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Press release from Marketwire

MBAC Provides an Update on Exploration Activities at the Itafos Arraias SSP Project

Wednesday, April 27, 2011

MBAC Provides an Update on Exploration Activities at the Itafos Arraias SSP Project17:00 EDT Wednesday, April 27, 2011TORONTO, ONTARIO--(Marketwire - April 27, 2011) -MBAC Fertilizer Corp. ("MBAC" or the "Company") (TSX:MBC) is pleased to report on recent exploration activities at the Itafos Arraias SSP Project (the "Project"). The Company believes positive results from the ongoing exploration work could support additional expanded production in the future ("Phase 2"). The Company also continues to advance the Project and is now focused on the construction of the mine and industrial facilities after receiving the Construction License as announced in the press release dated March 28, 2011. Systematic drilling of high-potential areas situated within close proximity to the plant site has led to identification of additional mineralized zones which are relatively shallow. An updated resource calculation is yet to be performed, but the new results demonstrate a potential to increase existing resources in excess of that indicated in the recent NI 43-101 compliant Amended and Restated Technical Report entitled "Arraias Tocantins Definitive Feasibility Study Report As Amended" dated October 26th, as amended February 10, 2011 (the "Technical Report"). The Company also anticipates positive exploration results from other areas such as at the fringes of the Canabrava Block, where similar favourable lithology has yet to be fully explored.The Company has made some significant progress in the Project since receiving the Construction License. The Company has placed orders for several capital items including the sulphuric acid plant which is the longest lead item for the Project. The Company also expects to start the earthworks in the next several days.Antenor Silva, President and CEO, stated "we are very pleased with the latest exploration results and their positive impact on the Project. A number of the drill holes intersected mineralization with grades that were significantly higher than the grades reported in our most recent Technical Report. We believe that these recent drilling results support the potential for a Phase 2 expansion which would see our capacity double to 1 million tonnes of SSP by 2015/16 from the initial estimate of 500,000 tonnes in 2012. A decision to proceed with Phase 2 will likely be made by 2013".New exploration results Since the last resource estimate, an additional 1,788 meters have been drilled in 43 new holes at a nominal 200 x 200 meters or closer spacing. A summary of drilling at the Itafos Property is as follows:CoreReverse CirculationTotalCalendar YearsHolesmHolesmHolesmCalendar 20081987,014--1987,014Calendar 200937314,50536337614,568Calendar 20101604,7541,21643,0211,37647,7752011 (to March 1st)5165381,623481,788Totals73626,4381,25744,7071,99871,145The latest drilling campaign targeted the northern extension of the Domingos Block, an area within close proximity to the future plant site that had not been drilled previously due to access restrictions. The Company also targeted central parts of the Domingos Block that had previously been drilled at 200 x 200 meter spacing. These areas were infill drilled with the objective of generating additional analytical information and variography studies for the Itafos property. All drill core is being sampled within 1 meter intervals with pulp samples being prepared using a standard procedure at the Itafos laboratory and then routinely submitted for XRF analyses at Chemex Ltd (ALS), an independent ISO 9001:2000 certified international laboratory. Standards and blank samples are used on a regular basis as per best international practices reported in the Technical Report. All results from the additional drilling have now been received from Chemex Ltd (ALS), with the following key-note intercepts being recorded:HoleMineralizationStarting atDOMI-RC-02309m @20.26 %P2O50.00mDOMI-RC-022924m @5.96 %P2O50.00mDOMI-RC-02389m @9.86 %P2O51.00mDOMI-RC-022825m @5.97 %P2O51.00mDOMI-RC-020024m @11.21 %P2O57.00mDOMI-DD-001423.4m @11.64 %P2O57.00mDOMI-RC-022715m @8.43 %P2O511.00mDOMI-DD-001615m @11.17 %P2O511.00mDOMI-RC-022630m @10.7 %P2O512.00mDOMI-RC-021420m @10.62 %P2O518.00mDOMI-RC-021027m @8.04 %P2O521.00mDOMI-RC-021316m @7.28 %P2O521.00mDOMI-RC-021221m @10.76 %P2O523.00mDOMI-RC-021822m @8.59 %P2O524.00mDOMI-RC-020924m @10.78 %P2O527.00mDOMI-RC-021519m @7.19 %P2O527.00mDOMI-RC-022010m @7.55 %P2O527.00mDOMI-RC-021912m @6.45 %P2O529.00mDOMI-RC-021117m @9.23 %P2O530.00mDOMI-RC-019811m @8.14 %P2O536.00mDr. Luiz A. Bizzi, PhD, MBA, Vice-President Exploration of MBAC, is a qualified person within the meaning of National Instrument 43-101 and has reviewed and approved the contents of this news release as applicable.About MBACMBAC 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 Itafos Mineracao 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. 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 SilvaPresident & Chief Executive OfficerFORWARD LOOKING STATEMENTSThis release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. 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 business, operations, plans and with respect to exploration results, the timing and success of exploration activities such as diamond drilling to validate geological continuity, obtaining enough material for first phase technological characterization and metallurgical testing and 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, timing and results of future resource estimates or future economic studies and the outcome of application for tenement areas.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 made by management and considered reasonable at the time such assumptions were made, 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 may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, 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 current annual information form and management's discussion and analysis available on SEDAR at www.sedar.com. 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: 86,374,336Fully Diluted: 94,388,643FOR FURTHER INFORMATION PLEASE CONTACT: Steve BurletonMBAC Fertilizer Corp.Vice President, Corporate Development416-367-2200investor@mbacfert.comwww.mbacfert.com