-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 S5tmuk4/4mFf7NC6rBigdO3uY3sSLJbBrXy09o1VNqT/HTLlvt/TDQoN3FYPce9u
 +pqeJMO4me4fXfzbl+EvGw==

<SEC-DOCUMENT>0000945234-08-000134.txt : 20080328
<SEC-HEADER>0000945234-08-000134.hdr.sgml : 20080328
<ACCEPTANCE-DATETIME>20080328144503
ACCESSION NUMBER:		0000945234-08-000134
CONFORMED SUBMISSION TYPE:	40-F
PUBLIC DOCUMENT COUNT:		17
CONFORMED PERIOD OF REPORT:	20071231
FILED AS OF DATE:		20080328
DATE AS OF CHANGE:		20080328

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:		40-F
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-20115
		FILM NUMBER:		08718652

	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>40-F
<SEQUENCE>1
<FILENAME>o38546e40vf.htm
<DESCRIPTION>FORM 40-F
<TEXT>
<HTML>
<HEAD>
<TITLE>Annual Report 12/31/2007</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>United States<BR>
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: 18pt; margin-top: 12pt"><B>FORM 40-F</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">(Check One:)
</DIV>

<DIV align="center">
<TABLE style="font-size: 12pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="95%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT face="Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">REGISTRATION STATEMENT PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE<BR>
ACT OF 1934</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT face="Wingdings">&#254;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">ANNUAL REPORT PURSUANT TO SECTION 13(a) OR 15(d) OF THE SECURITIES EXCHANGE<BR>
ACT OF 1934</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 7pt; margin-top: 12pt">&nbsp;
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">For the fiscal year ended December&nbsp;31, 2007
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Commission File Number 0-20115</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 21pt"><B>METHANEX CORPORATION</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of Registrant as specified in its charter)</DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 16pt">CANADA<BR>
(Province or other jurisdiction of incorporation or organization)
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">2869<BR>
(Primary Standard Industrial <BR>
Classification Code (if applicable))
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N.A.<BR>
(I.R.S. Employer Identification<BR>
Number (if applicable))</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 16pt">1800 Waterfront Centre, 200 Burrard Street<BR>
Vancouver, British Columbia, Canada V6C 3M1<BR>
telephone number: (604)&nbsp;661-2600<BR>
(Address and telephone number of Registrant&#146;s principal executive office)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 16pt">CT Corporation System<BR>
1633 Broadway, New York, New York 10019<BR>
telephone number: (202)&nbsp;664-1666<BR>
(name, address (including zip code)and telephone number<BR>
(including area code) of agent for service in the United States)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Securities registered or to be registered pursuant to Section 12(b) of the Act.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="80%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Title of each class</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Name of each exchange on which registered</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">Common Shares</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Nasdaq Global Market</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Securities registered or to be registered pursuant to Section 12(g) of the Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">None
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Securities for which there is a reporting obligation pursuant to Section&nbsp;15(d) of the Act.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><U>Title of each class</U>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 9pt">8.75% Senior Notes due August&nbsp;15, 2012<BR>
6.00% Senior Notes due August&nbsp;15, 2015
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">For annual reports, indicate by check mark the information filed with this Form:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="80%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:15px; text-indent:-15px"><FONT face="Wingdings">&#254;</FONT>&nbsp;&nbsp;&nbsp;Annual Information Form</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT face="Wingdings">&#254;</FONT>&nbsp;&nbsp;&nbsp;Audited Annual Financial Statements</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate number of outstanding shares of each of the issuer&#146;s classes of capital or common
stock as of the close of the period covered by the annual report.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt">98,310,254 Common Shares were outstanding as of December&nbsp;31, 2007
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the registrant by filing the information contained in this Form
is also thereby furnishing information to the Commission pursuant to Rule&nbsp;12g3-2(b) under the
Securities Exchange Act of 1934 (the &#147;Exchange Act&#148;). If &#147;Yes&#148; is marked, indicate the file number
assigned to the Registrant in connection with such Rule.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Yes&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;82-<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;&nbsp;
<FONT face="Wingdings">&#254;</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the Registrant (1)&nbsp;has filed all reports required to be filed
by Section&nbsp;13 or 15(d) of the Exchange Act during the preceding 12&nbsp;months (or for such shorter
period that the Registrant was required to file such reports) and (2)&nbsp;has been subject to such
filing requirements for the past 90&nbsp;days.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Yes&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#254;</FONT></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>CONTROLS AND PROCEDURES</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disclosure controls and procedures are defined by the Securities and Exchange Commission as those
controls and procedures that are designed to ensure that information required to be disclosed in
the Registrant&#146;s filings under the Securities Exchange Act of 1934 is recorded, processed,
summarized and reported within the time periods specified in the Securities and Exchange Commission
rules and forms. The Registrant&#146;s Chief Executive Officer and Chief Financial Officer have
evaluated the Registrant&#146;s disclosure controls and procedures as of December&nbsp;31, 2007 and have
determined that such disclosure controls and procedures are effective.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Internal control over financial reporting is a process designed by, or under the supervision of,
senior management, and effected by the Board of Directors, management and other personnel, to
provide reasonable assurance regarding the reliability of financial reporting and preparation of
the Company&#146;s consolidated financial statements in accordance with Canadian generally accepted
accounting principles (GAAP), including a reconciliation to United States GAAP. These controls
include policies and procedures that:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>pertain to the maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the Company;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with GAAP, and that receipts and
expenditures are being made only in accordance with authorizations of management and
directors of the Company; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of the Company&#146;s assets that could have a material effect
on the annual financial statements or interim financial statements.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">There have been no changes during the year ended December&nbsp;31, 2007 to internal control over
financial reporting that has materially affected, or is reasonably likely to materially affect,
internal controls over financial reporting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The design of any system of controls and procedures is based in part upon certain assumptions about
the likelihood of future events. There can be no assurance that any design will succeed in
achieving its stated goals under all potential future conditions, regardless of how remote.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>INTERNAL CONTROL OVER FINANCIAL REPORTING</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Management&#146;s Report on Internal Control over Financial Reporting is provided in Management&#146;s
Discussion and Analysis in Exhibit&nbsp;2.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>AUDIT COMMITTEE FINANCIAL EXPERT</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Registrant&#146;s Board of Directors has determined that it has at least one audit committee
financial expert serving on its audit committee. Mr.&nbsp;A. Terence Poole has been determined to be
such audit committee financial expert and is independent, as that term is defined by Nasdaq&#146;s
corporate governance standards applicable to the Registrant. The Commission has indicated that the
designation of Mr.&nbsp;Poole as an audit committee financial expert does not make Mr.&nbsp;Poole an &#147;expert&#148;
for any other purpose, impose any duties, obligations or liability on Mr.&nbsp;Poole that are greater
than those imposed on members of the audit committee and board of directors who do not carry this
designation or affect the duties, obligations or liability of any other member of the audit
committee.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>CODE OF ETHICS</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Registrant has adopted a code of ethics that applies to directors, officers and employees
including the Registrant&#146;s principal executive officer, principal financial officer and principal
accounting officer. A copy of the Registrant&#146;s code, entitled &#147;Code of Business Conduct&#148;, can be
found on the Registrant&#146;s website at <U>www.methanex.com</U>. No waivers from or material amendments to
the provisions of the Code were made in 2007.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>PRINCIPAL ACCOUNTANT FEES AND SERVICES </U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;KPMG LLP, Chartered Accountants, Vancouver, are the independent auditors of the Company and
the holders of the Company&#146;s common shares have resolved to have the directors of the Company
determine the auditor&#146;s remuneration.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Pre-approval policies and procedures</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s Audit Committee annually reviews and approves the terms and scope of the
external auditors&#146; engagement. The Audit Committee oversees the Audit and Non-Audit Pre-Approval
Policy which sets forth the procedures and the conditions pursuant to which permissible services
proposed to be performed by KPMG LLP, the Company&#146;s external auditors, are pre-approved. The Audit
Committee has delegated to the Chairman of the Audit Committee pre-approval authority for any
services not previously approved by the Audit Committee. All such services approved by the Chairman
of the Audit Committee are subsequently reviewed by the Audit Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All non-audit service engagements, regardless of the cost estimate, are required to be
coordinated and approved by the Chief Financial Officer to further ensure that adherence to this
policy is monitored.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Fees to KPMG LLP during the years ended December&nbsp;31, 2007 and December&nbsp;31, 2006 were as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="75%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>US$000&#146;s</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Audit Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,810</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,654</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Audit-Related Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tax Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">393</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">397</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">All Other Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,245</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,197</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The nature of each category of fees is described below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Audit Fees:</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Audit fees were paid for professional services rendered by the external auditors for the audit
of the Company&#146;s consolidated financial statements; statutory audits of the financial statements of
the Company&#146;s subsidiaries; quarterly reviews of the Company&#146;s financial statements; consultations
as to the accounting or disclosure treatment of transactions reflected in the
financial statements; and services associated with registration statements, prospectuses,
periodic reports and other documents filed with securities regulators.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Audit fees paid in 2007 are in respect of an integrated audit performed by KPMG LLP. The
integrated audit encompasses an opinion on the fairness of presentation of the Company&#146;s financial
statements as well as an opinion on the effectiveness of the Company&#146;s internal controls over
financial reporting.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Audit-Related Fees:</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Audit-related fees were paid for professional services rendered by the auditors for financial
audits of employee benefit plans; procedures and audit or attest services not required by statute
or regulation and consultations as to the accounting or disclosure treatment of other transactions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Tax Fees:</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Tax fees were paid for professional services rendered for tax compliance, tax advice and tax
planning. These services consisted of: tax compliance including the review of tax returns;
assistance in completing routine tax schedules and calculations; and tax planning and advisory
services relating to common forms of domestic and international taxation.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>OFF-BALANCE SHEET ARRANGEMENTS</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disclosure of off-balance sheet arrangements is made on page 26 of the Registrant&#146;s
&#147;Management&#146;s Discussion and Analysis&#148; for the year ended December&nbsp;31, 2007, filed as Exhibit&nbsp;No.&nbsp;2
to this report.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tabular disclosure of contractual obligations is made on page 23 of the Registrant&#146;s
&#147;Management&#146;s Discussion and Analysis&#148; for the year ended December&nbsp;31, 2007, filed as Exhibit&nbsp;No.&nbsp;2
to this report.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>IDENTIFICATION OF THE AUDIT COMMITTEE</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Registrant&#146;s audit committee is comprised of the following directors: A. Terence Poole
(chair), Phillip Cook, John Reid, Janice Rennie, and Graham Sweeney.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>UNDERTAKING</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&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 in relation to which the
obligation to file an annual report on Form 40-F arises, or transactions in the said securities.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>CONSENT TO SERVICE OF PROCESS</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A Form F-X signed by the Registrant and the Registrants&#146; agents for service of process with
respect to the Common Shares was filed with the Commission together with the Form 40-F of the
Registrant on June&nbsp;16, 1995; with respect to the 8.75% Senior Notes due August&nbsp;15, 2012 was filed
with the Commission together with the Form F-9 of the Registrant on May&nbsp;31, 2002, and; with respect
to the 6.0% Senior Notes due August&nbsp;15, 2015 was filed with the Commission together with the Form
F-9 of the Registrant on July&nbsp;21, 2005.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>SIGNATURES</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant certifies
that it meets all of the requirements for filing on Form 40-F, and has duly caused this annual
report to be signed on its behalf by the undersigned, thereto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;<BR>METHANEX CORPORATION<BR>
&nbsp;<BR>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date:&nbsp;&nbsp;March 28, 2008&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/&nbsp;&nbsp;RANDY MILNER
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Randy Milner&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Senior Vice President,<BR>
General Counsel &#038; Corporate Secretary&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>LIST OF EXHIBITS</B></U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="87%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Exhibit No.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Description</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">1.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Annual Information Form of the Registrant dated March&nbsp;18, 2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Management&#146;s Discussion and Analysis for the Year Ended December&nbsp;31, 2007.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Audited Consolidated Financial Statements of the Registrant for the year ended
December&nbsp;31, 2007 and the Independent Auditor&#146;s Report thereon.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of KPMG LLP dated
March&nbsp;26, 2008 and Report of Independent Accountants.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">31.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certification of President and Chief Executive Officer pursuant to Section&nbsp;302 of
the Sarbanes-Oxley Act of 2002.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">31.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certification of Senior Vice President, Finance and Chief Financial Officer
pursuant to Section&nbsp;302 of the Sarbanes-Oxley Act of 2002.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">32.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certification of President and Chief Executive Officer pursuant to Section&nbsp;906 of
the Sarbanes-Oxley Act of 2002.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">32.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certification of Senior Vice President, Finance and Chief Financial Officer
pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-1
<SEQUENCE>2
<FILENAME>o38546exv1.htm
<DESCRIPTION>EXHIBIT-1
<TEXT>
<HTML>
<HEAD>
<TITLE>Annual Information Form 3/18/2008</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="o38546o3854602.gif" alt="(METHANEX LOGO)">
</DIV>

<DIV style="margin-top: 96pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 18pt">METHANEX CORPORATION</FONT></B>
</DIV>

<DIV style="margin-top: 84pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 18pt">ANNUAL INFORMATION
    FORM</FONT></B>
</DIV>

<DIV style="margin-top: 84pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 18pt">www.methanex.com</FONT></B>
</DIV>

<DIV style="margin-top: 84pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 84pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">March&#160;18, 2008</FONT></B>
</DIV>

<DIV style="margin-top: 36pt; font-size: 1pt">&nbsp;</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

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

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN PAGE WIDTH -->
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS</FONT></B>
</DIV>
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="right" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Page</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#101'>Reference Information</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#102'>Caution Regarding Forward-Looking Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#103'>The Company</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#104'>Business of the Company</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#105'>Development of the Business and Corporate
    Strategy</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#106'>Methanol Industry Information</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#107'>Production</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#108'>Marketing</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#109'>Distribution and Logistics</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#110'>Natural Gas Supply</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#111'>Foreign Operations and Government Regulation</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#112'>Environmental and Social Matters</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#113'>Insurance</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#114'>Competition</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#115'>Employees</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#116'>Risk Factors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#117'>Dividends</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#118'>Capital Structure</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#119'>Ratings</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#120'>Market for Securities</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#121'>Normal Course Issuer Bid</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#122'>Directors and Executive Officers</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#123'>Interest of Management and Others in Material
    Transactions</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#124'>Experts</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#125'>Legal Proceedings</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#126'>Audit Committee Information</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#127'>Transfer Agent and Registrar</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#128'>Controls and Procedures</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#129'>Code of Ethics</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#130'>Additional Information</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#131'>Appendix &#147;A&#148;&#160;&#151; Audit, Finance
    and Risk Committee Mandate</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<DIV style="margin-top: 27pt; font-size: 1pt">&nbsp;</DIV>
<A name='101'>
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">REFERENCE
    INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In this Annual Information Form (&#147;AIF&#148;), a reference
    to the &#147;Company&#148; refers to Methanex Corporation and a
    reference to &#147;Methanex&#148;, &#147;we&#148;,
    &#147;us&#148;, &#147;our&#148; and similar words refers to the
    Company and its subsidiaries or any one of them as the context
    requires and their respective interests in joint ventures and
    partnerships.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company uses the United States dollar as its reporting
    currency. Accordingly, unless otherwise indicated, all dollar
    amounts in this AIF are stated in United States dollars.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In this AIF, unless the context otherwise indicates, all
    references to &#147;methanol&#148; are to chemical-grade
    methanol. Methanol&#146;s chemical formula is
    CH<SUB style="font-size: 85%; vertical-align: text-bottom">3</SUB>OH
    and it is also known as methyl alcohol.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>In this AIF, we incorporate by reference our 2007
    Management&#146;s Discussion and Analysis (&#147;2007
    MD&#038;A&#148;), which contains information required to be
    included in this AIF. The 2007 MD&#038;A is publicly accessible
    and is filed on the SEDAR website at <U>www.sedar.com</U> and on
    the United States Securities and Exchange Commission website at
    <U>www.sec.gov</U>.</B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Approximate conversions of certain units of measurement used in
    this AIF into alternative units of measurement are as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1 tonne of methanol&#160;&#160;=&#160;&#160;332.6 US gallons
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Some of the historical price data and supply and demand
    statistics for methanol and certain other industry data
    contained in this AIF are derived by the Company from recognized
    industry reports regularly published by independent consulting
    and data compilation organizations in the methanol industry,
    including Chemical Market Associates Inc., Jim
    Jordan&#160;&#038; Associates and Tecnon (UK) Ltd. Industry
    publications generally state that the information contained
    therein has been obtained from sources believed to be reliable.
    We have not independently verified any of the data from
    third-party sources nor have we ascertained the underlying
    economic assumptions relied upon in these reports.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Responsible
    Care<SUP style="font-size: 85%; vertical-align: text-top"><SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP></SUP>
    is a registered trademark of the Canadian Chemical
    Producers&#146; Association and is used under license by us.
</DIV>
<A name='102'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CAUTION
    REGARDING FORWARD-LOOKING STATEMENTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Statements made in this document that are based on our current
    objectives, expectations, estimates and projections constitute
    forward-looking statements. These statements include
    forward-looking statements with respect to us and the chemical
    industry. Statements that include the words
    &#147;believes,&#148; &#147;expects,&#148; &#147;may,&#148;
    &#147;will,&#148; &#147;should,&#148; &#147;seeks,&#148;
    &#147;intends,&#148; &#147;plans,&#148; &#147;estimates,&#148;
    &#147;anticipates,&#148; or the negative version of those words
    or other comparable terminology and similar statements of a
    future or forward-looking nature identify forward-looking
    statements. Methanex believes that it has a reasonable basis for
    making such forward-looking statements. Forward-looking
    statements are based on our experience, our perception of
    trends, current conditions and expected future developments as
    well as other factors. Certain material factors or assumptions
    were applied in drawing the conclusions or making the forecasts
    or projections that are included in these forward-looking
    statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Forward-looking statements by their nature, involve risks and
    uncertainties that could cause actual results to differ
    materially from those contemplated by the forward-looking
    statements, including, without limitation, worldwide economic
    conditions; conditions in the methanol and other industries,
    including the supply of methanol; demand for methanol and its
    derivatives; actions of competitors and suppliers; actions of
    governments, including changes in laws or regulations; the
    ability to implement business strategies, pursue business
    opportunities and maintain and enhance our competitive
    advantages; risks attendant with methanol production and
    marketing, including operational disruption; risks attendant
    with carrying out capital expenditure projects, including the
    ability to obtain financing and complete the projects on time
    and on budget; availability and price of natural gas feedstock;
    global energy prices; foreign exchange risks; raw material and
    other production costs; transportation costs; the ability to
    attract and retain qualified personnel; risks associated with
    investments and operations in multiple jurisdictions; and other
    risks discussed under the heading <I>Risk Factors and Risk
    Management</I> in our 2007 MD&#038;A.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Having in mind these and other factors, investors and other
    readers are cautioned not to place undue reliance on
    forward-looking statements. They are not a substitute for the
    exercise of one&#146;s own due diligence and judgment. The
    outcomes anticipated in forward-looking statements may not occur
    and we do not undertake to update forward-looking statements.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->
<A name='103'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THE
    COMPANY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Methanex Corporation was incorporated under the laws of Alberta
    on March&#160;11, 1968 and was continued under the <I>Canada
    Business Corporations Act</I> on March&#160;5, 1992. Its
    registered and head office is located at 1800 Waterfront Centre,
    200 Burrard Street, Vancouver, British Columbia, V6C&#160;3M1
    (telephone:
    <FONT style="white-space: nowrap">604-661-2600).</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following chart includes the principal operating
    subsidiaries and partnerships of the Company as of
    December&#160;31, 2007 and, for each subsidiary or partnership,
    its place of organization and the Company&#146;s percentage of
    voting interests beneficially owned or over which control or
    direction is exercised. The chart also shows our principal
    production facilities and their locations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="o38546o3854632.gif" alt="(CORPORATE CHART)">
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<A name='104'>
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">BUSINESS
    OF THE COMPANY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are the world&#146;s largest supplier of methanol and the
    largest supplier of methanol to the major international markets
    of North America, Asia Pacific and Europe as well as Latin
    America.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">What is
    Methanol?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Methanol is a liquid chemical which has historically been
    produced from natural gas and is increasingly produced from
    coal, particularly in China. Methanol is typically used as a
    chemical feedstock in the manufacture of other products.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Approximately 75% of all methanol is used to produce
    formaldehyde, acetic acid and a variety of other chemicals that
    form the basis of a large number of chemical derivatives for
    which demand is influenced by levels of global economic
    activity. These derivatives are used to manufacture a wide range
    of products, including building materials, foams, resins and
    plastics. The remainder of methanol demand comes from the energy
    sector. Methanol is used to produce methyl tertiary butyl ether
    (MTBE), a gasoline component, and there are growing markets for
    using methanol in energy applications such as dimethyl ether
    (DME), direct blending into gasoline and biodiesel. Due to the
    diversity of the end-products in which methanol is used,
    methanol demand is influenced by a broad range of economic,
    industrial and environmental factors. The global methanol demand
    in 2007 is estimated at approximately 40 million tonnes.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    Operations</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We own and operate methanol production facilities located in
    Chile, Trinidad and New Zealand and we are constructing a new
    facility in Egypt with joint venture partners. Our production
    sites in Chile and Trinidad have an annual production capacity
    of 5.8&#160;million tonnes and represent a substantial
    proportion of our current total annual production capacity. We
    also produce methanol from our flexible production facilities in
    New Zealand.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the methanol we produce, we purchase methanol
    produced by others under methanol offtake contracts and on the
    spot market to meet customer requirements and support our
    marketing efforts. We sell methanol through an extensive global
    marketing and distribution system. This has enabled us to become
    the world&#146;s largest supplier of methanol. Our total sales
    volume in 2007 was 6.6&#160;million tonnes representing
    approximately 17% of estimated global demand for methanol.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a result of our global positioning, including an extensive
    network of storage terminals and expertise in the global
    distribution of methanol, we believe we have a competitive
    advantage as a supplier of methanol to major chemical and
    petrochemical producers for whom quality of service and
    reliability of supply are important. We believe we benefit from
    this competitive advantage through greater security of supply to
    customers as a result of our excellent record of reliability, as
    well as marketing and transportation synergies and an improved
    customer mix.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our operations consist of the production and sale of methanol,
    which constitutes a single operating segment. Revenue, sales
    volumes and production volumes for each of the last two years
    can be found under the heading <I>Financial Highlights</I> in
    our 2007 MD&#038;A.
</DIV>
<A name='105'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DEVELOPMENT
    OF THE BUSINESS AND CORPORATE STRATEGY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Since the early 1990s, we have expanded our global methanol
    production and marketing reach and have carried out a strategy
    that has enabled us to become, we believe, a preferred supplier
    in the industry. As a result of this strategy, we have developed
    a global presence in the methanol industry, allowing us to
    provide reliable, efficient and cost-effective delivery of
    methanol from geographically diverse locations to customers
    around the world.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our primary objective is to create value by maintaining and
    enhancing our leadership in the global production, marketing and
    delivery of methanol to our customers. The key elements of our
    strategy are global leadership, operational excellence and value
    creation.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Global
    Leadership</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are the leading supplier of methanol to the major
    international markets of North America, Asia Pacific and Europe,
    as well as Latin America. Our industry leadership has enabled us
    to play a role in industry pricing through the publication of
    Methanex reference prices in each major market, and most of our
    customer contracts now use Methanex published reference prices
    as the basis for pricing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our expertise in the global distribution of methanol and our
    investments in supply infrastructure enable us to enhance value
    by providing reliable and secure supply to customers. For
    example, during the second half of 2007, the methanol
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    industry experienced a severe supply shortage caused by several
    planned and unplanned supplier outages, including outages at our
    own production facilities in Chile. (Refer to the <I>Natural Gas
    Supply</I> section of this document for more information.) Using
    our flexible global distribution and supply network we were able
    to adjust our operations and meet our commitments to customers
    during this period of severe market tightness.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also continue to actively investigate options to grow
    production capacity over the long term to maintain our
    leadership position in the industry. In May 2007, we completed
    the financing for our new project to construct a
    1.3&#160;million tonne per year methanol facility at Damietta on
    the Mediterranean Sea in Egypt. We are developing the project
    through a joint venture in which we have a 60% interest and
    marketing rights for 100% of the production. We expect this
    facility to begin commercial operations in early 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We permanently closed our 500,000 tonne per year methanol plant
    in Kitimat, British Columbia in 2005 due to high natural gas
    feedstock costs, and we converted the site into a terminal for
    storing and transporting methanol as well as other products. In
    September 2005, we entered into an agreement with EnCana for
    their use of the Kitimat site as a terminal to facilitate the
    importation of condensate to Alberta. This agreement also
    provides EnCana the option to buy from Methanex, and Methanex
    the option to sell to EnCana, the Kitimat site (excluding the
    methanol and ammonia facilities), within the five-year term of
    the agreement. Over the past few years, the Kitimat site has
    allowed us to further enhance our distribution network and to
    cost-effectively supply methanol to customers in the Pacific
    Northwest region of North America. In 2007, we also added
    additional storage capacity in Vancouver, Washington to better
    serve customers in the Pacific Northwest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Over the past several years we have expanded our presence in
    Asia to participate in and improve our knowledge of the rapidly
    evolving and high growth methanol market in China and other
    countries in the region. In 2005, we expanded the methanol
    storage capacity at our Korean terminal to 155,000 tonnes. Our
    terminal in Korea allows us to efficiently and cost-effectively
    service customers in northeast Asia. We also leased terminal
    capacity in Taicang, China in 2005 to further improve customer
    service in that region. In the last few years, we relocated our
    Asia Pacific marketing and logistics office from Auckland, New
    Zealand to Hong Kong and opened an office in Shanghai. In 2007,
    we also added additional storage capacity in Zhangjiagang, China
    and expanded our offices in Shanghai and Hong Kong to enhance
    our customer service and industry positioning in the Asia
    Pacific region.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also believe that it is important to play a leadership role
    in the development and growth of applications for methanol in
    the energy sector. There are growing markets for using methanol
    in energy applications such as DME, direct gasoline blending and
    biodiesel. DME, which is typically produced from methanol, can
    be blended up to 20% with liquefied petroleum gas (LPG) and is
    used primarily for household cooking and heating. DME can also
    be used as a clean-burning substitute for diesel in
    transportation and as a clean fuel for power generation. In late
    2006, we entered into a long-term supply agreement with
    China&#146;s XinAo Group to supply all of XinAo&#146;s methanol
    requirements for a new 200,000 tonne per year DME facility near
    Shanghai which commenced operations in 2007. In September 2007,
    we purchased a 20% interest in XinAo&#146;s new DME facility for
    $5&#160;million. This facility represents the first phase of
    plans to expand the annual DME capacity of this site to
    one&#160;million tonnes. Through our 20% interest in the first
    phase, we have the ability to participate in the future
    expansion of the site. In December&#160;2007, we also entered
    into a Memorandum of Understanding to develop a similar DME
    facility in Egypt through a joint venture. The joint venture
    will include Methanex and the XinAo Group as minority interests,
    with the government-owned Egyptian Petrochemicals Holding
    Company (EChem) holding the majority interest. EChem is also a
    joint venture partner in our new methanol project in Egypt.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Finally, we opened an office in Dubai, U.A.E. in&#160;2007 to
    enhance our corporate presence and capitalize on future
    opportunities in the Middle East.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Operational
    Excellence</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We maintain a focus on operational excellence in all aspects of
    our business. This includes excellence in our manufacturing and
    distribution processes, human resources, corporate governance
    practices and financial management.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To differentiate ourselves from competitors, we strive to be the
    best operator in all aspects of our business and to be the
    preferred supplier to customers. We believe that reliability of
    supply is critical to the success of our customers&#146;
    businesses and our goal is to deliver methanol reliably and
    cost-effectively. In part due to our commitment to Responsible
    Care, a risk minimization approach developed by the Canadian
    Chemical Producers&#146; Association, we believe we have reduced
    the likelihood of unplanned shutdowns and lost-time incidents
    and have achieved an excellent overall environmental and safety
    record.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Corporate Social Responsibility (CSR) policy is a natural
    extension of our Responsible Care ethic and encompasses
    corporate governance, employee engagement and development,
    community involvement and social investment.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Value
    Creation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Maintaining a competitive cost structure is an important element
    of competitive advantage in a commodity industry and is a key
    element of our strategy. Our approach to all business decisions
    is guided by a drive to maintain and enhance our competitive
    cost structure and return value to shareholders. The most
    significant components of our costs are natural gas for
    feedstock and distribution costs associated with delivering
    methanol to customers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We supply most customer requirements with methanol produced at
    our own facilities. Through the execution of our strategy over
    the last decade, we have shut down our higher cost production
    assets and have built or acquired lower cost facilities. In
    2004, with the completion of a second plant in Trinidad, our
    total production capacity in Trinidad grew to 1.9&#160;million
    tonnes per year. In 2005, we completed construction of a fourth
    plant in Chile, bringing the total capacity of that site to
    3.8&#160;million tonnes per year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Natural gas is the primary feedstock at our methanol production
    facilities. An important element of our strategy is to ensure
    long-term security of natural gas supply. When operating at
    capacity, our Chile facilities source approximately 60% of their
    natural gas feedstock from Argentina. The remainder of the
    natural gas supply to our Chile facilities is sourced from
    natural gas suppliers in Chile. Over the past few years, we have
    experienced ongoing challenges to the cost and security of
    natural gas supply from Argentina. The government of Argentina
    has significantly increased the export duty on natural gas from
    Argentina and, since June 2007, has curtailed all of the natural
    gas supply from Argentina to our Chile facilities. Future
    purchases of natural gas from suppliers in Argentina will depend
    on whether natural gas exports are reinstated by the Argentina
    government, whether we can reach commercially acceptable
    arrangements with our gas suppliers and other factors. Refer to
    the <I>Natural Gas Supply</I> section of this document and to
    the <I>Risk Factors and Risk Management</I> section of our 2007
    MD&#038;A for more information.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe the solution to these Argentinean natural gas supply
    issues is to source more natural gas from suppliers in Chile. We
    are actively pursuing investment opportunities to accelerate
    natural gas exploration and development in areas of southern
    Chile that are relatively close to our production facilities.
    During 2007, we signed an agreement with one of our suppliers in
    Chile, GeoPark Chile Limited (GeoPark), under which we will
    provide $40&#160;million in financing to support and accelerate
    GeoPark&#146;s natural gas exploration and development
    activities in southern Chile. Under the arrangement, GeoPark
    will also provide us with natural gas under a ten-year exclusive
    supply agreement. As a result, GeoPark currently supplies us
    with approximately four percent of our natural gas requirements
    for our Chile facilities and we believe natural gas supply from
    GeoPark will increase overtime.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In November 2007, the government of Chile completed its first
    international bidding round to assign oil and gas exploration
    areas that lie close to our production facilities. Five
    international oil and gas companies were successful in the
    bidding process and exploration and development activities in
    these areas in southern Chile are expected to commence during
    the first half of 2008. We are optimistic that this activity
    will ultimately provide us with more secure long-term gas supply
    for our plants in Chile.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our production facilities in Trinidad are underpinned by
    long-term take-or-pay natural gas purchase agreements. Under
    these agreements, the price we pay for natural gas varies with
    methanol prices. Refer to the <I>Natural Gas Supply</I> section
    of this document for more information. During 2007, we had
    excellent operating performance at these facilities and produced
    at 96% of design capacity.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have positioned our facilities in New Zealand as flexible
    production assets. These assets include a 530,000 tonne per year
    production facility in Waitara Valley, which we have operated
    over the past few years, as well as two Motunui facilities that
    are currently idle and have a total annual operating capacity of
    up to 1.9&#160;million tonnes. The Motunui facilities were
    closed in 2004 due to natural gas supply constraints in New
    Zealand. We recently announced our intention to restart one
    idled 900,000 tonne per year Motunui plant in mid-2008. We
    expect to continue to operate the Waitara Valley facility until
    the Motunui plant restarts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The strategic location of our Chile, Trinidad and New Zealand
    sites allows us to deliver methanol cost-effectively to our
    customers in Asia Pacific, Europe, North America and Latin
    America. We believe that the 1.3&#160;million tonne methanol
    facility in Egypt, expected to be completed in early 2010, will
    further enhance our competitive positioning with its low cost
    structure and excellent location to supply the European markets.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    7
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The cost to distribute methanol from our production facilities
    to customers is also a significant component of our operating
    costs. These include costs for ocean shipping, in-market storage
    facilities and in-market distribution. We are focused on
    identifying initiatives to reduce these costs. We seek to
    maximize the use of our shipping fleet to reduce costs. We take
    advantage of prevailing conditions in the shipping market by
    varying the type and length of term of ocean vessel contracts.
    We are continuously investigating opportunities to further
    improve the efficiency and cost-effectiveness of distributing
    methanol from our production facilities to customers. We also
    look for opportunities to leverage our global asset position by
    entering into product exchanges with other methanol producers to
    reduce distribution costs.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We operate in a highly competitive commodity industry.
    Accordingly, we believe it is important to maintain financial
    flexibility and we have adopted a prudent approach to financial
    management. Where there are opportunities to grow our position
    in the methanol industry we apply a disciplined approach, which
    includes target return criteria. We also believe that it is
    prudent to maintain a conservative balance sheet and we have
    established a track record of maintaining a reasonable balance
    between growing our business and returning excess cash to
    shareholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Over the three-year period ending December 31, 2007, we achieved
    an average annual return on capital employed of approximately
    19%. Refer to the <I>Supplemental non-GAAP&#160;Measures</I>
    section of our 2007 MD&#038;A for a discussion of how return on
    capital employed is calculated. Over the same period, we also
    returned approximately $680&#160;million of cash to shareholders
    through a combination of share repurchases and dividends.
</DIV>
<A name='106'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">METHANOL
    INDUSTRY INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Methanol is a clear colourless liquid that is typically used as
    a chemical feedstock to manufacture other products.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2007, approximately 75% of all methanol was used to produce
    formaldehyde, acetic acid and a variety of other chemicals that
    form the foundation of a large number of chemical derivatives.
    These derivatives are used in the manufacture of a wide range of
    products including plywood, particleboard, foams, resins and
    plastics. The remainder of methanol demand is largely in the
    energy sector, principally as a feedstock in the production of
    MTBE and DME and for direct blending into gasoline. Methanol is
    also used as a feedstock in other energy applications such as
    biodiesel.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Methanol is a commodity chemical and the methanol industry has
    historically been characterized by cycles of oversupply
    resulting in lower prices and idling of capacity, followed by
    periods of shortage and rising prices as demand catches up and
    exceeds supply until increased prices lead to new plant
    investment or the re-start of idled capacity. Over the last
    several years, the methanol market has become more complex and
    subject to increasingly diverse influences due to the expanding
    number of uses for methanol and its derivatives combined with
    rising global energy prices and significant increases to capital
    costs.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Demand
    Factors</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Reflecting the diversity of its uses, methanol demand is
    influenced by a wide range of economic, industrial,
    environmental and other factors and risks. Refer to the <I>Risk
    Factors and Risk Management</I> section of our 2007 MD&#038;A
    for more information.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We estimate that global demand for methanol in 2007 increased by
    approximately 4% over 2006 to about 40&#160;million tonnes. This
    increase was driven primarily by an increase in demand for
    methanol in China, both in traditional chemical derivatives and
    non-traditional energy applications such as fuel blending and
    DME. Also, there was healthy global demand for methanol in the
    traditional chemical derivatives markets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2007, the use of methanol to make chemical derivatives
    accounted for about 75% of world methanol demand. Because of the
    importance and relative stability of chemical derivative demand,
    methanol traditionally had been considered to be a mature
    commodity. More recently however, new demand is developing and
    growing for energy applications, including DME, direct blending
    into gasoline and biodiesel.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Chemical Derivative Demand&#160;&#160;</I></B>In 2007,
    methanol for the production of formaldehyde represented
    approximately 40% of global methanol demand. The largest use for
    formaldehyde is as a component of urea-formaldehyde and
    phenol-formaldehyde resins, which are used as wood adhesives for
    plywood, particleboard, oriented strand board, medium-density
    fibreboard and other reconstituted or engineered wood products.
    There is also demand for formaldehyde as a raw material for
    engineering plastics and in the manufacture of a variety of
    other products, including elastomers, paints, building products,
    foams, polyurethane and automotive products.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    8
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2007, approximately 11% of all methanol produced annually was
    used in the production of acetic acid. Acetic acid is a chemical
    intermediate used principally in the production of vinyl acetate
    monomer (&#147;VAM&#148;), acetic anhydride, purified
    terephthalic acid and acetate solvents, which are used in a wide
    variety of products including adhesives, paper, paints,
    plastics, resins, solvents, pharmaceuticals and textiles. In
    recent years the acetic acid industry has seen increased demand
    for water-based solvents produced with VAM for use in paints and
    adhesives due to environmental concerns associated with
    emissions of volatile organic compounds from other types of
    solvents.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The remaining chemical derivative demand for methanol is in the
    manufacture of methylamines, methyl methacrylate and a diverse
    range of other chemical products that in turn are ultimately
    used to make products such as adhesives, coatings, plastics,
    film, textiles, paints, solvents, paint removers, polyester
    resins and fibres, explosives, herbicides, pesticides and
    poultry feed additives. Other end-uses include silicone
    products, aerosol products, de-icing fluid, windshield washer
    fluid for automobiles and antifreeze for pipeline dehydration.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Changes in chemical derivative demand are generally influenced
    by levels of global industrial production and changes in
    economic conditions. The use of formaldehyde, acetic acid and
    other derivatives in the building industry means that building
    and construction cycles and the level of wood production,
    housing starts, refurbishments and consumer spending are
    important factors in determining demand for such derivatives.
    Demand is also affected by automobile production, durable goods
    production, industrial investment and environmental and health
    trends, as well as new product development in the panelboard and
    plastic packaging industries. Historically, chemical derivative
    demand for methanol has been relatively insensitive to changes
    in methanol prices. We believe this demand inelasticity is due
    to the fact that there are few cost-effective substitutes for
    methanol-based chemical derivative products and because methanol
    costs in most cases account for only a small portion of the
    value of many of the end-products.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Energy Demand&#160;&#160;</I></B>In 2007, methanol for the
    production of MTBE represented approximately 14% of global
    methanol demand. MTBE is used primarily as a source of octane
    and as an oxygenate for gasoline to reduce the amount of harmful
    exhaust emissions from motor vehicles. Other energy
    applications, including DME, direct blending into gasoline and
    biodiesel, account for approximately 10% of global methanol
    demand, but were the fastest growing end-use segments for
    methanol in 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the 1990s, environmental concerns and legislation in the
    United States led to the introduction of a federal oxygenate
    standard for gasoline that resulted in increased demand for MTBE
    for use in gasoline to reduce automobile tailpipe emissions.
    Subsequently, concerns in the United States were raised
    regarding the use of MTBE in gasoline because gasoline
    containing MTBE leaked into groundwater in the United States,
    principally from underground gasoline storage tanks, and was
    discharged directly into drinking water reservoirs from
    recreational watercraft. MTBE is more easily detectable in water
    than many other gasoline components. The presence of MTBE in
    some water supplies led to public concern about MTBE&#146;s
    potential to contaminate drinking water supplies. Several
    states, including California, New York, New Jersey and
    Connecticut have, since 2003, banned the use of MTBE as a
    gasoline component and this has reduced demand for methanol in
    the United States.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2005, the United States federal government passed the Energy
    Policy Act (&#147;EPACT&#148;), which contains provisions that
    had the effect of further reducing demand for MTBE in the United
    States. While EPACT did not provide for a federal ban on the use
    of MTBE in gasoline, it waived the federal oxygenate standard
    for gasoline effective May 2006 and did not provide MTBE
    producers and blenders with defective product liability
    protection. We believe that methanol was not used in the United
    States in 2007 to make MTBE for use in domestic fuel blending;
    however, approximately 900,000&#160;tonnes per year of methanol
    continues to be used to produce MTBE in the United States for
    non-fuel use and for export markets. Demand for methanol for
    MTBE in the United States may decline further. The pace of
    decline of such demand is uncertain and will be determined by
    various factors, including the export economics of MTBE
    producers in the United States.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Additionally, the Environmental Protection Agency in the United
    States is preparing an Integrated Risk Information System (IRIS)
    review of the human health effects of MTBE, including its
    potential carcinogenicity, and its final report is expected to
    be released in mid-2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The European Union issued a final risk assessment report on MTBE
    in 2002 that permitted the continued use of MTBE, although
    several risk reduction measures relating to storage and handling
    of MTBE-containing fuel were recommended. However, governmental
    efforts in some European Union countries to promote biofuels and
    alternative fuels through legislation and tax policy are putting
    competitive pressures on the use of MTBE in gasoline in Europe.
    Several European MTBE production facilities are now producing
    ethyl tertiary butyl ether (ETBE), which does not contain
    methanol, to take advantage of such tax incentives.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    9
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Elsewhere in the world, MTBE continues to be used as a source of
    octane, but with growing usage for its clean air benefits. We
    believe that there is potential for continuing growth in MTBE
    use outside the United States and Europe. Our belief is based on
    actions being taken around the world to reduce lead, benzene and
    other aromatics in gasoline and to improve the emissions
    performance of vehicles generally. A number of Asian countries,
    including China, have adopted European specifications for
    gasoline formulations. This is expected to lead to increased
    consumption of MTBE in these markets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All of these recent developments lead us to believe that over
    the next couple of years, global demand for MTBE may decline
    slightly due to declining MTBE production in the United States
    and increasing incentives for biofuels in Europe and Latin
    America. However, we expect that demand for MTBE in Asia and the
    Middle East will remain healthy.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There are several other energy-related uses for methanol that
    have developed more recently that have substantial growth
    potential. These include DME, direct blending into gasoline and
    biodiesel.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    DME is a clean burning fuel that can be stored and transported
    like liquefied petroleum gas&#160;(LPG). DME, which is typically
    produced from methanol, can be blended up to approximately 20%
    with&#160;LPG and used for household cooking and heating. DME
    has seen rapid growth for blending into LPG and we believe it
    will continue to show strong growth in coming years,
    particularly in China. DME can also be used as a clean-burning
    substitute for diesel in transportation and as a clean fuel for
    power generation. However, while the technology for using DME as
    a diesel substitute is well advanced, it has not yet entered
    widespread commercialization. In 2007, global methanol demand
    for use in DME was estimated at 900,000 tonnes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Methanol blending into gasoline is growing rapidly in China and
    is being used to help reduce China&#146;s dependence on imported
    energy. The National Development and Reform Commission (NDRC),
    China&#146;s main economic decision-making body, is in the
    process of considering legislation supporting nationwide use of
    methanol in gasoline blends. In 2007, methanol demand for direct
    blending into gasoline in China was estimated at
    two&#160;million tonnes and is projected to grow further in 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Biodiesel is a renewable fuel made from plant oils or animal
    fats and requires an alcohol, such as methanol, as part of the
    production process. In 2007, global methanol demand for use in
    biodiesel was estimated at 900,000 tonnes. We expect future
    growth in biodiesel to be driven primarily by high energy prices
    and government programs to promote a renewable alternative to
    petroleum fuels.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As we enter 2008, we are experiencing healthy demand for
    methanol. We believe that global chemical derivative demand
    growth for methanol and demand in other energy applications will
    more than offset any potential loss of demand for methanol to
    produce MTBE. We expect energy prices and government legislation
    to play an important role in determining the rate at which
    methanol for energy use expands.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Supply
    Factors</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    While a significant amount of new methanol capacity has come on
    stream over the past few years, a large number of higher cost
    North American and European producers have shut down plants. In
    addition, the industry has consistently operated significantly
    below stated capacity, even in periods of high methanol prices,
    due primarily to shutdowns for planned and unplanned repairs and
    maintenance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Newer world-scale methanol plants are generally constructed in
    remote coastal locations with access to lower cost feedstock,
    although this advantage is sometimes offset by higher
    distribution costs due to their distance to major markets. There
    is typically a span of three to six years to plan and construct
    a new world-scale methanol plant. As well, additional methanol
    supply can potentially become available by re-starting methanol
    plants whose production has been idled, by carrying out major
    expansions of existing plants and by de-bottlenecking existing
    plants to increase their production capacity.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Typical of most commodity chemicals, periods of high methanol
    prices encourage high cost producers to operate at maximum rates
    and also encourage the construction of new plants and expansion
    projects, leading to the possibility of oversupply in the
    market. However, historically, not all announced capacity
    additions have resulted in the completion of new plants. The
    construction of world-scale methanol facilities requires
    significant capital over a long lead time, a location with
    access to significant natural gas or coal feedstock with
    appropriate pricing and an ability to cost-effectively deliver
    methanol to customers. Obtaining access to natural gas feedstock
    at appropriate prices is becoming more challenging as demand for
    natural gas is increasing for higher value uses, such as
    liquified natural gas (LNG), domestic energy use or as a
    feedstock for other chemical products. In addition, plant
    construction phases have been extended and
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    10
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    capital costs have escalated due to shortages of raw materials
    and labour caused by increased construction activity globally.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2007, there were two significant methanol production capacity
    additions outside of China&#160;&#151; a 1.7&#160;million tonne
    per year facility in Iran and a 1.0&#160;million tonne per year
    facility in Oman. In addition, numerous smaller-scale plants
    were added in China, representing approximately 3.5&#160;million
    tonnes of annual capacity.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Over the two-year period to the end of 2009, it is expected that
    new capacity and expansions will add approximately
    5.1&#160;million tonnes of capacity to the global industry,
    outside of China. We believe that this new capacity could be
    offset by demand growth outside of China, import growth into
    China and closures of high cost capacity in the industry. We
    believe that outside China, approximately 2.0&#160;million
    tonnes of capacity could shut down as a result of high feedstock
    prices, including various plants in India, Germany, Eastern
    Europe, the United States and Russia.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    By the end of 2009, we believe that China will add in excess of
    ten million tonnes of new methanol capacity. We also believe
    that most of this new capacity will be coal-based production
    that will meet domestic Chinese derivative and energy market
    demand for methanol and is not expected to compete in the
    international market with natural gas produced methanol. The
    Chinese methanol industry has historically operated at low rates
    and there has been increasing pressure on its cost structure as
    a result of escalating feedstock costs for both coal and
    natural-gas-based producers. The cost for Chinese producers to
    export has also escalated as a result of reduced fiscal
    incentives and an appreciating local currency. In addition, the
    majority of the methanol produced in China is coal-based, which
    is typically lower quality and often not suitable for many
    international customers. We believe that methanol demand growth
    for both traditional and energy-related uses will remain strong
    in China, which will require significant capacity expansion and
    good operating rates in China in order to satisfy the growth in
    its domestic demand. As a result, under a normal pricing
    environment, we believe that substantially all existing and new
    methanol capacity in China will be consumed in the local market
    and that imports of methanol into China will increase over time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Methanol
    Prices</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Methanol is an internationally traded commodity. Methanol prices
    have historically been cyclical and sensitive to overall
    production capacity relative to demand, the price of feedstock
    (primarily natural gas or coal) and general economic conditions.
    The following chart shows published methanol contract prices (in
    United States dollars per tonne) in the United States Gulf and
    Western Europe, two of the world&#146;s major methanol markets:
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">US GULF
    AND WESTERN EUROPE METHANOL PUBLISHED CONTRACT PRICES 1996 to
    2008</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="o38546o3854609.gif" alt="(METHANOL PRICE LINE GRAPH)"><B>
    </B>
</DIV>

<DIV style="font-size: 8pt; margin-left: 0%; width: 12%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=479 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Source: CMAI
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    11
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Methanol prices in the United States, Europe and Asia Pacific
    have largely tracked each other, though often with leads or lags.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The majority of methanol sold globally is priced with reference
    to various published regional contract prices to which discounts
    may be applied. Spot market transactions also occur, although
    they represent a relatively small portion of the total volume
    that is traded.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We publish a regional non-discounted price for each major
    methanol market and these posted prices are reviewed and revised
    from time to time based on industry fundamentals and market
    conditions. Most of our customer contracts now use published
    Methanex reference prices as a basis for pricing, and customer
    discounts to these prices may apply based on various factors. In
    addition, we have entered into long-term contracts for a portion
    of our production volume with certain global customers where
    prices are either fixed or linked to our costs plus a margin. As
    a result of these contracts, the discount from our
    non-discounted published reference prices is expected to narrow
    during periods of lower pricing. In 2007, sales under these
    contracts represented approximately 22% of our total sales
    volumes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We experienced a significant increase in methanol pricing
    towards the latter half of 2006 due to tight supply conditions
    brought on by planned and unplanned supplier outages. We entered
    2007 with tight market conditions due to these industry supply
    constraints combined with high global energy prices and healthy
    demand. The supply and demand fundamentals improved and prices
    moderated in the first half of 2007. During the latter half of
    2007, significant planned and unplanned supplier outages,
    including outages at our own facilities in Chile, caused a
    severe shortage of global inventories. This led to a another
    significant increase in prices that continued throughout the
    fourth quarter of&#160;2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that supply and demand fundamentals will be balanced
    to tight during 2008 and that methanol prices will be
    underpinned by strong demand in China and global energy prices.
    The methanol price will ultimately depend on industry operating
    rates, global energy prices, the rate of industry restructuring
    and the strength of global demand.
</DIV>
<A name='107'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PRODUCTION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Production
    Processes</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The methanol manufacturing process used in our facilities
    typically involves heating natural gas, mixing it with steam and
    passing it over a nickel catalyst where the mixture is converted
    into carbon monoxide, carbon dioxide and hydrogen. This reformed
    gas (also known as synthesis gas or syngas) is then cooled,
    compressed and passed over a copper-zinc catalyst to produce
    crude methanol. Crude methanol consists of approximately 80%
    methanol and 20% water by weight. To produce chemical-grade
    methanol, crude methanol is distilled to remove water, higher
    alcohols and other impurities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Operating
    Data and Other Information</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We endeavour to operate our production facilities around the
    world in an optimal manner to lower our overall delivered cost
    of methanol. Scheduled shutdowns of plants every three or more
    years are necessary to change catalysts or perform maintenance
    activities that cannot otherwise be completed with the plant
    operating (a process commonly known as a turnaround) and these
    shutdowns typically take between three and four weeks. Catalysts
    generally need to be changed every six years, although there is
    flexibility to extend catalyst life if conditions warrant.
    Careful planning and scheduling is required to ensure that
    maintenance and repairs can be carried out during turnarounds.
    In addition, both scheduled and unscheduled shutdowns may also
    occur between turnarounds. We prepare a comprehensive eight-year
    turnaround plan that is updated annually for all of our
    production facilities.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    12
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth certain production data and other
    information for our methanol operations at each of our
    facilities:
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="58%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Operating<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2007<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2006<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Built</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Capacity<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Production</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Production</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    (tonnes/year)
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    (tonnes)
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    (tonnes)
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 2pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Punta Arenas, Chile
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Chile I
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1988
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    925,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    613,162
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    712,104
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Chile II
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1996
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,010,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    285,944
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    849,674
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Chile III
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1999
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,065,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    619,177
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    970,138
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Chile IV
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2005
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    840,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    322,996
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    653,858
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Trinidad
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Titan
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    850,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    861,273
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    864,423
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Atlas<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2004
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,073,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    982,014
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,057,152
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Waitara Valley, New
    Zealand<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1983
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    530,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    434,681
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    404,210
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,293,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,119,247
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,511,559
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 2pt; margin-left: 0%; width: 12%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=479 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (1)&#160;
</TD>
    <TD align="left">    The annual operating capacities shown in the table may be higher
    than the original design capacity due to efficiencies gained
    through improvements and experience in operating these plants.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (2)&#160;
</TD>
    <TD align="left">    Atlas is a joint venture between a subsidiary of Methanex
    (63.1%) and a subsidiary of BP (36.9%). The operating capacity
    and production shown here are Methanex&#146;s proportionate
    share.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (3)&#160;
</TD>
    <TD align="left">    The Waitara Valley facility is positioned as a flexible
    production asset with operations dependant upon methanol
    industry supply and demand and the availability of natural gas
    on commercially acceptable terms. We also have up to
    1.9&#160;million tonnes of idled production capacity at our
    Motunui site in New Zealand.
</TD>
</TR>

