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Methanex Announces Q4 2001 Results

January 28, 2002

VANCOUVER, BRITISH COLUMBIA--Methanex incurred a net loss of US$13.0 million (US$0.10 per share) and generated EBITDA (earnings before interest, income taxes, depreciation and amortization) of US$8.6 million for the fourth quarter ended December 31, 2001. The fourth quarter 2001 results compare to a loss of US$13.7 million (US$0.08 per share) and EBITDA of US$20.0 million for the third quarter 2001. The third quarter 2001 loss and EBITDA are before a US$11 million asset restructuring charge related to the shutdown of our Medicine Hat facility for an indeterminate period. For the year ended December 31, 2001, net income after the asset restructuring charge was US$71.4 million (US$0.46 per share) compared to net income of US$144.9 million (US$0.85 per share) for 2000.

Pierre Choquette, President and CEO of Methanex commented, "Continued weakness in general global economic conditions led to a reduction in our average realized price for methanol, from US$147 per tonne in the third quarter 2001 to US$115 per tonne in the fourth quarter 2001. However, the impact of lower prices on fourth quarter EBITDA was largely offset by an increase in sales of our own production, reduced losses on the sale of purchased methanol and improvements in our cost structure." Mr. Choquette added, "We continue to believe that any significant improvement in global economic activity should lead to stronger methanol supply/demand fundamentals, and improved pricing, as only limited new capacity is expected to start production to the end of 2003."

Mr. Choquette continued, "We made progress on a number of strategic initiatives during the fourth quarter. We signed a gas supply agreement with the North West Shelf joint venture in Australia for a proposed 2.0 million tonne per year methanol facility on the Burrup Peninsula and obtained substantial government support. We expect to make a final decision in 2002 on this new facility which is scheduled to come on-stream in late 2005 and would provide secure supply to our growing customer base in Asia." Mr. Choquette continued, "In addition, we invested US$4 million in Cellex Power Products, a leading developer and innovator of fuel cell product solutions for use in industrial power applications. This investment, and new strategic relationship, will allow Methanex an early opportunity to demonstrate how methanol fuel can be delivered and used for fuel cell applications in a safe and cost effective manner."

Mr. Choquette concluded, "Methanex continues to have excellent financial capacity and flexibility. Our cash balance at December 31, 2001 was US$332 million. In addition, we have a US$291 million credit facility that remains undrawn. Mr. Choquette added, "On October 29, 2001, and following the repurchase of 29.2 million shares under a substantial issuer bid, we commenced an additional share buyback program to repurchase up to 11.5 million common shares under a normal course issuer bid. By the end of 2001, we had repurchased 2.2 million shares under the normal course issuer bid at prices below book value. These share buyback programs represent an excellent use of cash and reflect our commitment to return excess cash to shareholders."

A conference call is scheduled for Tuesday, January 29 at 11:00 am EDT (8:00 am PDT) to review these fourth quarter results. To access the call, dial the Telus Conferencing operator ten minutes prior to the start of the call at (416) 883-0139, or toll free at (888) 458-1598. The security passcode for the call is 75577. A playback version of the conference call will be available until February 4th at (877) 653-0545. The reservation number for the playback version is 148065. There will be a simultaneous audio-only webcast of the conference call, which can be accessed from our website at www.methanex.com.

Methanex is a Vancouver based, publicly-traded company engaged in the worldwide production and marketing of methanol. Methanex shares are listed for trading on the Toronto Stock Exchange in Canada under the trading symbol "MX" and on the Nasdaq National Market in the United States under the trading symbol "MEOH."

Information in this news release and the attached message to shareholders may contain forward-looking statements. By their nature, such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. They include worldwide economic conditions, the expected availability of natural gas feedstock and the ability to carry out proposed methanol development projects and demonstrate the use of methanol in fuel cells in industrial power applications. Please also refer to p. 40 of Methanex's 2000 Annual Report for related information on forward-looking statements.

Interim Report
For the year ended December 31, 2001

At December 31, 2001, the number of common shares outstanding was
131,167,942.

Contact Information

Methanex Investor Relations
1800 - 200 Burrard Street
Vancouver, BC Canada V6C 3M1

Share Information

Methanex Corporation's common shares are listed for trading on 
the Toronto exchange under the symbol MX and on The Nasdaq Stock 
Market under the symbol MEOH.

