Migao Corporation

Migao Corporation

May 20, 2008 08:00 ET

Migao Announces Joint Venture With SQM

Companies to Build Potassium Nitrate Facility in China

VIENNA, AUSTRIA--(Marketwire - May 20, 2008) - Migao Corporation (TSX:MGO), a leading producer of specialty potash fertilizers for the Chinese market, and Sociedad Quimica y Minera de Chile S.A. (SQM) (NYSE:SQM)(Santiago Stock Exchange:SQM-B)(Santiago Stock Exchange:SQM-A) of Santiago, Chile, the world's largest producer and distributor of potassium nitrate, from the International Fertilizer Association Conference being held in Vienna, Austria, are pleased to announce an investment framework agreement to create a joint venture (JV) for the production of potassium nitrate in China for domestic and international distribution.

The JV will create a new enterprise jointly owned 50/50 by Migao and SQM. The agreement calls for the construction of a new 40,000 tonne per year potassium nitrate facility in China, which is expected to be operational in the first quarter of calendar 2009 at a capital cost of USD $20 million.

Migao, through its wholly owned subsidiaries, will continue to produce potassium nitrate in China, and distribute it through the newly formed JV. The JV will distribute any exports of potassium nitrate produced by Migao or the JV as well as imports of SQM's potassium nitrate to China. In addition, the JV will distribute any exports of products produced by Migao.

"We are very pleased to enter into this agreement with SQM. This mutually beneficial agreement leverages SQM's strong international network and Migao's established presence throughout China," said Mr. Liu Guocai, Migao's CEO. "This agreement expedites Migao's ambition of becoming recognized as a leading international fertilizer company."

Patricio Contesse, Chief Executive Officer of SQM, stated, "We are thrilled at this opportunity to work with Migao in the growing Chinese market, as we believe the synergies we are creating will benefit us both." He continued, "This agreement will allow us to further develop our presence in one of the most important markets for the fertilizer industry, and it is consistent with our strategy of strengthening our worldwide leadership position in our three core businesses."

SQM and Migao will now take the next steps to effect the JV, including seeking the necessary approvals from the Chinese government.

Migao Corporation, through its wholly owned subsidiaries, owns and operates fertilizer production plants in various strategic locations across China for the production and sale of specialty potash fertilizer (potassium nitrate and potassium sulphate) to China's high value agricultural market. Migao Corporation is subject to, and complies with strict government regulations that govern safety, quality and environmental protection. Please visit www.migaocorp.com for further information.

SQM is an integrated producer and distributor of specialty plant nutrients, iodine and lithium. Its products are based on the development of high quality natural resources that allow the Company to be a leader in costs, supported by a specialized international network with sales in over 100 countries. SQM's development strategy aims to maintain and strengthen the Company's world leadership in its three core businesses: Specialty Plant Nutrition, Iodine and Lithium. For further information, visit www.sqm.com.

This press release contains statements that may constitute forward-looking statements, which may include financial and other projections, as well as statements regarding future plans, objectives or economic performance. Forward-looking information involves significant risks, assumptions, uncertainties and other factors that may cause actual future results or anticipated events to differ materially from those expressed or implied and accordingly, investors should not place undue reliance on any such forward-looking statements. Factors that could cause results to vary include those expressed in the Company's filings with Canadian securities regulatory authorities. All information presented herein should be read in conjunction with such filings.

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