</TABLE>
<A name='108'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MARKETING</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We sell methanol on a worldwide basis to every major market
    through an extensive marketing and distribution system with
    marketing offices in North America (Dallas), Europe (Brussels
    and Billingham, England), Asia Pacific (Hong Kong, Shanghai,
    Tokyo and Seoul), Latin America (Santiago, Chile), and our new
    office in Dubai, U.A.E.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe our ability to sell methanol from geographically
    dispersed, multiple production sites enhances our ability to
    secure major chemical and petrochemical producers as customers
    for whom reliability of supply and quality of service are
    important. Our global network of marketing offices, together
    with storage and terminal facilities and worldwide shipping
    operations, also allow us to provide larger customers with
    multinational sourcing of product and other customized
    arrangements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to selling methanol that we produce at our own
    facilities, we also sell methanol that we purchase from other
    suppliers through offtake agreements and on the spot market. We
    do this to meet customer needs, support our marketing efforts
    and build our sales base prior to bringing on our own new
    capacity. Currently, the majority of our sales are covered by
    long-term or rolling one-year sales contracts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Trade in methanol is subject to duty in some jurisdictions.
    Refer to the <I>Foreign Operations and Government Regulation</I>
    section of this document for more information.
</DIV>
<A name='109'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DISTRIBUTION
    AND LOGISTICS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The cost of methanol distribution represents a significant
    portion of our total costs and is important to our overall
    profitability. Our production site in Chile can supply all
    global regions due to its geographic location. The Atlas and
    Titan plants in Trinidad supply customers primarily in the
    United States and Europe. Our plants in New&#160;Zealand are
    ideally located to supply customers in Asia Pacific.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Methanol is pumped from our coastal plants by pipeline to
    adjacent deepwater ports for shipping. We manage a fleet of 19
    ocean-going vessels to ship this methanol. To retain optimal
    flexibility in the management of the fleet, we have entered into
    short-term and long-term time charters covering vessels with a
    range of capacities. We also ship methanol under contracts of
    affreightment and through spot arrangements. We use larger
    vessels as key elements in our supply chain to move product from
    our production facilities to storage facilities located in major
    ports. We use smaller vessels capable of entering into
    restricted ports to deliver directly to customers. We also lease
    or own storage and terminal facilities in the United States,
    Canada, Europe and Asia. In North America and Europe we use
    barge, rail and, to a lesser extent, truck transport in our
    delivery system.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    13
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->
<A name='110'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NATURAL
    GAS SUPPLY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Natural gas is the principal feedstock for methanol at our
    production facilities and accounts for a significant portion of
    our total production costs. Accordingly, our profitability
    depends in large part on both the security of supply and the
    price of natural gas. An important part of our strategy is to
    ensure long term security of supply of natural gas feedstock.
    If, for any reason, we are unable to obtain sufficient natural
    gas for any of our plants on commercially acceptable terms, we
    could be forced to curtail production or close such plants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Natural gas supply contracts for our facilities in Chile and
    Trinidad and the natural gas supply contract for the methanol
    project under construction in Egypt are &#147;take-or-pay&#148;
    contracts, are denominated in United States dollars and include
    base and variable price components to reduce our commodity price
    risk exposure. &#147;Take-or-pay&#148; means that we are obliged
    to pay for the gas supply regardless of whether we take
    delivery. Such commitments are typical in the methanol industry.
    These contracts generally provide a quantity that is subject to
    take-or-pay terms that is lower than the maximum quantity that
    we are entitled to purchase. The variable price component of
    each gas contract is adjusted by a formula related to methanol
    prices above a certain level. We believe this pricing
    relationship enables these facilities to be competitive
    throughout the methanol price cycle and provides gas suppliers
    with attractive returns.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Chile</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Based on our current natural gas contract entitlements, about
    60% of the natural gas for our Chilean facilities is sourced
    from suppliers in Argentina that are affiliates of international
    oil and gas companies. This percentage will increase to
    approximately 80% commencing mid-2009. The remainder is supplied
    from gas suppliers in Chile, mainly from Empresa Nacional del
    Petr&#243;leo (ENAP), a Chilean state-owned energy company, and
    a small percentage from GeoPark Chile Limited (GeoPark), an
    independent natural gas producer with operations in Chile.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Natural
    Gas Contracts with Suppliers in Chile</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Approximately 40% of the contracted natural gas supply for our
    Chilean facilities is sourced from ENAP and GeoPark under
    take-or-pay agreements. One of our supply contracts with ENAP,
    which represents 20% of the contractual entitlements for our
    Chile facilities, has a base component and a variable price
    component determined with reference to our average realized
    price of methanol for the current calendar year and expires in
    mid-2009. Our remaining natural gas contracts with ENAP have a
    base component and a variable price component determined with
    reference to
    <FONT style="white-space: nowrap">12-month</FONT>
    trailing average published industry methanol prices. The
    expiration dates for these contracts range from 2017 to 2025.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also have commitments for natural gas purchases under a
    ten-year exclusive natural gas supply agreement with GeoPark
    under which we will purchase all natural gas produced by GeoPark
    from the Fell Block in southern Chile. GeoPark has recently
    increased natural gas supply to our plants which has resulted in
    GeoPark currently supplying us with approximately four percent
    of our natural gas requirements in Chile. The pricing under this
    contract has a base component and a variable component that is
    determined with reference to a three-month trailing average of
    industry methanol prices. The amount of natural gas purchased
    under this supply contract will depend on the amount of natural
    gas produced by GeoPark from the Fell Block.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Natural
    Gas Contracts with Suppliers in Argentina</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our long-term natural gas contracts with suppliers in Argentina
    have expiration dates ranging from 2017 to 2025 and natural gas
    export permits are in place for these contracts. The purchase
    price for natural gas under these agreements is based on a
    minimum US dollar base price, plus a variable component that is
    determined with reference to
    <FONT style="white-space: nowrap">12-month</FONT>
    trailing average published industry methanol prices.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Since mid-June 2007, we have not received any natural gas supply
    from suppliers in Argentina, and as a result, we have been
    operating our facilities in Chile at significantly reduced
    operating rates since that time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Over the past few years, Argentina has been experiencing energy
    shortages. To mitigate these shortages, the government of
    Argentina passed regulations that require Argentinean gas
    suppliers to give priority to supplying the domestic market.
    This, along with other delivery infrastructure issues, resulted
    in curtailments of gas supply to Chile. Prior to 2007, our
    production facilities in Chile suffered minor curtailments,
    primarily during the winter period in the southern hemisphere.
    Between 2004 and 2006, we lost between 50,000 to 100,000 tonnes
    of methanol production annually.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    14
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2007, the curtailments were much more significant as we lost
    approximately 1.6&#160;million tonnes of methanol production. In
    mid-June of 2007, a compressor failure seriously impacted the
    natural gas delivery infrastructure in the province of Tierra
    del Fuego in Argentina, and this issue, combined with increased
    domestic demand for natural gas in Argentina as a result of cold
    temperatures during the winter months, resulted in the
    curtailment of all of our natural gas supply from Argentina.
    Later in the year, the compressor issue was resolved and the
    domestic demand for natural gas in Argentina stabilized with
    warmer temperatures. We believe that there is currently
    sufficient natural gas production capability in the region to
    meet our full contracted supply from Argentina and that the
    pipeline that transports natural gas from southern Argentina to
    the more populated areas in central Argentina is operating at
    full capacity. However, the government of Argentina has not yet
    permitted the restoration of natural gas supply to our plants
    for reasons which, we believe, include maintaining domestic
    natural gas reserves that have decreased due, in part, to a
    lower level of oil and gas exploration and development activity
    in Argentina.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to 2007, our Chilean operations had been somewhat isolated
    from this curtailment issue because of the location of our
    plants in the southernmost region of Chile and limited pipeline
    transportation capacity to the population centers in Argentina.
    There is only one major pipeline that runs from the south to the
    central region of Argentina. In 2005, the capacity of this
    pipeline was increased by approximately 13%. The government of
    Argentina is pursuing and has committed to completing further
    pipeline expansion projects, although the timing of the
    commencement and completion of these projects is uncertain.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Effective July 2006, the government of Argentina increased the
    duty on exports of natural gas from Argentina to Chile from
    approximately $0.30 per mmbtu to $2.25 per mmbtu. In March 2008,
    the government increased the duty again to approximately $7.00
    per mmbtu, which is 100 percent of the highest contracted price
    for natural gas currently imported into Argentina.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    While our gas contracts provide that the gas suppliers must pay
    any duties levied by the government of Argentina, we contributed
    toward some of the costs of these duties when we were receiving
    natural gas from Argentina in 2006 and the first half of 2007.
    We have also commenced an arbitration proceeding against one of
    our Argentinean gas suppliers who, for about two months during
    this period of time, failed to deliver us natural gas as they
    are contractually required to do. In early March 2008, this
    supplier applied to have the proceeding expanded to permit it to
    seek, among other things, a declaration that the natural gas
    supply contracts between this supplier and the Company are
    terminated. We have not received any natural gas from Argentina
    since June 2007 and we are in continuing discussions with our
    Argentinean natural gas suppliers to reach commercially
    acceptable arrangements in the event that natural gas supply
    from Argentina is restored. There can be no assurance that we
    will be successful in entering into commercially acceptable
    arrangements with our natural gas suppliers from Argentina or
    that the impact of this export duty will not have an adverse
    effect on our results of operations and financial condition. As
    well, there can be no assurance that the natural gas suppliers
    will not take the position that the imposition of such duties or
    other actions of the Argentinean government relieve them of the
    obligation to deliver natural gas under the contracts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There are many variables beyond our control that could affect
    whether we receive natural gas supply from Argentina and we are
    currently unable to provide a reasonable view as to the amount
    of natural gas supply, if any, that we might receive in 2008 and
    beyond. These variables include the actions of the government of
    Argentina, the level of future oil and gas exploration activity
    in Argentina, actions of our gas suppliers (including claims for
    contractual relief or claims of force majeure), outcomes of
    ongoing or future arbitration or other proceedings, weather and
    other variables that are currently unanticipated or beyond our
    control. We cannot provide assurance as to whether, when and to
    what extent our natural gas supply from Argentina will be
    restored or that we will be able to reach commercially
    acceptable arrangements with our natural gas suppliers, or that
    the impact of these issues will not have an adverse effect on
    our results of operations and financial condition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a result of our Argentinean natural gas supply issues, all of
    the methanol production at our Chile facilities during the
    second half of 2007 was produced with natural gas from Chile.
    During 2007, we also received less than our full natural gas
    supply from ENAP, our primary gas supplier in Chile, as a result
    of ongoing deliverability and production issues. This caused
    methanol production losses of approximately 400,000&#160;tonnes.
    We cannot provide assurance that ENAP will not continue to have
    deliverability and production issues or that the loss of natural
    gas supply to our plants in Chile as a result of such issues
    will not be greater than it has been in the past. Such losses
    could have an adverse effect on our results of operations and
    financial condition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We continue to work on sourcing additional gas supply for our
    Chile facilities from suppliers in Chile. We are pursuing
    investment opportunities with ENAP and GeoPark to help
    accelerate natural gas exploration and development in
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    15
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    southern Chile. Both parties are undertaking gas exploration and
    development programs in areas that are relatively close to our
    production facilities. Their exploration and development efforts
    are encouraging, with ENAP and GeoPark recently announcing
    discoveries of commercial gas in this area. In November, 2007,
    we announced that we signed an agreement with GeoPark under
    which we will provide $40&#160;million in financing to support
    and accelerate GeoPark&#146;s natural gas exploration and
    development activities in the Fell Block in southern Chile.
    Under the arrangement, GeoPark will also supply us with all
    natural gas sourced by GeoPark from the Fell Block under a
    ten-year exclusive supply agreement. In 2007, GeoPark increased
    deliveries to our plants in Chile and we expect our natural gas
    supply from GeoPark to increase further over time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In November 2007, the government of Chile completed an
    international bidding round to assign oil and natural gas
    exploration areas that lie close to our production facilities.
    Methanex participated in a consortium with two oil&#160;and gas
    exploration companies that submitted a bid for upstream gas
    development concessions in the bidding round. Although the
    consortium was not ultimately awarded any of the concessions,
    five international oil and gas companies were successful in the
    bidding process, and exploration and development activities in
    these areas in southern Chile are expected to begin in the first
    half of 2008. We cannot provide assurance that ENAP, GeoPark or
    others will be successful in the exploration and development of
    natural gas or that we would obtain any additional natural gas
    from suppliers in Chile on commercially acceptable terms. Refer
    also to the <I>Risk Factors and Risk Management&#160;&#151;
    Security of Natural Gas Supply and Price</I> section of our 2007
    MD&#038;A.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Trinidad</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Natural gas for our Titan and Atlas facilities is sourced from
    the major gas fields that are located off the coast of Trinidad.
    These fields are operated by major international oil and gas
    companies. The National Gas Company of Trinidad and Tobago
    Limited (&#147;NGC&#148;) transports the gas by pipeline to a
    processing facility located near our Titan and Atlas facilities
    and from there it is distributed and sold under individual
    contracts to industrial consumers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Natural gas is supplied to our facilities under contracts with
    NGC, which purchases the gas from gas producers under
    <FONT style="white-space: nowrap">back-to-back</FONT>
    purchase arrangements. Titan&#146;s take-or-pay gas supply
    contract with NGC expires in 2014 with an option to renew for a
    further five years subject to availability of gas and agreement
    on price. The price paid for gas by the Titan plant is based on
    a fixed escalation of a minimum US dollar base price plus a
    variable component that is determined with reference to average
    published industry methanol prices each quarter. Under the
    contract, NGC is obligated to supply, and we are obligated to
    take-or-pay for, a specified annual quantity of natural gas. Gas
    paid for, but not taken, by the Titan plant in any year may be
    received in subsequent years subject to some limitations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Atlas plant&#146;s gas contract with NGC expires in 2024 and
    the price formula and take-or-pay obligations are similar to
    those found in Titan&#146;s gas contract.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Over the past few years, large industrial natural gas consumers
    in Trinidad, including Methanex, experienced periodic
    curtailments of natural gas supply. These curtailments resulted
    from a number of different factors, including difficulties
    encountered in bringing new offshore natural gas delivery
    systems on line and various mechanical problems in the existing
    pipeline and distribution systems. Also, the commissioning of
    new facilities consuming large amounts of natural gas put stress
    on the natural gas delivery system. In 2007, one of the major
    gas producers in Trinidad brought two new gas platforms on
    stream. As a result, we have seen a marked improvement in gas
    supply. While curtailments of natural gas to our facilities in
    Trinidad in 2007 were not significant, we cannot provide
    assurance that we will not experience further curtailments due
    to problems with gas delivery infrastructure in Trinidad and
    there can be no assurance that production losses will not be
    materially worse than we have experienced in the recent past.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">New
    Zealand</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have restructured our New Zealand operations over the past
    few years due to natural gas supply constraints in New Zealand.
    In 2004, we idled two plants (with a total capacity of up to
    1.9&#160;million tonnes per year) at our Motunui site. Since
    then, we have been operating our 530,000 tonne per year Waitara
    Valley facility on a flexible basis. In 2007, we produced about
    435,000 tonnes of methanol, or 82% of total capacity, at the
    Waitara Valley plant. In December 2007, we secured additional
    natural gas under a fixed price, take-or-pay supply agreement
    that will allow us to produce at this facility until mid-2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We recently announced our intention to restart one idled 900,000
    tonne per year Motunui plant in mid-2008. We expect to continue
    to operate the Waitara Valley facility until the Motunui plant
    restarts. The continued operations of the flexible New Zealand
    facilities depends on industry supply and demand and the
    availability of natural gas on
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    16
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    commercially acceptable terms. There can be no assurance that we
    will be able to secure additional gas for either of these
    facilities on commercially acceptable terms.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Egypt</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have a long-term, take-or-pay natural gas supply agreement
    for the methanol project that we are currently constructing in
    Egypt with joint venture partners. We expect this facility to
    begin commercial operations in early 2010. The pricing for
    natural gas under this agreement includes base and variable
    price components. The variable component of the natural gas
    contract in Egypt commences in mid-2012 and is determined with
    reference to the Company&#146;s average realized price of
    methanol each quarter. This contract expires 25&#160;years after
    the start of the commercial operation of the facility.
</DIV>
<A name='111'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">FOREIGN
    OPERATIONS AND GOVERNMENT REGULATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have substantial operations and investments outside of North
    America, and as such we are affected by foreign political
    developments and federal, provincial, state and other local laws
    and regulations. To date, we believe we have complied in all
    material respects with governmental requirements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are subject to risks inherent in foreign operations,
    including loss of revenue, property and equipment as a result of
    expropriation, import or export restrictions, nationalization,
    war, insurrection, acts of terrorism and other political risks;
    increases in duties, taxes and governmental royalties;
    renegotiation of contracts with governmental entities; as well
    as changes in laws or policies or other actions by governments
    that may adversely affect our operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, because the Company derives substantially all of
    its revenue 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 the Company 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 style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The dominant currency in which we conduct business is the United
    States dollar, which is also our reporting currency. The most
    significant components of our costs are natural gas feedstock
    and ocean shipping costs, substantially all of which are
    incurred in United States dollars. Some of our underlying
    operating costs and capital expenditures, however, are incurred
    in currencies other than the United States dollar, principally
    the Canadian dollar, the Chilean peso, the Trinidad and Tobago
    dollar, the New Zealand dollar and the euro. We are exposed to
    increases in the value of these currencies that could have the
    effect of increasing the United States 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 United States dollar, which could have the
    effect of decreasing the United States dollar equivalent of our
    revenue.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Trade in methanol is subject to duty in a number of
    jurisdictions. For instance, methanol sold in China from any of
    our producing regions is subject to a duty of 5.5%. Methanol
    from Chile that is sold in Japan and Korea, the other major
    markets in Asia Pacific, is not subject to duty. Recent free
    trade agreements now allow methanol from Chile to be sold
    duty-free into North America and the European Union. Methanol
    from Trinidad may also be sold duty-free into North America and
    the European Union. Currently, the costs we incur in respect of
    duties is not significant. However, there can be no assurance
    that the duties that we are currently subject to will not
    increase, that duties will not be levied in other jurisdictions
    in the future or that we will be able to mitigate the impact of
    future duties, if levied.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Chile</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our wholly owned subsidiary, Methanex Chile Limited
    (&#147;Methanex Chile&#148;), owns the four plants comprising
    the Chilean production facilities. Chilean foreign investment
    regulations provide certain benefits and guarantees to companies
    that enter into a foreign investment contract (&#147;DL 600
    Contract&#148;) with Chile. Methanex Chile has entered into four
    DL 600 Contracts, substantially identical in all matters
    material for Methanex Chile, one for each of the plants.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    17
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the DL 600 Contracts, Methanex Chile is authorized to
    remit from Chile, in US dollars or any other freely convertible
    currency, all or part of its profits and, after one year, its
    equity. As well, under the DL 600 Contracts, Methanex Chile has
    elected to pay income tax at the general applicable rate,
    currently 35%. The DL 600 Contracts provide that they cannot be
    amended or terminated except by written agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Please also refer to the <I>Natural Gas Supply</I> section of
    this document for a discussion of the actions of the government
    of Argentina which have had the effect of curtailing the supply
    of natural gas to Chile and increasing the duty on exports of
    natural gas from Argentina to Chile.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Trinidad</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Atlas plant was declared an approved enterprise under the
    Fiscal Incentives Act of Trinidad and was granted, for a ten
    year period beginning in 2004, total relief from corporation
    income tax for the first two years of operation, then a rate of
    15% for the following five years and a rate of 20% for the
    following three years. Atlas also has total relief from income
    tax on dividends or other distributions, other than interest,
    out of profits or gains derived from the manufacture of methanol
    and has been granted import duty concessions on building
    materials and machinery and equipment imported into Trinidad and
    used in connection with the facility.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The applicable corporation income tax rate without tax relief is
    currently 35%. There are no exchange control restrictions
    relating to the movement of funds into or out of Trinidad.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">New
    Zealand</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    New Zealand has enacted legislation to safeguard claims by Maori
    tribes (the indigenous people of New Zealand) against lands
    previously owned by state-owned enterprises and subsequently
    privatized. The land on which certain parts of the
    infrastructure for the Waitara Valley and Motunui plants are
    located (for example, a tank farm and various pipelines and
    pipeline valve and mixing stations) are subject to this
    legislation. There is a possibility that the tribunal that deals
    with Maori land claims could recommend the return of such land
    to Maori ownership. The New Zealand government would be required
    to comply with such a recommendation, subject to payment of
    compensation to the affected owner. We believe that, subject to
    receiving adequate compensation, such a forced divestment would
    not likely have a material adverse effect on our operations or
    financial condition. The land upon which the Waitara Valley and
    Motunui plants are located and the surrounding buffer zones of
    farmland owned by us are not subject to such forced divestment
    procedures.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are not subject to any exchange control or other governmental
    restrictions relating to the movement of money into or out of
    New Zealand.
</DIV>
<A name='112'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ENVIRONMENTAL
    AND SOCIAL MATTERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The countries in which we operate all have laws and regulations
    to which we are subject governing the environment and the
    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
    emissions and 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 these laws
    and regulations may give rise to work orders, fines,
    injunctions, civil liability and criminal sanctions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a result of periodic external and internal audits, we
    currently believe that we materially comply with all existing
    environmental, health and safety laws and regulations to which
    our operations are subject. 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. Such laws and
    regulations may also expose us to liability for the conduct of,
    or conditions caused by, others, or for our own acts even if we
    complied with applicable laws at the time such acts were
    performed. To date, environmental laws and regulations have not
    had a material adverse effect on our capital expenditures,
    earnings or competitive position. However, operating
    petrochemical manufacturing plants and distributing methanol
    exposes us to risks in connection with compliance with such laws
    and we cannot provide assurance that we will not incur material
    costs or liabilities in the future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that minimizing emissions and waste from our business
    activities is good business practice. Because carbon dioxide
    (CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>)
    is one of the largest waste streams from the methanol production
    process, we continually strive to increase the energy efficiency
    of our plants, which not only reduces the use of energy but also
    minimizes
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    emissions. The amount of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2
    </SUB>generated by the methanol production process depends upon
    the production technology (and hence often the plant age), the
    feedstock and any export of by-product hydrogen. We have reduced
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2
    </SUB>emission intensity by
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    18
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    about 39% between 1994 and 2007 through asset turnover, improved
    plant reliability and energy efficiency and emissions
    management. We also actively support global industry efforts to
    voluntarily reduce both energy consumption and
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    emissions. We participate in national voluntary reduction
    programs that exist in the countries where we have operations
    and continue to work with government and industry to develop
    equitable and workable emissions reduction options. Based upon
    our established metrics and our current knowledge of greenhouse
    gas emissions reduction requirements, we believe that there will
    be no material impact to our business from greenhouse gas
    related regulatory or economic instruments in 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have accrued $15&#160;million for asset retirement
    obligations for those sites where a reasonably definitive
    estimate of the fair value of the obligation can be made. During
    2007, cash expenditures applied against the asset retirement
    obligations accrual were $0.7&#160;million (2006&#160;&#151;
    $5&#160;million).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Responsible
    Care and Corporate Social Responsibility</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a member of the Canadian Chemical Producers&#146; Association
    in Canada (&#147;CCPA&#148;), the American Chemistry Council in
    the United States, ASIQUIM (Asociacion Gremial de Industriales
    Quimicos de Chile) in Chile and the Chemical Industry Council in
    New Zealand, we are committed to the ethics and principles of
    Responsible Care. Responsible Care is the umbrella under which
    we manage issues related to health, safety, environment,
    community involvement, security and emergency preparedness at
    each of our facilities and locations. Accordingly, we have
    established policies, systems and procedures to promote and
    encourage the responsible development, introduction,
    manufacture, transportation, storage, handling, distribution,
    use and ultimate disposal of chemicals and chemical products so
    as to minimize adverse effects on human health and well-being,
    the environment and the communities in which we operate.
    Responsible Care also guides decision-making related to our
    corporate development objectives.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The application of Responsible Care begins with our Board of
    Directors, where we have a Responsible Care Committee, and
    extends throughout our organization. Responsible Care is
    implemented through documented management systems. The
    effectiveness of many of these management systems is measured
    using an audit process that we apply to our business operations.
    This process is designed to ensure ongoing compliance, identify
    opportunities for improvement and provide for the sharing of
    best practices. These audits often include third-party observers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that Responsible Care helps us achieve strong
    financial performance, effective and innovative minimization of
    environmental impacts and improved quality of life, particularly
    in communities where our employees reside.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Some of the countries in which we operate have different
    standards than those applied in North America. Our policy is to
    adopt the more stringent of either Responsible Care practices or
    local regulatory or association requirements at all of our
    facilities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Corporate Social Responsibility (CSR) policy encompasses
    governance, employee engagement and development, community
    involvement and social investment. We believe that the tenets of
    CSR are a natural extension of our commitment to Responsible
    Care.
</DIV>
<A name='113'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INSURANCE</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The majority of our revenues are derived from the sale of
    methanol produced at our plants. Our business is subject to the
    normal hazards of methanol production operations that could
    result in damage to our plants. Under certain conditions,
    prolonged shutdowns of plants due to unforeseen equipment
    breakdowns, interruptions in the supply of natural gas or
    oxygen, power failures, loss of port facilities or any other
    event, including any event of force majeure, could adversely
    affect our revenues and operating income. We maintain
    operational and construction insurances, including business
    interruption insurance and delayed start-up insurance, subject
    to certain deductibles, that we consider to be adequate under
    the circumstances. However, there can be no assurance that we
    will not incur losses beyond the limits or outside the coverage
    of such 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. There can be no assurance that in
    the future we will be able to maintain existing coverage or that
    premiums will not increase substantially.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    19
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->
<A name='114'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">COMPETITION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The methanol industry is highly competitive. Methanol is a
    global commodity and customers base their purchasing decisions
    primarily on the delivered price of methanol and reliability of
    supply. The relative cost and availability of natural gas or
    coal feedstock and the efficiency of production facilities and
    distribution systems are also important competitive factors.
    Some of our competitors are not dependent on a single product
    for revenues and some have greater financial resources than we
    do. Our competitors include state-owned enterprises. These
    competitors may be better able than we are to withstand price
    competition and volatile market conditions. Because of our
    ability to service our customers globally, the reliability and
    cost-effectiveness of our distribution system and the enhanced
    service we provide customers, we believe we are well positioned
    to compete in each of the major international methanol markets.
</DIV>
<A name='115'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EMPLOYEES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2007, we had 829 employees.
</DIV>
<A name='116'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RISK
    FACTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The risks relating to our business are described under the
    heading <I>Risk Factors and Risk Management</I> in our 2007
    MD&#038;A, and are incorporated in this document by reference.
    Any of those risks, as well as risks and uncertainties currently
    not known to us, could adversely affect our business, financial
    condition or results of operations.
</DIV>
<A name='117'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DIVIDENDS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dividends are payable to the holders of common shares of the
    Company if, as and when declared by our Board of Directors and
    in such amounts as the Board of Directors may, from time to
    time, determine. The Company&#146;s current dividend policy is
    designed so that the Company maintains conservative financial
    management appropriate to the historically cyclical nature of
    the methanol industry to preserve financial flexibility and
    creditworthiness.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company pays a quarterly dividend on its common shares. The
    first quarterly dividend of $0.05 per share was paid on
    September&#160;30, 2002 and the dividend amount has been
    increased every year since then. The table below shows the
    amount and percentage increases to the dividend since its
    inception in 2002:
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-left: 10%; margin-right: 10%">
<TABLE border="0" width="80%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="75%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=align1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    <B>Quarterly<BR>
    </B>
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Dividend<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
    <B>Date</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Amount</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>% Increase</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    September. 30, 2002
</DIV>
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    0
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
    .05
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    n/a
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    September. 30, 2003
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
    .06
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20.0
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    September&#160;30, 2004
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
    .08
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33.0
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    June&#160;30, 2005
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
    .11
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37.5
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    June&#160;30, 2006
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
    .125
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.0
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    June&#160;30, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
    .14
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.0
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
    %
</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets out the total amount of regular
    dividends per share paid on the Company&#146;s common shares in
    each of the last three most recently completed financial years:
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-left: 10%; margin-right: 10%">
<TABLE border="0" width="80%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="82%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="14%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    <B>Regular Dividend<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
    <B>Financial Year Ended</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Paid Per Share</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    December&#160;31, 2005
</DIV>
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    0.410
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    December&#160;31, 2006
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.485
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    December&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.515
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    20
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->
<A name='118'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CAPITAL
    STRUCTURE</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company is authorized to issue an unlimited number of common
    shares without nominal or par value and 25,000,000 preferred
    shares without nominal or par value.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Holders of common shares are entitled to receive notice of and
    attend all annual and special meetings and to one vote in
    respect of each common share held, receive dividends if, as and
    when declared by our Board of Directors, and participate in any
    distribution of the assets of the Company in the event of
    liquidation, dissolution or winding up.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Preferred shares may be issued in one or more series and the
    directors may fix the designation, rights, restrictions,
    conditions and limitations attached to the shares of each such
    series. Currently, there are no preferred shares outstanding.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our bylaws provide that at any meeting of our shareholders a
    quorum shall be two persons present in person or represented by
    proxy holding shares representing not less than 20% of the votes
    entitled to be cast at the meeting. Nasdaq&#146;s listing
    standards require a quorum for shareholder meetings to be not
    less than
    33<FONT style="vertical-align: text-top; font-size: 70%;">1</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    of a company&#146;s outstanding voting shares. As a foreign
    private issuer and because our quorum requirements are
    consistent with practices in Canada, our home country, under
    Nasdaq rules we are not subject to Nasdaq&#146;s quorum
    requirement.
</DIV>
<A name='119'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RATINGS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth the ratings assigned to the
    Company&#146;s unsecured debt and bank facility by
    Standard&#160;&#038; Poor&#146;s Rating Services
    (&#147;S&#038;P&#148;), Moody&#146;s Investor Services, Inc.
    (&#147;Moody&#146;s&#148;) and Fitch Ratings (&#147;Fitch&#148;).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-left: 10%; margin-right: 10%">
<TABLE border="0" width="80%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="60%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="8%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="9%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutterleft -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutterright -->
    <TD width="8%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
    <B>Security</B>
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    <B>S&#038;P<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></B>
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    <B>Moody&#146;s<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></B>
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
    <B>Fitch<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Unsecured Notes
</DIV>
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    BBB&#8722;<BR>
    (stable)
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    Ba1<BR>
    (stable)
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
    BBB<BR>
    (stable)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="top" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 2pt; margin-left: 0%; width: 12%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=479 length=60 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (1)&#160;
</TD>
    <TD align="left">    S&#038;P&#146;s credit ratings are on a long-term debt rating
    scale that ranges from AAA to D, which represents the range from
    highest to lowest quality of such securities rated. A rating of
    BBB by S&#038;P is the fourth highest of eleven categories.
    According to the S&#038;P rating system, debt securities rated
    BBB have adequate capacity to pay interest and repay principal.
    While an obligor rated BBB normally exhibits adequate protection
    parameters, adverse economic conditions or changing
    circumstances are more likely to weaken capacity to meet its
    financial commitments. The addition of a plus (+) or minus
    (&#8722;) designation after a rating indicates the relative
    standing within a particular rating category.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (2)&#160;
</TD>
    <TD align="left">    Moody&#146;s credit ratings are on a long-term debt rating scale
    that ranges from Aaa to C, which represents the range from
    highest to lowest quality of such securities rated. A rating of
    Ba is the fifth highest of nine categories and denotes
    obligations judged to have speculative elements and its future
    cannot be considered as well-assured. The addition of a 1, 2 or
    3 modifier after a rating indicates the relative standing within
    a particular rating category. The modifier 1 indicates that the
    issue ranks in the higher end of its generic rating category,
    the modifier 2 indicates a mid-range ranking and the modifier 3
    indicates that the issue ranks in the lower end of its generic
    rating category.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (3)&#160;
</TD>
    <TD align="left">    Fitch credit ratings are on a long-term debt rating scale that
    ranges from AAA to D, which represents the range from highest to
    lowest quality of such securities rated. A rating of BBB by
    Fitch is the fourth highest of twelve categories and is assigned
    to debt securities considered to be good credit quality and low
    expectation of credit risk. The addition of a plus (+) or minus
    (&#8722;) designation after a rating indicates the relative
    standing within a particular rating category. The plus/minus
    grades are not added for the &#147;AAA&#148; category, or
    categories below &#147;CCC&#148;.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Credit ratings are intended to provide investors with an
    independent measure of the quality of an issue of securities.
    The foregoing ratings should not be construed as a
    recommendation to buy, sell or hold the securities, in as much
    as such ratings do not comment as to market price or suitability
    for a particular investor. There is no assurance that any rating
    will remain in effect for any given period of time or that any
    rating will not be revised or withdrawn entirely by a rating
    agency in the future if, in its judgment, circumstances so
    warrant, and if any such rating is so revised or withdrawn, we
    are under no obligation to update this Annual Information Form.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    21
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->
<A name='120'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MARKET
    FOR SECURITIES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our common shares are listed on the Toronto Stock Exchange in
    Canada (trading symbol: MX), on the Nasdaq Global Market in the
    United States (trading symbol: MEOH) and on the Foreign
    Securities Market of the Santiago Stock Exchange of Chile
    (trading symbol: Methanex). The following table sets out the
    market price ranges and trading volumes of our common shares on
    the Toronto Stock Exchange as well as for the Nasdaq Global
    Market for each month of our most recently completed financial
    year (January&#160;1, 2007 through December&#160;31, 2007).
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="18%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutterright -->
    <TD width="13%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD colspan="33" nowrap align="center" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
    <B>2007 Trading Volumes</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    <B>The Toronto Stock Exchange<BR>
    </B>
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    <B>Nasdaq Global Market<BR>
    </B>
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom">
    <BR>
    <B>Ticker: MX</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom">
    <BR>
    <B>Ticker: MEOH</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    <B>High<BR>
    </B>
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    <B>Low<BR>
    </B>
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    <B>Volume<BR>
    </B>
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    <B>High<BR>
    </B>
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    <B>Low<BR>
    </B>
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    <B>Volume<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(Cdn. dollars)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(Cdn. dollars)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(millions)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(US dollars)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(US dollars)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(millions)</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    January
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    34.87
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    29.50
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    13,015,554
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
    January
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    29.50
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    24.95
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    15,508,066
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    February
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32.98
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,316,165
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    February
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,856,192
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    March
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.46
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,459,938
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    March
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.65
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22.07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,474,189
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    April
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27.79
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.97
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,253,568
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    April
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.96
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,223,562
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    May
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29.84
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,662,507
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    May
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27.47
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23.47
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,858,345
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    June
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28.92
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,158,036
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    June
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26.91
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.28
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,923,347
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    July
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.05
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,903,726
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    July
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.08
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,511,831
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    August
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27.08
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,215,638
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    August
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.74
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,758,608
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    September
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.65
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,550,957
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    September
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.76
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20.71
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,238,660
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    October
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28.85
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.05
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,324,349
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    October
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30.44
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.94
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,586,578
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    November
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29.98
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,388,843
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    November
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30.88
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.86
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,991,651
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    December
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,643,916
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    December
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30.14
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26.03
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,246,128
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<A name='121'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NORMAL
    COURSE ISSUER BID</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On May&#160;7, 2007 the Company received approval to conduct a
    normal course issuer bid (the &#147;Bid&#148;) under which the
    Company had the ability but not the obligation to purchase up to
    8,709,978 of its common shares, representing ten percent (10%)
    of the total public float of its issued and outstanding common
    shares as at May&#160;7, 2007. The Bid commenced on May&#160;17,
    2007. The Bid expires on the earlier of the date that 8,709,978
    common shares have been purchased or May&#160;16, 2008. As at
    March&#160;18, 2008, 6,822,100&#160;common shares have been
    purchased under the Bid.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    22
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->
<A name='122'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DIRECTORS
    AND EXECUTIVE OFFICERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As at December&#160;31, 2007, the directors and executive
    officers of the Company owned, controlled or directed, directly
    or indirectly, 329,529&#160;common shares representing
    approximately 0.34% of the outstanding common shares as at
    December&#160;31, 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following tables set forth the names and places of residence
    of the directors and executive officers of the Company, the
    offices held by them in the Company, their current principal
    occupations, their principal occupations during the last five
    years and, in the case of the directors, the month and year in
    which they became directors:
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="33%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="20%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="27%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="14%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>Name and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>Principal Occupations and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Municipality of Residence</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Office</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Positions During Last Five Years</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Director
    Since<SUP style="font-size: 85%; vertical-align: text-top">(15)</SUP></B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-variant: SMALL-CAPS">Aitken, Bruce<BR>
    </FONT>Vancouver, British Columbia<BR>
    Canada
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Director and President<BR>
    &#038; Chief Executive Officer
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    President and Chief Executive Officer of the Company since May
    2004; prior thereto President and Chief Operating Officer of the
    Company since September 2003; prior thereto Senior Vice
    President, Asia Pacific of the Company since September 1999.
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    July 2004
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <FONT style="font-variant: SMALL-CAPS">Balloch,
    Howard</FONT><SUP style="font-size: 85%; vertical-align: text-top">(2)(3)(4)<BR>
    </SUP>Beijing<BR>
    China
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    President of The Balloch<BR>
    Group<SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP>
    since July 2001;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    December 2004
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-variant: SMALL-CAPS">Choquette, Pierre<BR>
    </FONT>Vancouver, British Columbia<BR>
    Canada
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Chairman of the Board<BR>
    and Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Corporate Director. Chairman of the Board and Chief Executive
    Officer of the Company from September 2003 to May 2004; prior
    thereto President and Chief Executive Officer of the Company
    since October 1994.
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    October 1994
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-variant: SMALL-CAPS">Cook,
    Phillip<SUP style="font-size: 85%; vertical-align: text-top">(1)(4)(5)<BR>
    </SUP></FONT>Austin, Texas<BR>
    USA
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Corporate Director. Senior Advisor to the Dow Chemical
    Company<SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP>
    (&#147;Dow Chemical&#148;) from June 2006 to January 2007; prior
    thereto Corporate Vice President, Strategic Development and New
    Ventures of Dow Chemical from 2005 to 2006; prior thereto Senior
    Vice President, Performance Chemicals and Thermosets of Dow
    Chemical since 2003.
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    May 2006
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-variant: SMALL-CAPS">Hamilton,
    Thomas</FONT><SUP style="font-size: 85%; vertical-align: text-top">(2)(4)(5)<BR>
    </SUP>Houston, Texas<BR>
    USA
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Co-Owner of Medora Investments
    LLC<SUP style="font-size: 85%; vertical-align: text-top">(8)</SUP>
    since April 2003; prior thereto Chairman, President and Chief
    Executive officer of EEX Corporation from January 1997 to
    November 2002.
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    May 2007
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    23
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="33%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="20%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="27%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="14%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>Name and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>Principal Occupations and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Municipality of Residence</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Office</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Positions During Last Five Years</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Director
    Since<SUP style="font-size: 85%; vertical-align: text-top">(15)</SUP></B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-variant: SMALL-CAPS">Mahaffy,
    Douglas</FONT><SUP style="font-size: 85%; vertical-align: text-top">(2)(3)<BR>
    </SUP>Toronto, Ontario<BR>
    Canada
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Chairman of McLean Budden
    Limited<SUP style="font-size: 85%; vertical-align: text-top">(9)</SUP>
    since February 29, 2008; prior thereto Chairman and Chief
    Executive Officer of McLean Budden Limited since September 2006;
    prior thereto Chairman, President and Chief Executive Officer of
    McLean Budden since October
    1989.<SUP style="font-size: 85%; vertical-align: text-top">(10)</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    May 2006
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-variant: SMALL-CAPS">Poole, A.
    Terence</FONT><SUP style="font-size: 85%; vertical-align: text-top">(1)(2)(4)<BR>
    </SUP>Calgary, Alberta<BR>
    Canada
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Corporate Director. Executive Vice President, Corporate Strategy
    and Development of NOVA Chemicals
    Corporation<SUP style="font-size: 85%; vertical-align: text-top">(11)</SUP>
    from May 2000 to June 2006.
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    September 2003, and from February 1994 to June 2003
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-variant: SMALL-CAPS">Reid,
    John</FONT><SUP style="font-size: 85%; vertical-align: text-top">(1)(3)(5)<BR>
    </SUP>Vancouver, British Columbia<BR>
    Canada
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Corporate Director. President and Chief Executive Officer of
    Terasen
    Inc.<SUP style="font-size: 85%; vertical-align: text-top">(12)</SUP>
    from November 1997 to November 2005.
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    September 2003
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-variant: SMALL-CAPS">Rennie,
    Janice</FONT><SUP style="font-size: 85%; vertical-align: text-top">(1)(3)<BR>
    </SUP>Edmonton, Alberta<BR>
    Canada
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Corporate Director. Senior Vice President, Human Resources and
    Organizational Effectiveness for EPCOR Utilities
    Inc.<SUP style="font-size: 85%; vertical-align: text-top">(13)</SUP>
    from 2004 to 2005; prior thereto Principal of Rennie &#038;
    Associates.
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    May 2006
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-variant: SMALL-CAPS">Sloan,
    Monica</FONT><SUP style="font-size: 85%; vertical-align: text-top">(2)(3)(5)<BR>
    </SUP>Calgary, Alberta<BR>
    Canada
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Chief Executive Officer of Intervera
    Ltd.<SUP style="font-size: 85%; vertical-align: text-top">(14)</SUP>
    since January, 2004; prior thereto an Independent Consultant for
    ME Sloan Associates since October 1999.
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    September 2003
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-variant: SMALL-CAPS">Sweeney,
    Graham</FONT><SUP style="font-size: 85%; vertical-align: text-top">(1)(4)(5)<BR>
    </SUP>Sarnia, Ontario<BR>
    Canada
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Corporate Director. Prior to October 1995 was President of Dow
    Chemical Canada Inc.
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    July 1994
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 2pt; margin-left: 0%; width: 12%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=479 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (1)&#160;
</TD>
    <TD align="left">    Member of the Audit, Finance and Risk Committee.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (2)&#160;
</TD>
    <TD align="left">    Member of the Corporate Governance Committee.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (3)&#160;
</TD>
    <TD align="left">    Member of the Human Resources Committee.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (4)&#160;
</TD>
    <TD align="left">    Member of the Public Policy Committee.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (5)&#160;
</TD>
    <TD align="left">    Member of the Responsible Care Committee.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (6)&#160;
</TD>
    <TD align="left">    The Balloch Group is a private consulting firm specializing in
    Chinese and other Asian markets.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (7)&#160;
</TD>
    <TD align="left">    The Dow Chemical Company provides chemical, plastic and
    agricultural products and services.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (8)&#160;
</TD>
    <TD align="left">    Medora Investments LLC is a private investment firm.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (9)&#160;
</TD>
    <TD align="left">    McLean Budden Limited is an investment management firm that
    administers more than $40&#160;billion in assets for pension,
    foundation and private clients in Canada, the United States,
    Europe and Asia.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (10)&#160;
</TD>
    <TD align="left">    Mr.&#160;Mahaffy was a director of Stelco Inc., a Canadian steel
    producer, from 1993 to March 2006. In January 2004, Stelco Inc.
    announced that it had obtained an Order of the Ontario Superior
    Court of Justice to initiate a court-supervised restructuring
    under the Companies&#146; Creditors Arrangement Act
    (&#147;CCAA&#148;). Stelco Inc. emerged from the protection of
    the CCAA in April 2006 and was acquired in October 2007 by a
    wholly-owned subsidiary of United States Steel Corporation.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    24
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (11)&#160;
</TD>
    <TD align="left">    NOVA Chemicals Corporation is a commodity chemicals company.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (12)&#160;
</TD>
    <TD align="left">    Terasen Inc. is an energy distribution and transportation
    company.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (13)&#160;
</TD>
    <TD align="left">    EPCOR Utilities Inc. builds, owns and operates power plants,
    electrical transmission and distribution networks, water and
    wastewater treatment facilities and infrastructure in Canada and
    the United States.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (14)&#160;
</TD>
    <TD align="left">    Intervera Ltd. is a company that provides data quality products
    and services to the energy industry.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (15)&#160;
</TD>
    <TD align="left">    The directors of the Company are elected each year at the annual
    general meeting of the company and hold office until the close
    of the next annual general meeting or until their successors are
    elected or appointed. The next annual general meeting of the
    Company will occur on May&#160;6, 2008.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="32%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="20%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="44%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>Name and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>Principal Occupations and<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Municipality of Residence</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Office</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Positions During Last Five Years</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-variant: SMALL-CAPS">Cameron, Ian P.<BR>
    </FONT>Vancouver, British Columbia<BR>
    Canada
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Senior Vice President,<BR>
    Finance and Chief<BR>
    Financial Officer
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Senior Vice President, Finance and<BR>
    Chief Financial Officer of the Company since January 1, 2003.
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-variant: SMALL-CAPS">Floren, John<BR>
    </FONT>Eastham, Massachusetts<BR>
    USA
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Senior Vice President,<BR>
    Global Marketing and Logistics
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Senior Vice President, Global Marketing and Logistics of the
    Company since June 2005; prior thereto Director, Marketing
    &#038; Logistics North America of the Company since May 2002.
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-variant: SMALL-CAPS">Gordon, John K<BR>
    </FONT>Vancouver, British Columbia<BR>
    Canada
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Senior Vice President, Corporate Resources
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Senior Vice President, Corporate Resources of the Company since
    September 1999.
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-variant: SMALL-CAPS">Macdonald, Michael G.<BR>
    </FONT>Vancouver, British Columbia<BR>
    Canada
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Senior Vice President, Corporate Development
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Senior Vice President, Corporate Development of the Company
    since January 2004; prior thereto Senior Vice President,
    Technology and Emerging Markets of the Company since October
    2002.
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-variant: SMALL-CAPS">Milner, Randy M.<BR>
    </FONT>Vancouver, British Columbia<BR>
    Canada
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Senior Vice President, General Counsel and Corporate Secretary
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Senior Vice President, General Counsel and Corporate Secretary
    of the Company since October 2002.
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <FONT style="font-variant: SMALL-CAPS">Schiodtz, Paul<BR>
    </FONT>Santiago<BR>
    Chile
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Senior Vice President, Latin America
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Senior Vice President, Latin America of the Company since
    January 1, 2006; prior thereto Director, Finance Latin America
    of Methanex Chile Ltd. since May 1999.
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-variant: SMALL-CAPS">Weake, Harvey<BR>
    </FONT>Auckland<BR>
    New Zealand
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Senior Vice President,<BR>
    Asia Pacific
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Senior Vice President, Asia Pacific of the Company since
    December, 2005; prior thereto Vice President, Global
    Manufacturing/Managing Director of Methanex New Zealand since
    July 2005; prior thereto Vice President, Manufacturing/Managing
    Director of Methanex New Zealand since December, 2003; prior
    thereto Director, Manufacturing, Asia Pacific of the Company
    since April 2000.
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-variant: SMALL-CAPS">Yanez, Jorge<BR>
    </FONT>Port of Spain<BR>
    Trinidad
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Senior Vice President, Caribbean &#038; Global Manufacturing
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Senior Vice President, Caribbean &#038; Global Manufacturing of
    the Company since October 2005; prior thereto Vice President,
    Project Management of Methanex Management Inc. since December
    2004; prior thereto Director, Project Development of Methanex
    Management Inc. since January 2001.
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    25
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->
<A name='123'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEREST
    OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Since the commencement of our most recently completed financial
    year, and for the three most recently completed financial years,
    no director or executive officer of the Company, no person or
    company that beneficially owns, controls or directs, directly or
    indirectly, more than 10% of the Company&#146;s voting
    securities or any associate or affiliate of such persons, has
    had any material interest in any transaction involving the
    Company.
</DIV>
<A name='124'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXPERTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    KPMG LLP are the auditors of the Company and have confirmed that
    they are independent with respect to the Company within the
    meaning of the Rules of Professional Conduct of the Institute of
    Chartered Accountants of British Columbia and within the meaning
    of the <I>US Securities Act</I> of 1933 and the applicable rules
    and regulations thereunder.
</DIV>
<A name='125'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">LEGAL
    PROCEEDINGS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have commenced an arbitration proceeding against one of our
    natural gas suppliers in Argentina for failure to deliver
    natural gas as they are contractually required to do. (Refer to
    the <I>Natural Gas Contracts with Suppliers in Argentina</I>
    section of this document for more information). In early March
    2008, this supplier applied to have the arbitration proceeding
    expanded to permit it to seek, among other things, a declaration
    that the natural gas supply contracts between this supplier and
    the Company are terminated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Other than the arbitration proceeding discussed immediately
    above, we are not a party to, and our property is not the
    subject of, any material legal proceedings that are currently in
    place or that we know to be contemplated.
</DIV>
<A name='126'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">AUDIT
    COMMITTEE INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: 'Times New Roman', Times">The
    Audit Committee Charter</FONT></U></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee is appointed by the Board to assist the Board in
    fulfilling its oversight responsibility relating to: the
    integrity of the Company&#146;s financial statements; the
    financial reporting process; the systems of internal accounting
    and financial controls; the professional qualifications and
    independence of the external auditors; the performance of the
    external auditors; risk management processes; financing plans;
    pension plans; and compliance by the Company with ethics
    policies and legal and regulatory requirements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee&#146;s Mandate sets out its responsibilities and
    duties. A copy of the Committee&#146;s Mandate is attached here
    as Appendix &#147;A&#148;.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: 'Times New Roman', Times">Composition
    of the Audit Committee</FONT></U></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee is comprised of five directors: A. Terence Poole
    (Chair), Phillip Cook, John Reid, Janice Rennie and Graham
    Sweeney. Each Committee member is independent and financially
    literate. Mr.&#160;Poole is designated as the &#147;audit
    committee financial expert.&#146;&#146; The United States
    Securities and Exchange Commission has indicated that the
    designation of Mr.&#160;Poole as an audit committee financial
    expert does not make Mr.&#160;Poole an &#147;expert&#148; for
    any other purpose, impose any duties, obligations or liability
    on Mr.&#160;Poole that are greater than those imposed on members
    of the Committee and Board who do not carry this designation or
    affect the duties, obligations or liability of any other member
    of the Committee.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: 'Times New Roman', Times">Relevant
    Education and Experience</FONT></U></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a brief summary of the education and experience
    of each member of the Committee that is relevant to the
    performance of his or her responsibilities as a member of the
    Committee, including any education or experience that has
    provided the member with an understanding of the accounting
    principles used by the Company to prepare its annual and interim
    financial statements.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Mr.&#160;A.
    Terence Poole</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr. Poole is a corporate director. Prior to his retirement in
    June 2006, he was Executive Vice President, Corporate Strategy
    and Development of NOVA Chemicals Corporation
    (&#147;NOVA&#148;), a commodity chemical company with
    international operations. Prior to that position, Mr.&#160;Poole
    was the Executive Vice President, Finance and Strategy of NOVA
    from 1998 to 2000, Senior Vice President and Chief Financial
    Officer of NOVA Corporation from 1994 to 1998 and held other
    senior financial positions with NOVA Corporation from 1988. He
    has worked at other large public companies in various financial
    and business management capacities since 1971.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    26
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr. Poole is a Chartered Accountant and holds a Bachelor of
    Commerce degree from Dalhousie University. Mr.&#160;Poole is a
    Member of the Canadian, Quebec and Ontario Institutes of
    Chartered Accountants and is also a Member of the Financial
    Executives Institute.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr. Poole serves on the board of Pengrowth Corporation and is a
    member of their Audit Committee. He also serves on the board of
    Synenco Energy Inc. and is Chair of their Audit and Risk
    Committee and a member of their Finance Committee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr. Poole has served on the Committee since September 2003 as
    well as from February 1994 to June 2003.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr. Poole has chaired the Committee since May 2006.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Mr.&#160;Phillip
    Cook</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr. Cook is a corporate director. He spent the majority of his
    career working for The Dow Chemical Company (&#147;Dow
    Chemical&#148;), which provides chemical, plastic and
    agricultural products and services. His most recent position at
    Dow Chemical was Senior Advisor from June 2006 until his
    retirement in January 2007 and from 2005 to 2006, he was
    Corporate Vice President, Strategic Development and New
    Ventures. Other senior positions at Dow Chemical included Senior
    Vice President, Performance Chemicals and Thermosets for two
    years and Business Vice President, Epoxy Products and
    Intermediates for three years. Mr.&#160;Cook&#146;s experience
    at Dow Chemical provided him with significant experience and
    exposure to accounting and financial reporting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr. Cook holds a Bachelor of Mechanical Engineering from the
    University of Texas at Austin and is a member of the College of
    Engineering Foundation advisory board of the University of Texas
    at Austin.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr. Cook has served on the Committee since May 2006.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Mr.&#160;John
    Reid</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr. Reid is a corporate director. He held the position of
    President and Chief Executive Officer of Terasen Inc., an energy
    distribution and transportation company, from November 1997 to
    November 2005, and prior to that was Executive Vice President
    and Chief Financial Officer of Terasen Inc. Prior to joining
    Terasen, Mr.&#160;Reid was the President and Chief Executive
    Officer of Scott Paper. He also held various other senior
    positions at Scott Paper, including Corporate Vice President,
    Finance and Controller.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr. Reid is a Chartered Accountant and holds an economics degree
    from the University of Newcastle upon Tyne in the United Kingdom
    and is a Fellow of the British Columbia, England and Wales
    Institutes of Chartered Accountants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr. Reid also serves on the board of Finning International Inc.,
    is a member of their Audit Committee and in the past was
    designated as its &#147;financial expert.&#148; Mr.&#160;Reid
    also sits on the board of private companies, Corix
    Infrastructure Inc. and Corix Water Products Inc.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr. Reid has served on the Committee since September 2003.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Ms.&#160;Janice
    Rennie</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Ms. Rennie is a corporate director. From 2004 to 2005, Ms Rennie
    was Senior Vice President, Human Resources and Organizational
    Effectiveness for EPCOR Utilities Inc. EPCOR builds, owns and
    operates power plants, electrical transmission and distribution
    networks, water and wastewater treatment facilities and
    infrastructure in Canada and the United States. Prior to 2004,
    Ms.&#160;Rennie was Principal of Rennie&#160;&#038; Associates,
    which provided investment and related advice to small and
    mid-sized companies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Ms. Rennie holds a Bachelor of Commerce degree from the
    University of Alberta and is a Fellow of the Institute of
    Chartered Accountants of Alberta.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Ms. Rennie serves on the board of Matrikon Inc. and is Chair of
    their Audit Committee. She also serves on the boards of Teck
    Cominco Limited and West Fraser Timber Co. Ltd. and is a member
    of their Audit Committees. Ms.&#160;Rennie also serves on the
    board of two private companies: Greystone Capital Management
    Inc. and bcIMC Hospitality Group Inc. and is Chair of the
    latter&#146;s Audit Committee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Ms. Rennie has served on the Committee since May 2006.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    27
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Mr.&#160;Graham
    Sweeney</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr. Sweeney is a corporate director. During his career at Dow
    Chemical Company, Mr.&#160;Sweeney held the position of
    President of Dow Chemical Canada Inc. from&#160;1993
    to&#160;1995 and prior to that held vice president and senior
    executive positions with The Dow Chemical Company in Asia from
    1981 to 1987 and with global responsibilities from 1988 to 1992.
    In so doing, he acquired significant experience and exposure to
    accounting and financial reporting issues.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr. Sweeney holds a Bachelor of Science (Chemical Engineering)
    degree from the University of Natal, South Africa.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr. Sweeney has served on the Committee since May 1996.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: 'Times New Roman', Times">Pre-Approval
    Policies and Procedures</FONT></U></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee annually reviews and approves the terms and scope
    of the external auditors&#146; engagement. The Committee
    oversees the Audit and Non-Audit Pre-Approval Policy which sets
    forth the procedures and the conditions pursuant to which
    permissible services proposed to be performed by KPMG LLP, the
    Company&#146;s external auditors, are pre-approved. The
    Committee has delegated to the Chair of the Committee
    pre-approval authority for any services not previously approved
    by the Committee. All such services approved by the Chair of the
    Committee are subsequently reviewed by the Committee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All non-audit service engagements, regardless of the cost
    estimate, are required to be coordinated and approved by the
    Chief Financial Officer to further ensure that adherence to this
    policy is monitored.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: 'Times New Roman', Times">Audit
    and Non-Audit Fees Paid to the Independent
    Auditors</FONT></U></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    KPMG LLP, Chartered Accountants, Vancouver, are the independent
    auditors of the Company. The holders of the Company&#146;s
    common shares have resolved to have the directors of the Company
    determine the auditor&#146;s remuneration. Fees to KPMG LLP
    during the years ended December&#160;31, 2007 and
    December&#160;31, 2006 were as follows:
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-left: 15%; margin-right: 15%">
<TABLE border="0" width="70%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="78%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
    <B>US$000&#146;s</B>
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    <B>2007</B>
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    <B>2006</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Audit Fees
</DIV>
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    1,810
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    1,645
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Audit-Related Fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    146
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Tax Fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    393
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    397
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    All Other Fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Total</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2,245</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2,197</B>
</TD>
<TD nowrap align="left" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The nature of each category of fees is described below.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Audit
    Fees</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Audit fees were paid for professional services rendered by the
    external auditors for the audit of the Company&#146;s
    consolidated financial statements; statutory audits of the
    financial statements of the Company&#146;s subsidiaries;
    quarterly reviews of the Company&#146;s financial statements;
    consultations as to the accounting or disclosure treatment of
    transactions reflected in the financial statements; and services
    associated with registration statements, prospectuses, periodic
    reports and other documents filed with securities regulators.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Audit fees paid in 2007 are in respect of an &#147;integrated
    audit&#148; performed by KPMG LLP. The integrated audit
    encompasses an opinion on the fairness of presentation of the
    Company&#146;s financial statements as well as an opinion on the
    effectiveness of the Company&#146;s internal controls over
    financial reporting.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Audit-Related
    Fees</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Audit-related fees were paid for professional services rendered
    by the auditors for financial audits of employee benefit plans;
    procedures and audit or attest services not required by statute
    or regulation; and consultations as to the accounting or
    disclosure treatment of other transactions.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    28
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Tax
    Fees</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Tax fees were paid for professional services rendered for tax
    compliance, tax advice and tax planning. These services
    consisted of: tax compliance, including the review of tax
    returns; assistance in completing routine tax schedules and
    calculations; and tax planning and advisory services relating to
    common forms of domestic and international taxation.
</DIV>

<DIV style="margin-top: 27pt; font-size: 1pt">&nbsp;</DIV>
<A name='127'>
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TRANSFER
    AGENT AND REGISTRAR</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our principal transfer agent is CIBC Mellon Trust&#160;Company
    at its offices in Vancouver, British Columbia. Our co-transfer
    agent in the United States for our common shares is Registrar
    and Transfer Company at its offices in New Jersey.
</DIV>

<DIV style="margin-top: 27pt; font-size: 1pt">&nbsp;</DIV>
<A name='128'>
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CONTROLS
    AND PROCEDURES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company&#146;s disclosure controls and procedures are
    described under the heading <I>Controls and Procedures</I> in
    our 2007 MD&#038;A and are incorporated in this AIF by reference.
</DIV>

<DIV style="margin-top: 27pt; font-size: 1pt">&nbsp;</DIV>
<A name='129'>
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CODE OF
    ETHICS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have a written code of ethics that applies to our directors,
    officers and employees, including our principal executive
    officer, principal financial officer and principal accounting
    officer. A copy of our code, entitled &#147;Code of Business
    Conduct&#148;, can be found on our website at
    <U>www.methanex.com</U>.
</DIV>

<DIV style="margin-top: 27pt; font-size: 1pt">&nbsp;</DIV>
<A name='130'>
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ADDITIONAL
    INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Additional information relating to the Company, including
    directors&#146; and officers&#146; remuneration and
    indebtedness, principal holders of the Company&#146;s securities
    and securities authorized for issuance under equity compensation
    plans, is contained in the Company&#146;s Information Circular
    dated February&#160;29, 2008 relating to the Annual General
    Meeting of the Company to be held on May&#160;6, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Additional financial information about the Company is provided
    in the Company&#146;s financial statements and Management&#146;s
    Discussion and Analysis for the year ended December&#160;31,
    2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Copies of the documents referred to above are available on the
    SEDAR website at <U>www.sedar.com</U> and may also be obtained
    upon request from:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 10%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Methanex Corporation
</DIV>

<DIV align="left" style="margin-left: 10%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Randy Milner
</DIV>

<DIV align="left" style="margin-left: 10%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Senior Vice President, General Counsel and Corporate Secretary
</DIV>

<DIV align="left" style="margin-left: 10%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1800 Waterfront Centre
</DIV>

<DIV align="left" style="margin-left: 10%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    200 Burrard Street
</DIV>

<DIV align="left" style="margin-left: 10%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Vancouver, British Columbia V6C 3M1
</DIV>

<DIV align="left" style="margin-left: 10%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Telephone: 604 661 2600
</DIV>

<DIV align="left" style="margin-left: 10%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Facsimile: 604 661 2602
</DIV>

