WASHINGTON, D.C. 20549

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(Registrant’s name)

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(Address of principal executive offices)

Form 20-F     o		Form 40-F     þ

Yes     o		No     þ

NEWS RELEASE
		Methanex Corporation
		1800 - 200 Burrard St.
		Vancouver, BC Canada V6C 3M1
		Investor Relations: (604) 661-2600 http://www.methanex.com

For immediate release

METHANEX ANNOUNCES RECORD EARNINGS IN THE FOURTH QUARTER AND COMPLETES ANOTHER EXCELLENT YEAR

January 23, 2008

For the fourth quarter of 2007, Methanex achieved record earnings of $1.72 per share (on a diluted basis), net income of $171.7 million and Adjusted EBITDA¹ of $270.3 million. This compares to earnings of $0.24 per share (on a diluted basis), net income of $23.6 million and Adjusted EBITDA of $68.6 million for the third quarter of 2007. For the year ended December 31, 2007, Methanex reported Adjusted EBITDA¹ of $652.3 million and net income of $375.7 million ($3.68 per share on a diluted basis).

Bruce Aitken, President and CEO of Methanex commented, “We are delighted to have produced record quarterly earnings per share and another excellent year for our shareholders. Methanol markets were tight during the fourth quarter as several planned and unplanned outages continued to impact global methanol supply. In addition, despite the high methanol price environment, methanol demand remained strong in both traditional chemical derivatives and new energy applications which benefited from record high energy prices. As a result, methanol prices reached all-time highs and we realized an average selling price of $514 per tonne in Q4 2007, an increase of $244 per tonne over our realization of $270 per tonne in Q3 2007.”

Mr. Aitken added, “As we enter the first quarter of 2008, we have seen some downward pressure on methanol prices, however prices remain at high levels. Global methanol supply has improved recently, including production in China where there is an incentive to produce at higher operating rates and export more methanol in the current high methanol price environment. However, we believe that industry inventories globally continue to be at low levels.”

Mr. Aitken concluded, “Our excellent cash generation in the fourth quarter leaves us in a strong financial position. With US$488 million cash on hand at the end of the year, a strong balance sheet and a US$250 million undrawn credit facility, we are well positioned to meet our financial requirements related to our methanol project in Egypt, pursue opportunities to accelerate natural gas development in southern Chile, pursue opportunities to sponsor methanol demand in new energy applications, pursue other strategic growth initiatives, and continue to deliver on our commitment to return excess cash to shareholders.”

A conference call is scheduled for Thursday, January 24, 2008 at 11:00 am EST (8:00 am PST) 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 passcode for the call is 45654. A playback version of the conference call will be available for fourteen days at (877) 653-0545. The reservation number for the playback version is 518971. There will be a simultaneous audio-only webcast of the conference call, which can be accessed from our website at www.methanex.com. In addition, an audio recording of the conference call can be downloaded from our website for three weeks after the call.

Methanex is a Vancouver based, publicly traded company engaged in the worldwide production, distribution and marketing of methanol. Methanex shares are listed for trading on the Toronto Stock Exchange in Canada under the trading symbol “MX”, on the NASDAQ Global Market in the United States under the trading symbol “MEOH”, and on the foreign securities market of the Santiago Stock Exchange in Chile under the trading symbol “Methanex”. Methanex can be visited online at www.methanex.com.

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FORWARD-LOOKING STATEMENTS

Information contained in this press release and the attached Fourth Quarter 2007 Management’s Discussion and Analysis contains forward-looking statements. 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. Methanex believes that it has a reasonable basis for making such forward-looking statements. 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 include those attendant with producing and marketing methanol and successfully carrying out major capital expenditure projects in various jurisdictions, the ability to successfully carry out corporate initiatives and strategies, conditions in the methanol and other industries including the supply and demand balance for methanol, the success of natural gas exploration and development activities in southern Chile and our ability to obtain any additional gas in that region on commercially acceptable terms, actions of competitors and suppliers, actions of governments and governmental authorities, changes in laws or regulations in foreign jurisdictions, world-wide economic conditions and other risks described in our 2006 Management’s Discussion & Analysis and the attached Fourth Quarter 2007 Management’s Discussion and Analysis. Undue reliance should not be placed 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. These materials also contain certain non-GAAP financial measures. Non-GAAP financial measures do not have any standardized meaning and therefore are unlikely to be comparable to similar measures used by other companies. For more information regarding these non-GAAP measures, please see our 2006 Management’s Discussion & Analysis and the attached Fourth Quarter 2007 Management’s Discussion and Analysis.

For further information, contact:

Jason Chesko
Director, Investor Relations
Tel: 604.661.2600

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FOURTH QUARTER MANAGEMENT’S DISCUSSION AND ANALYSIS

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

This fourth quarter 2007 Management’s Discussion and Analysis should be read in conjunction with the 2006 Annual Consolidated Financial Statements and the Management’s Discussion and Analysis included in the Methanex 2006 Annual Report. The Methanex 2006 Annual Report and additional information relating to Methanex is available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

		Three Months Ended												Years Ended
		Dec 31				Sep 30				Dec 31				Dec 31				Dec 31
($ millions, except where noted)		2007				2007				2006				2007				2006
Sales volumes (thousands of tonnes)
Company produced
Chile and Trinidad			913				933				1,077				4,082				4,990
New Zealand			84				140				83				487				320
			997				1,073				1,160				4,569				5,310
Purchased methanol			421				387				288				1,453				1,101
Commission sales 1			195				168				134				590				584
Total sales volumes			1,613				1,628				1,582				6,612				6,995
Methanex average non-discounted posted price ($  per tonne) 2			637				303				558				451				396
Average realized price ($  per tonne) 3			514				270				460				375				328
Adjusted EBITDA 4			270.3				68.6				279.2				652.3				800.1
Operating income 4			241.3				37.4				251.5				539.9				693.2
Net income			171.7				23.6				172.4				375.7				482.9
Income before unusual items (after-tax) 4			171.7				23.6				172.4				375.7				457.2
Cash flows from operating activities 4 5			187.8				59.9				218.5				493.9				622.9
Basic net income per common share			1.74				0.24				1.62				3.69				4.43
Diluted net income per common share			1.72				0.24				1.61				3.68				4.41
Diluted income before unusual items (after-tax) per share 4			1.72				0.24				1.61				3.68				4.18
Common share information (millions of shares):
Weighted average number of common shares			98.9				100.2				106.5				101.7				109.1
Diluted weighted average number of common shares			99.6				100.4				106.9				102.1				109.4
Number of common shares outstanding, end of period			98.3				99.4				105.8				98.3				105.8

METHANEX CORPORATION 2007 FOURTH QUARTER REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS		PAGE 1

PRODUCTION SUMMARY

		Annual				2007				2006					Q4 2007				Q3 2007				Q4 2006
(thousands of tonnes)		Capacity				Production				Production					Production				Production				Production
Chile I, II, III and IV			3,840				1,841				3,186					288				233				766
Titan			850				861				864					220				191				229
Atlas (63.1% interest)			1,073				982				1,057					278				290				267
New Zealand			530				435				404					75				122				111
			6,293				4,119				5,511					861				836				1,373

Our methanol facilities in Chile produced 288,000 tonnes compared with a quarterly capacity of 960,000 tonnes during the fourth quarter of 2007. When operating at capacity, we source approximately 60% of our natural gas requirements for our production facilities in Chile from natural gas suppliers in Argentina that are affiliates of international oil and gas companies. Since June, we have not received any of our natural gas supply from Argentina and this resulted in approximately 600,000 tonnes of lost production during the fourth quarter of 2007. We believe that there currently is sufficient natural gas production capability in the region to meet our full contracted supply from Argentina and that all pipeline capacity to transport natural gas from southern Argentina to the more populated areas in northern Argentina is full. However, natural gas supply has not been restored.

