Agrium Commences with its Normal Course Issuer Bid.

CALGARY, Alberta--(BUSINESS WIRE)--Sept. 12, 1997--(TSE, NYSE:AGU) Agrium Inc. announced today that it intends to purchase up to five percent, or approximately 6.35 million, of its outstanding common shares, commencing on or about September 15, 1997 and concluding no later than the one year anniversary. The Company has filed a Notice of Intention to make a Normal Course Issuer Bid with The Toronto Stock Exchange and intends to initiate purchases from time to time in accordance with the rules of the Exchange.

Agrium believes that current market prices of Agrium common shares do not reflect the underlying value of Agrium and accordingly believes that a share repurchase program provides value by reducing the number of shares outstanding at attractive prices.

In February, 1997 Agrium purchased under a substantial issuer bid 13.9 million of its common shares, or approximately 10 percent of the then outstanding Agrium common shares. Pursuant to a normal course issuer bid expiring September 9, 1997 Agrium purchased 100,000 common shares in September, 1997.

Agrium Inc. is a major North American based producer and marketer of fertilizer and related products and services to the global agricultural industry.

CONTACT: Agrium Inc.

Ian Chadsey, 403/258-4694

[e-mail]

http://www.agrium.com