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Methanex To Proceed With Low Cost Chile Expansion

November 12, 2002

VANCOUVER, BRITISH COLUMBIA--Methanex Corporation announced today that it will proceed with the construction of an 840,000 tonne per year expansion at its methanol production hub in Punta Arenas, Chile. The expansion, which has a 20 year natural gas supply contract, is expected to cost approximately US$275 million, including capitalized interest of approximately US$25 million and US$17 million already spent on the project to September 30, 2002. The expansion is expected to be completed by early 2005. In connection with the expansion, the gas contracts for Methanex's existing plants, Chile I, Chile II and Chile III, have been extended to 2025, 2027 and 2029, respectively.

Pierre Choquette, President and CEO of Methanex, commented, "This expansion and the extension of the gas contracts for our existing plants in Chile provide additional low-cost capacity to supply our customer base while securing the low cost structure of the whole Chile site for many years into the future."

Methanex is the world's largest producer and marketer 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." Methanex can be visited online at www.methanex.com.

Information in this news release 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 risks associated with undertaking a major chemical plant construction project, operating a methanol production facility and actions of competitors. Please also refer to page 28 in our 2001 Annual Report for more information on forward-looking statements.



FOR FURTHER INFORMATION PLEASE CONTACT:

Methanex Corporation
Chris Cook
Manager, Investor Relations
(604) 661-2600

or

Methanex Corporation
Brad Boyd
Corporate Controller and Director, Investor Relations
(604) 661-2600
Website: www.methanex.com