MBAC Fertilizer Corp. reported the results of an extensional and infill drilling campaign, aimed at testing the north-eastern portion of the Domingos target, located in close proximity to the beneficiation plant at the Itafos Arraias Project. The measured and indicated mineral resource estimate for the project now totals 75.8 million tonnes grading 5.0% P(2) O(5) up from the previously reported NI 43-101 measured and indicated mineral resource estimate of 58.8 million tonnes grading 5.0% P(2) O(5). The new drilling campaign totaled 4,551m of reverse circulation drilling and 768m of diamond drilling. In addition, the company has refined the geological studies and subsequent block modeling for the Canabrava Block. This has led to an increase in the tonnage and grade of the resource at the Canabrava Block. No additional drilling is expected to be done at the Canabrava Block during 2012, however the company believes that further drilling in all directions at the Canabrava Block has the potential to increase the current mineral resource estimate. The 2011 drilling campaign targeted the northern extension of the Domingos Block, and was aimed at converting indicated mineral resources into measured mineral resources in an area where the phosphate ore is relatively shallow and located close to the future beneficiation plant site. Infill drilling of the central parts of the Domingos Block has increased the geological confidence and resulted in the conversion of inferred resources into indicated mineral resources. The new drilling has confirmed the Domingos Block as a target along with the Sao Bento target to the north. The detailed engineering has shown that the project capital costs have increased in the range of 8-9% due to inflation, but are still in line with the expected accuracy of the feasibility study. The company expects construction of the project to be complete in fourth quarter of 2012 and the commencement of SSP production in the same quarter.