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

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

For immediate release
METHANEX DELIVERS OUTSTANDING QUARTERLY EARNINGS

April 27, 2006

For the first quarter of 2006, Methanex recorded net income of US$115.2 million (diluted net income per share of US$1.02) and Adjusted EBITDA¹ of US$166.5 million. This compares with net income of US$48.6 million (diluted net income per share of US$0.42) and Adjusted EBITDA¹ of US$128.1 million for the fourth quarter of 2005.

Before recording an adjustment to increase earnings and reduce future income taxes related to a change in Trinidad tax legislation, Methanex recorded income before unusual items (after-tax)¹ for the first quarter of 2006 of US$89.4 million (diluted income before unusual items (after-tax) per share¹ of US$0.79). This compares with income before unusual items (after-tax)¹ of US$60.6 million (diluted income before unusual items (after-tax) per share¹ of US$0.52) for the fourth quarter of 2005.

Bruce Aitken, President and CEO of Methanex commented, “Our large scale, low cost plants operated well in an environment of strong methanol prices in the first quarter of 2006 and this resulted in an outstanding quarter of earnings for our Company. Continued strong demand and industry unplanned outages caused supply to remain very tight and pushed our average posted methanol price up by US$34 per tonne since the fourth quarter of 2005. Our average realized price for the first quarter of 2006 was US$283 per tonne compared with US$256 per tonne for the previous quarter.”

Mr. Aitken added, “As we enter the second quarter of 2006, in spite of the decline in demand for methanol for MTBE in the United States, global inventories remain low, demand continues to be strong, several planned maintenance outages have been announced and further plant closures have also been announced. In addition, we do not expect production from any new world scale plant to affect the market until early 2007. As a result of these and other factors, we expect the methanol markets to remain balanced. Our Methanex European posted contract price has been set for the second quarter at 285 Euros per tonne (US$348 per tonne), representing an increase of approximately US$28 per tonne over the first quarter. Our posted contract prices for May for the US and Asia are slightly lower than April and across the various global markets contract reference prices range from US$310 to $348 per tonne (US$0.93 to $1.05 per gallon) before discounts.”

Mr. Aitken concluded, “Our cash generation was very strong this quarter. With US$93 million cash on hand at the end of the first quarter, a strong balance sheet and a US$250 million undrawn credit facility, we have the financial capacity to complete our capital maintenance spending program, pursue new opportunities to enhance our leadership position in the methanol industry and continue to deliver on our commitment to return excess cash to shareholders.”

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-continued-

A conference call is scheduled for Thursday, April 27, 2006 at 11:00 am EDT (8:00 am PDT) to review these first 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 75577. A playback version of the conference call will be available for seven days at (877) 653-0545. The reservation number for the playback version is 302056. 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 and marketing of methanol. Methanex shares are listed for trading on the Toronto Stock Exchange in Canada under the trading symbol “MX” and on the Nasdaq National Market in the United States under the trading symbol “MEOH.”

Information contained in this press release and the attached First Quarter 2006 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, actions of competitors and suppliers, world-wide economic conditions and other risks described in our 2005 Management’s Discussion & Analysis and the attached First Quarter 2006 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 2005 Management’s Discussion & Analysis and the attached First Quarter 2006 Management’s Discussion and Analysis.

- end -

For further information, contact:

Wendy Bach
Director, Investor Relations
Tel: 604.661.2600

Interim Report

For the three months ended March 31, 2006

At April 27, 2006 the Company had 110,029,853 common shares issued and outstanding and stock options exercisable for 876,064 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 National Market under the symbol MEOH.

Transfer Agents & Registrars

CIBC Mellon Trust Company
320 Bay Street
Toronto, Ontario, Canada M5H 4A6
Toll free in North America:
1-800-387-0825

Investor Information

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

Contact Information

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

E-mail: invest@methanex.com
Methanex Toll-Free: 1-800-661-8851

First Quarter Management’s Discussion and Analysis
Except where otherwise noted, all currency amounts are stated in United States dollars.

This first quarter 2006 Management’s Discussion and Analysis should be read in conjunction with the 2005 Annual Consolidated Financial Statements and the Management’s Discussion and Analysis included in the Methanex 2005 Annual Report. The Methanex 2005 Annual Report and additional information relating to Methanex is available on SEDAR at www.sedar.com and EDGAR at www.sec.gov.

		Three Months Ended
		Mar 31				Dec 31				Mar 31
($ millions, except where noted)		2006				2005				2005
Sales volumes (thousands of tonnes) Company produced Chile and Trinidad			1,254				1,350				1,127
Kitimat and New Zealand			67				154				248
			1,321				1,504				1,375
Purchased methanol			297				285				296
Commission sales1			141				158				145
			1,759				1,947				1,816
Average realized price ($  per tonne)2			283				256				262
Methanex average non-discounted posted price ($  per tonne)3			335				301				310
Operating income			142.9				89.7				114.7
Net income			115.2				48.6				76.0
Income before unusual items (after-tax)4			89.4				60.6				76.0
Cash flows from operating activities5			115.4				82.6				115.1
Adjusted EBITDA6			166.5				128.1				134.7
Basic net income per common share			1.02				0.42				0.63
Diluted net income per common share			1.02				0.42				0.63
Diluted income before unusual items (after-tax) per share4			0.79				0.52				0.63
Common share information (millions of shares):
Weighted average number of common shares outstanding			112.4				115.3				120.0
Diluted weighted average number of common shares outstanding			112.9				115.7				121.3
Number of common shares outstanding, end of period			110.6				113.6				119.5

METHANEX CORPORATION 2006 FIRST QUARTER REPORT
MANAGEMENT’S DISCUSSION AND ANALYSIS		PAGE 1

For the first quarter of 2006 we recorded Adjusted EBITDA of $166.5 million and net income of $115.2 million (diluted net income per share of $1.02). This compares with Adjusted EBITDA of $128.1 million and net income of $48.6 million (diluted net income per share of $0.42) for the fourth quarter of 2005 and Adjusted EBITDA of $134.7 million and net income of $76.0 million (diluted net income per share of $0.63) for the first quarter of 2005.

