##### Table of Contents












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##### 










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  |   
|                                                        
|                                                         | Nominees for Election to the Board of
    Directors          |                                                                                   |   | 7  |   
|                                                        
|                                                         |                                                              | Director Independence and Other
    Relationships                                 |   |    | 10 | 
|                                                        
|                                                         |                                                              | Compensation/Attendance of
    Directors                                          |   |    | 12 | 
|                                                        
|                                                         | Appointment of Auditors                                      |                                                                                   |   | 15 |   
|                                                        
|                                                         | Adoption of 2006 Performance Option Plan                     |                                                                                   |   | 16 |   
|                                                        
|                                                         | Corporate Governance                                         |                                                                                   |   | 19 |   
|                                                        
|                                                         |                                                              | Report of the Audit Committee                                                     |   |    | 19 | 
|                                                        
|                                                         |                                                              | Report of the Compensation Committee and
    Compensation Discussion and Analysis |   |    | 20 | 
|                                                        
|                                                         |                                                              | Report on Corporate Governance and
    Nominating Matters                         |   |    | 26 | 
|                                                        
|                                                         | Ownership of Shares                                          |                                                                                   |   | 29 |   
|                                                        
|                                                         | Executive Compensation                                       |                                                                                   |   | 30 |   
|                                                        
|                                                         | Performance Graphs                                           |                                                                                   |   | 35 |   
|                                                        
|                                                         | Directors and Officers
    Liability Insurance             |                                                                                   |   | 36 |   
|                                                        
|                                                         | Voting Shares                                                |                                                                                   |   | 36 |   
|                                                        
|                                                         | Normal Course Issuer Bid                                     |                                                                                   |   | 36 |   
|                                                        
|                                                         | 2006 Shareholder Proposals                                   |                                                                                   |   | 36 |   
|                                                        
|                                                         | Additional Information                                       |                                                                                   |   | 36 |   
|                                                        
|                                                         | Directors Approval                                          |                                                                                   |   | 36 |   
|                                                        
|                                                         | Appendix A  Statement of
    Corporate Governance Practices |                                                                                   |   | 37 |   
|                                                        
|                                                         | Appendix B  Resolution of
    Shareholders                  |                                                                                   |   | 47 |   
|                                                        
|                                                         | Appendix C  2006
    Performance Option Plan                |                                                                                   |   | 48 |   
|                                                        
|                                                         | Appendix D  Board of
    Directors Charter                  |                                                                                   |   | 53 |   
|                                                        
|                                                         | Appendix E  Audit Committee
    Charter                     |                                                                                   |   | 56 |   





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##### Table of Contents








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









| |                                
| | -------------------------------
| | May 4, 2006                    
| | 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 4, 2006                    
| | 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, 2005 and
    the report of the auditors thereon;                                                                                                                                                                                                         
|  
|2. | to elect the Board of Directors for 2006;                                                                                                                                                                                                                                                                                                                               
|  
|3. | to appoint auditors for 2006;                                                                                                                                                                                                                                                                                                                                           
|  
|4. | to consider and, if deemed appropriate, adopt, with or without
    variation, a resolution (the full text of which is reproduced as
    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.                                                                                                                                                                                                                                                                

th




| |                                   
| | ----------------------------------
| | 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 Communication Canada, Inc., the
    Corporations proxy solicitation agent, at 1-866-699-2833,
    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 $24,000.

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 FOR items (1), (2) and (3).

4.   Who is entitled to vote?




| |                                                                                                                                                                       
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Common shareholders as at the close of business on
    March 13, 2006 (the Record Date) or their duly
    appointed representatives will be entitled to cast a vote.
|
| | As at February 27, 2006, 103,651,326 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 2, 2006.                                                                                                                                  
|
| | (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.                                                    









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##### Table of Contents





| |     |                
| | --- | ---------------
| | (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.



| |                                                                                                                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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 writing and 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 FOR the election to the
    Corporations Board of Directors of the nominees as
    described in this Management Proxy Circular and on the proxy
    form, FOR the appointment of Deloitte & Touche LLP as
    auditors until the close of the next annual meeting, FOR
    the resolution authorizing the Corporation to implement a new
    performance option plan and FOR management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.









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##### Table of Contents





| |                                                                                                              
| | -------------------------------------------------------------------------------------------------------------
| | 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.                                                        
|
| | 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       
| | 600 The Dome Tower              
| | 333 
    7th
    Avenue SW     
| | Calgary, Alberta, Canada T2P 2Z1



| |              
| | -------------
| | 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)



| |           
| | ----------
| | By e-mail:

| |                         
| | ------------------------
| | inquiries@cibcmellon.com











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##### Table of Contents






Business of the Meeting




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



| |                                                                                                                                                                                                                                                                                                                                  
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Consolidated Financial Statements for the fiscal year ended
    December 31, 2005 are included in the Corporations
    Annual Report on Form 10-K for the fiscal year ended
    December 31, 2005 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 are
    currently directors of the Corporation. 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 2006 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






Nominees for Election to the Board of Directors








|                    |  |                                                                                    |  |                                                                                                                                                                                                                     |  |                                                    |  |                                                   
|------------------- |  | ---------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------- |  | --------------------------------------------------
|                   
|(PHOTO OF F. BLESI) |  | FREDERICK J. BLESIDirector since 2001.Independence
    Status(1):
    Independent. |  | Number of Shares Beneficially Owned
    Number of Deferred Share Units
    Held(2)Total Value of Shares Beneficially Owned and Deferred
    Share
    Units Held(3)Number of Shares Deemed to be Beneficially Owned |  | Feb 20052,000
    5,476
    $664,018
    16,000(4) |  | Feb 20062,000
    6,700
    $835,635
    11,000(5)





|                    |  |                                                                                  |  |                                                                                                                                                                                                                     |  |                                                     |  |                                                    
|------------------- |  | -------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------------------- |  | ---------------------------------------------------
|                   
|(PHOTO OF W. DOYLE) |  | WILLIAM J. DOYLEDirector since 1989.Independence Status(1):
    Non-independent. |  | Number of Shares Beneficially Owned
    Number of Deferred Share Units
    Held(2)Total Value of Shares Beneficially Owned and Deferred
    Share Units
    Held(3)Number of Shares Deemed to be Beneficially Owned |  | Feb 200577,551
    0
    $6,888,080 893,807
    (4) |  | Feb 200677,978
    0
    $7,489,787 790,490
    (5)
















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##### Table of Contents



|                    |  |                                                                           |  |                                                                                                                                                                                                                     |  |                                                   |  |                                                  
|------------------- |  | ------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------- |  | -------------------------------------------------
|                   
|(PHOTO OF J. ESTEY) |  | JOHN W. ESTEYDirector since 2003.Independence Status(1):
    Independent. |  | Number of Shares Beneficially Owned
    Number of Deferred Share Units
    Held(2)Total Value of Shares Beneficially Owned and Deferred
    Share Units
    Held(3)Number of Shares Deemed to be Beneficially Owned |  | Feb 20052,000
    3,953
    $528,745
    2,000(4) |  | Feb 20062,000
    5,577
    $727,771
    2,000(5)





|                     |  |                                                                                 |  |                                                                                                                                                                                                                     |  |                                                   |  |                                                  
|-------------------- |  | ------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------- |  | -------------------------------------------------
|                    
|(PHOTO OF W. FETZER) |  | WADE FETZER IIIDirector since 2002.Independence
    Status(1):
    Independent. |  | Number of Shares Beneficially Owned
    Number of Deferred Share Units
    Held(2)Total Value of Shares Beneficially Owned and Deferred
    Share Units
    Held(3)Number of Shares Deemed to be Beneficially Owned |  | Feb 20053,000
    2,428
    $482,115
    6,000(4) |  | Feb 20064,000
    3,121
    $683,972
    7,000(5)





|                   |  |                                                                                |  |                                                                                                                                                                                                                     |  |                                                      |  |                                                      
|------------------ |  | ------------------------------------------------------------------------------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------------------- |  | -----------------------------------------------------
|                  
|(PHOTO OF D. HOWE) |  | DALLAS J. HOWEDirector since 1991.Independence
    Status(1):
    Independent. |  | Number of Shares Beneficially Owned
    Number of Deferred Share Units
    Held(2)Total Value of Shares Beneficially Owned and Deferred
    Share Units
    Held(3)Number of Shares Deemed to be Beneficially Owned |  | Feb 20056,000
    8,539
    $1,291,354
    48,400(4) |  | Feb 20068,000
    11,043
    $1,829,080
    46,400(5)





|                      |  |                                                                                  |  |                                                                                                                                                                                                                     |  |                                                   |  |                                                  
|--------------------- |  | -------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------- |  | -------------------------------------------------
|                     
|(PHOTO OF A. LABERGE) |  | ALICE D. LABERGEDirector since 2003.Independence
    Status(1):
    Independent. |  | Number of Shares Beneficially Owned
    Number of Deferred Share Units
    Held(2)Total Value of Shares Beneficially Owned and Deferred
    Share Units
    Held(3)Number of Shares Deemed to be Beneficially Owned |  | Feb 20052,000
    3,594
    $496,859
    2,000(4) |  | Feb 20062,000
    4,424
    $617,025
    2,000(5)
















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##### Table of Contents



|                     |  |                                                                                   |  |                                                                                                                                                                                                                     |  |                                                    |  |                                                   
|-------------------- |  | --------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------- |  | --------------------------------------------------
|                    
|(PHOTO OF J. MCCAIG) |  | JEFFREY J. MCCAIGDirector since 2001.Independence
    Status(1):
    Independent. |  | Number of Shares Beneficially Owned
    Number of Deferred Share Units
    Held(2)Total Value of Shares Beneficially Owned and Deferred
    Share Units
    Held(3)Number of Shares Deemed to be Beneficially Owned |  | Feb 20052,000
    5,512
    $667,216
    28,000(4) |  | Feb 20062,000
    6,735
    $838,997
    28,000(5)

(6)




|                      |  |                                                                              |  |                                                                                                                                                                                                                     |  |                                                    |  |                                                     
|--------------------- |  | ---------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------- |  | ----------------------------------------------------
|                     
|(PHOTO OF M. MOGFORD) |  | MARY MOGFORDDirector since 2001.Independence
    Status(1):
    Independent. |  | Number of Shares Beneficially Owned
    Number of Deferred Share Units
    Held(2)Total Value of Shares Beneficially Owned and Deferred
    Share Units
    Held(3)Number of Shares Deemed to be Beneficially Owned |  | Feb 20054,000
    6,587
    $940,337
    10,000(4) |  | Feb 20064,000
    7,307
    $1,086,037
    10,000(5)





|                         |  |                                                                                    |  |                                                                                                                                                                                                                     |  |                                                   |  |                                                  
|------------------------ |  | ---------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------- |  | -------------------------------------------------
|                        
|(PHOTO OF P. SCHOENHALS) |  | PAUL J. SCHOENHALSDirector since 1992.Independence
    Status(1):
    Independent. |  | Number of Shares Beneficially Owned
    Number of Deferred Share Units
    Held(2)Total Value of Shares Beneficially Owned and Deferred
    Share Units
    Held(3)Number of Shares Deemed to be Beneficially Owned |  | Feb 20052,000
    4,410
    $569,336
    2,000(4) |  | Feb 20062,000
    5,430
    $713,652
    2,000(5)





|                        |  |                                                                                           |  |                                                                                                                                                                                                                     |  |                                                       |  |                                                      
|----------------------- |  | ----------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------- |  | -----------------------------------------------------
|                       
|(PHOTO OF E. STROMBERG) |  | E. ROBERT STROMBERG, Q.C.Director since 1991.Independence
    Status(1):
    Independent. |  | Number of Shares Beneficially Owned
    Number of Deferred Share Units
    Held(2)Total Value of Shares Beneficially Owned and Deferred
    Share Units
    Held(3)Number of Shares Deemed to be Beneficially Owned |  | Feb 200513,877
    4,262
    $1,611,106
    46,277(4) |  | Feb 200615,580
    5,137
    $1,989,868
    47,980(5)
















---



##### Table of Contents



|                   |  |                                                                              |  |                                                                                                                                                                                                                     |  |                                                    |  |                                                  
|------------------ |  | ---------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------- |  | -------------------------------------------------
|                  
|(PHOTO OF J. VICQ) |  | JACK G. VICQDirector since 1989.Independence
    Status(1):
    Independent. |  | Number of Shares Beneficially Owned
    Number of Deferred Share Units
    Held(2)Total Value of Shares Beneficially Owned and Deferred
    Share Units
    Held(3)Number of Shares Deemed to be Beneficially Owned |  | Feb 20053,186
    3,094
    $557,790
    15,186(4) |  | Feb 20063,186
    3,791
    $670,141
    9,186(5)





|                      |  |                                                                                             |  |                                                                                                                                                                                                                     |  |                                                   |  |                                                  
|--------------------- |  | ------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------- |  | -------------------------------------------------
|                     
|(PHOTO OF E. VIYELLA) |  | ELENA VIYELLA DE PALIZADirector since 2003.Independence
    Status(1):
    Non-independent. |  | Number of Shares Beneficially Owned
    Number of Deferred Share Units
    Held(2)Total Value of Shares Beneficially Owned and Deferred
    Share Units
    Held(3)Number of Shares Deemed to be Beneficially Owned |  | Feb 20052,500
    3,243
    $510,093
    2,500(4) |  | Feb 20062,500
    4,466
    $669,084
    2,500(5)





| |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  | 
|



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | See Director Independence and Other Relationships.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   
|(2) | See Compensation/ Attendance of Directors. 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   
|(3) | Based on the price per Share on the NYSE of $88.82 as at
    February 28, 2005 and $96.05 as at February 27, 2006.
    The Total Value of Shares Beneficially Owned and Deferred
    Share Units Held as disclosed excludes the value of the
    additional deemed Shares included in the Number of Shares
    Deemed to be Beneficially Owned.                                                                                                                                                                                                                                                                                                                       
|   
|(4) | 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 28, 2005 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; E. Robert Stromberg
    32,400 Shares; and Jack G. Vicq 12,000 Shares. No
    stock options have been granted to the Corporations
    non-employee directors since November 2002.
|   
|(5) | 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
    9,000 Shares; William J. Doyle 712,512 Shares;
    Wade Fetzer III 3,000 Shares; Dallas J. Howe
    38,400 Shares; Jeffrey J. McCaig 26,000 Shares;
    Mary Mogford 6,000 Shares; E. Robert Stromberg
    32,400 Shares; and Jack G. Vicq 6,000 Shares. No
    stock options have been granted to the Corporations
    non-employee directors since November 2002.  
|   
|(6) | Mr. McCaig was a director of TCT Logistics Inc.
    (TCT) from June 2001 to January 2002. In or about
    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),












---



##### Table of Contents







|   |                                                                                                                    
|-- | -------------------------------------------------------------------------------------------------------------------
|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;                                                                                                                                        
|
| | (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.





