VANCOUVER, BRITISH COLUMBIA — (Marketwired) — 07/24/13 — For the second quarter of 2013, Methanex Corporation (TSX: MX)(NASDAQ: MEOH) reported Adjusted EBITDA(1) of $157 million and Adjusted net income(1) of $99 million ($1.02 per share on a diluted basis(1)). This compares with Adjusted EBITDA(1) of $149 million and Adjusted net income(1) of $88 million ($0.92 per share on a diluted basis(1)) for the first quarter of 2013.

John Floren, President and CEO of Methanex commented, „The higher methanol pricing environment in the second quarter contributed to stronger EBITDA and earnings. Entering the third quarter, we continue to move forward on a number of growth projects. These projects are expected to expand our annual operating capacity by approximately three million tonnes over the next three years, representing a 60% capacity increase.“

Mr. Floren added, „We are making solid progress on our initiatives in both New Zealand and Medicine Hat, which will add up to one million tonnes of annual production capacity by the end of 2013. Our project to relocate the first one million tonne plant from Chile to Geismar, Louisiana is on track to be completed by the end of 2014 with the second one million tonne plant in Geismar expected to be operational in early 2016.“

Mr. Floren concluded, „This is an exciting time for our business as these growth projects offer significant upside to our earnings and cash flows. 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 grow our business and deliver on our commitment to return excess cash to shareholders.“

A conference call is scheduled for July 25, 2013 at 12:00 noon ET (9:00 am PT) to review these second quarter results. To access the call, dial the Conferencing operator ten minutes prior to the start of the call at (416) 695-6616, or toll free at (800) 766-6630. A playback version of the conference call will be available until August 15, 2013 at (905) 694-9451, or toll free at (800) 408-3053. The passcode for the playback version is 3021008. Presentation slides summarizing Q2-13 results and a simultaneous audio-only webcast of the conference call can be accessed from our website at . 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“ and on the NASDAQ Global Market in the United States under the trading symbol „MEOH“. Effective July 19, 2013, Methanex shares are no longer listed for trading on the Santiago Stock Exchange.

FORWARD-LOOKING INFORMATION WARNING

This Second Quarter 2013 press release contains forward-looking statements with respect to us and the chemical industry. Refer to Forward-Looking Information Warning in the attached Second Quarter 2013 Management-s Discussion and Analysis for more information.

Interim Report for the Three Months Ended June 30, 2013

At July 24, 2013 the Company had 95,360,640 common shares issued and outstanding and stock options exercisable for 2,996,690 additional common shares.

Share Information

Methanex Corporation-s common shares are listed for trading on the Toronto Stock Exchange under the symbol MX and on the Nasdaq Global Market under the symbol MEOH.

Investor Information

All financial reports, news releases and corporate information can be accessed on our website at .

SECOND QUARTER MANAGEMENT-S DISCUSSION AND ANALYSIS

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

FINANCIAL AND OPERATIONAL HIGHLIGHTS

This Second Quarter 2013 Management-s Discussion and Analysis („MD&A“) dated July 24, 2013 for Methanex Corporation („the Company“) should be read in conjunction with the Company-s condensed consolidated interim financial statements for the period ended June 30, 2013 as well as the 2012 Annual Consolidated Financial Statements and MD&A included in the Methanex 2012 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 2012 Annual Report and additional information relating to Methanex is available on SEDAR at and on EDGAR at .

Effective January 1, 2013, we adopted new IFRS standards related to consolidation and joint arrangement accounting. Under these new standards, our 63.1% interest in the Atlas entity, which was previously proportionately consolidated in our financial statements, is accounted for using the equity method. This change has been applied retrospectively. As a result, amounts related to Atlas are no longer included in individual line items in our consolidated financial statements and the net assets and net earnings are presented separately. For purposes of analyzing our consolidated financial results in this MD&A, the Adjusted EBITDA from our 63.1% interest in the Atlas entity is included in Adjusted EBITDA.

FINANCIAL AND OPERATIONAL DATA

PRODUCTION SUMMARY

New Zealand

Our New Zealand methanol facilities produced 361,000 tonnes of methanol in the second quarter of 2013 compared with 309,000 tonnes in the first quarter of 2013. During the first quarter of 2013, the Motunui facilities suffered an equipment failure which resulted in an unplanned outage and lost production of approximately 60,000 tonnes. The facility was repaired and the Motunui facilities returned to operation at the end of March 2013. We are in the process of restarting the Waitara Valley facility and debottlenecking the Motunui facilities which we expect will allow us to produce at the site-s full annual production capacity of up to 2.4 million tonnes, depending on natural gas composition, by the end of 2013. During the second quarter of 2013, we contracted additional natural gas in New Zealand that represents approximately 600,000 tonnes of methanol production.

