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Press release from Marketwire

MBAC Reports Positive Drilling Results from First Diamond Drill Hole at the Santana Project

Wednesday, January 19, 2011

MBAC Reports Positive Drilling Results from First Diamond Drill Hole at the Santana Project08:05 EST Wednesday, January 19, 2011TORONTO, ONTARIO--(Marketwire - Jan. 19, 2011) -MBAC Fertilizer Corp. ("MBAC" or the "Company") (TSX:MBC) is pleased to report positive drilling results from ongoing Phosphate exploration work at the Santana project ("Santana" or the "Project") in the southern Pará State, Brazil. The results from the first drill hole produced an average grade of 17% P2O5 for the first 27 meters, which is consistent with the Company's expectations following the systematic surface sampling, ground geophysics and auger drilling results as reported in MBAC's press release dated November 16, 2010. Antenor Silva, President and CEO, stated "The prospect of a potentially large-scale phosphate project with high grade material is extremely exciting. This Project is strategically positioned in close proximity to extensive farm land in the northern Mato Grosso State of Brazil, one of the largest grain producers in Brazil and one of the fastest growing agricultural frontiers in the world."BackgroundTenement areas covering approximately 90,000 hectares located in southern Pará State have been secured for phosphate exploration following positive indications from geological reconnaissance work. Initial exploration consisting of rock chip sampling returned encouraging results, including numerous occurrences with readings in excess of 30% P2O5. These results have then been followed-up and confirmed by means of auger drilling, with geology and grades in excess of 10% P2O5 defining an open ended NW-SE trending zone. The initial drill hole is located in the center of a drill target area of approximately two (2) km2 with widespread grades well in excess of 20% P2O5 which was defined within the trend.The Project is well situated with the exploration area being approximately 30 kilometres away from the main route used for export of soya and other agricultural products from the Mato Grosso State of Brazil to Europe and elsewhere. The same route gives access to extensive farm land in the northern Mato Grosso State of Brazil, one of the fastest growing agricultural frontiers in the world. First diamond drilling resultsMBAC started diamond drilling at Santana in December 2010, with the diamond drill HQ (67 mm diameter) hole SAN-DD-0001 drilled for a total length of approximately 165 meters and sampled within 1 metre intervals. Grades in the first 27 meters drilled average 17% P2O5, ranging from 4% to 35%. The interval from 0 to 7 metres produced an average grade of 30% P2O5 including grades of 33% at surface and 35% between 4 to 5 metres deep. Mineralization was found down to the end of the hole but grades reported beyond 27 meters are typically below 3.5% P2O5. Sample analysis was performed at Chemex Ltd (ALS), an independent ISO 9001:2000 certified international laboratory. The available data indicates that the deposit is a newly discovered carbonatite, intruded in the upper Proterozoic Iriri Formation. Ongoing drilling work has been planned to allow for characterization and delineation of the exploration target, validating geological continuity as inferred from sampling and surface mapping and providing enough material for a first phase of technological characterization and metallurgical testing.Dr. Luiz A. Bizzi, PhD, MBA, Vice-President, Exploration of MBAC, is a Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the contents of this news release as applicable.About MBAC MBAC is focused on becoming a significant integrated producer of phosphate and potash fertilizers in the Brazilian and Latin American markets. MBAC has an experienced team with over 150 years of combined experience in the business of fertilizer operations, management, marketing and finance within Brazil. In October 2008, MBAC acquired Itafós Mineração Ltda, which consisted of a phosphate mine, a mill and plant and related infrastructure, all located in central Brazil. MBAC's exploration portfolio includes a number of additional phosphate and potash projects, which are also located in Brazil. MBAC is well funded with C$55 million, which will be used to develop the Itafós Expansion Project. The Company continues to search for additional fertilizer opportunities in the Brazilian and other Latin-American markets, where strong agricultural fundamentals and unique opportunities are expected to provide attractive growth opportunities in the near future. All material information on MBAC can be found on the Company's website at www.mbacfert.com or at SEDAR at www.sedar.com.Antenor Silva, President & Chief Executive OfficerFORWARD LOOKING STATEMENTS This release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation, including predictions, projections and forecasts. Forward-looking statements include, but are not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion, growth of the Company's businesses, operations, plans and with respect to exploration results, the timing and success of exploration activities generally, permitting time lines, government regulation of exploration and mining operations, environmental risks, title disputes or claims, limitations on insurance coverage, timing and possible outcome of any pending litigation and timing and results of future resource estimates or future economic studies.Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "planning", "planned", "expects" or "looking forward", "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipates", "does not anticipate", or "belief", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements are based on a number of material factors and assumptions, including, the result of drilling and exploration activities, that contracted parties provide goods and/or services on the agreed timeframes, that equipment necessary for exploration is available as scheduled and does not incur unforeseen break downs, that no labour shortages or delays are incurred, that plant and equipment function as specified, that no unusual geological or technical problems occur, and that laboratory and other related services are available and perform as contracted. Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future commodities' price; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in the company's publicly filed documents. Although MBAC has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.Shares Outstanding: 72,689,336 Fully Diluted: 80,703,643FOR FURTHER INFORMATION PLEASE CONTACT: Steve BurletonMBAC Fertilizer Corp.Vice President, Corporate Development416-367-2200investor@mbacfert.comwww.mbacfert.com