<DIV align="left" style="margin-left: 10%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="white-space: nowrap">E-mail:</FONT>
    rmilner@methanex.com
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Additional information relating to the Company may be found on
    the SEDAR website at <U>www.sedar.com</U> and on the United
    States Securities and Exchange Commission website at
    <U>www.sec.gov</U>.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    29
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->
<A name='131'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">APPENDIX
    &#147;A&#148;</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>METHANEX CORPORATION</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>AUDIT, FINANCE AND RISK COMMITTEE MANDATE</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">1.&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Creation</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A committee of the directors to be known as the &#147;Audit,
    Finance and Risk Committee&#148; (hereinafter referred to as the
    &#147;Committee&#148;) is hereby established.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">2.&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Purpose
    and Responsibility</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee is appointed by the Board to assist the Board in
    fulfilling its oversight responsibility relating to: the
    integrity of the Corporation&#146;s financial statements; the
    financial reporting process; the systems of internal accounting
    and financial controls; the professional qualifications and
    independence of the external auditor&#146;s; the performance of
    the external auditors; risk management processes; financing
    plans; pension plans; and compliance by the Corporation with
    ethics policies and legal and regulatory requirements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee&#146;s role is one of oversight. It is the
    responsibility of the Corporation&#146;s management to plan
    audits and to prepare consolidated financial statements in
    accordance with generally accepted accounting principles, and it
    is the responsibility of the Corporation&#146;s external auditor
    to audit these financial statements. Therefore, each member of
    the Committee, in exercising his or her business judgment, shall
    be entitled to rely on the integrity of those persons and
    organizations within and outside the Corporation from whom he or
    she receives information, and on the accuracy of the financial
    and other information provided to the Committee by such persons
    or organizations. The Committee does not provide any expert or
    other special assurances as to the Corporation&#146;s financial
    statements or any expert or professional certification as to the
    work of the Corporation&#146;s external auditor. In addition,
    all members of the Committee are equally responsible for
    discharging the responsibilities of the Committee and the
    designation of one member as an &#147;audit committee financial
    expert&#148; pursuant to the Applicable Rules (as defined below)
    is not a statement of intention by the Corporation to impose
    upon such designee duties, obligations or liability greater than
    those imposed on such a director in the absence of such
    designation.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">3.&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Committee
    Membership</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="46%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="52%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Composition of the Committee
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    a)&#160;&#160;&#160;The Committee must be composed of a minimum
    of three directors.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Appointment and Term of Members
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    b)&#160;&#160;&#160;The members of the Committee must be
    appointed or reappointed at the organizational meeting of the
    Board concurrent with each Annual Meeting of the shareholders of
    the Corporation. Each member of the Committee continues to be a
    Committee member until a successor is appointed, unless he or
    she resigns or is removed by the Board or ceases to be a
    director of the Corporation. Where a vacancy occurs at any time
    in the membership of the Committee, it may be filled by the
    Board and shall be filled by the Board if the membership of the
    Committee is less than three directors as a result of the
    vacancy.
</DIV>
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    30
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="46%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="52%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Financial Literacy and Independence
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    c)&#160;&#160;&#160;Each member of the Committee shall meet the
    independence and experience requirements, and at least one
    member of the Committee shall qualify as an &#147;audit
    committee financial expert&#148;. These requirements shall be in
    accordance with the applicable rules and regulations (the
    &#147;Applicable Rules&#148;) of the Canadian Securities
    Administrators, the U.S. Securities and Exchange Commission, the
    Toronto Stock Exchange and the Nasdaq Stock Market.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Appointment of Chairman and Secretary
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    d)&#160;&#160;&#160;The Board or, if it does not do so, the
    members of the Committee, must appoint one of their members as
    Chairman. If the Chairman of the Committee is not present at any
    meeting of the Committee, the Chairman of the meeting must be
    chosen by the Committee from the Committee members present. The
    Chairman presiding at any meeting of the Committee has a
    deciding vote in case of deadlock. The Committee must also
    appoint a Secretary who need not be a director.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Use of Outside Experts
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    e)&#160;&#160;&#160;Where Committee members believe that, to
    properly discharge their fiduciary obligations to the
    Corporation, it is necessary to obtain the advice of independent
    legal, accounting, or other experts, the Chairman shall, at the
    request of the Committee, engage the necessary experts at the
    Corporation&#146;s expense. The Board must be kept apprised of
    both the selection of the experts and the experts&#146; findings
    through the Committee&#146;s regular reports to the Board.
</DIV>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">4.&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Meetings</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="46%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="52%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Time, Place and Procedure of Meetings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    a)&#160;&#160;&#160;The time and place of Committee meetings,
    and the procedures for the conduct of such meetings, shall be
    determined from time to time by Committee members, provided that:
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    Quorum
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -40pt; margin-left: 40pt">
    &#160;&#160;&#160;&#160;&#160;&#160;i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;a
    quorum for meetings must be three members, present in person or
    by telephone or other telecommunication device that permits all
    persons participating in the meeting to communicate with each
    other;
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    Quarterly Meetings
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -40pt; margin-left: 40pt">
    &#160;&#160;&#160;&#160;&#160;&#160;ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;the
    Committee must meet at least quarterly;
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Notice of Meetings
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -40pt; margin-left: 40pt">
    &#160;&#160;&#160;&#160;&#160;&#160;iii)&#160;&#160;&#160;&#160;&#160;&#160;notice
    of the time and place of every meeting must be given in writing
    or by electronic transmission to each member of the Committee
    and the external auditors of the Corporation at least 24 hours
    prior to the Committee meeting;
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Waiver of Notice
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -40pt; margin-left: 40pt">
    &#160;&#160;&#160;&#160;&#160;&#160;iv)&#160;&#160;&#160;&#160;&#160;&#160;a
    member may waive notice of a meeting, and attendance at the
    meeting is a waiver of notice of the meeting, except where a
    member attends a meeting for the express purpose of objecting to
    the transaction of any business on the grounds that the meeting
    is not lawfully called;
</DIV>
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    31
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="46%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="52%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Attendance of External Auditors
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -40pt; margin-left: 40pt">
    &#160;&#160;&#160;&#160;&#160;&#160;v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;the
    external auditors are entitled to attend each meeting at the
    Corporation&#146;s expense;
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Meeting with Financial Management
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -40pt; margin-left: 40pt">
    &#160;&#160;&#160;&#160;&#160;&#160;vi)&#160;&#160;&#160;&#160;&#160;&#160;the
    Committee will, at least annually, meet with senior financial
    management, including the Chief Financial Officer and the
    Corporate Controller, without other members of management
    present;
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Meeting without Management
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -40pt; margin-left: 40pt">
    &#160;&#160;&#160;&#160;&#160;&#160;vii)&#160;&#160;&#160;&#160;&#160;each
    regular meeting of the Committee will conclude with a session
    without any management personnel present;
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Calling a Meeting
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -40pt; margin-left: 40pt">
    &#160;&#160;&#160;&#160;&#160;&#160;viii)&#160;&#160;&#160;&#160;a
    meeting of the Committee may be called by the Secretary of the
    Committee on the direction of the Chairman or Chief Executive
    Officer of the Corporation, by any member of the Committee or
    the external auditors; and
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Committee Determines Attendees
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -40pt; margin-left: 40pt">
    &#160;&#160;&#160;&#160;&#160;&#160;ix)&#160;&#160;&#160;&#160;&#160;notwithstanding
    the provisions of this paragraph, the Committee has the right to
    request any officer or employee of the Corporation or the
    Corporation&#146;s outside counsel or external auditor to be
    present or not present at any part of the Committee meeting;
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Reports to the Board
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    b)&#160;&#160;&#160;The Committee shall make regular reports to
    the Board.
</DIV>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">5.&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Duties
    and Responsibilities of the Committee</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">1)&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Financial
    Statements and Disclosure</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="46%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="52%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Annual Report and Disclosures*
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    a)&#160;&#160;&#160;Review and discuss with management and the
    external auditor, and recommend for approval by the Board, the
    Corporation&#146;s annual report, Annual Information Form,
    audited Annual Consolidated Financial Statements, annual
    Management&#146;s Discussion and Analysis, Management
    Information Circular, and any reports on adequacy of internal
    controls, and all financial statements in prospectuses or other
    disclosure documents.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    Prospectuses*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    b)&#160;&#160;&#160;Review and recommend for approval by the
    Board all prospectuses and documents which may be incorporated
    by reference into a prospectus, including without limitation,
    material change reports and proxy circulars.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Quarterly Interim Reports and Disclosures
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    c)&#160;&#160;&#160;Review, discuss with management and the
    external auditor and approve the Corporation&#146;s interim
    reports, including the quarterly financial statements, interim
    Management&#146;s Discussion and Analysis and press releases on
    quarterly and year end financial results, prior to public
    release.
</DIV>
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    32
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="46%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="52%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Accounting Policies and Estimates
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    d)&#160;&#160;&#160;Review and approve all accounting policies
    and estimates that would have a significant effect on the
    Corporation&#146;s financial statements, and any changes to such
    policies. This review will include a discussion with management
    and the external auditor concerning:
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -40pt; margin-left: 40pt">
    &#160;&#160;&#160;&#160;&#160;&#160;i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;any
    areas of management judgment and estimates that may have a
    critical effect on the financial statements;
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -40pt; margin-left: 40pt">
    &#160;&#160;&#160;&#160;&#160;&#160;ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;the
    effect of using alternative accounting treatments which are
    acceptable under Canadian and US GAAP;
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -40pt; margin-left: 40pt">
    &#160;&#160;&#160;&#160;&#160;&#160;iii)&#160;&#160;&#160;&#160;&#160;&#160;the
    appropriateness, acceptability, and quality of the
    Corporation&#146;s accounting policies; and
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -40pt; margin-left: 40pt">
    &#160;&#160;&#160;&#160;&#160;&#160;iv)&#160;&#160;&#160;&#160;&#160;&#160;any
    material written communication between the external auditor and
    management, such as the annual management letter and the
    schedule of unadjusted differences.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    Non-GAAP&#160;Financial Information
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    e)&#160;&#160;&#160;Discuss with management the use of &#147;pro
    forma&#148; or &#147;non-GAAP information&#148; in the
    Corporation&#146;s continuous disclosure documents.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Regulatory and Accounting Initiatives
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    f)&#160;&#160;&#160;Discuss with management and the external
    auditor the effect of regulatory and accounting initiatives as
    well as the use of off-balance sheet structures on the
    Corporation&#146;s financial statements.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    Litigation
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    g)&#160;&#160;&#160;Discuss with the Corporation&#146;s General
    Counsel, and with external legal counsel if necessary, any
    litigation, claim or other contingency (including tax
    assessments), that could have a material effect on the financial
    position or operating results of the Corporation, and the manner
    in which these matters have been disclosed in the financial
    statements.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    Financing Plans
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    h)&#160;&#160;&#160;Review the financing plans and objectives of
    the Corporation, as received from and discussed with management.
</DIV>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">2)&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Risk
    Management and Internal Control</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="46%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="52%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Risk Management Policies*
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    a)&#160;&#160;&#160;Review and recommend for approval by the
    Board changes considered advisable, after consultation with
    management, to the Corporation&#146;s policies relating to:
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -40pt; margin-left: 40pt">
    &#160;&#160;&#160;&#160;&#160;&#160;i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;the
    risks inherent in the Corporation&#146;s businesses, facilities
    and strategic direction;
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -40pt; margin-left: 40pt">
    &#160;&#160;&#160;&#160;&#160;&#160;ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;financial
    risks including foreign exchange, interest rate and investment
    of cash;
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -40pt; margin-left: 40pt">
    &#160;&#160;&#160;&#160;&#160;&#160;iii)&#160;&#160;&#160;&#160;&#160;&#160;overall
    risk management strategies and the financing of risks, including
    insurance coverage in the context of competitive and operational
    considerations;
</DIV>
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    33
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="46%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="52%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -40pt; margin-left: 40pt">
    &#160;&#160;&#160;&#160;&#160;&#160;iv)&#160;&#160;&#160;&#160;&#160;the
    risk retention philosophy and the resulting uninsured exposure
    of the Corporation; and
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -40pt; margin-left: 40pt">
    &#160;&#160;&#160;&#160;&#160;&#160;v)&#160;&#160;&#160;&#160;&#160;shipping
    risk.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Risk Management Processes
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    b)&#160;&#160;&#160;Review with management at least annually the
    Corporation&#146;s processes to identify, monitor, evaluate, and
    address important enterprise-wide strategic and business risks.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Adequacy of Internal Controls
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    c)&#160;&#160;&#160;Review at least quarterly, the results of
    management&#146;s evaluation of the adequacy and effectiveness
    of internal controls within the Corporation in connection with
    the certifications signed by the CEO and CFO. Management&#146;s
    evaluation will include a review of:
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -40pt; margin-left: 40pt">
    &#160;&#160;&#160;&#160;&#160;&#160;i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;policies
    and procedures to ensure completeness and accuracy of
    information disclosed in the quarterly and annual reports,
    prevent earnings management and detect material financial
    statement misstatements due to fraud and error; and
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -40pt; margin-left: 40pt">
    &#160;&#160;&#160;&#160;&#160;&#160;ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;internal
    control recommendations of the external auditors and arising
    from the results of the internal audit procedures; including any
    special steps taken to address material control deficiencies and
    any fraud, whether or not material, that involves management or
    other employees who have a significant role in the
    Corporation&#146;s internal controls.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Financial Risk Management
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    d)&#160;&#160;&#160;Review with management activity related to
    management of financial risks to the Corporation, including
    hedging programs.
</DIV>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">3)&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">External
    Auditors</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="46%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="52%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Appointment and Remuneration
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    a)&#160;&#160;&#160;Review and recommend to the Board:
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -40pt; margin-left: 40pt">
    &#160;&#160;&#160;&#160;&#160;&#160;i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;the
    selection, evaluation, reappointment or, where appropriate,
    replacement of external auditors; and
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -40pt; margin-left: 40pt">
    &#160;&#160;&#160;&#160;&#160;&#160;ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;the
    nomination and remuneration of external auditors to be appointed
    at each Annual Meeting of Shareholders.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    Resolving Disagreements
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    b)&#160;&#160;&#160;Resolve any disagreements between management
    and the external auditor regarding financial reporting.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Direct Reporting to Committee
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    c)&#160;&#160;&#160;The external auditors shall report directly
    to the Committee and the Committee has the authority to
    communicate directly with the external auditors.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Quality Control and Independence
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    d)&#160;&#160;&#160;Review a formal written statement requested
    at least annually from the external auditor describing:
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -40pt; margin-left: 40pt">
    &#160;&#160;&#160;&#160;&#160;&#160;i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;the
    firm&#146;s internal quality control procedures;
</DIV>
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    34
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="46%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="52%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -40pt; margin-left: 40pt">
    &#160;&#160;&#160;&#160;&#160;&#160;ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;any
    material issues raised by the most recent internal quality
    control review, peer review of the firm; or any investigation by
    governmental or professional authorities within the preceding
    five years respecting one or more independent audits of the
    Corporation carried out by the firm;
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -40pt; margin-left: 40pt">
    &#160;&#160;&#160;&#160;&#160;&#160;iii)&#160;&#160;&#160;&#160;&#160;&#160;any
    steps taken to deal with any such issues; and
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -40pt; margin-left: 40pt">
    &#160;&#160;&#160;&#160;&#160;&#160;iv)&#160;&#160;&#160;&#160;&#160;&#160;all
    relationships between the external auditors and the Corporation.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    &#160;&#160;&#160;&#160;&#160;&#160;The Committee will actively
    engage in a dialogue with the external auditor with respect to
    whether the firm&#146;s quality controls are adequate, and
    whether any of the disclosed relationships or non-audit services
    may impact the objectivity and independence of the external
    auditor based on the independence requirements of the Applicable
    Rules. The Committee shall present its conclusion with respect
    to the independence of the external auditor to the Board.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    External Audit Plan
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    e)&#160;&#160;&#160;Review and approve the external audit plan
    and enquire as to the extent the planned audit scope can be
    relied upon to detect weaknesses in internal control or fraud or
    other illegal acts. Any significant recommendations made by the
    auditors for the strengthening of internal controls will be
    reviewed.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Rotation of Senior Audit Partner
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    f)&#160;&#160;&#160;Ensure the rotation of senior audit
    personnel who have primary responsibility for the audit work, as
    required by law.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Remuneration of External Auditors
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    g)&#160;&#160;&#160;Review and approve (in advance) the scope
    and related fees for all auditing services and non-audit
    services permitted by regulation which are to be provided by the
    external auditor in accordance with the Corporation&#146;s Audit
    and Non-Audit Services Pre-Approval Policy which is to be
    annually reviewed and approved by the Committee.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Restrictions on Hiring Employees of External Auditor
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    h)&#160;&#160;&#160;Ensure the establishment of policies
    relating to Corporation&#146;s hiring of employees of or former
    employees of the external auditor, if such individuals have
    participated in the audit of the Corporation, as required by law.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Report from the External Auditors
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    i)&#160;&#160;&#160;Prior to filing of the Quarterly
    Consolidated Financial Statements and the Annual Consolidated
    Financial Statements, the Committee should receive a report from
    the external auditors on the results of their review or their
    audit.
</DIV>
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    35
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="46%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="52%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Meeting with Auditors and Management
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    j)&#160;&#160;&#160;The Committee should meet with the external
    auditors without management present and discuss any issues
    related to performance of the audit work, any restrictions, and
    any significant disagreement with management. The Committee
    should also meet separately with management to discuss the same
    matters as those discussed with the external auditors.
</DIV>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">4)&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Internal
    Audit</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="46%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="52%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Internal Audit Plans
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    a)&#160;&#160;&#160;Review and approve the annual Internal Audit
    Plan and objectives.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Audit Findings and Recommendations
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    b)&#160;&#160;&#160;Review the significant control issues
    identified in internal audit reports issued to management and
    the responses and actions taken by management to address
    weaknesses in controls.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Meeting with Auditors
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    c)&#160;&#160;&#160;The Committee will meet, without management
    present, with representatives of the accounting firm and/or the
    Corporation&#146;s Internal Auditor that executed the annual
    Internal Audit Plan.
</DIV>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">5)&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Pension
    Plans</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    With respect to all investing and funding aspects of all defined
    benefit corporate sponsored pension plans of the Corporation and
    its wholly-owned subsidiaries that have estimated actuarial
    liabilities in excess of US$10&#160;million (collectively the
    &#147;Retirement Plans&#148;):
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="46%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="52%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Constitute Pension Committees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    a)&#160;&#160;&#160;Annually constitute Committees (the
    &#147;Pension Committees&#148;) with responsibility for the
    investment activities of the Retirement Plans&#146; trust funds.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Statements of Pension Investment Policy and Procedures
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    b)&#160;&#160;&#160;Review the Corporation&#146;s Statement of
    Pension Investment Policy for the Retirement Plans&#146; trust
    funds at least annually but in any event whenever a major change
    is apparent or necessary.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Amendments to Retirement Plans and Material Agreements
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    c)&#160;&#160;&#160;Review and recommend to the Board any
    amendments to the Retirement Plans&#146; trust agreements and
    any material document written or entered into pursuant to the
    Retirement Plans&#146; trust agreements.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Appointment of Auditors, Actuaries, and Investment Managers
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    d)&#160;&#160;&#160;Approve the recommendations of the officers
    of the Corporation regarding the reappointment or appointment of
    auditors and recommendations of the Pension Committees regarding
    appointment of investment managers and actuaries of the
    Retirement Plans.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Retirement Plan Financial Statements
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    e)&#160;&#160;&#160;Review and approve the annual financial
    statements of the Retirement Plans, and related trust funds, and
    the auditors&#146; reports thereon.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Retirement Plan Report*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    f)&#160;&#160;&#160;Review and recommend for approval by the
    Board, the annual report on the operation and administration of
    the Retirement Plans and related trust funds.
</DIV>
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    36
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="46%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="52%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Terms of Reference of the Pension Committees
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    g)&#160;&#160;&#160;Review and recommend to the Board for
    approval the Terms of Reference of the Pension Committees (to be
    approved jointly with the Human Resources Committee of the
    Board) and any amendments thereto.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Delegation to the Pension Committees
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    h)&#160;&#160;&#160;Approve the delegation of certain
    responsibilities to members of the Pension Committees.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Actuarial Reports and Funding Assumptions
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    i)&#160;&#160;&#160;Review the actuarial reports on the
    Retirement Plan as required by applicable regulations, any
    special actuarial reports, and the funding assumptions to be
    used in preparing the reports.
</DIV>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    With respect to all investing and funding aspects of all defined
    contribution pension plans and defined benefit pension plans
    that have estimated actuarial liabilities of less than
    US$10&#160;million of the wholly-owned subsidiaries of the
    Corporation (&#147;other Retirement Plans&#148;):
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="46%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="52%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other Retirement Plans Report
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    j)&#160;&#160;&#160;Receive from management and review with the
    Board, at least annually, a report on the operation and
    administration of other Retirement Plans&#146; trust funds,
    including investment performance.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Delegation of Authority
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    k)&#160;&#160;&#160;Administer and delegate to sub-committees as
    considered advisable all other matters related to other
    Retirement Plans&#146; trust funds to which the Committee has
    been delegated authority.
</DIV>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">6)&#160;</FONT></I></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">General
    Duties</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="46%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="52%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Code of Business Conduct Compliance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    a)&#160;&#160;&#160;Obtain a report at least annually from the
    Senior Vice President, General Counsel &#038; Corporate
    Secretary on the Corporation&#146;s and its subsidiary/foreign
    affiliated entities&#146; conformity with applicable legal and
    ethical compliance programs (e.g., the Corporation&#146;s Code
    of Business Conduct).
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Code of Ethics
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    b)&#160;&#160;&#160;Review and recommend to the Board for
    approval a code of ethics for senior financial officers.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Compliance Reporting Process
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    c)&#160;&#160;&#160;Ensure that a process and procedure has been
    established by the Corporation for receipt, retention, and
    treatment of complaints regarding non-compliance with the
    Corporation&#146;s Code of Business Conduct, violations of laws
    or regulations, or concerns regarding accounting, internal
    accounting controls or auditing matters. The Committee must
    ensure that procedures for receipt of complaints allow for
    confidential, anonymous submission of complaints from employees.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Regulatory Matters
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    d)&#160;&#160;&#160;Discuss with management and the external
    auditor any correspondence with regulators or governmental
    agencies and any published reports which raise material issues
    regarding the Corporation&#146;s compliance policies.
</DIV>
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    37
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="46%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="52%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Disclosure Policy*
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    e)&#160;&#160;&#160;Review annually and recommend to the Board
    for approval, the Corporation&#146;s disclosure policies. In
    particular, the Committee will review annually the
    Corporation&#146;s procedures for public disclosure of financial
    information extracted or derived from the Corporation&#146;s
    financial statements.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Related Party Transactions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    f)&#160;&#160;&#160;Review and approve all related party
    transactions.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mandate Review*
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    g)&#160;&#160;&#160;Review and recommend for approval changes
    considered advisable based on the Committee&#146;s assessment of
    the adequacy of this Mandate. Such review will occur on an
    annual basis and the recommendations, if any, will be made to
    the Board for approval.
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Annual Evaluation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    h)&#160;&#160;&#160;The Committee will conduct an annual
    evaluation to ensure that it has satisfied its responsibilities
    in the prior year in compliance with this mandate.
</DIV>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 2pt; margin-left: 0%; width: 12%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=479 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    *&#160;</TD>
    <TD align="left">
    Board approval required
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    38
</DIV><!-- END PAGE WIDTH -->
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-2
<SEQUENCE>3
<FILENAME>o38546exv2.htm
<DESCRIPTION>EXHIBIT 2
<TEXT>
<HTML>
<HEAD>
<TITLE>MD&A 12/31/2007</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;2
</DIV>


<DIV align="left" style="font-size: 14pt; margin-top: 12pt">Management&#146;s Discussion and Analysis
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>(Tabular dollar amounts are shown in thousands of US dollars, except where noted)<BR>
Years ended December&nbsp;31, 2007 and 2006</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>INDEX</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Overview</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">11
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Our Strategy</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">13
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">How We Analyze Our Business</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">15
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial Highlights</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">15
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Production Summary</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">17
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Results of Operations</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">22
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Liquidity and Capital Resources</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">27
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Risk Factors and Risk Management</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">34
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Outlook</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">34
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Critical Accounting Estimates</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">36
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">New Canadian Accounting Standards Adopted in 2007</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">36
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Anticipated Changes to Canadian Generally Accepted Accounting Principles</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">37
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Supplemental Non-GAAP Measures</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">38
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Quarterly Financial Data (Unaudited)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">38
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Selected Annual Information</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">39
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Controls and Procedures</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">40
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Forward-Looking Statements</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX
Annual Report 2007 Management&#146;s Discussion and Analysis &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;09
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 14pt; margin-top: 14pt">Management&#146;s Discussion and Analysis
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>(Tabular dollar amounts are shown in thousands of US dollars, except where noted)<BR>
Years ended December&nbsp;31, 2007 and 2006</I>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Management&#146;s Discussion and Analysis is dated February 29, 2008 and should be read in conjunction with
our consolidated financial statements
and the accompanying notes for the year ended December&nbsp;31, 2007. Our consolidated financial
statements are prepared in accordance with Canadian generally accepted accounting principles
(Canadian GAAP). We use the United States dollar as our reporting currency. Except where otherwise
noted, all dollar amounts are stated in United States dollars.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Canadian GAAP differs in some respects from accounting principles generally accepted in the
United States (US GAAP). Significant differences between Canadian GAAP and US GAAP are
described in note 17 to our consolidated financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At February&nbsp;29, 2008 we had 96,488,054 common shares issued and outstanding and stock options
exercisable for 778,966 additional common shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Additional information relating to Methanex, including our Annual Information Form, is
available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>OVERVIEW</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Methanex
is the world&#146;s largest supplier of methanol. Our production hubs in Chile and Trinidad have an annual production
capacity of 5.8&nbsp;million tonnes
and represent a substantial proportion of our current annual production capacity. We also produce
methanol from our flexible production facilities in New Zealand. In addition to the methanol we
produce, we purchase methanol produced by others under methanol offtake contracts and on the spot
market in order to meet customer requirements and support our marketing efforts. Our total sales
volumes in 2007 were 6.6&nbsp;million tonnes representing approximately 17% of estimated global demand
for methanol. We believe our global positioning, including an extensive network of storage
terminals and expertise in the global distribution of methanol, is a competitive advantage.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Methanol is a liquid chemical which has historically been produced from natural gas and is
increasingly produced from coal, particularly in China. Approximately 75% of all methanol is used
to produce formaldehyde, acetic acid and a variety of other chemicals that form the basis of a
large number of chemical derivatives for which demand is influenced by levels of global economic
activity. These derivatives are used to manufacture a wide range of products including building
materials, foams, resins and plastics. The remainder of methanol demand comes from the energy
sector. Methanol is used to produce MTBE, a gasoline component, and there are growing markets for
using methanol in energy applications such as dimethyl ether (DME), direct blending into gasoline
and biodiesel.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Due to the diversity of the end products in which methanol is used, demand for methanol is
influenced by a broad range of economic, industrial and environmental factors. The global demand
for methanol in 2007 is estimated at approximately 40&nbsp;million tonnes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;METHANEX Annual Report 2007 Management&#146;s Discussion and Analysis
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>OUR STRATEGY</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our primary objective is to create value by maintaining and enhancing our leadership in the
global production, marketing and delivery of methanol to our customers. The key elements of
our strategy are global leadership, operational excellence and value creation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Global leadership</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are the leading supplier of methanol to the major international markets of North America,
Asia Pacific and Europe, as well as Latin America. Our industry leadership has enabled us to
play a role in industry pricing through the publication of Methanex reference prices in each
major market and most of our customer contracts now use Methanex published reference prices as
the basis for pricing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our expertise in the global distribution of methanol and our investments in supply infrastructure
enable us to enhance value by providing reliable and secure supply to customers. For example,
during the second half of 2007, the methanol industry experienced a severe supply shortage caused
by several planned and unplanned supplier outages, including outages at our own production
facilities in Chile &#151; refer to the <I>Production Summary </I>section on page 15 for more information.
Using our flexible global distribution and supply network we were able to adjust our operations
and meet our commitments to customers during this period of severe market tightness.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We continue to actively investigate options to grow our production capacity over the long term in
order to maintain our leadership position in the industry. In May&nbsp;2007, we completed the
financing for our new project to construct a 1.3&nbsp;million tonne per year methanol facility at
Damietta on the Mediterranean Sea in Egypt. We are developing the project through a joint venture
in which we have a 60% interest and marketing rights for 100% of the production. We expect this
facility to begin commercial operations in early 2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We permanently closed the Kitimat production facility in 2005 and converted the site into a
terminal for storing and transporting methanol as well as other products. During 2007, this site
has allowed us to further enhance our distribution network and to cost-effectively supply
methanol to customers in the Pacific Northwest region of North America. In 2007, we also added
additional storage capacity in Vancouver, Washington.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the Asia Pacific region in 2007, we added additional storage capacity in Zhangjiagang, China and
expanded our offices in Shanghai and Hong Kong in order to enhance our customer service and
industry positioning in this region. This enables us to participate in and improve our knowledge of
the rapidly evolving and high growth methanol market in China and other countries in Asia. Our
strengthening presence in Asia has also helped us to identify several opportunities to develop
applications for methanol in the energy sector. In September&nbsp;2007, we purchased a 20% interest in a
200,000 tonne per year DME facility in China from the XinAo Group for $5&nbsp;million. This DME facility
represents the first phase of plans to expand the annual DME capacity of this site to one million
tonnes. Through our 20% interest in the first phase, we have the ability to participate in the
future phases of the site. In December&nbsp;2007, we also entered into a memorandum of understanding to
develop a similar DME facility in Egypt through a joint venture. The joint venture will include
Methanex and the XinAo Group as minority interests, with the government-owned Egyptian
Petrochemicals Holding Company (EChem) holding the majority interest. EChem is also a joint venture
partner in our new methanol project in Egypt.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During 2007, we also opened an office in Dubai, UAE to enhance our corporate presence and
capitalize on future opportunities in the Middle East.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX
Annual Report 2007 Management&#146;s Discussion and Analysis &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Operational Excellence</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We maintain a focus on operational excellence in all aspects of our business. This includes
excellence in our manufacturing and distribution processes, human resources, corporate governance
practices and financial management.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To differentiate ourselves from our competitors, we strive to be the best operator in all aspects
of our business and to be the preferred supplier to our customers. We believe that reliability of
supply is critical to the success of our customers&#146; businesses and our goal is to deliver
methanol reliably and cost-effectively. In part due to our commitment to Responsible Care, a risk
minimization approach developed by the Canadian Chemical Producers&#146; Association, we believe we
have reduced the likelihood of unplanned shutdowns and lost-time incidents and have achieved an
excellent overall environmental and safety record.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our Corporate Social Responsibility (CSR)&nbsp;policy is a natural extension of our Responsible Care
ethic and encompasses corporate governance, employee engagement and development, community
involvement and social investment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Value Creation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Maintaining a competitive cost structure is an important element of competitive advantage in a
commodity industry and is a key element of our strategy. Our approach to all business decisions is
guided by our drive to maintain and enhance our competitive cost structure and return value to
shareholders. The most significant components of our costs are natural gas for feedstock and
distribution costs associated with delivering methanol to customers.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Natural gas is the primary feedstock at our methanol production facilities. An important element
of our strategy is to ensure long-term security of natural gas supply. Our production facilities
in Chile represent 3.8&nbsp;million tonnes of annual production capacity and, when operating at
capacity, we would source approximately 60% of their natural gas feedstock from Argentina. The
remainder of our natural gas supply to our Chile facilities is from natural gas suppliers in
Chile.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Over the past few years, we have experienced ongoing challenges to the cost and security of natural
gas supply from Argentina. The government of Argentina has significantly increased the export duty
on natural gas from Argentina and since June&nbsp;2007, has curtailed all of the natural gas supply from
Argentina to our Chile facilities. Future purchases of natural gas from suppliers in Argentina will
depend on whether natural gas exports are reinstated by the Argentina government, whether we can
reach commercially acceptable arrangements with our gas suppliers and other factors. Refer to the
<I>Risk Factors and Risk Management </I>section on page 27 for more information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We believe that the solution to these issues of natural gas supply from Argentina is to source
more natural gas from suppliers in Chile. We are actively pursuing investment opportunities to
accelerate natural gas exploration and development in areas of southern Chile that are relatively
close to our production facilities. During 2007, we signed an agreement with one of our suppliers
in Chile,
GeoPark Chile Limited (GeoPark), under which we will provide US$40&nbsp;million in financing to support
and accelerate GeoPark&#146;s natural gas exploration and development activities in southern Chile.
Under the arrangement, GeoPark will also provide us with natural gas supply under a 10-year
exclusive supply agreement. As a result, GeoPark currently supplies us with approximately 4% of
our natural gas requirements for our Chile facilities and we believe natural gas supply from
GeoPark will increase over time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In November&nbsp;2007, the government of Chile completed its first international bidding round to
assign oil and gas exploration areas which lie close to our production facilities. Five
international oil and gas companies were successful in the bidding process and exploration and
development activities in these areas in southern Chile are expected to commence during the
first half of 2008. We are optimistic that this activity will ultimately provide us with more
secure long-term gas supply for our plants in Chile.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our production facilities in Trinidad represent 1.9&nbsp;million tonnes of annual competitive cost
production capacity. These facilities are underpinned by long-term take-or-pay natural gas purchase
agreements that vary with methanol prices. During 2007 we had excellent operating performance at
these facilities and produced at 96% of design capacity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Management&#146;s Discussion and Analysis
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have positioned our facilities in New Zealand as flexible production assets. These assets
include our
530,000 tonne per year production facility in Waitara Valley which we have operated over the past
few years, as well as our two Motunui facilities that are currently idle and have a total annual
operating capacity of up to 1.9&nbsp;million tonnes. We recently announced our intention to restart one
idled 900,000 tonne per year Motunui methanol plant in mid-2008. We expect to continue to operate
the Waitara Valley facility until the Motunui plant restarts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The strategic location of our Chile, Trinidad and New Zealand production sites allows us to
deliver methanol cost-effectively to our customers in Asia Pacific, Europe, North America and
Latin America.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We believe the 1.3&nbsp;million tonne methanol facility in Egypt, expected to be completed in early
2010, will further enhance our competitive positioning with its low cost structure and excellent
location to supply the European market.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The cost to distribute methanol from our production facilities to our customers is also a
significant component of our operating costs. These include costs for ocean shipping, in-market
storage facilities and in-market distribution. We are focused on identifying initiatives to reduce
these costs. We seek to maximize the use of our shipping fleet to reduce costs. We take advantage
of prevailing conditions in the shipping market by varying the type and length of term of ocean
vessel contracts. We are continuously investigating opportunities to further improve the
efficiency and cost-effectiveness of distributing methanol from our production facilities to
customers. We also look for opportunities to leverage our global asset position by entering into
product exchanges with other methanol producers to reduce distribution costs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We operate in a highly competitive commodity industry. Accordingly, we believe it is important to
maintain financial flexibility and we have adopted a prudent approach to financial management.
Where there are opportunities to grow our position in the methanol industry we apply a disciplined
approach, which includes target return criteria. We also believe that it is prudent to maintain a
conservative balance sheet and we have established a track record of maintaining a reasonable
balance between growing our business and returning excess cash to shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Over the past two years, we have achieved an average annual return on capital employed of
approximately 22% (refer to the <I>Supplemental Non-GAAP Measures </I>section on page 37). Over the same
period, we have also returned a total of $500&nbsp;million of cash to shareholders through a combination
of share repurchases and dividends.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>HOW WE ANALYZE OUR BUSINESS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our operations consist of a single operating segment &#151; the production and sale of methanol. We
review our results of operations by analyzing changes in the components of our Adjusted EBITDA
(refer to the <I>Supplemental Non-GAAP Measures </I>section on page 37 for a reconciliation to the most
comparable GAAP measure), depreciation and amortization, interest expense, interest and other
income, unusual items and income taxes. In addition to the methanol that we produce at our
facilities, we also purchase and re-sell methanol produced by others and sell methanol on a
commission basis. In analyzing the changes in Adjusted EBITDA, we separately analyze the results of
Methanex-produced methanol sales from purchased methanol sales as the margin characteristics of
each are very different.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX ANNUAL REPORT 2007 Management&#146;s Discussion and Analysis&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Methanex-Produced Methanol</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The level of Adjusted EBITDA is highly dependant on the margin earned from Methanex-produced
methanol from our facilities in Chile, Trinidad and New Zealand. Sales volumes of
Methanex-produced methanol depend on the amount of production from these methanol facilities,
which in turn is based on how well the plants operate, the timing of scheduled maintenance and
other factors. Our analysis of Adjusted EBITDA separately discusses the impact of changes in
average realized price, sales volumes and cash costs for our Methanex-produced methanol.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The price, cash cost and volume variances included in Adjusted EBITDA analysis for
Methanex-produced methanol are defined and calculated as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="87%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">PRICE
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The change in Adjusted EBITDA as a result of changes in average realized
price is calculated as the
difference from period to period in the selling price of
Methanex-produced methanol multiplied by
the current period sales volume of Methanex-produced methanol. Sales
under long-term contracts
where the prices are either fixed or linked to our costs plus a margin
are included as sales of
Methanex-produced methanol. Accordingly, the selling price of
Methanex-produced methanol will
differ from the selling price of purchased methanol.</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap  valign="top"><DIV style="margin-left:0px; text-indent:-0px">CASH COST
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The change in Adjusted EBITDA as a result of changes in cash costs is
calculated as the difference
from period to period in cash costs per tonne multiplied by the sales
volume of Methanex-produced
methanol in the current period plus the change in unabsorbed fixed cash
costs. The change in
consolidated selling, general and administrative expenses and fixed
storage and handling costs are
included in the analysis of Methanex-produced methanol.</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">VOLUME
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The change in Adjusted EBITDA as a result of changes in sales volumes is
calculated as the
difference from period to period in the sales volumes of
Methanex-produced methanol multiplied by
the margin per tonne for the prior period. The margin per tonne is
calculated as the selling price per
tonne of Methanex-produced methanol less absorbed fixed cash costs per
tonne and variable cash
costs per tonne (excluding Argentina natural gas export duties per tonne).</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Purchased Methanol</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We augment our marketing operations by purchasing methanol from other producers. This provides
flexibility in our supply chain to optimize shipping costs and respond to changes in production
levels and customer requirements. The
amount of methanol we purchase from others will depend on these and other factors and consequently
sales of purchased product vary from period to period. Sales of purchased methanol represent a
lower proportion of Adjusted EBITDA because the cost of purchased methanol consists principally of
the cost of the methanol itself, which is directly related to the price of methanol at the time of
purchase. Accordingly, the analysis of purchased methanol and its impact on Adjusted EBITDA is
discussed on a net margin basis.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Commission Sales</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We also sell methanol on a commission basis. Commission sales represent volumes marketed on a
commission basis related to the 36.9% of the Atlas methanol facility in Trinidad that we do not
own.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt">14&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Management&#146;s Discussion and Analysis
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>FINANCIAL HIGHLIGHTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">($ Millions, except where noted)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sales volumes (thousands of tonnes):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Methanex-produced methanol</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,569</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,310</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchased methanol</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,453</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,101</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commission sales<SUP style="font-size: 85%; vertical-align: text-top">1</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">590</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">584</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,612</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,995</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Methanex average non-discounted posted price ($&nbsp;&nbsp;per tonne)<SUP style="font-size: 85%; vertical-align: text-top">2</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">451</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">396</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average realized price ($&nbsp;&nbsp;per tonne)<SUP style="font-size: 85%; vertical-align: text-top">3</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">328</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,266</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,108</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjusted EBITDA<SUP style="font-size: 85%; vertical-align: text-top">4</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">652</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">800</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">376</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">483</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income before unusual items (after-tax)<SUP style="font-size: 85%; vertical-align: text-top">4</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">376</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">457</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Basic net income per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.43</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Diluted net income per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Diluted income before unusual items (after-tax) per share<SUP style="font-size: 85%; vertical-align: text-top">4</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flows from operating activities<SUP style="font-size: 85%; vertical-align: text-top">4, 5</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">494</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">623</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common share information (millions of shares):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Weighted average number of common shares outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">102</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">109</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Diluted weighted average number of common shares outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">102</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">109</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30<TABtext-indent:-15px">Number of common shares outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV style="margin-top: 3pt">
<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 nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Commission sales represent volumes marketed on a commission basis. Commission income
is included in revenue when earned.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">2</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Methanex average non-discounted posted price represents the average of our
non-discounted posted prices in North America, Europe and Asia Pacific weighted by sales
volume. Current and historical pricing information is available on our website at
www.methanex.com.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">3</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Average realized price is calculated as revenue, net of commission income, divided by
total sales volumes of produced and purchased methanol.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">4</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>These items are non-GAAP measures that do not have any standardized meaning
prescribed by Canadian generally accepted accounting principles (GAAP)&nbsp;and therefore are
unlikely to be comparable to similar measures presented by other companies. Refer to <I>the
Supplemental Non-GAAP Measures </I>section on page 37 for a description of each non-GAAP measure
and a reconciliation to the most comparable GAAP measure.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">5</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Cash flows from operating activities in the above table represent cash flows from
operating activities before changes in non-cash working capital.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>PRODUCTION SUMMARY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table details the annual operating capacity and production for our facilities that
operated in 2007 or 2006:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" bordER="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="3">Annual</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">(Thousands of tonnes)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="3">Operating Capacity<SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="3">2007</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="3">2006</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Chile I, II, III and IV (Chile)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3,840</TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,841</TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3,186</TD>

</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Atlas (Trinidad) (63.1% interest)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,073</TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD align="right" valign="top">982</TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,057</TD>

</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Titan (Trinidad)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD align="right" valign="top">850</TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD align="right" valign="top">861</TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD align="right" valign="top">864</TD>

</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Waitara Valley (New Zealand)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD align="right" valign="top">530</TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD align="right" valign="top">435</TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD align="right" valign="top">404</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6,293</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4,119</TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5,511</TD>

</TR>
<TR style="font-size: 1px">
    <TD colspan="13" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV style="margin-top: 3pt">
<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 nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>The annual operating capacities shown in the above table may be higher than the
original design capacity as a result of efficiencies gained through improvements and
experience at our plants.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Management&#146;s Discussion and Analysis&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Chile</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our methanol facilities in Chile produced 1.8&nbsp;million tonnes during 2007 compared with production
capacity in 2007 of 3.8&nbsp;million tonnes. We have natural gas supply contracts for approximately 60%
of our natural gas requirements for our production facilities in Chile from natural gas suppliers
in Argentina that are affiliates of international oil and gas companies. From mid-June&nbsp;2007, we
have not received any natural gas supply from Argentina and this resulted in approximately 1.6
million tonnes of lost production during 2007. In mid-June, a compressor failure seriously
impacted the natural gas delivery infrastructure in the province of Tierra del Fuego in Argentina
and this issue, combined with increased domestic demand for natural gas in Argentina as a result
of cold temperatures in the winter months, resulted in the curtailment of all of our natural gas
supply from Argentina. During the third quarter of 2007, the compressor issue was resolved and the
domestic demand for natural gas in Argentina stabilized with warmer temperatures. We believe that
there currently is sufficient natural gas production capability in the region to meet our full
contracted supply from Argentina and that all pipeline capacity to transport natural gas from
southern Argentina to the more populated areas in central Argentina is full. However, the
government of Argentina has not yet permitted the restoration of natural gas supply to our
facilities for reasons which we believe include maintaining domestic natural gas reserves that
have decreased due, in part, to a lower level of oil and gas exploration and development activity
in Argentina.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have natural gas contracts for approximately 40% of our natural gas requirements for our
production facilities in Chile from natural gas suppliers in Chile, primarily from Empresa Nacional
del Petroleo (ENAP), the Chilean state-owned energy company, and from GeoPark Chile Limited
(GeoPark). As a result of our Argentinean natural gas supply issues, all of the methanol production
at our Chile facilities in the second half of 2007 was produced with natural gas from Chile. During
2007, we received less than our full natural gas supply from ENAP, our primary gas supplier in
Chile, as a result of ongoing deliverability and production issues and this resulted in methanol
production losses of approximately 0.4&nbsp;million tonnes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We believe the solution to these issues of natural gas supply from Argentina is to source more
natural gas from suppliers in Chile. We are pursuing investment opportunities with ENAP and
GeoPark to help accelerate natural gas exploration and development in southern Chile. Both
parties are undertaking gas exploration and development programs in areas that are relatively
close to our production facilities. Their exploration and development efforts are encouraging,
with both ENAP and GeoPark recently announcing discoveries of commercial gas in this area. On
November&nbsp;26, 2007, we announced that we signed an agreement with GeoPark under which we will
provide US$40&nbsp;million in financing to support and accelerate GeoPark&#146;s natural gas exploration
and development activities in the Fell Block in southern Chile. Under the arrangement, GeoPark
will also provide us with natural gas supply sourced from the Fell Block under a 10-year
exclusive supply agreement. In 2007, GeoPark increased deliveries to our plants. We expect our
natural gas supply from GeoPark to increase further over time. In November&nbsp;2007, the government
of Chile completed its first international bidding round to assign natural gas exploration areas
that lie close to our production facilities and announced the participation of five international
oil and gas companies. Exploration and development activities in these areas in southern Chile
are expected to begin during the first half of 2008. We cannot provide assurance that ENAP,
GeoPark or others will be successful in the exploration and development of natural gas or that we
would obtain any additional natural gas from suppliers in Chile on commercially acceptable terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Refer to the <I>Risk Factors and Risk Management &#151; Chile </I>section on page 27 for more information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Trinidad</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During 2007, our Trinidad facilities operated well and produced a total of 1.8&nbsp;million tonnes
compared with 1.9&nbsp;million tonnes during 2006. We completed planned maintenance activities at our
Atlas facility during the first half of 2007 and this reduced production by approximately 100,000
tonnes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">16&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Management&#146;s Discussion and Analysis
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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


<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>New Zealand</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have positioned our facilities in New Zealand as flexible production assets. These assets
include our 530,000 tonne per year production facility in Waitara Valley which we have operated
over the past few years, as well as our Motunui facilities that have a total annual operating
capacity of up to 1.9&nbsp;million tonnes. During 2007, we produced 435,000 tonnes, or 82% of total
capacity, at our Waitara Valley facility compared with 404,000 tonnes during 2006. Production in
2007 was lower than capacity at this facility primarily as a result of planned maintenance
activities that were completed in November&nbsp;2007. We have secured sufficient natural gas supply that
will allow us to produce at this facility until at least mid-2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We recently announced our intention to restart one idled 900,000 tonne per year Motunui methanol
plant in mid-2008. We expect to continue to operate the Waitara Valley facility until the Motunui
plant restarts. The continued operations of the flexible New Zealand facilities is dependant upon
industry supply and demand and the availability of natural gas on commercially acceptable terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>RESULTS OF OPERATIONS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">($ Millions, except where noted)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">2007</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">2006</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consolidated statements of income:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,266</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,108</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cost of sales and operating expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,614</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,308</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Adjusted EBITDA<SUP style="font-size: 85%; vertical-align: text-top">1</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">652</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">800</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Depreciation and amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">112</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">107</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Operating income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">540</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">693</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(44</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(45</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest and other income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(147</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(175</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">376</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">483</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Income before unusual items (after-tax)<SUP style="font-size: 85%; vertical-align: text-top">1</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">376</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">457</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>

</DIV>



<DIV style="margin-top: 3pt">
<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 nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>These items are non-GAAP measures that do not have any standardized meaning
prescribed by Canadian generally accepted accounting principles (GAAP)&nbsp;and therefore are
unlikely to be comparable to similar measures presented by other companies. Refer to the
<I>Supplemental Non-GAAP Measures section </I>on page 37 for a description of each non-GAAP measure
and a reconciliation to the most comparable GAAP measure.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Revenue</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">There are many factors that impact our global and regional revenue levels. The methanol business is
a global commodity industry affected by supply and demand fundamentals. Due to the diversity of the
end products in which methanol is used, demand for methanol largely depends upon levels of
industrial production, the value of energy and changes in general economic conditions, which can
vary across the major international methanol markets.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="o38546o3854633.gif" alt="(GRAPHIC)">
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Management&#146;s Discussion and Analysis&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Revenue for 2007 was $2.3&nbsp;billion compared with $2.1&nbsp;billion during 2006. Total sales volumes of
produced and purchased methanol during 2007 were 6.0&nbsp;million tonnes compared with 6.4&nbsp;million
tonnes in 2006. The increase in revenue was primarily due to our higher average realized price in
2007 compared with 2006, which was partially offset by lower sales volumes. We experienced a
significant increase in methanol pricing towards the latter half of 2006 due to tight supply
conditions brought on by planned and unplanned supplier outages. We entered 2007 with tight
market conditions due to these industry supply constraints combined with high global energy
prices and healthy demand. The supply and demand fundamentals improved and prices moderated in
the first half of 2007. During the latter half of 2007, significant planned and unplanned
supplier outages, including outages at our own facilities in Chile, caused a severe shortage of
global inventories. This led to another significant increase in pricing that continued throughout
the fourth quarter of 2007. Our average realized price for 2007 was $375 per tonne compared with
$328 per tonne in 2006. Our higher average realized price during 2007 increased revenue by $285
million compared with 2006 while lower sales volumes decreased revenue by $127&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The methanol industry is highly competitive and prices are affected by supply and demand
fundamentals. We publish non-discounted reference prices for each major methanol market and offer
discounts to customers based on various factors. Our average non-discounted published reference
price for 2007 was $451 per tonne compared with $396 per tonne in 2006. Our average realized price
was approximately 17% lower than our average non-discounted published reference price for both 2007
and 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have entered into long-term contracts for a portion of our production volume with certain
global customers where prices are either fixed or linked to our costs plus a margin. In 2007,
sales under these contracts represented approximately 22% of our total sales volumes. The discount
from our non-discounted published reference prices is expected to narrow during periods of lower
pricing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Distribution of Revenue</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The distribution of revenue for 2007 and 2006 is as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">($ Millions, except where noted)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="6">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="6">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Canada</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">237</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">167</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">United States</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">753</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">33</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">679</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">32</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Europe</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">22</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">494</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">23</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Korea</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">259</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">11</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">213</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Japan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">148</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">158</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other Asia</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">142</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">203</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Latin America</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">227</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">194</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,266</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,108</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our revenue distribution for 2007 is relatively comparable to 2006 except for changes in Canada
and Other Asia. Revenue related to customers in Canada as a proportion of our total revenue
increased as a result of our increased marketing efforts in the Pacific Northwest region of North
America. Our Kitimat terminal is a convenient base to supply this market. Revenue related to
customers in Other Asia decreased as a proportion of our total revenue as a result of a decrease
in sales volumes in China in 2007. When prices are high we believe China has an incentive to
operate at higher production rates which reduces the requirement for imports and provides an
economic incentive to export.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">18&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Management&#146;s Discussion and Analysis
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Adjusted EBITDA</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We review our results of operations by analyzing changes in the components of Adjusted EBITDA.
The operating results for our production facilities represent a substantial proportion of
Adjusted EBITDA and, accordingly, we separately discuss changes in average realized price, sales
volumes and total cash costs related to these facilities. In addition to the methanol that we
produce at our facilities, we also purchase and re-sell methanol produced by others which we
refer to as purchased methanol. Sales of purchased methanol represent a lower proportion of
Adjusted EBITDA and, accordingly, the analysis of purchased methanol is discussed on a net margin
basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2007 Adjusted EBITDA was $652&nbsp;million compared with $800&nbsp;million in 2006. The decrease in
Adjusted EBITDA of $148&nbsp;million resulted from changes in the following:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">($ Millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007 vs. 2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Methanex-produced methanol:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Average realized price</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">181</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Sales volumes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(161</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total cash costs<SUP style="font-size: 85%; vertical-align: text-top">1</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(187</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(167</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Margin on the sale of purchased methanol</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Decrease in Adjusted EBITDA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(148</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<DIV style="margin-top: 3pt">
<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 nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Includes cash costs related to methanol produced at our facilities as well as
consolidated selling, general and administrative expenses and fixed storage and handling
costs.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Average Realized Price</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The higher average realized price of Methanex-produced methanol increased Adjusted EBITDA by $181
million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Sales Volumes</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Sales volumes of Methanex-produced methanol for the year ended December&nbsp;31, 2007 were lower by
741,000 tonnes compared with 2006 primarily as a result of lower production in Chile (refer to
the <I>Production Summary </I>section on page 15 for more information). Lower sales volumes in 2007
decreased Adjusted EBITDA by $161&nbsp;million compared with 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Total Cash Costs</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Cash costs for Methanex-produced methanol were higher in 2007 compared with 2006 and this decreased
Adjusted EBITDA by $187&nbsp;million. The primary changes in cash costs were as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">($ Millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007 vs. 2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Higher natural gas costs and other costs related to higher methanol prices</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">96</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Impact of sharing the cost of Argentina export duties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Higher distribution costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Lower selling, general and administrative expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unabsorbed fixed production costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">187</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Management&#146;s Discussion and Analysis&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Higher Natural Gas Costs and Other Costs Related to Higher Methanol Prices
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Natural gas supply contracts for our assets in Chile, Trinidad and New Zealand include base and
variable price components to reduce our commodity price risk exposure. The variable price
component of each gas contract is adjusted by a formula related to methanol prices above a
certain level. We believe this pricing relationship enables these facilities to be competitive
throughout the methanol price cycle. The higher average methanol prices in 2007 increased our
natural gas and other costs related to our produced product and this decreased Adjusted EBITDA by
approximately $96&nbsp;million compared with 2006. For additional information regarding our natural
gas agreements refer to the <I>Summary of Contractual Obligations and Commercial Commitments </I>section
on page 23.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Impact of Sharing the Cost of Argentina Export Duties
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During 2006, the government of Argentina increased the duty on exports of natural gas from
Argentina to Chile. While our natural gas contracts provide that our natural gas suppliers are to
pay any duties levied by the government of Argentina, we were contributing towards some of the cost
of these duties prior to the curtailment of our natural gas supply from Argentina beginning in
mid-June&nbsp;2007. The total costs of sharing export duties on sales of methanol produced with natural
gas from Argentina was $61&nbsp;million in 2007 and $8&nbsp;million in 2006. At December&nbsp;31, 2007, none of
our inventory was produced with natural gas from Argentina. Refer to the <I>Risk Factors and Risk
Management &#151; Chile </I>section on page 27 for more information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Higher Distribution Costs
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The cost to distribute methanol from our production facilities to customers is a significant
component of our operating costs. Ocean shipping costs are the most significant component of our
distribution costs and we have a fleet of ocean-going vessels under long-term time charter that
contribute to our objective of cost-effectively delivering methanol to customers. Our ocean
shipping costs increased by $16&nbsp;million in 2007 compared with 2006. The increase in shipping costs
in 2007 compared with 2006 was primarily due to increased fuel costs resulting from higher global
energy prices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The remaining costs to distribute methanol from our production facilities to customers primarily
consist of the cost of in-market storage facilities and in-market distribution. In-market
distribution costs will vary depending on the location of the customer and we recover a substantial
proportion of these costs from customers. These costs increased during 2007 by $11&nbsp;million,
primarily due to an increase in in-market distribution costs as a result of an increase in sales
volumes to customers in the Pacific Northwest region of North America. Most of these costs were
recovered from our customers and this cost recovery has been included in revenue.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Lower Selling, General &#038; Administrative Expenses
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our selling, general and administrative expenses decreased by $7&nbsp;million in 2007 compared with
2006 primarily as a result of the impact of changes in our share price on our stock-based
compensation expense. Our stock-based compensation expense for deferred, restricted and
performance share units is impacted by changes in our share prices as these changes are recognized
in earnings for the proportion of the service that has been rendered at each reporting date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Unabsorbed Fixed Production Costs
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We record fixed production costs per tonne based on normal operating rates for our production
facilities. In periods when our production facilities operate below normal capacity, we record a
charge to earnings related to unabsorbed fixed production costs. Unabsorbed fixed production costs
increased by $18&nbsp;million in 2007 compared with 2006 primarily as a result of lower Chile
production.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">20&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Management&#146;s Discussion and Analysis
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Margin on the Sale of Purchased Methanol</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We purchase methanol produced by others through methanol offtake contracts and on the spot market
to meet customer needs and support our marketing efforts. Consequently, we realize holding gains or
losses on the resale of this product depending on the methanol price at the time of purchase and
resale. In 2007, our cash margin was $39&nbsp;million on resale of 1.5&nbsp;million tonnes of purchased
methanol compared with a cash margin of $20&nbsp;million on resale of 1.1&nbsp;million tonnes during 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Depreciation and Amortization</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Depreciation and amortization expense in 2007 was $112&nbsp;million compared with $107&nbsp;million in 2006.
The increase in depreciation and amortization of $5&nbsp;million is primarily the result of a draw down
of Methanex produced methanol inventories in 2007 which includes depreciation charges.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Interest Expense</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">($ Millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense before capitalized interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less capitalized interest related to Egypt project under construction</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Interest expense before capitalized interest in 2007 was $48&nbsp;million compared with $45&nbsp;million in
2006. In May&nbsp;2007, we reached financial close and secured limited recourse debt of $530&nbsp;million
for our joint venture project to construct a 1.3&nbsp;million tonne per year methanol facility in
Egypt. The increase in interest expense before capitalized interest relates primarily to the
interest on the Egypt project limited recourse debt during 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Interest and Other Income</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Interest and other income was $27&nbsp;million in 2007 compared with $10&nbsp;million in 2006. The increase
in interest and other income of $17&nbsp;million was primarily due to higher returns on cash balances
in 2007 compared with 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Income Taxes</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The effective tax rate for 2007 was 28%. The effective tax rate for 2006 was 27%. After excluding
the unusual item related to the Trinidad tax adjustment (see below), the effective tax rate for
2006 was 31%. The statutory tax rate in each of Chile and Trinidad, where we earn a substantial
portion of our pre-tax earnings, is 35%. Our Atlas facility in Trinidad has partial relief from
corporation income tax until 2014.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In Chile the tax rate consists of a first tier tax that is payable when income is earned and a
second tier tax that is due when earnings are distributed from Chile. The second category tax is
initially recorded as future income tax expense and is subsequently reclassified to current income
tax expense when earnings are distributed. Accordingly, the ratio of current income tax expense to
total income tax expense is highly dependent on the level of cash distributed from Chile.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During 2005, the government of Trinidad and Tobago introduced new tax legislation retroactive to
January&nbsp;1, 2004. As a result, during 2005 we recorded a $17&nbsp;million charge to increase future
income tax expense to reflect the retroactive impact for the period January&nbsp;1, 2004 to December&nbsp;31,
2004. In February&nbsp;2006, the government of Trinidad and Tobago passed an amendment to this
legislation that changed the retroactive effective date to January&nbsp;1, 2005. As a result of this
amendment we recorded an adjustment to decrease future income tax expense by a total of $26&nbsp;million
during the first quarter of 2006. The adjustment includes a reversal of the previous charge to 2005
earnings and an additional adjustment to recognize the benefit of tax deductions that were
reinstated as a result of the change in the implementation date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For additional information regarding income taxes, refer to note 11 of our 2007 consolidated
financial statements.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Management&#146;s Discussion and Analysis&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>LIQUIDITY AND CAPITAL RESOURCES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Cash Flow Highlights</B>