Effective July 25, 2006, the government of Argentina increased the duty on exports of natural gas from Argentina to Chile, which have been in place since May 2004, from approximately $0.30 per mmbtu to approximately $2.25 per mmbtu. This duty is reviewed quarterly and is adjusted with reference to a basket of international energy prices. While our natural gas contracts provide that natural gas suppliers are to pay any duties levied by the government of Argentina, we were contributing towards the cost of these duties when we were receiving natural gas from Argentina during the first half of 2007. We are in continuing discussions with our Argentinean natural gas suppliers regarding the impact of the increased export duty.

We cannot provide assurance as to when and to what extent our natural gas supply from Argentina will be restored or that we will be able to reach continuing arrangements with our natural gas suppliers, or that the impact of these issues will not continue to have an adverse effect on our results of operations and financial condition.

When operating at capacity, we source approximately 40% of our natural gas requirements for our production facilities in Chile from natural gas suppliers in Chile, primarily from Empresa Nacional del Petroleo (ENAP), the Chilean state-owned energy company, and from GeoPark Chile Limited (GeoPark). As a result of our Argentinean natural gas supply issues, all of the methanol production at our Chile facilities during the fourth quarter of 2007 was produced with natural gas from Chile. We received less than our full natural gas supply from ENAP as a result of ongoing deliverability and production issues. However, both ENAP and GeoPark increased natural gas supply to our Chile facilities during the fourth quarter of 2007 which allowed us to increase our methanol production compared with the third quarter of 2007.

We continue to work on sourcing additional natural gas supply for our Chile facilities from alternative sources in Chile. We are pursuing investment opportunities with ENAP and GeoPark to help accelerate the development of natural gas in southern Chile. Both parties are undertaking gas exploration and development programs in areas of southern Chile that are relatively close to our production facilities and their exploration and development efforts continue to be encouraging. ENAP and GeoPark recently announced discoveries of commercial gas in this area and as a result, Geopark has increased deliveries to our plants. On November 26, 2007, we announced that we signed a natural gas prepayment agreement with GeoPark Chile Limited under which we will provide US$40 million in financing to support and accelerate GeoPark’s natural gas exploration and development activities in the Fell Block in Southern Chile. Under the arrangement, GeoPark will also provide us with natural gas supply sourced from the Fell Block under a ten year supply agreement. If these activities are successful we expect our natural gas supply from GeoPark to increase over time. In November 2007, the government of Chile completed its first international bidding round to assign natural gas exploration areas which lie close to our production facilities and announced the participation of five international oil and gas companies. Exploration and development activities in these areas in Southern Chile are expected to commence during the first half of 2008.

METHANEX CORPORATION 2007 FOURTH QUARTER REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS		PAGE 2

We cannot provide assurance that ENAP, GeoPark or others will be successful in the exploration and development of natural gas or that we would obtain any additional natural gas on commercially acceptable terms.

Our methanol facilities in Trinidad represent over 1.9 million tonnes of low cost annual capacity. These methanol facilities continue to operate well and operated above design capacity during the fourth quarter of 2007. Our Atlas methanol facility produced 278,000 tonnes, or 104% of design capacity, and our Titan facility produced 220,000 tonnes, or 104% of design capacity.

We are currently operating our 530,000 tonne per year Waitara Valley facility in New Zealand. We produced 75,000 tonnes, or 57% of total capacity, at our Waitara Valley facility in New Zealand during the fourth quarter of 2007. Production was lower than capacity at this facility as a result of planned maintenance activities that were completed at the end of November 2007. We have sufficient contracted natural gas supply to allow us to produce at this facility until at least mid-2008. We are currently in discussions to secure natural gas to extend production from this facility or possibly commence operations at one of our larger 900,000 tonne per year facilities at our Motunui location. The future of our New Zealand operations continues to be dependent upon methanol industry supply and demand and the ability to secure natural gas on commercially acceptable terms.

EARNINGS ANALYSIS

The operating results for our production facilities in Chile, Trinidad and New Zealand represent a substantial proportion of our Adjusted EBITDA and, accordingly, we separately discuss changes in average realized price, sales volumes and total cash costs related to these facilities. Our core production facilities in Chile and Trinidad have an annual production capacity of 5.8 million tonnes and represent over 90% of our current annual production capacity. Our New Zealand assets represent flexible capacity and we are currently operating our 530,000 tonne per year Waitara Valley facility in New Zealand.

For a further discussion of the definitions and calculations used in our Adjusted EBITDA analysis, refer to How We Analyze Our Business.

For the fourth quarter of 2007 we recorded Adjusted EBITDA of $270.3 million and net income of $171.7 million ($1.72 per share on a diluted basis). This compares with Adjusted EBITDA of $68.6 million and net income of $23.6 million ($0.24 per share on a diluted basis) for the third quarter of 2007 and Adjusted EBITDA of $279.2 million, net income of $172.4 million ($1.61 per share on a diluted basis) for the fourth quarter of 2006.

For the year ended December 31, 2007, we recorded Adjusted EBITDA of $652.3 million, net income of $375.7 million ($3.68 per share on a diluted basis) compared with Adjusted EBITDA of $800.1 million, net income of $482.9 million ($4.41 per share on a diluted basis) and income before unusual items (after-tax) of $457.2 million ($4.18 per share on a diluted basis) during the same period in 2006.

METHANEX CORPORATION 2007 FOURTH QUARTER REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS		PAGE 3

The following is a reconciliation of net income to income before unusual items (after-tax):

		Three Months Ended												Years Ended
		Dec 31				Sep 30				Dec 31				Dec 31				Dec 31
($ millions)		2007				2007				2006				2007				2006
Net income		$	171.7			$	23.6			$	172.4			$	375.7			$	482.9
Add/(deduct) unusual items:
Future income taxes related to a change in tax legislation			—				—				—				—				(25.7	)
Income before unusual items (after-tax)		$	171.7			$	23.6			$	172.4			$	375.7			$	457.2

Refer to page 6 of this Management’s Discussion and Analysis and note 7 to our fourth quarter of 2007 interim consolidated financial statements for further information regarding future income taxes related to a change in tax legislation.