Securities










---



##### Table of Contents



Exchange Act of 1934 Exchange
Act


Exchange Act











Compensation/Attendance of
Directors




















---



##### Table of Contents















Remuneration of Directors


for the 12-month period ended December 31, 2005


|                          |  |                     |            |                            |  |      |            |                |  |                 |            |                  |  |                   |           |  |  |   |            |  |  |   |              |  |  |  |        |   | 
|------------------------- |  | ------------------- | ---------- | -------------------------- |  | ---- | ---------- | -------------- |  | --------------- | ---------- | ---------------- |  | ----------------- | --------- |  |  | - | ---------- |  |  | - | ------------ |  |  |  | ------ | - | 
|                          |  |                     |            |                            |  |      |            |                |  |                 |           
|                          |  | Annual Retainer ($) |            | Meeting and Other Fees ($) |  |      |            |                |  | Percentage      |           
|                          |  |                     |            |                            |  |      |            |                |  | of Total        |           
|                          |  |                     |            | Deferral to                |  |      |            | Deferral to    |  | Annual Grant of |            |                  |  | Remuneration      |          
|                          |  |                     |            | Deferred Share             |  |      |            | Deferred Share |  | Deferred Share  |            | Total            |  | in Deferred Share |          
|Director                  |  | Cash                |            | Units                      |  | Cash |            | Units          |  | Units ($)       |            | Remuneration ($) |  | Units             |          
|                          |  |                     |            |                            |  |      |            |                |  |                 |           
|Frederick J. Blesi        |  | $                   |           |                            |  | $    | 45,000.00  |                |  | $               | 38,000.00  |                  |  | $                 |          |  |  | $ | 55,000.00  |  |  | $ | 138,000.00   |  |  |  | 72.46  | % | 
|                          |  |                     |            |                            |  |      |            |                |  |                 |            |                  |  |                   |           |  |  |   |            |  |  |   |              |  |  |  |        |   | 
|William J. Doyle          |  | $                   |           |                            |  | $    |           |                |  | $               |           |                  |  | $                 |          |  |  | $ |           |  |  | $ |             |  |  |  |       |   | 
|                          |  |                     |            |                            |  |      |            |                |  |                 |            |                  |  |                   |           |  |  |   |            |  |  |   |              |  |  |  |        |   | 
|John W. Estey             |  | $                   |           |                            |  | $    | 45,000.00  |                |  | $               |           |                  |  | $                 | 36,500.00 |  |  | $ | 55,000.00  |  |  | $ | 136,500.00   |  |  |  | 100.00 |   | 
|                          |  |                     |            |                            |  |      |            |                |  |                 |            |                  |  |                   |           |  |  |   |            |  |  |   |              |  |  |  |        |   | 
|Wade Fetzer III           |  | $                   | 45,000.00  |                            |  | $    |           |                |  | $               | 25,500.00  |                  |  | $                 |          |  |  | $ | 55,000.00  |  |  | $ | 125,500.00   |  |  |  | 43.82  |   | 
|                          |  |                     |            |                            |  |      |            |                |  |                 |            |                  |  |                   |           |  |  |   |            |  |  |   |              |  |  |  |        |   | 
|Dallas J. Howe            |  | $                   | 62,500.00  |                            |  | $    | 62,500.00  |                |  | $               |           |                  |  | $                 |          |  |  | $ | 140,000.00 |  |  | $ | 265,000.00   |  |  |  | 76.42  |   | 
|                          |  |                     |            |                            |  |      |            |                |  |                 |            |                  |  |                   |           |  |  |   |            |  |  |   |              |  |  |  |        |   | 
|Alice D. Laberge          |  | $                   | 33,750.00  |                            |  | $    | 11,250.00  |                |  | $               | 38,500.00  |                  |  | $                 |          |  |  | $ | 55,000.00  |  |  | $ | 138,500.00   |  |  |  | 47.83  |   | 
|                          |  |                     |            |                            |  |      |            |                |  |                 |            |                  |  |                   |           |  |  |   |            |  |  |   |              |  |  |  |        |   | 
|Jeffrey J. McCaig         |  | $                   |           |                            |  | $    | 45,000.00  |                |  | $               | 37,000.00  |                  |  | $                 |          |  |  | $ | 55,000.00  |  |  | $ | 137,000.00   |  |  |  | 72.99  |   | 
|                          |  |                     |            |                            |  |      |            |                |  |                 |            |                  |  |                   |           |  |  |   |            |  |  |   |              |  |  |  |        |   | 
|Mary Mogford              |  | $                   | 45,000.00  |                            |  | $    |           |                |  | $               | 49,000.00  |                  |  | $                 |          |  |  | $ | 55,000.00  |  |  | $ | 149,000.00   |  |  |  | 36.91  |   | 
|                          |  |                     |            |                            |  |      |            |                |  |                 |            |                  |  |                   |           |  |  |   |            |  |  |   |              |  |  |  |        |   | 
|Paul J. Schoenhals        |  | $                   | 30,015.00  |                            |  | $    | 14,985.00  |                |  | $               | 24,345.50  |                  |  | $                 | 12,154.50 |  |  | $ | 55,000.00  |  |  | $ | 136,500.00   |  |  |  | 60.18  |   | 
|                          |  |                     |            |                            |  |      |            |                |  |                 |            |                  |  |                   |           |  |  |   |            |  |  |   |              |  |  |  |        |   | 
|E. Robert Stromberg, Q.C. |  | $                   | 36,000.00  |                            |  | $    | 9,000.00   |                |  | $               | 23,200.00  |                  |  | $                 | 5,800.00  |  |  | $ | 55,000.00  |  |  | $ | 129,000.00   |  |  |  | 54.11  |   | 
|                          |  |                     |            |                            |  |      |            |                |  |                 |            |                  |  |                   |           |  |  |   |            |  |  |   |              |  |  |  |        |   | 
|Jack G. Vicq              |  | $                   | 45,000.00  |                            |  | $    |           |                |  | $               | 45,000.00  |                  |  | $                 |          |  |  | $ | 55,000.00  |  |  | $ | 145,000.00   |  |  |  | 37.93  |   | 
|                          |  |                     |            |                            |  |      |            |                |  |                 |            |                  |  |                   |           |  |  |   |            |  |  |   |              |  |  |  |        |   | 
|Elena Viyella de Paliza   |  | $                   | 27,000.00  |                            |  | $    | 18,000.00  |                |  | $               |           |                  |  | $                 | 28,500.00 |  |  | $ | 55,000.00  |  |  | $ | 128,500.00   |  |  |  | 78.99  |   | 
|                          |  |                     |            |                            |  |      |            |                |  |                 |            |                  |  |                   |           |  |  |   |            |  |  |   |              |  |  |  |        |   | 
|Total                     |  | $                   | 324,265.00 |                            |  | $    | 250,735.00 |                |  | $               | 280,545.50 |                  |  | $                 | 82,954.50 |  |  | $ | 690,000.00 |  |  | $ | 1,628,500.00 |  |  |  | 62.86  | % | 
|                          |  |                     |            |                            |  |      |            |                |  |                 |            |                  |  |                   |           |  |  |   |            |  |  |   |              |  |  |  |        |   | 









---



##### Table of Contents





Summary of Board and Committee Meetings Held


for the 12-month period ended December 31, 2005


|                                                  |  |  |    |  | 
|------------------------------------------------- |  |  | -- |  | 
|                                                  | 
|Board of Directors                                |  |  | 9  |  | 
|Audit Committee                                   |  |  | 9  |  | 
|Compensation Committee                            |  |  | 6  |  | 
|Corporate Governance and
    Nominating Committee |  |  | 6  |  | 
|Executive Committee                               |  |  | 0  |  | 
|Safety, Health and
    Environment Committee      |  |  | 5  |  | 
|                                                  |  |  |    |  | 
|Total number of meetings held                     |  |  | 35 |  | 
|                                                  | 



Summary of Attendance of Directors


for the 12-month period ended December 31, 2005


| |  |                           |  |           |        |          |  |         |      |         |  |  | 
| |  | ------------------------- |  | --------- | ------ | -------- |  | ------- | ---- | ------- |  |  | 
| | 
| |  | Board                     |  | Committee |        |          | 
| |  | meetings                  |  | meetings  |        |          | 
| |  | Director                  |  | attended  |        | attended |  |         |     
| |  |                           |  |           |        |          |  |         |     
| |  | Frederick J. Blesi        |  |           | 9 of 9 |          |  |         | 15 o | f 15    |  |  | 
| |  | William J. Doyle          |  |           | 9 of 9 |          |  | n/a (1) |      |         | 
| |  | John W. Estey             |  |           | 9 of 9 |          |  |         | 11 o | f 11    |  |  | 
| |  | Wade Fetzer III           |  |           | 9 of 9 |          |  |         | 12 o | f 12    |  |  | 
| |  | Dallas J. Howe            |  |           | 9 of 9 |          |  |         | 6 o  | f 6 (2) |  |  | 
| |  | Alice D. Laberge          |  |           | 9 of 9 |          |  |         | 14 o | f 14    |  |  | 
| |  | Jeffrey J. McCaig         |  |           | 9 of 9 |          |  |         | 15 o | f 15    |  |  | 
| |  | Mary Mogford              |  |           | 9 of 9 |          |  |         | 15 o | f 15    |  |  | 
| |  | Paul J. Schoenhals        |  |           | 9 of 9 |          |  |         | 11 o | f 11    |  |  | 
| |  | E. Robert Stromberg, Q.C. |  |           | 9 of 9 |          |  |         | 11 o | f 11    |  |  | 
| |  | Jack G. Vicq              |  |           | 8 of 9 |          |  |         | 9 o  | f 9     |  |  | 
| |  | Elena Viyella de Paliza   |  |           | 9 of 9 |          |  |         | 5 o  | f 5     |  |  | 
| | 



| |                                                                                                                                                                                                                                              
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1)         Mr. Doyle
    was a member of only the Executive Committee, which did not meet
    in 2005. 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.                                                                                 









---



##### Table of Contents






Appointment of Auditors






|                   |  |                         |            |      |  |  |            | 
|------------------ |  | ----------------------- | ---------- | ---- |  |  | ---------- | 
|                   |  | Year ended December 31,
|                   |  |                        
|                   |  | 2005                    |            | 2004
|                   |  |                         |            |     
|Audit Fees         |  |                         | $2,281,000 |      |  |  | $2,301,000 | 
|Audit Related Fees |  |                         | 201,000    |      |  |  | 165,000    | 
|Tax Fees           |  |                         | 32,000     |      |  |  | 79,000     | 
|All Other Fees     |  |                         | 3,000      |      |  |  | 121,000    | 

Audit Fees


10-Q Sarbanes-Oxley Act of 2002.


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 2006 Performance Option Plan


2006 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









---



##### Table of Contents



| |                                                                                                                                                                                                                                                                                                                                                                                                                
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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 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.





