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">($ Millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CASH FLOWS FROM OPERATING ACTIVITIES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash flows from operating activities<SUP style="font-size: 85%; vertical-align: text-top">1</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">494</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">623</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Changes in non-cash working capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(154</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">527</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">469</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CASH FLOWS FROM FINANCING ACTIVITIES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Payments for shares repurchased</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(205</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(187</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Dividend payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(55</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(53</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Proceeds on issue of long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">132</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Equity contribution by non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Repayment of long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(14</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(14</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Proceeds on issue of shares on exercise of stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Financing costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(114</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(245</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CASH FLOWS FROM INVESTING ACTIVITIES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Property, plant and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(76</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(42</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Plant and equipment construction costs, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(202</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(21</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Changes in non-cash working capital related to investing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(280</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(28</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Increase in cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents, end of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">488</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">355</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<DIV style="margin-top: 3pt">
<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 nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Before changes in non-cash working capital.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Cash Flows from Operating Activities</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Cash flows from operating activities before changes in non-cash working capital were $494
million in 2007 compared with $623&nbsp;million in 2006. The decrease in cash flows from operating
activities before changes in non-cash working capital is primarily the result of lower earnings
in 2007 compared with 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Non-cash working capital related to operating activities at December&nbsp;31, 2007 decreased by $33
million compared with an increase of $154&nbsp;million at December&nbsp;31, 2006. The changes in non-cash
working capital are primarily driven by the impact of changes in methanol pricing on our non-cash
working capital balances, changes in inventory levels and timing of cash payments and collections.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Cash Flows from Financing Activities</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Over the past two years we have returned a total of $500&nbsp;million of cash to shareholders through
share repurchases of $392&nbsp;million and through regular quarterly dividend payments of $108&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 2006, we commenced a normal course issuer bid that expired on May&nbsp;16, 2007. On May&nbsp;17, 2007, we
commenced a new bid that expires on May&nbsp;16, 2008. During 2007, we repurchased a total of 8.0
million common shares under these bids at an average price of US$25.45 per share, totaling $205
million. At December&nbsp;31, 2007, we had repurchased a total of 4.4&nbsp;million common shares under the
current bid which has a maximum allowable repurchase of 8.7&nbsp;million common shares. During 2006, we
repurchased a total of 8.5&nbsp;million common shares at an average price of US$21.91 per share,
totaling $187&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We increased our regular quarterly dividend by 12% to US$0.14 per share per quarter, beginning
with the dividend payable on June&nbsp;30, 2007. Total dividend payments in 2007 were $55&nbsp;million
compared with $53&nbsp;million in 2006.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">22&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Management&#146;s Discussion and Analysis
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In May&nbsp;2007, we reached financial close and secured limited recourse debt of $530&nbsp;million for a
project to construct a 1.3&nbsp;million tonne per year methanol facility at Damietta on the
Mediterranean Sea in Egypt. We own 60% of Egyptian Methanex Methanol Company S.A.E. (&#147;EMethanex&#148;),
which is the company that is developing the project. We account for our investment in EMethanex
using consolidation accounting. This results in 100% of the assets and liabilities of EMethanex
being included in our financial statements. The other investors&#146; interest in the project is
presented as &#147;non-controlling interest&#148;. During 2007, a total $117&nbsp;million of this limited
recourse debt was drawn for construction activities. The remaining proceeds on limited recourse
debt of $15&nbsp;million relates to debt facilities obtained on the acquisition of an ocean-going
vessel during 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We repaid $14&nbsp;million in principal on our Atlas limited recourse debt facilities in each of 2007
and 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We received proceeds of $10&nbsp;million and issued 0.6&nbsp;million common shares on the exercise of stock
options during 2007, compared with proceeds of $8&nbsp;million on the issuance of 0.7&nbsp;million common
shares in 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Cash Flows from Investing Activities</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Additions to property, plant and equipment, which are comprised of turnarounds, catalyst and
other capital expenditures, were $76&nbsp;million for 2007 compared with $42&nbsp;million in 2006. In
2007, we performed ongoing maintenance at all of our production facilities and completed major
turnarounds at our New Zealand and Atlas facilities. Included in additions to property, plant
and equipment for 2007 is $20&nbsp;million for the acquisition of an ocean-going vessel that we
acquired through a 50% interest in a joint venture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During 2007, total capital expenditures were $202&nbsp;million for the development and construction of
the Egypt project. We estimate that the total remaining capital expenditures, excluding capitalized
interest and working capital, to complete the construction of the Egypt methanol facility will be
approximately $665&nbsp;million and that these expenditures will be funded from cash generated from
operations and cash on hand, cash contributed by the non-controlling shareholders and proceeds from
the limited recourse debt facilities. At December&nbsp;31, 2007, our 60% share of remaining cash equity
contributions, excluding financing costs and working capital, is estimated to be approximately $175
million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During 2007, our investments in other assets of $20&nbsp;million primarily related to a financing
agreement with one of our natural gas suppliers in Chile. During the fourth quarter of 2007, we
entered into an agreement to provide US$40&nbsp;million in financing to GeoPark Chile Limited to support
and accelerate its natural gas exploration and development activities in southern Chile. During
2007, we funded $14&nbsp;million under this agreement and this amount was recorded as an addition to
other assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Summary of Contractual Obligations and Commercial Commitments</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A summary of the estimated amount and estimated timing of cash flows related to our contractual
obligations and commercial commitments as at December&nbsp;31, 2007 is as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="41%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">($ Millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009-2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2011-2012</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">After 2012</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Total</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-right: 2px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="3" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt repayments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">247</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">308</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">604</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt interest obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">258</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Repayment of other long-term liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital lease obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Natural gas and other, excluding Argentina</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">159</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">265</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">312</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,931</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,667</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Argentina natural gas</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">779</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,146</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating lease commitments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">197</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">181</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">572</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,065</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Project under construction</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">332</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">665</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-right: 2px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="3" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">758</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,080</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">987</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,682</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,507</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD colspan="3" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The above table does not include costs for planned capital maintenance expenditures or any
obligations with original maturities of less than one year.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Management&#146;s Discussion and Analysis&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Long-Term Debt Repayments and Interest Obligations</I><BR>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have $200&nbsp;million of unsecured notes that mature in 2012 and $150&nbsp;million of unsecured notes
that mature in 2015. The remaining debt repayments represent the total expected principal
repayments relating to the Egypt project and other limited recourse debt facilities, as well as
our proportionate share of total expected principal repayments related to the Atlas limited
recourse debt facilities. Interest obligations related to variable interest rate long-term debt
were estimated using current interest rates in effect at December&nbsp;31, 2007. For additional
information, refer to note 6 of our 2007 consolidated financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Repayments of Other Long-Term Liabilities</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Repayments of other long-term liabilities represent contractual payment dates or, if the timing
is not known, we have estimated the timing of repayment based on management&#146;s expectations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Capital Lease Obligations</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have entered into a capital lease agreement for an ocean-going vessel. The above table
includes the future minimum lease payments related to this capital lease. For additional
information, refer to note 7(b) of our 2007 consolidated financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Natural Gas and Other, Excluding Argentina</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have commitments, other than those described in the <I>Argentina Natural Gas </I>section below, under
take-or-pay contracts to purchase annual quantities of natural gas supplies and to pay for
transportation capacity related to these supplies. We also have take-or-pay contracts to purchase
oxygen and other feedstock requirements. Take-or-pay means that we are obliged to pay for the
supplies regardless of whether we take delivery. Such commitments are typical in the methanol
industry. These contracts generally provide a quantity that is subject to take-or-pay terms that
is lower than the maximum quantity that we are entitled to purchase. The amounts disclosed in the
table represent only the take-or-pay quantity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Natural gas supply contracts for our facilities in Chile and Trinidad and the natural gas supply
contract for the methanol project under construction in Egypt are take-or-pay contracts,
denominated in United States dollars and include base and variable price components to reduce our
commodity price risk exposure. The variable price component of each natural gas contract is
adjusted by a formula related to methanol prices above a certain level. We believe this pricing
relationship enables these facilities to be competitive and provides gas suppliers with attractive
returns. The amounts disclosed in the table for these contracts represent only the base price
component. The above table also includes remaining obligations under a fixed price take-or-pay
natural gas supply contract for our Waitara Valley facility which allows us to operate the
facility until mid-2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Approximately 40% of the natural gas for our Chilean facilities is purchased from suppliers in
Chile, primarily from Empresa Nacional del Petroleo (ENAP), the Chilean state-owned energy company,
with a small percentage from GeoPark Chile Limited (GeoPark), an independent natural gas producer
with operations in Chile. The natural gas commitments for our Chile facilities included in the
above table relate to our natural gas contracts with ENAP. One of these natural gas supply
contracts, which represents 20% of the contractual entitlements for our Chile facilities, has a
base component and a variable price component determined with reference to our average realized
price of methanol for the current calendar year and runs until mid-2009. Our remaining natural gas
contracts with ENAP have a base component and variable price component determined with reference to
12-month trailing average published industry methanol prices. The expiration dates for these
contracts range from 2017 to 2025.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">24&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Management&#146;s Discussion and Analysis
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We also have commitments for natural gas purchases under a 10-year exclusive natural gas supply
agreement with GeoPark under which we will purchase all natural gas produced by GeoPark from the
Fell Block in southern Chile. GeoPark has recently increased natural gas supply to our plants
which has resulted in GeoPark currently supplying us with approximately 4% of our natural gas
requirements in Chile. The pricing under this contract has a base component and a variable
component determined with reference to a 3-month trailing average of industry methanol prices. The
amount of natural gas purchased under this supply contract will depend on the amount of natural
gas produced by GeoPark from the Fell Block.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In Trinidad, we also have take-or-pay supply contracts for natural gas, oxygen and other
feedstock requirements. The variable component of our natural gas contracts in Trinidad is
determined with reference to average published industry methanol prices each quarter and the base
prices increase over time. The natural gas and oxygen supply contracts for Titan and Atlas expire
in 2014 and 2024, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have a long-term take-or-pay natural gas supply contract for the methanol project under
construction in Egypt. We expect this facility to begin commercial operations in early 2010. The
pricing for natural gas under this contract includes base and variable price components. The
variable component of the natural gas contract in Egypt commences mid-2012 and is determined with
reference to Methanex average realized prices of methanol each quarter. This contract expires 25
years from the start of the commercial operation of the facility.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Argentina Natural Gas</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have long-term take-or-pay natural gas supply contracts with suppliers in Argentina for
approximately 60% of our current natural gas requirements for our Chilean operations and 80% of
our natural gas requirements commencing mid-2009. The expiration dates range from 2017 to 2025 and
natural gas export permits are in place for these contracts. The government of Argentina has
significantly increased the tax on exports of natural gas from Argentina. In addition, since June
2007, the government of Argentina has curtailed all of the natural gas supply from Argentina to
our Chile facilities. Future purchases of natural gas under these contracts will depend on whether
natural gas exports are reinstated by the Argentina government, whether we can reach commercially
acceptable arrangements with our gas suppliers and other factors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Operating Lease Commitments</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The majority of these commitments relate to time charter vessel agreements with terms of up to 15
years. Time charter vessels typically meet most of our ocean shipping requirements. We also secure
additional vessels under a mix of contracts with terms of one to two years and through spot
arrangements. We believe this structure provides an appropriate mix of shipping capacity,
reflecting factors such as the location of our production facilities, the location and
restrictions of the destination ports, and the risks associated with production, customer
requirements and the general shipping market.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Project under construction</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Project under construction includes the estimated total remaining capital expenditures to complete
the construction of the 1.3&nbsp;million tonne methanol facility in Egypt, excluding financing costs and
working capital.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Financial Instruments</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">From time to time we enter into derivative financial instruments to limit our exposure to foreign
exchange volatility and to variable interest rate volatility and to contribute towards achieving
cost structure and revenue targets. At December&nbsp;31, 2007, the fair value of our derivative
financial instruments used to limit our exposure to foreign exchange volatility and to variable
interest rate volatility approximates their carrying value of negative $9.8&nbsp;million. Until
settled, the fair value of the derivative financial instruments will fluctuate based on changes in
foreign exchange rates and variable interest rates.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Management&#146;s Discussion and Analysis&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Off-Balance Sheet Arrangements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At December&nbsp;31, 2007, we did not have any off-balance sheet arrangements, as defined by
applicable securities regulators in Canada and the United States that have, or are reasonably
likely to have, a current or future material effect on our results of operations or financial
condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Liquidity and Capitalization</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We maintain conservative financial policies and we focus on maintaining our financial strength and
flexibility through prudent financial management.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">($ Millions, except where noted)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">LIQUIDITY</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">488</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">355</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Undrawn credit facilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">738</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">605</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CAPITALIZATION</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Unsecured notes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">346</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">350</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Limited recourse debt facilities, including current portion</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">251</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">137</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">597</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">487</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shareholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,335</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,209</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total capitalization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,973</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,705</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total debt to capitalization<SUP style="font-size: 85%; vertical-align: text-top">1</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">30</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">29</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net debt to capitalization<SUP style="font-size: 85%; vertical-align: text-top">2</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<DIV style="margin-top: 3pt">
<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 nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Defined as total debt divided by total capitalization.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">2</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Defined as total debt less cash and cash equivalents divided by total capitalization
less cash and cash equivalents.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have excellent financial capacity and flexibility. Our cash balance at December&nbsp;31, 2007 was
$488&nbsp;million and we have an undrawn $250&nbsp;million credit facility that expires in 2010. We invest
cash only in highly rated instruments that have maturities of three months or less to ensure
preservation of capital and appropriate liquidity. Planned capital maintenance expenditures
directed towards major maintenance, turnarounds and catalyst changes are estimated to be
approximately $95&nbsp;million for the period to the end of 2010. In addition, the costs to restart our
900,000 tonne per year Motunui facility in 2008 are estimated to be approximately $40&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We reached financial close and secured limited recourse debt of $530&nbsp;million in May&nbsp;2007 for a
methanol project to construct a 1.3&nbsp;million tonne per year methanol facility in Egypt. We
estimate that the total remaining capital expenditures, excluding capitalized interest and
working capital, to complete the construction of the Egypt methanol facility will be
approximately $665&nbsp;million and that these expenditures will be funded through our limited
recourse debt facilities, cash generated from operations, cash on hand and cash contributed by
the non-controlling shareholders. At December&nbsp;31, 2007, our 60% share of remaining cash equity
contributions, excluding financing costs and working capital, is estimated to be approximately
$175&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We believe we are well positioned to meet financial requirements related to the methanol project
in Egypt, complete our capital maintenance spending program, complete the restart of the Motunui
facility, pursue new opportunities to enhance our leadership position in the methanol industry,
pursue investment opportunities to accelerate the development of natural gas in southern Chile,
investigate opportunities related to new methanol demand for energy applications and continue to
deliver on our commitment to return excess cash to shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">26&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Management&#146;s Discussion and Analysis
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The credit ratings for our unsecured notes at December&nbsp;31, 2007 were as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Standard and Poor&#146;s Rating Services
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">BBB&#151; (stable)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Moody&#146;s Investor Services
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ba1 (stable)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Fitch Ratings
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">BBB (stable)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Credit ratings are not recommendations to purchase, hold or sell securities and do not comment
on market price or suitability for a particular investor. There is no assurance that any rating
will remain in effect for any given period of time or that any rating will not be revised or
withdrawn entirely by a rating agency in the future.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>RISK FACTORS AND RISK MANAGEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We believe our strategy of creating value by maintaining and enhancing our leadership in the
production, marketing and delivery of methanol to customers provides us with strategic advantages.
However, as with any business, we are subject to risks that require prudent risk management. We
believe the following risks, in addition to those described under <I>Critical Accounting Estimates</I>
section on page 34, to be among the most important for understanding the issues that face our
business and our approach to risk management.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Security of Natural Gas Supply and Price</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We use natural gas as the principal feedstock for methanol and it accounts for a significant
portion of our cost of sales and operating expenses. Accordingly, our results from 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 interruptions in the supply of contracted
natural gas, we would 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: 12pt"><I>Chile</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In Chile, we purchase all natural gas through long-term take-or-pay supply agreements. Currently,
if we were receiving all of our gas contract entitlements, approximately 60% of the natural gas
for our Chilean facilities would be purchased from suppliers in Argentina with the remainder
supplied from gas suppliers in Chile, mainly by Empresa Nacional del Petroleo (ENAP), the Chilean
state-owned energy company, and with a small percentage supplied by GeoPark Chile Limited
(GeoPark), an independent natural gas producer with operations in Chile. Under current long-term
natural gas supply contracts for our Chile facilities, the percentage of natural gas supplied
from Argentina would increase to approximately 80% commencing mid-2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Since mid-June&nbsp;2007, we have not received any natural gas supply from suppliers in Argentina, and
as a result, we have been operating our facilities in Chile at significantly reduced rates since
that time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Over the past few years, Argentina has been experiencing energy shortages. To mitigate these
shortages, the government of Argentina passed regulations that require Argentinean gas suppliers
to give priority to supplying the domestic market. This, along with other delivery infrastructure
issues, resulted in curtailments of gas supply to Chile. Prior to 2007, our production facilities
in Chile suffered minor curtailments, primarily during the winter period in the southern
hemisphere. Between 2004 and 2006, we lost between 50,000 to 100,000 tonnes of methanol production
annually.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX Annual Report 2007 Management&#146;s Discussion and Analysis&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27
</DIV>


<P align="right" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 2007, the curtailments were much more significant as we lost approximately 1.6&nbsp;million tonnes of
methanol production. In mid-June of 2007, a compressor failure seriously impacted the natural gas
delivery infrastructure in the province of Tierra del Fuego in Argentina and this issue, combined
with increased domestic demand for natural gas in Argentina as a result of cold temperatures during
the winter months, resulted in the curtailment of all of our natural gas supply from Argentina.
Later in the year, the compressor issue was resolved and the domestic demand for natural gas in
Argentina stabilized with warmer temperatures. We believe that there is currently sufficient
natural gas production capability in the region to meet our full contracted supply from Argentina
and that the pipeline that transports natural gas from southern Argentina to the more populated
areas in central Argentina is operating at full capacity. However, the government of Argentina has
not yet permitted the restoration of natural gas supply to our plants for reasons which, we
believe, include maintaining domestic natural gas reserves that have decreased due, in part, to a
lower level of oil and gas exploration and development activity in Argentina.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Prior to 2007, our Chilean operations had been somewhat isolated from this curtailment issue
because of the location of our plants in the southernmost region of Chile and limited pipeline
transportation capacity to the population centers in Argentina. There is only one major pipeline
that runs from the south to the central region of Argentina. The government of Argentina is
pursuing and has committed to pipeline expansion projects, although the timing of the commencement
and completion of these projects is uncertain.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In July&nbsp;2006, the government of Argentina increased the duty on exports of natural gas from
Argentina to Chile from approximately $0.30 per mmbtu to $2.25 per mmbtu. This duty is reviewed
quarterly and is adjusted with reference to a basket of international energy prices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">While our gas contracts provide that the gas suppliers must pay any duties levied by the
government of Argentina, we contributed toward some of the cost of these duties when we were
receiving natural gas from Argentina in 2006 and the first half of 2007. We have not received any
gas from Argentina since June&nbsp;2007, and we are in continuing discussions with our natural gas
suppliers to reach commercially acceptable arrangements in the event that natural gas supply from
Argentina is restored. There can be no assurance that we will be successful in entering into
commercially acceptable arrangements with our natural gas suppliers from Argentina or that the
impact of this export duty will not have an adverse effect on our results of operations and
financial condition. As well, there can be no assurance that the natural gas suppliers will not
take the position that the imposition of such duties or other actions of the Argentinean
government relieves them of the obligation to deliver natural gas under the contracts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">There are many variables beyond our control that could affect whether we receive natural gas supply
from Argentina and we are currently unable to provide a reasonable view as to the amount of natural
gas supply, if any, that we might receive in 2008 and beyond. These variables include the actions
of the government of Argentina, the level of future oil and gas exploration activity in Argentina,
actions of our gas suppliers (including claims for contractual relief or claims of force majeure),
outcomes of ongoing or future arbitration or other proceedings, weather and other variables that
are currently unanticipated or beyond our control. We cannot provide assurance as to whether and
when and to what extent our natural gas supply from Argentina will be restored or that we will be
able to reach commercially acceptable arrangements with our natural gas suppliers, or that the
impact of these issues will not have an adverse effect on our results of operations and financial
condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During 2007, we also received less than our full natural gas supply from ENAP, our primary gas
supplier in Chile, as a result of ongoing deliverability and production issues. This resulted in
methanol production losses of approximately 0.4&nbsp;million tonnes. We cannot provide assurance that
ENAP will not continue to have deliverability and production issues or that the loss of natural gas
supply to our plants in Chile as a result of such issues will not be greater than it has been in
the past. Such losses could have an adverse effect on our results of operations and financial
condition.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt">28&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;METHANEX Annual Report 2007 Management&#146;s Discussion and Analysis
</DIV>


<P align="left" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We continue to work on sourcing additional natural gas supply for our Chile facilities from
alternative sources in Chile. We are pursuing investment opportunities with ENAP and GeoPark to
help accelerate the development of natural gas in southern Chile. Both parties are undertaking gas
exploration and development programs in areas of southern Chile that are relatively close to our
production facilities. Their exploration and development efforts are encouraging, with ENAP and
GeoPark recently announcing discoveries of commercial gas in this area. On November&nbsp;26, 2007, we
announced that we signed an agreement with GeoPark under which we will provide US$40&nbsp;million in
financing to support and accelerate GeoPark&#146;s natural gas exploration and development activities in
the Fell Block in southern Chile. Under the arrangement, GeoPark will also provide us with all
natural gas supply sourced by GeoPark from the Fell Block under a 10-year exclusive supply
agreement. In 2007, GeoPark increased deliveries to our plants. We expect our natural gas supply
from GeoPark to further increase over time. In November&nbsp;2007, the government of Chile completed an
international bidding round to assign natural gas exploration areas that lie close to our
production facilities and announced the participation of five international oil and gas companies.
Exploration and development activities in these areas in southern Chile are expected to commence
during the first half of 2008. We cannot provide assurance that ENAP, GeoPark or others will be
successful in the exploration and development of natural gas or that we would obtain any additional
natural gas from suppliers in Chile on commercially acceptable terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Trinidad</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Natural gas for our Trinidad methanol production facilities is supplied under long-term contracts
with The National Gas Company of Trinidad and Tobago Limited. The contracts for Titan and Atlas
expire 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 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">Over the past few years, large industrial natural gas consumers in Trinidad, including Methanex,
experienced periodic curtailments of natural gas supply. These curtailments resulted from a number
of different factors including difficulties encountered in bringing new offshore natural gas
delivery systems on line and various mechanical problems in the existing pipeline and distribution
systems. Also, the commissioning of new facilities consuming large amounts of natural gas put
stress on the natural gas delivery system. In 2007, one of the major gas producers in Trinidad
brought on-stream two new gas platforms. As a result, we have seen a marked improvement in gas
supply. While curtailments of natural gas to our facilities in Trinidad in 2007 were not
significant, we cannot provide assurance that we will not experience further curtailments due to
problems with gas delivery infrastructure in Trinidad and there can be no assurance that production
losses will not be materially worse than we have experienced in the recent past.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>New Zealand</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have restructured our New Zealand operations over the past few years due to natural gas supply
constraints in New Zealand. In 2004, we idled two plants (with a total capacity of up to 1.9
million tonnes per year) at our Motunui site. Since then, we have been operating our 530,000 tonne
per year Waitara Valley facility and have recently announced our intention to restart one idled
900,000 tonne per year Motunui methanol plant in mid 2008. We expect to continue to operate the
Waitara Valley facility until the Motunui plant restarts. However, there can be no assurance that
we will be able to secure additional gas for either of these facilities on commercially acceptable
terms.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX Annual Report 2007 Management&#146;s Discussion and Analysis&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29
</DIV>



<P align="right" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Commodity Price Cyclicality and Methanol Supply and Demand</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The methanol business is a highly competitive commodity industry and prices are affected by supply
and demand fundamentals and global energy prices. Methanol prices have historically been, and are
expected to continue to be, characterized by significant cyclicality. New methanol plants are
expected to be built and this will increase overall production capacity. Additional methanol supply
can also become available in the future by restarting idle methanol plants, carrying out major
expansions of existing plants or debottlenecking existing plants to increase their production
capacity. Historically, higher cost plants have been shut down or idled when methanol prices are
low but there can be no assurance that this trend will occur in the future. Demand for methanol
largely depends upon levels of global industrial production, changes in general economic conditions
and energy price.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are not able to predict future methanol supply and demand balances, market conditions,
methanol prices or global energy 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 at
all, or increase sufficiently to absorb additional production, 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. We also cannot provide assurance that high cost plants would be shut down or idled if
the price of methanol were to decline.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Changes in environmental, health and safety requirements could also lead to a decrease in methanol
demand. The United States Environmental Protection Agency (EPA)&nbsp;is preparing internal reports
relating to the human health effects of methanol including its potential carcinogenicity and its
final report is expected to be released in early 2010. Currently, the EPA does not classify
methanol with respect to carcinogenicity. We are unable to determine at this time whether the EPA
or any other body will reclassify methanol. Any reclassification 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"><B>Demand for Methanol in the Production of Formaldehyde</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 2007, methanol for the production of formaldehyde represented approximately 40% of global
methanol demand. In 2004, the United States National Cancer Institute (NCI)&nbsp;published the results
of a study that concluded there is a &#147;possible causal association&#148; between formaldehyde exposure
and nasopharyngeal cancer. The NCI is updating its original study and this update is expected to
be completed and released in the first half of 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Based in part on the NCI study, the International Agency for Research on Cancer (IARC)&nbsp;upgraded
formaldehyde from a &#147;probable&#148; to a &#147;known&#148; carcinogen in 2004. IARC, while not a regulatory
body, is influential in setting standards and protocols for various regulatory bodies around
the world.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Also in 2004, the EPA began the process of preparing an internal study that could lead to a
reclassification of formaldehyde in its Integrated Risk Information System (IRIS). IRIS is the
EPA&#146;s database on human health effects that may result from exposure to various chemicals in the
environment. IRIS is also influential as it is used by other countries for setting their national
chemical exposure limits. It is expected that the EPA will await the findings from the updated NCI
study before finalizing its review. The EPA will also be reviewing data indicating a possible link
between formaldehyde exposure and leukemia in animals. It is expected that the EPA review will be
released in mid-2008. Currently, the EPA classifies formaldehyde as &#147;a probable human carcinogen.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 2005, the United States Department of Health and Human Services announced that formaldehyde
has been nominated for reconsideration in the National Toxicology Program&#146;s (NTP)&nbsp;12th Report
on Carcinogens. The NTP is an interagency program that evaluates agents of public health
concern and currently lists formaldehyde as &#147;reasonably anticipated to be a human carcinogen.&#148;
Also in the US, the California Air Resources Board (CARB)&nbsp;voted to implement new limits for
formaldehyde emitted from composite wood products. The new limits will be implemented
commencing January&nbsp;1, 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">30&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;METHANEX Annual Report 2007 Management&#146;s Discussion and Analysis
</DIV>



<P align="left" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">There are proposals in a number of other countries to reclassify formaldehyde and reduce
permitted formaldehyde exposure levels. We are unable to determine at this time whether any of
these countries or any other bodies will reclassify formaldehyde, or whether these or any other
regulatory proposals will come into effect. Any reclassification could reduce future methanol
demand for use in producing formaldehyde, 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"><B>Demand for Methanol in the Production of MTBE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 2007, methanol for the production of MTBE represented approximately 14% of global methanol
demand. MTBE is used primarily as a source of octane and as an oxygenate for gasoline to reduce the
amount of harmful exhaust emissions from motor vehicles. During the 1990s, environmental concerns
and legislation in the United States led to the introduction of a federal oxygenate standard for
gasoline that resulted in increased demand for MTBE for use in gasoline to reduce automobile
tailpipe emissions. Subsequently, concerns were raised regarding the use of MTBE in gasoline
because gasoline containing MTBE leaked into groundwater in the United States, principally from
underground gasoline storage tanks, and was also discharged directly into drinking water reservoirs
from recreational watercraft. MTBE is more easily detectable in water than many other gasoline
components. The presence of MTBE in some water supplies led to public concern about MTBE&#146;s
potential to contaminate drinking water supplies. Several states including California, New York,
New Jersey and Connecticut, have, since 2003, banned the use of MTBE as a gasoline component and
this reduced demand for methanol in the United States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 2005, the United States federal government passed the Energy Policy Act (EPACT), which contains
provisions that had the effect of further reducing demand for MTBE in the United States. While
EPACT did not provide for a federal ban on the use of MTBE in gasoline, it waived the federal
oxygenate standard for gasoline effective May&nbsp;2006 and did not provide MTBE producers and blenders
with defective product liability protection.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 2007, we believe that methanol was not used in the United States to make MTBE for use in
domestic fuel blending, however, approximately 0.9&nbsp;million tonnes per year of methanol continues
to be used in the production of MTBE in the United States for non-fuel use and for export markets.
Demand for methanol for MTBE in the United States may decline further. The pace of decline of such
demand is uncertain and will be determined by various factors including the export economics of
MTBE producers in the United States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Additionally, the Environmental Protection Agency in the United States is preparing an Integrated
Risk Information System (IRIS)&nbsp;review of the human health effects of MTBE including its potential
carcinogenicity, and its final report is expected to be released in mid-2010. The European Union
issued a final risk assessment report on MTBE in 2002 that permitted the continued use of MTBE,
although several risk reduction measures relating to the storage and handling of MTBE-containing
fuel were recommended. However, governmental efforts in some European Union countries to promote
bio-fuels and alternative fuels through legislation and tax policy are putting competitive
pressures on the use of MTBE in gasoline in Europe. Several European MTBE production facilities are
now producing ethyl tertiary butyl ether (ETBE), which does not contain methanol, to take advantage
of these tax incentives to produce bio-fuels.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Elsewhere in the world, MTBE continues to be used as a source of octane, but with growing usage
for its clean air benefits. We believe that there is potential for continuing growth in MTBE use
outside the United States and Europe. Our belief is based on actions being taken around the world
to reduce lead, benzene and other aromatics in gasoline and to improve the emissions performance
of vehicles generally. A number of Asian countries, including China, have adopted European
specifications for gasoline formulations. This is expected to lead to increased consumption of
MTBE in these markets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All of these recent developments lead us to believe that in 2008 and 2009, global demand for MTBE
may decline slightly due to declining MTBE production in the United States and increasing
incentives for biofuels in Europe and Latin America. However, we expect that demand for MTBE in
Asia and the Middle East will remain healthy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We cannot provide assurance that further legislation banning or restricting the use of MTBE or
promoting alternatives to MTBE will not be passed or that negative public perceptions won&#146;t
develop outside of the United States, either of which would lead to a further decrease in the
global demand for methanol for use in MTBE.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Management&#146;s Discussion and Analysis&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Foreign Operations</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We currently have substantial operations and investments outside of North America, including
Chile, Trinidad, New Zealand, Egypt, Europe and Asia. We are subject to risks inherent in foreign
operations such as: loss of revenue, property and equipment as a result of expropriation, import
or export restrictions, nationalization, war, insurrection, terrorism and other political risks,
increases in duties, taxes and governmental royalties, renegotiation of contracts with
governmental entities, as well as changes in laws or policies or other actions by governments that
may adversely affect our operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 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">The dominant currency in which we conduct business is the United States dollar, which is also
our reporting currency. The most significant components of our costs are natural gas feedstock
and ocean shipping costs and substantially all of these costs are incurred in United States
dollars. Some of our underlying operating costs and capital expenditures, however, are incurred
in currencies other than the United States dollar, principally the Canadian dollar, the Chilean
peso, the Trinidad and Tobago dollar, the New Zealand dollar and the euro. We are exposed to
increases in the value of these currencies that could have the effect of increasing the United
States 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 United States dollar, which could have the effect of
decreasing the United States dollar equivalent of our revenue.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Operational Risks</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Substantially all of our earnings are derived from the sale of methanol produced at our plants.
Our business is subject to the risks of operating methanol production facilities, such as
unforeseen equipment breakdowns, interruptions in the supply of natural gas and other feedstocks,
power failures, longer than anticipated planned maintenance activities, loss of port facilities,
natural disasters or any other event, including unanticipated events beyond our 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 have an
adverse affect on our revenues and operating income. Excess capacity within our fleet of ocean
vessels resulting from a prolonged plant shutdown or other event could also have an adverse effect
on our operating income. Additionally, disruptions in our distribution system could adversely
affect our revenues and operating income. Although we maintain operational and construction
insurances, including business interruption insurance and delayed start-up insurance, we cannot
provide assurance that we will not incur losses beyond the limits of, or outside the coverage of,
such 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 align="left" style="font-size: 10pt; margin-top: 6pt">Our trade in methanol is subject to duties in certain jurisdictions. We cannot provide assurance
that the duties that we are currently subject to will not increase, that duties will not be
levied in other jurisdictions in the future or that we will be able to mitigate the impact of
current or future duties, if levied.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">32&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Management&#146;s Discussion and Analysis
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Project under Construction</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are currently constructing a 1.3&nbsp;million tonne per year methanol facility with our joint
venture partners in Egypt. While we believe that our estimates of project costs and anticipated
completion for the Egyptian project are reasonable, we cannot provide any assurance that the cost
estimates will not be exceeded or that the facility will commence commercial production within the
anticipated schedule, if at all.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>New Capital Projects</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As part of our strategy to strengthen our position as the global leader in the production and
marketing of methanol, we intend to continue to pursue new opportunities to enhance our strategic
position in the methanol industry.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our ability to successfully identify, develop and complete new capital projects is subject to a
number of risks, including finding and selecting favourable locations for new facilities where
sufficient natural gas and other feedstock 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 or develop new methanol projects.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Competition</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The methanol industry is highly competitive. Methanol is a global commodity and customers base
their purchasing decisions principally on the delivered price of methanol and reliability of
supply. 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 align="left" style="font-size: 10pt; margin-top: 12pt"><B>Environmental Regulation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The countries in which we operate have laws and regulations to which we are subject governing the
environment and the 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 emissions and 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 that complied with applicable laws at the time such acts were
performed. The operation of chemical manufacturing plants and the distribution of methanol exposes
us to risks in connection with compliance with such laws and we cannot provide assurance that we
will not incur material costs or liabilities.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Management&#146;s Discussion and Analysis&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>OUTLOOK</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Methanol is a global chemical commodity and our earnings are significantly affected by
fluctuations in the methanol price, which is directly impacted by the balance of methanol supply
and demand. Demand growth for methanol is driven primarily by growth in industrial production,
energy prices and the strength of the global economy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We estimate that global demand for methanol in 2007 increased by approximately 4% over 2006 to a
total of 40&nbsp;million tonnes. The increase in demand was driven primarily by an increase in demand
for methanol in China, both in traditional chemical derivatives and non-traditional energy
applications such as fuel blending and DME. Also there was healthy global demand for methanol in
the traditional chemical derivatives markets. During 2007, there were numerous smaller scale
capacity additions in China representing approximately 3.5&nbsp;million tonnes per year. In 2007, the
major capacity additions outside of China included the 1.7&nbsp;million tonne per year Zagros 1
facility in Iran and the 1.0&nbsp;million tonne per year facility in Oman.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During the second half of 2007 global inventory levels were very low as a result of planned and
unplanned supplier outages, including our own Chile facilities, and strong demand. As a result,
methanol prices increased substantially in October and continued to increase over the remainder of
2007. During 2008, we expect to see new non-traditional demand growth for methanol for energy
related uses such as DME and fuel blending. We believe that supply and demand fundamentals will be
balanced to tight during 2008 and that methanol prices will be underpinned by strong demand in
China and global energy prices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Over the two-year period to the end of 2009, it is expected that new capacity and expansions will
add approximately 5.1&nbsp;million tonnes of capacity to the global industry outside of China. We
believe that this new capacity could be offset by demand growth outside of China, import growth
into China and closures of high cost capacity in the industry. We believe that outside China,
approximately 2.0&nbsp;million tonnes of capacity could shut down as a result of high feedstock prices
including various plants in India, Germany, Eastern Europe, the United States and Russia.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">By the end of 2009, we believe that China will add in excess of 10&nbsp;million tonnes of new methanol
capacity. We also believe that most of this new capacity will be coal-based production that will
meet domestic Chinese derivative and energy market demand for methanol and is not expected to
compete in the international market with natural gas produced methanol. The Chinese methanol
industry has historically operated at low rates and there has been increasing pressure on its cost
structure as a result of escalating feedstock costs for both coal and natural gas based producers,
and the cost for Chinese producers to export has escalated as a result of reduced fiscal incentives
and an appreciating local currency. In addition, the majority of the methanol produced in China is
coal-based which is typically lower quality and often not suitable for many international
customers. We also believe that methanol demand growth for both traditional and energy related uses
will remain strong in China which will require significant capacity expansion and good operating
rates in China in order to satisfy the growth in its domestic demand. As a result, under a normal
pricing environment, we believe that substantially all existing and new methanol capacity in China
will be consumed in the local market and that imports of methanol into China will increase over
time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The methanol price will ultimately depend on industry operating rates, global energy prices, the
rate of industry restructuring and the strength of global demand. We believe that our excellent
financial position and financial flexibility, outstanding global supply network and competitive
cost position will provide a sound basis for Methanex continuing to be the leader in the methanol
industry.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>CRITICAL ACCOUNTING ESTIMATES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We believe the following selected accounting policies and issues are critical to
understanding the estimates, assumptions and uncertainties that affect the amounts reported
and disclosed in our consolidated financial statements and related notes. See note 1 to our
2007 consolidated financial statements for our significant accounting policies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">34&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Management&#146;s Discussion and Analysis
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Property, Plant and Equipment</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our business is capital intensive and has required, and will continue to require, significant
investments in property, plant and equipment. At December&nbsp;31, 2007, the net book value of our
property, plant and equipment was $1,542&nbsp;million. We estimate the useful lives of property, plant
and equipment and this is used as the basis for recording depreciation and amortization.
Recoverability of property, plant and equipment is measured by comparing the net book value of an
asset to the undiscounted future net cash flows expected to be generated from the asset over its
estimated useful life. An impairment charge is recognized in cases where the undiscounted expected
future cash flows from an asset are less than the net book value of the asset. The impairment
charge is equal to the amount by which the net book value of the asset exceeds its fair value. Fair
value is based on quoted market values, if available, or alternatively using discounted expected
future cash flows.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">There are a number of uncertainties inherent in estimating future net cash flows to be generated
by our production facilities. These include, among other things, assumptions regarding future
supply and demand, methanol pricing, availability and pricing of natural gas supply, and
production and distribution costs. Changes in these assumptions will impact our estimates of
future net cash flows and could impact our estimates of the useful lives of property, plant and
equipment. Consequently, it is possible that our future operating results could be adversely
affected by asset impairment charges or by changes in depreciation and amortization rates related
to property, plant and equipment. As at December&nbsp;31, 2007, we performed asset impairment analysis
for certain of our production assets and determined that an impairment charge was not required.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Asset Retirement Obligations</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We record asset retirement obligations at fair value when incurred for those sites where a
reasonable estimate of the fair value can be determined. At December&nbsp;31, 2007, we had accrued $15
million for asset retirement obligations. Inherent uncertainties exist because the restoration
activities will take place in the future and there may be changes in governmental and
environmental regulations and changes in removal technology and costs. It is difficult to
estimate the true costs of these activities as our estimate of fair value is based on today&#146;s
regulations and technology. Because of uncertainties related to estimating the cost and timing of
future site restoration activities, future costs could differ materially from the amounts
estimated.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Income Taxes</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Future income tax assets and liabilities are determined using enacted tax rates for the effects of
net operating losses and temporary differences between the book and tax bases of assets and
liabilities. We record a valuation allowance on future tax assets, when appropriate, to reflect the
uncertainty of realization of future tax benefits. In determining the appropriate valuation
allowance, certain judgments are made relating to the level of expected future taxable income and
to available tax planning strategies and their impact on the use of existing loss carryforwards and
other income tax deductions. In making this analysis, we consider historical profitability and
volatility to assess whether we believe it to be more likely than not that the existing loss
carryforwards and other income tax deductions will be used to offset future taxable income
otherwise calculated. Our management routinely reviews these judgments. At December&nbsp;31, 2007, we
had future income tax assets of $299&nbsp;million that are substantially offset by a valuation allowance
of $236&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The determination of income taxes requires the use of judgment and estimates. If certain
judgments or estimates prove to be inaccurate, or if certain tax rates or laws change, our
results of operations and financial position could be materially impacted.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Management&#146;s Discussion and Analysis&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>NEW CANADIAN ACCOUNTING STANDARDS ADOPTED IN 2007</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Financial Instruments &#151; Recognition and Measurement, Hedges and Comprehensive Income</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On January&nbsp;1, 2007, the Company adopted the Canadian Institute of Chartered Accountants (&#147;CICA&#148;)
Handbook Section&nbsp;1530, <I>Comprehensive Income</I>, Section&nbsp;3251, <I>Equity</I>, Section&nbsp;3855, <I>Financial
Instruments &#151; Recognition and Measurement</I>, Section&nbsp;3861, <I>Financial Instruments &#151; Disclosure and
Presentation</I>, and Section&nbsp;3865, <I>Hedges</I>. These standards address when an entity should recognize a
financial instrument on its balance sheet and how it should measure the financial instrument once
recognized. These standards also provide guidance on applying hedge accounting and provide
alternative treatments for entities that choose to designate qualifying transactions as hedges for
accounting purposes. Comprehensive income is also introduced as a concept in Canadian accounting
with a requirement to present certain unrealized gains and losses outside net income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As a result of the adoption of these new standards, as at December&nbsp;31, 2007, unrealized losses
of $8.7&nbsp;million relating to derivative financial instruments used to hedge exposure to
variability in foreign exchange rates and variable interest rates were recorded in accumulated
other comprehensive income.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ANTICIPATED CHANGES TO CANADIAN GENERALLY ACCEPTED ACCOUNTING PRINCIPLES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Inventories</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In June&nbsp;2007, the CICA issued Section&nbsp;3031, <I>Inventories</I>, which replaces Section&nbsp;3030 and
harmonizes the Canadian standards related to inventories with International Financial Reporting
Standards (IFRS). This Section provides changes to the measurement and more extensive guidance on
the determination of cost, including allocation of overhead; narrows the permitted cost formulas;
requires impairment testing; and expands the disclosure requirements to increase transparency.
This Section became effective for our Company beginning January&nbsp;1, 2008. We are currently
reviewing the impact of this Section and do not believe this will have a material impact on our
financial results.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Financial Instruments &#151; Disclosure and Presentation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In December&nbsp;2006, the CICA issued Section&nbsp;3862, <I>Financial Instruments &#151; Disclosure </I>and Section
3863, <I>Financial Instruments &#151; Presentation</I>. These sections revise and enhance disclosure and
presentation of financial instruments and place increased emphasis on disclosures about the nature
and extent of risks arising from financial instruments and how those risks are managed. These
Sections became effective for our Company beginning January&nbsp;1, 2008. We are currently reviewing the
impact of these Sections and their impact on our disclosure and presentation of financial
instruments.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Capital Disclosures</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In December&nbsp;2006, the CICA issued Section&nbsp;1535, <I>Capital Disclosures</I>. This Section established
standards for disclosing information about an entity&#146;s capital and how it is managed. This
Section became effective for our Company beginning January&nbsp;1, 2008. We are currently reviewing
the impact of this Section and its impact on our capital disclosures.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>International Financial Reporting Standards</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 2005, the Canadian Accounting Standards Board (AcSB) announced that accounting standards in
Canada are to converge with International Financial Reporting Standards (IFRS)&nbsp;which are issued
by the International Accounting Standards Board (IASB). On February&nbsp;13, 2008, the AcSB confirmed
January&nbsp;1, 2011 as the official transition date for publicly listed Canadian companies to report
under IFRS. While IFRS uses a conceptual framework similar to Canadian GAAP, there are
significant differences in accounting policies that must be addressed. We are currently assessing
the future impact of these new standards on our consolidated financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">36&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Management&#146;s Discussion and Analysis
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">There are currently provisions under National Instrument (NI)&nbsp;52-107, as set forth by Canadian
Securities Administrators (CSA)&nbsp;that permits SEC issuers, including domestic issuers that are SEC
registrants, to file with Canadian securities regulators using financial statements prepared in
accordance with US GAAP. However, the CSA have tentatively concluded that they should not allow
Canadian companies to use US GAAP as a reporting framework for financial years beginning on or
after January&nbsp;1, 2009, with the exception that SEC registrants filing US GAAP financial statements
in Canada for financial years ending on or before December&nbsp;31, 2008, could continue doing so for
five years (i.e. until 2013), at which time they would need to adopt IFRS.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>SUPPLEMENTAL NON&#151;GAAP MEASURES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In addition to providing measures prepared in accordance with Canadian GAAP, we present certain
supplemental non-GAAP measures. These are Adjusted EBITDA, return on capital employed, operating
income, cash flows from operating activities before changes in non-cash working capital, income
before unusual items (after-tax) and diluted income before unusual items (after-tax) per share.
These measures do not have any standardized meaning prescribed by Canadian GAAP and therefore are
unlikely to be comparable to similar measures presented by other companies. We believe these
measures are useful in evaluating the operating performance and liquidity of the Company&#146;s ongoing
business. These measures should be considered in addition to, and not as a substitute for, net
income, cash flows and other measures of financial performance and liquidity reported in accordance
with Canadian GAAP.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Adjusted EBITDA</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This supplemental non-GAAP measure is provided to help readers determine our ability to generate
cash from operations. We believe this measure is useful in assessing performance and highlighting
trends on an overall basis. We also believe Adjusted EBITDA is frequently used by securities
analysts and investors when comparing our results with those of other companies. Adjusted 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, stock-based compensation expense
and other non-cash items net of cash payments, interest expense, interest and other income, and
current income taxes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table shows a reconciliation of cash flows from operating activities to Adjusted
EBITDA:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">($ Millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flows from operating activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">527</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">469</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Add (deduct):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Changes in non-cash working capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(33</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">154</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Stock-based compensation, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(11</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest and other income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(27</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Income taxes &#151; current</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">161</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">154</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjusted EBITDA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">652</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">800</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Return on Capital Employed (ROCE)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This supplemental non-GAAP measure is provided to assist readers in determining our ability to
generate returns in excess of our cost of capital. Return on capital employed is calculated by
dividing income before unusual items and interest expense (after tax) by average productive
capital employed. Average productive capital employed is calculated as the sum of average total
assets less the average of Egypt plant under construction and the average of current non-interest
bearing liabilities.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Management&#146;s Discussion and Analysis&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Operating Income and Cash Flows from Operating Activities before non-Cash working Capital</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Operating income and cash flows from operating activities before changes in non-cash working
capital are reconciled to Canadian GAAP measures in our consolidated statement of income and
consolidated statement of cash flows, respectively.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Income before Unusual Items (After-Tax) and Diluted Income before Unusual Items (After-Tax) per
Share</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">These supplemental non-GAAP measures are provided to help readers compare earnings from one period
to another without the impact of unusual items that are considered by management to be
non-operational and/or non-recurring. Diluted income before unusual items (after-tax) per share has
been calculated by dividing income before unusual items (after-tax) by the diluted weighted average
number of common shares outstanding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table shows a reconciliation of net income to income before unusual items
(after-tax) and the calculation of diluted income before unusual items (after-tax) per
share:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">($ Millions, except where noted)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">376</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">483</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Add (deduct)&nbsp;unusual items:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Future income tax adjustment related to retroactive change in tax legislation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(26</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income before unusual items (after-tax)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">376</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">457</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Diluted weighted average number of common shares outstanding (millions)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">102</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">109</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Diluted income before unusual items (after-tax) per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>QUARTERLY FINANCIAL DATA (UNAUDITED)</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000">Three months ended</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">($ Millions, except where noted)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Dec 31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Sep 30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Jun 30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Mar 31</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">731</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">395</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">466</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">674</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">172</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">145</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Basic net income per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Diluted net income per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">668</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">519</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">460</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">113</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">82</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">115</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Basic net income per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.02</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Diluted net income per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.02</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A discussion and analysis of our results for the fourth quarter of 2007 is set out in our fourth
quarter of 2007 Management&#146;s Discussion and Analysis filed with Canadian Securities
Administrators and the US Securities and Exchange Commission and incorporated herein by
reference.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>SELECTED ANNUAL INFORMATION</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">($ Millions, except where noted)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,266</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,108</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">376</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">483</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Basic net income per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.43</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Diluted net income per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash dividends declared per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.545</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.485</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,870</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,453</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total long-term financial liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">656</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">542</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">38&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Management&#146;s Discussion and Analysis
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>CONTROLS AND PROCEDURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Disclosure Controls and Procedures</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Disclosure controls and procedures are those controls and procedures that are designed to ensure
that the information required to be disclosed in the filings under applicable securities
regulations is recorded, processed, summarized and reported within the time periods specified. As
at December&nbsp;31, 2007, under the supervision and with the participation of our management,
including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of
the effectiveness of the design and operation of the Company&#146;s disclosure controls and procedures.
Based on this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded
our disclosure controls and procedures are effective.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Management&#146;s Annual Report on Internal Control over Financial Reporting</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Management is responsible for establishing and maintaining adequate internal control over
financial reporting. Internal control over financial reporting includes those policies and
procedures that: (1)&nbsp;pertain to the maintenance of records that, in reasonable detail, accurately
and fairly reflect the transactions and dispositions of our assets; (2)&nbsp;provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that our receipts and
expenditures are being made only in accordance with authorizations of our management and
directors; and (3)&nbsp;provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of our assets that could have a material effect on
the financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The design of any system of controls and procedures is based in part upon certain assumptions
about the likelihood of future events. There can be no assurance that any design will succeed in
achieving its stated goals under all potential future conditions, regardless of how remote.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under the supervision and with the participation of our Chief Executive Officer and our Chief
Financial Officer, management conducted an evaluation of the effectiveness of our internal
control over financial reporting, as of December&nbsp;31, 2007, based on the framework set forth in
<I>Internal Control-Integrated Framework </I>issued by the Committee of Sponsoring Organizations of the
Treadway Commission (COSO). Based on its evaluation under this framework, management concluded
that our internal control over financial reporting was effective as of that date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">KPMG LLP (&#147;KPMG&#148;), an independent registered public accounting firm, who audited and reported on
our consolidated financial statements, has issued an attestation report on the effectiveness of
our internal control over financial reporting as of December&nbsp;31, 2007. The attestation report is
included on page 43 of our consolidated financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Changes in Internal Control over Financial Reporting</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">There have been no changes during the year ended December&nbsp;31, 2007 to internal control over
financial reporting that have materially affected, or are reasonably likely to materially affect,
internal controls over financial reporting.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Management&#146;s Discussion and Analysis&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>FORWARD-LOOKING STATEMENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Statements made in this document that are based on our current objectives, expectations, estimates
and projections constitute forward-looking statements. These statements include forward-looking
statements both with respect to us and the chemicals industry. Statements that include the words
&#147;believes,&#148; &#147;expects,&#148; &#147;may,&#148; &#147;will,&#148; &#147;should,&#148; &#147;seeks,&#148; &#147;intends,&#148; &#147;plans,&#148; &#147;estimates,&#148;
&#147;anticipates,&#148; or the negative version of those words or other comparable terminology and similar
statements of a future or forward-looking nature identify forward-looking statements. Methanex
believes that it has a reasonable basis for making such forward-looking statements. Forward-looking
statements are based on our experience, our perception of trends, current conditions and expected
future developments as well as other factors. Certain material factors or assumptions were applied
in drawing the conclusions or making the forecasts or projections that are included in these
forward-looking statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Forward-looking statements, by their nature, involve risks and uncertainties that could cause
actual results to differ materially from those contemplated in the forward-looking statements,
including, without limitation, worldwide economic conditions; conditions in the methanol and other
industries, including the supply of methanol; demand for methanol and its derivatives; actions of
competitors and suppliers; actions of governments including changes in laws or regulations; the
ability to implement business strategies, pursue business opportunities and maintain and enhance
our competitive advantages; risks attendant with methanol production and marketing, including
operational disruption; risks attendant with carrying out capital expenditure projects, including
the ability to obtain financing and complete the projects on time and on budget; availability and
price of natural gas feedstock; global energy prices; foreign exchange risks; raw material and
other production costs; transportation costs; the ability to attract and retain qualified
personnel; risks associated with investments and operations in multiple jurisdictions; and other
risks discussed in the <I>Risk Factors and Risk Management </I>section on page 27 in our 2007 Management&#146;s
Discussion and Analysis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Having in mind these and other factors, investors and other readers are cautioned not to place
undue reliance on forward-looking statements. They are not a substitute for the exercise of one&#146;s
own due diligence and judgment. The outcomes anticipated in forward-looking statements may not
occur and we do not undertake to update forward-looking statements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">40&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Management&#146;s Discussion and Analysis
</DIV>


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-3
<SEQUENCE>4
<FILENAME>o38546exv3.htm
<DESCRIPTION>EXHIBIT-3
<TEXT>
<HTML>
<HEAD>
<TITLE>Financial Statement 12/31/2007</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;3
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Responsibility for Financial Reporting
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The consolidated financial statements and all financial information contained in the annual report
are the
responsibility of management. The consolidated financial statements have been prepared in
accordance with
Canadian generally accepted accounting principles and, where appropriate, have incorporated
estimates based on
the best judgment of management.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Management is responsible for establishing and maintaining adequate internal control over financial
reporting.
Under the supervision and with the participation of our management, including our Chief Executive
Officer and
Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control
over financial
reporting based on the internal control framework set out in Internal Control &#151; Integrated
Framework issued by the
Committee of Sponsoring Organizations of the Treadway Commission. Based on our evaluation, our
management
concluded that our internal control over financial reporting was effective as of December&nbsp;31, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Board of Directors is responsible for ensuring that management fulfills its responsibilities
for financial reporting
and internal control, and is responsible for reviewing and approving the consolidated financial
statements. The
Board carries out this responsibility principally through the Audit, Finance and Risk Committee
(the Committee).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Committee consists of five non-management directors, all of whom are independent as defined by
the
applicable rules in Canada and the United States. The Committee is appointed by the Board to assist
the Board in
fulfilling its oversight responsibility relating to: the integrity of the Company&#146;s financial
statements, news releases
and securities filings; the financial reporting process; the systems of internal accounting and
financial controls; the
professional qualifications and independence of the external auditor; the performance of the
external auditors; risk
management processes; financing plans; pension plans; and the Company&#146;s compliance with ethics
policies and
legal and regulatory requirements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Committee meets regularly with management and the Company&#146;s auditors, KPMG LLP, Chartered
Accountants,
to discuss internal controls and significant accounting and financial reporting issues. KPMG have
full and
unrestricted access to the Committee. KPMG audited the consolidated financial statements and the
effectiveness
of internal controls over financial reporting. Their opinions are included in the annual report.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><IMG src="o38546o3854634.gif" alt="-s- Terence Poole">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><IMG src="o38546o3854611.gif" alt="-s- Bruce Aitken">
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><IMG src="o38546o3854612.gif" alt="-s- Ian Cameron"></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Terence Poole
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bruce Aitken
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ian Cameron</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Chairman of the Audit, Finance and
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Senior Vice President, Finance and</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Risk Committee
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Executive Officer
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Financial Officer</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">February&nbsp;29, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX&nbsp;&nbsp;&nbsp;Annual
Report 2007&nbsp;&nbsp;&nbsp;<B>Consolidated Financial Statements</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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


<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Auditors&#146; Report
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have audited the consolidated balance sheets of Methanex Corporation (&#147;the Company&#148;) as at
December&nbsp;31,
2007 and 2006 and the consolidated statements of income, shareholders&#146; equity, comprehensive income
and cash
flows for the years then ended. These financial statements are the responsibility of the Company&#146;s
management.
Our responsibility is to express an opinion on these financial statements based on our audits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We conducted our audits in accordance with Canadian generally accepted auditing standards. With
respect to the
consolidated financial statements for the years ended December&nbsp;31, 2007 and 2006, we also conducted
our audit in
accordance with the standards of the Public Company Accounting Oversight Board (United States).
Those standards
require that we plan and perform an audit to obtain reasonable assurance whether the financial
statements are
free of material misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts
and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In our opinion, these consolidated financial statements present fairly, in all material respects,
the financial position
of the Company as at December&nbsp;31, 2007 and 2006 and the results of its operations and its cash
flows for the years
then ended in accordance with Canadian generally accepted accounting principles.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We also have audited, in accordance with the standards of the Public Company Accounting Oversight
Board
(United States), the Company&#146;s internal control over financial reporting as of December&nbsp;31, 2007,
based on the
criteria established in Internal Control &#151; Integrated Framework issued by the Committee of
Sponsoring Organizations
of the Treadway Commission (COSO), and our report dated February&nbsp;29, 2008, expressed an unqualified
opinion on
the effectiveness of the Company&#146;s internal control over financial reporting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><IMG src="o38546o3854613.gif" alt="()"><br>
Chartered Accountants<br>
Vancouver, Canada<br>
February&nbsp;29, 2008
</DIV>

 <DIV align="left" style="font-size: 10pt; margin-top: 12pt">42&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;<B>Consolidated Financial Statements</b>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Report of Independent Registered Public Accounting Firm
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To the Shareholders and Board of Directors of Methanex Corporation
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have audited Methanex Corporation&#146;s (&#147;the Company&#148;) internal control over financial reporting as
of December
31, 2007, based on the criteria established in Internal Control &#151; Integrated Framework issued by
the Committee of
Sponsoring Organizations of the Treadway Commission (COSO). The Company&#146;s management is responsible
for
maintaining effective internal control over financial reporting and for its assessment of the
effectiveness of internal
control over financial reporting, included in the section entitled &#147;Management&#146;s Annual Report on
Internal Controls
over Financial Reporting&#148; included in Management&#146;s Discussion and Analysis. Our responsibility is
to express an
opinion on the effectiveness of the Company&#146;s internal control over financial reporting based on
our audit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We conducted our audit in accordance with the standards of the Public Company Accounting Oversight
Board
(United States). Those standards require that we plan and perform the audit to obtain reasonable
assurance about
whether effective internal control over financial reporting was maintained in all material
respects. Our audit included
obtaining an understanding of internal control over financial reporting, assessing the risk that a
material weakness
exists, and testing and evaluating the design and operating effectiveness of internal control based
on the assessed
risk. Our audit also included performing such other procedures as we considered necessary in the
circumstances.
We believe that our audit provides a reasonable basis for our opinion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A company&#146;s internal control over financial reporting is a process designed to provide reasonable
assurance
regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in
accordance with generally accepted accounting principles. A company&#146;s internal control over
financial reporting
includes those policies and procedures that (1)&nbsp;pertain to the maintenance of records that, in
reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the company; (2)
provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial statements
in accordance
with generally accepted accounting principles, and that receipts and expenditures of the company
are being made
only in accordance with authorizations of management and directors of the company; and (3)&nbsp;provide
reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition
of the company&#146;s
assets that could have a material effect on the financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Because of its inherent limitations, internal control over financial reporting may not prevent or
detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject
to the risk that
controls may become inadequate because of changes in conditions, or that the degree of compliance
with the
policies or procedures may deteriorate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In our opinion, the Company maintained, in all material respects, effective internal control over
financial reporting as
of December&nbsp;31, 2007, based on the criteria established in Internal Control &#151; Integrated Framework
issued by the
Committee of Sponsoring Organizations of the Treadway Commission (COSO).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We also have conducted our audits on the consolidated financial statements in accordance with
Canadian generally
accepted auditing standards. With respect to the years ended December&nbsp;31, 2007 and 2006, we also
have conducted
our audits in accordance with the standards of the Public Company Accounting Oversight Board
(United States). Our
report dated February&nbsp;29, 2008, expressed an unqualified opinion on those consolidated financial
statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><IMG src="o38546o3854613.gif" alt="()"><br>
Chartered Accountants<br>
Vancouver, Canada<br>
February&nbsp;29, 2008
</DIV>

 <DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;<B>Consolidated Financial Statements</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Consolidated Balance Sheets</I><BR>
<I>(thousands of US dollars, except number of common shares)</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">As at December 31</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>ASSETS</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">488,224</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">355,054</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Receivables (note 2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">401,843</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">366,387</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Inventories</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">312,143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">244,766</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Prepaid expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,889</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,047</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,223,099</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">990,254</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Property, plant and equipment (note 3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,542,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,362,281</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other assets (note 5)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">104,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100,518</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,869,899</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,453,053</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>LIABIlITIES AND SHAREHOLDERS&#146; EQUITY</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accounts payable and accrued liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">466,020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">309,979</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Current maturities on long-term debt (note 6)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,032</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Current maturities on other long-term liabilities (note 7)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,965</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,022</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">498,267</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">341,033</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt (note 6)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">581,987</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">472,884</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other long-term liabilities (note 7)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74,431</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68,818</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Future income tax liabilities (note 11)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">338,602</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">351,918</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,258</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,149</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shareholders&#146; equity:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Capital stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">25,000,000 authorized preferred shares without nominal or par value
Unlimited authorization of common shares without nominal or par value
Issued and outstanding common shares at December&nbsp;31, 2007
was 98,310,254 (2006 &#151; 105,800,942)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">451,640</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">474,739</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Contributed surplus</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,021</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,346</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Retained earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">876,348</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">724,166</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accumulated other comprehensive loss (note 1(m))</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,655</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,335,354</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,209,251</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,869,899</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,453,053</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Commitments and contingencies (note 16)</I><BR>
<I>See accompanying notes to consolidated financial statements.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Approved by the Board:

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><IMG src="o38546o3854634.gif" alt="-s- Terence Poole">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><IMG src="o38546o3854611.gif" alt="-s- Bruce Aitken"></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Terence Poole</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Bruce Aitken</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Director
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


 <DIV align="left" style="font-size: 10pt; margin-top: 12pt">44&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Consolidated Financial Statements
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Consolidated Statements of Income</I><BR>
<I>(thousands of US dollars, except number of common shares and per share amounts)</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">For the years ended December 31</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,266,521</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,108,250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cost of sales and operating expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,614,179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,308,175</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Depreciation and amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">112,428</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106,828</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">539,914</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">693,247</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense (note 9)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(43,911</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(44,586</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest and other income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,862</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,598</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income before income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">522,865</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">658,259</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income taxes (note 11):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Current</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(160,514</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(154,466</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Future</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,316</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(46,597</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Future income tax recovery related to change in tax legislation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,753</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(147,198</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(175,310</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">375,667</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">482,949</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Basic net income per common share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3.69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4.43</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Diluted net income per common share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3.68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4.41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average number of common shares outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">101,717,341</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">109,110,689</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Diluted weighted average number of common shares outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">102,129,929</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">109,441,404</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>See accompanying notes to consolidated financial statements.</I>
</DIV>