Transfer Agents & Registrars

CIBC Mellon Trust Company
393 University Avenue, 5th Floor
Toronto, Ontario, Canada M5G 2M7
Toll free in North America:
1-800-387-0825

Investor Information

All financial reports, news releases and corporate information 
can be accessed on our web site at www.methanex.com. 

Email: invest@methanex.com

Methanex Toll Free: 1-800-661-8851

Message to Shareholders

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

This fourth quarter, 2001 Message to Shareholders should be read in conjunction with the annual consolidated financial statements and the Management's Discussion and Analysis included in the 2000 Annual Report.

--------------------------------------------------------------------
($ millions, except
 where noted)           2001                        2000
             Three      Three      Year       Three       Year
             months     months     ended      months      ended
             ended      ended      December   ended       December
             December   September             December  
             31         30         31         31          31
--------------------------------------------------------------------
Sales volumes 
 (thousands of
  tonnes)
 Company 
  produced   1,522      1,327      5,390      1,324       5,815
Purchased and
 commission    339        485      2,000        447         956
--------------------------------------------------------------------
             1,861      1,812      7,390      1,771       6,771

Average realized
 methanol price
  ($ per 
   tonne)  $   115    $   147    $   172    $   202     $   160

Income (loss)
 before the 
  asset 
   restructuring
    charge and 
     after
      tax  $ (13.0)   $ (13.7)   $  82.5    $  65.3     $ 144.9

Net income
 (loss)    $ (13.0)   $ (24.7)   $  71.4    $  65.3     $ 144.9

EBITDA 1   $   8.6    $  20.0    $ 238.4    $ 109.5     $ 305.0

Cash flows 
 from operating
  activities
   (2)     $  17.6    $  17.3    $ 219.4    $ 107.8     $ 296.6

Basic and diluted
 income (loss) per 
 share before the
  asset 
   restructuring 
    charge $ (0.10)   $ (0.08)   $  0.53    $  0.40     $  0.85

Basic and 
 diluted net
  income (loss)
   per 
    share  $ (0.10)   $ (0.15)   $  0.46    $  0.40     $  0.85
--------------------------------------------------------------------

1 EBITDA represents net income before interest expense, interest and other income, income taxes, depreciation and amortization, and the asset restructuring charge. EBITDA should be considered in addition to, not as a substitute for, operating income, net income, cash flows and other measures of financial performance reported in accordance with generally accepted accounting principles. EBITDA differs from cash flows from operating activities before changes in non-cash working capital and the utilization of prepaid natural gas primarily because it does not include cash flows from interest income, interest expense or income taxes. The method of computing EBITDA may not be comparable to similarly titled measures reported by other companies.

2 Before changes in non-cash working capital and the utilization of prepaid natural gas.

Results from Operations

We incurred a net loss of $13.0 million ($0.10 per share) for the fourth quarter ended December 31, 2001 and generated EBITDA of $8.6 million. This compares to net income of $65.3 million ($0.40 per share) and EBITDA of $109.5 million for the fourth quarter ended December 31, 2000. For the year ended December 31, 2001, income before the third quarter 2001 asset restructuring charge was $82.5 million ($0.53 per share) and EBITDA was $238.4 million compared with net income of $144.9 million ($0.85 per share) and EBITDA of $305.0 million for the same period of 2000. During the third quarter of 2001 we took a one-time asset restructuring charge, before and after income tax expense, of $11 million related primarily to employee severance and mothball costs related to the shutdown of our Medicine Hat facility for an indeterminate period.

After giving effect to the asset restructuring charge, our net income for the year ended December 31, 2001 was $71.4 million ($0.46 per share). EBITDA for the fourth quarter of 2001 was $8.6 million compared to $20.0 million for the third quarter of 2001. The decrease in EBITDA for the fourth quarter of 2001 compared with the third quarter of 2001 resulted from:

                                                     ($ millions)
--------------------------------------------------------------------
Lower realized price of produced methanol                 (47)
Lower costs                                                14
Reduced losses from the sale of purchased methanol         11
Higher volume of produced product sold                      9
Other                                                       2
--------------------------------------------------------------------
Decrease in EBITDA                                        (11)
--------------------------------------------------------------------

The average realized methanol price for the fourth quarter of 2001 declined by $32 per tonne to $115 per tonne primarily because of reduced demand caused by the global economic slowdown. The lower average realized methanol price resulted in a $47 million decrease in EBITDA in comparison with the third quarter of 2001.

