METHANEX CORPORATION 2012-07-27 T-11:09

NEWS RELEASE

A Responsible Care” Company

Methanex Corporation

1800 – 200 Burrard St.

Vancouver, BC Canada V6C 3M1
Investor Relations: (604) 661-2600
http://www.methanex.com

For immediate release

METHANEX REPORTS STRONGER EBITDA IN THE SECOND QUARTER – PROJECTS IN NEW ZEALAND AND
LOUISIANA DRIVING FUTURE GROWTH

JULY 25, 2012

For the second quarter of 2012, Methanex reported Adjusted EBITDA’ of $113 million and Adjusted net income’ of $44
million ($0.47 per share on a diluted basis’). This compares with Adjusted EBITDA’ of $93 million and Adjusted net
income’ of $39 million ($0.41 per share on a diluted basis’) for the first quarter of 2012.

Bruce Aitken, President and CEO of Methanex commented, “Overall methanol demand has remained good and the pricing
environment has been relatively stable, despite some demand softness in certain derivatives. We reported higher EBITDA in
the second quarter due primarily to higher sales of Methanex-produced methano!l.”

Mr. Aitken added, “Industry demand growth is expected to significantly exceed new capacity additions over the next few
years and we have a number of growth projects in place to capitalize on the positive industry conditions. In New Zealand,
the recent restart of a second plant increases our cash generation capability and we are investigating further initiatives
which could increase annual production capacity by up to 900,000 tonnes by the end of 2013. We also announced today
that we have reached a final investment decision to proceed with the project to relocate an idle Chile facility to Geismar,
Louisiana. The project is on track to add one million tonnes of annual production capacity by the end of 2014.”

Mr. Aitken concluded, “With over US$600 million of cash on hand, an undrawn credit facility, a robust balance sheet, and
strong cash flow generation, we are well positioned to repay our $200 million bond coming due in August, invest in the
Louisiana project and other strategic opportunities to grow the Company, and continue to deliver on our commitment to
return excess cash to shareholders.”

A conference call is scheduled for July 26, 2012 at 12:00 noon ET (9:00 am PT) to review these second quarter results. To
access the call, dial the Conferencing operator ten minutes prior to the start of the call at (416) 340-8018, or toll free at
(866) 223-7781. A playback version of the conference call will be available for three weeks at (905) 694-9451, or toll free
at (800) 408-3053. The passcode for the playback version is 2530127. There will be a simultaneous audio-only webcast of
the conference call, which can be accessed from our website at www.methanex.com. The webcast will be available on our
website for three weeks following the call.

Methanex is a Vancouver-based, publicly traded company and is the world’s largest supplier of methanol to major
international markets. Methanex shares are listed for trading on the Toronto Stock Exchange in Canada under the trading
symbol “MX”, on the NASDAQ Global Market in the United States under the trading symbol “MEOH”, and on the foreign
securities market of the Santiago Stock Exchange in Chile under the trading symbol “Methanex”. Methanex can be visited
online at www.methanex.com.

– more –

FORWARD-LOOKING INFORMATION WARNING

This Second Quarter 2012 press release contains forward-looking statements with respect to us and the chemical industry.
Refer to Forward-Looking Information Warning in the attached Second Quarter 2012 Management’s Discussion and
Analysis for more information.

1 Adjusted EBITDA, Adjusted net income and Adjusted diluted net income per common share are non-GAAP measures which do not have any standardized meaning

prescribed by GAAP. These measures represent the amounts that are attributable to Methanex Corporation shareholders and are calculated by excluding amounts
associated with the 40% non-controlling interest in the methanol facility in Egypt, the mark-to-market impact of items which impact the comparability of our
earnings from one period to another, which currently include only the mark-to-market impact of share-based compensation as a result of changes in our share price,
and Louisiana project relocation expenses. Refer to Additional Information – Supplemental Non-GAAP Measures on page 13 of the attached Interim Report for the
three months ended June 30, 2012 for reconciliations to the most comparable CAAP measures.

-end-

For further information, contact:

Jason Chesko
Director, Investor Relations
Tel: 604.661.2600

ME rmapex Share Information Investor Information

Methanex Corporation’s common shares are listed for All financial reports, news releases

A Responsible Care” Company trading on the Toronto Stock Exchange under the and corporate information can be
Interim Report symbol MX, on the Nasdaq Global Market under the accessed on our website at
For the symbol MEOH and on the foreign securities market of www.methanex.com.
Three Months Ended – the Santiago Stock Exchange in Chile under the trading
June 30, 2012 symbol Methanex. Contact Information
Methanex Investor Relations
AtJuly 25, 2012 the Company had Transfer Agents £ Registrars 1800 – 200 Burrard Street
93,827,060 common shares issued CIBC Mellon Trust Company Vancouver, BC Canada V6C 3M1
and outstanding and stock options 320 Bay Street E-mail: investf4methanex.com
exercisable for 3,933,537 additional Toronto, Ontario, Canada M5H 4A6 Methanex Toll-Free:
common shares. Toll free in North America: 1-800-387-0825 1-800-661-8851

SECOND QUARTER MANAGEMENT’S DISCUSSION AND ANALYSIS

Except where otherwise noted, all currency amounts are stated in United States dollars.

FINANCIAL AND OPERATIONAL HIGHLIGHTS

= For the second quarter of 2012, we recorded net income attributable to Methanex shareholders of $52 million compared
with $22 million for the first quarter of 2012 and $41 million for the second quarter of 2011. Adjusted net income’ for
the second quarter of 2012 was $44 million ($0.47 per share on a diluted basis’) compared wtih $39 million ($0.41 per
share on a diluted basis’) for both the first quarter of 2012 and the second quarter of 2011. A reconciliation of net
income attributable to Methanex shareholders to Adjusted net income is as follows:

Three Months Ended Six Months Ended

Jun 30 Mar 31 Jun 30 Jun 30 Jun 30

($ millions) 2012 2012 2011 2012 2011

Net income attributable to Methanex shareholders $ 52 $ 22 $ 41 $ 74 $ 75
Mark-to-market impact of share-based

compensation, net of tax (10) 17 (2) 7 1

Louisiana project relocation expenses, net of tax 2 – – 2 –

Adjusted net income ‘ $ 44 $ 39 $ 39 $ 83 $ 76

= Werecorded Adjusted EBITDA!’ of $113 million for the second quarter of 2012 compared with $93 million for the first
quarter of 2012. The increase in Adjusted EBITDA’ was primarily driven by an increase in sales of Methanex-produced
methanol from 926,000 tonnes in the first quarter of 2012 to 1,001,000 tomnes in the second quarter of 2012.

= Global methanol production for the second quarter of 2012 was 1,034,000 tonnes compared with 945,000 tonnes for the
first quarter of 2012.

= Average realized price for the second quarter of 2012 was $384 per tonne compared with $382 per tonne for the first
quarter of 2012.

= During the second quarter of 2012, the Board of Directors approved a 9 percent increase to our quarterly dividend to
shareholders, from $0.17 to $0.185 per share, and we paid a quarterly dividend of $17 million.

= We recently completed re-start activities at the second Motunui facility in New Zealand and successfully commenced
production on July 1, 2012. The addition of this second facility adds 0.65 million tonnes of annual production capacity
and increases the Motunui site capacity to about 1.5 million tonnes per year.

= In July 2012, we reached a final investment decision to proceed with the project to relocate an idle Chile facility to
Geismar, Louisiana. The project will add one million tonnes of annual production capacity and is expected to be
operational by the end of 2014. We have commenced dismantling of the plant and expect to receive all key permits by
the end of 2012.

These items are non-GAAP measures that do not have any standardized meaning prescribed by GAAP and therefore are unlikely to be comparable to similar
measures presented by other companies. Refer to Additional Information – Supplemental Non-GAAP Measures on page 13 for a description of each non-GAAP
measure and reconciliations to the most comparable CAAP measures.

METHANEX CORPORATION 2012 SECOND QUARTER REPORT PAGE 1
MANAGEMENT’S DISCUSSION AND ANALYSIS

This Second Quarter 2012 Management’s Discussion and Analysis (“MD8A”) dated July 25, 2012 for Methanex
Corporation (“the Company”) should be read in conjunction with the Company’s condensed consolidated interim financial

statements for the period ended June 30, 2012 as well as the 2011 Annual Consolidated Financial Statements and MD8A
included in the Methanex 2011 Annual Report. Unless otherwise indicated, the financial information presented in this

interim report is prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the

International Accounting Standards Board (IASB). The Methanex 2011 Annual Report and additional information relating to

Methanex is available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

FINANCIAL AND OPERATIONAL DATA

Three Months Ended

Six Months Ended

Jun 30 Mar31 Jun 30 Jun 30 Jun 30
($ millions, except where noted) 2012 2012 2011 2012 2011
Production (thousands of tonnes) (attributable to Methanex shareholders) 1,034 945 1,050 1,979 1,851
Sales volumes (thousands of tonnes):
Produced methanol (attributable to Methanex shareholders) 1,001 926 970 1,927 1,818
Purchased methanol 569 691 664 1,260 1,499
Commission sales ‘ 276 198 231 474 403
Total sales volumes 1,846 1,1815 1,865 3,661 3,720
Methanex average non-discounted posted price ($ per tonne) ? 452 437 421 444 428
Average realized price ($ per tonne) 3 384 382 363 383 365
Adjusted EBITDA (attributable to Methanex shareholders) 4 113 93 102 206 183
Cash flows from operating activities 135 93 78 229 202
Adjusted cash flows from operating activities (attributable to
Methanex shareholders) * 110 89 86 199 167
Net income attributable to Methanex shareholders 52 22 41 74 75
Adjusted net income (attributable to Methanex shareholders) 4 44 39 39 83 76
Basic net income per common share (attributable to Methanex shareholders) 0.56 0.24 0.44 0.80 0.81
Diluted net income per common share (attributable to Methanex shareholders) 0.50 0.23 0.43 0.78 0.80
Adjusted diluted net income per common share (attributable to
Methanex shareholders) * 0.47 0.41 0.41 0.88 0.81
Common share information (millions of shares):
Weighted average number of common shares 94 93 93 93 93
Diluted weighted average number of common shares 95 95 95 95 94
Number of common shares outstanding, end of period 94 94 93 94 93

that we do not own.
by sales volume. Current and historical pricing information is available at www.methanex.com.

volumes of Methanex-produced (attributable to Methanex shareholders) and purchased methanol.

Commission sales represent volumes marketed on a commission basis related to the 36.9% of the Atlas methanol facility and 40% of the Egypt methanol facility
Methanex average non-discounted posted price represents the average of our non-discounted posted prices in North America, Europe and Asia Pacific weighted
Average realized price is calculated as revenue, excluding commissions earned and the Egypt non-controlling interest share of revenue, divided by the total sales

These items are non-GAAP measures that do not have any standardized meaning prescribed by GAAP and therefore are unlikely to be comparable to similar

measures presented by other companies. Refer to Additional Information – Supplemental Non-GAAP Measures on page 13 for a description of each non-GAAP

measure and reconciliations to the most comparable GAAP measures.

