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<SEC-DOCUMENT>0000945234-05-000552.txt : 20050727
<SEC-HEADER>0000945234-05-000552.hdr.sgml : 20050727
<ACCEPTANCE-DATETIME>20050727172127
ACCESSION NUMBER:		0000945234-05-000552
CONFORMED SUBMISSION TYPE:	F-9/A
PUBLIC DOCUMENT COUNT:		7
FILED AS OF DATE:		20050727
DATE AS OF CHANGE:		20050727

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			METHANEX CORP
		CENTRAL INDEX KEY:			0000886977
		STANDARD INDUSTRIAL CLASSIFICATION:	INDUSTRIAL ORGANIC CHEMICALS [2860]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			A1
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		F-9/A
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-126770
		FILM NUMBER:		05978165

	BUSINESS ADDRESS:	
		STREET 1:		1800 WATERFRONT CENTER
		STREET 2:		200 BURRARD STREET
		CITY:			VANCOUVER BC CANADA
		STATE:			A1
		ZIP:			00000
		BUSINESS PHONE:		6046847500

	MAIL ADDRESS:	
		STREET 1:		1800 WATERFRONT CENTER
		STREET 2:		200 BURRARD STREET
		CITY:			VANCOUVER BC CANADA
</SEC-HEADER>
<DOCUMENT>
<TYPE>F-9/A
<SEQUENCE>1
<FILENAME>o17489fv9za.htm
<DESCRIPTION>AMENDMENT ONE TO FORM F-9
<TEXT>
<HTML>
<HEAD>
<TITLE>Amendment One to Form F-9</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 10pt;">
<B>As filed with the Securities and Exchange Commission on
July&nbsp;27, 2005</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="right" style="font-size: 10pt;">
<B>Registration No.&nbsp;333-126770</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt;">
<HR size="4" noshade color="#000000" style="margin-top: -5px">
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<HR size="1" noshade color="#000000" style="margin-top: -10px">
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<DIV align="center" style="font-size: 14pt; margin-top: 4pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>WASHINGTON, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 23%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>AMENDMENT NO. 1</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 12pt;">
<B>TO</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Form&nbsp;F-9</B>
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>REGISTRATION STATEMENT UNDER</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>THE SECURITIES ACT OF 1933</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 23%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Methanex Corporation</B>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<I>(Exact name of Registrant as specified in its charter)</I>
</DIV>
<FONT face="times new roman,times">

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 9pt; ">

<TR style="font-size: 1pt;">
    <TD width="32%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <B><FONT face="helvetica,arial">Canada</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <B><FONT face="helvetica,arial">2869</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <B><FONT face="helvetica,arial">Not Applicable</FONT></B></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <I><FONT face="helvetica,arial">(Province or other
    jurisdiction<BR>
    of incorporation or organization)</FONT></I></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <I><FONT face="helvetica,arial">(Primary Standard Industrial<BR>
    Classification Code Number)</FONT></I></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <I><FONT face="helvetica,arial">(I.R.S. Employer<BR>
    Identification Number, if applicable)</FONT></I></TD>
</TR>

</TABLE>
</CENTER>
</FONT>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 23%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 9pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>1800 Waterfront Centre, 200 Burrard Street, Vancouver,
British Columbia, Canada V6C 3M1</B>
</DIV>

<DIV align="center" style="font-size: 9pt;">
<B>(604)&nbsp;661-2600</B>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<I>(Address and telephone number of Registrant&#146;s principal
executive offices)</I>
</DIV>

<DIV align="center" style="font-size: 9pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>CT CORPORATION SYSTEM</B>
</DIV>

<DIV align="center" style="font-size: 9pt;">
<B>111 8th Avenue, 13th Floor, New York, New York 10011
(212)&nbsp;894-8700</B>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<I>(Name, address, including zip code, and telephone number,
including area code, of agent for service in the United
States)</I>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<I>Please send copies of all correspondence to:</I>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 23%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Copies to:</I></B>
</DIV>
<FONT face="times new roman,times">

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="34%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <B><FONT face="helvetica,arial">RICHARD J. BALFOUR<BR>
    McCARTHY T&#201;TRAULT LLP<BR>
    Pacific Centre, P.O. Box 10424<BR>
    Suite&nbsp;1300,<BR>
    777 Dunsmuir Street<BR>
    Vancouver, B.C., Canada<BR>
    V7Y 1K2<BR>
    (604) 643-7100</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <B><FONT face="helvetica,arial">KENNETH R. BLACKMAN<BR>
    FRIED, FRANK, HARRIS,<BR>
    SHRIVER &#38; JACOBSON LLP<BR>
    One New York Plaza<BR>
    New York, New York 10004<BR>
    (212) 859-8000</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <B><FONT face="helvetica,arial">CHRISTOPHER W. MORGAN<BR>
    SKADDEN, ARPS, SLATE,<BR>
    MEAGHER &#38; FLOM LLP<BR>
    222 Bay Street<BR>
    Suite 1750<BR>
    P.O. Box 258<BR>
    Toronto, Canada M5K 1J5<BR>
    (416) 777-4700</FONT></B></TD>
</TR>

</TABLE>
</CENTER>
</FONT>

<DIV align="center" style="font-size: 9pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Approximate date of commencement of proposed sale of the
securities to the public:</B>
</DIV>

<DIV align="center" style="font-size: 8pt;">
As soon as practicable after the effective date of this
Registration Statement.
</DIV>

<DIV align="center" style="font-size: 9pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Province of British Columbia, Canada</B>
</DIV>

<DIV align="center" style="font-size: 8pt;">
(Principal jurisdiction regulating this offering)
</DIV>

<DIV align="left" style="font-size: 8pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
It is proposed that this filing shall become effective (check
appropriate box):
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="2%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>A.&nbsp;</TD>
    <TD align="left">
    <FONT face="wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;upon
    filing with the Commission, pursuant to Rule&nbsp;467 (a) (if in
    connection with an offering being made contemporaneously in the
    United States and Canada).</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>B.&nbsp;</TD>
    <TD align="left">
    <FONT face="wingdings">&#254;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;at
    some future date (check the appropriate box below):</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>1.&nbsp;</TD>
    <TD align="left">
    <FONT face="wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;pursuant
    to Rule&nbsp;467 (b)&nbsp;on
    (&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)
    at
    (&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)
    (designate a time not sooner than 7 calendar days after filing).</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>2.&nbsp;</TD>
    <TD align="left">
    <FONT face="wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;pursuant
    to Rule&nbsp;467 (b)&nbsp;on
    (&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)
    at
    (&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)
    (designate a time 7 calendar days or sooner after filing)
    because the securities regulatory authority in the review
    jurisdiction has issued a receipt or notification of clearance
    on
    (&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;).</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>3.&nbsp;</TD>
    <TD align="left">
    <FONT face="wingdings">&#254;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;pursuant
    to Rule&nbsp;467 (b)&nbsp;as soon as practicable after
    notification of the Commission by the Registrant or the Canadian
    securities regulatory authority of the review jurisdiction that
    a receipt or notification of clearance has been issued with
    respect hereto.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>4.&nbsp;</TD>
    <TD align="left">
    <FONT face="wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;after
    the filing of the next amendment to this Form (if preliminary
    material is being filed).</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<DIV align="left" style="font-size: 8pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
If any of the securities being registered on this Form are to be
offered on a delayed or continuous basis pursuant to the home
jurisdiction&#146;s shelf prospectus offering procedures, check
the following
box:&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;
</FONT>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 23%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 8pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
<B>The Registrant hereby amends this Registration Statement on
such date or dates as may be necessary to delay its effective
date until the registration statement shall become effective as
provided in Rule&nbsp;467 under the Securities Act of 1933 or on
such date as the Commission, acting pursuant to
Section&nbsp;8(a) of the Act, may determine.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 8pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<HR size="1" noshade color="#000000" style="margin-top: -2px">
</DIV>

<DIV align="left" style="font-size: 10pt;">
<HR size="4" noshade color="#000000" style="margin-top: -10px">
</DIV>

<DIV align="left" style="font-size: 10pt;">

</DIV>

</FONT>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<FONT face="helvetica,arial">

<DIV align="center" style="font-size: 12pt;">
<B>PART&nbsp;I</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>INFORMATION REQUIRED TO BE</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>DELIVERED TO OFFEREES OR PURCHASERS</B>
</DIV>

</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<FONT face="helvetica,arial">

<TABLE width="100%" cellpadding="5" style="border: 3pt double #000000; margin-bottom: 6pt; font-size: 10pt"><TR><TD>
<FONT style="font-size: 8pt" color="#E8112D">The information in
this preliminary prospectus is not complete and may be changed.
These securities may not be sold until the registration
statement filed with the Securities and Exchange Commission is
effective. This preliminary prospectus is not an offer to sell
nor does it seek an offer to buy these securities in any
jurisdiction where the offer or sale is not
permitted.</FONT><FONT style="font-size: 8pt"> <BR>


</FONT>
</TD></TR></TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 1pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Subject to completion, Dated July&nbsp;27, 2005</B>
</DIV>
<FONT face="times new roman,times">

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 16pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="24%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="24%">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <BR>
    <IMG src="o17489methanac.jpg" alt="(METHANEX LOGO)"></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <B><FONT face="helvetica,arial">$150,000,000<BR>METHANEX CORPORATION<BR>% Senior Notes due 2015</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>
</FONT>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 23%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We will pay interest on the Notes
on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
each year, commencing
on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006. The Notes will mature
on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2015. We may redeem the Notes at any time, in whole or in part,
at 100% of their principal amount plus a make-whole premium
described in this prospectus. We also have the right to redeem
all of the Notes at 100% of their principal amount plus accrued
and unpaid interest to the date of redemption in the event of
certain changes affecting Canadian withholding taxes.
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 23%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>We are permitted to prepare this prospectus in accordance
with Canadian disclosure requirements, which are different from
those of the United States. We prepare our financial statements
in accordance with Canadian generally accepted accounting
principles, and they are subject to Canadian auditing and
auditor independence standards. As a result, they may not be
comparable to financial statements of United States
companies.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Owning the Notes may subject you to tax consequences both in
the United States and Canada. This prospectus may not describe
these tax consequences fully. You should read the tax discussion
under &#147;Tax Considerations&#148;.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Your ability to enforce civil liabilities under the United
States federal securities laws may be affected adversely because
we are incorporated in Canada, a majority of our officers and
directors and some of the experts named in this prospectus are
Canadian residents, and substantially all of our assets and the
assets of those officers, directors and experts are located
outside of the United States.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Neither the Securities and Exchange Commission nor any other
regulatory body has approved or disapproved of these securities,
or determined if this prospectus is truthful or complete. Any
representation to the contrary is a criminal offense.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>There is no market through which the Notes may be sold and
purchasers may not be able to resell Notes purchased under this
prospectus.</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 23%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 12pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Investing in the Notes involves risks. See &#147;Risk
Factors&#148; beginning on page&nbsp;10.</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 23%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>
<FONT face="times new roman,times">

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 3pt; ">

<TR style="font-size: 1pt;">
    <TD width="72%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">Per Note</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">Total</FONT></B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Initial public offering price
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">%</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Underwriting commission
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">%</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Proceeds, before expenses, to
    Methanex
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">%</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>
</FONT>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The initial public offering price set forth above does not
include accrued interest, if any. Interest on the Notes will
accrue
from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2005 and must be paid by the purchasers if the Notes are
delivered
after &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2005.
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 23%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Affiliates of the underwriters are lenders to us under a
revolving credit facility and to certain of our subsidiaries
under certain debt obligations. Consequently, we may be
considered to be a connected issuer of such underwriters under
applicable Canadian securities legislation. See &#147;Use of
Proceeds&#148; and &#147;Underwriting&#148;.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We expect that delivery of the Notes will be made to investors
in book-entry form through The Depository Trust&nbsp;Company in
New York, New York on or
about &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2005.
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 23%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Joint Book-Running Managers</I>
</DIV>

<DIV style="margin-top: 4pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 18pt;">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD align="left"><B>ABN&nbsp;AMRO&nbsp;INCORPORATED</B></TD>
    <TD align="right"><B>BNP PARIBAS</B></TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 23%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 11pt;">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD align="left"><B>CIBC WORLD MARKETS</B></TD>
    <TD align="right"><B>RBC CAPITAL MARKETS</B></TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Prospectus
dated &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2005.
</DIV>

</FONT>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<FONT face="helvetica,arial">

<DIV align="left" style="font-size: 10pt;">
<A name='101'></A>
</DIV>

<!-- link1 "SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Certain statements contained in this prospectus constitute
&#147;forward-looking statements&#148; within the meaning of the
United States Private Securities Litigation Reform Act of 1995.
When used in this prospectus, the words &#147;may&#148;,
&#147;would&#148;, &#147;could&#148;, &#147;will&#148;,
&#147;intend&#148;, &#147;plan&#148;, &#147;anticipate&#148;,
&#147;believe&#148;, &#147;estimate&#148;, &#147;expect&#148;,
and similar expressions, as they relate to us or our management,
are intended to identify forward-looking statements. These
statements reflect our current views with respect to future
events and are subject to certain risks, uncertainties and
assumptions. Many factors could cause our actual results,
performance or achievements to be materially different from any
future results, performance or achievements that may be
expressed or implied by such forward-looking statements,
including but not limited to the following, which are discussed
in greater detail under the heading &#147;Risk Factors&#148;:
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    cyclicality of the industry in which we operate and the
    volatility of the price of methanol;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    uncertainty of demand for methanol and its derivatives such as
    methyl tertiary butyl ether, or MTBE, and formaldehyde;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    availability and price of natural gas;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    methanol production and marketing risks, including operational
    disruption;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    successful identification, development and completion of capital
    expenditure projects;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    risks inherent with investments and operations in foreign
    jurisdictions;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    foreign exchange risks;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    actions of competitors; and</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    changes in laws or regulations.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Should one or more of these or other risks or uncertainties
materialize, or should assumptions underlying the
forward-looking statements prove incorrect, actual results,
performance or achievements may vary materially from those
described herein as intended, planned, anticipated, believed,
estimated or expected. We do not intend, and do not assume any
obligation, to update these forward-looking statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 36pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='102'></A>
</DIV>

<!-- link1 "PRO FORMA INTEREST COVERAGE" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PRO FORMA INTEREST COVERAGE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The interest coverage set forth below has been prepared and
included in this prospectus in accordance with the disclosure
requirements of applicable Canadian securities laws and has been
calculated on a pro forma basis after giving effect to the
issuance of the Notes and the repayment of our 7.75% Notes due
August&nbsp;15, 2005 from the proceeds of this offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The annual interest requirements on our long term debt (using
applicable interest and exchange rates) for the twelve months
ended December&nbsp;31, 2004, and for the twelve months ended
June&nbsp;30, 2005, were
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
and
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million,
respectively. Our earnings before deduction of interest on long
term debt and income taxes for the twelve months ended
December&nbsp;31, 2004, and for the twelve months ended
June&nbsp;30, 2005, amounted to
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
and
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million,
respectively. For the twelve months ended December&nbsp;31, 2004
and June&nbsp;30, 2005, these amounts
were &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;times
and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;times
annual interest requirements, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our EBITDA for the twelve months ended December&nbsp;31, 2004,
and for the twelve months ended June&nbsp;30, 2005, amounted to
$434&nbsp;million and $501&nbsp;million, respectively. For the
twelve months ended December&nbsp;31, 2004 and June&nbsp;30,
2005, these amounts
were &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;times
the annual interest requirements, respectively. EBITDA is a
supplemental non-GAAP measure and differs from the most
comparable GAAP measure. See note 2 under &#147;Summary
Historical Consolidated Financial and Operating Data&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 36pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='103'></A>
</DIV>

<!-- link1 "CREDIT RATINGS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>CREDIT RATINGS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Notes have been assigned a rating
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by
Standard &#38; Poor&#146;s Rating Services, a division of The
McGraw-Hill Companies, Inc., a rating
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by
Moody&#146;s Investors Service, Inc. and a rating
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by
Fitch, Inc. S&#38;P rates debt instruments by rating categories
from a high of AAA to a low of D, with a &#147;+&#148; or
&#147;&#150;&#148; indicating relative strength within each
rating category. Moody&#146;s rates debt instruments by rating
categories from a high of Aaa to a low of D, with a
&#147;1&#148;, &#147;2&#148; or &#147;3&#148; indicating
relative strength within each rating category. Fitch rates debt
instruments by rating categories from a high of AAA to a low of
D, with a &#147;+&#148; or &#147;&#150;&#148; indicating
relative strength within each rating category. Prospective
purchasers of Notes should consult with the rating agencies with
respect to the interpretation of the foregoing ratings and the
implication of those ratings. The credit ratings accorded to the
Notes are not recommendations to buy, sell or hold the Notes and
may be subject to revision or withdrawal by S&#38;P,
Moody&#146;s or Fitch at any time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any decisions by these or other rating agencies to downgrade the
credit ratings accorded to the Notes in the future could result
in increased interest and other financial expenses relating to
future borrowings by us and could restrict our ability to obtain
additional financing on satisfactory terms.
</DIV>

<P align="center" style="font-size: 10pt;">i

</FONT>

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<FONT face="helvetica,arial">

<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV align="left" style="font-size: 10pt;">
<A name='104'></A>
</DIV>

<!-- link1 "SUMMARY" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SUMMARY</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>The following section summarizes more detailed information
presented later in this prospectus or incorporated by reference
herein. You should read the entire prospectus, including, in
particular, the &#147;Risk Factors&#148; beginning on
page&nbsp;10, as well as the documents incorporated by reference
into this prospectus, including our consolidated financial
statements and the related notes. In this prospectus, except
where otherwise indicated, all amounts are expressed in United
States dollars, references to &#147;$&#148; are to United States
dollars and references to &#147;Cdn$&#148; are to Canadian
dollars. EBITDA is a supplemental non-GAAP measure and differs
from the most comparable GAAP measure (see note&nbsp;2 under
&#147;Summary Historical Consolidated Financial and Operating
Data&#148;). In this prospectus, except where otherwise
indicated or the context otherwise requires, references to
&#147;we&#148;, &#147;us&#148;, &#147;our&#148; and similar
terms, as well as references to &#147;Methanex&#148; and the
&#147;Company&#148;, refer to Methanex Corporation and its
subsidiaries.</I>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Our Company</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Overview</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are the world&#146;s largest producer and marketer of
methanol, a liquid chemical produced primarily from natural gas
and used mostly as a chemical feedstock in the manufacture of
other products. In 2004, our sales volume of 7.4&nbsp;million
tonnes represented 22% of worldwide methanol demand. Our core
methanol production facilities are located in Chile and Trinidad
and are underpinned with low cost, long-term natural gas
contracts. We believe that our access to low cost natural gas
combined with our extensive global marketing and distribution
system provide us with a competitive advantage in our industry.
We believe that this competitive advantage has enabled us to
establish long-term relationships with global customers that
provide us with greater stability and security of demand for our
methanol, as well as marketing and transportation synergies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended December&nbsp;31, 2004, our average realized
methanol price was $237 per tonne and we generated
$236&nbsp;million of net income and $434&nbsp;million of EBITDA
on revenues of $1.7&nbsp;billion. For the six months ended
June&nbsp;30, 2005, our average realized methanol price was
$259&nbsp;per&nbsp;tonne and we generated net income of
$139&nbsp;million and $254&nbsp;million of EBITDA on revenues of
$849&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Facilities</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Over the past several years, we have shifted production from
higher cost plants to new, low cost plants. With the completion
of our Atlas plant, a joint venture with BP, in 2004 and our
Chile&nbsp;IV plant in 2005 (which is currently in the start up
phase of production), our low cost hubs in Trinidad and Chile
represent over 85% of our total production capacity. In
addition, we currently operate two methanol production
facilities in New Zealand and Canada. We also source additional
methanol produced by others throughout the world in order to
meet customer needs and support our marketing efforts.
</DIV>
</DIV>

<P align="center" style="font-size: 10pt;">1

</FONT>

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<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth certain operating data and other
information for our methanol operations at each of our existing
facilities:
</DIV>
<FONT face="times new roman,times">

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="36%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B><FONT face="helvetica,arial">Production</FONT></B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">Commenced</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">Operating</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">H1</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">H1</FONT></B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">Production</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">Capacity</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2002</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2003</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2004</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2004</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2005</FONT></B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">(thousands of</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="19">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">tonnes/year)</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B><FONT face="helvetica,arial">(thousands of tonnes)</FONT></B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Chile&nbsp;&#151;
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Chile I
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1988</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">925</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">895</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">775</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">809</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">415</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">415</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Chile II
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1996</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1,010</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">997</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">983</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">931</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">460</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">485</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Chile III
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1999</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1,065</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1,040</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">946</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">952</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">487</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">513</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Chile IV(1)
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap><FONT face="helvetica,arial">June 2005</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">840</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">16</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2"><FONT style="font-size: 9pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">3,840</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">2,932</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">2,704</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">2,692</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1,362</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1,429</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Trinidad&nbsp;&#151;
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Titan(2)
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">2000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">850</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">577</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">740</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">410</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">337</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Atlas (63.1% interest)
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap><FONT face="helvetica,arial">July 2004</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1,073</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">421</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">487</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2"><FONT style="font-size: 9pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1,923</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">577</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1,161</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">410</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">824</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">New Zealand&nbsp;&#151;
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Motunui(3)
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1985</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1,814</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">819</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">590</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">268</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Waitara Valley
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1983</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">530</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">467</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">149</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">498</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">250</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">223</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2"><FONT style="font-size: 9pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">530</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">2,281</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">968</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1,088</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">518</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">223</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Canada&nbsp;&#151;
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Kitimat(4)
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1982</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">500</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">478</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">449</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">486</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">243</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">239</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Total
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">6,793</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">5,691</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">4,698</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">5,427</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">2,533</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">2,715</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>
</FONT>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    We recently completed construction of our Chile IV plant and it
    is currently in the start&nbsp;up phase of production.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    We acquired 100% of the Titan plant effective May&nbsp;1, 2003
    and the table indicates 2003 production from that date.
    Titan&#146;s total annual production in 2003 was 870,186 tonnes.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    Our Motunui facility was shut down in 2004. Prior to shutdown,
    this facility had an annual operating capacity of
    1.9&nbsp;million tonnes.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(4)&nbsp;</TD>
    <TD align="left">
    We are currently exploring alternatives for our Kitimat facility
    which could result in its shutdown.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Marketing and distribution</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We sell methanol through our extensive global marketing and
distribution system with marketing offices in North America
(Dallas and Vancouver), Europe (Brussels and Billingham,
England), Asia Pacific (Auckland, Shanghai, Tokyo and Seoul) and
Latin America (Santiago, Chile). Currently, about 90% of our
sales are covered by long-term or rolling one-year sales
contracts. In order to reduce the impact of cyclical pricing on
our earnings, we have positioned ourselves with certain global
customers under long-term contracts where prices are fixed or
linked to our costs plus a margin. These contracts are a
component of our prudent approach to liquidity. Our customers
include many major global chemical companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Methanol is transported from our plants by pipeline to adjacent
deepwater ports for shipping. We manage a fleet of vessels to
ship our methanol and have entered into short-term and long-term
time charters covering vessels with a range of capacities. We
supplement this through contracts of affreightment and spot
arrangements. Our shipping arrangements, together with the
storage and terminal facilities that we own or lease in North
America, Europe and Asia, provide us with flexibility in the
management of our distribution networks and enable us to service
our customers with greater reliability.
</DIV>
</DIV>

<P align="center" style="font-size: 10pt;">2

</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<FONT face="helvetica,arial">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Natural gas supply</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Natural gas is the principal feedstock for methanol and accounts
for a significant portion of its total production costs. Natural
gas for our Chile and Trinidad facilities is supplied under
long-term, low cost contracts. The contracts for Chile I, II,
III and IV are with suppliers in Argentina and Chile and
terminate between 2025 and 2029. In Trinidad, the contract for
Titan expires in 2014 and the Atlas contract expires in 2024.
Pricing of natural gas under these contracts varies with
methanol prices which we believe enables these facilities to be
competitive throughout the methanol price cycle. During the
Southern Hemisphere winter months of May through August in 2004
and 2005, we experienced and continue to experience curtailments
of supply of natural gas to our Chile facilities which have
caused us to reduce our production at these facilities. To
mitigate the impact of current curtailments, we have rescheduled
regular maintenance turnarounds for the Chile&nbsp;II and III
plants, initially planned for later in 2005, to take place
during July and August 2005. In addition, we have had
discussions with Argentine and Chilean governmental authorities
and natural gas suppliers to explore alternatives to address the
current and any future potential curtailments. However, we
cannot assure you that our discussions will lead to successful
actions to address this situation. See &#147;Risk
Factors&nbsp;&#151; Risks Related to our Business and Our
Industry&nbsp;&#151; We are vulnerable to reductions in the
availability of supply and fluctuations in the cost of natural
gas&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We currently source natural gas for our New Zealand and Canadian
facilities on a short-term contract basis.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>The Methanol Industry</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Methanol is primarily used as a chemical feedstock in the
manufacture of other products. Approximately 80% of all methanol
is used in the production of formaldehyde, acetic acid and a
wide variety of other chemical derivatives. These derivatives
are used in the manufacture of a wide range of products
including building materials, foams, resins and plastics. The
remainder of methanol demand comes from the fuel sector,
principally as a component in the production of methyl tertiary
butyl ether, or MTBE, which is blended with gasoline as a source
of octane and as an oxygenate to reduce the amount of tailpipe
emissions from motor vehicles. Over the last several years,
demand for MTBE has been significantly affected by a ban on the
use of MTBE in several states in the United States as well as
other regulatory developments. Future regulatory actions in the
United States or elsewhere could lead to a further decrease in
the global demand for MTBE.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Methanol is a typical commodity chemical and the methanol
industry is characterized by cycles of oversupply resulting in
lower prices and idling of capacity, followed by periods of
shortage and rising prices as demand exceeds supply until
increased prices lead to new plant investment or the re-start of
idled capacity. Industry restructuring has played a role in
balancing supply and demand in the methanol industry and has
contributed to a prolonged period of above-average methanol
pricing since 2000.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Our Competitive Strengths</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Low cost producer</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We believe that a low cost structure is critical to maintaining
our strong competitive position. We believe our access to low
cost natural gas and our initiatives in reducing our
distribution costs have allowed us to be a low cost producer of
methanol.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Global presence and scale</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are the largest supplier of methanol to each of the major
international markets of North America, Asia Pacific and Europe,
as well as Latin America. We believe our global presence has
enabled us to secure contracts with global customers. We believe
this presence also enhances our
</DIV>
</DIV>

<P align="center" style="font-size: 10pt;">3

</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<FONT face="helvetica,arial">
<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV align="left" style="font-size: 10pt;">
knowledge of the dynamics of the worldwide methanol industry, in
turn enabling us to respond quickly to changing market trends
and to better develop our long-term strategies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Operational expertise</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The high reliability rate of our plants is an essential factor
in keeping our costs low and generating revenue and we believe
it enhances our position as a secure, global provider of
methanol.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Our Strategy</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Continue to position ourselves as a low cost producer</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We continue to take steps to strengthen our position as a low
cost global producer. Over the last several years, we have
shifted a large portion of our production from higher cost
plants to new, low cost plants. Our 1.7&nbsp;million tonne Atlas
methanol plant and our 850,000 tonne Titan plant provide us with
a low cost production hub in Trinidad. With our recently
completed Chile IV plant, our low cost production hub in Chile
has an annual production capacity of 3.8&nbsp;million tonnes
and, together with our hub in Trinidad, represents over 85% of
our total production capacity. In addition, we have taken
significant steps to reduce our methanol distribution costs and
are continuously investigating opportunities to further improve
the efficiency and cost-effectiveness of distributing methanol
to our customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Maintain our world leadership in methanol marketing,
logistics and sales</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We sell methanol through an extensive global marketing and
distribution system, which has enabled us to become the
world&#146;s largest supplier of methanol to each of the major
international markets of North America, Asia Pacific and Europe,
as well as Latin America. Our leadership has enabled us to
participate in industry restructuring initiatives. We have also
established industry-reported Methanex reference prices in each
major methanol market. We continue to pursue opportunities which
allow us to maintain our leadership.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Focus on operational excellence</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We believe that methanol consumers view reliability and quality
of supply as critical to the success of their businesses. By
maintaining and improving our plant operating reliability and
global supply chain, we believe we have differentiated ourselves
from our competitors in the industry.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Maintain financial discipline</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We believe it is important to maintain financial flexibility
throughout the methanol price cycle and we have adopted a
prudent approach to financial management. We have established a
disciplined approach to capital spending by setting minimum
target return criteria for methanol capacity additions and other
investments.
</DIV>
</DIV>

<P align="center" style="font-size: 10pt;">4

</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<FONT face="helvetica,arial">
<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>The Offering</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As used in this summary of the offering, references to
&#147;we&#148;, &#147;us&#148;, &#147;our&#148; and similar
terms, as well as references to &#147;Methanex&#148;, refer only
to Methanex Corporation and its successors and not to any of its
subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt;">

<TR>
    <TD width="28%"></TD>
    <TD width="1%"></TD>
    <TD width="71%"></TD>
</TR>

<TR>
    <TD valign="top">
    Issuer</TD>
    <TD></TD>
    <TD valign="top">
    Methanex Corporation.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Notes offered</TD>
    <TD></TD>
    <TD valign="top">
    $150,000,000 principal amount
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%
    Senior Notes.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Maturity</TD>
    <TD></TD>
    <TD valign="top">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2015.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Issue price</TD>
    <TD></TD>
    <TD valign="top">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%
    plus accrued interest, if any,
    from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2005.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Interest</TD>
    <TD></TD>
    <TD valign="top">
    Annual
    rate: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Interest payment dates</TD>
    <TD></TD>
    <TD valign="top">
    Semi-annually
    on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
    each year, commencing
    on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2006.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Ranking</TD>
    <TD></TD>
    <TD valign="top">
    The Notes will be general unsecured obligations of Methanex and
    will rank equally in right of payment with all of our other
    unsubordinated and unsecured indebtedness, including our 7.75%
    Notes due August&nbsp;15, 2005 and our 8.75% Notes due
    August&nbsp;15, 2012. The Notes, however, will be structurally
    subordinated to any indebtedness and other liabilities of our
    subsidiaries. As of June&nbsp;30, 2005, we had no secured debt
    outstanding and our subsidiaries had approximately
    $331&nbsp;million of liabilities (which amount includes
    approximately $144&nbsp;million of trade payables).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Optional redemption</TD>
    <TD></TD>
    <TD valign="top">
    We will have the option to redeem the Notes in whole or in part
    at any time, at a redemption price equal to the greater of
    (1)&nbsp;100% of the principal amount of the Notes and
    (2)&nbsp;the sum of the present values of the remaining
    scheduled payments of principal and interest on the Notes
    (exclusive of interest accrued to the date of redemption)
    discounted to the redemption date, calculated on a semi-annual
    basis (assuming a 360-day year of twelve 30-day months), at the
    Treasury Rate (as defined in the indenture under which we will
    issue the Notes, which we refer to in this prospectus as the
    Indenture)
    plus &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;basis
    points, together in each case with accrued interest to the date
    of redemption. See &#147;Description of the Notes&nbsp;&#151;
    Optional Redemption.&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Additional amounts</TD>
    <TD></TD>
    <TD valign="top">
    All payments with respect to the Notes made by us will be made
    without withholding or deduction for Canadian taxes unless
    required by law or by the interpretation or administration
    thereof, in which case, subject to certain exceptions, we will
    pay such Additional Amounts (as defined in the Indenture) as may
    be necessary, so that the net amount received by the holders
    after such withholding or deduction will not be less than the
    amount that would have been received in the absence of such
    withholding or deduction. See &#147;Description of the
    Notes&nbsp;&#151; Additional Amounts for Canadian Withholding
    Taxes&#148;.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Redemption in the event of changes in Canadian withholding taxes</TD>
    <TD></TD>
    <TD valign="top">
    If we become obligated to pay Additional Amounts as a result of
    certain changes affecting Canadian withholding taxes, we</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt;">5

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt;">

<TR>
    <TD width="28%"></TD>
    <TD width="1%"></TD>
    <TD width="71%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    may redeem all, but not less than all, of the Notes at 100% of
    their principal amount plus accrued and unpaid interest to the
    date of redemption. See &#147;Description of the
    Notes&nbsp;&#151; Redemption for Changes in Canadian Withholding
    Taxes&#148;.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Mandatory offer to purchase</TD>
    <TD></TD>
    <TD valign="top">
    Upon the occurrence of a Change of Control Triggering Event,
    which occurs only if a Change of Control and a Rating Decline
    (as such terms are defined in the Indenture) both occur, and
    provided that the Notes have not had, at any time, an Investment
    Grade Rating (as defined in the Indenture), we are required to
    offer to purchase all outstanding Notes at 101% of their
    principal amount plus accrued and unpaid interest to the date of
    purchase. See &#147;Description of the Notes&nbsp;&#151; Certain
    Covenants&nbsp;&#151; Change of Control&#148;.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Basic covenants of the indenture</TD>
    <TD></TD>
    <TD valign="top">
    The Indenture will, among other things, restrict our ability and
    the ability of certain of our subsidiaries to:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;incur liens;</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;enter into sale/leaseback transactions;</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;in the case of certain of our subsidiaries, incur
    indebtedness without guaranteeing the Notes;</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;enter into or conduct transactions with unrestricted
    subsidiaries; and</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &#149;&nbsp;amalgamate or consolidate with, or merge with or
    into, or transfer all or substantially all of our assets or
    those of certain of our subsidiaries to any person.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    These covenants are subject to important qualifications and
    limitations. For more details, see the section &#147;Description
    of the Notes&nbsp;&#151; Certain Covenants&#148;.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Use of proceeds</TD>
    <TD></TD>
    <TD valign="top">
    The net proceeds from the sale of the Notes offered hereby are
    estimated to be approximately
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million.
    We intend to use the estimated net proceeds, together with cash
    on hand, to repay in full our 7.75% Notes due August&nbsp;15,
    2005 upon the maturity of such notes. Pending such application,
    such net proceeds will be invested in short-term money market
    instruments.</TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B> Risk Factors</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You should carefully consider all of the information in this
prospectus. In particular, you should read the specific risk
factors under &#147;Risk Factors&#148; for a discussion of
certain risks involved with an investment in the Notes.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B> Financial Statement Presentation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our consolidated financial statements are reported in United
States dollars but have been prepared in accordance with
accounting principles generally accepted in Canada, or Canadian
GAAP. To the extent applicable to our consolidated financial
statements, these principles conform in all material respects
with accounting principles generally accepted in the United
States, or U.S. GAAP, except as described in the supplemental
information to our annual consolidated financial statements
incorporated by reference in this prospectus. As a foreign
private issuer under U.S. securities laws, we are not required
to prepare a quarterly reconciliation with U.S. GAAP and
therefore U.S. GAAP figures have not been presented for the six
month periods ended June&nbsp;30, 2004 and 2005. Financial
information for fiscal years prior to 2004 has been restated to
reflect the retroactive adoption of new accounting standards and
presentation. See note&nbsp;1 to our annual consolidated
financial statements incorporated by reference in this
prospectus.
</DIV>
</DIV>

<P align="center" style="font-size: 10pt;">6

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<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Summary Historical Consolidated Financial and Operating
Data</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You should read the summary historical consolidated financial
data set forth below in conjunction with our consolidated
financial statements and the related notes and management&#146;s
discussion and analysis incorporated by reference in this
prospectus. The statement of income data and the balance sheet
data as at and for the three years ended December&nbsp;31, 2004,
have been derived from our annual consolidated financial
statements, which for the two years ended December&nbsp;31,
2004, are incorporated by reference in this prospectus. The
statement of income data as at and for the six months ended
June&nbsp;30, 2004 and 2005 have been derived from our unaudited
interim consolidated financial statements which, except for the
balance sheet as at June&nbsp;30, 2004, are incorporated by
reference in this prospectus. The financial information as at
and for the six months ended June&nbsp;30, 2004 and 2005
includes, in the opinion of our management, all adjustments
which are necessary for the fair presentation of this unaudited
financial information. The interim results may not be indicative
of the results for a full year.
</DIV>
<FONT face="times new roman,times">

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B><FONT face="helvetica,arial">Fiscal year ended</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B><FONT face="helvetica,arial">Six months</FONT></B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B><FONT face="helvetica,arial">December&nbsp;31,</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B><FONT face="helvetica,arial">ended June&nbsp;30,</FONT></B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2002</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2003</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2004</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2004</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2005</FONT></B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B><FONT face="helvetica,arial">(in millions, except volume and price data)</FONT></B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><FONT face="helvetica,arial">Statement of income
    data:</FONT></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I><FONT face="helvetica,arial">Canadian GAAP</FONT></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Revenue
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1,042</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1,420</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1,719</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">805</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">849</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Cost of sales and operating expenses
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">776</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1,034</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1,284</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">617</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">595</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Depreciation and amortization
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">111</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">96</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">79</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">37</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">41</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Operating income before undernoted
    items
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">155</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">290</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">356</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">151</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">213</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Interest expense(1)
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(29</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(39</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(31</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(13</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(20</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Interest and other income
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">10</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">14</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">7</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">4</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">2</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Other expense(2)
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(88</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(179</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Income before income taxes
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">48</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">86</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">332</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">142</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">195</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Income tax expense
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(25</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(85</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(96</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(43</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(56</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Net income
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">23</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">236</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">99</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">139</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I><FONT face="helvetica,arial">U.S. GAAP</FONT></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Net income (loss)
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">21</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(32</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">230</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">N/A</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">N/A</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><FONT face="helvetica,arial">Balance sheet data (end of
    period):</FONT></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I><FONT face="helvetica,arial">Canadian GAAP</FONT></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Cash and cash equivalents
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">421</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">288</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">210</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">202</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">266</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Total assets
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1,820</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">2,082</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">2,125</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">2,005</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">2,157</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Total long-term debt
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">547</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">778</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">609</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">609</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">605</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Shareholders&#146; equity
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">908</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">786</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">949</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">885</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1,010</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I><FONT face="helvetica,arial">U.S. GAAP</FONT></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Total assets
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1,912</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">2,159</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">2,170</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">N/A</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">N/A</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Shareholders&#146; equity
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">971</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">839</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">975</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">N/A</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">N/A</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="23">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><FONT face="helvetica,arial">Other financial data:</FONT></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I><FONT face="helvetica,arial">Canadian GAAP</FONT></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Cash flows from operating activities
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">190</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">361</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">336</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">158</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">209</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">EBITDA(3)
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">266</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">386</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">434</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">188</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">254</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Capital expenditures:
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Capital maintenance, catalyst,
    turnarounds and other
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">18</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">36</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">23</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">7</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">31</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Plant and equipment under
    construction or development(4)
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">142</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">207</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">134</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">87</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">32</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Total capital expenditures
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">160</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">243</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">157</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">94</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">63</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I><FONT face="helvetica,arial">U.S. GAAP</FONT></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">EBITDA(3)
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">286</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">392</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">429</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">N/A</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">N/A</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>
</FONT>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<DIV align="right" style="font-size: 8pt;">
<I>(footnotes on next page)</I>
</DIV>
</DIV>

<P align="center" style="font-size: 10pt;">7

</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<FONT face="helvetica,arial">
<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<FONT face="times new roman,times">

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="52%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B><FONT face="helvetica,arial">Fiscal year ended</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B><FONT face="helvetica,arial">Six months</FONT></B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B><FONT face="helvetica,arial">December&nbsp;31,</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B><FONT face="helvetica,arial">ended June&nbsp;30,</FONT></B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2002</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2003</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2004</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2004</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2005</FONT></B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B><FONT face="helvetica,arial">(in millions, except volume and price data)</FONT></B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><FONT face="helvetica,arial">Other selected operating
    data:</FONT></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Methanol production volume
    (thousands of tonnes):
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">5,691</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">4,698</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">5,427</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">2,533</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">2,715</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Methanol sales volume (thousands of
    tonnes):
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Produced product
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">5,686</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">4,933</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">5,298</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">2,460</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">2,707</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Purchased product
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">809</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1,392</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1,960</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1,135</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">565</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Commission sales
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">725</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">254</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">169</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">303</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Total methanol sales volume
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">7,220</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">6,579</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">7,427</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">3,595</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">3,575</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Methanex average realized methanol
    price (dollars per tonne)(5)
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">160</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">224</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">237</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">224</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">259</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>
</FONT>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Interest expense breaks down as follows:</TD>
</TR>

</TABLE>
<FONT face="times new roman,times">

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="59%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B><FONT face="helvetica,arial">Six months</FONT></B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B><FONT face="helvetica,arial">Fiscal year ended</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B><FONT face="helvetica,arial">ended</FONT></B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B><FONT face="helvetica,arial">December&nbsp;31,</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B><FONT face="helvetica,arial">June&nbsp;30,</FONT></B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2002</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2003</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2004</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2004</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2005</FONT></B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B><FONT face="helvetica,arial">(in millions)</FONT></B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Interest expense before capitalized
    interest
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">38</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">59</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">55</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">27</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">27</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Less capitalized interest
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(9</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(20</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(24</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(14</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(7</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">29</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">39</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">31</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">13</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">20</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>
</FONT>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Other expense for 2002 consists of a $115&nbsp;million asset
    restructuring charge related to the write-off of the Fortier,
    Louisiana methanol facility and a $27&nbsp;million reduction in
    the accrual for site restoration for the New Zealand facilities.
    Other expense for 2003 consists of a $129 million non-cash
    impairment charge related to the carrying value of property,
    plant and equipment and related assets in New Zealand and
    Medicine Hat, Alberta, $10&nbsp;million in costs primarily for
    employee termination benefits to reduce the workforce at the New
    Zealand operations and for costs to re-mothball the Medicine Hat
    facility, and $40&nbsp;million for a write-off of plant and
    equipment under development related to our decision not to
    proceed with the development of a methanol plant located in
    Western Australia.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    EBITDA should be considered in addition to, and not as a
    substitute for, operating income, net income, cash flows and
    other measures of financial performance and liquidity reported
    in accordance with generally accepted accounting principles.
    EBITDA differs from the most comparable GAAP measure, cash flows
    from operating activities, primarily because it does not include
    changes in non-cash working capital and the utilization of
    prepaid natural gas, cash flows related to interest expense,
    interest and other income, income taxes, asset restructuring
    charges and other unusual items. Our method of computing EBITDA
    may not be comparable to similarly titled measures reported by
    other companies. The following table shows a reconciliation of
    EBITDA to cash flows from operating activities:</TD>
</TR>

</TABLE>
<FONT face="times new roman,times">

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="56%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B><FONT face="helvetica,arial">Six months</FONT></B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B><FONT face="helvetica,arial">Fiscal year ended</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B><FONT face="helvetica,arial">ended</FONT></B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B><FONT face="helvetica,arial">December&nbsp;31,</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B><FONT face="helvetica,arial">June&nbsp;30,</FONT></B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2002</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2003</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2004</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2004</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2005</FONT></B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B><FONT face="helvetica,arial">(in millions)</FONT></B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Cash flows from operating activities
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">190</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">361</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">336</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">158</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">209</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Add (deduct):
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Changes in non-cash working capital
    and the utilization of pre-paid&nbsp;natural&nbsp;gas
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">55</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(31</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">39</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">5</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">6</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Other non-cash operating expenses
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(14</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(19</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(13</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(4</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(9</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Asset restructuring
    charges&nbsp;&#151; cash&nbsp;settlements
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">10</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Interest expense
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">29</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">39</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">31</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">13</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">19</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Interest and other income
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(10</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(14</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(7</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(4</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(1</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Income
    taxes&nbsp;&#151;&nbsp;current
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">16</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">40</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">48</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">20</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">30</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">EBITDA&nbsp;&#151; Canadian GAAP
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">266</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">386</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">434</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">188</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">254</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">U.S. GAAP adjustments
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">20</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">6</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">(5</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT face="helvetica,arial">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">N/A</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">N/A</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">EBITDA&nbsp;&#151; U.S. GAAP
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">286</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">392</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">429</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">N/A</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">N/A</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>
</FONT>
</DIV>

<P align="center" style="font-size: 10pt;">8

</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<FONT face="helvetica,arial">
<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>(4)&nbsp;</TD>
    <TD align="left">
    Plant and equipment under construction or development represents
    capital expenditures on the following projects:</TD>
</TR>

