TORONTO, ONTARIO--(Marketwire - Jan. 31, 2011) - MBAC Fertilizer Corp. ("MBAC" or the "Company") (TSX:MBC) is pleased to announce that it has received approval from Banco Itau BBA S.A. ("Itau BBA") for a US$110 million project financing facility in connection with the development of its large- scale single superphosphate ("SSP") fertilizer project (the "Itafos Project" or the "Project") located in the State of Tocantins, Brazil. The facility is expected to be provided through the on-lending program of the Brazilian development bank (Banco Nacional de Desenvolvimento Economico e Social (BNDES)), which is the Brazilian development bank. Subject to BNDES approval and certain conditions Itau BBA has indicated that they will underwrite US$110M of project financing facility. The actual disbursement is subject to certain terms and conditions, including those provided in the indicative term sheet received in September 2010 (see September 7, 2010 news release).

In addition, further to a mandate letter received in October 2010, the International Finance Corporation ("IFC"), a member of the World Bank Group, has provided indications to the Company that it would be willing to provide US$25 million of project financing and US$20 million of equity financing in connection with the Project. The IFC has recently completed a site visit whereby it conducted technical, environmental, social and financial and market due diligence. The Company expects to receive a definitive term sheet from the IFC upon completion of their due diligence, expected in March 2011.

The proceeds from these financings, along with the cash on hand, will be sufficient to fully fund the expected future capital expenditures for the Itafos Project through to the commencement of commercial production in mid-2012.

Antenor Silva, President and CEO of MBAC stated "We are extremely pleased to see the enthusiasm demonstrated for the Project by Itau BBA. The support from both of our financial partners gives us great confidence that we will be in a position to proceed with the development of the Project once we receive the construction licence which is expected soon".

MBAC continues to advance the development of the Itafos Project and has commenced detailed engineering as well as the procurement of long lead items, including the sulphuric acid plant.

Update on Progress at the Santana Project

The drilling program at the Santana Project ("Santana Project") in the southern Para State, Brazil, continues to experience high grades consistent with the previously announced results. Additional two drill holes have yielded an average 17% P2O5 confirming the encouraging results from the first drill hole announced in MBAC's press release dated January 19, 2011. These preliminary results were obtained from a calibrated portable XRF analyzer and all of the recent drill samples are now subject to assaying at ALS, an independent external lab. These positive results obtained in the Santana Project have led the Company to plan for an additional 10,000 metres of drilling expected to be completed within the next six months.

The Santana Project consists of tenement areas covering approximately 90,000 hectares located in the southern Para State, approximately 80 kilometres away from the main route used for export of soya and other agricultural products to Europe and elsewhere. This main route also gives the Santana Project access to extensive farm land in the northern Mato Grosso State of Brazil, one of the fastest growing agricultural frontiers in the world.

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 applicable contents of this news release.

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 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. MBAC is well funded with approximately C$50 million, which will be used to develop the Itafos 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 http://www.mbacfert.com or at SEDAR at http://www.sedar.com.

Antenor Silva, President & Chief Executive Officer