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

• Average realized methanol price increased to $282 per tonne in the fourth quarter from $217 per tonne in the third quarter of 2020
• Continued improvement in global methanol demand, methanol industry supply outages and delayed start-up of new industry capacity additions supported higher methanol prices
• Net loss attributable to Methanex shareholders of $27 million on Adjusted EBITDA of $136 million, reflecting a $96 million increase over the third quarter, demonstrating significant leverage to methanol price
• Resilient business model and continued ability to deliver reliable methanol supply to customers around the world demonstrated throughout 2020
• Strong liquidity position - over $800 million in cash and a $300 million undrawn credit facility providing financial flexibility as the path to sustained global economic recovery remains uncertain

For the fourth quarter of 2020, Methanex (TSX:MX) (NASDAQ:MEOH) reported a net loss attributable to Methanex shareholders of $27 million ($0.35 net loss per common share on a diluted basis) compared to a net loss of $88 million ($1.15 net loss per common share on a diluted basis) in the third quarter of 2020. Adjusted EBITDA for the fourth quarter of 2020 was $136 million and Adjusted net income was $12 million ($0.15 Adjusted net income per common share). This compares with Adjusted EBITDA of $40 million and an Adjusted net loss of $79 million ($1.03 Adjusted net loss per common share) for the third quarter of 2020.

For the year ended December 31, 2020, Methanex reported a net loss attributable to Methanex shareholders of $157 million ($2.06 net loss per common shares on a diluted basis), Adjusted EBITDA of $346 million and an Adjusted net loss of $123 million ($1.62 Adjusted net loss per common share). This compares with net income attributable to Methanex shareholders of $88 million ($1.01 net income per common share on a diluted basis), Adjusted EBITDA of $566 million and Adjusted net income of $71 million ($0.93 Adjusted net income per common share) for the year ended December 31, 2019.

In the fourth quarter of 2020, continued improvement in global methanol demand, combined with various methanol industry supply outages and the delayed start-up of new industry capacity additions, led to tighter market conditions and lower global inventory levels. As a result, methanol prices increased by 30% in the fourth quarter, compared to the third quarter of 2020, resulting in higher Adjusted EBITDA.

For the full year of 2020, the impact from the COVID-19 pandemic on the global economy and lower oil price environment resulted in a sharp decline in methanol demand and lower methanol prices in the second and third quarters, with some recovery in the fourth quarter, impacting our financial results in 2020 compared to 2019.

John Floren, President and CEO of Methanex, commented, “I am extremely proud of the work that our team has done to deliver reliable methanol supply throughout the COVID-19 pandemic. Their performance underscores the tremendous agility and resilience of our people and business model and gives us confidence in our ability to continue to meet the demands of a very challenging situation. We are encouraged by the early signs of economic recovery that we saw starting in the second half of 2020, and continue to regularly monitor and review the methanol demand outlook and changes in the industry."

We took various steps in 2020 to preserve liquidity and financial flexibility in the challenging economic environment. We ended the year with $834 million in cash, a $300 million undrawn revolving credit facility and no debt maturities until the end of 2024.

Our Geismar 3 project is a high-quality project with substantial capital and operating cost advantages. The project remains on temporary care and maintenance, with spending on the project over the next nine months expected to be approximately $80 million. This amount reflects costs that were already committed and the completion of activities that preserve flexibility to complete the project in the future including key engineering activities and procurement of critical path equipment. We have a robust decision making process for evaluating the project and before deciding whether to restart construction, management and our Board will need to carefully consider many factors including the global economic recovery and methanol industry outlook.

John Floren concluded, "We are pleased to see continued improvement in methanol demand and prices although the uncertain economic recovery path makes the near-term difficult to forecast. We continue to believe that long-term methanol industry fundamentals are strong and methanol demand will continue to improve as the global economy fully recovers. For now, we continue to prioritize liquidity and financial flexibility. We remain well-positioned to generate significant long-term value as market conditions improve."

FURTHER INFORMATION
The information set forth in this news release summarizes Methanex's key financial and operational data for the fourth quarter of 2020. It is not a complete source of information for readers and is not in any way a substitute for reading the fourth quarter 2020 Management’s Discussion and Analysis ("MD&A") dated January 27, 2021 and the unaudited condensed consolidated interim financial statements for the period ended December 31, 2020, both of which are available from the Investor Relations section of our website at www.methanex.com. The MD&A and the unaudited condensed consolidated interim financial statements for the period ended December 31, 2020 are also available on the Canadian Securities Administrators' SEDAR website at www.sedar.com and on the United States Securities and Exchange Commission's EDGAR website at www.sec.gov.

FINANCIAL AND OPERATIONAL DATA

¹  Methanex-produced methanol represents our equity share of volume produced at our facilities and excludes volume marketed on a commission basis related to the 36.9% of the Atlas facility and 50% of the Egypt facility that we do not own.

