Disclaimer: Forward looking statements

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2 Disclaimer: The contents are not to be reproduced or distributed to any third party, including the public or press. The information contained herein, while obtained from sources which we believe are reliable, is not guaranteed as to its accuracy or completeness. The company is a development stage mineral resource exploration company and many of its mineral projects have yet to be proven to be economic. Certain information set out herein in relation to the Company s advanced projects is based on technical reports that are in compliance with NI that are not yet final. The reader is cautioned that such information is subject to change, although management does not anticipate any material deviations. The contents of this presentation is for informational purposes only and does not constitute an offer to sell or a solicitation to purchase any securities referred to herein. Forward looking statements This presentation includes certain forward-looking statements about future events and/or financial results which are forward looking in nature and subject to risks and uncertainties. Forward-looking statements include without limitation, statements regarding the company s plans, goals or objectives and future completion of mine feasibility studies, mine development programs, capital and operating costs, production, potential mineralization, resources and reserves, exploration results and future plans and objectives of MBAC. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may," will," "expect," "intend," "estimate," "anticipate," "believe," or "continue" or the negative thereof or variations thereon or similar terminology. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from expectations include risks associated with mining generally and pre-development stage projects in particular. Potential investors should conduct their own investigations as to the suitability of investing in securities of MBAC Fertilizer Corp. 2

3 To be a significant integrated producer of phosphate and potash fertilizers and related products in the Brazilian and Latin American markets SANTANA PHOSPHATE ITAFÓS Itafόs Arraias SSP Project is a unique, low capex project located in the centre of Brazil s largest agricultural region that will provide near-term cash flow, with start-up expected in Q4 2012, producing 500 ktpa of SSP. AM PA MT MA PI TO BA Brasilia GO MG SP Rio de Janeiro São Paulo PHOSPHATE High grade phosphate deposit strategically located: near the border of Para and Mato Grosso states. Meeting animal feed phosphate and fertilizer demand in the Center-West Brazil. PFS completed ARAXÁ Excellent logistic advantage. PHOSPHATE /REE/Nb The project is funded and currently under construction High grade Phosphate and Rare Earth Elements/Niobium deposit. New Agricultural Frontier BRAZIL PEA completed 3

4 Current Capital Structure Symbol/Exchange TSX: MBC Shares Outstanding 118.4M Options 9.2M Fully Diluted 127.5M Directors & Management Peter Marrone Chairman and Director Denis Arsenault, CA Director Management & Directors ~14% Current Share Price $ wk High/Low $3.75-$2.50 Market Capitalization ($ millions) $ Stock Chart 52 Week (MBC.TO) Alexander Davidson Brian Hayward Ralph Judah Hon. David Peterson Leonardo Marques da Silva Antenor Silva Director Director Director Director Director CEO and Vice-Chairman Research Coverage Canaccord Genuity Paradigm Capital Raymond James BMO Capital Markets GMP Securities National Bank Financial Keith Carpenter Spencer Churchill Steve Hansen Joel Jackson Anoop Prihar Robert Winslow Roberto Busato Belger Carlos Braga Rodrigo Pinto, CA Steve Burleton Antônio Nagle President and Chief Operating Officer VP, Technical Services VP, Finance and CFO VP, Corporate Development VP, Administration 4

5 Acquisition of mining rights, operations (including tax benefits) of Itafós Mineração (Phosphate) - Campos Belos, GO, Brazil Updated reserves & prefeasibility study for the Itafós Arraias Project resource at 24 Mt Definitive Feasibility Study for Itafós Arraias Project by AMEC Construction License issued for Itafós SSP Arraias Project IFC increases loan facility to US$65M through syndication process Updated NI M&I resources on Araxá 6.3 5% TREO Oct 2008 Mar 2010 Sep 2010 Mar 2011 Sep 2011 Jun 2012 Dec 2009 Jun 2010 Feb 2011 Sep 2011 Apr 2012 Sep 2012 MBAC went public on the Toronto Stock Exchange Acquisition and phosphate exploration works in two new areas: Santana, PA Itau BBA approval financing for R$ 205M via BNDES IFC to Invest C$33.6 million in MBAC equity and provide US$40 million in debt Robust prefeasibility study completed for the Santana Project resource at 66.1 Mt Preliminary Economic Assessment (PEA) completed for the Araxá Project NPV $967 M IRR 30% 5