ADJUSTED EBITDA

The increase (decrease) in Adjusted EBITDA resulted from changes in the following:

		Q4 2007				Q4 2007				2007
		compared with				compared with				compared with
($ millions)		Q3 2007				Q4 2006				2006
Average realized price		$	231			$	48			$	181
Sales volumes			(9	)			(46	)			(136	)
Total cash costs1			(56	)			(33	)			(212	)
Margin on sale of purchased methanol			36				22				19
		$	202			$	(9	)		$	(148	)

Average realized price

		Three Months Ended												Years Ended
		Dec 31				Sep 30				Dec 31				Dec 31				Dec 31
($ per tonne, except where noted)		2007				2007				2006				2007				2006
Methanex average non-discounted posted price 1			637				303				558				451				396
Methanex average realized price 2			514				270				460				375				328
Average discount			19	%			11	%			18	%			17	%			17	%

As we entered the fourth quarter of 2007, there was a sharp increase in contract methanol pricing as a result of tight market conditions and low global inventories brought on by significant planned and unplanned production outages across the methanol industry, including our own facilities in Chile. Our average non- discounted posted price for the fourth quarter of 2007 was $637 per tonne compared with $303 per tonne for the third quarter of 2007 and $558 per tonne for the fourth quarter of 2006. Our average realized price for the fourth quarter of 2007 was $514 per tonne compared with $270 per tonne for the third quarter of 2007 and $460 per tonne for the fourth quarter of 2006. Higher average realized prices for the fourth quarter of 2007 increased our Adjusted EBITDA by $231 million compared with the third quarter of 2007 and by $48 million compared with the fourth quarter of 2006. Our average realized price for the year ended December 31, 2007 was $375 per tonne compared with $328 per tonne during 2006 and this increased our Adjusted EBITDA by $181 million.

The methanol industry is highly competitive and prices are affected by supply/demand fundamentals. We publish non-discounted prices for each major methanol market and offer discounts to customers based on various factors. For the fourth quarter of 2007 our average realized price was approximately 19% lower than our average non-discounted posted price. This compares with approximately 11% lower for the third quarter of 2007 and 18% lower for the fourth quarter of 2006.

METHANEX CORPORATION 2007 FOURTH QUARTER REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS		PAGE 4

To reduce the impact of cyclical pricing on our earnings, we have entered into long-term contracts for a portion of our production volume with certain global customers where prices are either fixed or linked to our costs plus a margin. For the year ended December 31, 2007, these sales have represented 22% of our total sales volumes. The discount from our average non-discounted posted pricing widened during the fourth quarter of 2007 compared with the third quarter of 2007 primarily as a result of the significant increase in methanol prices. We expect the discount from our non-discounted posted prices will narrow during periods of lower pricing.

Sales volumes

Sales volumes of produced methanol for the fourth quarter of 2007 were lower by 76,000 tonnes compared with the third quarter of 2007 and lower by 163,000 tonnes compared with the fourth quarter of 2006 and this decreased Adjusted EBITDA by $9 million and $46 million, respectively. Sales volumes of produced methanol for year ended December 31, 2007 were lower than 2006 by 741,000 tonnes primarily as a result of lower Chile production and this decreased Adjusted EBITDA by $136 million.

Total cash costs

Our production facilities in Chile and Trinidad are underpinned by natural gas purchase agreements with pricing terms that include base and variable price components. The variable component is adjusted at the time of production in relation to changes in methanol prices above pre-determined prices. As a result of these pricing terms, our natural gas costs are based on methanol prices at the time of production which may differ from methanol prices at the time of sale.

Our total cash costs for the fourth quarter of 2007 compared with the third quarter of 2007 were higher by $56 million. Our natural gas costs and other costs related to our Chile and Trinidad inventory sold during the fourth quarter of 2007 were higher compared with the third quarter of 2007 by $42 million primarily due to the impact of higher methanol pricing. Our ocean freight costs during the fourth quarter of 2007 were higher compared with the third quarter of 2007 by $9 million as a result of changes to our supply chain and higher fuel costs. Our selling, general and administrative costs were also higher by $5 million during the fourth quarter of 2007 compared with the third quarter of 2007 primarily due to the timing of expenditures.

Total cash costs for the fourth quarter of 2007 compared with the same period in 2006 were higher by $33 million. Our natural gas costs and other costs related to our Chile and Trinidad inventory sold during the fourth quarter of 2007 were higher compared with the third quarter of 2007 by $18 million primarily due to the impact of higher methanol pricing. Our ocean freight costs during the fourth quarter of 2007 were higher compared with the fourth quarter of 2006 by $8 million primarily as a result of changes to our supply chain and higher fuel costs. The remaining increase in our cash costs during the fourth quarter of 2007 compared with the fourth quarter of 2006 of $7 million primarily relates to higher unabsorbed fixed costs as a result of lower production rates at our Chile facilities in 2007.

Total cash costs for the year ended December 31, 2007 compared with 2006 were higher by $212 million. Cash costs related to sharing Argentina export duties increased by $53 million to $61 million in 2007 from $8 million in 2006. For the year ended December 31, 2007 compared with 2006, our natural gas costs and other costs related to our produced product sold were higher by $132 million primarily due to impact of higher methanol pricing during 2007. Our ocean freight costs were higher by $9 million for the year ended December 31, 2007 compared with 2006 primarily due to higher fuel costs. Our in-market distribution costs were higher by $11 million for the year ended December 31, 2007 compared with 2006. These higher in-market distribution costs have been substantially recovered from customers and this recovery has been included in revenue. Our selling, general and administrative expenses were lower by $7 million for the year ended December 31, 2007 compared with 2006 primarily as a result of impact of changes in our share price on our stock-based compensation expense. The remaining increase in cash costs of $14 million for the year ended December 31, 2007 compared with the same period in 2006 is primarily related to higher unabsorbed fixed costs as a result of lower production rates at our Chile facilities.

METHANEX CORPORATION 2007 FOURTH QUARTER REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS		PAGE 5

Margin on sale of purchased methanol

We purchase additional methanol produced by others through long-term and short-term offtake contracts or on the spot market to meet customer needs and support our marketing efforts. Consequently, we realize holding gains or losses on the resale of this product depending on the methanol price at the time of resale. During the fourth quarter of 2007, we had a positive cash margin of $35 million on the resale of 0.4 million tonnes of purchased methanol compared with a negative cash margin of $1 million on the resale of 0.4 million tonnes for the third quarter of 2007 and a positive cash margin of $13 million on the resale of 0.3 million tonnes for the fourth quarter of 2006. There was a sharp increase in contract methanol pricing as we entered the fourth quarter of 2007 and there were further increases during the quarter. As a result of this increased pricing, we realized holding gains from selling methanol that was purchased at lower pricing in the third quarter and early in the fourth quarter of 2007.

For the year ended December 31, 2007, we had a cash margin of $39 million on the resale of 1.5 million tonnes compared with a cash margin of $20 million on the resale of 1.1 million tonnes in 2006.

Depreciation and Amortization

Depreciation and amortization was $29 million for the fourth quarter of 2007 compared with $31 million for the third quarter of 2007. For the fourth quarter of 2007 and year ended December 31, 2007 depreciation and amortization was $29 million and $112 million, respectively, compared with $28 million and $107 million for the same periods in 2006. The increase in depreciation and amortization in 2007 compared with the same periods in 2006 is primarily as a result of a draw down of our produced inventories in 2007 which includes depreciation charges.

Interest Expense

		Three Months Ended												Years Ended
		Dec 31				Sep 30				Dec 31				Dec 31				Dec 31
($ millions)		2007				2007				2006				2007				2006
Interest expense before capitalized interest		$	13			$	13			$	11			$	48			$	45
Less capitalized interest			(2	)			(2	)			—				(4	)			—
Interest expense		$	11			$	11			$	11			$	44			$	45

In May 2007, we reached financial close and secured limited recourse debt of $530 million for our joint venture project to construct a 1.3 million tonne per year methanol facility in Egypt. During the fourth quarter of 2007, interest costs related to this project were capitalized.