METHANEX CORPORATION 2012 SECOND QUARTER REPORT
MANAGEMENT’S DISCUSSION AND ANALYSIS

PAGE 2

PRODUCTION SUMMARY

Q2 2012 Q1 2012 Q22011| YIDQ22012 YTDQ22011

(thousands of tonnes) Capacity’ Production Production Production Production Production
Chile 1, 11, lll and IV ? 950 82 113 142 195 325
New Zealand ? 558 210 174 207 384 410
Atlas (Trinidad) (63.1% interest) 288 264 127 263 391 526
Titan (Trinidad) 225 196 215 186 411 307
Egypt (60% interest) 190 164 202 178 366 209
Medicine Hat 118 118 114 74 232 74
2,329 1,034 945 1,050 1,979 1,851

The production capacity of our facilities may be higher than original nameplate capacity as, over time, these figures have been adjusted to reflect ongoing
operating efficiencies.

In July 2012, we reached a final investment decision to proceed with the project to relocate an idle Chile facility to Geismar, Louisiana. The Chile capacity in the
above table includes 1.0 million tonnes of annual production capacity, which is being relocated to Louisiana (refer to the Chile section below for more
information).

The production capacity of New Zealand represents the two 0.85 million tonne facilities at Motunui and the 0.53 million tonne facility at Waitara Valley. In July,
we restarted the second Motunui facility, but due to current distillation capacity constraints at the Motunui site, the combined production capacity of both plants
is approximately 1.5 million tonnes, compared with the combined nameplate capacity of 1.7 – 1.9 million tonnes, depending on natural gas composition (refer to
the New Zealand section on page 4 for more information).

Chile

We continue to operate our Chile facilities significantly below site capacity. This is primarily due to curtailments of natural
gas supply from Argentina – refer to the Management’s Discussion and Analysis included in our 2011 Annual Report for
more information.

During the second quarter of 2012, we produced 82,000 tonnes in Chile operating one plant at approximately 30% of
capacity. We continue to work closely with Empresa Nacional del Petroleo (ENAP) to manage through the seasonality of
gas demand with the objective of maintaining our operations throughout the winter season in 2012.

Our primary goal is to progressively increase production at the Chile site with natural gas from suppliers in Chile. We are
pursuing investment opportunities with ENAP, GeoPark Chile Limited (GeoPark) and others to help accelerate natural gas
exploration and development in southern Chile. We are working with ENAP to develop natural gas in the Dorado Riquelme
block. Under the arrangement, we fund a 50% participation in the block and, as at June 30, 2012, we had contributed
approximately $111 million. Over the past few years, we have also provided funding to support and accelerate GeoPark’s
natural gas exploration and development activities in southern Chile. GeoPark has agreed to supply us with all natural gas
sourced from the Fell block under a ten-year exclusive supply arrangement that commenced in 2008. During the second
quarter of 2012, substantially all production at our Chilean facilities was produced with natural gas supplied from the Fell
and Dorado Riquelme blocks. We are also participating in other exploration blocks with international oil and gas
companies and as at June 30, 2012, we had contributed $14 million for our share of the exploration costs.

While significant investments have been made in the last few years for natural gas exploration and development in southern
Chile, the timelines for significant increases in gas production are much longer than we had originally anticipated and
existing gas fields are experiencing declines. As a result, the short-term outlook for gas supply in Chile continues to be
challenging.

We announced today that we have reached a final investment decision to proceed with the project to relocate an idle Chile
facility to Geismar, Louisiana and we are also examining the viability of other projects to increase the utilization of our
Chilean assets.

The future operating rate of our Chile site is primarily dependent on demand for natural gas for residential purposes, which
is higher in the southern hemisphere winter, production rates from existing natural gas fields, and the level of natural gas
deliveries from future exploration and development activities in southern Chile. We cannot provide assurance that we,
ENAP, GeoPark or others will be successful in the exploration and development of natural gas or that we will obtain any
additional natural gas from suppliers in Chile on commercially acceptable terms. As a result, we cannot provide assurance
in the level of natural gas supply or that we will be able to source sufficient natural gas to operate any capacity in Chile or

METHANEX CORPORATION 2012 SECOND QUARTER REPORT PAGE 3
MANAGEMENT’S DISCUSSION AND ANALYSIS

that we will have sufficient future cash flows from Chile to support the carrying value of our Chilean assets and that this will
not have an adverse impact on our results of operations and financial condition.

New Zealand

During the second quarter of 2012, we operated one Motunui facility in New Zealand and produced 210,000 tomnes,
which represents full capacity for one Motunui facility. In July, we restarted a second Motunui facility, which adds 650,000
tonnes of annual production capacity to our New Zealand operations and brings the current site capacity to approximately
1.5 million tonnes. We are currently assessing the feasibility of debottlenecking the Motunui site and the potential to restart
our nearby 530,000 tonne Waitara Valley plant which could add a further 900,000 tonnes of annual production capacity in
New Zealand by the end of 2013.

Trinidad

In Trinidad, we own 100% of the Titan facility with an annual production capacity of 900,000 tonnes and have a 63.1%
interest in the Atlas facility with an annual production capacity of 1,150,000 tonnes (63.1% interest). The Titan facility
produced 196,000 tonnes in the second quarter of 2012 compared with 215,000 tonnes in the first quarter of 2012.
Production in the second quarter of 2012 was lower than the first quarter of 2012 due to minor unplanned maintenance
outages and periodic natural gas curtailments.

The Atlas facility produced 264,000 tonnes in the second quarter of 2012 compared with 127,000 tonnes in the first quarter
of 2012. The Atlas facility was shut down for a 38 day outage in January 2012 for maintenance and to repair an equipment
failure. At the end of the second quarter of 2012, the Atlas facility was operating at approximately 95% of capacity.

We continue to experience some natural gas curtailments to our Trinidad facilities due to a mismatch between upstream
commitments to supply the Natural Gas Company in Trinidad (NGC) and downstream demand from NGC’s customers
which becomes apparent when an upstream supply issue arises. We are engaged with key stakeholders to find a solution to
this issue, but in the meantime we expect to continue to experience some gas curtailments to our Trinidad site.

Egypt

The Egypt methanol facility produced 164,000 tonnes (60% interest) in the second quarter of 2012 compared with 202,000
tonnes in the first quarter of 2012. We have a 60% equity interest in the facility and marketing rights for 100% of the
production. The lower second quarter of 2012 production is due to planned maintenance and inspection activities that
commenced late in the quarter and to natural gas restrictions due to upstream gas platform outages and seasonal domestic
demand for natural gas electricity generation.

Medicine Hat

Our 470,000 tonne per year facility in Medicine Hat, Alberta produced 118,000 tonnes in the second quarter of 2012
compared with 114,000 tonnes during the first quarter of 2012. We are currently assessing the feasibility of debottlenecking
the Medicine Hat facility which could add a further 90,000 tonnes of annual production capacity.

METHANEX CORPORATION 2012 SECOND QUARTER REPORT PAGE 4
MANAGEMENT’S DISCUSSION AND ANALYSIS

FINANCIAL RESULTS

For the second quarter of 2012 we recorded Adjusted EBITDA of $113 million and Adjusted net income of $44 million
($0.47 per share on a diluted basis). This compares with Adjusted EBITDA of $93 million and Adjusted net income of $39
million ($0.41 per share on a diluted basis) for the first quarter of 2012 and Adjusted EBITDA of $102 million and Adjusted
net income of $39 million ($0.41 per share on a diluted basis) for the second quarter of 2011.

We calculate Adjusted EBITDA and Adjusted net income by excluding amounts associated with the 40% non-controlling
interest in Egypt that we do not own, the mark-to-market impact of share-based compensation as a result of changes in our
share price and items which are considered by management to be non-operational. Refer to Additional Information –
Supplemental Non-GAAP Measures on page 13 for a further discussion on how we calculate these measures.

A reconciliation from net income attributable to Methanex shareholders to Adjusted net income and the calculation of
Adjusted diluted net income per common share is as follows:

Three Months Ended Six Months Ended
Jun 30 Mar 31 Jun 30 Jun 30 Jun 30
($ millions) 2012 2012 2011 2012 2011
Net income attributable to Methanex shareholders $ 52 $ 22 $ 41 $ 74 $ 75
Mark-to-market impact of share-based
compensation, net of tax (10) 17 (2) 7 1
Louisiana project relocation expenses, net of tax 2 – – 2 –
Adjusted net income ‘ $ 44 $ 39 $ 39 $ 83 $ 76
Diluted weighted average shares outstanding 95,119,964 94,714,364 94,580,090 94,772,610 94,288,918
Adjusted diluted net income per common share ‘ $ 0.47 $ 0.41 $ 0.41 $ 0.88 $ 0.81

We review our financial results by analyzing changes in Adjusted EBITDA, mark-to-market impact of share-based
compensation, Louisiana project relocation expenses, depreciation and amortization, finance costs, finance income and
other expenses and income taxes. A summary of our consolidated statements of income are as follows:

Three Months Ended Six Months Ended
Jun 30 Mar 31 Jun 30 Jun 30 Jun 30
($ millions) 2012 2012 2011 2012 2011
Consolidated statements of income:
Revenue $ 656 $ 666 $ 623 $ 1,3322 $ 1,242
Cost of sales and operating expenses, excluding
mark-to-market impact of share-based compensation (517) (551) (506) (1,068) (1,046)
139 115 117 254 196
Comprised of:
Adjusted EBITDA (attributable to Methanex shareholders) ‘ 113 93 102 206 183
Attributable to non-controlling interests 26 22 15 48 13
139 115 117 254 196
Mark-to-market impact of share-based compensation 10 (18) 1 (8) (1)
Louisiana project relocation expenses (4) – – (4) –
Depreciation and amortization (44) (38) (40) (82) (69)
Operating income ‘ 101 59 78 160 126
Finance costs (20) (18) (17) (38) (27)
Finance income and other expenses – 2 1 2 6
Income tax expense (15) (10) (15) (25) (25)
Net income $ 66 $ 33 $ 47 $ 9 $ 80
Net income attributable to Methanex shareholders $ 52 $ 22. $ 4 $ 74 $ 75

1 These items are non-GAAP measures that do not have any standardized meaning prescribed by GAAP and therefore are unlikely to be comparable to similar
measures presented by other companies. Refer to Additional Information – Supplemental Non-GAAP Measures on page 13 for a description of each non-GAAP
measure and reconciliations to the most comparable GAAP measures.

METHANEX CORPORATION 2012 SECOND QUARTER REPORT PAGE 5
MANAGEMENT’S DISCUSSION AND ANALYSIS

ADJUSTED EBITDA (ATTRIBUTABLE TO METHANEX SHAREHOLDERS)

Our operations consist of a single operating segment – the production and sale of methanol. We review the results of
operations by analyzing changes in the components of Adjusted EBITDA. For a discussion of the definitions used in our
Adjusted EBITDA analysis, refer to How We Analyze Our Business on page 18.