---



##### Table of Contents





UNLESS A PROXY SPECIFIES THAT THE SHARES IT REPRESENTS
SHOULD BE VOTED AGAINST THE RESOLUTION TO APPROVE THE 2006
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, 2005                                      |  |                      |           |                         |  |                          |       |  |  |  |         |  |  | 
| |  | Equity compensation plans approved by shareholders     |  |                      | 5,081,756 | (1)                     |  | $                        | 50.46 |  |  |  | 190,776 |  |  | 
| |  | Equity compensation plans not approved by shareholders |  |                      | n/a       |                         |  |                          | n/a   |  |  |  | n/a     |  |  | 
| |  | February 27, 2006                                      |  |                      |           |                         |  |                          |       |  |  |  |         |  |  | 
| |  | Equity compensation plans approved by shareholders     |  |                      | 5,023,569 | (2)                     |  | $                        | 51.02 |  |  |  | 193,276 |  |  | 
| |  | Equity compensation plans not approved by shareholders |  |                      | n/a       |                         |  |                          | n/a   |  |  |  | n/a     |  |  | 
|



|    |                                                                                                                                                                                                                                                                                                   
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Of this amount, 1,186,000 options were outstanding pursuant
    to the 2005 Performance Option Plan, 3,711,156 options were
    outstanding pursuant to the Stock Option Plan 
    Officers and Employees and 184,600 options were outstanding
    pursuant to the Stock Option Plan  Directors.
|   
|(2) | Of this amount, 1,183,500 options were outstanding pursuant
    to the 2005 Performance Option Plan, 3,660,469 options were
    outstanding pursuant to the Stock Option Plan 
    Officers and Employees and 179,600 options were outstanding
    pursuant to the Stock Option Plan  Directors.









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##### Table of Contents






Corporate Governance


58-101,







Report of the Audit
Committee
























Sarbanes-Oxley Act of
2002










---



##### Table of Contents









|  |                                                                                                                                                                   
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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 of the Compensation
Committee and Compensation Discussion and Analysis


Composition of the Compensation Committee


58-101,










Compensation Committee Report on Executive Compensation








Compensation Structure and Policies




Compensation Principles




|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Provide emphasis on performance-based compensation by
    maintaining total cash compensation levels (salary and annual
    short-term incentives) at the median
    (50th
    percentile) of the relevant comparator group with the
    opportunity to achieve above median compensation through the
    medium-term and long-term incentive plans (performance units and
    stock options) by achieving above median company performance.                                                                                                    
| 
| | External competitive compensation comparisons prepared by
    independent compensation consultants currently consist of
    (i) a group of 23 publicly traded U.S. companies
    selected on the basis of a number of factors, including similar
    industry characteristics and market capitalization (the
    Comparator Group), and (ii) additional
    executive compensation survey information gathered by three
    independent compensation consulting services consisting of
    U.S.-based company data (the Additional Surveys).
| 
| | In order to determine the median for the purpose of total cash
    compensation comparisons, regression based upon sales size is
    applied to the salaries and annual short-term incentive targets
    of the Comparator Group and the Additional Surveys for each
    position studied.                                                                                                                                                                                                                                                      
| 
| | The opportunity to earn total compensation above the median is
    provided through medium-term and long-term incentive plans.
    These plans are designed with measures (total shareholder return
    and internal performance measures that have been linked
    historically with total                                                                                                                                                                                                                                                     









---



##### Table of Contents



|  |                                                                                                                                                                                                                                                                                                                                                    
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  | shareholder return) that will require above median company
    performance relative to other basic materials companies in order
    to deliver above median total compensation. The total
    shareholder return of the DJUSBMI has been established as a
    benchmark for determining the relative performance of the
    Corporation.           
| 
| | In order to determine the median and upper quartile for purposes
    of total compensation (salary, annual short-term incentives,
    medium-term incentives and long-term incentives), the range
    between competitive levels based upon comparative sales size
    regression and comparative market capitalization regression is
    utilized.
| 
| | Establish the value of retirement and welfare benefits at the
    median of comparable companies.                                                                                                                                                                                                                                                  



Elements of Executive Compensation






Compensation
    
    
    
    
    
    PerformanceElement
    
    Form
    
    Eligibility
    
    Period
    
    DeterminationBase salary
    
    Cash
    
    All salaried employees
    
    Annual
    
     For the executive group, base salary targets are set
    at the median of the Comparator Group and Additional Surveys,
    adjusted to reflect individual performance and internal equity.Short-term incentives
    
    Cash
    
    All executives and other selected employees (approximately 218
    in 2005). This Plan has been extended to most salaried staff
    employees beginning in 2006.
    
    1 year
    
     Awards are based on the achievement of predetermined
    goals for corporate performance or a combination of corporate
    and operating group performance.
     Targets have been established at the median of the
    Comparator Group and Additional Surveys.
     Individual awards can be adjusted
    (± 20%) to
    recognize individual performance, provided the total of the
    adjusted awards proximates the total of the awards at mid-point.










---



##### Table of Contents





Compensation
    
    
    
    
    
    PerformanceElement
    
    Form
    
    Eligibility
    
    Period
    
    DeterminationMedium-Term Incentive Plan
    
    Performance Share Units
    
    All executives and senior management (approximately
    65 individuals)
    
    3 years
    
     Units issued at a price equal to the average market
    price of the Shares at award date (January 1, 2006).
     Each award vests and is paid out at the end of the
    three-year performance period (December 31, 2008) in
    relation to a vesting schedule
    whereby 1/2
    of the units are vested in accordance with corporate TSR targets
    and 1/2
    of the units are vested in accordance with corporate TSR
    relative to a selected competitive groups TSR.
     The value at payout is based on the number of vested
    units multiplied by the 30-day average Share price at the end of
    the performance period.Long-term incentives
    
    Performance Stock Options
    
    All executives and other selected managers (approximately
    215 individuals)
    
    3 years (vesting)
    10 years (option term)
    
     The 2005 and 2006 Performance Option Plans
    incorporate performance vesting.
     Based on Share price appreciation during the 10-year
    term.




Salary


th


Short-Term Incentive Compensation




±












---



##### Table of Contents



Medium-Term Incentive Plan












Long-Term Incentives (Stock Options)


Stock Option Plan  Officers and Employees and
Stock Option Plan  Directors
















---



##### Table of Contents











2005 and 2006 Performance Option Plans












th th th




Executive Share Ownership Guidelines












---



##### Table of Contents







|                                                                                                     |  |                 |                     | 
|---------------------------------------------------------------------------------------------------- |  | --------------- | ------------------- | 
|                                                                                                     |  | 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 | 



Chief Executive Officer Compensation




th






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



| |                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------
| | This goal was not met in 2005. Recordable and lost time injury
    rates both increased from the record-low levels of 2004.



|   |                                                                                                                    
|-- | -------------------------------------------------------------------------------------------------------------------
|2. | Meet or exceed approved 2005 budget, including earnings per
    share (EPS) and cash flow per share (CFPS) targets.



| |                        
| | -----------------------
| | This goal was achieved.



|   |                                                                                        
|-- | ---------------------------------------------------------------------------------------
|3. | Outperform our peer group of basic materials companies in
    total shareholder return.



| |                                                                                                                                                                                                             
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | TSR for the last three years ending December 31, 2005 was
    158% for the Corporation versus 57.4% for the DJUSBMI; however
    TSR for 2005 was -2.7% for the Corporation versus 6.3% for the
    DJUSBMI.



|   |                                                                                                                                                          
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------
|4. | Continue to implement strategic plan to decommoditize
    selected product lines with particular focus on improving return
    on our phosphate business.



| |                                                                                                                                                                                                                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | During second quarter of 2006, a new purified phosphate plant
    will come on stream in Aurora, NC. The new DFP plant at Aurora
    demonstrated production at capacity, substantially improving
    feed phosphate results. Phosphate gross margin for 2005 was
    $98.9 million, more than six times the 2004 total.



|   |                                                                                        
|-- | ---------------------------------------------------------------------------------------
|5. | Grow revenue base and bottom line for the company through
    strategic use of capital.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Revenue increased to $3,847.2 million in 2005 versus
    $3,244.4 million in 2004 and net income in 2005 was
    $542.9 million versus $298.6 million in 2004.
    Strategic capital was used to complete the Rocanville expansion,
    continue the purified phosphoric acid plant expansion, and
    complete key Trinidad debottlenecks. Investments in other
    companies included $18.6 million in Arab Potash Company,
    $74.9 million in Israel Chemicals, Ltd. and
    $97.4 million in Sinochem Hong Kong Holdings Limited
    (Sinofert).



|   |                                                                                                                                                                                                                 
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|6. | Oversee the establishment of a global International Plant
    Nutrition Institute through the International Fertilizer
    Association to ensure a scientific environmental defense for
    fertilizer products.



| |                                                                  
| | -----------------------------------------------------------------
| | This effort is ongoing and should be achieved by the end of 2006.









---



##### Table of Contents





|   |                                                                                                               
|-- | --------------------------------------------------------------------------------------------------------------
|7. | Show measurable success in leadership development and
    succession planning for the Corporations employees.



| |                                                                                                                                                      
| | -----------------------------------------------------------------------------------------------------------------------------------------------------
| | During 2005, 75% of position movements in the executive and
    senior staff group were filled by promoting and transferring
    internal candidates.



|   |                                                                                               
|-- | ----------------------------------------------------------------------------------------------
|8. | Lead managements effort in maintaining best corporate
    governance practices at all levels.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Mr. Doyle supported management and approved continuing
    initiatives in the area of corporate compliance. In addition,
    the tone was set at the top of the organization regarding the
    importance of conducting business honestly, fairly, with
    integrity and in compliance with all legal requirements and for
    all employees to reaffirm their commitment to the companys
    Statement of Core Values and Code of Business
    Conduct.



|   |                                                                              
|-- | -----------------------------------------------------------------------------
|9. | Find new ways to make it easier for our customers to do
    business with us.



| |                                                                        
| | -----------------------------------------------------------------------
| | The following four customer service initiatives were begun
    in 2005:



| |   |                                                                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | ▪ | Open/shipped orders confirmation tool  an automatic
    e-mail to customers on a regular basis with a summary of all
    open and shipped orders on a month-to-date or year-to-date basis
    so they can track any changes that need to be made to their open
    orders.
|
| | ▪ | Enterprise wide customer complaint system  central
    data bank to track complaint receipt and resolution.                                                                                                                                                               
|
| | ▪ | Customer contact recording system  enhanced
    technology to note customer requirements, comments and
    commitments and to review previous actions in order to improve
    the quality and depth of our customer response.                                             
|
| | ▪ | Website hits reporting tool  enhanced technology to
    track customers preferences when it comes to utilizing our
    website and to focus on expanding and improving areas most often
    utilized.                                                                    



|    |                                                                                                                                                          
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------
|10. | Provide leadership for the company with the investment
    community, within our industry and in the communities in which
    our people work and reside.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | In 2005, Mr. Doyle supported and was directly involved with
    numerous analyst and shareholder events, including meetings with
    major shareholders, analyst meetings, conference calls, and
    plant site tours. The Corporation received 5 awards from the
    Canadian Institute of Certified Accountants (CICA) for its
    annual reporting, sustainability report and corporate governance
    disclosure. This included the top reporting award in the mining
    sector, second place for our sustainability report and corporate
    governance disclosure, and top honors for our annual report and
    recognition as the overall best corporate reporter in Canada.
|
| | Leadership in our communities was demonstrated by community
    support projects at all our plants and offices, both cash
    donations and volunteer hours. The Corporation demonstrated its
    commitment to stakeholders in the global community by providing
    major contributions to the South Asia tsunami relief effort and
    to Hurricane Katrina relief. Corporate donations increased by
    58% in 2005.                                                                                                                                                                                                                                                            








Report on Corporate Governance
and Nominating Matters


Disclosure Regarding Nominating Committee Processes


58-101,




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

Canada
Business Corporations Act Act Act










---



##### Table of Contents



st


Act




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







Disclosure Regarding Director Orientation and Continuing
Education






|    |                                                                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | provide each new director with a baseline of knowledge about the
    Corporation which 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) | be delivered over a period of time to minimize the likelihood of
    overload and maximize the lasting educational impact.                            







|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | maintain a directors intranet site to facilitate the
    exchange of views and published information;                                                                                                                                                                                                                                                                                                                                                    
|   
|(b) | maintain a membership for each director in an organization
    dedicated to corporate governance and ongoing director education;                                                                                                                                                                                                                                                                                                                          
|   
|(c) | each year encourage and fund the attendance of each director at
    one seminar or conference of interest and relevance and fund the
    attendance of each Committee Chair at one additional seminar or
    conference. In all cases, approval for attendance shall be
    obtained, in advance, from the Board Chair. In 2005, a number of
    directors took advantage of our policy by attending seminars or
    conferences of interest or relevance;
|   
|(d) | encourage presentations by outside experts to the Board or
    Committees on matters of particular import or emerging
    significance; and                                                                                                                                                                                                                                                                                                               









---



##### Table of Contents





|    |                                                                                  
|--- | ---------------------------------------------------------------------------------
|(e) | at least annually, schedule 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