Trinidad

In Trinidad, we own 100% of the Titan facility with an annual production capacity of 875,000 tonnes and have a 63.1% interest in the Atlas facility with an annual production capacity of 1,125,000 tonnes (63.1% interest). The Titan facility produced 169,000 tonnes in the second quarter of 2013 compared with 181,000 tonnes in the first quarter of 2013 and the Atlas facility produced 201,000 tonnes in the second quarter of 2013 compared with 248,000 tonnes in the first quarter of 2013. During the second quarter of 2013, lost production at the Titan and Atlas facilities as a result of unplanned outages was approximately 28,000 tonnes and 29,000 tonnes, respectively.

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 of Trinidad and Tobago (NGC) and downstream demand from NGC-s customers, which becomes apparent when an upstream supplier has a technical issue or planned maintenance that reduces gas delivery. We are engaged with key stakeholders to find a solution to this issue, but in the meantime expect to continue to experience gas curtailments to the Trinidad site.

Egypt

The Egypt methanol facility produced 163,000 tonnes (60% interest) in the second quarter of 2013 compared with 133,000 tonnes in the first quarter of 2013. Production during the second quarter of 2013 and the first quarter of 2013 was impacted by natural gas supply restrictions.

The Egypt facility has experienced periodic natural gas supply restrictions since mid-2012 which have resulted in production below full capacity. This situation may persist in the future and become more acute during the summer months when electricity demand is at its peak. Refer to our 2012 Annual Report for further details.

Medicine Hat, Canada

Our 470,000 tonne per year facility in Medicine Hat, Alberta produced 129,000 tonnes in the second quarter of 2013 compared with 131,000 tonnes during the first quarter of 2013. The Medicine Hat facility is currently able to produce above stated production capacity due to the age of its catalyst and the composition of the natural gas feedstock. We are currently debottlenecking the Medicine Hat facility which we expect will add a further 90,000 tonnes of annual production capacity by the end of the third quarter of 2013.

Chile

During the second quarter of 2013, we produced 12,000 tonnes in Chile compared with 55,000 tonnes in the first quarter of 2013. In addition to our own production, early in the second quarter we continued to receive some natural gas from Argentina under an arrangement whereby we process the natural gas received and return the methanol produced to Argentina. Under this arrangement, our Chile operations produced an additional 18,000 tonnes during the second quarter of 2013 compared with 6,000 tonnes during the first quarter of 2013.

As a result of insufficient natural gas feedstock from Chile and Argentina during the southern hemisphere winter, we idled our Chile operations at the end of April 2013. We are optimistic that we will secure sufficient natural gas from Empresa Nacional del Petroleo (ENAP) and others to restart our operations later in 2013.

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 from Chile and Argentina.

Geismar, Louisiana

We are in the process of relocating the idle Chile II and Chile III facilities to Geismar, Louisiana (Geismar I and Geismar II). The 1.0 million tonne Geismar I facility is expected to be operational by the end of 2014 and the 1.0 million tonne Geismar II facility is expected to be operational in early 2016. During the second quarter of 2013, we incurred $54 million of capital expenditures related to these projects. In addition, 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 quarter of 2013, $34 million ($22 million after-tax) of Geismar II project relocation expenses were not eligible to be capitalized and were charged directly to earnings.

FINANCIAL RESULTS

For the second quarter of 2013 we recorded Adjusted EBITDA of $157 million and Adjusted net income of $99 million ($1.02 per share on a diluted basis). This compares with Adjusted EBITDA of $149 million and Adjusted net income of $88 million ($0.92 per share on a diluted basis) for the first quarter of 2013.

For the second quarter of 2013, we reported net income attributable to Methanex shareholders of $54 million ($0.56 per share on a diluted basis) compared with net income attributable to Methanex shareholders for the first quarter of 2013 of $60 million ($0.63 income per share on a diluted basis).

