MBAC Provides Update on Its Strategic Review Process

TORONTO, ON--(Marketwired - January 15, 2016) -  MBAC Fertilizer Corp. ("MBAC" or the "Company") (TSX: MBC) today announced that it is continuing negotiations with an investment fund active in the fertilizer industry (the "Offeror"). The parties have mutually agreed to further extend the letter of intent between the parties, which contains an exclusivity clause and the deadline for entering into definitive binding documentation, to January 22, 2016.

There is no assurance that the potential transaction will be successfully agreed and concluded. In addition, the final terms and conditions of the potential transaction will be subject to all necessary approvals including the approval of the boards of directors of MBAC and the Offeror, the shareholders of MBAC as well as applicable regulatory authorities, including the Toronto Stock Exchange. Both MBAC and the Offeror are permitted to terminate the non-binding letter of intent at any time should either party determine not to proceed with a transaction.

There can be no assurances that the Company will pursue or complete a business transaction or sale under its strategic process nor that a business transaction or sale will provide any value to all or any stakeholders.

About MBAC

MBAC is focused on becoming a significant integrated producer of phosphate fertilizers and related products in the Brazilian market. MBAC has an experienced team with significant experience in the business of fertilizer operations, management, marketing and finance within Brazil. MBAC owns and operates the Itafós Arraias SSP Operations, which consists of an integrated fertilizer producing facility comprised of a phosphate mine, a mill, a beneficiation plant, a sulphuric acid plant, an SSP plant and a granulation plant and related infrastructure located in central Brazil ("Itafós Operations"). The Itafós Operations are estimated to have production capacity of approximately 500,000 tonnes of SSP per annum. MBAC's exploration portfolio includes a number of additional exciting projects, which are also located in Brazil. The Santana Phosphate Project is a high-grade phosphate deposit located in close proximity to the largest fertilizer market of Mato Grosso State and animal feed market of Pará State.