6 Two fundamental trends driving strong fertilizer growth in Brazil Brazilian farmers are applying more fertilizer per hectare to improve yields More hectares are being used for cropping 70, ,000 90,000 65,000 80,000 CAGR 3.1% 60,000 70,000 CAGR 14.9% 60,000 55,000 50,000 50,000 40,000 30,000 45,000 20,000 10,000 40,000 0 Source: ANDA Source: MAPA Driven by subtropical climate and land and water availability Agribusiness is one of the main contributors to GDP surplus 1000 Hectares Brazil - Planted Area for Agriculture US$ Millions Brazil - Agribusiness Exports 1000 Tonnes Source: FAO 31,000 29,000 27,000 25,000 23,000 21,000 19,000 17,000 15,000 Brazil Fertilizer Consumption CAGR 5.1% F 6

7 FAO Monthly Food Price Index ( =100) Source: FAO Since the early 2000 s, food prices have risen significantly Significant correlation between grain prices and fertilizer prices US$/ Metric Tonne Historical Soybeans & Maize Prices Source: FAO, Indexmundi Soybeans Maize (corn) Soya and corn are the most important crops in MBAC s target region Soya and corn prices have tripled since 2005 Increased grain prices combined with the recent weakening of the Brazilian Real has resulted in significantly increased profitability for the Brazilian farmer 7

8 Brazil consumes approximately 5 6 million tonnes of SSP per annum It is estimated that Itafós region consumes approx. 1.2 million tonnes in 2012 This is expected to grow to 1.8 million tonnes by 2020 representing a CAGR of over 4% per year Tonnes 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 SSP Consumption in Brazil 364, , , , ,533 4,707, , ,391 5,363,485 4,702,201 4,223,098 4,234,959 5,033,885 5,363, Production Imports US$/tonne SSP Prices in Itafós target Region (1) Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 DFS Price Jul-12 Aug-12 Sep-12 Current price is in the range of US$315 US$325 per tonne US$250 per tonne was used in the DFS for Itafós Source: ANDA; MBAC team analysis (1) Brazil Producer List Prices FOB Araxa (which is about 1000 kms from MBAC s target area) 8

9 SSP TARGET MARKET OVERVIEW (BRAZIL) AM Santana PA Itaquí Port MA TO Itafos Fortaleza Port PI BA STRATEGIC LOCATION Both MBAC phosphate projects, Santana and Itafós, have a significant competitive advantage resulting from strategic location; Considering a radius of 500 km (target areas), estimated 2015 SSP demand is 500 kt and 1,070 kt, respectively, for Santana and Arraias; 500 Km 1000 Km 750 Km MT GO MG Araxa Aratu Port Closest competitor ( ) has to transport its rock from over 1,000 km to its site, which is located inside the Itafόs target area; Other domestic competitors are located at minimum of 700 km away from MBAC sites; Legend Other Domestic Competitor Domestic Supply Araxá Project Closest Competitor Import Supply New Agriculture Frontier Santos Port Paranaguá Port (Main fertilizer Port in BR) Scale: in Kilometeres Closest Ports, Itaqui and Aratu, are located more than 1,000 km away from MBAC sites Inland transportation costs are approx. 6-7 cents per tonne per km Source: (*) IBGE / MBAgro 9

10 PFS Q Q Q DFS Construction Production

11 Resources Exploration Area Itafós NI resource (January 2012) M&I Resources of: 75.8 Mt at 5% P 2 O 5 Inferred Resource of: 28 Mt at 5% P 2 O 5 Based on 75,000 m of drilling Plant Site MBAC has only explored approximately 20% of its land package 11

12 DOMINGO s TARGET LEGEND Waste Pile Mine Plan Year 3 Access Road SSP Plant Meters Date: 17/10/2012 Scale: 1:13,794 Map: Charlene Resp: Jesus Vieira 12

13 Mill Plant + Water P 2 O 5 Reactive Phosphate 94 15% P 2 O 5 P 2 O 5 Recovery: 8.4% Market 5% of Revenues Mining 3 5.4% P 2 O 5 Waste Ore Beneficiation Tailing P 2 O 5 Concentrate 330,000 28% P 2 O 5 P 2 O 5 Recovery: 55-58% Ammonia 6 kt SSP Powder 500,000 t Granulated SSP 500,000 t 92% of Revenues Sulphuric Acid Plant Imported Sulphur 74,400 t DCDA (1) Sulphuric Acid 170,000 t Electricity 8 MW Sulphuric Acid Surplus 50,000 t Market 3% of Revenues To be used in the process Note: (1) Conventional contact process 13