The changes in Adjusted EBITDA resulted from changes in the following;

Q2 2012 Q2 2012 YTD Q2 2012

compared with compared with compared with

($ millions) Q1 2012 Q2 2011 YTD Q2 2011
Average realized price $ 4 $ 33 $ 57
Sales volume (5) (6) (11)
Total cash costs 21 (16) (23)
Increase in Adjusted EBITDA $ 20 $ 11 $ 23

Average realized price
Three Months Ended Six Months Ended

Jun 30 Mar 31 Jun 30 Jun 30 Jun 30

($ per tonne, except where noted) 2012 2012 2011 2012 2011
Methanex average non-discounted posted price * 452 437 421 444 428
Methanex average realized price 384 382 363 383 365
Average discount 15% 13% 14% 14% 15%

1 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 at www.methanex.com.

Early in the second quarter of 2012, methanol market conditions were tightening and methanol pricing increased.
However, global economic uncertainty and lower energy pricing contributed to a moderation of industry supply and
demand conditions and methanol pricing declined in the latter part of the quarter (refer to Supply/Demand Fundamentals
section on page 10 for more information). Our average non-discounted posted price for the second quarter of 2012 was
$452 per tonne compared with $437 per tonne for the first quarter of 2012 and $421 per tonne for the second quarter of
2011. Our average realized price for the second quarter of 2012 was $384 per tonne compared with $382 per tonne for the
first quarter of 2012 and $363 per tonne for the second quarter of 2011. The change in average realized price for the
second quarter of 2012 increased Adjusted EBITDA by $4 million compared with the first quarter of 2012 and increased
Adjusted EBITDA by $33 million compared with the second quarter of 2011. Our average realized price for the six months
ended June 30, 2012 was $383 per tonne compared with $365 per tonne for the same period in 2011 and this increased
Adjusted EBITDA by $57 million.

Sales volume

Methanol sales volumes excluding commission sales volumes were lower in the second quarter of 2012 compared with the
first quarter of 2012 by 47,000 tonnes and this resulted in lower Adjusted EBITDA by $5 million. Methanol sales volumes
excluding commission sales for the three and six month periods ended June 30, 2012 were lower than comparable periods
in 2011 by 64,000 tonnes and 130,000 tonnes and this resulted in lower Adjusted EBITDA by $6 million and $11 million,
respectively.

Total cash costs

The primary drivers of changes in our total cash costs are changes in the cost of methanol we produce at our facilities
(Methanex-produced methanol) and changes in the cost of methanol we purchase from others (purchased methanol). All of
our production facilities except Medicine Hat are underpinned by natural gas purchase agreements with pricing terms that
include base and variable price components. We supplement our production with methanol produced by others through

METHANEX CORPORATION 2012 SECOND QUARTER REPORT PAGE 6
MANAGEMENT’S DISCUSSION AND ANALYSIS

methanol offtake contracts and purchases on the spot market to meet customer needs and support our marketing efforts
within the major global markets.

We have adopted the first-in, first-out method of accounting for inventories and it generally takes between 30 and 60 days
to sell the methanol we produce or purchase. Accordingly, the changes in Adjusted EBITDA as a result of changes in
Methanex-produced and purchased methanol costs primarily depend on changes in methanol pricing and the timing of
inventory flows.

The impact on Adjusted EBITDA from changes in our cash costs are explained below:

Q2 2012 Q2 2012 YTD Q2 2012

compared with compared with compared with

($ millions) Q1 2012 Q2 2011 YTD Q2 2011
Methanex-produced methanol costs $ 6 $ (10) $ (18)
Proportion of Methanex-produced methanol sales 15 12 30
Purchased methanol costs (8) (14) (23)
Logistics costs 11 3 (7)
Other, net (3) (7) (5)

$ 21 $ (16) $ (23)

Methanex-produced methanol costs

We purchase natural gas for the Chile, Trinidad, Egypt and New Zealand methanol facilities under natural gas purchase
agreements where the terms include a base price and a variable price component linked to the price of methanol. For the
second quarter of 2012 compared with the first quarter of 2012, Methanex-produced methanol costs were lower by $6
million primarily due to an improved operating rate at the Atlas facility which resulted in a lower natural gas cost per tonne.
Methanex-produced methanol costs were higher for the three and six month periods ended June 30, 2012 compared with
the same periods in 2011 by $10 million and $18 million, respectively, primarily due to the impact of higher methanol
pricing on natural gas costs.

Proportion of Methanex-produced methanol sales

The cost of purchased methanol is directly linked to the selling price for methanol at the time of purchase and the cost of
purchased methanol is generally higher than the cost of Methanex-produced methanol. Accordingly, an increase in the
proportion of Methanex-produced methanol sales results in a decrease in our overall cost structure for a given period. For
the second quarter of 2012 compared with the first quarter of 2012, a higher proportion of Methanex-produced methanol
sales increased Adjusted EBITDA by $15 million. Sales of Methanex-produced methanol were higher in the second quarter
of 2012 compared to the first quarter of 2012 primarily due to increased sales from the Atlas facility which underwent an
outage in the first quarter of 2012 for maintenance and to repair an equipment failure.

For the three and six month periods ended June 30, 2012 compared with the same periods in 2011, a higher proportion of
Methanex-produced methanol sales increased Adjusted EBITDA by $12 million and $30 million, respectively. The impact
of higher sales volumes from the Egypt and Medicine Hat methanol facilities, which commenced operations in the first half
of 2011, was partially offset by lower sales volumes from the Chile and Atlas methanol facilities in 2012.

Purchased methanol costs
Purchased methanol costs were higher for all periods presented primarily as a result of higher methanol pricing.

Logistics costs

For the second quarter of 2012 compared with the first quarter of 2012 and for the six month period ended June 30, 2012
compared with the same period in 2011, logistics cost variances were impacted by a one-time $7 million charge in the first
quarter of 2012 to terminate a time charter vessel lease contract.

Other, net

For the three and six month periods ended June 30, 2012 compared with the same periods in 2011, other costs were higher
by $2 million and $4 million, respectively, due to a portion of fixed manufacturing costs being charged directly to earnings
rather than to inventory due to lower production at our Chile and Atlas facilities. The remaining differences for those
periods are primarily due to the accounting for share-based compensation as more fully discussed in the share-based
compensation section below.

METHANEX CORPORATION 2012 SECOND QUARTER REPORT PAGE 7
MANAGEMENT’S DISCUSSION AND ANALYSIS

Mark-to-Market Impact of Share-based Compensation

We grant share-based awards as an element of compensation. Share-based awards granted include stock options, share
appreciation rights, tandem share appreciation rights, deferred share units, restricted share units and performance share
units. Share-based compensation includes an amount related to the grant-date value and a mark-to-market impact as a result
of subsequent changes in the Company’s share price. The grant-date value amount is included in Adjusted EBITDA and
Adjusted net income. The mark-to-market impact of share-based compensation as a result of changes in our share price is
excluded from Adjusted EBITDA and Adjusted net income and analyzed separately below.

Three Months Ended Six Months Ended

Jun 30 Mar 31 Jun 30 Jun 30 Jun 30

2012 2012 2011 2012 2011

Methanex Corporation share price ‘ $ 2784 $ 3243 $ 31.38 $ 2784 $ 31.38

Grant-date fair value expense included in Adjusted

EBITDA and Adjusted net income 7 7 3 14 11
Mark-to-market impact due to change in share price (10) 18 (1) 8 1
Total share-based compensation expense (recovery) $ ($ 25 $ 2.$ 22 $ 12

1 US dollar share price of Methanex Corporation as quoted on NASDAQ Global Market on the last trading day of the respective period.

Share appreciation rights (SARs) and tandem share appreciation rights (TSARs) are units that grant the holder the right to
receive a cash payment upon exercise for the difference between the market price of the Company’s common shares and
the exercise price, which is determined at the date of grant. The fair value of SARs and TSARs are re-measured each quarter
using the Black-Scholes option pricing model, which considers the market value of the Company’s common shares on the
last trading day of the quarter.

Deferred, restricted and performance share units are grants of notional common shares that are redeemable for cash upon
vesting based on the market value of the Company’s common shares and are non-dilutive to shareholders. For deferred,
restricted and performance share units, the value is initially measured at the grant date and subsequently re-measured based
on the market value of the Company’s common shares on the last trading day of each quarter.

For all the share-based awards, share-based compensation is recognized over the related vesting period for the proportion
of the service that has been rendered at each reporting date. The grant-date value is recognized in Adjusted EBITDA and
Adjusted net income while the mark-to-market impact as a result of subsequent changes in the share price is excluded from
Adjusted EBITDA and Adjusted net income.

Louisiana Project Relocation Expenses

In July 2012, we reached a final investment decision to proceed with the project to relocate an idle Chile facility to
Geismar, Louisiana with an estimated project cost of approximately $550 million. The project will add one million tonnes
of annual production capacity and is expected to be operational by the end of 2014. Under International Financial
Reporting Standards, certain costs associated with relocating an asset are not eligible for capitalization and are required to
be charged directly to earnings. In addition to the $4 million of Louisiana project relocation expenses charged to earnings
in the second quarter of 2012, we expect a further before-tax charge to earnings in the third quarter of 2012, currently
estimated to be approximately $35 million, after which we expect the remaining project expenditures to be capitalized. In
addition, in association with this decision, we expect to incur a one-time before-tax non-cash charge of approximately $25
million in the third quarter of 2012 related to a portion of the carrying value of the Chile facility that is being relocated to
Louisiana.

METHANEX CORPORATION 2012 SECOND QUARTER REPORT PAGE 8
MANAGEMENT’S DISCUSSION AND ANALYSIS

Depreciation and Amortization

Depreciation and amortization was $44 million for the second quarter of 2012 compared with $38 million for the first
quarter of 2012 and $40 million for the second quarter of 2011. Depreciation and amortization was higher in the second
quarter of 2012 compared with the first quarter of 2012 and second quarter of 2011 primarily due to higher sales of
Methanex-produced methanol. Depreciation and amortization was $82 million for the six month period ended June 30,
2012 compared with $69 million for the same period in 2011. The increase in depreciation and amortization in 2012
compared with 2011 is primarily a result of depreciation associated with the Egypt (100% basis) and Medicine Hat
methanol facilities which commenced operations in the first and second quarters of 2011, respectively.

Finance Costs

Three Months Ended Six Months Ended
Jun 30 Mar 31 Jun 30 Jun 30 Jun 30
($ millions) 2012 2012 2011 2012 2011
Finance costs before capitalized interest $ 20 $ 18 $ 17 $ 38 $ 35
Less capitalized interest – – – – (8)
Finance costs $ 20 $ 18 $ 17 $ 38 $ 27

Finance costs before capitalized interest for the second quarter of 2012 were $20 million compared with $18 million for
the first quarter of 2012 and $17 million for the second quarter of 2011. Finance costs before capitalized interest for the six
month period ended June 30, 2012 were $38 million compared with $35 million for the same period in 2011. The
increase in finance costs for all periods presented is primarily due to the impact of the interest expense on the $250 million
of unsecured notes issued by the Company in late February 2012. The unsecured notes bear an interest rate of 5.25% and
mature in 2022. We intend to repay the 8.75% $200 million unsecured notes due in August 2012 with cash on hand.

