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									                       Investor Presentation
                                   March 2012




Growth based on strong fundamentals
Forward-looking Statements


The contents of this presentation contain statements that may constitute
“forward-looking statements” within the meaning of applicable securities
legislation. Forward-looking statements may include financial and other
projections, as well as statements regarding future plans, objectives or
economic performance, or the assumptions underlying any of the
foregoing. Forward-looking information involves significant risks,
assumptions, uncertainties and other factors that may cause actual future
results or anticipated events to differ materially from those expressed or
implied in any forward-looking statements and accordingly, should not be
read as guarantees of future performance or results.
Actual results, performance or achievement could differ materially from
those expressed in, or implied by, any forward-looking statements made
and, accordingly, investors should not place undue reliance on any such
forward-looking statements. New factors emerge from time to time, and it
is not possible for management to predict all of such factors and to assess
in advance the impact of each such factor on Migao’s business.



                                                                              2
A Different Kind of Fertilizer Producer…


• Specialty Fertilizer Production (low-chloride)
    – Potassium Sulphate (SOP)
    – Potassium Nitrate (NOP)
    – Specialty Compound NPK + micronutrients and minerals

• Serving China’s High-value Crops
    – Fruits, Vegetables, Tobacco, Cotton, Flowers

• Strong growth profile
    – New production facilities near completion




                                                             3
Migao – At a Glance




       Operating facilities in China              7

       Employees                                 1,000

       Market cap (TSX: ‘MGO’)                  $200mm

       Funds raised since 2006 IPO              $140mm

       Percent owned by management, directors    35%




                                                         4
OUR VALUE PROPOSITION

Migao Enables Improved Crop Yields and Quality

                            Customer
        Products                                  Advantages
                           Applications

        Two core         High-value crops
        products            including          • Increases yield
   • Potassium            • Tobacco            • Enhances quality
     nitrate (NOP)
                          • Fruits             • Strengthens
   • Potassium
                          • Cotton               resistance to
     sulphate (SOP)
                                                 drought, disease
                          • Flowers
      Co-products                              • Lowers water
                          • Vegetables           usage
   • Ammonium
     chloride             • Electroplating     • Higher returns for
                                                 farmers
   • Hydrochloric acid    • Steel processing
                          • Water treatment


                                                                      5
Average Price per Tonne (Potassium Nitrate)



  RMB
  8,000


  6,000


  4,000


  2,000


     0
           F2007    F2008    F2009   F2010    F2011



                                                      6
Average Price per Tonne (Potassium Sulphate)



  RMB
  7,000


  5,500


  3,500


  1,500


     0
          F2007    F2008   F2009   F2010       F2011



                                                       7
Strong China Fundamentals Drive Industry Growth



             Drivers

•   Growing demand for higher
    quality food
     – 150M Chinese moved to               Long growth
       cities  higher income
                                         runway for Migao
     – “middle class” expanding
                                             products
•   Central government promotes
    agriculture growth
•   Increasing sophistication of
    farming practices




                                                            8
… Focusing on Higher Growth End Markets

      Annual Domestic Consumption Growth in End-markets

                                   15-17%




                ~3%




               Tobacco         Fruit and vegetables

                                                          9
1. MARKET LEADER

A Leading Player in Our Markets




       Supplier of         Supplier of      Importer of
    potassium nitrate       potassium          potash
     (NOP) in China     sulphate (SOP) in    into China
                              China



           #1                #2              #3




                                                          10
2: OPERATING FACILITIES

Facilities Serve Diverse Geographies / End Markets




                                         Changchun Migao
                                         Liaoning Migao

                                         Tianjin Migao

                                         Shanghai Migao
                                         Sichuan Migao / SQM JV
                                         Zunyi Migao

                                         Guangdong Migao



                                                                  11
4. CONSISTENT MARGINS

Business Model Delivers Consistent Margins


 30
                                                                      22-24%
                                                                      Target profit range


 20




 10




  0
        2005       2006   2007     2008     2009      2010     2011

                           Despite significant fluctuations in raw material costs
                                                                                            12
… With an Impressive Performance Record

                    Last 5 fiscal years (Ferilizer Production)
   Production                       Revenue                      Net Earnings
 (‘000’s tonnes)                      ($M)                           ($M)

             380                            $317
                                                                          $34.5




  120
                                                                 $8.6
                                 $58



  2006       2011                2006        2011                2006     2011


                                                                                  13
5. FINANCIAL RESOURCES

Strong Financial Position

                         (Third Quarter Ended December 31, 2011)


            Revenue                                                $97M

            Net Earnings                                           $4M

            Working capital                                        $206M

            Cash                                                   $10M

            Unused Credit lines                                    $70M

            Long term debt                                         Zero

                                                                           14
Clear Growth Strategy



1   Continue to grow core fertilizer business in China
        – target new end-markets


2   International expansion
        – cautious approach


3   Leverage customers and distribution channels
        – new products

4   Pursue vertical integration opportunities




                                                         15
  GROWTH: A CLOSER LOOK

  95% Capacity Growth

                                                                                              620
                                          Production                           100
                                          (‘000’s tonnes)

                                                                40
                                                40
                               20
               100                                                           • Zunyi
                                                            • Changchun      • 100k tonnes
 320                       • SQM jv        • Shanghai       • 40k tonnes     • Compound
                                           • 40k tonnes     • SOP              fertilizer
                           • 40k tonnes
           • Sichuan                       • SOP            • construction   • construction
                           • NOP
           • 100k tonnes                   • completed      • $5M            • $15M
                           • completed
           • compound      • $10M          • $10M
             fertilizer
           • completed
           • $8M




Dec. 2010                                                      Dec. 2011         Dec. 2012
                                                 All projects advancing on schedule
                                                                                               16
Migao: Corporate Governance Vital for a China-based
company in North America

  Key financial executives in Toronto with extensive
  public company expertise
     4 accountants and accounting student fluent in Mandarin and
     English in Toronto
     2 assistants in Beijing fluent in English and Mandarin

  Independent board with strong corporate
  governance experience
  Big-four accounting firm for internal audit and internal
  control reviews




                                                                   17
3: COMPETITIVE ADVANTAGES

A Different Kind of Fertilizer Producer…

• Niche market focus
     – develops and markets specialty, potash-based fertilizers to high value crops

• Unique characteristics
     – proprietary production process, business model that delivers
       consistent margins

• Secure supply of potash
     – 10 year agreement for 500,000 tonnes per year

• Strong growth profile
     – production set to increase >60% over next 2 years




                                                                                      18
                        www.migaocorp.com




Growth based on strong fundamentals

								
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