</TABLE>
<FONT face="times new roman,times">

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="59%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B><FONT face="helvetica,arial">Six months</FONT></B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B><FONT face="helvetica,arial">Fiscal year ended</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B><FONT face="helvetica,arial">ended</FONT></B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B><FONT face="helvetica,arial">December&nbsp;31,</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B><FONT face="helvetica,arial">June&nbsp;30,</FONT></B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2002</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2003</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2004</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2004</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">2005</FONT></B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B><FONT face="helvetica,arial">(in millions)</FONT></B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Atlas (63.1% interest)
    (Trinidad)&nbsp;&#151;&nbsp;construction
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">99</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">74</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">54</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">40</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Chile IV
    (Chile)&nbsp;&#151;&nbsp;construction
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">23</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">116</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">80</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">47</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">32</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Asia Pacific
    (Australia)&nbsp;&#151;&nbsp;development (abandoned)
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">20</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">17</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Plant and equipment under
    construction or development
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">142</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">207</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">134</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">87</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">32</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>
</FONT>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>(5)&nbsp;</TD>
    <TD align="left">
    The Methanex average realized methanol price is calculated as
    revenue, net of commissions earned, divided by total sales
    volumes of produced and purchased methanol. Prior to 2005,
    in-market distribution costs were deducted from revenue when
    calculating average realized methanol price. The presentation of
    average realized methanol price for prior periods has been
    restated. See &#147;&#151;&nbsp;Financial Statement
    Presentation&#148;.</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt;">9

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<DIV align="left" style="font-size: 10pt;">
<A name='105'></A>
</DIV>

<!-- link1 "RISK FACTORS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>RISK FACTORS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>You should carefully consider the risk factors set forth
below as well as the other information contained in this
prospectus before purchasing the Notes offered by this
prospectus. Any of the following risks, as well as risks and
uncertainties currently not known to us, could materially
adversely affect our business, financial condition or results of
operations. As used in the risk factors described under
&#147;&#151;&nbsp;Risks Related to the Notes and Our
Structure&#148;, &#147;we&#148;, &#147;us&#148;, &#147;our&#148;
and similar terms refer only to Methanex Corporation and its
successors and not to any of its subsidiaries.</I>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Risks Related to Our Business and Our Industry</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>The methanol industry is subject to commodity price
volatility.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The methanol business is a highly competitive commodity
industry, and prices are affected by supply/demand fundamentals.
Methanol prices have historically been, and are expected to
continue to be, characterized by significant volatility. New
methanol plants have recently commenced commercial production
and more are expected to be built in the future. This will
increase overall production capacity. Additional methanol supply
can also become available in the future by restarting or
relocating idle methanol plants, carrying out major expansions
of existing plants or debottlenecking existing plants to
increase their production capacity. Historically, higher cost
plants have shutdown or been idled when methanol prices are low
but there can be no assurance that this trend will occur in the
future. Demand for methanol is in large part dependent upon
levels of industrial production and changes in general economic
conditions. Changes in environmental, health and safety
requirements could also lead to a decrease in methanol demand.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are not able to predict future methanol supply/demand
balances, market conditions or prices, all of which are affected
by numerous factors beyond our control. As a result, we cannot
provide assurance that demand for methanol will increase
sufficiently to absorb additional production capacity, or
increase at all, or that the price of methanol will not decline.
Since methanol is the only product we produce and market, a
decline in the price of methanol would have an adverse effect on
our results of operations and financial condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Future demand for methanol in the production of certain
derivatives is uncertain.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>MTBE.</B> Methanol for the production of MTBE represented in
2004 approximately 20% of global methanol demand. In the United
States, methanol for the production of MTBE represented in 2004
6% of global methanol demand. Gasoline containing MTBE has
leaked into groundwater in the United States, principally from
underground gasoline storage tanks, and has been discharged
directly into drinking water reservoirs from recreational
watercraft. The presence of MTBE in some water supplies has led
several states in the United States, including California, New
York and Connecticut, to ban the use of MTBE as a gasoline
component. At the U.S. federal government level, a legislative
proposal which may have the effect of curtailing MTBE use has
been approved by a House-Senate conference committee; however,
the legislation is still subject to final approval of the
U.S.&nbsp;Congress and the President of the United States. We
believe that legislative actions could reduce, or possibly
eliminate, the demand for methanol for MTBE in the United
States, which could have an adverse effect on our results of
operations and financial condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In 2002, the European Union issued a final risk assessment
report on MTBE that did not recommend a ban of MTBE. However, it
recommended several risk reduction measures relating to storage
and handling of MTBE-containing fuel. In addition, governmental
efforts in some European Union countries to promote bio-fuels
and alternative fuels through legislation and tax policy is
putting competitive pressures on the use of MTBE in gasoline. In
2004, several European MTBE production facilities commenced
producing ethyl tertiary butyl ether, or ETBE, to take advantage
of these tax incentives.
</DIV>

<P align="center" style="font-size: 10pt;">10

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We cannot assure you that legislation banning or restricting the
use of MTBE, or promoting alternatives to MTBE, will not be
passed or that negative public perception of MTBE outside of the
United States may not develop, either of which would lead to a
further decrease in the global demand for MTBE.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Formaldehyde.</B> Approximately 38% of global methanol demand
is used in the production of formaldehyde. In 2004, the
International Agency for Research on Cancer upgraded
formaldehyde to a Group 1 &#147;known&#148; human carcinogen. It
was previously classified as a Group 2 &#147;probable&#148;
human carcinogen. In 2004, the U.S. Environmental Protection
Agency, or EPA, also began the process of preparing an internal
study on the reclassification of formaldehyde. The EPA is
awaiting findings from an updated National Cancer Institute, or
NCI, study before finalizing its review of formaldehyde. We are
unable to determine at this time what the outcome of the NCI
study will be or whether the EPA will reclassify formaldehyde.
Any reclassification of formaldehyde could reduce future
methanol demand which could have an adverse effect on our
results of operations and financial condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>We are vulnerable to reductions in the availability of
supply and fluctuations in the cost of natural gas.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Natural gas is the principal feedstock for methanol production,
and accounts for a significant portion of our cost of sales and
operating expenses. Accordingly, our operations depend in large
part on the availability and security of supply and the price of
natural gas. If we are unable to obtain continued access to
sufficient natural gas for any of our plants on commercially
acceptable terms or if we experience significant interruptions
in the supply of contracted natural gas, we could be forced to
reduce production or close plants which could have an adverse
effect on our results of operations and financial condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our four Chile plants have an annual production capacity of
3.8&nbsp;million tonnes and account for approximately 60% of our
annual production capacity. Natural gas for our Chile facilities
is supplied under long-term take-or-pay contracts which
terminate between 2025 and 2029. Approximately 62% of the
natural gas for our Chile facilities is currently sourced from
suppliers in Argentina (which is currently expected to increase
to approximately 79% in 2009). Argentina has been experiencing
an energy crisis brought about primarily as a result of price
regulation of domestic natural gas and a devaluation of the
Argentine peso against the U.S. dollar. As a result, domestic
demand for natural gas has increased and, at the same time, low
prices have discouraged new supply and investments in
infrastructure. This has resulted in curtailments of contracted
natural gas supply from Argentina to Chile. In 2004, these
curtailments resulted in the loss of approximately 50,000 tonnes
of methanol production at our Chile facilities, all of which
occurred during the peak season for domestic gas demand in
Argentina during the Southern Hemisphere winter months of May
through August. In May 2005, we lost a small amount of methanol
production over a two-day period due to gas curtailments.
However, in mid-June, curtailments recommenced and were more
significant than those experienced in 2004. These curtailments
have ranged widely in June and July, from days when we received
all of the nominated gas we requested for our Chile plants to
other days when more than half of our nominated gas was
curtailed, including gas to supply the Chile IV plant which is
currently in the start&nbsp;up phase. To date in 2005, we have
experienced a total reduction of approximately
80,000&nbsp;tonnes of methanol production, compared to what we
would otherwise have produced which takes into account planned
gradual production increases associated with the start up of
Chile IV and excludes foregone production associated with a
regular maintenance turnaround for Chile II. We are not able to
predict what the total production loss will be in 2005 as a
result of gas curtailments, and we cannot assure you that
production losses in 2005 will not persist beyond the Southern
Hemisphere winter months. We believe that recent curtailments
have been influenced by actions of the Argentine government,
including the reallocation of gas entitlements, as well as by
cold weather conditions, greater domestic demand in Argentina,
the timing of increases in gas production and related
infrastructure and other dynamics related to the energy crisis
in Argentina. These and other factors that could affect gas
supply are difficult to
</DIV>

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<DIV align="left" style="font-size: 10pt;">
predict and are beyond our control. We cannot assure you that
natural gas supply to our Chile facilities will not be
significantly impacted in the future. If natural gas supply to
our Chile facilities is impacted, our methanol production could
be reduced which would have an adverse effect on our results of
operations and financial condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In Trinidad, we own the 850,000 tonne per year Titan plant and
63.1% of the 1.7&nbsp;million tonne per year Atlas plant in a
joint venture with BP. Natural gas for Titan and Atlas is
supplied under two long-term take-or-pay contracts with the
Trinidad state-owned energy company which terminate in 2014 and
2024, respectively. Although Titan and Atlas are located close
to other natural gas reserves in Trinidad, which we believe we
could access after the expiration or early termination of these
natural gas supply contracts, we cannot provide assurance that
we would be able to secure access to such natural gas under
long-term contracts on commercially acceptable terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Prior to 2003, the natural gas for our New Zealand facilities
was sourced primarily from the Maui field under contract with
the New Zealand government and the owners of the field. As a
result of the redetermination of the gas reserves of the Maui
field in 2003, we lost substantially all of our remaining
natural gas entitlements from the Maui field. In November 2004,
this resulted in the shutdown of our Motunui site. The Motunui
site represents 1.9&nbsp;million tonnes of our total New Zealand
operating capacity of 2.4&nbsp;million tonnes. We have
sufficient natural gas contracted for 2005 to produce up to
400,000 tonnes of methanol at our 530,000 tonne per year Waitara
Valley plant. We continue to seek other supplies of natural gas
to supplement this production and to extend the life of the New
Zealand plants; however, there can be no assurance that we will
be able to secure additional gas on commercially acceptable
terms to allow us to operate the plants after 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Natural gas for our 500,000 tonne per year Kitimat, British
Columbia, facility is currently purchased on a short-term basis.
North American natural gas prices are set in a competitive
market and can fluctuate widely. Sustained high natural gas
prices are currently having an adverse affect on the operating
margins and competitive position of our Kitimat facility. We are
currently exploring alternatives for our Kitimat facility which
could result in a shutdown of this plant. However, we are
obligated to supply ammonia under an offtake agreement with the
former owner of the ammonia production assets located adjacent
to this plant, which limits our flexibility to shut down the
plant prior to December&nbsp;31, 2005. In addition, if we shut
down this plant, we will be required to make a buy-out payment
to the public utility that transports natural gas to the plant,
and we will incur employee severance and other costs. The
buy-out payment is Cdn$25&nbsp;million starting November&nbsp;1,
2005 and reduces monthly thereafter.
</DIV>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Our business is subject to many operational risks for
    which we may not be adequately insured.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A substantial portion of all of our revenues are derived from
the sale of methanol produced at our plants. As a result, our
business is subject to the risks of operating methanol
production facilities and the related storage and transportation
of hazardous materials, such as unforeseen equipment breakdowns,
interruptions in the supply of natural gas and other feedstocks,
power failures, human error, loss of port facilities, pipeline
leaks and ruptures, fires, mechanical failure, labor
difficulties, remediation complications, discharges or releases
of toxic or hazardous substances or gases and other
environmental risks, explosions, storage tank leaks, unscheduled
downtime, transportation interruptions, chemical spills,
inclement weather and natural disasters, or any other event,
including any event beyond our reasonable control, which could
result in a prolonged shutdown of any of our plants or impede
our ability to deliver methanol to our customers. A prolonged
plant shutdown at any of our major facilities could adversely
affect our revenues and operating income. Additionally,
disruptions in our distribution system could adversely affect
our revenues and operating income. In addition, some of these
hazards may cause personal injury and loss of life, severe
damage to or destruction of property and equipment and
environmental damage, and may result in suspension of operations
and the imposition of civil, regulatory or criminal penalties.
Although we maintain insurance, including business interruption
insurance, we cannot provide assurance that we will not incur
losses beyond the limits of, or outside the coverage of, such
</DIV>

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<DIV align="left" style="font-size: 10pt;">
insurance. From time to time, various types of insurance for
companies in the chemical and petrochemical industries have not
been available on commercially acceptable terms or, in some
cases, have been unavailable. We cannot provide assurance that
in the future we will be able to maintain existing coverage or
that premiums will not increase substantially.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>We may not be able to successfully identify, develop and
    complete new capital projects.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As part of our strategy to strengthen our position as a low cost
global producer of methanol, we completed construction of the
Atlas facility at our production hub in Trinidad in 2004 and
recently completed construction at the Chile IV expansion of our
production hub in Chile. We intend to continue to pursue new
opportunities to enhance our strategic position in the methanol
industry. For example, we are developing a new methanol project
in Egypt but, as noted below, have not yet made a final decision
to proceed with this project.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our ability to successfully identify, develop and complete new
capital projects is subject to a number of risks, including
finding and selecting favorable locations for new facilities
where sufficient natural gas is available through long-term
contracts with acceptable commercial terms, obtaining project or
other financing on satisfactory terms, developing and not
exceeding acceptable project cost estimates, constructing and
completing the projects within the contemplated schedules and
other risks commonly associated with the design, construction
and start up of large complex industrial projects. We cannot
assure you that we will be able to identify and develop new
methanol projects or, if we decide to proceed with a project,
that the anticipated cost of construction will not be exceeded
or that it will commence commercial production within the
anticipated schedule, if at all.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In particular, we cannot assure you that the Chile IV plant will
not encounter disruptions or other difficulties during its start
up phase or that the expected costs of this project will not be
exceeded. Further, we do not expect to make a final decision to
proceed with our proposed project in Egypt before 2006, and we
could incur significant development costs for this project but
ultimately determine not to proceed, which would result in a
write-off of these costs.
</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>We are subject to risks inherent in foreign
    operations.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We currently have substantial operations outside of North
America, including in Chile, Trinidad, New Zealand, Europe and
Asia. We are also developing a methanol project in Egypt, but
have not made a final decision with respect to this project. We
are subject to risks inherent in foreign operations such as:
loss of revenue, property and equipment as a result of
expropriation, nationalization, war, insurrection, corruption
and other political risks; increases in duties, taxes and
governmental royalties and renegotiation of contracts with, and
the ability to obtain necessary permits from, governmental
entities (including permits to export natural gas from Argentina
to supply our Chile facilities); as well as changes in laws and
policies governing operations of foreign-based companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, because we derive substantially all of our revenues
from production and sales by subsidiaries outside of Canada, the
payment of dividends or the making of other cash payments or
advances by these subsidiaries to us may be subject to
restrictions or exchange controls on the transfer of funds in or
out of the respective countries or result in the imposition of
taxes on such payments or advances. We have organized our
foreign operations in part based on certain assumptions about
various tax laws (including capital gains and withholding
taxes), foreign currency exchange and capital repatriation laws
and other relevant laws of a variety of foreign jurisdictions.
While we believe that such assumptions are reasonable, we cannot
provide assurance that foreign taxing or other authorities will
reach the same conclusion. Further, if such foreign
jurisdictions were to change or modify such laws, we could
suffer adverse tax and financial consequences.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our trade in methanol is subject to import duties in certain
jurisdictions. We cannot assure you that duties that we are
currently subject to will not increase, that duties will not be
levied in other
</DIV>

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<DIV align="left" style="font-size: 10pt;">
jurisdictions in the future or that we will be able to mitigate
the impact of current or future duties, if levied.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>We are exposed to fluctuations in foreign
    currencies.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The dominant currency in which we conduct business is the U.S.
dollar, which is also our reporting currency. The most
significant components of our costs are natural gas and ocean
shipping. Most of these costs are incurred in U.S. dollars.
Certain of our underlying feedstock and fuel costs, operating
costs and capital expenditures, however, are incurred in
currencies other than the U.S. dollar, principally the New
Zealand dollar, the Canadian dollar, the Chilean peso, the
Trinidad and Tobago dollar and the Euro. We are exposed to
increases in the value of these currencies that could have the
effect of increasing the U.S. dollar equivalent of cost of sales
and operating expenses and capital expenditures. A portion of
our revenue is earned in Euros and British pounds. We are
exposed to declines in the value of these currencies compared to
the U.S.&nbsp;dollar which could have the effect of decreasing
the U.S. dollar equivalent of our revenue.
</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Competition from other methanol producers is intense and
    could reduce our market share and harm our financial
    performance.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The methanol industry is highly competitive. Methanol is a
global commodity, and we believe that customers base their
purchasing decisions principally on the delivered price of
methanol, reliability of supply and quality of service. Some of
our competitors are not dependent for revenues on a single
product and some have greater financial resources than we do.
Our competitors also include state-owned enterprises. These
competitors may be better able than we are to withstand price
competition and volatile market conditions.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Government regulations relating to the protection of the
    environment could increase our costs of doing business.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The countries in which we operate have laws and regulations, to
which we are subject, governing the environment and the
sustainable management of natural resources as well as the
handling, storage, transportation and disposal of hazardous or
waste materials. We are also subject to laws and regulations
governing the import, export, use, discharge, storage, disposal
and transportation of toxic substances. The products we use and
produce are subject to regulation under various health, safety
and environmental laws. Non-compliance with any of these laws
and regulations may give rise to work orders, fines,
injunctions, civil liability and criminal sanctions. In
addition, the plants we operate or may operate in the future
must secure environmental permits, which permits could be
revoked or not renewed should the plants not comply with
applicable laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Laws and regulations protecting the environment have become more
stringent in recent years and may, in certain circumstances,
impose absolute liability rendering a person liable for
environmental damage without regard to negligence or fault on
the part of such person. These laws and regulations may also
expose us to liability for the conduct of, or conditions caused
by, others, or for our own acts which complied with applicable
laws at the time such acts were performed. We cannot predict the
ultimate costs and timing of environmental liabilities,
including costs associated with changes to current regulatory
standards. Liability under environmental laws relating to
contaminated sites can be imposed retroactively and on a joint
and several basis. A liable party could be held responsible for
all costs at a site, whether currently or formerly owned or
operated and regardless of fault, knowledge, timing of the
contamination, cause of the contamination, percentage of
contribution to the contamination or the legality of the
original disposal. We could incur significant costs, including
clean-up costs, natural resource damages, civil or criminal
fines and sanctions and third-party claims, as a result of past
or future violations of, or liabilities under, environmental
laws. We cannot provide assurance that we will not incur
material costs or liabilities as a result of such laws or
changes to such laws.
</DIV>

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<B>Risks Related to the Notes and Our Structure</B>
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Our structure as a holding company could adversely affect
    our ability to meet our obligations under the Notes.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are structured primarily as a holding company with limited
material business operations, sources of income or assets of our
own other than the shares of our subsidiaries. The Notes will be
our obligations exclusively. Unless certain covenants in the
Indenture become applicable, our subsidiaries will not guarantee
the payment of principal or of interest on the Notes and the
Notes will therefore be structurally subordinated to the
obligations of our subsidiaries as a result of our being
structured as a holding company. In the event of an insolvency,
liquidation or other reorganization of any of our subsidiaries,
our creditors (including the holders of the Notes) will not have
any right to proceed against the assets of that subsidiary or to
cause the liquidation or bankruptcy of such subsidiary under
applicable bankruptcy laws. Creditors of such subsidiary would
be entitled to payment in full from its assets before we would
be entitled to receive any distribution from such assets. Except
to the extent that we may ourselves be a creditor with
recognized claims against a subsidiary, claims of creditors of
that subsidiary will have priority with respect to the assets
and earnings of that subsidiary over the claims of our
creditors, including claims under the Notes. As of June&nbsp;30,
2005, our subsidiaries had approximately $331&nbsp;million of
liabilities (which amount includes approximately
$144&nbsp;million of trade payables).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, as a result of our holding company structure, our
operating cash flow and our ability to service our debt,
including the Notes, are dependent upon the operating cash flow
of our subsidiaries and the payment of funds by our subsidiaries
to us in the form of dividends, loans or otherwise. Our
subsidiaries are distinct legal entities and have no obligation,
contingent or otherwise, to pay any amounts due under the Notes
or to make any funds available therefor, whether by dividends,
interest, loans, advances or other payments. In addition, the
payment of dividends and the making of loans, advances and other
payments to us by our subsidiaries may be subject to statutory
or contractual restrictions, are contingent upon the earnings of
our subsidiaries and are subject to various business and other
considerations.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Our debt service requirements may affect our ability to
    fund our business.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As at June&nbsp;30, 2005, after giving effect to the sale of the
Notes offered by this prospectus and the application of the net
proceeds thereof, together with cash on hand, to repay in full
our existing 7.75% Notes due August&nbsp;15, 2005 upon maturity
of such notes, we would have had total indebtedness of
approximately $505&nbsp;million. The Indenture and our credit
facility permit us and our subsidiaries to incur additional
indebtedness, including secured indebtedness, subject to
limitations. Our level of indebtedness could increase our
vulnerability to general adverse economic and industry
conditions, place us at a disadvantage compared to those of our
competitors that have less debt, and limit our flexibility in
planning for, or reacting to, changes in our business and
industry.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our ability to make payments on and to refinance our
indebtedness, including the Notes, and to fund our operations,
working capital and capital expenditures will depend on our
ability to generate cash in the future. This is subject to
general economic, industry, financial, competitive, legislative,
regulatory and other factors that are beyond our control. In
particular, global or regional economic conditions could cause
the price of methanol to fall and hamper our ability to make
interest payments on or repay our indebtedness, including the
Notes. We may need to refinance all or a portion of our
indebtedness, including the Notes, on or before maturity. We
cannot assure you that we will be able to refinance any of our
indebtedness, including the Notes, on commercially acceptable
terms, if at all.
</DIV>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Restrictions in our debt agreements could limit our growth
    and our ability to respond to changing conditions.</I></B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our new senior credit facility and the Indenture contain a
number of significant covenants, which will limit our ability,
among other things, to:
</DIV>

<DIV align="left"><FONT size="1">

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    merge or enter into certain other business combination
    transactions;</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    create certain liens on our assets to secure debt;</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    enter into sale and leaseback transactions; and</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    incur additional debt.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, our new senior credit facility will require us to
maintain certain financial ratios and satisfy certain financial
condition tests and may require us to take action to reduce our
debt or take some other action should we not satisfy these
financial ratios or tests.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
These restrictions could limit our ability to obtain future
financings, make needed capital expenditures, withstand a future
downturn in our business or the economy in general, or otherwise
conduct necessary corporate activities. We may also be prevented
from taking advantage of business opportunities that arise
because of the limitations that the restrictive covenants under
our new senior credit facility and the Indenture impose on us.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A breach of any of these covenants could result in a default
under the applicable debt agreement. A default, if not waived,
could result in acceleration of the debt outstanding under the
agreement and in a default with respect to, and acceleration of,
the debt outstanding under other debt agreements. The
accelerated debt would become immediately due and payable. If
that should occur, we may not be able to pay all such debt,
including the Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>We may not be able to
finance an offer to purchase the Notes and other indebtedness
upon the occurrence of a Change of Control Triggering
Event.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon the occurrence of a Change of Control Triggering Event, as
defined in the Indenture, and provided that the Notes have never
had, at any time, an Investment Grade Rating, as defined in the
Indenture, we will be required to offer to purchase all
outstanding Notes at a price in cash equal to 101% of the
aggregate principal amount of the Notes, plus accrued and unpaid
interest thereon. See &#147;Description of the Notes &#151;
Certain Covenants &#151; Change of Control&#148;. However, we
may not have or may not be able to obtain on commercially
reasonable terms, or at all, sufficient funds at such time to
make the required purchase of these securities.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>It may be difficult for you to enforce liabilities against
    us based solely upon the federal securities laws of the United
    States.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are organized under the laws of Canada and our principal
executive office is located in Vancouver, British Columbia. The
majority of our directors and officers, and some of the experts
named in this prospectus, are residents of Canada, and a
substantial portion of their assets and our assets are located
outside the United States. As a result, it may be difficult for
you to effect service of process within the United States upon
the directors, officers and experts, or to enforce against them
judgments of United States courts based upon civil liability
under the federal securities laws of the United States. There is
doubt as to the enforceability in Canada of judgments against us
or against any of our directors, officers or experts, in
original actions or in actions for enforcement of judgments of
United States courts, based solely upon the federal securities
laws of the United States.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>There is currently no active trading market for the Notes.
    If an active trading market does not develop for the Notes, you
    may not be able to resell them.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
No active trading market currently exists for the Notes and none
may develop. We do not intend to apply for the listing of the
Notes on any securities exchange or quotation system. As a
result, an active trading market may not develop for the Notes.
If an active trading market for the Notes does not develop, it
could have an adverse effect on the market price and your
ability to resell the Notes.
</DIV>

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<A name='106'></A>
</DIV>

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<B>USE OF PROCEEDS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We estimate the net proceeds from the sale of the Notes offered
by this prospectus, after deducting estimated underwriting
commissions and expenses, will be approximately
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million. We intend to
use all of the estimated net proceeds, together with cash on
hand, to repay in full our 7.75% Notes due August&nbsp;15, 2005
upon the maturity of such notes. Pending such application, such
net proceeds will be invested in short-term money market
instruments.
</DIV>

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<A name='107'></A>
</DIV>

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<B>CAPITALIZATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth our cash and cash equivalents and
our capitalization as at June&nbsp;30, 2005 (1)&nbsp;on an
actual basis and (2)&nbsp;as adjusted to reflect the sale of the
Notes offered by this prospectus and the application of the
estimated net proceeds thereof, together with cash on hand, to
repay in full our 7.75% Notes due August&nbsp;15, 2005 upon the
maturity of such notes. This table should be read in conjunction
with management&#146;s discussion and analysis,
&#147;Description of Certain Indebtedness&#148; and our
unaudited interim consolidated financial statements and related
notes appearing elsewhere or incorporated by reference in this
prospectus.
</DIV>
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<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="66%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B><FONT face="helvetica,arial">As at June&nbsp;30, 2005</FONT></B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">Actual</FONT></B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">As Adjusted</FONT></B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B><FONT face="helvetica,arial">(in millions)</FONT></B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Cash and cash equivalents
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">266</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">166</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Short term debt:
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Current maturities on long term
    debt (7.75% Notes due August&nbsp;15, 2005)
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">250</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Atlas limited recourse debt
    facilities(1)
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">11</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">11</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Total short term debt
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">261</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">11</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Long term debt:
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Senior unsecured credit facility(2)
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">8.75% Notes due August&nbsp;15, 2012
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">200</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">200</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Atlas limited recourse debt
    facilities(1)
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">144</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">144</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Notes offered by this prospectus
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">150</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Total long term debt
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">344</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">494</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Total debt
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">605</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">505</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Shareholders&#146; equity:
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Capital stock and contributed
    surplus
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">522</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">522</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Retained earnings
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">488</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">488</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Total shareholders&#146; equity
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1,010</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1,010</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Total capitalization
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1,615</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1,515</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>
</FONT>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Represents our proportionate share. The limited recourse debt
    facilities of Atlas are described as limited recourse as they
    are secured only by the assets of our joint venture with BP. See
    &#147;Description of Certain Indebtedness&nbsp;&#151; Atlas
    Limited Recourse Debt Facilities&#148;.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Total availability of $250&nbsp;million, expiring 2010.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">17

</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<FONT face="helvetica,arial">

<DIV align="left" style="font-size: 10pt;">
<A name='108'></A>
</DIV>

<!-- link1 "DESCRIPTION OF CERTAIN INDEBTEDNESS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>DESCRIPTION OF CERTAIN INDEBTEDNESS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Existing Notes</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In 1995, we issued $250&nbsp;million of 7.75% Notes due
August&nbsp;15, 2005, or the 7.75% Notes, under the Indenture.
In 2002, we issued $200&nbsp;million of 8.75% Notes due
August&nbsp;15, 2012, or the 8.75%&nbsp;Notes, under the
Indenture. These existing notes pay interest semi-annually on
February&nbsp;15 and August&nbsp;15 of each year and rank
equally in right of payment with all other senior indebtedness,
including the Notes offered by this prospectus. We intend to
repay in full our 7.75% Notes upon maturity of such notes with
the net proceeds from the sale of the Notes offered by this
prospectus and from cash on hand.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The covenants applicable to the 8.75% Notes are substantially
the same as those that will be applicable to the Notes offered
by this prospectus, except that: (1)&nbsp;the 8.75% Notes are
only redeemable if we are obligated to pay Additional Amounts
(as defined herein) as a result of changes affecting Canadian
withholding taxes, (2)&nbsp;the 8.75% Notes are subject to a
Change of Control covenant regardless of whether such notes have
an Investment Grade Rating (as defined in the Indenture), and
(3)&nbsp;the definition of Unrestricted Subsidiaries, as it
applies to the 8.75%&nbsp;Notes, only permits us to designate
subsidiaries as unrestricted at the time of acquisition or
formation of such subsidiaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Bank Indebtedness</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On June&nbsp;3, 2005, we finalized a new credit facility with a
syndicate of banks. The credit facility, which is unsecured and
currently undrawn, provides for up to $250&nbsp;million in
revolving loans and letters of credit, ranks equally in right of
payment with all of Methanex Corporation&#146;s unsubordinated
and unsecured indebtedness, including the Notes offered by this
prospectus, and expires in 2010. Prior to expiration, funds
available under the credit facility may be borrowed, repaid and
reborrowed without premium or penalty. Borrowings under the
facility bear interest at a floating rate, which can be either a
base rate or, at our option, a LIBOR rate, plus an applicable
margin in either case. Under the credit facility, we are
required to pay a commitment fee on the difference between the
amounts actually borrowed and the committed amounts. The credit
facility requires us to comply with a debt to capitalization
ratio and an interest coverage ratio. We are currently in
compliance with both ratios. The credit agreement contains
customary affirmative and negative covenants, representations,
warranties and events of default, including but not limited to
payment defaults, breaches of representations and warranties,
covenant defaults, cross defaults and certain events of
bankruptcy and insolvency.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Atlas Limited Recourse Debt Facilities</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Atlas Methanol Company Unlimited, in which we own a 63.1%
interest, has senior debt obligations in the aggregate amount of
$231&nbsp;million and subordinated debt obligations in the
aggregate amount of $15&nbsp;million, incurred for the purposes
of financing a portion of the costs of construction of our Atlas
facility. All such obligations are secured by a first fixed and
floating charge over all of the property and assets of Atlas.
Atlas is also required to maintain a number of restricted
accounts, including a debt service reserve account in the amount
of six month&#146;s debt service. The master agreement, which
governs all of Atlas&#146;s senior debt obligations, contains
customary affirmative and negative covenants, representations,
warranties and events of default, including but not limited to
payment defaults, breaches of representations and warranties,
covenant defaults, cross defaults and certain events of
bankruptcy and insolvency. Atlas Methanol Company Unlimited and
its direct parent are Unrestricted Subsidiaries under the
Indenture.
</DIV>

<P align="center" style="font-size: 10pt;">18

</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<FONT face="helvetica,arial">

<DIV align="left" style="font-size: 10pt;">
<A name='109'></A>
</DIV>

<!-- link1 "DESCRIPTION OF THE NOTES" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>DESCRIPTION OF THE NOTES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Notes will be issued under the Indenture, dated as of
July&nbsp;20, 1995, as supplemented, between us and The Bank of
New York (formerly United States Trust Company of New York), as
Trustee. The statements under this caption relating to the Notes
and the Indenture are summaries and do not purport to be
complete, and are subject to, and are qualified in their
entirety by reference to, all the provisions of the Indenture,
including the definitions of certain terms therein. The
Indenture is by its terms subject to and governed by the U.S.
Trust Indenture Act of 1939, as amended. Where reference is made
to particular provisions of the Indenture or to defined terms
not otherwise defined herein, such provisions or defined terms
are incorporated herein by reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In this description, &#147;we&#148;, &#147;us&#148;,
&#147;our&#148; and similar terms, as well as references to
&#147;Methanex&#148;, refer only to Methanex Corporation and our
successors and not to any of our subsidiaries.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>General</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Notes will be our general unsecured obligations and will
mature
on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2015. The Notes will be initially issued in a total principal
amount of $150,000,000. We may issue additional notes of the
same series under the Indenture from time to time after this
offering, without the consent of the holders of the Notes. The
Notes and any additional notes of this series subsequently
issued under the Indenture will be treated as a single class for
all purposes under the Indenture, including, without limitation,
waivers, amendments, redemptions and offers to purchase.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Interest on the Notes will accrue at the rate
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%
per annum and will be payable semi-annually
on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
each year, commencing
on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006. The Notes will provide for us to pay interest on overdue
principal and, to the extent lawful, on overdue installments of
interest at the above rate per annum, plus 1%. Interest on the
Notes will be computed on the basis of a 360-day year comprised
of twelve 30-day months. The yearly rate of interest that is
equivalent to the rate payable under the Notes is the rate
payable multiplied by the actual number of days in the year and
divided by 360 and is disclosed herein solely for the purpose of
providing the disclosure required by the <I>Interest
Act</I>(Canada).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Principal of, and premium, if any, and interest on, the Notes
will be payable, and the Notes may be presented for registration
of transfer and exchange, at the office or agency maintained by
us for that purpose in the Borough of Manhattan, the City of New
York, provided, however, that at our option, payment of interest
may be made by check mailed to the address of the person
entitled thereto at such address as shall appear in the register
of Notes, and at the option of the registered holder of the
Notes, by wire transfer to an account designated by the
registered holder. The Trustee will initially act as registrar.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
There will be no mandatory sinking fund payments for the Notes.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Notes will rank equally in right of payment with all other
of our unsubordinated and unsecured indebtedness. The Notes,
however, will be structurally subordinated to the liabilities of
our subsidiaries. See &#147;Risk Factors &#151;&nbsp;Risks
Related to the Notes and Our Structure&#148;.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Additional Amounts for Canadian Withholding Taxes</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All payments made by us under or with respect to the Notes must
be made free and clear of and without withholding or deduction
for or on account of any present or future tax, duty, levy,
impost, assessment or other governmental charge imposed or
levied by or on behalf of the Government of Canada or of any
province or territory thereof or by any authority or agency
therein or thereof having power to tax (hereinafter
&#147;Taxes&#148;), unless we are required to withhold or deduct
Taxes by law or by the interpretation or administration thereof.
If we are so required to withhold or deduct any amount for or on
account of Taxes from any payment made under or with respect to
the Notes, we will pay such additional amounts (&#147;Additional
Amounts&#148;) as may be necessary so that the net
</DIV>

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<DIV align="left" style="font-size: 10pt;">
amount received by each holder of the Notes (including
Additional Amounts) after such withholding or deduction will not
be less than the amount the holder of the Notes would have
received if such Taxes had not been withheld or deducted;
<I>provided, however,</I> that no Additional Amounts will be
payable with respect to a payment made to a holder of the Notes
(an &#147;Excluded Holder&#148;) (1)&nbsp;with which we do not
deal at arm&#146;s length (within the meaning of the <I>Income
Tax Act </I>(Canada)) at the time of making such payment or
(2)&nbsp;which is subject to such Taxes by reason of its being
connected with Canada or any province or territory thereof
otherwise than by the mere holding of Notes or the receipt of
payments thereunder. We will also make such withholding or
deduction and remit the full amount deducted or withheld to the
relevant authority in accordance with applicable law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We will furnish to holders of the Notes, within 30&nbsp;days
after the date the payment of any Taxes is due pursuant to
applicable law, certified copies of tax receipts evidencing such
payment by us. We will indemnify and hold harmless each holder
of Notes (other than an Excluded Holder) and upon written
request reimburse such holder of Notes for the amount of
(1)&nbsp;any Taxes so levied or imposed and paid by such holder
as a result of payments made under or with respect to the Notes,
(2)&nbsp;any liability (including penalties, interest and
expenses) arising therefrom or with respect thereto, and
(3)&nbsp;any Taxes imposed with respect to any reimbursement
under (1) or (2), but excluding any such Taxes on such
holder&#146;s net income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At least 30&nbsp;days prior to each date on which any payment
under or with respect to the Notes is due and payable, if we are
obligated to pay Additional Amounts with respect to such
payment, we will deliver to the Trustee an Officers&#146;
Certificate stating the fact that such Additional Amounts will
be payable and the amount so payable and will set forth other
information necessary to enable the Trustee to pay such
Additional Amounts to holders of the Notes on the payment date.
Whenever in the Indenture or in this Description of Notes there
is mentioned, in any context, the payment of principal, and
premium (if any), redemption price, interest or any other amount
payable under or with respect to any Note, such mention shall be
deemed to include mention of the payment of Additional Amounts
to the extent that, in the context, Additional Amounts are, were
or would be payable in respect thereof.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Redemption</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Optional Redemption</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Notes will be redeemable as a whole or in part, at our
option at any time, at a redemption price equal to the greater
of (1)&nbsp;100% of the principal amount of the Notes being
redeemed and (2)&nbsp;the sum of the present values of the
remaining scheduled payments of principal and interest thereon
(exclusive of interest accrued to the date of redemption)
discounted to the redemption date on a semi-annual basis
(assuming a 360-day year consisting of twelve 30-day months) at
the Treasury Rate
plus &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;basis
points, plus in each case accrued interest thereon to the date
of redemption.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Comparable Treasury Issue&#148; means the United States
Treasury security or securities selected by an Independent
Investment Banker as having an actual or interpolated maturity
comparable to the remaining term of the Notes to be redeemed
that would be utilized, at the time of selection and in
accordance with customary financial practice, in pricing new
issues of corporate debt securities of a comparable maturity to
the remaining term of such Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Comparable Treasury Price&#148; means, with respect to any
redemption date, (1)&nbsp;the average of the Reference Treasury
Dealer Quotations for such redemption date, after excluding the
highest and lowest of such Reference Treasury Dealer Quotations,
or (2)&nbsp;if the Trustee obtains fewer than four such
Reference Treasury Dealer Quotations, the average of all such
quotations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Independent Investment Banker&#148; means one of the
Reference Treasury Dealers appointed by the Trustee after
consultation with us.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Reference Treasury Dealer&#148; means each of ABN AMRO
Incorporated and BNP Paribas Securities Corp. plus three others
or their affiliates which are primary U.S. Government securities
dealers appointed by the Trustee after consultation with us and
their respective successors; <I>provided, however</I>, that if
any of the foregoing or their affiliates shall cease to be a
primary U.S.&nbsp;Government securities dealer in The City of
New York (a &#147;Primary Treasury Dealer&#148;), the Company
shall substitute therefor another Primary Treasury Dealer, if
one is available.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Reference Treasury Dealer Quotations&#148; means, with
respect to each Reference Treasury Dealer and any redemption
date, the average, as determined by the Trustee, of the bid and
asked prices for the Comparable Treasury Issue (expressed in
each case as a percentage of its principal amount) quoted in
writing to the Trustee by such Reference Treasury Dealer at
3:30&nbsp;p.m. New&nbsp;York time on the third business day
preceding such redemption date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Treasury Rate&#148; means, with respect to any redemption
date, the rate per annum equal to the semi-annual equivalent
yield to maturity or interpolated (on a day count basis) of the
Comparable Treasury Issue, assuming a price for the Comparable
Treasury Issue (expressed as a percentage of its principal
amount) equal to the Comparable Treasury Price for such
redemption date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Notice of any redemption will be mailed at least 30&nbsp;days
but not more than 60&nbsp;days before the redemption date to
each holder of Notes to be redeemed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Unless the Company defaults in payment of the redemption price,
on and after the redemption date interest will cease to accrue
on the Notes or portions thereof called for redemption.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Redemption for Changes in
Canadian Withholding Taxes</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Notes may be redeemed, at our option, at any time in whole
but not in part, on not less than 30 nor more than
60&nbsp;days&#146; notice, at 100% of the principal amount
thereof, plus accrued and unpaid interest (if any) to the date
of redemption (subject to the right of holders of record on the
relevant record date to receive interest due on the relevant
interest payment date), in the event we have become or would
become obligated to pay, on the next date on which any amount
would be payable with respect to the Notes, any Additional
Amounts as a result of a change in or an amendment to the laws
(including any regulations promulgated thereunder) of Canada (or
any political subdivision or taxing authority thereof or
therein), or any change in or amendment to any official position
regarding the application or interpretation of such laws or
regulations, which change or amendment is announced or becomes
effective on or after the date of this prospectus.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Certain Covenants</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Set forth below are certain covenants contained in the Indenture:
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Change of Control</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon the occurrence of a Change of Control Triggering Event, we
will be required to make an offer (a &#147;Change of Control
Offer&#148;) to repurchase all or any part (equal to $1,000 or
an integral multiple thereof) of each Holder&#146;s Notes;<I>
provided, however,</I> that the foregoing provision shall not
apply to the Notes if the Notes have, or at any time had, an
Investment Grade Rating. A &#147;Change of Control Triggering
Event&#148; will occur only if a Change of Control and a Rating
Decline both occur. In the Change of Control Offer, we will
offer to purchase Notes for a purchase price in cash equal to
101% of the aggregate principal amount of the Notes repurchased
plus accrued and unpaid interest, if any, on the Notes
repurchased, to the date of purchase; provided, however, that
interest payable on or prior to the date of purchase will be
payable to the Holders of the Notes repurchased registered as
such on the regular record date for such interest.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Within 30&nbsp;days following a Change of Control Triggering
Event, we will be required to mail a notice to each Holder of
Notes describing the transaction or transactions that constitute
the Change of Control Triggering Event and offering to
repurchase Notes on the Change of Control Payment
</DIV>

<P align="center" style="font-size: 10pt;">21

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<DIV align="left" style="font-size: 10pt;">
Date specified in the notice, which date shall be between 30 and
60&nbsp;days of the mailing of the notice, pursuant to the
procedures required by the Indenture and described in such
notice. We will comply with the requirements of
Section&nbsp;14(e) of and Rule 14e-1 under the Securities
Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;)
and any other securities laws and regulations thereunder to the
extent those laws and regulations are applicable in connection
with the repurchase of the Notes as a result of a Change of
Control Triggering Event. To the extent that the provisions of
any securities laws or regulations conflict with the Change of
Control provisions of the Indenture, we will comply with the
applicable securities laws and regulations and will not be
deemed to have breached our obligations under the Change of
Control provisions of the Indenture by virtue of such conflict.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On the Change of Control Payment Date, we will be required to,
to the extent lawful, (1)&nbsp;accept for payment all Notes or
portions thereof properly tendered pursuant to the Change of
Control Offer, (2)&nbsp;deposit with the paying agent an amount
equal to the purchase price in respect of all Notes or portions
thereof so tendered, and (3)&nbsp;deliver or cause to be
delivered to the Trustee the Notes so accepted, together with an
Officers&#146; Certificate stating the aggregate principal
amount of Notes or portions thereof being purchased by us. The
paying agent will be required to promptly mail to each Holder
who properly tendered Notes, the purchase price for such Notes
and the Trustee will be required to promptly authenticate and
mail (or cause to be transferred by book entry) to each such
Holder a new Note equal in principal amount to any unpurchased
portion of the Notes surrendered, if any; <I>provided </I>that
each new Note will be in a principal amount of US$1,000 or an
integral multiple thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The provisions described above that require us to make a Change
of Control Offer following a Change of Control Triggering Event
will be applicable whether or not any other provisions of the
Indenture are applicable. Except as described above with respect
to a Change of Control Triggering Event, the Indenture does not
contain provisions that permit the Holders of the Notes to
require that we repurchase or redeem the Notes in the event of a
takeover, recapitalization or similar transaction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We will not be required to make a Change of Control Offer upon a
Change of Control Triggering Event if a third party makes the
Change of Control Offer in the manner, at the times and
otherwise in compliance with, the requirements set forth in the
Indenture applicable to a Change of Control Offer made by us,
and purchases all Notes properly tendered and not withdrawn
under the Change of Control Offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The definition of Change of Control includes a phrase relating
to the direct or indirect sale, lease, transfer, conveyance or
other disposition of &#147;all or substantially all&#148; of the
properties or assets of us and our Subsidiaries taken as a
whole. Although there is a limited body of case law interpreting
the phrase &#147;substantially all,&#148; there is no precise
established definition of the phrase under applicable law.
Accordingly, the ability of a holder of Notes to require us to
repurchase the Notes as a result of a sale, lease, transfer,
conveyance or other disposition of less than all of the assets
of us and our Subsidiaries taken as a whole to another Person or
group may be uncertain.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Limitation on Liens</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We shall not, and shall not permit any Restricted Subsidiary to,
Incur or to permit to exist any Lien of any nature whatsoever
(other than Permitted Liens) on any of our or its property or
assets now owned or hereafter acquired by us or it (including
any Capital Stock or evidence of Indebtedness and including any
of our Capital Stock or Indebtedness held by us or any
Subsidiary) securing any Indebtedness, without contemporaneously
therewith effectively securing the Notes equally and ratably
with (or prior to) such Indebtedness for so long as such
Indebtedness is so secured, unless, after giving effect to such
Lien, the aggregate amount of all Indebtedness secured by such
Liens (other than Permitted Liens) on our property or assets or
that of our Restricted Subsidiaries, plus all of our
Attributable Indebtedness and that of our Restricted
Subsidiaries with
</DIV>