14 Fully financed project with major institutional lenders including International Finance Corporation (IFC), Itaú BBA, the Brazilian Development Bank (BNDES), WestLB and Banco Votorantim DFS completed by AMEC indicated robust economics based on a 58.8 Mt resource Current M&I resource stands at 75.8 Mt Only 20% of the total land package explored to date room to significantly grow resource Physical construction over 70% complete start up expected later Q DFS ASSUMPTIONS (1) UNIT FIGURES SSP Production (Phase 1) Tonnes 500,000 Mine Life Years 20 AM PA TO MA PI NPV USD MM 346 MT Brasilia GO BA Avg. SSP Price USD/t 325 Avg. SSP Cost (LOM) USD/t 120 MG SP Rio de Janeiro São Paulo Total Capex USD MM 258 (1) Updated September

15 Panoramic View Of Construction At Itafós Site 15

16 Floatation Cells & SAG Mill 16

17 Thickener & Turbo Generator 17

18 Crusher & Sulphuric Acid Plant 18

19 Water Dam & Tailing Dam Excavation 19

20 PEA Q Q Q Q PFS FS Construction Production

21 Santana contains a high grade phosphate resource that could produce one or more phosphate based products for fertilizer industry (SSP/TSP) and animal feed (Di-calcium Phosphate-DCP) Port of Itaquí Port of Fortaleza Operation: Production of 500 kt of SSP per year, during 30 years of mine life Currently has 30 year LOM Market: Project target area is one of the largest agricultural markets in the country: AM MT PA TO MA PI BA Mato Grosso state is the largest fertilizer consumer in Brazil (est.: 1.3Mt of SSP plus 1Mt of MAP/TSP in 2011) São Felix do Xingu (PA) is the municipality with the largest number of cattle in Brazil. Legend Santana Project 1,000km Radius 750km Radius 500km Radius 500 kt of SSP GO MG Port of Santos Port of Aratu Scale 500 Km Paranaguá Port 21

22 New resource estimate completed in February 2012 shows 66.1 Mt of Indicated resources at 10.6% P 2 O 5 and 21.8 Mt Inferred at 7.9% P 2 O 5 Resource North-East view with drill holes Indicated Inferred N New mineralized holes Resource Estimate Details Based upon 114 diamond holes (5,894.7m) and 274 RC holes (12,936m); Vast majority of the drilling completed at a spacing of approximately 100m by 100m; 22

23 MBAC along with PegasusTSI (Florida, USA) issued a preliminary financial model for the Santana Project based on RESERVES: % on a 3% cut off and 114 diamond holes (5,895m) and 274 reverse circulation ( RC ) holes (12,936m) drilled at a spacing of approximately 100m by 100m CAPEX: Based on PegasusTSI estimates taking into account current Itafós capex with additional costs for infrastructure OPEX: Based on PegasusTSI estimates MODEL RESULTS UNIT FIGURES BRL/USD Rate 1.75 Santana Drilling Area Mine Life Years 30 NPV USD MM 407 IRR % 22% Avg. SSP Price USD/t 349 (1) Avg. SSP Cost (LOM) USD/t 131 (1) Total Capex USD MM 393 (1) Constant exchange rate US$ 2012 without inflation 23

24 The Project construction is schedule to start in Q Licensing is undergoing and production shall commence by late Definitive Feasibility Study Construction License Financing Construction Commissioning & Operation 24

25 PEA Q Q Q Q PFS FS Construction Production

26 MBAC holds 214 hectares of mining claims in Minas Gerais State (near Fertilizer Cluster) Area contains phosphate, rare earth elements (REE) and Niobium at or near surface The historical data shows excellent potential MBAC had performed confirmatory and detailing drilling Area is close to two large operations: Vale (phosphate) and CBMM (niobium) production Project Location REE Deposit Santana Itafos Araxá, MG Araxá Project Project located in an area with highly developed infrastructure MBAC is performing comprehensive metallurgical tests with excellent results VALE Mine (Phosphate) CBMM Mine (Niobium) 26