 <DIV align="right" style="font-size: 10pt; margin-top: 12pt">
METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;
Consolidated Financial Statements&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Consolidated Statements of Shareholders&#146; Equity</I><BR>
<I>(thousands of US dollars, except number of common shares)</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Accumulated</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Other</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Number of</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Comprehensive</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Total</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Common</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Capital</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Contributed</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Retained</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Income (Loss)</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Shareholders&#146;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">shares</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Stock</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Surplus</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Earnings</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">(note 1(m))</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Equity</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="3" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance, December&nbsp;31, 2005</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">113,645,292</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">502,879</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">442,492</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">949,514</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&#151;              </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">482,949</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">482,949</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Compensation expense
recorded for stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,568</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,568</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Issue of shares on exercise
of stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">680,950</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,519</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,519</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Reclassification of grant date
fair value on exercise
of stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,365</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,365</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Payment for shares
repurchased</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,525,300</TD>
    <TD nowrap>)</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(38,024</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(148,755</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(186,779</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Dividend payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(52,520</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(52,520</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="3" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance, December&nbsp;31, 2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">105,800,942</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">474,739</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,346</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">724,166</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,209,251</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">375,667</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">375,667</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Compensation expense
recorded for stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,343</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,343</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Issue of shares on exercise
of stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">552,175</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,520</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,520</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Reclassification of grant date
fair value on exercise
of stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,668</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,668</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Payment for shares
repurchased</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,042,863</TD>
    <TD nowrap>)</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(36,287</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(168,440</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(204,727</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Dividend payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(55,045</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(55,045</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other comprehensive loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,655</TD>
    <TD nowrap>)</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,655</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="3" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance, December&nbsp;31, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98,310,254</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">451,640</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">16,021</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">876,348</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(8,655</TD>
    <TD nowrap>)</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,335,354</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD colspan="3" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>See accompanying notes to consolidated financial statements.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Consolidated Statement of Comprehensive Income</I><BR>
<I>(thousands of US dollars)</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">For the year ended December 31</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">375,667</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other comprehensive loss:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Change in fair value of forward exchange contracts, net of tax (note 1(m), 13(a))</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(45</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Change in fair value of interest rate swap contracts, net of tax (note 1(m), 13(c))</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,610</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,655</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Comprehensive income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">367,012</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>See accompanying notes to consolidated financial statements.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">46&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Consolidated Financial Statements
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Consolidated Statements of Cash Flows</I><BR>
<I>(thousands of US dollars)</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">For the years ended December 31</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>CASH FLOWS FROM OPERATING ACTIVITIES</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">375,667</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">482,949</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Add (deduct):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Depreciation and amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">112,428</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106,828</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Future income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,316</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,844</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Stock-based compensation, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,491</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,669</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,201</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flows from operating activities before undernoted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">493,939</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">622,920</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Changes in non-cash working capital (note 12)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,396</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(154,083</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">527,335</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">468,837</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>CASH FLOWS FROM FINANCING ACTIVITIES</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Payments for shares repurchased</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(204,727</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(186,779</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividend payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(55,045</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(52,520</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Proceeds from limited recourse debt (note 6)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">131,574</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Financing costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,725</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity contributions by non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,109</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,149</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Repayment of limited recourse debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(14,344</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(14,032</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Proceeds on issue of shares on exercise of stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,520</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,519</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Changes in debt service reserve accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,035</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,301</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Repayment of other long-term liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,153</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,897</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(113,756</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(244,861</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>CASH FLOWS FROM INVESTING ACTIVITIES</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Property, plant and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(76,239</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(42,195</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Egypt plant under construction (note 16(d))</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(201,922</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,796</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(19,788</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">355</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Changes in non-cash working capital related to investing activities (note 12)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,540</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,959</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(280,409</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(27,677</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Increase in cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133,170</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196,299</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents, beginning of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">355,054</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">158,755</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents, end of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">488,224</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">355,054</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>SUPPLEMENTARY CASH FLOW INFORMATION</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest paid, net of capitalized interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">38,454</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">38,577</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Income taxes paid, net of amounts refunded</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">144,169</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">110,275</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>See accompanying notes to consolidated financial statements.</I>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Consolidated Financial Statements&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Notes to Consolidated Financial Statements
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>(Tabular dollar amounts are shown in thousands of US dollars, except where noted)<BR>
Years ended December&nbsp;31, 2007 and 2006</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>1. Significant accounting policies:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(a)&nbsp;Basis of presentation:</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">These consolidated financial statements are prepared in accordance with generally accepted
accounting principles
in Canada. These accounting principles are different in some respects from those generally accepted
in the United
States and the significant differences are described and reconciled in Note 17.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">These consolidated financial statements include the accounts of Methanex Corporation, wholly owned
subsidiaries,
less than wholly owned entities for which it has a controlling interest and its proportionate share
of the accounts
of jointly controlled entities (collectively, the Company). For less than wholly owned entities for
which the
Company has a controlling interest, a non-controlling interest is included in the Company&#146;s
financial statements
and represents the non-controlling shareholder&#146;s interest in the net assets of the entity. In
accordance with the
Accounting Guideline No.&nbsp;15, <I>Consolidation of Variable Interest Entities</I>, the Company also
consolidates any variable
interest entities of which it is the primary beneficiary, as defined. When the Company does not
have a controlling
interest in an entity, but exerts a significant influence over the entity, the Company applies the
equity method of
accounting. All significant intercompany transactions and balances have been eliminated.
Preparation of these
consolidated financial statements requires estimates and assumptions that affect amounts reported
and disclosed
in the financial statements and related notes. Policies requiring significant estimates are
described below. Actual
results could differ from those estimates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(b)&nbsp;Reporting currency and foreign currency translation:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The majority of the Company&#146;s business is transacted in US dollars and, accordingly, these
consolidated financial
statements have been measured and expressed in that currency. The Company translates foreign
currency
denominated monetary items at the rates of exchange prevailing at the balance sheet dates and
revenues and
expenditures at average rates of exchange during the year. Foreign exchange gains and losses are
included in
earnings.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(c)&nbsp;Cash equivalents:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Cash equivalents include securities with maturities of three months or less when purchased.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(d)&nbsp;Receivables:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company provides credit to its customers in the normal course of business. The Company performs
ongoing
credit evaluations of its customers and maintains reserves for potential credit losses.
Historically credit losses have
been within the range of management&#146;s expectations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(e)&nbsp;Inventories:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Inventories are valued at the lower of cost, determined on a first-in first-out basis, and
estimated net realizable value.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(f)&nbsp;Property, plant and equipment:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Property, plant and equipment are recorded at cost. Interest incurred during construction is
capitalized to the cost
of the asset. Incentive tax credits related to property, plant and equipment are recorded as a
reduction in the cost
of property, plant and equipment. The benefit of incentive tax credits is recognized in earnings
through lower
depreciation in future periods.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Depreciation and amortization is generally provided on a straight-line basis at rates calculated to
amortize the cost of
property, plant and equipment from the commencement of commercial operations over their estimated
useful lives
to estimated residual value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Routine repairs and maintenance costs are expensed as incurred. At regular intervals, the Company
conducts
a planned shutdown and inspection (turnaround)&nbsp;at its plants to perform major maintenance and
replacements
of catalyst. Costs associated with these shutdowns are capitalized and amortized over the period
until the next
planned turnaround.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">48&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;METHANEX&nbsp;&nbsp;&nbsp;Annual
Report 2007&nbsp;&nbsp;&nbsp;Notes to Consolidated Financial Statements
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company periodically reviews the carrying value property, plant and equipment for
impairment when circumstances indicate an asset&#146;s value may not be recoverable. If it is
determined that an asset&#146;s undiscounted cash flows are less than its carrying value, the asset
is written down to its fair value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(g)&nbsp;Other assets:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Marketing and production rights are capitalized to other assets and amortized to depreciation
and amortization expense on an appropriate basis to charge the cost of the assets against
earnings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Financing costs related to undrawn credit facilities are capitalized to other assets and amortized
to interest expense over the term of the credit facility. Financing costs related to project debt
facilities are capitalized to other assets until the project debt is fully drawn. Once the project
debt is fully drawn, these costs are reclassified to present long-term debt net of financing costs
and amortized to interest expense over the repayment term. Other long-term debt is presented net
of financing costs and amortized to interest expense over the repayment term. In 2006, all
financing costs were recorded in other assets. Refer to note 1 (m)&nbsp;for more information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(h)&nbsp;Asset retirement obligations:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company recognizes asset retirement obligations for those sites where a reasonably definitive
estimate of the fair value of the obligation can be determined. The Company estimates fair value by
determining the current market cost required to settle the asset retirement obligation and adjusts
for inflation through to the expected date of the expenditures and discounts this amount back to
the date when the obligation was originally incurred. As the liability is initially recorded on a
discounted basis, it is increased each period until the estimated date of settlement. The resulting
expense is referred to as accretion expense and is included in cost of sales and operating
expenses. Asset retirement obligations are not recognized with respect to assets with indefinite or
indeterminate lives as the fair value of the asset retirement obligations cannot be reasonably
estimated due to uncertainties regarding the timing of expenditures. The Company reviews asset
retirement obligations on a periodic basis and adjusts the liability as necessary to reflect
changes in the estimated future cash flows and timing underlying the fair value measurement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(i)&nbsp;Employee future benefits:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Accrued pension benefit obligations and related expenses for defined benefit pension plans are
determined using current market bond yields to measure the accrued pension benefit obligation.
Adjustments to the accrued benefit obligation and the fair value of the plan assets that arise from
changes in actuarial assumptions, experience gains and losses and plan amendments that exceed 10%
of the greater of the accrued benefit obligation and the fair value of the plan assets are
amortized to earnings on a straight-line basis over the estimated average remaining service
lifetime of the employee group. Gains or losses arising from plan curtailments and settlements are
recognized in earnings in the year in which they occur.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The cost for defined contribution benefit plans is expensed as earned by the employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(j)&nbsp;net income per common share:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company calculates basic net income per common share by dividing net income by the weighted
average number of common shares outstanding and calculates diluted net income per common share
under the treasury stock method. Under the treasury stock method, the weighted average number of
common shares outstanding for the calculation of diluted net income per share assumes that the
total of the proceeds to be received on the exercise of dilutive stock options and the
unrecognized portion of the grant-date fair value of stock options is applied to repurchase common
shares at the average market price for the period. A stock option is dilutive only when the
average market price of common shares during the period exceeds the exercise price of the stock
option.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Notes to Consolidated Financial Statements&nbsp;&nbsp;&nbsp;&nbsp;49
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>1. Significant accounting policies: </B><I>(continued)</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(j)&nbsp;net income per common share: </B><I>(continued)</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A reconciliation of the weighted average number of common shares outstanding is as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">For the years ended December 31</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Denominator for basic net income per common share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">101,717,341</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">109,110,689</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Effect of dilutive stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">412,588</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">330,715</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Denominator for diluted net income per common share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">102,129,929</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">109,441,404</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(k)&nbsp;Stock-based compensation:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company grants stock-based awards as an element of compensation. Stock-based awards
granted by the Company can include stock options, deferred share units, restricted share
units or performance share units.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For stock options granted by the Company, the cost of the service received as consideration is
measured based on an estimate of fair value at the date of grant. The grant-date fair value is
recognized as compensation expense over the related service period with a corresponding increase
in contributed surplus. On exercise of stock options, consideration received together with the
compensation expense previously recorded to contributed surplus is credited to share capital. The
Company uses the Black-Scholes option pricing model to estimate the fair value of each stock
option at the date of grant. The assumptions used in the Black-Scholes option pricing model are
disclosed in note 8.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Deferred, restricted and performance share units are grants of notional common shares that are
redeemable for cash based on the market value of the Company&#146;s common shares and are non-dilutive
to shareholders. Performance share units have an additional feature where the ultimate number of
units that vest will be determined by the Company&#146;s total shareholder return in relation to a
predetermined target over the period to vesting. The number of units that will ultimately vest will
be in the range of 50% to 120% of the original grant. The fair value of deferred, restricted and
performance share units is initially measured at the grant date based on the market value of the
Company&#146;s common shares and is recognized in earnings over the related service period. Changes in
fair value are recognized in earnings for the proportion of the service that has been rendered at
each reporting date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Additional information related to the stock option plan and the deferred, restricted and
performance share units of the Company are described in note 8.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(l)&nbsp;Revenue recognition:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Revenue is recognized based on individual contract terms when the title and risk of loss to the
product transfers to the customer, which usually occurs at the time shipment is made. Revenue is
recognized at the time of delivery to the customer&#146;s location if the Company retains title and
risk of loss during shipment. For methanol shipped on a consignment basis, revenue is recognized
when the customer consumes the methanol. For methanol sold on a commission basis, the commission
income is included in revenue when earned.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(m)&nbsp;Financial instruments:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On January&nbsp;1, 2007, the Company adopted the Canadian Institute of Chartered Accountants (&#147;CICA&#148;)
Handbook Section&nbsp;1530, <I>Comprehensive Income</I>, Section&nbsp;3251, <I>Equity</I>, Section&nbsp;3855, <I>Financial
Instruments &#151; Recognition and Measurement</I>, Section&nbsp;3861, <I>Financial Instruments &#151; Disclosure and
Presentation</I>, and Section&nbsp;3865, <I>Hedges</I>. These new accounting standards, which apply to fiscal years
beginning on or after October&nbsp;1, 2006, provide comprehensive requirements for the recognition and
measurement of financial instruments, as well as standards on when and how hedge accounting may be
applied. Section&nbsp;1530 establishes standards for reporting and presenting comprehensive income,
which is defined as the change in equity from transactions and other events from non-owner sources.
Other comprehensive income refers to items recognized in comprehensive income that are excluded
from net income calculated in accordance with generally accepted accounting principles.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">50&nbsp;&nbsp;&nbsp;&nbsp;METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Notes to Consolidated Financial Statements
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under these new standards, financial instruments must be classified into one of five categories
and, depending on the category, will either be measured at amortized cost or fair value.
Held-to-maturity investments, loans and receivables and other financial liabilities are measured at
amortized cost. Held for trading financial assets and liabilities and available-for-sale financial
assets are measured on the balance sheet at fair value. Changes in fair value of held-for-trading
financial assets and liabilities are recognized in earnings while changes in fair value of
available-for-sale financial assets are recorded in other comprehensive income until the investment
is derecognized or impaired at which time the amounts would be recorded in earnings. Under adoption
of these new standards, the Company classified its cash and cash equivalents as held-for-trading,
which is measured at fair value. Accounts receivable are classified as loans and receivables, which
are measured at amortized cost. Accounts payable and accrued liabilities, long-term debt, net of
financing costs, and other long-term liabilities are classified as other financial liabilities,
which are also measured at amortized cost.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under these new standards, derivative financial instruments, including embedded derivatives, are
classified as held for trading and are recorded on the balance sheet at fair value unless exempted
as a normal purchase and sale arrangement. The Company records all changes in fair value of
derivative financial instruments in earnings unless the instruments are designated as cash flow
hedges. The Company enters into and designates as cash flow hedges certain forward exchange sales
contracts to hedge foreign exchange exposure on anticipated sales. The Company also enters into and
designates as cash flow hedges certain interest rate swap contracts to hedge variable interest rate
exposure on its limited recourse debt. The Company assesses at inception and on an ongoing basis
whether the hedges are and continue to be effective in offsetting changes in fair values or cash
flows of the hedged transactions. The effective portion of changes in fair value of these forward
exchange sales contracts and interest rate swap contracts is recognized in other comprehensive
income. Any gain or loss in fair value relating to the ineffective portion is recognized
immediately in earnings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The adoption of these new standards resulted in the reclassification of certain financing costs
previously recorded in other assets to long-term debt. These standards have been adopted on a
prospective basis beginning January&nbsp;1, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(n)&nbsp;Income taxes:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Future income taxes are accounted for using the asset and liability method. The asset and liability
method requires that income taxes reflect the expected future tax consequences of temporary
differences between the carrying amounts of assets and liabilities and their tax bases. Future
income tax assets and liabilities are determined for each temporary difference based on currently
enacted or substantially enacted tax rates that are expected to be in effect when the underlying
items of income or expense are expected to be realized. The effect of a change in tax rates or tax
legislation is recognized in the period of substantive enactment. Future tax benefits, such as
non-capital loss carryforwards, are recognized to the extent that realization of such benefits is
considered to be more likely than not.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company accrues for taxes that will be incurred upon distributions from its subsidiaries when
it is probable that the earnings will be repatriated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The determination of income taxes requires the use of judgment and estimates. If certain
judgments or estimates prove to be inaccurate, or if certain tax rates or laws change, the
Company&#146;s results of operations and financial position could be materially impacted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(o)&nbsp;Anticipated Changes to Canadian generally Accepted Accounting Principles:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In June&nbsp;2007, the CICA issued Section&nbsp;3031, <I>Inventories</I>, which provides changes to the measurement
and more extensive guidance on the determination of cost, including allocation of overhead; narrows
the permitted cost formulas; requires impairment testing; and expands the disclosure requirements
to increase transparency. This new standard became effective for the Company on January&nbsp;1, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In December&nbsp;2006, the CICA issued three new accounting standards: Section&nbsp;1535, <I>Capital
Disclosures</I>, Section&nbsp;3862, <I>Financial Instruments &#151; Disclosure </I>and Section&nbsp;3863, <I>Financial
Instruments &#151; Presentation</I>. Section&nbsp;1535 establishes standards for disclosing information about
an entity&#146;s capital and how it is managed. Sections&nbsp;3862 and 3863 revise and enhance disclosure
and presentation of financial instruments and place increased emphasis on disclosures about the
nature and extent of risks arising from financial instruments and how those risks are managed.
These new standards became effective for the Company on January&nbsp;1, 2008.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX&nbsp;&nbsp;&nbsp;Annual
Report 2007&nbsp;&nbsp;&nbsp;Notes to Consolidated Financial Statements&nbsp;&nbsp;&nbsp;&nbsp;51
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>2. Receivables:</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">As at December 31</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Trade</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">369,269</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">317,961</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Value-added and other tax receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,988</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,670</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,586</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,756</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">401,843</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">366,387</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3. Property, plant and equipment:</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="65%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Accumulated</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Net Book</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">As at December 31</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Cost</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Depreciation</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Value</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="3" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Plant and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,774,392</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,530,947</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,243,445</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Egypt plant under construction (note 16(d))</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">227,783</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">227,783</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">124,779</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,907</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70,872</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="3" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,126,954</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,584,854</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,542,100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="3" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Plant and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,728,837</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,451,162</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,277,675</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Egypt plant under construction (note 16(d))</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,861</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,861</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">102,597</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,852</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,745</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="3" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,857,295</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,495,014</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,362,281</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="3" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4. Interest in Atlas joint venture:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company has a 63.1% joint venture interest in Atlas Methanol Company (Atlas). Atlas owns a 1.7
million tonne per year methanol production facility in Trinidad. Included in the consolidated
financial statements are the following amounts representing the Company&#146;s proportionate interest
in Atlas:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Consolidated Balance Sheets as at December 31</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,128</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">19,268</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">107,993</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62,420</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Property, plant and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">263,942</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">264,292</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,329</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,471</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accounts payable and accrued liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,495</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,644</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt, including current maturities (note 6)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119,891</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">136,916</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Future income tax liabilities (note 11)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,099</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,866</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Consolidated Statements of Income for the years ended December 31</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">258,418</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">219,879</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">214,981</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">182,656</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income before income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,437</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,223</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income tax recovery (expense)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9,458</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,997</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">33,979</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">47,220</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Included in income tax recovery (expense)&nbsp;for 2006, is an adjustment related to a
retroactive change in tax legislation. Refer to note 11 for more information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">52&nbsp;&nbsp;&nbsp;&nbsp;METHANEX&nbsp;&nbsp;&nbsp;Annual
Report 2007&nbsp;&nbsp;&nbsp;Notes to Consolidated Financial Statements
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4. Interest in Atlas joint venture: </B><I>(continued)</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Consolidated Statements of Cash Flows for the years ended December 31</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash inflows from operating activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">40,317</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">23,465</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash outflows from financing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(12,997</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(14,032</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash outflows from investing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(16,380</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,137</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>5. Other assets:</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">As at December 31</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Marketing and production rights, net of accumulated amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">34,728</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">42,344</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Restricted cash for debt service reserve account</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,329</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,362</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred financing costs, net of accumulated amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,924</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Defined benefit pension plans (note 15)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,487</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,745</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Natural gas prepayment (note 16(f))</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,681</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,337</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,143</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">104,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">100,518</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of January&nbsp;1, 2007, as a result of the adoption of new accounting standards related to
financial instruments (note 1 (g), 1(m)), the Company reclassified certain deferred financing
costs to long-term debt. These changes were applied prospectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For the year ended December&nbsp;31, 2007, amortization of marketing and production rights included
in depreciation and amortization was $7.6&nbsp;million (2006 &#151; $7.6&nbsp;million) and amortization of
deferred financing costs included in interest expense was $0.3&nbsp;million (2006 &#151; $1.1&nbsp;million).
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Notes to Consolidated Financial Statements&nbsp;&nbsp;&nbsp; &nbsp;53
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>6. long-term debt:</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">As at December 31</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD colspan="9" align="left">Unsecured Notes:</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(i)&nbsp;8.75% due August&nbsp;15, 2012 (effective yield 8.88%)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">197,776</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">200,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(ii)&nbsp;6.00% due August&nbsp;15, 2015 (effective yield 6.10%)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">148,340</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">346,116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">350,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD colspan="5" align="left">Atlas Methanol Company &#151; limited recourse debt facilities</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" align="left">(63.1% proportionate share):</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(i)&nbsp;Senior commercial bank loan facility with interest payable
semi-annually with rates based on LIBOR plus a spread ranging
from 2.25% to 2.75% per annum. Principal is paid in twelve
semi-annual payments which commenced June&nbsp;2005.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,541</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,207</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(ii)&nbsp;Senior secured notes bearing an interest rate with semi-annual
interest payments of 7.95% per annum. Principal will be paid in
nine semi-annual payments commencing December&nbsp;2010.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61,477</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(iii)&nbsp;Senior fixed rate bearing an interest rate of 8.25% per annum
with semi-annual interest payments. Principal will be paid in four
semi-annual payments commencing June&nbsp;2015.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,684</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,144</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(iv)&nbsp;Subordinated loans with an interest rate based on LIBOR plus a
spread ranging from 2.25% to 2.75% per annum. Principal will be
paid in twenty semi-annual payments commencing December&nbsp;2010.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,189</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,465</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119,891</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">136,916</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" align="left">Egypt limited recourse debt facilities</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(i)&nbsp;International facility to a maximum amount of $139&nbsp;million with
interest payable semi-annually with rates based on LIBOR plus a
spread ranging from 1.1% to 1.5% per annum. Principal is paid in
24 semi-annual payments which will commence in September&nbsp;2010.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,074</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(ii)&nbsp;Euromed facility to a maximum amount of $146&nbsp;million with interest
payable semi-annually with rates based on LIBOR plus a spread
ranging from 1.1% to 1.4%. Principal is paid in 24 semi-annual
payments which will commence in September&nbsp;2010.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">93,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(iii)&nbsp;Article&nbsp;18 facility to a maximum amount of $77&nbsp;million with interest
payable semi-annually with rates based on LIBOR plus a spread
ranging from 1.0% to 1.4%. Principal is paid in 24 semi-annual
payments which will commence in September&nbsp;2010.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(iv)&nbsp;Egyptian facility to a maximum amount of $168&nbsp;million with interest
payable semi-annually with rates based on LIBOR plus a spread
ranging from 1.0% to 1.6% per annum. Principal is paid in 24
semi-annual payments which will commence in September&nbsp;2010.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">116,674</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other limited recourse debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,688</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">597,269</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">486,916</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less current maturities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,282</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(14,032</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">581,987</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">472,884</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of January&nbsp;1, 2007, as a result of the adoption new accounting standards related to financial
instruments (note 1(g), 1(m)), the Company reclassified certain deferred financing costs to
long-term debt. These changes were applied prospectively. For the year ended December&nbsp;31, 2007,
amortization of these deferred financing costs included in interest expense was $1.4&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">54&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements&nbsp;&nbsp;&nbsp;&nbsp;
</DIV>
</Div>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The minimum principal payments in aggregate and for each of the five succeeding years are as
follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,282</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,282</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,077</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,187</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">223,619</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">296,447</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During the second quarter of 2007, the Company achieved financial close to construct a methanol
plant in Egypt as described in note 16 (d). The LIBOR-based interest payments on approximately
half of the projected outstanding debt balance have been fixed at 5.1% through interest rate swap
agreements for the period September&nbsp;28, 2007 to March&nbsp;31, 2015 as described in note 13 (c).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The limited recourse debt facilities of Egypt and Atlas are described as limited recourse as they
are secured only by the assets of the Egypt entity and the Atlas joint venture, respectively.
Under the terms of these limited recourse debt facilities, the entities can make cash or other
distributions after fulfilling certain conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Other limited recourse debt is payable over twelve years in equal quarterly principal payments
beginning October&nbsp;2007. Interest on this debt is payable quarterly at LIBOR plus 0.75%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As at December&nbsp;31, 2007, the Company has an undrawn, unsecured revolving bank facility of $250
million that expires in June&nbsp;2010. This credit facility ranks pari passu with the Company&#146;s
unsecured notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>7. Other long-term liabilities:</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">As at December 31</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Asset retirement obligations (a)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,566</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">16,111</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital lease obligation (b)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,676</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,330</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred, restricted and performance share units (note 8)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,620</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chile retirement arrangement (note 15)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,233</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,476</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fair value of derivative financial instruments (note 13)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,566</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,303</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91,396</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85,840</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less current maturities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(16,965</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,022</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">74,431</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">68,818</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(a)&nbsp;Asset retirement obligations:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company has accrued for asset retirement obligations related to those sites where a
reasonably definitive estimate of the fair value of the obligation can be made. Because of
uncertainties in estimating future costs and the timing of expenditures related to the
currently identified sites, actual results could differ from the amounts estimated. During the
year ended December&nbsp;31, 2007, cash expenditures applied against the accrual for asset
retirement obligations were $0.7&nbsp;million (2006 &#151; $4.9&nbsp;million). At December&nbsp;31, 2007, the
total undiscounted amount of estimated cash flows required to settle the obligation was $15.5
million (2006 &#151; $16.9&nbsp;million).
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Notes to Consolidated Financial Statements&nbsp;&nbsp;&nbsp; &nbsp;55
</DIV>
</Div>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>7. Other long-term liabilities: </B><I>(continued)</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(b)&nbsp;Capital lease obligation:</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As at December&nbsp;31, 2007, the Company has a capital lease obligation related to an ocean
shipping vessel. The future minimum lease payments in aggregate and for each of the five
succeeding years are as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,664</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,752</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,839</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,927</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,846</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,028</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less executory and imputed interest costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(18,352</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24,676</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>8. Stock-based compensation:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company provides stock-based compensation to its directors and certain employees through
grants of stock options and deferred, restricted or performance share units.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(a)&nbsp;Stock options:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">There are two types of options granted under the Company&#146;s stock option plan: incentive stock
options and performance stock options. At December&nbsp;31, 2007, the Company had 1.3&nbsp;million
common shares reserved for future stock option grants under the Company&#146;s stock option plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>(i)&nbsp;Incentive stock options:</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The exercise price of each incentive stock option is equal to the quoted market price of the
Company&#146;s common shares at the date of the grant. Options granted prior to 2005 have a maximum
term of ten years with one-half of the options vesting one year after the date of the grant and a
further vesting of one-quarter of the options per year over the subsequent two years. Beginning
in 2005, all options granted have a maximum term of seven years with one-third of the options
vesting each year after the date of grant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Common shares reserved for outstanding incentive stock options at December&nbsp;31, 2007 and 2006 are as
follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="6" style="border-bottom: 1px solid #000000">Options Denominated in CAD$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="6" style="border-bottom: 1px solid #000000">Options Denominated in US$</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Weighted</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Weighted</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Number of</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Average</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Number of</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Average</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Stock Options</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Exercise Price</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Stock Options</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Exercise Price</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Outstanding at December&nbsp;31, 2005</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">316,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,328,450</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13.29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,649,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20.78</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Exercised</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(146,400</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(534,550</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.42</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cancelled</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(38,575</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.79</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Outstanding at December&nbsp;31, 2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">162,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,404,925</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.76</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,109,491</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24.96</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Exercised</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(42,300</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.87</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(509,875</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cancelled</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,500</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(83,560</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20.33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Outstanding at December&nbsp;31, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">104,450</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,920,981</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21.17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt">56&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements&nbsp;&nbsp;&nbsp;&nbsp;
</DIV>

</Div>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Information regarding incentive stock options outstanding at December&nbsp;31, 2007 is as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000">Options Outstanding</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">Options Exercisable</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Weighted</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Average</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Remaining</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Number of</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Weighted</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Number of</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Weighted</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Range of</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Contractual</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Stock Options</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Average</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Stock Options</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Average</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Exercise Prices</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Life</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Outstanding</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Exercise Price</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Exercisable</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Exercise Price</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Options denominated in CAD$
$3.29 to $11.60</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">104,450</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">104,450</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7.79</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Options denominated in US$</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">$6.45 to $11.56</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">201,150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8.59</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">201,150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8.59</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">$17.85 to $22.52</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,632,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">446,816</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19.90</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">$23.92 to $25.21</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,087,431</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24.96</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,920,981</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">647,966</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">16.39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>(ii)&nbsp;Performance stock options:</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As at December&nbsp;31, 2007 and 2006, there were 50,000 common shares reserved for performance stock
options with an exercise price of CAD$4.47. All outstanding performance stock options have
vested and are exercisable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>(iii)&nbsp;Fair value assumptions:</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The fair value of each stock option grant was estimated on the date of grant using the
Black-Scholes option pricing model with the following assumptions:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">For the years ended December 31</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Risk-free interest rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.9</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expected dividend yield</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expected life of option</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" nowrap align="center">5 years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" nowrap align="center">5 years</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expected volatility</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">31</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">40</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expected forfeitures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average fair value of options granted (US$&nbsp;&nbsp;per share)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8.82</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For the year ended December&nbsp;31, 2007, compensation expense related to stock options was $9.3
million (2006 &#151; $8.6&nbsp;million).
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Notes to Consolidated Financial Statements&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>8. Stock-based compensation: </B><I>(continued)</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(b)&nbsp;Deferred, restricted and performance share units:</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Directors, executive officers and management receive some elements of their compensation and
long-term compensation in the form of deferred, restricted or performance share units. Holders of
deferred, restricted and performance share units are entitled to receive additional deferred,
restricted or performance share units in lieu of dividends paid by the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Deferred, restricted and performance share units outstanding at December&nbsp;31, 2007 and 2006 are as
follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Number of</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Number of</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Number of</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Deferred</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Restricted</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Performance</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Share Units</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Share Units</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Share Units</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Outstanding at December&nbsp;31, 2005</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">427,264</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,089,836</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,796</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">402,460</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Granted in lieu of dividends</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,661</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,744</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,584</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Redeemed</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(149,975</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(575,748</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cancelled</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(35,075</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,962</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Outstanding at December&nbsp;31, 2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">318,746</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">518,757</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">406,082</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127,359</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">325,779</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Granted in lieu of dividends</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,275</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,803</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,672</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Redeemed</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(92,696</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(501,961</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cancelled</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,117</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(22,271</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Outstanding at December&nbsp;31, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">359,684</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,482</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">725,262</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The fair value of deferred, restricted and performance share units is initially measured at the
grant date based on the market value of the Company&#146;s common shares and is recognized in earnings
over the related service period. Changes in fair value are recognized in earnings for the
proportion of the service that has been rendered at each reporting date. The fair value of
deferred, restricted and performance share units outstanding at December&nbsp;31, 2007 was $29.8&nbsp;million
(2006 &#151; $36.2&nbsp;million) compared with the recorded liability of $21.4&nbsp;million (2006 &#151; $22.6
million). The difference between the fair value and the recorded liability at December&nbsp;31, 2007 of
$8.4&nbsp;million will be recognized over the weighted average remaining service period of approximately
1.4&nbsp;years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For the year ended December&nbsp;31, 2007, compensation expense related to deferred, restricted and
performance share units was $13.1&nbsp;million (2006 &#151; $22.6&nbsp;million). Included in compensation
expense for the year ended December&nbsp;31, 2007 was $3.5&nbsp;million (2006 &#151; $12.2&nbsp;million) related to
the effect of the increase in the Company&#146;s share price. As at December&nbsp;31, 2007, the Company&#146;s
share price was US$27.60 per share.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>9. Interest expense:</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">For the years ended December 31</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense before capitalized interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">48,104</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">44,586</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less capitalized interest related to Egypt project under construction</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,193</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">43,911</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">44,586</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Interest incurred during construction of the Egypt methanol facility is capitalized until the plant
is substantively complete and ready for productive use. In May&nbsp;2007, the Company reached financial
close and secured limited recourse debt of $530&nbsp;million for its joint venture project to construct
a 1.3&nbsp;million tonne per year methanol facility in Egypt. For the year ended December&nbsp;31, 2007,
interest costs of $4&nbsp;million related to this project were capitalized.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt">58&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Notes to Consolidated Financial Statements
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>10. Segmented information:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company&#146;s operations consist of the production and sale of methanol, which constitutes a
single operating segment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During the year ended December&nbsp;31, 2007 and 2006, revenues attributed to geographic regions,
based on the location of customers, were as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="21%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD><!-- VRule -->
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">United</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Other</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Latin</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">States</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Europe</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Korea</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Japan</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Asia</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">America</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Canada</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Total</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="29" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-right: 2px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="3" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">753,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">500,420</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">259,108</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147,445</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">142,217</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">227,045</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">236,886</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,266,521</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">679,014</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">493,926</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">213,246</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">157,970</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">203,364</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">194,362</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">166,368</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,108,250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="29" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="3" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As at December&nbsp;31, 2007 and 2006, the net book value of property, plant and equipment by country
was as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="21%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD><!-- VRule -->
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">New</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Chile</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Trinidad</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Egypt</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Zealand</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Canada</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Korea</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Other</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Total</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="29" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-right: 2px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="3" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD colspan="9" align="left">Property, plant and equipment</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">707,508</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">500,205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">227,783</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,417</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,987</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,452</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,748</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,542,100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">744,924</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">517,485</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,861</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,952</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,348</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,204</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,362,281</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="29" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="3" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>11. Income and other taxes:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(a)&nbsp;Income tax expense:</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company operates in several tax jurisdictions and therefore its income is subject to various
rates of taxation. Income tax expense differs from the amounts that would be obtained by applying
the Canadian statutory income tax rate to income before income taxes. These differences are as
follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">For the years ended December 31</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Canadian statutory tax rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">34.1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">34.1</TD>
    <TD nowrap>%</TD>
</TR>
<tr><td>&nbsp;</td></tr>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income tax expense calculated at Canadian statutory tax rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">178,401</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">224,598</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Increase (decrease)&nbsp;in income tax expense resulting from:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Income taxed in foreign jurisdictions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,379</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,823</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Previously unrecognized loss carryforwards and temporary differences</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(27,717</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(19,356</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Adjustments related to retroactive change in tax legislation (i)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(25,753</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,893</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,644</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total income tax expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">147,198</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">175,310</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><I>(i)</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During 2005, the government of Trinidad and Tobago introduced new tax legislation retroactive
to January&nbsp;1, 2004. As a result, during 2005 we recorded a $16.9&nbsp;million charge to increase future
income tax expense to reflect the retroactive impact for the period January&nbsp;1, 2004 to December
31, 2004. In February&nbsp;2006, the government of Trinidad and Tobago passed an amendment to this
legislation that changed the retroactive effective date to January&nbsp;1, 2005. As a result of this
amendment we recorded an adjustment to decrease future income tax expense by a total of $25.8
million during 2006. The adjustment includes a reversal of the previous charge to 2005 earnings of
$16.9&nbsp;million and an additional adjustment of $8.9&nbsp;million to recognize the benefit of tax
deductions that were reinstated as a result of the change in the implementation date.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Notes to Consolidated Financial Statements&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;59
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>11. Income and other taxes: </B><I>(continued)</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(b)&nbsp;Net future income tax liabilities:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The tax effect of temporary differences that give rise to future income tax liabilities and
future income tax assets are as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">As at December 31</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Future income tax liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Property, plant and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">205,726</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">193,413</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196,023</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">198,212</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">401,749</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">391,625</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Future income tax assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Non-capital loss carryforwards</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">216,663</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">232,755</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Property, plant and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,702</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,961</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,671</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,632</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">299,036</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">302,348</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Future income tax asset valuation allowance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(235,889</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(262,641</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,147</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,707</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net future income tax liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">338,602</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">351,918</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At December&nbsp;31, 2007, the Company had non-capital loss carryforwards available for tax purposes of
$580&nbsp;million in Canada, $10&nbsp;million in the United States and $57&nbsp;million in New Zealand. The
benefit relating to the non-capital loss carryforwards in the United States has been recognized by
reducing net future income tax liabilities. In Canada and the United States these loss
carryforwards expire in the period 2008 to 2024, inclusive. In New Zealand the loss carryforwards
do not have an expiry date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>12. Changes in non-cash working capital:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Changes in non-cash working capital for the years ended December&nbsp;31, 2007 and 2006 are as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">For the years ended December 31</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Decrease (increase)&nbsp;in non-cash working capital:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Receivables</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(35,456</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(69,865</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Inventories</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(67,377</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(104,662</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Prepaid expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,158</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10,492</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accounts payable and accrued liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">156,041</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74,079</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,366</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(110,940</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjustments for items not having a cash effect</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,430</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,184</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Changes in non-cash working capital having a cash effect</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">50,936</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(119,124</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">These changes relate to the following activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Operating</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">33,396</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(154,083</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Investing (i)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,540</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,959</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Changes in non-cash working capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">50,936</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(119,124</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV style="margin-top: 3pt">
<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 nowrap align="left"><I>(i)</I></TD>
    <TD>&nbsp;</TD>
    <TD>Included in changes in non-cash working capital related to investing activities for the year
ended December&nbsp;31, 2007 are accruals related to the construction of the Egypt methanol plant and
major turnarounds, which are recorded in accounts payable and accrued liabilities. Included in
changes in non-cash working capital related to investing activities for the year ended December
31, 2006 are cash receipts for incentive tax credits of $28&nbsp;million related to the construction of
the Chile IV methanol production facility.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">60&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;METHANEX&nbsp;&nbsp;&nbsp;Annual
Report 2007&nbsp;&nbsp;&nbsp;Notes to Consolidated Financial
Statements
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>13. Derivative financial instruments:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(a)&nbsp;Forward exchange sales and purchase contracts:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As at December&nbsp;31, 2007, the Company has outstanding forward exchange contracts to sell a notional
amount of 4&nbsp;million euro in exchange for US dollars at an average exchange rate of 1.4236 US
dollars to 1 euro. These contracts mature in the first half of 2008. As at December&nbsp;31, 2007, the
carrying value of forward exchange sales contracts was a liability of $0.1&nbsp;million (2006 &#151; $0.2
million) which approximates the fair value of these contracts.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(b)&nbsp;Interest rate swap contract:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As at December&nbsp;31, 2007, the Company had an interest rate swap contract recorded in other
long-term liabilities at fair value in the amount of $1.0&nbsp;million (2006 &#151; $1.0&nbsp;million). As at
December&nbsp;31, 2007, this interest rate swap contract had a remaining notional principal amount of
$25&nbsp;million (2006 &#151; $35&nbsp;million). Under the contract, the Company receives floating-rate LIBOR
amounts in exchange for payments based on a fixed interest rate of 6.7%. The contract matures
over the period to 2010.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(c)&nbsp;Egypt debt interest rate swap contracts:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In August&nbsp;2007, the Company entered into interest rate swap contracts to hedge the variability in
LIBOR-based interest payments on its Egypt limited recourse debt facilities described in note 6.
The term of the interest rate swap contracts is from September&nbsp;28, 2007 to March&nbsp;31, 2015. As at
December&nbsp;31, 2007 these interest rate swap contracts had outstanding notional amounts of $95
million. The maximum notional amount under the term of the interest rate swap contracts is $266
million. This represents the peak notional amount during the term of the interest rate swap
contracts. The notional amount increases over the period of expected drawdowns on the Egypt
limited recourse debt and decreases over the expected repayment period. These contracts swap the
LIBOR-based interest payments to a fixed rate of 5.1% on approximately half of the projected
outstanding debt for the period September&nbsp;28, 2007 to March&nbsp;31, 2015. The interest rate swap
contracts are recorded at their fair value of negative $8.6&nbsp;million in other long-term liabilities
with the effective portion of the change in fair value recorded in other comprehensive income.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>14. Fair value disclosures:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The carrying values of the Company&#146;s financial instruments approximate their fair values, except as
follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="CENTER" colspan="6" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="CENTER" colspan="6" style="border-bottom: 1px solid #000000">2006</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Carrying</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Carrying</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">As at December 31</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Value</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Fair Value</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Value</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Fair Value</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">597,269</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">606,020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">486,916</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">505,613</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The fair value of the Company&#146;s fixed interest rate long-term debt is estimated by reference to
current market prices for other debt securities with similar terms and characteristics. The fair
value of the Company&#146;s variable interest rate long-term debt, recalculated at current interest
rates, approximates its carrying value excluding deferred financing fees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The fair values of the Company&#146;s derivative financial instruments as disclosed in note 13 are
determined based on quoted market prices received from counterparties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company is exposed to credit-related losses in the event of non-performance by counterparties
to derivative financial instruments but does not expect any counterparties to fail to meet their
obligations. The Company deals with only highly rated counterparties, normally major financial
institutions. The Company is exposed to credit risk when there is a positive fair value of
derivative financial instruments at a reporting date. The maximum amount that would be at risk if
the counterparties to derivative financial instruments with positive fair values failed completely
to perform under the contracts was nil at December&nbsp;31, 2007 (2006 &#151; $1.9&nbsp;million).
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX&nbsp;&nbsp;&nbsp;Annual
Report 2007&nbsp;&nbsp;&nbsp;Notes to Consolidated Financial
Statements&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;61
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>15. Retirement plans:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(a)&nbsp;Defined benefit pension plans:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company has non-contributory defined benefit pension plans covering certain employees. The
Company does not provide any significant post-retirement benefits other than pension plan
benefits. Information concerning the Company&#146;s defined benefit pension plans, in aggregate, is as
follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">As at December 31</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accrued benefit obligations:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Balance, beginning of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">58,297</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">59,611</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Current service cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,272</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,980</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest cost on accrued benefit obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,016</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,948</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Benefit payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,858</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(11,263</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Gain on curtailment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(94</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Loss on settlement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">395</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Actuarial losses (gains)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(568</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,629</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Foreign exchange losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,592</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Balance, end of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66,751</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,297</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fair values of plan assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Balance, beginning of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,954</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Actual returns on plan assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,919</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Contributions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,274</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,077</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Benefit payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,858</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(11,263</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Foreign exchange gains</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,504</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">431</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Balance, end of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,097</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,118</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unfunded status</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,654</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,179</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unamortized actuarial losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(14,907</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(14,448</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accrued benefit liabilities, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,747</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,731</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company has an unfunded retirement arrangement for its employees in Chile that will be funded
at retirement. At December&nbsp;31, 2007, the balance of accrued benefit liabilities, net is comprised
of $21.2&nbsp;million recorded in other long-term liabilities for an unfunded retirement arrangement in
Chile and $13.5&nbsp;million recorded in other assets for defined benefit plans in Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company&#146;s net defined benefit pension plan expense for the years ended December&nbsp;31, 2007 and
2006 is as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">For the years ended December 31</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net defined benefit plan pension expense:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Current service cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,272</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,980</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest cost on accrued benefit obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,016</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,948</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Actual return on plan assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(59</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,919</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Settlement and curtailment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,671</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,061</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,557</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,237</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company uses a December&nbsp;31 measurement date for its defined benefit pension plans. Actuarial
reports for the Company&#146;s defined benefit pension plans were prepared by independent actuaries
for funding purposes as of March&nbsp;31, 2006 in Canada and December&nbsp;31, 2007 in Chile. The next
actuarial reports for funding purposes for our Chilean and Canadian defined benefit pension plans
are scheduled to be completed as of December&nbsp;31, 2008 and December&nbsp;31, 2009, respectively.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">62&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Notes to Consolidated Financial Statements</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The actuarial assumptions used in accounting for the defined benefit pension plans are as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Benefit obligation at December&nbsp;31:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Weighted average discount rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.56</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.40</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Rate of compensation increase</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.13</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.10</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net expense for year ended December&nbsp;31:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Weighted average discount rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.71</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.43</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Rate of compensation increase</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.56</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.14</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Expected rate of return on plan assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.25</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The asset allocation for the defined benefit pension plan assets as at December&nbsp;31, 2007 and 2006
are as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">62</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">59</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Debt securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">35</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">34</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and other short-term securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(b)&nbsp;Defined contribution pension plans:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company has defined contribution pension plans. The Company&#146;s funding obligations under the
defined contribution pension plans are limited to making regular payments to the plans, based on a
percentage of employee earnings. Total net pension expense for the defined contribution pension
plans charged to operations during the year ended December&nbsp;31, 2007 was $2.7&nbsp;million (2006 &#151; $2.4
million).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>16. Commitments and contingencies:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(a)&nbsp;Take-or-pay purchase contracts and related commitments:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company has commitments under take-or-pay natural gas supply contracts to purchase annual
quantities of feedstock supplies and to pay for transportation capacity related to these supplies
to 2034. The minimum estimated commitment under these contracts, excluding Argentina natural gas
supply contracts, is as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" bordER="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="RIGHT">2008</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2011</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2012</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Thereafter</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;158,745</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">122,690</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">141,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">153,687</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">157,908</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,930,764</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(b)&nbsp;Argentina natural gas supply contracts:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company has take-or-pay natural gas supply contracts with suppliers in Argentina for
approximately 60% of its current natural gas requirements for its Chilean operations and 80% of
its natural gas requirements commencing mid-2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The minimum estimated commitment under these contracts is as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="RIGHT">2008</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2011</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2012</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Thereafter</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;68,970</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">66,457</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">77,036</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">77,490</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">77,948</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">778,692</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX&nbsp;&nbsp;&nbsp;Annual
Report 2007&nbsp;&nbsp;&nbsp;Notes to Consolidated Financial
Statements&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;63
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>16. Commitments and contingencies: </B><I>(continued)</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(b)&nbsp;Argentina natural gas supply contracts: </B><I>(continued)</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The government of Argentina has significantly increased the tax on exports of natural gas from
Argentina. In addition, since June&nbsp;2007, the government of Argentina has curtailed all of the
natural gas supply from Argentina to the Company&#146;s operations in Chile. Future purchases of
natural gas under these contracts will depend on whether natural gas exports are reinstated by the
Argentina government, whether the Company can reach commercially acceptable arrangements with its
gas suppliers and other factors
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(c)&nbsp;Operating lease commitments:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company has future minimum lease payments under operating leases relating primarily to
vessel charter, terminal facilities, office space, equipment and other operating lease
commitments as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="RIGHT">2008</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2011</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2012</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Thereafter</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;114,873</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">108,150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">88,763</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">94,636</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">86,725</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">571,588</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(d)&nbsp;Egypt methanol project:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During 2007, the Company reached financial close for its project to construct a 1.3&nbsp;million tonne
per year methanol facility at Damietta on the Mediterranean Sea in Egypt. The Company owns 60% of
Egyptian Methanex Methanol Company S.A.E. (&#147;EMethanex&#148;), which is the company that is developing
the project. EMethanex has secured limited recourse debt of $530&nbsp;million. The Company expects
commercial operations from the methanol facility to begin in early 2010 and the Company will
purchase and sell 100% of the methanol from the facility. The total estimated future costs to
complete the project over the next two years, excluding financing costs and working capital, are
expected to be approximately $665&nbsp;million. Our 60% share of future equity contributions, excluding
financing costs and working capital, over the next two years is estimated to be approximately $175
million and the Company expects to fund these expenditures from cash generated from operations and
cash on hand.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company&#146;s investment in EMethanex is accounted for using consolidation accounting. This
results in 100% of the assets and liabilities of the Egypt entity being included in our balance
sheet. The non-controlling shareholder&#146;s interest is presented as &#147;non-controlling interest&#148; on
our balance sheet. Certain comparative figures related to this investment have been adjusted to
conform with accounting treatment in the current period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(e)&nbsp;Purchased methanol:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company has commitments to purchase methanol in 2008 at prices determined by specified
margins at the time of purchase.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(f)&nbsp;GeoPark agreements:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During 2007, the Company entered into a financing agreement with GeoPark Chile Limited (GeoPark)
under which the Company will provide up to US$40&nbsp;million in financing over the period to December
31, 2008 to support and accelerate GeoPark&#146;s natural gas exploration and development activities in
the Fell Block in southern Chile. As at December&nbsp;31, 2007, the amount provided under the financing
agreement was $14&nbsp;million which has been recorded in other assets. Under the arrangement, GeoPark
will also provide the Company with natural gas supply under a ten year exclusive supply agreement
in which the Company will purchase all natural gas produced by GeoPark from the Fell Block in
southern Chile.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">64&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;METHANEX&nbsp;&nbsp;&nbsp;Annual Report 2007&nbsp;&nbsp;&nbsp;Notes to Consolidated Financial Statements</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>17. United States Generally Accepted Accounting Principles:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company follows generally accepted accounting principles in Canada (&#147;Canadian GAAP&#148;) which are
different in some respects from those applicable in the United States and from practices prescribed
by the United States Securities and Exchange Commission (&#147;US GAAP&#148;). The significant differences
between Canadian GAAP and US GAAP with respect to the Company&#146;s consolidated financial statements
as at and for the years ended December&nbsp;31, 2007 and 2006 are as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">2006</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Condensed Consolidated Balance Sheets</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Canadian</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Canadian</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">as at December 31</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">GAAP</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">US GAAP</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">GAAP</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">US GAAP</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ASSETS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current Assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,223,099</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,223,099</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">990,254</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">990,254</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Property, plant and equipment (a)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,542,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,576,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,362,281</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,398,593</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other assets (d) (g)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">104,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">102,803</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100,518</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">93,041</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,869,899</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,902,402</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,453,053</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,481,888</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">LIABILITIES AND SHAREHOLDERS&#146; EQUITY</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">498,267</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">503,722</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">341,033</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">341,033</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt (g)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">581,987</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">588,864</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">472,884</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">472,884</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other long-term liabilities (d)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74,431</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80,705</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68,818</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,788</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Future income taxes (d) (f)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">338,602</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">348,994</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">351,918</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">363,232</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,258</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,258</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,149</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,149</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shareholders&#146; equity:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Capital stock (a) (b)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">451,640</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">857,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">474,739</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">880,619</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Additional paid-in capital (b)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,627</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,059</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Contributed surplus (b)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,021</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,346</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Retained earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">876,348</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">486,935</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">724,166</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">341,175</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accumulated other comprehensive loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,655</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(22,052</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,051</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,335,354</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,338,859</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,209,251</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,219,802</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,869,899</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,902,402</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,453,053</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,481,888</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Condensed Consolidated Statements of Income</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">for the years ended December 31</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income in accordance with Canadian GAAP</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">375,667</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">482,949</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Add (deduct)&nbsp;adjustments for:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Depreciation and amortization (a)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,911</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,911</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Stock-based compensation (b)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">277</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(482</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Uncertainty in income taxes (c)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,455</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Income tax effect of above adjustments (f)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">669</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">669</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income in accordance with US GAAP</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">369,247</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">481,225</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Per share information in accordance with US GAAP:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Basic net income per common share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3.63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4.41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Diluted net income per common share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3.62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4.40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX
Annual Report 2007  Notes to Consolidated Financial Statements&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;65
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>17. United States Generally Accepted Accounting Principles: </B><I>(continued)</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="53%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #ffffff">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">2006</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Consolidated Statements of</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #ffffff">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Comprehensive Income</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Canadian</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #ffffff">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">for the years ended December 31</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">GAAP</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Adjustments</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">US GAAP</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">US GAAP<SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">375,667</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(6,420</TD>
    <TD nowrap>)</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">369,247</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">481,225</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Change in fair value of forward exchange
contracts, net of tax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(45</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(45</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Change in fair value of interest rate swap,
net of tax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,610</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,610</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Change related to pension, net of tax (d) (f)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(346</TD>
    <TD nowrap>)</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(346</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Comprehensive income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">367,012</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(6,766</TD>
    <TD nowrap>)</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">360,246</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">481,225</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="53%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #ffffff">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">2006</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Consolidated Statements of</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #ffffff">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Accumulated Other Comprehensive Loss</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Canadian</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #ffffff">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">for the years ended December 31</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">GAAP</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Adjustments</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">US GAAP</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">US GAAP<SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance, beginning of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(13,051</TD>
    <TD nowrap>)</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(13,051</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(2,926</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Change in fair value of forward exchange
contracts, net of tax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(45</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(45</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Change in fair value of interest rate swap,
net of tax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,610</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,610</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Change related to pension, net of tax (d) (f)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(346</TD>
    <TD nowrap>)</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(346</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10,125</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Comprehensive income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(8,655</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(13,397</TD>
    <TD nowrap>)</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(22,052</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(13,051</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV style="margin-top: 6pt">

<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 nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>A Consolidated Statement of Comprehensive Income was introduced under Canadian GAAP
upon the adoption of section 1530 on January&nbsp;1, 2007. Accordingly, there is no reconciliation
of Canadian GAAP to US GAAP for the prior periods.</TD>
</TR>

</TABLE>
 </DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(a)&nbsp;Business combination:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Effective January&nbsp;1, 1993, the Company combined its business with a methanol business located in
New Zealand and Chile. Under Canadian GAAP, the business combination was accounted for using the
pooling-of-interest method. Under US GAAP, the business combination would have been accounted for
as a purchase with the Company identified as the acquirer. For US GAAP purposes, property, plant
and equipment at December&nbsp;31, 2007 has been increased by $34.4&nbsp;million (2006 &#151; $36.3&nbsp;million) to
reflect the business combination as a purchase. For the year ended December&nbsp;31, 2007, an adjustment
to increase depreciation expense by $1.9&nbsp;million (2006 &#151; $1.9&nbsp;million) has been recorded in
accordance with US GAAP.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(b)&nbsp;Stock-based compensation:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Incentive stock options &#151; Effective January&nbsp;1, 2004, Canadian GAAP required the adoption of the
fair value method of accounting for stock-based compensation awards granted on or after January&nbsp;1,
2002. Effective January&nbsp;1, 2005, under US GAAP, the Company adopted the Financial Accounting
Standards Board (FASB)&nbsp;FAS No.&nbsp;123R, <I>Share-Based Payments</I>, which requires the fair value method of
accounting for stock-based compensation awards for all awards granted, modified, repurchased or
cancelled after the adoption date and unvested portions of previously issued and outstanding
awards as at the adoption date. As this statement harmonizes the impact of accounting for
stock-based compensation on net income under Canadian and US GAAP for the Company, except as
disclosed in (i)&nbsp;below, no adjustment to operating expenses was required for the years ended
December&nbsp;31, 2007 and 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">66&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;METHANEX Annual Report 2007&nbsp;&nbsp;&nbsp;Notes to Consolidated Financial Statements
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>

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

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>(i)&nbsp;Variable plan options:</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 2001, prior to the effective implementation date for fair value accounting related to stock
options for Canadian GAAP purposes, the Company granted 946,000 stock options that are accounted
for as variable plan options under US GAAP because the exercise price of the stock options is
denominated in a currency other than the Company&#146;s functional currency or the currency in which
the optionee is normally compensated. Under the intrinsic value method for US GAAP, the final
measurement date for variable plan options is the earlier of the exercise date, the forfeiture
date and the expiry date. Prior to the final measurement date, compensation expense is measured
as the amount by which the quoted market price of the Company&#146;s common shares exceeds the
exercise price of the stock options at each reporting date. Compensation expense is recognized
ratably over the vesting period. During the year ended December&nbsp;31, 2007, an adjustment to
decrease operating expenses by $0.3&nbsp;million (2006 &#151; increase of $0.5&nbsp;million) was recorded in
accordance with US GAAP.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(c)&nbsp;Accounting for uncertainty in income taxes:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On January&nbsp;1, 2007, the Company adopted Financial Accounting Standards Board (FASB)&nbsp;Interpretation
No.&nbsp;48, <I>Accounting for Uncertainty in Income Taxes &#151; An Interpretation of FASB Statement No.&nbsp;109 (FIN48)</I>.
FIN 48 clarifies the accounting for income taxes recognized in a Company&#146;s financial statements in
accordance with FASB Statement No.&nbsp;109, <I>Accounting for Income Taxes </I>(SFAS 109). FIN 48 prescribes a
recognition threshold and measurement attribute for the financial statement recognition and
measurement of a tax position taken or expected to be taken in a tax return. This interpretation
also provides guidance on derecognition, classification, interest and penalties, and transition. In
accordance with the interpretation, the Company has recorded the cumulative effect adjustment as a
$4.8&nbsp;million increase to opening retained earnings, with no restatement of prior periods. During
the year ended December&nbsp;31, 2007, adjustments to increase income tax expense by $5.5&nbsp;million (2006
&#151; nil) was recorded in accordance with US GAAP.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(d)&nbsp;Defined benefit pension plans:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Effective January&nbsp;1, 2006, under US GAAP, the Company prospectively adopted Financial Accounting
Standards Board (FASB)&nbsp;FAS No.&nbsp;158, <I>Employers&#146; Accounting for Defined Benefit Pension and Other
Postretirement Plans &#151; An Amendment of FASB Statements No.&nbsp;87, 88, 106, and 132(R)</I>, which requires
the Company to measure the funded status of a defined benefit pension plan at its balance sheet
reporting date and recognize the unrecorded overfunded or underfunded status as an asset or
liability with the change in that unrecorded funded status recorded to accumulated other
comprehensive income. As at December&nbsp;31, 2007, the impact of this standard on the Company is the
reclassification of unrecognized actuarial losses for Canadian GAAP of $14.9&nbsp;million, net of a
future income tax recovery of $1.6&nbsp;million to accumulated other comprehensive loss in accordance
with US GAAP.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(e)&nbsp;Interest in Atlas joint venture:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">US GAAP requires interests in joint ventures to be accounted for using the equity method.
Canadian GAAP requires proportionate consolidation of interests in joint ventures. The Company
has not made an adjustment in this reconciliation for this difference in accounting principles
because the impact of applying the equity method of accounting does not result in any change to
net income or shareholders&#146; equity. This departure from US GAAP is acceptable for foreign private
issuers under the practices prescribed by the United States Securities and Exchange Commission.
Details of the Company&#146;s interest in the Atlas joint venture is provided in note 4 to the
Company&#146;s consolidated financial statements for the year ended December&nbsp;31, 2007.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(f)&nbsp;Income tax accounting:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The income tax differences include the income tax effect of the adjustments related to accounting
differences between Canadian and US GAAP. During the year ended December&nbsp;31, 2007, this resulted in
an adjustment to increase net income by $0.7&nbsp;million (2006 &#151; $0.7&nbsp;million) and no adjustment to
other comprehensive income (2006 &#151; $1.4&nbsp;million).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(g)&nbsp;Deferred financing costs:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Effective January&nbsp;1, 2007, under Canadian GAAP, the Company prospectively adopted section 3855,
<I>Financial Instruments</I>, which requires the Company to present long-term debt net of deferred
financing costs. Under US GAAP, the Company is required to present the long-term debt and related
finance costs on a gross basis. As at December&nbsp;31, 2007, the Company is required to record an
adjustment to increase other assets and long-term debt by $6.9&nbsp;million in accordance with US GAAP.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">METHANEX
Annual Report 2007  Notes to Consolidated Financial Statements&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;67
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23
<SEQUENCE>5
<FILENAME>o38546exv23.htm
<DESCRIPTION>EXHIBIT-23
<TEXT>
<HTML>
<HEAD>
<TITLE>Consent of KPMG LLP</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;23</B>
</DIV>


<DIV align="center" style="font-size: 11pt; margin-top: 12pt"><B>Consent of Independent Registered Public Accounting Firm</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">To the Board of Directors of Methanex Corporation
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">We consent to the inclusion in this annual report on Form 40-F of:
</DIV>

<DIV style="margin-top: 9pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our auditors&#146; report dated February&nbsp;29, 2008 on the consolidated balance sheets of Methanex
Corporation (&#147;the Company&#148;) as at December&nbsp;31, 2007 and December&nbsp;31, 2006, and the
consolidated statements of income, shareholders&#146; equity, comprehensive income and cash flows
for the years then ended; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our Report of Independent Public Accounting Firm dated February&nbsp;29, 2008 on the
effectiveness of internal control over financial reporting as of December&nbsp;31, 2007</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt">each of which is contained in this annual report on Form 40-F of the Company for the fiscal year
ended December&nbsp;31, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt">We also consent to the incorporation by reference of such reports in the Registration Statements
(No.&nbsp;33-112624 and No.&nbsp;33-141833) on Form&nbsp;S-8 of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt">/s/&nbsp;&nbsp;KPMG LLP<BR>
Chartered Accountants.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Vancouver, Canada<BR>
March&nbsp;26, 2008
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>6
<FILENAME>o38546exv31w1.htm
<DESCRIPTION>EXHIBIT-31.1
<TEXT>
<HTML>
<HEAD>
<TITLE>Certification of CEO Section 302</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;31.1
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>CERTIFICATION</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">I, Bruce Aitken, certify that:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>I have reviewed this annual report on Form 40-F of Methanex Corporation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based on my knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period
covered by this report;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the issuer as of, and for, the periods presented in this report;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The issuer&#146;s other certifying officer and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Exchange Act Rules&nbsp;13a-15(e) and 15d-15(e))
and internal control over financial reporting (as defined in Exchange Act Rules&nbsp;13a-15(f) and
15d-15(f)) for the issuer and have:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>designed such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure that material
information relating to the issuer, including its consolidated subsidiaries, is made
known to us by others within those entities, particularly during the period in which
this report is being prepared;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>designed such internal control over financial reporting, or caused such
internal control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>evaluated the effectiveness of the issuer&#146;s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of the disclosure
controls and procedures as of the end of the period covered by this report based on
such evaluation; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>disclosed in this report any change in the issuer&#146;s internal control over
financial reporting that occurred during the period covered by this report that has
materially affected, or is reasonably likely to materially affect, the issuer&#146;s
internal control over financial reporting; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The issuer&#146;s other certifying officer and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the issuer&#146;s auditors and the
audit committee of issuer&#146;s board of directors (and persons performing the equivalent
functions):</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all significant deficiencies and material weaknesses in the design or operation
of internal control over financial reporting which are reasonably likely to adversely
affect the issuer&#146;s ability to record, process, summarize and report financial
information; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any fraud, whether or not material, that involves management or other employees
who have a significant role in the issuer&#146;s internal control over financial reporting.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt">Date:&nbsp;&nbsp;March&nbsp;28, 2008
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">                                                /s/&nbsp;&nbsp;BRUCE AITKEN
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Bruce Aitken&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">President and Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>7
<FILENAME>o38546exv31w2.htm
<DESCRIPTION>EXHIBIT-31.2
<TEXT>
<HTML>
<HEAD>
<TITLE>Certification of CFO Section 302</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;31.2
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>CERTIFICATION</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">I, Ian Cameron, certify that:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>I have reviewed this annual report on Form 40-F of Methanex Corporation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based on my knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period
covered by this report;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the issuer as of, and for, the periods presented in this report;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The issuer&#146;s other certifying officer and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Exchange Act Rules&nbsp;13a-15(e) and 15d-15(e))
and internal control over financial reporting (as defined in Exchange Act Rules&nbsp;13a-15(f) and
15d-15(f)) for the issuer and have:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>designed such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure that material
information relating to the issuer, including its consolidated subsidiaries, is made
known to us by others within those entities, particularly during the period in which
this report is being prepared;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>designed such internal control over financial reporting, or caused such
internal control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>evaluated the effectiveness of the issuer&#146;s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of the disclosure
controls and procedures as of the end of the period covered by this report based on
such evaluation; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>disclosed in this report any change in the issuer&#146;s internal control over
financial reporting that occurred during the period covered by this report that has
materially affected, or is reasonably likely to materially affect, the issuer&#146;s
internal control over financial reporting; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The issuer&#146;s other certifying officer and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the issuer&#146;s auditors and the
audit committee of issuer&#146;s board of directors (and persons performing the equivalent
functions):</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all significant deficiencies and material weaknesses in the design or operation
of internal control over financial reporting which are reasonably likely to adversely
affect the issuer&#146;s ability to record, process, summarize and report financial
information; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any fraud, whether or not material, that involves management or other employees
who have a significant role in the issuer&#146;s internal control over financial reporting.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Date:&nbsp;&nbsp;March&nbsp;28, 2008
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">                                                /s/&nbsp;&nbsp;IAN CAMERON
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Ian Cameron&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Senior Vice President, Finance<BR>
and Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>8
<FILENAME>o38546exv32w1.htm
<DESCRIPTION>EXHIBIT-32.1
<TEXT>
<HTML>
<HEAD>
<TITLE>Certification of CEO Section 906</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;32.1
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CERTIFICATION PURSUANT TO<BR>
18 U.S.C. SECTION 1350,<BR>
AS ADOPTED PURSUANT TO<BR>
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">In connection with the Annual Report of Methanex Corporation (the &#147;Company&#148;) on Form 40-F for the
year ended December&nbsp;31, 2007 as filed with the Securities and Exchange Commission on the date
hereof (the &#147;Report&#148;), I, Bruce Aitken, President and Chief Executive Officer of the Company,
certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the
Sarbanes-Oxley Act of 2002, that to the best of my knowledge:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities
Exchange Act of 1934; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the information contained in the Report fairly presents, in all material respects, the
financial condition and result of operations of the Company.</TD>
</TR>