Interest and Other Income

		Three Months Ended												Years Ended
		Dec 31				Sep 30				Dec 31				Dec 31				Dec 31
($ millions)		2007				2007				2006				2007				2006
Interest and other income		$	3			$	7			$	—			$	27			$	10

Interest and other income was $3 million for the fourth quarter of 2007 compared with $7 million for the third quarter of 2007. Interest and other income for the fourth quarter of 2007 and the year ended December 31, 2007 was $3 million and $27 million, respectively, compared with nil and $10 million for the same periods in 2006. The increase in interest and other income is primarily due to higher interest income earned in 2007.

Income Taxes

The effective tax rate for the fourth quarter of 2007 was 26% compared with 29% for the third quarter of 2007 and 28% for the fourth quarter of 2006. For the year ended December 31, 2007 was 28%. Excluding the unusual item related to the Trinidad tax adjustment, the effective tax rate was 31% in 2006. The statutory tax rate in Chile and Trinidad, where we earn a substantial portion of our pre-tax earnings, is 35%. Our Atlas facility in Trinidad has partial relief from corporation income tax until 2014.

METHANEX CORPORATION 2007 FOURTH QUARTER REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS		PAGE 6

In Chile the tax rate consists of a first category tax that is payable when income is earned and a second category tax that is due when earnings are distributed from Chile. The second category tax is initially recorded as future income tax expense and is subsequently reclassified to current income tax expense when earnings are distributed. Accordingly, the ratio of current income tax expense to total income tax expense is highly dependent on the level of cash distributed from Chile.

During 2005, the Government of Trinidad and Tobago introduced new tax legislation retroactive to January 1, 2004. As a result, during 2005 we recorded a $17 million charge to increase future income tax expense to reflect the retroactive impact for the period January 1, 2004 to December 31, 2004. In February 2006, the Government of Trinidad and Tobago passed an amendment to this legislation that changed the retroactive effective date to January 1, 2005. As a result of this amendment we recorded an adjustment to decrease future income tax expense by a total of $26 million during the first quarter of 2006. The adjustment includes a reversal of the previous charge to 2005 earnings and an additional adjustment to recognize the benefit of tax deductions that were reinstated as a result of the change in the retroactive effective date.

SUPPLY/DEMAND FUNDAMENTALS

As we entered the fourth quarter of 2007, market conditions were tight and global inventories were low as a result of significant planned and unplanned production outages across the methanol industry, including our own facilities in Chile. As a result, there was a sharp increase in spot methanol pricing in September and contract methanol pricing in October. During the fourth quarter, global inventories remained low and market conditions remained tight which resulted in methanol prices increasing further in November and December and prices remaining at high levels into 2008. Global industry operating rates have increased recently and this has resulted in a reduction in spot methanol prices globally.

During 2008, we expect additions of approximately 1.7 million tonnes of methanol capacity outside of China. The next increment of world-scale capacity is a 1.7 million tonne per year plant under construction in Saudi Arabia and we expect product from this plant should be available to the market in the second half of 2008. We also believe that global methanol demand growth combined with the potential shutdown of high cost capacity as a result of high feedstock prices could offset this new industry supply during 2008.

Methanex Non-Discounted Regional Posted Prices ¹

		Jan				Dec				Nov				Oct
(US$ per tonne)		2008				2007				2007				2007
United States			832				832				665				565
Europe 2			772				555				555				555
Asia			720				720				620				520

We believe global demand for methanol for traditional uses remains healthy and is underpinned by high growth rates in China and high energy prices. We believe that high energy prices are positive for and are currently supporting healthy demand for energy related derivatives such as dimethyl ether (DME) and fuel blending, biodiesel, and MTBE.

We believe methanol demand in China will continue to grow at high rates as a result of very strong traditional demand driven by high industrial production growth rates and additional demand related to non-traditional uses for methanol such as gasoline blending and DME. We also believe that there is increasing pressure on the cost structure of the Chinese methanol industry and the cost to export as a result of escalating feedstock costs in China, the continued appreciation of the Chinese currency and a decision by the government of China to reduce tax rebates offered to Chinese exporters of methanol during 2007. At the beginning of the fourth quarter of 2007, China was a net importer of methanol. However, in the current environment of very high methanol prices, we believe China has the incentive to operate at higher production rates and export methanol and that towards the end of the fourth quarter, we believe that imports have been reduced and exports have increased. We believe in a lower price environment substantially all domestic methanol production in China will be consumed within the local market and that imports of methanol into China will grow over time.

METHANEX CORPORATION 2007 FOURTH QUARTER REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS		PAGE 7

LIQUIDITY AND CAPITAL RESOURCES

Cash flows from operating activities before changes in non-cash working capital in the fourth quarter of 2007 were $188 million compared with $218 million for the same period in 2006. For the year ended December 31, 2007, our cash flows from operating activities before changes in non-cash working capital were $494 million compared with $623 million for the same period in 2006. During the fourth quarter of 2007, our non-cash working capital increased by $108 million primarily as a result of the impact of higher methanol pricing on our working capital balances.

During the fourth quarter of 2007, we repurchased 1.4 million common shares at an average price of US$27.94 per share, totaling $40 million, under a normal course issuer bid that expires May 16, 2008. At December 31, 2007, we have repurchased a total of 4.3 million common shares of the maximum allowable repurchase under this bid of 8.7 million common shares. For the year ended December 31, 2007, we repurchased a total of 8.0 million common shares at an average price of US$25.45 per share, totaling $205 million, inclusive of 3.7 million common shares repurchased in 2007 under a normal course issuer bid that expired May 16, 2007.

During the fourth quarter of 2007, we paid a quarterly dividend of US$0.14 per share, or $14 million. For the year ended December 31, 2007 we paid total dividends of US$0.545 per share, or $55 million.

In May 2007, we reached financial close for our project to construct a 1.3 million tonne per year methanol facility at Damietta on the Mediterranean Sea in Egypt. We are developing the project through a joint venture in which we have a 60% interest. The joint venture has secured limited recourse debt of $530 million. We expect commercial operations from the methanol facility to begin in early 2010 and we will purchase and sell 100% of the methanol from the facility. The total estimated future costs to complete the project over the next three years, excluding financing costs and working capital, are expected to be approximately $665 million. Our 60% share of future equity contributions, excluding financing costs and working capital, over the next three years is estimated to be approximately $175 million and we expect to fund these expenditures from cash generated from operations and cash on hand.

We have excellent financial capacity and flexibility. Our cash balance at December 31, 2007 was $488 million and we have a strong balance sheet with an undrawn $250 million credit facility. 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. Our planned capital maintenance expenditure program directed towards major maintenance, turnarounds and catalyst changes is currently estimated to total approximately $95 million for the period to the end of 2010.

We are well positioned to meet our financial requirements related to the methanol project in Egypt, complete our capital maintenance spending program, pursue new opportunities to enhance our leadership position in the methanol industry, pursue opportunities to invest to accelerate the development of natural gas in Southern Chile, investigate opportunities related to new methanol demand for energy applications and continue to deliver on our commitment to return excess cash to shareholders.