Effective January 1, 2013, we adopted new IFRS standards related to consolidation and joint arrangement accounting. Under these new standards, our 63.1% interest in the Atlas entity, which was previously proportionately consolidated in our financial statements, is accounted for using the equity method. This change has been applied retrospectively. As a result, amounts related to Atlas are no longer included in individual line items in our consolidated financial statements and the net assets and net earnings are presented separately. For purposes of analyzing our consolidated financial results in this MD&A, the Adjusted EBITDA from our 63.1% interest in the Atlas entity is included in Adjusted EBITDA. Our analysis of depreciation and amortization, finance costs, finance income and other expenses and income taxes is consistent with the presentation of our consolidated statements of income and excludes amounts related to Atlas.

We calculate Adjusted EBITDA and Adjusted net income by including amounts related to our equity share of the Atlas (63.1% interest) and Egypt (60% interest) facilities and by excluding the mark-to-market impact of share-based compensation as a result of changes in our share price and items which are considered by management to be non-operational. Refer to the Additional Information – Supplemental Non-GAAP Measures section for a further discussion on how we calculate these measures.

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

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

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 the How We Analyze Our Business section.

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

Average realized price

Methanol market conditions remained healthy and pricing increased in North America and Europe during the second quarter of 2013 (refer to Supply/Demand Fundamentals section for more information). Our average non-discounted posted price for the second quarter of 2013 was $494 per tonne compared with $474 per tonne for the first quarter of 2013 and $452 per tonne for the second quarter of 2012. Our average realized price for the second quarter of 2013 was $425 per tonne compared with $412 per tonne for the first quarter of 2013 and $384 per tonne for the second quarter of 2012. The change in average realized price for the second quarter of 2013 increased Adjusted EBITDA by $22 million compared with the first quarter of 2013 and increased Adjusted EBITDA by $72 million compared with the second quarter of 2012. Our average realized price for the six months ended June 30, 2013 was $418 per tonne compared with $383 per tonne for the same period in 2012 and this increased Adjusted EBITDA by $121 million.

Sales volume

Methanol sales volumes excluding commission sales volumes were higher in the second quarter of 2013 compared with the first quarter of 2013 by 158,000 tonnes and with the second quarter of 2012 by 200,000 tonnes. Higher methanol sales volumes excluding commission sales volumes for these periods increased Adjusted EBITDA by $19 million and $21 million, respectively. For the six month period ended June 30, 2013 compared with the same period in 2012, methanol sales volumes excluding commission sales volumes were higher by 195,000 tonnes and this resulted in higher Adjusted EBITDA by $20 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 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:

Methanex-produced methanol costs

We purchase natural gas for the New Zealand, Trinidad, Egypt and Chile methanol facilities under natural gas purchase agreements where the unique terms of each contract include a base price and a variable price component linked to the price of methanol to reduce our commodity price risk exposure. The variable price component of each gas contract is adjusted by a formula related to methanol prices above a certain level. For the second quarter of 2013 compared with the first quarter of 2013, Methanex-produced methanol costs were higher by $7 million primarily due to a change in the mix of production sold from inventory. For the second quarter of 2013 and six-month period ended June 30, 2013 compared with the same periods in 2012, Methanex-produced methanol costs were higher by $25 million and $34 million, respectively, primarily due to the impact of higher realized methanol prices on our natural gas costs and changes in the mix of production sold from inventory.

Proportion of Methanex-produced methanol sales

The cost of purchased methanol is directly linked to the selling price for methanol at the time of purchase and the cost of purchased methanol is generally higher than the cost of Methanex-produced methanol. Accordingly, an increase in the proportion of Methanex-produced methanol sales results in a decrease in our overall cost structure for a given period. For the second quarter of 2013 compared with the first quarter of 2013 and the second quarter of 2012, sales of Methanex-produced methanol made up a lower proportion of our total sales and this decreased Adjusted EBITDA by $19 million and $17 million, respectively.

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. Over the past year, we have completed several initiatives that have reduced logistics costs and improved the efficiency of our supply chain. Logistics costs in the second quarter of 2013 were $9 million lower than the second quarter of 2012 and logistics costs for the six month period were $20 million lower than in the same period in 2012.

Other, net

We have commenced the process of building a manufacturing organization in Geismar, Louisiana. Under IFRS, costs incurred related to organizational build-up are not eligible for capitalization and are charged directly to earnings as incurred. During the second quarter of 2013, we incurred approximately $2 million of Geismar organizational build-up costs and expect that a total of approximately $35 million of these costs will be incurred.

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.