</TABLE>
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="63%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">                                                /s/&nbsp;&nbsp;BRUCE AITKEN
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD colspan="3" align="left">Bruce Aitken&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD colspan="3" align="left">President and Chief Executive Officer<BR>
March 28, 2008<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.2
<SEQUENCE>9
<FILENAME>o38546exv32w2.htm
<DESCRIPTION>EXHIBIT-32.2
<TEXT>
<HTML>
<HEAD>
<TITLE>Certification of CFO Section 906</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;32.2
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CERTIFICATION PURSUANT TO<BR>
18 U.S.C. SECTION 1350,<BR>
AS ADOPTED PURSUANT TO<BR>
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">In connection with the Annual Report of Methanex Corporation (the &#147;Company&#148;) on Form 40-F for the
year ended December&nbsp;31, 2007 as filed with the Securities and Exchange Commission on the date
hereof (the &#147;Report&#148;), I, Ian Cameron, Senior Vice President, Finance and Chief Financial Officer
of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of
the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities
Exchange Act of 1934; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the information contained in the Report fairly presents, in all material respects, the
financial condition and result of operations of the Company.</TD>
</TR>

</TABLE>
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="58%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">                                                /s/&nbsp;&nbsp;IAN CAMERON
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD colspan="3" align="left">Ian Cameron&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD colspan="3" align="left">Senior Vice President, Finance and
Chief Financial Officer<BR>
March 28, 2008&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>10
<FILENAME>o38546o3854602.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 o38546o3854602.gif
M1TE&.#EAE`!5`-4``#\_/[^_OXV-C5145.+BXL;&QG]_?]34U&)B8D5%13<W
M-ZFIJ7!P<'Y^?IN;F[>WMP\/#]_?WRDI*?#P\,_/SU]?7^_O[R\O+Q\?'X^/
MCV]O;Z^OKY^?GT]/3Z*BHA45%0,#`UE96;*RLC$Q,9F9F0@("&-C8TU-382$
MA#,S,\+"PE%140$!`4-#0WU]?1$1$104%#0T-(F)B8>'AVEI:5-34WEY>>#@
MX!D9&61D9-#0T$)"0E965AL;&P```/___R'Y!```````+`````"4`%4```;_
MP)]P2"P:C\BD<LEL.I_0J'1*K5JOV*QVNIA,'(N%0#!`,`8_PF3+;KNAA\,/
M02`@#N/"X"QY-!0)#P1OA(5N#&D*/V,_"@4%/0<#`P<]#0\]"PH##X:>GU(%
M/P>B`G5H8@02#0(]/W^5"0R6HJ"VMT:#7G%Q!0L%>'X#8PX-LA(]LQ(,@[C.
MM@MIT0^=`J1W#@@+"0(.>PD*LST*/0[/YY[4/X@_"8N($@Z0>NX)W#T("3T#
M^VOH_UN:12O0J4$<1=X*+&OEIP>!'JMZ))"00`[`BU;43*BS<4&<![X>+$#0
M`,&``@C,;"*'H,<X"18QRHQ"0$ZT5S\*"%CT:X`#_P8,"@`5H*!H49<N8<Y<
M"J43GA\G)[@B\V/5O%:0%#381RZI/Z9@D<CIM.['@YT,#J@ZVP-2@X<,6CIP
MJ8_NU[!XB:BIJ9:`-5]B&C3P*2"!)@DMP8U#RBZOXTX$1'F<0$<,'@&#%SQ`
M4#B<!`7(D"$EZSCO37<+$"$P%\F!!*@"(,4MYW(K4HAW2R\=%/F'1Z@$-L]Q
M@*F8(GMS&>AK>;N![K`;TZ@]`!(D'@?>!'!^,&G`,I?,1;ML]GQI+><$S`D0
MA*"`MY^74@Y0@$#"Y]N,RYM/4TJ4A`G<S6&*)0W\-]]<*>V#WWCZS51+-$^%
MT<@!<TFR4P]LS64)1.*YM/]3@QBM,4$OP4461C<+["$8=PELE0`__"RH"(@`
MB=(;,.O484TW>C`@6(JR`#)15PO&1.,Y"PR"B!WKL$:**\/\D$DK#NAC6UVW
M?0@*!P!T"4`&1V3@)0`<%#'FF60.$0&::!*A@9<:N`FG$)")\@`&/N3I0PWK
M.->#`+/XYL!UL\0X!ADNH3$$EVP"$.<0!HS9`1%B>DD!$0;HZ0,&1E@`@:9E
M$J'IJ#X$,$0`I))*!`!Z`K!JJT)X(9T(HV(@3VK9-/!($?2Y-.,B2&&::IZN
MJCEJJ!%H6NP0K():A`:CFBKJL*6>2JV>K^990;8^+*N6;]".NH,O`XRD:RU#
M%);_5+I(H9OIL,L*\6Z>G/[0K`\01&#FJ!<0D6RT1%"@[)F7"D&!EWBVZN6T
M>1K`;;&0[92PIAFD)&4#"_Q7A%3>*0JL2Z3-B\&9CPYAP<0^<)`!Q4;<JZ>T
M/U1`*LP_H)IGOTW,ZP,2FCK,K)YQ#O(M"JF6\"1*SN7F6VWL>@BIGCXKP8&F
M$'R:YZ0MD[KM#_\";"VQ3NC,,]0,^^"P+B.NH.<%FCH@P$AQ":!T`1-YW(K3
M0MP;M1(NZPF!!4?<RW:>^LJ,[^`^Z/NU#Q<$X+CC!1LA\MC$&F"YSCZ318+5
M/FR@:0BZID12,[T)T9+',2;SL[:/.PZX$0*3N@$2]T[=_W#7D6)+A,VIQDN$
MX=U2?JW#DA5@.[[V`@V))&@TX]X0"_PY1.H>]ZTIS;^/BO41FGJ:)P3W6J!I
M$;R3ZOOJP<-^K9XFK$%6"GI6,(`)>H)`R3*S^",5>9M,CU3UU,+>$#RGJ9(9
M87SATM2VQD<I:AGP84<H'[7.=H`)W`!4!2!@GFPP@,$D`%UZ,(<0`.4_IN4M
M@$?PWJ@B5X3Q=4U/^F+@TUC7.L5E#6Q&*!_--#6[@>1@?3SHH&!`B``%^(,`
MC4F=EBC6N@"\K@@=2!7.#GBS$\9/"'XKPKSVQC=8Y?!ZB_.!!P;A',0-:P12
MZH(KA/`0!9`G)EA:XLN8L+)A@?^)BND[7N*PB,,9FLT)]]H:^<`H!!V:Y0<Z
M6%^><)"-!'P%4.`XPFU(0\@D4(!S$-#9W_"XK(1M+7;I\V,%FBA`(2".BT*H
M8YYV!T:U))`%'P#`!T9@QA#(XB=#P`1%2#.$V\2$ATVTH2EY^`,S;J^07OS!
MNQ3'.]_I3%7<(YOD9%@S38UQ$2_04PQ,<0=:Z:D%#7";<X1PF/X5X39E(]7>
M$N@#K$F09LTTEB#CF3UJ"0^5RJ2F(1$`RLY!8A$#X!P(%N'(=,UG'T:24J+"
MJ,XP;M**]&)E'W_0`1OR[IC)&U:]\/C':>H.F7I2@2B`!P$QS*$`!"B!ICYP
MB034!!C_+IE%>Q[Q"*2(L)H3%((*\S0[8_7L2$10RT8(0`$/>"``,P`,000@
M`P"<@`8P((%R6M&KB2QF00P"JB=JL@C3F<4<ER#``-+#@!1QA@$/8(`"B-(K
M^T`$JQ+1JB=NLA,*S4$M4T'#,.8QB4:L)AG\N%OJ%G03N;Y!#EQ-$D[.L@BU
M.,(U"G'`!/JP%4S\:1]86I#&#'O8C>RB#IHYP`+`X(MB8(83/RF,+.R!C!@1
M"3]:XFQ`.J%8!(PB&F&EA!_HYJ,I^:0H+0&$1.#JE=V54K9,J$-7%QN-.TCI
M!]Z`S54<0@O`7O:R]\&JEC8`@0M<``,L1.X22/>#$>5D$'([_XM?0#+6*BDD
M`7-I2%;F,@!]O!8_[A!"!"#P)D=M5+SC%8(<1A29.@R*(&$X$7:T,YAAF"0?
M]ACN5>$:$P-PP``5``"&CPO@(9B#.M`=A&UU\@JU#`!`=[AE,E)"-_I(H+X*
MFO"";JK,`!@`3Q0P`(<[3$X1W_:NS]4.;"JA$^J^A4`8BBE$[GN;QJ2R`I:#
M,@#"R^,BU$$0DS'%6?"0I)-DX[WQK>PX6I&/9!!7(KFQP`5&N8$+G*_*5A;$
M`]1B#9%H9K0,*,99I_I@UF["5V<N:*<J@($+&.")<$Z"(D8R'*C@X8/(*==(
M"E"4K1Q4'$Q&BJ`3C04$="(2#WC-'O_F,1BH,,,2L]`053,=4Z5QF@H$$(-.
MP,`)`4C`+19*-43(K(_!SOC5;`!0`5@1%U9HAR2"J:\]BJ(8&>,WH<#.`DI=
MT):U3O8GY2A*H98#:,W&-MIMH``FW..*B<AF%M'#QY*][6IPLR$U?S7)G\CA
M(G(P60&2=;<M1F02>X##/N3HD$2LH6]TT#FM>Y@$9^11\(8[_.$0C[C$)T[Q
MBEO\XAC/.+`I0&4*.$Z86K"`$SVN)@Y'P'%6$/F.95(U(TSLCEO(U'ZG"(`I
M%D&5,)=:!4:IINZ.S#$;P%-/]=LMSSE,Y&H29N0HH/13^<L'&BB8#[;F1&-A
M`%5'IUD$`.?_1`.\J0(=D%8&^N4Y_=K0`OIB8>0B(,R54T$#7R>"YW:>LCKF
MJUD:.%X&+LG3>67`[C_`0`<TN'<?9"``5BO8U`X=@`C(K.56XX#5`!"`#.=8
M7O'J``;X^P-\X6OS]JJ:JS2``0S$"5\0Z$`&."7Y+&!@`QF`@+"()3X`R"Q3
M;]*`S(S>`0CPOG-FVU2&DV4Y'PC,`"L+P`4RV5&9P>P"'6!;LBX0=`RLK'&6
M]UFDC&6!H'<^`AW0@/CLQ8%D_4`#-G85`#:PIF2!7Y!5.+[,(L<J5*U?4Q%@
M6[Z^BZJIW7_UUM<YAL,!4Q,````!6"<SXC-'Q;0S%\9=GT)]AO="_[;'`1DF
M+=N'3-74><KD,#M#>1RH>6YF+Z;B*A<0>T-7!3=F.:8W!-W5>1I6*HYR8;O7
M+=!"?-`B,!T@,Q<V->'G`YX2@Q10:%CW)D.0)^(#/L8'==#B.(:78<H$=D,W
M=C_@.0(C<IRR,Y;#@60R?J7")21H+S\0>[*'!2>82O62+*/43BOS*1L01=WE
M.9_B*E4S=:@"@&WH>]_5-1<@/A4@,)]2,K4317G")3O3-3GG+]T%/L54<Z?7
M@5PH>"9X@.I7@EPS=5E0=3^`=)O8>")W*1X'."J73QP@+2=W*2?WB3\0BC5#
M`9_H1"*G+R<G3!:@,I<2BR-7,+.H!!&0`2<<\#H!4#"FPG8U0W[2\HF@"#A2
6EX+H$$6)!H),P%TRH3(:5XUX$00`.S\_
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>11
<FILENAME>o38546o3854632.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 o38546o3854632.gif
M1TE&.#EA40*_`M4@`("`@,#`P$!`0+^_O^#@X']_?Z"@H-#0T/#P\#\_/W!P
M<-_?W^_O[\_/S["PL&]O;Y"0D&!@8)^?GU!04(^/CZ^OKU]?7P```$]/3R`@
M(#`P,"\O+Q\?'Q`0$`\/#________P``````````````````````````````
M````````````````````````````````````````````````````````````
M`````````````````````````````````"'Y!`$``"``+`````!1`K\"``;_
M0)!P2"P:C\BD<LEL.I_0J'1*K5JOV*QVR^UZO^"P>$PNFZ,&@L$0`*C9@,":
M$)_7TW%Y.Z#/P_EU@'I[:VUOAH5N=G)XC'2,>WU\?X2";)6(<(>*?XN>E*"1
M;)>!F'>9J'>/GX^2KI2EL9"<J6^KC1!GNKN\O;Z_9P'`P\3%QE(&Q\K+S,W.
M3`#/TM/46,G5V-G:VU'"W-_@SM[AY.7FQ>/GZNMAT>SO\/%6U_+U]DT$]_K[
M]>G\__7H`1Q(,)O`@@C+'4S(L"$P?U\`2)Q(L:+%BQ@S7E1V(,"`CR`_!LCG
M,`G$DBA3ACG9!<"'ES!CRIQ)LZ9-F>Z&>1S`X.:"_X\'5`[)*;2H42Q$P;B\
MR;2I4YA)=Q'X^!0F@P$L$Y(\RK4KE*Q;EE8=2S:J&00#%I"5B37E0J]PXPYY
MVW*M7:=FR1QH<'?F@*T,Z<H=?!2L%K%]$\?,*X:G8ID+&C@T3+AR2<I('VO^
MP/@+VLTRKS;L;+DT0])9$(.VBWH+`KZKV3+$;+KV/]I65,<>VSK+Z]U^$PJV
M3?S?\,/`69L9P'1!@0<5/CR`^:"!A*H#$!XOSKT?&=W)F_:^PIPIAIX4%B2H
M0.&#A`$%W%]GRB`H0<#=\^O#705\^)OC54&`6C<U$!],"33`7@+P43!``^TQ
MU0`"!`6HWX7@6#B%?__5I/^A%.45.-T'#:CW`7P,%I!``<\YE=U`_&$HHS8Q
M;GC3!7PU<(%,TR4`VH=?/87!`@R<YR.*\!70`(1.+8"?/MO-**4V45[!X0<;
M3/?`!A]44$`%`W"PP`8L=MGB`Q0\P("!%$#(P(@T`?E$B/11D)Y['_PDP4\?
MV-F3BP-5.>6@T@C:WTT)3*<B`Q9(QX"/7!8P0`6,#I#`505@T&4%%B1`8)QB
M!-"A3T_:4RJAJ%93HQ17)B!!!1(PN&(!)OHHJ04%6&#IB05PP.(`$G``8&.C
MWO0B/W*FJFPOR3K1*@,<//J!KI=N(*VD#&(0*Z]?6E`!!E[:U*P2`Q9KT['[
MK+K_[+I2?5?@B21^<%5/#:R9)P-KKLD7`VJEM4"_XH9!ITP)1.@!G8H.;).D
M-=5G'+L0.V,H%5>:^]*X22B,8*,5;/!@`>EQ`-\#U1GXP`(2/%<OBPPP7!.Z
M]TP<\<QCR,RJQ4QAC(3&+Q7LG*2:5E"!K=&MUR>+19^\P`,NTP2S/>K2+#47
M43^AVY(OP48BOS,1^9+7,FD]D]@Z&U%N39Y2\*NOV'[`<,%,__I!`II^@$'3
MP2$[-:$'4(A$5B,]T7<492>A&K@2]`C3>P?&Y'):,S%.DX]0@2&J33Z"*VFW
MECK'7`+>YOJVEU_B+1L_5>\=EP`0!2``"'D1<$$$3Z01_\6I7"`F=-8?^&K!
MH_"EK.9++DOJ*P8/&+DHTQ(PVNMBEK];K]>0_^LU7\RE16^>:H'M]&VJ3\FZ
M$`YHH$$`$71PP`4@S)[!.!"DCT``&0@@P`09(&"``!H@P#\`K#.`^>A@/K\=
MP6:$<QR=;&4I)%%@/L7;%0-3E+(!8,!!6(+>%WB&LQ,]+'PS&A\(#@`!`<3A
M=>R[``(D,H0,'$``;$`A"%C7`0=,H(0.F&$`.C"_`#@``N]+`@*3T!$^&!%.
M78J0IB:()#`1KSQM8R+('/3`HL7D`4;,HA:WR$4N&J"#-DE=-L0(PJ.(<`(`
M4,`)V\=&%HZP`_R;@.O82$.)./]@?#3L80U%>`3#P-%^@`RD(.T7`8LTRG',
MFYO;&EB`Q`V)>+CZE8\FV(!+68!I;RJ`!V)B`8UX\I/8H4J\0/.T>A2NC"GA
MGP#4J(%5'L"%*82=.Q2@`!`@X`)WI&,`(#!`/.ZRE02X7P9RB`32O,Y*8/10
M])[BL6\ITFF-PP[X4$G-+^!.",?,33)!]87+.85RD_22KG+U@)0ER`(6$)NQ
MIEG-=FKA.-D$`4D08!]Z"F%P"#`@[+8YDU,.X6Q-\15TYM:``43R<_#A5`4^
MQ912RF.([HSH7)9P3`(HX'4$B(`#%)#1C1I@H[`K@G_6E#(ET60^-4$I6Y0)
M!@X2+";_H!.:W%(4&0D<LBD.C0<9)5K-:\Z0"*^#@#!N.-2/*B!P1/"/FGPD
MK7F1:$R1^5IY(L-4V&!M4MS<X%,HU[,T46!%GZMD`Q()*+WQ]*R$HRA082<,
M$[9UA`B`@`'<,)2:-(I!%5`3M>8F@0U(@`)@ZM;2*N"!!7@+.DB;5E:]X-)B
M.0QU:(VL$PP3S]<Y(!D3N"P()B`$`ZPPI$(`#WSF]A%/)4Y8D^P9`]($UKEA
M$`,-N)M:N*I!:S(4C#G5J61WJP1X$J&6((```((BW*`@((=SW0IX#/3,<DZ'
M2Y/D%YHHM9[K;`!6=O.7INJ&$V+Q,[?P@"AO0>A;9-*D47&+_P^:)*4EEBTM
M<0M0FZ;4MC*3WK2VW70*OO)4'JU-+R:WK8F3`++3\4K-I_&D6$WNM)OW+-8+
MOV%*HT#&*6F]1'*+4^?W`")>`^_-F)D1,'`"?+$Q--9-(R+2BM*9HK%61[&D
M@I&'9TS9$/.S<B:^B8-&BR!>I<A;!K5;0PE2X!E#K+S:O#&.Q7"`/]%$4D4B
M7B5]#!\,?.0ZM!V;/LUJ9-XB^5!*+C$9.`@L]\1-D4A2$CJC<]_0V$?&7>8M
M@FVL9'_NS"9(=)%*3T>0#L<98B`V;YCM?(0(C\W)+CI70HK\YU356-!U/H.A
M@0/>>S"ZT81Z=)('K8M)KZ;2]R`TIO]G]&4%AYDSNT`+HA_SD\F,&JV:!C.G
M>8$US?RE)'Y^-:H"O>E(]P(M)*Y*05-R:5W+*-:FGK4OIJ)AG`Y@RPTIMK$O
MA&P;G5K43T"+*&URE;84!=O3YDZIK:UL=(3DW`%XLU&D'>[N5)M5GXRWO#\9
MYURW6T:\OC<V[*UO_;R[W^(`>!G_+?!E@+O@A!DWPI?ATX4[6JT.EUC$I9;O
MB1^#WQ:O#,$S[@MV<[PKA:B%`=Y'"U68W!%^$(7*23$(621B$S!GQ<E?H?(\
MN-P2@(BY)F2.\EE,HN8_9[G0<_[RHG>B$3RG><J';HI9Z!P1!_^X91(L]:IS
MG.I6S[K#L:[_]:XWFIX$(,!(#A#V`-!3`V*G)]G-?H"^C=WM!&C[_.*^]K#7
M/>YBMSO>\TYVOI==[6EO>^#K+O>WS[WP>A\)WA5/]KZ/O>Q[?_O@)\]VN",>
M\8M/O.;]SOG'4Q[PE3^\Y4>?]\R;OO&0=WSD0<]ZN7M]2@Y0O>//_OG+CU[T
MI;^[[B//^]D+OO*4I[OHA\_XW!M?]JE/_=I;OWS;$W_SNU>\YZ>_^M\S__FV
M-W[QBX_\SC,_\+%_O90V+GXPA+W\^(8X^LUP_O7[6_WN'P,?XI\?A1-NWOC/
M_T3BW'[Z%X?\35`Q%A-UJ-)V_L<=``@-IX9J7=9_!U@;%4=NOF9D_P[X@*4Q
M9Y!V8P28:1YG@5`"?\D6&M'!)[7&.S/!`'LV-BQE9/GD@;5A?U#`(9J2/-)1
M+SPQ)CW17PU@`7OR+_!"(B6"@P]F8`;H@J61@$L@@].B)N=!+3AH98W"`9PB
M/`M@99HBA;IB+4,X7D5HA)41@3>S8(DC-)IR6@2U(@G"0)+"7$HR02LX8Q7H
MA7&!@;T6-B+3.Q(P5AGD*=-!78L$98WR.VZXA;PU?W*8<"`H@3-1-R<C'6IC
M4"A3)M.1AWEH)M$QB3M(8ALX*"UXB(,!@U:S@)LX)5WHB7"!A$H@@.8RBE)2
MBJ;8%6"80-?&?PWWBB5!A[)F$WD%'=9!'?\IU6PY$V>&:(L@EXAAB"@O\0`#
MP#1\(0&OTA[/>"(HPQ[R\B4NQ8HSTHG$R!6@Z"Q-80$7=!5+-#<)8B#E*$D*
M0@&_HS;#TF6NN(U"@8J&0Q]$TC&C-4G@!$YM@R*\THY&]H[PF!*Q&(/-<1[`
M$Q_X6%!?I9#[F"NK%4W]1(L!61C&*(L^`3+\PAS7$2O.R%?7D1;7\1,0`C+^
M2&,=.)'@T(T!F!A<E66(]$@!TX"UB)*!4I$$.8ONJ&XT>8LV&8HX^8\ZN9.C
MT9/>>!,L4DX=@HTRHHU"Z6I*P'4W61-,@B=>PF8LHC*)I#;M<5#,`9'XY6'#
MV)0-<1P9H'^&9)3_(<(HT\(`T-4R9U)08Y)!@I5G7VE@<2B6!7$<Y]-%?+E%
M=!D3'>DV;#AEME(F0$,!T+5(%M`F,0F4>.D0N!B")^@MB9-=XUB8'C,DX+(!
M)B(I?562'@:0CPD0^49,:R`$NY1/0@572853G])?\;(`7C)5UL,71,)<C3EC
M3#F:1`9Q%A54?``!!P``"!`!$/!9N=":C]&+-K$TJ]9=71:6O%F33[E6Q^16
M.B01GB52HBB1TYF7\/<ZUQD'/V5+<T6>H?448.,],`&,HQ2,.?F=!8&+P+E+
MPUF<0I`+Q)F<^^04CQ-@&/92XA%GHBF?]I!OUW":()":MA04#)J>_@E%_V&2
M*<GS*,O32,XC+`/:9;MIH/M!E"L9H4^46M@2/(?)'%RRH48FG1YJ:2"J@"*Z
M2"3*2'8R`%7T3/!)@3/9HN>@DC#:%*(C28J$+97$*)C$-)NDHG"XHSQ:#O)8
M3-T9GTVJ#P/ID^7F87<YI>_PI$>@BL6BE!C"HEJZI2^:A,WY$Y!S@L%V+S01
M;&!Z(5DZINK@HV9*$YGD(#`9$SSV9!H37X2X6W$JI^;`I4;@'VW",!8@F[D"
M'[BR(NV%7BJ2)`5@I-?19F+FF((:#U5:E(OH-K@"6P7%E?$A*<#"`<SE7-)A
M04YD4M"IHYFJ6]69@3W&,(PJ4Z2J7A9424OC-O^563)#LT@1&9TG^:J\0*C<
M^63.\:GQA29@-0!D,JD7E"(%X#%7F4GQ8:D,Z*K$R@YTFHH"%B&Q\29_*EF!
MNJW<8*S*Z33`42_C&ED%:J[<T*WS^)-+"J_J@*YU1:^A&93V^@WX"J%7:I=,
MVJ_.L*D!:)8(2V\R2;!.6J8[*:8,:Q`.2Y/E&K'2\*\CU)<:N[$<FT7\REOO
M:K$7.[%(H(SG=K(HF[(JN[(A\0#>*;+;8+`_.H'U"K/;@+%>.BIOZF_#:K-<
M(*]0JJ\"Z[,T0K)=&J682K2J8K2%>B,YLB-7A*./L;/Y4;%*:PPR6Z<UD272
MP255&29C4B9:Z8AJPB;_*):;6#JP5]MQ3'NL:*,HEN0HD.(V8!*7EU)EF](I
M:TJU[M:S:SL/;9NND_,JL6(I+%(K='M!B0D?;%.JH#FT?ULH@9NO:`,MTD(M
M;'DM$K"9)I(D"J4Y:$N$'QNYQH"S[\(<^^(8]6*;_%*;\M(OUO.#[8I6(4NZ
MP)"UWBJTXV6UMML+D:F(_,2W".BWO0L%0'NTW`8;]J*"3^&>V:J;T%:\Q'"\
M37LN%]`3#Y!EJ;55C\N%HRN];!NK=<@6VB(=A6D\"^`[F12%#GF54ANL20N^
MQ8"[\_HRSX$RG@*%B&N-P3*DO6HBH;N[:BN_8?"[QPA-:/(H.P@L^[NYA,FK
M_UH"P&\(EL1+P+TUN0`+31(D'9F")9WY+5^U*YM3)BY9E^/5H1;<"]3KMC2[
MKRE,#*:KNR#[O2]<!O0;M`$KP#4,#`@V2#[\PX`T`0UE.L`AO/]7P3M,!"LL
MN#/12'3+/=R#/=PS5<R1D<OKGD9,'"B<Q&5`O?IT)?=%.E["-.N!*XB54-1B
M06TRE;-[5K7+Q=8$<<?%60B@1IYEQVT0#?R9P3/!557X$G?S$0CY-JN5O?>X
M-(TXP:(+Q[P0://S.A^U69%\0RLD=BR\B#WAC$K#-((\-U]B-X!UD(J$`=BZ
M9-#+R+L0:Z]#GM@I`'&U!\=)N7;*-.WAEBBX)-?!-/^X4B+.A5W382?=6XA(
M#,=?!LDY-`&3C)IT$%>RW!=$#&"_$\R`.L"H7`7%;$MV7,<`<`WZB9[]J1CL
MV35K>JDS]L;5K`4&C`31^\TMO,CG;,,8S,Y-\4"9\LQ]D<6VL<7OW`4QK&<]
M(R\.4E!]XAZTTB?@JJ04O,]DL,3-?!/#HTCK&%LFRQ,7!";1@1<OJ]!@P-!\
MC(S_+%#.*"R(;$FZ\A3X7!OFK-%4D,Y1^8T]]COO@3SL40&5!"91AM%2JM(1
M$<\Y^RH75HUYR!P4L%H,_%?/J<@GO,XZC07][)_A<=*F`;%+?05-K8$9/=7O
MQ--(6[-8O055W3O/X972417_+E.),.&563P_*HM41I'271V`6BV@"7*_*1,L
MRY@F^,(R*;.++4,RUK&#98)=)LP+4_$@S0$41<&[;]T$7RU0GZPVGQQ=(T,D
M3,,>Z9%0GNRL75*IK>H+!Y"F57$5P_P,4KW8W1#7,`43:7*5GX-F*L(B%>0>
MB_DV^]@>60:FGWW4V$'#_Z#8IGW!XIN+__P2H8,KG].Y7V(GOU*5G)S9'L`I
ME-W9DN88CW$52MW;U/S;1/#58I,]7O,O^Z(66//=K/M4"IS)`\.*!."\=M$`
MV:T.;JW=78K:HP(G!TW.90!0JQ$9#.';\FT$7[U-FU@BX;$FBS;:21S@R;2!
M^@T<_P8^G^\MWQPMS\'+?N,,&@-V'Q&NW1@[T2S[X2#.LBY;!HVU&A-"$/']
MWTD5ST74L2[^XD;$VUE0XK$!:N_@WRH^!!@+$`T^*H]U&PB^PSO^#XTU(K1R
M,@^2@GHZSC:^#CB>XZ"5!%!9%$W&%#[R8N:D)[!BH_CB)RO"%$%.V!O^VT.^
M#R4..@>2(B@R5H#E)^QASS#1Y.=0VE".!!/.#SW>Q['%%VJN(HL$'\MX-W#^
M$C^N#T^>XV5^#S3N([4"Z'Y^J^<!V24NY^60XE">Z/9`X_.1Y"VC)]+X$\[A
M',RY3G@^YJ9]PPE!X_]1Z*9BZHN-Z?+@33<6YL%`ZRE\Y__ZH.H=0NGA<.@J
M#NOQH.JS(M:IJC)*3NKZ8.F('L]FSKTO,<8D(HDC$ZE=65:&[NIOC>H%(>S+
M72E'HAYIQBB[BE.E'KD*D`L*6@1J``(*$)2T]`3M_A5+\$=`7._V?N_XGN_Z
MON\^?-^8`Q.XLE?XDB(I,BV,2>[I8NO$*``=0`?1D%QJ(%P9$$S"M14(T`$\
M!#N7Q:`&D`L^-`=QE0QQ%<L'Q.RY[NRDI2V"1?!!]IG6?@^^GJFKA$82H5'#
MU`';W#^K!`"<U5D18)SMXP!E>4-I5$@`H`'[XSH0@,P=#_1]9/**WKQ6L;I;
MLS51A;K$GC?)+N,$RSKV`T!M!4#_"RJ>?)!-&C`!_*-+$L$_K<1"K,,^G?4_
M?P/UF9X<SOD4O`X.,2^HK",[-2_TN10`.E_V0D``'<`'#<\^K$,1'^7V@F\`
MR"P`2Y\7VEX.GQ5<PX7Y9+?-(.``?J/K_Y'WW[#W<FH[#B`,$"_R$*`&87<-
M!Y"@PPD":<`'(]]#LD\`*Y1#=.``Q&0V=%\-=&!9F*59:`0[^J/CYI(6VQ83
M"D\&=%[G1H#KV[#*8=]6=-#Q]B0$&C.INYCUDQ,30UT>V0,9V"X-^@S])1_<
M_P"<F[6:/2]V"J!9(*`PNWI(:0'M:%*V]_LF"PD$A<>"81E\/L<C$CD`/:%1
MZ91:M5ZQ_UGKX:#U?L%A\9A<-I_1:?6:'0U@!6WY'!0G1!R*>_X)`"D<#)Z6
MF#XD!@8*"BN*!A(8$BL^*`HL&!82)"D_+!L^&!H8"I/H2LVX3%-55UE;7=4N
MH`XT!"80J.($WD``_,Q\K>)>AZFZ0!",D9\0;I67/0L+!A8LD"H:+"H=DPHH
M'@H*,)`2O,$_$CZ11`L9C(F'"0C>Y^GK[=\!!"#J%";B)Q3$>J+A#0`##@1$
M^*/`0*X(N@!,T`<"H:!\^Q0HT%5%WA5A]T!>(61-T@,)%<0E&(!!`KI$%BI4
MBDDA`<Q*G$:-<A)258!=/($&%3KT"80`L2X04``@`H0#`D%`!?]A(`!!`0`(
MQ-)W($-$!!D"9/A*P*C6@Q^E"/)(-.B!=>H>(&D`#10H3Y>2Y%VPP).2!8IR
M,OG)=@TSPH<1)YY#(`,$I+SRO8&:09Z#J@JL2JXCN5<=`!T$"'#06*M/M%'4
M!E-\;^0'1H%AQS;T-N?.U6=0W=:]F_<4K@`>]S*@(0)4"!H44.X``.Q&K;66
M9L`,0D/$L,`W!S@-93"NWL0(+)`]GCSL=M_'Y$:_GOW0>`$0O(D'X@"!P?:7
M<2%PX-:;^O+M:P8^$-Y#AAEWI`"FBNW:*Z6U\B",S;8&LYB/P@LQS+",CE33
MT,$(082M@5L\K,*G$E%,$<74%E2Q#03_H`E1Q@4X='$9$FW,44?=6/1N1S3"
MDS%$4'ZD#\$BD4SRGAI]5'*,((4LC\@BU7/2RBM94;!)++^`,LK8%CA21\.X
M+--,-KJ;@L$S.7KP2[F8W/%$-NFL$XP>U;13BVG>9`(2')&T4,]!"84"3RG6
M+/0)`@:@;<@!Q*0R4D4IY3).1"O=@D\0%X"4RRHS#=5*+?,4E0I&$1FO`40N
M59),4V%%,DU,8S41D5MQ'9#-.6OMU<9#HTC4UTH%'=98#8&%0MAC"065V6?7
M:U59:$5UEMIK;R.5UE]ZZ=;;;\$-5]QQPQ7J`)_0G;7,5[%M=S5UIST#@#[I
M94);8N*[U=$D_Q`)0-HD>757X,.2?6)9+>:ME]Y[70E@@!C)ZQ3>(HL=V&*A
M"JX#C805?I/A50YP$\(!)M;1VHM1MJ?D@[/@N.,H/S:%T7UE'.!?&T].66=B
M8F89"Y=?EC%F.C:MMU,G*]Y9Z6%6WCCH+X>60^0^!P!4SI*7SIJ.IN5]&F97
M$)B:WA$#O5GKL]G(V.<K@/8:PJC5@-%M)LC^,6FT\6Z#ZU_F#A'N-,0&!QQ$
MB!"R;I,GS5MQ>>%P&K8!)'%M)"**7I@5L9M0I%,+)/A@K@_VPKP)N\U>W/0O
M]BZC;28*V`")#307C_,"*EBBTT\Z%044O<2#[>]3:-9)D9<DH+V`XO\?J""N
M\:;,,>#3H1\C=3)61Z*2N;*9J8+9DW\@$B-4PH`:[3$(_H/?RQ"=&VZD^0N#
MP<\I[W`7[X[>_BS4=CPPVA^@(*;WPR$-:9R#`=Y0B2+(D0W7<:!SL4'?&-2W
MOD1(HWPQ&2`ZRC,A%=7O?AVDPO3&4+T/"%"`EF!`3!)Q!'(PXH#G.(DA&H`!
M<3@P%7*37^<:<!(*#"!YG//$\B)6N@;ES(-%[$/CN@8;">1PB1)@P`,>T(`*
M4&")'QB"29+7N;@(07D%A-@H'AB&"'I-@RCBH!&+"$(QB+!O@0DC&,;XM/FA
MZ'EHM*,:P\#&-H+1%`'8XWC*Z*$SVO%^^4O_XA_'\T8OB*QXUFL@$CJ50PA)
M\G$V&B0AHX=',``@$>]K(!`]]TA0,@&()PF@!)H8FP8J<D^P:=WK%('*$:KD
M&YXHWEYBTA<*0`(P@9FCAXB(R>@9DF_Q@]P`)+"`7-[.?X^@P"XG40$,/G$<
M39``!_9R/$-,T1!'8"46O#0*+O*P&P_;(07/@0@&8&`EYVA``1K1R\!@K3V7
M%*;I-/F%A*&C&^E,R01718X34B*@)*GF"+>AB"@F0(J[C,LWK^!'5Y(S$0D`
MA_<$>(X%0+&%%E5A(F03R`P%\Y[X1&(Q^?E1!%9T'#Q\'P8Q.,#X(10=!MP&
M2-$!42M,C80`;<`Y_W'JOP9T])WQ#"G]A%A2O/7,<2E-YTK+.=3R46*'0T7"
M(0XJ#72@@YTN440U=%J%J4V#<$=X)@,84(#;.7&'ASA"YP:PR]M)"*E*-6(^
MO9`PN(HGF6]=*RK_\A=#R!)TRVO@-"C0*0HP$720ZUQ8J1#'N8D40W6T*_0R
M!IK0;):SG?7L9B<0-&A&:'D6(-=I4?M(1%9R@TF];-;PBK#5CN<!Z;+M;7&;
M6W1%;K:!H>R%K(6?^$Q%"@1@RE(.D"SC&H1``'@#`B#`H@!@I;G/C6X4$C<,
M!1PC`DJASQ^P@`#7OO8)L6U9;VE(-!!]PQRC9,)<(_1;"MW-#]KQ0W*GX/]<
M$$Q75_SAC@.@8(ON*N``$``P@2*`@`F`0,!**?"!":"!_MRB/EUXCRQP=.'R
M/B$WQNB",^)#80*02``($$`7ZB-A_@1H/QSN@@$40MY-GI1`^>'.HCI2(S9B
M$*2LXV%.F/C%@_KN0Q'"X$(-H59E%N"=&(QO7:<0X^D^8<$)>H-V`K#@"3B@
MNT\PP%+V4U\(5+G*1N&%`<1,YD5)>,O^$`":'0``0&QWRUWF!2``8.(L@R`#
M!S:P@@.`!P4@(`)[?C.)-*"!`PL@PGHFB`8@`(`X3QK&,@;#WCZ#8#Y,(,O+
M)0N@=IPYY+V3APV`(E5S:-&TPO.)-)$-9*<01Y7_.((!LUYG.UL((ODVJ(Y3
MWJ\OMJ/?*9^XT!#8QW[Y4^CZYL-@?2A(9Z8KC(^<6,QQF*Y^B1T`8SN[#L8.
M]`$^L@<#<%H[%,DT6CK0D&;G8MB_)LL$G`MK-!)38V:>P`'\(.E>'.#`4`@U
M^R3A45I^P'4'E,80GF@)3+RZ%!*%D*TURE&<]OC)K9V"KWU=Y2@(VP_9MHR7
M#4;HJ3A@P=ZEB""ZJY"#E'R[!O-N(*S=BS=X?!?ZG8"W#4``M``$T-I&L\;0
M$H?.Y&(S'?\UH_DK[[O26.@SG[)SXV$4_?9!-CR&G\!Q^E2M@D,",W2R&TL1
MSO%\?85#G;@\RT-/]EA+_\J^B/'&KVST7OCC"5QF+@04H)!`VP*_$5#`/O"N
M]PC8`@H:,&[>3?QK;$.&[KR`MP$0L)0%H^7+],F(<R,0F:`;#-S4T7F[IYOY
M?'3>TEY(71P"P6"1)Y@^3_>W;)2WDK^H4*M9-[@.*3&3K^=$Z5$8HVK9BLQ4
M.1'M@+3DI?(<A8_3`0']-L74KT"5TO.$J5!H>:2[,&F0\_?ULIEKX1I`A%"(
MQQ/CW]WG0,<7AA<9O4S8=8/NYHP-K\=?X,S8]%]QL[5908^K[;TLS.>/U(X]
M+`O_M(;>J*?]P,X4).ME?LE#V"4,(.!2[$,0DN50T$S24,-0W"!.XDQ,,J;^
M"/]D`,%I`/'#`$%N+0X)-CI%7W"G$&*D<$9A+P+P?%)!9$RB`#A@@"CIJJ!!
MI@IA@N@*9[(KHNY%O.*@"Q@D4H3AWF1!8Q`$^JBL"_!@6ZI@ZL1+#7Q-"[;0
M`,WK9V3CB>+*"$0!O@S!QW+BX!*IAH3LA>*G?RH`E80@AW(H'"!'"#P'BFA'
MM=YKO-"#I*Y0%S("\BXOVC:C,?:!\#;C*EI.8QC,N`I-%RCCQ)8"S?Q.+2)O
M&4;,[SJNW;H"(!CBN*@"*P:Q[J@B#@:,(0Z@$I>A$`'@`"YQ%9E+]!C/%V"1
M(>RK$96J^HH)-A9K?2RJ>"S*`JSJ&VCI)HPQKH2L$/[_SPURHAJJZ1$F*.".
M)RZ,@!&,0!P:"1IU0D?LZ8.P@M_>#,!&D>B(3N,@PA$](R*,:^:`#N\"`-_<
M\==0`\#T(!WC0`-X8>9L;KKV`R&6(?-*3`_$$1Z-X2"F(O1NX>84(!X1<L[,
M[0E8C].,[K+T3W\"8X:RCJ4JZIVLJ':NR2.])Z[6[P9'P<FVBGUH;Q.D(1NR
M$1B!S&I2I`"SX-J<ZRK\PQ")+@(,(#7P,5ZNS1V);A5QTA%%CCZ\C1?`K=V:
MSC/>@")E[B,&,=YNTO*$0;_.)2*HS"J9HA?BC!X9C,K:[;(0,(2J+G.,J0"\
M*@$V:H2Z;JC:4AHH;@%3(9P>_V`=4G*":&\E!F`#'&$E)*"'X&F4SF-,9-+T
MF,(!((#8XDPGJ2,^]%%9QC([E,T=)4PT&A+>YA$R.HT`VJP./-,!.D!CL"TQ
M&S(Q%Y-$Y(P`1A,/%O/+]DS3XBT/OBP/.JTA2XS3X*WN&.(TU5&IRG*-9$.M
M8)(CU7*$6@<E:&*"_!*KTDL50L']&JC\<`?\"F<:T"H4RF\OG-/]?@00J2`+
MX8,_ADN\4(P^F.'MT%,>W.%<ZF_$OHL_+$P^*"P*3O`8=L'"6LS"1*S%Q--`
M-/&[]LM`[A,_CT$>6FP$ET%7_(5#_),]7^L+V<;[*$!AN)'(+J<0^/!+*C0(
M)25+_/\0!9&$%U4'D.IE=TIR%1HP1![0XD04;RYR!140"9I1K";K,%V$)L&I
M(XJP"K+P1<TD./-H1OGH%1HE:"#!57"T92)S_[@C:KXR"B)/*_>.&2:@T*BC
M,X!T-81TDXB4&8GA`)8Q2OC"2<`SOP!@'U!O*1"@O@(@SC`"[R*-*A[/W/8!
MS78AT+3$P/:1Y?0@+&MT2[>&QA+P2VGT'<*F=[X$$D(40\[4RA*LQ%2.Y$`@
MY48.Z;9+$/\`%D=.`Y_T5$I,VJ3-OM134`F#1`O54`,5G"HG0B"A1X^/>OSE
M(:9LNIPB$N5,W8;MZ?(A5Z6P"[V,T<*2P=2L#V#55%6&4,W_TE!ML!Y0I0;=
MSU.X1$?9Y@T@8#1M@<#V0.1.D1YU0<NXE?L^]4>US?H>3#%7T0`24?Z0=2BZ
M5)^8M5GO(61N)09SA4V^\>(ZP@_:L2@6A;D$`3]R#LT0E+E$<%'DPQ=L<L2N
M:RH@X!8(EKC:E2C>-:_B=57)(#Y\HE$1)S$B<&+9(T;-(!L$IV1-]F11-F55
M%F4M0*D>%62-!55A]AX^=F;;14)M=A6H-6>/I6)YMA7R]6=CQ6=;!K6,]FA1
M"R@<!E?NE4Y>5FA%161+E%DQ-@O")E5"BE7,Y&FA-E-D5CBIMAY"9DS!1%JO
MI&:[UEAP]@HO=AYF9E'-5DDL*T",_PT!6`3--%,7I^#G".0TX#,+=%$*HX#`
M*J\+])8*#I<^8LP`>O3:EL(*$E<*(E?&B!8,PY886C5*_@1ID$_U8!&_@L7E
MDB$*,Z`H1G-`*S7G*$R\!H0_W2'"1HQ!*6RZ^,/P/(Q$=(7#-*R\-,`B`"0^
MF8%)-.##DF%`XB#$Z"-!]P,M$A056'=).ZAR)[1F(`D2%!5JAB%L@J8!.+8]
MV(ZX%&Q8X^7-)"W0^*`/JE`B&(SD[@!/%]'0]C'<AK?0M$P[]"P?$,#PXJ#.
M/#/0.(01S_?7;"'>(HU2%4WZ_&T?S'?0Z+<.",W0X"S.#.!T[=0KR_=;[TEJ
M4S5"*@";./^A>!KE2"$!6HL4:,GV3<(D29S%UQ!""6DEYLCM(R1-#Q83W_8K
MTKCO)YMN\^*L`VQXQ"#"'&%1V\:,(8)E\<J+%&_2)VX.%N7,#<C,-,QM-%'O
MW(ZNV;8R><<LWG[3CKYV2$-D=CZ8=L#G`]AIAB*D:A?E>G.B=J[*BD"D>7;D
M8Z<,S4A$X[`8AGWBV/;Q[W3NY?#4N>X7Z/Z@W)3EYRAQ0(,8Z(;8,NKC[Y0%
MB>E1\WR"<06M$?/WCO<8D>N`DV..]2)3]2@"Z;C8215G;:F@_V90)3@`H:0A
M,%NY$C9T#5E![')"AI(`FYP)FIXI#(^ULF9%(:IC%E_XUU;Q<9W_S0'T4>@0
M#X>;XB>?V9`-1D\AXHD7F=.$CAWEC,`B>3-]#2PL$<`Z(/+X>/"$XY@QCY(%
MLMQH-R-*E\/RSHDCHR(Q"97S*T2.AX=2J!OBPG4ZAQA!I&IM*#;B4'SB1Z"F
MR'\@Q_NZMS?H"U"6+VTK17KY+T269P'\AXI,C1+NL$/3.$/'`P,>@!P.VJ7@
MR0*,0%6@5T/B#T%(4**G55G!5E55-&*@,2438*IHIU'0>`ASA&MAFE"^V$LO
M5V;8V)>@@1$2*YG4*I9&RY>]L:&QX&!E1@KJXPKLPU\L,*CEP)X3I&U-$KW>
MCT)V]A=>6@6G8#0&5S&=3PK$JRI[U)1A_]JK-TXV8L@:0"F29ADVW`M,3<$M
M%/"LOR-H-^X2M<.2&2+R-*+<G`MO"2`/N+G9KNT2N2,#;E%!JB)TQ?<J(B#S
M3K,J)?5QNX+U"`2<XUD4^8PIFB\CDDO.W&&TQ2OS3E$M%%/U:#'2$HPI!!MM
M*)IM)80#?L@E=DDMR:DO!D@"_`=TB'/W2EB]%'"LZZE1^]$/)I)/<;-/1W#!
MCE)C@E)\.]D>:V3G%'/:XJ,3H_*[_T#G]G%:M#OSA!*["6T"J.)_;W@BNW!_
M'W(_LDQ<ZUFFP?AQH,B*&&HP4R@E"BA^..")[CHE4E0.!OHD.]0#1B(NF#LV
M@)`=?GD]@'JZA__UY@J"L<M-O+J"N21;YKQ;'PH"0=#B7%9Q6G;UO%%<*9NR
MV<AL\9INQ`6!RQK1VA:S6[J0)RUQWT2C,N]IJ.%50KAHJ"K!#C,*':"HE?G)
M'+2JP=M@:FK"-?SRG1*+`QS!&T!!"!9@U%8MK40&NJ-%N@5MRFA3#_`@,PAB
MSHQ+,8$!#T1/T*)@>#]3L_UER_ZTQ(L.M$-S\M;;Y7JS,0EY-B.-(0*X`[CL
ML0V,(MU`'Y5".PZ@S=Q7F.BZ^Q[G>*I!)1QJG]WI+J$<H<2!P9]S#JP\L09'
M'"I`F@@H$B8!'`)N"#;JPCTT1W=;TCXLQXIWQ)`!/J_:2*0`/N+\2,C_,TV,
M`3ZI>M?7<\3.<[B^ZV\)A#T1M#[Y4]BQG?-(1+AJY"B1=S]^?:7M)].IKFS#
M_`QC@@C4ZJT&"Q'V*K#.\-2E)C;8DA*D80>GW*O*X>IFZ'U$AD:@3`P8MQ0&
M'D,F=^.D>IC\FZAI>FO.$@-0B(P=8>%>(B:R084L"(5B8[=U@["YFE#(G1?`
M&M7MVG,N013X9"_N0CS\0A0\82]`QWS,_#N`NKA<*\-_6=K)X'79%0I^E$`.
MTT(RW.<3?G%Z.Y5'?MX-=>8=.N&%50LR%0S61G`%WM^DV0V`@:K]K4FE1XTO
M)N39J(#,H8V:<46?ANEY`Z@5^US``@H\&^_X_V/?PB+".@/?!DT6<_QQT2+.
M_`#-N!GO.*V\XG&['G;?*C7/#-_Z0`#PRZV`S2WS#$6>-RY--28/$'^_WI3R
M_^[O#"++F`M.IX+JTVCACYRO^T(29`ER%DNM=.@3SFK)I`ATR+;L0^167K!>
MT'XW//X)_E30H:!T-?`JND#0]=&Y`*PQ,Y5;`1(*['&Z`.S-4&X7E.(X#G_X
MJ4,I3[PG*Q7+]B$".)5O]['X?P+S3$SY%\Q2S\(^,C4`MHO`)M53,2EF-.NS
MZ/^S0BLV>GJ'XJH;4`((&)A$HU&@,"J4`>:3L#`>BP^U6IT(LMHMM^OE4JSB
M,74SJ&`&!?*G,&"S!_^@.;UNO^/S^CV_GR<0^.$)S!$2TA$"!(!D`0!,,$8J
M`BA$3#(&`(!D'LY%*`AD+@HH@I3.*2A`&#B0/D:Z0B*6*I):1D!H9M+5FB[.
M*1)$A.H"0!Q$!)`J&!#N$IL"+!N<"EI?8V=K;W-WU_WJ=7(#P#E1,0PD4"6X
MJ3FI.PT\8+BM)51(-,%I>NN]E8^!ET`-A0(8&!2P\$`".X!BY/2+*'%/`'#8
M(#@0%@F1+T8`#B!0`,M7HDN$)H0\T.F``@031#$Z``!!*#JI#F1`\#&D))`B
M$<FDJ2P`!!`M(2G@1[(CL$40.H!`J>"`,`<((H`PH&R3IE"04&+56FTBV;+_
M9L]N,\!'G#4$=<C!>?!&[I(!!0>X2T#$[L&[]IR$V8<6Q#^'53@4>%!!S9F!
M;IP\-DP%XN#*V`!Q,P#!K5HZ:@,$4DLM$`0"GPED(@``=580JA=UGJ/Y@-;0
M7#/2.>!4]NK667M[OFV:ZR+5#L"!/DT'-##7IXHZ%^T:MNG>JI5;SJY].S>+
M@[(J@$1IZAP"N:*!=O`6H(0"#:A(D/!AP((%;QC&_["@P'[['^1C,(5@:!4F
M&3SS%>`88Y`5Z!!EW$%8QP$'1%BAA1=BF*&&_7AWAP!7!4"A6@Y`9YXF,ZUB
M!UR2P7$@&^T!I)19#3ITH!H64&!!`8\E4!"+\VVX_QUF01)9I)%'(MF-C(,$
MH,%6FPA`X1R[$.4`B>"L^*.6DBU)5@!;@NE0ATE&-"299QZ9B2-KLMFFFV_"
M&:><<]+I2"!H>C-F'0(0(-)'Q2RGE&8Z\1*FH0,2>*BBYTB)9T05;:.3`NI!
MH$!QJ=!Q3(2*,)<',WYTJL=8E8T*3`=?H)JJJJNRVJH`%^CIJ""QY5$25HY$
M8!J%NX"0D9J%PA&9BVI(\)X8#S0@7T#E=$D6C8MJ^:"LW9B)3:XQ:0))!`@0
M!0).WB$`05'ATCKE1W:P`@@$Q96B%FJU+)D:`1G0&H`#,SFG'BG,&4"``P:$
M6]2HFKD+@'JOV4'N)J'Y>_^N9NH9K-Z$O+`U+1^P6JQ-K(5<X]8=68XA;`,/
M%"`!L0WHN.,#'Y"L3D'O[;@!LY4]6X5]>`W`@'XZ5V'L!SY;41_/9$B;<383
M:T,A3;0\^6%2WFU&(DKVUA'N1D!%I9-*()3FC",PY7;4U<!L)IY1,L'D%=<(
MD#B6P01`I<E4A)16Q]3WCA*`M@CDM&XOUP)3L=%X8#RX-1N/O0W(8@@K3SP[
M#B!S`@BEHP8^'U@@004?<##S8`0(.,8`)N>8\WRA_U>%BU6XL3(9##1J^&5W
M:M,,VDMYA'`=#H1G\`03Q!X2`%#M"24`ECRRK=>36,0T6Z70K8"3S&.B">\3
M?%W_?"253C_!MKO_?CLTO:@9P%2R!"[['H6KST>SVBM93N/VJ.&&.NK87W_*
M2YB#:*)D6&`R:T",_1+2@,GIB`,+>,`#PM`RNP"M"D5K7Q^J=0T2S4$F40'!
MMHA"#0%@I7CW<I<X,`("#=B!$'WR%FU^0PAJ4(\._^(@350T"I88113!@`8A
M[C46!01"`SBTE&AD1,(=FH^&*&2%(I!!*VE0D'"(HR#B!(>-Q04M#8K)2_W2
M88[\66"!:%B`!2K@`<\-Y@!#LX(^\M(&+ZJA1V_8@'TH0(0UR,4N9)AB%+_!
M1SPDQ1%<LY1K,"6;V'$-``:(`$O.18<^9<\F<[A72W@W_Q/SK<(`!\#@6R9E
M%'112"1)$1>)^F2`J:@E%XO49-4<D0&C&`,C2?%8!I-"%698BA3JR8`QLD(A
M#=#2%%9L'_OZ>(=R>:@?6+0".G3&@"DTX)D+8,![WC/-][S!/Q^@9@3%\#YG
MD0$>;K0?@A*@.2>T9P$)6.`;W?$08UK#@O#$$"F_V0=>)0Z';QFF^HHY3]FL
M19G0@I8])0*Z,00005^$8X*B4``/#`!'ZXS9Z!H$NW_V`6D8S9!&M8$`VB$2
MD<+$J#__646!#E11!94(C18ST(1:88(;E9!(9VK3D?ZSI/,L*#\%L<PJ4!-G
MQ@+:,\^!NIX==0PKC0@"NEDS+?]14PP-".9-ZR!/""&3(KM:A&[,DE7N?-5]
M/36<3N%)NUJA%`YAC-P`C*4L*FC3G6(P9S>ML-0R)36E03MK5?VH'2LBDI^[
M\%X.R6*(#(T5#U#,Z1]E%U:.>>.G/PL,_BQ0.7;(I60/T%$%$M)6':D#IF2X
M*U[U^KH&]#4/"*"J-5@2`0<@@QG*H(3P5I.!`/"R3Y\*Q3+FI::6)#,"6"$$
M\E24#$>TA!H3\-=-CB?;#!!``.1A2RZ4=SR9?$(ME%`>5YRKW5<4EQJ@J-HG
MNN*+XV$IL::X`/$@<($+Y`%ZZBU+68WYV,1I0[+\6^CC'M>$SC8@H@;9ICKT
MP0;21B3_FJ9E)FI3BX>.7N-[BW3+2[JB$D@=E@";-,0S(J&!X[`V2N)2"2N,
M<M9@B.1?D$`-)*X"/5BPI%L2TMM6RL>(%?YK>:-882;4`T1"U-`S/H[N>9NG
M7@"PET(3Z`!\"=>5^9*EOGT\:63E]P_\O<$Q_D50&3L+!7.LSIL1.D!>%[6`
M!COX#A"VQB$.((L*1\(\&B!R2;;"PT@@H!GJ,>Z$D(>\$U?$%5OY*"\5^>+#
M3@"(51.``Y*A8VQM`@*/AD:?_BR+$B[B(XD`6_K\@&0!%"4#KP*!2RY`+T:\
M5QH:>-6'C,)D(8+@`A/(P`5^HH`.=$`D!KC`:BX0PCY(.8H\_TTKT92%Y?XZ
MICWTH$`#B<#`T**1.P2HZZ$:P-<T/_+:@K@71GAWRF<0X"6YXA-Q2?2A._-I
M`O>:X3=>"8+;]DD9P2Q%,I(Q*2`:+!<O!F8B?O)(=4^@&=T=150<L-S7(H_@
MXHZWT^XECG`;'!/3,[)/>9TK7L,W`AG@W04"P6M4:^8"Q^`U;@EAZD9?@#87
M,,"NU2*`#BR9M7D(-@6U#;]Q`,1UBQI=M+F#`-,M"ATRQ_8F&GL'#9=':8%0
M6@#<`@@I-1TD(%FZ:P+!')%*24K<HBH!/-8IJF200EWWEK<00"%V6U7J2A\[
MU+W^4;9/R2U;SR#2J_8+LW=][!2KN/\#-DX*^%[`%2*/]9/G\'&9W-KDNH"5
M``J=@14S><]^H'G[[@OE^`)$P3N/$88.`/0P#:"F1)_#:D=?001O:+%]0#("
M?)T4P+NB%!_/@N$5(6L#K)KPFV!\H17IFLA;@_+JLSRQ%_PCU)O%\V6&`SJ,
MWM<UFYZ"JG<??&E-#?A.X,.2II"OHWL(7K,>;HK?/5$ZP`H!N%S4'1CZ'80O
M.RK'S_A;0OY9"("7Y<,5+Z*/?MBWH?=K[%_&-,K;R=S_D<J185_'(1FI30![