The impact on EBITDA of lower prices was largely offset by an increase in sales of our own production, reduced losses on the sale of purchased methanol and improvements in our cost structure. The fourth quarter costs were $14 million lower than the third quarter costs. Lower logistics, distribution and fixed costs associated with operating our facilities at near capacity resulted in lower costs of $9 million. Lower natural gas costs further reduced our cost structure by $3 million. The remainder of the cost reduction relates primarily to reduced fixed costs as a result of the shutdown of our Medicine Hat facility.

For the year ended December 31, 2001 our EBITDA was $238 million which was lower than the EBITDA of $305 million for the same period of 2000. The $60 million positive impact of higher prices was more than offset by increased costs of $80 million, reduced margins of $33 million relating to lower sales volumes of produced product and an increase of $14 million in losses on sale of purchased methanol. Approximately $45 million of the $80 million cost increase related to increases in the price of natural gas. Natural gas costs were $15 million higher for our North American facilities and $30 million higher for our Chilean facilities where the purchase price for natural gas is adjusted by a formula related to methanol prices on a 12-month trailing average basis. The remaining cost increase was primarily due to costs for business development and strategic initiatives and additional logistics and other costs associated with operating our facilities below capacity.

Operating Performance

For the quarter ended December 31, 2001, we operated our production facilities, excluding the idled Medicine Hat and Fortier plants, at 93% of capacity compared with 91% for the third quarter of 2001. This increase in capacity utilization was achieved even though we carried out a major maintenance turnaround at one of our plants in Chile. We continue to benefit from our initiatives to restructure our assets and shift production to our low-cost facilities in Chile and New Zealand. In 2001, 92% of our total production was produced at these low-cost facilities compared to 88% in 2000.

Despite weak global demand during 2001, our annual sales volume increased 0.6 million tonnes in 2001 to a record level of 7.4 million tonnes. The increase in our sales volume was achieved through the strategic acquisitions in late 2000 of ICI Chemicals and Polymers' customer base and logistics infrastructure in the United Kingdom and the marketing rights to the production from the 850,000 tonne per year Titan methanol plant in Trinidad. However, while we increased our global market position in this very difficult economic environment, sales from our own production for the year ended December 31, 2001 were 5.4 million tonnes, approximately 425,000 tonnes or 7% lower than for the same period in 2000. We increased our production rates in the fourth quarter and are now operating our facilities at an annualized rate of 6 million tonnes.

Supply/Demand Fundamentals

The global economic slowdown continues to negatively impact demand and the pricing for methanol. However, underlying industry fundamentals remain sound with limited new capacity expected to start production to the end of 2003. Any significant improvement in global economic activity should lead to stronger supply/demand fundamentals and improved pricing.

Methanol prices fell late in the third quarter of 2001 and remained relatively stable during the fourth quarter of the year. The Methanex non-discounted U.S. reference price for January 2002 is $125 per tonne ($0.375 per gallon). Spot prices in the U.S. are currently in the range of $98 to $108 per tonne ($0.295-$0.325 per gallon). Spot prices in Asia are currently between $99 and $117 per tonne. In Europe, the first quarter 2002 contract transaction price settled at EURO 125 before discounts ($109 per tonne at the time of settlement).

Strategic Initiatives

Production Capacity for the Asia Pacific Market

In December 2001, we signed a gas supply agreement with the North West Shelf joint venture in Australia for a proposed 2.0 million tonne per year methanol facility on the Burrup Peninsula in Western Australia. We also obtained a commitment for approximately AUD$85 million in federal government support. The new facility is scheduled to come on-stream in late 2005 and would provide secure supply to our growing customer base in the Asia Pacific region. We will make a final decision as to whether to proceed with this project in 2002.

