PhosCan Chemical Announces Results for Quarter Ended April 30, 2009

TORONTO, ONTARIO, Jun 10 (MARKET WIRE) --
(All dollar amounts are expressed in Canadian currency unless otherwise
noted.)

PhosCan Chemical Corp. (TSX: FOS) announces its financial and operating
results for the quarter ended April 30, 2009.

Financial Results

PhosCan reported a net loss for the quarter ended April 30, 2009 of
$729,595 compared to $1,367,989 during the same period of the previous
year. The decrease in net loss of $638,394 was primarily due to a
decrease in expenses, which was partly offset by an increase in reported
interest income.

Expenses for the quarter ended April 30, 2009 were $816,553, a decrease
of $553,107 from expenses of $1,369,660 during the same period of the
previous year. The decrease was primarily due to a $958,348 decrease in
stock option compensation, partly offset by a $348,761 increase in
payroll expenses, which were included in general and administrative.
During the quarter ended April 30, 2009, no stock options were granted as
compared to the 2,890,000 stock options granted during the same period of
the previous year to new and existing directors, new officers, employees
and a consultant of the Company. Payroll increased during the quarter
ended April 30, 2009 as a result of the President and CEO becoming a
salaried employee in May 2008, the hiring of a Chief Financial Officer in
March 2008, and the expensing of a portion of the termination benefits
paid to the Executive Vice President, Operations and Projects whose
employment with the Company terminated on March 31, 2009.

Reported interest income increased by $87,149 to $87,149 for the quarter
ended April 30, 2009. Prior to the announcement by the Company on
December 8, 2008 that it is deferring several tasks related to the
development of the Martison Project, interest income was capitalized to
the Martison Project because the Company's cash and cash equivalents were
held primarily for the purpose of developing the Martison Project.
Subsequent to the December 8, 2008 announcement, a portion of the
Company's cash and cash equivalents are not considered to be held
primarily for the purpose of developing the Martison Project and interest
earned on this cash was therefore reported as income.

Cash and cash equivalents plus short-term investments decreased by
$2,054,068 during the quarter ended April 30, 2009 to $70,707,369 while
working capital decreased by $1,642,535 to $70,310,077. The decreases
were primarily due to expenditures on the Martison Project and general
and administrative expenses. Working capital decreased less than cash and
cash equivalents plus short-term investments because accounts payable and
accrued liabilities decreased by $450,921 as a result of reduced
development activity at the Martison Project during the quarter ended
April 30, 2009.

Capitalized expenditures on the Martison Project were $85,717,559 at
April 30, 2009, an increase of $1,059,571 from January 31, 2009. The
increase is primarily due to the ongoing work, as described below, under
the reduced development program announced on December 8, 2008.

PhosCan had no long-term debt at April 30, 2009 and has met all of its
financial obligations. The Company expects that existing working capital
will be sufficient to advance the Martison Project under the reduced
development program, as well as enable the Company to review a broad
range of corporate development opportunities that have the potential to
enhance shareholder value. PhosCan will be required to raise a
significant amount of additional funds should it elect in the future to
proceed with full-scale development of the Martison Project.

Operating Results

Since the announcement on December 8, 2008 that PhosCan is deferring
several tasks related to the development of the Martison Project,
management and the Board have continued to be prudent and disciplined and
have worked to achieve the right balance between advancing the Martison
Project and preserving the Company's cash. In that regard, under a
reduced development program, PhosCan continued to advance the following
aspects of the feasibility study during the quarter ended April 30, 2009:

- Biological studies

- Taking the Martison Project mine claims to lease

- Bench and pilot plant beneficiation testing of phosphate ore from the
Martison Project

- Phosphoric acid pilot plant testing of flotation concentrate produced
from the pilot plant beneficiation test program to collect critical data
for engineering design

- An investigation into the opportunity to purchase from the Crown land
required for the conversion complex

The following corporate developments were also completed during the
quarter ended April 30, 2009 and previously disclosed:

- Shareholders' rights plan approved by shareholders

- Reduction in stated capital, in order to enable PhosCan to undertake a
normal course issuer bid, approved by shareholders; amount of reduction
and effective date to be determined by the Board of Directors

- Listing of the Company's common shares on the Toronto Stock Exchange

- Agreement signed with IAMGOLD Corp. for the evaluation of the niobium
at the Martison Project

Outlook

PhosCan believes it has sufficient funds to complete the activities under
the reduced development program. The Company will be required to raise a
significant amount of additional funds should it elect in the future to
proceed with full-scale development of the Martison Project.

Upon completion of the reduced development program, PhosCan expects to
have a significant amount of uncommitted cash on hand. The Company has
been actively sourcing and reviewing a broad range of corporate
development opportunities and is confident it will be able to execute on
one or more that have the potential to enhance shareholder value.

About PhosCan

PhosCan is engaged in the development of the Martison Phosphate Project,
which consists of the Martison Phosphate Deposit and a planned phosphate
mine, beneficiation plant, conversion complex and solid fertilizer
production facility. The Martison Deposit is located 70 kilometres north
of Hearst, Ontario. The Company's proposed operations will be
strategically located in proximity to the fertilizer markets in the
agricultural regions of western Canada and mid-western United States with
ready access to excellent infrastructure including rail, power and labour.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements with respect to
the Martison Phosphate Project, and matters concerning the business,
operations, strategy, and financial performance of PhosCan. These
statements generally can be identified by use of forward-looking words
such as "may", "will", "expect", "estimate", "anticipate", "intends",
"believe" or "continue" or the negative thereof or similar variations.
Such forward-looking statements are qualified in their entirety by the
inherent risks and uncertainties surrounding future expectations,
including that the estimates and projections regarding the Martison
Project are realized. Forward-looking statements are based on a number of
assumptions which may prove to be incorrect. Unless otherwise stated, all
forward looking statements speak only as of the date of this press
release and PhosCan does not undertake any obligation to update such
statements except as required by law.

The TSX has not reviewed and
does not accept responsibility for the adequacy or accuracy of this
release.

Contacts:
PhosCan Chemical Corp.
Stephen Case
President & CEO
(416) 972-9222

PhosCan Chemical Corp.
James Pringle
Vice President Finance & CFO
(416) 972-9222

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