The Methanex Corporation share price increased from $40.63 per share at March 31, 2013 to $42.84 per share at June 30, 2013. As a result of the increase in the share price and the resulting impact on the fair value of the outstanding units, we recorded a $9 million mark-to-market expense on share-based compensation in the second quarter of 2013. For the six month period ended June 30, 2013, we recorded a $40 million mark-to-market share-based compensation expense as a result of the increase in the share price from $31.87 at December 31, 2012 to $42.84 at June 30, 2013. For the second quarter of 2012, a decrease in the share price resulted in an $11 million mark-to-market recovery.

Depreciation and Amortization

Depreciation and amortization was $29 million for the second quarter of 2013 compared with $30 million for the first quarter of 2013 and $39 million for the second quarter of 2012. Depreciation and amortization for the six-month period ended June 30, 2013 was $59 million compared with $74 million for the same period in 2012. Depreciation and amortization is lower in 2013 compared with 2012 primarily as a result of the lower carrying value of our Chile assets due to the asset impairment charge recorded in the fourth quarter of 2012.

Write-off of Oil and Gas Rights

We partially funded two exploratory hydrocarbon wells in New Zealand in exchange for the right to purchase any natural gas discovered. Our share of the exploration costs incurred was $17 million. We have no future commitments under this arrangement. Based on exploration results to date and the outlook for natural gas deliveries under this arrangement, we have recorded a non-cash $17 million ($14 million after-tax) charge to earnings in the second quarter of 2013 to write off the carrying value of the asset.

Finance Costs

Finance costs before capitalized interest primarily relate to interest expense on the unsecured notes and limited recourse debt facilities. Capitalized interest relates to interest costs capitalized for the Geismar projects.

Finance Income and Other Expenses

The change in finance income and other expenses for all periods presented was primarily due to the impact of changes in foreign exchange rates.

Income Taxes

A summary of our income taxes for the second quarter of 2013 compared with the first quarter of 2013 is as follows:

For the second quarter of 2013, the effective tax rate was 2% compared with 15% for the first quarter of 2013. Adjusted net income represents the amount that is attributable to Methanex shareholders and excludes the mark-to-market impact of share-based compensation and items that are considered by management to be non-operational. The effective tax rate related to Adjusted net income was 14% for each of the first and second quarters of 2013.

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%. We have significant loss carryforwards in Canada and New Zealand which have not been recognized for accounting purposes and this had an impact on the effective tax rate of the second quarter of 2013 of approximately 10%. In addition, as the Atlas entity is accounted for using the equity method, any income taxes related to Atlas are included in earnings of associate and therefore excluded from total income taxes.

SUPPLY/DEMAND FUNDAMENTALS

We estimate that methanol demand, excluding methanol demand from integrated methanol to olefins facilities, is currently approximately 54 million tonnes on an annualized basis.

The outlook for methanol demand growth continues to be strong. Traditional chemical derivatives consume about two-thirds of global methanol demand and growth is correlated to industrial production.

Energy-related applications consume the remaining one third of global methanol demand, and the wide disparity between the price of crude oil and that of natural gas and coal has resulted in an increased use of methanol in energy-related applications, such as direct methanol blending into gasoline and DME and biodiesel production. Growth of direct methanol blending into gasoline in China has been particularly strong and we believe that future growth in this application is supported by numerous provincial and national fuel-blending standards, such as M15 or M85 (15% methanol and 85% methanol, respectively).

China is also leading the commercialization of methanol-s use as a feedstock to manufacture olefins. The use of methanol to produce olefins, at current energy prices, is proving to be cost competitive relative to the traditional production of olefins from naphtha. There are now five methanol-to-olefins (MTO) plants operating in China with the capacity to consume approximately seven million tonnes of methanol annually. While three of these plants are integrated and purchase methanol only to supplement their production, two of these plants are dependent on merchant methanol supply. We believe demand potential into energy-related applications and olefins production will continue to grow.

During the second quarter of 2013, overall market conditions remained healthy and prices in North America and Europe increased. Our average non-discounted price in the second quarter was $494 per tonne. Entering the third quarter of 2013, market conditions and methanol prices are stable. We recently announced our North American non-discounted price for August at $532 per tonne, which is unchanged from July.

