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2014 Industry Outlook Forum

“Kenai Peninsula – Opportunities

Abound”

Kenai Nitrogen Operation (KNO)Restart Project

• Operations:– Two urea and ammonia production trains

– Tidewater port facility

– Power cogeneration facility

• Daily feedstock requirements (Natural gas) – 80 million cubic feet per day (MMCFD) for one

production train

– 155 MMCFD for two train production

• Operations shut down in 2007 due to lack of natural gas

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Agrium Kenai Nitrogen Operations (KNO)

• Location – near Nikiski on the Kenai Peninsula• Employment – 264 employees at full, two-train capacity

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KNO Restart Project

• Alaska state fiscal incentives have increased gas exploration and development in Cook Inlet area

• KNO mothballed and maintained to allow for a future safe restart of operations

• Recent gas discoveries are encouraging

• Agrium has initiated a project to determine whether a restart of KNO is feasible

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KNO Restart Project – Critical Risks to a KNO Restart Decision

• Adequate natural gas reserves at a price to generate positive economics

• Capital cost refinement – current estimate is approximately $200 million to restart one train with a 30 month engineering and construction schedule

• Receipt of necessary ADEC environmental permits

• Local and Government support

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KNO Restart Project – Actions To Date

• Discussions with a number of gas producers – Finalize five year contracts for verified gas reserves totaling 80

MMCFD

• Refining capital cost estimates and construction timeline

• Submitted PSD permit application and working with ADEC on permit approval

• Communicating with elected representatives at the Federal, State and Borough level – Government support will be a factor in the restart decision making

process

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KNO Restart Project – Construction Phase Impacts

• Construction force of approximately 440 workers

• Approximately $75 million in direct labor income during construction phase

• Including all multiplier effects (direct, indirect and induced effects) the plant rehabilitation effort will account for an estimated 815 jobs and $110 million in total labor income

Source: McDowell Group: “The Economic Benefits of Reopening the Agrium Kenai Nitrogen Plant” May 2013

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KNO Restart Project – Production Phase Impacts

Direct Impacts

• Approximately140 permanent, full-time employees – At full production (two train operation), 240 workers will be

required

• Approximately $14 million in annual labor income– Would increase to $24 million with re-commissioning of the

second train

• Agrium employees expected to earn among the highest wages in the Kenai Peninsula Borough

Source: McDowell Group: “The Economic Benefits of Reopening the Agrium Kenai Nitrogen Plant” May 2013

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KNO Restart Project – Production Phase Impacts

Total Impacts

• Approximately 340 jobs and $30 million in annual labor income for single train (includes direct, indirect and induced employment)

• At full production (two trains) KNO would generate approximately 600 jobs and $50 million in annual labor income (includes direct, indirect and induced employment)

Source: McDowell Group: “The Economic Benefits of Reopening the Agrium Kenai Nitrogen Plant” May 2013

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KNO Restart Project – Other Economic Benefits

Kenai Peninsula Borough (KPB) Tax Revenue

• Once one of the largest property taxpayers in the KPB.

• Re-commissioned facility could make annual property tax payments estimated at $2.2 million, equal to 4% of KPB’s current property tax revenue.

• If the second train were re-commissioned, KNO would likely be the largest property taxpayer in the KPB

Source: McDowell Group: “The Economic Benefits of Reopening the Agrium Kenai Nitrogen Plant” May 2013

KNO employee property and sales taxes

• All employees are expected to live in the KPB and pay property tax – $242,000 (single train)

– $416,000 (two train)

• Total annual sales tax revenue to the KPB from the KNO workforce* – $265,000 (single train)

– $467,000 (two train).

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KNO Restart Project – Other Economic Benefits

Source: McDowell Group: “The Economic Benefits of Reopening the Agrium Kenai Nitrogen Plant” May 2013

* Does not include sales tax paid to the communities of Kenai or Soldotna where some KNO payroll dollars will be spent

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KNO Restart Project

Charitable Contributions and Organization Support•Once back in production, Agrium would resume its community investment role by supporting local non-profit organizations and projects.

• Future employees can also be expected to be active in their communities in volunteer hours, cash and in-kind donations.

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KNO Restart Project

Source: McDowell Group: “The Economic Benefits of Reopening the Agrium Kenai Nitrogen Plant” May 2013

Student Enrollment and School District Revenue•Approximately 130 students are expected to be enrolled by KNO families under a single train operation and 220 students under a two train operation

• $690,000 (single train) to $1.2 million (two train) in state education funding to the district

Agrium Inc.

13131 Lake Fraser Drive SE

Calgary, Alberta, Canada T2J 7E8

Telephone (403) 225-7000

Agrium U.S. Inc.

4582 South Ulster Street, Suite 1700

Denver, Colorado, U.S. 80237

Telephone (303) 804-4400

NYSE and TSX: AGU

agrium.com