Developing a new facility in Australia is particularly important because of the uncertainty of the future natural gas supply to our facilities in New Zealand. The current contractual natural gas entitlements are sufficient to operate the New Zealand plants at capacity for the equivalent of approximately 3 years. Most of the gas we have contracted is from the Maui field and during the fourth quarter of 2001 the owners of the field announced that the Maui reserves may be materially less than previously thought and below the aggregate of contracted quantities. This could potentially reduce the amount of contracted gas available to Methanex. The process to determine the available reserves in the Maui field is expected to be completed by the end of 2002. We are continuing to pursue acquisitions of additional gas to supply our New Zealand plants. However, there can be no assurance that we will be able to secure additional gas on commercially acceptable terms.

Potential Chile Expansion

We are exploring an opportunity to expand the production capability at our facility in Chile by about 825,000 tonnes per year, or 30% of current production capacity. Gas supply for this expansion would be contracted along with an extension of all our Chilean natural gas contracts to 2025, thereby ensuring the outstanding cost structure of this production site for an extended period of time. In 2002, we will make a decision on whether to proceed with and the timing of this project.

Materials Demonstration Unit

In partnership with Synetix, we constructed a materials demonstration unit at a total cost of approximately $6.5 million to validate proprietary technology for large-scale synthesis gas production under a range of operating conditions. The commercial success of this technology will enable us to stay well ahead of the competition in terms of scale and economics for the production of methanol and could also lead to the adoption of this process for the production of synthesis gas for ammonia, dimethyl ether and gas-to-liquids.

Fuel Cell Applications

In late December 2001, we invested $4 million in Cellex Power Products, a leading developer and innovator of fuel cell product solutions for industrial power applications. This investment, and new strategic relationship, will allow Methanex an early opportunity to demonstrate how methanol fuel can be delivered and used for fuel cell applications in a safe and cost effective manner.

Liquidity and Capital Projects

Cash flows from operating activities before changes in non-cash working capital and the utilization of prepaid natural gas in the fourth quarter of 2001 were $17.6 million compared with $107.8 million for the fourth quarter of 2000 and $17.3 million for the third quarter of 2001.

Early in the fourth quarter of 2001 we made the $175 million payment for the repurchase of 29.2 million common shares under the substantial issuer bid that was completed at the end of the third quarter. On October 29, 2001 we commenced an additional share buyback program to repurchase up to 11.5 million common shares under a normal course issuer bid. As at December 31, 2001 we had repurchased 2.2 million shares under the normal course issuer bid for a total cost of $11.8 million.

In the second quarter of 2001 we reached a successful settlement of the 1991 Canadian tax year reassessment. The Canada Customs and Revenue Agency has returned $67 million representing the full amount placed on deposit plus accrued interest. $46 million was received in the third quarter and $21 million was received in the fourth quarter.

During the year ended December 31, 2001, our cash contribution to the Atlas project, a 1.7 million tonne per year joint venture methanol facility being built in Trinidad, was $38 million, excluding the $17 million payment made to Beacon Energy Investment Fund in the third quarter of 2001. Project financing is being arranged and our total equity contribution to the joint venture, excluding the Beacon payment, is expected to be approximately $100 million.

We have excellent financial capacity and flexibility. Our cash balance at December 31, 2001 was $332 million. We also have an undrawn $291 million credit facility. The planned capital maintenance expenditure program directed towards major maintenance, turnarounds and catalyst changes is estimated to total less than $80 million for the period to the end of 2004. We have the financial capacity to complete the capital maintenance spending program, fund our equity contribution for the construction of Atlas, repay the $150 million public bonds due August 2002 and to pursue new opportunities to enhance our strategic position in methanol.

Short-term Outlook

We believe that underlying industry fundamentals remain sound as only limited new capacity is expected to start production over the next two years. However, our results in the near term will reflect the slowdown in global economic growth that has resulted in reduced demand for methanol and lower methanol prices. We expect that any significant improvement in global economic activity will lead to stronger methanol supply/demand fundamentals. In this environment, we will continue to focus on maximizing the value generated from our low cost facilities and global market position. The methanol price, however, will ultimately depend on industry operating rates and the strength of global demand. The Company's excellent financial position and financial flexibility, outstanding global supply network and low cost position will ensure that Methanex continues to be the leader in the methanol industry.