For the first quarter of 2006, we recorded income before unusual items (after-tax) of $89.4 million (diluted income before unusual items (after-tax) per share of $0.79) compared with income before unusual items (after-tax) of $60.6 million for the fourth quarter of 2005 and $76.0 million for the first quarter of 2005. A reconciliation from net income to income before unusual items (after-tax) is as follows:

		Three Months Ended
		March 31				Dec 31				March  31
($ millions)		2006				2005				2005
Net income		$	115.2			$	48.6			$	76.0
Add (deduct) unusual items:
Future income tax adjustments related to change in legislation			(25.8	)			—				—
Kitimat closure costs (before and after-tax)			—				12.0				—
Income before unusual items (after-tax)		$	89.4			$	60.6			$	76.0

During 2005, the Government of Trinidad and Tobago introduced new tax legislation retroactive to January 1, 2004. As a result, 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 2006 amendment to this legislation, during the first quarter of 2006 we recorded adjustments to reduce future income tax expense by a total of $25.8 million. Refer to Income Taxes on page 5 of this Management’s Discussion and Analysis.

On November 1, 2005 our Kitimat methanol and ammonia facilities were permanently closed. The total closure costs were $41.1 million (before and after-tax). For accounting purposes, $29.1 million of the total cost was recognized in the third quarter of 2005 and the remaining $12.0 million was recognized in the fourth quarter of 2005.

Earnings Analysis

A core element of our corporate strategy is to strengthen our position as a low cost producer. Over the last several years we have shifted our production from higher cost plants to new low cost plants. Our low cost production hubs in Chile and Trinidad have an annual production capacity of 5.8 million tonnes and represent over 90% of our current annual production capacity. These facilities are underpinned by long-term low cost take-or-pay natural gas purchase agreements with pricing terms that vary with methanol prices. We believe this pricing relationship enables these facilities to be competitive throughout the methanol price cycle and, accordingly, changes in the average realized price, sales volume and total cash costs for methanol produced at these facilities are the key drivers of changes in our Adjusted EBITDA.

Over the last few years we have also been shutting down high cost production. Our facilities in Kitimat and New Zealand are exposed to market prices for natural gas feedstock and as a result incur higher production costs. We permanently closed our Kitimat facility on November 1, 2005 and sold the remaining inventory from this facility during the first quarter of 2006. The New Zealand facility has been positioned as a flexible production asset with future operations dependant on securing economically priced natural gas.

When analyzing our Adjusted EBITDA, we provide separate discussion of the changes in Adjusted EBITDA related to our core Chile and Trinidad production hubs and the changes in Adjusted EBITDA related to our Kitimat and New Zealand facilities. For a further discussion of the definitions and calculations used in our Adjusted EBITDA variance analysis, refer to How We Analyze Our Business provided at the end of this Management’s Discussion and Analysis.

METHANEX CORPORATION 2006 FIRST QUARTER REPORT
MANAGEMENT’S DISCUSSION AND ANALYSIS		PAGE 2

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

		Q1 2006				Q1 2006
		compared with				compared with
($ millions)		Q4 2005				Q1 2005
Increase (decrease) in Adjusted EBITDA related to changes in:
Average realized price		$	34			$	26
Total cash costs			11				(14	)
Chile and Trinidad sales volumes			(15	)			19
Margin on the sale of purchased methanol			(5	)			3
			25				34
Margin earned from Kitimat and New Zealand facilities			13				(2	)
		$	38			$	32

Average realized price

We entered 2006 in an environment of very tight supply/demand fundamentals as a result of strong demand and the shutdown of high cost production that occurred in the fourth quarter of 2005. Our average realized price for the first quarter of 2006 increased to $283 per tonne from $256 per tonne for the fourth quarter of 2005 and $262 per tonne for the first quarter of 2005. The higher average realized price increased our Adjusted EBITDA by $34 million compared to the fourth quarter of 2005 and $26 million compared to the first quarter of 2005.

The methanol industry is highly competitive and prices are affected by supply/demand fundamentals. We publish non-discounted reference prices for each major methanol market and offer discounts to customers based on various factors. Our average non-discounted posted price for the first quarter of 2006 was $335 per tonne compared with $301 per tonne for the fourth quarter of 2005 and $310 per tonne for the first quarter of 2005. Our average realized price for the first quarter of 2006 was approximately 16% lower than our average non-discounted posted price compared with approximately 15% lower for the fourth quarter of 2005 and 15% lower for the first quarter of 2005.

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. We expect the discount from our non-discounted published reference prices will narrow during periods of lower methanol pricing. We believe it is important to maintain financial flexibility throughout the methanol price cycle and these strategic contracts are a part of our balanced approach to managing cash flow and liquidity.

Total cash costs

Maintaining a low cost structure provides a competitive advantage in a commodity industry and is a key element of our strategy. Our low cost production facilities in Chile and Trinidad are underpinned by long-term low cost take-or-pay natural gas purchase contracts with pricing terms that are linked to methanol prices above a pre-determined methanol price. We believe this enables these facilities to be competitive throughout the methanol price cycle.

Total cash costs for the first quarter of 2006 were lower than in the fourth quarter of 2005 by $11 million. The decrease in total cash costs was primarily due to lower maintenance costs for our Chile and Trinidad facilities, lower supply chain costs and lower selling, general and administrative expenses during the first quarter of 2006 compared with the fourth quarter of 2005. These lower costs were partially offset by higher natural gas costs at our Chile and Trinidad facilities as a result of higher methanol prices during the first quarter of 2006 compared with the fourth quarter of 2005.

Total cash costs for the first quarter of 2006 were higher than in the first quarter of 2005 by $14 million. The increase in cash costs primarily relates to the impact of higher methanol prices on natural gas costs at our Chile and Trinidad facilities and to higher ocean shipping costs in 2006.