Capitalized interest relates to interest costs capitalized during the construction of the 1.26 million tonne per year methanol
facility in Egypt (100% basis). The Egypt methanol facility commenced production in mid-March 2011 and accordingly, we
ceased capitalization of interest costs from this date.

Finance Income and Other Expenses

Three Months Ended Six Months Ended
Jun 30 Mar 31 Jun 30 Jun 30 Jun 30
($ millions) 2012 2012 2011 2012 2011
Finance income and other expenses $ -$ 2.$ 1$ 25$ 6

Finance income and other expenses for the second quarter of 2012 was nil compared with $2 million for the first quarter of
2012 and $1 million for the second quarter of 2011. The change in finance income and other expenses for all periods
presented was primarily due to the impact of changes in foreign exchange rates.

METHANEX CORPORATION 2012 SECOND QUARTER REPORT PAGE 9
MANAGEMENT’S DISCUSSION AND ANALYSIS

Income Taxes

The effective tax rate for the second quarter of 2012 was 18% compared with approximately 23% for the first quarter of
2012.

We earn the majority of our pre-tax earnings in Trinidad, Egypt, Chile, Canada and New Zealand. In Trinidad and Chile,
the statutory tax rate is 35% and in Egypt, the statutory tax rate is 25%. Our Atlas facility in Trinidad has partial relief from
corporation income tax until 2014. We have significant loss carryforwards in Canada and New Zealand which have not
been recognized for accounting purposes. During the second quarter of 2012, we earned a higher proportion of our
consolidated income from methanol produced in Canada and New Zealand and this contributed to a lower effective tax
rate compared with the first quarter of 2012.

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 tier tax is initially recorded as deferred income tax expense and is
subsequently reclassified to current income tax expense when earnings are distributed.

SUPPLY/DEMAND FUNDAMENTALS

We estimate that methanol demand, excluding methanol demand from integrated methanol to olefins facilities, is currently
approximately 51 million tonnes on an annualized basis. Despite some demand softness in certain derivatives in the
current economic environment, overall methanol demand has remained good and prices have remained relatively stable.

Traditional chemical derivatives consume about two-thirds of global methanol demand and growth is correlated to
industrial production.

Energy derivatives consume about one third of global methanol

demand and over the last few years high energy prices have Methanex Non-Discounted Regional Posted Prices *
driven strong demand growth for methanol into energy July June May Apr
a . . . A (US$ per tonne) 2012 2012 2012 2012
applications such as gasoline blending and DME, primarily in
China. Growth of methanol blending into gasoline in China has United States 439 459 459 446
2
been particularly strong and we believe that future growth in this Europe 421. 427 429 450
Asia 440 465 480 440

application is supported by regulatory changes in that country.

Discounts from our posted prices are offered to customers based on
various factors.

€340 for Q3 2012 (Q2 2012 – €340) converted to United States
dollars.

Many provinces in China have implemented fuel blending
standards, and China also has national standards in place for ?
methanol fuel blending (M85 £ M100, or 85% methanol and

100% methanol, respectively). Methanol demand into olefins (“MTO”) is emerging as a significant methanol derivative.

There are three integrated and one merchant MTO plants in production and there is a second merchant plant expected to
commence operation in 2012 which could consume up to two million tonnes of methanol. We believe demand potential
into energy derivatives and olefins production will continue to grow.

During the second quarter of 2012, market conditions and the pricing environment were relatively stable. Our average non-
discounted price for July 2012 is $433 per tonne.

In July 2012, we restarted an idle plant in New Zealand that added 0.65 million tonnes of annual production capacity and
production commenced at a 0.85 million tonne plant in Beaumont, Texas. We have secured an offtake for a substantial
quantity of production from the Beaumont facility. Over the next few years, there is a modest level of new capacity
expected to come on-stream relative to demand growth expectations. There is a 0.8 million tonne plant expected to restart
in Channelview, Texas in late 2013 and a 0.7 million tonne plant expected to start up in Azerbaijan in 2013. In New
Zealand, we are assessing the feasibility of initiatives which could increase annual production capacity by up to 900,000
tonnes by the end of 2013 and recently announced that we have reached a final investment decision to proceed with the
project to relocate an idle Chile facility to Geismar, Louisiana. The Louisiana project is on track to add one million tonnes
of annual production capacity by the end of 2014. We expect that production from new capacity in China will be

METHANEX CORPORATION 2012 SECOND QUARTER REPORT PAGE 10
MANAGEMENT’S DISCUSSION AND ANALYSIS

consumed in that country and that higher cost production capacity in China will need to operate in order to satisfy demand
growth.

LIQUIDITY AND CAPITAL RESOURCES
Cash flows from operating activities

Cash flows from operating activities in the second quarter of 2012 were $135 million compared with $93 million for the
first quarter of 2012 and $78 million for the second quarter of 2011. Cash flows from operating activities for the six month
period ended June 30, 2012 were $229 million compared with $202 million for the same period in 2011.

The changes in cash flows from operating activities resulted from changes in the following:

Q2 2012 Q2 2012 YTD Q2 2012

compared with compared with compared with

($ millions) Q1 2012 Q2 2011 YTD Q2 2011
Adjusted EBITDA (attributable to Methanex shareholders) $ 20 $ 11 $ 23
Cash flows from operating activities attributable to non-controlling interests 4 11 35
Changes in non-cash working capital 20 25 (37)
Income taxes paid 3 17 16
Other (5) (7) (10)
Increase in cash flows from operating activities $ 42 $ 57 $ 27

Adjusted cash flows from operating activities

Adjusted cash flows from operating activities, which excludes the amounts associated with the 40% non-controlling
interests in the methanol facility in Egypt, changes in non-cash working capital and Louisiana project relocation expenses,
were $110 million in the second quarter of 2012 compared with $89 million for the first quarter of 2012 and $86 million
for the second quarter of 2011. Adjusted cash flows from operating activities for the six month period ended June 30, 2012
were $199 million compared with $167 million for the same period in 2011.

The changes in adjusted cash flows from operating activities resulted from changes in the following:

Q2 2012 Q2 2012 YTD Q2 2012

compared with compared with compared with

($ millions) Q1 2012 Q2 2011 YTD Q2 2011
Adjusted EBITDA (attributable to Methanex shareholders) $ 20 $ 11 $ 23
Income taxes paid 3 17 16
Other (2) (4) (7)
Increase in adjusted cash flows from operating activities $ 21 $ 24 $ 32

Refer to the Additional Information – Supplemental Non-GAAP Measures section on page 13 for a reconciliation of
Adjusted cash flows from operating activities to the most comparable GAAP measure.

During the second quarter of 2012, the Board of Directors approved a 9 percent increase to our quarterly dividend to
shareholders, from $0.17 to $0.185 per share, and we paid a quarterly dividend of $17 million.

We operate in a highly competitive commodity industry and believe it is appropriate to maintain a conservative balance
sheet and to maintain financial flexibility. During the first quarter of 2012, we issued $250 million of unsecured notes that
mature in 2022 and our cash balance at June 30, 2012 was $623 million. We invest our cash only in highly rated
instruments that have maturities of three months or less to ensure preservation of capital and appropriate liquidity. We
intend to repay the 8.75% $200 million unsecured notes due in August 2012 from cash on hand. We have a strong balance
sheet and an undrawn $200 million credit facility provided by highly rated financial institutions that expires in mid-2015.

METHANEX CORPORATION 2012 SECOND QUARTER REPORT PAGE 11
MANAGEMENT’S DISCUSSION AND ANALYSIS

Our planned capital maintenance expenditure program directed towards maintenance, turnarounds and catalyst changes for
existing operations is currently estimated to total approximately $150 million to the end of 2013, including major
refurbishments at some of our plants. In July 2012, we reached a final investment decision to proceed with the project to
relocate an idle Chile facility to Geismar, Louisiana. The estimated project costs are approximately $550 million and the
plant is expected to be operational by the end of 2014.

We believe we are well positioned to meet our financial commitments, invest to grow the Company and continue to deliver
on our commitment to return excess cash to shareholders.

SHORT-TERM OUTLOOK

Despite some demand softness in certain derivatives in the current economic environment, overall methanol demand has
remained good and pricing relatively stable. In July, we restarted a second Motunui facility in New Zealand which adds
0.65 million tonnes of annual production capacity and increases our cash generation capability.

The methanol price will ultimately depend on the strength of the global economy, industry operating rates, global energy
prices, new supply additions and the strength of global demand. We believe that our financial position and financial
flexibility, outstanding global supply network and competitive-cost position will provide a sound basis for Methanex to
continue to be the leader in the methanol industry and to invest to grow the Company.

METHANEX CORPORATION 2012 SECOND QUARTER REPORT PAGE 12
MANAGEMENT’S DISCUSSION AND ANALYSIS

CONTROLS AND PROCEDURES

For the three months ended June 30, 2012, no changes were made in our internal control over financial reporting that have
materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

ANTICIPATED CHANGES TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)
Consolidation and Joint Arrangement Accounting

In May 2011, the IASB issued new accounting standards related to consolidation and joint arrangement accounting. The
IASB has revised the definition of “control,” which is a criterion for consolidation accounting. In addition, changes to IFRS
in the accounting for joint arrangements were issued which, under certain circumstances, removed the option for
proportionate consolidation accounting so that the equity method of accounting for such interests would need to be
applied. The impact of applying consolidation accounting or equity accounting does not result in any change to net
earnings or shareholders” equity, but would result in a significant presentation impact. We are currently assessing the
impact of these standards on our financial statements. We currently account for our 63.1% interest in Atlas Methanol
Company using proportionate consolidation accounting and this represents the most significant potential change under
these new standards. The effective date for these standards is for periods commencing on or after January 1, 2013, with
earlier adoption permitted.

ADDITIONAL INFORMATION – SUPPLEMENTAL NON-GAAP MEASURES

In addition to providing measures prepared in accordance with International Financial Reporting Standards (IFRS), we
present certain supplemental non-GAAP measures. These are Adjusted EBITDA, Adjusted net income, Adjusted diluted net
income per common share, operating income and Adjusted cash flows from operating activities. These measures do not
have any standardized meaning prescribed by generally accepted accounting principles (GAAP) and therefore are unlikely
to be comparable to similar measures presented by other companies. These supplemental non-GAAP measures are
provided to assist readers in determining our ability to generate cash from operations and improve the comparability of our
results from one period to another. We believe these measures are useful in assessing operating performance and liquidity
of the Company’s ongoing business 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 (attributable to Methanex shareholders)

Adjusted EBITDA differs from the most comparable GAAP measure, cash flows from operating activities, because it includes
share-based compensation excluding mark-to-market impact and does not include changes in non-cash working capital,
other cash payments related to operating activities, Louisiana project relocation expenses, other non-cash items, income
taxes paid, finance income and other expenses, and Adjusted EBITDA associated with the 40% non-controlling interest in
the methanol facility in Egypt.