The credit ratings for our unsecured notes at December 31, 2007 were as follows:

Standard & Poor’s Rating Services		BBB- (stable)
Moody’s Investor Services		Ba1   (stable)
Fitch Ratings		BBB  (stable)

Credit ratings are not recommendations to purchase, hold or sell securities and do not comment on market price or suitability for a particular investor. There is no assurance that any rating will remain in effect for any given period of time or that any rating will not be revised or withdrawn entirely by a rating agency in the future.

SHORT-TERM OUTLOOK

We are entering 2008 in an environment of strong pricing, although recently spot prices have declined. We have historically low inventories, but at higher costs due to the high methanol price environment. During 2008, we expect to see new non-traditional demand growth for methanol for energy related uses such as di-methyl ether (DME) and fuel blending. It is our view that traditional and non-traditional growth, along with closures of high cost capacity, will substantially offset the new supply that is scheduled to start up over the coming year. We believe that supply/demand fundamentals will be balanced to tight during 2008 and that methanol prices will be underpinned by strong demand in China and global energy prices.

The methanol price will ultimately depend on industry operating rates, global energy prices, the rate of industry restructuring and the strength of global demand. We believe that our excellent financial position and financial flexibility, outstanding global supply network and low cost position will provide a sound basis for Methanex continuing to be the leader in the methanol industry.

METHANEX CORPORATION 2007 FOURTH QUARTER REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS		PAGE 8

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

These interim consolidated financial statements are prepared in accordance with Canadian generally accepted accounting principles (Canadian GAAP) on a basis consistent with those followed in the most recent annual consolidated financial statements, except as described in Note 2 to our interim consolidated financial statements. Certain of our accounting policies are recognized as critical because they require management to make subjective or complex judgments about matters that are inherently uncertain. Our critical accounting policies and estimates relate to property, plant and equipment, asset retirement obligations, and income taxes. For further details, refer to pages 29 to 30 of our 2006 Annual Report.

CHANGES IN ACCOUNTING POLICIES OR ESTIMATES

On January 1, 2007, we adopted, on a prospective basis, the Canadian Institute of Chartered Accountants (“CICA”) Handbook Section 1530, Comprehensive Income, Section 3251, Equity, Section 3855, Financial Instruments - Recognition and Measurement, Section 3861, Financial Instruments - Disclosure and Presentation, and Section 3865, Hedges. These standards, and the impact on our financial statements, are discussed in Note 2 to our interim consolidated financial statements.

CONTROLS AND PROCEDURES

For the three months ended December 31, 2007, no changes were made 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 Canadian generally accepted accounting principles (Canadian GAAP), we present certain supplemental non-GAAP measures. These are Adjusted EBITDA, income before unusual items (after-tax), diluted income before unusual items (after-tax) per share, operating income and cash flows from operating activities before changes in non-cash working capital. These measures do not have any standardized meaning prescribed by Canadian GAAP and therefore are unlikely to be comparable to similar measures presented by other companies. We believe these measures are useful in evaluating the operating performance and liquidity of the Company’s ongoing business. These measures should be considered in addition to, and not as a substitute for, net income, cash flows and other measures of financial performance and liquidity reported in accordance with Canadian GAAP.

METHANEX CORPORATION 2007 FOURTH QUARTER REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS		PAGE 9

Adjusted EBITDA

This supplemental non-GAAP measure is provided to assist readers in determining our ability to generate cash from operations. We believe this measure is useful in assessing performance and highlighting trends 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 differs from the most comparable GAAP measure, cash flows from operating activities, primarily because it does not include changes in non-cash working capital, other cash payments related to operating activities, stock-based compensation expense, other non-cash items, interest expense, interest and other income, and current income taxes.

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

		Three Months Ended												Years Ended
		Dec 31				Sep 30				Dec 31				Dec 31				Dec 31
($ thousands)		2007				2007				2006				2007				2006
Cash flows from operating activities		$	79,911			$	132,497			$	149,731			$	527,335			$	468,837
Add (deduct):
Changes in non-cash working capital			107,923				(72,609	)			68,761				(33,396	)			154,083
Other cash payments			11,938				598				15,612				16,824				27,322
Stock-based compensation expense			(6,755	)			(5,386	)			(8,702	)			(22,410	)			(31,199	)
Other non-cash items			(3,105	)			(4,282	)			(2,854	)			(13,574	)			(8,422	)
Interest expense			10,878				10,807				11,096				43,911				44,586
Interest and other income			(2,583	)			(6,601	)			316				(26,862	)			(9,598	)
Current income taxes			72,139				13,571				45,252				160,514				154,466
Adjusted EBITDA		$	270,346			$	68,595			$	279,212			$	652,342			$	800,075

Income before Unusual Items (after-tax) and Diluted Income before Unusual Items (after-tax) Per Share

These supplemental non-GAAP measures are provided to assist readers in comparing earnings from one period to another without the impact of unusual items that management considers to be non-operational and/or non-recurring. Diluted income before unusual items (after-tax) per share has been calculated by dividing income before unusual items (after-tax) by the diluted weighted average number of common shares outstanding.

The following table shows a reconciliation of net income to income before unusual items (after-tax) and the calculation of diluted income before unusual items (after-tax) per share:

		Three Months Ended												Years Ended
		Dec 31				Sep 30				Dec 31				Dec 31				Dec 31
($ thousands, except number of shares and per share amounts)		2007				2007				2006				2007				2006
Net income		$	171,697			$	23,610			$	172,445			$	375,667			$	482,949
Add (deduct) unusual items:
Future income taxes related to a change in tax legislation			—				—				—				—				(25,753	)
Income before unusual items (after-tax)		$	171,697			$	23,610			$	172,445			$	375,667			$	457,196
Diluted weighted average number of common shares			99,616,275				100,417,273				106,890,909				102,129,929				109,441,404
Diluted income before unusual items (after-tax) per share		$	1.72			$	0.24			$	1.61			$	3.68			$	4.18

METHANEX CORPORATION 2007 FOURTH QUARTER REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS		PAGE 10

Operating Income and Cash Flows from Operating Activities before Non-Cash Working Capital

Operating income and cash flows from operating activities before changes in non-cash working capital are reconciled to Canadian GAAP measures in our consolidated statements of income and consolidated statements of cash flows, respectively.

QUARTERLY FINANCIAL DATA (UNAUDITED)

A summary of selected financial information for the prior eight quarters is as follows:

		Three Months Ended
		Dec 31				Sep 30				Jun 30				Mar 31
($ thousands, except per share amounts)		2007				2007				2007				2007
Revenue		$	731,057			$	395,118			$	466,414			$	673,932
Net income			171,697				23,610				35,654				144,706
Basic net income per common share			1.74				0.24				0.35				1.38
Diluted net income per common share			1.72				0.24				0.35				1.37

		Three Months Ended
		Dec 31				Sep 30				Jun 30				Mar 31
($ thousands, except per share amounts)		2006				2006				2006				2006
Revenue		$	668,159			$	519,586			$	460,915			$	459,590
Net income			172,445				113,230				82,097				115,177
Basic net income per common share			1.62				1.05				0.75				1.02
Diluted net income per common share			1.61				1.05				0.75				1.02

METHANEX CORPORATION 2007 FOURTH QUARTER REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS		PAGE 11

HOW WE ANALYZE OUR BUSINESS

We review our results of operations by analyzing changes in the components of our Adjusted EBITDA (refer to Supplemental Non-GAAP Measures for a reconciliation to the most comparable GAAP measure), depreciation and amortization, interest expense, interest and other income, unusual items and income taxes. In addition to the methanol that we produce at our facilities, we also purchase and re-sell methanol produced by others. We analyze the results of produced methanol sales separately from purchased methanol sales as the margin characteristics of each are very different.