METHANEX CORPORATION 2006 FIRST QUARTER REPORT
MANAGEMENT’S DISCUSSION AND ANALYSIS		PAGE 3

Chile and Trinidad sales volumes

Sales volumes of methanol produced at our Chile and Trinidad production hubs for the first quarter of 2006 were lower by 96,000 tonnes compared with the fourth quarter of 2005 and this decreased Adjusted EBITDA by $15 million. The sales volumes were lower in the first quarter of 2006 primarily due to the timing of customer deliveries and a planned inventory rebuild.

Sales volumes of methanol produced at our Chile and Trinidad production hubs for the first quarter of 2006 were higher by 127,000 tonnes compared with the first quarter of 2005 and this increased Adjusted EBITDA by $19 million. The increase in sales volumes of methanol produced at these facilities is primarily a result of increased production capacity from our fourth plant in Chile (Chile IV) which commenced operations in June 2005.

Margin on the sale of purchased methanol

We purchase additional methanol produced by others through long-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 first quarter of 2006, our cash margin was nil on the resale of 0.3 million tonnes of purchased methanol compared with a positive cash margin of $5 million on the resale of 0.3 million tonnes for the fourth quarter of 2005 and a negative cash margin of $3 million on the resale of 0.3 million tonnes for the first quarter of 2005.

Margin earned from Kitimat and New Zealand facilities

To eliminate our exposure to high cost natural gas feedstock at our Kitimat and New Zealand facilites, we permanently closed our Kitimat plant and temporarily idled our Waitara Valley plant in New Zealand during 2005. In early January, we restarted the Waitara Valley plant and have sufficient contracted natural gas to produce approximately 230,000 tonnes during 2006 of which approximately 104,000 tonnes were produced in the first quarter of 2006.

Our cash margin on the sale of Kitimat and New Zealand inventory was positive $1 million for the first quarter of 2006 compared with a negative cash margin of $12 million for the fourth quarter of 2005 and a positive cash margin of $3 million for the first quarter of 2005. The increase in cash margin for the first quarter 2006 compared with the fourth quarter of 2005 primarily relates to a lower sales volume of Kitimat inventory and the increase in our average realized price during the first quarter of 2006. The decrease in cash margin in the first quarter of 2006 compared with the first quarter of 2005 primarily relates to lower sales volume of New Zealand inventory during the first quarter of 2006.

Depreciation and Amortization

Depreciation and amortization was $24 million for the first quarter of 2006 compared with $20 million for the first quarter of 2005. The increase in depreciation and amortization for the first quarter of 2006 compared with the same period in 2005 is primarily due to the depreciation of the Chile IV methanol facility which commenced operations during the second quarter of 2005.

METHANEX CORPORATION 2006 FIRST QUARTER REPORT
MANAGEMENT’S DISCUSSION AND ANALYSIS		PAGE 4

Interest Expense & Interest and Other Income

		Three Months Ended
		Mar 31				Mar 31
($ millions)		2006				2005
Interest expense before capitalized interest		$	11			$	13
Less capitalized interest:
Chile IV			—				(4	)
Interest expense		$	11			$	9
Interest and other income		$	3			$	1

Interest incurred during construction is capitalized to the cost of the asset until the asset is substantively complete and ready for productive use. The Chile IV methanol facility commenced operations during the second quarter of 2005.

The change in interest and other income for the first quarter of 2006 compared with the first quarter of 2005 relates primarily to the impact on earnings of changes in foreign exchange rates.

Income Taxes

Excluding the unusual items relating to the Kitimat closure costs and the Trinidad tax adjustments, the tax rate for the first quarter of 2006 was 34% compared with 35% for the fourth quarter of 2005. The statutory tax rate in Chile and Trinidad, where we earn substantially all of our pre-tax earnings, is 35%. In Chile we accrue for income taxes at the statutory income tax rate of 35%. This tax 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 current taxes are higher in the first quarter of 2006 compared with the first quarter of 2005 primarily due to the payment of second category tax in Chile in the first quarter of 2006. The second category tax had previously been recorded as future income tax expense.

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 changes 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 and an additional adjustment to recognize the benefit of tax deductions that were reinstated as a result of the change in the implementation date.

Production Summary

		Q1 2006								Q4 2005				Q1 2005
(thousands of tonnes)		Capacity				Production				Production			Production
Chile and Trinidad:
Chile I, II, III and IV1			947				882				916				727
Atlas (63.1% interest)			265				253				251				202
Titan			210				215				195				235
			1,422				1,350				1,362				1,164
Other:
New Zealand2			131				104				—				120
Kitimat3			—				—				34				119
			131				104				34				239
			1,553				1,454				1,396				1,403

METHANEX CORPORATION 2006 FIRST QUARTER REPORT
MANAGEMENT’S DISCUSSION AND ANALYSIS		PAGE 5

Chile and Trinidad

During the first quarter of 2006, our Titan and Atlas facilities produced 468,000 tonnes of methanol, or 99% of their capacity.

Our methanol production facilities in Chile produced 882,000 tonnes during the first quarter of 2006 compared with an operating capacity of 947,000 tonnes. Methanol production at these facilities was lower than capacity primarily due to repair and maintenance of delivery infrastructure by our natural gas suppliers during the first quarter of 2006. Excluding the impact of repair and maintenance activities by our natural gas suppliers, our facilities in Chile operated at 97% of their capacity during the first quarter of 2006.

Kitimat and New Zealand
We permanently closed our Kitimat facility on November 1, 2005 and we sold the remaining methanol produced from this facility during the first quarter of 2006.

The Waitara Valley facility in New Zealand is currently positioned as a flexible production asset. During the first quarter of 2006, we restarted this facility and produced approximately 104,000 tonnes. We have sufficient contracted gas to produce approximately 230,000 tonnes during 2006. We continue to seek other supplies of natural gas to supplement this production and to extend the life of our New Zealand operations; however there can be no assurance that we will be able to secure additional gas on commercially acceptable terms.