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<DIV align="left" style="font-size: 10pt;">
respect to Sale/ Leaseback Transactions permitted as described
below under &#147;&#151;&nbsp;Limitation on Sale/ Leaseback
Transactions&#148;, does not exceed 10% of Consolidated Net
Worth.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Limitation on Sale/ Leaseback Transactions</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We shall not, and shall not permit any Restricted Subsidiary to,
enter into a Sale/ Leaseback Transaction, unless, after giving
effect thereto, the aggregate amount of all Attributable
Indebtedness with respect to all such Sale/ Leaseback
Transactions, plus all Indebtedness secured by Liens to which
the covenant described above under &#147;&#151;&nbsp;Limitations
on Liens&#148; is applicable, does not exceed 10% of
Consolidated Net Worth. However, the provisions described in
this &#147;Limitation on Sale/ Leaseback Transactions&#148;
shall not apply to, and there shall be excluded from
Attributable Indebtedness in any computation described in this
covenant and in the covenant described above under
&#147;&#151;&nbsp;Limitation on Liens&#148;, Attributable
Indebtedness with respect to a Sale/ Leaseback Transaction if:
(1)&nbsp;the lease in such Sale/ Leaseback Transaction is for a
period, including renewal rights, of three years or less;
(2)&nbsp;we or a Restricted Subsidiary, within one year (or, in
the event the net proceeds of the sale of the property leased
pursuant to such Sale/ Leaseback Transaction exceeds
$75&nbsp;million, within two years) after such Sale/ Leaseback
Transaction, apply an amount not less than the greater of the
net proceeds of the sale of the property leased pursuant to such
Sale/ Leaseback Transaction or the fair market value of such
property (as determined in good faith by the Board of Directors)
to either the retirement of our or a Restricted
Subsidiary&#146;s Funded Indebtedness or the purchase by us or a
Restricted Subsidiary of other property having a fair market
value (as determined in good faith by the Board of Directors) at
least equal to the fair market value of the property so leased
in such Sale/ Leaseback Transaction; or (3)&nbsp;such Sale/
Leaseback Transaction is entered into between us and a
Restricted Subsidiary or between Restricted Subsidiaries.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Additional Guarantees</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We shall not permit any Restricted Subsidiary to Incur any
Indebtedness unless, at the time of such Incurrence such
Restricted Subsidiary has Guaranteed all our obligations with
respect to the Notes pursuant to the terms of the Indenture,
such Guarantee to be in the form provided for in the Indenture.
The foregoing shall not apply to: (1)&nbsp;any Indebtedness
Incurred by a Restricted Subsidiary to finance its working
capital requirements; <I>provided, however,</I> that the
aggregate amount of such Indebtedness Incurred by all Restricted
Subsidiaries and outstanding at any time shall not exceed $25
million; (2)&nbsp;any Indebtedness secured by (a)&nbsp;Permitted
Liens or (b)&nbsp;Liens to which the exception in the covenant
described above under &#147;&#151;&nbsp;Limitation on
Liens&#148; is applicable; <I>provided, however,</I> that the
aggregate amount of all such Indebtedness and all our
Indebtedness secured by such Liens (other than Permitted Liens),
plus all of our and our Restricted Subsidiaries&#146;
Attributable Indebtedness with respect to Sale/ Leaseback
Transactions permitted as described above under
&#147;&#151;&nbsp;Limitation on Sale/ Leaseback
Transactions&#148;, does not exceed 10% of Consolidated Net
Worth; (3)&nbsp;any Attributable Indebtedness (a)&nbsp;with
respect to a Sale/ Leaseback Transaction which is permitted
under the covenant described above under
&#147;&#151;&nbsp;Limitation on Sale/ Leaseback
Transactions&#148; or (b)&nbsp;to which the provisions described
above under &#147;&#151;&nbsp;Limitation on Sale/ Leaseback
Transactions&#148; are not applicable; and (4)&nbsp;any
Indebtedness owed to and held by us or another Restricted
Subsidiary; <I>provided, however,</I> that any subsequent
transfer of any such Indebtedness or any subsequent transfer of
any Capital Stock of such Restricted Subsidiary, or any other
event, that results in such Restricted Subsidiary ceasing to be
a Restricted Subsidiary shall be deemed to constitute the
Incurrence of such Indebtedness at such time. Except if we have
exercised either of the defeasance options described under
&#147;&#151;&nbsp;Defeasance&#148; below, no Guarantor shall be
released from its Guarantee provided pursuant to this covenant
or clause (1)&nbsp;in the second paragraph of
&#147;&#151;&nbsp;Successor Company and Guarantors&#148; below
unless (1)&nbsp;such Guarantor ceases to be a Restricted
Subsidiary or (2)&nbsp;such Guarantor has been discharged from
all its obligations with respect to all Indebtedness Incurred by
such Guarantor (other than such Guarantee and Indebtedness
described in clause (4)&nbsp;in the immediately preceding
sentence) and such
</DIV>

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<DIV align="left" style="font-size: 10pt;">
Guarantor has not had any Indebtedness (other than such
Guarantee and Indebtedness described in clause (4)&nbsp;in the
immediately preceding sentence) outstanding for a period of
91&nbsp;days.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Limitations with Respect to Unrestricted
    Subsidiaries</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;We shall not, and shall not permit any Restricted
Subsidiary to, directly or indirectly, enter into or conduct any
transaction (including, the purchase, sale, lease or exchange of
any property or the rendering of any service) with any
Unrestricted Subsidiary (an &#147;Unrestricted Subsidiary
Transaction&#148;) on terms (1)&nbsp;that are less favorable in
sum to us or such Restricted Subsidiary, as the case may be,
than those that could be obtained at the time of such
transaction in arm&#146;s-length dealings with a person other
than an Unrestricted Subsidiary or (2)&nbsp;that, in the event
such Unrestricted Subsidiary Transaction involves an aggregate
amount in excess of $25&nbsp;million, are not in writing and
have not been approved by a majority of the members of the Board
of Directors. The foregoing shall not prohibit any Investment by
us or any Restricted Subsidiary in any Unrestricted Subsidiary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;We shall not permit any Unrestricted Subsidiary to
Incur any Indebtedness other than Non-Recourse Indebtedness;
<I>provided, however,</I> that in the event any such
Indebtedness ceases for any reason to constitute Non-Recourse
Indebtedness, such Subsidiary shall be deemed to have Incurred
such Indebtedness at such time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;We shall not, and shall not permit any Restricted
Subsidiary to, directly or indirectly, transfer to any
Unrestricted Subsidiary any property or assets owned by us or
any Restricted Subsidiary on the date of the Indenture
(1)&nbsp;on terms that are less favorable in sum to us or such
Restricted Subsidiary, as the case may be, than those that could
be obtained at the time of such transfer in arm&#146;s-length
dealings with a person other than an Unrestricted Subsidiary or
(2)&nbsp;unless the aggregate price for such property or assets
under such transfer, plus the aggregate prices for any other
such property or assets under any other such transfers completed
during the twelve-month period immediately preceding such
transfer, does not exceed $25&nbsp;million.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Successor Company and Guarantors</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We may not amalgamate or consolidate with or merge with or into,
or convey, transfer or lease, in one transaction or a series of
transactions, all or substantially all our assets to, any
person, unless: (1)&nbsp;the resulting, surviving or transferee
person (if not us) is organized and existing under the federal
laws of Canada or the laws of any province thereof or the laws
of the United States of America, any State thereof or the
District of Columbia and such person expressly assumes by a
supplemental indenture, executed and delivered to the Trustee,
in form satisfactory to the Trustee, all of our obligations
under the Indenture and the Notes; (2)&nbsp;immediately after
giving effect to such transaction, no Default shall have
occurred and be continuing; and (3)&nbsp;we deliver to the
Trustee an Officers&#146; Certificate and an Opinion of Counsel
(who may rely on such Officers&#146; Certificate as to matters
of fact), each stating that such amalgamation, consolidation,
merger, conveyance, transfer or lease and such supplemental
indenture (if any) comply with the Indenture. The resulting,
surviving or transferee person will be the successor company
under the Indenture and the Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We will not permit any Restricted Subsidiary that is a Guarantor
to amalgamate or consolidate with or merge with or into, or
convey, transfer or lease, in one transaction or a series of
transactions, all or substantially all its assets to, any person
unless: (1)&nbsp;the resulting, surviving or transferee person
(if not such Guarantor) is organized and existing under the laws
of the jurisdiction under which such Guarantor or its parent
corporation was organized or under the federal laws of Canada or
the laws of any province thereof or the laws of the United
States of America, or any State thereof or the District of
Columbia and such person expressly assumes by a supplemental
indenture, executed and delivered to the Trustee, in form
satisfactory to the Trustee, all the obligations of such
Guarantor under its Guarantee unless such resulting, surviving
or transferee person has been released from such Guarantee in
accordance with the terms of the
</DIV>

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<DIV align="left" style="font-size: 10pt;">
Indenture; (2)&nbsp;immediately after giving effect to such
transaction, no Default shall have occurred and be continuing;
and (3)&nbsp;we deliver to the Trustee an Officers&#146;
Certificate and an Opinion of Counsel (who may rely on such
Officers&#146; Certificate as to matters of fact), each stating
that such amalgamation, consolidation, merger, conveyance,
transfer or lease and such supplemental indenture (if any)
comply with the Indenture.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Defaults</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
An Event of Default with respect to the Notes is defined in the
Indenture as (1)&nbsp;a default by us in the payment of interest
on the Notes (including any Additional Amount) when due and
payable, continued for 30&nbsp;days, (2)&nbsp;a default by us in
the payment of principal with respect to the Notes when due and
payable at Stated Maturity, upon redemption, upon declaration or
otherwise, (3)&nbsp;the failure by us or a Guarantor to comply
with the obligations described under &#147;&#151; Certain
Covenants&nbsp;&#151; Change of Control&#148; or
&#147;&#151;&nbsp;Successor Company and Guarantors&#148; above,
(4)&nbsp;the failure by us or any Restricted Subsidiary for
60&nbsp;days after notice to comply with any of the obligations
described under &#147;&#151;&nbsp;Certain Covenants&#148; above,
(5)&nbsp;the failure by us or any Restricted Subsidiary for
60&nbsp;days after notice to comply with the agreements
contained in the Indenture or the Notes (other than a failure
described in (1), (2), (3)&nbsp;or (4)&nbsp;above or a failure
to comply with any of our or its obligations under the covenants
or agreements that are specifically for the benefit of one or
more series of debt securities issued pursuant to the Indenture
other than the Notes), (6)&nbsp;Indebtedness of us or any
Restricted Subsidiary is not paid within any applicable grace
period and is accelerated by the holders thereof, or is
accelerated by the holders thereof because of a default, and the
total amount of such Indebtedness unpaid, or due and payable,
and accelerated exceeds $10&nbsp;million (the &#147;cross
acceleration provision&#148;), (7)&nbsp;certain specified events
of bankruptcy, insolvency or reorganization of us or a
Significant Subsidiary (the &#147;bankruptcy default
provision&#148;), or (8)&nbsp;any Guarantee of the Notes by any
Guarantor at any time ceases to be in full force and effect for
any reason (other than as a result of a release of such
Guarantee in accordance with the terms of the Indenture) (the
&#147;guarantee default provision&#148;). A default under
clause&nbsp;(4) or (5) will not constitute an Event of Default
until the Trustee or the holders of at least 25% in principal
amount of the outstanding Notes notify us of the default and we
do not cure such default within the time specified after receipt
of such notice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If an Event of Default (other than a bankruptcy default with
respect to us) occurs and is continuing with respect to the
Notes, the Trustee by notice to us, or the holders of at least
25% in principal amount of the Notes then outstanding by notice
to us and the Trustee, may declare the principal of and accrued
but unpaid interest on all the Notes to be due and payable. Upon
such a declaration, such principal and interest shall be due and
payable immediately. If a bankruptcy default with respect to us
occurs and is not cured within the time period permitted, the
principal of and interest on all the debt securities issued
pursuant to the Indenture, including the Notes, will <I>ipso
facto </I>become and be immediately due and payable without any
declaration or other act on the part of the Trustee or any
holders of debt securities issued pursuant to the Indenture.
Under certain circumstances, the holders of a majority in
principal amount of the Notes may rescind any such acceleration
with respect to the Notes and its consequences.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subject to the provisions of the Indenture relating to the
duties of the Trustee, in case an Event of Default occurs and is
continuing, the Trustee will be under no obligation to exercise
any of the rights or powers under the Indenture at the request
or direction of any of the holders of the Notes then outstanding
unless such holders have offered to the Trustee reasonable
indemnity or security against any loss, liability or expense.
Except to enforce the right to receive payment of principal,
premium (if any) or interest when due, no holder of Notes may
pursue any remedy with respect to the Indenture or the Notes
unless (1)&nbsp;such holder has previously given the Trustee
notice that an Event of Default is continuing, (2)&nbsp;holders
of at least 25% in principal amount of the outstanding Notes
have requested the Trustee to pursue the remedy, (3)&nbsp;such
holders have offered the Trustee reasonable security or
indemnity against any loss, liability or expense, (4)&nbsp;the
Trustee has
</DIV>

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<DIV align="left" style="font-size: 10pt;">
not complied with such request within 60&nbsp;days after the
receipt thereof and the offer of security or indemnity, and
(5)&nbsp;the holders of a majority in principal amount of the
Notes have not given the Trustee a direction inconsistent with
such request within such 60-day period. Subject to certain
restrictions, the holders of a majority in principal amount of
the outstanding Notes will be given the right to direct the
time, method and place of conducting any proceeding for any
remedy available to the Trustee with respect to the Notes or of
exercising any trust or power conferred on the Trustee with
respect to the Notes. The Trustee, however, may refuse to follow
any direction that conflicts with law or the Indenture or that
the Trustee determines is unduly prejudicial to the rights of
any other holder of the Notes or that would involve the Trustee
in personal liability.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the Indenture, if a Default occurs with respect to the
Notes and is continuing and is known to the Trustee, the Trustee
must mail to each holder of the Notes notice of the Default
within 90&nbsp;days after it occurs. Except in the case of a
Default in the payment of principal of, premium (if any) or
interest on the Notes, the Trustee may withhold notice if and so
long as a committee of its trust officers determines in good
faith that withholding notice is in the interest of the holders
of Notes. In addition, we are required to deliver to the
Trustee, within 120&nbsp;days after the end of each fiscal year,
a certificate indicating whether the signers thereof know of any
Default that occurred during the previous year. We are also
required to deliver to the Trustee, within 30&nbsp;days after we
learn of the existence thereof, written notice of any event
which would constitute certain Defaults, their status and what
action we are taking or propose to take in respect thereof.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Book-Entry, Delivery and Form</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Notes will be represented by one or more fully registered
global notes without coupons (the &#147;Global Notes&#148;) and
will be deposited upon issuance with the Trustee as custodian
for The Depository Trust&nbsp;Company (&#147;DTC&#148;), in New
York, New York, and registered in the name of DTC or its
nominee. Except as set forth below, the Global Notes may be
transferred in whole and not in part only to DTC or another
nominee of DTC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
So long as DTC or its nominee is the registered owner thereof,
DTC or such nominee, as the case may be, will be considered the
sole owner or holder of the Notes represented by the Global
Notes for all purposes under the Indenture. Except as provided
below, owners of beneficial interests in the Global Notes will
not be entitled to have the Notes represented by the Global
Notes registered in their names, will not receive or be entitled
to receive physical delivery of the Notes in definitive form and
will not be considered the owners or holders thereof under the
Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following is based on information furnished by DTC:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
DTC is a limited-purpose trust company organized under the New
York Banking Law, a &#147;banking organization&#148; within the
meaning of the New York Banking Law, a member of the Federal
Reserve System, a &#147;clearing corporation&#148; within the
meaning of the Uniform Commercial Code, and a &#147;clearing
agency&#148; registered pursuant to the provisions of
Section&nbsp;17A of the Exchange Act. DTC holds securities that
its participants (&#147;Direct Participants&#148;) deposit with
DTC. DTC also facilitates the settlement among Direct
Participants of securities transactions, such as transfers and
pledges, in deposited securities through electronic computerized
book-entry changed in Direct Participants&#146; accounts,
thereby eliminating the need for physical movement of securities
certificates. Direct Participants include securities brokers and
dealers (including certain of the underwriters), banks, trust
companies, clearing corporations and certain other
organizations. DTC is a wholly-owned subsidiary of The
Depository Trust&nbsp;Company &#38; Clearing Corporation
(&#147;DTCC&#148;). DTCC, in turn, is owned by a number of its
Direct Participants and members of DTCC clearing corporations,
as well as by the New York Stock Exchange, Inc., the American
Stock Exchange LLC and the National Association of Securities
Dealers, Inc. Access to DTC&#146;s system is also available to
others such as securities brokers and dealers, clearing
corporations, banks and trust companies that clear through or
maintain a custodial relationship with a Direct Participant,
either directly or
</DIV>

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<DIV align="left" style="font-size: 10pt;">
indirectly (&#147;Indirect Participant&#148;). The rules
applicable to DTC and its Direct and Indirect Participants are
on file with the United States Securities and Exchange
Commission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Purchases of the Notes under DTC&#146;s system must be made by
or through Direct Participants, which will receive a credit for
such Notes on DTC&#146;s records. The ownership interest of each
actual purchaser of each Note represented by a Global Note
(&#147;Beneficial Owner&#148;) is in turn to be recorded on the
Direct and Indirect Participants&#146; records. Beneficial
Owners will not receive written confirmation from DTC of their
purchase, but Beneficial Owners are expected to receive written
confirmations providing details of the transaction, as well as
periodic statements of their holdings, from the Direct or
Indirect Participants through which such Beneficial Owner
entered into the transaction. Transfers of ownership interests
in the Global Notes representing the Notes are to be
accomplished by entries made on the books of Participants acting
on behalf of Beneficial Owners. Beneficial Owners of the Global
Notes representing the Notes will not receive the Notes in
definitive form representing their ownership interests therein,
except in the event that use of the book-entry system for the
Notes is discontinued or upon the occurrence of certain other
events described herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To facilitate subsequent transfers, all Global Notes
representing the Notes which are deposited with DTC are
registered in the name of DTC&#146;s nominee, Cede &#38; Co. The
deposit of Global Notes with DTC and their registration in the
name of Cede &#38; Co. effect no change in beneficial ownership.
DTC has no knowledge of the actual Beneficial Owners of the
Global Notes representing the Notes; DTC&#146;s records reflect
only the identity of the Direct Participants to whose accounts
such Notes are credited, which may or may not be the Beneficial
Owners. The Direct and Indirect Participants will remain
responsible for keeping account of their holdings on behalf of
their customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Conveyance of notices and other communications by DTC to Direct
Participants, by Direct Participants or Indirect Participants,
and by Direct Participants and Indirect Participants to
Beneficial Owners will be governed by arrangements among them,
subject to any statutory or regulatory requirements as may be in
effect from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Neither DTC nor Cede &#38; Co. will consent or vote with respect
to the Global Notes representing the book-entry Notes. Under its
usual procedures, DTC mails an omnibus proxy (an &#147;Omnibus
Proxy&#148;) to us as soon as possible after the applicable
record date. The Omnibus Proxy assigns Cede &#38; Co.&#146;s
consenting or voting rights to those Direct Participants to
whose accounts the Notes are credited on the applicable record
date (identified in a listing attached to the Omnibus Proxy).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Principal, premium, if any, and interest payments on the Global
Notes representing the Notes will be made to DTC. DTC&#146;s
practice is to credit Direct Participants&#146; accounts upon
DTC&#146;s receipt of funds, on the applicable payment date in
accordance with the respective holdings of the Direct
Participants shown on DTC&#146;s records. Payments by
Participants to Beneficial Owners will be governed by standing
instructions and customary practices, as is the case with
securities held for the account of customers in bearer form or
registered in &#147;street name&#148;, and will be the
responsibility of such Participant and not of DTC, the Trustee
or the Company, subject to any statutory or regulatory
requirements as may be in effect from time to time. Payment of
principal, premium, if any, and interest to Cede &#38; Co. is
our responsibility or that of the Trustee, disbursement of such
payments to Direct Participants shall be the responsibility of
DTC, and disbursement of such payments to the Beneficial Owners
shall be the responsibility of Direct and Indirect Participants.
Neither we nor the Trustee will have any responsibility or
liability for the disbursements of payments in respect of
ownership interests in the Notes by DTC or the Direct or
Indirect Participants or for maintaining or reviewing any
records of DTC or the Direct or Indirect Participants relating
to ownership interests in the Notes or the disbursements of
payments in respect thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
DTC may discontinue providing its services as securities
depository with respect to the Notes at any time by giving
reasonable notice to us or the Trustee. We may decide to
discontinue use of the system of book-entry transfers through
DTC or a successor securities depository. Under such
</DIV>

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<DIV align="left" style="font-size: 10pt;">
circumstances, and in the event that a successor securities
depository is not obtained, Notes in definitive form are
required to be printed and delivered.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The information in this section concerning DTC and DTC&#146;s
system has been obtained from sources that we believe to be
reliable, but is subject to any changes to the arrangements
between us and DTC and any changes to such procedures that may
be instituted unilaterally by DTC.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Enforceability of Judgments</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Since a substantial portion of our assets and those of our
Subsidiaries are outside the United States, any judgment
obtained in the United States against us or any of our
Subsidiaries, including judgments with respect to the payment of
principal, interest, Additional Amounts or redemption price with
respect to the Notes, may not be collectible within the United
States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have been informed by our Canadian counsel, McCarthy
T&#233;trault LLP, that the laws of the Province of British
Columbia and the federal laws of Canada applicable therein
permit an action to be brought in a court of competent
jurisdiction in the Province of British Columbia (a
&#147;British Columbia Court&#148;) on any final and conclusive
judgment in personam (i.e., against the person) of a Federal or
state court in the State of New York (&#147;New York
Court&#148;) against us that is subsisting and unsatisfied
respecting the enforcement of the Notes or the Indenture, that
is not impeachable as void or voidable under the laws of the
State of New York and that is for a sum certain if (1)&nbsp;the
New York Court that rendered such judgment had jurisdiction over
the judgment debtor, as recognized by a British Columbia Court
(and submission by us in the Notes or the Indenture to the
jurisdiction of the New York Court will be deemed sufficient for
this purpose); (2)&nbsp;proper service of process in respect of
the proceeding in which such judgment was made in accordance
with New York law; (3)&nbsp;such judgment was not obtained by
fraud or in a manner contrary to natural justice, and the
enforcement thereof would not be either inconsistent with public
policy, as the term is applied by a British Columbia Court, or
contrary to any order made by the Attorney General of Canada
under the <I>Foreign Extraterritorial Measures Act </I>(Canada)
or contrary to any order made by the Competition Tribunal under
the <I>Competition Act </I>(Canada); (4)&nbsp;the enforcement of
such judgment in British Columbia does not constitute, directly
or indirectly, the enforcement of any laws of the State of New
York or of the United States of America which a British Columbia
Court would characterize as revenue, expropriatory, penal or
public laws; (5)&nbsp;in an action to enforce a default
judgment, the judgment does not contain a manifest error on its
face; (6)&nbsp;the action to enforce such judgment is commenced
within the applicable limitation period after the date of such
judgment; and (7)&nbsp;the judgment does not conflict with
another final and conclusive judgment in the same cause of
action; provided that a British Columbia Court may stay an
action to enforce a foreign judgment if an appeal of the
judgment is pending or the time for appeal has not expired; and
provided further that under the <I>Currency Act </I>(Canada), a
British Columbia Court may only give judgment in Canadian
dollars.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Consent to Jurisdiction and Service</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Indenture provides that we irrevocably designate and appoint
CT Corporation System (and any successor entity), as our agent
for service of process in any suit or proceeding arising out of
or relating to the Indenture or the Notes for actions brought in
any federal or state court located in the Borough of Manhattan
in the City of New York and will submit to such jurisdiction.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Amendments and Waivers</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subject to certain exceptions, the Indenture may be amended with
respect to the Notes with the consent of the holders of not less
than a majority in principal amount of the Notes and any past
default or compliance with any provisions may be waived with
such a consent of the holders of a majority in principal amount
of the outstanding Notes. However, without the consent of each
holder of outstanding Notes, no amendment may, among other
things, (1)&nbsp;reduce the amount of the Notes
</DIV>

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<DIV align="left" style="font-size: 10pt;">
whose holders must consent to an amendment, (2)&nbsp;reduce the
rate of or extend the time for payment of interest on any Notes,
(3)&nbsp;reduce the principal of or extend the Stated Maturity
of any Notes, (4)&nbsp;reduce the premium payable upon the
redemption of any Notes or change the time at which any Notes
may or shall be redeemed, (5)&nbsp;make any Notes payable in
currency other than that stated in the Notes, (6)&nbsp;make any
change to the provisions of the Indenture described under
&#147;&#151;&nbsp;Additional Amounts for Canadian Withholding
Taxes&#148; above that adversely affects the rights of any
holder of the Notes, (7)&nbsp;impair the rights of any holder of
the Notes to receive payment of principal of and interest on
such holder&#146;s Notes (including any Additional Amount) on or
after the due dates therefor or to institute suit for the
enforcement of any payment on or with respect to such
holder&#146;s Notes, (8)&nbsp;make any change in the Guarantee
of the Notes by any Guarantor that would adversely affect any
holder of the Notes or (9)&nbsp;make any change in the amendment
provisions which require each holder&#146;s consent or in the
provisions which limit suits by holders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Without the consent of any holder of the Notes, we and the
Trustee may amend the Indenture to cure any ambiguity, defect or
inconsistency, to provide for the assumption by a successor
corporation of our obligations or those of a Guarantor under the
Indenture to add Guarantees with respect to the Notes, to secure
all or any of the Notes, to add to our covenants or to add
Events of Default for the benefit of the holders of the Notes or
to surrender any right or power conferred upon us, to make any
change that does not adversely affect the rights of any holder
of the Notes in any material respect, to establish the form or
terms of the Notes, to supplement any of the provisions of the
Indenture to the extent necessary to permit or facilitate the
defeasance or discharge of the Notes that does not adversely
affect the rights of any holders of the Notes in any material
respect, to change or eliminate any provision of the Indenture
that becomes effective only when there is not outstanding any
debt security of any series issued under the Indenture which is
entitled to the benefit of such provision or to comply with any
requirement of the Commission in connection with the
qualification of the Indenture under the Trust&nbsp;Indenture
Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The consent of the holders of the Notes is not necessary under
the Indenture to approve the particular form of any proposed
amendment. It is sufficient if such consent approves the
substance of the proposed amendment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
After an amendment under the Indenture becomes effective, we are
required to mail to holders of the Notes a notice briefly
describing such amendment. However, the failure to give such
notice to all holders of the Notes, or any defect therein, will
not impair or affect the validity of the amendment.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Defeasance</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We at any time may terminate all our and each Guarantor&#146;s
obligations under the Notes and our obligations and those of
each such Guarantor under the Indenture with respect to the
Notes (&#147;legal defeasance&#148;), except for certain
obligations, including those respecting the defeasance trust and
obligations to register the transfer or exchange of the Notes,
to replace mutilated, destroyed, lost or stolen Notes and to
maintain a registrar and paying agent in respect of the Notes.
We at any time may terminate our and each Guarantor&#146;s
obligations with respect to the Notes under the covenants
described above under &#147;Certain Covenants&#148;, the
operation of the cross acceleration provision, the bankruptcy
default provision with respect to Significant Subsidiaries, the
guarantee default provision and the limitations contained in
clause (2)&nbsp;in the first paragraph and the limitations
contained in the second paragraph of &#147;Successor Company and
Guarantors&#148; above (&#147;covenant defeasance&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We may exercise our legal defeasance option notwithstanding our
prior exercise of our covenant defeasance option. If we exercise
our legal defeasance option with respect to the Notes, payment
of the Notes may not be accelerated because of an Event of
Default with respect thereto and each Guarantor will be released
from its Guarantee with respect to the Notes. If we exercise our
covenant defeasance option with respect to the Notes, payment of
the Notes may not be
</DIV>

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<DIV align="left" style="font-size: 10pt;">
accelerated because of an Event of Default specified in clause
(3) (with respect to Guarantors only), (4), (5), (6), (7) (with
respect to Significant Subsidiaries only), or (8)&nbsp;of the
first paragraph under &#147;Defaults&#148; above or because of
our failure to comply with clause (2)&nbsp;in the first
paragraph of &#147;Successor Company and Guarantors&#148; above
and each Guarantor will be released from its Guarantee with
respect to the Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In order to exercise either defeasance option with respect to
the Notes, we must irrevocably deposit in trust (the
&#147;defeasance trust&#148;) with the Trustee money or U.S.
Government Obligations for the full payment of principal,
premium (if any) and interest on the Notes to redemption or
maturity, as the case may be, and must comply with certain other
conditions, including delivering to the Trustee: (1)&nbsp;an
Opinion of Counsel in the United States to the effect that
holders of the Notes will not recognize income, gain or loss for
United States Federal income tax purposes as a result of such
deposit and defeasance and will be subject to United States
Federal income tax on the same amounts, in the same manner and
at the same times as would have been the case if such deposit
and defeasance had not occurred (and, in the case of legal
defeasance only, such Opinion of Counsel must be based on a
ruling of the United States Internal Revenue Service or other
change in applicable United States Federal income tax law);
(2)&nbsp;an Opinion of Counsel in Canada to the effect that
(A)&nbsp;holders of the Notes will not recognize income, gain or
loss for Canadian federal or provincial income tax or other tax
purposes as a result of such legal defeasance or covenant
defeasance, as applicable, and will be subject to Canadian
federal and provincial income tax and other tax on the same
amounts, in the same manner and at the same times as would have
been the case if such defeasance or covenant defeasance, as
applicable, had not occurred, and (B)&nbsp;payments out of the
defeasance trust will be free and exempt from any and all
withholding and other income taxes of whatever nature of Canada
or any province thereof or political subdivision thereof or
therein having the power to tax, except in the case of a payment
made to a holder of the Notes (a)&nbsp;with which we do not deal
at arm&#146;s length (within the meaning of the <I>Income Tax
Act </I>(Canada)) at the time of the making of such payment or
(b)&nbsp;which is subject to such taxes by reason of its being
connected with Canada or any province or territory thereof
otherwise than by the mere holding of the Notes or the receipt
of payments thereunder; (3)&nbsp;a certificate from a nationally
recognized firm of independent accountants opining that the
payments of principal and interest when due and without
investment on the U.S. Government Obligations plus any deposited
money without investment will provide cash at such times and in
such amounts as will be sufficient to pay the principal, premium
(if any) and interest when due on all the Notes to maturity or
redemption, as the case may be; and (4)&nbsp;an opinion of
counsel stating that the defeasance trust does not constitute,
or is qualified as, a regulated investment company under the
Investment Company Act of 1940, as amended. In addition, we can
only exercise either type of defeasance if (1)&nbsp;during the
91&nbsp;days that follow the establishment of the defeasance
trust, no Default under the bankruptcy default provision occurs
to us and is continuing at the end of the period, (2)&nbsp;no
Default has occurred and is continuing on the date the
defeasance trust is established after giving effect to the
establishment of the defeasance trust, and (3)&nbsp;depositing
funds into the defeasance trust does not constitute a default
under any other of our binding agreements.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>The Trustee</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Bank of New York is the Trustee under the Indenture and has
been appointed by us as registrar and paying agent with respect
to the Notes.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Governing Law</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Indenture is, and the Notes will be, governed by the laws of
the State of New York.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Certain Definitions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Set forth below is a summary of certain of the defined terms
used in the Indenture, as they would be applicable to the Notes.
Reference is made to the Indenture for the full definition of
all such
</DIV>

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<DIV align="left" style="font-size: 10pt;">
terms, as well as any other terms used herein for which no
definition is provided. Except as otherwise indicated, all
accounting terms not otherwise defined in the Indenture will
have the meanings assigned to them in accordance with GAAP (as
defined below) and all accounting determinations and
computations based on GAAP contained in the Indenture shall be
determined and computed in conformity with GAAP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Attributable Indebtedness&#148; in respect of a Sale/
Leaseback Transaction means, as of the date of determination,
the lesser of (1)&nbsp;the fair market value of the property
subject to such Sale/ Leaseback Transaction (as determined in
good faith by our Board of Directors) or (2)&nbsp;the present
value (discounted at a rate per annum equal to the coupon on the
Notes, compounded annually) of the total obligations of the
lessee for rental payments (excluding amounts required to be
paid on account of operating costs, maintenance and repairs,
insurance, taxes, assessments, utility rates and similar
charges) during the remaining term of such lease (including any
period for which such lease has been extended).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Board of Directors&#148; means our Board of Directors or
any committee thereof duly authorized to act on behalf of such
Board of Directors, except that for purposes of the definitions
of &#147;Change of Control&#148; and &#147;Continuing
Directors,&#148; the term &#147;Board of Directors&#148; shall
mean our Board of Directors and not any committee thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Business Day&#148; means each day which is not a Legal
Holiday.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Capital Lease Obligations&#148; of a person means any
obligation which is required to be classified and accounted for
as a capital lease on the face of a balance sheet of such person
prepared in accordance with GAAP; the amount of such obligation
shall be the capitalized amount thereof, determined in
accordance with GAAP; except that the Stated Maturity thereof
shall be deemed to be the date of the last payment of rent or
any other amount due under such lease prior to the first date
upon which such lease may be terminated by the lessee without
payment of a penalty.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Capital Stock&#148; of any person means any and all
shares, interests, rights to purchase, warrants, options,
participations or other equivalents of or interests in (however
designated) equity of such person, including any Preferred
Stock, but excluding any debt securities convertible into or
exchangeable for such equity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Change of Control&#148; means the occurrence of any of the
following:
</DIV>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;the direct or indirect sale, transfer, conveyance or
    other disposition (other than by way of amalgamation, merger or
    consolidation), in one or a series of related transactions, of
    all or substantially all of our properties or assets and those
    of our Restricted Subsidiaries, taken as a whole, to any
    &#147;person&#148; (as that term is used in
    Section&nbsp;13(d)(3) of the Exchange Act);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;the adoption of a plan relating to our liquidation or
    dissolution;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (3)&nbsp;the consummation of any transaction (including, without
    limitation, any amalgamation, merger or consolidation) the
    result of which is that any &#147;person&#148; (as defined in
    clause (1)&nbsp;of this definition), becomes the beneficial
    owner, directly or indirectly, of more than 50% of our Voting
    Stock, measured by voting power rather than number of shares;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (4)&nbsp;the first day on which a majority of the members of our
    Board of Directors are not Continuing Directors; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (5)&nbsp;we amalgamate or consolidate with, or merge with or
    into, any person, or any person amalgamates or consolidates
    with, or merges with or into, us, in any such event pursuant to
    a transaction in which any of the outstanding Voting Stock of us
    or such other person is converted into or exchanged for cash,
    securities or other property, other than any such transaction
    where our Voting Stock outstanding immediately prior to such
    transaction is converted into or exchanged for Voting Stock
    (other than Disqualified Stock) of the surviving or transferee
    person constituting a majority of the Voting Stock of such
    surviving or transferee</TD>
</TR>

</TABLE>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    person, measured by voting power rather than number of shares,
    immediately after giving effect to such issuance.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Code&#148; means the United States Internal Revenue Code
of 1986, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Consolidated Net Worth&#148; at any date of determination
means the following amount, as shown on our and our
Subsidiaries&#146; most recent consolidated balance sheet,
determined on a consolidated basis in accordance with GAAP, as
of the end of our most recent fiscal quarter ending at least
45&nbsp;days prior to the date of determination: (1)&nbsp;the
consolidated shareholders&#146; equity of our common
stockholders plus (2)&nbsp;the respective amounts reported with
respect to any class or series of our Preferred Stock (other
than Exchangeable Stock and Redeemable Stock) but only to the
extent of any cash received by us upon issuance of such
Preferred Stock, less all write-ups (other than write-ups
resulting from foreign currency translations and write-ups of
tangible assets of a going concern business made within
12&nbsp;months after the acquisition of such business)
subsequent to the date of the Indenture in the book value of any
asset owned by us or any of our Subsidiaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Continuing Directors&#148; means as of any date of
determination, any member of our Board of Directors who:
</DIV>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;was a member of such Board of Directors on the date of
    the issuance of the Notes; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;was nominated for election or elected to such Board of
    Directors with the approval of a majority of the Continuing
    Directors who were members of such Board of Directors at the
    time of such nomination or election.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Default&#148; means any event which is, or after notice or
passage of time or both would be, an Event of Default.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Disqualified Stock&#148; means any Capital Stock that, by
its terms (or by the terms of any security into which it is
convertible, or for which it is exchangeable, in each case at
the option of the holder of the Capital Stock), or upon the
happening of any event, matures or is mandatorily redeemable,
pursuant to a sinking fund obligation or otherwise, or
redeemable at the option of the holder of the Capital Stock, in
whole or in part, on or prior to the date that is 91&nbsp;days
after the date on which the Notes mature.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Exchangeable Stock&#148; means any Capital Stock which is
exchangeable or convertible into another security (other than
Capital Stock which is neither Exchangeable Stock nor Redeemable
Stock).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Funded Indebtedness&#148; of a person means all
Indebtedness of such person which matures more than one year
after the time of determination thereof or which is extendible
or renewable at the option of such person to a time more than
one year after the time of determination thereof (whether or not
renewed or extended).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;GAAP&#148; means generally accepted accounting principles
in Canada as in effect as of the date of the Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Gradation&#148; means a gradation within a Rating Category
or a change to another Rating Category, which shall include
&#147;+&#148; and &#147;&#150;,&#148; in the case of
S&#38;P&#146;s current Rating Categories (e.g., a decline from
BB+ to BB would constitute a decrease of one gradation);
&#147;1,&#148; &#147;2&#148; and &#147;3,&#148; in the case of
Moody&#146;s current Rating Categories (e.g., a decline from B1
to B2 would constitute a decrease of one gradation); or the
equivalent in respect of successor Rating Categories of S&#38;P
or Moody&#146;s or Rating Categories used by Rating Agencies
other than S&#38;P or Moody&#146;s.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Guarantee&#148; means any obligation, contingent or
otherwise, of any person directly or indirectly guaranteeing any
Indebtedness of any other person and any obligation, direct or
indirect, contingent or otherwise, of such person (1)&nbsp;to
purchase or pay (or advance or supply funds for the purchase or
payment of) such Indebtedness or other obligation of such other
person (whether arising by virtue of partnership arrangements,
or by agreement to keep-well, to purchase assets,
</DIV>

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<DIV align="left" style="font-size: 10pt;">
goods, securities or services, to take-or-pay, or to maintain
financial statement conditions or otherwise) or (2)&nbsp;entered
into for purposes of assuring in any other manner the obligee of
such Indebtedness or other obligation of the payment thereof or
to protect such obligee against loss in respect thereof (in
whole or in part); <I>provided, however,</I> that the term
&#147;Guarantee&#148; shall not include endorsements for
collection or deposit in the ordinary course of business. The
term &#147;Guarantee&#148; used as a verb has a correlative
meaning.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Guarantor&#148; means any person that becomes a guarantor
of the Notes pursuant to the terms of the Indenture, and its
respective successors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Incur&#148; means issue, assume, Guarantee, incur or
otherwise become liable for; <I>provided, however,</I> that any
Indebtedness or Capital Stock of a person existing at the time
such person becomes a Subsidiary (whether by merger,
consolidation, acquisition or otherwise) or is designated as a
Restricted Subsidiary or an Unrestricted Subsidiary shall be
deemed to be Incurred by such Subsidiary at such time. The term
&#147;Incurrence&#148; when used as a noun shall have a
correlative meaning.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Indebtedness&#148; of any person means, without
duplication, (1)&nbsp;the principal of, premium (if any) in
respect of and interest on (A)&nbsp;indebtedness of such person
for money borrowed and (B)&nbsp;indebtedness evidenced by notes,
debentures, bonds or other similar instruments related to or for
money borrowed for the payment of which such person is
responsible or liable; (2)&nbsp;all Capital Lease Obligations of
such person and all Attributable Indebtedness in respect of
Sale/Leaseback Transactions entered into by such person;
(3)&nbsp;all obligations of such person issued or assumed as the
deferred purchase price of property, all conditional sale
obligations of such person and all obligations of such person
under any title retention agreement (but excluding in each case
trade accounts payable or accrued liabilities arising in the
ordinary course of business); (4)&nbsp;all obligations of such
person for the reimbursement of any obligor on any letter of
credit, banker&#146;s acceptance or similar credit transaction
(other than obligations with respect to letters of credit
securing obligations (other than obligations described in
(1)&nbsp;through (3)&nbsp;above) entered into in the ordinary
course of business of such person to the extent such letters of
credit are not drawn upon or, if and to the extent drawn upon,
such drawing is reimbursed no later than the third Business Day
following receipt by such person of a demand for reimbursement
following payment on the letter of credit); (5)&nbsp;all
obligations of such person with respect to the redemption,
repayment or other repurchase of, in the case of a Subsidiary,
any Preferred Stock and, in the case of any other person, any
Redeemable Stock (but excluding any accumulated dividends);
(6)&nbsp;all obligations of the type referred to in clauses
(1)&nbsp;through (5)&nbsp;of other persons for the payment of
which such person is responsible or liable, directly or
indirectly, as obligor, guarantor or otherwise, including any
Guarantees of such obligations; and (7)&nbsp;all obligations of
the type referred to in clauses&nbsp;(1)through (6) of other
persons secured by any Lien on any property or asset of such
person (whether or not such obligation is assumed by such
person), the amount of such obligation being deemed to be the
lesser of the value of such property or assets or the amount of
the obligation so secured. The amount of Indebtedness of any
person at any date shall be the outstanding balance at such date
of all unconditional obligations as described above and the
maximum liability, upon the occurrence of the contingency giving
rise to the obligation, of any contingent obligations at such
date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Investment&#148; in any person means any direct or
indirect advance, loan (other than advances to customers,
employees or suppliers in the ordinary course of business that
are recorded as accounts receivable on the balance sheet of such
person) or other extension of credit (including by way of
Guarantee or similar arrangement) or capital contribution to (by
means of any transfer of cash or other property to others or any
payment for property or services for the account or use of
others), or any purchase or acquisition of Capital Stock,
Indebtedness or other similar instruments issued by, such person.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Investment Grade Rating&#148; means, with respect to the
Notes, a concurrent rating of (i)&nbsp;BBB- or higher by
S&#38;P&#146;s current Rating Categories (or its equivalent
under any successors Rating Categories) and (ii)&nbsp;Baa3 or
higher by Moody&#146;s current Rating Categories (or its
equivalent under any successors Rating Categories).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Legal Holiday&#148; means each day that is a Saturday, a
Sunday or a day on which banking institutions are not required
to be open in the State of New York or the City of Vancouver,
Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Lien&#148; means any mortgage, pledge, security interest,
conditional sale or other title retention agreement or other
similar lien.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Moody&#146;s&#148; means Moody&#146;s Investors Service,
Inc. and its successors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Non-Recourse Indebtedness&#148; means Indebtedness
(1)&nbsp;as to which neither we nor any of our Restricted
Subsidiaries (A)&nbsp;provide credit support (including any
undertaking, agreement or instrument which would constitute
Indebtedness) or (B)&nbsp;is directly or indirectly liable and
(2)&nbsp;no default with respect to which (including any rights
which the holders thereof may have to take enforcement action)
would permit (upon notice, lapse of time or both) any holder of
any other Indebtedness of ours or that of any of our Restricted
Subsidiaries to declare a default on such other Indebtedness or
cause a payment thereof to be accelerated or payable prior to
its Stated Maturity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Permitted Liens&#148; means, with respect to any person,
(1)&nbsp;pledges or deposits by such person under workmen&#146;s
compensation laws, unemployment insurance laws or similar
legislation, or good faith deposits in connection with bids,
tenders, contracts (other than for the payment of Indebtedness)
or leases to which such person is a party, or deposits to secure
public or statutory obligations of such person or deposits of
cash or government bonds to secure surety or appeal bonds to
which such person is a party, or deposits as security for
contested taxes or import duties or for the payment of rent, in
each case Incurred in the ordinary course of business; (2) Liens
imposed by law, such as carriers&#146;, warehousemen&#146;s and
mechanics&#146; Liens, and maritime liens on cargo for freight
not yet due, in each case for sums not yet due or being
contested in good faith by appropriate proceedings, other Liens
arising out of judgments or awards against such person with
respect to which such person shall then be proceeding with an
appeal or other proceedings for review, and any right of setoff,
refund or charge-back available to any bank or other financial
institution, (3)&nbsp;Liens for property taxes not yet subject
to penalties for non-payment or which are being contested in
good faith and by appropriate proceedings; (4)&nbsp;Liens in
favor of issuers of surety bonds or letters of credit issued
pursuant to the request of and for the account of such person in
the ordinary course of its business; <I>provided, however,</I>
that such letters of credit do not constitute Indebtedness;
(5)&nbsp;minor survey exceptions, minor encumbrances, easements
or reservations of, or rights of others for, licenses, rights of
way, sewers, pipelines, railways, cables and conduits, electric
lines, telegraph and telephone lines and other similar purposes,
or zoning or other restrictions as to the use of real properties
or Liens incidental to the conduct of the business of such
person or to the ownership of its properties which were not
Incurred in connection with Indebtedness and which do not in the
aggregate materially adversely affect the value of such
properties or materially impair their use in the operation of
the business of such person; (6)&nbsp;Liens securing
Indebtedness or other obligations in the ordinary course of
business of a Restricted Subsidiary or us owing to and held by
us or another Restricted Subsidiary; (7)&nbsp;Liens existing on
the date of the Indenture; (8)&nbsp;Liens on property or shares
of stock of a person at the time that such person becomes a
Restricted Subsidiary; <I>provided, however,</I> that such Liens
may not extend to any other property or assets owned by us or a
Restricted Subsidiary; <I>provided further, however,</I> that
such Liens are not created, Incurred or assumed in connection
with, or in contemplation of, or to provide credit support in
connection with, such person becoming a Restricted Subsidiary;
(9)&nbsp;Liens on property or assets at the time we or a
Restricted Subsidiary acquires such property or assets,
including any acquisition by means of an amalgamation, merger or
consolidation with or into us or a Restricted Subsidiary;
<I>provided, however,</I> that such Liens may not extend to any
other property or assets owned by us or a Restricted Subsidiary;
<I>provided further, however,</I> that such Liens are not
</DIV>