Produced Methanol

Our production facilities generate the substantial proportion of our Adjusted EBITDA, and accordingly, the key drivers of changes in our Adjusted EBITDA for produced methanol are analyzed separately. The key drivers of changes in our Adjusted EBITDA for produced methanol are average realized price, sales volume and cash costs. Changes in Adjusted EBITDA related to our produced methanol include our sales of methanol from our facilities in Chile, Trinidad and New Zealand.

The price, cash cost and volume variances included in our Adjusted EBITDA analysis for produced methanol are defined and calculated as follows:

PRICE		The change in our Adjusted EBITDA as a result of changes in average realized price is calculated as the difference from period-to-period in the selling price of produced methanol multiplied by the current period sales volume of produced methanol. Sales under long-term contracts where the prices are either fixed or linked to our costs plus a margin are included as sales of produced methanol. Accordingly, the selling price of produced methanol will differ from the selling price of purchased methanol.
COST		The change in our Adjusted EBITDA as a result of changes in cash costs is calculated as the difference from period-to-period in cash costs per tonne multiplied by the sales volume of produced methanol in the current period plus the change in unabsorbed fixed cash costs. The change in selling, general and administrative expenses and fixed storage and handling costs are included in the analysis of methanol produced at our Chile, Trinidad and New Zealand facilities.
VOLUME		The change in our Adjusted EBITDA as a result of changes in sales volume is calculated as the difference from period-to-period in the sales volume of produced methanol multiplied by the margin per tonne for the prior period. The margin per tonne is calculated as the selling price per tonne of produced methanol less absorbed fixed cash costs per tonne and variable cash costs per tonne (excluding Argentina natural gas export duties costs per tonne).

Purchased Methanol

The cost of sales of purchased methanol consists principally of the cost of the methanol itself, which is directly related to the price of methanol at the time of purchase. Accordingly, the analysis of purchased methanol and its impact on our Adjusted EBITDA is discussed on a net margin basis.

METHANEX CORPORATION 2007 FOURTH QUARTER REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS		PAGE 12

FORWARD-LOOKING STATEMENTS

Information in this press release and the Fourth Quarter 2007 Management’s Discussion and Analysis contains forward-looking statements. 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. Methanex believes that it has a reasonable basis for making such forward-looking statements. 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 include those attendant with producing and marketing methanol and successfully carrying out major capital expenditure projects in various jurisdictions, the ability to successfully carry out corporate initiatives and strategies, conditions in the methanol and other industries including the supply and demand balance for methanol, the success of natural gas exploration and development activities in southern Chile and our ability to obtain any additional gas in that region on commercially acceptable terms, actions of competitors and suppliers, actions of governments and governmental authorities, changes in laws or regulations in foreign jurisdictions, world-wide economic conditions and other risks described in our 2006 Management’s Discussion & Analysis and the attached Fourth Quarter 2007 Management’s Discussion and Analysis. Undue reliance should not be placed 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. These materials also contain certain non-GAAP financial measures. Non-GAAP financial measures do not have any standardized meaning and therefore are unlikely to be comparable to similar measures used by other companies. For more information regarding these non-GAAP measures, please see our 2006 Management’s Discussion & Analysis and refer to Additional Information – Supplemental Non-Gaap Measures section on page 12 of the Fourth Quarter 2007 Management’s Discussion and Analysis.

METHANEX CORPORATION 2007 FOURTH QUARTER REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS		PAGE 13

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

		Three Months Ended								Years Ended
		Dec 31				Dec 31				Dec 31				Dec 31
		2007				2006				2007				2006
Revenue		$	731,057			$	668,159			$	2,266,521			$	2,108,250
Cost of sales and operating expenses			460,711				388,947				1,614,179				1,308,175
Depreciation and amortization			29,070				27,677				112,428				106,828
Operating income before undernoted items			241,276				251,535				539,914				693,247
Interest expense (note 6)			(10,878	)			(11,096	)			(43,911	)			(44,586	)
Interest and other income (expense)			2,583				(316	)			26,862				9,598
Income before income taxes			232,981				240,123				522,865				658,259
Income taxes:
Current			(72,139	)			(45,252	)			(160,514	)			(154,466	)
Future			10,855				(22,426	)			13,316				(46,597	)
Future income tax recovery related to change in tax legislation (note 7)			—				—				—				25,753
			(61,284	)			(67,678	)			(147,198	)			(175,310	)
Net income		$	171,697			$	172,445			$	375,667			$	482,949
Net income per common share:
Basic		$	1.74			$	1.62			$	3.69			$	4.43
Diluted		$	1.72			$	1.61			$	3.68			$	4.41
Weighted average number of common shares outstanding:
Basic			98,935,669				106,486,900				101,717,341				109,110,689
Diluted			99,616,275				106,890,909				102,129,929				109,441,404
Number of common shares outstanding at period end			98,310,254				105,800,942				98,310,254				105,800,942

See accompanying notes to consolidated financial statements.

METHANEX CORPORATION 2007 FOURTH QUARTER REPORT CONSOLIDATED FINANCIAL STATEMENTS		PAGE 14

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

		Dec 31				Dec 31
		2007				2006
ASSETS
Current assets:
Cash and cash equivalents		$	488,224			$	355,054
Receivables			394,843				366,387
Inventories			312,143				244,766
Prepaid expenses			20,889				24,047
			1,216,099				990,254
Property, plant and equipment (note 3)			1,542,100				1,362,281
Other assets			104,700				100,518
		$	2,862,899			$	2,453,053
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities		$	459,020			$	309,979
Current maturities on long-term debt (note 5)			15,282				14,032
Current maturities on other long-term liabilities			16,965				17,022
			491,267				341,033
Long-term debt (note 5)			581,987				472,884
Other long-term liabilities			74,431				68,818
Future income tax liabilities (note 7)			338,602				351,918
Non-controlling interest			41,258				9,149
Shareholders’ equity:
Capital stock			451,640				474,739
Contributed surplus			16,021				10,346
Retained earnings			876,348				724,166
Accumulated other comprehensive income (loss)			(8,655	)			—
			1,335,354				1,209,251
		$	2,862,899			$	2,453,053

See accompanying notes to consolidated financial statements.

