MBAC Fertilizer Reports FY2014 Results - Seite 2

• Executed and received disbursements on new working capital loans totaling approximately $7.8 million (R$20.7 million), the proceeds of which were used to refinance bank indebtedness balances and to cover debt service requirements on other loan agreements;
• Received a number of non-binding indicative offers from third parties related to the Company's strategic review process. These third parties are completing their due diligence on MBAC's assets, and are expected to submit binding proposals in the second quarter of 2015.
• Suspended production at its Itafós Operations, and placed the operations on care and maintenance, largely in response to market conditions and as a means to preserve working capital pending and during the strategic review process.

ITAFÓS OPERATIONS 

The table below summarizes the operational performance for the Itafós Operations during the quarter and year ended December 31, 2014:

(in tonnes unless otherwise stated)	Q4 2014	FY2014
Ore extracted	112,035	531,279
P2O5 grade (%)	6.7%	7.1%
SSP pre-commercial production	11,632	98,533
SSP pre-commercial sales on deliveries	14,925	91,508
Pre-commercial SSP net revenue (in thousands)	$2,506	$16,364

MBAC's performance throughout 2014 was impacted by significant working capital constraints, which placed limitation on the Company's ability to purchase consumables and maintain a more adequate spare parts inventory. Subsequent to year-end, MBAC suspended production at its Itafós Operations largely in response to market conditions and as a means to preserve working capital and complete its strategic review process. The Itafós Operations are currently on care and maintenance, and the Company expects to resume production if and when its strategic review process is successfully completed and its liquidity constraints are resolved. Given that the strategic review process is ongoing and that the Company has no certainty of when, or if, the strategic review process will be successfully completed, MBAC's previously disclosed production and sales guidance for 2015 and 2016 are no longer valid.