NON-MERGER: BHP Billiton withdraws offer for PotashCorp

SASKATOON - Australian mining powerhouse BHP Billiton has withdrawn its $40-billion offer for the world's largest potash producer, Potash Corporation of Saskatchewan. The offer was deemed to not be a net benefit to Canada under terms of the Investment Canada Act. BHP had the option of changing and resubmitting its offer, but the company will not. BHP said it believes the "net benefit" test is impossible to satisfy.

For its part, PotashCorp issued this statement: "BHP Billiton's decision to withdraw its offer underscores the PotashCorp board of directors' unanimous belief that the BHP Billiton offer substantially undervalued PotashCorp and failed to reflect both the value of our premier position in a strategically vital industry and our future growth prospects."

BHP Billiton it will costs of approximately US$350 million it spent in its efforts will be recognized as an exceptional item in next month's interim accounts.

More information about each company can be found at their websites, www.PotashCorp.com and www.BHPBilliton.com.