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<DIV align="left" style="font-size: 10pt;">
created, Incurred or assumed in connection with, or in
contemplation of, or to provide credit support in connection
with, such acquisition; (10)&nbsp;Liens on any property or
assets securing any Indebtedness created or assumed as all or
any part of the purchase price or cost of construction or
improvement of real or tangible personal property or assets,
whether or not secured, which Indebtedness was created prior to,
at the time of or within 120&nbsp;days after the later of the
acquisition, completion of construction or commencement of full
operation of such property or assets; (11) Liens on cash or
marketable securities of us or any Restricted Subsidiary granted
in the ordinary course of business in connection with
(A)&nbsp;any currency swap agreements, forward exchange rate
agreements, foreign currency futures or options, exchange rate
insurance and other similar agreements or arrangements;
(B)&nbsp;any interest rate swap agreements, forward rate
agreements, interest rate cap or collar agreements or other
similar financial agreements or arrangements; or (C)&nbsp;any
agreements or arrangements entered into for the purpose of
hedging product prices; and (12)&nbsp;Liens to secure any
refinancing, extension, renewal or replacement
(&#147;refinancing&#148;) as a whole, or in part, of any
Indebtedness secured by any Lien referred to in the foregoing
clauses&nbsp;(7), (8), (9)&nbsp;and (10); <I>provided,
however,</I> that (A)&nbsp;such new Lien shall be limited to all
or part of the same property that secured the original Lien
(plus improvements on such property) and (B)&nbsp;the
Indebtedness secured by such Lien at such time is not increased
to any amount greater than the sum of (a)&nbsp;the outstanding
principal amount of the Indebtedness being refinanced and
(b)&nbsp;an amount necessary to pay any fees and expenses,
including premiums, related to such refinancing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;person&#148; means any individual, corporation,
partnership, limited liability company, joint venture,
association, joint-stock company, trust, unincorporated
organization, government or any agency or political subdivision
thereof or any other entity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Preferred Stock&#148;, as applied to the Capital Stock of
any corporation, means Capital Stock of any class or classes
(however designated) which is preferred as to the payment of
dividends, or as to the distribution of assets upon any
voluntary or involuntary liquidation or dissolution of such
corporation, over shares of Capital Stock of any other class of
such corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;principal&#148; of a Note means the principal of the Note
plus the premium, if any, payable on the Note which is due or
overdue or, to the extent permitted by law, is to become due at
the relevant time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Rating Agencies&#148; means (a)&nbsp;S&#38;P and
Moody&#146;s or (b)&nbsp;if S&#38;P and Moody&#146;s or both of
them are not making ratings of the Notes publicly available, a
nationally recognized U.S. rating agency or agencies, as the
case may be, selected by us, which will be substituted for
S&#38;P or Moody&#146;s or both, as the case may be.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Rating Categories&#148; means (1)&nbsp;with respect to
S&#38;P, any of the following categories (any of which may
include a &#147;+&#148; or &#147;&#150;&#148;): AAA, AA, A, BBB,
BB, B, CCC, C and D (or equivalent successor categories);
(2)&nbsp;with respect to Moody&#146;s, any of the following
categories (any of which may include a &#147;1,&#148;
&#147;2&#148; or &#147;3&#148;): Aaa, Aa, A, Baa, Ba, B, Caa,
Ca, C and D (or equivalent successor categories); and
(3)&nbsp;the equivalent of any such categories of S&#38;P or
Moody&#146;s used by another Rating Agency, if applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Rating Decline&#148; means the occurrence of a decrease in
the rating of the Notes by any Rating Agency by one or more
Gradations at any time within 90&nbsp;days (which period shall
be extended so long as the rating of the Notes is under publicly
announced consideration for a possible downgrade by any Rating
Agency) after the date of public notice of a Change of Control,
or the intention of us or any person to effect a Change of
Control.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Redeemable Stock&#148; means any Capital Stock that by its
terms or otherwise is required to be redeemed prior to the first
anniversary of the Stated Maturity of the Notes or is redeemable
at the option of the holder thereof at any time prior to such
first anniversary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Restricted Subsidiary&#148; means each of our Subsidiaries
other than our Unrestricted Subsidiaries.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;S&#38;P&#148; means Standard &#38; Poor&#146;s Ratings
Services, a division of The McGraw-Hill Companies, Inc., and its
successors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Sale/ Leaseback Transaction&#148; means an arrangement
with any person other than us or a Restricted Subsidiary
providing for the leasing by us or any Restricted Subsidiary of
any real or tangible personal property, which property has been
or is to be sold or transferred by us or such Restricted
Subsidiary to such person in contemplation of such leasing;
<I>provided, however,</I> that any subsequent transfer of any
such arrangement between us and a Restricted Subsidiary or
between Restricted Subsidiaries, whereby we or a Restricted
Subsidiary ceases to be the lessor under such arrangement, shall
be deemed to constitute a Sale/Leaseback Transaction at such
time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Significant Subsidiary&#148; means any Restricted
Subsidiary that would be a &#147;Significant Subsidiary&#148; of
us within the meaning of Rule&nbsp;1-02 under
Regulation&nbsp;S-X promulgated by the United States Securities
and Exchange Commission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Stated Maturity&#148; means, with respect to any security,
the date specified in such security as the fixed date on which
the principal of such security is due and payable, including
pursuant to any mandatory redemption provision (but excluding
any provision providing for the repurchase of such security at
the option of the holder thereof upon the happening of any
contingency unless such contingency has occurred).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Subsidiary&#148; means, in respect of any person, any
corporation, limited liability company, association, partnership
or other business entity of which more than 50% of the total
voting power of shares of Capital Stock or other interests
(including partnership interests) entitled (without regard to
the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time owned or
controlled, directly or indirectly, by (1)&nbsp;such person,
(2)&nbsp;such person and one or more Subsidiaries of such person
or (3)&nbsp;one or more Subsidiaries of such person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Unrestricted Subsidiary&#148; means, as it applies to the
Notes, (1)&nbsp;any Subsidiary of ours that shall be designated
an Unrestricted Subsidiary by the Board of Directors in the
manner provided below and (2)&nbsp;each Subsidiary of an
Unrestricted Subsidiary. The Board of Directors may designate
any Subsidiary of ours (other than a Restricted Subsidiary which
owns, legally or beneficially, all or a material portion of or
interest in any of the facilities located at Puntas Arenas in
Chile (including Chile&nbsp;I, Chile&nbsp;II, Chile&nbsp;III and
Chile&nbsp;IV), Waitara and Motunui in New Zealand (including
D&nbsp;I, D&nbsp;II, D&nbsp;III and D&nbsp;IV) and Point Lisas
in Trinidad (and owned as of the date of the issuance of the
Notes by Methanex Trinidad Unlimited)) to be an Unrestricted
Subsidiary unless such Subsidiary or any of its Subsidiaries
owns any Capital Stock or Indebtedness of, or holds any Lien on
any property of, ours or any other Subsidiary that is not a
Subsidiary of the Subsidiary to be so designated; <I>provided,
however,</I> that, immediately after giving effect to such
designation no Default shall have occurred and be continuing.
The Board of Directors may designate any Unrestricted Subsidiary
to be a Restricted Subsidiary; <I>provided, however,</I> that
immediately after giving effect to such designation no Default
shall have occurred and be continuing. Any such designation by
the Board of Directors shall be evidenced to the Trustee by
promptly filing with the Trustee a copy of the board resolution
giving effect to such designation and an Officers&#146;
Certificate certifying that such designation complied with the
foregoing provisions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;U.S. Government Obligations&#148; means direct obligations
(or certificates representing an ownership interest in such
obligations) of the United States of America (including any
agency or instrumentality thereof) for the payment of which the
full faith and credit of the United States of America is pledged
and which are not callable at the issuer&#146;s option.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Voting Stock&#148; of any person as of any date means the
Capital Stock of such person that is at the time entitled to
vote in the election of the board of directors of such person.
</DIV>

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<A name='110'></A>
</DIV>

<!-- link1 "TAX CONSIDERATIONS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>TAX CONSIDERATIONS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Purchasers of the Notes should consult their own tax advisors
with respect to their particular circumstances and with respect
to the effects of state, local or foreign (including Canadian
federal or provincial) tax laws to which they may be subject.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Certain U.S. Federal Income Tax Considerations</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following discussion is a general summary of certain
material U.S. federal income tax consequences of the purchase,
ownership and disposition of Notes and deals only with Notes
held as capital assets, within the meaning of Section&nbsp;1221
of the Code, by U.S. Holders who purchase Notes in the offering
at a price equal to the issue price of the Notes (i.e., the
first price at which a substantial amount of the Notes is sold,
other than to bond houses, brokers or similar persons or
organizations acting in the capacity of underwriters, placement
agents or wholesalers). As used herein, a U.S. Holder means a
beneficial owner of the Notes that is, for U.S. federal income
tax purposes:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    an individual who is a citizen or resident of the United States;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a corporation (or entity treated as a corporation for such
    purposes) created or organized in or under the laws of the
    United States or of any political subdivision of the United
    States;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    an estate, the income of which is includible in gross income for
    U.S. federal income tax purposes regardless of its source; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a trust if (x)&nbsp;a U.S. court is able to exercise primary
    supervision over the administration of the trust and one or more
    U.S. persons, as described in section 7701(a)(30) of the Code,
    have authority to control all substantial decisions of the
    trust, or (y)&nbsp;the trust has a valid election in effect
    under applicable Treasury Regulations to be treated as a U.S.
    person.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This discussion is general and does not consider the U.S.
federal income tax consequences of special classes of U.S.
Holders, including but not limited to dealers in securities or
currencies, banks, tax-exempt organizations, life insurance
companies, financial institutions, broker-dealers, U.S. Holders
holding the Notes as part of a constructive sale, wash sale,
conversion transaction or other integrated transaction or a
straddle, hedge or synthetic security, certain U.S. expatriates,
U.S. Holders whose functional currency is not the U.S. dollar or
pass-through entities (including partnerships and entities and
arrangements classified as partnerships for U.S. federal income
tax purposes) and beneficial owners of pass-through entities.
U.S. Holders who purchase Notes at a price other than the issue
price of the Notes should consult their tax advisors as to the
possible applicability to them of the amortizable bond premium
or market discount rules. If a partnership (or an entity or
arrangement classified as a partnership for U.S. federal income
tax purposes) holds Notes, the U.S. federal income tax treatment
of a partner in the partnership generally will depend on the
status of the partner and the activities of the partnership, and
partnerships holding Notes should consult their own tax advisors
regarding the U.S. federal income tax consequences of
purchasing, owning and disposing of the Notes. This summary does
not address the effect of any U.S. state, local, or federal
estate and gift tax on a U.S. Holder of the Notes. The summary
is based on the Code, its legislative history, existing and
proposed regulations, and published rulings and court decisions,
all as in effect or in existence as of the date of this
prospectus supplement and all subject to change at any time,
possibly with retroactive effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Prospective purchasers of the Notes should consult their own tax
advisors concerning the consequences, in their particular
circumstances, under U.S.&nbsp;federal income tax laws and the
laws of any relevant state, local or other foreign tax
jurisdiction of purchase, ownership and disposition of the Notes.
</DIV>

<P align="center" style="font-size: 10pt;">37

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<FONT face="helvetica,arial">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Payments of Interest</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The gross amount of interest paid on the Notes (including any
Additional Amounts and any Canadian tax withheld therefrom) will
be includible in the gross income of a U.S. Holder as ordinary
interest income at the time it is received or accrued, depending
on whether the holder uses the cash or accrual method of
accounting for U.S. federal income tax purposes. Interest paid
by Methanex on the Notes will constitute foreign source income
and, for taxable years ending on or prior to December&nbsp;31,
2006, generally will be considered &#147;passive income&#148;
or, in the case of certain U.S. holders, &#147;financial
services income.&#148; For taxable years beginning after
December&nbsp;31, 2006, interest paid on the Notes will be
considered &#147;passive category income,&#148; or, in the case
of certain U.S. holders, &#147;general category income.&#148;
Each of these types of income is treated separately from other
types of income in computing the foreign tax credit allowable to
U.S. holders under U.S. federal income tax laws. The rules
relating to foreign tax credits are complex and the availability
of a foreign tax credit depends on numerous factors. Prospective
purchasers of the Notes should consult their own tax advisers
concerning the application of the United States foreign tax
credit rules to their particular situation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Sale, Exchange or Redemption and Other Disposition of the
Notes</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Unless a nonrecognition provision of the U.S. federal income tax
laws applies, upon the sale, exchange, redemption, retirement or
other taxable disposition of a Note, a U.S. Holder will
generally recognize taxable gain or loss equal to the difference
between the amount realized on the disposition (not including
any amounts received that are attributable to accrued and unpaid
interest, which are taxable as ordinary interest income in
accordance with the holder&#146;s method of accounting) and the
U.S. Holder&#146;s tax basis in the Note. A U.S. Holder&#146;s
tax basis in a Note will generally be its cost. Such gain or
loss generally will be capital gain or loss and will be
long-term capital gain or loss if the U.S. Holder held the Note
for more than one year at the time of the disposition. Long-term
capital gains recognized by individuals and certain other
non-corporate U.S. Holders generally are eligible for reduced
rates of taxation. The deductibility of capital losses is
subject to limitations. Capital gain or loss recognized by a
U.S. holder generally will be U.S. source gain or loss.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Information Reporting and Backup Withholding</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Payments of principal and interest on the Notes held by certain
non-corporate U.S. Holders and the proceeds of a disposition of
such Notes may be subject to U.S. information reporting
requirements. Such payments also may be subject to United States
backup withholding if the U.S. Holder does not provide a
taxpayer identification number or otherwise establish an
exemption. The U.S. Holder may credit the amounts withheld
against its United States federal income tax liability and claim
a refund for amounts withheld in excess of its tax liability.
U.S. Holders should consult their tax advisors as to their
qualification for exemption from backup withholding and the
procedure for obtaining such an exemption.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Certain Canadian Federal Income Tax Considerations</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following is a summary of the principal Canadian federal
income tax consequences generally applicable to a holder of
Notes acquired at original issuance who at all relevant times,
for the purposes of the <I>Income Tax Act</I> (Canada) (the
&#147;Act&#148;), is not resident in Canada, deals with us at
arm&#146;s length, holds the Notes as capital property and does
not use or hold and is not deemed to use or hold the Notes in
carrying on a business in Canada (a &#147;Holder&#148;). For the
purposes of the Act, related persons (as therein defined) are
deemed not to deal at arm&#146;s length. It is generally a
question of fact whether persons not related to each other deal
at arm&#146;s length. This summary does not address the special
tax consequences which may apply to a Holder of Notes who is an
insurer carrying on business in Canada or elsewhere for the
purposes of the Act.
</DIV>

<P align="center" style="font-size: 10pt;">38

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This summary is based on the current provisions of the Act and
the regulations thereunder, our understanding of the current
published administrative and assessing practices of Canada
Customs and Revenue Agency, and all specific proposals to amend
the Act and the regulations publicly announced by the Minister
of Finance (Canada) prior to the date hereof. This summary is
not exhaustive of all possible Canadian federal income tax
considerations and does not otherwise take into account or
anticipate changes in the law, whether by judicial, governmental
or legislative decisions or action, nor does it take into
account tax legislation or considerations of any province or
territory of Canada or any jurisdiction other than Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The payment of interest, principal or premium, if any, to a
Holder of the Notes will be exempt from Canadian withholding
tax. No other tax on income or capital gains will be payable
under the Act in respect of the holding, redemption or
disposition of the Notes by a Holder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
THIS SUMMARY IS OF A GENERAL NATURE ONLY AND DOES NOT CONSTITUTE
LEGAL OR TAX ADVICE TO ANY PARTICULAR HOLDER OF NOTES. NO
REPRESENTATION IS MADE WITH RESPECT TO THE TAX CONSEQUENCES TO
ANY PARTICULAR HOLDER. CONSEQUENTLY, HOLDERS OF NOTES SHOULD
CONSULT THEIR OWN TAX ADVISORS WITH RESPECT TO THEIR PARTICULAR
CIRCUMSTANCES.
</DIV>

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<DIV align="left" style="font-size: 10pt;">
<A name='111'></A>
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>UNDERWRITING</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subject to the terms and conditions of an underwriting agreement
between us and the Underwriters, the Underwriters have agreed to
purchase from us severally, and we have agreed to sell to the
Underwriters, all of the Notes in this offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The underwriting agreement provides that the obligations of the
Underwriters are subject to certain conditions precedent, and
that the Underwriters are committed to take and pay for all of
the Notes, if any are taken as indicated in the table below.
Under the underwriting agreement, we have agreed to indemnify
the Underwriters and their controlling persons against certain
liabilities in connection with the offering, including
liabilities under the Securities Act, and to contribute to
payments that the Underwriters may be required to make in
respect thereof.
</DIV>
<FONT face="times new roman,times">

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="68%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B><FONT face="helvetica,arial">Underwriters</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">Principal Amount of Notes</FONT></B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">ABN AMRO Incorporated
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">BNP Paribas Securities
    Corp.&nbsp;</FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">CIBC World Markets
    Corp.&nbsp;</FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">RBC Capital Markets Corporation
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">Total
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><FONT face="helvetica,arial">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">150,000,000</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>
</FONT>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Notes sold by the underwriters to the public will initially be
offered at the initial public offering price set forth on the
cover of this Prospectus. Any Notes sold by the underwriters to
securities dealers may be sold at a discount from the initial
public offering price of up
to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%
of the principal amount of Notes. Any such securities dealers
may resell any Notes purchased from the underwriters to certain
other brokers or dealers at a discount from the initial public
offering price of up
to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%
of the principal amount of Notes. If all the Notes are not sold
at the initial offering price, the underwriters may change the
offering price and the other selling terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This offering is being made in the United States pursuant to the
multijurisdictional disclosure system implemented by the
securities regulatory authorities in the United States and
Canada. This prospectus was filed with the British Columbia
Securities Commission, and forms part of a registration
statement on Form&nbsp;F-9 filed with the United States
Securities and Exchange Commission, or the SEC, to register the
Notes under the United States Securities Act of 1933, as
amended, or the Securities Act, and to qualify under the
securities laws of the Province of British Columbia the
distribution of the Notes being offered and sold in the United
States and elsewhere outside of Canada. This prospectus does not
qualify the distribution of any Notes which may be offered and
sold in any province of Canada, including the Province of
British Columbia. The Notes may only be offered or sold,
directly or indirectly, in Canada, or to or for the benefit of
any resident of Canada, pursuant to exemptions from the
prospectus requirements of Canadian securities laws, and only by
securities dealers registered in the applicable province or
pursuant to exemptions from the registered dealer requirements.
Subject to applicable law, the Notes may also be offered outside
of the United States and Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Notes are a new issue of securities with no established
trading market. We have been advised by the underwriters that
the underwriters intend to make a market in the Notes but are
not obligated to do so and may discontinue market making at any
time without notice. No assurance can be given as to the
liquidity of the trading market for the Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with the offering of the Notes, the underwriters
may purchase and sell Notes in the open market. These
transactions may include short sales, stabilizing transactions
and purchases to cover positions created by short sales. Short
sales involve the sale by the underwriters of a greater number
of Notes than they are required to purchase in the offering of
the Notes. Stabilizing transactions consist of certain bids or
purchases made for the purpose of preventing or retarding a
decline in the market price of the Notes while the offering is
in progress.
</DIV>

<P align="center" style="font-size: 10pt;">40

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The underwriters also may impose a penalty bid. This occurs when
a particular underwriter repays to the underwriters a portion of
the underwriting commission received by it because the
representatives have repurchased Notes sold by or for the
account of such underwriter in stabilizing or short covering
transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
These activities by the underwriters may stabilize, maintain or
otherwise affect the market price of the Notes. As a result, the
price of the Notes may be higher than the price that otherwise
might exist in the open market. If these activities are
commenced, they may be discontinued by the underwriters at any
time. These transactions may be effected in the over-the-counter
market or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each underwriter has represented, warranted and agreed that:
(1)&nbsp;it has not offered or sold and, prior to the expiry of
a period of six months from the closing of the offering of the
Notes, will not offer or sell any Notes to persons in the United
Kingdom except to persons whose ordinary activities involve them
in acquiring, holding, managing or disposing of investments (as
principal or agent) for the purposes of their businesses or,
from July&nbsp;1, 2005, are registered as qualified investors
within the meaning of Article&nbsp;2(e) of the Prospectus
Directive (2003/71/EC) or otherwise in circumstances which have
not resulted and will not result in an offer of transferable
securities to the public in the United Kingdom within the
meaning of the Public Offers of Securities Regulations 1995 and,
after July&nbsp;1, 2005, Section&nbsp;102B of the FSMA;
(2)&nbsp;it has only communicated or caused to be communicated
and will only communicate or cause to be communicated any
invitation or inducement to engage in investment activity
(within the meaning of section 21 of the FSMA) received by it in
connection with the issue or sale of any Notes in circumstances
in which section 21(1) of the FSMA does not apply to the Issuer;
and (3)&nbsp;it has complied and will comply with all applicable
provisions of the FSMA with respect to anything done by it in
relation to the Notes in, from or otherwise involving the United
Kingdom.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
From time to time, the underwriters and certain of their
affiliates may have engaged, and may in the future engage, in
transactions, including investment banking and commercial
banking transactions, with and perform services, for us and our
affiliates, in the ordinary course of business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The underwriters are affiliates of banks which are lenders to us
under our unsecured revolving credit facility and to certain of
our subsidiaries under certain debt obligations. Consequently,
we may be considered to be a connected issuer of the
underwriters under applicable Canadian securities legislation.
We are in compliance with the terms of the agreement governing
the credit facility and our subsidiaries are in compliance with
the terms of the agreements governing their debt obligations.
See &#147;Description of Certain Indebtedness&#148;. None of the
underwriters nor the banks affiliated with them was involved in
our decision to distribute the Notes offered hereby. The
underwriters negotiated the public offering price of the Notes
with us.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company estimates that its share of the total expenses of
the offering of the Notes, excluding the underwriters&#146;
commission, will be approximately
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A prospectus in electronic format may be made available on the
web sites maintained by one or more of the lead managers of this
offering and may also be made available on web sites maintained
by other underwriters.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='112'></A>
</DIV>

<!-- link1 "CORPORATE INFORMATION" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>CORPORATE INFORMATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We were incorporated under the laws of Alberta on March&nbsp;11,
1968 and were continued under the <I>Canada Business
Corporations Act </I>on March&nbsp;5, 1992. Our registered and
head office is located at 1800 Waterfront Centre, 200 Burrard
Street, Vancouver, British Columbia V6C&nbsp;3M1 (telephone:
604-661-2600). Our significant subsidiaries (and their
jurisdictions of incorporation or formation) are: Cape Horn
Finance Limited (Barbados), Methanex Atlas Holdings Limited
(Barbados), Methanex Chile Limited (Barbados), Methanex Holdings
(Barbados) Limited (Barbados), Methanex Trinidad Holdings
Limited (Barbados), Waterfront Shipping Company Limited (Barba-
</DIV>

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<DIV align="left" style="font-size: 10pt;">
dos), Methanex Europe NV (Belgium), Methanex International
Holdings Limited (Cayman), Methanex Holdings Ltd. (Delaware),
Methanex Netherlands BV (Netherlands), Methanex New Zealand
Limited (New Zealand), Methanex Methanol Company (Texas
partnership), Atlas Methanol Company Unlimited (Trinidad) and
Methanex Trinidad Unlimited (Trinidad). Each of these
subsidiaries is wholly-owned, directly or indirectly, except for
Atlas Methanol Company Unlimited, in which we indirectly hold a
63.1% interest.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='113'></A>
</DIV>

<!-- link1 "CHANGES IN SHARE CAPITAL" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>CHANGES IN SHARE CAPITAL</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On May&nbsp;5, 2005, we announced an increase in the quarterly
dividend paid to holders of our common shares, from $0.08 per
share to $0.11 per share. The increased dividend commenced with
the dividend paid on June&nbsp;30, 2005 to holders of common
shares of record on June&nbsp;16, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On May&nbsp;5, 2005, we also announced a normal course issuer
bid to repurchase up to 5,917,629 of our common shares,
representing not more than 5% of the total common shares then
issued and outstanding. The bid commenced May&nbsp;17, 2005 and
will expire on the earlier of May&nbsp;16, 2006 or the date we
purchase the maximum number of shares under the bid. Purchases
under the bid will be made from time to time through the
facilities of the Toronto Stock Exchange at the then current
market price of our common shares. All common shares acquired
under the bid will be cancelled.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='114'></A>
</DIV>

<!-- link1 "LEGAL MATTERS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>LEGAL MATTERS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The validity of the Notes will be passed upon for us by McCarthy
T&#233;trault&nbsp;LLP, with respect to matters of Canadian law,
and by Fried, Frank, Harris, Shriver&nbsp;&#38;
Jacobson&nbsp;LLP, with respect to matters of United States law.
Certain legal matters in connection with the offering of the
Notes will be passed upon for the underwriters by Skadden, Arps,
Slate, Meagher&nbsp;&#38; Flom&nbsp;LLP, with respect to matters
of United States law.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='115'></A>
</DIV>

<!-- link1 "EXPERTS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>EXPERTS</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The consolidated financial statements at December&nbsp;31, 2003
and 2004 and for the two years then ended have been incorporated
by reference in this prospectus and in the registration
statement of which this prospectus forms a part, in reliance
upon the report of KPMG LLP, independent registered public
accounting firm, as stated in their reports also incorporated by
reference herein, and upon the authority of said firm as experts
in accounting and auditing.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='116'></A>
</DIV>

<!-- link1 "DOCUMENTS INCORPORATED BY REFERENCE" -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>DOCUMENTS INCORPORATED BY REFERENCE</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We file annual and quarterly financial information, material
change reports and other information with the securities
commission or similar authority in each of the provinces of
Canada, or the Canadian Commissions. The Canadian Commissions
allow us to &#147;incorporate by reference&#148; the information
we file with them, which means that we can disclose important
information to you by referring you to those documents.
Information that is incorporated by reference is an important
part of this prospectus. We incorporate by reference the
documents listed below, which were filed with the Canadian
Commissions under the various securities legislation:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Our Annual Information Form dated March&nbsp;21, 2005.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Our Information Circular dated March&nbsp;4, 2005 relating to
    the Annual General Meeting of shareholders held on May&nbsp;5,
    2005 (excluding the sections entitled &#147;Corporate
    Governance&#148;, &#147;Report on Executive Compensation&#148;
    and &#147;Total Shareholder Return Comparison&#148;).</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Our audited annual consolidated financial statements as at and
    for the years ended December&nbsp;31, 2003 and 2004, together
    with the notes thereto and the auditors&#146; report thereon.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<P align="center" style="font-size: 10pt;">42

</FONT>

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<FONT face="helvetica,arial">

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Our unaudited interim consolidated financial statements as at
    June&nbsp;30, 2005 and for the six months ended June&nbsp;30,
    2004 and 2005 and the notes thereto.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Management&#146;s discussion and analysis for the year ended
    December&nbsp;31, 2004.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Management&#146;s discussion and analysis for the six months
    ended June&nbsp;30, 2005 contained in our interim report to
    shareholders.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Material change report dated May&nbsp;19, 2005, with respect to
    our normal course issuer bid.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Material change report dated June&nbsp;24, 2005, with respect to
    recent gas curtailments to our Chile facilities.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any document of the types referred to in the preceding paragraph
(including material change reports other than confidential
material change reports) filed by us with the Canadian
Commissions after the date of this prospectus and prior to the
termination of this distribution shall be deemed to be
incorporated by reference into this prospectus. Any document
filed by us with the SEC under the Exchange Act after the date
of this prospectus will be deemed to be incorporated by
reference into this prospectus if, and to the extent, expressly
provided therein. The information permitted to be omitted from
this prospectus will be contained in a supplemented prospectus
and will be incorporated by reference herein as of the date of
such supplemented prospectus. Any statement contained in this
prospectus or in a document incorporated or deemed to be
incorporated by reference herein shall be deemed to be modified
or superseded, for purposes of this prospectus, to the extent
that a statement contained in this prospectus or in any other
subsequently filed document which also is or is deemed to be
incorporated by reference herein modifies or supersedes such
statement. The modifying or superseding statement need not state
that it has modified or superseded a prior statement or include
any other information set forth in the document that it modifies
or supersedes. The making of a modifying or superseding
statement is not to be deemed an admission for any purposes that
the modified or superseded statement, when made, constituted a
misrepresentation, an untrue statement of a material fact or an
omission to state a material fact that is required to be stated
or that is necessary to make a statement not misleading in light
of the circumstances in which it was made. Any statement so
modified or superseded shall not, except as so modified or
superseded, be deemed to constitute a part of this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Copies of the documents incorporated by reference may be
obtained without charge from the Senior Vice President, General
Counsel and Corporate Secretary of Methanex Corporation at
1800&nbsp;Waterfront Centre, 200&nbsp;Burrard Street, Vancouver,
British Columbia, V6C&nbsp;3M1. Telephone: (604) 661-2600.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='117'></A>
</DIV>

<!-- link1 "WHERE YOU CAN FIND MORE INFORMATION" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>WHERE YOU CAN FIND MORE INFORMATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have filed a registration statement on Form&nbsp;F-9 with the
SEC with respect to the Notes offered hereby. This prospectus,
which constitutes a part of the registration statement, does not
contain all of the information in the registration statement or
the exhibits that are a part of such registration statement. For
further information about us and the Notes we are offering, you
should review the entire registration statement, including the
exhibits that were filed as part of the registration statement.
The registration statement, including the exhibits, may be
inspected, without charge, at the public reference facilities
maintained by the SEC at 100 F Street, N.E., Washington, D.C.
20549. Copies of all or any part of the registration statement
may be obtained from this office after payment at prescribed
rates. You will also be able to obtain a free copy of the
registration statement, including the exhibits, from the
SEC&#146;s website at www.sec.gov.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are subject to certain of the informational requirements of
the U.S. Securities Exchange Act of 1934, as amended, or the
Exchange Act, and in accordance therewith, file reports and
other information with the SEC. Under a multijurisdictional
disclosure system, or MJDS, adopted by the United States, some
reports and other information may be prepared in accordance with
the
</DIV>

<P align="center" style="font-size: 10pt;">43

</FONT>

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<FONT face="helvetica,arial">

<DIV align="left" style="font-size: 10pt;">
disclosure requirements of Canada, which requirements are
different from those of the United States. As a foreign private
issuer, we are exempt from the rules under the Exchange Act
prescribing the furnishing and content of proxy statements, and
our officers, directors and principal shareholders are exempt
from the reporting and short-swing profit recovery provisions
contained in Section&nbsp;16 of the Exchange Act. In addition,
we are not required to publish financial statements as promptly
as U.S. companies. Our Exchange Act reports and other
information filed with the SEC may be inspected and copied at
the public reference facility maintained by the SEC at its
location referred to above.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='118'></A>
</DIV>

<!-- link1 "DOCUMENTS FILED AS PART OF THE REGISTRATION STATEMENT" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>DOCUMENTS FILED AS PART&nbsp;OF THE REGISTRATION STATEMENT</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following documents have been filed or will be filed with
the SEC as part of the registration statement of which this
prospectus forms a part: the documents listed above under
&#147;Documents Incorporated by Reference&#148;; a form of the
Underwriting Agreement; earnings coverage calculations as at and
for the twelve months ended December&nbsp;31, 2004 and
June&nbsp;30, 2005; consent of KPMG&nbsp;LLP; consent of
McCarthy T&#233;trault&nbsp;LLP; powers of attorney; the
Indenture; a form of the Fourth Supplemental Indenture; a form
of our officers&#146; certificate in respect of the Notes; and
Statement of Eligibility on Form&nbsp;T-1 of the Trustee for the
Indenture.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt;">44

</FONT>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<FONT face="helvetica,arial">

<DIV align="center" style="font-size: 2pt;">
<DIV style="width: 100%; border-top: 2.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have not authorized any dealer,
salesperson or other person to give any information or represent
anything to you other than the information contained in this
prospectus. You must not rely on unauthorized information or
representations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information in this prospectus
is currently only as of the date on its cover, and may change
after that date. For any time after the cover date of this
prospectus, we do not represent that our affairs are the same as
described or that the information in this prospectus is
correct&nbsp;&#151; nor do we imply those things by delivering
this prospectus or selling securities to you.
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 26%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt;">
<!-- TOC -->
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name="tocpage"></A>
</DIV>
<FONT face="times new roman,times">

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="90%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B><FONT face="helvetica,arial">Page</FONT></B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">&nbsp;<A HREF='#101'>Special
    Note&nbsp;Regarding Forward-Looking Statements</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">i</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">&nbsp;<A HREF='#102'>Pro Forma
    Interest Coverage</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">i</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">&nbsp;<A HREF='#103'>Credit
    Ratings</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">i</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">&nbsp;<A HREF='#104'>Summary</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">1</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">&nbsp;<A HREF='#105'>Risk
    Factors</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">10</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">&nbsp;<A HREF='#106'>Use of
    Proceeds</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">17</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">&nbsp;<A HREF='#107'>Capitalization</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">17</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">&nbsp;<A HREF='#108'>Description of
    Certain Indebtedness</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">18</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">&nbsp;<A HREF='#109'>Description of
    the Notes</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">19</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">&nbsp;<A HREF='#110'>Tax
    Considerations</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">37</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">&nbsp;<A HREF='#111'>Underwriting</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">40</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">&nbsp;<A HREF='#112'>Corporate
    Information</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">41</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">&nbsp;<A HREF='#113'>Changes in
    Share Capital</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">42</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">&nbsp;<A HREF='#114'>Legal
    Matters</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">42</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">&nbsp;<A HREF='#115'>Experts</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">42</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">&nbsp;<A HREF='#116'>Documents
    Incorporated by Reference</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">42</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">&nbsp;<A HREF='#117'>Where You Can
    Find More Information</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">43</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="helvetica,arial">&nbsp;<A HREF='#118'>Documents
    Filed as Part of the Registration Statement</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap><FONT face="helvetica,arial">44</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="o17489exv2w1.txt">Form of Underwriting Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="o17489exv4w9.txt">Earnings Coverage Calculation</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="o17489exv5w1.txt">Consent of KPMG LLP</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="o17489exv7w3.txt">Form of Officers' Certificate of Methanex Corp.</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="o17489exv7w4.txt">Form of Fourth Supplemental Indenture</A></FONT></TD></TR>
</TABLE>
</CENTER>
</FONT>

<DIV align="left" style="font-size: 10pt;">
<!-- /TOC -->
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 4pt;">
<DIV style="width: 100%; border-top: 2.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 2pt;">
<DIV style="width: 100%; border-top: 2.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 16pt; margin-top: 36pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>$150,000,000</B>
</DIV>

<DIV align="center" style="font-size: 15pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>METHANEX CORPORATION</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<IMG src="o17489methanac.jpg" alt="(METHANEX LOGO)">
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%
Senior Notes
due &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2015</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 50%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PROSPECTUS</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 50%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Joint Book-Running Managers</I>
</DIV>

<DIV align="center" style="font-size: 15pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>ABN AMRO INCORPORATED</B>
</DIV>

<DIV align="center" style="font-size: 15pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>BNP PARIBAS</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 21%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>CIBC WORLD MARKETS</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>RBC CAPITAL MARKETS</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2005
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 4pt;">
<DIV style="width: 100%; border-top: 2.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<FONT face="helvetica,arial">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PART&nbsp;II</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>INFORMATION NOT REQUIRED TO BE</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>DELIVERED TO OFFEREES OR PURCHASERS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Indemnification of Directors and Officers</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the <I>Canada Business Corporations Act
</I>(&#147;CBCA&#148;), which governs Methanex Corporation (the
&#147;Registrant&#148;), except in respect of an action by or on
behalf of the Registrant to procure a judgment in its favour,
the Registrant may indemnify a director or officer of the
Registrant, a former director or officer of the Registrant or a
person who acts or acted at the Registrant&#146;s request as a
director or officer, or an individual acting in a similar
capacity, of another entity and his or her heirs and legal
representatives, against all costs, charges and expenses,
including an amount paid to settle an action or satisfy a
judgment, reasonably incurred by him or her in respect of any
civil, criminal, administrative, investigative or other
proceeding in which he or she is involved because of that
association with the Registrant or other entity and provided
that he or she acted honestly and in good faith with a view to
the best interests of the Registrant or, as the case may be, to
the best interests of the other entity for which he or she acted
as a director or officer or in a similar capacity at the
Registrant&#146;s request, and in the case of a criminal or
administrative action or proceeding that is enforced by a
monetary penalty, he or she had reasonable grounds for believing
that his or her conduct was lawful. Such indemnification may be
made in connection with a derivative action only with court
approval. A director or officer (or other individual as
described above) is entitled to indemnification from the
Registrant as a matter of right in respect of all costs, charges
and expenses reasonably incurred by him or her in connection
with the defense of any civil, criminal, administrative,
investigative or other proceeding to which he or she is made a
party because of their association with the Registrant or other
entity if such individual is not judged by the court or other
competent authority to have committed any fault or omitted to do
anything that the individual ought to have done and has
fulfilled the conditions set forth above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In accordance with and subject to the CBCA, the by-laws of the
Registrant provide that except in respect of any action by or on
behalf of the Registrant to procure a judgment in its favor, the
Registrant may indemnify a director or officer of the
Registrant, a former director or officer of the Registrant, or a
person who acts or acted at the Registrant&#146;s request as a
director or officer of a body corporate, or an individual acting
in a similar capacity, of another entity against all costs,
charges and expenses, including an amount paid to settle an
action or satisfy a judgment, reasonably incurred by him or her
in respect of any civil, criminal or administrative action or
proceeding to which he or she is made a party by reason of his
or her being or having been a director or officer of the
Registrant or such body corporate, if the director or officer
(a)&nbsp;acted honestly and in good faith with a view of the
best interests of the Registrant, and (b)&nbsp;in the case of a
criminal or administrative action or proceeding that is enforced
by a monetary penalty, had reasonable grounds for believing that
his or her conduct was lawful. The Registrant has also entered
into indemnity agreements with its directors and officers which
provide substantially the same rights as provided for in the
CBCA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Registrant maintains directors&#146; and officers&#146;
liability insurance which insures the directors and officers of
the Registrant and its subsidiaries against certain losses
resulting from any wrongful act committed in their official
capacities for which they become obligated to pay to the extent
permitted by applicable law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Insofar as indemnification for liabilities arising under the
Securities Act of 1933, as amended (the &#147;Act&#148;) may be
permitted to directors, officers or persons controlling the
Registrant pursuant to the foregoing provisions, the Registrant
has been informed that in the opinion of the U.S. Securities and
Exchange Commission (the &#147;Commission&#148;) such
indemnification is against public policy as expressed in such
Act and is therefore unenforceable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Underwriting Agreement contains provisions by which the
Underwriters agree to indemnify the Registrant, each of the
directors and officers of the Registrant and each person who
controls the Registrant within the meaning of the Securities
Act, with respect to information furnished by the Underwriters
for use in this Registration Statement.
</DIV>

<P align="center" style="font-size: 10pt;">II-1

</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<FONT face="helvetica,arial">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>EXHIBITS</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<FONT face="times new roman,times">

