MBAC Provides Update Regarding Regulatory Matters and Recapitalization Transaction

TORONTO, ON--(Marketwired - May 13, 2016) - MBAC Fertilizer Corp. ("MBAC" or the "Company") (TSX: MBC) has announced today that further to its press release dated April 15, 2016, the Toronto Stock Exchange's (the "TSX") scheduled delisting of the common shares and warrants of the Company has been extended to June 10, 2016. This extension is intended to allow the Company additional time to complete the transition of the listing of its common shares to the TSX Venture Exchange (the "TSXV") in connection with the Company's proposed recapitalization transaction (the "Recapitalization"), as described in the press release of the Company dated April 5, 2016. There can be no assurance that a listing on the TSXV, or another exchange, will be obtained before MBAC is delisted from the TSX or at all.

In connection with the implementation of the Recapitalization, the extrajudicial restructuring process in Brazil under The Bankruptcy Law (11,101/2005) relating to certain of the Company's Brazilian subsidiaries (the "Brazil Proceeding") was filed on May 4, 2016 and the required court proceedings have been commenced to seek approval of the Brazilian restructuring plan. The Company is continuing to finalize preparations for its proposed proceedings under the Companies' Creditors Arrangement Act (Canada) (the "CCAA Proceeding") with the anticipation of commencing those proceedings and filing its plan of compromise and arrangement in the near future.

MBAC also today announced that it has determined that it will not be in a position to file its interim consolidated financial statements for the three months ended March 31, 2016 and related management's discussion and analysis (collectively, the "Q1 Filing") by May 16, 2016, the required filing due date, as a result of the Company's ongoing financial constraints. Accordingly, the Company expects a cease trade order will be issued by the Canadian securities regulators under the provisions of National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults. MBAC is currently working diligently to complete the Q1 Filing and expects to be able to have the Q1 Filing filed on or about June 10, 2016.