Agrium to Buy-Back Shares Through a Normal Course Issuer Bid.

CALGARY, Alberta -- Agrium Inc. (TSX:AGU) (NYSE:AGU) announced today that it has received approval from the Toronto Stock Exchange (TSX) to repurchase up to 10 percent of the Agrium public float (approximately 13 million common shares) through a normal course issuer bid (the "Bid"). The Bid will commence on May 3, 2005 and terminate on May 2, 2006. The shares purchased under the bid will be cancelled. The Corporation presently has a total of 133 million shares outstanding. The timing and exact number of shares purchased will be determined at the Company's discretion. All repurchases will be on the open market and funded from existing cash.

"We believe the current share price does not reflect Agrium's achievements nor its future prospects and therefore represents an opportunity for us to return value to our shareholders," said Mike Wilson, President and CEO. "The program enables us to demonstrate our commitment to strengthening shareholder value while maintaining financial flexibility to pursue growth opportunities."

Agrium Inc. is a leading global producer and marketer of agricultural nutrients and industrial products and a major retail supplier of agricultural products and services in both North and South America. Agrium produces and markets three primary groups of nutrients: nitrogen, phosphate and potash as well as controlled release fertilizers and micronutrients. Agrium'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.

Certain statements in this press release constitute forward-looking statements. Such forward-looking statements involve known and unknown risks and uncertainties, including those referred to in the management discussion and analysis section of the Corporation's most recent annual report to shareholders, which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. A number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, cash requirements and uses of available cash, capital markets and financial conditions affecting the Corporation, growth opportunities, expectations and strategies for businesses, and global and regional economic condition. Agrium disclaims any intention or obligation to update or revise any forward-looking information as a result of new information or future events.

AGRIUM INC. (NYSE:AGU) (TSX:AGU)