METHANEX CORPORATION 2007 FOURTH QUARTER REPORT CONSOLIDATED FINANCIAL STATEMENTS		PAGE 15

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

																			Accumulated
		Number of																	Other					Total
		Common					Capital				Contributed				Retained				Comprehensive					Shareholders’
		Shares					Stock				Surplus				Earnings				Income (Loss)					Equity
Balance, December 31, 2005			113,645,292				$	502,879			$	4,143			$	442,492			$	—				$	949,514
Net income			—					—				—				482,949				—					482,949
Compensation expense recorded for stock options			—					—				8,568				—				—					8,568
Issue of shares on exercise of stock options			680,950					7,519				—				—				—					7,519
Reclassification of grant date fair value on exercise of stock options			—					2,365				(2,365	)			—				—					—
Payments for shares repurchased			(8,525,300	)				(38,024	)			—				(148,755	)			—					(186,779	)
Dividend payments			—					—				—				(52,520	)			—					(52,520	)
Balance, December 31, 2006			105,800,942					474,739				10,346				724,166				—					1,209,251
Net income			—					—				—				203,970				—					203,970
Compensation expense recorded for stock options			—					—				7,111				—				—					7,111
Issue of shares on exercise of stock options			254,075					4,163				—				—				—					4,163
Reclassification of grant date fair value on exercise of stock options			—					1,640				(1,640	)			—				—					—
Payments for shares repurchased			(6,612,763	)				(29,805	)			—				(134,967	)			—					(164,772	)
Dividend payments			—					—				—				(41,277	)			—					(41,277	)
Other comprehensive income (loss)			—					—				—				—				(2,200	)				(2,200	)
Balance, September 30, 2007			99,442,254					450,737				15,817				751,892				(2,200	)				1,216,246
Net income			—					—				—				171,697				—					171,697
Compensation expense recorded for stock options			—					—				2,232				—				—					2,232
Issue of shares on exercise of stock options			298,100					5,357				—				—				—					5,357
Reclassification of grant date fair value on exercise of stock options			—					2,028				(2,028	)			—				—					—
Payments for shares repurchased			(1,430,100	)				(6,482	)			—				(33,473	)			—					(39,955	)
Dividend payments			—					—				—				(13,768	)			—					(13,768	)
Other comprehensive income (loss)			—					—				—				—				(6,455	)				(6,455	)
Balance, December 31, 2007			98,310,254				$	451,640			$	16,021			$	876,348			$	(8,655	)			$	1,335,354

See accompanying notes to consolidated financial statements.

Consolidated Statements of Comprehensive Income (unaudited)
(thousands of U.S. dollars)

		Three months				Year
		ended				ended
		Dec 31				Dec 31
		2007				2007
Net income		$	171,697			$	375,667
Other comprehensive income (loss):
Change in fair value of forward exchange contracts, net of tax (note 12)			79				(45	)
Change in fair value of interest rate swap contracts, net of tax (note 12)			(6,534	)			(8,610	)
			(6,455	)			(8,655	)
Comprehensive income		$	165,242			$	367,012

See accompanying notes to consolidated financial statements.

METHANEX CORPORATION 2007 FOURTH QUARTER REPORT CONSOLIDATED FINANCIAL STATEMENTS		PAGE 16

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

		Three Months Ended								Years Ended
		Dec 31				Dec 31				Dec 31				Dec 31
		2007				2006				2007				2006
CASH FLOWS FROM OPERATING ACTIVITIES
Net income		$	171,697			$	172,445			$	375,667			$	482,949
Add (deduct) non-cash items:
Depreciation and amortization			29,070				27,677				112,428				106,828
Future income taxes			(10,855	)			22,426				(13,316	)			20,844
Stock-based compensation expense			6,755				8,702				22,410				31,199
Other			3,105				2,854				13,574				8,422
Other cash payments			(11,938	)			(15,612	)			(16,824	)			(27,322	)
Cash flows from operating activities before undernoted			187,834				218,492				493,939				622,920
Changes in non-cash working capital (note 11)			(107,923	)			(68,761	)			33,396				(154,083	)
			79,911				149,731				527,335				468,837
CASH FLOWS FROM FINANCING ACTIVITIES
Payments for shares repurchased			(39,955	)			(35,671	)			(204,727	)			(186,779	)
Dividend payments			(13,768	)			(13,239	)			(55,045	)			(52,520	)
Proceeds from limited recourse debt (note 5)			35,000				—				131,574				—
Financing costs			—				—				(8,725	)			—
Equity contribution by non-controlling interest			11,601				4,419				32,109				9,149
Repayment of limited recourse debt			(7,328	)			(7,016	)			(14,344	)			(14,032	)
Proceeds on issue of shares on exercise of stock options			5,357				1,857				9,520				7,519
Changes in debt service reserve accounts			135				—				1,035				(2,301	)
Repayment of other long-term liabilities			(1,384	)			(1,063	)			(5,153	)			(5,897	)
			(10,342	)			(50,713	)			(113,756	)			(244,861	)
CASH FLOWS FROM INVESTING ACTIVITIES
Property, plant and equipment			(24,165	)			(9,705	)			(76,239	)			(42,195	)
Plant and equipment construction costs (note 14)			(87,804	)			(4,976	)			(201,922	)			(20,796	)
Other assets			(14,610	)			486				(19,788	)			355
Changes in non-cash working capital (note 11)			12,027				5,689				17,540				34,959
			(114,552	)			(8,506	)			(280,409	)			(27,677	)
Increase (decrease) in cash and cash equivalents			(44,983	)			90,512				133,170				196,299
Cash and cash equivalents, beginning of period			533,207				264,542				355,054				158,755
Cash and cash equivalents, end of period		$	488,224			$	355,054			$	488,224			$	355,054
SUPPLEMENTARY CASH FLOW INFORMATION
Interest paid		$	5,641			$	5,938			$	38,454			$	38,577
Income taxes paid, net of amounts refunded		$	41,176			$	12,246			$	144,169			$	110,275

See accompanying notes to consolidated financial statements.

METHANEX CORPORATION 2007 FOURTH QUARTER REPORT CONSOLIDATED FINANCIAL STATEMENTS		PAGE 17

Methanex Corporation
Notes to Consolidated Financial Statements (unaudited)
Except where otherwise noted, tabular dollar amounts are stated in thousands of U.S. dollars.

1.		Basis of presentation
		These interim consolidated financial statements are prepared in accordance with generally accepted accounting principles in Canada on a basis consistent with those followed in the most recent annual consolidated financial statements, except as described in note 2 below. These accounting principles are different in some respects from those generally accepted in the United States and the significant differences are described and reconciled in note 15. These interim consolidated financial statements do not include all note disclosures required by Canadian generally accepted accounting principles for annual financial statements, and therefore should be read in conjunction with the annual consolidated financial statements included in the Methanex Corporation 2006 Annual Report.
2.		Changes in accounting policies
		On January 1, 2007, the Company adopted the Canadian Institute of Chartered Accountants (“CICA”) Handbook Section 1530, Comprehensive Income, Section 3251, Equity, Section 3855, Financial Instruments — Recognition and Measurement, Section 3861, Financial Instruments - Disclosure and Presentation, and Section 3865, Hedges. These new accounting standards, which apply to fiscal years beginning on or after October 1, 2006, provide comprehensive requirements for the recognition and measurement of financial instruments, as well as standards on when and how hedge accounting may be applied. Section 1530 establishes standards for reporting and presenting comprehensive income, which is defined as the change in equity from transactions and other events from non-owner sources. Other comprehensive income refers to items recognized in comprehensive income that are excluded from net income calculated in accordance with generally accepted accounting principles.
		Under these new standards, financial instruments must be classified into one of five categories and, depending on the category, will either be measured at amortized cost or fair value. Held-to-maturity, loans and receivables and other financial liabilities are measured at amortized cost. Held for trading and available-for-sale financial assets are measured on the balance sheet at fair value. Changes in fair value of held-for-trading financial assets are recognized in earnings while changes in fair value of available-for-sale financial instruments are recorded in other comprehensive income until the investment is derecognized or impaired at which time the amounts would be recorded in earnings. Under adoption of these new standards, the Company classified its cash as held-for-trading, which is measured at fair value. Accounts receivable are classified as loans and receivables, which are measured at amortized cost. Accounts payable and accrued liabilities, long-term debt, net of debt issuance costs, and other long-term liabilities are classified as other financial liabilities, which are also measured at amortized cost.
		Under these new standards, derivative financial instruments, including embedded derivatives, are classified as held for trading and are recorded on the balance sheet at fair value unless exempted as a normal purchase and sale arrangement. The Company records all changes in fair value of derivative financial instruments in earnings unless the instruments are designated as cash flow hedges. The Company enters into and designates as cash flow hedges certain forward exchange sales contracts to hedge foreign exchange exposure on anticipated sales. The Company also enters into and designates as cash flow hedges certain interest rate swap contracts to hedge variable interest rate exposure on its limited recourse debt. The effective portion of changes in fair value of these forward exchange sales contracts and interest rate swap contracts is recognized in other comprehensive income. Any gain or loss in fair value relating to the ineffective portion is recognized immediately in earnings.
		These standards have been adopted on a prospective basis beginning January 1, 2007. For additional information, see note 12.