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 2013 and a 0.7 million tonne plant expected to start up in Azerbaijan in 2013. We are in the process of restarting our Waitara Valley facility and debottlenecking the Motunui facilities in New Zealand and these initiatives are expected to add up to 0.9 million tonnes of additional operating capacity by the end of 2013. We are relocating two idle Chile facilities to Geismar, Louisiana with the first 1.0 million tonne facility expected to start up by the end of 2014 and the second 1.0 million tonne facility expected to start up in early 2016. It has also been announced that a 1.3 million tonne plant in Clear Lake, Texas is targeted to start-up in 2015. 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.

LIQUIDITY AND CAPITAL RESOURCES

Cash flows from operating activities

Cash flows from operating activities in the second quarter of 2013 were $125 million compared with $118 million for the first quarter of 2013 and $140 million for the second quarter of 2012. Cash flows from operating activities for the six month period ended June 30, 2013 were $243 million compared with $214 million for the same period in 2012. The changes in cash flows from operating activities resulted from changes in the following:

Adjusted cash flows from operating activities

Adjusted cash flows from operating activities, which includes an amount representing the cash flows associated with our 63.1% share of the Atlas facility and excludes the amount associated with the 40% non-controlling interest in the methanol facility in Egypt and changes in non-cash working capital, were $158 million in the second quarter of 2013 compared with $127 million for the first quarter of 2013 and $110 million for the second quarter of 2012. Adjusted cash flows for the six month period ended June 30, 2013 were $286 million compared with $199 million for the same period in 2012. The changes in Adjusted cash flows from operating activities resulted from changes in the following:

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

During the second quarter of 2013, we paid a quarterly dividend of $0.20 per share, or $19 million.

We operate in a highly competitive commodity industry and believe it is appropriate to maintain a conservative balance sheet and retain financial flexibility. At June 30, 2013, our cash balance was $709 million, including $37 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. We have a strong balance sheet and an undrawn $400 million credit facility provided by highly rated financial institutions that expires in mid-2016.

Our planned capital maintenance expenditure program directed towards maintenance, turnarounds and catalyst changes for existing operations is currently estimated to total approximately $110 million to the end of 2014, excluding the New Zealand operations. We are making good progress with our initiatives to increase operating capacity in Medicine Hat and New Zealand. Remaining capital expenditures for these projects to the end of 2013 are approximately $170 million. We are relocating two methanol plants from our Chile site to Geismar, Louisiana. During the second quarter of 2013, capital expenditures related to the Geismar projects were $54 million. Remaining capital expenditures related to the Geismar projects are approximately $850 million. 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 third quarter, market conditions and methanol prices are 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.

CONTROLS AND PROCEDURES

For the three months ended June 30, 2013, 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.

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 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 depreciation and amortization, finance costs, finance income and other expenses, income tax expense, mark-to-market impact of share-based compensation, Geismar project relocation expenses and write-off of oil and gas rights. Adjusted EBITDA includes an amount representing our 63.1% interest in the Atlas facility and our 60% interest in the methanol facility in Egypt.

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

The following table shows a reconciliation from net income attributable to Methanex shareholders to Adjusted EBITDA:

Adjusted Net Income and Adjusted Net Income per Common Share

Adjusted net income and Adjusted 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 Geismar project relocation expenses and write-off of oil and gas rights. The following table shows a reconciliation of net income attributable to Methanex shareholders to Adjusted net income and the calculation of Adjusted net income per common share:

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 includes cash flows associated with our 63.1% equity share of the Atlas facility and does not include cash flows associated with the 40% non-controlling interest in the methanol facility in Egypt or changes in non-cash working capital.

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

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:

FORWARD-LOOKING INFORMATION WARNING

This Second Quarter 2013 Management-s Discussion and Analysis („MD&A“) as well as comments made during the Second Quarter 2013 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,“ „expects,“ „may,“ „will,“ „should,“ „potential,“ „estimates,“ „anticipates,“ „aim,“ „goal“ or other comparable terminology and similar statements of a future or forward-looking nature identify forward-looking statements.

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

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:

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:

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.

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 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 changes in Adjusted EBITDA are average realized price, cash costs and sales volume which are defined and calculated as follows:

We own 63.1% of the Atlas methanol facility and market the remaining 36.9% of its production through a commission offtake agreement. A contractual agreement between us and our partners establishes joint control over Atlas. As a result, we account for this investment using the equity method of accounting, which results in 63.1% of the net assets and net earnings of Atlas being presented separately in the consolidated statements of financial position and consolidated statements of income, respectively. For purposes of analyzing our business, Adjusted EBITDA, Adjusted net income, Adjusted net income per common share and Adjusted cash flows from operating activities include an amount representing our 63.1% equity share in Atlas.

