corporation.
|
| | (b) | The Board has the responsibility for approving and monitoring
    compliance with all significant policies, procedures and
    internal control and management systems by which the Corporation
    is operated.                                 
|
| | (c) | The Board has responsibility for ensuring that the Corporation
    operates at all times within applicable laws and regulations,
    and to high ethical and moral standards.                                                                    

5.5 Reporting
to Shareholders




| |     |                                                                                                                                                                                                
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | The Board has the responsibility for adopting a communications
    policy for the Corporation, including adopting measures for
    receiving feedback from stakeholders.                       
|
| | (b) | The Board has the responsibility for ensuring that the financial
    performance of the Corporation is reported to shareholders on a
    timely, regular and non-selective basis.              
|
| | (c) | The Board has the responsibility for ensuring that the financial
    results are reported fairly, and in accordance with generally
    accepted accounting principles.                         
|
| | (d) | The Board has the responsibility for timely and non-selective
    reporting of any other developments that have a significant and
    material impact on the value of the shareholders assets.
|
| | (e) | The Board has the responsibility for reporting annually to
    shareholders on its stewardship for the preceding year.                                                                         
|
| | (f) | The Board has the responsibility for approving any payment of
    dividends to shareholders.                                                                                                   

5.6 Legal
Requirements




| |     |                                                                                                                                                   
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | The Board is responsible for ensuring that legal requirements,
    documents and records have been properly prepared, approved and
    maintained.









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##### Table of Contents



5.7 Other




| |     |                                                                                                                                                                                                                                                                                                                          
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | On an annual basis, this Board Charter shall be reviewed and
    assessed, and any proposed changes shall be submitted to the
    Board for consideration.                                                                                                                                                               
|
| | (b) | Any security holder may contact the Board by email or by writing
    to the Board c/o the Corporate Secretary. Matters relating to
    the Corporations accounting, internal accounting controls
    or auditing matters will be referred to the Audit Committee.
    Other matters will be referred to the Board Chair.









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##### Table of Contents





|              |  |                                             |  |      
|------------- |  | ------------------------------------------- |  | -----
|(POTASH LOGO) |  | Potash Corporation
    of Saskatchewan Inc. |  | Proxy




For use at the Annual and Special Meeting


of Shareholders to be held on May 3, 2007.


THIS PROXY IS SOLICITED ON BEHALF OF MANAGEMENT OF THE
CORPORATION.






| | 
| | 
| | 





| |                                                           
| | ----------------------------------------------------------
| | Thursday, the
    3rd day
    of May, 2007 (the Meeting)
| | 10:30 a.m. (local time)                                   
| | Delta Bessborough                                         
| | 601 Spadina Crescent East                                 
| | Saskatoon, Saskatchewan, Canada                           





|   |                                                                                                                                                                                                                                                                                                                             
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|1. | A shareholder has the right to appoint a person who need not be
    a shareholder, to represent him and to attend and act on his
    behalf at the Meeting, other than the nominees designated above,
    and may exercise such right by inserting the name of his nominee
    in the space provided above for that purpose.









|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2. | The Shares represented by this proxy will be voted in accordance
    with any choice specified in this proxy. If no specification
    is made, the persons named above will vote such Shares FOR the
    election of the directors named in this proxy, FOR the
    appointment of Deloitte & Touche LLP as auditors of the
    Corporation and FOR the resolution (attached as Appendix B
    to the accompanying Management Proxy Circular) approving the
    adoption of a new performance option plan, the full text of
    which is attached as Appendix C to the accompanying
    Management Proxy Circular. This proxy confers authority to vote
    in the proxyholders discretion with respect to amendments
    to matters identified in the accompanying Notice of Meeting and
    with respect to other matters that may properly come before the
    Meeting.
|  
|3. | If this proxy is not dated, it shall be deemed to be dated on
    the date on which this proxy was mailed by the Corporation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|  
|4. | Reference is made to the accompanying Management Proxy Circular
    of the Corporation for further information regarding the
    completion and use of this proxy and other information
    pertaining to the Meeting.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     



|   |  |                                                                                  |  |     |  |          |  |                           |  |     |  |         
|-- |  | -------------------------------------------------------------------------------- |  | --- |  | -------- |  | ------------------------- |  | --- |  | --------
|1. |  | Voted FOR, or WITHHELD FROM VOTING, the nominees for directors
    listed below.
|   |  |                                                                                  |  | For |  | Withhold |  |                           |  | For |  | Withhold
|   |  | (01) F. J. Blesi                                                                 |  |     |  |          |  | (07) K. G. Martell        |  |     |  |         
|   |  | (02) W. J. Doyle                                                                 |  |     |  |          |  | (08) J. J. McCaig         |  |     |  |         
|   |  | (03) J. W. Estey                                                                 |  |     |  |          |  | (09) M. Mogford           |  |     |  |         
|   |  | (04) W. Fetzer III                                                               |  |     |  |          |  | (10) P. J. Schoenhals     |  |     |  |         
|   |  | (05) D. J. Howe                                                                  |  |     |  |          |  | (11) E. R. Stromberg      |  |     |  |         
|   |  | (06) A. D. Laberge                                                               |  |     |  |          |  | (12) E. Viyella de Paliza |  |     |  |         

|   |  |                                                                                                                                                                                                                                                                                     |  |     |  |         
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --- |  | --------
|   |  |                                                                                                                                                                                                                                                                                     |  | For |  | Withhold
|2. |  | Voted FOR, or WITHHELD FROM VOTING, on the appointment of
    Deloitte & Touche LLP as auditors of the Corporation.                                                                                                                                                                 |  |     |  |         
|   |  |                                                                                                                                                                                                                                                                                     |  | For |  | Against 
|3. |  | Voted FOR or AGAINST the resolution (attached as Appendix B
    to the accompanying Management Proxy Circular) approving the
    adoption of a new performance option plan, the full text of
    which is attached as Appendix C to the accompanying
    Management Proxy Circular. |  |     |  |         



|                    |  |                         
|------------------- |  | ------------------------
|Name of Shareholder |  | Signature of Shareholder