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B><FONT face="helvetica,arial">Exhibit</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B><FONT face="helvetica,arial">Number</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B><FONT face="helvetica,arial">Description</FONT></B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">2</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Form of Underwriting Agreement
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Annual Information Form of the
    Registrant dated March&nbsp;21, 2005 (incorporated by reference
    to the Registrant&#146;s Form&nbsp;40-F for the year ended
    December&nbsp;31, 2004, filed March&nbsp;29, 2005 and amended
    April&nbsp;19, 2005, SEC file number 0-20115 (the &#147;2004
    Form&nbsp;40-F&#148;))
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.2</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Information Circular dated as of
    March&nbsp;4, 2005 issued in connection with the
    Registrant&#146;s annual meeting of shareholders held on
    May&nbsp;5, 2005, excluding the sections entitled
    &#147;Corporate Governance&#148;, &#147;Report on Executive
    Compensation&#148; and &#147;Total Shareholder Return
    Comparison,&#148; (incorporated by reference to the
    Registrant&#146;s Form&nbsp;6-K filed March&nbsp;30, 2005, SEC
    file number 0-20115)
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.3</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Annual Consolidated Financial
    Statements and Auditors&#146; Report for the years ended
    December&nbsp;31, 2003 and 2004, contained in the
    Registrant&#146;s 2004 Annual Report (incorporated by reference
    to the 2004 Form&nbsp;40-F)
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.4</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Interim consolidated financial
    statements (unaudited)&nbsp;of the Registrant for the six months
    ended June&nbsp;30, 2004 and 2005 (incorporated by reference to
    the Registrant&#146;s Form&nbsp;6-K filed July&nbsp;21, 2005,
    SEC file number 0-20115 (the &#147;Second Quarter 6-K&#148;))
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.5</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Management&#146;s Discussion and
    Analysis for the year ended December&nbsp;31, 2004 contained in
    the Registrant&#146;s 2004 Annual Report (incorporated by
    reference to the 2004 Form&nbsp;40-F)
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.6</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Management&#146;s Discussion and
    Analysis for the six months ended June&nbsp;30, 2005
    (incorporated by reference to the Second Quarter 6-K)
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.7</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Material Change Report of the
    Registrant dated May&nbsp;19, 2005 (incorporated by reference to
    the Registrant&#146;s Form&nbsp;6-K filed May&nbsp;19, 2005, SEC
    file number 0-20115)
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.8</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Material Change Report of the
    Registrant dated June&nbsp;24, 2005 (incorporated by reference
    to the Registrant&#146;s Form&nbsp;6-K filed June&nbsp;24, 2005,
    SEC file number 0-20115)
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.9</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Earnings coverage calculation as at
    and for the twelve months ended June&nbsp;30, 2005 and
    December&nbsp;31, 2004
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">5</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Consent of KPMG LLP
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">5</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.2*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Consent of McCarthy T&#233;trault
    LLP
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">6</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.1*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Power of Attorney
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">7</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Trust&nbsp;Indenture dated as of
    July&nbsp;20, 1995 between Methanex Corporation and United
    States Trust&nbsp;Company of New York, as Trustee (incorporated
    by reference to Exhibit&nbsp;7.1 to the Registrant&#146;s
    Form&nbsp;F-9 dated May&nbsp;31, 2002, SEC file number 333-89526)
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">7</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.2*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Second Supplemental Indenture dated
    as of June&nbsp;19, 2002 between Methanex Corporation and The
    Bank of New York (formerly United States Trust Company of New
    York), as Trustee
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">7</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.3</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Form of Officers&#146; Certificate
    of Methanex Corporation
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">7</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.4</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Form of Fourth Supplemental
    Indenture
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">7</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.5*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Statement of Eligibility of the
    Trustee on Form&nbsp;T-1
    </FONT></TD>
</TR>

</TABLE>
</CENTER>
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>*&nbsp;</TD>
    <TD align="left">
    previously filed</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt;">II-2

</FONT>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<FONT face="helvetica,arial">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PART&nbsp;III</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>UNDERTAKING AND CONSENT TO SERVICE OF PROCESS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Item&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Undertaking</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Registrant undertakes to make available, in person or by
telephone, representatives to respond to inquiries made by the
Commission staff, and to furnish promptly, when requested to do
so by the Commission staff, information relating to the
securities registered pursuant to Form&nbsp;F-9 or to
transactions in said securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Item&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consent to Service
of Process</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;Concurrently with the initial filing of this
Registration Statement on Form&nbsp;F-9, the Registrant filed
with the Commission a written irrevocable consent and power of
attorney on Form&nbsp;F-X.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;Any change to the name or address of the agent for
service of the Registrant will be communicated promptly to the
Commission by amendment to Form&nbsp;F-X referencing the file
number of this Registration Statement.
</DIV>

<P align="center" style="font-size: 10pt;">III-1

</FONT>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<FONT face="helvetica,arial">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SIGNATURES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to the requirements of the Securities Act, the
Registrant certifies that it has reasonable grounds to believe
that it meets all of the requirements for filing on
Form&nbsp;F-9 and has duly caused this Amendment No.&nbsp;1 to
the Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of
Vancouver, Province of British Columbia, Canada, on the
27th&nbsp;day of July,&nbsp;2005.
</DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    METHANEX CORPORATION</TD>
</TR>

</TABLE>

<DIV style="margin-top: 48pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="3%"></TD>
    <TD width="57%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>By:&nbsp;</TD>
    <TD align="left">
    /s/ <FONT style="font-variant:SMALL-CAPS">Ian P. Cameron
    </FONT></TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 3pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt" align="left">&nbsp;</DIV></TD>
</TR>

<TR valign="top"  style="font-size: 10pt;">
    <TD>&nbsp;</TD>
    <TD align="left">
    Name:&nbsp;Ian P. Cameron</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="8%"></TD>
    <TD width="52%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>Title:&nbsp;</TD>
    <TD align="left">
    Senior Vice President, Finance <BR>
     and Chief Financial Officer</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to the requirements of the Securities Act, this
Amendment No.&nbsp;1 to the Registration Statement has been
signed by the following persons in the capacities and on the
dates indicated.
</DIV>
<FONT face="times new roman,times">

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="39%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B><FONT face="helvetica,arial">Signature</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B><FONT face="helvetica,arial">Title</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B><FONT face="helvetica,arial">Date</FONT></B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT style="font-variant:SMALL-CAPS" face="helvetica,arial">*<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV></FONT><FONT face="helvetica,arial">Bruce
    Aitken
    </FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <FONT face="helvetica,arial">President, Chief Executive Officer
    and Director<BR>
    (Principal Executive Officer)
    </FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <FONT face="helvetica,arial">July&nbsp;27, 2005
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT face="helvetica,arial">/s/
    <FONT style="font-variant:SMALL-CAPS">Ian P. Cameron<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV></FONT></FONT><FONT face="helvetica,arial">Ian
    P. Cameron
    </FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <FONT face="helvetica,arial">Senior Vice President, Finance and
    Chief Financial&nbsp;Officer<BR>
    (Principal Financial Officer and Accounting&nbsp;Officer)
    </FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <FONT face="helvetica,arial">July&nbsp;27, 2005
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT style="font-variant:SMALL-CAPS" face="helvetica,arial">*<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV></FONT><FONT face="helvetica,arial">Howard
    Balloch
    </FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <FONT face="helvetica,arial">Director
    </FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <FONT face="helvetica,arial">July&nbsp;27, 2005
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT style="font-variant:SMALL-CAPS" face="helvetica,arial">*<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV></FONT><FONT face="helvetica,arial">Pierre
    Choquette
    </FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <FONT face="helvetica,arial">Director
    </FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <FONT face="helvetica,arial">July&nbsp;27, 2005
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT style="font-variant:SMALL-CAPS" face="helvetica,arial">*<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV></FONT><FONT face="helvetica,arial">Robert
    B. Findlay
    </FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <FONT face="helvetica,arial">Director
    </FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <FONT face="helvetica,arial">July&nbsp;27, 2005
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT style="font-variant:SMALL-CAPS" face="helvetica,arial">*<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV></FONT><FONT face="helvetica,arial">Brian
    D. Gregson
    </FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <FONT face="helvetica,arial">Director
    </FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <FONT face="helvetica,arial">July&nbsp;27, 2005
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT style="font-variant:SMALL-CAPS" face="helvetica,arial">*<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV></FONT><FONT face="helvetica,arial">A.
    Terence Poole
    </FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <FONT face="helvetica,arial">Director
    </FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <FONT face="helvetica,arial">July&nbsp;27, 2005
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT style="font-variant:SMALL-CAPS" face="helvetica,arial">*<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV></FONT><FONT face="helvetica,arial">John
    Reid
    </FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <FONT face="helvetica,arial">Director
    </FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <FONT face="helvetica,arial">July&nbsp;27, 2005
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT style="font-variant:SMALL-CAPS" face="helvetica,arial">*<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV></FONT><FONT face="helvetica,arial">Monica
    Sloan
    </FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <FONT face="helvetica,arial">Director
    </FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <FONT face="helvetica,arial">July&nbsp;27, 2005
    </FONT></TD>
</TR>

</TABLE>
</CENTER>
</FONT>

<P align="center" style="font-size: 10pt;">III-2

</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<FONT face="helvetica,arial">

<DIV align="left"><FONT size="1">

</FONT></DIV>
<FONT face="times new roman,times">

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="39%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B><FONT face="helvetica,arial">Signature</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B><FONT face="helvetica,arial">Title</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B><FONT face="helvetica,arial">Date</FONT></B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV><FONT face="helvetica,arial">Graham
    D. Sweeney
    </FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <FONT face="helvetica,arial">Director
    </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT style="font-variant:SMALL-CAPS" face="helvetica,arial">*<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV></FONT><FONT face="helvetica,arial">Anne
    L. Wexler
    </FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <FONT face="helvetica,arial">Director
    </FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <FONT face="helvetica,arial">July&nbsp;27, 2005
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <FONT face="helvetica,arial">*By:
    </FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <FONT face="helvetica,arial">/s/
    <FONT style="font-variant:SMALL-CAPS">Ian P. Cameron<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV></FONT></FONT><FONT face="helvetica,arial">Ian
    P. Cameron
    </FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <FONT face="helvetica,arial">Attorney-in-Fact
    </FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <FONT face="helvetica,arial">July&nbsp;27, 2005
    </FONT></TD>
</TR>

</TABLE>
</CENTER>
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt;">III-3

</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<FONT face="helvetica,arial">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>AUTHORIZED REPRESENTATIVE</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to the requirements of Section&nbsp;6(a) of the
Securities Act of 1933, the undersigned has signed this
Amendment No.&nbsp;1 to the Registration Statement, solely in
the capacity of the duly authorized representative in the United
States of Methanex Corporation, in the City of Vancouver,
British Columbia on July&nbsp;27th, 2005.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    METHANEX GULF COAST INC.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 48pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="3%"></TD>
    <TD width="57%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>By:&nbsp;</TD>
    <TD align="left">
    /s/ <FONT style="font-variant:SMALL-CAPS">John Floren
    </FONT></TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 3pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt" align="left">&nbsp;</DIV></TD>
</TR>

<TR valign="top"  style="font-size: 10pt;">
    <TD>&nbsp;</TD>
    <TD align="left">
    Name:&nbsp;John Floren</TD>
</TR>

<TR valign="top"  style="font-size: 10pt;">
    <TD>&nbsp;</TD>
    <TD align="left">
    Title:&nbsp;Vice President</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">III-4

</FONT>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<FONT face="helvetica,arial">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>EXHIBIT INDEX</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<FONT face="times new roman,times">

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B><FONT face="helvetica,arial">Exhibit</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B><FONT face="helvetica,arial">Number</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B><FONT face="helvetica,arial">Description</FONT></B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">2</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Form of Underwriting Agreement
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Annual Information Form of the
    Registrant dated March&nbsp;21, 2005 (incorporated by reference
    to the Registrant&#146;s Form&nbsp;40-F for the year ended
    December&nbsp;31, 2004, filed March&nbsp;29, 2005 and amended
    April&nbsp;19, 2005, SEC file number 0-20115 (the &#147;2004
    Form&nbsp;40-F&#148;))
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.2</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Information Circular dated as of
    March&nbsp;4, 2005 issued in connection with the
    Registrant&#146;s annual meeting of shareholders held on
    May&nbsp;5, 2005, excluding the sections entitled
    &#147;Corporate Governance&#148;, &#147;Report on Executive
    Compensation&#148; and &#147;Total Shareholder Return
    Comparison,&#148; (incorporated by reference to the
    Registrant&#146;s Form&nbsp;6-K filed March&nbsp;30, 2005, SEC
    file number 0-20115)
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.3</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Annual Consolidated Financial
    Statements and Auditors&#146; Report for the years ended
    December&nbsp;31, 2003 and 2004, contained in the
    Registrant&#146;s 2004 Annual Report (incorporated by reference
    to the 2004 Form&nbsp;40-F)
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.4</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Interim consolidated financial
    statements (unaudited)&nbsp;of the Registrant for the six months
    ended June&nbsp;30, 2004 and 2005 (incorporated by reference to
    the Registrant&#146;s Form&nbsp;6-K filed July&nbsp;21, 2005,
    SEC file number 0-20115 (the &#147;Second Quarter 6-K&#148;))
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.5</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Management&#146;s Discussion and
    Analysis for the year ended December&nbsp;31, 2004 contained in
    the Registrant&#146;s 2004 Annual Report (incorporated by
    reference to the 2004 Form&nbsp;40-F)
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.6</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Management&#146;s Discussion and
    Analysis for the six months ended June&nbsp;30, 2005
    (incorporated by reference to the Second Quarter 6-K)
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.7</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Material Change Report of the
    Registrant dated May&nbsp;19, 2005 (incorporated by reference to
    the Registrant&#146;s Form&nbsp;6-K filed May&nbsp;19, 2005, SEC
    file number 0-20115)
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.8</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Material Change Report of the
    Registrant dated June&nbsp;24, 2005 (incorporated by reference
    to the Registrant&#146;s Form&nbsp;6-K filed June&nbsp;24, 2005,
    SEC file number 0-20115)
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.9</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Earnings coverage calculation as at
    and for the twelve months ended June&nbsp;30, 2005 and
    December&nbsp;31, 2004
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">5</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Consent of KPMG LLP
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">5</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.2*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Consent of McCarthy T&#233;trault
    LLP
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">6</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.1*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Power of Attorney
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">7</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Trust&nbsp;Indenture dated as of
    July&nbsp;20, 1995 between Methanex Corporation and United
    States Trust&nbsp;Company of New York, as Trustee (incorporated
    by reference to Exhibit&nbsp;7.1 to the Registrant&#146;s
    Form&nbsp;F-9 dated May&nbsp;31, 2002, SEC file number 333-89526)
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">7</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.2*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Second Supplemental Indenture dated
    as of June&nbsp;19, 2002 between Methanex Corporation and The
    Bank of New York (formerly United States Trust Company of New
    York), as Trustee
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">7</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.3</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Form of Officers&#146; Certificate
    of Methanex Corporation
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">7</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.4</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Form of Fourth Supplemental
    Indenture
    </FONT></TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap><FONT face="helvetica,arial">7</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT face="helvetica,arial">.5*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="helvetica,arial">Statement of Eligibility of the
    Trustee on Form&nbsp;T-1
    </FONT></TD>
</TR>

</TABLE>
</CENTER>
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>*&nbsp;</TD>
    <TD align="left">
    previously filed</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

</FONT>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-2.1
<SEQUENCE>2
<FILENAME>o17489exv2w1.txt
<DESCRIPTION>FORM OF UNDERWRITING AGREEMENT
<TEXT>
<PAGE>
                                                                     Exhibit 2.1


                              METHANEX CORPORATION

                           -% SENIOR NOTES DUE -, 2015

                             UNDERWRITING AGREEMENT


                                                                    July -, 2005



ABN AMRO Incorporated
BNP Paribas Securities Corp.,
   As representatives of the several Underwriters
   named in Schedule I hereto,

c/o      ABN AMRO Incorporated
         55 East 52nd Street, 6th Floor
         New York, NY 10055

         BNP Paribas Securities Corp.,
         787 Seventh Avenue, 8th Floor
         New York, NY  10019-6016

Ladies and Gentlemen:

                  Methanex Corporation, a Canadian corporation (the "COMPANY"),
proposes, subject to the terms and conditions stated herein, to issue and sell
to the Underwriters named in Schedule I hereto (the "Underwriters") an aggregate
of US$150,000,000 principal amount of the Company's -% Senior Notes due -, 2015
(the "SECURITIES").

         1.   The Company represents and warrants to, and agrees with, each of
the Underwriters that:

                  (a)    The Company meets the requirements under the Securities
         Act (British Columbia) (the "BCSA") and the rules, regulations and
         published policy statements applicable in the Province of British
         Columbia, including the rules and procedures established for the
         pricing of securities after the final prospectus is receipted pursuant
         to National Instrument 44-103 - Post-Receipt Pricing (the "PREP
         PROCEDURES"), for use of a short form prospectus with respect to the
         Securities pursuant to National Instrument 44-101-Short Form Prospectus
         Distributions (collectively, "BRITISH COLUMBIA SECURITIES LAWS"); a
         preliminary short form


<PAGE>

         prospectus relating to the Securities has been filed with the British
         Columbia Securities Commission in the Province of British Columbia (the
         "BCSC") (the "CANADIAN PRELIMINARY PROSPECTUS"); the BCSC has issued a
         preliminary receipt for the Canadian Preliminary Prospectus; a final
         short form prospectus relating to the Securities has been filed with
         the BCSC (the "BASE PREP Prospectus") which omits the PREP Information
         (as hereinafter defined) in accordance with the PREP Procedures and the
         Company will prepare and file, promptly after the execution and
         delivery of this Agreement, with the BCSC, in accordance with the PREP
         Procedures, a supplemented PREP prospectus setting forth the PREP
         Information (the "SUPPLEMENTED PREP PROSPECTUS"); the information
         included in the Supplemented PREP Prospectus that is omitted from the
         Base PREP Prospectus and which is deemed under the PREP Procedures to
         be incorporated by reference in the Base PREP Prospectus as of the date
         of the Supplemented PREP Prospectus is referred to herein as the "PREP
         INFORMATION"; the Base PREP Prospectus for which a final receipt has
         been received from the BCSC, including the documents incorporated by
         reference therein, is herein referred to as the "CANADIAN PROSPECTUS",
         provided, however, that, from and after the time that the Supplemented
         PREP Prospectus is filed with the BCSC, the term "CANADIAN PROSPECTUS"
         shall refer to such Supplemented Prep Prospectus, including the
         documents incorporated by reference therein; the Canadian Preliminary
         Prospectus and the Canadian Prospectus for which a preliminary receipt
         and a final receipt were issued by the BCSC, respectively, were each in
         the form heretofore delivered to you and for each of the other
         Underwriters (including all documents incorporated by reference in the
         prospectus contained therein) and no other document with respect to
         such Preliminary Canadian Prospectus or Canadian Prospectus or document
         incorporated by reference therein has heretofore been filed or
         transmitted for filing with the BCSC; no order having the effect of
         ceasing or suspending the distribution of the Securities has been
         issued by the BCSC and no proceeding for that purpose has been
         initiated or, to the best of the Company's knowledge, threatened by the
         BCSC;

                  (b)    The Company meets the general eligibility requirements
         for use of Form F-9 under the Securities Act of 1933, as amended (the
         "ACT") and a registration statement on Form F-9 (File No. 333- -)
         covering the registration of the Securities under the Act has been
         filed with the United States Securities and Exchange Commission (the
         "COMMISSION"); such registration statement and any post-effective
         amendment thereto (including the Canadian Prospectus with such
         deletions therefrom and additions thereto as are permitted or required
         by Form F-9 and the applicable rules and regulations of the
         Commission), each in the form heretofore delivered to you and for each
         of the other Underwriters (including all documents incorporated by
         reference in the prospectus contained therein), have been declared
         effective by the Commission in such form; no other document with
         respect to such registration statement or document incorporated by
         reference therein has heretofore been filed or transmitted for filing
         with the Commission; no stop order suspending the effectiveness of such
         registration statement has been issued and no proceeding for that
         purpose has been initiated or, to the best of the Company's knowledge,
         threatened by the Commission (any preliminary prospectus included in
         such registration statement or filed with the Commission in accordance
         with the rules and regulations of the Commission under the Securities
         Act, is hereinafter called a "U.S.


                                       2
<PAGE>

         PRELIMINARY PROSPECTUS"); the various parts of such registration
         statement, including all exhibits thereto and the documents
         incorporated by reference in the prospectus contained in the
         registration statement at the time such part of the registration
         statement became effective, each as amended at the time such part of
         the registration statement became effective, but excluding the
         Statement of Eligibility on Form T-1 under the Trust Indenture Act of
         1939, as amended (the "TRUST INDENTURE ACT"), are hereinafter
         collectively called the "REGISTRATION Statement"; the Company will
         prepare and file, promptly after the execution and delivery of this
         Agreement, with the Commission, in accordance with General Instruction
         II.K of Form F-9, the Supplemented PREP Prospectus (with such deletions
         therefrom and additions thereto as are permitted or required by Form
         F-9 and the applicable rules and regulations of the Commission) (the
         "U.S. SUPPLEMENTED PROSPECTUS"); the prospectus included in the
         Registration Statement at the time it became effective, including the
         documents incorporated by reference therein, is herein called the "U.S.
         PROSPECTUS", provided, however, that, from and after the time that the
         U.S. Supplemented Prospectus is filed with the Commission, the term
         "U.S. PROSPECTUS" shall refer to such U.S. Supplemented Prospectus,
         including the documents incorporated by reference therein; the U.S.
         Preliminary Prospectus and the Canadian Preliminary Prospectus are
         hereinafter called the "PRELIMINARY PROSPECTUS" and the U.S. Prospectus
         and the Canadian Prospectus are hereinafter called the "PROSPECTUSES";

                  (c)    The Company has prepared and filed with the Commission
         an appointment of agent for service of process upon the Company on Form
         F-X in conjunction with the filing of the Registration Statement (the
         "FORM F-X"); the Company has also caused the Trustee to prepare and
         file with the Commission a Statement of Eligibility under the Trust
         Indenture Act on Form T-1;

                  (d)    No order preventing or suspending the use of any
         preliminary prospectus has been issued by the Commission or the BCSC,
         and each preliminary prospectus, at the time of filing thereof,
         conformed in all material respects to the requirements of the British
         Columbia Securities Laws, the Act and the Trust Indenture Act, and the
         rules and regulations of the Commission thereunder, and did not contain
         an untrue statement of a material fact or omit to state a material fact
         required to be stated therein or necessary to make the statements
         therein, in the light of the circumstances under which they were made,
         not misleading; provided, however, that this representation and
         warranty shall not apply to any statements or omissions made in
         reliance upon and in conformity with information furnished in writing
         to the Company by an Underwriter through ABN AMRO Incorporated or BNP
         Paribas Securities Corp. expressly for use therein;

                  (e)    The documents incorporated by reference in the
         Prospectuses, when they became effective or were filed with the BCSC
         and the Commission, as the case may be, conformed in all material
         respects to the requirements of the British Columbia Securities Laws
         and the Act or the Exchange Act of 1934, as amended (the "EXCHANGE
         ACT"), as applicable, and the rules and regulations of the Commission
         thereunder, and, none of such documents contained an untrue statement
         of a material fact or omitted to state a material fact required to be
         stated therein or



                                       3
<PAGE>

         necessary to make the statements therein not misleading; and any
         further documents so filed and incorporated by reference in the
         Prospectuses or any further amendment or supplement thereto, when such
         documents become effective or are filed with the BCSC and the
         Commission, as the case may be, will conform in all material respects
         to the requirements of the British Columbia Securities Laws and the Act
         or the Exchange Act, as applicable, and the rules and regulations of
         the Commission thereunder, and will not contain an untrue statement of
         a material fact or omit to state a material fact required to be stated
         therein or necessary to make the statements therein not misleading;
         provided, however, that this representation and warranty shall not
         apply to any statements or omissions made in reliance upon and in
         conformity with information furnished in writing to the Company by an
         Underwriter through ABN AMRO Incorporated or BNP Paribas Securities
         Corp. expressly for use therein;

                  (f)    As of the applicable filing date or effective date, as
         the case may be, (A) the Canadian Prospectus and any amendments or
         supplements thereto complied and will comply in all material respects
         with the British Columbia Securities Laws; (B) the U.S. Prospectus and
         the Registration Statement and any amendments or supplements thereto
         complied and will comply in all material respects with the requirements
         of the Act and the applicable rules and regulations of the Commission
         under the Act and the Trust Indenture Act; (C) the Form F-X and any
         amendments or supplements thereto complied and will comply in all
         material respects with the requirements of the Act and the applicable
         rules and regulations of the Commission under the Act; (D) neither the
         Registration Statement nor any amendment or supplement thereto,
         together with each document incorporated therein by reference (as
         modified or superseded by the Registration Statement, any amendment or
         supplement thereto or any subsequent document incorporated therein by
         reference), contained or will contain an untrue statement of a material
         fact or omit to state a material fact required to be stated therein or
         necessary to make the statements therein not misleading; and (E) each
         of the Canadian Prospectus and the U.S. Prospectus and any amendment or
         supplement thereto, together with each document incorporated therein by
         reference (as modified or superseded by the Prospectuses, any amendment
         or supplement thereto or any subsequent document incorporated therein
         by reference), constituted and will constitute full, true and plain,
         disclosure of all material facts relating to the Company and the
         Securities, and did not and will not include an untrue statement of a
         material fact or omit to state a material fact necessary in order to
         make the statements therein, in the light of the circumstances under
         which they were made, not misleading, except that the representations
         and warranties contained in clauses (D) and (E) above do not apply to
         statements or omissions made in reliance upon and in conformity with
         information furnished in writing to the Company by or on behalf of an
         Underwriter through ABN AMRO Incorporated or BNP Paribas Securities
         Corp. expressly for use in the Registration Statement, the
         Prospectuses, and any amendment or supplement thereto;

                  (g)    There are no reports or information that in accordance
         with the requirements of the BCSC must be made publicly available in
         connection with the offering of the Securities that have not been made
         publicly available as required; there are no documents required to be
         filed with the BCSC in connection with any preliminary prospectus or
         the Canadian Prospectus that


                                       4
<PAGE>

         have not been filed as required; there are no contracts, documents or
         other materials required to be described or referred to in the
         Registration Statement or the Prospectuses or to be filed as exhibits
         to the Registration Statement or with the BCSC that are not described,
         referred to or filed as required;

                  (h)    Neither the Company nor any of its subsidiaries has
         sustained, since the date of the latest audited financial statements
         included or incorporated by reference in the Prospectuses, any material
         loss or interference with its business from fire, explosion, flood or
         other calamity, whether or not covered by insurance, or from any labor
         dispute or court or governmental action, order or decree, otherwise
         than as set forth or contemplated in the Prospectuses, except where
         such event has not had or would not have a Material Adverse Effect (as
         defined herein); and, since the respective dates as of which
         information is given in the Registration Statement and the
         Prospectuses, there has not been any change in the share capital or
         long-term debt of the Company or any of its subsidiaries or any
         material adverse change, or any development involving a prospective
         material adverse change, in or affecting the general affairs,
         management, financial position, shareholders' equity or results of
         operations of the Company and its subsidiaries taken as a whole
         ("MATERIAL ADVERSE EFFECT"), otherwise than as set forth or
         contemplated in the Prospectuses;

                  (i)    The Company or one of its subsidiaries has good and
         marketable title in fee simple to all real property and good and
         marketable title to all personal property owned by it and that is
         material to the business of the Company and its subsidiaries, taken as
         a whole, in each case free and clear of all liens, encumbrances and
         defects except such as are described in the Prospectuses or such as do
         not individually or in the aggregate materially affect the value of
         such property and do not individually or in the aggregate interfere
         with the use made and proposed to be made of such property by the
         Company or its subsidiaries; and any real property and buildings, that
         are material to the business of the Company and its subsidiaries, taken
         as a whole, held under lease by the Company or one of its subsidiaries
         is held by it under valid, subsisting and enforceable leases with such
         exceptions as are not material and do not interfere with the use made
         and proposed to be made of such property and buildings by the Company
         or its subsidiaries;

                  (j)    Each subsidiary of the Company, as that term is defined
         in Rule 1-02 of Regulation S-X under the Act ("RULE 1-02"), that is a
         "significant subsidiary" of the Company (as such term is defined in
         Rule 1-02) (each a "SIGNIFICANT SUBSIDIARY" and, collectively, the
         "SUBSIDIARIES") is listed in Schedule II to this Agreement;

                  (k)    Each of the Company and its Subsidiaries has been duly
         incorporated, amalgamated, organized, continued or formed and is
         validly existing as a corporation or partnership in good standing under
         the laws of its jurisdiction of incorporation, amalgamation,
         organization, continuance or formation with power and authority
         (corporate and other) to own its properties and conduct its business as
         described in the Prospectuses, and has been duly qualified as an
         extra-provincial or foreign corporation or partnership for the
         transaction of


                                       5
<PAGE>

         business and is in good standing under the laws of each other
         jurisdiction in which it owns or leases properties or conducts any
         business so as to require such qualification, or is subject to no
         liability or disability by reason of the failure to be so qualified in
         any such jurisdiction, except where such failure to be so qualified
         would not have a Material Adverse Effect;

                  (l)    The Company has an authorized capitalization as set
         forth in the Prospectuses, and all of the issued shares in the capital
         of the Company have been duly and validly authorized and issued and are
         fully paid and non-assessable; and all of the issued and outstanding
         shares or partnership interests of each Subsidiary have been duly and
         validly authorized and issued, are fully paid and non-assessable and
         (except for directors' qualifying shares) are owned directly or
         indirectly by the Company in the percentages set forth on Schedule II
         hereto, free and clear of all liens, encumbrances, equities or claims
         (except for encumbrances on the shares of Atlas Methanol Company
         Unlimited incurred in connection with the limited recourse debt
         facilities described in note 7 to the Company's annual consolidated
         financial statements for the year ended December 31, 2004) and there
         are no restrictions on transfers of the Securities, subsequent to their
         issue, under the laws of Canada and of the United States, except for
         Securities sold in Canada pursuant to the Canadian Offering Memorandum
         (as defined herein);

                  (m)    The Securities have been duly authorized and, when
         issued and delivered pursuant to this Agreement and the Indenture (as
         defined herein), will have been duly executed, authenticated, issued
         and delivered and will constitute valid and legally binding obligations
         of the Company entitled to the benefits provided by the indenture dated
         as of July 20, 1995 (the "INITIAL INDENTURE") between the Company and
         The Bank of New York (formerly United States Trust Company of New
         York), as Trustee (the "TRUSTEE"), as supplemented by the First
         Supplemental Indenture dated as of June 18, 2002, as supplemented by
         the Second Supplemental Indenture dated as of June 19, 2002, as
         supplemented by the Third Supplemental Indenture dated as of December
         9, 2003, and as further supplemented by the Fourth Supplemental
         Indenture to be dated as of July -, 2005 (the "SUPPLEMENTAL INDENTURE")
         (as so supplemented, the "INDENTURE") between the Company and the
         Trustee, under which they are to be issued, which will be substantially
         in the form filed as an exhibit to the Registration Statement; the
         Initial Indenture has been duly authorized and duly qualified under the
         Trust Indenture Act and, when the Supplemental Indenture is executed
         and delivered by the Company and the Trustee, the Indenture will
         constitute a valid and legally binding instrument of the Company,
         enforceable against the Company in accordance with its terms, subject,
         to applicable bankruptcy, insolvency, moratorium, fraudulent conveyance
         and other similar laws affecting creditors' right and remedies
         generally and general principles of equity including, without
         limitation, standards of materiality, good faith, fair dealing and
         reasonableness, equitable defenses and limits as to the availability of
         equitable remedies, whether such principles are considered in a
         proceeding at law or in equity and the Securities and the Indenture
         will conform to the descriptions thereof in the Prospectuses;


                                       6
<PAGE>

                  (n)    The Company has the corporate power and authority to
         execute, deliver and perform its obligations under this Agreement and
         this Agreement has been duly authorized, executed and delivered by the
         Company;

                  (o)    The issue and sale of the Securities and the compliance
         by the Company with all of the provisions of the Securities, the
         Indenture and this Agreement and the consummation of the transactions
         herein and therein contemplated will not (i) conflict with or result in
         a breach or violation of any of the terms or provisions of, or
         constitute a default under, any indenture, mortgage, deed of trust,
         loan agreement or other agreement or instrument to which the Company or
         any of its subsidiaries is a party or by which the Company or any of
         its subsidiaries is bound or to which any of the property or assets of
         the Company or any of its subsidiaries is subject (except for such
         conflicts, breaches, violations or defaults which would not result in a
         Material Adverse Effect), (ii) result in any violation of the
         provisions of the Articles of Continuance or By-laws, as amended, of
         the Company or (iii) contravene any statute or any order, rule or
         regulation of any court, central bank, stock exchange or governmental
         agency or body ("GOVERNMENTAL AGENCY") having jurisdiction over the
         Company or any of its subsidiaries or any of their properties that
         would have a Material Adverse Effect; and no consent, approval,
         authorization, order, registration, clearance or qualification
         ("GOVERNMENTAL AUTHORIZATION") of or with any such Governmental Agency
         is required for the issue and sale of the Securities or the
         consummation by the Company of the transactions contemplated by this
         Agreement or the Indenture, except the registration under the Act of
         the Securities and such Governmental Authorization as may be required
         under British Columbia Securities Laws, such as have been obtained
         under the Trust Indenture Act and the Canada Business Corporations Act,
         and such Governmental Authorizations as may be required under state
         securities or Blue Sky laws in connection with the purchase and
         distribution of the Securities by the Underwriters;

                  (p)    Neither the Company nor any of its Subsidiaries is (A)
         in violation of its Articles of Continuance or By-laws (or other
         constating instrument, as applicable) or (B) in default in the
         performance or observance of any obligation, covenant or condition
         contained in any indenture, mortgage, deed of trust, loan agreement,
         lease or other agreement or instrument to which it is a party or by
         which it or any of its properties may be bound (except, in the case of
         clause (B) above, for such defaults which would not result in a
         Material Adverse Effect);

                  (q)    The statements set forth in the Prospectuses under the
         captions "Description of the Notes", insofar as they purport to
         constitute a summary of the terms of the Securities; under the captions
         "Tax Considerations", "Description of Certain Indebtedness" and
         "Underwriting", insofar as they purport to describe the provisions of
         the laws and documents referred to therein, are a fair summary of such
         terms and provisions and insofar as such statements constitute legal
         considerations, are accurate and correct in all material respects;

                  (r)    Except as disclosed in the Prospectuses or as would not
         individually or in the aggregate have a Material Adverse Effect (A) the
         Company and its subsidiaries are each in compliance with all applicable
         Environmental Laws (as defined herein), (B) the Company and



                                       7
<PAGE>

         its subsidiaries have all permits, authorizations and approvals
         required under any applicable Environmental Laws and are in compliance
         with their requirements, (C) there are no pending or, to the knowledge
         of the Company, threatened Environmental Claims (as defined herein)
         against the Company or any of its subsidiaries, and (D) to the
         knowledge of the Company, there are no circumstances with respect to
         any property or operations of the Company or its subsidiaries that
         could reasonably be anticipated to form the basis of an Environmental
         Claim against the Company or its subsidiaries. In addition, based upon
         the Company's reviews, conducted in the ordinary course of its
         business, of the effect of Environmental Laws on the business and
         operations of the Company and its subsidiaries, the Company has
         reasonably concluded that, except as disclosed in the Prospectuses, the
         costs and liabilities under Environmental Laws (including, without
         limitation, any capital or operating expenditures required for
         clean-up, remediation, closure of properties or compliance with
         Environmental Laws or any permit, license or approval, any related
         constraints on operating activities and potential liabilities to third
         parties) would not, singularly or in the aggregate, have a Material
         Adverse Effect, or be required to be disclosed in the Prospectuses;

                  For purposes of this subsection, the following terms shall
         have the following meanings: "ENVIRONMENTAL LAW" means any Canadian,
         United States, Chilean, New Zealand, Trinidad, Korean or Egyptian (or
         other applicable jurisdiction's) federal, provincial, state, local or
         municipal statute, law, rule, regulation, ordinance, code, or rule of
         common law and any judicial or administrative interpretation thereof,
         including any judicial or administrative order, consent decree or
         judgment, relating to the environment, health, safety or any chemical,
         material or substance, exposure to which is prohibited, limited or
         regulated by any governmental authority. "ENVIRONMENTAL CLAIM" means
         any administrative, regulatory or judicial action, suit, demand, demand
         letter, claim, lien, notice of noncompliance or violation,
         investigation or proceeding relating in any way to any Environmental
         Law;

                  (s)    Other than as set forth in the Prospectuses, there are
         no legal or governmental proceedings pending to which the Company or
         any of its subsidiaries is a party or of which any property of the
         Company or any of its subsidiaries is the subject which, if determined
         adversely to the Company or any of its subsidiaries, would individually
         or in the aggregate have a Material Adverse Effect; and, to the best of
         the Company's knowledge, no such proceedings are threatened or
         contemplated by any Governmental Agency or threatened by others;

                  (t)    The Company is not and, after giving effect to the
         offering and sale of the Securities, will not be an "INVESTMENT
         COMPANY", as such term is defined in the Investment Company Act of
         1940, as amended (the "INVESTMENT COMPANY ACT");

                  (u)    No Governmental Authorization of or with any
         Governmental Agency is required to effect payments of principal,
         premium, if any, and interest on the Securities;

                  (v)    No withholding tax imposed under the federal laws of
         Canada or the laws of the Province of British Columbia will be payable
         in respect of the payment of the commissions



                                       8
<PAGE>

         contemplated by this Agreement by the Company to an Underwriter,
         provided that the Underwriter deals at arm's length with the Company
         (as such term is understood for purposes of the Income Tax Act
         (Canada)), and that such commissions are payable in respect of services
         rendered by the Underwriter wholly outside of Canada that are performed
         in the ordinary course of business carried on by the Underwriter that
         includes the performance of such services for a fee and any such amount
         is reasonable in the circumstances;

                  (w)    No goods and services tax imposed under the federal
         laws of Canada will be payable by the Company in respect of the payment
         of commissions as contemplated by this Agreement to an Underwriter,
         provided that such commissions are in respect of services performed by
         an Underwriter wholly outside of Canada;

                  (x)    No stamp duty, documentary taxes or similar taxes are
         payable by the Company under the federal laws of Canada or the laws of
         the Province of British Columbia in connection with the sale and
         delivery of the Securities pursuant to this Agreement by the Company;

                  (y)    The Company and each of its subsidiaries have all
         licenses, franchises, permits, authorizations, approvals and orders and
         other concessions of and from all Governmental Agencies (collectively,
         "PERMITS") that are necessary to own or lease their properties and
         conduct their businesses as described in the Prospectuses, except where
         the failure to obtain such Permit would not have a Material Adverse
         Effect;

                  (z)    The Company or one of its subsidiaries owns or
         possesses, or can acquire on reasonable terms, adequate patents, patent
         rights, licenses, inventions, copyrights, know how (including trade
         secrets and other unpatented and/or unpatentable proprietary or
         confidential information, systems or procedures), trademarks, service
         marks, trade names or other intellectual property (collectively,
         "INTELLECTUAL PROPERTY") necessary to carry on the business now
         operated by the Company and its subsidiaries, and neither the Company
         nor any of its subsidiaries has received any notice or is otherwise
         aware of any infringement of or conflict with asserted rights of others
         with respect to any Intellectual Property or of any facts or
         circumstances which would render any Intellectual Property invalid or
         inadequate to protect the interest of the Company or any of its
         subsidiaries therein, and which infringement or conflict (if the
         subject of any unfavorable decision, ruling or finding) or invalidity
         or inadequacy, individually or in the aggregate, would result in a
         Material Adverse Effect;

                  (aa)  Neither the Company nor any of its subsidiaries has
         taken, directly or indirectly, any action which was designed to or
         which has constituted or which might reasonably be expected to cause or
         result in stabilization or manipulation of the price of any security of
         the Company or, except as permitted by this Agreement, facilitate the
         sale or resale of the Securities;

                  (bb)  KPMG LLP, who have audited and reported on certain
         annual consolidated financial statements of the Company and its
         subsidiaries, are independent public accountants as required by the Act
         and the rules and regulations thereunder and are independent with
         respect to



                                       9
<PAGE>

         the Company within the meaning of the Canada Business Corporations Act
         and the BCSA and regulations and policies thereunder;

                  (cc)  The consolidated financial statements included in the
         Prospectuses, together with the related schedules, if any, and notes,
         present fairly the financial position of the Company and its
         consolidated subsidiaries at the dates indicated and the consolidated
         statements of income and retained earnings and cash flows of the
         Company and its consolidated subsidiaries for the periods specified;
         such financial statements have been prepared in accordance with
         generally accepted accounting principles in Canada ("CANADIAN GAAP")
         applied on a consistent basis throughout the periods involved and,
         except for the interim consolidated financial statements included in
         the Prospectuses, have been reconciled to generally accepted accounting
         principles in the United States of America ("U.S. GAAP") in accordance
         with Item 17 of Form 20-F under the Exchange Act. The selected
         consolidated financial data and the summary consolidated financial data
         included in the Prospectuses present fairly the information shown
         therein and have been compiled on a basis consistent with that of the
         audited and unaudited consolidated financial statements included in the
         Prospectuses;

                  (dd)  No labor dispute with the employees of the Company or
         any subsidiary exists or, to the knowledge of the Company, is imminent,
         and the Company is not aware of any existing or imminent labor
         disturbance by the employees of any of its or any subsidiary's
         principal suppliers, manufacturers, customers or contractors, which, in
         either case, may reasonably be expected to result in a Material Adverse
         Effect;

                  (ee)  Except as disclosed in the Prospectuses, neither the
         Company nor any of its subsidiaries is a party to any contract,
         agreement or understanding with any officer, director, employee or any
         other person not dealing at arm's length with the Company which is
         required to be disclosed under the Act or applicable British Columbia
         Securities Laws and the Company does not have any outstanding loans to
         any of its officers or directors;

                  (ff)  The Company will not offer or sell the Securities,
         directly or indirectly, in Canada, or to or for the benefit of any
         resident of Canada, except in, or to or for the benefit of residents
         of, the Provinces of British Columbia, Alberta, Ontario or Quebec (the
         "DESIGNATED PROVINCES") on a private placement basis, under an offering
         memorandum (the "CANADIAN OFFERING MEMORANDUM") prepared for such
         purpose, pursuant to exemptions from the prospectus requirements of the
         securities laws of the Designated Provinces and otherwise in compliance
         with those laws, and any such sales will only be made through the
         Underwriters or their Canadian affiliates;

                  (gg)  Neither the Company nor any of its subsidiaries has
         conducted any transactions with the government of Cuba, Libya, Iran,
         Iraq, Sudan, Angola, North Korea, Syria, or Myanmar (Burma) (the
         "PROHIBITED COUNTRIES" ) or with any person or entity located in any of
         the Prohibited Countries;


                                       10
<PAGE>

                  The net proceeds from the sale of the Securities (as described
         in the Prospectuses under the caption "Use of Proceeds") have not been
         and will not be, directly or indirectly, invested in or committed to
         any business activities in any of the Prohibited Countries;

                  (hh)  The Indenture and the issuance of the Securities
         thereunder are exempt from Part VIII of the Canada Business Corporation
         Act pursuant to an exemption order obtained under the provisions of the
         Canada Business Corporation Act and, except for the filing of the
         Indenture with the BCSC, no other registration, recording or filing of
         the Indenture is required under the federal laws of Canada or the laws
         of the Province of British Columbia in connection with the
         authorization, execution, delivery and performance by the Company of
         the Indenture;

                  (ii)  The Company maintains disclosure controls and procedures
         as required by Rule 13a-15 or Rule 15d-15 under the Exchange Act and as
         contemplated by the certifications required under Form 52-109F1 and
         Form 52-109F2 under Multilateral Instrument 52-109 - Certification of
         Disclosures in Issuer's Annual and Interim Filings ('"52-109"), and
         such controls and procedures are effective to ensure that all material
         information concerning the Company is made known, on a timely basis, to
         the individuals responsible for the preparation of the Company's
         filings with the Commission and the BCSC. The Company has disclosed to
         its auditors and the audit committee of its board of directors (a) all
         significant deficiencies and material weaknesses in the design or
         operation of internal control over financial reporting (as such term is
         defined by Rules 13a-15(f) and 15d-15(f) under the Exchange Act and, in
         Canada, under 52-109) which are reasonably likely to adversely affect
         the Company's ability to record, process, summarize and report
         financial information and (b) any fraud, whether or not material, that
         involves management or other employees who have a significant role in
         the Company's internal controls over financial reporting;

                  (jj)  The Company maintains systems of internal accounting
         controls sufficient to provide reasonable assurance that (A)
         transactions are executed in accordance with management's general or
         specific authorizations; (B) transactions are recorded as necessary to
         permit preparation of financial statements in conformity with generally
         accepted accounting principles and to maintain asset accountability;
         (C) access to assets is permitted only in accordance with management's
         general or specific authorization; and (D) the recorded accountability
         for assets is compared with the existing assets at reasonable intervals
         and appropriate action is taken with respect to any differences; and

                  (kk)  The Company has complied in all material respects with
         the Sarbanes-Oxley Act of 2002 and the corporate governance rules of
         the Nasdaq National Market applicable to it.

         2.   Subject to the terms and conditions herein set forth, the Company
agrees to issue and sell to each of the Underwriters, and each of the
Underwriters agrees, severally and not jointly, to purchase from the Company, at
a purchase price of -% of the principal amount thereof, plus accrued interest,
if any, from July -, 2005 to the Time of Delivery hereunder, the principal
amount of Securities set forth opposite the name of such Underwriter in Schedule
I hereto.