Adjusted EBITDA and Adjusted net income exclude the mark-to-market impact of share-based compensation related to the
impact of changes in our share price on share appreciation rights, tandem share appreciation rights, deferred share units,
restricted share units and performance share units. The mark-to-market impact related to performance share units that is
excluded from Adjusted EBITDA and Adjusted net income is calculated as the difference between the grant date value
determined using a Methanex total shareholder return factor of 100% and the fair value recorded at each period end. As
share-based awards will be settled in future periods, the ultimate value of the units is unknown at the date of grant and
therefore the grant date value recognized in Adjusted EBITDA and Adjusted net income may differ from the total settlement
cost.

METHANEX CORPORATION 2012 SECOND QUARTER REPORT PAGE 13
MANAGEMENT’S DISCUSSION AND ANALYSIS

The following table shows a reconciliation of cash flows from operating activities to Adjusted EBITDA:

Three Months Ended

Six Months Ended

Jun 30 Mar 31 Jun 30 Jun 30 Jun 30
($ thousands) 2012 2012 2011 2012 2011
Cash flows from operating activities $ 135,232 $ 93,400 $ 77,634 $ 228,632 $ 202,154

Add (deduct):

Net income attributable to non-controlling interests (13,907) (10,730) (6,220) (24,637) (5,144)
Changes in non-cash working capital (2,679) 17,424 22,227 14,745 (22,259)
Other cash payments, including share-based compensation 4,863 10,392 1,662 15,255 6,996
Louisiana project relocation expenses 3,686 – – 3,686 –
Share-based compensation excluding mark-to market impact (7,119) (6,891) (3,086) (14,010) (10,442)
Other non-cash items 397 (4,243) (1,392) (3,846) (1,423)
Income taxes paid 4,024 7,074 20,735 11,098 27,404
Finance income and other expenses 293 (1,679) (1,284) (1,386) (6,143)
Non-controlling interests adjustment ‘ (12,015) (11,500) (8,038) (23,515) (8,249)

Adjusted EBITDA (attributable to Methanex shareholders)

$ 112,775 $ 93,247 $ 102,238

$ 206,022 $ 182,894

Y This adjustment represents finance costs, finance income and other expenses, income tax expense, and depreciation and amortization associated with the 40% non-

controlling interest in the methanol facility in Egypt.

Adjusted Net Income and Adjusted Diluted Net Income per Common Share

Adjusted net income and Adjusted diluted net income per common share are non-GAAP measures because they exclude
the mark-to-market impact of share-based compensation, income taxes related to the mark-to-market impact of share-based

compensation and items that are considered by management to be non-operational. The following table shows a
reconciliation of net income attributable to Methanex shareholders to Adjusted net income and the calculation of Adjusted

diluted net income per common share:

Three Months Ended

Six Months Ended

Jun 30 Mar 31 Jun 30 Jun 30 Jun 30
($ thousands) 2012 2012 2011 2012 2011
Net income attributable to Methanex shareholders $ 52,238 $ 22,081 $ 40,529 $ 74,319 $ 75,139
Mark-to-market impact of share-based compensation (10,639) 18,167 (1,426) 7,528 1,298
Louisiana project relocation expenses 3,686 – – 3,686 –
Income taxes related to above items (932) (1,468) 120 (2,400) (94)
Adjusted net income $ 44,353 $ 38,780 $ 39,223 $ 83,133 $ 76,343
Diluted weighted average shares outstanding 95,119,964 94,714,364 94,580,090 94,772,610 94,288,918
Adjusted diluted net income per common share $ 0.47 $ 0.41 $ 0.41 $ 0.88 $ 0.81

Adjusted Cash Flows from Operating Activities (attributable to Methanex shareholders)
Adjusted cash flows from operating activities differs from the most comparable GAAP measure, cash flows from operating
activities, because it does not include cash flows associated with the 40% non-controlling interest in the methanol facility in
Egypt, changes in non-cash working capital and Louisiana project relocation expenses.

METHANEX CORPORATION 2012 SECOND QUARTER REPORT
MANAGEMENT’S DISCUSSION AND ANALYSIS

PAGE 14

The following table shows a reconciliation of cash flows from operating activities to adjusted cash flows from operating

activities:
Three Months Ended Six Months Ended
Jun 30 Mar 31 Jun 30 Jun 30 Jun 30
($ thousands) 2012 2012 2011 2012 2011
Cash flows from operating activities $ 135,232 $ 93,400 $ 77,634 $ 228,632 $ 202,154
Add (deduct) non-controlling interest adjustment:
Net income (13,907) (10,730) (6,220) (24,637) (5,144)
Non-cash items (12,015) (11,500) (8,038) (23,515) (8,249)
Changes in non-cash working capital (2,679) 17,424 22,227 14,745 (22,259)
Louisiana project relocation expenses 3,686 – – 3,686 –
Adjusted cash flows from operating activities

(attributable to Methanex shareholders) $ 110,317 $ 88,594 $ 85,603 $ 198,911 $ 166,502

Operating Income
Operating income is reconciled directly to a GAAP measure in our consolidated statements of income.

QUARTERLY FINANCIAL DATA (UNAUDITED)

A summary of selected financial information for the prior eight quarters is as follows:

Three Months Ended
Jun 30 Mar 31 Dec 31 Sep 30

($ thousands, except per share amounts) 2012 2012 2011 2011

$ 656,103 $ 665,867 $ 696,499 $ 669,702

Revenue

Net income’ 52,238 22,081 63,871 62,316
Adjusted net income * ? 44,353 38,780 64,987 40,497
Basic net income per common share’ 0.56 0.24 0.69 0.67
Diluted net income per common share! 0.50 0.23 0.68 0.59
Adjusted diluted net income per share * ? 0.47 0.41 0.69 0.43

Three Months Ended
Jun 30 Mar 31 Dec 31 Sep 30

($ thousands, except per share amounts) 2011 2011 2010 2010

$ 622,829 $ 619,007 $ 570,337 $ 480,997

Revenue

Net income ‘ 40,529 34,610 25,508 28,662
Adjusted net income ? ? 39,223 37,120 39,448 34,019
Basic net income per common share’ 0.44 0.37 0.28 0.31
Diluted net income per common share! 0.43 0.37 0.27 0.31
Adjusted diluted net income per share *? 0.41 0.39 0.42 0.36

1 Attributable to Methanex Corporation shareholders.
2 These items are non-GAAP measures that do not have any standardized meaning prescribed by GAAP and therefore are unlikely to be comparable to similar
measures presented by other companies. Refer to Additional Information – Supplemental Non-GAAP Measures for a description of each non-GAAP measure and

reconciliations to the most comparable GAAP measures.

METHANEX CORPORATION 2012 SECOND QUARTER REPORT PAGE 15

MANAGEMENT’S DISCUSSION AND ANALYSIS

FORWARD-LOOKING INFORMATION WARNING

This Second Quarter 2012 Management’s Discussion and Analysis (“MD8:A”) as well as comments made during the Second
Quarter 2012 investor conference call contain forward-looking statements with respect to us and our industry. These
statements relate to future events or our future performance. All statements other than statements of historical fact are

forward-looking statements. Statements that include the words “believes,

”u

“target,” “interest,
identify forward-looking statements.

”u “a, ”u ”u

expects,” “may,” “will,” “potential,” “estimates,”

planning” or other comparable terminology and similar statements of a future or forward-looking nature

More particularly and without limitation, any statements regarding the following are forward-looking statements:

* expected demand for methanol and its derivatives,

* expected new methanol supply and timing for start-up
of the same,

+ expected shutdowns (either temporary or permanent)
or restarts of existing methanol supply (including our
own facilities), including, without limitation, the
timing and length of planned maintenance outages,

+ expected methanol and energy prices,

e expected levels of methanol purchases from traders
or other third parties,

* expected levels, timing and availability of
economically-priced natural gas supply to each of
our plants,

+ commitments, capital or otherwise of third parties to
future natural gas exploration and development in
the vicinity of our plants,

e expected capital expenditures, including, without
limitation, those to support natural gas exploration
and development for our plants and the restart of our
idled methanol facilities,

e anticipated production rates of our plants,

* expected operating costs, including natural gas
feedstock costs and logistics costs,

* expected tax rates or resolutions to tax disputes,

e expected cash flows, earnings capability and share
price,

ability to meet covenants or obtain waivers associated
with our long-term debt obligations, including, without
limitation, the Egypt limited recourse debt facilities that
have conditions associated with fimalization of certain
land title registration and related mortgages that require
action by Egyptian governmental entities,

availability of committed credit facilities and other
financing,

shareholder distribution
distributions to shareholders,

strategy and anticipated

commercial viability of, or ability to execute, future
projects, plant restarts, capacity expansions, plant
relocations or other business initiatives or opportunities,
including the planned relocation of one of our idle Chile
methanol plants to Louisiana and certain initiatives in
New Zealand,

financial strength and ability to meet future financial
commitments,

expected global or regional economic activity (including
industrial production levels),

expected outcomes of litigation or other disputes, claims
and assessments,

expected actions of governments, government agencies,
gas suppliers, courts, tribunals or other third parties, and

expected impact on our results of operations in Egypt and
our financial condition as a consequence of actions taken
by the Government of Egypt and its agencies.

We believe that we have a reasonable basis for making such forward-looking statements. The forward-looking statements in
this document 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, including, without limitation, future
expectations and assumptions concerning the following:

+ supply of, demand for, and price of, methanol, methanol
derivatives, natural gas, oil and oil derivatives,

e success of natural gas exploration in Chile and New
Zealand and our ability to procure economically priced

receipt of permits in connection with the Louisiana
relocation project,

receipt or issuance of third party consents or approvals,
including, without limitation, governmental registrations

natural gas in Chile, New Zealand, Canada and the
United States,

of land title and related mortgages in Egypt,

+ governmental approvals related to natural gas exploration
e production rates of our facilities, rights,

+ the establishment of new fuel standards,

METHANEX CORPORATION 2012 SECOND QUARTER REPORT PAGE 16
MANAGEMENT’S DISCUSSION AND ANALYSIS

* operating costs including natural gas feedstock and
logistics costs, capital costs, tax rates, cash flows, foreign
exchange rates and interest rates,

e availability of committed credit facilities and other
financing,

e timing of completion and cost of our Louisiana relocation
project,

e global and regional economic activity (including
industrial production levels),

absence of a material negative impact from major natural
disasters,

absence of a material negative impact from changes in
laws or regulations,

absence of material negative impact from political
instability in the countries in which we operate, and

enforcement of contractual arrangements and ability to
perform contractual obligations by customers, suppliers
and other third parties.

However, 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. The risks and uncertainties primarily include those

attendant with producing and marketing methanol and successfully carrying out major capital expenditure projects in

various jurisdictions, including, without limitation:

e conditions in the methanol and other industries,
including fluctuations in supply, demand and price for
methanol and its derivatives, including demand for
methanol for energy uses,

e the price of natural gas, oil and oil derivatives,

e the success of natural gas exploration and development
activities in southern Chile and New Zealand and our
ability to obtain any additional gas in Chile, New
Zealand on commercially acceptable terms,

e the ability to successfully carry out corporate initiatives
and strategies,

e actions of competitors,
institutions,

suppliers and financial

actions of governments and governmental authorities,
including without limitation, the implementation of
policies or other measures that could impact the supply
or demand for methanol or its derivatives,

changes in laws or regulations,

import or export restrictions, anti-dumping measures,
increases in duties, taxes and government royalties, and
other actions by governments that may adversely affect
our operations or existing contractual arrangements,

world-wide economic conditions, and

other risks described in our 2011 Management’s
Discussion and Analysis and this Second Quarter 2012
Management’s Discussion and Analysis.

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’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

except as required by applicable securities laws.

METHANEX CORPORATION 2012 SECOND QUARTER REPORT
MANAGEMENT’S DISCUSSION AND ANALYSIS

PAGE 17

HOW WE ANALYZE OUR BUSINESS

Our operations consist of a single operating segment – the production and sale of methanol. We review our results of operations by
analyzing changes in the components of Adjusted EBITDA (refer to the Additional Information – Supplemental Non-GAAP

Measures section on page 13 for a reconciliation to the most comparable GAAP measure).

In addition to the methanol that we produce at our facilities (“Methanex-produced methanol”), we also purchase and re-sell
methanol produced by others (“purchased methanol”) and we sell methanol on a commission basis. We analyze the results of all
methanol sales together, excluding commission sales volumes. The key drivers of change in Adjusted EBITDA are average realized

price, cash costs and sales volume which are defined and calculated as follows:

PRICE 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 methanol multiplied by the current period total methanol sales volume

excluding commission sales volume plus the difference from period to period in commission revenue.

CASH COST 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 current period total methanol sales volume excluding commission
sales volume in the current period. The cash costs per tonne is the weighted average of the cash cost per tonne of
Methanex-produced methanol and the cash cost per tonne of purchased methanol. The cash cost per tonne of
Methanex-produced methanol includes absorbed fixed cash costs per tonne and variable cash costs per tonne. The
cash cost per tonne of purchased methanol consists principally of the cost of methanol itself. In addition, the change
in Adjusted EBITDA as a result of changes in cash costs includes the changes from period to period in unabsorbed
fixed production costs, consolidated selling, general and administrative expenses and fixed storage and handling
costs.

VOLUME The change in Adjusted EBITDA as a result of changes in sales volume is calculated as the difference from period to
period in total methanol sales volume excluding commission sales volumes multiplied by the margin per tonne for
the prior period. The margin per tonne for the prior period is the weighted average margin per tonne of Methanex-
produced methanol and margin per tonne of purchased methanol. The margin per tonne for Methanex-produced
methanol ¡is calculated as the selling price per tonne of methanol less absorbed fixed cash costs per tonne and
variable cash costs per tonne. The margin per tonne for purchased methanol is calculated as the selling price per

tonne of methanol less the cost of purchased methanol per tonne.

We own 63.1% of the Atlas methanol facility and market the remaining 36.9% of its production through a commission offtake
agreement. We account for this investment using proportionate consolidation, which results in 63.1% of its results being included

in revenues and expenses with the remaining 36.9% portion included as commission income.

We own 60% of the 1.26 million tonne per year Egypt methanol facility and market the remaining 40% of its production through a
commission offtake agreement. We account for this investment using consolidation accounting, which results in 100% of the
revenues and expenses being included in our financial statements with the other investors” interest in the methanol facility being
presented as “non-controlling interests”. For purposes of analyzing our business, Adjusted EBITDA, Adjusted net income and
Adjusted cash flows from operating activities exclude the amounts associated with the other investors’ 40% non-controlling

interest, which are included in commission income on a consistent basis with how we present the Atlas facility.

METHANEX CORPORATION 2012 SECOND QUARTER REPORT PAGE 18
MANAGEMENT’S DISCUSSION AND ANALYSIS

Methanex Corporation
Consolidated Statements of Income (unaudited)
(thousands of U.S. dollars, except number of common shares and per share amounts)

Three Months Ended Six Months Ended
Jun 30 Jun 30 Jun 30 Jun 30
2012 2011 2012 2011
Revenue $ 656,103 $ 622829 $ 1,321,970 $ 1,241,836
Cost of sales and operating expenses (506,769) (504,907) (1,075,326) – (1,046,847)
Depreciation and amortization (44,436) (39,713) (82,403) (69,413)
Louisiana project relocation expenses (note 3) (3,686) – (3,686) –
Operating income 101,212 78,209 160,555 125,576
Finance costs (note 5) (20,137) (17,350) (38,670) (26,543)
Finance income and other expenses (293) 1,284 1,386 6,143
Profit before income tax expense 80,782 62,143 123,271 105,176
Income tax expense:
Current (10,589) (8,267) (15,157) (16,542)
Deferred (4,048) (7,127) (9,158) (8,351)
(14,637) (15,394) (24,315) (24,893)
Net income $ 66,145 $ 46749 $ 98956 $ 80,83
Attributable to:
Methanex Corporation shareholders 52,238 40,529 74,319 75,139
Non-controlling interests 13,907 6,220 24,637 5,144

$ 66,145 $ 46,749 $ 98,956 $ 80,283

Income for the period attributable to Methanex Corporation shareholders

Basic net income per common share (note 6) $ 0.56 $ 044 $ 0.80 $ 0.81
Diluted net income per common share (note 6) $ 0.50 $ 043 $ 0.78 $ 0.80
Weighted average number of common shares outstanding 93,781,404 92,972,678 93,445,231 92,711,291
Diluted weighted average number of common shares outstanding 95,119,964 94,580,090 94,772,610 94,288,918

See accompanying notes to condensed consolidated interim financial statements

METHANEX CORPORATION 2012 SECOND QUARTER REPORT
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) PAGE 19

Methanex Corporation
Consolidated Statements of Comprehensive Income (unauditea)
(thousands of U.S. dollars)

Three Months Ended

Six Months Ended

Jun 30 Jun 30 Jun 30 Jun 30
2012 2011 2012 2011
Net income 66,145 $ 46,749 $ 98,956 80,283
Other comprehensive income (loss):
Change in fair value of forward exchange contracts, net of tax (566) (669) (871) (669)
Change in fair value of interest rate swap contract, net of tax (747) (11,859) (3,360) (11,664)
Realized loss on interest rate swap contracts reclassified to interest expense, net of tax 2,766 3,954 5,702 4,824
Realized loss on interest rate swap contracts reclassified to property, plant and equipment – – – 7,279
1,453 (8,574) 1,1471 (230)
Comprehensive income 67,598 $ 38,175 $ 100,427 80,053
Attributable to:
Methanex Corporation shareholders 52,883 35,117 74,853 74,733
Non-controlling interests 14,715 3,058 25,574 5,320
67,598 $ 38,175 $ 100,427 80,053
See accompanying notes to condensed consolidated interim financial statements,
METHANEX CORPORATION 2012 SECOND QUARTER REPORT
PAGE 20

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

Methanex Corporation
Consolidated Statements of Financial Position (unaudited)
(thousands of U.S. dollars)

Jun 30 Dec 31
AS AT 2012 2011
ASSETS
Current assets:
Cash and cash equivalents $ 623,209 $ 350,711
Trade and other receivables 383,580 378,430
Inventories (note 2) 245,066 281,015
Prepaid expenses 35,321 24,465
1,287,176 1,034,621
Non-current assets:
Property, plant and equipment (note 3) 2,254,972 2,233,023
Other assets 117,457 125,931
2,372,429 2,358,954
$ 3,659,605 $ 3,393,575
LIABILITIES AND EQUITY
Current liabilities:
Trade, other payables and accrued liabilities $ 289,159 $ 327,130
Current maturities on long-term debt (note 4) 252,220 251,107
Current maturities on finance leases 7,031 6,713
Current maturities on other long-term liabilities 21,612 18,031
570,022 602,981
Non-current liabilities:
Long-term debt (note 4) 873,620 652,148
Finance leases 52,370 55,979
Other long-term liabilities 181,856 178,172
Deferred income tax liabilities 313,601 302,332
1,421,447 1,188,631
Equity:
Capital stock 469,592 455,434
Contributed surplus 18,793 22,281
Retained earnings 984,032 942,978
Accumulated other comprehensive loss (15,434) (15,968)
Shareholders’ equity 1,456,983 1,404,725
Non-controlling interests 211,153 197,238
Total equity 1,668,136 1,601,963
$ 3,659,605 $ 3,393,575
See accompanying notes to condensed consolidated interim financial statements
METHANEX CORPORATION 2012 SECOND QUARTER REPORT
PAGE 21

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

Methanex Corporation

Consolidated Statements of Changes in Equity (unaudited)

(thousands of U.S. dollars, except number of common shares)

Number of Non-|
Common Capital Retained Controlling| Total
Shares Stock Earnings Interests| Equity
Balance, December 31, 2010 92,632,022 | 5 440,092 813,819 156,412 1,409,623
Net income – – 75,139 5,144 80,283
Other comprehensive income (loss) – – – 176 (230)
Compensation expense recorded
for stock options – – – – 472
Issue of shares on exercise of
stock options 534,318 10,180 – – 10,180
Reclassification of grant date
fair value on exercise of
stock options – 3,568 – – –
Dividend payments to Methanex
Corporation shareholders – – (30,210) – (30,210)
Distributions to
non-controlling interests – – – (1,250) (1,250)
Equity contributions by
non-controlling interests – – – 19,200 19,200
Balance, June 30, 2011 93,166,340 453,840 858,748 179,682 1,488,068
Net income – – 126,187 21,530 147,717
Other comprehensive income (loss) – – (10,258) 6,356 6,629
Compensation expense recorded
for stock options – – – – 365
Issue of shares on exercise of
stock options 81,415 1,213 – – 1,213
Reclassification of grant date
fair value on exercise of
stock options – 381 – – –
Dividend payments to Methanex
Corporation shareholders – – (31,699) – (31,699)
Distributions to
non-controlling interests – – – (10,330) (10,330)
Equity contributions by
non-controlling interests – – – – –
Balance, December 31, 2011 93,247,755 455,434 942,978 197,238 1,601,963
Net income – – 74,319 24,637 98,956
Other comprehensive income – – – 937 1,4471
Compensation expense recorded
for stock options – – – – 403
Issue of shares on exercise of
stock options 569,487 10,267 – – 10,267
Reclassification of grant date
fair value on exercise of
stock options – 3,891 – – –
Dividend payments to Methanex
Corporation shareholders – – (33,265) – (33,265)
Distributions to
non-controlling interests . . . (12,659) (12,659)
Equity contributions by
non-controlling interests – – – 1,000 1,000
Balance, June 30, 2012 93,817,242 |$ 469,592 $ 984,032 $ 211,153 1,668,136
See accompanying notes to condensed consolidated interim financial statements.
METHANEX CORPORATION 2012 SECOND QUARTER REPORT
PAGE 22