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

                          3 months ended             12 months ended
                             December 31                 December 31
                   -------------------------------------------------
                        2001        2000           2001         2000

Revenue            $  195,335  $  329,680   $ 1,148,965  $ 1,061,271

Cost of sales and
 operating expenses   186,756     220,155       910,601      756,248
Depreciation
 and amortization      30,184      28,096       113,719      109,971
                   -------------------------------------------------
Operating income
 (loss) before
 undernoted items     (21,605)     81,429       124,645      195,052

Interest expense       (7,153)     (8,356)      (31,848)     (32,472)
Interest and
 other income           6,552       6,621        19,028       16,389
Asset restructuring
 charge (note 6)            -           -       (11,060)           -
                   -------------------------------------------------
Income (loss) before
 income taxes         (22,206)     79,694       100,765      178,969

Income tax recovery
 (expense)              9,252     (14,438)      (29,347)     (34,108)
                   -------------------------------------------------
Net income
 (loss)            $  (12,954) $   65,256   $    71,418  $   144,861

Retained earnings,
 beginning of
 period               413,110     324,111       384,832      249,553
Excess of repurchase
 price over assigned
 value of common
 shares                (2,846)     (4,535)      (58,940)      (9,582)
                   -------------------------------------------------

Retained earnings,
 end of period     $  397,310  $  384,832   $   397,310  $   384,832
                   -------------------------------------------------


Supplemental Information Relating to
 Consolidated Statements of Income

Income (Loss) Before the Asset Restructuring Charge

Net income (loss)  $  (12,954) $   65,256        71,418  $   144,861
Asset restructuring
 charge, before and
 after tax                  -           -        11,060            -
                   -------------------------------------------------
Income (loss) before
 asset restructuring
 charge            $  (12,954) $   65,256   $    82,478  $   144,861
                   -------------------------------------------------



Weighted average number of
 common shares
 outstanding*     132,560,277 163,135,148   154,355,808  170,303,780


Income (loss) per common
 share before asset
 restructuring
 charge            $    (0.10) $     0.40   $      0.53  $      0.85

Basic and diluted net
 income (loss) per 
 common share      $    (0.10) $     0.40   $      0.46  $      0.85

Basic cash flows
 from operating
 activities per
 common share**    $     0.13  $     0.66   $      1.42  $      1.74

Diluted cash flows
 from operating
 activities per
 common share**    $     0.13  $     0.65   $      1.41  $      1.73


*  number of common shares outstanding at December 31, 2001: 
   131,167,942 (December 31, 2000: 160,793,216)
** before changes in non-cash working capital and utilization of
   prepaid natural gas



Methanex Corporation
Consolidated Balance Sheets
(unaudited)
(thousands of U.S. dollars)

                                        December 31   December 31
                                               2001          2000
                                        -------------------------

Assets

Current assets:
 Cash and cash equivalents              $   332,129   $   225,942
 Receivables                                135,219       286,756
 Inventories                                 99,908       140,175
 Prepaid expenses                             8,685        10,816
                                        -------------------------
                                            575,941       663,689

Property, plant and equipment             1,031,716     1,045,899

Other assets                                 85,693        94,124
                                        -------------------------
                                        $ 1,693,350   $ 1,803,712
                                        -------------------------

Liabilities and Shareholders' Equity

Current liabilities:
 Accounts payable and accrued
  liabilities                           $   110,281   $   131,999
 Current maturities on long-term debt
  and other long-term liabilities           154,693         5,313
                                        -------------------------
                                            264,974       137,312

Long-term debt                              249,535       399,204

Other long-term liabilities                  78,911        79,654

Future income taxes                         164,469       142,307

Shareholders' equity
 Capital stock                              538,151       660,403
 Retained earnings                          397,310       384,832
                                        -------------------------
                                            935,461     1,045,235
                                        -------------------------
                                        $ 1,693,350   $ 1,803,712
                                        -------------------------



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

                              3 months ended         12 months ended
                                 December 31             December 31
                       ---------------------------------------------
                            2001        2000        2001        2000