Ownership of Shares




|                                                                                                        |  |             |         |                |  |             |           |  |  |  |       |  | 
|------------------------------------------------------------------------------------------------------- |  | ----------- | ------- | -------------- |  | ----------- | --------- |  |  |  | ----- |  | 
|                                                                                                        |  |             |         |                |  |             |           |  |  | 
|                                                                                                        |  |             |         | Number of      |  | Percentage  |          
|                                                                                                        |  |             |         | Shares         |  | of          |          
|                                                                                                        |  | Number of   |         | Beneficially   |  | Outstanding |          
|Name                                                                                                    |  | Shares Held |         | Owned(1)(2)(3) |  | Shares      |          
|                                                                                                        |  |             |         |                |  |             |           |  |  | 
|William J. Doyle,
    Director, President and Chief Executive Officer                                   |  |             | 77,978  |                |  |             | 790,490   |  |  |  | 0.76% |  | 
|                                                                                                        |  |             |         |                |  |             |           |  |  | 
|Wayne R. Brownlee,
    Executive Vice President, Treasurer and Chief Financial Officer                  |  |             | 17,398  |                |  |             | 355,618   |  |  |  | 0.34% |  | 
|                                                                                                        |  |             |         |                |  |             |           |  |  | 
|James F. Dietz,
    Executive Vice President and Chief Operating Officer                                |  |             | 12,600  |                |  |             | 258,852   |  |  |  | 0.25% |  | 
|                                                                                                        |  |             |         |                |  |             |           |  |  | 
|Barbara J. Irwin,
    Senior Vice President, Administration                                             |  |             | 12,065  |                |  |             | 185,285   |  |  |  | 0.18% |  | 
|                                                                                                        |  |             |         |                |  |             |           |  |  | 
|Garth W. Moore,
    President, PCS Potash                                                               |  |             | 6,622   |                |  |             | 124,842   |  |  |  | 0.12% |  | 
|                                                                                                        |  |             |         |                |  |             |           |  |  | 
|All directors and executive officers as a group, including the
    above-named individuals (26 persons) |  |             | 220,871 |                |  |             | 2,488,875 |  |  |  | 2.40% |  | 
|                                                                                                        |  |             |         |                |  |             |           |  |  | 



| |                                                                                                                                                                                                                                                                                                                                                                                                                               
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (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 27, 2006 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 27, 2006. The directors and executive officers of
    the Corporation as a group beneficially owned approximately
    2.401% of the Shares issued and outstanding as at
    February 27, 2006.                                                                 
|
| | (3)         Includes
    Shares purchasable within 60 days after February 27,
    2006 through the exercise of options granted by the Corporation,
    as follows: Mr. Doyle 712,512 Shares; Mr. Brownlee
    338,220 Shares; Mr. Dietz 246,252 Shares; Ms. Irwin
    173,220 Shares; Mr. Moore 118,220 Shares and directors and
    executive officers as a group, including the foregoing
    individuals, 2,268,004 Shares.



|                                                                                                     |  |                      |                     |            |  |  |        |  | 
|---------------------------------------------------------------------------------------------------- |  | -------------------- | ------------------- | ---------- |  |  | ------ |  | 
|                                                                                                     |  |                      |                     |            |  |  |       
|                                                                                                     |  | Amount and Nature of |                     | Percent of | 
|Name and Address of Beneficial Owner                                                                 |  | Beneficial Ownership |                     | Class(1)   | 
|                                                                                                     |  |                      |                     |            |  |  |       
|FMR Corp. (Fidelity)
    82 Devonshire Street
    Boston, Massachusetts 02109                        |  |                      | 16,771,446(2)(3)    |            |  |  | 16.18% |  | 
|                                                                                                     |  |                      |                     |            |  |  |       
|PRIMECAP Management Company
    225 S. Lake Ave., #400
    Pasadena, California 91101                |  |                      | 10,279,315(4)(5)    |            |  |  | 9.92%  |  | 
|                                                                                                     |  |                      |                     |            |  |  |       
|Capital Group International, Inc.
    11100 Santa Monica Blvd.
    Los Angeles, California 90025     |  |                      | 8,792,250(6)(7)(8)  |            |  |  | 8.48%  |  | 
|                                                                                                     |  |                      |                     |            |  |  |       
|Capital Guardian Trust Company
    11100 Santa Monica Blvd.
    Los Angeles, California 90025        |  |                      | 6,454,250(8)(9)(10) |            |  |  | 6.23%  |  | 
|                                                                                                     |  |                      |                     |            |  |  |       
|Jarislowsky, Fraser Limited
    1010 Sherbrooke St. West
    Suite 2005
    Montreal, Quebec H3A 2R7 |  |                      | 5,803,930(11)(12)   |            |  |  | 5.60%  |  | 
|                                                                                                     |  |                      |                     |            |  |  |       



| |                                                                                                                                                                                                                                             
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1)         Represents
    percent of Shares outstanding as of February 27, 2006.                                                                                                                                                           
|
| | (2)         Such
    person has sole dispositive power as to all 16,771,446 Shares
    and sole voting power as to 4,330,031 Shares.                                                                                                        
|
| | (3)         As
    set forth in a Schedule 13G dated February 14, 2006.                                                                                                                                                                     
|
| | (4)         Such
    person has sole dispositive power as to all 10,279,315 Shares
    and sole voting power as to 2,608,915 Shares.                                                                                                        
|
| | (5)         As
    set forth in a Schedule 13G dated February 8, 2006.                                                                                                                                                                      
|
| | (6)         Such
    person has sole dispositive power as to all 8,792,250 Shares and
    sole voting power as to 7,371,150 Shares.                                                                                                         
|
| | (7)         As
    set forth in a Schedule 13G dated February 2, 2006.                                                                                                                                                                      
|
| | (8)         Capital
    Group International, Inc. may be deemed the beneficial owner of
    the Shares of its subsidiaries, including the 6,454,250 Shares
    beneficially owned by 
                   Capital
    Guardian Trust Company.
|
| | (9)         Such
    person has sole dispositive power as to all 6,454,250 Shares and
    sole voting power as to 5,300,750 Shares.                                                                                                         
|
| | (10)          As
    set forth in a Schedule 13G dated February 2, 2006.                                                                                                                                                                    
|
| | (11)          Such
    person has sole dispositive power as to all 5,803,930 Shares,
    sole voting power as to 4,854,556 Shares, and shared voting
    powers as to 949,374 Shares.                                                       
|
| | (12)          As
    set forth in a Schedule 13G dated February 10, 2006.                                                                                                                                                                   









---



##### Table of Contents






Executive Compensation


Summary Compensation
Table




Summary Compensation
Table(1)


|                            |  |      |      |                     |  |                        |         |              |  |            |           |                             |  |              |         |              |  |           |         |            |  |  |           |  |  |  |        |      |  |  |  |  |           |  |  |  |            |  | 
|--------------------------- |  | ---- | ---- | ------------------- |  | ---------------------- | ------- | ------------ |  | ---------- | --------- | --------------------------- |  | ------------ | ------- | ------------ |  | --------- | ------- | ---------- |  |  | --------- |  |  |  | ------ | ---- |  |  |  |  | --------- |  |  |  | ---------- |  | 
|                            |  |      |      |                     |  |                        |         |              |  |            |           |                             | 
|                            |  |      |      |                     |  | Long-Term Compensation |         |              |  |            |           |                             | 
|                            |  |      |      |                     |  |                        |         |              |  |            |           |                             | 
|                            |  |      |      | Annual Compensation |  | Awards                 |         | Payouts      |  |            |           |                             |  |              |        
|                            |  |      |      |                     |  |                        |         |              |  |            |           | Additional 2005 Information | 
|                            |  |      |      |                     |  |                        |         |              |  |            |           |                             | 
|                            |  |      |      |                     |  | Securities             |         |              |  |            |           |                             |  |              |        
|                            |  |      |      |                     |  | Underlying             |         |              |  |            |           |                             |  | Option Grant |         |              | 
|                            |  |      |      |                     |  | Other Annual           |         | Options      |  | LTIP       |           | All Other                   |  |              |         | Date Present |  |           |        
|                            |  |      |      | Salary              |  | Bonus(2)               |         | Compensation |  | Granted(3) |           | Payouts(4)                  |  | Compensation |         |              |  | Value(12) |         | Totals(13) | 
|Name and Principal Position |  | Year |      | $                   |  | $                      |         | $            |  | #          |           | $                           |  | $            |         |              |  | $         |         | $          | 
|                            |  |      |      |                     |  |                        |         |              |  |            |           |                             | 
|William J. Doyle            |  |      | 2005 |                     |  |                        | 950,000 |              |  |            | 1,056,000 |                             |  |              | 66,501  | (5)          |  |           | 225,000 |            |  |  | 6,332,879 |  |  |  | 70,023 | (6)  |  |  |  |  | 4,416,750 |  |  |  | 12,892,153 |  | 
|President and               |  |      | 2004 |                     |  |                        | 808,750 |              |  |            | 1,375,000 |                             |  |              | 139,431 | (5)          |  |           |        |            |  |  |          |  |  |  | 25,500 | (6)  |  |  |  |  |           |  |  |  |            |  | 
|Chief Executive Officer     |  |      | 2003 |                     |  |                        | 783,750 |              |  |            | 535,000   |                             |  |              | 51,579  | (5)          |  |           | 112,512 |            |  |  |          |  |  |  | 81,822 | (6)  |  |  |  |  |           |  |  |  |            |  | 
|                            |  |      |      |                     |  |                        |         |              |  |            |           |                             |  |              |         |              |  |           |         |            |  |  |           |  |  |  |        |      |  |  |  |  |           |  |  |  |            |  | 
|Wayne R. Brownlee           |  |      | 2005 |                     |  |                        | 420,000 |              |  |            | 352,000   |                             |  |              | 117     | (7)          |  |           | 65,000  |            |  |  | 1,659,358 |  |  |  | 34,089 | (8)  |  |  |  |  | 1,286,043 |  |  |  | 3,751,607  |  | 
|Executive Vice President,   |  |      | 2004 |                     |  |                        | 359,385 |              |  |            | 350,000   |                             |  |              | 6,630   | (7)          |  |           |        |            |  |  |          |  |  |  | 13,727 | (8)  |  |  |  |  |           |  |  |  |            |  | 
|Treasurer and Chief         |  |      | 2003 |                     |  |                        | 359,385 |              |  |            | 144,000   |                             |  |              | 2,649   | (7)          |  |           | 48,220  |            |  |  |          |  |  |  | 19,321 | (8)  |  |  |  |  |           |  |  |  |            |  | 
|Financial Officer           |  |      |      |                     |  |                        |         |              |  |            |           |                             |  |              |         |              |  |           |         |            |  |  |           |  |  |  |        |      |  |  |  |  |           |  |  |  |            |  | 
|                            |  |      |      |                     |  |                        |         |              |  |            |           |                             |  |              |         |              |  |           |         |            |  |  |           |  |  |  |        |      |  |  |  |  |           |  |  |  |            |  | 
|James F. Dietz              |  |      | 2005 |                     |  |                        | 417,783 |              |  |            | 318,000   |                             |  |              | 1,736   | (7)          |  |           | 65,000  |            |  |  | 2,001,334 |  |  |  | 17,965 | (9)  |  |  |  |  | 1,275,950 |  |  |  | 4,032,768  |  | 
|Executive Vice President    |  |      | 2004 |                     |  |                        | 385,288 |              |  |            | 370,000   |                             |  |              | 4,238   | (7)          |  |           |        |            |  |  |          |  |  |  | 4,614  | (9)  |  |  |  |  |           |  |  |  |            |  | 
|and Chief Operating Officer |  |      | 2003 |                     |  |                        | 385,288 |              |  |            | 164,000   |                             |  |              |        |              |  |           | 56,252  |            |  |  |          |  |  |  | 12,284 | (9)  |  |  |  |  |           |  |  |  |            |  | 
|                            |  |      |      |                     |  |                        |         |              |  |            |           |                             |  |              |         |              |  |           |         |            |  |  |           |  |  |  |        |      |  |  |  |  |           |  |  |  |            |  | 
|Barbara J. Irwin            |  |      | 2005 |                     |  |                        | 347,416 |              |  |            | 201,000   |                             |  |              | 1,736   | (7)          |  |           | 35,000  |            |  |  | 1,457,259 |  |  |  | 11,905 | (10) |  |  |  |  | 687,050   |  |  |  | 2,706,366  |  | 
|Senior Vice President,      |  |      | 2004 |                     |  |                        | 324,741 |              |  |            | 275,000   |                             |  |              | 4,584   | (7)          |  |           |        |            |  |  |          |  |  |  | 2,253  | (10) |  |  |  |  |           |  |  |  |            |  | 
|Administration              |  |      | 2003 |                     |  |                        | 322,333 |              |  |            | 126,000   |                             |  |              |        |              |  |           | 48,220  |            |  |  |          |  |  |  | 11,629 | (10) |  |  |  |  |           |  |  |  |            |  | 
|                            |  |      |      |                     |  |                        |         |              |  |            |           |                             |  |              |         |              |  |           |         |            |  |  |           |  |  |  |        |      |  |  |  |  |           |  |  |  |            |  | 
|Garth W. Moore              |  |      | 2005 |                     |  |                        | 348,938 |              |  |            | 195,000   |                             |  |              | 5,880   | (7)          |  |           | 35,000  |            |  |  | 1,464,744 |  |  |  | 30,695 | (11) |  |  |  |  | 692,485   |  |  |  | 2,737,742  |  | 
|President,                  |  |      | 2004 |                     |  |                        | 317,216 |              |  |            | 267,000   |                             |  |              | 3,419   | (7)          |  |           |        |            |  |  |          |  |  |  | 13,417 | (11) |  |  |  |  |           |  |  |  |            |  | 
|PCS Potash                  |  |      | 2003 |                     |  |                        | 317,216 |              |  |            | 123,000   |                             |  |              | 2,570   | (7)          |  |           | 48,220  |            |  |  |          |  |  |  | 18,437 | (11) |  |  |  |  |           |  |  |  |            |  | 
|                            |  |      |      |                     |  |                        |         |              |  |            |           |                             |  |              |         |              |  |           |         |            |  |  |           |  |  |  |        |      |  |  |  |  |           |  |  |  |            |  | 