Supply/Demand Fundamentals

Methanol industry fundamentals continue to be favourable and we are operating in a strong pricing environment underpinned by high global energy prices. To the end of 2007, the only world scale increment of new industry capacity outside of China is expected to be the 1.7 million tonne per year NPC facility in Iran in early 2007. Over this period, we also expect expansions to existing capacity of approximately 0.7 million tonnes. We also expect that during 2006 and 2007 close to 3.0 million tonnes of high cost capacity will shut down as a result of high global energy prices.

In China, there is a new 0.6 million tonne natural gas based methanol plant under development on Hainan Island that is expected to start up during the third quarter of 2006. Due to its location on the coast, this plant will likely supply methanol markets in coastal provinces in East and South China. In addition, there are a number of smaller-scale plants expected to be constructed in China during 2006. Demand for methanol in China continues to grow at very high levels such that we believe substantially all domestic methanol production will be consumed within the local market resulting in China continuing to require imports to satisfy demand.

During 2005, just over two million tonnes of methanol was used in the production of MTBE that was consumed in the United States. Also in 2005, the United States passed the Energy Policy Act which contains provisions to waive the federal oxygenate standard for gasoline effective May 2006 and does not provide MTBE producers and blenders with defective product liability protection. Many United States MTBE producers and blenders have recently stopped producing and blending MTBE for gasoline to be used in the United States and as of April 2006, MTBE has been substantially removed from gasoline in the United States. However, export markets for MTBE produced in the US are attractive and a number of US MTBE producers continue to produce to supply these markets. To date the net loss of methanol demand as a result of the changes occurring to US gasoline formulations has had only a minor impact on the global methanol market. As production of MTBE in the US declined during the first quarter of 2006 we observed more liquidity in the US spot methanol market and the growing gap between contract and spot prices led us to a decision to reduce contract prices in May by $0.04 per gallon to $1.03 per gallon or approximately $342 per tonne.

We continue to believe the impact of lower demand for methanol for MTBE consumed in the United States in 2006 will be more than offset by increases in demand for methanol for MTBE elsewhere in the world and demand growth related to other derivatives.

METHANEX CORPORATION 2006 FIRST QUARTER REPORT
MANAGEMENT’S DISCUSSION AND ANALYSIS		PAGE 6

The European quarterly contract price for the second quarter of 2006 increased to €285 (US$348 per tonne at the time of settlement compared with US$320 for the first quarter of 2006). The Methanex non-discounted posted price in Asia increased to $330 per tonne in April and will be decreased to $310 per tonne in May. The price decrease in May is intended to reduce the price gap between China and neighboring markets and was necessary to maintain the competitiveness of our customers in Asia.

Methanex Non Discounted Regional Posted Contract Prices¹

		May				Jan
US$ per tonne		2006				2006
United States		$	342			$	339
Europe2		$	348			$	319
Asia		$	310			$	320

Liquidity and Capital Resources

Cash flows from operating activities before changes in non-cash working capital in the first quarter of 2006 were $115 million compared with $115 million for the same period in 2005. During the first quarter of 2006, our non-cash working capital increased by $95 million. Approximately $37 million of the increase was due to a planned inventory rebuild and the impact on accounts receivable related to the increase in our average realized price. An additional $31 million was due to the payment of the Kitimat closure costs that were accrued in 2005. The remaining $27 million relates to a decrease in accounts payable, primarily due to the timing of cash payments of our trade payables.

On January 25, 2006, the Board of Directors approved an increase in the current normal course issuer bid, raising the maximum allowable repurchase from 5.9 million common shares to up to 11.8 million common shares. The current bid expires May 16, 2006. During the first quarter of 2006, we repurchased 3.2 million common shares at an average price of US$20.35 per share, totaling $65 million. At March 31, 2006, we have repurchased a total of 7.9 million common shares under the current bid at an average price of US$17.86 per share, totaling $141 million.

During the first quarter of 2006, we paid a quarterly dividend of US$0.11 per share, or $12 million, compared with $0.08 per share, or $10 million, for the first quarter of 2005.

We have strong financial capacity and flexibility. Our cash balance at March 31, 2006 was $93 million and we have a strong balance sheet and an undrawn $250 million credit facility. The planned capital maintenance expenditure program directed towards major maintenance, turnarounds and catalyst changes is currently estimated to total approximately $90 million for the period to the end of 2008.

We have the financial capacity and flexibility to complete our capital maintenance spending program, pursue new opportunities to enhance our leadership position in the methanol industry and continue to deliver on our commitment to return excess cash to shareholders.

The credit ratings for our unsecured notes at March 31, 2006 were as follows:

Standard & Poor’s Rating Services		BBB-				(negative)
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.

METHANEX CORPORATION 2006 FIRST QUARTER REPORT
MANAGEMENT’S DISCUSSION AND ANALYSIS		PAGE 7

Short-Term Outlook

We expect industry fundamentals to continue to be favourable. Methanol prices strengthened in all regions in the first quarter of 2006 and increased further in Europe for the second quarter. As the year progresses, we expect some volatility of pricing but, barring a major unexpected event such as a recession, we continue to believe that a strong pricing environment will prevail for the remainder of the year.

The methanol price will ultimately depend on industry operating rates, 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 the sound basis for Methanex continuing to be the leader in the methanol industry.

April 27, 2006

METHANEX CORPORATION 2006 FIRST QUARTER REPORT
MANAGEMENT’S DISCUSSION AND ANALYSIS		PAGE 8

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. 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.

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 and cash flows related to interest expense, interest and other income, other cash payments related to operating activities, stock-based compensation and other non-cash items, income taxes and unusual items, including the Kitimat closure costs.