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, Adjusted net income per common share and Adjusted cash flows from operating activities exclude the amount associated with the other investors- 40% non-controlling interests.

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, except as described in note 12 below. As described in note 12, the Company has adopted new International Financial Reporting Standards (IFRS) effective January 1, 2013 with retrospective application and as a result the comparative periods have been restated.

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 & Risk Committee of the Board of Directors on July 24, 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 and six month periods ended June 30, 2013 is $544 million (2012 – $424 million) and $1,013 million (2012 – $919 million), respectively.

3. Property, plant and equipment:

The Company is relocating two idle Chile facilities to Geismar, Louisiana with Geismar I expected to start up by the end of 2014 and Geismar II expected to start up in early 2016. During the three months ended June 30, 2013, the Company incurred capital expenditures related to the Geismar projects of $54 million. Remaining capital expenditures for these projects is estimated to be $850 million, excluding capitalized interest.

In addition, under IFRS, certain costs associated with relocating an asset are not eligible for capitalization and during the three months ended June 30, 2013, the Company charged $34 million of project relocation expenses ($22 million after-tax) to income.

4.Write-off of oil and gas rights

In New Zealand, the Company partially funded two exploratory hydrocarbon wells in exchange for the right to purchase any natural gas discovered. The Company-s share of the exploration costs incurred was $17 million and the Company has no future commitments under this arrangement. Based on the exploration results to date and the outlook for natural gas deliveries under this arrangement, the Company has recorded a non-cash $17 million ($14 million after-tax) charge to earnings in the second quarter of 2013 to write off the carrying value of the asset.

5. Investment in Atlas methanol facility:

a) The Company has a 63.1% equity interest in Atlas Methanol Company Unlimited (Atlas). Atlas owns a 1.8 million tonne per year methanol production facility in Trinidad. Effective January 1, 2013, the Company accounts for its interest in Atlas using the equity method (refer to note 12). Summarized financial information of Atlas (100% basis) is as follows:

b) Contingent liability:

The Board of Inland Revenue of Trinidad and Tobago has issued assessments against 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.

6. Long-term debt:

During the three months ended June 30, 2013, the Company made repayments on its other limited recourse debt facilities of $1.2 million.

At June 30, 2013, management believes the Company was in compliance with all of the covenants and default provisions related to long-term debt obligations.

7.Finance costs:

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.

8.Net income per common share:

Diluted net income 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.

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 the cash-settled and equity-settled method 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.

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

Stock options and, if calculated using the equity-settled method, TSARs are considered dilutive when the average market price of the Company-s common shares during the period disclosed exceeds the exercise price of the stock option or TSAR. A reconciliation of the denominator used for the purposes of calculating basic and diluted net income per common share is as follows:

For the three month and six month periods ended June 30, 2013 and 2012, basic and diluted net income per common share attributable to Methanex shareholders were as follows:

9. Share-based compensation:

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

(i) Outstanding units:

Information regarding units outstanding at June 30, 2013 is as follows:

(ii) 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 for the proportion of the service that has been rendered at each reporting date. The fair value at June 30, 2013 was $47.7 million compared with the recorded liability of $38.4 million. The difference between the fair value and the recorded liability of $9.3 million will be recognized over the weighted average remaining vesting period of approximately 1.8 years. The weighted average fair value was estimated at June 30, 2013 using the Black-Scholes option pricing model.

For the three and six month periods ended June 30, 2013, compensation expense related to SARs and TSARs included an expense in cost of sales and operating expenses of $6.9 million (2012 – recovery of $3.6 million) and an expense of $23.9 million (2012 – expense of $7.1 million), respectively. This included an expense of $4.1 million (2012 – recovery of $6.4 million) and an expense of $19.1 million (2012 – expense of $1.4 million) related to the effect of the change in the Company-s share price for the three and six month periods ended June 30, 2013.

(iii) Compensation expense related to stock options:

For the three and six month periods ended June 30, 2013, compensation expense related to stock options included in cost of sales and operating expenses was $0.2 million (2012 – $0.2 million) and $0.4 million (2012 – $0.4 million), respectively. The fair value of each stock option grant was estimated on the date of grant using the Black-Scholes option pricing model.

b)Deferred, restricted and performance share units:

Deferred, restricted and performance share units outstanding at June 30, 2013 are as follows:

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 net income for the proportion of the service that has been rendered at each reporting date. The fair value of deferred, restricted and performance share units at June 30, 2013 was $73.7 million compared with the recorded liability of $57.0 million. The difference between the fair value and the recorded liability of $16.7 million will be recognized over the weighted average remaining vesting period of approximately 2.0 years.