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Those amounts which 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 amounts awarded pursuant to the Corporations
    Short-Term Incentive Plan. See Compensation Committee
    Report on Executive Compensation  Short-Term
    Incentive Compensation.                                                                                                                                                                                                                                                                                                                                                                                                                           
|   
|(3) | Options granted pursuant to the Stock Option Plan 
    Officers and Employees and the 2005 Performance Option Plan.
    2003 amounts adjusted to reflect the stock split which occurred
    in August 2004.                                                                                                                                                                                                                                                                                                                                                                                                              
|   
|(4) | Reflects payouts pursuant to the terms of the Long-Term
    Incentive Plan in effect for the three-year performance period
    January 1, 2003 to December 31, 2005. The calculation
    was based on performance over the three-year period, measured by
    reference to TSR. TSR of the Corporation measured the capital
    appreciation of the Shares over the performance period and
    included dividends paid. As such, it simulated the actual
    investment performance realized by shareholders. The plan
    considered both the TSR of the Corporation and the TSR
    performance relative to the DJUSBMI.



|    |  |                    |         |  |         |  |        |  |  |  | 
|--- |  | ------------------ | ------- |  | ------- |  | ------ |  |  |  | 
|    | 
|    |  | Potash Corp (NYSE) |         |  | DJUSBMI |  |        |  | 
|    |  |                    |         |  |         |  |        |  | 
|TSR |  |                    | 148.77% |  |         |  | 60.11% |  |  |  | 
|    | 



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | Market capitalization for the
    Corporation was $3.31 billion as at January 1, 2003
    and $8.31 billion as at December 31, 2005. This
    represented an increase of $5.0 billion, or 151%.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   
|    | For details regarding the
    Medium-Term Incentive Plan in place for the performance period
    January 1, 2006 to December 31, 2008, see
    Compensation Committee Report on Executive
    Compensation  Medium-Term Incentive Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   
|(5) | Of the other annual compensation
    indicated for 2005, $21,636 is related to spousal travel
    benefits (while accompanying the executive on Corporation
    business), $17,347 reflects payments made for personal tax
    planning, preparation, administration and financial matters,
    $16,860 reflects a membership allowance, and $10,064 relates to
    tax reimbursements on taxable benefits. Of the other annual
    compensation indicated for 2004, $84,820 reflects a membership
    allowance and $9,755 represents tax reimbursements on taxable
    benefits. Of the other annual compensation indicated for 2003,
    $34,854 reflects payments made for personal tax preparation and
    administration, and $3,048 represents tax reimbursements on
    taxable benefits.
|   
|(6) | The reported amounts for 2005, 2004
    and 2003 consist, respectively, of:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      



|      |                                                                                                                                                                                                                
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(i)   | $60,128, $17,259 and $28,740 which represents the
    Corporations contribution to the Corporations
    defined contribution pension and savings plan on behalf of the
    indicated Named Executive Officer;
|     
|(ii)  | $9,895, $8,241 and $8,532 which represents the value of the
    benefit for group term life insurance premiums paid by the
    Corporation on behalf of the indicated Named Executive Officer;
    and         
|     
|(iii) | $44,550 for 2003 which represents moving expenses.                                                                                                                                                             



|    |                                                                                                   
|--- | --------------------------------------------------------------------------------------------------
|(7) | The reported amounts for 2005, 2004 and 2003 represent tax
    reimbursements on taxable benefits.









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##### Table of Contents





|    |                                                                            
|--- | ---------------------------------------------------------------------------
|(8) | The reported amounts for 2005, 2004 and 2003 consist,
    respectively, of:



|     |                                                                                                                                                                                                       
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(i)  | $30,725, $10,995 and $15,944 which represents the
    Corporations contribution to its defined contribution
    pension and savings plans on behalf of the indicated Named
    Executive Officer; and
|    
|(ii) | $3,364, $2,732 and $3,377 which represents the value of the
    benefit for group term life insurance premiums paid by the
    Corporation on behalf of the indicated Named Executive Officer.        



|    |                                                                           
|--- | --------------------------------------------------------------------------
|(9) | The reported amounts for 2005, 2004 and 2003 consist,
    respectively of:



|     |                                                                                                                                                                                                                 
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(i)  | $11,709, $0 and $10,000 which represents contributions by the
    Corporations subsidiary to its defined contribution
    pension plan on behalf of the indicated Named Executive Officer;
    and             
|    
|(ii) | $6,256, $4,614, and $2,284 which represents the value of the
    benefit for group term life insurance premiums paid by the
    Corporations subsidiary on behalf of the indicated Named
    Executive Officer.



|     |                                                                           
|---- | --------------------------------------------------------------------------
|(10) | The reported amounts for 2005, 2004 and 2003 consist,
    respectively of:



|     |                                                                                                                                                                                                                 
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(i)  | $9,892, $681 and $9,707 which represents contributions by the
    Corporations subsidiary to its defined contribution
    pension plan on behalf of the indicated Named Executive
    Officer; and             
|    
|(ii) | $2,013, $1,572, and $1,922 which represents the value of the
    benefit for group term life insurance premiums paid by the
    Corporations subsidiary on behalf of the indicated Named
    Executive Officer.



|     |                                                                            
|---- | ---------------------------------------------------------------------------
|(11) | The reported amounts for 2005, 2004 and 2003 consist,
    respectively, of:



|     |                                                                                                                                                                                                       
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(i)  | $27,323, $10,426 and $14,682 which represents the
    Corporations contribution to its defined contribution
    pension and savings plans on behalf of the indicated Named
    Executive Officer; and
|    
|(ii) | $3,372, $2,991, $3,755 which represents the value of the benefit
    for group term life insurance premiums paid by the Corporation
    on behalf of the indicated Named Executive Officer.           



|     |                                                                                                                                     
|---- | ------------------------------------------------------------------------------------------------------------------------------------
|(12) | Taken from Option Grants During the Most Recently
    Completed Fiscal Year table below.                                          
|    
|(13) | Total of the dollar values disclosed on the Summary
    Compensation Table and the Option Grant Date Present
    Value for 2005.

Options




Option Grants During the Most Recently Completed Fiscal
Year(1)


| |  |                   |  |                    |         |  |                    |  |        |             |  |  |                 |  |                     |   |             |  |  |  |            |  |  |  | 
| |  | ----------------- |  | ------------------ | ------- |  | ------------------ |  | ------ | ----------- |  |  | --------------- |  | ------------------- | - | ----------- |  |  |  | ---------- |  |  |  | 
| | 
| |  | Individual Grants |  |                    |         | 
| |  |                   |  |                    |         | 
| |  |                   |  | Number of          |         |  | % of Total Options |  |        |             |  |  |                
| |  |                   |  | Securities         |         |  | Granted to         |  |        | Exercise or |  |  |                 |  | Grant Date          |   |             |  | 
| |  |                   |  | Underlying Options |         |  | Employees in       |  |        | Base Price  |  |  |                 |  | Present Value(3)(4) |   |             |  | 
| |  | Name              |  | Granted(1)(2)      |         |  | Fiscal Year        |  |        | ($/Share)   |  |  | Expiration Date |  |                     | $ |             |  |  | 
| |  |                   |  |                    |         |  |                    |  |        |             |  |  |                 |  |                     |   |             |  |  | 
| |  | William J. Doyle  |  |                    | 225,000 |  |                    |  | 18.93% |             |  |  | $88.23          |  |                     |   | May 5, 2015 |  |  |  | $4,416,750 |  |  |  | 
| |  | Wayne R. Brownlee |  |                    | 65,000  |  |                    |  | 5.47%  |             |  |  | Cdn$109.92      |  |                     |   | May 5, 2015 |  |  |  | 1,286,043  |  |  |  | 
| |  | James F. Dietz    |  |                    | 65,000  |  |                    |  | 5.47%  |             |  |  | $88.23          |  |                     |   | May 5, 2015 |  |  |  | 1,275,950  |  |  |  | 
| |  | Barbara J. Irwin  |  |                    | 35,000  |  |                    |  | 2.94%  |             |  |  | $88.23          |  |                     |   | May 5, 2015 |  |  |  | 687,050    |  |  |  | 
| |  | Garth W. Moore    |  |                    | 35,000  |  |                    |  | 2.94%  |             |  |  | Cdn$109.92      |  |                     |   | May 5, 2015 |  |  |  | 692,485    |  |  |  | 
| | 



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Options granted pursuant to the Corporations 2005
    Performance Option Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   
|(2) | Options granted on May 5, 2005. Subject to the terms of the
    2005 Performance Option Plan, each option will vest, if at all,
    based on achievement of certain corporate measures over a
    three-year period ending December 31, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   
|(3) | The Black-Scholes-Merton Option Pricing Model was used by the
    Compensation Committee to determine the grant date present value
    of the stock options granted in May 2005 by the Corporation to
    the Named Executive Officer, thereby assisting in the
    calculation regarding the number of options to grant. Under the
    Black-Scholes-Merton Option Pricing Model, the Grant Date
    Present Value of the stock options referred to in the
    table was $19.63 per Share for Mr. Doyle, Mr. Dietz
    and Ms. Irwin and Cdn$24.63 per Share for Mr. Brownlee
    and Mr. Moore. The material assumptions and adjustments
    incorporated in the Black-Scholes-Merton Option Pricing Model in
    estimating the value of options reflected in the above table
    include the following:



|      |                                                                                                                                                                                                                                                                                                                                                                                                                    
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(i)   | an option term of 10 years and an interest rate of 4.14%
    (US risk free rate corresponding to the term of the options)
    with respect to options granted to Mr. Doyle,
    Mr. Dietz and Ms. Irwin; and an option term of
    10 years and an interest rate of 4.13% (Cdn. risk free rate
    corresponding to the term of the options) with respect to the
    options granted to Mr. Brownlee and Mr. Moore;
|     
|(ii)  | with respect to options granted to Mr. Doyle,
    Mr. Dietz and Ms. Irwin, volatility of 27.1% (calculated
    using daily stock prices on the NYSE for the three-year period
    prior to 4/1/2005); and with respect to the options granted to
    Mr. Brownlee and Mr. Moore, volatility of 27.09%
    (calculated using daily stock prices on the TSX for the
    three-year period prior to 4/1/2005);        
|     
|(iii) | with respect to the options granted to Mr. Doyle,
    Mr. Dietz and Ms. Irwin, dividends at the rate of
    $0.60 per Share and with respect to the options granted to
    Mr. Brownlee and Mr. Moore, dividends at the rate of
    Cdn$0.7424 per Share (representing the annualized dividends paid
    with respect to a Share at the date of grant); and                                                        
|     
|(iv)  | a discount related to risk of forfeiture of 29.63% for
    Mr. Doyle, Mr. Dietz and Ms. Irwin and 29.05% for
    Mr. Brownlee and Mr. Moore was applied. A further 25%
    discount regarding risk for the performance based features was
    also then applied.                                                                                                                                                   



| |                                                                                                                                                                                                                                                                                                                                                                       
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The ultimate values of the options
    will depend on the future market price of the Shares, which
    cannot be forecast with reasonable accuracy. The actual value,
    if any, an optionee will realize upon exercise of an option will
    depend on the excess of the market value of the Shares over the
    exercise price on the date the option is exercised.



|    |                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------
|(4) | Amounts denominated in Canadian dollars are converted to United
    States dollars at the exchange rate in effect at the date of
    grant of the options.