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

		Three Months Ended
		Mar 31				Dec 31				Mar 31
($ thousands)		2006				2005				2005
Cash flows from operating activities		$	20,074			$	110,066			$	92,927
Add (deduct):
Changes in non-cash working capital			95,317				(27,483	)			22,214
Other cash payments			4,276				13,517				894
Stock-based compensation			(6,019	)			(6,749	)			(4,566	)
Other non-cash items			(1,389	)			2,560				67
Kitimat closure costs			—				12,001				—
Interest expense			10,958				10,490				9,061
Interest and other income			(2,535	)			(1,973	)			(1,262	)
Income taxes — current			45,864				15,704				15,365
Adjusted EBITDA		$	166,546			$	128,133			$	134,700

METHANEX CORPORATION 2006 FIRST QUARTER REPORT
MANAGEMENT’S DISCUSSION AND ANALYSIS		PAGE 9

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
		Mar 31				Dec 31				Mar 31
($ thousands, except number of shares and per share amounts)		2006				2005				2005
Net income:		$	115,177			$	48,574			$	76,032
Add (deduct) unusual items:
Kitimat closure costs			—				12,001				—
Future income taxes related to change in tax legislation			(25,753	)			—				—
Income before unusual items (after-tax)		$	89,424			$	60,575			$	76,032
Diluted weighted average number of common shares outstanding			112,906,382				115,691,879				121,289,236
Diluted income before unusual items (after-tax) per share		$	0.79			$	0.52			$	0.63

Quarterly Financial Data (unaudited)

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

		Three Months Ended
		Mar 31				Dec 31				Sep 30				Jun 30
($ thousands, except per share amounts)		2006				2005				2005				2005
Revenue		$	459,590			$	459,615			$	349,291			$	410,914
Net income (loss)			115,177				48,574				(21,789	)			62,935
Basic net income (loss) per common share			1.02				0.42				(0.19	)			0.53
Diluted net income (loss) per common share			1.02				0.42				(0.19	)			0.53

		Three Months Ended
		Mar 31				Dec 31				Sep 30				Jun 30
($ thousands, except per share amounts)		2005				2004				2004				2004
Revenue		$	438,300			$	485,408			$	428,840			$	412,283
Net income			76,032				66,061				71,178				52,375
Basic net income per common share			0.63				0.55				0.59				0.43
Diluted net income per common share			0.63				0.54				0.58				0.42

Our quarterly revenues are not materially impacted by seasonality. However, during the period May to August (the winter season in the southern hemisphere) in each of 2004 and 2005, our Chilean production facilities have experienced production losses of approximately 50,000 tonnes and 100,000 tonnes, respectively, as a result of curtailments of natural gas resulting from redirection orders from the Argentinean government. There can be no assurance that natural gas supply to our facilities will not be impacted in the future. See our 2005 Annual Report for further details.

METHANEX CORPORATION 2006 FIRST QUARTER REPORT
MANAGEMENT’S DISCUSSION AND ANALYSIS		PAGE 10

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 on page 9 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

The key drivers of changes in our Adjusted EBITDA for produced methanol are average realized price, sales volume and cash costs. We provide separate discussion of the changes in Adjusted EBITDA related to our core Chile and Trinidad production hubs and the changes in Adjusted EBITDA related to our Kitimat and New Zealand facilities.

Our low cost production hubs in Chile and Trinidad are underpinned by long-term take-or-pay natural gas purchase agreements and the operating results for these facilities represent a substantial portion of our Adjusted EBITDA. Accordingly, in our analysis of Adjusted EBITDA for our facilities in Chile and Trinidad we separately discuss the impact of changes in average realized price, sales volume and cash costs.

Our facilities in Kitimat and New Zealand incur higher production costs and their operating results represent a smaller proportion of our Adjusted EBITDA. To eliminate our exposure to high cost North American natural gas feedstock, we permanently closed our Kitimat production facility on November 1, 2005. Our 530,000 tonne per year Waitara Valley facility in New Zealand has been positioned as a flexible production asset. The impact of changes in average realized price, sales volume and cash costs on the Adjusted EBITDA for our Kitimat and New Zealand facilities has been combined and presented as the change in cash margin.

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 and Trinidad 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.

Purchased Methanol

The analysis of purchased methanol and its impact on our Adjusted EBITDA is discussed on a net margin basis, because 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.

METHANEX CORPORATION 2006 FIRST QUARTER REPORT
MANAGEMENT’S DISCUSSION AND ANALYSIS		PAGE 11

Forward-Looking Statements

Information contained in this document contains forward-looking statements. Certain material factors or assumptions were applied in drawing the conclusions or making the forecasts or projections which 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, actions of competitors, world-wide economic conditions and other risks described in our 2005 Management’s Discussion & Analysis which is available on SEDAR at www.sedar.com and EDGAR at www.sec.gov.

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.

METHANEX CORPORATION 2006 FIRST QUARTER REPORT
MANAGEMENT’S DISCUSSION AND ANALYSIS		PAGE 12

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

		THREE MONTHS ENDED
		Mar 31				Mar 31
		2006				2005
Revenue		$	459,590			$	438,300
Cost of sales and operating expenses			293,044				303,600
Depreciation and amortization			23,623				19,953
Operating income before undernoted items			142,923				114,747
Interest expense (note 9)			(10,958	)			(9,061	)
Interest and other income			2,535				1,262
Income before income taxes			134,500				106,948
Income taxes:
Current			(45,864	)			(15,365	)
Future			788				(15,551	)
Future income taxes related to change in tax legislation (note 5):
Reversal of prior year adjustment			16,879				—
Recognition of tax assets			8,874				—
			(19,323	)			(30,916	)
Net income		$	115,177			$	76,032
Net income per common share:
Basic		$	1.02			$	0.63
Diluted		$	1.02			$	0.63
Weighted average number of common shares outstanding:
Basic			112,389,364				119,963,717
Diluted			112,906,382				121,289,236
Number of common shares outstanding at period end			110,640,628				119,461,292

See accompanying notes to consolidated financial statements.