²  Methanex average non-discounted posted price represents the average of our non-discounted posted prices in North America, Europe and Asia Pacific weighted by sales volume. Current and historical pricing information is available at www.methanex.com.

³  Average realized price is calculated as revenue, excluding commissions earned and the Egypt non-controlling interest share of revenue, but including an amount representing our share of Atlas revenue, divided by the total sales volume of Methanex-produced and purchased methanol.

⁴  Revenue for the three months and year ended December 31, 2019 have been restated as compared to revenue reported in our quarterly MD&A and condensed quarterly financial statements issued for 2019 based on a restatement for the recognition of revenue on Atlas-produced methanol.

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

• We recorded a net loss attributable to Methanex shareholders of $27 million during the fourth quarter of 2020 compared to a net loss of $88 million in the third quarter of 2020. The increase in earnings is primarily due to higher realized prices, which was partially offset by the mark-to-market impact of share-based compensation as a result of the increase in Methanex share price in the fourth quarter of 2020.
• Adjusted EBITDA was $136 million for the fourth quarter of 2020 compared with $40 million for the third quarter of 2020. Adjusted EBITDA for the fourth quarter of 2020 is higher than the third quarter of 2020 due to higher realized prices, partially offset by changes in the mix of produced and purchased methanol sold.
• Adjusted net income was $12 million for the fourth quarter of 2020 compared to Adjusted net loss of $79 million for the third quarter of 2020. The increase in earnings is primarily due to an increase in average realized price and a decrease in finance costs due to a one time make-whole interest charge related to the early redemption of bonds in the third quarter.
• We sold 2,868,000 tonnes in the fourth quarter of 2020, an increase of 7% compared to 2,678,000 tonnes for the third quarter of 2020. Total sales increased for the fourth quarter of 2020 due to the ongoing recovery in methanol demand. Sales of Methanex-produced methanol were 1,480,000 tonnes in the fourth quarter of 2020 compared with 1,531,000 tonnes in the third quarter of 2020.
• Production for the fourth quarter of 2020 was 1,607,000 tonnes compared with 1,372,000 tonnes for the third quarter of 2020. The increase in production for the fourth quarter of 2020 was primarily the result of higher production in New Zealand and Chile due to improved gas availability, strong operating rates at Geismar, and less impact from turnaround activities compared to the third quarter.
• On January 7th, 2021, the Company announced that it expects its Titan facility in Trinidad will remain idled indefinitely. As a result, the Company has made the decision to restructure its Trinidad operations to support a one-plant operation.
• We continue to maintain a strong balance sheet, with a cash balance of $834 million and our revolving credit facility remains undrawn as at December 31, 2020.
• During the fourth quarter of 2020 we paid a $0.0375 per common share quarterly dividend to shareholders for a total of $3 million.

PRODUCTION HIGHLIGHTS

1. Operating capacity includes only those facilities which are currently capable of operating, but excludes any portion of an asset that is underutilized due to a lack of natural gas feedstock over a prolonged period of time. The operating capacity of our production facilities may be higher than original nameplate capacity as, over time, these figures have been adjusted to reflect ongoing operating efficiencies at these facilities. Actual production for a facility in any given year may be higher or lower than operating capacity due to a number of factors, including natural gas composition or the age of the facility's catalyst. 
2. The operating capacity of New Zealand is made up of the two Motunui facilities and the Waitara Valley facility. The New Zealand facilities are capable of producing up to 2.4 million tonnes annually, depending on natural gas composition and availability. Annual Operating Capacity is currently 2.2 million tonnes based on the current outlook for available high CO₂ natural gas.
3. The operating capacity of Trinidad is made up of the Titan (100% interest) and Atlas (63.1% interest) facilities.

Key production and operational highlights during the fourth quarter and production outlook for 2021 include:

• New Zealand produced 439,000 tonnes compared with 340,000 tonnes in the third quarter of 2020. In New Zealand, our production levels were higher in the fourth quarter as we received higher gas deliveries compared to the third quarter.
• Leading into 2021, our outlook for New Zealand production is uncertain as our gas suppliers have recently advised that a major offshore gas field which supplies the New Zealand market and underpins a portion of our production, has experienced significant and unexpected production declines, which will result in lower gas deliveries. Given that gas deliveries are expected to be lower in 2021, we are consolidating production at our two larger Motunui plants, which have a combined operating capacity of 1.7 million tonnes, and temporarily idling our smaller Waitara Valley plant. We estimate production in 2021 of 1.5 to 1.6 million tonnes compared to our production of 1.7 million tonnes in 2020.
• Geismar produced 556,000 tonnes during the fourth quarter of 2020 compared to 513,000 tonnes during the third quarter of 2020. Production for Geismar is higher in the fourth quarter of 2020 compared to the third quarter of 2020 as both plants operated without interruption throughout the quarter with Geismar 1 also realizing the benefits of the debottlenecking project completed early in the fourth quarter. Our Geismar facilities are underpinned by an abundant supply of North American natural gas.
• Trinidad produced 161,000 tonnes (Methanex interest) during the fourth quarter of 2020 compared with 167,000 tonnes in the third quarter of 2020. Production levels in Trinidad were similar in the fourth quarter compared to the third quarter as planned turnaround activities at our Atlas facility impacted both quarters.
• For 2021, we have been advised that upstream production declines, and the delay of upstream maintenance work due to COVID-19, will result in lower gas deliveries. It is unclear how long these lower gas deliveries will persist. Based on current gas deliveries, we estimate Trinidad production in 2021 of 0.9 million tonnes (Methanex share) compared to our production of 1.0 million tonnes (Methanex share) in 2020. All 2021 production is expected to come from the Atlas facility as we announced earlier this month that we expect the Titan facility will remain idled indefinitely because we have not been able to reach an acceptable longer-term natural gas agreement.
• Chile produced 195,000 tonnes during the fourth quarter of 2020 compared to 118,000 tonnes during the third quarter of 2020. Production for the fourth quarter of 2020 is higher compared to the third quarter of 2020 as we received higher gas deliveries. However, due to lower gas deliveries later in the fourth quarter resulting from upstream production declines in Argentina, we were unable to run both plants in December. Our Chile IV plant remains idle today and it is uncertain how long these lower gas deliveries will persist. We estimate production in 2021 of 0.9 to 1.0 million tonnes annually compared to our production of 0.8 million tonnes in 2020.
• Egypt production was similar quarter-on-quarter with 290,000 tonnes (Methanex interest - 145,000 tonnes) produced in the fourth quarter of 2020 and 306,000 tonnes (Methanex interest - 153,000 tonnes) in the third quarter of 2020. We expect to receive 100% of our contracted gas supply for the foreseeable future.
• Medicine Hat produced 111,000 tonnes during the fourth quarter of 2020 compared to 81,000 tonnes during the third quarter of 2020. Production for the fourth quarter of 2020 is higher compared to the third quarter of 2020 as a result of the completion of a scheduled turnaround of the Medicine Hat plant that commenced in August 2020 and completed in October 2020. Our Medicine Hat facilities are underpinned by an abundant supply of Canadian natural gas.
• Our 2021 production is forecasted to be similar to 2020 production of 6.6 million tonnes, although actual production may vary by quarter based on gas availability, planned outages, extended unplanned outages and unanticipated factors.

CONFERENCE CALL
A conference call is scheduled for January 28, 2021 at 11:00 am ET (8:00 am PT) to review these fourth quarter results. To access the call, dial the conferencing operator fifteen minutes prior to the start of the call at (416) 340-2217, or toll free at (800) 806-5484. The passcode for the call is 4043839#. A simultaneous audio-only webcast of the conference call can be accessed from our website at www.methanex.com and will also be available following the call. A playback version of the conference call will be available until February 28, 2021 at (905) 694-9451, or toll free at (800) 408-3053. The passcode for the playback version is 1578447#.

ABOUT METHANEX

Methanex is a Vancouver-based, publicly traded company and is the world’s largest producer and 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".

FORWARD-LOOKING INFORMATION WARNING

This fourth quarter 2020 press release contains forward-looking statements with respect to us and the chemical industry. By its nature, forward-looking information is subject to numerous risks and uncertainties, some of which are beyond the Company's control. Readers are cautioned that undue reliance should not be placed on forward-looking information as actual results may vary materially from the forward-looking information. Methanex does not undertake to update, correct or revise any forward-looking information as a result of any new information, future events or otherwise, except as may be required by applicable law. Refer to Forward-Looking Information Warning in the fourth quarter 2020 Management's Discussion and Analysis for more information which is available from the Investor Relations section of our website at www.methanex.com, the Canadian Securities Administrators' SEDAR website at www.sedar.com and on the United States Securities and Exchange Commission's EDGAR website at www.sec.gov.

NON-GAAP MEASURES

The Company has used the terms Adjusted EBITDA, Adjusted net income (loss), Adjusted net income (loss) per common share, Adjusted revenue and operating income (loss) throughout this document. These items are non-GAAP measures that do not have any standardized meaning prescribed by GAAP. These measures represent the amounts that are attributable to Methanex Corporation shareholders and are calculated by excluding the mark-to-market impact of share-based compensation as a result of changes in our share price and the impact of certain items associated with specific identified events. Refer to Additional Information - Supplemental Non-GAAP Measures on page 13 of the Company's MD&A for the period ended December 31, 2020 for reconciliations to the most comparable GAAP measures. Unless otherwise indicated, the financial information presented in this release is prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").

For further information, contact:

Kim Campbell
Director, Investor Relations
Methanex Corporation
604-661-2600