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##### Table of Contents





Aggregated Option Exercises During the Most Recently
Completed


Fiscal Year and Fiscal Year-End Option Values


| |  |                      |  |   |                              |  |                              |   |           |                            |  |  |             |  |       |               |         |  |             |   |            |  |  |   |   |  |  |  | 
| |  | -------------------- |  | - | ---------------------------- |  | ---------------------------- | - | --------- | -------------------------- |  |  | ----------- |  | ----- | ------------- | ------- |  | ----------- | - | ---------- |  |  | - | - |  |  |  | 
| | 
| |  | Number of Securities |  |   | Value of Unexercised in-the- |  |                              |   |          
| |  | Securities           |  |   |                              |  | Underlying Options at FY-End |   |           | Money Options at FY-End(2) |  |  |             | 
| |  | Acquired on          |  |   | Aggregate                    |  |                              |   |           |                            |  |  |             |  |      
| |  | Exercise             |  |   | Value Realized(1)            |  |                              |   |           | # Not                      |  |  |             |  | $ Not |               |         |  |            
| |  | Name                 |  | # |                              |  | $                            |   |           | # Exercisable              |  |  | Exercisable |  |       | $ Exercisable |         |  | Exercisable |   |            |  | 
| |  |                      |  |   |                              |  |                              |   |           |                            |  |  |             |  |       |               |         |  |             |   |            |  | 
| |  | William J. Doyle     |  |   | 160,000                      |  |                              | $ | 9,788,765 |                            |  |  | 712,512     |  |       |               | 225,000 |  |             | $ | 30,263,369 |  |  | $ | 0 |  |  |  | 
| |  | Wayne R. Brownlee    |  |   | 76,300                       |  |                              |   | 4,356,863 |                            |  |  | 338,220     |  |       |               | 65,000  |  |             |   | 12,569,636 |  |  |   | 0 |  |  |  | 
| |  | James F. Dietz       |  |   | 30,000                       |  |                              |   | 2,034,765 |                            |  |  | 246,252     |  |       |               | 65,000  |  |             |   | 10,175,215 |  |  |   | 0 |  |  |  | 
| |  | Barbara J. Irwin     |  |   | 15,000                       |  |                              |   | 810,379   |                            |  |  | 173,220     |  |       |               | 35,000  |  |             |   | 6,986,915  |  |  |   | 0 |  |  |  | 
| |  | Garth W. Moore       |  |   | 90,000                       |  |                              |   | 4,569,609 |                            |  |  | 118,220     |  |       |               | 35,000  |  |             |   | 3,362,569  |  |  |   | 0 |  |  |  | 
| | 



|    |                                                                                                                                                                                                                                                                                                                          
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | All values are pre-tax.                                                                                                                                                                                                                                                                                                  
|   
|(2) | Values are calculated by determining the amount by which the
    market value of the Shares underlying the options on
    December 31, 2005 exceeded the exercise prices of the
    options and converting Canadian dollar amounts to United States
    dollars using the December 31, 2005 exchange rate of
    $0.8577.

Pension Plans










Supplemental Retirement Income Plan Table


| |  |                  |           |  |    |   |           |    |  |   |           |  |  |    |           |  |  |   |           |  |  |  | 
| |  | ---------------- | --------- |  | -- | - | --------- | -- |  | - | --------- |  |  | -- | --------- |  |  | - | --------- |  |  |  | 
| | 
| |  | Years of Service |           |  |    |  
| |  | Remuner-         |           |  |    |   |           |    | 
| |  | ation ($)        |           |  | 10 |   |           | 20 |  |   | 30        |  |  | 40 |           |  |  |  
| |  |                  |           |  |    |   |           |    |  |   |           |  |  |    |           |  |  |  
| |  | $                | 250,000   |  |    | $ | 125,000   |    |  | $ | 125,000   |  |  | $  | 150,000   |  |  | $ | 175,000   |  |  |  | 
| |  |                  | 500,000   |  |    |   | 250,000   |    |  |   | 250,000   |  |  |    | 300,000   |  |  |   | 350,000   |  |  |  | 
| |  |                  | 1,000,000 |  |    |   | 500,000   |    |  |   | 500,000   |  |  |    | 600,000   |  |  |   | 700,000   |  |  |  | 
| |  |                  | 1,500,000 |  |    |   | 750,000   |    |  |   | 750,000   |  |  |    | 900,000   |  |  |   | 1,050,000 |  |  |  | 
| |  |                  | 2,000,000 |  |    |   | 1,000,000 |    |  |   | 1,000,000 |  |  |    | 1,200,000 |  |  |   | 1,400,000 |  |  |  | 
| |  |                  | 3,000,000 |  |    |   | 1,500,000 |    |  |   | 1,500,000 |  |  |    | 1,800,000 |  |  |   | 2,100,000 |  |  |  | 
| | 













---



##### Table of Contents







| |  |                                                           |  |                                       |  |                                       |  |                                    |  |  | 
| |  | --------------------------------------------------------- |  | ------------------------------------- |  | ------------------------------------- |  | ---------------------------------- |  |  | 
| |  |                                                           |  |                                       |  |                                       | 
| |  | Assumptions                                               |  | Assumptions                           |  | Assumptions                           |  |                                    | 
| |  | Used at the End                                           |  | Used at the End                       |  | Used at the End                       |  |                                    | 
| |  | of the Year 2005                                          |  | of the Year 2004                      |  | of the Year 2003                      |  |                                    | 
| |  | and for the                                               |  | and for the                           |  | and for the                           |  |                                    | 
| |  |                                                           |  | 2006 Expense                          |  | 2005 Expense                          |  | 2004 Expense                       |  |  | 
| |  |                                                           |  |                                       |  |                                       | 
| |  | Interest Rate                                             |  | 5.00% per annum                       |  | 6.00% per annum                       |  | 7.00% per annum                    |  |  | 
| |  |                                                           |  |                                       |  |                                       | 
| |  | Increase in Pensionable Earnings                          |  | 4.00% per annum                       |  | 5.00% per annum                       |  | 5.00% per annum                    |  |  | 
| |  |                                                           |  |                                       |  |                                       | 
| |  | Increase in the Income Tax ActMaximum Contribution Limits |  | 2.00% per annum                       |  | 2.00% per annum                       |  | 2.00% per annum                    |  |  | 
| |  |                                                           |  |                                       |  |                                       | 
| |  | Expected Return on Plan Assets                            |  | N/A                                   |  | N/A                                   |  | N/A                                |  |  | 
| |  |                                                           |  |                                       |  |                                       | 
| |  | Retirement Age                                            |  | Age 62                                |  | Age 62                                |  | Age 62                             |  |  | 
| |  |                                                           |  |                                       |  |                                       | 
| |  | Mortality Rates                                           |  | 1994 Unisex Pensioner Mortality Table |  | 1994 Unisex Pensioner Mortality Table |  | 1983 Group Annuity Mortality Table |  |  | 
| |  |                                                           |  |                                       |  |                                       | 









Post-1998 Service Table


| |  |                  |         |  |    |   |         |    |  |   |         |  |  |    |         |  |    |   |         |  |  |   |         |  |  |  | 
| |  | ---------------- | ------- |  | -- | - | ------- | -- |  | - | ------- |  |  | -- | ------- |  | -- | - | ------- |  |  | - | ------- |  |  |  | 
| | 
| |  | Years of Service |         |  |    |  
| |  | Remuner-         |         |  |    |   |         |    | 
| |  | ation ($)        |         |  | 10 |   |         | 15 |  |   | 20      |  |  | 25 |         |  | 30 |   |         |  | 
| |  |                  |         |  |    |   |         |    |  |   |         |  |  |    |         |  |    |   |         |  | 
| |  | $                | 300,000 |  |    | $ | 45,000  |    |  | $ | 67,500  |  |  | $  | 90,000  |  |    | $ | 112,500 |  |  | $ | 135,000 |  |  |  | 
| |  |                  | 400,000 |  |    |   | 60,000  |    |  |   | 90,000  |  |  |    | 120,000 |  |    |   | 150,000 |  |  |   | 180,000 |  |  |  | 
| |  |                  | 500,000 |  |    |   | 75,000  |    |  |   | 112,500 |  |  |    | 150,000 |  |    |   | 187,500 |  |  |   | 225,000 |  |  |  | 
| |  |                  | 600,000 |  |    |   | 90,000  |    |  |   | 135,000 |  |  |    | 180,000 |  |    |   | 225,000 |  |  |   | 270,000 |  |  |  | 
| |  |                  | 700,000 |  |    |   | 105,000 |    |  |   | 157,500 |  |  |    | 210,000 |  |    |   | 262,500 |  |  |   | 315,000 |  |  |  | 
| |  |                  | 800,000 |  |    |   | 120,000 |    |  |   | 180,000 |  |  |    | 240,000 |  |    |   | 300,000 |  |  |   | 360,000 |  |  |  | 
| | 















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##### Table of Contents



Nitrogen Pre-1999 Service Table


| |  |                  |         |  |   |   |        |    |  |   |         |  |  |    |         |  |    |   |         |  |  |   |         |  |  |  | 
| |  | ---------------- | ------- |  | - | - | ------ | -- |  | - | ------- |  |  | -- | ------- |  | -- | - | ------- |  |  | - | ------- |  |  |  | 
| | 
| |  | Years of Service |         |  |   |  
| |  | Remuner-         |         |  |   |   |        |    | 
| |  | ation ($)        |         |  | 5 |   |        | 10 |  |   | 15      |  |  | 20 |         |  | 25 |   |         |  | 
| |  |                  |         |  |   |   |        |    |  |   |         |  |  |    |         |  |    |   |         |  | 
| |  | $                | 300,000 |  |   | $ | 21,000 |    |  | $ | 43,000  |  |  | $  | 64,000  |  |    | $ | 85,000  |  |  | $ | 106,000 |  |  |  | 
| |  |                  | 400,000 |  |   |   | 29,000 |    |  |   | 58,000  |  |  |    | 86,000  |  |    |   | 115,000 |  |  |   | 144,000 |  |  |  | 
| |  |                  | 500,000 |  |   |   | 36,000 |    |  |   | 73,000  |  |  |    | 109,000 |  |    |   | 145,000 |  |  |   | 181,000 |  |  |  | 
| |  |                  | 600,000 |  |   |   | 44,000 |    |  |   | 88,000  |  |  |    | 131,000 |  |    |   | 175,000 |  |  |   | 219,000 |  |  |  | 
| |  |                  | 700,000 |  |   |   | 51,000 |    |  |   | 103,000 |  |  |    | 154,000 |  |    |   | 205,000 |  |  |   | 256,000 |  |  |  | 
| |  |                  | 800,000 |  |   |   | 59,000 |    |  |   | 118,000 |  |  |    | 176,000 |  |    |   | 235,000 |  |  |   | 294,000 |  |  |  | 
| | 





Employment Contracts and
Termination of Employment


Change in Control Agreements






|    |                                                                                                                                                                                                                                      
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | there is 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) | there occurs an amalgamation, merger, consolidation or other
    transaction whereby the control of the existing shareholders of
    the Corporation is diluted to less than 50% control of the
    surviving or consolidated entity;
|   
|(c) | there occurs a significant (50% or more based on book value)
    sale or other disposition of the fixed assets of the Corporation
    within any twelve-month period; or                                                             
|   
|(d) | any party acquires 20% or more of the voting securities of the
    Corporation.                                                                                                                                                      







|    |                                                                                                                      
|--- | ---------------------------------------------------------------------------------------------------------------------
|(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 short
    year in which the termination occurs;              



|    |                                                                                       
|--- | --------------------------------------------------------------------------------------
|(c) | immediate vesting and cash out of all outstanding Long-Term
    Incentive Plan awards;



|    |                                                                               
|--- | ------------------------------------------------------------------------------
|(d) | a credit of three additional years of service under the
    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




Other












---



##### Table of Contents






Performance Graphs


®





| |  |                          |  |        |     |        |  |        |     |        |  |        |     |  |  |   |     |  |  |   |     |  |  |   |     |  |  |  | 
| |  | ------------------------ |  | ------ | --- | ------ |  | ------ | --- | ------ |  | ------ | --- |  |  | - | --- |  |  | - | --- |  |  | - | --- |  |  |  | 
| | 
| |  | Dec-00                   |  | Dec-01 |     | Dec-02 |  | Dec-03 |     | Dec-04 |  | Dec-05 |     |  | 
| |  |                          |  |        |     |        |  |        |     |        |  |        |     |  |  |   |    
| |  | Corporation-NYSE Listing |  | $      | 100 |        |  | $      | 80  |        |  | $      | 84  |  |  | $ | 116 |  |  | $ | 225 |  |  | $ | 219 |  |  |  | 
| |  | Self-Selected Peer Group |  |        | 100 |        |  |        | 105 |        |  |        | 108 |  |  |   | 135 |  |  |   | 215 |  |  |   | 276 |  |  |  | 
| |  | S&P 500®                 |  |        | 100 |        |  |        | 88  |        |  |        | 69  |  |  |   | 88  |  |  |   | 98  |  |  |   | 103 |  |  |  | 
| |  | DJUSBMI                  |  |        | 100 |        |  |        | 104 |        |  |        | 88  |  |  |   | 137 |  |  |   | 146 |  |  |   | 167 |  |  |  | 
| | 

|                                          |  |         
|----------------------------------------- |  | --------
|                                          |  | Symbol  
|The self-selected peer group consists of: |  |         
|Agrium Inc.*                              |  | AGU     
|Mosaic Co (formerly IMC Global Inc.)      |  | MOS     
|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-00                   |  | Dec-01 |     | Dec-02 |  | Dec-03 |    | Dec-04 |  | Dec-05 |    |  | 
| |  |                          |  |        |     |        |  |        |    |        |  |        |    |  |  |   |    
| |  | Corporation-TSX Listing  |  | $      | 100 |        |  | $      | 85 |        |  | $      | 89 |  |  | $ | 101 |  |  | $ | 182 |  |  | $ | 171 |  |  |  | 
| |  | S&P/ TSX Composite Index |  |        | 100 |        |  |        | 87 |        |  |        | 77 |  |  |   | 97  |  |  |   | 111 |  |  |   | 138 |  |  |  | 
| | 