METHANEX CORPORATION 2006 FIRST QUARTER REPORT
MANAGEMENT’S DISCUSSION AND ANALYSIS		PAGE 13

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

		Mar 31				Dec 31
		2006				2005
ASSETS
Current assets:
Cash and cash equivalents		$	92,972			$	158,755
Receivables			309,193				296,522
Inventories			165,459				140,104
Prepaid expenses			12,362				13,555
			579,986				608,936
Property, plant and equipment (note 2)			1,381,203				1,396,126
Other assets			89,103				91,970
		$	2,050,292			$	2,097,032
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities		$	165,411			$	226,412
Current maturities on long-term debt (note 4)			14,032				14,032
Current maturities on other long-term liabilities			16,710				9,663
			196,153				250,107
Long-term debt (note 4)			486,916				486,916
Other long-term liabilities			72,694				79,421
Future income tax liabilities (note 5)			304,533				331,074
Shareholders’ equity:
Capital stock			490,839				502,879
Contributed surplus			4,691				4,143
Retained earnings			494,466				442,492
			989,996				949,514
		$	2,050,292			$	2,097,032

     See accompanying notes to consolidated financial statements.

METHANEX CORPORATION 2006 FIRST QUARTER REPORT CONSOLIDATED FINANCIAL STATEMENTS		PAGE 14

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

		Number of																Total
		Common				Capital				Contributed				Retained				Shareholders'
		Shares				Stock				Surplus				Earnings				Equity
Balance, December 31, 2004			120,022,417			$	523,255			$	3,454			$	422,535			$	949,244
Net income			—				—				—				165,752				165,752
Compensation cost recorded for stock options			—				—				2,849				—				2,849
Proceeds on issue of shares on exercise of stock options			1,338,475				10,621				—				—				10,621
Reclassification of grant date fair value on exercise of stock options			—				2,160				(2,160	)			—				—
Payments for shares repurchased			(7,715,600	)			(33,157	)			—				(97,806	)			(130,963	)
Dividend payments			—				—				—				(47,989	)			(47,989	)
Balance, December 31, 2005			113,645,292				502,879				4,143				442,492				949,514
Net income			—				—				—				115,177				115,177
Compensation cost recorded for stock options			—				—				762				—				762
Proceeds on issue of shares on exercise of stock options			194,736				1,889				—				—				1,889
Reclassification of grant date fair value on exercise of stock options			—				214				(214	)			—				—
Payments for shares repurchased			(3,199,600	)			(14,143	)			—				(50,964	)			(65,107	)
Dividend payments			—				—				—				(12,239	)			(12,239	)
Balance, March 31, 2006			110,640,428			$	490,839			$	4,691			$	494,466			$	989,996

     See accompanying notes to consolidated financial statements.

METHANEX CORPORATION 2006 FIRST QUARTER REPORT CONSOLIDATED FINANCIAL STATEMENTS		PAGE 15

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

		THREE MONTHS ENDED
		Mar 31				Mar 31
		2006				2005
CASH FLOWS FROM OPERATING ACTIVITIES
Net income		$	115,177			$	76,032
Add (deduct):
Depreciation and amortization			23,623				19,953
Future income taxes			(26,541	)			15,551
Other cash payments			(4,276	)			(894	)
Stock-based compensation			6,019				4,566
Other non-cash items			1,389				(67	)
Cash flows from operating activities before undernoted			115,391				115,141
Changes in non-cash working capital (note 8)			(95,317	)			(22,214	)
			20,074				92,927
CASH FLOWS FROM FINANCING ACTIVITIES
Payments for shares repurchased			(65,107	)			(24,500	)
Dividend payments			(12,239	)			(9,599	)
Proceeds on issue of shares on exercise of stock options			1,889				6,269
Repayment of other long-term liabilities			(1,210	)			(38	)
			(76,667	)			(27,868	)
CASH FLOWS FROM INVESTING ACTIVITIES
Property, plant and equipment			(7,470	)			(8,478	)
Plant and equipment construction costs			—				(12,192	)
Changes in non-cash working capital			(1,657	)			3,271
Other assets			(63	)			(295	)
			(9,190	)			(17,694	)
Increase (decrease) in cash and cash equivalents			(65,783	)			47,365
Cash and cash equivalents, beginning of period			158,755				210,049
Cash and cash equivalents, end of period		$	92,972			$	257,414
SUPPLEMENTARY CASH FLOW INFORMATION
Interest paid, net of capitalized interest		$	12,997			$	20,112
Income taxes paid, net of amounts refunded		$	35,867			$	6,739

     See accompanying notes to consolidated financial statements.

METHANEX CORPORATION 2006 FIRST QUARTER REPORT CONSOLIDATED FINANCIAL STATEMENTS		PAGE 16

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. 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 12. 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 2005 Annual Report.

2.

Property, plant and equipment:

						ACCUMULATED
		COST				DEPRECIATION				NET BOOK VALUE
March 31, 2006
Plant and equipment		$	2,715,328			$	1,404,221			$	1,311,107
Other			106,638				36,542				70,096
		$	2,821,966			$	1,440,763			$	1,381,203
December 31, 2005
Plant and equipment		$	2,711,775			$	1,383,105			$	1,328,670
Other			101,718				34,262				67,456
		$	2,813,493			$	1,417,367			$	1,396,126

3.		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:

		MAR 31, 2006				DEC 31, 2005
Consolidated Balance Sheets:
Cash and cash equivalents		$	28,963			$	24,032
Other current assets			27,282				32,937
Property, plant and equipment			278,337				281,765
Other assets			20,349				20,409
Accounts payable and accrued liabilities			21,169				30,340
Future income tax liabilities			8,210				21,988
Long-term debt, including current maturities (note 4)			150,948				150,948

METHANEX CORPORATION 2006 FIRST QUARTER REPORT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS		PAGE 17

3.