M\4,#2L/WV9:L:<`K?5P`8,RM^5JXK-P!R)H@N)_A#%N5R9^6T-_G!`#.J"!>
MA`K_Z<%5@0K_7_D;(/F&'\Q@-MQ@;MR7'\2&C7V,=X@7A7Q"453*KW&0*FQ"
M!*#$$4)'I\U3"`Z.S7%$9-5)%5IAG+C@/$%*[;!$I7`+='';;TR%;Z584H@A
M(OD62P"7A#"#3NR$(^@&="%>GDU"Q5""CWEA(DF>)-U+PLD$OE3*2Z20)\Q0
MKH3%GA6B2Q12(NX=8]T4\65A)"))Z>67O#W#563%NHW$AQRBP>#72122'231
MN6"/=/10KSB">N#3)*F%\G"+(A3%]^R)1L!0`&R+*;6B=WR(2M""(/&*\Q0"
MTS3B$SJ?T4"B)")CD$"?I]585\P6,QQ:]0S<)VX$6SR#(Z`$!&B`_TCT6\)Q
MA0TMA9K<0F!1R=<4VM,PQ2,I$BYD&C5$VARLBRFXV1Q,0#PZ$DX1XTU)(60E
M8S]V7@#N`?ET!2:*!<$A6DJ\V"#F"B<%BCR&A)5L8C24PBIZB]AX3;>L(4<@
MQ==LRP$<PTS4Q)Z$"VALRU=<1=X)@R).!4:D)/K@(SQ!H=&L!LN)`LN]!OJ]
MADUR2D$&`$_RI")H14U6!%"*A6D4)4W.9+\094XJ94_ZI"CT)%0"Y5!&I5"F
M!E(:Y546I$XZ)5-"Y5/N9%5.I542I5::Y5*B95>&Y5I6Q$^*Y5MB95P>95-R
M)5=NQC8DQW1P#2#X'K_T2D\ZQR+XI1V`6/^*V`%K_$9H]$9II$8PD%J7I$9K
ML`:G!8=Q5$37B8M;]!A?&8>Y!`+"J`97!(+"B.8^B0JM94`3DDJF-=DVQ.0\
M79X_RN9L&A,E6L/TU<&N64H$K%QV?!QBNF8QPB9M$F=Q^B-NTD'N`8-:7$4'
M\)+AS9HRK-H&]HH&R!J%(!DHE)JLT42J+:`I9$`'?(\`3&>K29$+QJ9QJN=Z
M&A-RUMX=1$`'D$AOLM>/K9Q[E8:O-<DK?5K(6<G'?=P"[AI&B"?(X>?,"2=%
M5,2",FB#.NB#0FB$2JB$HA![6FB&`*>&O(*WM.:4[*-GB%2I!`<J"(*_58.D
M4`HAZ=9CDH>*6-'_Q]E!K<U![LDH(QR"!F#/!;B%`\`*ZTW2\0#HB<`7>:+"
MD$K@@UW`JKD*JP32%3KID\Z)NUWHE&Z*UX2&";$"=)`(+3W,)&V&OW0&<UH%
MR_'&1[$;`.2$4;P2PNP+P]R+B"Q,IV2I+P2,:[RI;P%4ET[)FV(I5Q"2)P1"
ME&0+#1$%1BBBB^:!<D:%)M0HC?(#[9U0CNYHCS99=O(HHPHI(U2H`ACI>YXG
M_Z4GE8HJ7GZ$V.3$W&Q2)F'B'/2-4X((^N0*RTT%452$2^@-+WS*,&3-5%"/
MVAQ6#$7)'Q(%VZP+)!P6QYRJE#@"WZ0$,0A%;I#:ON!.**A"E[AG5I`<_V^J
M1WS.IUK`Z*N$7+_H9P6N5R&@T*7&6JX(J,@Y0(%"*HRV7X(:4ZB.:KT>3O;T
M@D"Z@I1ZS;[B$XEL2Z%%22I`0U.@$C24#_1TV*:=PB'LR_68Q-7\ZB^\&+QD
M6D_VANT`(R.0DDLZX<?0VH>17GP^I^YIZJO\A`-8)_"4:Z_@6GQB!01^)YJ*
MIUN\Z_N\)CS1J[WR+$483"O6D$!*6')FHH2MXB=L$-N@A%`HA2)4`DT0)-X@
MD7D1%]A\""1MA=2.!,=L6E-(@C(4(CAPD@;M#5$LH1WN;`JEK43D[+2H1E8F
M92;0"UW2K5>R951RRECJK5C";=\BI5H"[M_B;?];?B5<4F50EF7<*F[@UNW=
M@N7A0FY-SN59&B536F[B$N[=[BWB\JU<GJ5:PI;_W8HGZ1H.T0:*T@$OC<L=
MMI!-2`PEZ(8J3$IL:-(0]8H9EA(NM9!(B`LJ28DKY)E'KN/N,H4H^=(A?9(F
M\>Y-V,2:#-*EB`3B^9AI2@2D:DC;RLHQ]NSVEL>'GL58:<2%K&V53L0R1@CV
M.HKV<F_/;B&$`*1KL%]VO.^17"LQR:NLP!]QHL:$\F__^J^#V>;Z5DC]JA9R
MW"]-W0&W9`/ZXLD(*@F40C"=H`4`K&`%6_`%8W`&KZ`%.)CY"K!E$#`>)%I6
M,!E[[>$V6&\=:,`.QNC_`>/)AZZM9)7@:$WP#/](`73P_'ZP683P878<`IS*
M:FG`^DW)W47=`(;(-]#$(:#&G1B`E(*@"Z.)^N:7#;/(":Z>%4L&#J<6#.[P
M`5Z#]&#KG:#&1Y5P!^A&DKY7BKU7DA(:>XF:4;0Q5K3>"5^,%)\)%6>##&LQ
M%6"Q^_2Q0W!Q7[7O%V]'#ZNPGW2H;'Q(Z]F>2#2@46`%CV9"RHD?Q\KQC.;@
M^N`QF>2OX@0RYYT%'_?Q(%=5`!MR=B`R'03H(I,:*-":[;&FMPP#DRF#P_80
M%KQ7(4`9`Z.)`^-<*/L/69"R%IOR32WC66G;V&'&1UU(,#ESF<1OU9Q5-*MR
M_R]K@@=V!I()@WPZ,@;.<@8X"3AKW(SRB:_)1).E,+!U<I+`</$)LUW5<#R3
MP3';%/3U2RXL5[_<P;T<H2G8<410PVNY1#(@0P<ILT6TKA\L=`ON089FZ$+;
MX&U"&0@50JYQ:LS>%J?*<KG"G#+`"@9Z3^!YH,'0&JLBF"_G<4"1(#V+V2B[
M=,@`L,S="E>L:M5\A;&&BR?*T"P5Q0N9C^_)D"!-H70%`O:P#472ANSJ!-UX
MHB6X(4C`H>HI;QZ2'NSJ8$A,!6T$H>K5S4S`81#BU@I5M8GLX2K#H[N%BP`$
M7`;]C@%@CTJ(2`^!D)[URC+XB71)&B"DW#6H-)GH\?\5Q?1+\_!@6X$]SU0A
MEP<_-(F2#8)JK$8HQ*+'1"WP9``R))$X^!C4+);3O(TH2L,KBL)DHQ`I^IY8
M\((E*@55!)F?'K6:Z,N_]HLM+:J^C$0M<,MD#Z,?M)X.2X0V8L-?)\DG5S$;
M+$!@)(M4I<Y`_7%`&C;K.)@\[0*%S*/@/$TF),4XFHN?LMRWF1<=?$)(1FM1
MO)EG4$,/0I$.'<]U&0(VALLVXI-`RI`E=`(G%(*-%:PG'$,L1..F)8)V?ZRG
MC:\@`+'S"3>2`#,HQX$'3,$#B)-^;``#$,$4--//-("`9-,4/%5SBPKS&4M4
MB4%1#11B;]2:K1!*X)`1RI#_NVT<1M*25&P2"GU8A]62K8*WQY"(/FW&B03*
M1<*B402M3T!D?LLW/7)+?1M#1AR7PLJ(&>X$.AX6ASE#460D6EO,@1_).[>T
MZ.`(RQ181"U`A'-`!5@`RGC1F(=1&D`!!BC!,$_$3PW`!>B,@\=4/:04B6,4
M]&'%=3@''N29;&CF6"#,GP,,:]#*;,3&FHC&76Z"<]`.:KA+TQ4#;/"&8G:=
M4N0E<.;DG>S"H.QO:!!*;OS":/@E8[)D9U"FE4\+EAM)8%\#G!M0!1`!.\SZ
M0DG``W0._MA1@B1+Y[BY1,`Y!LB'@SM4>PP$9K%,0G!.0B#$CD@`!5#`6\ET
M:J%R_Q'7`:,3)T\/\(`;":L7B:O?)AP0Q,JLT\I4@(1_$;-]@.2TP:U_P+E;
M`!'\>D3`NA3@AQND@9U/SNCD>KNK^0)@@('5LX,I=BJ#L2/:E);''QDDR\BP
MS'_L".:P4[$T4.O\1[+L2`,@@<XIU3P336(@08\LP1+H.\`?4+I;E@0`O,!/
M>U]YL<&7A:K+BK<328(7]W-S..;%`3DA$,D<4%X(@1UY4>L81+1#>[#D\+>+
ME`]Q%XGF5U'PSB9?`T9@HZZ6J-3W`;:_I#'1?)`0]QX_MQ][O&'C^3]Y,!]X
M>KNL0B;DF0EUYL-8A6\DAPG1XY3H65'TRYO^QC07PM9HQ?^]<`O@]\IFV,M,
MA`N[A3JS,EI1O+W;&XQ3<H6(I`@U!#Z^$$QH[C;7MS.2@+M/A?T'Y+QB?7[9
MSU.U"\*Z(`.,KY\JN$2KR@U.:'6_A)`B)*NWR$B4F-NMAD+3>6P>>""%D$+9
M&(-+L)R+E<URM<(D[9D@XOYY3,6IZHWP9('5Z!+<U"KV"']&0(5+RKRC=/V&
M=+ZG&?=1T<<8M$=DB,X"5,`"2'O';YMLH/IFC&39F<+H$WR"'D(Y=BWM90(0
M0!2:@``$<$P,#M"QZ`0=`$W$P1@`"+`@P4&A,((,`')YVH0((%Q`@.T6",B9
M-C<<KD/.5X"0:"P#P8I#4`#HN//_`JN+:S(*:P(@"J"LM+S$S-3<Y.SLO'!K
M$ATE+34]14U571TE4(5D/07XH*VEQ;"@71CX&%CH_:5-N%W8I67@'1C88)#X
M0+:M/5,E``.!H(200HB`0)A:.XH>CW;^D&`@5U^/+HA]AX^7+R5PG8\@^(X0
M<P"$TQ`#0`$(!4_:1!@8R6`H`0BN&>"C98J`"0@0P#I%8`(7*XP817`X!L[&
MBV@"6!%U9<+`@H`<['.010T3#0I<::AXD9%-$`#WB0)P0>A0HD6-'D6:5.E2
MID)#S8,:%>JT4QCGS1K7H$`"!@LL5'A08("%`1B"#?N`04*!"A:\@BT@@5F"
MMP_&47W%_\41(RP`##@4QR[:L`<-/A1[ML`PKV<#T@FVY4[J9,KPZD']I@"!
M`T,$Q1P@2&>-(0A"/G,69<#+YR;5_'H^8$!!;((!%`BQAXIG-06J"?K6+-`!
M<"E96ALRY'=@;-*F5<>,D,5F\I@`,M@6`@!T<.O<*G\''U[\>%%/JU+&&LV"
MA/4,+#P8(';`@P2,$Q00RX`"?;&TQ`Z[C[&[WGED+SBH&*.-]"#[(`&R/J@`
MOPH&2*`!#,9RCT(&:Y&,/`^C.@"T#ZT:I9#</@0O`@<@8"*2>+0H:*-12HOI
M%!K].A%%'7?D42H#\IILP6,N+&L7!@(DS+Y:**C@2`DJ^``_#?\3>#+*`6,Q
M`IL`M`'`NVN.0$"/#6GQ0`(,TKHEO@;NJU""!S@8,\H>YT3EL@]%/`6!'.F$
M*H`3+8('@0#T!&R4$%,Y=$\^%V64QQ]3(3$>(7N!,DK]V)*@`0HVI8`6NW1Y
MP,T%*"B@@4SMLHM4PZ+!*Y5'#7AT2X>J$,2;2=D9IH#]BH&O@`7LFM"N#>+L
ML%%2#E`F6665,2\>2HR%-EIIIZ4V6D5'B12>6^/DEIU6O]M6G4\?6``_!DP]
M![\/'B!50,B*-199QR!C5AX[Y3D@NM>B2@@$/47I=Y7M3L$3,P)\H\S+Z:IE
MN.$/OQT%D3@FIKABBR>>H%N-&818%@W_+KXX@XU'7@?>10.8EUME"EWE7F>G
MJ>>I4!(-440\(3%@'P)08@4!#0@08.?6W"!`@T(/<`6T`RS:&>DF!DTM.@=D
M;H4`JO.A%<\^:ES::H="M.>RF*GPDV6'SW:XV5*R?2=<DC7NV)0Z6''[;6Y-
MGA/9MQL8()9#Y]DB$@4XNRB`C3)P@#,#.F`1`1GU:B+GF!:/Q6>@QY@:"9N,
M;J*WP3?28+@`$,=G@@#PB3RZP373XG'A6#=\2P=\PO:.(@P'@70"^D#B=8UF
M5QMMX:5]%!6V8ZF[ED_7S4H"<\99WEMM@Y?;;NOE7!2!E.T>X-JJ^Y1#03A*
M.QVE.PA0L7A(_P9Q9)2^S`#`G@*Q0$"V`IN0<0)M5->KC96*[\OXL!$!$3&"
M?`2,#C["@3\9240O_M""X3SBAKD-SX+$`U)KJ"`B6H'`3B=*GC!J(8$!5(`"
M6BF&!#C@&`HPADEH$4S<2E%!580079X:1Z:>9XL;"@9O.B+`JJYWF`:HXEF`
MFX8!L6$`H($`)'I92:'6!X`G`@1+>L%"!`X$"9(@D#,#\0?2;O,T,@@P`$Q4
M"!?(Q\0OO`1/I=$#%[90H#9$4"1<6`(4+KA'8U$O)4#I@`=59)-![BY^WAA%
M"!M4B_LP"0,,N-!6/F`!_6B%;S"47MO\2(H0QF>$)3RAKY2Q0OWP@O\!NBH`
M@WYXIV`,\1A]JY/WC!B^.S;$$!LQ@A<.(8:`T=(*BLB`9U9A.CYD)V@_BYP"
M"`B"#A1B#?X0R&R:T!$X%`(`KJOF+:^AF4!.LX%6F&/_SDC%F&13$IOD8SH]
M)$-89,D-^GNG(0_0(J!L"(8!\F1]),F!`H0*+9A<APPYB<YZTBN5PM!5!1Z)
M@?],LI*45->[Z-2`Q]BB4Q_@F\JB`4M3N,Q#JO&.`0BJ3C[1YHDD1:F.T-E.
M*,CA0/7`1@45>4_YI%*?PZ`D"5NX)HY-#WD,\B1"E6'3AO+3G[TXJ`_S5E%;
M>.`788F,QCAZK()Y*$S>.%A*&38&66K5JU'_62FV0#`<$$R`K#(ZP!:2N"'\
MB(6$Q>"%!'8QH5.:PWD[#*A/Z0;4I.*3J!K**89(I<H>$:"5ZNE46'ZE*[JD
MDJCJ&NHXSM71KG[5LI?%K(Z*=QZ`H4$[U_BL&`0A4U>23*")'&E@!%,N_"S@
MK<9X*UWC\@P*D)"P.T*`$,=1@*]$J`#I@*ICK039H$9C`7LZHKW(\!?61.%'
M9G"5/!S@BOI9#3Q^6M3N$)E9[J(HK$$J[<A."Y34*C*\N^61NW9+@3/%Q3%0
MM4M[H_3;%B9UH_2H["FV<`!<_B0"]\N@*4B$D@ET#3PT9,7Q!DJ*:E3A<=V%
M<'C8B9[SPDVOJS!O_X4YM"/#LL,7SH@K!1A0`<6PI1>]."6)U6N+J7HPOZ8(
MG$T$X%\`DZ((`M&+'D`B!P*.3E'7G$)?$/(C.H#DBU(8\A$4,`&\*&C(TIP`
M^ORB2Y%F@`!T6$EOI"Q2.8`1+YJ9IDYVI\R28.'&`8MPFF$<X*E`KS^+M"=&
M'\!4<BB#51>NH8;OMJ,5Z[D6#6!9<E^F$`$L(7%&H,.^RC,%[>0R=GR`'#TN
MX(H`/M`)763$:FJ$VDQK`P)/U%]!0&,$@'S$(::;B![_N#L"&J$:8X7(:-5:
M53776A!LODHY(J2D"$')`NI:2V&$T0"[G/*WQ)XM?G)Q)EN,-XU[5>61Y/],
MYY*Q54<'H+:?:S%5C[XC<#LF"!@C;6-&6^$B+WE".$U!S-$R0IR)KJ441CM0
M=T<':('P0H'\88<RA!/!/*E-+H.<!EF7V]8'CQRNY2&D7/`6/US)!26'%1=4
M,88#&X`2N7XUGP95:>*'=;:J\PR97S6(V,\P%[&?9&)2=:H">%7'*K_3YS_7
MW+@;.BR+#47K6)QN2^+^@EXFT:P`$`&7OU,"I(VVV6NL00^5IB,65E1&*)ZN
MR6;62V=6E`3.X,YH^Q;`UE'=/Z8#[8Q_P%\2T/>2-A@=X0C_KE2$E"O[:"5*
M/$5EE!@S++HP.Y(-:N$BWTR+D",8%2&T[<4SSJO_^;AG7;M8P+`F>5L/=7@=
M"8!2!3#I#/NRH_.V>$JW*T<)F[DX"H*H!+EGYL&E'>I?K;=Q>?24C].#AO:)
M^MI8SUAV0IW^7QX,A76C0*O;`]]?2?,7K06%-3Q!31!ZPOK;#SYA\-IBSF\>
MQH7.1/<+;4!)%O+MA&SZ%@^LBZF%+Z\J><'W!?@]/A3"CX4H('F`QAQ%-.<0
MJGX;__J$)97[:0"M*`RMV+]UX"C1NS:F6Q0R6*!TH@WI.[BXBPHA&0"Y>HQ5
M80S#6(`1FX]@6!6*0HRNP*A=L)#):S8\2X40J@`H&0;PDQ!/(HL*P8`*V(`-
MC)Z2N3\?TC\FF8]4LHM4_RHAL8"2?CJ,P5('CA(T"%3")50G"6RS<F"KB&(0
M!GB`!Y@0W?H`]/LIR*!"C*(%$/P%$42&="B&%,*_R,A!SVN+".'!"!DN2Y*/
M*+&+4?D\T&N-%Z,'P/B]$O$>VFL9P`B%V3,;5>"@/\D-`T.4'N&YTV/"-*,^
MN=.V#=%":(.,)M&8BY(H#\$VP7"&84`'<YD09T"'4#DAP\@4<X$YG8N"1<2P
MX%,;JWG`!6O%SF&"`L.N43"`8.*LP"&CE!`^XXD'-%.%?H&$6%2P1DPI)\RU
M2(2,2<0P9LQ$\@@`:/2P.YR*F8$5@=`#[1B#AB`#T!`"TYDF@:@?@0#')0M$
M#?_H@\_0ER:(`!7QER^X&3(JA-F@'X'0`.80`HOX@I_(.MP(L@"(B348R"NS
MNMN8C6_0#BHSR/:)!&\<`F2,,`4DA6,<.6I4!V>\2(Q$+P\Y0Y)9C'.A%VN\
MBE#HBQ\IM3+ZQK*"%2<*!2:H#B8HM!_1HM30Q;9S`O3)%X)PA<=)--7IR2QR
MA>O(`D&AHJ'\HX;`@HW`AWU8`J/Q$T0[`IG\+-,1-TB8(M3118GD+F5<.([,
M2!0\/+`D!YF;C(\<&5_H!;2$I234)#)RMW[+`C)@,@H*!8'0%SBH@PH2@-YP
M`G_X-$DHB4@+`_:1(^,XS(AP2$O#@OTY,Y&*@'R,.G[_NZ9PPLI%NP.N["ZO
ME!2RO!+D23_/1$./W)!?(XLZ/+%M@Y#4K$;3*TFX/!"YU(Y"V`8M:)]^XX@N
ML<VIY(+=68@P@!4609\_&BWAU*(^\),.8)_&')2MG)_X49&0LHW-(#BPF\V"
M2+7+)"-L((!`8D7-A(=?.A9AM`**6$18<9Q8PS"%ZTS1E`:QE`7WW##25"7_
M`,+?6H`(.9*A@CQ?8,MI^LY4>!^KP:X?J81O"`A*0P)[P`+?=`4#75!_"8=Y
M\A,#G2<J8`(#V"[1,CX-A3XQ@``F.B/@.QB"2[@?L:YPV!T4?8VI,=`'35#K
M^I&IB9SE0E`-_1&*!,]@S("!_[@J/<G1^'D:(TB"'P510<$"HO0@PRL/]M06
M^20\^*P>*#5+J4!+6C!-NR,QL1`Q=7DDM=2%D73-'34%MM-1,M6JZP@D)J.B
M(O`"")"1HLLB#>T&*K)3O_B9"T``Q+&R4SC3Q9Q`*,U"*9VA93'40T741%74
M9;&`5``:D(%4BLF%^O2/7UD+.P,V*=P06$)`-/74[G*`#@B*X<@`LW+3B7D:
MT:@?`5#'W2PC(P"%X^%,;8&?6K756\757*U50F4P3_#57_4$`0TY4KA2*ZE4
M"]@/3*TO75&9ITFM3X56E$((VX@./2`F.RU,K(33:+K3)]!3Y>S3-8,49&12
MK^)%>?^81OF$)4"!"F^(E!^Q2$!-C9M!&%*HUUAX"7L=MZK8CN&HJHL8Q&.)
MCHJ`APV-5E:``%<@`&\H#2`-DQ5IC>+9G<1I.M3+JBF0`E9\Q"4L5ZTZUWBP
M/-&$I;^1!P0-NW#P4!^;B5+P4!GE`H@-DQ=]6"W(A]+P(-')AY:,67KXB%:X
MCI4=*X/U(!@1A(.!6#%0`S+:DY\X@(0=CIUU60UE@MTYV"9TTNE[UCWZV'@H
M5@UC`)L)4%2@V"Z0`N/4BPR@S1EQ@&^PS!"Y)D$IIXKHAS;PAA7!G3:P1SB%
M6U*HB-E`,$2C3?3T1U&``+3]RWE:@XH`""]PG&/!V)/`'7S_L-M40UML**NJ
M3:<_W==Y^+6V\MS/!=W0%=W1#=U&?4M62!!=5=W555W3U:]A)=9M6Q/#0,UM
MPX_R*TO/$[%>$(5.K:$#L8/VF4Q1R)>PLTQ'2(("JR,#X8RZ9+31(8.PFX`"
M<Y\@HSJQ@J`Y*(4)Z(*_'*TKLP[?%#EY2RL'LIWLG+=XQ=QHF=6V$52-3$%!
ME;FMA8=TM9('D*]R*:%S6$WE82%G*!?:#6`(*94/8!+ZXEUG;==JXHV>M#0:
M*ALBF()@:HAJ0%&7VHA[>X)R>EZ2(*LF$H60*J>*%*<G8KJ8\!FVY8//\@*R
M.JF4<(C;F8(,QL[<Z0E^<*+UU=JK_]U"^83?L:1283U+6N@4L5"75"F,"ED>
M3SJV*FDX7T.34`G`__O:$`Y85GBUY.!':<*'@;A7:V*"V]@'+=:EV'!;@5`-
M/<@9VE`-*9B-,B8%SIB">W4"+UX:X2B1GQ@.U5@.V>@L/![//M"&'U$$AQ#C
MW%E'+]'AX=G8)_1A7DTD^15B*_6/^]T^*5F/4#D&M.C<^=@/.?QDQSHHQYHJ
MDEVX108/G,%#5&:4KE+?^(32'X9E^9Q?V&6P7RCB9X"3EFN0(WD,"^A<WW(/
M]HH29)4O7ZG"_S,/4XX'=F5EJ<"357YF/M'<5Y[21S[=9PQB5*!?KC7@;*LP
MK6`P:9[F<O]6PFJFL%B&Y(*BY4F6BMP226:L@*IRR\K+6E78K%]$!:=AO6D*
M&US\CC/]4Z;37'.6EO;M8?>4Y6MVSUJNC$V$QA;SERL6#P?ZCH+90UG(F9/H
M!A;!#>8B7A(FD)">H2?8YV,1:8.FED9>1FP&S80638>NC*ZU&T`K!69^AWSQ
M'$,J!!X3D=&!"!PC`S`[@N,D1Q[C'^1@@R$3LM[@!C`(!;G]M%/SM"VI2"KJ
M#1]K1SK8,BKS,4<XLY282P+:,AA&B(G`ZBHC9Y6N/!ZFQ''87PAQEPTTANM9
MZ!DR0-RE`("RB_H;&9E.&"RLL.,R!9R.!5`;CG<\M'D#ZXEX-;+_RLF!&`ZE
MG(@J&)TW.$P#"N-0,(`)0+L<>UKS<*D'RB,9<R*J%C7"5#?OS:)32XG2UF!+
M8^MI0>?J*TO)VX!40HSU>#\R-"4C>8;%.(R<.\%LWLB-PKA)&H9>&P`.B#QU
MX>7.)>`*T)0NM#]NMN4\$>S2JF)3<.9XR)]P"SI(:VPY"I^[I(3SAK36*3K,
ME@@#LLOV<1Q0PU`%$>LMNM,F"A^,M0:L7.WE'81`<`3+;31WL^;9)H_:AL28
MLX``_#4V;`L2JH](:@L**9*O2*A'RBOCCM\C["?]@#CS&X:)FY#(^P`2SX4Y
MLP"ZP$'L#H\@TC#%X.9[%@7%&0@EZ&PL_YJ&T$DU+:I)*/#Q=)N(,3"`GQGM
M]X8#])'3M-.#?+'9(W"":3CRGO""(B@)L>LZT`$,\P6*6),Z%GF<H#$K7'(W
MSD%P:$'HMVX'L#A@ABH`AHHLKM@/?0*\7QL6#DC%6N#>2*V8ZX!I%NLGN:J/
M^_`5`(D2A9H_P=N*UE(ASW/G[\BM\R+L6(H*H?$@IO&]0[R,G\X-/\0NT'B]
M**B'G;D]011U2@"X56R-:'X:0RF^I1&4W#.^65^:,$.^#0)UA15M?YF95Z?H
M,^<1EO[*F(L/(Z:D$:LIP&L2.J<2*,D4#&"VL"2/<(D/A5JD&&2`N8@2,Z'!
M!:"[&&P_-[SNU_\=#^T!YXWI'D(,6Y0"8X\M:&"'%E=.9W+0(1VBPL(P(70A
MEU"Q0F?X02N<LQ/:\/$(EZX02<,80XP22;HN0PUD@#%$#/P#;/$X@.WNEEU@
M!<.&]XV?2+?69I<6CPS3LXD7#^TA[C%!AA?[;HYG>0A3\$!5YVF79!='$0*P
MLSCAFW4O#QKWFW=O^9\?CS3_>(5>)RY<E7CF%HL?37+G$90!4W)`A@%P/LM8
M:\]XV'5$R&_H@A\9B.A0R#<:G'H,D>0@QZS/C+'WBX05)J"'=V%O3V%(ATP1
MC&(W"W$1C.C)[J$_P@L`+H#RZQR*1AC+>ZBPFD,]"6C6^5*P"5AQRG[_,$HS
M2[52`PT9(:LO",I]H.R&X`:D*1PP6I'58'MX%_J-Y(`?9*&X,F#^_;,S*9=?
M>+]>WI2NB!##,"%,&OP.]S"U6!>N"`L2<FY#YR=*,O2_7WK!SRR-%YA/>TP^
M@'Q+"Q\9F9OSU?$[8#LNUY_$#WT=?GE';A`C%JP&H"2^7QY?1A-*ZA0`$3$3
M*HL&&0`1P]THE?FY[R?7:G8T&7[!FQ(X<W2:ORP@0"!`Q*+QB%0`$!&0(2``
M!0#3@P+1`44!!X2".&5"'(3(5"L%"`X!R`0!/4<CS0/RCL_K]_R^_P\8*#A(
M6&CX9[`7=0CPX?B1\(%1,,!1\"!!(5%`0?%H_S'P,9!08-'P\,`!.?`P.5``
M20GY^`%PF-=(J^OX^D#!D"!1(3D;:?Q!>1RYJUN@=W8;?1L04$@&0@"0F$@0
M@&!K$.Y$9`!`4!3F!('0/=XM()X=\%2=V#8NG:^_S]_O_P_HG)Y%AG(YBM3`
MPP`+#"0,:*!J0P-'%6!]8&#APP-6#%0EP,"``B58"1H4Z$C+5C^#S'@E@\3@
M00$)'S8LL%#`([*%.6>U?.0L#S2`1(L0$%CT%D$\988D?0HUJM2I@53F64J(
M)<T/$A8PF.F(YE:N!<HN,!E*@L,!70LL<)M65*>4_EC^O(LW+ZV@>(92U7?`
MSM_!A`L;/HP8C*);=O_U.G[\R.J^QI`KX^5[QV_B08$W>_X,.K3H(XGT=!"`
M.K7JU:Q33[`,6^^$UK1KT\X0._?/`K8U2![-YRCPX<2+&\]7^BICW<QU_<Y'
MF=G8L8\6/&Q)??>SY\>-4.L./KQX\$CQ8!T47=<K1PVR<SW%3%9>[M'2ZUK&
ME8'U#PWT5[#)'P/L+8#?79@AH=EXPHW'8(,.'D9?$01]`\(W2UC(CC8@..`4
M$?8]LAY_$OA"X@*9<+!`1<-L@D$H\_WQ!0@0<+$A``Z``(`MG7WX"'X)C%(!
M!Q7\^(!-#U3P0(J=%*B=4!%VM^"#4DY)I3_5#$1$-E$H<)0"7!*@!(X().?_
MH5XAOI+`5Q6\D@Q&&L$'BEY/&@%`!ALF\D83$3A`S3TX.N;C>L:@65,I%"S#
M9$L''I&@>)U5"6FDD@9"YAU+1;$(:D0(D(T!ZPA69EYG%A`))6R.,DI9%>TD
MYQ];5"/`&53D2$8U/![4HZ"KD$I,`Z=XE6A\VTD9I1'MC%,IC@I$8$Z,>1Q0
MGJ<=(F&`%2`H<$"R1["3F!(Y@GGCALX28<>XDYY+B+9&7`K"!$1,X&Z[60:@
M@`/)W;K0``-45*J^90VP`4:C,-#B!B[B->>Z,E8SP0&VT.C$K+=*\N\#[6GT
MYB8/H<+`5Y?HM:AW"1?W'1(J!9!%M@BJM(9`"(#J_T0&5UX;6!/D$F"'-P0@
M@"FW.%?838<&-/$S"(&=`ZU@+QN1-!%+LR-8U!4J[8W1H%YJ<P11/*T!`2W/
M"W351@MA1['H2CJS>0H[0"O;-GIXK;U%W,J`O@,L<-8'7NGG57]U"RB*5ZWZ
M$449#GPQ00#QKB-Q<XXC,^R#9A/1A!>+Q"LR$1DX$$$W>XY+11%V'&"S%C/&
M.@$5F$YQN`$*Q('YT*U_L7GG\-@8P.<2>LKGYU`(-@8"B7_.A.(@;"[ANA$(
MH77NAR/0=>W=V/@ZZNUR3D#B`DQ[=J1S+B78@@L*,36=CS<W,KE.@SJS0+:>
MSUS(Z*0_W.1G+)_IRIOBJ/\X-4N%;I1E)4\.JM/"%.*5.%L0Y(#O0D,!#^B_
MY&DA<7&PBN$,0,$HL"T+E\J1`N=1+0%D$`VO&I,"8J5`TK5A'1T(5_<FE39+
M+0=^N:%?56B8&_F!P8:WZ(;=?JBO`,`L$(_*'+,R@"?].;!_?O+0S%@V0`46
M$(7+:Y<<YE=%=[TJ"A!LXM8B0$$(^&4"5PAC.4BHL.1Y:8+4@``:J6`&`Z;0
M#'Q2'`]?V)T8(N$\@LA%QUPDN+M81U^`V\5$[M*`!42F+HYHR$9$A)>WE&(8
MS'@`7AQ"21VF(2D$T)<B[U*W`0RQ#Y,#0>D64;KY[8\*5@C3W.IQ`,YI:'\$
MA(+_'$FG@"<H4'1KB$`NE\A%+GC)*@+P4F"&Z1?7&0V9S(I5![^UI2^L89A6
M?!4$E'`[!P*@8=MK&!XEI2X)%L01&;G`,.3SDT%RH)#WP4L"%N")6C`2&03"
M@"A@H1:N?*`"UOGD1=(4DE"\A2:1>$5:*#`,DVSD`0+29*,`<[?*U$V/SZ#H
M$HS`)TGQD5H4_:9'D])1<1:B$0WP1`(80HE-,-2>'OA`1AYQ)&2412.E@$1%
M0)$JAN)$%2^]HQ]RD9$?C80"#^E$`S:`)%I@8"(,H8!)WI0FDWY@G1L)ZK[.
M&;E^'&``[+3,`$)ZA%(N#1V3"J=1S/K1M*YD,8SX`%$A_W&*9`Q`$Q8KB25Y
M8<D%M,@4;/%(`W@BJ+=N`!D3\6D?<G$,3)"J+!93Z5W)X@A+8(("#_A1)%"A
MD[+`PE2;S:H^$,#5QPV@/$PAK5I/BUK#@!4-;95%J5KTHS55`!08H"0P!-0`
M4#ADJ<:P0`4J(BAAS$(6AN4#4&?!@`V4Q5>>,)@O'*'73S1D%)(8Q2E0TB][
MMH@MD',2/PAP2.C"0A5N@>Y^\K*`41ZAB-]=+:-,"P'3DL,)Q]*#6;.1([3:
MERCZ36T>V3I.[BZ#`VQIA5<B`C@+3,(M,@$)!@XU"LI"F"0Q*4!+>SI/AFQ%
M7V[]A3XC>L]_?84F<VV/6-9"8O^\S60!2>IN7XK+%']^(K<T7NZ0X&DQA%8D
M.PQH@!Y*.8U9`0*`JL2#';9WCHVJS[N`.(]ZI8$I_U()K4K^0RX>BT-0WA7&
M>O!C/+/\DZ\XPJ%<#JN,8?H+RK;G1^NIR,?F^E):U.U93S:N+U.WO!Q=00U0
M`,`7V!8!-@C`STY8EL-BJ`8P$3I'6I1C`#(``3>^X0A1R```JI@YI_E2``YP
MUQ@&'>A'DW9[WJ+6-KV6!BB4PPQZ_H8O#4``F7531BZ4<GA66^6?LJ>K8-9%
M?QQ19CQ,K-=`\>PA"'#F1XS(I<O&:0':(TF-Q(09/2YM5FZT!67::PI7#$R.
MKN@N)A#_>8<O$_47`H!J%*(1<\E[%:,&384Q7$MQPF-MHRE]@%CIT5WO2/7#
MT/WG<L!JW?6V]7B^-T-B.R;8=QBVPLDL#62G,Q1W*ZDG^4G4->U3N-16+Y"-
M._`<P9L:0H["!#Q5<GFU:]RI3IP&SK"SU>TR`N*@]!(9914Q\B\<3;@<:Q5&
M``ATS>;L"*:L_/?MT$4Y"CPW^'APG7"%OV@E4G<,Q*-Q,*DOP+0EZV/(<P=V
ML.\R5LNZ8B[KQ?(IE,,`71L>"<^@`3AH0(;N]HX9A%B&`+P<>D>>T8WB3NGL
MY8ZT]>+2GIAU=%.*?>"<VIH&ZNQTX$"]K56?.C\<3NRK'R+K_U4?`!(^OH>=
M&0T;0T`W&+AE!SA(`?4W(_VVD':4<U1M=*AGWAU&YWHCP($:T*(&EU3.*8%T
M8;T5$MMZW<<.GSG%]*(O6]'8'?GC4#GJE6\)PTU6_<L8>Q`2STL\ORP!7\$F
MANQ]D#D.X86W/8$(YOK+^J,/GLF/,_L_N?X1,-]KS1>"\S]AZ&]?\15V`Q?[
MI!<-,"V@!W\)J(#[A2641W_,8'_F\X#"PF2%<`"\UA+M84F_]2\2X%NH<#%F
M8BSR%0V01Q0F^`=#A(*`L8`/(G\C-8$0.$\QN!?;%PC\=Q>H`$^G(A+^@F5X
MX7GHX%Z$D&N"4"U\\`7]U0=8H82!T/]^^\,T3=B"B/&"64&#SC&#5^ABF0%C
M"!!>>D%4,9$)X6<2)W$3D-$^),@'1_@%S*(C(B<C;Z,`\:5[?M8%QF1*.5(C
M;C1H5A`.Y5(C5)`!8"(NX&"'VV*'5J`A#J,&1_`%?H<$?F<`9(`M2I`(C#@$
MU\0G@\@V;O0-"C!W=+(%]3*%PX%PAU`.'J2*J\B*K>B*K]B*4@@(J0B+M6B+
MMY@C%F"#?Q``--1BCQ&$5I,5`S=W!>0U]X`_W,,EGW@.[E*,>@<'\D`O_*,%
M3"`CZ6:-D_@V6`$M/#.-489JZY([^(`.;H0_$]`-7V!X[%`OB2!-V8@]QX-S
M<H-II1@:56C_CZ#Q4'Z`@]D7C`B("XS'/YER:9>6;WLD05%&!;GS>`OY;W+4
M;F<P!4IW!+*D;E'V<_N#0=M#)\P2:">T28*H9T3F3'YF`/DC,J'#<OF8&-/'
MDJ*QCWW0C]5!25\&(J*2%U<"D'@P!K;T*LOC`+'B1E=P'JP$`&-0!DMT!0XP
M(R1':U!0;_B#!F^`+11I!&]006@`E%C!*;:`+=XQE`>0.GSB+NZR/`<@1DO0
M<]G8!NB6!2)C!07WDIZ!CW.Y![O7)VIX"#&Y!Q<(A(.U`"UU%A@1@+S0,7DC
M"L@@*F`PA'>``&*T#5*P,V-@#Z&C+9Y"#NLP#NC6*48#:]7PF/.`_PTT$E_<
M$#JF5RGR0`_C\)AR8P25J4?<=@UBQ"SG\)B:F0[QU9GJ4"D4,@5Z:9=449?!
MZ1UV\X5Z8S?&%V2%T(M`F&,;T0FS!0P5T`FLP`K/ME`6<1=!2#[$N0=\Z9T.
M<HKA*3H<YAA_U9C?F0&VP9YQ]A/Z@@J:-1**.1,4@%/^(E.+*8SDR9\?-9QS
MN548:";IB0?<0@@S"2*LL`DW\0M)LED68)\_)!(BH9_EUY\7>BXNZ9V=)*"0
M,5I_@:#5%X0[^4)'6&32X(Z$H#(86AC_:8^)=#[6014A6GE!V'5&J)G2PIMA
M0`!L,P^>&`]LDWH0D`AC$DXZBJ1$&@8!(/^D\F:DV"`WTH*:2]`HC\D-0EHA
M0;H-2Q!KHFFE4$HC\G`'W="C$,.B4N&B4QA:-#0`W%,4-+H+F_`+<"J"%>*F
M?B!&I(.43=`!7K`.V@,"C\>4V-*6C;8\1$JH;A2)0A0!>PH"?3J'PI,C")`!
M7F`%;"!&GL:H"^D-"70'G<.4QK,\B6H\U%!O40:JF8I&=(ASQE.$9WIY`/:2
MH-5K!A@5=+H7%T&A>3.8%I!L0$@N*RA#4*B0L')%4V!I?#9V19"L?$00^>-N
M@_9US7I%3M1*ZH:0$"F2RKI,(+ETFW)%VU2/\U.ML`H5::J`N!H;MOH4ZNH(
M&Z$6;B$2N84DOEK_&4%HH7[0.8_Y>XVF=,>Z317")\M*#>%6:T6PK]?4C#<G
MK4MDL/<SF53P!M[('?SV.FU8;P@PL.TB!-]JL5>TI2M3KN::%!K*DNX:&\%8
M%,T)&1LQ$<_F@>LQ4_>:)<"9!Y\H!'B8A.6B,E^0+0Z#+3UK-'H(M.J%LU[P
ME3M[+6SH!-X6M$7J9V/"!G/8CK?G)7`P:#=2M"I#+PI+!3Y[M4)[.!>U7M62
MHB3[%"9KCSAX2(GTJ["AL@#AEY"AG06`))JP66_EH8SIG>")M@R"KI'7?;H`
M"@V``>?5'`P@K+>`LC2DN$YSI_EHH'_K/;):BOU(,"#!)A:@6)P;?B"8_U,8
MT1.&%+G[T+CP$XSY2KFK6S^6VX((^@`9<2JQ$`HGM2:@0!)O%2RB`%*ZT&/0
MA4B>M`L=DT[LE+J+"P@K2AKG)Z;%EYFER[JKJ[8+Z(7OB0K^XEJNM5T.01+"
MM;M;5Q35RPL#4%N*^1-_U2*[8)[QH9V/6[.%,%9P,`30@J6CQS\\P[&=TV<;
M`@'6$KW_^YJNFZYA!E`)X&:UZUJYY5N"4F$MU1)QZP\'XPEE\14LAA,-D":/
MM1ZH0)W_P@I'4A8,(1,S`3@J>Z.`X#Q78`9:I(UOP)3SI04.(P5N=`8(!,`W
M+`4"G("GFQ?M03#G"[T1]TF;%1+RV0DX85OVQ/\3E!"A^Z)9.Q$*IN((:4.B
M2#!"&X0&:N<Z2"&6NK1)U?JJ.(RAX]F"+)ME"WH7!+I_CC#!^]0B"`4,$`$X
M!KPQ_.1;H"`22$+$OF"WBA2WJLL'9D2P:EDZI&.;33")F]2O8OR_P!G&_L7#
MHI44U=L5GS01,*I(_F0W>#,1>+,W_8$W>G,1*G81*HB\3,-,?!9,2UL$J:.'
MUV0S9R`\<?2$C'RFT[O#D+$)SR8*E+0F;%)>YQG$TN`BQYEE$P'!W>D/5V#+
MS;P'N!Q]@ZL7RS`2@U4HZ(2&[5I][.H=:HS"WNS,T1NX_F7&T_P)I>`K.,$)
MZ^L8$.P/XJMPX/MY-AO_SO4\&3H<>>Z*'Y-PMVY&5.[JSOX@S5E6;;=WRO:,
MT(0PSJFES[R@,?_R+W`;%0,-/P5MT`F-T?\`S?E<&2.,3R9F8B.LK@']#^"5
M96>A!\J<T2N-HGN0K+@(TS$MTS--TZ[H'A-(TO]`J_#3`,!YPBP-U(0`G"_7
M)T5MU$>-U$FMU$O-U$WMU$]]U)2DA3D-$"#&''4SS%4<U%MM,OB<TAX5R<4+
MHW5*%9WTMGI1-\(*R%S-UGWANDB[!)8XD3+R470Z(I<P;=C!R7=SUK1`U471
M2<8<2:*4O`?=UD$]O0YP9(D\`8Q37WA$I[)`G04E"YFP)AQ`$W6#N-MY&'!`
M_TC;J2_TO"W#?-B'#<U^IG2A&6^D/27EO!M$!0I1-0M4A<']\5>(":R;P09`
ME)R&\-.E#=Q&\=:)XP0W$B_HM@2*^D(4'1]$I4B7E0K#15UMZQC@'!Y:'=PL
M3<;DX,KI5QIN]&U@#3('8U?8M1.[R]G++=K9#=0+S=J2`J=6?6+ZDF(4T-?,
M\-=3LM;LS=4;'7FN37_6?=WKS=\9[=\<'8/<?#:_7>!L[<CY&-:ZD=]3@MT-
M;L_;3;V"O1<>@PD^@3'49I.[(,_J;>'!O=!2AJ`L5E)A<<UO(A,2\!6/](OX
M[5'[7>(9?>(H_A/<FW6#)5>65!)G45`WS1_O32P$?O_CX7S@T?RV*;45)''>
M@K(0$D#9'>>?`I[D.)SC.LX,OX41%;!L_2)4D+`)5,X`OT7C'U7A6<[(&'ZY
MU'97(-;)/:8?_!$@_<%0ZJM6:\[F6N[5"XB#%="A8>8>"OY--M[GX;SE!A?A
M0'Q:?)[H_[OD@#[H*6ODD(+HD6[+B^YT!Z#AL"&CJ07IFKZZ;CZK:YH;=8/D
MDC+JI/ZWG!Y]`0H;:6UP#.[JS@SK\+=5N*HOAGTNK7[KYCKI<QD`/Z0>O:WK
MOA[L:)OK]FC4I0CLR\ZBIB[MGQ'MU=Z?S8[M((7EVWZAVN[M`''MX4Z<YH`S
M9'KNZ!8KYTZFT-+NO?<R\'[_--X0&-%8[^AV[T?1>_J.[OO>[D>![P#/[O0N
M[P5O[UV`[PB/,_[.\/T^\`_O[@0?-/,>[^]^\!?/F0V?\1`O\!&_\!-?\""/
M\0L?C>G.[QO/F0'_[XI-[K8<>QI_C!S_[B!/\P0_\OEN\CGO[RK/\P-?\1)O
M\PE_\S"O\S+/\S^/]/-.\D+/]"?O].?N\5'?\2$/]/$^]"5/]#LO\RT/U(_,
M]5_/]5X/]F/?YT]`#U1P]G'`;>'PFVQO#FX/0JH):V@_]]2@2W;/;?.0]VA/
M<GJ_]KI$`&X?^(`?#G)O^'2?]W>O]P[I]WR_]B0W^&U/^'=?^'0O]XF/^0MI
M]GV?__:=/_F2__>''_>:G_EXS_B=S_F$3_8`#.ZK?PNRZ/K>.>RQK]&T+[U_
M;OOBGOM_^^"'P`90#?S!+T0E'H&['WG4_@<;P=O+S_S-[_S-_P`EWNW&OX#:
MCG]@5OQB#/O4[^RX;UQ:N$@6OOW</X6SCPO@#VPEONKD/X76C_[R9.'9S_ZH
MA?RZAO[R?\/3/_].Y_Y`\!$.B47C$9DD`D!-YQ,:E4ZI5>L5F]5NN5Q#%QP6
MC\EE\QF=5J_%`:N@#%#.Z?4E&Y_7[Z%?_A\P4'"0L'#+CPJ.3,ZNT?'.,%)2
MSVW2\A(S4W.O,C$N::!"J&*`:(%AH?0QB6G3]56J%7:6MO_6=E!V2G&,\:A@
M0VBCX&-AX<-"8J!@@(&X%)7Y@Z'AH[28]39[LE.[V_L;'(I;:E>LUZC`HJ'!
MHJ"B@*(">2!A`$-9GMY^P>(]'J,9DESA"*H95Q!A0H6$#D(I%^9<$7</XA7`
M4,#B,F4?$C"@\*#>L`04V@'C($')P(4K#[%T^1(F&42Z/B%9AE&9!08,W@W8
M.+("@Y`<)8B2T``#AI0QF5)IV!1J5)=/G3P$$Y'(40E:&3QXT*`"A08H'RQX
M(.%!!;(?"J1]X)&:0*E25<ZU>_?;3'(U5_6=4Q?O0JJ!"1?.-!B$U2Y8_38>
M`M@P0<21*5?^@U@Q%\:.&T.VW$W_[V?1H]EX3LRW$0.T0L8>_9`,Y2K3I&E-
MIGT;]Q7,J.T46)!`B+)E6XD->S0[]R;DR9DS#^V0=QT+'(-CM`!<R/3CS;/9
MYOZ=].Y%JX!C%TZA0&SLCI:#C^3=??S(XGFMFN[NPP-EI1(8T\Y>/EB>"Y!`
MRDS+;(O-E-#IM0*H&<"8!8+ZKY'V"@0$O@LU9`HQ#0+X$,0011P1Q`=6\4@)
M"HS9;L-+!FP1QJ9>;"(#`&R\$<<<=;R10LXXLS!&-C(,DLAPZ#/'QR0_`+)(
M-(9L$LI;CH2HCHT^&,L($TU$1Y6_HL3ERS`3.C"Z(ZP<BZ(TS1J``PGQD\"B
M+I<2\S(Z_^W\9LHL$'A"02*L5*8C=P#EB('IOC+1`CFQN5./&1E]%!-'=PE`
M`Q`04````R[--``;08``BCZ'^+,`X#0JE2-Z,'J'+47E@E1(6&5U15(G*`7!
M``=`F"#772%````"QA$UN$1#0?54X#8HE!X&[MG`U2.8G-6*)ZF]=HTCX0#`
M#0&X30P!"#H-X%<GB)7&)P@7H.845*AI8*=HJCFECFFQC>7>?`DALRI<=>7U
MWR8"(`"`<,U5TD=[];5UX8;Y(."-)^#85%-,_0#5QD[.17A.A[MPU..0P:A5
MSRGZC->GN(Y0&8D&5EQ49"VLC9GF/B(>+XGIH!V`Y2+60Z(_"O\ZKKE:HHWN
M(L_%DFA`Z/54U;)4>MXQ-H&V"BV`@V.&/AI?KKVV@M_ZD*"@%`YP^JF!899)
MH($!VOF)[`^`<1#FK\6Q&^\H(*X"02T47(:ZZC@RJ]4$^NE)I**H`_S5O)T`
MV7&:21;;3)3,QDDDMGZAYR,*ANKH@0(\T+INQR&/7.3)D4QB2R1,!*B.KK;.
M>V;4[TU:,R7@!85Q.G8O/6^%;;\V[-4Y]DOXA?<>WNOE:<+Y^+Z2U_=TYA=6
MG<KHI1^^>NOSQ?XJ[;>WO7;O875^+^C%KW#XZ<V_L_CLUV??=O3?U]```?0_
MP*";*9^_7MR[7XP\U00#$(``!S0`J`S_$"P0`,`!Y5I@%<#7!?VD"X,9U.`&
M.=C!#3Y`@`-L$0"\Q00!?.B$';!1!!R0`01<``(1L)$"9$B%"G+A`"32X0YY
MV$,1\8]\(AQA!#Z4&!0&``XG-.(%0(!$`6A``PBR'W2$^`WW53$R`"#BP"9@
MHQ-NBX4NA*$,;=0KD_D/B]U)8X$ZE3&".4"!!G3@!2)H*0B4:PJX6^,KNK='
M`C%1"S?<0CLP4DA#'A*1B53D(@]I@1#Z\7MHE!\`Z7!%;$T1DK+"9+_41\G9
MX<V2F=10_,+GR4H.KWRBC)$>_6;*4]JNCZIL$BNSL#%*AI):L90ED0392E=^
MTFZ;W"6=:(D%_UL"$)>S2N8PP4-*I?T2>'A+)3/9*,E20E-:CZ0FHXIYA6/.
M;YFPTN4V\6?-9V+3".&$E##).4MSY@Z=Z6Q?.QGE3'CZHAD,,,X0J!$;):GS
M4=.D)WBZ";8D>``E$AA=-8BQ++:M"$)76A=K4&&,:#T&E0.U4T&KH*`$:`DX
M][#``I;%`7GP8Q\)@%,%W(*4L`#S:^/4:'QZ6<LD?%2?;*N:3A?G$Y#0HQJ_
M2`<%))`UF'I-H#-E#D>IX%%V-*`_)@I*>0J7'Z`J0RGKN$[/B@#0>BHU3/9,
M$.NH8R(X#6.D9F4:!=AJHK$TP"L#H(#LHFFWI((5-TPU63SE&42\0O])K['@
M:U>U^=<@B=67@Q6"5^]T5\..)K!18,Q%TM,8"0C-JJ+(3^,BQ]C'!J:FQCS"
MSQ+ZFKG&K2B8)8X0?F&,CF2U=83UZV=7^<ZQ&N%R_*$.!PJE3ZBN`QX\PZP[
ME!+2KG!UL1FE;6VKT`']/1>ZT94N="<P6B)0E:J#XDC5VL+:4$@`.&KI$210
M)]/ET@:Q-C7"SSJ2->#HQ$%LDZN#F.;=8V`'`YC-YFS/JZ'(ALH7A:P&45\C
MC;BI-#9L#4A$%Q`;";RLKZCS;'^C$EHI[.E@C?G9CY1+X0O1YU84HU@;/P5@
MQ2:7OQX.$(@KU2N`^0I8PC+QB2<LIAJK&";_Q=M6M[XE@'"-"X\/3!$[TA$0
M(;AF"+$U`D^\E&(<NT=;_MJ5BP5&,(,U04$#2,8P-D*<9>B3%`\N14+)1IRW
M')5KYGUR9%0W,8M1K`D8^Q:66<<`56&`:<)=AD[0\[D/\'8#<`6+9CGK.,>N
MV2X<Q;!D;QK4*V&`NZ&[:M0R1]53H?EHAT:T5/[+IYPYFLCK0(_;/%(J06.W
M55K&M-%NO&F%I%>T2"C*`C`RUP\H&$),@T="U5)@E$"H+*LFFJ9=W11V]DV]
M-IE#6S``X2/HL\GE+39X+&S0$R^IP]-VCFT3J]A61XG8VGY)IS-,XWF*FSFP
M]N:UL>UD=)/FV&5"_^>WH:3F=T.EVAUE-[V;9.][,R7?3=UWMO\-66XGV]OG
M+CAIU&UM<]=OX;2)=R?YRN\B^3OB+`GX7J]M<5YF?#0;%VS'"0[RR$S\?X/U
M^&%-_IF&4W!',9?YS&F>(XQ?LN66(;>V;YYS@HC\WCWW.3B`_NYP#[T[!C#`
MN)1.L``8(`-.5_JXGD[UI7.KZDMG^H>XI?6N7SV!8)_ZUZ5^0+)C_>H?2GO5
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MJ2L^@LO<!B,6@`,&P$300V@(R0[H[0!\PMF,(!4&`(C"(P'';0$%KDJXBQ]V
MXJ-6$!C4HCSLC*3DIE4"2!`"0%Y28P"^#QS6KP33@/_LP$H^0"DX@FFF`SCD
M*@;S"QA,Y:)DZP\ZD#-$4#1X\`?!A&\H#@G<)F7__$%94,(#3JH_^@,#*F`#
M?J,&7VD/$"`''</.%FT^KG`E@C!VTJ5MM.H8FH%MFJ$8V*48)HI>U#`/"`"Y
M'*,!V$DJ$%`.#:'HRLT1X.HK5BL`'<.K7$9[%F`$"\,*%[%.LC#EX`^@?D=[
MIB&+.#$AZ'`.NB1:"I$2\T`4Q8<!,A$O-M$4]:#^1FX.+D`4*N`"?"9P.":<
M".`#+Q$1]Z\6"P(5E>"C\L-4<*)-S(;/+$(HTF$LVL)MV$$0T0`!6#%Z&@`.
M[4(1CQ$0&I'.Z&`92V4!1`H-G3`4ZB$)HX:H?L'(ZHH,5)&[L$H(+B(KTN8)
ME6``"(,6Q7$-R%'(S#$L_RJ`;1+EP2Q-']8FJ.J!%.0Q&\W@`(QL".61`81!
MGPI@&MOB*_1)/^"JLM`#KN!"&F0Q$042')*QT7H1.$)'*<[0"2V`)%!%&="B
M#-6A"(5M"^3$_VB-J,*B+4Y!TO#CH:#*`CFBUT;*<$8E,`)2)='@%AGM_O#O
M#`*@""[2`F^"N^!D/U(%&3XG'3#BS_PI%F<Q*KT!Y2;I_G!)4;B09V[B)L("
M/=(#<%0J/1*`5:*J`BZB69SR+GPP+;.`(+_)E4*I(HO`SE+F%(H!%:Z$&J:!
M7MY%,HV!74K!&EYF`8IQ#@=3&PJS#A8`L["$"/JI$?R))[&@'SWI'\%1()\.
M!/\2:`H.``%D4QQ:(<8$IG9L,X].T/[\T0.,`22"HZ&$PA+MK!G6845V9\,*
MK1X5JS7G`BK1#0`N((<F)@#VY``(X``T8.D$`(&>8`*L$P0B0``.`#V+"`$J
M0<:<0,80`#WW)@`<H&^F<L;\D2:9D0C=AJ08P*34(5&`XS_-0@QMT`R$T1]'
M964:H1"],=$$DH2^B`!J).J>"`!J)``N```Z8&\0H`-B*#$$P`"<RT8F5`'.
M4P,B(`*:H#M5-`!4B$,C8`+TIPK6\IK\D1H1$JI,C2'1PKU:12F4T$#+`"N5
M0!<_@!=]L3D;#0FF4Q($4\56R#P]Q8NZ!86,*,X$``+_.N"!N&5;;J2)+H5&
M+>5$OVB)FJAO0),.E.$C!D>JA&)QVK0)@?0U$')(GU,904ISEN$9BPP]`*)J
MU`%.WF))@^-!Q=%&/%1$)V#*E.B$D`A+02!%+]0!,N9+#2`"$*"+%(`^L8Q3
MS?2$,N``("!-?1,7=><HM*1!T(IP4G74U"IMA&82(ZP,5O,<R9`_&;(=)TTI
M8!`47%,<E0Y7%."!O`4$%(!_(`!9B159+441%DCI#H!8E4Y,`^``)H"&6!1;
M(T!:C_4Z%8!8G<)4J;(JV\T,;/4@$U++UK%P]N,=>Q6\?E4Z/3,;[-/3RM5<
M:W4.@,,E\\,BY`8-]ZPFWW%0_^%T"P^57FN!G6JDYF9NO-@M`Z9+8B?VN?1K
ML*(S*J`T8:?`4<3%AWAH2V@M+8Z'I49V"%2$GPBI2RQI-4T)8Z&",SG16$GU
M-`P($<XS7!U"?W)6LD9F#Q@!=E3$(\9,+>1*-5[*(^;J6)ALH@*G=4A*OX;0
M*O'T>`)B'OT16!/V`AAU/!^HB0``4\+%`2X`4CMET0!)CB"F@82%;+L@9JDD
M;8@`OGZ+(L*";6*5)S#0670BV(XAOXRL+(`A.%1P:L>@98/#)UA#=Z#A<*LA
M:^EU:S65B2X``3+``31@A2"`;+^(9IM`0[E%6B%@`D2WA0C@`MX6R\"`.YL@
M/)N(=?\]#:Y8`PT')5F$H!X>@++X0RV*$!5X0G#_#&OB0FI1[%SM`%KZ\A<E
MPB>F(7&K!&$AUT8T%P0VMTN5:',O5`#0EFP'Y@">ZP`B%E30=@N>)'0AH%(A
MB%L*!E0RK-F<I;?B*]5,3:X`HBYU:R2$(!U9\$J(@Q^N9`@?TY**U!QM5RG3
M(2?.HFJ80<L:UTDC06.+C6PC>'H]]'+!-@(T%XD"8`+JR'-!1(M(R`$XE4M/
M]V.Z(`(62%.;H(LZ12\8(6F-86@+3%WH@7]]8QF,`26:;0B`LAF*(B`2BM8P
M0LSRE0P0E`[,9F3E2V4YXH8ARGGM`G6OD`FFV&L/`(+<P'S_80]7'`C+;D1L
M&<B!EJZ$N>"$I%41X&!@SM<1ZZ!0AP!.DB24#I>]#@<GF+AQ_>0NPG%CT2"*
M%8``$"`"_)@`PM5CBZ@@RS6.V?BZ.B>!.0(]5N%E\6V/:8%)@,6/@:5@0``]
MNW2-03$-$C.>-O,N&GB2LX`'-T,TQ](W[O<#/$!.CN+_>L,YJ1:;(ADJ'KB4
M#>AGD0"^NJ0IS9`9,*(CO0*XRF)0J8$DWT(L>HU6S4"`H>DL[R**<_D/]+@<
MC>`^-'`D@M@"B7(NE?+65D4I48(IM>-ADZEE?:*0AK$('@1K\<*:J3D,IOFV
MUBL-!Z=^N_(F^`,"ZSA0R?(D"+B9_RGR:HN`FTMS72(SH4_A#%'V"$09GN59
M.7;Y".Z#;"`DI'J"+H7X+OMA+/F#0/VR(^@*"M.@'VWXHI&4J)I2+$SJ*\Z0
MU@[V*25:$T[9)HHA728*7B8S,ETF.1D*0GXZ%1BJ&))AO]1@&QLMN'2+*)#W
M';%C26V9+FCZ,"CZ"%!S?2R6O-3`B(U`*7JG+(3"64P$&(H"OT"0GD^1JA70
M%O&5B#^YH&\-37!B(T.*&LQ&:):AODPAK1,BGM?:E*VZ*D/Q`Z&-"-B*K;`Q