                                       11
<PAGE>

         As compensation to the Underwriters for their respective commitments
hereunder, at the Time of Delivery the Company will pay to ABN AMRO Incorporated
and BNP Paribas Securities Corp., for the accounts of the several Underwriters,
an underwriting commission equal to -% of the principal amount of the
Securities.

         3.   Upon the authorization by ABN AMRO Incorporated and BNP Paribas
Securities Corp. of the release of the Securities, the several Underwriters
propose to offer the Securities for sale upon the terms and subject to the
conditions set forth in this Agreement and the Prospectuses. Additionally, the
Underwriters: (1) will not offer or sell Securities in any province or territory
of Canada except in, or to or for the benefit of residents of, the Designated
Provinces on a private placement basis under the Canadian Offering Memorandum
prepared for such purpose, pursuant to exemptions from the prospectus
requirements of the securities laws of the Designated Provinces and otherwise in
compliance with those laws, and any such sales will only be made through the
Underwriters or their Canadian affiliates; (2) have not offered or sold and,
prior to the expiry of a period of six months from the Time of Delivery, will
not offer or sell any Securities to persons in the United Kingdom except to
persons whose ordinary activities involve them in acquiring, holding, managing
or disposing of investments (as principal or agent) for the purposes of their
businesses or, from July 1, 2005, are registered as qualified investors within
the meaning of Article 2(e) of the Prospectus Directive (2003/71/EC) or
otherwise in circumstances which have not resulted and will not result in an
offer of transferable securities to the public in the United Kingdom within the
meaning of the Public Offers of Securities Regulations 1995 and, after July 1,
2005, Section 102B of the FSMA; (3) have only communicated or caused to be
communicated and will only communicate or cause to be communicated any
invitation or inducement to engage in investment activity (within the meaning of
section 21 of the FSMA) received by them in connection with the issue or sale of
any Securities in circumstances in which section 21 (1) of the FSMA does not
apply to the Company; and (4) have complied and will comply with all applicable
provisions of the FSMA with respect to anything done by them in relation to the
Securities in, from or otherwise involving the United Kingdom.

         4.   (a) The Securities to be purchased by each Underwriter hereunder
will be represented by one or more definitive global Securities in book-entry
form which will be deposited by or on behalf of the Company with The Depository
Trust Company ("DTC") or its designated custodian. The Company will deliver the
Securities to ABN AMRO Incorporated and BNP Paribas Securities Corp., for the
account of each Underwriter, against payment by or on behalf of such Underwriter
of the purchase price therefor in U.S. dollars by wire transfer of Federal
(same-day) funds to the account specified by the Company to ABN AMRO
Incorporated and BNP Paribas Securities Corp. at least forty-eight hours in
advance, by causing DTC to credit the Securities to the account of ABN AMRO
Incorporated at DTC. The Company will cause the certificates representing the
Securities to be made available to ABN AMRO Incorporated and BNP Paribas
Securities Corp. for checking at least twenty-four hours prior to the Time of
Delivery (as defined below) at the office of DTC or its designated custodian
(the "DESIGNATED OFFICE"). The time and date of such delivery and payment shall
be 9:30 a.m., New York City time, on July -, 2005 or such other time and date as
ABN AMRO Incorporated, BNP Paribas Securities Corp. and the Company may agree
upon in writing. Such time and date are herein called the "TIME OF DELIVERY".


                                       12
<PAGE>

         (b)      The documents to be delivered at the Time of Delivery by or on
behalf of the parties hereto pursuant to Section 7 hereof, including the
cross-receipt for the Securities and any additional documents requested by the
Underwriters pursuant to Section 7(p) hereof, will be delivered at the offices
of McCarthy Tetrault LLP, 1300-777 Dunsmuir Street, Vancouver, British Columbia,
Canada (the "CLOSING LOCATION"), and the Securities will be delivered at the
Designated Office, all at the Time of Delivery. A meeting will be held at the
Closing Location at 2:00 p.m., New York City time, on the New York Business Day
next preceding the Time of Delivery, at which meeting the final drafts of the
documents to be delivered pursuant to the preceding sentence will be available
for review by the parties hereto. For the purposes of this Section 4 and Section
5, "NEW YORK BUSINESS DAY" shall mean each Monday, Tuesday, Wednesday, Thursday
and Friday which is not a day on which banking institutions in New York or
Vancouver, British Columbia are generally authorized or obligated by law or
executive order to close.

         5.       The Company agrees with each of the Underwriters:

                  (a)    To prepare the Supplemented PREP Prospectus and the
         U.S. Supplemented Prospectus in a form approved by you and (i) to file
         such Supplemented PREP Prospectus with the BCSC in accordance with the
         PREP Procedures not later than the BCSC's close of business on the
         second business day following the execution and delivery of this
         Agreement and (ii) to file such U.S. Supplemented Prospectus with the
         Commission pursuant to General Instruction II.K. of Form F-9 not later
         than the Commission's close of business on the first business day
         following the day that the filing of the Supplemented PREP Prospectus
         is made with the BCSC; to notify the Underwriters promptly, and confirm
         the notice in writing, (i) when any post-effective amendment to the
         Registration Statement shall have been filed with the Commission or
         shall have become effective, and when any supplement or amendment to
         the U.S. Prospectus or the Canadian Prospectus shall have been filed,
         (ii) of the receipt of any comments from the BCSC or the Commission,
         (iii) of any request by the BCSC to amend or supplement the Base PREP
         Prospectus or the Canadian Prospectus or for additional information, or
         of any request by the Commission to amend the Registration Statement or
         to amend or supplement the U.S. Prospectus or for additional
         information, (iv) of the issuance by the Commission of any stop order
         suspending the effectiveness of the Registration Statement or of any
         order preventing or suspending the use of any preliminary prospectus,
         or of the suspension of the qualification of the Securities for
         offering or sale in any jurisdiction, or of the institution or, to the
         knowledge of the Company, threatening of any proceedings for any such
         purpose, and (v) of the issuance by the BCSC of any order having the
         effect of ceasing or suspending the distribution of the Securities or
         the trading in the securities of the Company, or of the institution or,
         to the knowledge of the Company, threatening of any proceedings for any
         such purpose; to use its best efforts to prevent the issuance of any
         such stop order or of any order preventing or suspending such use or
         such order ceasing or suspending the distribution of the Securities or
         the trading in the securities of the Company and, if any such order is
         issued, to promptly use its best efforts to obtain the withdrawal of
         such order at the earliest possible time; to file promptly all reports
         required to be filed by the Company (i) with the Commission pursuant to
         Section 13(a), 13(c) or 15(d) of the Exchange Act, and (ii) with the
         BCSC in



                                       13
<PAGE>

         accordance with British Columbia Securities Laws, in each case
         subsequent to the date of the Prospectuses and for so long as the
         delivery of a prospectus is required in connection with the offering or
         sale of the Securities; and to make no further amendment or any
         supplement to the Registration Statement or the Prospectuses which
         shall be disapproved by you promptly after reasonable notice thereof;

                  (b)    Promptly from time to time to take such action as you
         may reasonably request to qualify the Securities for offering and sale
         under the securities laws of such jurisdictions as you may reasonably
         request and to comply with such laws so as to permit the continuance of
         sales and dealings therein in such jurisdictions for as long as may be
         necessary to complete the distribution of the Securities, provided that
         in connection therewith the Company shall not be required to qualify as
         a foreign corporation or to file a general consent to service of
         process in any jurisdiction and further provided that nothing contained
         in this Section 5(b) shall require the Company to file or qualify a
         prospectus in any province or territory of Canada, other than British
         Columbia (for the purpose of qualifying under British Columbia
         Securities Laws the distribution of the Securities in the United States
         and elsewhere outside of Canada), in connection with an offer and sale
         of the Securities in any such province or territory;

                  (c)    Prior to 12:00 pm, New York City time, on the New York
         Business Day next succeeding the date of this Agreement and from time
         to time, to furnish the Underwriters with written and electronic copies
         of the U.S. Prospectus in New York City in such quantities as you may
         reasonably request, and to furnish the Underwriters with written copies
         of the Canadian Offering Memorandum in Toronto in such quantities as
         you may reasonably request, and, if the delivery of a prospectus is
         required by applicable law, at any time prior to the expiration of nine
         months after the time of issue of the Prospectuses in connection with
         the offering or sale of the Securities and if at such time any event
         shall have occurred as a result of which the Prospectuses as then
         amended or supplemented would include an untrue statement of a material
         fact or omit to state any material fact necessary in order to make the
         statements therein, in light of the circumstances under which they were
         made when such Prospectuses are delivered, not misleading, or, if for
         any other reason it shall be necessary during such same period to amend
         or supplement the Prospectuses or to file under British Columbia
         Securities Laws or under the Exchange Act any document incorporated by
         reference in the Prospectuses in order to comply with British Columbia
         Securities Laws, the Act, the Exchange Act or the Trust Indenture Act,
         to notify you and upon your request to file such document and to
         prepare and furnish without charge to each Underwriter and to any
         dealer in securities as many written and electronic copies as you may
         from time to time reasonably request of amended Prospectuses or
         supplements to the Prospectuses which will correct such statement or
         omission or effect such compliance; and in case any Underwriter is
         required, by applicable law, to deliver a prospectus in connection with
         sales of any of the Securities at any time nine months or more after
         the time of issue of the Prospectuses, upon your request but at the
         expense of such Underwriter, to prepare and deliver to such Underwriter
         as many written and electronic copies as you may reasonably request of
         an amended or supplemented U.S. Prospectus complying with Section
         10(a)(3) of the Act. The Company has furnished or will deliver to the
         Underwriters and counsel for the Underwriters,



                                       14
<PAGE>

         without charge, a copy of the Canadian Preliminary Prospectus and the
         Base PREP Prospectus, approved, signed and certified as required by the
         British Columbia Securities Laws, and signed copies of the Registration
         Statement as originally filed and of each amendment thereto (including
         exhibits filed therewith or incorporated by reference therein and
         including a signed copy of the Form F-X) and signed copies of all
         consents and certificates of experts; the copies of the Canadian
         Prospectus and any amendments or supplements thereto furnished to the
         Underwriters will be identical to the electronically transmitted copies
         thereof filed with the BCSC pursuant to the System for Electronics
         Document Analysis and Retrieval (SEDAR);

                  (d)    To make generally available to its securityholders as
         soon as practicable, but in any event not later than eighteen months
         after the effective date of the Registration Statement (as defined in
         Rule 158(c) under the Act), an earnings statement of the Company and
         its subsidiaries (which need not be audited) complying with Section
         11(a) of the Act and the rules and regulations thereunder (including,
         at the option of the Company, Rule 158 under the Act);

                  (e)    During the period beginning from the date hereof and
         continuing to and including the later of the Time of Delivery and such
         earlier time as you may notify the Company, not to offer, sell,
         contract to sell or otherwise dispose of, except as provided hereunder,
         any securities of the Company that are substantially similar to the
         Securities;

                  (f)    To furnish to holders of the Securities as soon as
         practicable after the end of each fiscal year an annual report
         (including a balance sheet and statements of income, shareholders'
         equity and cash flows of the Company and its consolidated subsidiaries
         audited by independent chartered accountants and prepared in conformity
         with Canadian GAAP, together with a reconciliation to U.S. GAAP in
         accordance with Item 17 of Form 20-F under the Exchange Act) and, as
         soon as practicable after the end of each of the first three quarters
         of each fiscal year prepared in accordance with Canadian GAAP
         (beginning with the fiscal quarter ending after the effective date of
         the Registration Statement), consolidated summary financial information
         of the Company and its subsidiaries for such quarter in reasonable
         detail;

                  (g)    During a period of three years from the effective date
         of the Registration Statement, to furnish to you copies of all reports
         or other communications (financial or other) furnished to shareholders
         of the Company, and to deliver to you (i) as soon as they are
         available, copies of any reports and financial statements furnished to
         or filed with the BCSC, the Commission or any securities exchange on
         which any class of securities of the Company is listed; and (ii) such
         additional information concerning the business and financial condition
         of the Company as you may from time to time reasonably request (such
         financial statements to be on a consolidated basis to the extent the
         accounts of the Company and its subsidiaries are consolidated in
         reports furnished to its shareholders generally or to the BCSC or the
         Commission), provided that, to the extent such information is not
         publicly available, such information shall be provided to you on a
         confidential basis;



                                       15
<PAGE>

                  (h)    To use the net proceeds received by it from the sale of
         the Securities pursuant to this Agreement in the manner specified in
         the Prospectuses under the caption "Use of Proceeds";

                  (i)    Not to (and to cause its subsidiaries not to) take,
         directly or indirectly, any action which is designed to or which
         constitutes or which might reasonably be expected to cause or result in
         stabilization or manipulation of the price of any security of the
         Company or, except as permitted by this Agreement, facilitate the sale
         or resale of the Securities; and

                  (j)    The Company will take such steps as it deems necessary
         to ascertain promptly whether the form of Supplemented PREP Prospectus
         was received for filing by the BCSC and whether the U.S. Supplemented
         Prospectus transmitted for filing pursuant to General Instruction II.K.
         of Form F-9 was received for filing by the Commission and, in the event
         that any such prospectuses were not received for filing, it will
         promptly file any such prospectus not then received for filing.

         6.       The Company covenants and agrees with the several Underwriters
that the Company will pay or cause to be paid the following: (i) the fees,
disbursements and expenses of the Company's counsel and accountants in
connection with the qualification for distribution of the Securities under
British Columbia Securities Laws and the registration of the Securities under
the Act and all other expenses in connection with the preparation, printing and
filing of the Registration Statement, any preliminary prospectus and the
Prospectuses and amendments and supplements thereto and the mailing and
delivering of copies thereof to the Underwriters and dealers; (ii) the fees,
disbursements and expenses of the Company's counsel in connection with the
private placement of the Securities in Canada, as well as the cost of printing
or producing any Canadian Offering Memorandum to be used in connection with the
offering, purchase, sale and delivery of the Securities in Canada; (iii) the
cost of printing or producing any Agreement among Underwriters, this Agreement,
the Supplemental Indenture, any Blue Sky and Legal Investment Memoranda, closing
documents (including any compilations thereof) and any other documents in
connection with the offering, purchase, sale and delivery of the Securities;
(iv) all expenses in connection with the qualification of the Securities for
offering and sale under state and other securities laws as provided in Section
5(b) hereof, including the fees and disbursements of counsel for the
Underwriters in connection with such qualification and in connection with the
Blue Sky and legal investment surveys; (v) any fees charged by securities rating
services for rating the Securities; (vi) the filing fees incident to, and the
fees and disbursements of counsel for the Underwriters in connection with, any
required review by the National Association of Securities Dealers, Inc. of the
terms of the sale of the Securities; (vii) the cost of preparing the Securities;
(viii) the fees and expenses of the Trustee and any agent of the Trustee and the
fees and disbursements of counsel for the Trustee in connection with the
Indenture and the Securities; (ix) all expenses and all stamp or other issuance
or transfer taxes or duties or withholding taxes payable to the Government of
Canada or any political subdivision or taxing authority thereof or therein
arising as a result of the issuance, sale and delivery of the Securities, or as
a result of the sale and delivery of the Securities outside of Canada of the
Securities by the Underwriters to the initial purchasers thereof in the manner
contemplated under this Agreement; and (x) all other costs and expenses incident
to the



                                       16
<PAGE>

performance of its obligations hereunder which are not otherwise specifically
provided for in this Section. It is understood, however, that, except as
provided in this Section, and Sections 8 and 11 hereof, the Underwriters will
pay all of their own costs and expenses, including the fees of their counsel,
transfer taxes on resale of any of the Securities by them, and any advertising
expenses connected with any offers they may make.

         7.       The obligations of the Underwriters hereunder shall be
subject, in their discretion, to the condition that all representations and
warranties and other statements of the Company herein are, at and as of the Time
of Delivery, true and correct, the condition that the Company shall have
performed all of its obligations hereunder theretofore to be performed, and the
following additional conditions:

                  (a)    The Supplemented PREP Prospectus shall have been filed
         with the BCSC under the PREP Procedures within the applicable time
         period prescribed for such filing thereunder and the U.S. Supplemented
         Prospectus shall have been filed with the Commission pursuant to
         General Instruction II.K of Form F-9 within the applicable time period
         prescribed for such filing by the rules and regulations under the Act
         and, in each case, in accordance with Section 5(a) hereof; no stop
         order suspending the effectiveness of the Registration Statement or any
         part thereof shall have been issued and no proceeding for that purpose
         shall have been initiated or threatened by the Commission; no order
         having the effect of ceasing or suspending the distribution of the
         Securities or the trading in the Securities or any other securities of
         the Company shall have been issued or proceedings therefor initiated or
         threatened by any securities commission, securities regulatory
         authority or stock exchange in Canada or the United States; and all
         requests for additional information on the part of the BCSC or the
         Commission shall have been complied with to your reasonable
         satisfaction;

                  (b)    Skadden, Arps, Slate, Meagher & Flom LLP, counsel for
         the Underwriters, shall have furnished to you such written opinion or
         opinions (a draft of each such opinion is attached as Annex II(a)
         hereto), dated the Time of Delivery, with respect to the matters as you
         may reasonably request, and such counsel shall have received such
         papers and information as they may reasonably request to enable them to
         pass upon such matters;

                  (c)    Fried, Frank, Harris, Shriver & Jacobson LLP, U.S.
         counsel for the Company, shall have furnished to you their written
         opinion (a draft of such opinion is attached as Annex II(b) hereto),
         dated the Time of Delivery, in form and substance satisfactory to you,
         to the effect that:

                         (i)    Methanex Holdings Ltd. is validly existing in
                  good standing under the laws of the State of Delaware

                         (ii)   The Registration Statement is effective under
                  the Act and the Form T-1 and the Form F-X were filed with the
                  Commission prior to the effectiveness of the Registration
                  Statement; any required filing of the U.S. Prospectus or any
                  supplement thereto pursuant to General Instruction II.K. of
                  Form F-9 has been made in the manner and within the time
                  period required by said General Instruction II.K.; and no stop
                  order



                                       17
<PAGE>

                  suspending the effectiveness of the Registration Statement has
                  been issued and, no proceedings for that purpose have been
                  instituted or are pending or threatened under the Act;

                         (iii)  The Registration Statement and the U.S.
                  Prospectus and any further amendments and supplements thereto
                  made by the Company prior to the Time of Delivery (other than
                  the financial statements, notes and schedules and the
                  financial or accounting data included therein or omitted
                  therefrom, as to which we express no opinion) appear on their
                  face to be responsive as to form in all material respects with
                  the requirements of the Act and the Trust Indenture Act and
                  the rules and regulations thereunder;

                         (iv)   The Form F-X, as of its date, appears on its
                  face to be responsive as to form in all material respects with
                  the requirements of the Act and the rules and regulations
                  thereunder;

                         (v)    Assuming the due authorization, execution and
                  delivery of the Underwriting Agreement under the laws of the
                  Province of British Columbia and the federal laws of Canada
                  applicable therein, the Underwriting Agreement (to the extent
                  that execution and delivery are governed by the laws of the
                  State of New York) has been duly executed and delivered by the
                  Company;

                         (vi)   Assuming the due authorization, execution,
                  issuance and delivery of the Securities under the laws of the
                  Province of British Columbia and the federal laws of Canada
                  applicable therein, and assuming the Securities have been
                  authenticated by the Trustee, the Securities (to the extent
                  execution, issuance and delivery are governed by the laws of
                  the State of New York) have been duly executed, issued and
                  delivered and constitute valid and binding obligations of the
                  Company enforceable against the Company in accordance with
                  their terms;

                         (vii)  Assuming the due authorization, execution and
                  delivery of the Initial Indenture by the Company under all
                  relevant Canadian federal and British Columbia law and New
                  York law, and assuming the due authorization, execution and
                  delivery of the Supplemental Indenture, which also forms a
                  part of the Indenture, under all relevant Canadian federal and
                  British Columbia law, the Supplemental Indenture (to the
                  extent the execution and delivery thereof are governed by the
                  laws of the State of New York) has been duly executed and
                  delivered by the Company, and the Indenture constitutes a
                  valid and binding obligation of the Company, enforceable
                  against the Company in accordance with its terms; and the
                  Indenture has been qualified under the Trust Indenture Act;

                         (viii) No consent, approval, authorization, order,
                  registration, clearance or qualification of or with any
                  Governmental Agency of the United States or the State of New
                  York is required for the issue and sale of the Securities or
                  the consummation by



                                       18
<PAGE>

                  the Company of the transactions contemplated by the
                  Underwriting Agreement or the Indenture, except such as have
                  been obtained under the Securities Act and the Trust Indenture
                  Act and such consents, approvals, authorizations, orders,
                  registrations, clearances or qualifications as may be required
                  under state securities or Blue Sky laws or by requirements of
                  the National Association of Securities Dealers, Inc. in
                  connection with the purchase and distribution of the
                  Securities by the Underwriters;

                         (ix)   The statements set forth in the U.S. Prospectus,
                  as amended or supplemented, under the caption "Description of
                  the Notes", insofar as they constitute summaries of legal
                  matters or documents referred to therein, fairly summarize in
                  all material respects the matters referred to therein;

                         (x)    The statements set forth in the U.S. Prospectus,
                  as amended or supplemented, under the caption "Tax
                  Considerations - Certain U.S. Federal Income Tax
                  Considerations", insofar as such statements purport to
                  summarize matters of U.S. federal income tax laws or legal
                  conclusions with respect thereto, and subject to the
                  limitations, qualifications and assumptions set forth therein,
                  fairly summarize in all material respects the matters set
                  forth therein;

                         (xi)   The Company is not, and after giving effect to
                  the sale of Securities and the application of the net proceeds
                  as described in the U.S. Prospectus, will not be an
                  "investment company", as such term is defined in the
                  Investment Company Act; and

                         (xii)  Under the laws of the State of New York relating
                  to personal jurisdiction, the Company has, pursuant to Section
                  14 of the Underwriting Agreement and Section 13.10 of the
                  Indenture, validly submitted to the personal jurisdiction of
                  any state or federal court located in the Borough of
                  Manhattan, The City of New York, New York (each a "New York
                  Court") in any action arising out of or relating to the
                  Underwriting Agreement or the Indenture or the transactions
                  contemplated hereby, has validly waived any objection to the
                  venue of a proceeding in any such court, and has validly
                  appointed the Authorized Agent as its authorized agent for the
                  purpose described in Section 14 of the Underwriting Agreement
                  and Section 13.10 of the Indenture; and service of process
                  effected on such agent in the manner set forth in Section 14
                  of the Underwriting Agreement and Section 13.10 of the
                  Indenture will be effective to confer valid personal
                  jurisdiction over the Company;

                  (d)    McCarthy Tetrault LLP, Canadian counsel for the
         Company, shall have furnished to you their written opinion (a draft of
         such opinion is attached as Annex II(c) hereto), dated the Time of
         Delivery, in form and substance satisfactory to you, to the effect
         that:

                         (i)    The Company has been duly continued and is
                  validly existing as a corporation under the federal laws of
                  Canada, with corporate power and authority to own its
                  properties and conduct its business as described in the
                  Prospectuses, and any amendment or supplement thereto; the
                  Company has all requisite corporate power and



                                       19
<PAGE>

                  authority to execute, deliver and perform its obligations
                  under this Agreement, the Indenture and the Securities;

                         (ii)   The Company has an authorized capitalization as
                  set forth in the Prospectuses, and any amendment or supplement
                  thereto, and all of the issued and outstanding shares in the
                  capital of the Company have duly authorized and validly issued
                  and are fully paid and non-assessable (such counsel being
                  entitled to rely in respect of matters of fact upon
                  certificates of the Company and the transfer agent of the
                  Company);

                         (iii)  The Company has been extra-provincially
                  registered or otherwise duly qualified as an extra-provincial
                  or as a foreign corporation for the transaction of business
                  under the laws of each other jurisdiction in which it owns or
                  leases properties or conducts any business so as to require
                  such qualification, or is subject to no material liability or
                  disability by reason of the failure to be so qualified in any
                  such jurisdiction (such counsel being entitled to rely in
                  respect of the opinion in this clause upon opinions of local
                  counsel and in respect of matters of fact upon certificates of
                  officers of the Company, provided that such counsel shall
                  state that they believe that both you and they are justified
                  in relying upon such opinions);

                         (iv)   To such counsel's knowledge, based solely upon
                  documents provided to such counsel by the Company and
                  conferences with officers and other representatives of the
                  Company in connection with the offering of the Securities, and
                  other than as set forth in the Prospectuses, and any amendment
                  or supplement thereto, there are no legal or governmental
                  proceedings pending to which the Company or any of its
                  subsidiaries is a party or of which any property of the
                  Company or any of its subsidiaries is the subject which are of
                  a character required by the British Columbia Securities Laws
                  to be described or referred to in the Prospectuses and any
                  amendment or supplement thereto, and no such proceedings are
                  threatened or contemplated by any Governmental Agency or
                  threatened by others;

                         (v)    This Agreement has been duly authorized and, to
                  the extent that execution and delivery are governed by the
                  laws of the Province of British Columbia and the federal laws
                  of Canada applicable therein, executed and delivered by the
                  Company;

                         (vi)   The Indenture and the Securities have been duly
                  authorized and, to the extent that execution, issuance and
                  delivery are matters governed by the laws of the Province of
                  British Columbia and the federal laws of Canada applicable
                  therein, the Indenture has been duly executed and delivered by
                  the Company and the Securities have been duly executed, issued
                  and delivered by the Company; and the Securities and the
                  Indenture conform in all material respects to the descriptions
                  thereof in the Prospectuses as amended or supplemented;


                                       20
<PAGE>

                         (vii)  The form of global certificate representing the
                  Securities, as included in the Indenture, has been duly
                  approved and adopted by the Company and complies in all
                  material respects with all applicable statutory requirements
                  of the Province of British Columbia and of Canada applicable
                  therein and with any applicable requirements of the constating
                  documents of the Company;

                         (viii) The Indenture and the issuance of the Securities
                  thereunder comply, to the extent applicable, with the
                  provisions of the Canada Business Corporations Act. No
                  registration, filing or recording of the Indenture under
                  British Columbia Securities Laws is necessary in order to
                  preserve or protect the validity or enforceability of the
                  Indenture or the Securities issued thereunder;

                         (ix)   The issue and sale of the Securities and the
                  compliance by the Company with all of the provisions of the
                  Securities, the Indenture and this Agreement and the
                  consummation by the Company of the transactions herein and
                  therein contemplated will not (A) conflict with or result in a
                  breach or violation of any of the terms or provisions of, or
                  constitute a default under, any of the agreements or
                  instruments set forth in the Company's officer's certificate
                  prepared in support of such counsel's opinion and delivered in
                  draft form to counsel for the Underwriters prior to the
                  execution of this Agreement, (B) result in any violation of
                  the provisions of the Articles of Continuance or the By-laws,
                  as amended of the Company or (C) contravene any federal,
                  provincial or local law, rule or regulation of the Province of
                  British Columbia or Canada applicable to the transactions
                  contemplated by the issue and sale of the Securities or the
                  provisions of the Indenture or this Agreement or, to the best
                  of such counsel's knowledge, any order applicable to the
                  Company of any court or of any other governmental body or
                  instrumentality having jurisdiction over it or any of its
                  property that would have a Material Adverse Effect (it being
                  understood that for the purpose of the opinion in this clause
                  (C), such counsel is not passing upon compliance with respect
                  to antifraud or similar provisions of any securities laws of
                  the Province of British Columbia or the Federal laws of Canada
                  applicable therein);

                         (x)    No Governmental Authorization of or with any
                  Governmental Agency in Canada is required for the issue and
                  sale of the Securities or the consummation by the Company of
                  the transactions contemplated by this Agreement or the
                  Indenture, except such as have been obtained;

                         (xi)   To such counsel's knowledge, the Company is not
                  in violation of its constating documents or in default in the
                  performance or observance of any material obligation, covenant
                  or condition contained in any of the agreements or instruments
                  set forth in the Company's officer's certificate prepared in
                  support of such counsel's opinion and delivered in draft form
                  to counsel for the Underwriters prior to the execution of this
                  Agreement;


                                       21
<PAGE>

                         (xii)  To such counsel's knowledge, all descriptions in
                  the Prospectuses as amended or supplemented of contracts,
                  agreements, arrangements and other documents to which the
                  Company or its subsidiaries are a party are correct in all
                  material respects;

                         (xiii) The information in the Registration Statement
                  under "Part II - Indemnification of Directors and Officers"
                  and the statements set forth in the Prospectuses under the
                  captions "Risk Factors -- Risks Related to the Notes and Our
                  Structure -- "It may be difficult for you...", "Description of
                  the Notes -- Enforceability of Judgments", and "Tax
                  Considerations -- Certain Canadian Federal Income Tax
                  Considerations", insofar as they purport to describe the
                  provisions of the laws of the Province of British Columbia or
                  the federal laws of Canada applicable therein, and under the
                  captions "Underwriting" and "Description of Certain
                  Indebtedness" have been reviewed by such counsel and, to the
                  extent that such statements constitute matters of law or legal
                  conclusions, such statements fairly present the information
                  disclosed therein and, insofar as such statements purport to
                  describe the provisions of laws or documents referred to
                  therein, such statements are correct in all material respects;

                         (xiv)  Insofar as matters of the laws of the Province
                  of British Columbia and the federal laws of Canada applicable
                  therein are concerned, the Registration Statement and the
                  filing of the Registration Statement with the Commission have
                  been duly authorized by and on behalf of the Company; and the
                  Registration Statement has been duly executed pursuant to such
                  authorization by and on behalf of the Company;

                         (xv)   A final receipt has been obtained in respect of
                  the Base PREP Prospectus from the BCSC and, subject to the
                  filing of standard post closing notices, all necessary
                  documents have been filed, all necessary proceedings have been
                  taken and all necessary authorizations, approvals, permits and
                  consents have been obtained under British Columbia Securities
                  Laws to permit the Securities to be offered, sold and
                  delivered, as contemplated by this Agreement and pursuant to
                  the U.S./Canada Multi-Jurisdictional Disclosure System
                  ("MJDS"), in the United States, and no other Governmental
                  Authorization of or with any Governmental Agency in Canada or
                  the Province of British Columbia is required for such
                  offering, sale or delivery of the Securities pursuant to the
                  MJDS in the United States or the consummation by the Company
                  of the transactions contemplated by this Agreement, except
                  such as have been obtained;

                         (xvi)  The Company is a "Reporting issuer" under the
                  securities legislation of the Province of British Columbia and
                  is not on the list of defaulting issuers maintained under such
                  legislation; and the Company meets the general requirements to
                  use a short form prospectus under National Instrument
                  44-101-Short Form Prospectus Distributions;

                         (xvii) To such counsel's knowledge, there are no
                  franchises, contracts, indentures, mortgages, loan agreements,
                  notes, leases or other instruments that in



                                       22
<PAGE>

                  accordance with the requirements of the BCSC are required to
                  be made publicly available in connection with the offering of
                  the Securities that have not been made publicly available as
                  would be required; and there are no documents required to be
                  filed with the BCSC in connection with the offering of the
                  Securities that have not been filed as required;

                         (xviii) No withholding tax imposed under the federal
                  laws of Canada or the laws of the Province of British Columbia
                  will be payable in respect of the payment of the commissions
                  contemplated by this Agreement by the Company to an
                  Underwriter, provided that the Underwriter deals at arm's
                  length with the Company (as such term is understood for
                  purposes of the Income Tax Act (Canada)), and that such
                  commissions are payable in respect of services rendered by the
                  Underwriter wholly outside of Canada that are performed in the
                  ordinary course of business carried on by the Underwriter that
                  includes the performance of such services for a fee and any
                  such amount is reasonable in the circumstances;

                         (xix)  No goods and services tax imposed under the
                  federal laws of Canada will be payable by the Company in
                  respect of the payment of commissions as contemplated by this
                  Agreement to an Underwriter, provided that such commissions
                  are in respect of services performed by an Underwriter wholly
                  outside of Canada;

                         (xx)   No stamp duty, documentary taxes or similar
                  taxes are payable by the Company under the federal laws of
                  Canada or the laws of the Province of British Columbia in
                  connection with the sale and delivery of the Securities
                  pursuant to this Agreement by the Company;

                         (xxi)  A court of competent jurisdiction in the
                  Province of British Columbia (a "BRITISH COLUMBIA COURT")
                  would give effect to the choice of the law of the State of New
                  York ("NEW YORK LAW") as the proper law governing this
                  Agreement, the Indenture and the Securities, provided that
                  such choice of law is: (A) bona fide (primarily in the sense
                  that it was not made with a view to avoiding the consequences
                  of the laws of any other jurisdiction); (B) legal; and (C) not
                  contrary to public policy as that term is applied by a British
                  Columbia Court ("PUBLIC POLICY"). To such counsel's knowledge,
                  no Public Policy would be offended by recognition of this
                  choice of law, nor are we aware of any basis upon which such
                  choice of law would not be bonafide and legal;

                         (xxii) In an action on a final and conclusive judgment
                  in personam of any federal or state court in the State of New
                  York (a "NEW YORK COURT") that is not impeachable as void or
                  voidable under New York law, a British Columbia Court would
                  give effect to the appointment by the Company of CT
                  Corporation System as its agent to receive service of process
                  in the United States of America under this Agreement and the
                  Indenture and to the provisions in this Agreement and the
                  Indenture whereby the



                                       23
<PAGE>

                  Company submits to the non-exclusive jurisdiction of a New
                  York Court, except that a British Columbia Court may not
                  consider itself bound by any provision of this Agreement or
                  the Indenture purporting to make that submission to
                  jurisdiction exclusive;

                         (xxiii) If this Agreement, the Indenture or the
                  Securities are sought to be enforced in the Province of
                  British Columbia in accordance with the laws applicable
                  thereto as chosen by the parties, namely New York law, a
                  British Columbia Court would, subject to paragraph (xxi)
                  above, recognize the choice of New York law and, upon such law
                  being specifically pleaded and appropriate evidence as to such
                  law being adduced, apply such law to all issues that under the
                  conflict rules of the Province of British Columbia, are to be
                  determined in accordance with the proper or governing law of
                  the contract, provided that: (A) none of the provisions of
                  this Agreement, the Indenture or the Securities, as the case
                  may be, or of applicable New York law, are contrary to Public
                  Policy; (B) such New York law does not constitute, directly or
                  indirectly, revenue, expropriatory, public or penal laws; (C)
                  in matters of procedure, the laws of the Province of British
                  Columbia will be applied; (D) a British Columbia Court will
                  retain discretion to decline to hear such action if it is
                  contrary to Public Policy for it to do so, or if it is not the
                  appropriate forum to hear such an action, or if concurrent
                  proceedings are being brought elsewhere; and (E) a British
                  Columbia Court may not enforce an obligation enforceable under
                  the laws of the Province of British Columbia where performance
                  of the obligation would be illegal under the laws of the place
                  of performance;

                         (xxiv) The laws of the Province of British Columbia and
                  the federal laws of Canada applicable therein permit an action
                  to be brought in a British Columbia Court on a final and
                  conclusive judgment in personam of a New York Court that is
                  subsisting and unsatisfied respecting the enforcement of this
                  Agreement, the Indenture or the Securities, that is not
                  impeachable as void or voidable under New York law and that is
                  for a sum certain if: (A) the New York Court that rendered
                  such judgment had jurisdiction over the judgment debtor, as
                  recognized by a British Columbia Court (and submission by the
                  Company in this Agreement and the Indenture to the
                  jurisdiction of the New York Court will be deemed sufficient
                  for such purpose); (B) proper service of process in respect of
                  the proceeding in which such judgment was obtained was made in
                  accordance with New York law; (C) such judgment was not
                  obtained by fraud or in a manner contrary to natural justice
                  and the enforcement thereof would not be inconsistent with
                  Public Policy or contrary to any order made by the Attorney
                  General of Canada under the Foreign Extraterritorial Measures
                  Act (Canada) or contrary to any order made by the Competition
                  Tribunal under the Competition Act (Canada); (D) the
                  enforcement of such judgment in British Columbia does not
                  constitute, directly or indirectly, the enforcement of any
                  laws of the State of New York or of the United States of
                  America which a British Columbia Court would characterize as
                  revenue, expropriatory, public or penal laws; (E) in an action
                  to enforce a default judgment, the judgment does not



                                       24
<PAGE>

                  contain a manifest error on its face; (F) the action to
                  enforce such judgment is commenced within the applicable
                  limitation period after the date of such judgment; and (G) the
                  judgment does not conflict with another final and conclusive
                  judgment in the same cause of action, provided that a British
                  Columbia Court may stay an action to enforce a foreign
                  judgment if an appeal of a judgment is pending or the time for
                  appeal has not expired, and provided, further, that under the
                  Currency Act (Canada) a British Columbia Court may only give
                  judgment in Canadian dollars;

                         (xxv)  No Governmental Authorization of or with any
                  Governmental Agency is required to effect payments of
                  principal, premium, if any, and interest on the Securities;

                         (xxvi) The Canadian Prospectus and any supplement or
                  amendment thereto in connection with the offering of the
                  Securities (including the PREP Information, but excluding the
                  financial statements and other financial data included or
                  incorporated therein or omitted therefrom, as to which such
                  counsel need express no opinion) appear on their face to be
                  appropriately responsive as to form in all material respects
                  to the requirements, including the PREP Procedures, of the
                  securities laws, rules and regulations of the Province of
                  British Columbia as interpreted and applied by the BCSC;

                         (xxvii) The offering, issue, sale and delivery of the
                  Securities by the Company to purchasers in the Designated
                  Provinces, in accordance with the terms of the Canadian
                  Offering Memorandum dated the date of the Supplemented PREP
                  Prospectus, are exempt from the prospectus requirements of the
                  securities laws of the Designated Provinces and no prospectus
                  is required nor are other documents required to be filed,
                  proceedings taken or approvals, permits, consents or
                  authorizations of regulatory authorities obtained by the
                  Company under such securities laws to permit the offering,
                  issue, sale and delivery of the Securities by the Company or
                  the Underwriters to purchasers resident in the Designated
                  Provinces, either through registrants or dealers registered
                  under applicable laws who comply with such applicable laws or
                  in circumstances in which there is an exemption from the
                  registration requirements of the applicable laws, except such
                  filings as may be required after the Time of Delivery under
                  the securities laws of the Designated Provinces in connection
                  with such offering, issue, sale and delivery;

                  Such written opinion shall additionally state that such
                  counsel has participated in the preparation of the
                  Registration Statement, the U.S. Prospectus and the Canadian
                  Prospectus and in conferences with officers and other
                  representatives of the Company, representatives of the
                  independent chartered accountants for the Company, and
                  representatives of the Underwriters, at which the contents of
                  the Registration Statement, the U.S. Prospectus and the
                  Canadian Prospectus, and related matters were discussed and,
                  although they are not passing upon and do not assume any
                  responsibility for the accuracy, completeness or fairness of
                  the statements contained in the Registration Statement or the
                  Prospectuses, except for those referred to in the opinion in
                  subsection



                                       25
<PAGE>

                  xiii of this Section 7(d), such counsel has no reason to
                  believe that, as of its effective date, the Registration
                  Statement or any further amendment thereto made by the Company
                  prior to the Time of Delivery (other than the financial
                  statements and related schedules therein, as to which such
                  counsel need express no opinion) contained an untrue statement
                  of a material fact or omitted to state a material fact
                  required to be stated therein or necessary to make the
                  statements therein not misleading or that, as of their dates,
                  the Prospectuses or any further amendment or supplement
                  thereto made by the Company prior to the Time of Delivery
                  (other than the financial statements and related schedules
                  therein, as to which such counsel need express no opinion)
                  contained an untrue statement of a material fact or omitted to
                  state a material fact necessary to make the statements
                  therein, in the light of the circumstances under which they
                  were made, not misleading or that, as of the Time of Delivery,
                  the Prospectuses or any further amendment or supplement
                  thereto made by the Company prior to the Time of Delivery
                  (other than the financial statements and related schedules
                  therein, as to which such counsel need express no opinion)
                  contains an untrue statement of a material fact or omits to
                  state a material fact necessary to make the statements
                  therein, in the light of the circumstances under which they
                  were made, not misleading;

                  In giving such opinion, such counsel may rely, as to all
                  matters governed by the laws of jurisdictions other than the
                  laws of the Provinces of British Columbia, Alberta, Ontario
                  and Quebec and the federal laws of Canada applicable therein,
                  upon opinions of local counsel, who shall be counsel
                  satisfactory to counsel for the Underwriters, in which case
                  the opinion shall state that they believe the Underwriters and
                  they are entitled to so rely. Such counsel may also state
                  that, insofar as such opinion involves factual matters, they
                  have relied, to the extent they deem proper, upon certificates
                  of officers of the Company and certificates of public
                  officials; provided that such certificates have been delivered
                  to the Underwriters. Such opinion may be subject to
                  assumptions, qualifications and limitations as are reasonable
                  and customary in legal opinions of this type and as shall be
                  satisfactory to counsel for the Underwriters but shall not
                  state that it is to be governed or qualified by, or that it is
                  otherwise subject to, any treatise, written policy or other
                  document relating to legal opinions.

                  (e)    Philippi, Yrarrazaval, Pulido & Brunner Ltda., special
         Chilean counsel for the Company, shall have furnished to you their
         written opinion, dated the Time of Delivery, in form and substance
         satisfactory to you, to the effect that:

                         (i)    Methanex Chile Limited ("METHANEX CHILE") is
                  registered as a Chilean branch of a foreign company and is in
                  good standing to own, lease and operate its properties and
                  assets in conducting its business in Chile;

                         (ii)   To the best of such counsel's knowledge, there
                  are no Chilean statutes or regulations or any pending or
                  threatened legal or governmental proceedings that are material
                  to the Company or its subsidiaries taken as a whole that are
                  not described under the caption headings "Natural Gas Supply",
                  "Foreign Operations and Government



                                       26
<PAGE>

                  Regulation" and "Environmental and Social Matters" in the
                  Company's Annual Information Form dated March 21, 2005;

                         (iii)  The descriptions contained in the Prospectuses
                  of the Chilean statutes, regulations, orders, governmental
                  franchises and licenses and legal or governmental proceedings
                  with respect to the Company and its subsidiaries taken as a
                  whole are accurate and fairly summarize such statutes,
                  regulations, orders, franchises, licenses and proceedings.

                         (iv)   To such counsel's knowledge, no default exists
                  in the performance or observance of any material obligation,
                  agreement, covenant or condition contained in any contract,
                  indenture, loan agreement, note, lease or other agreement or
                  instrument to which Methanex Chile, jointly or severally, is a
                  party;

                         (v)    The issue and sale of the Securities and the
                  entering into, execution and delivery of this Agreement and
                  the Indenture by the Company, and the compliance by the
                  Company with and the consummation by the Company of the
                  transactions contemplated in this Agreement, the Indenture and
                  Registration Statement, do not and will not conflict with, or
                  result in a breach of any of the terms or provisions of, or
                  constitute a default (or an event which with notice or lapse
                  of time, or both, would constitute a default or permit
                  acceleration) under or result in the creation or imposition of
                  any lien, charge or encumbrance upon any properties or assets
                  of Methanex Chile under (i) to such counsel's knowledge, any
                  indenture, mortgage, loan agreement or other agreement or
                  instrument to which Methanex Chile, jointly or severally, is a
                  party or by which it may be bound or to which any of its
                  properties or assets may be subject, (ii) any existing
                  applicable Chilean statute, regulation or rule, or (iii) to
                  such counsel's knowledge, any judgment, order or decree of any
                  government, governmental, regulatory or administration agency,
                  authority, commission or instrumentality or court having
                  jurisdiction over Methanex Chile or any of its properties or
                  assets;

                         (vi)   To such counsel's knowledge, Methanex Chile has
                  not failed to obtain any licence, permit, franchise or other
                  administrative, governmental or regulatory approval necessary
                  to the ownership of its property or to the conduct of its
                  businesses, which failure to obtain has or could have a
                  material adverse effect on the businesses of Methanex Chile;
                  and

                         (vii)  To such counsel's knowledge, other than as
                  described in the Prospectuses, no revocation or limitation of
                  any permit, licence, franchise or approval held by Methanex
                  Chile is pending or threatened and Methanex Chile is not in
                  default or violation of any thereof, and the authorization,
                  issuance and delivery of the Securities and the compliance by
                  the Company with the terms of the Indenture do not and will
                  not conflict with, or result in a breach of any of the terms
                  or provisions of, or constitute a default under, any of such
                  permits, licences, franchises and approvals, where such


                                       27
<PAGE>

                  revocation, limitation, default, violation, conflict or breach
                  has or could have a material adverse effect on Methanex Chile;
                  to such counsel's knowledge, other than as described in the
                  Prospectuses, there is not threatened or pending any change in
                  any law, rule or regulation which would have a material
                  adverse effect on the businesses of Methanex Chile.