® ©












---



##### Table of Contents






Directors and Officers


Liability Insurance







Voting Shares









Normal Course Issuer Bid







2007 Shareholder Proposals







Additional Information


10-K





Directors Approval





















---



##### Table of Contents






Appendix A


Statement of Corporate Governance Practices








|                                           |  |            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                       |  |     |  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|------------------------------------------ |  | ---------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------- |  | --- |  |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                          
|                                           |  | 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 before and after
    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 2005
    with respect to Mr. Doyle (9 meetings). With respect
    to Ms. Paliza, who was identified as non-independent in
    early 2005, this was complied with commencing in July 2005
    (3 meetings).
|                                          



MANAGEMENT PROXY
CIRCULAR │ Appendix A


Page 37




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##### Table of Contents



|                                                                                                                                                                            |  |            |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                       |                                                                                                 |     |  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------- | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------- | ----------------------------------------------------------------------------------------------- | --- |  |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                           
|                                                                                                                                                                            |  | 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
    Compensation/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, describe 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|                                                                                                                                                                           



MANAGEMENT PROXY
CIRCULAR │ Appendix A


Page 38




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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 which 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)  be delivered 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.                                                                                                       
|                                          



MANAGEMENT PROXY
CIRCULAR │ Appendix A


Page 39




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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 will:
    (a)  maintain a directors intranet site to
    facilitate the exchange of views and published information;
    (b)  maintain a membership for each director in an
    organization dedicated to corporate governance and ongoing
    director education;
    (c)  each year encourage and fund the attendance of
    each director at one seminar or conference of interest and
    relevance and fund the attendance of each Committee Chair at one
    additional seminar or conference. In all cases, approval for
    attendance shall be obtained, in advance, from the Board Chair.
    In 2005, a number of directors took advantage of our policy by
    attending seminars or conferences of interest or relevance;
    (d)  encourage presentations by outside experts to the
    Board or Committees on matters of particular import or emerging
    significance; and
    (e)  at least annually, schedule 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 Business
    Conduct. The complete text of the PotashCorp Code of
    Business 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 Business 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|                                          



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CIRCULAR │ Appendix A


Page 40




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|                                           |  |            |  |                                                                                                                                                                                                                                                                                                                     |                       |  |     |  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|------------------------------------------ |  | ---------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------- |  | --- |  |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                          
|                                           |  | PotashCorp |  |                                                                                                                                                                                                                                                                                                                     |                      
|Disclosure Requirement under Form 58-101F1 |  | Compliance |  |                                                                                                                                                                                                                                                                                                                     | Comments & Discussion
|                                          
|                                           |  |            |  | (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 2005 financial year that pertains to any
    conduct of a director or executive officer that constitutes a
    departure from the PotashCorp Code of Business
    Conduct. Pursuant to the PotashCorp Governance
    Principles, no waiver of the application of the
    PotashCorp Code of Business Conduct to directors or
    senior officers is permitted.                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|                                          
|                                           |  | (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 Business
    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 Business Conduct was distributed to all employees in
    September 2003 and is reinforced with on-line training programs.
    In late 2005, staff employees were required to complete an
    on-line training module regarding corporate ethics. At the end
    of 2005, all employees were asked to sign a written confirmation
    of their compliance with the Code.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|                                          



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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 Corporate Governance and
    Nominating Committee (the 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 Report of the Compensation Committee
    and Compensation Discussion and Analysis and the
    Compensation/Attendance of Directors 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 Report of the Compensation
    Committee 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 Report of the Compensation Committee and 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 |  |  | The Compensation Committee of the Board of Directors engaged
    Hewitt Associates, executive compensation consultants, during
    2005 for research, survey information and design expertise in
    reviewing certain executive and director compensation programs.
    This work has included director pay analysis, performance stock
    option plan design and executive compensation analysis. Also in
    2005, the Committee engaged the services of Watson Wyatt
    executive compensation consultants to provide input and a second
    opinion on the competitiveness of program design and award
    values. Hewitt Associates has historically performed other human
    resources consulting services for the Corporation, including
    actuarial consulting, employee benefits design, finance
    consulting and recordkeeping services. The Committee has adopted
    the corporate governance best practice of retaining independent
    executive compensation consulting services and conducted a
    process during the summer of 2005 to select an independent
    consulting firm to replace Hewitt Associates as executive
    compensation consultant to the Committee. The Committee
    evaluated four consulting firms and selected Watson Wyatt as the
    replacement consultant, based in part on the positive experience
    in delivering the review services earlier in the year, on their
    expertise in both Canadian and U.S. compensation regulation
    and practices and on their depth of available compensation
    consulting services. Watson Wyatt does not perform any other
    consulting services for the Corporation. The Committee will
    continue to use Hewitt Associates proprietary Total
    Compensation Measurement data services to provide specific
    competitive data for selected executive and director positions
    for some period of transition, but this information has been and
    will continue to be supplemented with other compensation survey
    data available through Watson Wyatt consulting.
|                                                                                                                                                                  
|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 2005. The Safety,
    Health and Environment Committee assists the Board to 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, 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 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 Corporate Secretary and
    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 which 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


inter
alia,






|   |                                                                                                                                                                                                                                                                                                 
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|1. | the 2006 Performance Option Plan is hereby adopted and approved
    by the shareholders of the Corporation; and                                                                                                                                                                                 
|  
|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


2006 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 2006 Annual and Special
    Meeting of shareholders, this Potash Corporation of Saskatchewan
    Inc. 2006 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 27, 2006 to
    be effective as of January 1, 2006 (the Effective
    Date), subject to shareholder approval at the
    Corporations 2006 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 27, 2006 pursuant to stock options under this Plan
    may not exceed 1,400,000 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 300,000. 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









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| |  |                                                                                                                                                                                                                                                                                                                                        
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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.



|   |             
|-- | ------------
|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.                      









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##### Table of Contents





| |       |                                                                                                                                                                                               
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (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.



|    |                       
|--- | ----------------------
|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.









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##### Table of Contents





|    |            
|--- | -----------
|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, may be made by the Board
    in its discretion 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.



|    |        
|--- | -------
|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 but,
    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 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









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##### Table of Contents



| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | further, 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.



|    |                          
|--- | -------------------------
|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.                                                                                                                                               









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##### Table of Contents



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 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.                                                                                                   









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##### Table of Contents



5.6 Legal
Requirements




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

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






Appendix E


Audit Committee Charter


1.   PURPOSE




| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1.1 | The Audit Committee (the Committee) is a standing
    committee of the Board of Directors of Potash Corporation of
    Saskatchewan Inc. (the Corporation). Its purpose is
    to assist the Board of Directors in fulfilling its oversight
    responsibilities for (i) the integrity of the
    Corporations financial statements, (ii) the
    Corporations compliance with legal and regulatory
    requirements, (iii) the qualifications and independence of
    the auditors of the Corporation (the external
    auditors), and (iv) the performance of the
    Corporations internal audit function and external
    auditors. The Committee will also prepare the report that is,
    under applicable legislation and regulation, required to be
    included in the Corporations annual proxy statement and
    circular.

2.   AUTHORITY




| |     |                                                                                                                                                   
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------
| | 2.1 | The Committee has authority to conduct or authorize
    investigations into any matter within its scope of
    responsibility. It is empowered to:



| |     |                                                                                                                                                                                                                                                                                                                                                     
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | Determine the public accounting firm to be recommended to the
    Corporations shareholders for appointment as external
    auditors, and, subject to applicable law, be directly
    responsible for the compensation and oversight of the work of
    the external auditors. The external auditors will report
    directly to the Committee.    
|
| | (b) | Resolve any disagreements between management and the external
    auditors regarding financial reporting.                                                                                                                                                                                                                                           
|
| | (c) | Pre-approve all auditing and permitted non-audit services
    performed by the Corporations external auditors.                                                                                                                                                                                                                                     
|
| | (d) | Retain independent counsel, accountants, or others to advise the
    Committee or assist in its duties.                                                                                                                                                                                                                                             
|
| | (e) | Seek any information it requires from employees  all
    of whom are directed to cooperate with the Committees
    requests  or external parties.                                                                                                                                                                                                
|
| | (f) | Meet with Corporation officers, external auditors or outside
    counsel, as necessary.                                                                                                                                                                                                                                                             
|
| | (g) | Delegate authority, to the extent permitted by applicable
    legislation and regulation, to one or more designated members of
    the Committee, including the authority to pre-approve all
    auditing and permitted non-audit services, providing that such
    decisions are presented to the full Committee at its next
    scheduled meeting.

3.   COMPOSITION




| |     |                                                                                                                                                                                                                                                                                                                 
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 3.1 | The Committee shall consist of at least three and no more than
    six members of the Board of Directors.                                                                                                                                                                                                       
|
| | 3.2 | The Corporate Governance and Nominating Committee will recommend
    to the Board of Directors members for appointment to the
    Committee and the Chair of the Committee. Only independent
    Directors shall be entitled to vote on any Board resolution
    approving such recommendations.                
|
| | 3.3 | If and whenever a vacancy shall exist on the Committee, the
    remaining members may exercise all its powers so long as a
    quorum remains in office.                                                                                                                                                        
|
| | 3.4 | Each Committee member shall be independent according to the
    independence standards established by the Board of Directors,
    and all applicable corporate and securities laws and stock
    exchange listing standards.                                                                                    
|
| | 3.5 | Each Committee member will also be financially literate. At
    least one member shall be designated as the financial
    expert, as defined by applicable legislation and
    regulation. No Committee member shall simultaneously serve on
    the audit committees of more than two other public companies.

4.   MEETINGS




| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 4.1 | A majority of the members of the Committee shall constitute a
    quorum. All determinations of the Committee shall be made by a
    majority of its members present at a meeting duly called and
    held. All Committee members are expected to attend each meeting,
    in person or via tele- or video-conference. Any decision or
    determination of the Committee reduced to writing and signed by
    all of the members of the Committee shall be fully as effective
    as if it had been made at a meeting duly called and held.









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| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 4.2 | The Committee will meet at least once each fiscal quarter, with
    authority to convene additional meetings, as circumstances
    require. The Committee will invite other members of the Board of
    Directors, members of management, internal auditors or others to
    attend meetings and provide pertinent information, as necessary.
    External auditors shall be entitled to receive notice of every
    meeting of the Committee and to attend and be heard thereat. The
    Committee will meet separately, periodically, with management,
    with internal audit and with external auditors. The Committee
    will also meet periodically in camera. Meeting agendas
    will be prepared and provided in advance to members, along with
    appropriate briefing materials.                    
|
| | 4.3 | The time at which and place where the meetings of the Committee
    shall be held and the calling of meetings and the procedure in
    all things at such meetings shall be determined by the
    Committee; provided that meetings of the Committee shall be
    convened whenever requested by the external auditors or any
    member of the Committee in accordance with the Canada
    Business Corporations Act. Following a Committee meeting,
    the Committee Chair shall report on the Committees
    activities to the Board of Directors at the next Board of
    Directors meeting. The Committee shall keep and approve minutes
    of its meetings in which shall be recorded all action taken by
    it, which minutes shall be available as soon as practicable to
    the Board of Directors.

5.   CHAIR




| |     |                                                                                                     
| | --- | ----------------------------------------------------------------------------------------------------
| | 5.1 | The Chair of the Committee shall have the duties and
    responsibilities set forth in Appendix A.

6.   RESPONSIBILITIES




| |                                                                                                                                                                                                                                                              
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | There is hereby delegated to the Committee the duties and
    powers specified in section 171 of the Canada Business
    Corporations Act and, without limiting these duties and
    powers, the Committee will carry out the following
    responsibilities.

