LSB Industries, Inc. (the “Company”) (NYSE: LXU) today announced that its chemical business’ El Dorado, Arkansas facility (“El Dorado Facility”) has signed an agreement with Weatherly Inc. for the licensing, engineering, and procurement of major manufacturing equipment for a new 1,100 ton per day 65% strength nitric acid plant. The new plant is expected to be operational by mid-2015. In addition, the Company is currently negotiating a contract for the purchase of a plant to work in conjunction with the new nitric acid plant that further concentrates a portion of the output up to 98.5% strength. The cost of the new nitric acid plant, the nitric acid concentrator plant and supporting facilities, including construction, is anticipated to total approximately $120 million, a significant portion of which is expected to be paid from insurance proceeds resulting from the May 15, 2012 event that damaged the El Dorado Facility. The amount of insurance proceeds is not known at this time. The Company also announced today the recommencement of operations at the El Dorado Facility’s sulfuric acid plant. This represents the final phase of repair and production recovery at the facility following the May 15, 2012 event, other than the construction of the aforementioned new nitric acid plant and acid concentrator plant. Jack E. Golsen, LSB’s Board Chairman and CEO stated, “All of the plants at the El Dorado Facility are up and running, other than the DSN plant, which is being replaced by the new Weatherly nitric acid plant. With the addition of a new nitric acid plant and concentrator, we believe that the El Dorado Facility will be able to regain its position as a leading merchant marketer of concentrated nitric acid in the United States.” LSB is a manufacturing and marketing company. LSB’s principal business activities consist of the manufacture and sale of chemical products for the agricultural, mining, and industrial markets and the manufacture and sale of commercial and residential climate control products, such as geothermal and water source heat pumps, hydronic fan coils, modular geothermal chillers, and large custom air handlers.