METHANEX CORPORATION 2007 FOURTH QUARTER REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS		PAGE 18

3. Property, plant and equipment

						Accumulated					Net Book
		Cost				Depreciation					Value
December 31, 2007
Plant and equipment		$	2,774,392			$	1,530,947				$	1,243,445
Plant and equipment under construction			227,783				—					227,783
Other			124,779				53,907					70,872
		$	3,126,954			$	1,584,854				$	1,542,100
December 31, 2006
Plant and equipment		$	2,728,837			$	1,451,162				$	1,277,675
Plant and equipment under construction			25,861				—					25,861
Other			102,597				43,852					58,745
		$	2,857,295			$	1,495,014				$	1,362,281

4. Interest in Atlas joint venture

The Company has a 63.1% joint venture interest in Atlas Methanol Company (Atlas). Atlas owns a 1.7 million tonne per year methanol production facility in Trinidad. Included in the consolidated financial statements are the following amounts representing the Company’s proportionate interest in Atlas:

		Dec 31				Dec 31
Consolidated Balance Sheets		2007				2006
Cash and cash equivalents		$	20,128			$	19,268
Other current assets			88,524				62,420
Property, plant and equipment			263,942				264,292
Other assets			16,329				22,471
Accounts payable and accrued liabilities			37,026				28,644
Long-term debt, including current maturities (note 5)			119,891				136,916
Future income tax liabilities (note 7)			16,099				10,866

		Three Months Ended								Years Ended
		Dec 31				Dec 31				Dec 31				Dec 31
Consolidated Statements of Income		2007				2006				2007				2006
Revenue		$	114,324			$	60,307			$	258,418			$	219,879
Expenses			80,242				57,068				214,981				182,656
Income before income taxes			34,082				3,239				43,437				37,223
Income taxes (note 7)			(5,902	)			(687	)			(9,458	)			9,997
Net income		$	28,180			$	2,552			$	33,979			$	47,220

		Three Months Ended								Years Ended
		Dec 31				Dec 31				Dec 31				Dec 31
Consolidated Statements of Cash Flows		2007				2006				2007				2006
Cash inflows (outflows) from operating activities		$	(818	)		$	(15,782	)		$	40,317			$	23,465
Cash outflows from financing activities			(6,881	)			(7,016	)			(12,997	)			(14,032	)
Cash outflows from investing activities			(2,521	)			(353	)			(16,380	)			(3,137	)

METHANEX CORPORATION 2007 FOURTH QUARTER REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS		PAGE 19

5. Long-term debt:

		Dec 31				Dec 31
		2007				2006
Unsecured notes
8.75% due August 15, 2012		$	197,776			$	200,000
6.00% due August 15, 2015			148,340				150,000
			346,116				350,000
Atlas limited recourse debt facilities			119,891				136,916
Egypt limited recourse debt facilities			116,574				—
Other limited recourse debt			14,688				—
			597,269				486,916
Less current maturities			(15,282	)			(14,032	)
		$	581,987			$	472,884

During the second quarter of 2007, the Company achieved financial close to construct a methanol plant in Egypt (as described in note 14). The debt facilities are for an aggregate maximum of $530 million with interest payable semi-annually based on rates of LIBOR plus approximately 1.1% to 1.2% during construction and increasing to approximately 1.4% to 1.6% by the end of the loan term. The LIBOR-based interest payments on approximately half of the projected outstanding debt balance have been fixed at 5.1% through interest rate swap agreements for the period September 28, 2007 to March 31, 2015 as described in note 12(c). Principal is paid in 24 semi-annual payments which will commence in September 2010. Under the terms of the Egypt limited recourse debt facilities, the Egypt entity can make cash or other distributions after fulfilling certain conditions.

The limited recourse debt facilities of Egypt and Atlas are described as limited recourse as they are secured only by the assets of the Egypt entity and the Atlas joint venture, respectively.

Other limited recourse debt is payable over 12 years in equal quarterly principal payments beginning October 2007. Interest on this debt is payable quarterly at LIBOR plus 0.75%.

6. Interest expense:

		Three Months Ended								Years Ended
		Dec 31				Dec 31				Dec 31				Dec 31
		2007				2006				2007				2006
Interest expense before capitalized interest		$	13,242			$	11,096			$	48,104			$	44,586
Less: capitalized interest related to Egypt project			(2,364	)			—				(4,193	)			—
Interest expense		$	10,878			$	11,096			$	43,911			$	44,586

In May 2007, the Company reached financial close and secured limited recourse debt of $530 million for its joint venture project to construct a 1.3 million tonne per year methanol facility in Egypt. For the three months and year ended December 31, 2007, interest costs related to this project of $2 million and $4 million, respectively, were capitalized.

7. Future income taxes related to change in tax legislation:

During 2005, the Government of Trinidad and Tobago introduced new tax legislation retroactive to January 1, 2004. As a result, during 2005 we recorded a $16.9 million charge to increase future income tax expense to reflect the retroactive impact for the period January 1, 2004 to December 31, 2004. In February 2006, the Government of Trinidad and Tobago passed an amendment to this legislation that changed the retroactive date to January 1, 2005. As a result of the amendment we recorded an adjustment to decrease future income taxes by a total of $25.8 million. The adjustment is made up of the reversal of the previous charge to 2005 earnings of $16.9 million and an additional adjustment of $8.9 million to recognize the benefit of tax deductions that were reinstated as a result of the change in the implementation date.

METHANEX CORPORATION 2007 FOURTH QUARTER REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS		PAGE 20

8. Net income per common share:

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

		Three Months Ended								Years Ended
		Dec 31				Dec 31				Dec 31				Dec 31
		2007				2006				2007				2006
Denominator for basic net income per common share			98,935,669				106,486,900				101,717,341				109,110,689
Effect of dilutive stock options			680,606				404,009				412,588				330,715
Denominator for diluted net income per common share			99,616,275				106,890,909				102,129,929				109,441,404

9. Stock-based compensation:

a)

Stock options:

(i)

Incentive stock options:

Common shares reserved for outstanding incentive stock options at December 31, 2007: