METHANEX CORPORATION 2013-02-04 T-18:09

NEWS RELEASE Mero

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 FOURTH QUARTER

JANUARY 30, 2013

For the fourth quarter of 2012, Methanex reported Adjusted EBITDA’ of $119 million and Adjusted net income’ of $61
million ($0.64 per share on a diluted basis”). This compares with Adjusted EBITDA’ of $104 million and Adjusted net
income’ of $36 million ($0.38 per share on a diluted basis’) for the third quarter of 2012. For the year ended December
31, 2012, Methanex reported Adjusted EBITDA!’ of $429 million and Adjusted net income’ of $180 million ($1.90 per
Share on a diluted basis’). This compares with Adjusted EBITDA! of $427 million and Adjusted net income’ of $182 million
($1.93 per share on a diluted basis!) for the year ended December 31, 2011.

As a result of continuing challenges related to securing a sustainable natural gas supply in Chile, Methanex recorded a non-
cash before-tax $297 million asset impairment charge ($193 million after-tax) to write down the carrying value of its Chile
assets. Including the asset impairment charge related to the carrying value of its Chile assets, Methanex reported a net loss
attributable to Methanex shareholders for the fourth quarter of 2012 of $140 million ($1.49 loss per share on a diluted
basis). For the year ended December 31, 2012, Methanex reported a net loss attributable to Methanex shareholders of $68
million ($0.73 loss per share on a diluted basis).

John Floren, President and CEO of Methanex commented, “Methanol prices increased during the fourth quarter and this led
to higher Adjusted EBITDA compared to last quarter. Entering the first quarter, methanol demand has continued to be
healthy and the pricing environment has been relatively stable. The longer term outlook for the industry looks very
attractive with demand growth expected to significantly outpace new capacity additions over the next few years.”

Mr. Floren added, “A key area of focus for me as the new CEO will be the successful execution of our value-creating growth
projects in Louisiana and New Zealand. While we are disappointed with our progress on securing natural gas in Chile,
these new initiatives in Louisiana and New Zealand have the potential to add up to three million tonnes of capacity over
the next few years which will enhance supply to our customers and significantly improve cash generation for shareholders.”

Mr. Floren concluded, “With over US$700 million of cash on hand, an undrawn credit facility, a robust balance sheet, and
strong cash flow generation, we are well positioned to invest in the Louisiana project, New Zealand expansion plans and
other strategic growth opportunities and continue to deliver on our commitment to return excess cash to shareholders.”

A conference call is scheduled for January 31, 2013 at 12:00 noon ET (9:00 am PT) to review these fourth quarter results.
To access the call, dial the Conferencing operator ten minutes prior to the start of the call at (416) 340-8527, or toll free at
(877) 240-9772. 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 6328000. Presentation slides summarizing Q4-12 results and a
simultaneous audio-only webcast of the conference call can be accessed from our website at www.methanex.com. The
webcast will be available on the 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 Fourth 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 Fourth 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,
Louisiana project relocation expenses and charges and asset impairment charges. Refer to Additional Information – Supplemental Non-GAAP Measures on page 14
of the attached Interim Report for the three months ended December 31, 2012 for reconciliations to the most comparable GAAP measures.

-end-

For further information, contact:

Jason Chesko
Director, Investor Relations
Tel: 604.661.2600

ME rmapex Share Information Investor Information
e 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
December 31, 2012 symbol Methanex. Contact Information
Methanex Investor Relations
At January 30, 2013 the Company Transfer Agents £ Registrars 1800 – 200 Burrard Street
had 94,363,605 common shares CIBC Mellon Trust Company Vancouver, BC Canada V6C 3M1
issued and outstanding and stock 320 Bay Street E-mail: investf4methanex.com
options exercisable for 2,776,612 Toronto, Ontario, Canada M5H 4A6 Methanex Toll-Free:
additional common shares. Toll free in North America: 1-800-387-0825 1-800-661-8851

FOURTH QUARTER MANAGEMENT'”S DISCUSSION AND ANALYSIS
Except where otherwise noted, all currency amounts are stated in United States dollars.
FINANCIAL AND OPERATIONAL HIGHLIGHTS

= A summary of net income (loss) attributable to Methanex shareholders, Adjusted net income’ and Adjusted diluted net
income per common share! is as follows:

Three Months Ended Years Ended
Dec 31 Sep 30 Dec 31 Dec 31 Dec 31
($ millions except number of shares and per share amounts) 2012 2012 2011 2012 2011
Net income (loss) attributable to Methanex shareholders $ (140) $ (3) $ 64 $ (68) $ 201
Mark-to-market impact of share-based
compensation, net of tax 8 – 1 14 (19)
Louisiana project relocation expenses and charges, net of tax
Cash expense – 21 – 23 –
Non-cash charge – 18 – 18 –
Asset impairment charge, net of tax 193 – – 193 –
Adjusted net income ‘ $ 61 $ 36 $ 65 $ 180 $ 182
Diluted weighted average shares outstanding (millions) 94 94 94 94 94
Adjusted diluted net income per common share ‘ $ 0.64 $ 0.38 $ 0.69 $ 1.90 $ 1.93

= We recorded Adjusted EBITDA!’ of $119 million for the fourth quarter of 2012 compared with $104 million for the third
quarter of 2012. The increase in Adjusted EBITDA’ was primarily due to an increase in average realized price to $389
per tonne for the fourth quarter of 2012 from $373 per tonne for the third quarter of 2012.

= Production for the fourth quarter of 2012 was 1,067,000 tonnes compared with 1,025,000 tonnes for the third quarter of
2012. Refer to the Production Summary section on page 3.

= Sales of Methanex-produced methanol were 1,059,000 tonnes in the fourth quarter of 2012 compared with 1,053,000 in
the third quarter of 2012.

= During the fourth quarter of 2012, we issued $350 million of unsecured notes due in 2019, increased our revolving
credit facility to $400 million and extended the term to 2016, and paid a $0.185 per share dividend to shareholders for a
total of $17 million.

= Asaresult of continuing challenges related to securing a sustainable natural gas supply in Chile, we recorded a non-cash
before-tax $297 million asset impairment charge ($193 million after-tax) to write down the carrying value of our Chile
assets.

= We continue to make good progress with our project to relocate an idle Chile facility to Geismar, Louisiana and the
project remains on schedule and on budget. We recently announced that we have signed an agreement with
Chesapeake Energy to supply the facility/s natural gas requirements for a ten-year period.

Y 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 14 for a description of each non-GAAP
measure and reconciliations to the most comparable GAAP measures.

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

This Fourth Quarter 2012 Management’s Discussion and Analysis (“MD8A”) dated January 30, 2013 for Methanex
Corporation (“the Company”) should be read in conjunction with the Company’s condensed consolidated interim financial

statements for the period ended December 31, 2012 as well as the 2011 Annual Consolidated Financial Statements and
MDAA 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

Years Ended

Dec 31 Sep30 Dec31 Dec 31 Dec 31
($ millions, except per share amounts and where noted) 2012 2012 2011 2012 2011
Production (thousands of tonnes) (attributable to Methanex shareholders) 1,067 1,025 961 4,071 3,847
Sales volumes (thousands of tonnes):
Methanex-produced methanol (attributable to Methanex shareholders) 1,059 1,053 1,052 4,039 3,853
Purchased methanol 664 641 644 2,565 2,815
Commission sales ‘ 176 205 208 855 846
Total sales volumes 1,899 1,899 1,904 7,459 – 7,514
Methanex average non-discounted posted price ($ per tonne) ? 450 433 456 443 440
Average realized price ($ per tonne) 3 389 373 388 382 374
Adjusted EBITDA (attributable to Methanex shareholders) 4 119 104 133 429 427
Adjusted cash flows from operating activities (attributable to
Methanex shareholders) * 101 103 122 403 392
Cash flows from operating activities 98 131 158 458 480
Adjusted net income (attributable to Methanex shareholders) 4 61 36 65 180 182
Net income (loss) attributable to Methanex shareholders (140) (3) 64 (68) 201
Adjusted diluted net income per common share (attributable to
Methanex shareholders) *? 0.64 0.38 0.69 1.90 1.93
Basic net income (loss) per common share (attributable to Methanex shareholders) (1.49) (0.03) 0.69 (0.73) 2.16
Diluted net income (loss) per common share (attributable to Methanex shareholders) (1.49) (0.03) 0.68 (0.73) 2.06
Common share information (millions of shares):
Weighted average number of common shares 94 94 93 94 93
Diluted weighted average number of common shares 94 94 94 94 94
Number of common shares outstanding, end of period 94 94 93 94 93

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.

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.

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.

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 14 for a description of each non-GAAP
measure and reconciliations to the most comparable GAAP measures.

For the three month period and year ended December 31, 2012, stock options have been excluded from the calculation of diluted net loss per common share
(attributable to Methanex shareholders) as their effect would be anti-dilutive. However, for the calculation of adjusted diluted net income per common share
(attributable to Methanex shareholders) stock options have been included in the denominator and the diluted weighted average number of common shares ¡is 95
million for the three month period and year ended December 31, 2012.

METHANEX CORPORATION 2012 FOURTH QUARTER REPORT PAGE 2
MANAGEMENT’S DISCUSSION AND ANALYSIS

PRODUCTION SUMMARY

Annual 2012 2011 Q4 2012 Q3 2012 Q4 2011

(thousands of tonnes) Capacity * Production Production! Production Production Production
Chile 1, lll and IV ? 2,800 313 554 59 59 113
New Zealand * 2,230 1,108 830 378 346 211
Atlas (Trinidad) (63.1% interest) 1,150 826 891 180 255 195
Titan (Trinidad) 900 786 711 189 186 180
Egypt (60% interest) 760 557 532 129 62 132
Medicine Hat 470 481 329 132 117 130
8,310 4,071 3,847 1,067 1,025 961

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 the Chile 11 facility to Geismar, Louisiana. The Chile capacity in the
above table excludes the 1.0 million tonnes of annual production capacity which is being relocated to Louisiana.

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 below).

Chile

We continue to operate our Chile facilities significantly below site capacity and during the fourth quarter of 2012 we
produced 59,000 tonnes in Chile operating one plant at approximately 20% of capacity.

While investments have been made over the last few years for natural gas exploration and development in southern Chile,
the timeline for a potential significant increase in gas production is much longer than we had originally anticipated. As a
result, the short-term outlook for gas supply in Chile continues to be challenging and we recently announced that we
expect to idle our Chile operations in March 2013 because we do not expect to have sufficient natural gas feedstock to
keep our plant operating through the southern hemisphere winter. We are continuing to work with Empresa Nacional del
Petroleo (ENAP) and others to secure sufficient natural gas to sustain our operations and while the restart of a Chile plant is
possible later in 2013, the restart is dependent on securing a sustainable natural gas position to operate over the medium
term.

As a result of the continuing challenges related to securing a sustainable natural gas feedstock in Chile, we recorded a non-
cash before-tax $297 million asset impairment charge ($193 million after-tax) to write down the carrying value of our Chile
assets to $245 million. The $245 million carrying value excludes the first Chile facility that is being relocated to Geismar,
Louisiana but includes the second facility that management also intends to relocate to Geismar.

The future of our Chile operations is primarily dependent on the level of exploration and development in southern Chile
and our ability to secure a sustainable natural gas supply to our facilities on economic terms.

New Zealand

Our New Zealand methanol facilities produced 378,000 tonnes of methanol in the fourth quarter of 2012 operating at the
current annual site capacity of 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 up to a further 900,000
tonnes of annual production in New Zealand.

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 189,000 tonnes in the fourth quarter of 2012 compared with 186,000 tonnes in the third quarter of 2012.
Production in the fourth quarter of 2012 was impacted by periodic natural gas curtailments.

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

The Atlas facility produced 180,000 tonnes in the fourth quarter of 2012 compared with 255,000 tonnes in the third quarter
of 2012. The Atlas facility was shut down at the end of September 2012 for repairs and returned to production at the end of
October 2012.

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 129,000 tonnes (60% interest) in the fourth quarter of 2012 compared with 62,000
tonnes in the third quarter of 2012. We have a 60% equity interest in the facility and marketing rights for 100% of the
production. Production during the fourth quarter of 2012 was lower than capacity due to an unplanned maintenance
outage and natural gas supply restrictions.

During the third and fourth quarters of 2012, the Egypt facility experienced periodic natural gas supply restrictions as a
result of increased electricity demand and ongoing operating issues with the upstream gas infrastructure. This situation may
persist in the future and become more acute during the summer months when electricity demand is at its peak.

Medicine Hat

Our 470,000 tonne per year facility in Medicine Hat, Alberta produced 132,000 tonnes in the fourth quarter of 2012
compared with 117,000 tonnes during the third quarter of 2012. We are currently debottlenecking the Medicine Hat
facility which will add a further 90,000 tonnes of annual production capacity to our Medicine Hat operations by the end of
the third quarter of 2013.

FINANCIAL RESULTS

For the fourth quarter of 2012 we recorded Adjusted EBITDA of $119 million and Adjusted net income of $61 million
($0.64 per share on a diluted basis). This compares with Adjusted EBITDA of $104 million and Adjusted net income of $36
million ($0.38 per share on a diluted basis) for the third quarter of 2012. For the year ended December 31, 2012, we
reported Adjusted EBITDA of $429 million and Adjusted net income of $180 million ($1.90 per share on a diluted basis)
compared with Adjusted EBITDA of $427 million and Adjusted net income of $182 million ($1.93 per share on a diluted
basis) for the year ended December 31, 2011.

After the non-cash before-tax $297 million asset impairment charge ($193 million after-tax) related to the carrying value of
our Chile assets, we reported a net loss attributable to Methanex shareholders for the fourth quarter of 2012 of $140 million
($1.49 loss per share on a diluted basis). For the year ended December 31, 2012, we reported a net loss attributable to
Methanex shareholders of $68 million ($0.73 loss per share on a diluted basis). For further details, refer to note 4 of the
attached condensed consolidated interim financial statements for the period ended December 31, 2012.

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, including asset impairment charges and
Louisiana project relocation expenses and charges. Refer to Additional Information – Supplemental Non-GAAP Measures
on page 14 for a further discussion on how we calculate these measures.

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

A reconciliation from net income (loss) 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 Years Ended
Dec 31 Sep 30 Dec 31 Dec 31 Dec 31
($ millions except number of shares and per share amounts) 2012 2012 2011 2012 2011
Net income (loss) attributable to Methanex shareholders $ (140) $ (3) $ 64 $ (68) $ 201
Mark-to-market impact of share-based
compensation, net of tax 8 – 1 14 (19)
Louisiana project relocation expenses and charges, net of tax
– 21 – 23 –

Cash expense

Non-cash charge – 18 – 18 –
Asset impairment charge, net of tax 193 – – 193 –
Adjusted net income ‘ $ 61 $ 36 $ 65 $ 180 $ 182
Diluted weighted average shares outstanding (millions) 94 94 94 94 94
Adjusted diluted net income per common share 12 $ 0.64 $ 0.38 $ 0.69 $ 1.90 $ 1.93

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

Three Months Ended Years Ended
Dec 31 Sep 30 Dec 31 Dec 31 Dec 31
2012 2012 2011 2012 2011

($ millions)

Consolidated statements of income:

Revenue $ 696 $ 655 $ 696 $ 2,673 $ 2,608
Cost of sales and operating expenses, excluding
mark-to-market impact of share-based compensation (565) (539) (546) (2,171) (2,128)
131 116 150 502 480
Comprised of:
Adjusted EBITDA (attributable to Methanex shareholders) 1 119 104 133 429 427
Attributable to non-controlling interests 12 12 17 73 53
131 116 150 502 480
Depreciation and amortization (42) (47) (43) (172) (157)
Mark-to-market impact of share-based compensation (8) – (1) (16) 21
Louisiana project relocation expenses and charges – (61) – (65) –
Asset impairment charge (297) – – (297) –
Operating income ‘ (216) 8 106 (48) 344
Finance costs (15) (18) (18) (71) (62)
Finance income and other expenses 3 (3) (3) 1 2
Income tax recovery (expense) 93 15 (12) 84 (56)
Net income (loss) $ (135) $ 2$ 73 $ (34) $ 228
Net income (loss) attributable to Methanex shareholders $ (140) $ (3 $ 64 $ (68) $ 201

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 14 for a description of each non-GAAP
measure and reconciliations to the most comparable GAAP measures.
For the three month period and year ended December 31, 2012, stock options have been excluded from the calculation of diluted net loss per common share
(attributable to Methanex shareholders) as their effect would be anti-dilutive. However, for the calculation of adjusted diluted net income per common share
(attributable to Methanex shareholders) stock options have been included in the denominator and the diluted weighted average number of common shares is 95
million for the three month period and year ended December 31, 2012.

METHANEX CORPORATION 2012 FOURTH 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 19.

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

Q4 2012 Q4 2012 2012

compared with compared with compared with

($ millions) Q3 2012 Q4 2011 2011

Average realized price $ 29 $ 4 $ 57

Sales volume 4 4 (5)

Total cash costs (18) (22) (50)

Increase (decrease) in Adjusted EBITDA $ 15 $ (14) $ 2
Average realized price

Three Months Ended Years Ended

Dec 31 Sep 30 Dec 31 Dec 31 Dec 31

($ per tonne, except where noted) 2012 2012 2011 2012 2011

Methanex average non-discounted posted price * 450 433 456 443 440

Methanex average realized price 389 373 388 382 374

Average discount 14% 14% 15% 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.

Overall methanol market conditions have remained balanced and pricing has been relatively stable during the periods
presented (refer to Supply/Demand Fundamentals section on page 11 for more information). Our average non-discounted
posted price for the fourth quarter of 2012 was $450 per tonne compared with $433 per tonne for the third quarter of 2012
and $456 per tonne for the fourth quarter of 2011. Our average realized price for the fourth quarter of 2012 was $389 per
tonne compared with $373 per tonne for the third quarter of 2012 and $388 per tonne for the fourth quarter of 2011. The
change in average realized price for the fourth quarter of 2012 increased Adjusted EBITDA by $29 million compared with
the third quarter of 2012 and increased Adjusted EBITDA by $4 million compared with the fourth quarter of 2011. Our
average realized price for the year ended December 31, 2012 was $382 per tonne compared with $374 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 higher in the fourth quarter of 2012 compared with the
third quarter of 2012 by 29,000 tonnes and the fourth quarter of 2011 by 27,000 tonnes and this resulted in higher
Adjusted EBITDA by $4 million for each comparable period. Methanol sales volumes excluding commission sales volumes
were lower for the year ended December 31, 2012 compared with the comparable period in 2011 by 64,000 tonnes and
this resulted in lower Adjusted EBITDA by $5 million.

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 FOURTH 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:

Q4 2012 Q4 2012 2012

compared with compared with compared with

($ millions) Q3 2012 Q4 2011 2011
Methanex-produced methanol costs $ (8) $ (3) $ (34)
Insurance recovery 9 (8) (6)
Proportion of Methanex-produced methanol sales (4) (3) 36
Purchased methanol costs (4) 2 (22)
Logistics costs (5) (2) (10)
Other, net (6) (8) (14)

$ (18) $ (22) $ (50)

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. The
unique contractual terms of each natural gas purchase agreement result in a different cost structure for each of our facilities.
For all periods presented, Methanex-produced methanol costs were higher due to the impact of higher methanol pricing on
natural gas costs and a change in the mix of production sold from inventory.

Insurance recovery
We experienced an equipment failure at our Atlas facility in July 2011. Our operations are covered by business
interruption insurance and we finalized our claim and recorded a recovery of $9 million in the fourth quarter of 2012.

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 fourth quarter of 2012 compared with the third quarter of 2012 and the fourth quarter of 2011, lower proportion of
Methanex-produced methanol sales decreased Adjusted EBITDA by $4 million and $3 million, respectively.

For the year ended December 31, 2012 compared with the same period in 2011, a higher proportion of Methanex-
produced methanol sales increased Adjusted EBITDA by $36 million. The impact of higher sales volumes from the New
Zealand, Egypt and Medicine Hat facilities was partially offset by lower sales volumes from the Chile facilities.

Purchased methanol costs
Changes in purchased methanol costs for all periods presented are primarily as a result of changes in methanol pricing.

Logistics costs

Logistics costs vary from period to period depending on the levels of production from each of our production facilities and
the resulting impact on our supply chain. For the year ended December 31, 2012 compared with the same period in 2011,
the logistics cost variance was impacted by a one-time $7 million charge to earnings to terminate a time charter vessel lease
contract.

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

Other, net

In October 2012, we completed a restructuring of our Chile operations which reduced the size of our workforce and
resulted in a $5 million charge in the fourth quarter of 2012. The remaining change in other, net is primarily due to a
portion of fixed manufacturing costs being charged directly to earnings rather than to inventory due to lower production at
our facilities in Chile and Egypt.

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. 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. 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 Years Ended

Dec 31 Sep 30 Dec 31 Dec 31 Dec 31

2012 2012 2011 2012 2011

Methanex Corporation share price* $ 31.87 $ 2854 $ 22.82 $ 31.87 $ 22.82
Grant-date fair value expense included in Adjusted

EBITDA and Adjusted net income $ 3.$ 3.$ 3 $ 20 $ 16

Mark-to-market impact due to change in share price 8 – 1 16 (21)

Total share-based compensation expense (recovery) $ 1 $ 30,$ 4 $ 36 $ (5)

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 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.

Louisiana Project Relocation Expenses and Charges

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 IFRS, certain costs associated
with relocating an asset are not eligible for capitalization and are required to be charged directly to earnings. During the
second and third quarters of 2012, we recorded cash expenses to earnings of $4 million ($2 million after tax) and $35
million ($21 million after-tax), respectively, of Louisiana project relocation expenses. In addition, in association with this
decision, a non-cash $26 million ($18 million after-tax) charge was recorded to earnings in the third quarter of 2012 related
to the carrying value of the Chile Il facility that is being relocated to Louisiana.

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

Depreciation and Amortization

Depreciation and amortization was $42 million for the fourth quarter of 2012 compared with $47 million for the third
quarter of 2012 and $43 million for the fourth quarter of 2011. Depreciation and amortization was lower in the fourth
quarter of 2012 compared with the third quarter of 2012 primarily as a result of a higher proportion of depreciation being
charged directly to earnings rather than to inventory in the third quarter due to lower production from the Egypt facility.
Depreciation and amortization was $172 million for the year ended December 31, 2012 compared with $157 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 Years Ended
Dec 31 Sep 30 Dec 31 Dec 31 Dec 31
($ millions) 2012 2012 2011 2012 2011
Finance costs before capitalized interest $ 16 $ 19 $ 18 $ 73 $ 69
Less capitalized interest (0 (1) – (2) (7)
Finance costs $ 15 $ 18 $ 18 $ 71 $ 62

Finance costs before capitalized interest primarily relate to interest expense on the unsecured notes and limited recourse
debt facilities.

Capitalized interest in 2011 relates to interest costs capitalized during the construction of the 1.26 million tonne per year
methanol facility in Egypt (100% basis) which commenced operations in March 2011. Capitalized interest in the third and
fourth quarters of 2012 relates to interest costs capitalized for the Louisiana project.

Finance Income and Other Expenses

Three Months Ended Years Ended
Dec 31 Sep 30 Dec 31 Dec 31 Dec 31
($ millions) 2012 2012 2011 2012 2011
Finance income and other expenses $ 305 $ 3) $ 1.$ 2

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 FOURTH QUARTER REPORT PAGE 9
MANAGEMENT’S DISCUSSION AND ANALYSIS

Income Taxes

A summary of our income taxes for 2012 compared with 2011 is as follows:

Year Ended
Dec 31 2012

Amounts excluding Louisiana Project
Relocation Expenses and Charges and an

Louisiana Project Relocation Expenses
and Charges and an Asset Impairment

($ millions) Asset Impairment Charge Charge Total
Profit (loss) before income tax expense $ 243.7 $ (362.0) (118.3)
Income tax recovery (expense) (44.3) 128.0 83.7
Net income (loss) $ 199.4 $ (234.0) (34.6)
Effective tax rate 18% 35% 71%
Year Ended
Dec 31 2011
Amounts excluding Louisiana Project Louisiana Project Relocation Expenses
Relocation Expenses and Charges and an and Charges and an Asset Impairment
($ millions) Asset Impairment Charge Charge Total
Profit before income tax expense $ 283.9 $ – 283.9
Income tax expense (55.9) – (55.9)
Net income $ 228.0 $ – 228.0
Effective tax rate 20% – 20%

For the year ended December 31, 2012, the effective tax rate excluding income taxes related to Louisiana project relocation

expenses and charges and the asset impairment charge was 18% compared with 20% for the year ended December 31,

2011.

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 2012, we earned a higher proportion of our consolidated income from

methanol produced in jurisdictions with low effective tax rates and this contributed to a lower effective tax rate compared

with 2011.

METHANEX CORPORATION 2012 FOURTH QUARTER REPORT

MANAGEMENT’S DISCUSSION AND ANALYSIS

PAGE 10

SUPPLY/DEMAND FUNDAMENTALS

We estimate that methanol demand, excluding methanol demand from integrated methanol to olefins facilities, is currently
approximately 52 million tonnes on an annualized basis.

Traditional chemical derivatives consume about two-thirds of global methanol demand and growth is correlated to
industrial production. Demand for methanol in traditional chemical derivatives has remained relatively stable.

Energy-related applications consume about one third of global
methanol demand and over the last few years high oil prices have

driven strong demand growth for methanol into energy Methanex Non-Discounted Regional Posted Prices *
applications such as gasoline blending and DME, primarily in Jan Dec Nov Oct
. . . . . . (US$ per tonne) 2013 2012 2012 2012
China. Growth of methanol blending into gasoline in China has
been particularly strong and we believe that future growth in this United States 482 482 482 439
2
application is supported by regulatory changes in that country. Europe 476 437 437 437
Asia 435 435 435 435

Many provinces in China have implemented fuel blending
Discounts from our posted prices are offered to customers based on
various factors.

€370 for Q1 2013 (Q4 2012 – €340) converted to United States
dollars.

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

2

100% methanol, respectively). Methanol demand into olefins
(“MTO”) is emerging as a significant methanol derivative. In China, there are three integrated and one merchant MTO
plants in production and there is a second merchant plant currently being commissioned which could consume up to 1.8
million tonnes of methanol per year. We believe demand potential into energy-related applications and olefins production
will continue to grow.

During the fourth quarter of 2012, industry outages contributed to upward pressure on pricing in Europe and North
America, while pricing in Asia was relatively stable. Our average non-discounted price in the fourth quarter was $450 per
tonne. Entering the first quarter, market conditions and the pricing environment are relatively stable. Our European non-
discounted price for the first quarter of 2013 increased to €370 per tonne ($476 per tonne) and we recently announced our
North American non-discounted price for February at $482 per tonne, which is unchanged from January.

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. We are currently adding 90,000 tonnes of production capacity to
our Medicine Hat, Alberta facility and we are working on other initiatives which could increase annual production in New
Zealand by up to 0.9 million tonnes. We are also relocating an idle Chile facility to Geismar, Louisiana which is on track to
add 1.0 million tonnes of annual production capacity by the end of 2014. We expect that production from new capacity in
China will be consumed in that country and that higher cost production capacity in China will need to operate in order to
satisfy demand growth.

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

LIQUIDITY AND CAPITAL RESOURCES
Cash flows from operating activities

Cash flows from operating activities in the fourth quarter of 2012 were $98 million compared with $131 million for the
third quarter of 2012 and $158 million for the fourth quarter of 2011. Cash flows from operating activities for the year
ended December 31, 2012 were $458 million compared with $480 million for the same period in 2011.

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

Q4 2012 Q4 2012 2012

compared with compared with compared with

($ millions) Q3 2012 Q4 2011 2011
Increase (decrease) in Adjusted EBITDA (attributable to Methanex shareholders) $ 15 $ (14) $ 2
Cash flows from operating activities attributable to non-controlling interests – (5) 20
Changes in non-cash working capital (66) (34) (14)
Income taxes paid (10) – 16
Cash portion of Louisiana project relocation expenses and charges 35 – (39)
Other 102) (7) (7)
Decrease in cash flows from operating activities $ (33) $ (60) $ (22)

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 the cash portion of Louisiana project
relocation expenses and charges, were $101 million in the fourth quarter of 2012 compared with $103 million for the third
quarter of 2012 and $122 million for the fourth quarter of 2011. Adjusted cash flows from operating activities for the year
ended December 31, 2012 were $403 million compared with $392 million for the same period in 2011.

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

Q4 2012 Q4 2012 2012

compared with compared with compared with

($ millions) Q3 2012 Q4 2011 2011
Increase (decrease) in Adjusted EBITDA (attributable to Methanex shareholders) $ 15 $ (14) $ 2
Income taxes paid (10) – 16
Other (7) (7) (7)
Increase (decrease) in Adjusted cash flows from operating activities $ (2) $ (21) $ 11

Refer to the Additional Information – Supplemental Non-GAAP Measures section on page 14 for a reconciliation of Adjusted
cash flows from operating activities to the most comparable GAAP measure.

During the fourth quarter of 2012, we paid a quarterly dividend of $0.185 per share, or $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 fourth quarter of 2012, we issued $350 million of 3.25% unsecured
notes due in 2019 and our cash balance at December 31, 2012 was $746 million, including $36 million related to the non-
controlling interest in Egypt. 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. Also during the fourth quarter, we extended the maturity on our
revolving credit facility to 2016 and increased the amount to $400 million.

METHANEX CORPORATION 2012 FOURTH QUARTER REPORT PAGE 12
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 $140 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 with estimated project costs of approximately $550 million. The plant
is expected to be operational by the end of 2014 and during 2012 we spent $113 million on the project. We are in the
process of debottlenecking the Medicine Hat facility and are also considering other projects in New Zealand to increase
operating capacity. The projects in New Zealand, if approved, and Medicine Hat will result in additional capital
expenditures of approximately $160 million by the end of 2013. We believe that we have the financial capacity to fund
these growth initiatives with cash on hand, cash generated from operations and the undrawn bank facility.

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

Entering the first quarter 2013, methanol demand has remained healthy and prices have been relatively stable.

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 FOURTH QUARTER REPORT PAGE 13
MANAGEMENT’S DISCUSSION AND ANALYSIS

CONTROLS AND PROCEDURES

For the three months ended December 31, 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 will result in a significant presentation impact. We currently account for our 63.1%
interest in Atlas Methanol Company using proportionate consolidation accounting and upon adoption of these new
standards effective January 1, 2013 we will account for this entity using equity accounting.

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, net income attributable to Methanex shareholders,
because it excludes finance costs, finance income and other expenses, income tax expense (recovery), depreciation and
amortization, mark-to-market impact of share-based compensation, Louisiana project relocation expenses and charges and
asset impairment charges.

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 FOURTH QUARTER REPORT PAGE 14
MANAGEMENT’S DISCUSSION AND ANALYSIS

The following table shows a reconciliation from net income (loss) attributable to Methanex shareholders to Adjusted

EBITDA:
Three Months Ended Years Ended

Dec 31 Sep 30 Dec 31 Dec 31 Dec 31

($ millions) 2012 2012 2011 2012 2011
Net income (loss) attributable to Methanex shareholders $ (140) $ (3) $ 64 $ (68) $ 201
Finance costs 15 18 18 71 62
Finance income and other expenses (3) 3 3 (1) (2)
Income tax expense (recovery) (93) (15) 12 (84) 56
Depreciation and amortization 42 48 43 172 157
Mark-to-market impact of share-based compensation 8 – 1 16 (21)
Louisiana project relocation expenses and charges – 61 – 65 –
Asset impairment charge 297 – – 297 –
Non-controlling interests adjustment 1 (7) (8) (8) (39) (26)
Adjusted EBITDA (attributable to Methanex shareholders) $ 119 $ 104 $ 133 $ 429 $ 427

1 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 and items that are considered by management to be non-
operational, including asset impairment charges and Louisiana project relocation charges and expenses. The following table
shows a reconciliation of net income (loss) attributable to Methanex shareholders to Adjusted net income and the

calculation of Adjusted diluted net income per common share:

Three Months Ended

Years Ended

Dec 31 Sep 30 Dec 31 Dec 31 Dec 31
($ millions except number of shares and per share amounts) 2012 2012 2011 2012 2011
Net income (loss) attributable to Methanex shareholders $ (140) $ (3) $ 64 $ (68) $ 201
Mark-to-market impact of share-based compensation 8 – 1 16 (21)
Louisiana project relocation expenses and charges
Cash expense – 35 – 39 –
Non-cash charge – 26 – 26 –
Asset impairment charge 297 – – 297 –
Income tax expense (recovery) related to above items (104) (22) – (130) 2
Adjusted net income $ 61 $ 36 $ 65 $ 180 $ 182
Diluted weighted average shares outstanding 94 94 94 94 94
Adjusted diluted net income per common share 1 $ 0.64 $ 0.38 $ 0.69 $ 1.90 $ 1.93

1 For the three month period and year ended December 31, 2012, stock options have been excluded from the calculation of diluted net loss per common share
(attributable to Methanex shareholders) as their effect would be anti-dilutive. However, for the calculation of adjusted diluted net income per common share
(attributable to Methanex shareholders) stock options have been included in the denominator and the diluted weighted average number of common shares is 95

million for the three month period and year ended December 31, 2012.

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

PAGE 15

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 the cash portion of Louisiana project relocation expenses and charges.

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

activities:
Three Months Ended Years Ended
Dec 31 Sep 30 Dec 31 Dec 31 Dec 31
($ millions) 2012 2012 2011 2012 2011
Cash flows from operating activities 98 $ 131 $ 158 $ 458 $ 480
Deduct non-controlling interest adjustment:
Net income (5) (4) (9) (34) (27)
Non-cash items (7) (8) (8) (39) (26)-
Changes in non-cash working capital 15 (51) (19) (21) (35)
Cash portion of Louisiana project relocation expenses
and charges – 35 – 39 –
Adjusted cash flows from operating activities
(attributable to Methanex shareholders) 101 $ 103 $ 122 $ 403 $ 392
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
Dec 31 Sep 30 Jun 30 Mar 31
($ millions, except per share amounts) 2012 2012 2012 2012
Revenue 696 $ 655 $ 656 $ 666
Adjusted EBITDA ? ? 119 104 113 93
Net income (loss) 1 (140) (3) 52 22
Adjusted net income * ? 61 36 44 39
Basic net income (loss) per common share 1 (1.49) (0.03) 0.56 0.24
Diluted net income (loss) per common share 1 (1.49) (0.03) 0.50 0.23
Adjusted diluted net income per share * ? 0.64 0.38 0.47 0.41
Three Months Ended
Dec 31 Sep 30 Jun 30 Mar 31
($ millions, except per share amounts) 2011 2011 2011 2011
Revenue 696 $ 670 $ 623 $ 619
Adjusted EBITDA * ? 133 111 102 81
Net income ‘ 64 62 41 35
Adjusted net income ? ? 65 40 39 37
Basic net income per common share 1 0.69 0.67 0.44 0.37
Diluted net income per common share * 0.68 0.59 0.43 0.37
Adjusted diluted net income per share ‘ ? 0.69 0.43 0.41 0.39

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 on page 14 for a description of each non-GAAP

measure and reconciliations to the most comparable GAAP measures.

METHANEX CORPORATION 2012 FOURTH QUARTER REPORT

MANAGEMENT’S DISCUSSION AND ANALYSIS

PAGE 16

FORWARD-LOOKING INFORMATION WARNING

This Fourth Quarter 2012 Management’s Discussion and Analysis ((MDK8A”) as well as comments made during the Fourth
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 “nu “ill/ “potential,” “estimates,”

expects,” “may,

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,

e expected new methanol supply or restart of idled
capacity 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,

e capital committed by third parties towards future
natural gas exploration and development in the
vicinity of our plants,

e our 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,

e 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,

e availability of committed credit facilities and other

financing,

e our shareholder distribution strategy and anticipated

distributions to shareholders,

+ commercial viability and timing of, or our 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 Geismar, Louisiana
(“Geismar”) and certain initiatives in New Zealand,

+ our 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 operations in Egypt or our

financial condition as a consequence of civil unrest or
actions taken or inaction 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:

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

e the success of our natural gas exploration and
development in Chile and New Zealand and our ability
to procure economically priced natural gas in Chile,
New Zealand, Trinidad, Canada and the United States,

e production rates of our facilities,

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

e receipt of remaining required permits in connection with
the Geismar project,

e receipt or issuance of third party consents or approvals,
including, without limitation, governmental registrations
of land title and related mortgages in Egypt, governmental
approvals related to natural gas exploration rights or
rights to purchase natural gas,

PAGE 17

e receipt of governmental approvals related to natural gas
exploration rights,

e the establishment of new fuel standards,

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

e the availability of committed credit facilities and other
financing,

e timing of completion and cost of the Geismar project and
our initiatives to increase production in New Zealand
and Canada,

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 a material negative impact from political
instability in the countries in which we operate,

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

satisfaction of conditions precedent contained in the
Geismar project natural gas supply agreement.

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:

+ 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, coal, 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 and 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

e conditions within the natural gas delivery systems that
may prevent delivery of our natural gas supply
requirements,

competing demand for natural gas, especially with
respect to domestic needs for gas and electricity in Chile
and Egypt,

actions of governments and governmental authorities,
including, without limitation, 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,

satisfaction of conditions precedent contained in the
Geismar project natural gas supply agreement, and

other risks described in our 2011 Management’s
Discussion and Analysis and this Fourth 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 FOURTH QUARTER REPORT
MANAGEMENT’S DISCUSSION AND ANALYSIS

PAGE 18

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 14 for a description of each non-GAAP measure and reconciliations to the most comparable GAAP measures).

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” interests 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

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

METHANEX CORPORATION 2012 FOURTH QUARTER REPORT PAGE 19
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

Years Ended

Dec 31 Dec 31 Dec 31 Dec 31
2012 2011 2012 2011
Revenue 695,654 $ 696,499 $ 2,672,954 $ 2,608,037
Cost of sales and operating expenses (572,968) (546,873) (2,187,288) (2,107,320)
Depreciation and amortization (41,543) (43,558) (171,635) (156,667)
Louisiana project relocation expenses and charges (note 3) – – (64,543) –
Asset impairment charge (note 4) (296,976) – (296,976) –
Operating income (loss) (215,833) 106,068 (47,488) 344,050
Finance costs (note 6) (14,880) (17,868) (71,314) (61,797)
Finance income and other expenses 2,521 (2,891) 509 1,667
Profit (loss) before income tax expense (228,192) 85,309 (118,293) 283,920
Income tax recovery (expense):
Current (8,301) (8,897) (30,302) (36,241)
Deferred 101,517 (3,292) 114,020 (19,679)
93,216 (12,189) 83,718 (55,920)
Net income (loss) (134,976) $ 73,120 $ (34,575) $ 228,000
Attributable to:
Methanex Corporation shareholders (139,853) 63,871 (68,105) 201,326
Non-controlling interests 4,877 9,249 33,530 26,674
(134,976) $ 73,120 $ (34,575) $ 228,000
Income (loss) for the period attributable to Methanex Corporation shareholders
Basic net income (loss) per common share (note 7) (1.49) $ 0.69 $ (0.73) $ 2.16
Diluted net income (loss) per common share (note 7) (1.49) $ 0.68 $ (0.73) $ 2.06
Weighted average number of common shares outstanding 94,092,591 93,239,059 93,755,509 93,026,482
Diluted weighted average number of common shares outstanding 94,092,591 94,236,703 93,755,509 94,360,956
See accompanying notes to condensed consolidated interim financial statements.
METHANEX CORPORATION 2012 FOURTH QUARTER REPORT
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) PAGE 20

Methanex Corporation

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

Three Months Ended Years Ended
Dec 31 Dec 31 Dec 31 Dec 31
2012 2011 2012 2011
Net income (loss) (134,976) $ 73,120 $ (34,575) $ 228,000
Other comprehensive income (loss):
Change in fair value of forward exchange contracts, net of tax 23 361 (320) 326
Change in fair value of interest rate swap contracts, net of tax (690) (157) (5,794) (3,764)
Realized loss on interest rate swap contracts reclassified to interest expense, net of tax 2,777 3,995 11,198 12,816
Realized loss on interest rate swap contracts reclassified to property, plant and equipment – – – 7,279
Actuarial losses on defined benefit pension plans, net of tax (1,135) (10,258) (1,135) (10,258)
975 (6,059) 3,949 6,399
Comprehensive income (loss) (134,001) $ 67,061 $ (30,626) $ 234,399
Attributable to:
Methanex Corporation shareholders (139,712) 56,275 (66,317) 201,193
Non-controlling interests 5,711 10,786 35,691 33,206
(134,001) $ 67,061 $ (30,626) $ 234,399
See accompanying notes to condensed consolidated interim financial statements.
METHANEX CORPORATION 2012 FOURTH QUARTER REPORT
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) PAGE 21

Methanex Corporation

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

Dec 31 Dec 31
AS AT 2012 2011
ASSETS
Current assets:
Cash and cash equivalents $ 745,610 $ 350,711
Trade and other receivables 429,203 378,430
Inventories (note 2) 253,023 281,015
Prepaid expenses 28,314 24,465
1,456,150 1,034,621
Non-current assets:
Property, plant and equipment (notes 3 and 4) 2,014,748 2,233,023
Other assets (note 4) 73,724 125,931
2,088,472 2,358,954
$ 3,544,622 $ 3,393,575
LIABILITIES AND EQUITY
Current liabilities:
Trade, other payables and accrued liabilities $ 353,744 $ 327,130
Current maturities on long-term debt (note 5) 53,334 251,107
Current maturities on finance leases 7,367 6,713
Current maturities on other long-term liabilities 26,536 18,031
440,981 602,981
Non-current liabilities:
Long-term debt (note 5) 1,191,891 652,148
Finance leases 48,612 55,979
Other long-term liabilities 193,823 178,172
Deferred income tax liabilities 191,578 302,332
1,625,904 1,188,631
Equity:
Capital stock 481,779 455,434
Contributed surplus 15,481 22,281
Retained earnings 805,661 942,978
Accumulated other comprehensive loss (13,045) (15,968)
Shareholders’ equity 1,289,876 1,404,725
Non-controlling interests 187,861 197,238
Total equity 1,477,737 1,601,963
$ 3,544,622 $ 3,393,575
See accompanying notes to condensed consolidated interim financial statements.
METHANEX CORPORATION 2012 FOURTH QUARTER REPORT
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) PAGE 22

Methanex Corporation
Consolidated Statements of Changes in Equity (unaudited)
(thousands of U.S. dollars, except number of common shares)

Accumulated
Number of Other Non-
Common Capital Contributed Retained Comprehensive] Shareholders’ Controlling| Total
Shares Stock Surplus Earnings Loss Equity Interests Equity
Balance, December 31, 2010 92,632,022 |$ 440,092 $ 25,393 $ 813,819 $ (26,093)| $ 1,253,211 $ 156,412 1,409,623
Net income 201,326 – 201,326 26,674 228,000
Other comprehensive income (loss) (10,258) 10,125 (133) 6,532 6,399
Compensation expense recorded
for stock options – – 837 – – 837 – 837
Issue of shares on exercise of
stock options 615,733 11,393 – – – 11,393 – 11,393
Reclassification of grant date
fair value on exercise of
stock options – 3,949 (3,949) – – – – –
Dividend payments to Methanex
Corporation shareholders – – – (61,909) – (61,909) – (61,909)
Distributions to
non-controlling interests – – – – – – (11,580) (11,580)
Equity contributions by
non-controlling interests – – – – – – 19,200 19,200
Balance, December 31, 2011 93,247,755 455,434 22,281 942,978 (15,968) 1,404,725 197,238 1,601,963
Net income (loss) – – – (68,105) – (68,105) 33,530 (34,575)
Other comprehensive income (loss) – – – (1,135) 2,923 1,788 2,161 3,949
Compensation expense recorded
for stock options – – 726 – – 726 – 726
Issue of shares on exercise of
stock options 1,062,215 18,819 – – – 18,819 – 18,819
Reclassification of grant date
fair value on exercise of
stock options – 7,526 (7,526) – – – – –
Dividend payments to Methanex
Corporation shareholders – – – (68,077) – (68,077) – (68,077)
Distributions to
non-controlling interests . – – – . . (46,068) (46,068)
Equity contributions by
non-controlling interests – – – – – – 1,000 1,000
Balance, December 31, 2012 94,309,970 |$ 481,779 $ 15,481 $ 805,661 $ (13,045)| $ 1,289,876 $ 187,861 |$ 1,177,737

See accompanying notes to condensed consolidated interim financial statements.

METHANEX CORPORATION 2012 FOURTH QUARTER REPORT
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) PAGE 23

Methanex Corporation

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

Three Months Ended

Years Ended

Dec 31 Dec 31 Dec 31 Dec 31
2012 2011 2012 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ (134,976) $ 73120 $ (34,575) $ 228,000
Add (deduct) non-cash items:
Depreciation and amortization 41,543 43,558 171,635 156,667
Louisiana project relocation non-cash charges – – 25,688 –
Asset impairment charge 296,976 – 296,976 –
Income tax expense (recovery) (93,216) 12,189 (83,718) 55,920
Share based compensation expense (recovery) 11,027 3,859 35,907 (4,890)
Finance costs 14,880 17,868 71,314 61,797
Other 6,119 4,408 16,578 3,459
Income taxes paid (14,191) (13,935) (29,528) (46,331)
Other cash payments, including share-based compensation (14,897) (1,484) (33,774) (10,303)
Cash flows from operating activities before undernoted 113,265 139,583 436,503 444,319
Changes in non-cash working capital (note 9) (14,873) 18,851 21,774 35,388
98,392 158,434 458,277 479,707
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend payments to Methanex Corporation shareholders (17,428) (15,852) (68,077) (61,909)
Interest paid, including interest rate swap settlements (6,371) (5,062) (64,914) (60,467)
Net proceeds on issue of long-term debt 343,796 – 590,344 2,700
Repayment of long-term debt and limited recourse debt (8,135) (8,133) (251,105) (49,650)
Changes in project debt reserve accounts (4,916) 3,918 (4,916) (27,291)
Equity contributions by non-controlling interests – – 1,000 19,200
Cash distribution to non-controlling interests (8,777) (6,989) (49,409) (8,239)
Proceeds on issue of shares on exercise of stock options 5,552 370 18,819 11,393
Repayment of finance leases and other long term lia (1,727) (1,574) (6,712) (5,964)
306,994 (83,322) 165,030 (180,227)
CASH FLOWS FROM INVESTING ACTIVITIES
Property, plant and equipment (23,247) (85,171) (134,716) (127,524)
Louisiana project expenditures (35,308) – (73,912) –
Oil and gas assets (15,218) (8,329) (32,892) (30,098)
GeoPark repayments – – 10,039 7,551
Changes in non-cash working capital related to investing activities (note 9) 10,932 8,124 3,073 7,508
(62,841) (35,376) (228,408) (142,563)
Increase in cash and cash equivalents 342,545 89,736 394,899 156,917
Cash and cash equivalents, beginning of period 403,065 260,975 350,711 193,794
Cash and cash equivalents, end of period $ 745,610 $ 350,711 $ 745,610 $ 350,711
See accompanying notes to condensed consolidated interim financial statements.
METHANEX CORPORATION 2012 FOURTH QUARTER REPORT
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) PAGE 24

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 interests, 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 January 30, 2013.

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 months and year ended December 31, 2012 is $539 million (2011 – $539 million) and $2,082 million (2011 –
$2,052 million), respectively.

3. Property, plant and equipment:

Buildings, Plant
Installations 8: Plant Under Oil £ Gas
Machinery Construction Properties Other Total
Cost at December 31, 2012 $ 3,279,720 $ 75,238 $ 80,368 $ 68,906 |$ 3,504,232
Accumulated depreciation at December 31, 2012 1,387,034 – 74,151 28,299 1,489,484
Net book value at December 31, 2012 $ 1,892,686 $ 75,238 $ 6,217 $ 40,607 |$ 2,014,748
Cost at December 31, 2011 $ 3,209,597 $ 1326 $ 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 $ 2,139330 $ 1,326 $ 4449 $ 47,871|$ 2,233,023

In July 2012, the Board of Directors gave final approval 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. For the year ended December 31
2012, the Company incurred $112.8 million in expenditures related to this project, of which $73.9 million was
recorded to Property, Plant and Equipment and the remaining $38.9 million ($23.3 million after-tax) was recognized in
Louisiana project relocation expenses and charges in the Consolidated Statements of Income. In addition, for the year
ended December 31, 2012, the Company has charged to income $25.7 million ($17.6 million after-tax) related to the
carrying value of the Chile facility being relocated.

During the fourth quarter of 2012, the Company recorded an asset impairment charge relating to the carrying value of
its Chile operations. See note 4 of these condensed consolidated interim financial statements for more information.

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

4. Asset impairment charge:

The Company reviews the carrying value of long-lived assets for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. The Company recently announced that it
expects to idle its Chile operations in March 2013 due to an expected shortfall of natural gas feedstock to keep the
plant operating through the southern hemisphere winter. As a consequence of the uncertain outlook for the supply of
natural gas feedstock to its Chile operations, the carrying value of the Company’s Chile assets was tested for
recoverability at December 31, 2012.

Recoverability was measured by comparing the carrying value of the Chile assets to estimated pre-tax fair value.
Estimated pre-tax fair value was determined by measuring the pre-tax cash flows expected to be generated from Chile
assets over their estimated useful life discounted by a before-tax discount rate. The before-tax discount rate used of
13% was derived from the Company’s estimated cost of capital.

There are two key variables that impact the Company’s estimates of future cash flows: (1) the methanol price and
(2) the price and availability of natural gas feedstock. Short-term methanol price estimates are based on current supply
and demand fundamentals and current methanol prices. Long-term methanol price estimates are based on the
Company’s view of long-term supply and demand, and consideration is given to many factors, including, but not
limited to, estimates of global industrial production rates, energy prices, changes in general economic conditions,
future global methanol production capacity, industry operating rates and the global industry cost structure. The
Company/’s estimate of the price and availability of natural gas takes into consideration the current contracted terms, as
well as factors that it believes are relevant to supply under these contracts and supplemental natural gas sources. Other
assumptions included in the Company’s estimate of future cash flows include the estimated cost incurred to maintain
the facilities, estimates of transportation costs and other variable costs incurred in producing methanol in each period.

Based on the test performed, the Company recorded a non-cash before-tax asset impairment charge of $297 million
($193 million after-tax) to write down the carrying value of the Chile assets at December 31, 2012 to $245 million,
excluding the first facility that is being relocated to Geismar, Louisiana. The before-tax asset impairment charge was
allocated as follows:

Three Months Ended Years Ended
Dec 31 Dec 31 Dec 31 Dec 31
2012 2011 2012 2011
Asset impairment charge allocated to:
Property, plant and equipment
Buildings, plant installations £ machinery $ 200,753 $ – $ 200,753 $ –
Oil £ gas properties 22,724 – 22,724 –
Other assets
Oil £ gas properties 73,499 – 73,499 –
Asset impairment charge $ 296,976 $ – $ 296,976 $ –
METHANEX CORPORATION 2012 FOURTH QUARTER REPORT PAGE 26

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

5. Long-term debt:

Dec 31 Dec 31
2012 2011

Unsecured notes
$350 million at 3.25% due December 15, 2019 $ 343,828 $ –
$250 million at 5.25% due March 1, 2022 246,326 –
$150 million at 6.00% due August 15, 2015 149,344 149,119
$200 million at 8.75% due August 15, 2012 – 199,643
739,498 348,762
Atlas limited recourse debt facilities 49,659 64,397
Egypt limited recourse debt facilities 438,631 470,208
Other limited recourse debt facilities 17,437 19,888
1,245,225 903,255
Less current maturities (53,334) (251,107)
$ 1,191,891 $ 652,148

During the three month period ended December 31, 2012, the Company issued $350 million of unsecured notes
bearing an interest rate of 3.25% and due December 15, 2019 (effective yield 3.40%).

During the three months and year ended December 31, 2012, the Company made repayments on its
Atlas limited recourse debt facilities of $7.5 million and $15.0 million, respectively, and other limited recourse debt
facilities of $0.6 million and $2.5 million, respectively. The Company has also made repayments on its Egypt limited
recourse debt facilities of $33.6 million during the year ended December 31, 2012.

During the three month period ended December 31, 2012, the Company entered into a $400 million revolving credit
facility with a syndicate of banks. The facility expires in December 2016 and replaces the Company’s previous
revolving credit facility which would have expired in 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 and which the Company does not expect to complete by March 31,
2013. The Company is seeking a waiver from the lenders. The Company does not believe that the finalization of these
items is material. The Company cannot assure you that we will be able to obtain a waiver from the lenders.

At December 31, 2012, management believes the Company was in compliance with all of the covenants and default
provisions related to long-term debt obligations.

6. Finance costs:

Three Months Ended Years Ended
Dec 31 Dec 31 Dec 31 Dec 31
2012 2011 2012 2011
Finance costs $ 15,789 $ 17,868 $ 72,897 $ 69,027
Less capitalized interest related to Egypt plant under construction – – – (7,230)
Less capitalized interest related to Louisiana plant under construction (909) – (1,583) –

$ 14880 $ 17,868 $71,314 $ 61797

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 is capitalized until the plant is substantially
completed and ready for productive use.

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 FOURTH QUARTER REPORT PAGE 27
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

Net income (loss) per common share:

Diluted net income (loss) per common share is calculated by considering the potential dilution that would occur if
outstanding stock options and, under certain circumstances, tandem share appreciation rights (TSARs) were exercised
or converted to common shares. During the three months and year ended December 31, 2012, the Company incurred
a net loss attributable to Methanex shareholders and therefore the impact of the potential dilution of stock options and

TSARs is anti-dilutive.

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
adjustments 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 year ended December 31, 2011, the Company recorded a share-
based compensation recovery related to TSARs. Therefore, 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 (loss) used for the purpose of calculating diluted net income (loss) per common
share is as follows:

Three Months Ended Years Ended
Dec 31 Dec 31 Dec 31 Dec 31
2012 2011 2012 2011
Numerator for basic net income (loss) per common share $ (139,853) $ 63,871 $ (68,105) $ 201,326

Adjustment for the effect of TSARs:

Cash settled recovery included in net income – – – (2,416)
Equity settled expense – – – (4,327)
Numerator for diluted net income (loss) per common share $ (139,853) $ 63,871 $ (68,105) $ 194,583

Stock options and TSAR:s, if calculated using the equity-settled method, 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 (loss) per common share is as follows:

Three Months Ended Years Ended
Dec 31 Dec 31 Dec 31 Dec 31
2012 2011 2012 2011
Denominator for basic net income (loss) per common share 94,092,591 93,239,059 93,755,509 93,026,482
Effect of dilutive stock options – 997,644 – 1,305,480
Effect of dilutive TSARs – – – 28,994

Denominator for diluted net income (loss) per common share * 94,092,591 94,236,703 93,755,509 94,360,956

1 Due to the net loss attributable to Methanex shareholders, nil outstanding stock options for each of the three months and year ended December 31,
2012 are dilutive and have been included in the diluted weighted average number of common shares (2,159,090 and 3,039,284 outstanding stock
options for the three months and year ended December 31, 2011, respectively, and 724,905 outstanding TSARs for the year ended December 31,
2011).