Cash flows from operating activities:
Net income (loss)      $ (12,954)  $  65,256   $  71,418   $ 144,861
Add:
 Depreciation and
  amortization            30,184      28,096     113,719     109,971
 Future income taxes      (2,190)     10,494      22,162      26,407
 Other                     2,541       3,984      12,130      15,354
                       ---------------------------------------------

Cash flows from operating
 activities before
 undernoted changes       17,581     107,830     219,429     296,593

Receivables and accounts
 payable and accrued
 liabilities              30,652      13,705     114,824     (31,061)
Inventories and prepaid
 expenses                 16,531     (24,591)     41,158     (65,495)
Utilization of prepaid
 natural gas                (181)      1,369       1,045      15,767
                       ---------------------------------------------
                          64,583      98,313     376,456     215,804
                       ---------------------------------------------

Cash flows from financing activities:
 Repayment of other
  long-term liabilities   (1,123)     (1,136)     (6,359)    (10,692)
 Repayment of long-term
  debt assumed on the
  acquisition of Saturn
  Methanol Company, LLC        -           -           -      (7,480)
 Payment for shares
  repurchased           (187,620)    (31,897)   (187,620)    (60,987)
 Issue of shares on
  exercise of incentive
  stock options                6         150       6,428         663
                       ---------------------------------------------
                        (188,737)    (32,883)   (187,551)    (78,496)
                       ---------------------------------------------

Cash flows from investing activities:
 Acquisition of Saturn
  Methanol Company, LLC
  (net of cash acquired)       -           -           -     (16,902)
 Acquisition of ICI's
  methanol assets              -     (14,831)          -     (14,831)
 Plant and equipment
  under development      (26,873)          -     (68,460)          -
 Property, plant and
  equipment               (8,926)    (10,992)    (22,882)    (19,355)
 Accounts payable and
  accrued liabilities
  related to capital
  expenditures            12,687        (693)     12,137      (5,820)
 Other assets             (3,456)       (848)     (3,513)     (6,407)
                       ---------------------------------------------
                         (26,568)    (27,364)    (82,718)    (63,315)
                       ---------------------------------------------
Increase (decrease)
 in cash and cash
 equivalents            (150,722)     38,066     106,187      73,993
Cash and cash
 equivalents, beginning
 of period               482,851     187,876     225,942     151,949
                       ---------------------------------------------
Cash and cash
 equivalents, end
 of period             $ 332,129   $ 225,942   $ 332,129   $ 225,942
                       ---------------------------------------------

Supplementary cash flow information:
                       ---------------------------------------------
 Interest paid         $     107   $     174   $  30,957   $  31,044
 Income taxes paid
  (recovered)          $ (11,797)  $   2,436   $    (244)  $ (11,943)
                       ---------------------------------------------

Methanex Corporation

Notes to Consolidated Financial Statements

(unaudited)

Year ended December 31, 2001

The consolidated financial statements are prepared in accordance with generally accepted accounting principles in Canada. The consolidated financial statements have been prepared from the books and records without audit, however, in the opinion of management, all adjustments which are necessary to the fair presentation of the results of the interim period have been made.

These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes that are included in the Methanex 2000 Annual Report. Except with respect to the change in accounting policy described below, the accounting policies applied in these interim financial statements are consistent with those applied in the Annual Report.

1. Change in Accounting Policy

Effective January 1, 2001, the Company has adopted the new Canadian Institute of Chartered Accountants recommendations relating to the calculation and disclosure of earnings per share. The new recommendations have been applied retroactively and the comparative interim consolidated financial statements have been restated to reflect this change. Under the revised policy, the calculation of basic earnings per share has not been impacted. Under the new recommendations the treasury stock method is used for the calculation of diluted earnings per share instead of the imputed earnings approach used previously. Under the treasury stock method, the weighted average number of common shares outstanding for the calculation of diluted earnings per share assumes that the proceeds to be received on the exercise of stock options are applied to repurchase common shares at the average market price for the period. The impact of the retroactive application of the new policy on disclosed earnings per share, in these interim financial statements, is not significant.