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

Methanex Corporation
Consolidated Statements of Cash Flows (unaudited)
(thousands of U.S. dollars)

Three Months Ended

Six Months Ended

Jun 30 Jun 30 Jun 30 Jun 30
2012 2011 2012 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 66,145. $ 46,749 98,956 $ 80,283
Add (deduct) non-cash items:
Depreciation and amortization 44,436 39,713 82,403 69,413
Income tax expense 14,637 15,394 24,315 24,893
Share based compensation (3,518) 1,660 21,540 11,740
Finance costs 20,137 17,350 38,670 26,543
Other (397) 1,392 3,846 1,423
Income taxes paid (4,024) (20,735) (11,098) (27,404)
Other cash payments, including share-based compensation (4,863) (1,662) (15,255) (6,996)
Cash flows from operating activities before undernoted 132,553 99,861 243,377 179,895
Changes in non-cash working capital (note 8) 2,679 (22,227) (14,745) 22,259
135,232 77,634 228,632 202,154
CASH FLOWS FROM FINANCING ACTIVITIES
lend payments to Methanex Corporation shareholders (17,357) (15,839) (33,265) (30,210)
Interest paid, including interest rate swap settlements (1,760) (4,851) (27,023) (30,251)
Net proceeds on issue of long-term debt . 2,700 246,548 2,700
Repayment of limited recourse debt (8,134) (8,641) (25,288) (24,840)
Change in project finance reserve accounts – (2,209) – (2,209)
Equity contributions by non-controlling interests . 3,600 1,000 19,200
Cash distributions to non-controlling interests (3,254) (1,250) (15,999) (1,250)
Proceeds on issue of shares on exercise of stock options 2,199 8,524 10,267 10,180
Repayment of finance leases and other long term liabilities (1,662) (1,514) (3,292) (2,845)
(29,968) (19,480) 152,948 (59,525)
CASH FLOWS FROM INVESTING ACTIVITIES
Property, plant and equipment (48,471) (39,322) (105,913) (78,782)
Oil and gas assets (5,156) (11,897) (11,955) (17,497)
GeoPark repayments 3,409 2,454 10,039 7,551
Changes in non-cash working capital related to investing activities (note 8) (15,922) (8,570) (1,253) (2,071)
(66,140) (52,335) (109,082) (90,799)
Increase in cash and cash equivalents 39,124 5,819 272,498 51,830
Cash and cash equivalents, beginning of period 584,085 239,805 350,711 193,794
Cash and cash equivalents, end of period $ 623,209 $ 245624 623,209 $ 245,624
See accompanying notes to condensed consolidated interim financial statements,
METHANEX CORPORATION 2012 SECOND QUARTER REPORT
PAGE 23

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

Methanex Corporation
Notes to Condensed Consolidated Interim Financial Statements (unauditea)

Except where otherwise noted, tabular dollar amounts are stated in thousands of U.S. dollars.

1. Basis of presentation:

Methanex Corporation (the Company) is an incorporated entity with corporate offices in Vancouver, Canada. The
Company’s operations consist of the production and sale of methanol, a commodity chemical. The Company is the
world’s largest supplier of methanol to major international markets in Asia Pacific, North America, Europe and Latin
America.

These condensed consolidated interim financial statements are prepared in accordance with International Accounting
Standards (IAS) 34, Interim Financial Reporting, as issued by the International Accounting Standards Board (IASB) on a
basis consistent with those followed in the most recent annual consolidated financial statements. These condensed
consolidated interim financial statements include the Egypt methanol facility on a consolidated basis, with the other
investors” 40% share presented as non-controlling interest, and the Company’s proportionate share of the Atlas
methanol facility.

These condensed consolidated interim financial statements do not include all of the information required for full
annual financial statements and were approved and authorized for issue by the Audit, Finance 8 Risk Committee of the
Board of Directors on July 25, 2012.

2. Inventories:

Inventories are valued at the lower of cost, determined on a first-in first-out basis, and estimated net realizable value.
The amount of inventories included in cost of sales and operating expenses and depreciation and amortization for the
three and six month periods ended June 30, 2012 is $497 million (2011 – $490 million) and $1,015 million (2011 –
$997 million), respectively.

3. Property, plant and equipment:

Buildings, Plant
Installations 8: Oil £ Gas
Machinery Properties Other Total
Cost at June 30, 2012 $ 3,317,802 $ 79,958 $ 67,069 | $ 3,464,829
Accumulated depreciation at June 30, 2012 1,142,088 43,319 24,450 1,209,857
Net book value at June 30, 2012 $ 2,175,714 $ 36,639 $ 42,619 |$ 2,254,972
Cost at December 31, 2011 $ 3,210,923 $ 77,486 $ 88,642 |$ 3,377,051
Accumulated depreciation at December 31, 2011 1,070,267 32,990 40,771 1,144,028
Net book value at December 31, 2011 $ 2,140,656 $ 44,496 $ 47,871 | $ 2,233,023

Subsequent to June 30, 2012, the Company made a final investment decision to proceed with the project to relocate an
idle Chile facility to Geismar, Louisiana with an estimated project cost of approximately $550 million. Under
International Financial Reporting Standards, certain costs incurred in relation to relocating an asset are not eligible for
capitalization to Property, Plant and Equipment and are required to be charged directly to income. At June 30, 2012,
the Company had incurred $19.3 million in expenditures related to this project, of which $15.6 million was recorded
to Property, Plant and Equipment, and the remaining $3.7 million was recognized as Louisiana project relocation
expenses in the Consolidated Statements of Income. The Company estimates that additional expenditures of
approximately $35 million will be incurred in relation to the relocation which will be charged directly to income. In
addition, the Company expects to incur a before-tax non-cash charge to income of approximately $25 million in the
three month period ending September 30, 2012 related to a portion of the carrying value of the Chile facility that is
being relocated to Louisiana.

METHANEX CORPORATION 2012 SECOND QUARTER REPORT PAGE 24
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

4. Long-term debt:

Jun 30 Dec 31
2012 2011

Unsecured notes
8.75% due August 15, 2012 $ 199,748 $ 199,643
6.00% due August 15, 2015 149,229 149,119
5.25% due March 1, 2022 246,467 –
595,444 348,762
Atlas limited recourse debt facilities 57,037 64,397
Egypt limited recourse debt facilities 454,696 470,208
Other limited recourse debt facilities 18,663 19,888
1,125,840 903,255
Less current maturities (252,220) (251,107)
$ 873,620 $ 652,148

The Company has a $200 million unsecured revolving bank facility provided by highly rated financial institutions
which expires mid-2015.

The Atlas and Egypt limited recourse debt facilities are described as limited recourse as they are secured only by the
assets of the Atlas joint venture and the Egypt entity, respectively. Accordingly, the lenders to the limited recourse debt
facilities have no recourse to the Company or its other subsidiaries. The Atlas and Egypt limited recourse debt facilities
have customary covenants and default provisions that apply only to these entities, including restrictions on the
incurrence of additional indebtedness, a requirement to fulfill certain conditions before the payment of cash or other
distributions and a restriction on these distributions if there is a default subsisting. The Egypt limited recourse debt
facilities also contain a covenant to complete by March 31, 2013 certain land title registrations and related mortgages
that require action by Egyptian government entities. Management does not believe that the finalization of these items is
material.

At June 30, 2012, management believes the Company was in compliance with all of the covenants and default
provisions related to long-term debt obligations.

5. Finance costs:

Three Months Ended Six Months Ended
Jun 30 Jun 30 Jun 30 Jun 30
2012 2011 2012 2011
Finance costs $ 20,137 $ 17,350 $ 38,670 $ 34,643
Less capitalized interest related to Egypt plant under construction – – – (8,100)

$ 20,137 $ 17,350 $ 38,670 $ 26,543

Finance costs are primarily comprised of interest on borrowings and finance lease obligations, the effective portion of
interest rate swaps designated as cash flow hedges, amortization of deferred financing fees, and accretion expense
associated with site restoration costs. Interest during construction of the Egypt methanol facility was capitalized until
the plant was substantially completed and ready for productive use in mid-March of 2011. The Company has interest
rate swap contracts on its Egypt limited recourse debt facilities to swap the LIBOR-based interest payments for an
average aggregated fixed rate of 4.8% plus a spread on approximately 75% of the Egypt limited recourse debt facilities
for the period to March 31, 2015.

METHANEX CORPORATION 2012 SECOND QUARTER REPORT PAGE 25
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

Net income per common share:

Diluted net income per common share is calculated by giving effect to the potential dilution that would occur if
outstanding stock options and tandem share appreciation rights (TSARs) were exercised or converted to common
shares. Outstanding TSARs may be settled in cash or common shares at the holder’s option and for purposes of
calculating diluted net income per common share, the more dilutive of cash-settled and equity-settled is used,
regardless of how the plan is accounted for. Accordingly, TSARs that are accounted for using the cash-settled method
will require an adjustment to the numerator and denominator if the equity-settled method is determined to have a
dilutive effect on diluted net income per common share.

During the three month period ended June 30, 2012, the Company’s share price declined and the Company recorded a
share-based compensation recovery related to TSARs. For this period, the equity-settled method has been determined
to be the more dilutive for purposes of calculating diluted net income per common share.

A reconciliation of the net income used for the purpose of calculating diluted net income per common share ¡is as

follows:
Three Months Ended Six Months Ended
Jun 30 Jun 30 Jun 30 Jun 30
2012 2011 2012 2011
Numerator for basic net income per common share $ 52,238 $ 40,529 $ 74,319 $ 75,139
Adjustment for the effect of TSARs:
Cash settled recovery included in net income (2,762) – – –

(2,021) – – –

Equity settled expense
$ 47,455 $ 40,529 $ 74,319 $ 75,139

Numerator for diluted net income per common share

Stock options and TSARs are considered dilutive when the average market price of the Company’s common shares
during the period disclosed exceeds the exercise price of the stock option or TSAR. A reconciliation of the number of
common shares used for the purposes of calculating basic and diluted net income per common share is as follows:

Three Months Ended Six Months Ended
Jun 30 Jun 30 Jun 30 Jun 30
2012 2011 2012 2011
Denominator for basic net income per common share 93,781,404 92,972,678 93,445,231 92,711,291
Effect of dilutive stock options 1,225,970 1,607,412 1,327,379 1,577,627
Effect of dilutive TSARs 112,590 – – –

Denominator for diluted net income per common share * 95,119,964 94,580,090 94,772,610 94,288,918

1 3,391,757 outstanding stock options for each of the three and six month periods ended June 30, 2012, respectively, are dilutive and have been
included in the diluted weighted average number of common shares. 1,170,645 outstanding TSARs for the three month period ended June 30, 2012

are dilutive and have been included in the diluted weighted average number of common shares.