27 High grade ore results in a greater quantity of LREE s and HREE s comparable to leading global REE producers Category Measured Indicated Cut-Off % TREO 2% 2% La 2 1.5% 1.4% Ce 2 2.8% 2.4% Pr 2 0.3% 0.2% Nd 2 0.8% 0.7% Sm 2 0.1% 0.1% LREO 5.5% 4.7% Category Measured Indicated Cut-Off %TREO 2 2 Eu Gd Tb 4 O Dy ppm Ho Er Tm Yb Lu Y HREO (ppm) REO La 2 CeO 2 Pr 6 O 11 Nd 2 Sm 2 Eu 2 Gd 2 Tb 4 O 7 Dy 2 Y 2 REO Basket Nb 2 O 5 Araxá Value $/Kg FOB China (Sep 2012) $19 $19 $105 $100 $53 $2,020 $92 $1,800 $920 $75 $45 % 27.80% 49.80% 4.60% 13.90% 1.40% 0.30% 0.70% 0.10% 0.30% 1.10% US$ $5.28 $9.46 $4.83 $13.90 $0.74 $6.06 $0.64 $1.80 $2.76 $0.83 $

28 M&I resource of % TREO and Inferred resource of % TREO One of the highest grade REO deposits in the world Heavy rare earth oxides (HREO) represent 2.6% of the TREO M&I includes 8.40% P 2 O 5 and 1.02% Nb 2 O 5 2% cut-off grade MODEL RESULTS UNIT FIGURES BRL/USD Rate 2.0 Mine Life Years 40 NPV USD MM 967 IRR % 30% Avg. Araxa Basket REO Price USD/Kg Avg. Araxa Basket REO Cost (1) USD/Kg Total Capex (1) USD MM 406 (1) Only Phase I, Phase 2&3 capex is estimated at $ Million. Estimated operating cost for phase 2 is $9.60/kg and phase 3 is $12.16/kg 28

29 MBAC has already defined a process route (acid bake) using acid leaching and solvent extraction for the production of separated RE oxides Acid Ore preparation Acid leaching Nb 2 O 5 circuit Insoluble Laboratory test work for REO extraction has been underway since September 2011 MBAC has successfully produced a bulk concentrate with 99% RE oxides forecasted cost for the bulk oxides is in the range of $8 to $9 per kg Organic acid DCP circuit Test work will also be conducted at labs in Canada, China and Japan to demonstrate and improve current technologies. REO Precipitation Insoluble RE oxides 97 99% REO separation (SX) Soluble MBAC has already started the sample preparation for the pilot plant campaign in Brazil for the Acid route, that will be conducted to treat individual ore types as well as different blends. Currently evaluating the production of DCP from phosphate solution and the production of niobium oxide from the insoluble residue. 29

30 Project Timeline Phase I Q3/2012 Q2/2013 Q1/2014 Q2 /2014 Q4/2015 Detailed Exploration and PEA Prefeasibility Study Feasibility Study (DFS) Financing & Approval Construction Phase Lab scale test work Pilot Plant Operation Licensing Development of the Araxá Project Bench scale trials have resulted in the production of an REO concentrate (+99%) A pilot plant will run for 4-6 months in 2013 to provide parameters for the Project Phosphate and niobium will be by-products Environmental Licensing has commenced local consulting company has been retained Currently pursuing off-take partners Tonnes 20,000 15,000 10,000 5,000 Phase 1, Phase 2 & 3 Production Capacity Planned 0 14,000 8,500 17,

31 Homogenization & Milling and Classification 31

32 Drying Process 32

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34 SSP is the most applied fertilizer for the Brazilian soil, especially in the Cerrado region, MBAC s target area: Ca(H 2 PO 4 ) 2.H 2 O + S FORMULA COMPOSITION Most of Brazilian soils, especially those located in the Cerrado region, are very poor in P, Ca and S. SSP formula contains Calcium Sulphate (Ca and S) and P PHOSPHATE SOLUBILITY The agronomic efficiency of phosphate products is associated with the solubility of P in NAC (1) + H 2 O From the total P contained in SSP formula, approximately, 90% is soluble making it very efficient P P NAC+H2O P P P P IMPROVED ROOT DEPTH Because of the lack of Ca and the presence of Al 3+ in Brazilian soils, the development of roots is compromised, affecting crops productivity, especially, in a dry season (common in the Cerrado). The Calcium Sulphate in the SSP solves these soil concerns, improving root depth REDUCES COSTS Calcium Sulphate is the component required for the supplement of S deficiency in the soil and it is presented in the gypsum and SSP formulas (1 tonne of SSP = 500 kg of Calcium Sulphate) Using a other sources of P, farmers will incur in extra costs due to the purchase and application of gypsum $$$ Note: Source: (1) Neutral Ammonium Citrate Al 3+ Aluminum Toxicity (*) Sinprifert/ANDA 34