2. Interest in joint venture

The Company has a 63.1% joint venture interest in Atlas Methanol Company ("Atlas"). The joint venture is constructing a 1.7 million tonne per year methanol plant in Trinidad. Construction is expected to be completed by the end of 2003. The Company accounts for its interest in Atlas using the proportionate consolidation method. Under this method, the Company's proportionate share of joint venture revenues, expenses, assets, liabilities and cash flows is included in the accounts. For 2001, the joint venture has no income or expenses as the plant is under construction.

The consolidated financial statements as at December 31, 2001 include the following amounts representing the Company's interest in the Atlas joint venture:

--------------------------------------------------------------------
Consolidated Balance Sheet                          ($ thousands)
 Current assets                                          $ 1,955
 Property, plant and equipment                            63,131
 Current liabilities                                       7,690
Consolidated Statement of Cash Flows
 Cash outflows from investing activities                 $55,441
-------------------------------------------------------------------

During 2001, $1.0 million of interest was capitalized to property, plant and equipment under construction.

The Company estimates that its share of capital expenditures to complete this project will be $200 million and will be incurred over the next two years. The Company intends to fund this project from cash generated from operations, cash and cash equivalents and project financing.

3. Capital Stock and Share Repurchase

Changes in the capital stock of the Company during the period January 1, 2001 to December 31, 2001 were as follows:

                                 Number of           Consideration
                                 Common Shares       ($ thousands)
--------------------------------------------------------------------
Balance, December 31, 2000       160,793,216           $ 660,403
Issued on exercise of incentive
 stock options                     1,739,675               6,428
Shares repurchased               (31,364,949)           (128,680)
--------------------------------------------------------------------
Balance, December 31, 2001       131,167,942           $ 538,151
--------------------------------------------------------------------

During 2001, the Company repurchased for cancellation common shares at prices in excess of their assigned value. The cost to acquire the shares in the amount of $187.6 million (2000 - $61.0 million) was allocated $128.7 million (2000 - $51.4 million) to capital stock and $58.9 million (2000 - $9.6 million) to retained earnings.

4. Earnings Per Share

Basic earnings per share is calculated by dividing net income for the period by the weighted average number of outstanding common shares. Diluted earnings per share adjusts basic earnings per share for the dilutive effect of outstanding stock options. Stock options to purchase common shares are dilutive only when the average market price of the common shares during the period exceeds the exercise price of the options.

A reconciliation of the weighted average number of common shares 
is as follows:

                        Three months ended           Year ended
                           December 31               December 31
                     2001        2000           2001         2000
--------------------------------------------------------------------
Denominator for
 basic earnings 
  per share     132,560,277  163,135,148   154,355,808  170,303,780
Effect of 
 dilutive stock
  options               -      1,639,379     1,609,485      747,813
--------------------------------------------------------------------
Denominator for 
 diluted earnings
  per share     132,560,277  164,774,527   155,965,293  171,051,593

5. Stock Options

Common shares reserved for incentive stock options at December 31, 2001 are as follows (exercise price per share in Canadian dollars):

                                Number of        Weighted Average 
                              Stock Options        Exercise Price
--------------------------------------------------------------------
Outstanding at December 
 31, 2000                      8,048,525               $9.52
 Granted                       2,963,900                9.56
 Exercised                    (1,735,550)               5.72
 Cancelled                      (547,250)              12.77
--------------------------------------------------------------------
Outstanding at September 
 30, 2001                      8,729,625               10.08
 Exercised                        (4,125)               3.99
 Cancelled                       (34,750)               7.78
--------------------------------------------------------------------
Outstanding at December 
 31, 2001                      8,690,750               10.09
--------------------------------------------------------------------

As of December 31, 2001, 5,132,094 stock options were exercisable at an average price of $11.16.

6. Asset Restructuring Charge

During the third quarter of 2001, the Company recorded an asset restructuring charge of $11 million relating to the shutdown of the Medicine Hat, Alberta facility for an indeterminate period. The tax benefit relating to the asset restructuring charge has been fully offset by a valuation allowance.

7. Natural Gas

Production from the Company's New Zealand operations is dependent on the supply of gas from the Maui field. The current contractual natural gas entitlements are sufficient to operate the New Zealand plants at capacity for the equivalent of approximately 3 years. During the fourth quarter of 2001 the owners of the Maui field announced that the Maui reserves may be materially less than previously thought and below the aggregate of contract quantities. This could potentially reduce the amount of contracted gas available to Methanex. The process to determine the available reserves in the Maui field is expected to be completed by the end of 2002. We are continuing to pursue acquisitions of additional gas to supply our New Zealand plants. However, there can be no assurance that we will be able to secure additional gas in New Zealand at commercially acceptable terms.