For the three month and six month periods ended June 30, 2012, basic and diluted net income per common share
attributable to Methanex shareholders were as follows:

Three Months Ended Six Months Ended
Jun 30 Jun 30 Jun 30 Jun 30
2012 2011 2012 2011

$ 0.56 $ 0.44 $ 0.80 $ 0.81

Basic net income per common share
0.50 $ 0.43 $ 0.78 $ 0.80

Diluted net income per common share $

METHANEX CORPORATION 2012 SECOND QUARTER REPORT PAGE 26
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

7. Share-based compensation:

a) Stock options, share appreciation rights (SARs) and tandem share appreciation rights (TSARs):

(1) Outstanding units:
Information regarding units outstanding and exercisable at June 30, 2012 is as follows:
Units Outstanding at Units Exercisable at
June 30, 2012 June 30, 2012
Weighted
Average
Remaining Weighted Number of Weighted
Contractual Number of Units Average Units Average
Range of Exercise Prices Life (Years) Outstanding Exercise Price Exercisable Exercise Price
Stock options:
$6.33 to 11.56 3.5 1,071,055 $ 6.54 1,071,055 $ 6.54
$20.76 to 25.22 1.4 1,396,477 23.26 1,369,877 23.22
$28.43 to 31.73 3.0 1,008,225 28.72 882,125 28.44
2.5 3,475,757 $ 19.69 3,323,057 $ 19.23
SARs:
$25.22 to 31.74 5.7 918,625 $ 28.61 274,626 $ 26.19
TSARs:
$23.36 to 31.88 5.7 1,816,035 $ 28.44 620,380 $ 26.12
(ii) Compensation expense related to stock options:
For the three and six month periods ended June 30, 2012, compensation expense related to stock options
included in cost of sales and operating expenses was $0.2 million (2011 – $0.2 million) and $0.4 million
(2011 – $0.5 million), respectively. The fair value of each stock option grant was estimated on the date of grant
using the Black-Scholes option pricing model.
(iii) Compensation expense related to SARs and TSARs:
Compensation expense for SARs and TSAR:s is initially measured based on their fair value and is recognized
over the vesting period. Changes in fair value each period are recognized in net income for the proportion of
the service that has been rendered at each reporting date. The fair value at June 30, 2012 was $16.4 million
compared with the recorded liability of $12.0 million. The difference between the fair value and the recorded
liability of $4.4 million will be recognized over the weighted average remaining service period of
approximately 1.8 years. The weighted average fair value of the vested SARs and TSARs was estimated at June
30, 2012 using the Black-Scholes option pricing model.
For the three and six month periods ended June 30, 2012, compensation expense related to SARs and TSARs
included a recovery in cost of sales and operating expenses of $3.6 million (2011 – recovery of $1.1 million)
and an expense of $7.1 million (2011 – expense of $3.9 million), respectively. This included a recovery of
$6.4 million (2011 – recovery of $2.6 million) and an expense of $1.4 million (2011 – recovery of $0.4
million) related to the effect of the change in the Company’s share price for the three and six month periods
ended June 30, 2012, respectively.
METHANEX CORPORATION 2012 SECOND QUARTER REPORT PAGE 27

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

7. Share-based compensation (continued):

b) Deferred, restricted and performance share units:

Deferred, restricted and performance share units outstanding at June 30, 2012 are as follows:

Number of Deferred Number of Restricted| Number of Performance

Share Units Share Units] Share Units

Outstanding at December 31, 2011 597,911 48,588 1,103,049
Granted 19,358 20,400 358,330
Granted in-lieu of dividends 3,237 362 5,468
Redeemed – – (413,138)
Cancelled – – (8,393)
Outstanding at March 31, 2012 620,506 69,350 1,045,316
Granted 540 – –
Granted in-lieu of dividends 3,692 457 6,884
Redeemed (66,531) – –
Cancelled – – –
Outstanding at June 30, 2012 558,207 69,807 1,052,200

Compensation expense for deferred, restricted and performance share units is measured at fair value based on the
market value of the Company’s common shares and is recognized over the vesting 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 at June 30, 2012 was $44.5 million compared with the
recorded liability of $37.5 million. The difference between the fair value and the recorded liability of $7.0 million
will be recognized over the weighted average remaining service period of approximately 1.8 years.

For the three and six month periods ended June 30, 2012, compensation expense related to deferred, restricted
and performance share units included in cost of sales and operating expenses was a recovery of $0.1 million (2011
– expense of $2.6 million) and an expense of $14.0 million (2011 – expense of $7.4 million), respectively. This
included a recovery of $4.1 million (2011 – expense of $1.1 million) and an expense of $6.2 million (2011 –
expense of $1.7 million) related to the effect of the change in the Company’s share price for the three and six

month periods ended June 30, 2012, respectively.

8. Changes in non-cash working capital:

Changes in non-cash working capital for the three months and years ended June 30, 2012 were as follows:

Three Months Ended

Six Months Ended

Jun 30 Jun 30 Jun 30 Jun 30
2012 2011 2012 2011
Decrease (increase) in non-cash working capital:
Trade and other receivables $ (11,938) $ (6,418) $ (5,150) $ (31,417)
Inventories 23,508 (26,516) 35,949 (7,093)
Prepaid expenses (11,644) (3,413) (10,856) (4,403)
Trade, other payables and accrued liabilities, including
long-term payables included in other long-term liabilities 4,658 4,322 (35,927) 50,923
4,584 (32,025) (15,984) 8,010
Adjustments for items not having a cash effect and working
capital changes relating to taxes and interest paid (17,827) 6,228 (14) 12,178
Changes in non-cash working capital having a cash effect $ (13,243) $ (25,797) $ (15,998) $ 20,188
These changes relate to the following activities:
Operating $ 2,679 $ (22,227) $ (14,745) $ 22,259
Investing (15,922) (3,570) (1,253) (2,071)
Changes in non-cash working capital $ (13,243) $ (25,797) $ (15,998) $ 20,188
METHANEX CORPORATION 2012 SECOND QUARTER REPORT PAGE 28

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

10.

Financial instruments:

The Egypt limited recourse debt facilities bear interest at LIBOR plus a spread. The Company has interest rate swap
contracts to swap the LIBOR-based interest payments for an average aggregated fixed rate of 4.8% plus a spread on
approximately 75% of the Egypt limited recourse debt facilities for the period to March 31, 2015. The Company has
designated these interest rate swaps as cash flow hedges. These interest rate swaps had outstanding notional amounts of
$355 million as at June 30, 2012. The notional amounts decrease over the expected repayment period. At June 30,
2012, these interest rate swap contracts had a negative fair value of $36.8 million (2011 – $41.5 million) recorded in
other long-term liabilities. The fair value of these interest rate swap contracts will fluctuate until maturity.

The Company also designates as cash flow hedges forward exchange contracts to sell euro at a fixed USD exchange
rate. At June 30, 2012, the Company had outstanding forward exchange contracts designated as cash flow hedges to
sell a notional amount of 68.6 million euro in exchange for US dollars and these euro contracts had a negative fair
value of $1.1 million (2011 – positive fair value of $0.3 million) recorded in trade, other payables and accrued
liabilities. Changes in fair value of derivative financial instruments designated as cash flow hedges have been recorded
in other comprehensive income.

Contingent liability:

The Board of Inland Revenue of Trinidad and Tobago issued an assessment in 2011 against the Company’s 63.1%
owned joint venture, Atlas Methanol Company Unlimited (“Atlas”), in respect of the 2005 financial year. All
subsequent tax years remain open to assessment. The assessment relates to the pricing arrangements of certain long-
term fixed price sales contracts that extend to 2014 and 2019 related to methanol produced by Atlas. The impact of the
amount in dispute for the 2005 financial year is nominal as Atlas was not subject to corporation income tax in that
year. Atlas has partial relief from corporation income tax until 2014.

The Company has lodged an objection to the assessment. Based on the merits of the case and legal interpretation,
management believes its position should be sustained.

METHANEX CORPORATION 2012 SECOND QUARTER REPORT PAGE 29
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

Methanex Corporation
Quarterly History (unaudited)

rro]
2012 Q22012 Q12012 2011 Qs Qs Q2 Ql 2010 Qs Qs Q Qr
METHANOL SALES VOLUMES
(thousands of tonnes)
Methanex-produced 1,927 1,001 926 3,853 1,052 983 970 848 3,540 831 885 900 924
Purchased methanol 1,260 569 691 2,815 644 672 664 835 2,880 806 792 678 604
Commission sales * 474, 276 198 846| 208 235 231 172 509] 151 101 107 150
3,661 1,846 1815 7,514 1,904 1,890, 1,865 1,855 6,929) 1,788, 1,778 1,685 1,678
METHANOL PRODUCTION
(thousands of tonnes)
Chile 195 82 113 554] 113 116 142 183 935| 208 194 229 304
New Zealand 384 210 174 830] an 209 207 203 830] 206 200 216 208
Atlas, Trinidad (63.1%) 391 264 127 891 195 170 263 263 884] 266 284 9% 238
Titan, Trinidad 41 196 215 71 180 224 186 121 891 233 217 224 217
Egypt (60%) 366 164 202 532 132 191 178 31 – – – – –
Medicine Hat 232 118 114 329| 130 125 74 – – – – – –
1,979) 1,034 945 3,847 961 1,035 1,050, 801 3,540) 913 895 765 967
AVERAGE REALIZED METHANOL PRICE *
(S/tonne) 383 384 382 374 388 377 363 367 306] 348 286 284 305
(S/gallon) 1.15 1.15 1.15 1.12] 1.17 1.13 1.09 1.10 0.92 1.05 0.86 0.85 0.92
PER SHARE INFORMATION! ($ per share)
Basic net income 0.80 0.56 0.24 2.16 0.69 0.67 0.44 0.37 1.04 0.28 0.31 0.16 0.29
Diluted net income 0.78 0.50 0.23 2.06 0.68 0.59 0.43 0.37 1.03 0.27 0.31 0.15 0.29
Adjusted diluted net income * 0.88 0.47 0.41 1.92 0.69 0.43 0.41 0.39 0.93 0.42 0.13 0.09 0.29
‘ Commission sales represent volumes marketed on a commission basis related to the 36.9% of the Atlas methanol facility and 40% of the Egypt methanol facility that
we do not own,
? Average realized price is calculated as revenue, excluding commissions earned and the Egypt non-controlling interest share of revenue, divided by the total sales volumes
of Methanex-produced (attributable to Methanex shareholders) and purchased methanol.
* Per share information calculated using net income attributable to Methanex shareholders
* This item is a non-GAAP measure that does not have any standardized meaning prescribed by GAAP and therefore is unlikely to be comparable to similar measures
presented by other companies. Refer to Additional Information – Supplemental Non-GAAP Measures for a description of the non-GAAP measure and reconciliation to
¿he most comparable GAAP measure.
PAGE 30

METHANEX CORPORATION 2012 SECOND QUARTER REPORT

QUARTERLY HISTORY

Link al archivo en CMFChile: https://www.cmfchile.cl/sitio/aplic/serdoc/ver_sgd.php?s567=40270420d1b45fc9f6c4af8ff4673ffaVFdwQmVFMXFRVE5OUkVFMVQxUkpNRTVCUFQwPQ==&secuencia=-1&t=1682366909