6.1 Financial
Statements




| |     |                                                                                                                                          
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------
| | (a) | Review significant accounting and reporting issues and
    understand their impact on the financial statements. These
    issues include:



| |       |                                                                                                                                                                                                              
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i)   | complex or unusual transactions and highly judgmental areas;                                                                                                                                                 
|
| | (ii)  | major issues regarding accounting principles and financial
    statement presentations, including any significant changes in
    the Corporations selection or application of accounting
    principles; and
|
| | (iii) | the effect of regulatory and accounting initiatives, as well as
    off-balance sheet structures, on the financial statements of the
    Corporation.                                                        



| |     |                                                                                                                                                                                                                                                                                                                                                                                             
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | Review analyses prepared by management and/or the external
    auditors, setting forth significant financial reporting issues
    and judgments made in connection with the preparation of the
    financial statements, including analyses of the effects of
    alternative GAAP methods on the financial statements.                                                                     
|
| | (c) | Review both U.S. GAAP and Canadian GAAP issues and any
    reconciliation issues from Canadian GAAP to U.S. GAAP.                                                                                                                                                                                                                                                                           
|
| | (d) | Review with management and the external auditors the results of
    the audit, including any difficulties encountered. This review
    will include any restrictions on the scope of the external
    auditors activities or on access to requested information,
    and any significant disagreements with management.                                                                    
|
| | (e) | Review and discuss the annual audited financial statements and
    quarterly financial statements with management and the external
    auditors, including the Corporations disclosures under
    Managements Discussion and Analysis of Financial
    Condition and Results of Operations
    (MD&A), including the discussion of critical
    accounting estimates included therein.
|
| | (f) | Review and discuss the unaudited annual financial statements
    prior to the Corporations year-end earnings release.                                                                                                                                                                                                                                                                      
|
| | (g) | Review the annual financial statements and MD&A and make a
    determination whether to recommend their approval by the Board
    of Directors.                                                                                                                                                                                                                                             
|
| | (h) | Approve the quarterly financial statements and MD&A prior to
    their release.                                                                                                                                                                                                                                                                                                             
|
| | (i) | Review disclosures made by the Chief Executive Officer and the
    Chief Financial Officer during the
    Forms 10-K and
    10-Q certification
    process about significant deficiencies or material weaknesses in
    the design or operation of                                                                                                                                         









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##### Table of Contents



| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     | internal controls or any fraud that involves management or other
    employees who have a significant role in the Corporations
    internal controls.                                                                                                                                                                                                                                                                                                  
|
| | (j) | Discuss earnings press releases (particularly use of pro
    forma information or other non-GAAP financial measures),
    as well as financial information and earnings guidance provided
    externally, including to analysts and rating agencies. This
    review may be general (i.e., the types of information to be
    disclosed and the type of presentations to be made). The
    Committee does not need to discuss each release in advance.
|
| | (k) | Review managements internal control report and the related
    attestation report of the external auditors when required by
    Section 404 of the Sarbanes-Oxley Act of 2002 (the
    Sarbanes-Oxley Act).                                                                                                                                                                                                                                          

6.2 Internal
Control




| |     |                                                                                                                                                                                                                                                                                                                                                                                                                     
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | Consider the effectiveness of the Corporations internal
    control system, including information technology security and
    control.                                                                                                                                                                                                                                                                             
|
| | (b) | Understand the scope of internal audits and external
    auditors review of internal control over financial
    reporting, and obtain reports on significant findings and
    recommendations, together with managements responses.                                                                                                                                                                              
|
| | (c) | Review external auditors management letters and
    managements responses to such letters.                                                                                                                                                                                                                                                                                                                        
|
| | (d) | As requested by the Board of Directors, discuss with management,
    internal audit and the external auditors the Corporations
    major risk exposures (whether financial, operational or
    otherwise), the adequacy and effectiveness of the accounting and
    financial controls, and the steps management has taken to
    monitor and control such exposures.                                              
|
| | (e) | Annually review the Corporations disclosure controls and
    procedures, including any significant deficiencies in, or
    material non-compliance with, such controls and procedures.                                                                                                                                                                                                                             
|
| | (f) | Discuss with the Chief Financial Officer and, as is in the
    Committees opinion appropriate, the Chief Executive
    Officer, all elements of the certification required pursuant to
    Sections 302 and 906 of the Sarbanes-Oxley Act which
    duties may be discharged through the participation by the Chair
    of the Committee in the quarterly Sarbanes-Oxley Due Diligence
    Conference Call meeting.

6.3 Internal
Audit




| |     |                                                                                                                                                                                                                                        
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | Review with management, the external auditors and internal audit
    the charter, plans, activities, staffing and organizational
    structure of the internal audit function.                                                         
|
| | (b) | Ensure there are no unjustified restrictions or limitations on
    the functioning of the internal audit department, and review and
    concur in the appointment, replacement, or dismissal of the Vice
    President, Internal Audit.
|
| | (c) | Review the effectiveness of the internal audit function,
    including compliance with The Institute of Internal
    Auditors Standards for the Professional Practice of
    Internal Auditing.                                       
|
| | (d) | On a regular basis, meet separately with the Vice President,
    Internal Audit to discuss any matters that the Committee or the
    Vice President, Internal Audit believes should be discussed
    privately.                        

6.4 External
Audit




| |     |                                                                                                                                                                                                                                               
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | Review the external auditors proposed audit scope and
    approach, (including coordination of audit effort with internal
    audit) and budget.                                                                                             
|
| | (b) | Review the performance of the external auditors, and exercise
    final approval on the recommendation to shareholders regarding
    the appointment or discharge of the external auditors. In
    performing this review, the Committee will:



| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i)  | At least annually, obtain and review a report by the external
    auditors describing (i) the external auditors
    internal quality control procedures; (ii) any material
    issues raised by the most recent internal quality control
    review, or peer review, of the external auditors, or by any
    inquiry or investigation by governmental or professional
    authorities, within the preceding five years, respecting one or
    more independent audits carried out by the external auditors,
    and any steps taken to deal with any such issues; and
    (iii) (to assess the auditors independence) all
    relationships between the external auditors and the Corporation.
|
| | (ii) | Take into account the opinions of management and internal audit.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                









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##### Table of Contents





| |       |                                                               
| | ----- | --------------------------------------------------------------
| | (iii) | Review and evaluate the lead partner of the external auditors.



| |     |                                                                                                                                                                                                                      
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (c) | On an annual basis receive and review from the external auditors
    a report on items required to be communicated to the Committee
    by Audit Guideline 11 of the Canadian Institute of Chartered
    Accountants.
|
| | (d) | Ensure the rotation of the lead audit partner every five years
    and other audit partners every seven years, and consider whether
    there should be regular rotation of the audit firm itself.                   
|
| | (e) | Present its conclusions with respect to the external auditors to
    the full Board of Directors.                                                                                                                    
|
| | (f) | Set clear hiring policies for employees or former employees of
    the external auditors.                                                                                                                            
|
| | (g) | On a regular basis, meet separately with the external auditors
    to discuss any matters that the Committee or external auditors
    believe should be discussed privately.                                         

6.5 Compliance




| |     |                                                                                                                                                                                                                                                                                                                                                            
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | Review the effectiveness of the system for monitoring compliance
    with laws and regulations and the results of managements
    investigation and follow-up (including disciplinary action) of
    any instances of non-compliance.                                                                                                                     
|
| | (b) | Establish procedures for: (i) the receipt, retention and
    treatment of complaints received by the Corporation regarding
    accounting, internal accounting controls or auditing matters;
    and (ii) the confidential, anonymous submission by
    employees of the Corporation of concerns regarding questionable
    accounting or auditing matters.
|
| | (c) | Review the findings of any examinations by regulatory agencies,
    and any external auditors observations made regarding those
    findings.                                                                                                                                                                                                              
|
| | (d) | Review the process for communicating the Code of Conduct to
    Corporation personnel, and for monitoring compliance therewith.                                                                                                                                                                                                                            
|
| | (e) | Obtain regular updates from management and Corporation legal
    counsel regarding compliance matters.                                                                                                                                                                                                                                                     

6.6 Reporting
Responsibilities




| |     |                                                                                                                                                                                                                                                                                                                                                                                                         
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | Regularly report to the Board of Directors about Committee
    activities and issues that arise with respect to the quality or
    integrity of the Corporations financial statements, the
    Corporations compliance with legal or regulatory
    requirements, the performance and independence of the
    Corporations external auditors, and the performance of the
    internal audit function.
|
| | (b) | Provide an open avenue of communication between internal audit,
    the external auditors, and the Board of Directors.                                                                                                                                                                                                                                                                                  
|
| | (c) | Report annually to shareholders, describing the Committees
    composition, responsibilities and how they were discharged, and
    any other information required by applicable legislation or
    regulation, including approval of non-audit services.                                                                                                                                               
|
| | (d) | Review any other reports the Corporation issues that relate to
    Committee responsibilities.                                                                                                                                                                                                                                                                                                          

6.7 Other
Responsibilities




| |     |                                                                                                                                                                                                                                                                                               
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | Discuss with management the Corporations major policies
    with respect to risk assessment and risk management.                                                                                                                                                                             
|
| | (b) | Perform other activities related to this Committee Charter as
    requested by the Board of Directors.                                                                                                                                                                                        
|
| | (c) | Institute and oversee special investigations as needed.                                                                                                                                                                                                                                       
|
| | (d) | Ensure appropriate disclosure of this Committee Charter as may
    be required by applicable legislation or regulation.                                                                                                                                                                       
|
| | (e) | Confirm annually that all responsibilities outlined in this
    Committee Charter have been carried out.                                                                                                                                                                                      
|
| | (f) | Receive and review, at least quarterly, a report prepared by the
    Corporations Natural Gas Hedging Committee and, if the
    Corporations hedged position is outside approved
    guidelines, determine the reasons for the deviation and any
    action which will be taken as a result.
|
| | (g) | Annually review the Corporations natural gas hedging
    policy.                                                                                                                                                                                                                             
|
| | (h) | Receive and review, at least annually and in conjunction with
    the Compensation Committee, a report on pension plan governance
    including a fund review and retirement plan accruals.                                                                                                   









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##### Table of Contents



7.   FUNDING




| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 7.1 | The Corporation shall provide for appropriate funding, as
    determined by the Committee, for (i) compensation to the
    external auditors for the purpose of preparing or issuing an
    audit report or performing other audit review or attest services
    as pre-approved by the Committee; (ii) compensation to any
    outside experts employed by the Committee; and
    (iii) ordinary administrative expenses of the Committee
    that are necessary or appropriate in carrying out its duties.

8.   OTHER




| |     |                                                                                                                                                                                                                                                                                                 
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 8.1 | The Committee shall conduct an evaluation of the
    Committees performance and this Audit Committee Charter,
    including Appendix A attached hereto, at least
    annually, and recommend to the Board of Directors such Committee
    Charter changes as the Committee deems appropriate.
|
| | 8.2 | Authority to make minor technical amendments to this Committee
    Charter is hereby delegated to the Secretary of the Corporation
    who will report any amendments to the Board of Directors at its
    next meeting.                                                                        

APPENDIX A


POTASH CORPORATION OF SASKATCHEWAN INC.


Audit Committee Chair Position Description






|   |                                                                                                    
|-- | ---------------------------------------------------------------------------------------------------
|1. | Provide overall leadership to facilitate the effective
    functioning of the Committee, including:



| |     |                                                                                                                                                                                                                                 
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | overseeing the structure, composition, membership and activities
    delegated to the Committee;                                                                                                                                
|
| | (b) | chairing every meeting of the Committee and encouraging free and
    open discussion at meetings of the Committee;                                                                                                              
|
| | (c) | scheduling and setting the agenda for Committee meetings with
    input from other Committee members, the Chair of the Board of
    Directors and management as appropriate;                                                    
|
| | (d) | facilitating the timely, accurate and proper flow of information
    to and from the Committee;                                                                                                                                 
|
| | (e) | arranging for management, internal and external auditors and
    others to attend and present at Committee meetings as
    appropriate;                                                                                         
|
| | (f) | arranging sufficient time during Committee meetings to fully
    discuss agenda items;                                                                                                                                          
|
| | (g) | encouraging Committee members to ask questions and express
    viewpoints during meetings; and                                                                                                                                  
|
| | (h) | taking all other reasonable steps to ensure that the
    responsibilities and duties of the Committee, as outlined in its
    Charter, are well understood by the Committee members and
    executed as effectively as possible.



|   |                                                                                                                                                                  
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
|2. | Foster ethical and responsible decision making by the Committee
    and its individual members.                                                                  
|  
|3. | Encourage the Committee to meet in separate, regularly
    scheduled, non-management, closed sessions with the internal
    auditor and the independent auditors.
|  
|4. | Following each meeting of the Committee, report to the Board of
    Directors on the activities, findings and any recommendations of
    the Committee.          
|  
|5. | Carry out such other duties as may reasonably be requested by
    the Board of Directors.                                                                        









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Potash Corporation


of Saskatchewan Inc.


(POTASH LOGO)




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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 4, 2006.


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






| | 
| | 
| | 





| |                                                           
| | ----------------------------------------------------------
| | Thursday, the
    4th day
    of May, 2006 (the Meeting)
| | 10:30 a.m. (local time)                                   
| | Adam Ballroom                                             
| | 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) J. J. McCaig         |  |     |  |         
|   |  | (02) W. J. Doyle                                                                 |  |     |  |          |  | (08) M. Mogford           |  |     |  |         
|   |  | (03) J. W. Estey                                                                 |  |     |  |          |  | (09) P. J. Schoenhals     |  |     |  |         
|   |  | (04) W. Fetzer III                                                               |  |     |  |          |  | (10) E. R. Stromberg      |  |     |  |         
|   |  | (05) D. J. Howe                                                                  |  |     |  |          |  | (11) J. G. Vicq           |  |     |  |         
|   |  | (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