TORONTO, ONTARIO--(Marketwire - Oct. 14, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

PhosCan Chemical Corp. (TSX:FOS) ("PhosCan") announces that it intends to commence a normal course issuer bid (the "Bid") to repurchase up to 12 million of its common shares, representing approximately 8.8% of the public float of PhosCan. As of October 12, 2011, there were 172,581,228 issued and outstanding common shares of PhosCan. Purchases will be made through the facilities of the Toronto Stock Exchange (the "TSX") or alternative Canadian trading platforms at the prevailing market price of the shares. All shares purchased under the Bid will be cancelled.

PhosCan has received approval from the TSX to commence the Bid on October 18, 2011. The Bid will terminate on October 17, 2012 or on any such earlier date as PhosCan may complete its purchases or otherwise terminate the Bid. Pursuant to TSX policies, daily purchases made by PhosCan pursuant to the Bid will not exceed 58,129 common shares, being 25% of the average daily trading volume of 232,517 shares on the TSX for the past six months, subject to certain exceptions (including block purchases) prescribed by the TSX.

To the knowledge of PhosCan, no director, senior officer or insider of PhosCan currently intends to sell any common shares under the Bid. However, sales by any such persons through the facilities of the TSX may occur if the personal circumstances of such person changes or such person makes a decision unrelated to the Bid. The benefits to any such person whose shares are purchased would be the same as the benefits available to all other holders whose shares are purchased under the Bid.

PhosCan believes that the purchase of its common shares is an appropriate use of funds, since the current market price is less than the cash value per common share. In order to satisfy corporate law requirements applicable to the repurchase of shares, the Board of Directors has reduced the stated capital of PhosCan's common shares by $105,000,000 pursuant to the authorization given to the directors by PhosCan shareholders at the special meeting of shareholders held on February 11, 2009.

Forward-Looking Statements

Certain statements in this press release may constitute "forward-looking" statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of PhosCan to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements are made as of the date of this press release, and PhosCan assumes no obligations to update or revise them to reflect new events or circumstances.

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