For the three and six month periods ended June 30, 2013, compensation expense related to deferred, restricted and performance share units included in cost of sales and operating expenses was an expense of $8.6 million (2012 – recovery of $0.1 million) and an expense of $27.7 million (2012 – expense of $14.0 million), respectively. This included an expense of $5.2 million (2012 – recovery of $4.1 million) and an expense of $20.9 million (2012 – expense of $6.2 million) related to the effect of the change in the Company-s share price for the three and six month periods ended June 30, 2013.

10. Changes in non-cash working capital:

Changes in non-cash working capital for the three and six month periods ended June 30, 2013 were as follows:

11. Financial instruments:

Financial instruments are either measured at amortized cost or fair value. Held-to-maturity investments, loans and receivables and other financial liabilities are measured at amortized cost. Held-for-trading financial assets and liabilities and available-for-sale financial assets are measured on the Consolidated Statements of Financial Position at fair value. Derivative financial instruments are classified as held-for-trading and are recorded on the Consolidated Statements of Financial Position at fair value unless exempted. Changes in fair value of held-for-trading derivative financial instruments are recorded in earnings unless the instruments are designated as cash flow hedges.

The euro hedges, Egypt interest rate swaps, and New Zealand dollar hedges designated as cash flow hedges are measured at fair value based on industry-accepted valuation models and inputs obtained from active markets.

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 $329 million as at June 30, 2013. The notional amount decreases over the expected repayment period. At June 30, 2013, these interest rate swap contracts had a negative fair value of $26.0 million (2012 – $36.8 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 and buy New Zealand dollar at a fixed USD exchange rate. At June 30, 2013, the Company had outstanding forward exchange contracts designated as cash flow hedges to sell a notional amount of EUR5.7 million and buy a notional amount of NZD $119.1 million in exchange for US dollars. The euro contracts had a positive fair value of $0.1 million (December 31, 2012 – negative fair value of $0.2 million) recorded in other assets and the New Zealand dollar contracts had a negative fair value of $4.3 million (December 31, 2012 – nil) recorded in current liabilities. Changes in fair value of derivative financial instruments designated as cash flow hedges have been recorded in other comprehensive income.

The carrying values of the Company-s financial instruments approximate their fair values, except as follows:

There is no publicly traded market for the limited recourse debt facilities, the fair value of which is estimated by reference to current market prices for debt securities with similar terms and characteristics. The fair value of the unsecured notes was calculated by reference to a limited number of small transactions in June 2013. The fair value of the Company-s unsecured notes will fluctuate until maturity.

12. Adoption of New Accounting Standards:

a) Effective January 1, 2013, the Company has adopted the following new IASB accounting standards related to consolidation and joint arrangements: IFRS 10, Consolidated Financial Statements; IFRS 11, Joint Arrangements; and IFRS 12, Disclosure of Interests in Other Entities.

As a result of the adoption of these new standards, the Company-s 63.1% interest in the Atlas entity is accounted for using the equity method. The Company has restated its Consolidated Statement of Financial Position as at January 1, 2012 and December 31, 2012 and its Consolidated Statement of Income and Comprehensive Income for the three and six months ended June 30, 2012. Reconciliations of the restatements of the Consolidated Statement of Financial Position as at December 31, 2012 and Consolidated Statement of Income and Comprehensive Income for the three and six months ended June 30, 2012 are as follows:

b) Effective January 1, 2013, the Company adopted IFRS 13, Fair Value Measurements. As a result of this new standard, incremental disclosures have been provided in note 11 to these condensed consolidated interim financial statements.

c) Effective January 1, 2013, the Company adopted the revised IFRS 19, Employee Benefits. The adoption of this standard has not had a significant impact on the Company.

d) Effective January 1, 2013, the Company adopted the revised IAS, Presentation of Financial Statements. The adoption of this standard has resulted in a change to the presentation of the Company-s Consolidated Statements of Comprehensive Income.

Contacts:
Methanex Corporation
Sandra Daycock
Director, Investor Relations
604.661.2600