Agrium Inc.: Profertil Project Financing Achieves Non-Recourse Status.

Business Editors

CALGARY, Alberta--(BUSINESS WIRE)--Dec. 21, 2001

Agrium Inc. (NYSE:AGU) (TSE:AGU.)

ALL AMOUNTS ARE STATED IN U.S.$

Agrium Inc. ("Agrium") announced that the $300-million long-term, syndicated project financing for the Profertil S.A. nitrogen facility in Argentina became non-recourse to Agrium on November 30, 2001. Profertil S.A. is 50 percent owned by Agrium and 50 percent owned by Repsol-YPF, S.A. Agrium had guaranteed 50 percent of the amounts outstanding under long-term syndicated financing until completion guarantees on the plant were released. All requirements for such completion have now been met and the guarantees have been released.

Profertil is located on a deep-water port and therefore can economically serve international markets as well as the Argentine agricultural market. Profertil production is sold on a U.S. dollar denominated basis both in Argentina and internationally.

Agrium Inc. is a leading global producer and marketer of fertilizer and a major retail supplier of agricultural products and services in both North America and Argentina. The Corporation produces and markets four primary groups of fertilizers: nitrogen, phosphate, potash and sulphur. The Corporation's strategy is to grow through incremental expansion of its existing operations and acquisitions as well as the development, commercialization and marketing of new products and international opportunities.