Interest in Atlas joint venture (continued):

		THREE MONTHS ENDED
		MAR 31, 2006				MAR 31, 2005
Consolidated Statements of Income:
Revenue		$	48,451			$	50,965
Expenses			39,845				39,383
Income before income taxes			8,606				11,582
Future income taxes (note 5)			13,778				—
Net income		$	22,384			$	11,582

		THREE MONTHS ENDED
		MAR 31, 2006				MAR 31, 2005
Consolidated Statements of Cash Flows:
Cash inflows from operating activities		$	8,654			$	11,259
Cash outflows from investing activities			(77	)			(1,592	)

4.

Long-term debt:

		MAR 31, 2006				DEC 31, 2005
Unsecured notes
8.75% due August 15, 2012		$	200,000			$	200,000
6.00% due August 15, 2015			150,000				150,000
			350,000				350,000
Atlas limited recourse debt facilities			150,948				150,948
			500,948				500,948
Less current maturities			(14,032	)			(14,032	)
		$	486,916			$	486,916

		The limited recourse debt facilities of Atlas are described as limited recourse as they are secured only by the assets of the joint venture.
5.		Income and other taxes:
		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 changes 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 and an additional adjustment to recognize the benefit of tax deductions that were reinstated as a result of the change in the implementation date.

METHANEX CORPORATION 2006 FIRST QUARTER REPORT
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS		PAGE 18

6.		Net income per common share:
		A reconciliation of the weighted average number of common shares outstanding is as follows:

		THREE MONTHS ENDED
		MAR 31, 2006				MAR 31, 2005
Denominator for basic net income per common share			112,389,364				119,963,717
Effect of dilutive stock options			517,018				1,325,519
Denominator for diluted net income per common share			112,906,382				121,289,236

7.

Stock-based compensation:

a)

Stock options:

(i)

Incentive stock options:

Common shares reserved for outstanding incentive stock options at March 31, 2006:

		OPTIONS DENOMINATED IN CAD$								OPTIONS DENOMINATED IN US$
		NUMBER OF				WEIGHTED AVERAGE				NUMBER OF				WEIGHTED AVERAGE
		STOCK OPTIONS				EXERCISE PRICE				STOCK OPTIONS				EXERCISE PRICE
Outstanding at December 31, 2005			316,650			$	9.67				1,328,450			$	13.29
Granted			—				—				348,675				20.76
Exercised			(71,000	)			12.21				(123,736	)			9.36
Cancelled			(8,000	)			11.00				(3,250	)			12.23
Outstanding at March 31, 2006			237,650			$	8.87				1,550,139			$	15.28

Information regarding the incentive stock options outstanding at March 31, 2006 is as follows:

		OPTIONS OUTSTANDING												OPTIONS EXERCISABLE AT
		AT MARCH 31, 2006												MARCH 31, 2006
		WEIGHTED				NUMBER OF				WEIGHTED								WEIGHTED
		AVERAGE				STOCK				AVERAGE				NUMBER OF				AVERAGE
		REMAINING				OPTIONS				EXERCISE				STOCK OPTIONS				EXERCISE
RANGE OF EXERCISE PRICES		CONTRACTUAL LIFE				EXERCISABLE				PRICE				EXERCISABLE				PRICE
Options denominated in CAD $
$3.29 to 13.65			3.7				237,650			$	8.87				237,650			$	8.87
Options denominated in U.S. $ $6.45 to 10.01			6.7				486,189				8.46				483,689				8.46
11.56 to 20.76			6.4				1,063,950				18.40				244,850				16.98
			6.5				1,550,139			$	15.28				728,539			$	11.32

On March 3, 2006, the Company granted 1,629,600 incentive stock options with an exercise price of US$20.76 per share. At the date of grant, the Company had 348,675 common shares reserved for incentive stock options. The remaining 1,280,925 incentive stock options are not included in the table above because shareholder approval is required to increase the number of common shares reserved for incentive stock options. The compensation cost of the 1,280,925 incentive stock options has not been included in earnings for the three months ended March 31, 2006. If there had been sufficient common shares reserved for incentive stock options at the date of grant, the compensation expense recognized in earnings would have been approximately $0.3 million.

METHANEX CORPORATION 2006 FIRST QUARTER REPORT
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS		PAGE 19

7. Stock-based compensation (continued):

(ii)

Performance stock options:

As at March 31, 2006, there were 50,000 shares reserved for performance stock options with an exercise price of CAD $4.47. All outstanding performance stock options have vested and are exercisable.

(iii)

Compensation expense related to stock options:

Compensation expense related to stock options included in cost of sales and operating expenses is $0.8 million for the three month period ended March 31, 2006 (2005 — $0.5 million). The fair value of each stock option grant was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:

		2006				2005
Risk-free interest rate			5	%			4	%
Expected dividend yield			2	%			2	%
Expected life		5 years				5 years
Expected volatility			38	%			43	%
Expected forfeitures			5	%			5	%
Weighted average fair value of options granted ($U.S. per share)		$	7.01			$	6.51

b)		Deferred, restricted and performance share units:

Deferred, restricted and performance share units outstanding at March 31, 2006 are as follows:

		NUMBER OF				NUMBER OF				NUMER OF
		DEFERRED SHARE				RESTRICTED SHARE				PERFORMANCE SHARE
		UNITS				UNITS				UNITS
Outstanding at December 31, 2005			427,264				1,089,836				—
Granted			29,110				20,000				402,460
Granted in-lieu of dividends			2,430				5,994				2,173
Cancelled			—				(14,964	)			—
Outstanding at March 31, 2006			458,804				1,100,866				404,633

On March 3, 2006, the Company granted 402,460 performance share units. Performance share units are grants of notional common shares where the ultimate number of units that vest will be determined by the Company’s total shareholder return in relation to a predetermined target over the period to vesting. The number of units that will ultimately vest will be in the range of 50% to 120% of the original grant. The performance share units granted on March 3, 2006 will vest on December 31, 2008.