Quarterly History                
(unaudited)                     2001     Q4      Q3       Q2      Q1
                              --------------------------------------

Methanol sales volume
(thousands of tonnes)

 Company produced product      5,390  1,522   1,327    1,296   1,245
 Purchased product             1,280    170     301      404     405
 Commission sales(1)             720    169     184      146     221
                              --------------------------------------
                               7,390  1,861   1,812    1,846   1,871
                              --------------------------------------
Methanol production
(thousands of tonnes)

 North America                   445    127     123       93     102
 New Zealand                   2,133    592     520      447     574
 Chile                         2,783    662     710      708     703
                              --------------------------------------
                               5,361  1,381   1,353    1,248   1,379
                              --------------------------------------
Methanol price(2)
 ($/tonne)                       172    115     147      200     225
 ($/gallon)                     0.52   0.35    0.44     0.60    0.68

Per share information
 Net income (loss)         $    0.46  (0.10)  (0.15)    0.25    0.43
 Cash flows from
  operating activities(3)  $    1.42   0.13    0.11     0.48    0.66



Quarterly History                
(unaudited)                     2000     Q4      Q3       Q2      Q1
                              --------------------------------------

Methanol sales volume
(thousands of tonnes)

 Company produced product      5,815  1,324   1,398    1,548   1,545
 Purchased product               814    305     245      133     131
 Commission sales(1)             142    142       -        -       -
                              --------------------------------------
                               6,771  1,771   1,643    1,681   1,676
                              --------------------------------------
Methanol production                                                 
(thousands of tonnes)

 North America                   685    108     114      223     240
 New Zealand                   2,410    593     620      607     590
 Chile                         2,912    716     666      778     752
                              --------------------------------------
                               6,007  1,417   1,400    1,608   1,582
                              --------------------------------------
Methanol price(2)
 ($/tonne)                       160    202     187      141     112
 ($/gallon)                     0.48   0.61    0.56     0.42    0.34

Per share information
 Net income (loss)              0.85   0.40    0.35     0.17   (0.06)
 Cash flows from
  operating activities(3)       1.74   0.66    0.59     0.40    0.10



Quarterly History                
(unaudited)                     1999     Q4      Q3       Q2      Q1
                              --------------------------------------


Methanol sales volume
(thousands of tonnes)

 Company produced product      5,338  1,291   1,394    1,173   1,480
 Purchased product             1,255    323     329      411     192
 Commission sales(1)               -      -       -        -       -
                              --------------------------------------
                               6,593  1,614   1,723    1,584   1,672
                              --------------------------------------
Methanol production
(thousands of tonnes)

 North America                   971    241     214      210     306
 New Zealand                   2,063    507     559      487     510
 Chile                         2,309    782     548      537     442
                              --------------------------------------
                               5,343  1,530   1,321    1,234   1,258
                              --------------------------------------
Methanol price(2)
 ($/tonne)                       105    115     115       99      93
 ($/gallon)                     0.32   0.35    0.35     0.30    0.28

Per share information
 Net income (loss)             (0.87) (0.45)  (0.06)   (0.13)  (0.23)
 Cash flows from
  operating activities(3)       0.09   0.08    0.10     0.01   (0.10)


1 Sales of product from Titan plant in Trinidad. Methanex markets 
  100% of Titan product.
2 Produced and purchased product.
3 Before changes in non-cash working capital and the utilization of
  prepaid natural gas.



FOR FURTHER INFORMATION PLEASE CONTACT:

Chris Cook
Manager, Investor Relations
(604) 661-2600 or Toll Free: 1-800-661-8851

or

Brad Boyd
Corporate Controller and Director, Investor Relations
(604) 661-2600 or Toll Free: 1-800-661-8851

or

Methanex Corporation
1800 - 200 Burrard Street
Vancouver, BC Canada V6C 3M1
(604) 661-2600 or Toll Free: 1-800-661-8851