                  (f)    Simpson Grierson, special New Zealand counsel for the
         Company, shall have furnished to you their written opinion, dated the
         Time of Delivery, in form and substance satisfactory to you, to the
         effect that:

                         (i)    The descriptions contained in the Prospectuses
                  of the New Zealand statutes, regulations, orders, governmental
                  franchises and licences and legal or governmental proceedings
                  with respect to the Company and its subsidiaries taken as a
                  whole are accurate and fairly summarize in all material
                  respects such statutes, regulations, orders, franchises,
                  licences and proceedings;

                         (ii)   To such counsel's knowledge there are no New
                  Zealand statutes or regulations or any pending or threatened
                  legal or governmental proceedings that are material to the
                  Company or its subsidiaries taken as a whole that are not
                  described under the caption headings "Natural Gas Supply",
                  "Foreign Operations and Government Regulation" and
                  "Environmental and Social Matters" in the Company's Annual
                  Information Form dated March 21, 2005;

                         (iii)  Methanex New Zealand Limited ("METHANEX NEW
                  ZEALAND") has been duly incorporated and is validly existing
                  and in good standing (in respect of the filing of annual
                  returns where required) under the laws of New Zealand as of
                  the Time of Delivery and has full corporate power and
                  authority to own, lease and operate its properties and assets
                  and conduct its business in New Zealand;

                         (iv)   All of the issued and outstanding shares in the
                  capital of Methanex New Zealand have been duly authorized and
                  validly issued and are fully paid and non-assessable;

                         (v)    Other than as disclosed in the Prospectuses, to
                  such counsel's knowledge after due enquiry, Methanex
                  International Holdings Limited is the registered holder of all
                  of the issued and outstanding ordinary shares and Methanex
                  Netherlands BV is the registered holder of all issued and
                  outstanding redeemable preference shares in Methanex New
                  Zealand;

                         (vi)   To such counsel's knowledge based solely upon a
                  review of the corporate minute books of Methanex New Zealand,
                  there are no rights granted to or in favor of any person to
                  acquire any unissued shares or other securities of Methanex
                  New Zealand;


                                       28
<PAGE>

                         (vii)  To such counsel's knowledge, no default exists
                  in the performance or observance of any material obligation,
                  agreement, covenant or condition contained in any contract,
                  indenture, loan agreement, note, lease or other agreement or
                  instrument to which Methanex New Zealand is a party;

                         (viii) The issue and sale of the Securities and the
                  entering into, execution and delivery of this Agreement and
                  the Indenture by the Company, and the compliance by the
                  Company with and the consummation by the Company of the
                  transactions contemplated in this Agreement, the Indenture and
                  Registration Statement, do not and will not result in any
                  violation of the constitution of Methanex New Zealand, and do
                  not and will not conflict with, or result in a breach of any
                  of the terms or provisions of, or constitute a default (or an
                  event which with notice or lapse of time, or both, would
                  constitute a default or permit acceleration) under or result
                  in the creation or imposition of any lien, charge or
                  encumbrance upon any properties or assets of Methanex New
                  Zealand under (i) to such counsel's knowledge, any indenture,
                  mortgage, loan agreement or other agreement or instrument to
                  which the Methanex New Zealand is a party or by which it may
                  be bound or to which any of it properties or assets may be
                  subject, (ii) any existing applicable New Zealand statute,
                  regulation or rule, or (iii) to such counsel's knowledge, any
                  judgment, order or decree of any government, governmental,
                  regulatory or administration agency, authority, commission or
                  instrumentality or court having jurisdiction over Methanex New
                  Zealand or any of its properties or assets;

                         (ix)   To such counsel's knowledge, Methanex New
                  Zealand has not failed to obtain any licence, permit,
                  franchise or other administrative, governmental or regulatory
                  approval necessary to the ownership of its property or to the
                  conduct of its business, which failure to obtain has or could
                  have a material adverse effect on the business of Methanex New
                  Zealand; and

                         (x)    To such counsel's knowledge, other than as
                  described in the Prospectuses, no revocation or limitation of
                  any permit, licence, franchise or approval held by Methanex
                  New Zealand is pending or threatened and Methanex New Zealand
                  is not in default or violation of any thereof, and the
                  authorization, issuance and delivery of the Securities and the
                  compliance by the Company with the terms of the Indenture do
                  not and will not conflict with, or result in a breach of any
                  of the terms or provisions of, or constitute a default under,
                  any of such permits, licences, franchises and approvals, where
                  such revocation, limitation, default, violation, conflict or
                  breach has or could have a material adverse effect on Methanex
                  New Zealand; to such counsel's knowledge, other than as
                  described in the Prospectuses, there is not threatened or
                  pending any change in any law, rule or regulation which would
                  have a material adverse effect on the business of Methanex New
                  Zealand.


                                       29
<PAGE>

                  (g)    M. Hamel-Smith & Co., special Trinidad counsel for the
         Company, shall have furnished to you their written opinion, dated the
         Time of Delivery, in form and substance satisfactory to you, to the
         effect that:

                         (i)    The descriptions contained in the Prospectuses
                  of the Trinidad statutes, regulations, orders, governmental
                  franchises and licences and legal or governmental proceedings
                  with respect to the Company and its subsidiaries taken as a
                  whole are accurate and fairly summarize in all material
                  respects such statutes, regulations, orders, franchises,
                  licences and proceedings;

                         (ii)   To such counsel's knowledge there are no
                  Trinidad statutes or regulations or (based entirely on a
                  certificate of an officer of each of the Trinidad
                  Subsidiaries) any pending or threatened legal or governmental
                  proceedings that are material to the Company or its
                  subsidiaries taken as a whole that are not described under the
                  caption headings "Natural Gas Supply", "Foreign Operations and
                  Government Regulation" and "Environmental and Social Matters"
                  in the Company's Annual Information Form dated March 21, 2005;

                         (iii)  Each of Methanex Trinidad Unlimited and Atlas
                  Methanol Company Unlimited (the "TRINIDAD SUBSIDIARIES") has
                  been duly incorporated and is validly existing and in good
                  standing under the laws of Trinidad as of the Time of Delivery
                  and has full corporate power and authority to own, lease and
                  operate its properties and assets and conduct its businesses
                  in Trinidad;

                         (iv)   All of the issued and outstanding shares in the
                  capital of the Trinidad Subsidiaries have been duly authorized
                  and validly issued and are fully paid and non-assessable;

                         (v)    Other than as disclosed in the Prospectuses, to
                  such counsel's knowledge after due enquiry, Methanex Trinidad
                  Holdings Limited is the registered holder of all of the issued
                  and outstanding shares of Methanex Trinidad Unlimited and
                  Methanex Atlas Holdings Limited is the registered holder of
                  63.1% of the issued and outstanding shares of Atlas Methanol
                  Company Unlimited;

                         (vi)   To such counsel's knowledge, based entirely on a
                  certificate of an officer of each of the Trinidad
                  Subsidiaries, there are no rights granted to or in favor of
                  any person to acquire any unissued shares or other securities
                  of the Trinidad Subsidiaries;

                         (vii)  To such counsel's knowledge, based entirely on a
                  certificate of an officer of each of the Trinidad
                  Subsidiaries, no default exists in the performance or
                  observance of any material obligation, agreement, covenant or
                  condition contained in any contract, indenture, loan
                  agreement, note, lease or other agreement or instrument to
                  which the Trinidad Subsidiaries, jointly or severally, are a
                  party;


                                       30
<PAGE>

                         (viii) The issue and sale of the Securities and the
                  entering into, execution and delivery of this Agreement and
                  the Indenture by the Company, and the compliance by the
                  Company with and the consummation by the Company of the
                  transactions contemplated in this Agreement, the Indenture and
                  Registration Statement, do not and will not result in any
                  violation of the articles of continuance of Methanex Trinidad
                  Unlimited or the articles of incorporation of Atlas Methanol
                  Company Unlimited, and do not and will not conflict with, or
                  result in a breach of any of the terms or provisions of, or
                  constitute a default (or an event which with notice or lapse
                  of time, or both, would constitute a default or permit
                  acceleration) under or result in the creation or imposition of
                  any lien, charge or encumbrance upon any properties or assets
                  of the Trinidad Subsidiaries under (i) to such counsel's
                  knowledge, any indenture, mortgage, loan agreement or other
                  agreement or instrument to which the Trinidad Subsidiaries,
                  jointly or severally, are a party or by which they may be
                  bound or to which any of their properties or assets may be
                  subject, (ii) any existing applicable Trinidad statute,
                  regulation or rule, or (iii) to such counsel's knowledge,
                  based entirely on a certificate of an officer of each Trinidad
                  Subsidiary, any order or decree of any government,
                  governmental, regulatory or administration agency, authority,
                  commission or instrumentality, or (iv) to such counsel's
                  knowledge, any judgment of any court in Trinidad having
                  jurisdiction over the Trinidad Subsidiaries or any of their
                  properties or assets;

                         (ix)   To such counsel's knowledge, the Trinidad
                  Subsidiaries have not failed to obtain any licence, permit,
                  franchise or other administrative, governmental or regulatory
                  approval necessary to the ownership of their property or to
                  the conduct of their businesses, which failure to obtain has
                  or could have a material adverse effect on the businesses of
                  the Trinidad Subsidiaries, taken as a whole; and

                         (x)    To such counsel's knowledge, based entirely on a
                  certificate of an officer of each Trinidad Subsidiary, other
                  than as described in the Prospectuses, no revocation or
                  limitation of any permit, licence, franchise or approval held
                  by the Trinidad Subsidiaries is pending or threatened and the
                  Trinidad Subsidiaries are not in default or violation of any
                  thereof. To such counsel's knowledge, the authorization,
                  issuance and delivery of the Securities and the compliance by
                  the Company with the terms of the Indenture do not and will
                  not conflict with, or result in a breach of any of the terms
                  or provisions of, or constitute a default under, any of such
                  permits, licences, franchises and approvals, where such
                  revocation, limitation, default, violation, conflict or breach
                  has or could have a material adverse effect on the Trinidad
                  Subsidiaries, taken as a whole; to such counsel's knowledge,
                  other than as described in the Prospectuses, there is not
                  threatened or pending any change in any law, rule or
                  regulation which would have a material adverse effect on the
                  businesses of the Trinidad Subsidiaries, taken as a whole.


                                       31
<PAGE>

                  (h)    Chancery Chambers, special Barbados counsel for the
         Company, shall have furnished to you their written opinion, dated the
         Time of Delivery, in form and substance satisfactory to you, to the
         effect that:

                         (i)    Each of Methanex Chile Limited, Cape Horn
                  Finance Limited, Waterfront Shipping Company Limited, Methanex
                  Holdings (Barbados) Limited, Methanex Trinidad Holdings
                  Limited and Methanex Atlas Holdings Limited (the "BARBADOS
                  SUBSIDIARIES") has been duly incorporated or continued (as the
                  case may be) and is validly existing and in good standing
                  under the laws of Barbados as of the Time of Delivery and has
                  full corporate power and authority to own, lease and operate
                  its properties and assets and conduct its business;

                         (ii)   All of the issued and outstanding shares in the
                  capital of each of the Barbados Subsidiaries have been duly
                  authorized and validly issued and are fully paid and
                  non-assessable;

                         (iii)  To such counsel's knowledge after due inquiry,
                  Methanex International Holdings Limited is the registered
                  holder of all of the issued and outstanding shares of the
                  Barbados Subsidiaries;

                         (iv)   To such counsel's knowledge based solely upon a
                  review of the corporate minute books of the Barbados
                  Subsidiaries, there are no rights granted to or in favor of
                  any person to acquire any unissued share or other securities
                  of any of the Barbados Subsidiaries;

                         (v)    To such counsel's knowledge, no default exists
                  in the performance or observance of any material obligation,
                  agreement, covenant or condition contained in any contract,
                  indenture, loan agreement, note, lease or other agreement or
                  instrument to which the Barbados Subsidiaries, jointly or
                  severally, are a party;

                         (vi)   The issue and sale of the Securities and the
                  entering into, execution and delivery of this Agreement and
                  the Indenture by the Company, and the compliance by the
                  Company with and the consummation by the Company of the
                  transactions contemplated in this Agreement, the Indenture and
                  Registration Statement, do not and will not result in any
                  violation of the Articles of Incorporation or Continuance, as
                  the case may be, the By-Laws (as amended) or the international
                  business company licence of the Barbados Subsidiaries, and do
                  not and will not conflict with, or result in a breach of any
                  of the terms or provisions of, or constitute a default (or an
                  event which with notice or lapse of time, or both, would
                  constitute a default or permit acceleration) under or result
                  in the creation or imposition of any lien, charge or
                  encumbrance upon any properties or assets of the Barbados
                  Subsidiaries under (a) to such counsel's knowledge, any
                  indenture, mortgage, loan agreement or other agreement or
                  instrument to which the Barbados Subsidiaries, jointly or
                  severally, are a party or by which they may be bound or to
                  which any of their properties or assets may be subject, (b)
                  any existing applicable



                                       32
<PAGE>

                  Barbados statute, regulation or rule, or (c) to such counsel's
                  knowledge, any judgment, order or decree of any government,
                  governmental, regulatory or administration agency, authority,
                  commission or instrumentality or court having jurisdiction
                  over the Barbados Subsidiaries or any of their properties or
                  assets.

                         (vii)  To such counsel's knowledge, the Barbados
                  Subsidiaries have not failed to obtain any licence, permit,
                  franchise or other administrative, governmental or regulatory
                  approval necessary to the ownership of their property or to
                  the conduct of their businesses, which failure to obtain has
                  or could have a material adverse effect on the businesses of
                  the Barbados Subsidiaries, taken as a whole;

                         (viii) To such counsel's knowledge, other than as
                  described in the Prospectuses, no revocation or limitation of
                  any permit, license, franchise or approval held by the
                  Barbados Subsidiaries is pending or threatened and the
                  Barbados Subsidiaries are not in default or violation of any
                  thereof, and the authorization, issuance and delivery of the
                  Securities and the compliance by the Company with the terms of
                  the Indenture do not and will not conflict with, or result in
                  a breach of any of the terms or provisions of, or constitute a
                  default under, any of such permits, licences, franchises and
                  approvals, where such revocation, limitation, default,
                  violation, conflict or breach has or could have a material
                  adverse effect on the Barbados Subsidiaries, taken as a whole;
                  and

                         (ix)   To such counsel's knowledge, other than as
                  described in the Prospectuses, there is no threatened or
                  pending change in any law, rule or regulation which would have
                  a material adverse effect on the businesses of the Barbados
                  Subsidiaries, taken as a whole.

                  (i)    Truman Bodden & Company, special Cayman Islands counsel
         for the Company, shall have furnished to you their written opinion,
         dated the Time of Delivery, in form and substance satisfactory to you,
         to the effect that:

                         (i)    Methanex International Holdings Limited ("MIHL")
                  has been duly incorporated and is validly existing and in good
                  standing under the laws of the Cayman Islands as of the date
                  hereof and has full corporate power and authority to own,
                  lease and operate its properties and assets and conduct its
                  business in the jurisdictions in which such business is
                  transacted as described in the Prospectuses;

                         (ii)   All of the issued and outstanding shares in the
                  capital of MIHL have been duly authorized and validly issued
                  and are fully paid and non-assessable;

                         (iii)  The issue and sale of the Securities and the
                  entering into, execution and delivery of this Agreement and
                  the Indenture by the Company, and the compliance of the
                  Company with and the consummation by the Company of the
                  transactions contemplated in this Agreement, the Indenture and
                  Registration Statement, do not and



                                       33
<PAGE>

                  will not result in any violation of the Memorandum and
                  Articles of Association of MIHL, and do not and will not
                  conflict with, or result in a breach of any of the terms or
                  provisions of (i) any existing applicable Cayman Islands
                  statute, regulation or rule; or (ii) to such counsel's
                  knowledge, any order or decree of any Cayman Islands
                  government, governmental, regulatory or administration agency,
                  authority, commission or instrumentality having jurisdiction
                  over MIHL or any of its properties or assets;

                         (iv)   MIHL has not failed to obtain any licence,
                  permit, franchise or other administrative, governmental or
                  regulatory approval in the Cayman Islands necessary to the
                  ownership of its property or to the conduct of its business,
                  which failure to obtain has or could have a material adverse
                  effect on the business of MIHL;

                         (v)    Based solely on such counsel's search of the
                  Cause List at the office of the Clerk of the Grand Court,
                  George Town, Grand Cayman on or immediately prior to the Time
                  of Delivery and on a certificate of the Secretary of MIHL in
                  support of such counsel's opinion, a copy of which shall be
                  provided to you, MIHL is not the subject of any legal
                  proceedings before any Court of the Cayman Islands; there is
                  no mechanism for identifying whether MIHL is the subject of
                  proceedings before any arbitrator or governmental body in the
                  Cayman Islands, but such counsel has not been informed or
                  notified of any such proceedings.

                  The opinion shall make reference to, and have annexed, a
                  certified true copy of the Register of Members of MIHL,
                  showing who are the current shareholders of MIHL as of the
                  Time of Delivery.

                  (j)    Loyens & Loeff, N.V., special Netherlands counsel for
         the Company, shall have furnished to you their written opinion, dated
         the Time of Delivery, in form and substance satisfactory to you, to the
         effect that:

                         (i)    Methanex Netherlands BV has been duly
                  incorporated and is validly existing under the law of the
                  Netherlands as a legal entity in the form of a private company
                  with limited liability ("besloten vennootschap met beperkte
                  aansprakelijkheid");

                         (ii)   Upon the incorporation of Methanex Netherlands
                  BV 178,000 (one hundred and seventy-eight thousand) shares
                  with a nominal value of NLG 1 (one guilder) each in the
                  capital of Methanex Netherlands BV were duly issued; and

                         (iii)  According to the Shareholders Register, all
                  80,864 (eighty thousand eight-hundred and sixty-four) issued
                  and outstanding shares in the capital of Methanex Netherlands
                  BV are held by Methanex International Holdings Limited.

                  (k)    On the date of the Prospectuses at a time prior to the
         execution of this Agreement, at 9:30 a.m., New York City time, on the
         effective date of any post-effective



                                       34
<PAGE>

         amendment to the Registration Statement filed subsequent to the date of
         this Agreement and also at the Time of Delivery, KPMG LLP shall have
         furnished to you a letter or letters, dated the respective dates of
         delivery thereof, in form and substance satisfactory to you, to the
         effect set forth in Annex I hereto (the executed copy of the letter
         delivered prior to the execution of this Agreement is attached as Annex
         I(a) hereto and a draft of the form of letter to be delivered on the
         effective date of any post-effective amendment to the Registration
         Statement and as of each Time of Delivery is attached as Annex I(b)
         hereto);

                  (l)    (i) Neither the Company nor any of its subsidiaries
         shall have sustained since the date of the latest audited financial
         statements included or incorporated by reference in the Prospectuses
         any loss or interference with its business from fire, explosion, flood
         or other calamity, whether or not covered by insurance, or from any
         labor dispute or court or governmental action, order or decree,
         otherwise than as set forth or contemplated in the Prospectuses, and
         (ii) since the respective dates as of which information is given in the
         Prospectuses there shall not have been any change in the share capital
         or long-term debt of the Company or any of its subsidiaries or any
         change, or any development involving a prospective change, in or
         affecting the general affairs, management, financial position,
         shareholders' equity or results of operations of the Company and its
         subsidiaries taken as a whole, otherwise than as set forth or
         contemplated in the Prospectus, the effect of which, in any such case
         described in clause (i) or (ii), is in the judgment of the Underwriters
         so material and adverse as to make it impracticable or inadvisable to
         proceed with the public offering or the delivery of the Securities on
         the terms and in the manner contemplated in the Prospectuses;

                  (m)    On or after the date hereof (i) no downgrading shall
         have occurred in the rating accorded the Company's debt securities by
         any "nationally recognized statistical rating organization", as that
         term is defined by the Commission for purposes of Rule 436(g)(2) under
         the Act, and (ii) no such organization shall have publicly announced
         that it has under surveillance or review, with possible negative
         implications, its rating of any of the Company's debt securities;

                  (n)    On or after the date hereof there shall not have
         occurred any of the following: (i) a suspension or material limitation
         in trading in securities generally on the Nasdaq National Market
         ("NASDAQ"), or the New York Stock Exchange ("NYSE"), or The Toronto
         Stock Exchange (the "TSX"); (ii) a suspension or material limitation in
         trading in the Company's securities on Nasdaq or the TSX; (iii) a
         general moratorium on commercial banking activities in New York or
         Canada declared by the relevant authorities, or a material disruption
         in commercial banking or securities settlement or clearance services in
         the United States or Canada; (iv) a change or development involving a
         prospective change in Canada taxation affecting the Company, the
         Securities or the transfer thereof or (v) the outbreak or escalation of
         hostilities involving the United States or Canada or the declaration by
         the United States or Canada of a national emergency or war or (vi) the
         occurrence of any other calamity or crisis or any change in financial,
         political or economic conditions or currency exchange rates or controls
         in the United States, Canada or elsewhere, if the effect of any such
         event specified in clause (v)



                                       35
<PAGE>

         or (vi) in the judgment of the Underwriters makes it impracticable or
         inadvisable to proceed with the public offering or the delivery of the
         Securities on the terms and in the manner contemplated in the
         Prospectuses;

                  (o)    The Company shall have complied with the provisions of
         Section 5(c) hereof with respect to the furnishing of prospectuses on
         the New York Business Day next succeeding the date of this Agreement;
         and

                  (p)    The Company shall have furnished or caused to be
         furnished to you at the Time of Delivery certificates of officers of
         the Company satisfactory to you as to the accuracy of the
         representations and warranties of the Company herein at and as of such
         Time of Delivery, as to the performance by the Company of all of its
         obligations hereunder to be performed at or prior to such Time of
         Delivery, as to the matters set forth in subsections (a) and (l) of
         this Section and as to such other matters as you may reasonably
         request.

         8.       (a) The Company will indemnify and hold harmless each
Underwriter against any losses, claims, damages or liabilities, joint or
several, to which such Underwriter may become subject, under the Act, any
British Columbia Securities Laws or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based
upon an untrue statement or alleged untrue statement of a material fact
contained in any preliminary prospectus, the Registration Statement (including
PREP Information), the U.S. Prospectus or the Canadian Prospectus, or any
amendment or supplement thereto, or arise out of or are based upon the omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, and will
reimburse each Underwriter for any legal or other expenses reasonably incurred
by such Underwriter in connection with investigating or defending any such
action or claim as such expenses are incurred; provided, however, that the
Company shall not be liable in any such case to the extent that any such loss,
claim, damage or liability arises out of or is based upon an untrue statement or
alleged untrue statement or omission or alleged omission made in any preliminary
prospectus, the Registration Statement (including the PREP Information), the
U.S. Prospectus or the Canadian Prospectus or any such amendment or supplement
in reliance upon and in conformity with written information furnished to the
Company by any Underwriter through ABN AMRO Incorporated or BNP Paribas
Securities Corp. expressly for use therein.

         (b)    Each Underwriter will indemnify and hold harmless the Company
against any losses, claims, damages or liabilities to which the Company may
become subject, under the Act, any British Columbia Securities Laws or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon an untrue statement or alleged
untrue statement of a material fact contained in any preliminary prospectus, the
Registration Statement (including the PREP Information), the U.S. Prospectus or
the Canadian Prospectus, or any amendment or supplement thereto, or arise out of
or are based upon the omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein
not misleading, in each case to the extent, but only to the extent, that such
untrue statement or alleged untrue statement or omission or alleged omission was
made in any preliminary prospectus, the


                                       36
<PAGE>

Registration Statement (including the PREP Information), the U.S. Prospectus or
the Canadian Prospectus or any such amendment or supplement in reliance upon and
in conformity with written information furnished to the Company by such
Underwriter through ABN AMRO Incorporated or BNP Paribas Securities Corp.
expressly for use therein; and will reimburse the Company for any legal or other
expenses reasonably incurred by the Company in connection with investigating or
defending any such action or claim as such expenses are incurred.

         (c)    Promptly after receipt by an indemnified party under subsection
(a) or (b) above of notice of the commencement of any action, such indemnified
party shall, if a claim in respect thereof is to be made against the
indemnifying party under such subsection, notify the indemnifying party in
writing of the commencement thereof; but the omission so to notify the
indemnifying party shall not relieve it from any liability which it may have to
any indemnified party otherwise than under such subsection. In case any such
action shall be brought against any indemnified party and it shall notify the
indemnifying party of the commencement thereof, the indemnifying party shall be
entitled to participate therein and, to the extent that it shall wish, jointly
with any other indemnifying party similarly notified, to assume the defense
thereof, with counsel satisfactory to such indemnified party (who shall not,
except with the consent of the indemnified party, be counsel to the indemnifying
party), and, after notice from the indemnifying party to such indemnified party
of its election so to assume the defense thereof, the indemnifying party shall
not be liable to such indemnified party under such subsection for any legal
expenses of other counsel or any other expenses, in each case subsequently
incurred by such indemnified party, in connection with the defense thereof other
than reasonable costs of investigation. No indemnifying party shall, without the
written consent of the indemnified party, effect the settlement or compromise
of, or consent to the entry of any judgment with respect to, any pending or
threatened action or claim in respect of which indemnification or contribution
may be sought hereunder (whether or not the indemnified party is an actual or
potential party to such action or claim) unless such settlement, compromise or
judgment (i) includes an unconditional release of the indemnified party from all
liability arising out of such action or claim and (ii) does not include a
statement as to or an admission of fault, culpability or a failure to act, by or
on behalf of any indemnified party.

         (d)    If the indemnification provided for in this Section 8 is
unavailable to or insufficient to hold harmless an indemnified party under
subsection (a) or (b) above in respect of any losses, claims, damages or
liabilities (or actions in respect thereof) referred to therein, then each
indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities (or
actions in respect thereof) in such proportion as is appropriate to reflect the
relative benefits received by the Company on the one hand and the Underwriters
on the other from the offering of the Securities. If, however, the allocation
provided by the immediately preceding sentence is not permitted by applicable
law or if the indemnified party failed to give the notice required under
subsection (c) above, then each indemnifying party shall contribute to such
amount paid or payable by such indemnified party in such proportion as is
appropriate to reflect not only such relative benefits but also the relative
fault of the Company on the one hand and the Underwriters on the other in
connection with the statements or omissions which resulted in such losses,
claims, damages or liabilities (or actions in respect thereof), as well as any
other relevant equitable considerations. The relative benefits received by the
Company on the one hand and the Underwriters on the other shall be



                                       37
<PAGE>

deemed to be in the same proportion as the total net proceeds from the offering
(before deducting expenses) received by the Company bear to the total
underwriting discounts and commissions received by the Underwriters, in each
case as set forth in the table on the cover page of the Prospectuses. The
relative fault shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by the
Company on the one hand or the Underwriters on the other and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission. The Company and the Underwriters agree that
it would not be just and equitable if contribution pursuant to this subsection
(d) were determined by pro rata allocation (even if the Underwriters were
treated as one entity for such purpose) or by any other method of allocation
which does not take account of the equitable considerations referred to above in
this subsection (d). The amount paid or payable by an indemnified party as a
result of the losses, claims, damages or liabilities (or actions in respect
thereof) referred to above in this subsection (d) shall be deemed to include any
legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this subsection (d), no Underwriter shall be
required to contribute any amount in excess of the amount by which the total
price at which the Securities underwritten by it and distributed to the public
were offered to the public exceeds the amount of any damages which such
Underwriter has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. The Underwriters' obligations in this subsection
(d) to contribute are several in proportion to their respective underwriting
obligations and not joint.

         (e)    The obligations of the Company under this Section 8 shall be in
addition to any liability which the Company may otherwise have and shall extend,
upon the same terms and conditions, to each person, if any, who controls any
Underwriter within the meaning of the Act; and the obligations of the
Underwriters under this Section 8 shall be in addition to any liability which
the respective Underwriters may otherwise have and shall extend, upon the same
terms and conditions, to each officer and director of the Company (including any
person who, with his or her consent, is named in the Registration Statement as
about to become a director of the Company) and to each person, if any, who
controls the Company within the meaning of the Act.

         9.    (a) If any Underwriter shall default in its obligation to
purchase the Securities which it has agreed to purchase hereunder, you may in
your discretion arrange for you or another party or other parties to purchase
such Securities on the terms contained herein. If within thirty-six hours after
such default by any Underwriter you do not arrange for the purchase of such
Securities, then the Company shall be entitled to a further period of thirty-six
hours within which to procure another party or other parties satisfactory to you
to purchase such Securities on such terms. In the event that, within the
respective prescribed periods, you notify the Company that you have so arranged
for the purchase of such Securities, or the Company notifies you that it has so
arranged for the purchase of such Securities, you or the Company shall have the
right to postpone the Time of Delivery for a period of not more than seven days,
in order to effect whatever changes may thereby be made necessary in the
Registration



                                       38
<PAGE>

Statement or the Prospectuses, or in any other documents or arrangements, and
the Company agrees to file promptly any amendments to the Registration Statement
or the Prospectuses which in your opinion may thereby be made necessary. The
term "Underwriter" as used in this Agreement shall include any person
substituted under this Section with like effect as if such person had originally
been a party to this Agreement with respect to such Securities.

         (b)    If, after giving effect to any arrangements for the purchase of
the Securities of a defaulting Underwriter or Underwriters by you and the
Company as provided in subsection (a) above, the aggregate principal amount of
such Securities which remains unpurchased does not exceed one-eleventh of the
aggregate principal amount of all the Securities, then the Company shall have
the right to require each non-defaulting Underwriter to purchase the principal
amount of Securities which such Underwriter agreed to purchase hereunder and, in
addition, to require each non-defaulting Underwriter to purchase its pro rata
share (based on the principal amount of Securities which such Underwriter agreed
to purchase hereunder) of the Securities of such defaulting Underwriter or
Underwriters for which such arrangements have not been made; but nothing herein
shall relieve a defaulting Underwriter from liability for its default.

         (c)    If, after giving effect to any arrangements for the purchase of
the Securities of a defaulting Underwriter or Underwriters by you and the
Company as provided in subsection (a) above, the aggregate principal amount of
Securities which remains unpurchased exceeds one-eleventh of the aggregate
principal amount of all the Securities, or if the Company shall not exercise the
right described in subsection (b) above to require non-defaulting Underwriters
to purchase Securities of a defaulting Underwriter or Underwriters, then this
Agreement shall thereupon terminate, without liability on the part of any
non-defaulting Underwriter or the Company, except for the expenses to be borne
by the Company and the Underwriters as provided in Section 6 hereof and the
indemnity and contribution agreements in Section 8 hereof; but nothing herein
shall relieve a defaulting Underwriter from liability for its default.

         10.    The respective indemnities, agreements, representations,
warranties and other statements of the Company and the several Underwriters, as
set forth in this Agreement or made by or on behalf of them, respectively,
pursuant to this Agreement, shall remain in full force and effect, regardless of
any investigation (or any statement as to the results thereof) made by or on
behalf of any Underwriter or any controlling person of any Underwriter, or the
Company, or any officer or director or controlling person of the Company, and
shall survive delivery of and payment for the Securities.

         11.    If this Agreement shall be terminated pursuant to Section 9
hereof, the Company shall not then be under any liability to any Underwriter
except as provided in Sections 6 and 8 hereof; but, if for any other reason, the
Securities are not delivered by or on behalf of the Company as provided herein,
the Company will reimburse the Underwriters through you for all out-of-pocket
expenses approved in writing by you, including fees and disbursements of
counsel, reasonably incurred by the Underwriters in making preparations for the
purchase, sale and delivery of the Securities, but the Company shall then be
under no further liability to any Underwriter except as provided in Sections 6
and 8 hereof.


                                       39
<PAGE>

         12.    In all dealings hereunder, you shall act on behalf of each of
the Underwriters, and the parties hereto shall be entitled to act and rely upon
any statement, request, notice or agreement on behalf of any Underwriter made or
given by you jointly or by ABN AMRO Incorporated or BNP Paribas Securities Corp.
on behalf of the Underwriters.

         All statements, requests, notices and agreements hereunder shall be in
writing, and if to the Underwriters shall be delivered or sent by mail, telex or
facsimile transmission to you as the representatives in care of ABN AMRO
Incorporated, 55 East 52nd Street, 6th Floor, New York, NY 10055, Attention:
Syndicate Desk, Liz Chan, Fax: (212) 409-5256 and BNP Paribas Securities Corp.,
787 Seventh Avenue, 8th Floor, New York, NY 10019-6016, Attention: Tim McCann,
Fax: (212) 841-3158; and if to the Company shall be delivered or sent by mail,
telex or facsimile transmission to the address of the Company set forth in the
Registration Statement, Attention: Chief Financial Officer; provided, however,
that any notice to an Underwriter pursuant to Section 8(c) hereof shall be
delivered or sent by mail, telex or facsimile transmission to such Underwriter
at its address set forth in its Underwriters' Questionnaire, or telex
constituting such Questionnaire, which address will be supplied to the Company
by you upon request. Any such statements, requests, notices or agreements shall
take effect upon receipt thereof.

         13.    This Agreement shall be binding upon, and inure solely to the
benefit of, the Underwriters, the Company and, to the extent provided in
Sections 8 and 10 hereof, the officers and directors of the Company and each
person who controls the Company or any Underwriter, and their respective heirs,
executors, administrators, successors and assigns, and no other person shall
acquire or have any right under or by virtue of this Agreement. No purchaser of
any of the Securities from any Underwriter shall be deemed a successor or assign
by reason merely of such purchase.

         14.    The Company irrevocably (i) agrees that any legal suit, action
or proceeding against the Company brought by any Underwriter or by any person
who controls any Underwriter arising out of or based upon this Agreement or the
transactions contemplated hereby may be instituted in any New York Court, (ii)
waives, to the fullest extent it may effectively do so, any objection which it
may now or hereafter have to the laying of venue of any such proceeding and
(iii) submits to the exclusive jurisdiction of such courts in any such suit,
action or proceeding. The Company irrevocably waives any immunity to
jurisdiction to which it may otherwise be entitled or become entitled (including
sovereign immunity, immunity to pre-judgment attachment, post-judgment
attachment and execution) in any legal suit, action or proceeding against it
arising out of or based on this Agreement or the transactions contemplated
hereby which is instituted in any New York Court or in any competent court in
Canada. The Company has appointed CT Corporation System 111 Eighth Avenue, New
York, New York 10011, as its authorized agent (the "AUTHORIZED AGENT") upon whom
process may be served in any such action arising out of or based on this
Agreement or the transactions contemplated hereby which may be instituted in any
New York Court by any Underwriter or by any person who controls any Underwriter,
expressly consents to the jurisdiction of any such court in respect of any such
action, and waives any other requirements of or objections to personal
jurisdiction with respect thereto. Such appointment shall be irrevocable. The
Company represents and warrants that the Authorized Agent has agreed to act as
such agent for service of process and agrees to take any and all action,
including the



                                       40
<PAGE>

filing of any and all documents and instruments, that may be necessary to
continue such appointment in full force and effect as aforesaid. Service of
process upon the Authorized Agent and written notice of such service to the
Company shall be deemed, in every respect, effective service of process upon the
Company.

         15.    In respect of any judgment or order given or made for any amount
due hereunder that is expressed and paid in a currency (the "JUDGMENT CURRENCY")
other than United States dollars, the Company will indemnify each Underwriter
against any loss incurred by such Underwriter as a result of any variation as
between (i) the rate of exchange at which the United States dollar amount is
converted into the judgment currency for the purpose of such judgment or order
and (ii) the rate of exchange at which an Underwriter is able to purchase United
States dollars with the amount of judgment currency actually received by such
Underwriter. The foregoing indemnity shall constitute a separate and independent
obligation of the Company and shall continue in full force and effect
notwithstanding any such judgment or order as aforesaid. The term "RATE OF
EXCHANGE" shall include any premiums and costs of exchange payable in connection
with the purchase of or conversion into United States dollars.

         16.    Time shall be of the essence of this Agreement. As used herein,
and except as otherwise provided, the term "BUSINESS DAY" shall mean any day
when the Commission's office in Washington, D.C. is open for business.

         17.    THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK.

         18.    This Agreement may be executed by any one or more of the parties
hereto in any number of counterparts, each of which shall be deemed to be an
original, but all such respective counterparts shall together constitute one and
the same instrument.

         19.    The Company is authorized, subject to applicable law, to
disclose any and all aspects of this potential transaction that are necessary to
support any U.S. federal income tax benefits expected to be claimed with respect
to such transaction, and all materials of any kind (including tax opinions and
other tax analyses) related to those benefits, without the Underwriters imposing
any limitation of any kind.


                                       41
<PAGE>


         If the foregoing is in accordance with your understanding, please sign
and return to us eight counterparts hereof, and upon the acceptance hereof by
you, on behalf of each of the Underwriters, this letter and such acceptance
hereof shall constitute a binding agreement between each of the Underwriters and
the Company. It is understood that your acceptance of this letter on behalf of
each of the Underwriters is pursuant to the authority set forth in a form of
Agreement among Underwriters, the form of which shall be submitted to the
Company for examination upon request, but without warranty on your part as to
the authority of the signers thereof.



                                     Very truly yours,

                                     METHANEX CORPORATION



                                     By:
                                         -------------------------------
                                         Name:    Ian P. Cameron
                                         Title:   Senior Vice-President, Finance
                                                  & Chief Financial Officer

Accepted as of the
date hereof on
behalf of themselves
and the other
Underwriters:

ABN AMRO Incorporated


By:
    ---------------------------------
    Name:
    Title:


BNP Paribas Securities Corp.


By:
    ---------------------------------
    Name:
    Title:



                                       42
<PAGE>





                                   SCHEDULE I

<TABLE>
<CAPTION>

                                                                PRINCIPAL AMOUNT
                                                                  OF SECURITIES
                                                                 TO BE PURCHASED
                                                                ----------------

<S>                                                             <C>
ABN AMRO Incorporated ........................................  $
BNP Paribas Securities Corp. .................................
CIBC World Market Corp. ......................................
RBC Capital Markets Corporation ..............................
                                                                ----------------
                  Total ......................................  $
                                                                ================
</TABLE>


<PAGE>


                                   SCHEDULE II
                            SIGNIFICANT SUBSIDIARIES


<TABLE>
<CAPTION>
                                                                       OWNERSHIP
NAME                                            JURISDICTION          BY COMPANY
<S>                                             <C>                      <C>
Cape Horn Finance Limited                       Barbados                  100%
Methanex Atlas Holdings Limited                 Barbados                  100%
Methanex Chile Limited                          Barbados                  100%
Methanex Holdings (Barbados) Limited            Barbados                  100%
Methanex Trinidad Holdings Limited              Barbados                  100%
Waterfront Shipping Company Limited             Barbados                  100%
Methanex Europe N.V.                            Belgium                   100%
Methanex International Holdings Limited         Cayman Islands            100%
Methanex Chile Limited (Agencia)                Chile                     100%
Methanex Holdings Ltd.                          Delaware                  100%
Methanex Netherlands BV                         Netherlands               100%
Methanex New Zealand Limited                    New Zealand               100%
Methanex Methanol Company                       Texas                     100%
Atlas Methanol Company Unlimited                Trinidad                 63.1%
Methanex Trinidad Unlimited                     Trinidad                  100%
</TABLE>


<PAGE>



                                                                         ANNEX I

                  FORM OF ANNEX I DESCRIPTION OF COMFORT LETTER


         Pursuant to Section 7(j) of the Underwriting Agreement, the accountants
shall furnish letters to the Underwriters to the effect that:

                  (i) They are independent certified public accountants with
         respect to the Company and its subsidiaries within the meaning British
         Columbia Securities Laws, the Act and the applicable published rules
         and regulations thereunder (collectively, the "ACCOUNTING
         REQUIREMENTS");

                  (ii) In their opinion, the financial statements and any
         supplementary financial information and schedules (and, if applicable,
         financial forecasts and/or pro forma financial information) audited by
         them and included in the Prospectuses and the Registration Statement
         comply as to form in all material respects with the Accounting
         Requirements and, if applicable, they have made a review in accordance
         with standards established by the Canadian Institute of Chartered
         Accountants ("CICA"), which are substantially similar to those of the
         American Institute of Certified Public Accountants ("AICPA") of the
         unaudited consolidated interim financial statements, and if applicable,
         selected financial data, pro forma financial information, financial
         forecasts and/or condensed financial statements derived from audited
         financial statements of the Company for the periods specified in such
         letter, as indicated in their reports thereon, copies of which have
         been separately furnished to the representatives of the Underwriters
         (the "REPRESENTATIVES") and are attached hereto;

                  (iii) They have made a review in accordance with standards
         established by CICA, which are substantially similar to those of AICPA
         of the unaudited condensed consolidated statements of income,
         consolidated balance sheets and consolidated statements of cash flows
         included in the Prospectuses and on the basis of specified procedures
         including inquiries of officials of the Company who have responsibility
         for financial and accounting matters regarding whether the unaudited
         condensed consolidated financial statements referred to in paragraph
         (vi)(A)(i) below comply as to form in all material respects with the
         Accounting Requirements, nothing came to their attention that cause
         them to believe that the unaudited condensed consolidated financial
         statements do not comply as to form in all material respects with the
         Accounting Requirements;

                  (iv) The unaudited selected financial information with respect
         to the consolidated results of operations and financial position of the
         Company for the five most recent fiscal years included in the
         Prospectuses agrees with the corresponding amounts (after restatements
         where applicable) in the audited consolidated financial statements for
         such five fiscal years which


<PAGE>

         were included or incorporated by reference in the Company's Annual
         Reports on Form 40-F or Annual Information Form for such fiscal years;

                  (v) On the basis of limited procedures, not constituting an
         examination in accordance with generally accepted auditing standards,
         consisting as applicable in the circumstances of a reading of the
         unaudited financial statements and other information referred to below,
         a reading of the latest available interim financial statements of the
         Company and its subsidiaries, inspection of the minute books of the
         Company and its subsidiaries since the date of the latest audited
         financial statements included in the Prospectuses, inquiries of
         officials of the Company and its subsidiaries responsible for financial
         and accounting matters and such other inquiries and procedures as may
         be specified in such letter, nothing came to their attention that
         caused them to believe that:

                           (A) (i) the unaudited consolidated statements of
                  income, consolidated balance sheets and consolidated
                  statements of cash flows included in the Prospectuses do not
                  comply as to form in all material respects with the Accounting
                  Requirements, or (ii) any material modifications should be
                  made to the unaudited condensed consolidated statements of
                  income, consolidated balance sheets and consolidated
                  statements of cash flows included in the Prospectuses for them
                  to be in conformity with Canadian GAAP applicant on the basis
                  substantially consistent with that of the audited financial
                  statements in the Prospectuses;

                           (B) any other unaudited income statement data and
                  balance sheet items included in the Prospectuses do not agree
                  with the corresponding items in the unaudited consolidated
                  financial statements from which such data and items were
                  derived, and any such unaudited data and items were not
                  determined on a basis substantially consistent with the basis
                  for the corresponding amounts in the audited consolidated
                  financial statements included in the Prospectuses;

                           (C) if applicable, any unaudited pro forma
                  consolidated condensed financial statements included in the
                  Prospectuses do not comply as to form in all material respects
                  with the Accounting Requirements or the pro forma adjustments
                  have not been properly applied to the historical amounts in
                  the compilation of those statements;

                           (D) as of a specified date not more than five days
                  prior to the date of such letter, there have been no changes
                  in the consolidated capital stock (other than issuances of
                  capital stock upon exercise of options and stock appreciation
                  rights, upon earn-outs of performance shares and upon
                  conversions of convertible securities, in each case which were
                  outstanding on the date of the latest financial statements
                  included in the Prospectuses) or any increase in the
                  consolidated long-term debt of the Company and its
                  subsidiaries, or any decreases in consolidated net current
                  assets or stockholders' equity or other items specified by the
                  Representatives, or any increases in any items specified by
                  the Representatives, in each case as compared with amounts
                  shown in the latest


                                    Annex I-2

<PAGE>


                  balance sheet included in the Prospectus, except in each case
                  for changes, increases or decreases which the Prospectus
                  disclose have occurred or may occur or which are described in
                  such letter; and


                           (E) for the period from the date of the latest
                  financial statements included in the Prospectuses to the
                  specified date referred to in clause (E) there were no
                  decreases in consolidated net revenues or operating profit or
                  the total or per share amounts of consolidated net income or
                  other items specified by the Representatives, or any increases
                  in any items specified by the Representatives, in each case as
                  compared with the comparable period of the preceding year and
                  with any other period of corresponding length specified by the
                  Representatives, except in each case for decreases or
                  increases which the Prospectuses discloses have occurred or
                  may occur or which are described in such letter; and

                  (i) In addition to the examination referred to in their
         report(s) included in the Prospectuses and the limited procedures,
         inspection of minute books, inquiries and other procedures referred to
         in paragraphs (iii) and (vi) above, they have carried out certain
         specified procedures, not constituting an examination in accordance
         with generally accepted auditing standards, with respect to certain
         amounts, percentages and financial information specified by the
         Representatives, which are derived from the general accounting records
         of the Company and its subsidiaries, which appear in the Prospectuses,
         or in Part II of, or in exhibits and schedules to, the Registration
         Statement specified by the Representatives, and have compared certain
         of such amounts, percentages and financial information with the
         accounting records of the Company and its subsidiaries and have found
         them to be in agreement.