M>?-C'B&Z,/X:L+U)L$,3/0B)G8G`1/9I`_>@JW?8"-;A2@*B9R#L$"FCKR/;
MF2>;#GJ9G_]"YXWERK791$*P.MH&D1O[8@"^D3!P.9=MVA&RF2Q[=2C[04O0
MD'0VFP_8\+(=(14^@Y116Y?;VA&<<`B"U$%(8B/@=[%KF[/;\!'L[+0U#KK?
M0[7GP*(],"W:06Z2`5IB<B=F=9;UH`.7>V6H,.3&VQ"\ZIM\(P0AI`):(P^_
M,K2-FGX&@0#2)15]0K<M([SQ&PQ\VQ&PNF15`R5(\V0%T!!P<(,,.3=XNY0A
M?+!IQ\$)(9X-TY0\O#D@>\2?X)0;UL45X/S.#\6W;<4#8<8'JL%KW)2AS_6D
M+_:JK^QJC_GZCLCY;OH<+^Y\3\@1[_F*',F-#\@+K_F$W,E9[_4=COSWLCS(
9L8_+B:_*D4_'PUS,QYS,R]S,SSQD@@``.S\_
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>12
<FILENAME>o38546o3854609.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 o38546o3854609.gif
M1TE&.#EA-@)"`>8``$)"0EQ<7'5U=2,C(V5E93\_/V9F9@8&!K^_OW]_?RLK
M*Q86%JBHJ'EY>9V=G:ZNKM;6UK:VMMK:VDM+2VUM;8Z.CI:6EL;&QLK*RF]O
M;^_O[\_/SQ\?']_?WY^?GXR,C%]?7R\O+]C8V`\/#[*RLJ^OKT]/3X^/C_7U
M]3,S,QD9&>+BXI65E4Q,3(*"@NOKZ\7%Q;R\O%)24EE960P,#"8F)CDY.2PL
M+!,3$VEI:7)R<IF9F49&1CP\/#8V-I*2DEM;6ZJJJM+2TC(R,FMK:U965E-3
M4W!P<&=G9V)B8B4E)1L;&ZRLK+6UM<S,S'Q\?'Y^?J"@H&%A88J*BH6%A8:&
MAE!04"DI*1P<'#4U-8>'A[&QL;V]O9R<G%145(.#@VAH:)N;FZ:FIJ6EI4='
M1V-C8ST]/>3DY'U]?8F)B6IJ:A@8&`X.#M34U(V-C<C(R'M[>^SL[&!@8#X^
M/FQL;.7EY:*BHNKJZIJ:FEY>7CL[.S$Q,2XN+IB8F````/___R'Y!```````
M+``````V`D(!``?_@'^"@X2%AH>(B8J+C(V.CY"1DI.4E9:7F)F:FYR=GI^@
MH:*CI*6FIZBIJJNLK:ZOL+&RL[2UMK>XN;J('0B$&[Z#P+O$Q<;'R,G*LQXC
M!2$:?QD<(2&"T]7+VMO<W=[?Q",;?QX9?W[1(;[H?^K@[_#Q\O/TBGZ""`7Y
M@@D)^W_]Z@D<2+"@05@%,B`(H:\`/W\.`28@Y*%``30,,FK<R+&CQX\@0XH<
M2;*DR9,H4ZI<R;*ERY<P8\J<2;.FS99.+&D`8>)$PX?_`AJ*>+"HT:-(D_+S
ME>'$N73KH!XBJK2JU:M8CY5P!DT:-6M>LTW-2K:LV;.J>OT*)F@8(JIH_^/*
MG6MP@XD")L;-@DNWK]^_VSCX&6R"%E_`B!,KIC5X\.%6CQ=+GDQ95&,_'`Q7
MWLRY<Z8-E^_M]4RZM.E$"$)K/LVZ=>?4EU>[GDT;<8+0;!'6WLU;[NW+N5]%
M[DV\^,$,N$<;7\[<8('0'I0WGTX=WG,_UR?*&EZ]N_==UZ\[CL7]N_GSY!VK
MUHV^O?OM@SV8&#Q"N_#W^/.KNAZ<O/[_`(;"GRWE!6C@@8P,6$N!"#;HH"`*
MRO;@A!0.$B$G'O@CB`8G)-#!AAU^.%:%)$XXPF`B<I)`"`F,X`M>&8P0#8PR
MCECBC0<V]DD!)4B3@`8C"&)""4`*V>-0."89H/^.GFS`P3,:!`710S8J::5[
M3'8"@D(\2BDE11;QX,"89)9IYIEHIJGFFFRVZ>:;<,8IYYQTUFGGG7CFJ>>>
M?/;IYY^`LME8FA=8(EH^&X#55*+7.(7DE9"BER4G'/28`0A_B*,!!^-HRFF5
MD89*W:2;.(E=-,WX80XY)Z[ZJ*BP-D?J=K'6NMRL_MFJ*V^XLK?KKZ[U>A^P
MQ)XFK"L,%JOL7\="MNRSFS7+2K+05FN6M*M0:^VV5L$&UH+<ADL7;-J:4JZX
MZ!9$[BWGINLN/>L2^.Z\W8XG+[WX'A4ON/GV:]"^$OHK\#P`2S?PP?`43"O"
M#(.C<*X-1[P-N2MD8,#_Q1]`+/'&R)!+PL4@:\SQR+MX#'(&)&1RF4.IKMKR
M6R3'7+)C'QN0LI:^>-KI!IOJ54B[,@<]2@DT7WSS)@@4QJ@T)RS=%*A"1^W*
M;PG4?+0F^OSA941""=(+`F9((/;89)=M]MEHIZWVVFRW[?;;<,<M]]QTUVWW
MW7CGK??>?/?M]]]J4S`8!5%<'`79<5S2069:<SVE1(0@T`\`$51N^>689Z[Y
MYIQW[OGGH(<N^NBDEV[ZZ:BGKOKJK+?N^NNPQRY[YT`,!D0%%U=PN1"7G+!J
MD7\,"?R04$MM?"I46\T)\1":$..,SM?XZO'4HY*\T1BFR*&'(')??/7@@W*]
M_\T&AV_^)U2S<#$,Y9_OOB94?W"Q".V_;[\D)X26@/P&T+_P_0"4A'@&L[_Y
MU2^`"$S$`$?0`?[Y3V0)C.`A!.,'MCCP@!+,X*0N^+\,>G`0&S1@!S_HP1#V
M#X,D#*`)'^BK%&IP,(3@(`1=B,`5HI"&[[/A"'&H0A@.0H8MY&$/12,(D*'@
MAD($7P?H0XB0(3&)U`.8$W<(Q?-)\6(!JZ(5[55$+'*B%]%H2V[<\CTM5N^*
M!L"0,VJ$#45]!69F?!\:.<%`@/2('>[`8W_^`+0X1FR.FMA``1(PR,8!Q7%E
M]*/4`)F)U)P@'X_KQY<&(;D$].`!F,RD)C?)R4YZ\O^3H`RE*$=)RE*:\I2H
M3*4J5\G*5KKRE;",I2QG2<M:<M(%@U&`)D&VR9Q0XA_YV!J5!O$U/4#@F,A,
MIC*7R<QF.O.9T(RF-*=)S6I:\YK8S*8VM\G-;GKSF^`,ISC'2<YE1F$P64@F
MR)1Y!TMP(!HGP)0>G]*./?91D0C+GQ\*,X@I9L(#3Q)'6-PHENGADWI4:Z(7
M-P%&88QQCQ`ZJ+5*8)&*6L0^\"/@(%#@SR!*E%A+#$UCHK.)A`I"!!C+XD=U
M!0P0B+0Q&,6$2?^`4@-D[(DKO1)L8(J`GKK4#S&]Q$QK>E,JYA16\[E,&/^@
M3TR55*,G32E.CUHB#X3&(D?_P@<7,S%4J1J5JE8:(.,*$:\5D."L+ZC$;^@@
M@K;&P*LS!&M8&S,"DA8"-)@11`-`QH))^(2"*0`9R(H:5[DFZ4*#$`$)5M`8
M$C!`L(1]Q%4%"U>/&E9)B+V&`1K0&,K:=!*AD4$#/F"QBS%`I9?%469?`+(#
M#$8%')#!8$$[F!;,P`#CJ)D!V#?5U#8HLS4U@`HNDX+'?C82L,'!Q5:U`9"M
M`+6^)1$%^Q/<&ZR,J)*`C0I,*X@5=-2RT241KMX*LAWHP#'81>YK1?@'%QRW
MM^%=D@\+H=OHX'4$Z86$=ME+TWO%%T>3>D%;:\:"(YYC,-[=;';7>T)=W/._
MDIHO_PI*"S+>'O@>WV7$?AN<BP=#V#Q9"B[('JBC#"]BPRQDUX=OE"48>/:!
M(1@,`DRL"!1+H@-!%="*2]28M/Y!MT:TD(QIC!H&I[@1J8%$/[BW/1$U&8X[
MIE!C5J4^`WC@K#[CXY`7^@@;J[>G8$;`4LG*@7Y\B$;0>UXBHPR@SGZ`M/P=
M1%(3T`+9+M@/V^5PEU\*T7@.8GA$"E+PLDH(#[.Y.7BE@6<-7(C?-.8&=\[S
MD35<P3"+&1$@B#$TA`DY@Q[:0!L&60,0X>C71CK.2":BAGV1`!!PNFODL,@>
M&D#K6MOZUKC.M:YWS>M>^_K7P`ZVL(=-[&(;^]C(3K:RE__-[&8[^]G'KAV>
M+T8`(Q@A`[K.P1IPP(;7$EO:>1:`K[=0"!QGMP!.:YJB'/6S3SMHPS%PA'9/
MK6='X'C)2TY1(3Z5@8GH+%,\^Y2GW?T?[4ZZR'BF]\%KS&=$($`P)D!5JP3Q
MLC43O#T&UZ^IU3OM>C<"-,[0D"@,??'>9'S/?L"!PG])2,?HFQ,D+_EN3B[9
M^:)<TI5`0`9B[(<LPUSF`:*Y([!%5B/?^#DAARC6@`X@H3>"Z(309PTNYF.-
M.\.B/M]$S)GNFM_<8.&(@/H@?A/8-$I"D!:U2-:7SO7\D!WLAQ`[/P93]DEL
M(`%$*L76VWX:LC\7$CV.!-FY_(C_#F3@.2'(0-Y!L7>^EX;LDF@,W`TQ>+/G
MO.4YSD3C'<\9G](]\H.9?*/I3GA(?(A#)]#`R[7.^?,@A[B@]X/H"5%Y2B2$
MCR.@AHY;_YT!^B$%L9_]V$EO>4@0S0-$P[L?/#!FUO/>.]<)`6R="OC0"Y[X
MD[C-BNJ#'!"L7O//]PX%FUMZ1DC^^K\O?R.HH:H_<&"LGMA\^!538O7;P_I*
MQOXD.'2D#'R?[?,W'?57?$,W&+R3?^E'@)`P#JC7?#\7@`((0T3V%C*&?G4W
M"<BA9=BQ>Q#('`,H0!6(@!<8"4O4-,N7&O^'"?+7@7[Q@9&068M0>PO&5.Q0
M08S'@AXH_X'VIT`A^`@R2(++]R3DX`<I>`DKB(-SX8*0`(.*\(.1X%+BD!K4
MAP@;P%QW<21VP2-0AH2]H82/P(2)X(21L`$?T@&$A@@,(0@<<`);\2%KV(86
MQX6FX86.`(:DIG^1$"5A5H32D(:+(P@@X`%_^`>!&(=RZ!EXQ0$UY0(@:(,B
MN(,(=QFN8@@/1U&&)!&3U&Z'.'/H55F-8(>'D%0%\%Z0H(=@YE+?MRD]Y1"O
MAE$540`*0`&R.(NT6(NV>(NXF(NZN(N\V(N^^(O`&(S".(S$6(S&>(S(F(S*
MN(S,V(S!*`.#L01$<#%(((Q+,!@R$(S7Z`<M8`#5R(M!8'Y[M/]3V#&(@6B.
M=E5HF\B)V)%?7S@83?""M46*E0`::T=)$?&&=:2/WW>$ZY@5Y.*.=3@8.R"/
MW$B/CH!V%95[BU"%;7&%#ZF%AOB/E!&0GI@@!&F0W1A9"9EV_L>!%,D:%HF0
M&.D'/Z"1),DO(2F2G9B230A5[WB0'.E?*VD:(SF3,0B3`RF3Q."/-9D41-..
M%YF30(62.`E=/SD79G56),!HPP=4`MD(,[63&]F329D8$R98'B`"3DDU4<D(
M4_F)\WB4\'655E%EE.4"C.:50_F21;F$8VF59DD6&N![A$%^5N9>(',T;.F2
M8:B38LF3X#&79*%/+S48-#`1*\`">EG_5'U)EG?XEC%9E8-)F%A1:H?I*JRU
M4%3C8@;05^B7>3PHF`YFF5AQ'816`Y>A#GHQ1>-S-8X0EB5)F:4Y,(2$;OTR
M78.08#\U97_@F@2D/.CG:@XXFK3980,34ON$+QDR*<&%`U>E`BI0`&\``@5`
M056#/>B'F"#0`!Y@9;16=846EY7I+U:U5=RB`4N65$PT"#7S`3%@$2=R&30P
M`-`AG)#P`2^E`B"PEU-!GK7I+Z^W@>C"GJ'!3X)@7$=#CB_%0/CY"$Q0`RH`
MG9=A`_XY%/,(F@&:+X9)H`7!<WY01TAQ=V>H"//9&":0`BF0COR397H(HGZ@
M#I?VH(Y04R0`_Z,TH*(V`)MJB(WD4Y[Y,D#?,A`,JG3*8(J6EJ0]-7Z-H`$P
ME0!%H)<9L`(,\&:E-6D#Z@<ZT%8B8%;:&0DK\$#*Z9N&T%D_NJ'XXGO_`AW>
M\#4P>I@O5:*'X"V"P#_+15F32`@[<!FWY5D\.@F^-P.$L!/B\:7(Z2]ONJ:7
M(9K&@%=P^J@$E`\5=8:'QW/\Y%F4E8Z$``,RH**RA:E_*@D:D"$_117G:::A
MBI3H(E**"E/+L"F'R1!I-ZL68:DP.J1C^I9[B:E_9P@HL%<@XP(?H)>&B@ET
M.@B]F7+%^@FFXC(3QRKM-Y'6PJH%$92NFE@9D`'"QPH=ZAB%]`<HT/]63EET
MF"%2_49!ER&B(1.F7=I6XFD(%7,Q&LH_&?"NEX`"D\)S()`#_7FFH5`I/0-P
M`?MO`_<NU$H0F.DJQ&H`:GD+&8*N@_%U@A"NC7E2AN"DJVF7C?%(2S6!L>!:
MA]FO%Q-OHW!Z'-`!Z99NTEHM=#48]Q@/OQ$>@N"9@J6AJ!`E?\FG@@4#+T!A
M5"<_C+AOE^$!IWI5A<!1D!@+P_52BK9<+]L)H!%QK4@(7Y,%&'"U6)NU6KNU
M7-NU7ONU8!NV8CNV9%NV9GNV:)NV5]L80S`8?:"V<!NW:$L`@]&V?C`$5\L_
M29`$(".W:'LB,M"U=CL8"S`#0("IB&L`39#_M4$P`8Y+!%=+!([KN$'0M5MP
M,0G@MYKKM3P`LI=Q`*.H`U#P`&1[!ID03U-+2?W`!Q;0NJ[[NK`;N[([N[1;
MN[9[N[B;N[J[N[S;N[[[NQ90!8VA!(-Q!,![O,CKNQ,P&,3K!TI@`7D`,@Y@
M`2"3O+U[!(TANYP5L2F@!:W+`C[+L'8J6&!@O5-P,3I@O>I+NSJ0N!F`![S+
M!98``M%`48`&:"O[+-X"BN#P>N%17UUD`.-*"J?J<RB0`YUU-2L`K`9@#B@P
MOL$ZP)'PE;5`KY35`+UJ"H>7`)7"1]&39M*CB?E"+OS[#:C9&,!:5$!4"H[F
M#SX3`RTP&#4@P0^\_UO"8#$?@):0R0@43`LNII9(^YFLD"'!\&1_8,0%FRXD
MW(,"P1]FF@&,ML*B4(40"Z?G$J\55H]MB0N/U;#*X)-)0BZOQZCOX,2UU0)/
M$&8YT`(@L*V6T`$+`*F+6@EHV<#VV@@T6@P9G`Q@C"/D$K/^`&9\J`UF_*@J
M8&&CD*5X)ITO=;*5(&(&0+(O0`(B$`,Q(,&$D,>NT<<W\L>'*6CQP',(0`-R
MS`1#<Z*-P0%XNL>6\)T@$QT]"UE/J\FMP<DE\AM-`:=RN@W-.1@:P`/22:OS
M>9(C][F.M5D,D`&GY0DOH)>,6,>OO)4LX'.TS!JV3")4LSVM9A$0Z\C=4/^T
M?K"9>7H-@_$DX[P)$(N;I1#$$(RXXNG*)+L;UUPALOD'CEK."5&<QE!J^'61
M8Y`<G]`84AP*X7LQ+@`##,Q7">H"5]H;\SPA'?!3F:>Q4Y@,@+P!7RD$GNL'
M'^!C+]``VFJLY:R7;FP)Q@4R,<"5?X#%B4MU#ITO'7"B9+Q`8*8,2452Y&6S
MB04"+:":Z4<"+U!EFCH(KX@7OO`U849(/#>*%X/)GX`"[N4"77JT-(NXB%P;
M#^T@I<9NB*"'J!RMQ\`?)/`!P/JG4&T`-E#.F\7`./G5R7J8">"QJU##)Y,!
M5XW5^3*?(4"_CJ#(63T)*.`#\RA8H0K5,=QQD!7_=G(L4DT@UZVP`1^PS,;Q
MUP<"&T&B6$_[9]:YU,<`U2#;IUF,""CP`Z%!`WTZ:I0HPUM!5SX@G2IP`PGQ
M!+956D$;+I2-'[=9410$`KJU6/;6GL7P,68J6'`'ISQP".>I`AG0J2G0`Q@M
M:M"\Q<IRV^A!46]Z&7Q+63$PUBQPQR!D<[I@7(T!`V\FKV!YF#2@I$5`?"##
M`*[<TJFZ+-1="$BJI/9]WTI*%QU@`E\=&B,@LI@ZU(0@=ZSP5BU@77DE")8<
M":FRV!;:TH(%K))MV[)P>/*YV!@.UW+1`;[G:F'&!&FP7)`L:I^9`2Z0P02^
M"AZ0`BN3"8?]J.W[F0EM_U/EW<"L3.&I@'0^DZL9WN,MCA9`0E<E$!Q9B3TO
M4(4MG0$?H!>B3`S;VQ@530D<[-H%X-K2>0-03+0H<-(-;&"*Y=W<8LL[A2D;
MT-]71ZMHGN9IQW/P5Q:G6@`=@`(>P`(K$*X_)EB,-LDD$`,%?3&C)@*"[8BZ
MP',LPGR94,<^Z\6[>3%75M+08LNGRGZ7\4A&>@DI3A")XAC10%X-O%D4-N&$
M4.0V%>'"Q<2X0,I^L,N4`&24=<<O<.-!BCQ63`KS.<A'`:)ZP>HG`^MM`9_/
MA=""M;0"/@H:<!=J;E&!S@Z;$-3#>C(?<-?6TE!BM!8*E`J*/!CGO".F?A48
MF__@=PZJ$RQ8+.X'Q%D*KUC%&#ZDG2#4[G(":\04;S106ZAWH<$!E;X\@\'5
M5<%_/^7-?P#!55I@DB`";_8!XU[.I7#=/4[&EM#,)^XN(?`A%4%/>2052<QX
M^=Y38U:%]8H"+)##T"[E@*D4;SJ%%HS:]YK6E\&N+S#GO%X)H9$"+5`$+5#S
M-G_S-V\'">0!KN8XF:B.J-`8WW?2"?WLF=T(3<7MF+E\,70Q&.W43RBA\]F-
MK<X)>'4`=0;A$?[RX>,DO>#SB*2Z"7`%%5#V9G_V:)_V:K_V9S\%C;'V1P#A
M+O`#;%_W9J\&@S$`=K_W?-_W?O_W?F\$GYL"<X#V(`/_!X!O]U)P,0A.]8+U
M!8E?]PB,9U8`X5)0!I&?^9J_^9S?^9[_^:"?^.'8RI^2NE[34REP`:J_^JS?
M^J[_^K#/^@!0SK`/!925PY05!K&O^ER`!%[@!J_/`GF_^\1?_,9__,B?_*PO
M!I=Q`WU*!`$0!*H/,LI?_+9O`!3TX()E`=4/^V1P`"![`Q>``3G\[&T0`_#)
M`M/<_>S?_N[__O`?__(__]W/]3'8%8(P3_-T\94`"!H(@P@;?W\:?HHEAXV-
M+@8&)),H?QLL#9$LE8Y_*"*3F9$>G(V)BIVIJJNLK:ZOL+$GBE@MD;<&&2M_
MM[&^'Y$IBBD?&;@DOJVGBGXV_\G/T-'2T]35UM?8V8T=?B$%!1E_&1PA(8?C
MY:L%VHT%S(J%(;0L+KN=O:DKMRZE,)"XN!I`:K""Q`=F[!(J[)1`T8Q(&41%
M:D!B(CL/P1396/&)021DUA"\\R-CH<F3*%.J7)E,$"%#EA`XVB!3G;42"7+F
MS#"RFSR-D5RDPI?*F*85#(`!A+C4*`U%`;HP$/&"I557#?T\-/`!A<&E']A5
M--!B)(BQ(*N)[-;BX=6W<./*G7MM';6U/?UP<#?RP%9)CEX0[21":2Z`#91F
M0`'#*$`5S&A`K$KWJ@E%.2*%/00#H`=VG0WDZ/ECU+6LMG)57LVZM>N4=J$E
M^,8A+_^\/WP5F8@!</,?$9I;&;Y%\-`G3B]BB&A\J\:[6R)>PU:T(W@C$8XI
M:XL1X\]/9M6YGG9H7;KY\^C3.XJ=S$//##IS,D*D\X2&L;@^D(B!43RK%T9E
ML$%TKZ"0%`QU9.6'*`2JIPU?3YCFR`K`I'7297YDYE\U(&!6GH,@ABBB2NSY
MTN$[);;"PBC#X<*"*R\P$$,IT/Q41"0PC'C-"(J4!IA<66WE&S5\A3>DCD@F
MJ60R*;[206U^G#"(!JNL`(,')'BPBU+1]0>0A0OQI<-'2TK##%ISS>+'%1]"
M@R%X;98IYYQ*-MF*>\Q0J4IC_]R2`0FBV`,*)'^20&.8BLC_0":=KYR0TYF+
MQH67'S10,<VD\,3)Z*:<FB<#"R0($=^HHZ+(BF-+#>8)52QEE4*DG7:")S,<
MH"D7-^\X(TT)(X5@:ZS`!DL7,"!`:5M/(R1@R'(DP!`##"_H0QP)'N$2SEQ9
M]:")L(XHJ%M_8+Z5FQ\U3)/5M7_\RNVZ[)Y$!0@''&M;%]&VJ-E$,QY24%(?
MP"07G@NH0`QZ'1!B\,$&^ZL*AB;DU`&7JZV%PS0\^9%`(^JVJ_'&UO!0EB(X
MI"#RR"2/G%JJ7Z*':0/G:<"CO#W5I`I?,D-<V3(%?`8-7_.E"RO'0`?M2VXA
M-`##"BSH5RW*^W@049\&*/Q:!R\K_V+`'RMLP-\&]L2EP;@PF\7*R_[:7-E3
MBG`0#<T8_RSTVW!WPI>=!:%JK<Z-P)#4B^D5?*(/.I1<`%>4X43JX0GH24W%
MS'CSS>.0/Y[G*@@U8C9=/KRC^"L;&.L'E2)L8)34<9?^-E]XMR)"@W3RZH<*
MGJ>=@@DG@`US")M#X_([YL`"9>I_E)!"#XJ,@+4Q1K$^UP<RX*"(`-%=HM^I
M(Z$`M0%=FZY]T.[T'O0&88>?UPG18*IV8*LK[PD+Q.O52?N*%&`]0-H-:X!S
M,(]0@L&>UR`1CML+(/=*UZN<?(=WB(L/ANS$BD&`+76A&07K*G(B/X#*'O%J
MW/]4PYH5-/_`=N+S`P@`XH(/J$^`*!06`S66@)>%H`.'T,`)>'"#XO6L%6LY
M7RPJ2"OR.<)NN="/TR(!I1JTH`4Z"(`B#I`"&XPP$@S8SZ'H@@(AO"F$>@%(
MCE+(Q7:ML'27\P0P,N"!#VSQ$,Q(X.%&TB3!!(5I&0"A;O!C`.`Y2"E7BEP!
M!J`"1?V)55T,)+>^&+?^S&AU+Y@?8J82`^=AD1DC*(`)N$8H_8B`-^*)03&6
MP@`G'(M\,9C$&464L4,H)5^"3*4*`SD6(#+M?H]D!BD\,$24,6`F']#/T0Y1
M`CV"(W=(PB3?[A&)^JGRF*]!``P1X:AERC`!RTP%(>&&290E[0/_+$`5"$8V
M`S6.BGQT1-DH@0:<6^AG$BM2%3+761D$C*`FDLS`"*@4SWG.+)#2"LH__N0(
M%,3@F@SHSS!CD4X<B<`C+C`&/^#FQE<>B9T0A8L'"A`"F;CL$"8HP47_D-%[
M!A(&HM37"0GC)P:0;A5*Z1<7+_'*<$7TI2NAITP08)><T/00.?$H3%F1*EHF
MY:2\*&8J03&)2:Q@!2/=J5)-4H"9UC0!-_U#3AO1RP(L8`)8S:I6M\K5KGKU
MJV`-JUC'2M:R=M4&5I##*R-B`!=4P0!2N(59YTK7NMKUKGC-JU[WRM>^^O6O
M@,VK%JS15$OT+@,GV,!A?2BWI;IB`[5\_V5^'$O9RB:DL'\8P08TP`%#:):S
M)YVF8V'0@`8D3;(#M:QJ5_L,S'J`1]=ZK1_0U5C6PB)TH7.:0K-GV][Z-ANB
M_:UPATO<NA3WN,A-;C6"J]SF.I>XS'VN=*=KV>A2][K8A:AUL\O=[G)QN]X-
MKWCA!M[QFO>\ZRHO>M?+7CJIM[WPC:^(WBO?^MKW-?2]KW[W"Y?\\O>_`&9J
M@`=,X-7XM\`(3G`L#JS@!CMX/0^.L(2)-.$*6Q@6#+ZPANV;X0U[.+L;,$$!
M;@CA#YLXP!PX00E&$,T2G_C%]WW2(4!@1]S`^,;UC>I4:XOC'J]7QQ>CZC<B
MZ<LB&_G(OB0RDO^7S&3(*;G)4#[RDZ-,Y<A-N<I5#L%>L,QEBFZYRU4F!YBQ
M+.8Q4_G*9EXRFM,L939'6<E!5HB,_T!CG;*DPZ_`LROTW`H^KP(!<5X)H*\"
M54++;"5^MLE5$FWGDZ1XQ2UNA[@FO6A*LV305L%TJPZMDD);A='2M/2=5Q+B
M$:^"Q"JI,4I0G1)5GX35)RG8561ME0U$.B7*O`JL3^)JD^S:)+WVL;"'3>QB
M&_O8R$ZVLI?-[&8[^]G0CK:TIZVC7H)`3[.YMDEF$^0X/F[;!0BR!D`0[I-P
M.X;D_G4UQEUN2XA8W=1@=Z!!<))2SV>B)N"T-NS-RP)H>R&]G*0I3/#_:DG"
MA-PY`[>VY6UN?]/S<;35!L,10>Y`J\2=)?"`.6:#@(8M)`$5S4`X:(*`$Q!<
M(2!'@,CI#`($A"#8Y@IY./Q-4WA+`P0M?_D?'LWBA>#<Y9_1P&4<K6(6(X`#
M&>^Y0GA>,*3C?"%4*\$)=,@3DT1]ZF@<Q*VQH7$$/!T<1]<WUROZ=$*`@+'L
M^+G.U0YS;4RU`(HMV`:`2MB:&*\1+PR3W3E*/MKI_1#&\\,A.KX0#L#0`R"8
M<YV7?GAZ@X!75C\?C6F-678HW@.R+L')$X+X0Q@^>/(`-KUW7K`0S-TD=7X2
M9P5A:Y]_9LY_Z(#W$O+YSOO=[RPY`;TY*Y(A_[<]&B;X#/@:T?F%!-\2@J=:
M-TQR_.'WO'8+$?P?:`KDZ`\^-M)72/4/T;F%;#\!'!#[:8+<5)<-_^/D+WDD
M.?#[G=7$#T?WAF;__H?L+UXATK^I\F>O$@V40\LB80A4LQ`;0&399WHF48#?
M('@AP`CP08`&^`>O15%ZEG]-]536-WW89Q+;5P*=Y7T8:`D>"$SC=PA-Y7'9
MEQ!O)Q,P-(`*@5GPQP%4X@&;QPXP&$-WEX$WU8#B8'$HH0$TP5FJAT901Q-S
M!GMR9H1J8X%%J$QJ,W>0-7JTUWB75WB-UP@I:'F2]QD@MW78<'F4)W[54'R&
M-Q(+088=L%E$J!"I9_]XO1-5"=&&AU!\5BB!],:$+.$R4K<."=!R(%"#VE`"
M9!=D=*@0@NAU%P-V[980AP@"%Y,!.2>&'))SG\%T/D>)6$ATD+9B^X,`)'@-
M3'=T2?>)U7!U.E1_5J<_6->'*B>%%T%V]%8`4A(":*<-7?=T=-9^T<!VN)$!
M-.6#J^9P."6,'[>(M(02YT9QBXAR[<9N-B<-$\=O"S%Q)EAO[R8.D$-WU2"-
M`:>-U="-+F:(!D<?OZ1P5$*-S/AO`G(2$X>.U/:.\!B/\CB/]%B/]GB/^)B/
M^KB/_-B/_OB/,%8(C4`3`%F0'-,0,@$^P&B0#!DKY(`;YR,(T21WW)>&WMC_
MD!@I'2)Q&3,522/P&>Y1`)&$&_+@BAEYDNG!$Z,7`O2V8C$Q;H(GDAI`BBA9
MDQ$#?VCT#@C@`>00>M]@DT!Y'B)1$QQ`;QN@42,0#E7WDT'9E*TQE+SDD8X7
M2?+P-:#FE%CI"H*@.!+9"+G&?1>9E6(YEF19EF9YEFB9EFJ92B2',&[YEG`9
MEW(YEW19EW9YEWB9EWJYEWS9EW[YEW7IA649;MY4F(9YF(B9F(JYF(S9F([Y
MF)`9F9(YF3KAB&M9C9=Y<0LYF)FIF9EYE9>I:6H)FFLIFFE)FFIIFFB9:(/@
ME36!$_:1"AK@`0G@`238`4%W`JFS`0EP`H+9";\I_YN;(T.5YP&`%DVUV0&C
MHHO7@)N-4)O/^9SQ(8G4@!.V&0O!"9R=0%.Q&7L[&6?*^9WQ$4VJ>9:)MF,Y
M57$@H'3<-P*.N)ZW=E,-$TWCD`#R=)%PB&&')DDB:5$-8S&#YP<%H)S@YXC,
M>0W2USGG`X<6HQ/4*0W>D``F@#NOL&.OD)_NQ)_GL`'N4!,-49M]R`$.XY6;
M299VTI9ZZ2_H>3'9IYN.$'[/23Z$6#!-593+U#EZXBC*&&0)T$L74RS*I'GV
M06[:UHU'YXJ"!U6'YR@3>@XBU@X/2ACI,Z546J53VC6%=0(9@(`[EH52-8<=
MT`%".G&UV6[@V`@FUPB/Y_]NIH:;LU$"'?`-!=-+"%!5\Y%MXP:C.)53.F,.
M\70((>!Q&I@*Y6F6=B)'XA,;*TIGLB@UBJ4*TM=4-"5[W6F?J7!V'/49?F";
MG74"+^1.0&B9M/,D:>B&:!='B3=C!/IY[!<;E1<+DA6KOI%3&858N"$S#3JB
MD3H(\[0!F'I\LY6IJM=][8!JG26$[C1W\X1S&C`;@M"KQD.#,G1V>7<(3U)1
MUAJ+/!E[(AID^3EX)3J6AQI+IK*GTLE]L_&!US>'WQ`.NWI3E6>A:WA3[[H.
M406$OSA5,K6='*`_-I83DQ=^KAJECA"KDN4;-S5/FH>*6#B>#"NI=L&$GZ.!
MW`;_?C+SJH,J55`5L1K;L=[I'K<:0]\J=.F@8K=J>(@W5=\Z?>$JEG;B;5R&
M+CL&'[Y*59OG,E12,-!7KR'+2S=[A^O*LU$%`B$@H3IAK3V+"(S0HTT5#O)!
M.[XXL,^02U1;M59[M51[2UCH<EG''E[*LPQ+K]?'BE/2"+8Z>%+R5%&5I!>3
M4YUS=C%9$S3J",IT,155`#*%6!FELBE2J)Q9;Y_W))Y%/N/FBAE@`BT81_4W
MD^$'KX>68A0W<S*14T(;L532,%%E>)7'#;R)<^M(N1`+I7+Q#>2WC%_+N`YD
M@I/+HI,[BQBE.%3#@@VX>K>ZMAV;4Y8Z?#GU)/GYA\JBU5DG![%LNZ[;V;)9
MR6C@IQ<ZPZ&*\&_/61ON"4,%6E&..Q-\H6V*]0U4LJM/LK$XQ0$F``)*60Z?
ML:71)%MXVSNT:CQPB+%6@9`XA9-8:"K3F[J&I;WU)V+:A@[`XX%^D"QS6`[A
M8+L>:#C<&F[S1+*FU[VFX`X?Z0$^5%@C0'!\2ZC&BY6H&2L7O"Y>VAH;W$`?
M')09C&`=O"E^:Z*=B6LA#)0C?)8G+*XIC!(O[+(Q?!(S?+QNEL,ZO,,\W,,^
8_,-`W&5%6\-$7,1&?,1(G,1*C&R!```[
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>13
<FILENAME>o38546o3854633.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 o38546o3854633.gif
M1TE&.#EAZP'<`+,``"MAJ=C>ZU]_MDEQL./G\)ZOS_;W^H*8P[?#VI&DR</,
MX.SO]7&,O:NYU<[5Y?___R'Y!```````+`````#K`=P```3_\,E)J[TXZ\V[
M_V`HCF1IGFBJKFSKOG`LSW1MWWBN[WSO_\"@<$@L&H_(I'+);#J?T*AT2JU:
MK]BL=LOM>K_@L'A<*0``A,?B7+@$)(!V"P$XU,Z`@8-C?AP`'GT3>`QO%'4=
M!G\";XH#<@4#!P8/!@F2E!,.`G4&CI"8#W@`>V2FIRYF``T/='$6@J\M#&<+
M-``""@(#?(`."(&`@[F[%0BE&PVD![R1"J0.``J/K:2K%`.%J\[0TM0!`<J&
MJ.3E&<(89@<,?G\%EMD+KH"X\0\!NWOJ`PJ5EPP+$J`Y("#3`P)U``!C(*":
M@04,!B0PH`Z!HD[PW,$#>(B8G8VV__#I>=#'S)HS#2%*?!B14T==#0%$7//N
MTH$%("<L>,/P@211"03ZX<6`@<$)`18@;/`30%!`S"9<,D>UZB`-9N@$D!9'
MJP"C`FW)W-JF0-!F``)$K(;/J`!.XQXH6Y"M&@$&=@@N-5,`G("ERAQ$*^"5
MW2`\>PJ3/$L24)^="OW\7:77Y>&QH@8T,!!'G%/%%,SL053GCQ]``\X,2$/!
MP"[.=DI#%<99CM7;J-!=,(D+0.T_>!K#:?-JTQGA?8`?-V-XPBX%M`BL$=AO
MU`%!%^.8%E5`N6Y$`O*.>F#<L?E*`N181R0(CIU!ZKNC\QXZLL_83X>**EA'
ME9I=MC257_]4Y*6%VX&FZ`;+;`EP)UH"90$@%G%M2&):2>8Y`"%"?_0CP5:C
ML`(<)6\%<(`"@GA60&"#/6B;*'DUY.)]%YIG0%$+V%+BB0P18)E[A\07V",S
M2F!&`SF2Q$\WT[3!$%D[!6#```,D1=&2@GDC!T$(=BF&@F4`0L=H[RSR1@`#
MQ$2A7)+(>-Y%C!!TXP"91)+)6P\\T^`]M$PBB(_A;?:'1F8>8H<9GA3*%)<8
M@GB<6IVH1(NA00X'$ISCT'<1))T<%-$[.HU2IBSJ4,(9*UZFV@6881S00#2H
MJBKKK.:P"H8NG=*JZZY?\NKKK\`B86NPQ!9K+`S#'JOLLLQ^D&S_L]!&"^VS
MTE9K+;#47NM%MMIVBP&WWF8!;KCDCDMN%>:>JVVZZD;!;KO2O@MO$_+.RVR]
M]B:!;[[&[LMO$?[^BZW`6P1,,"H^\I.G-`>]Q5H%!A_L0\02CY$+FIQM90D"
M".P)<<574`SR%PCUN)4H6X'#JL@CW\!RRUML10`"5=*3\LD6O`SS##KO?`5G
M,_.G<0(<>WR(S^XB/>LT?RW<#Z`/'ZVT$SU/G9O5]&+=;-5:H\!UUV%\#38)
M8H^]JME'E(VV%FJOW4';;EL!=]SGT/WKW';GG#<0QPF[]P]X_RU*X&\+W@/A
M>R/.@>)Y,QYWWS0@=`8"DBL$]06.TYTY_]J0TX#S/>@0W3'FAO.P^=B=>Y['
M7UMIAO+G4I>>P^E=ITY#0`;0'!!""*E,NNRS`\\SW+@C(,#N$HIN]%7"N]P\
MLG@KT[093SO\^_.W8-^"[4O0SKGV*W#?/?@\D^^U]XN;'P/Z,(O/!/M@PS^R
M_!K0C[7]![O_OOK(\B^"_OOSW_8$Z"S\U8V`X4/@X@QX0`5ZS8'G8&`#(5@"
M";8+@#JH'#">4;VFZ8V")K#@N3"H@\]ES#?*NQX(1R#"<AVA=:RS65I@Q[P5
MLM"&@SM"\6J&LAFN#(<W7"$)=U`\H:&P:"H$H@=:N"[X22\-'&R8!S^F1!`P
M\5I7G&`5TT?!(?\F;8M+[&(6M0A&,OK/BU(8H\34N"PTIK&,A5,@&\T(1RH2
MT(UOK&/]QJ,^/.91CQ`+#AQ&04A"_LV/?]2C(441`CX^[A1S+)<@8]=(1*Y1
MA#0["!XH9[T/;M&1GF3A)+5F21],"1"?2V$H;0C*;Z5@E$HKI0]HALH\L,*'
M273@(N/X2EBVCPI3HH,:$L`[7*[2?(7T)2_#)\MN-9,'E4L`\@*"Q&,"+YD&
M>YDR!?9,%B1S`P3@16,Z&+4:-J^;KES?-N>%SA6\B"0NB*2LVIG+%ZQSA/)T
M%O:X5K96JBN?^CPG/W5P3VO1$PH`1=!!ZWF'@DYK"<IPE3W/:0/$.;3_C4M(
MS90F>DVQ,>ZBQ5HH"SBA"XZ63J0,W0%(![8$II53!0FU"DI3:KJ8$A0W-J5*
MVVB74Y?13QEY,.DA=VJ$F5Z-"07Q0":=)L67,E)P1J7IX:)EO]0$50.GK$1:
MCC@Z:S[RID7MZ?"X0$O0]=!W7EU;5*4ZU7MQ(9BU/"L-X3!4TPE+K.MS`E#%
MB8%HGG!C7;6CY@+'/KS:$W])[4`X)1#%RZ45=1/3EV$'Z`2K\M6;C2,<_":+
M687:;:WU4P)HN3!:%#B6LE^-K&C[!04&*``Z0N6<XN176G$AE*[Q?-Q'`X@M
M!KH6MKE5J^/H5UNY1>&TG?V>$.S'V0I*L"$/_X`N:E&7.>8V-XA/X,09FI/<
M^&T.?]?]GQ2D&UM2`HQJX2U@&)2A!PTBUYRD/)T!TQM&,/".9JFLIF#OQ],G
M%/>V4K#(!XS7NENB=;]3^R\7J:8K!9]@)!U(#0*0U[NY/M6\:4,H?4,[!<MJ
M`'<.&,`T58E@I#EX`Q+<,!VW(+U^4*^I;*W8B5'L+A7GS,:/G=]JOY@J)D8T
M5MTU\683V24F:O2R"4PP;=.(XT%6@:3D3;*0>0O@(EO!I>5M&7.G,&,B7#&<
MJ\DRR+J\S"KC](I_<0!WI=P^\%*!S'R[0D%<(^8U^A==GK6"0/"`Y`?N#,YE
MUO"9=]7DY3+PBALV+/][]]#83I:88("N[YOIB]?[TFFK@%T>;G7,XS?+E+,$
MEN&!*7E)(C/YNEF,1#BOL0$)GVRKHX8OI$6H1G_VJ@K/(.0[*0#B2P]-OZ2.
M<ZU:&,F5RBV+`AB3\9*!BWXT>HK!KFDAC\KE;1G;U%((9QMR4>>*^M+6I&5B
M3*]]9U_-;9<1)/?[$#T&<$_Z;CAP-XK)/6V^11J[[;YW!5DZO&YB\]^C1+>W
M]8UO,LA[W5F(<I1?>5B!>UG=E23XOH<-\=DYG`I6Y7-PG?O-&E?\6Q_7UYD/
M[M.+P]N*]0[WQTEN7"^9''HO#RFA`6XKEF.AT(>P>0%3CL4V_IL<.,<<S;__
M_7-X!5WF5.VXM-BK`/<Z.MJ`W'34B;B:$.<WL%"/^M&G5@!MN,Z8C];ZU'^@
M:@J#/>N`W/K.%&&482*$FEB7]=C5#K/*H86<,2XCW1,W]ASW_;Q_EWO@,SSX
M"Q=>Y(7?>^,.K_C/,O[PXTL\Y'<\^,9K[O&3]YOD,S\#IC/UO5+_N^4E1A<"
MA/BO)$:[(CE?@ZZ_^F8_W#SK8Z#JUY]=\&*?_0O8;BI,IQ[W:=?]"^S^^:<#
M?_7"7R[FDR_LRC,_"*.G5?35NOSGM]7YUE<M]K-O5]ES'ZS;_W[PO"]^YY&_
M_"&`AR8G!WK#BQ[])6C`I*ZN:??W??H'.UF!7Q?[__##/P0G8W:Q%GKW]W\D
M$(#$E#S`=GQUA'\$LUCC!&-^!T<."%GG9X#]<X$8N'&!5X'Q4WT;F('^%X(<
M^'XDF%<:>((,EX(J>`(>:&4M6((%&(,9H'[%!VT,2($TF`'R!PBHMX`$.'<[
MF`'Z)VH6]H)Y-H064(1RU7\=J(1NX(.^!X3V)X106`$0^&Q.A80'PH56,W1@
M&(9B.(9D6(9F>(9HF(9JN(9LV(9N^(9P&(=R.'17&%!UB(%>>(<8I8<&F(=\
MR%I_"']^&(C!,HA7J`QM<#DN=1%`AE->0C,*PQ0`H1*WA!*!2!=K$``I5"4=
M4P#O$&9)B!NN@2*P=@"F>)8`*9,CIDB(!R%B/E2$V:`P,-@EKG$`PN0*P!`9
MG($,?.@:N:@R16@Y:#"+!Z((!7&+DR,*P$`S1W&'-R('FQ@`'<,`E",AQ'@;
MKI%4*7.*J&@@#%!_5U@Y!*"(:3*.S^%R77(2QR&).1(1K)")K*@LAAB/A$:/
BWS>/]C@K^)B/JK*/_(B._QB0`CF0!%F0!GF0")F0$0``.S\_
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>14
<FILENAME>o38546o3854634.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 o38546o3854634.gif
M1TE&.#EAB0!+`-4``%E65]W<V_;T\]74U.[M[H%_?\O*RZJGJ7AV=FEF9^;E
MYKJYN9F7EW%N;XB'A^GIZ:"?G\/"PY&/D,K)R6)@8;.RLI^=G6QJ:F%>7O7S
M\G9S=-_?WHR*BOCV]8J(B=#/SFQI:7%P<-;6U:VLK(!^?O'P\)63E,+`P>3D
MXY.1D;^^O^KJZJ:DI,C'Q[2SLV9C8X:$A+6TM&!=7?___P``````````````
M`````````````````````````````````"'Y!```````+`````")`$L```;_
MP)EP2"P:C\BD<LEL.I_0J'1*K5JOV*QVR^UZO^"P>$PNF\_8@,74`"0NDHD`
M3:_/#*D&[+`0$0(!)PP@"W:&800F&`4+&4D"!0Z'DUH?#"\,*$T"'`:4GU,$
M'@DQ<T\#`*"J3@<))J91``JKM$<&)!*:5`@?M;XS"AX4`U>,O[05(`=9!;W'
MGQD.&K-9%`'/E!\)+DXM#`P$226IV(<6#1M-"Q;7%05)!N_E=0&X)4S>UT(L
M$DDL#//H!*!0@4FB9402$$,2)^"9`"\*+2%`(D*1"B&4('`8!M:,!=::7-`W
MA,"P)"HD<>028`0"$`D`8J2F1``[(P@*)G'08J66_PP%*!QX(`1``0WA)DXS
M8F%C$@4`//H,Q2(!BZ3``#B0BH0#S2$C$MQ+,@+"5"L1*#!P1*2`O"4/+G@J
ML@%#.HULST8AH*'!0B(0*&!]=$&%$044+"J9T$\O%`$&E'4P$D'&WZ<DYA(1
M0$)GD@X-2#HVZ&'I8;4&"RC>K`&A$@,61CL)``("UQD$8*Y@DF)UR1"N-=Z6
M7<0`!8E'"C3(F\2"V2("+B!78B$X\2,00'PMP@*#:"0C`!8A`+P)"@QCKV,W
M?61`@KM*5#@E,G"Z$@B7U0]948`#5P$G0#`"!B?@@\!N1!@0@F9+&,"!?D9D
M0$I[%V!``0``0$"4$AAL./_$`2$U$<`%PQ&G38&4R2#!"1@@0,`)#8PPV'X(
MB,9)`]L]4B.$1+CG(1%Q'7``AC2!..,,?FU60&-.J,;C$"Q^-X0#`,`@089%
M*(#`7R44P,T0`H3@&1,!&//D#.[!-QX`%!C@WA%\S25!;$.@XAM<"4QPY@P/
MM)G$D.D48-T0&R20P0$J">'C$WS9IU\`#3!(Q`H2I)#`#")@H,0""30PE@`N
M(*!+$PITLF<&"!AFA`"(/A!`*@ZHBD0$`.@Y@TU,-G$`B7MV@(!XQ:6PP&0S
M8"`!""4:@(`#_0C0VQ,!.##"GD(XX$%Q#S!@@4<F8#G#!A6H.8`U=K+'A`D.
M_/C_Y`(AF`)@!"Z)<!@&%A#``8:N4>2)```P4"(1)4"0@@'$[HG80@,D+%T2
M%VJU`0"J0E*0`!X`<*01`UC0$+5#<`!!!P:TL$`!+)1(```O))!"`0!@@`(G
M"+F@0`)2"D&`)=KFN"<J)E0P@0,',+?J!0`<,`&&"``P@`=O%25:!DLGH)JZ
M',]00DP",U`S?2$X`!7*!F`(`@`N&"#"`"*\:D$%*4A@Y0);<TR`QD:9<'$1
M`YDUI%$68-C``1`P[98&%$"@0MQ5SX#"``M48!2"2]!600<L`[#`O1C"4($+
M%7PPP`H&7)IX$@0<$($'#<20))E%/Y`T`!$<#4`#'V%(_\P&(/(Z.A$=!&``
M"PC`$,!DF9'Y`@0K-!!"`A&(@/0*[(;-RPPM=)K>Z`%,<+H&$#`'P:!97@!!
MH;-O8`$&6LU0P06B8.C`^0"H674`"9\3M!$#W2U$`P6<#(`%7P/`M2;0(51<
M"0`7<,`%$M<!!:`@`@MH``,D580#^.<()7``"1;P`@3T9`81:`:F0C,#$#2@
M`Q@R@.8X1K\!,$8#=TI"6BH@-`BXX21&>$`!B*&(!T"%2N3@D0#2%H`60,!C
MB(/3/TBPK.6)[6X-X,8'R%8[;:1L<NI)V`0&8`(/;`P+CD/@<`2@`4\L0@@,
MP-`")S`*.ITE`"*(0``BP``'#/_L7WL9F[_(1`)JB$""L!"!`T"`18?$;@`/
M.$`!7)%$*A`-?%50P")M]0L4&,``"PC9$:4U/#"<;#Y<^$`#3*4*`4S@`"IP
MH0H*<`$&E*(,,<@/%QR'`*H]9``G",`'(L`"!R!``A5HI!)60(#K?8(`85D`
M'KFP@0DL8`+9.X`&C+(`6T[A@`#HBULBH3$++&``!IB`FZ"Y`0)D0``/0&3"
MT.G#=M)/`=9$0@88H`'Y>0$%!R`!T#B```1`()<%TX((%O`!`UA0`O_X!@,D
MT$\$*,^A&(JH1"<*Q(@B(`1M2(!$@U>`$2Q@5'=`P+2^$`ST+>(`!A`:+3(0
MCF4FP85)S[0AAN)`#0D@Q0L!,%T\$R>``4!@FAKP0`0N@`"5[LX,'1A`/C&4
D`&<<U1"'H@`&9/E4-'"B7U6=A`KBE]5#&+.K8`VK6,L1!``[
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>15
<FILENAME>o38546o3854611.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 o38546o3854611.gif
M1TE&.#=A00`C`/<```````@("!`0$!@8&"$A(2DI*3$Q,3DY.4)"0DI*2E)2
M4EI:6F-C8VMK:W-S<WM[>X2$A(R,C)24E)R<G*6EI:VMK;6UM;V]O<;&QL[.
MSM;6UM[>WN?GY^_O[_?W]_______________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M_____________________RP`````00`C`$`(_@`_"!Q(L*#!@P@3*ERX$(("
M#0(W)%#H(`!$AA@3<B``P8/`#`PJ1%00`0)!#PLF9.S080&##Q4&6/"8\>`$
M"@(U$`B`X0,"!AY*#G3P<B```ST#*%"P@<`%`QN48K`0`(""F0,U0#!0H(`!
M`Q`F9*B9T4*%``C`<B#+MJW;MS4A`$!P,*S!I0K::A@`]X,%!P4;#*A`]\,#
MG@0Y<#B0`<*##WM?>CA@X4.$`!DT%"!`LZ]G@1T(:F"`8.SGTZA39UW+D`&!
MT*H78CC0DV!3A!<(1(BM<+),A!86%-R+P73O"`H$/,!@``#@OAH6P!9X`8"`
MVA\63#0800`!Z@-,_EZ8V*'`<\\83`YD,-?!`PT)'AQ@_6&"`L7C.VP=L`$#
M@0(=5.#<!U49\(`%`9+V'7</;("0!Q<=A(`$""!`'UFC.4```P[RQE8%"GBP
MP0,&X.3AB2BFJ.**+'[8XD$C0L!``KLIY%J'+W[000(2%&1`0A0((%*.,/%G
M4`:%G>1!`"KEV!(`ZAGT6D$4$#`E1AU<<`$$!)S'5E-0#53!`@THT),!$7ZP
MT9`+67``!3,:9E5G9'F`'08-%#2``70J4-1P$6Z0UP=$?8`!`-AYMD":V2E@
MD4`3"#`=:`M`4(!(&PBP@`<<H)E=`1QXP*%GH!(T`0`1$*`!2@,.).A]DG#"
M%$`!'TP&&`4`6(!!50D04%L&!M28$0,7#(2K`!N$IVJI`D$@G$"7(D#!`A10
M,$`!%N@$P`0'%"!<!@D4$$$''`C`0(0=8!#!`,4:Q$$!#"R@7:(^A3:;L#G1
MU$`%$"J%HYH2##``G;Q1X$"[;(UV[@?_$FG0!OSJZ``"E3F\$'P01)#``A5;
+O-!-"72,8D```#L_
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>16
<FILENAME>o38546o3854612.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 o38546o3854612.gif
M1TE&.#=A?0`P`/<```````@("!`0$!@8&"$A(2DI*3$Q,3DY.4)"0DI*2E)2
M4EI:6F-C8W-S<WM[>X2$A(R,C)24E)R<G*6EI:VMK;6UM;V]O<;&QL[.SM;6
MUM[>WN?GY^_O[_?W]___________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M_____________________RP`````?0`P`$`(_@`]"!Q(L*#!@P@3*ES(L*'#
MAQ`C2A0H04``"1,;8LB0L:/'AAD&%+#PD6`'!P,:;#`X@0"%DC`S7BB0H$-,
M@1L0*+!)$$*"!AQN"FVX84&`"0-/!E`P(($#`Q(B*#`0`````@\8=BC@X.!6
M!1H>`!!@%4`"`@(84"WP@`$"``$J$-R@X&H$"0P&&&`@@62#`!<,7J@@P<';
M``80/-"0L$.$H$,C2YY,N;+ERR4[-!#@@&?,#`P",/!,`4!@S),WG$5Z$\.`
MT0=1DD0]E`,#`7*'5@C`42"&O9YIW]S`H,!+X<B3*U_.O+GSYQ$O-`@.O3I#
MX@$"/*!>DC@`!A@X_IBV?K,"@`608UH0@*#WP`T"6)/O6(&`2Z$1XA\LBH#Q
M_(D;_(7131PT,))!&"R0@'__280!`6`--0%@<S&P6(,9=6`4!`1I()]'KO76
M008K"73!`04<H`&#$6D@@`#N">>8``N4.-`$#C"0'@8L0N2`2QA$T,`!$&YP
M4@,?)I4>@PD&L(!:YW%'T`)E"6!``GQ%D)M$'"PPP&P8ABGFF&26:>:9:*:I
MYIK5=0!!`#6Q"5U.`!@0XV</#&`5!G)>1P``!?`IE&8+8,#34WTJ9`$!!O3X
M48`!=$80!10F:I!F1PE55``<%H2!``U86E"```!5'DUW"A1!`:>)*A`$]>>E
MUQT"[1V$`5=2RGD!>XYZ-&&2)AXPG:LX$3!`JAYQ@(`!W#E0`+"6.J#=4`^&
M.A<""^0J9P</"-"I4!0,P"($"AQ'K$`4$+``LA_=*J@'#2C0*DP:+##O<HLB
MX-D&\#7ZD08#0$M7`'I:-<`&&%S0:ZY_O:M!`P@47"I#'%CPU+L/95"``!B+
M5>=L935@@4T5-R3!``AA4*<!A7H`@04K30#``Q:8QU4&,F<ET'H$0(#``0<\
M,"^5$VQ000(1EP7```@@J:U",QEPKV0=3*``4B/"E,$#$%S(4,(<R%H2!`3`
4=BYR&Y1]]MILM^WVVW"+&1```#L_
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>17
<FILENAME>o38546o3854613.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 o38546o3854613.gif
M1TE&.#=A;``C`/<```````@("!`0$!@8&"$A(2DI*3$Q,3DY.4)"0DI*2E)2
M4EI:6F-C8W-S<WM[>X2$A(R,C)R<G*6EI:VMK;6UM;V]O<;&QL[.SM;6UM[>
MWN?GY^_O[_?W]_______________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M_____________________RP`````;``C`$`(_@`["!Q(L*#!@P@3*ES(L*%#
MA1D"`"`8(<"!"P@M!##`H0$`C`]#BASI,`$```0J*#1YD@$&@AX!,,APTH%,
M@0,$:""HP<#-#AD@))`(`()""R<S$.1P`(`"@Q,`!&#`H(&%AC0!J"0H8<!)
M!"])AHP`(,$&L6C3JEW+MJW;MW#?VGS`M&Q""0`>=.!0P(#2@1E,2ABXX"2`
MJP4U$'`*,BY%E!$V+*:PT*O4P0@5`$!PL"GG#@A:$@;0H.!BQ!H*?UY(EL"&
M"Q,BJ"Q0%H.&"0T*.-[-N[?OW\`=6CA@%"$&"`02!%]N\`(``0(WY`QK<$.!
M`6<9%&58H?A!#(4-_@#'H/TD9HA2(6P^B]#G!`P$`C1^D#.`R=(FWTLUZ!$!
M>[8:`4"=0#8!(,$$BY7&$%[;*;384P:9%``&'!!%P%^T14"0=09R&$`#`R:D
MW@`[`>;5!`9A<!**(GDTDV8G!:!`8Q@,L!I!FBEX@0$,<$"0:`-5B)(`!,!X
MGD(5(,`C!!)(\)<%$40IVUH7,$`90A+,Q-R67';IY9=@ABGFF&26>=!_9L*%
M@0,%32"1=P590*1/5Z;IEHH3"8041PBYB0`'&@000(EI9?`7<!DTZ1!9"^S5
M%)P%%4;9!0$0X"-!(<9T*$$9+.;4;Q0(`,``&3;DE06%+7!I=0.(%Y@!^`,&
M>-,&/D4@:H@=-*5@6QDT0.A`ZET8V$\+J2>J`&@65,%)$`@00)W.,4NG31IJ
M!^D&HOZ*00,&U(E0!`2$B(&HNPX4FF$`:-A0H"<AAE!Y"[@K$*6;=5#@9CX^
M`$"C!*G'F0;E[1N!!,DNU12;!!6FG$&B,D!2>=X:M.Q'!B&U'06&A84Q=C`!
M(%X'!00P`*0(29=N01Y]7!!-_HV$,5%E$;RR1"P2A/')&[2TZF)PXNDCN">I
MNU!YGGK<0<"&Z:96:`YW<,$#M)W$[U$1_&K0``'4+%`&45+&X)%HK;H6Q@0<
7Q($$$BWL&ZYVMNWVVW#'+??<(P4$`#L_
`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