For the three months and year ended December 31, 2012, basic and diluted net income (loss) per common share
attributable to Methanex shareholders were as follows:

Three Months Ended Years Ended
Dec 31 Dec 31 Dec 31 Dec 31
2012 2011 2012 2011
Basic net income (loss) per common share $ (1.49) $ 0.69 $ (0.73) $ 2.16
Diluted net income (loss) per common share $ (1.49) $ 0.68 $ (0.73) $ 2.06

METHANEX CORPORATION 2012 FOURTH QUARTER REPORT PAGE 28

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

8. 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 December 31, 2012 is as follows:
Units Outstanding at Units Exercisable at
December 31, 2012 December 31, 2012
Weighted
Average
Remaining Weighted Weighted
Contractual Life Number of Units Average Number of Units Average
Range of Exercise Prices (Years) Outstanding Exercise Price Exercisable Exercise Price
Stock options:
$6.33 to 11.56 3.0 968,180 $ 6.52 968,180 $ 6.52
$20.76 to 25.22 1.2 1,014,777 24.17 988,177 24.14
$28.43 to 31.73 2.5 999,990 28.73 873,890 28.44
2.2 2,982,947 $ 19.97 2,830,247 $ 19.44
SARs:
$25.22 to 31.74 5.2 897,525 $ 28.63 263,759 $ 26.20
TSARs:
$23.36 to 31.88 5.2 1,815,535 $ 28.45 616,880 $ 26.12
(ii) Compensation expense related to stock options:
For the three months and year ended December 31, 2012, compensation expense related to stock options
included in cost of sales and operating expenses was $0.1 million (2011 – $0.1 million) and $0.7 million
(2011 – $0.8 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 TSARs is measured based on their fair value and is recognized over the
vesting period. Changes in fair value each period are recognized in net income (loss) for the proportion of the
service that has been rendered at each reporting date. The fair value at December 31, 2012 was $18.0 million
compared with the recorded liability of $15.7 million. The difference between the fair value and the recorded
liability of $2.3 million will be recognized over the weighted average remaining vesting period of
approximately 1.7 years. The weighted average fair value of the vested SARs and TSARs was estimated at
December 31, 2012 using the Black-Scholes option pricing model.
For the three months and year ended December 31, 2012, compensation expense related to SARs and TSARs
included an expense in cost of sales and operating expenses of $3.6 million (2011 – expense of $1.0 million)
and $10.8 million (2011 – recovery of $3.5 million), respectively. This included an expense of $2.8 million
(2011 – expense of $0.1 million) and an expense of $3.1 million (2011 – recovery of $10.4 million),
respectively, related to the effect of the change in the Company’s share price for the three months and year
ended December 31, 2012.
METHANEX CORPORATION 2012 FOURTH QUARTER REPORT PAGE 29

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

8.

METHANEX CORPORATION 2012 FOURTH QUARTER REPORT

Share-based compensation (continued):

b)

Deferred, restricted and performance share units:

Deferred, restricted and performance share units outstanding at December 31, 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 21,085 20,400 358,330
Granted in-lieu of dividends 10,551 1,274 19,160
Redeemed (66,531) – (413,138)
Cancelled – – (15,329)
Outstanding at September 30, 2012 563,016 70,262 1,052,072
Granted 564 – –
Granted in-lieu of dividends 3,270 228 6,179
Redeemed – (31,607) –
Cancelled – – (4,382)
Outstanding at December 31, 2012 566,850 38,883 1,053,869

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 December 31, 2012 was $52.5 million compared with
the recorded liability of $46.9 million. The difference between the fair value and the recorded liability of $5.6
million will be recognized over the weighted average remaining vesting period of approximately 1.8 years.

For the three months and year ended December 31, 2012, compensation expense related to deferred, restricted
and performance share units included in cost of sales and operating expenses was an expense of $7.3 million
(2011 – expense of $2.6 million) and $24.4 million (2011 – recovery of $2.2 million), respectively. This included
an expense of $5.2 million (2011 – expense of $1.2 million) and $12.4 million (2011 – recovery of $10.9 million),
respectively, related to the effect of the change in the Company’s share price for the three months and year ended
December 31, 2012.

PAGE 30

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

9. Changes in non-cash working capital:
Changes in non-cash working capital for the three months and year ended December 31, 2012 were as follows:
Three Months Ended Years Ended
Dec 31 Dec 31 Dec 31 Dec 31
2012 2011 2012 2011
Decrease (increase) in non-cash working capital:
Trade and other receivables $ (30,104) $ (41,776) $ (50,773) $ (58,403)
Inventories (29,704) (35,886) 27,992 (51,358)
Prepaid expenses 257 6,541 (3,849) 2,412
Trade, other payables and accrued liabilities, including
long-term payables included in other long-term liabilities 51,069 96,180 46,379 119,170
(8,482) 25,059 19,749 11,821
Adjustments for items not having a cash effect and working
capital changes relating to taxes and interest paid 4,541 1,916 5,098 31,075
Changes in non-cash working capital having a cash effect $ (3,941) $ 26,975 $ 24,847 $ 42,896
These changes relate to the following activities:
Operating $ (14,873) $ 18,851 $ 21,774 $ 35,388
Investing 10,932 8,124 3,073 7,508
Changes in non-cash working capital $ (3,941) $ 26,975 $ 24,847 $ 42,896
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 an outstanding notional amount
of $342 million as at December 31, 2012. The notional amount decreases over the expected repayment period. At
December 31, 2012, these interest rate swap contracts had a negative fair value of $32.7 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 December 31, 2012, the Company had outstanding forward exchange contracts designated as cash flow hedges
to sell a notional amount of 5.8 million euro in exchange for US dollars and these euro contracts had a negative fair
value of $0.2 million (2011 – positive fair value of $0.4 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.
11. Contingent liability:
The Board of Inland Revenue of Trinidad and Tobago has issued assessments against the Company’s 63.1% owned
joint venture, Atlas Methanol Company Unlimited (“Atlas”), in respect of the 2005 and 2006 financial years. All
subsequent tax years remain open to assessment. The assessments relate 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
amounts in dispute for the 2005 and 2006 financial years is not significant. Atlas has partial relief from corporation
income tax until 2014.
The Company has lodged objections to the assessments. Based on the merits of the cases and legal interpretation,
management believes its position should be sustained.
METHANEX CORPORATION 2012 FOURTH QUARTER REPORT PAGE 31

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

Methanex Corporation
Quarterly History (unaudited)

2012 Q4 Q3 Q2 Qí 2011 Q4 Q3 Q2 Q1
METHANOL SALES VOLUMES
(thousands of tonnes)
Methanex-produced 4,039 1,059 1,053 1,001 926 3,853| 1,052 983 970 848
Purchased methanol 2,565 664 641 569 691 2,815 644 672 664 835
Commission sales ‘ 855 176 205 276 198 846 208 235 231 172
7,459 1,899 1,899 1,846 1,815 7,514 1,904 1,890 1,865 1,855
METHANOL PRODUCTION
(thousands of tonnes)
Chile 313 59 59 82 113 554 113 116 142 183
New Zealand 1,108 378 346 210 174 830| 211 209 207 203
Atlas, Trinidad (63.1%) 826 180 255 264 127 891 195 170 263 263
Titan, Trinidad 786 189 186 196 215 7u 180 224 186 121
Egypt (60%) 557 129 62 164 202 532 132 191 178 31
Medicine Hat 481 132 117 118 114 329 130 125 74 –
4,071 1,067 1,025 1,034 945 3,847| 961 1,035 1,050 801
AVERAGE REALIZED METHANOL PRICE ?
($/tonne) 382 389 373 384 382 374 388 377 363 367
($/gallon) 1.15 1.17 1.12 1.15 1.15 1.12 1.17 1.13 1.09 1.10
PER SHARE INFORMATION ($ per share) *
Basic net income (loss) (0.73)| (1.49) (0.03) 0.56 0.24 2.16 0.69 0.67 0.44 0.37
Diluted net income (loss) (0.73)| (1.49) (0.03) 0.50 0.23 2.06 0.68 0.59 0.43 0.37
Adjusted diluted net income * 1.90 0.64 0.38 0.47 0.41 1.93 0.69 0.43 0.41 0.39
Y 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.
2 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 (loss) 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 on page 14 for a description of the non-GAAP measure and
reconciliation to the most comparable GAAP measure.
PAGE 32

METHANEX CORPORATION 2012 FOURTH QUARTER REPORT

QUARTERLY HISTORY

Link al archivo en CMFChile: https://www.cmfchile.cl/sitio/aplic/serdoc/ver_sgd.php?s567=ffa83b58254325e5ee1dd659115f960fVFdwQmVFMTZRWGxOUkVGNFRVUmpOVTVuUFQwPQ==&secuencia=-1&t=1682366909