                                    Annex I-3
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.9
<SEQUENCE>3
<FILENAME>o17489exv4w9.txt
<DESCRIPTION>EARNINGS COVERAGE CALCULATION
<TEXT>
<PAGE>
                                                                     Exhibit 4.9


                              METHANEX CORPORATION

                       PRO FORMA EARNINGS COVERAGE RATIOS

         FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2004 AND JUNE 30, 2005


<TABLE>
<CAPTION>
                                                                                     TWELVE MONTHS        TWELVE MONTHS
                                                                                   ENDED DECEMBER 31,     ENDED JUNE 30,
                                                                                          2004                 2005
                                                                                   ------------------     --------------
<S>                                                                                <C>                    <C>
INTEREST REQUIREMENTS:

 Interest expense per financial statements                                                $30,641             $37,587

 Add: capitalized interest                                                                 23,862              17,153
                                                                                         --------            --------
 Interest including capitalized interest                                                   54,503              54,740

 Deduct:

      Interest on US$250 million unsecured long-term debt to be repaid
      from proceeds                                                                       (19,375)            (19,375)

      Amortization of deferred financing fees                                                (763)               (763)

      Amortization of discount                                                               (137)               (137)

 Add:

      Interest on US$150 million unsecured long-term debt (6%)(1)                           9,000               9,000

      Amortization of commission(1)                                                           100                 100

      Amortization of servicing costs(1)                                                       60                  60
                                                                                         --------            --------
Pro forma interest expense                                                                $43,388             $43,625
                                                                                         ========            ========

EARNINGS:

 Net income                                                                              $236,444            $276,206

 Add:

      Income tax expense                                                                   95,228             108,050

      Interest expense                                                                     30,641              37,587
                                                                                         --------            --------
 Earnings before interest expense and income taxes                                       $362,313            $421,843
                                                                                         ========            ========

EARNINGS COVERAGE RATIO                                                                      8.35                9.67


SUPPLEMENTARY CALCULATION:

Earnings before interest expense and income taxes                                        $362,313            $421,843

 Depreciation and amortization                                                             78,701              83,556

 Interest and other income                                                                 (6,627)             (4,438)
                                                                                         --------            --------
EBITDA, as defined                                                                       $434,387            $500,961
                                                                                         ========            ========


SUPPLEMENTARY EARNINGS COVERAGE RATIO                                                       10.01               11.48
</TABLE>

- ----------
(1)  Estimated amounts only. Actual amounts may differ.
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-5.1
<SEQUENCE>4
<FILENAME>o17489exv5w1.txt
<DESCRIPTION>CONSENT OF KPMG LLP
<TEXT>
<PAGE>

                                                                     EXHIBIT 5.1

            CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors of Methanex Corporation

We consent to the use of:

      (a)   our report dated March 4, 2005 on the consolidated balance sheets of
            Methanex Corporation as at December 31, 2004 and 2003 and the
            consolidated statements of income, shareholders' equity and cash
            flows for the years then ended; and

      (b)   our report dated March 4, 2005 on the Supplemental Information
            entitled "Reconciliation with United States Generally Accepted
            Accounting Principles" of Methanex Corporation as at December 31,
            2004 and 2003, and for the years then ended,


both incorporated by reference herein and to the reference to our firm under the
heading "Experts" in the prospectus contained in the registration statement on
Form F-9.



/s/ KPMG LLP
Chartered Accountants
Vancouver, Canada
July 27, 2005

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-7.3
<SEQUENCE>5
<FILENAME>o17489exv7w3.txt
<DESCRIPTION>FORM OF OFFICERS' CERTIFICATE OF METHANEX CORP.
<TEXT>
<PAGE>
                                                                     Exhibit 7.3

                              METHANEX CORPORATION

                              OFFICERS' CERTIFICATE

         This Officers' Certificate is being delivered in connection with the
issuance by Methanex Corporation (the "Company") of $150,000,000 aggregate
principal amount of -% Senior Notes Due 2015 (the "-% Senior Notes"), which are
represented by a Global -% Note (the "Global -% Note"), and pursuant to Section
2.03 of the Indenture (the "Original Indenture"), dated as of July 20, 1995,
between the Company and The Bank of New York (formerly The United States Trust
Company of New York), as trustee (the "Trustee"), as supplemented by the Second
Supplemental Indenture, dated as of June 19, 2002, between the Company and the
Trustee (the "Second Supplemental Indenture") and the Fourth Supplemental
Indenture, dated as of August -, 2005 between the Company and the Trustee (the
"Fourth Supplemental Indenture") and together with the Original Indenture and
the Second Supplemental Indenture (the "Indenture"). Unless otherwise defined
herein, all capitalized terms used herein which are defined in this Indenture
are used herein with the meanings specified therein.

         Pursuant to Section 2.03 of the Original Indenture, the undersigned
hereby certify, in their capacities as officers of the Company and not in their
personal capacities, as follows:

1.    The title of the -% Senior Notes shall be "-% Senior Notes Due 2015".

2.    The -% Senior Notes shall be unlimited in aggregate principal amount and
      issued as Registered Securities only.

3.    The -% Senior Notes shall not require any principal or premium payments
      prior to maturity on -, 2015.

4.    The rate at which the -% Senior Notes shall bear interest shall be -% per
      year; the date from which such interest shall accrue shall be -; the
      interest payment dates on which such interest shall be payable shall be -
      and -, beginning -, 2006; and the record dates for the determination of
      the holders of the -% Senior Notes to whom such interest is payable shall
      be - (for - payment dates) and - (for - payment dates).

5.    Payments of principal of and interest on the -% Senior Notes represented
      by the Global -% Note initially registered in the name of The Depository
      Trust Company or its nominee shall be made by the Company through the
      Trustee in immediately available funds to the Depositary or its nominee,
      as the case may be.


6.    The -% Senior Notes shall only be redeemable prior to maturity pursuant to
      Sections 5 and 6 of the Global -% Note. The redemption price to be paid
      in respect of any redemption pursuant to Section 5 of the Global -% Note
      will be the greater of (i) 100% of the principal amount of the -% Senior
      Notes being redeemed, and (ii) the sum of the present values of the
      remaining scheduled payments of principal and interest thereon (exclusive
      of interest accrued to the date of redemption) discounted to the
      redemption date on a semi-annual basis at the Treasury Rate (as defined
      in Section 5 of the -% Global Note) plus - basis points, plus in each
      case accrued interest thereon to the date of redemption.


7.    The -% Senior Notes shall be represented by a Global -% Note deposited
      with the Depositary and registered in the name of the nominee of the
      Depositary, substantially in the form attached hereto.

<PAGE>

8.    There shall be no mandatory sinking fund for the payments of the -% Senior
      Notes.

9.    As long as the Depositary or its nominee, or a successor Depositary or its
      nominee, is the registered owner of the Global -% Note, owners of the
      beneficial interests in the Global -% Note shall not be entitled to have
      the -% Senior Notes registered in their names and shall not receive or be
      entitled to receive physical delivery of -% Senior Notes in definitive
      form.

10.   The provisions of (i) the Second Supplemental Indenture, as amended by the
      Fourth Supplemental Indenture and (ii) the Fourth Supplemental Indenture
      shall apply to the -% Senior Notes.

11.   Other than as amended by the Second Supplemental Indenture and the Fourth
      Supplemental Indenture, the Company shall be subject to all the covenants
      set forth in Article IV of the Original Indenture with respect to the -%
      Senior Notes.

12.   Articles X and XI of the Original Indenture, as amended by the Second
      Supplemental Indenture, shall apply to the -% Senior Notes.

13.   The -% Senior Notes shall not be subordinated pursuant to the provisions
      of Article XII of the Original Indenture. The -% Senior Notes shall be
      senior unsecured obligations of the Company ranking pari passu with all
      other unsubordinated and unsecured senior indebtedness of the Company.

      Pursuant to Section 13.05 of the Original Indenture, each of the
undersigned officers of the Company hereby certifies that (a) he has read
Section 2.03 of the Original Indenture, (b) he has conducted an examination of
the provisions of the Original Indenture, the Second Supplemental Indenture and
the Fourth Supplemental Indenture, the -% Senior Notes and the Global -% Note
necessary to set forth the statements and opinions contained herein, (c) in his
opinion, he has conducted such examination as is necessary to enable him to
express an informed opinion as to whether or not the conditions of Section 2.03
of the Original Indenture have been complied with and (d) in his opinion,
Section 2.03 of the Original Indenture has been complied with.



                                       --------------------------------------
                                       Ian Cameron
                                       Senior Vice President, Finance and
                                       Chief Financial Officer


                                       --------------------------------------
                                       Randy Milner
                                       Senior Vice President, General Counsel
                                       and Corporate Secretary


                                       2
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-7.4
<SEQUENCE>6
<FILENAME>o17489exv7w4.txt
<DESCRIPTION>FORM OF FOURTH SUPPLEMENTAL INDENTURE
<TEXT>
<PAGE>
                                                                     Exhibit 7.4


                              METHANEX CORPORATION

                                    AS ISSUER
                                    ---------


                                       AND


                              THE BANK OF NEW YORK

                                   AS TRUSTEE
                                  ------------




                          FOURTH SUPPLEMENTAL INDENTURE

                           DATED AS OF AUGUST -, 2005

                                       To

  Indenture dated as of July 20, 1995, between Methanex Corporation, as Issuer,
  and The Bank of New York (formerly United States Trust Company of New York),
             as Trustee, providing for the issue of Debt Securities



<PAGE>



                          FOURTH SUPPLEMENTAL INDENTURE

         THIS FOURTH SUPPLEMENTAL INDENTURE (this "Fourth Supplemental
Indenture") is made as of the - day of August, 2005, between Methanex
Corporation (the "Company") and The Bank of New York (formerly United States
Trust Company of New York), as trustee (the "Trustee").

         WHEREAS, by a trust indenture made as of July 20, 1995, between the
Company and the Trustee provision was made for the issue of securities of the
Company in one or more series (the "Original Indenture");

         WHEREAS, the Original Indenture was supplemented by the First
Supplemental Indenture, dated June 18, 2002, the Second Supplemental Indenture,
dated June 19, 2002, the Third Supplemental Indenture, dated December 9, 2003,
(as so supplemented, the "Indenture"), in all cases between the Company and the
Trustee;

         WHEREAS under and in accordance with the terms of the Indenture, there
have heretofore been issued three series of securities;

         WHEREAS the Indenture provides that the aggregate principal amount of
securities which may be issued thereunder is unlimited but securities may be
issued only upon and subject to the conditions and limitations set forth
therein;

         WHEREAS the Company desires and may from time to time desire to issue
Debt Securities having the attributes and characteristics hereinafter set forth;

         WHEREAS the Company is not in default under the Indenture;


         WHEREAS all necessary acts and proceedings have been done and taken and
all necessary resolutions passed to authorize the execution and delivery of this
Fourth Supplemental Indenture and to make the same legal and valid and binding
upon the Company; and

         WHEREAS the foregoing recitals are made as representations and
statements of fact by the Company and not by the Trustee;

         WHEREAS the Company is permitted to enter into this Fourth Supplemental
Indenture pursuant to Section 9.01(j) of the Indenture with the intent that the
provisions of this Fourth Supplemental Indenture will apply only to the Debt
Securities (as defined herein);

         NOW, THEREFORE, in consideration of the foregoing and notwithstanding
any provision of the Indenture which, absent this Fourth Supplemental Indenture,
might operate to limit such action, the Company and the Trustee agree as follows
for the equal and ratable benefit of the Holders of the Debt Securities:

                                    ARTICLE I

                                   DEFINITIONS

                  SECTION 1.01   DEFINITIONS.

         For all purposes of this Fourth Supplemental Indenture, except as
otherwise expressly provided or unless the subject matter or context otherwise
requires:

                  "Debt Securities" has the meaning set forth in the Indenture,
                  except that it shall not include the 7.75% Notes Due 2005 or
                  the 8.75% Notes due 2012;

                  "Trust Indenture" means the Indenture as supplemented by this
                  Fourth Supplemental Indenture and any other indenture, deed or
                  instrument supplemental or ancillary thereto; and

<PAGE>

other terms and expressions used herein shall have the same meanings as
corresponding expressions defined in the Trust Indenture.

                  SECTION 1.02   SCHEDULES.

         The following Schedule forms part of this Fourth Supplemental
Indenture:

         Schedule I - Form of Debt Security

                  SECTION 1.03   TO BE READ WITH INDENTURE.

         This Fourth Supplemental Indenture is a supplemental indenture within
the meaning of the Indenture and, the Indenture and this Fourth Supplemental
Indenture shall be read together and shall have effect, so far as practicable,
as though all the provisions of the Indenture and this Fourth Supplemental
Indenture were contained in one instrument.

                                   ARTICLE II

                                  SERIES NOTES

                  SECTION 2.01   AMENDMENTS TO CHANGE OF CONTROL COVENANT.

         Section 2.02 of the Second Supplemental Indenture, dated as of June 19,
2002, between the Company and the Trustee, which supplements the Original
Indenture, shall not apply to Debt Securities of any series, if at any time on
or after the date hereof, the Debt Securities have, or at any time had, an
Investment Grade Rating.

         For purposes of this Section 2.01, the term "INVESTMENT GRADE RATING"
shall mean, with respect to the Debt Securities, a concurrent rating of (i) BBB-
or higher by S&P's current Rating Categories (or its equivalent under any
successor's Rating Categories) and (ii) Baa3 or higher by Moody's current Rating
Categories (or its equivalent under any successor's Rating Categories).

                  SECTION 2.02   DEFINITION OF UNRESTRICTED SUBSIDIARY.

         The definition of "Unrestricted Subsidiary" in Section 1.01 of the
Original Indenture, as it applies to the Debt Securities, is hereby deleted and
replaced with the following:

         "Unrestricted Subsidiary" means, as it applies to the Debt Securities,
         (1) any Subsidiary of the Company that shall be designated an
         Unrestricted Subsidiary by the Board of Directors in the manner
         provided below and (2) each Subsidiary of an Unrestricted Subsidiary.
         The Board of Directors may designate any Subsidiary of the Company
         (other than a Restricted Subsidiary which owns, legally or
         beneficially, all or a material portion of or interest in any of the
         facilities located at Puntas Arenas in Chile (including Chile I, Chile
         II, Chile III and Chile IV), Waitara and Motunui in New Zealand
         (including D I, D II, D III and D IV) and Point Lisas in Trinidad (and
         owned as of the date of this Fourth Supplemental Indenture by Methanex
         Trinidad Unlimited)) to be an Unrestricted Subsidiary unless such
         Subsidiary or any of its Subsidiaries owns any Capital Stock or
         Indebtedness of, or holds any Lien on any property of, the Company or
         any other Subsidiary that is not a Subsidiary of the Subsidiary to be
         so designated; provided, however, that, immediately after giving effect
         to such designation no Default shall have occurred and be continuing.
         The Board of Directors may designate any Unrestricted Subsidiary to be
         a Restricted Subsidiary; provided, however, that immediately after
         giving effect to such designation no Default shall have occurred and be
         continuing. Any such designation by the Board of Directors shall be
         evidenced to the Trustee by promptly filing with the Trustee a copy of
         the board resolution giving effect to such designation and an Officers'
         Certificate certifying that such designation complied with the
         foregoing provisions.

<PAGE>

                  SECTION 2.03   FORM OF NOTE.

         Upon execution of this Fourth Supplemental Indenture, Section 5 of the
form of Note set forth in Exhibit A to the Indenture shall be deleted and
replaced with the following:

                  5.   OPTIONAL REDEMPTION.

         The Debt Securities will be redeemable as a whole or in part, at the
Company's option at any time, at a redemption price equal to the greater of (1)
100% of the principal amount of the Debt Securities being redeemed and (2) the
sum of the present values of the remaining scheduled payments of principal and
interest thereon (exclusive of interest accrued to the date of redemption)
discounted to the redemption date on a semi-annual basis (assuming a 360-day
year consisting of twelve 30-day months) at the Treasury Rate plus - basis
points, plus in each case accrued interest thereon to the date of redemption.

                  "Comparable Treasury Issue" means the United States Treasury
         security or securities selected by an Independent Investment Banker as
         having an actual or interpolated maturity comparable to the remaining
         term of the Debt Securities to be redeemed that would be utilized, at
         the time of selection and in accordance with customary financial
         practice, in pricing new issues of corporate debt securities of a
         comparable maturity to the remaining term of such Debt Securities.

                  "Comparable Treasury Price" means, with respect to any
         redemption date, (1) the average of the Reference Treasury Dealer
         Quotations for such redemption date, after excluding the highest and
         lowest of such Reference Treasury Dealer Quotations, or (2) if the
         Trustee obtains fewer than four such Reference Treasury Dealer
         Quotations, the average of all such quotations.

                  "Independent Investment Banker" means one of the Reference
         Treasury Dealers appointed by the Trustee after consultation with the
         Company.

                  "Reference Treasury Dealer" means each of - and - plus three
         others or their affiliates which are primary U.S. Government securities
         dealers appointed by the Trustee after consultation with the Company
         and their respective successors; provided, however, that if any of the
         foregoing or their affiliates shall cease to be a primary U.S.
         Government securities dealer in The City of New York (a "Primary
         Treasury Dealer"), the Company shall substitute therefor another
         Primary Treasury Dealer, if one is available.

                  "Reference Treasury Dealer Quotations" means, with respect to
         each Reference Treasury Dealer and any redemption date, the average, as
         determined by the Trustee, of the bid and asked prices for the
         Comparable Treasury Issue (expressed in each case as a percentage of
         its principal amount) quoted in writing to the Trustee by such
         Reference Treasury Dealer at 3:30 p.m. New York time on the third
         business day preceding such redemption date.

                  "Treasury Rate" means, with respect to any redemption date,
         the rate per annum equal to the semi-annual equivalent yield to
         maturity or interpolated (on a day count basis) of the Comparable
         Treasury Issue, assuming a price for the Comparable Treasury Issue
         (expressed as a percentage of its principal amount) equal to the
         Comparable Treasury Price for such redemption date.

         The Form of Debt Security, as amended, is attached hereto as
Schedule I.


<PAGE>

                                  ARTICLE III

                                  MISCELLANEOUS

                  SECTION 3.01   EFFECTIVENESS.

         This Fourth Supplemental Indenture shall become effective upon its
execution and delivery by the Company and the Trustee. Upon the execution and
delivery of this Fourth Supplemental Indenture by the Company and the Trustee,
the Indenture shall be supplemented in accordance herewith, and this Fourth
Supplemental Indenture shall form a part of the Indenture, for all purposes, and
the rights of every Holder of Debt Securities shall hereafter be determined,
exercised and enforced subject in all respects to the terms of this Fourth
Supplemental Indenture, and all the terms and conditions of the Indenture as
amended or supplemented by this Fourth Supplemental Indenture for any and all
purposes.

                  SECTION 3.02   INDENTURE REMAINS IN FULL FORCE AND EFFECT.

         Except as supplemented hereby, all provisions in the Indenture shall
remain in full force and effect.

                  SECTION 3.03   INDENTURE AND FOURTH SUPPLEMENTAL INDENTURE
                                 CONSTRUED TOGETHER.

         This Fourth Supplemental Indenture is an indenture supplemental to the
Indenture, and the Indenture and this Fourth Supplemental Indenture shall
henceforth be read and construed together.

                  SECTION 3.04   CONFIRMATION AND PRESERVATION OF INDENTURE.

         The Indenture as supplemented by this Fourth Supplemental Indenture is
in all respects confirmed and preserved.

                  SECTION 3.05   CONFLICT WITH TRUST INDENTURE ACT.

         If any provision of this Fourth Supplemental Indenture limits,
qualifies or conflicts with any provision of the Trust Indenture Act of 1939, as
amended (the "Trust Indenture Act"), that is required under the Trust Indenture
Act to be part of and govern any provision of this Fourth Supplemental
Indenture, the provision of the Trust Indenture Act shall control. If any
provision of this Fourth Supplemental Indenture modifies or excludes any
provision of the Trust Indenture Act that may be so modified or excluded, the
provision of the Trust Indenture Act shall be deemed to apply to the Trust
Indenture as so modified or to be excluded by this Fourth Supplemental
Indenture, as the case may be.

                  SECTION 3.06   SEVERABILITY.

         In case any provision in this Fourth Supplemental Indenture shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

                  SECTION 3.07   HEADINGS.

         The Article and Section headings of this Fourth Supplemental Indenture
have been inserted for convenience of reference only, are not to be considered a
part of this Fourth Supplemental Indenture and shall in no way modify or
restrict any of the terms or provisions hereof.

                  SECTION 3.08   BENEFITS OF SUPPLEMENTAL INDENTURE, ETC.

         Nothing in this Fourth Supplemental Indenture or the Debt Securities,
express or implied, shall give to any person, other than the parties hereto and
thereto and their successors hereunder and thereunder and the Holders of the
Debt Securities, any benefit of any legal or equitable right, remedy or claim
under the Indenture, this Fourth Supplemental Indenture or the Debt Securities.

<PAGE>

                  SECTION 3.09   SUCCESSORS.

         All agreements of the Company in this Fourth Supplemental Indenture
shall bind its successors. All agreements of the Trustee in this Fourth
Supplemental Indenture shall bind its successors.

                  SECTION 3.10   TRUSTEE NOT RESPONSIBLE FOR RECITALS.

         The recitals contained herein shall be taken as the statements of the
Company, and the Trustee assumes no responsibility for their correctness. The
Trustee shall not be liable or responsible for the validity or sufficiency of
this Fourth Supplemental Indenture or the due authorization of this Fourth
Supplemental Indenture by the Company.

                  SECTION 3.11   CERTAIN DUTIES AND RESPONSIBILITIES OF THE
                                 TRUSTEE.

         In entering into this Fourth Supplemental Indenture, the Trustee shall
be entitled to the benefit of every provision of the Indenture relating to the
conduct of, affecting the liability of or affording protection to, the Trustee,
whether or not elsewhere herein so provided.

                  SECTION 3.12   GOVERNING LAW.

         THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THIS FOURTH SUPPLEMENTAL
INDENTURE WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS.

                  SECTION 3.13   ACCEPTANCE OF TRUSTS

         The Trustee hereby accepts the trusts in this Fourth Supplemental
Indenture declared and provided for and agrees to perform the same upon the
terms and conditions and subject to the provisions set forth in the Indenture as
supplemented by this Fourth Supplemental Indenture.

                  SECTION 3.14   COUNTERPART ORIGINALS.

         The parties may sign any number of copies of this Fourth Supplemental
Indenture. Each signed copy shall be an original, but all of them together
represent the same agreement.


<PAGE>



                  IN WITNESS WHEREOF, the parties hereto have caused this Fourth
Supplemental Indenture to be duly executed, all as of the date and year first
above written.

                                       METHANEX CORPORATION,
                                       as Issuer

                                       By:
                                            ------------------------------------
                                            Name:
                                            Title:


                                       THE BANK OF NEW YORK,
                                       as Trustee

                                       By:
                                            ------------------------------------
                                            Name:
                                            Title:

<PAGE>

                                                                      SCHEDULE I

                          [FORM OF FACE DEBT SECURITY]
                         [GLOBAL DEBT SECURITIES LEGEND]

                  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"),
NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL IN AS MUCH AS
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

                  TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR
THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL
SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS
SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

Number [-]                                                      US$ [-]

                             -% Debt Security Due -

                  METHANEX CORPORATION, a Canadian corporation, promises to pay
to [-] or registered assigns, the principal sum of [-] Dollars on [-], [-].

                                                                CUSIP [-]

                                                                 SEE REVERSE FOR
                                                             CERTAIN DEFINITIONS

                  Interest Payment Dates: [-] And [-]

                  Record Dates: [-] and [-]


<PAGE>


                  Additional provisions of this Debt Security are set forth on
the other side of this Debt Security.

Dated:


                                       METHANEX CORPORATION

                                       By

                                       -----------------------------------------
                                            Corporate Secretary

                                       -----------------------------------------
                                            Senior Vice President Finance

TRUSTEE'S CERTIFICATE OF
     AUTHENTICATION

THE BANK OF NEW YORK

     as Trustee, certifies                                   [Seal]
     that this is one of the
     Debt Securities referred
     to in the Indenture.


By:
   -----------------------------------------
         Authorized Signatory



                                      2
<PAGE>


                     [FORM OF REVERSE SIDE OF DEBT SECURITY]

                              METHANEX CORPORATION

                          [-]% DEBT SECURITY DUE 20[-]


1.       Interest.

                  Methanex Corporation, a Canadian corporation (such
corporation, and its successors and assigns under the Indenture hereinafter
referred to, being herein called the "Company"), promises to pay interest on the
principal amount of this Debt Security at the rate per annum shown above. The
Company will pay interest semiannually on [-] and [-] of each year. Interest on
the Debt Securities will accrue from the most recent date to which interest has
been paid or, if no interest has been paid, from -, -. Interest will be computed
on the basis of a 360-day year of twelve 30-day months. The Company shall pay
interest on overdue principal at the rate borne by the Debt Securities plus 1%
per annum, and it shall pay interest on overdue installments of interest at the
same rate to the extent lawful.

2.       Method of Payment.

                  The Company will pay interest on the Debt Securities (except
defaulted interest) to the persons who are registered holders of Debt Securities
at the close of business on the [-] or [-] next preceding the interest payment
date even if Debt Securities are cancelled after the record date and on or
before such interest payment date. Holders must surrender Debt Securities to a
Paying Agent to collect principal payments. The Company will pay principal and
interest in money of the United States that at the time of payment is legal
tender for payment of public and private debts. Payments in respect of the Debt
Securities represented by a Global Security (including principal, premium and
interest) will be made by wire transfer of immediately available funds to the
account of The Depository Trust Company as specified by The Depository Trust
Company. The Company will make all payments of interest in respect of the
definitive Debt Securities, by mailing a check to the registered address of each
Holder thereof.

3.       Paying Agent and Registrar.

                  Initially, The Bank of New York, a New York corporation
authorized to do a banking business ("Trustee"), will act as Paying Agent and
Registrar. The Company may appoint and change any Paying Agent, Registrar or
co-registrar without notice. The Company or any of its domestically incorporated
wholly owned Subsidiaries may act as Paying Agent, Registrar or co-registrar.

4.       Indenture.

                  The Company issued the Debt Securities under an Indenture
dated as of July 20, 1995 ("Original Indenture"), as supplemented by a First
Supplemental Indenture, dated June 18, 2002, a Second Supplemental Indenture,
dated June 19, 2002 ("Second Supplemental Indenture"), a Third Supplemental
Indenture, dated December 9, 2003 ("Third Supplemental Indenture") and a Fourth
Supplemental Indenture dated August -, 2005 ("Fourth Supplemental Indenture",
together with the Original Indenture, Second Supplemental Indenture and Third
Supplemental Indenture, the "Indenture"), between the Company and the Trustee.
The terms of the Debt Securities include those stated in the Indenture and those
made part of the Indenture by reference to the Trust Indenture Act of 1939 (15
U.S.C. Section 77aaa-77bbbb) as in effect on the date of the Indenture (the
"Act"). Terms defined in the Indenture and not defined herein have the meanings
ascribed thereto in the Indenture. The Debt Securities are subject to all such
terms, and Debt Securityholders are referred to the Indenture and the Act for a
statement of those terms.

                  The Debt Securities are general unsecured obligations of the
Company unlimited in amount (subject to Section 2.07 of the Indenture). The
Indenture imposes certain limitations on the creation of Liens by the Company
and the Subsidiaries, sale and leaseback transactions, transactions with respect
to Unrestricted


                                       3
<PAGE>


Subsidiaries, and the ability of the Company or a Restricted Subsidiary that is
Guarantor to merge with or into another entity. The limitations are subject to a
number of important qualifications and exceptions.

5.       Optional Redemption.

                  The Debt Securities will be redeemable as a whole or in part,
         at our option at any time, at a redemption price equal to the greater
         of (1) 100% of the principal amount of the Debt Securities and (2) the
         sum of the present values of the remaining scheduled payments of
         principal and interest thereon (exclusive of interest accrued to the
         date of redemption) discounted to the redemption date on a semi-annual
         basis (assuming a 360-day year consisting of twelve 30-day months) at
         the Treasury Rate plus basis points, plus in each case accrued interest
         thereon to the date of redemption.

                  "Comparable Treasury Issue" means the United States Treasury
         security or securities selected by an Independent Investment Banker as
         having an actual or interpolated maturity comparable to the remaining
         term of the Debt Securities to be redeemed that would be utilized, at
         the time of selection and in accordance with customary financial
         practice, in pricing new issues of corporate debt securities of a
         comparable maturity to the remaining term of such Debt Securities.

                  "Comparable Treasury Price" means, with respect to any
         redemption date, (1) the average of the Reference Treasury Dealer
         Quotations for such redemption date, after excluding the highest and
         lowest of such Reference Treasury Dealer Quotations, or (2) if the
         Trustee obtains fewer than four such Reference Treasury Dealer
         Quotations, the average of all such quotations.

                  "Independent Investment Banker" means one of the Reference
         Treasury Dealers appointed by the Trustee after consultation with the
         Company.

                  "Reference Treasury Dealer" means each of - and - plus three
         others or their affiliates which are primary U.S. Government securities
         dealers appointed by the Trustee after consultation with the Company
         and their respective successors; provided, however, that if any of the
         foregoing or their affiliates shall cease to be a primary U.S.
         Government securities dealer in The City of New York (a "Primary
         Treasury Dealer"), the Company shall substitute therefor another
         Primary Treasury Dealer, if one is available.

                  "Reference Treasury Dealer Quotations" means, with respect to
         each Reference Treasury Dealer and any redemption date, the average, as
         determined by the Trustee, of the bid and asked prices for the
         Comparable Treasury Issue (expressed in each case as a percentage of
         its principal amount) quoted in writing to the Trustee by such
         Reference Treasury Dealer at 3:30 p.m. New York time on the third
         business day preceding such redemption date.

                  "Treasury Rate" means, with respect to any redemption date,
         the rate per annum equal to the semi-annual equivalent yield to
         maturity or interpolated (on a day count basis) of the Comparable
         Treasury Issue, assuming a price for the Comparable Treasury Issue
         (expressed as a percentage of its principal amount) equal to the
         Comparable Treasury Price for such redemption date.

6.       Special Tax Redemption.

                  If, as a result of any change in, or amendment to, the laws
(including any regulations promulgated thereunder) of Canada (or any political
subdivision or taxing authority thereof or therein), or any change in, or
amendment to, any official position regarding the application or interpretation
of such laws or regulations, which change or amendment is announced or becomes
effective on or after [-], [-] the Company has become or would become obligated
to pay, on the next date on which any amount would be payable with respect to
the Debt Securities, any Additional Amounts in accordance with Section 4.07 of
the Indenture, then the Company may, at its option, redeem the Debt Securities,
as a whole but not in part, at a redemption price equal to 100% of their
principal amount, plus accrued and unpaid interest (if any) to the redemption
date; provided that the Company shall have determined, in its business judgment,
that the obligation to pay such Additional Amounts cannot be avoided by the use
of reasonable measures available to the Company, not including substitution of
the obligor under the Debt Securities.


                                       4
<PAGE>

7.       Notice of Redemption.

                  Notice of redemption will be mailed not less than 30 days but
not more than 60 days before the redemption date to each Holder of Debt
Securities to be redeemed at his registered address. Debt Securities in
denominations larger than U.S.$1,000 may be redeemed in part but only in whole
multiples of U.S.$1,000. If money sufficient to pay the redemption price of and
accrued and unpaid interest (if any) on all Debt Securities (or portions
thereof) to be redeemed on the redemption date is deposited with the Paying
Agent on or before the redemption date and certain other conditions are
satisfied, on and after such date interest ceases to accrue on such Debt
Securities (or such portions thereof) called for redemption.

8.       Denominations; Transfer; Exchange.

                  The Debt Securities are in registered form without coupons in
denominations of U.S.$1,000 and whole multiples of U.S.$1,000. A Holder may
transfer or exchange Debt Securities in accordance with the Indenture. The
Registrar may require a Holder, among other things, to furnish appropriate
endorsements or transfer documents and to pay any taxes and fees required by law
or permitted by the Indenture. The Registrar need not register the transfer of
or exchange any Debt Securities selected for redemption (except, in the case of
a Debt Security to be redeemed in part, the portion of the Debt Security not to
be redeemed) or any Debt Securities for a period of 15 days before a selection
of Debt Securities to be redeemed or 15 days before an interest payment date.

9.       Persons Deemed Owners.

                  The registered holder of this Debt Security may be treated as
the owner of it for all purposes.

10.      Unclaimed Money.

                  If money for the payment of principal or interest remains
unclaimed for two years, the Trustee or Paying Agent shall pay the money back to
the Company at its request unless an abandoned property law designates another
person. After any such payment, Holders entitled to the money must look only to
the Company and not to the Trustee for payment.

11.      Defeasance.

                  Subject to certain conditions, the Company at any time may
terminate some or all of its and each Guarantor's obligations under the Debt
Securities and the Indenture if the Company deposits with the Trustee money or
U.S. Government Obligations for the payment of principal and interest on the
Debt Securities to redemption or maturity, as the case may be.

12.      Amendment, Waiver.

                  Subject to certain exceptions set forth in the Indenture, (i)
the Indenture or the Debt Securities may be amended with respect to the Debt
Securities of a series with the consent of the Holders of a least a majority in
principal amount outstanding of the Debt Securities of such series and (ii) any
default or noncompliance with any provision may be waived with the written
consent of the Holders of a majority in principal amount outstanding of the Debt
Securities of such series. Subject to certain exceptions set forth in the
Indenture, without the consent of any Debt Securityholder, the Company and the
Trustee may amend the Indenture or the Debt Securities of a series to cure any
ambiguity, omission, defect or inconsistency, or to comply with Article X of the
Original Indenture, or to add guarantees with respect to the Debt Securities of
such series or to secure the Debt Securities of such series, or to add
additional covenants or to surrender rights and powers conferred on the Company
or the Subsidiaries, or to comply with any requirement of the United States
Securities and Exchange Commission in connection with the qualification of the
Indenture under the Trust Indenture Act, or to make any change that does not
adversely affect the rights of any Holder of Debt Securities of such series in
any material respect.


                                       5
<PAGE>

13.      Defaults and Remedies.

                  Under the Indenture, Events of Default with respect to a
series of Debt Securities include (i) default for 30 days in payment of interest
on the Debt Securities of such series (including any Additional Amounts when
due); (ii) default in payment of principal on the Debt Securities of such series
at maturity, upon redemption, upon declaration or otherwise, or failure by the
Company to redeem or purchase Debt Securities of such series when required
pursuant to the Indenture or the Debt Securities of such series; (iii) failure
by the Company or a Restricted Subsidiary to comply with other agreements in the
Indenture or the Debt Securities of such series, in certain cases subject to
notice and lapse of time; (iv) certain accelerations (including failure to pay
within any grace period after final maturity) of other Debt of the Company or a
Restricted Subsidiary if the amount accelerated (or so unpaid) exceeds
U.S.$10,000,000; (v) certain events of bankruptcy or insolvency with respect to
the Company or a Significant Subsidiary; and (vi) except as otherwise provided
in the Indenture, any Guarantee ceasing to be in full force and effect, or being
declared by a court of competent jurisdiction or governmental authority to be
invalid or unenforceable. If an Event of Default with respect to a series of
Debt Securities occurs and is continuing, the Trustee or the Holders of at least
25% in principal amount of the Outstanding Debt Securities of such series may
declare all the Debt Securities of such series to be due and payable
immediately. Certain events of bankruptcy or insolvency are Events of Default
that will result in the Debt Securities of a series being due and payable
immediately upon the occurrence of such Events of Default.

                  Holders of Debt Securities may not enforce the Indenture or
the Debt Securities except as provided in the Indenture. The Trustee may refuse
to enforce the Indenture or the Debt Securities unless it receives reasonable
indemnity or security. Subject to certain limitations, Holders of a majority in
principal amount of the Outstanding Debt Securities may direct the Trustee in
its exercise of any trust or power. The Trustee may withhold from Holders of
Debt Securities notice of any continuing Default (except a Default in payment of
principal or interest) if it determines that withholding notice is in their
interest.

14.      Trustee Dealings with the Company.

                  Subject to certain limitations imposed by the Trust Indenture
Act, the Trustee under the Indenture, in its individual or any other capacity,
may become the owner or pledgee of Debt Securities and may otherwise deal with
and collect obligations owed to it by the Company or its affiliates and may
otherwise deal with the Company or its affiliates with the same rights it would
have if it were not Trustee.

15.      Guarantees.

                  The Company has covenanted pursuant to the Indenture, subject
to certain exceptions, to cause any Restricted Subsidiary that Incurs
Indebtedness to execute and deliver to the Trustee a Guarantee Agreement
pursuant to which such Restricted Subsidiary will guarantee this Debt Security
on the same terms and conditions as those set forth in Exhibit B to the
Indenture.

16.      No Recourse Against Others.

                  A director, officer, employee or stockholder, as such, of the
Company or the Trustee shall not have any liability for any obligations of the
Company under the Debt Securities or the Indenture or for any claim based on, in
respect of or by reason of such obligations or their creation. By accepting a
Debt Security, each Holder of a Debt Security waives and releases all such
liability. The waiver and release are part of the consideration for the issue of
the Debt Securities.

17.      Authentication.

                  This Debt Security shall not be valid until an authorized
signatory of the Trustee (or an authenticating agent) manually signs the
certificate of authentication on the other side of this Debt Security.


                                       6
<PAGE>

18.      Abbreviations.

                  Customary abbreviations may be used in the name of a Holder of
a Debt Security or an assignee, such as TEN COM (=tenants in common), TEN ENT
(=tenants by the entireties), JT TEN (=joint tenants with rights of survivorship
and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gifts to
Minors Act).

19.      CUSIP Numbers.

                  Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures, the Company has caused CUSIP numbers
to be printed on the Debt Securities. No representation is made as to the
accuracy of such numbers either as printed on the Debt Securities or as
contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

20.      Governing Law.

                  EACH DEBT SECURITY AND EACH COUPON SHALL BE DEEMED TO BE NEW
YORK CONTRACTS, AND FOR ALL PURPOSES SHALL BE CONSTRUED IN ACCORDANCE WITH THE
LAWS OF SAID STATE (WITHOUT REFERENCE TO PRINCIPLES OF CONFLICT OF LAWS).

                  THE COMPANY WILL FURNISH TO ANY HOLDER OF A DEBT SECURITY UPON
WRITTEN REQUEST AND WITHOUT CHARGE TO THE HOLDER OF A DEBT SECURITY A COPY OF
THE INDENTURE WHICH HAS IN IT THE TEXT OF THIS DEBT SECURITY IN LARGE TYPE.
REQUESTS MAY BE MADE TO:

                  METHANEX CORPORATION
                  1800 WATERFRONT CENTER
                  200 BURRARD STREET
                  VANCOUVER, B.C. V6C 3M1



                                       7
<PAGE>


- --------------------------------------------------------------------------------


                                ASSIGNMENT FORM

         To assign this Debt Security, fill in the form below:

         I or we assign and transfer this Debt Security to

                  (Print or type assignee's name, address and zip code)



                  (Insert assignee's soc. sec. or tax I.D. No.)


         and irrevocably appoint                                        agent to
         transfer this Debt Security on the books of the Company. The agent may
         substitute another to act for him.


- --------------------------------------------------------------------------------


Date:                                  Your Signature:
      ------------------------                        --------------------------
                                                      (Sign exactly as your name
                                                      appears on the other side
                                                      of this Debt Security)



Signature Guarantee:
                     -----------------------------------------------------------
                           Participant in a recognized Signature Guarantee
                           Medallion Program (or other signature guarantor
                           acceptable to the Trustee)



                                       8
<PAGE>


                                    SCHEDULE

                       OPTION OF HOLDER TO ELECT PURCHASE

                  If you want to elect to have this Debt Security purchased by
the Company pursuant to Section 2.01 of the Second Supplemental Indenture, check
this box: [ ]

                  If you want to elect to have only part of this Debt Security
purchased by the Company pursuant to Section 2.01 of the Second Supplemental
Indenture, state the amount you elect to have purchased:


                         ------------------------------


Date:
      ---------------------------


                                       Your Signature:
                                                       -------------------------
                                                       (Sign exactly as your
                                                       name appears on the face
                                                       of this Debt Security)

                                       Tax Identification No.:
                                                               -----------------


Signature Guarantee*:
                     --------------------------------

*    Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).



                                       9
<PAGE>


                   [TO BE ATTACHED TO GLOBAL DEBT SECURITIES]

           SCHEDULE OF INCREASES OR DECREASES IN GLOBAL DEBT SECURITY


                 The following increases or decreases in this Global Debt
Security have been made:

<Table>
<Caption>
|---------------------|---------------------|--------------------|----------------------|---------------------|
|                     |                     | Amount of increase | Principal Amount of  |                     |
|                     |  Amount of decrease |    in Principal    |   this Global Debt   |                     |
|                     | in Principal Amount |   Amount of this   |  Security following  |    Signature of     |
|                     | of this Global Debt |     Global Debt    |   such decrease or   |  authorized officer |
|  Date of Exchange   |       Security      |      Security      |       increase       |    of Trustee       |
<S>                   <C>                   <C>                  <C>                    <C>                   |
|---------------------|---------------------|--------------------|----------------------|---------------------|
|                     |                     |                    |                      |                     |
|---------------------| --------------------|--------------------|----------------------|---------------------|
|                     |                     |                    |                      |                     |
|---------------------| --------------------|--------------------|----------------------|---------------------|
|                     |                     |                    |                      |                     |
|---------------------| --------------------|--------------------|----------------------|---------------------|
|                     |                     |                    |                      |                     |
|---------------------| --------------------|--------------------|----------------------|---------------------|
|                     |                     |                    |                      |                     |
|---------------------| --------------------|--------------------|----------------------|---------------------|
|                     |                     |                    |                      |                     |
|---------------------| --------------------|--------------------|----------------------|---------------------|
|                     |                     |                    |                      |                     |
|---------------------| --------------------|--------------------|----------------------|---------------------|
|                     |                     |                    |                      |                     |
|---------------------| --------------------|--------------------|----------------------|---------------------|
|                     |                     |                    |                      |                     |
|---------------------| --------------------|--------------------|----------------------|---------------------|
|                     |                     |                    |                      |                     |
|---------------------| --------------------|--------------------|----------------------|---------------------|
|                     |                     |                    |                      |                     |
|---------------------| --------------------|--------------------|----------------------|---------------------|

</Table>




                                       10
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