35 Population Expansion: History And Projection GDP Growth Scenario Source: UN Population Division Source: UN Population Division World Cereal Consumption And Future Projection Source: Looking ahead in world food and agriculture perspective to 2050 Source: FAO- Looking ahead in world food and agriculture perspective to 2050 Per Capita Food Consumption ,000 2,000 3,000 4,000 Source: FAO, OECD Kcal/person/day Industrial countries Developing countries World Source: FAO- Looking ahead in world food and agriculture perspective to

36 FAO Monthly food price indices ( =100) Commodity price indices Jan-90 Jan-91 Jan-92 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Source: FAO Index Energy Agriculture Fertilizer Metal & Minerals Source: World Bank Commodity Index 40% 30% 20% 10% 0% Cereals, Grain Utlilization & Stock to Use 2,500 2,000 1,500 1, Utilization Million Tonnes US$/ Metric Tonne Historical Soybeans & Maize Prices Coarse grain (Million Tonnes) Cereals (Million Tonnes) Coarse grain Stock to Use % Cereals Stock to Use % Source: Jul-83 Jul-84 Jul-85 Jul-86 Jul-87 Jul-88 Jul-89 Jul-90 Jul-91 Jul-92 Jul-93 Jul-94 Jul-95 Jul-96 Jul-97 Jul-98 Jul-99 Jul-00 Jul-01 Jul-02 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Source: FAO, Indexmundi Soybeans Maize (corn) 36

37 Arable Land Per Capita Developing Countries With The Highest Land Balance Source: FAOSTAT Source: FAO- Looking ahead in world food and agriculture perspective to 2050 Developing Countries Using More Than 10 Million Ha. Of Arable Land Billion Cu. M/Yr 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Top 10 Countries With Renewable Water Resources Accounts for 75% of all arable land in developing countries Source: FAO- Looking ahead in world food and agriculture perspective to 2050 Source: FAOSTAT 37

38 Agribusiness is a significant part (~25%) of the Brazilian economy Millions R$ 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 Source: CEPEA 0 Agribusiness % of GDP Agribusiness GDP Brazil % 30% 25% 20% 15% 10% 5% 0% Brazil Agribusiness is the Fourth Largest in the World Gross Production Value (2010) Italy Indonesia France Turkey Nigeria Japan Brazil India USA China Brazil s is a leading exporter of agriculture goods and commodities Export Value (2009) 0 100, , , , , ,000 Millions US$ Source: FAOSTAT China Canada Spain Italy Belgium Brazil France Germany Netherlands USA Brazil is a leading producer of agricultural commodities: coffee (#1), oranges (#1), sugarcane (#1), beef (#2) and soya (#2) 0 20,000 40,000 60,000 80, , ,000 Source: FAOSTAT Millions US$ 38

39 Fertilizer Consumption in Brazil Historic Global vs Brazil Phosphate Consumption Tonnes 29,000,000 27,000,000 25,000,000 23,000,000 21,000,000 19,000,000 17,000, % 250% 200% 150% 100% 50% 0% 15,000, Source: ANDA, IFA Fertilizer Consumption Source: ANDA, IFA Global Brazil Currently imports 70% of its NPK fertilizers, Phosphate> 50% Phosphate Fertilizer Imports 125% 100% 75% 50% 25% 0% Source: ANDA Production % Imports % Nutirents in 000 Tonnes (P2O5) 5,000 4,000 3,000 2,000 1,000 0 Source: ANDA 1995 Historic Brazil Phosphate Data Production Imports Consumption

40 Mineral Resource Grade Tonnage Report June 1, 2012 Cut-Off (% TREO) Tonnes (Mt) TREO % LREO % * HREO % ** P 2 O 5 % Nb 2 O 5 % Al 2 % Fe 2 % Measured Resource Category Indicated Resource Category Measured and Indicated Mineral Resource (2% Cut-Off TREO) TREO includes La 2, Ce 2, Pr 2, Nd 2, Sm 2, Eu 2, Gd 2, Tb 2, Dy 2, Ho 2, Er 2, Tm 2, Yb 2, Lu 2 and Y 2 *LREO (97.6% of TREO) includes La 2, Ce 2, Pr 2, Nd 2 and Sm 2 **HREO + Y 2 (2.4% of TREO) includes Eu 2, Gd 2, Tb 2, Dy 2, Ho 2, Er 2, Tm 2, Yb 2, Lu 2 and Y 2. 40

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