Compensation expense for deferred, restricted and performance share units is initially measured at fair value based on the market value of the Company’s common shares and is recognized over the related service period. Changes in fair value are recognized in earnings 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 March 31, 2006 was $42.7 million compared with the recorded liability of $22.9 million. The difference between the fair value and the recorded liability of $19.8 million will be recognized over the weighted average remaining service period of approximately 2.1 years. For the three month period ended March 31, 2006, compensation expense related to deferred, restricted and performance share units included in cost of sales and operating expenses was $5.3 million (2005 — $4.0 million). Included in compensation expense of $5.3 million for the three month period ended March 31, 2006 was $2.5 million (2005 — $1.9 million) related to the effect of the increase in the Company’s share price since the date of grant.

METHANEX CORPORATION 2006 FIRST QUARTER REPORT
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS		PAGE 20

8.		Changes in non-cash working capital related to operating activities:

		The decrease (increase) in non-cash working capital related to operating activities are as follows:

		THREE MONTHS ENDED
		MAR 31, 2006				MAR 31, 2005
Receivables		$	(12,671	)		$	33,590
Inventories			(24,495	)			(7,439	)
Prepaid expenses			1,193				5,293
Accounts payable and accrued liabilities			(59,344	)			(53,658	)
		$	(95,317	)		$	(22,214	)

Included in the decrease in accounts payable during the three months ended March 31, 2006 was approximately $31 million in payments related to the Kitimat closure costs that were accrued at December 31, 2005. The remaining accrual related to Kitimat closure costs at March 31, 2006 is approximately $5 million.

9. Interest expense:

		THREE MONTHS ENDED
		MAR 31, 2006				MAR 31, 2005
Interest expense before capitalized interest		$	10,958			$	13,267
Less: capitalized interest			—				(4,206	)
		$	10,958			$	9,061

10. Retirement plans:

Total net pension expense for the Company’s defined benefit and defined contribution pension plans during the three month period ended March 31, 2006 was $1.2 million (2005 — $1.0 million).

11. Derivative financial instruments:

As at March 31, 2006, the Company’s forward exchange contracts to purchase and sell foreign currency in exchange for U.S. dollars were as follows:

						AVERAGE EXCHANGE
		NOTIONAL AMOUNT				RATE				MATURITY
Forward exchange purchase contracts
New Zealand dollar		40 million				$	0.6023				2006
Forward exchange sales contracts
Euro		58 million				$	1.2067				2006
Chilean peso		28 billion				$	0.0019				2006
British Pound		6 million				$	1.7378				2006

As at March 31, 2006, the carrying value of the forward exchange purchase and sales contracts was $0.7 million which approximates the fair value of these contracts. The Company also has an interest rate swap contract recorded in other long-term liabilities with a carrying value of negative $1.7 million which approximates fair value.

12.

United States Generally Accepted Accounting Principles:

The Company follows generally accepted accounting principles in Canada (“Canadian GAAP”) which are different in some respects from those applicable in the United States and from practices prescribed by the United States Securities and Exchange Commission (“U.S. GAAP”). The significant differences between Canadian GAAP and U.S. GAAP with respect to the Company’s consolidated statements of income for the three months ended March 31, 2006 and 2005 are as follows:

		THREE MONTHS ENDED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME		MAR 31, 2006				MAR 31, 2005
Net income in accordance with Canadian GAAP		$	115,177			$	76,032
Add (deduct) adjustments for:
Depreciation and amortizationa			(478	)			(478	)
Stock-based compensationb			(145	)			(125	)
Forward exchange contractsc			—				(181	)
Income tax effect of above adjustments			168				219
Net income in accordance with U.S. GAAP		$	114,722			$	75,467
Per share information in accordance with U.S. GAAP:
Basic net income per share		$	1.02			$	0.63
Diluted net income per share		$	1.02			$	0.62

		THREE MONTHS ENDED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME		MAR 31, 2006				MAR 31, 2005
Net income in accordance with U.S. GAAP		$	114,722			$	75,467
Other comprehensive income:
Change in fair value of forward exchange contracts c			—				142
Comprehensive income in accordance with U.S. GAAP		$	114,722			$	75,609

METHANEX CORPORATION 2006 FIRST QUARTER REPORT
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS		PAGE 22

METHANEX CORPORATION 2006 FIRST QUARTER REPORT
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS		PAGE 23

METHANEX CORPORATION

QUARTERLY HISTORY (unaudited)

		Q1 2006				2005				Q4				Q3				Q2				Q1				2004				Q4				Q3				Q2				Q1
METHANOL SALES VOLUMES (thousands of tonnes)
Company produced			1,321				5,341				1,504				1,130				1,332				1,375				5,298				1,531				1,307				1,233				1,227
Purchased product			297				1,174				285				325				269				295				1,960				402				423				600				535
Commission sales1			141				537				158				75				158				146				169				128				41				—				—
			1,759				7,052				1,947				1,530				1,759				1,816				7,427				2,061				1,771				1,833				1,762
METHANOL PRODUCTION (thousands of tonnes)
Chile			882				3,029				916				684				702				727				2,692				690				640				666				696
Titan, Trinidad			215				715				195				184				135				201				740				154				176				220				190
Atlas, Trinidad (63.1%)			253				895				251				157				252				235				421				264				157				—				—
New Zealand			104				343				—				120				103				120				1,088				266				304				229				289
Kitimat			—				376				34				102				120				120				486				122				121				121				122
			1,454				5,358				1,396				1,247				1,312				1,403				5,427				1,496				1,398				1,236				1,297
METHANOL PRICE2
($/tonne)			283				254				256				240				256				262				237				251				248				225				223
($/gallon)			0.85				0.76				0.77				0.72				0.77				0.79				0.71				0.75				0.75				0.68				0.67
PER SHARE INFORMATION ($  per share)
Basic net income (loss)		$	1.02				1.41				0.42				(0.19	)			0.53				0.63				1.95				0.55				0.59				0.43				0.39
Diluted net income (loss)		$	1.02				1.40				0.42				(0.19	)			0.53				0.63				1.92				0.54				0.58				0.42				0.38