Report of Foreign Issuer (6-k)

March 31, 2017

Carrying Value

Fair Value

Long-term debt excluding deferred financing fees

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

FOR THE MONTH OF APRIL 2017

METHANEX CORPORATION

(Registrant’s name)

SUITE 1800, 200 BURRARD STREET, VANCOUVER, BC V6C 3M1 CANADA

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ¨ Form 40-F ý

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ¨ No ý

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82



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

For immediate release

METHANEX REPORTS HIGHER FIRST QUARTER 2017 EARNINGS AND INCREASES DIVIDEND BY 9%

April 26, 2017

For the first quarter of 2017 , Methanex reported net income attributable to Methanex shareholders of $132 million ( $1.46 per common share on a diluted basis) compared to net income of $24 million ( $0.28 per common share on a diluted basis) in the fourth quarter of 2016 . Adjusted EBITDA for the first quarter of 2017 was $267 million and Adjusted net income was $140 million ( $1.56 per common share). This compares with Adjusted EBITDA of $139 million and Adjusted net income of $41 million ( $0.46 per common share) for the fourth quarter of 2016 .

John Floren, President and CEO of Methanex commented, "In what is proving to be a volatile methanol pricing environment, our average realized methanol price increased $87 per tonne in the quarter to $365 per tonne, which compares to $278 per tonne achieved in the fourth quarter of 2016. We achieved record sales volume for the fourth consecutive quarter, with sales of 2.6 million tonnes. Production volume in the first quarter of 2017 remained unchanged from the record level set in the fourth quarter of 2016 of 1.9 million tonnes. The significantly higher methanol prices, combined with continued record production and sales volume, contributed to a $128 million increase in Adjusted EBITDA to $267 million for the quarter."

John Floren continued, "I am pleased to announce that our Board of Directors has approved a 9% increase in our quarterly dividend to $0.30 per share. During the quarter we also announced a 5% share repurchase program allowing the Company to purchase for cancellation up to 4,492,141 common shares. To date we have repurchased 1,580,000 shares since commencement of the bid on March 13, 2017 for approximately $73 million. The increased dividend and new share repurchase program illustrate the Company's commitment to return excess cash to shareholders."

Mr. Floren concluded, "We continue to be optimistic that our underutilized 1.7 million tonne Chile facilities represent a very low capital cost growth opportunity for Methanex due to the significant progress in developing natural gas reserves in the area. We have relatively low maintenance capital and financing requirements in the medium term. At current methanol prices we expect to generate significant free cash flow. With $315 million of cash on hand at the end of the first quarter, an undrawn credit facility, a robust balance sheet, and strong future cash generation capability, we believe we are well positioned to meet our financial commitments, pursue our near-term growth opportunities in Chile and deliver on our commitment to return excess cash to shareholders through dividends and share repurchases ."

FURTHER INFORMATION

The information set forth in this news release su mmari zes Methanex's key financial and operational data for the first quarter of 2017 . It is not a complete source of information for readers and is not in any way a substitute for reading the first quarter 2017 Management’s Discussion and Analysis ("MD&A") dated April 26, 2017 and the unaudited condensed consolidated interim financial statements for the period ended March 31, 2017 , both of which are available from the Investor Relations section of our website at www.methanex.com . The MD&A and the unaudited condensed consolidated interim financial statements for the period ended March 31, 2017 are also available on the Canadian Securities Administrators' SEDAR website at www.sedar.com and on the United States Securities and Exchange Commission's EDGAR website at www.sec.gov .

METHANEX CORPORATION 2017 FIRST QUARTER NEWS RELEASE PAGE 1

FINANCIAL AND OPERATIONAL DATA



	Three Months Ended
($ millions except per share amounts and where noted)	Mar 31 2017	Dec 31 2016	Mar 31 2016
Production (thousands of tonnes) (attributable to Methanex shareholders)	1,866	1,859	1,639
Sales volume (thousands of tonnes)
Methanex-produced methanol	1,756	1,750	1,529
Purchased methanol	512	526	422
Commission sales	304	245	168
Total sales volume ¹	2,572	2,521	2,119

Methanex average non-discounted posted price ($ per tonne) ²	437	312	272
Average realized price ($ per tonne) ³	365	278	230

Revenue	810	585	435
Adjusted revenue	832	635	450
Adjusted EBITDA	267	139	36
Cash flows from operating activities	221	72	70
Adjusted net income (loss)	140	41	(24	)
Net income (loss) (attributable to Methanex shareholders)	132	24	(23	)

Adjusted net income (loss) per common share	1.56	0.46	(0.27	)
Basic net income (loss) per common share	1.47	0.28	(0.26	)
Diluted net income (loss) per common share	1.46	0.28	(0.26	)

Common share information (millions of shares)
Weighted average number of common shares	90	90	90
Diluted weighted average number of common shares	90	90	90
Number of common shares outstanding, end of period	89	90	90

Methanex-produced methanol represents our equity share of volume produced at our facilities and excludes volume marketed on a commission basis related to the 36.9% of the Atlas facility and 50% of the Egypt facility that we do not own. Methanex-produced methanol includes any volume produced by Chile using natural gas supplied from Argentina under a tolling arrangement ("Tolling Volume"). There has been no Tolling Volume produced since the fourth quarter of 2015.


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


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

METHANEX CORPORATION 2017 FIRST QUARTER NEWS RELEASE PAGE 2

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



	Three Months Ended
($ millions except number of shares and per share amounts)	Mar 31 2017		Dec 31 2016		Mar 31 2016
Net income (loss) (attributable to Methanex shareholders)	$	132	$	24	$	(23	)
Mark-to-market impact of share-based compensation, net of tax	8		17		(1		)
Adjusted net income (loss)	$	140	$	41	$	(24	)
Diluted weighted average shares outstanding (millions)	90		90		90
Adjusted net income (loss) per common share	$	1.56	$	0.46	$	(0.27	)

▪

We recorded net income attributable to Methanex shareholders of $ 132 million during the first quarter of 2017 compared to net income of $ 24 million in the fourth quarter of 2016 . The increase in earnings is primarily due to an increase in our realized price during the first quarter which was partially offset by changes in the cost of methanol we purchase from others. Our average realized price increased to $365 per tonne for the first quarter of 2017 from $278 per tonne for the fourth quarter of 2016 .


▪	We recorded Adjusted EBITDA of $267 million for the first quarter of 2017 compared with $139 million for the fourth quarter of 2016 . Adjusted net income was $140 million for the first quarter of 2017 compared to Adjusted net income of $41 million for the fourth quarter of 2016 .

▪

Total sales volume for the first quarter of 2017 was a record for a fourth consecutive quarter achieving 2,572,000 tonnes compared with 2,521,000 tonnes for the fourth quarter of 2016. Sales of Methanex-produced methanol were 1,756,000 tonnes in the first quarter of 2017 compared with 1,750,000 tonnes in the fourth quarter of 2016 . Sales of Methanex-produced methanol were lower than production in the first quarter, which contributed to an increase in our produced product inventory by approximately 100,000 tonnes. Refer to the Production Highlights section of this document.


▪	Cash flows from operating activities in the first quarter of 2017 were $221 million compared with $72 million for the fourth quarter of 2016 , an increase of $149 million . We generated cash from operating activities before changes in non-cash working capital of $279 million during the quarter.


▪	Our planned capital expenditures directed towards maintenance, turnarounds and catalyst changes for operations, including our 63.1% share of Atlas and 50% of Egypt, is currently estimated to be approximately $65 million to the end of 2017.


▪	During the first quarter of 2017 we paid a $0.275 per common share dividend to shareholders for a total of $25 million .


▪	During the quarter, the Board of Directors has approved a new 5% normal course issuer bid which allows us to repurchase for cancellation up to approximately 4.5 million common shares. We repurchased 730,000 shares to March 31, 2017 for approximately $34 million. To date we have repurchased 1,580,000 shares since commencement of the bid on March 13, 2017 for approximately $73 million.


▪	We announced today that the Board of Directors has approved a 9% increase to our quarterly dividend to shareholders, from $0.275 per share per quarter to $0.30 per share per quarter.

METHANEX CORPORATION 2017 FIRST QUARTER NEWS RELEASE PAGE 3

PRODUCTION HIGHLIGHTS



	Q1 2017		Q4 2016	Q1 2016
(thousands of tonnes)	Operating Capacity ¹	Production	Production	Production
New Zealand ²	608	533	536	509
Geismar (USA)	500	493	526	483
Trinidad (Methanex interest) ³	500	396	455	313
Egypt (50% interest)	158	159	96	75
Medicine Hat (Canada)	150	118	92	159
Chile ⁴	220	167	154	100
	2,136	1,866	1,859	1,639

Operating capacity includes only those facilities which are currently capable of operating, but excludes any portion of an asset that is underutilized due to a lack of natural gas feedstock over a prolonged period of time. Our current annual operating capacity is 8.5 million tonnes, including 0.9 million tonnes related to our Chile operations. The operating capacity of our production facilities may be higher than original nameplate capacity as, over time, these figures have been adjusted to reflect ongoing operating efficiencies at these facilities. Actual production for a facility in any given year may be higher or lower than operating capacity due to a number of factors, including natural gas composition or the age of the facility's catalyst.


²	The operating capacity of New Zealand is made up of the two Motunui facilities and the Waitara Valley facility .


³	The operating capacity of Trinidad is made up of the Titan (100% interest) and Atlas (63.1% interest) facilities .


⁴	The production capacity of our Chile I and IV facilities is 1.7 million tonnes annually assuming access to natural gas feedstock.

Key production and operational highlights during the first quarter include:


▪	New Zealand production was 533,000 tonnes.


▪	Geismar production rates continue to be strong, with production of 493,000 tonnes.


▪	Trinidad production was 396,000 tonnes. We continue to experience gas curtailments in Trinidad with gas availability in the first quarter of 2017 remaining at levels consistent with the fourth quarter of 2016. We also had mechanical issues at the Trinidad facilities that resulted in some lost production in the quarter. These mechanical issues have been resolved and repairs are now complete.


▪	Egypt production was 159,000 tonnes (Methanex share). The plant has continued to run at high rates following the maintenance activities performed in the fourth quarter of 2016.


▪	Medicine Hat production was 118,000 tonnes. The plant was shut down for repairs during the first quarter and upon restart, operated at high rates for the remainder of the quarter.


▪	Chile production was 167,000 tonnes, produced using only natural gas supplies from Chile.

METHANEX CORPORATION 2017 FIRST QUARTER NEWS RELEASE PAGE 4

CONFERENCE CALL

A conference call is scheduled for April 27, 2017 at 12:00 noon ET (9:00 am PT) to review these first quarter results. To access the call, dial the conferencing operator ten minutes prior to the start of the call at (416) 340-8530, or toll free at (800) 769-8320. A simultaneous audio-only webcast of the conference call can be accessed from our website at www.methanex.com . A playback version of the conference call will be available until May 11, 2017 at (905) 694-9451, or toll free at (800) 408-3053. The passcode for the playback version is 5608437#. The webcast will be available on our website for two weeks following the call.

ABOUT METHANEX

Methanex is a Vancouver-based, publicly traded company and is the world’s largest producer and supplier of methanol to major international markets. Methanex shares are listed for trading on the Toronto Stock Exchange in Canada under the trading symbol "MX" and on the NASDAQ Global Market in the United States under the trading symbol "MEOH".

FORWARD-LOOKING INFORMATION WARNING

This first quarter 2017 press release contains forward-looking statements with respect to us and the chemical industry. By its nature, forward-looking information is subject to numerous risks and uncertainties, some of which are beyond the Company's control. Readers are cautioned that undue reliance should not be placed on forward-looking information as actual results may vary materially from the forward-looking information. Methanex does not undertake to update, correct or revise any forward-looking information as a result of any new information, future events or otherwise, except as may be required by applicable law. Refer to Forward-Looking Information Warning in the first quarter 2017 Management's Discussion and Analysis for more information which is available from the Investor Relations section of our website at www.methanex.com , the Canadian Securities Administrators' SEDAR website at www.sedar.com and on the United States Securities and Exchange Commission's EDGAR website at www.sec.gov .

NON-GAAP MEASURES

The Company has used the terms Adjusted EBITDA, Adjusted net income (loss), Adjusted net income (loss) per common share, Adjusted revenue, and operating income throughout this document. These items are non-GAAP measures that do not have any standardized meaning prescribed by GAAP. These measures represent the amounts that are attributable to Methanex Corporation shareholders and are calculated by excluding the mark-to-market impact of share-based compensation as a result of changes in our share price and the impact of certain items associated with specific identified events. Refer to Additional Information - Supplemental Non-GAAP measures on page 12 of the Company's MD&A for the three months ended March 31, 2017 for reconciliations to the most comparable GAAP measures. Unless otherwise indicated, the financial information presented in this release is prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").

-end-

For further information, contact:

Sandra Daycock

Director, Investor Relations

Methanex Corporation

604-661-2600

METHANEX CORPORATION 2017 FIRST QUARTER NEWS RELEASE PAGE 5



1		Share Information Methanex Corporation’s common shares are listed for trading on the Toronto Stock Exchange under the symbol MX and on the Nasdaq Global Market under the symbol MEOH. Transfer Agents & Registrars CST 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 website 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
	Management's Discussion and Analysis for the Three Months Ended March 31, 2017
At April 26, 2017 the Company had 88,297,958 common shares issued and outstanding and stock options exercisable for 2,006,622 additional common shares.

FIRST QUARTER MANAGEMENT’S DISCUSSION AND ANALYSIS ("MD&A")

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

FINANCIAL AND OPERATIONAL HIGHLIGHTS


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



	Three Months Ended
($ millions except number of shares and per share amounts)	Mar 31 2017		Dec 31 2016		Mar 31 2016
Net income (loss) (attributable to Methanex shareholders)	$	132	$	24	$	(23	)
Mark-to-market impact of share-based compensation, net of tax	8		17		(1		)
Adjusted net income (loss) ¹	$	140	$	41	$	(24	)
Diluted weighted average shares outstanding (millions)	90		90		90
Adjusted net income (loss) per common share ¹	$	1.56	$	0.46	$	(0.27	)

The Company has used the terms Adjusted EBITDA, Adjusted net income, Adjusted net income per common share, Adjusted revenue, and operating income throughout this document. These items are non-GAAP measures that do not have any standardized meaning prescribed by GAAP and therefore are unlikely to be comparable to similar measures presented by other companies. Refer to Additional Information - Supplemental Non-GAAP Measures on page 12 of the MD&A for reconciliations to the most comparable GAAP measures.

▪


▪	We recorded Adjusted EBITDA of $267 million for the first quarter of 2017 compared with $139 million for the fourth quarter of 2016 . Adjusted net income was $140 million for the first quarter of 2017 compared to Adjusted net income of $41 million for the fourth quarter of 2016 .


▪	Production for the first quarter of 2017 was 1,866,000 tonnes compared with 1,859,000 tonnes for the fourth quarter of 2016 . Refer to the Production Summary section on page 4 of the MD&A.

▪

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 1

MANAGEMENT’S DISCUSSION AND ANALYSIS


▪	During the first quarter of 2017 we paid a $0.275 per common share dividend to shareholders for a total of $25 million .


▪	During the quarter, the Board of Directors has approved a new 5% normal course issuer bid which allows us to repurchase for cancellation up to approximately 4.5 million common shares. We repurchased 730,000 shares to March 31, 2017 for approximately $34 million. To date we have repurchased 1,580,000 shares since commencement of the bid on March 13, 2017 for approximately $73 million.


▪	We announced today that the Board of Directors has approved a 9% increase to our quarterly dividend to shareholders, from $0.275 per share per quarter to $0.30 per share per quarter.

This First Quarter 2017 Management’s Discussion and Analysis dated April 26, 2017 for Methanex Corporation ("the Company") should be read in conjunction with the Company’s unaudited condensed consolidated interim financial statements for the period ended March 31, 2017 as well as the 2016 Annual Consolidated Financial Statements and MD&A included in the Methanex 2016 Annual Report. Unless otherwise indicated, the financial information presented in this interim report is prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). The Methanex 2016 Annual Report and additional information relating to Methanex is available on our website at www.methanex.com , the Canadian Securities Administrators' SEDAR website at www.sedar.com and on the United States Securities and Exchange Commission's EDGAR website at www.sec.gov .

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 2

MANAGEMENT’S DISCUSSION AND ANALYSIS

FINANCIAL AND OPERATIONAL DATA



	Three Months Ended
($ millions except per share amounts and where noted)	Mar 31 2017	Dec 31 2016	Mar 31 2016
Production (thousands of tonnes) (attributable to Methanex shareholders)	1,866	1,859	1,639
Sales volume (thousands of tonnes)
Methanex-produced methanol	1,756	1,750	1,529
Purchased methanol	512	526	422
Commission sales	304	245	168
Total sales volume ¹	2,572	2,521	2,119

Methanex average non-discounted posted price ($ per tonne) ²	437	312	272
Average realized price ($ per tonne) ³	365	278	230

Revenue	810	585	435
Adjusted revenue	832	635	450
Adjusted EBITDA	267	139	36
Cash flows from operating activities	221	72	70
Adjusted net income (loss)	140	41	(24	)
Net income (loss) (attributable to Methanex shareholders)	132	24	(23	)

Adjusted net income (loss) per common share	1.56	0.46	(0.27	)
Basic net income (loss) per common share	1.47	0.28	(0.26	)
Diluted net income (loss) per common share	1.46	0.28	(0.26	)

Common share information (millions of shares)
Weighted average number of common shares	90	90	90
Diluted weighted average number of common shares	90	90	90
Number of common shares outstanding, end of period	89	90	90


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


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

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 3

MANAGEMENT’S DISCUSSION AND ANALYSIS

PRODUCTION SUMMARY



	Q1 2017		Q4 2016	Q1 2016
(thousands of tonnes)	Operating Capacity ¹	Production	Production	Production
New Zealand ²	608	533	536	509
Geismar (USA)	500	493	526	483
Trinidad (Methanex interest) ³	500	396	455	313
Egypt (50% interest)	158	159	96	75
Medicine Hat (Canada)	150	118	92	159
Chile ⁴	220	167	154	100
	2,136	1,866	1,859	1,639


²	The operating capacity of New Zealand is made up of the two Motunui facilities and the Waitara Valley facility (refer to the New Zealand section below).


³	The operating capacity of Trinidad is made up of the Titan (100% interest) and Atlas (63.1% interest) facilities (refer to the Trinidad section below).


⁴	The production capacity of our Chile I and IV facilities is 1.7 million tonnes annually assuming access to natural gas feedstock.

New Zealand

The New Zealand facilities produced 533,000 tonnes of methanol in the first quarter of 2017 compared with 536,000 tonnes in the fourth quarter of 2016 . The New Zealand facilities are capable of producing up to 2.4 million tonnes annually, depending on natural gas composition.

United States

The Geismar facilities produced 493,000 tonnes during the first quarter of 2017 compared to 526,000 tonnes during the fourth quarter of 2016 .

Trinidad

The Trinidad facilities produced 396,000 tonnes (Methanex interest) in the first quarter of 2017 compared with 455,000 tonnes (Methanex interest) in the fourth quarter of 2016 . We continue to experience gas curtailments in Trinidad with gas availability in the first quarter of 2017 remaining at levels consistent with the fourth quarter of 2016. We also had mechanical issues at the Trinidad facilities that resulted in some lost production in the quarter. These mechanical issues have been resolved and repairs are now complete.

Egypt

The Egypt facility produced 318,000 tonnes (Methanex share - 159,000 tonnes) in the first quarter of 2017 compared to 192,000 tonnes (Methanex share - 96,000 tonnes) in the fourth quarter of 2016. The plant has continued to run at high rates following the maintenance activities performed in the fourth quarter of 2016.

The Egypt facility has experienced periodic natural gas supply restrictions since mid-2012 and gas restrictions worsened through 2014 and 2015. Gas deliveries for the first quarter of 2017 have improved significantly compared to the same period in 2016. We are optimistic that the strong efforts by Egyptian governmental entities to fast-track existing and new upstream gas supply in Egypt are leading to improved gas deliveries and an improved outlook for gas deliveries in the medium term.

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 4

MANAGEMENT’S DISCUSSION AND ANALYSIS

Canada

The Medicine Hat facility produced 118,000 tonnes during the first quarter of 2017 compared with 92,000 tonnes during the fourth quarter of 2016 . The plant was shut down for repairs during the first quarter and upon restart, operated at high rates for the remainder of the quarter.

Chile

The Chile facility produced 167,000 tonnes during the first quarter of 2017, produced using only natural gas supplies from Chile, compared to 154,000 tonnes during the fourth quarter of 2016.

The future of our Chile operations is primarily dependent on the level of natural gas exploration and development in southern Chile and our ability to secure a sustainable natural gas supply to our facilities on economic terms from Chile and Argentina. We continue to be optimistic that our underutilized 1.7 million tonne Chile facilities represent a very low capital cost growth opportunity for Methanex due to the significant progress in developing natural gas reserves in the area.

FINANCIAL RESULTS

For the first quarter of 2017 , we reported net income attributable to Methanex shareholders of $132 million ( $1.46 per common share on a diluted basis) compared with net income attributable to Methanex shareholders for the fourth quarter of 2016 of $24 million ( $0.28 per common share on a diluted basis).

For the first quarter of 2017 , we recorded Adjusted EBITDA of $267 million and Adjusted net income of $140 million ( $1.56 per common share). This compares with Adjusted EBITDA of $139 million and Adjusted net income of $41 million ( $0.46 per common share) for the fourth quarter of 2016 .

We calculate Adjusted EBITDA and Adjusted net income (loss) by including amounts related to our equity share of the Atlas facility (63.1% interest) and by excluding the non-controlling interests' share, the mark-to-market impact of share-based compensation as a result of changes in our share price and the impact of certain items associated with specific identified events. Refer to Additional Information - Supplemental Non-GAAP Measures on page 12 of the MD&A for a further discussion on how we calculate these measures. Our analysis of depreciation and amortization, finance costs, finance income and other expenses, and income taxes is consistent with the presentation of our consolidated statements of income and excludes amounts related to Atlas.

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 5

MANAGEMENT’S DISCUSSION AND ANALYSIS

We review our financial results by analyzing changes in Adjusted EBITDA, mark-to-market impact of share-based compensation, depreciation and amortization, finance costs, finance income and other expenses, and income taxes. A summary of our consolidated statements of income (loss) is as follows:



	Three Months Ended
($ millions)	Mar 31 2017			Dec 31 2016			Mar 31 2016
Consolidated statements of income (loss):
Revenue	$	810		$	585		$	435
Cost of sales and operating expenses	(559		)	(480		)	(404		)
Mark-to-market impact of share-based compensation	10			19			(1		)
Adjusted EBITDA (attributable to associate)	34			24			8
Amounts excluded from Adjusted EBITDA attributable to non-controlling interests	(28		)	(9		)	(2		)
Adjusted EBITDA (attributable to Methanex shareholders)	267			139			36

Mark-to-market impact of share-based compensation	(10		)	(19		)	1
Depreciation and amortization	(56		)	(55		)	(53		)
Finance costs	(23		)	(24		)	(21		)
Finance income and other expenses	—			(1		)	3
Income tax recovery (expense)	(38		)	(11		)	10
Earnings of associate adjustment ¹	(17		)	(14		)	(8		)
Non-controlling interests adjustment ¹	9			9			9
Net income (loss) (attributable to Methanex shareholders)	$	132		$	24		$	(23	)
Net income (loss)	$	151		$	25		$	(30	)


¹	These adjustments represent depreciation and amortization, finance costs, finance income and other expenses, and income taxes associated with our 63.1% interest in the Atlas methanol facility and the non-controlling interests.

Adjusted EBITDA (attributable to Methanex shareholders)

Our operations consist of a single operating segment - the production and sale of methanol. We review the results of operations by analyzing changes in the components of Adjusted EBITDA. For a discussion of the definitions used in our Adjusted EBITDA analysis, refer to How We Analyze Our Business on page 15 of the MD&A. Changes in these components - average realized price, sales volume, and total cash costs - similarly impact net income or loss attributable to Methanex shareholders.

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



($ millions)	Q1 2017 compared with Q4 2016			Q1 2017 compared with Q1 2016
Average realized price	$	199		$	308
Sales volume	(1		)	14
Total cash costs	(70		)	(91		)
Increase in Adjusted EBITDA	$	128		$	231

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 6

MANAGEMENT’S DISCUSSION AND ANALYSIS

Average realized price



	Three Months Ended
($ per tonne)	Mar 31 2017	Dec 31 2016	Mar 31 2016
Methanex average non-discounted posted price	437	312	272
Methanex average realized price	365	278	230

Methanex’s average realized price for the first quarter of 2017 increased compared to the fourth quarter of 2016 , amid volatile market conditions. The realized discount in the first quarter of 2017 was higher than in the fourth quarter of 2016. Our realized discounts tend to increase in periods where methanol prices decrease quickly, as was experienced in Asia towards the end of the first quarter of 2017. The opposite was true in the fourth quarter of 2016 when we experienced significant methanol price increases (refer to Supply/Demand Fundamentals section on page 10 of the MD&A for more information). The increase in average realized price for the first quarter of 2017 compared with the fourth quarter of 2016 , and first quarter of 2016, increased Adjusted EBITDA by $199 million and $308 million , respectively.

Sales volume

Methanol sales volume excluding commission sales volume in the first quarter of 2017 was slightly lower than the fourth quarter of 2016 and 317,000 tonnes higher compared with the first quarter of 2016 . The increase in the first quarter of 2017 compared to the first quarter of 2016 increased Adjusted EBITDA by $14 million .

Total cash costs

The primary drivers of changes in our total cash costs are changes in the cost of Methanex-produced methanol and changes in the cost of methanol we purchase from others ("purchased methanol"). More than half of our production is underpinned by natural gas purchase agreements with pricing terms that include base and variable price components linked to the price of methanol. We supplement our production with methanol produced by others through methanol offtake contracts and purchases on the spot market to meet customer needs and to support our marketing efforts within the major global markets.

We have adopted the first-in, first-out method of accounting for inventories and it generally takes between 30 and 60 days to sell the methanol we produce or purchase. Accordingly, the changes in Adjusted EBITDA as a result of changes in Methanex-produced and purchased methanol costs primarily depend on changes in methanol pricing and the timing of inventory flows.

In a rising price environment, our margins at a given price are higher than in a stable price environment as a result of timing of methanol purchases and production versus sales. Generally, the opposite applies when methanol prices are decreasing.

The changes in our total cash costs were due to the following:



($ millions)	Q1 2017 compared with Q4 2016			Q1 2017 compared with Q1 2016
Methanex-produced methanol costs	$	(26	)	$	(29	)
Proportion of Methanex-produced methanol sales	1			(1		)
Purchased methanol costs	(50		)	(59		)
Other, net	5			(2		)
Increase in total cash costs	$	(70	)	$	(91	)

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 7

MANAGEMENT’S DISCUSSION AND ANALYSIS

Methanex-produced methanol costs

Natural gas is the primary feedstock at our methanol facilities and is the most significant component of Methanex-produced methanol costs. We purchase natural gas for more than half of our production under agreements where the unique terms of each contract include a base price and a variable price component linked to the price of methanol to reduce our commodity price risk exposure. The variable price component of each gas contract is adjusted by a formula related to methanol prices above a certain level. For the first quarter of 2017 compared with the fourth quarter of 2016 and the first quarter of 2016, Methanex-produced methanol costs were higher by $26 million and $29 million , respectively. Changes in Methanex-produced methanol costs for all periods presented are primarily due to the impact of changes in realized methanol prices on the variable portion of our natural gas costs and changes in the mix of production sold from inventory.

Proportion of Methanex-produced methanol sales

The cost of purchased methanol is directly linked to the selling price for methanol at the time of purchase and the cost of purchased methanol is generally higher than the cost of Methanex-produced methanol. Accordingly, an increase in the proportion of Methanex-produced methanol sales results in a decrease in our overall cost structure for a given period. For the first quarter of 2017 compared with the fourth quarter of 2016 and the first quarter of 2016, the proportion of Methanex-produced methanol sales remained relatively unchanged.

Purchased methanol costs

Changes in purchased methanol costs for all periods presented are primarily a result of changes in methanol pricing.

Other, net

Other, net relates to logistics costs, selling general and administrative expenses and other operational charges.

Mark-to-Market Impact of Share-based Compensation

We grant share-based awards as an element of compensation. Share-based awards granted include stock options, share appreciation rights, tandem share appreciation rights, deferred share units, restricted share units and performance share units. For all share-based awards, share-based compensation is recognized over the related vesting period for the proportion of the service that has been rendered at each reporting date. Share-based compensation includes an amount related to the grant-date value and a mark-to-market impact as a result of subsequent changes in the fair value of the share-based awards primarily driven by the Company’s share price. The grant-date value amount is included in Adjusted EBITDA and Adjusted net income. The mark-to-market impact of share-based compensation as a result of changes in our share price is excluded from Adjusted EBITDA and Adjusted net income and analyzed separately.



	Three Months Ended
($ millions except share share price)	Mar 31 2017		Dec 31 2016		Mar 31 2016
Methanex Corporation share price ¹	$	46.90	$	43.80	$	32.12
Grant-date fair value expense included in Adjusted EBITDA and Adjusted net income (loss)	3		2		4
Mark-to-market impact due to change in share price	10		19		(1		)
Total share-based compensation expense, before tax	$	13	$	21	$	3


¹	US dollar share price of Methanex Corporation as quoted on the NASDAQ Global Market on the last trading day of the respective period.

For all periods presented, the mark-to-market impact on share-based compensation is primarily due to changes in the Methanex Corporation share price.

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 8

MANAGEMENT’S DISCUSSION AND ANALYSIS

Depreciation and Amortization

Depreciation and amortization was $56 million for the first quarter of 2017 compared with $55 million for the fourth quarter of 2016 and $53 million for the first quarter of 2016 . Depreciation and amortization for the three months ended March 31, 2017 compared with the same period in 2016 increased as a result of higher sales of Methanex-produced methanol.

Finance Costs



	Three Months Ended
($ millions)	Mar 31 2017		Dec 31 2016		Mar 31 2016
Finance costs	$	23	$	24	$	21

Finance costs are primarily comprised of interest on borrowings and finance lease obligations.

Finance Income and Other Expenses



	Three Months Ended
($ millions)	Mar 31 2017		Dec 31 2016			Mar 31 2016
Finance income and other expenses	$	—	$	(1	)	$	3

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

Income Taxes

A summary of our income taxes for the first quarter of 2017 compared to the same period in 2016 is as follows:



	Three months ended March 31, 2017						Three months ended March 31, 2016
($ millions except where noted)	Net Income			Adjusted Net Income			Net Loss			Adjusted Net Loss
Amount before income tax	$	189		$	188		$	(40	)	$	(35	)
Income tax recovery (expense)	(38		)	(48		)	10			11
	$	151		$	140		$	(30	)	$	(24	)
Effective tax rate	20		%	26		%	24		%	31		%

We earn the majority of our earnings in New Zealand, Trinidad, the United States, Egypt, Canada and Chile. In Trinidad and Chile, the statutory tax rate is 35%. The statutory rates in Canada and New Zealand are 26.5% and 28%, respectively. The United States statutory tax rate is 36% and the Egypt statutory tax rate is 22.5%. As the Atlas entity is accounted for using the equity method, any income taxes related to Atlas are included in earnings of associate and therefore excluded from total income taxes but included in the calculation of Adjusted net income.

The effective tax rate based on Adjusted net income was 26% for the three months ended March 31, 2017 compared to 31% on Adjusted net loss for the same period in 2016 . Adjusted earnings represents the amount that is attributable to Methanex shareholders and excludes the mark-to-market impact of share-based compensation and the impact of certain items associated with specific identified events. The effective tax rate differs from period to period depending on the source of earnings and the impact of foreign exchange fluctuations against the United States dollar on our tax balances. In periods with low income levels, the distribution of income and loss between jurisdictions can result in income tax rates that are not indicative of the longer term corporate tax rate.

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 9

MANAGEMENT’S DISCUSSION AND ANALYSIS

SUPPLY/DEMAND FUNDAMENTALS

Demand

Methanol demand in the first quarter of 2017 was healthy at approximately 17 million tonnes, just under 9% higher compared to the first quarter of 2016. Demand from MTO declined during the quarter as four coastal MTO units were idled in January for maintenance or due to technical issues. Three of these plants restarted in early February, while the fourth plant (a large plant capable of consuming up to 2.4 million tonnes of methanol per year at full operating rates) has not yet restarted. It is not unusual for new plants to experience a heightened level of technical outages during the early stages of their operations. There are three additional MTO units currently under construction with the combined capacity to consume over three million tonnes of methanol annually at full operating rates, and we expect these plants to be completed in 2018. The future operating rates of MTO producers will depend on a number of factors, including pricing for their various final products, the degree of downstream integration of these units with other products, and the impact of the olefin industry feedstock costs, including naphtha, on relative competitiveness. Despite a seasonal slowdown in China in the first quarter of 2017, traditional chemical demand growth (which accounts for approximately 55% of global methanol demand) remains solid. We estimate demand for this segment was approximately 4% higher versus the first quarter of 2016. We believe that growth in demand from traditional chemical applications is generally correlated to GDP and industrial production growth rates.

Supply

Supply was impacted in the first quarter by plant outages primarily in Iran, Oman and Saudi Arabia. During the quarter, MHTL of Trinidad announced that it would shut down two plants with total capacity of just over 1 million tonnes due to a lack of contracted gas supply. With respect to capacity additions, OCI N.V. and Consolidated Energy Limited (through its subsidiary G2X Energy) continue to progress their jointly owned Natgasoline project, a 1.8 million tonne plant under construction in Beaumont, Texas. There are a number of other projects under discussion in the United States. Other than one project, Yuhuang Chemical, who have announced that they have secured partial financing for a 1.8 million tonne plant in St. James Parish, Louisiana, we believe that there has been limited committed capital to date. In Iran, there are a number of plants at various stages of construction. We expect just over four million tonnes of capacity to come onstream in Iran over the next two years, however the start-up timing and future operating rates at these facilities will be dependent on various factors. To the end of 2018, we expect approximately four to five million tonnes of new capacity additions in China. Beyond 2018, we anticipate that new capacity additions in China will be modest due to an increasing degree of restrictions placed on new coal-based capacity additions. We expect that production from new methanol capacity in China will be consumed domestically.

Methanol Price

Methanol pricing improved in the first quarter of 2017 in a volatile price environment. Our average realized price increased by $87 per tonne to $365 per tonne from $278 per tonne in the fourth quarter. Strong demand leading into the first quarter along with constrained supply in the Middle East, boosted pricing early in the quarter. However, prices in China later came under pressure as supply improved and demand from MTO moderated due to the maintenance and technical issues at certain MTO facilities noted above.

Methanex posted prices moved higher through the first quarter of 2017, rising to $499 per tonne and $500 per tonne in North America and Asia Pacific in March, and to €370 per tonne in Europe for the first quarter of 2017 (up €120 per tonne from the fourth quarter of 2016). The European quarterly posted price moved up further for the second quarter of 2017 by €80 to €450 per tonne. However, posted prices in North America and Asia subsequently declined in April to $442 and $390 per tonne, respectively. We also recently announced the May non-discounted posted prices for these regions at $409 and $360 per tonne, respectively. The methanol price will ultimately depend on the strength of the global economy, industry operating rates, global energy prices, new supply additions and the strength of global demand.



Methanex Non-Discounted Regional Posted Prices ¹
(US$ per tonne)	Apr 2017	Mar 2017	Feb 2017	Jan 2017
North America	442	499	416	416
Europe ²	480	385	385	385
Asia Pacific	390	500	430	430


¹	Discounts from our posted prices are offered to customers based on

various factors.


²	€450 for Q2 2017 (Q1 2017 – €370) converted to United States dollars.

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 10

MANAGEMENT’S DISCUSSION AND ANALYSIS

LIQUIDITY AND CAPITAL RESOURCES

Cash flows from operating activities in the first quarter of 2017 were $221 million compared with $72 million for the fourth quarter of 2016 and $70 million for the first quarter of 2016 . The changes in cash flows from operating activities resulted from changes in the following:



($ millions)	Q1 2017 compared with Q4 2016			Q1 2017 compared with Q1 2016
Change in Adjusted EBITDA (attributable to Methanex shareholders)	$	128		$	231
Deduct change in Adjusted EBITDA of associate	(10		)	(26		)
Dividends received from associate	16			(3		)
Cash flows attributable to non-controlling interests	19			26
Non-cash working capital	(6		)	(69		)
Income taxes paid	—			(4		)
Share-based payments	(2		)	5
Other	4			(9		)
Increase in cash flows from operating activities	$	149		$	151

We generated cash from operating activities before changes in non-cash working capital of $279 million during the quarter. Partially offsetting this was an increase in non-cash working capital from operating activities in the first quarter of 2017 compared to the fourth and first quarters of 2016, primarily the result of the impact of the increase in the realized price of methanol on trade receivables and higher volume in inventory.

We operate in a highly competitive commodity industry and believe it is appropriate to maintain a strong balance sheet and financial flexibility. At March 31, 2017 , our cash balance was $315 million , including $53 million held in our Egypt entity. 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.

During the first quarter of 2017 we paid a quarterly dividend of $0.275 per common share for a total of $25 million . Additionally, on April 26, 2017 the Board of Directors has approved a 9% increase to our quarterly dividend to shareholders, from $0.275 to $0.30 per share per quarter.

During the quarter, the Board of Directors has approved a new 5% normal course issuer bid which allows us to repurchase for cancellation up to approximately 4.5 million common shares. We repurchased 730,000 shares to March 31, 2017 for approximately $34 million. To date we have repurchased 1,580,000 shares since commencement of the bid on March 13, 2017 for approximately $73 million.

Certain conditions have not been met related to the Egypt limited recourse debt facilities, resulting in a restriction on shareholder distributions from the Egypt entity. As of March 31, 2017, the cash balance held in our Egypt entity on a 100% ownership basis was $53 million . The Egypt entity continues to be able to fully utilize its funds for operating, capital and financing needs, including the repayment of the Egypt limited recourse debt facilities. Refer to note 5 of the Company’s unaudited condensed consolidated interim financial statements for further details.

We have an undrawn committed revolving credit facility with a syndicate of highly rated financial institutions that expires in December 2019. Refer to note 5 of the Company's unaudited condensed consolidated interim financial statements for further discussion of the terms of the credit facility. We do not have any debt maturities until 2019 other than normal course obligations for principal repayment related to our Egypt and other limited recourse debt facilities.

Our planned capital expenditures directed towards maintenance, turnarounds and catalyst changes for operations, including our 63.1% share of Atlas and 50% of Egypt, is currently estimated to be approximately $65 million to the end of 2017. Additionally, we are optimistic that we will be able to secure additional gas to support an investment in the restart of our Chile IV plant, and expect to be in a position to make a decision by mid-2017 to spend approximately $50 million over 12 months. If we are

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 11

MANAGEMENT’S DISCUSSION AND ANALYSIS

successful in securing sufficient gas to support a two-plant operation, we would expect to spend around an additional $50 million approximately in mid-2018 to refurbish the Chile I plant.

We believe we are well positioned to meet our financial commitments, pursue our near-term growth opportunities in Chile and deliver on our commitment to return excess cash to shareholders through dividends and share repurchases .

CONTROLS AND PROCEDURES

During the first quarter of 2017 , no changes were made in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

ADDITIONAL INFORMATION – SUPPLEMENTAL NON-GAAP MEASURES

In addition to providing measures prepared in accordance with International Financial Reporting Standards ("IFRS"), we present certain supplemental non-GAAP measures throughout this document. These are Adjusted EBITDA, Adjusted net income (loss), Adjusted net income (loss) per common share, Adjusted revenue, and operating income (loss). These measures do not have any standardized meaning prescribed by generally accepted accounting principles ("GAAP") and therefore are unlikely to be comparable to similar measures presented by other companies. These supplemental non-GAAP measures are provided to assist readers in determining our ability to generate cash from operations and improve the comparability of our results from one period to another. We believe these measures are useful in assessing operating performance and liquidity of the Company’s ongoing business on an overall basis. We also believe Adjusted EBITDA is frequently used by securities analysts and investors when comparing our results with those of other companies.

Adjusted EBITDA (attributable to Methanex shareholders)

Adjusted EBITDA differs from the most comparable GAAP measure, net income (loss) attributable to Methanex shareholders, because it excludes the mark-to-market impact of share-based compensation, depreciation and amortization, finance costs, finance income and other expenses, and income taxes. Adjusted EBITDA includes an amount representing our 63.1% share of the Atlas facility and excludes the non-controlling shareholders' interests in entities which we control but do not fully own.

Adjusted EBITDA and Adjusted net income (loss) exclude the mark-to-market impact of share-based compensation related to the impact of changes in our share price on SARs, TSARs, deferred share units, restricted share units and performance share units. The mark-to-market impact related to share-based compensation that is excluded from Adjusted EBITDA and Adjusted net income (loss) is calculated as the difference between the grant-date value and the fair value recorded at each period-end. As share-based awards will be settled in future periods, the ultimate value of the units is unknown at the date of grant and therefore the grant-date value recognized in Adjusted EBITDA and Adjusted net income may differ from the total settlement cost.

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 12

MANAGEMENT’S DISCUSSION AND ANALYSIS

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



	Three Months Ended
($ millions)	Mar 31 2017			Dec 31 2016			Mar 31 2016
Net income (loss) (attributable to Methanex shareholders)	$	132		$	24		$	(23	)
Mark-to-market impact of share-based compensation	10			19			(1		)
Depreciation and amortization	56			55			53
Finance costs	23			24			21
Finance income and other expenses	—			1			(3		)
Income tax expense (recovery)	38			11			(10		)
Earnings of associate adjustment ¹	17			14			8
Non-controlling interests adjustment ¹	(9		)	(9		)	(9		)
Adjusted EBITDA (attributable to Methanex shareholders)	$	267		$	139		$	36


¹	These adjustments represent depreciation and amortization, finance costs, finance income and other expenses, and income tax expense associated with our 63.1% interest in the Atlas methanol facility and the non-controlling interests.

Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Common Share

Adjusted net income (loss) and Adjusted net income (loss) per common share are non-GAAP measures because they exclude the mark-to-market impact of share-based compensation and the impact of certain items associated with specific identified events. The following table shows a reconciliation of net income (loss) attributable to Methanex shareholders to Adjusted net income (loss) and the calculation of Adjusted net income (loss) per common share:



	Three Months Ended
($ millions except number of shares and per share amounts)	Mar 31 2017		Dec 31 2016		Mar 31 2016
Net income (loss) (attributable to Methanex shareholders)	$	132	$	24	$	(23	)
Mark-to-market impact of share-based compensation, net of tax	8		17		(1		)
Adjusted net income (loss)	$	140	$	41	$	(24	)
Diluted weighted average shares outstanding (millions)	90		90		90
Adjusted net income (loss) per common share	$	1.56	$	0.46	$	(0.27	)

Adjusted Revenue (attributable to Methanex shareholders)

Adjusted revenue differs from the most comparable GAAP measure, revenue, because it excludes revenue relating to 50% of the Egypt methanol facility that we do not own and includes an amount representing our 63.1% share of Atlas revenue. It also includes commission earned on volume marketed on a commission basis related to both the 36.9% of the Atlas methanol facility and the 50% of the Egypt methanol facility that we do not own. A reconciliation from revenue to Adjusted revenue is as follows:



	Three Months Ended
($ millions)	Mar 31 2017			Dec 31 2016			Mar 31 2016
Revenue	$	810		$	585		$	435
Methanex share of Atlas revenue ¹	81			73			34
Non-controlling interests' share of revenue ¹	(58		)	(22		)	(18		)
Other adjustments	(1		)	(1		)	(1		)
Adjusted revenue (attributable to Methanex shareholders)	$	832		$	635		$	450


¹	Excludes intercompany transactions with the Company.

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 13

MANAGEMENT’S DISCUSSION AND ANALYSIS

Operating Income (Loss)

Operating income (loss) is reconciled directly to a GAAP measure in our consolidated statements of income.

QUARTERLY FINANCIAL DATA (UNAUDITED)

Our operations consist of a single operating segment - the production and sale of methanol. Quarterly results vary due to the average realized price of methanol, sales volume, and total cash costs. A summary of selected financial information is as follows:



	Three Months Ended
($ millions except per share amounts)	Mar 31 2017		Dec 31 2016		Sep 30 2016			Jun 30 2016
Revenue	$	810	$	585	$	510		$	468
Adjusted EBITDA	267		139		74			38
Net income (loss)	132		24		(11		)	(3		)
Adjusted net income (loss)	140		41		(1		)	(31		)
Basic net income (loss) per common share	1.47		0.28		(0.12		)	(0.03		)
Diluted net income (loss) per common share	1.46		0.28		(0.12		)	(0.08		)
Adjusted net income (loss) per common share	1.56		0.46		(0.01		)	(0.34		)



	Three Months Ended
($ millions except per share amounts)	Mar 31 2016			Dec 31 2015		Sep 30 2015		Jun 30 2015
Revenue	$	435		$	484	$	527	$	638
Adjusted EBITDA	36			80		95		129
Net income (loss)	(23		)	10		78		104
Adjusted net income (loss)	(24		)	15		23		51
Basic net income (loss) per common share	(0.26		)	0.10		0.87		1.15
Diluted net income (loss) per common share	(0.26		)	0.10		0.54		1.15
Adjusted net income (loss) per common share	(0.27		)	0.16		0.26		0.56

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 14

MANAGEMENT’S DISCUSSION AND ANALYSIS

HOW WE ANALYZE OUR BUSINESS

Our operations consist of a single operating segment - the production and sale of methanol. We review our financial results by analyzing changes in the components of Adjusted EBITDA, mark-to-market impact of share-based compensation, depreciation and amortization, finance costs, finance income and other expenses, and income taxes.

The Company has used the terms Adjusted EBITDA, Adjusted net income (loss), Adjusted net income (loss) per common share, Adjusted revenue and operating income throughout this document. These items are non-GAAP measures that do not have any standardized meaning prescribed by GAAP and therefore are unlikely to be comparable to similar measures presented by other companies. Refer to Additional Information - Supplemental Non-GAAP Measures section on page 12 of the MD&A for a description of each non-GAAP measure and reconciliations to the most comparable GAAP measures.

In addition to the methanol that we produce at our facilities, we also purchase and re-sell methanol produced by others and we sell methanol on a commission basis. We analyze the results of all methanol sales together, excluding commission sales volume. The key drivers of changes in Adjusted EBITDA are average realized price, cash costs and sales volume, which are defined and calculated as follows:



PRICE	The change in 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 methanol multiplied by the current period total methanol sales volume, excluding commission sales volume and Tolling Volume, plus the difference from period to period in commission revenue.
CASH COSTS	The change in 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 current period total methanol sales volume, excluding commission sales volume and Tolling Volume in the current period. The cash costs per tonne is the weighted average of the cash cost per tonne of Methanex-produced methanol and the cash cost per tonne of purchased methanol. The cash cost per tonne of Methanex-produced methanol includes absorbed fixed cash costs per tonne and variable cash costs per tonne. The cash cost per tonne of purchased methanol consists principally of the cost of methanol itself. In addition, the change in Adjusted EBITDA as a result of changes in cash costs includes the changes from period to period in unabsorbed fixed production costs, consolidated selling, general and administrative expenses and fixed storage and handling costs.
SALES VOLUME	The change in Adjusted EBITDA as a result of changes in sales volume is calculated as the difference from period to period in total methanol sales volume, excluding commission sales volume and Tolling Volume, multiplied by the margin per tonne for the prior period. The margin per tonne for the prior period is the weighted average margin per tonne of Methanex-produced methanol and margin per tonne of purchased methanol. The margin per tonne for Methanex-produced methanol is calculated as the selling price per tonne of methanol less absorbed fixed cash costs per tonne and variable cash costs per tonne. The margin per tonne for purchased methanol is calculated as the selling price per tonne of methanol less the cost of purchased methanol per tonne.

We own 63.1% of the Atlas methanol facility and market the remaining 36.9% of its production through a commission offtake agreement. A contractual agreement between us and our partners establishes joint control over Atlas. As a result, we account for this investment using the equity method of accounting, which results in 63.1% of the net assets and net earnings of Atlas being presented separately in the consolidated statements of financial position and consolidated statements of income (loss), respectively. For purposes of analyzing our business, Adjusted EBITDA, Adjusted net income (loss), Adjusted net income (loss) per common share and Adjusted revenue include an amount representing our 63.1% equity share in Atlas. Our analysis of depreciation and amortization, finance costs, finance income and other expenses, and income taxes is consistent with the presentation of our consolidated statements of income (loss) and excludes amounts related to Atlas.

We own 50% of the 1.26 million tonne per year Egypt methanol facility and market the remaining 50% of its production through a commission offtake agreement. We account for this investment using consolidation accounting, which results in 100% of the revenues and expenses being included in our financial statements. We also consolidate less then wholly-owned entities for which we have a controlling interest. Non-controlling interests are included in the Company’s consolidated financial statements and represent the non-controlling shareholders’ interests in the Egypt methanol facility and any entity where we have control. For purposes of analyzing our business, Adjusted EBITDA, Adjusted net income (loss), Adjusted net income (loss) per common share and Adjusted revenue exclude the amounts associated with non-controlling interests.

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 15

MANAGEMENT’S DISCUSSION AND ANALYSIS

FORWARD-LOOKING INFORMATION WARNING

This First Quarter 2017 Management’s Discussion and Analysis ("MD&A") as well as comments made during the First Quarter 2017 investor conference call contain forward-looking statements with respect to us and our industry. These statements relate to future events or our future performance. All statements other than statements of historical fact are forward-looking statements. Statements that include the words "believes," "expects," "may," "will," "should," "potential," "estimates," "anticipates," "aim," "goal" or other comparable terminology and similar statements of a future or forward-looking nature identify forward-looking statements.

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


•	expected demand for methanol and its derivatives,


•	expected new methanol supply or restart of idled capacity and timing for start-up of the same,


•	expected shutdowns (either temporary or permanent) or restarts of existing methanol supply (including our own facilities), including, without limitation, the timing and length of planned maintenance outages,


•	expected methanol and energy prices,


•	expected levels of methanol purchases from traders or other third parties,


•	expected levels, timing and availability of economically priced natural gas supply to each of our plants,


•	capital committed by third parties towards future natural gas exploration and development in the vicinity of our plants,


•	our expected capital expenditures,


•	anticipated operating rates of our plants,


•	expected operating costs, including natural gas feedstock costs and logistics costs,


•	expected tax rates or resolutions to tax disputes,


•	expected cash flows, earnings capability and share price,


•	availability of committed credit facilities and other financing,

•

our ability to meet covenants or obtain or continue to obtain waivers associated with our long-term debt obligations, including, without limitation, the Egypt limited recourse debt facilities that have conditions associated with the payment of cash or other distributions and the finalization of certain land title registrations and related mortgages which require actions by Egyptian governmental entities,


•	expected impact on our results of operations in Egypt or our financial condition as a consequence of civil unrest or actions taken or inaction by Egyptian governmental entities,


•	our shareholder distribution strategy and anticipated distributions to shareholders,


•	commercial viability and timing of, or our ability to execute, future projects, plant restarts, capacity expansions, plant relocations or other business initiatives or opportunities,


•	our financial strength and ability to meet future financial commitments,


•	expected global or regional economic activity (including industrial production levels),


•	expected outcomes of litigation or other disputes, claims and assessments, and


•	expected actions of governments, governmental agencies, gas suppliers, courts, tribunals or other third parties.

We believe that we have a reasonable basis for making such forward-looking statements. The forward-looking statements in this document are based on our experience, our perception of trends, current conditions and expected future developments as well as other factors. Certain material factors or assumptions were applied in drawing the conclusions or making the forecasts or projections that are included in these forward-looking statements, including, without limitation, future expectations and assumptions concerning the following:


•	the supply of, demand for and price of methanol, methanol derivatives, natural gas, coal, oil and oil derivatives,


•	our ability to procure natural gas feedstock on commercially acceptable terms,


•	operating rates of our facilities,

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 16

MANAGEMENT’S DISCUSSION AND ANALYSIS


•	receipt or issuance of third-party consents or approvals, including, without limitation, governmental registrations of land title and related mortgages in Egypt and governmental approvals related to rights to purchase natural gas,


•	the establishment of new fuel standards,


•	operating costs, including natural gas feedstock and logistics costs, capital costs, tax rates, cash flows, foreign exchange rates and interest rates,


•	the availability of committed credit facilities and other financing,


•	global and regional economic activity (including industrial production levels),


•	absence of a material negative impact from major natural disasters,


•	absence of a material negative impact from changes in laws or regulations,


•	absence of a material negative impact from political instability in the countries in which we operate, and


•	enforcement of contractual arrangements and ability to perform contractual obligations by customers, natural gas and other suppliers and other third parties.

However, forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. The risks and uncertainties primarily include those attendant with producing and marketing methanol and successfully carrying out major capital expenditure projects in various jurisdictions, including, without limitation:


•	conditions in the methanol and other industries including fluctuations in the supply, demand and price for methanol and its derivatives, including demand for methanol for energy uses,


•	the price of natural gas, coal, oil and oil derivatives,


•	our ability to obtain natural gas feedstock on commercially acceptable terms to underpin current operations and future production growth opportunities,


•	the ability to carry out corporate initiatives and strategies,


•	actions of competitors, suppliers and financial institutions,


•	conditions within the natural gas delivery systems that may prevent delivery of our natural gas supply requirements,


•	competing demand for natural gas, especially with respect to domestic needs for gas and electricity in Chile and Egypt,


•	actions of governments and governmental authorities, including, without limitation, implementation of policies or other measures that could impact the supply of or demand for methanol or its derivatives,


•	changes in laws or regulations,


•	import or export restrictions, anti-dumping measures, increases in duties, taxes and government royalties, and other actions by governments that may adversely affect our operations or existing contractual arrangements,


•	world-wide economic conditions, and


•	other risks described in our 2016 Annual Management’s Discussion and Analysis and this First Quarter 2017 Management’s Discussion and Analysis.

Having in mind these and other factors, investors and other readers are cautioned not to place undue reliance on forward-looking statements. They are not a substitute for the exercise of one’s own due diligence and judgment. The outcomes implied by forward-looking statements may not occur and we do not undertake to update forward-looking statements except as required by applicable securities laws.

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 17

MANAGEMENT’S DISCUSSION AND ANALYSIS

Methanex Corporation

Consolidated Statements of Income (Loss) (unaudited)

(thousands of U.S. dollars, except number of common shares and per share amounts)



	Three Months Ended
	Mar 31 2017			Mar 31 2016
Revenue	$	810,349		$	434,853
Cost of sales and operating expenses	(559,314		)	(403,751		)
Depreciation and amortization	(55,972		)	(52,979		)
Operating income (loss)	195,063			(21,877		)
Earnings (loss) of associate (note 4)	16,989			(227		)
Finance costs	(23,317		)	(21,001		)
Finance income and other expenses	3			3,101
Income (loss) before income taxes	188,738			(40,004		)
Income tax recovery (expense):
Current	(25,408		)	(15,437		)
Deferred	(12,302		)	25,075
	(37,710		)	9,638
Net income (loss)	$	151,028		$	(30,366	)
Attributable to:
Methanex Corporation shareholders	$	131,569		$	(23,398	)
Non-controlling interests	19,459			(6,968		)
	$	151,028		$	(30,366	)

Income (loss) per common share for the period attributable to Methanex Corporation shareholders
Basic net income (loss) per common share	$	1.47		$	(0.26	)
Diluted net income (loss) per common share (note 6)	$	1.46		$	(0.26	)

Weighted average number of common shares outstanding (note 6)	89,786,855			89,718,730
Diluted weighted average number of common shares outstanding (note 6)	89,856,092			89,767,900

See accompanying notes to condensed consolidated interim financial statements.

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 1

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

Methanex Corporation

Consolidated Statements of Comprehensive Income (Loss) (unaudited)

(thousands of U.S. dollars)



	Three Months Ended
	Mar 31 2017			Mar 31 2016
Net income (loss)	$	151,028		$	(30,366	)
Other comprehensive income (loss):
Items that may be reclassified to income:
Change in fair value of cash flow hedges (note 9)	(54,502		)	(49,719		)
Forward element excluded from hedging relationships (note 9)	34,533			31,710
Taxes on above items	6,556			6,015
	(13,413		)	(11,994		)
Comprehensive income (loss)	$	137,615		$	(42,360	)
Attributable to:
Methanex Corporation shareholders	$	118,156		$	(35,392	)
Non-controlling interests	19,459			(6,968		)
	$	137,615		$	(42,360	)

See accompanying notes to condensed consolidated interim financial statements.

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 2

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

Methanex Corporation

Consolidated Statements of Financial Position (unaudited)

(thousands of U.S. dollars)



AS AT	Mar 31 2017			Dec 31 2016
ASSETS
Current assets:
Cash and cash equivalents	$	315,133		$	223,890
Trade and other receivables	513,576			499,603
Inventories (note 2)	351,363			281,328
Prepaid expenses	23,442			20,846
	1,203,514			1,025,667
Non-current assets:
Property, plant and equipment (note 3)	3,079,107			3,117,469
Investment in associate (note 4)	189,864			197,402
Deferred income tax assets	128,689			137,341
Other assets	78,581			78,784
	3,476,241			3,530,996
	$	4,679,755		$	4,556,663
LIABILITIES AND EQUITY
Current liabilities:
Trade, other payables and accrued liabilities	$	574,887		$	523,216
Current maturities on long-term debt (note 5)	55,534			53,997
Current maturities on other long-term liabilities	35,212			29,720
	665,633			606,933
Non-current liabilities:
Long-term debt (note 5)	1,476,944			1,502,209
Other long-term liabilities	368,871			351,191
Deferred income tax liabilities	288,430			290,980
	2,134,245			2,144,380
Equity:
Capital stock	509,362			511,465
Contributed surplus	2,212			2,568
Retained earnings	1,201,367			1,124,104
Accumulated other comprehensive loss	(54,715		)	(41,302		)
Shareholders' equity	1,658,226			1,596,835
Non-controlling interests	221,651			208,515
Total equity	1,879,877			1,805,350
	$	4,679,755		$	4,556,663

See accompanying notes to condensed consolidated interim financial statements.

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 3

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

Methanex Corporation

Consolidated Statements of Changes in Equity (unaudited)

(thousands of U.S. dollars, except number of common shares)



	Number of Common Shares		Capital Stock		Contributed Surplus		Retained Earnings		Accumulated Other Comprehensive Loss	Shareholders' Equity		Non- Controlling Interests		Total Equity
Balance, December 31, 2015	89,671,198		$509,464		$2,426		$1,235,615		$(27,776)	$1,719,729		$248,844		$1,968,573
Net loss	—		—		—		(23,398	)	—	(23,398	)	(6,968	)	(30,366	)
Other comprehensive loss	—		—		—		—		(11,994)	(11,994	)	—		(11,994	)
Compensation expense recorded for stock options	—		—		194		—		—	194		—		194
Issue of shares on exercise of stock options	125,040		798		—		—		—	798		—		798
Reclassification of grant date fair value on exercise of stock options	—		257		(257	)	—		—	—		—		—
Dividend payments to Methanex Corporation shareholders	—		—		—		(24,705	)	—	(24,705	)	—		(24,705	)
Distributions made and accrued to non-controlling interests	—		—		—		—		—	—		(5,965	)	(5,965	)
Balance, March 31, 2016	89,796,238		$510,519		$2,363		$1,187,512		$(39,770)	$1,660,624		$235,911		$1,896,535
Net income (loss)	—		—		—		10,853		—	10,853		(8,712	)	2,141
Other comprehensive loss	—		—		—		(169	)	(1,532)	(1,701	)	—		(1,701	)
Compensation expense recorded for stock options	—		—		443		—		—	443		—		443
Issue of shares on exercise of stock options	28,100		708		—		—		—	708		—		708
Reclassification of grant date fair value on exercise of stock options	—		238		(238	)	—		—	—		—		—
Dividend payments to Methanex Corporation shareholders	—		—		—		(74,092	)	—	(74,092	)	—		(74,092	)
Distributions made and accrued to non-controlling interests	—		—		—		—		—	—		(18,709	)	(18,709	)
Equity contributions by non-controlling interests	—		—		—		—		—	—		25		25
Balance, December 31, 2016	89,824,338		$511,465		$2,568		$1,124,104		$(41,302)	$1,596,835		$208,515		$1,805,350
Net income	—		—		—		131,569		—	131,569		19,459		151,028
Other comprehensive loss	—		—		—		—		(13,413)	(13,413	)	—		(13,413	)
Compensation expense recorded for stock options	—		—		139		—		—	139		—		139
Issue of shares on exercise of stock options	53,620		1,559		—		—		—	1,559		—		1,559
Reclassification of grant date fair value on exercise of stock options	—		495		(495	)	—		—	—		—		—
Payment for shares repurchased	(730,000	)	(4,157	)	—		(29,585	)	—	(33,742	)	—		(33,742	)
Dividend payments to Methanex Corporation shareholders	—		—		—		(24,721	)	—	(24,721	)	—		(24,721	)
Distributions made and accrued to non-controlling interests	—		—		—		—		—	—		(6,323	)	(6,323	)
Balance, March 31, 2017	89,147,958		$509,362		$2,212		$1,201,367		$(54,715)	$1,658,226		$221,651		$1,879,877

See accompanying notes to condensed consolidated interim financial statements.

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 4

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

Methanex Corporation

Consolidated Statements of Cash Flows (unaudited)

(thousands of U.S. dollars)



	Three Months Ended
	Mar 31 2017			Mar 31 2016
CASH FLOWS FROM / (USED IN) OPERATING ACTIVITIES
Net income (loss)	$	151,028		$	(30,366	)
Add (deduct) loss (earnings) of associate	(16,989		)	227
Dividends received from associate	24,609			28,395
Add (deduct) non-cash items:
Depreciation and amortization	55,972			52,979
Income tax expense (recovery)	37,710			(9,638		)
Share-based compensation expense	12,510			2,883
Finance costs	23,317			21,001
Other	1,405			387
Income taxes paid	(4,663		)	(570		)
Other cash payments, including share-based compensation	(5,954		)	(5,910		)
Cash flows from operating activities before undernoted	278,945			59,388
Changes in non-cash working capital (note 8)	(58,291		)	10,590
	220,654			69,978

CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES
Payments for repurchase of shares	(33,742		)	—
Dividend payments to Methanex Corporation shareholders	(24,721		)	(24,705		)
Interest paid	(15,506		)	(13,374		)
Net proceeds on issue of long-term debt	—			4,593
Repayment of long-term debt	(24,514		)	(22,066		)
Finance leases	(1,844		)	(946		)
Distributions to non-controlling interests	—			(500		)
Proceeds on issue of shares on exercise of stock options	1,559			798
Changes in non-cash working capital related to financing activities (note 8)	(3,967		)	(5,465		)
	(102,735		)	(61,665		)

CASH FLOWS FROM / (USED IN) INVESTING ACTIVITIES
Property, plant and equipment	(19,577		)	(15,450		)
Other assets	—			(66		)
Changes in non-cash working capital related to investing activities (note 8)	(7,099		)	27,280
	(26,676		)	11,764
Increase in cash and cash equivalents	91,243			20,077
Cash and cash equivalents, beginning of period	223,890			254,934
Cash and cash equivalents, end of period	$	315,133		$	275,011

See accompanying notes to condensed consolidated interim financial statements.

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 5

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

Methanex Corporation

Notes to Condensed Consolidated Interim Financial Statements (unaudited)

Except where otherwise noted, tabular dollar amounts are stated in thousands of U.S. dollars.


1.	Basis of presentation:

Methanex Corporation ("the Company") is an incorporated entity with corporate offices in Vancouver, Canada. The Company’s operations consist of the production and sale of methanol, a commodity chemical. The Company is the world’s largest producer and supplier of methanol to the major international markets of Asia Pacific, North America, Europe and South America.

These condensed consolidated interim financial statements are prepared in accordance with International Accounting Standards ("IAS") 34, Interim Financial Reporting, as issued by the International Accounting Standards Board ("IASB") on a basis consistent with those followed in the most recent annual consolidated financial statements.

These condensed consolidated interim financial statements do not include all of the information required for full annual financial statements and were approved and authorized for issue by the Audit, Finance & Risk Committee of the Board of Directors on April 26, 2017 .

These condensed consolidated interim financial statements should be read in conjunction with the Company’s consolidated financial statements for the year ended December 31, 2016 .


2.	Inventories:

Inventories are valued at the lower of cost, determined on a first-in first-out basis, and estimated net realizable value. The amount of inventories recognized as an expense in cost of sales and operating expenses and depreciation and amortization for the three months ended March 31, 2017 is $544 million (March 31, 2016 - $386 million).


3.	Property, plant and equipment:



	Buildings, Plant Installations & Machinery		Finance Leases		Other		Total
Cost at March 31, 2017	$	4,569,108	$	208,508	$	270,872	$	5,048,488
Accumulated depreciation at March 31, 2017	1,804,479		22,464		142,438		1,969,381
Net book value at March 31, 2017	$	2,764,629	$	186,044	$	128,434	$	3,079,107
Cost at December 31, 2016	$	4,549,816	$	206,260	$	272,878	$	5,028,954
Accumulated depreciation at December 31, 2016	1,752,540		18,557		140,388		1,911,485
Net book value at December 31, 2016	$	2,797,276	$	187,703	$	132,490	$	3,117,469

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 6

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)


4.	Interest in Atlas joint venture:


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



Statements of financial position	Mar 31 2017			Dec 31 2016
Cash and cash equivalents	$	10,888		$	15,530
Other current assets	63,274			45,219
Non-current assets	315,679			324,297
Current liabilities	(43,430		)	(24,783		)
Other long-term liabilities, including current maturities	(166,478		)	(168,253		)
Net assets at 100%	179,933			192,010
Net assets at 63.1%	113,538			121,158
Long-term receivable from Atlas	76,326			76,244
Investment in associate	$	189,864		$	197,402



	Three Months Ended
Statements of income	Mar 31 2017			Mar 31 2016
Revenue	$	115,209		$	22,373
Cost of sales and depreciation and amortization	(70,417		)	(18,176		)
Operating income	44,792			4,197
Finance costs, finance income and other expenses	(2,878		)	(3,092		)
Income tax expense	(14,990		)	(1,465		)
Net earnings (loss) at 100%	26,924			(360		)
Earnings (loss) of associate at 63.1%	$	16,989		$	(227	)

Dividends received from associate	$	24,609		$	28,395


b)	Contingent liability:

The Board of Inland Revenue of Trinidad and Tobago has issued assessments against Atlas in respect of the 2005 to 2010 financial years. All subsequent tax years remain open to assessment. The assessments relate to the pricing arrangements of certain long-term fixed price sales contracts from 2005 to 2019 related to methanol produced by Atlas. Atlas had partial relief from corporation income tax until late July 2014.

The Company has lodged objections to the assessments. Based on the merits of the cases and legal interpretation, management believes its position should be sustained.

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 7

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)


5.	Long-term debt:



As at	Mar 31 2017			Dec 31 2016
Unsecured notes
$350 million at 3.25% due December 15, 2019	$	347,356		$	347,126
$250 million at 5.25% due March 1, 2022	247,780			247,685
$300 million at 4.25% due December 1, 2024	296,613			296,529
$300 million at 5.65% due December 1, 2044	295,102			295,084
	1,186,851			1,186,424
Egypt limited recourse debt facilities	266,448			288,515
Other limited recourse debt facilities	79,179			81,267
Total long-term debt ¹	1,532,478			1,556,206
Less current maturities	(55,534		)	(53,997		)
	$	1,476,944		$	1,502,209


¹	Long-term debt is presented net of deferred financing fees.

During the quarter ended March 31, 2017 , the Company made repayments on its Egypt limited recourse debt facilities of $22.4 million, and made repayments of $2.1 million on its other limited recourse debt facilities. Other limited recourse debt facilities relates to financing for certain of our ocean going vessels which we own through less than wholly-owned entities under the Company's control.

The Company maintains a $300 million committed revolving credit facility with a syndicate of highly rated financial institutions that expires in December 2019. Significant covenant and default provisions of the facility include:

a) the obligation to maintain an EBITDA to interest coverage ratio of greater than 2:1 calculated on a four-quarter trailing basis and a debt to capitalization ratio of less than or equal to 55%, both ratios calculated in accordance with definitions in the credit agreement that include adjustments to the limited recourse subsidiaries,

b) a default if payment is accelerated by a creditor on any indebtedness of $50 million or more of the Company and its subsidiaries, except for the limited recourse subsidiaries, and

c) a default if a default occurs that permits a creditor to demand repayment on any other indebtedness of $50 million or more of the Company and its subsidiaries, except for the limited recourse subsidiaries.

The limited recourse debt facilities are described as limited recourse as they are secured only by the assets of the entity that carries the debt. Accordingly, the lenders to the limited recourse debt facilities have no recourse to the Company or its other subsidiaries.

The Egypt limited recourse debt facilities have covenants and default provisions that apply only to the Egypt entity, including restrictions on the incurrence of additional indebtedness and a requirement to fulfill certain conditions before the payment of cash or other shareholder distributions. Certain conditions have not been met, resulting in a restriction on shareholder distributions from the Egypt entity. As of March 31, 2017, the Egypt cash balance on a 100% ownership basis was $53 million . The Egypt entity continues to be able to fully utilize its funds for operating, capital and financing needs, including the repayment of the Egypt limited recourse debt facilities.

Failure to comply with any of the covenants or default provisions of the long-term debt facilities described above could result in a default under the applicable credit agreement that would allow the lenders to not fund future loan requests, accelerate the due date of the principal and accrued interest on any outstanding loans or restrict the payment of cash or other distributions.

As at March 31, 2017 , management believes the Company was in compliance with all significant terms and default provisions related to long-term debt obligations.

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 8

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)


6.	Net income (loss) per common share:

Diluted net income (loss) per common share is calculated by considering the potential dilution that would occur if outstanding stock options and, under certain circumstances, tandem share appreciation rights ("TSARs") were exercised or converted to common shares.

Outstanding TSARs may be settled in cash or common shares at the holder’s option and for purposes of calculating diluted net income (loss) per common share, the more dilutive of the cash-settled and equity-settled method is used, regardless of how the plan is accounted for. Accordingly, TSARs that are accounted for using the cash-settled method will require adjustments to the numerator and denominator if the equity-settled method is determined to have a dilutive effect on diluted net income (loss) per common share as compared to the cash-settled method. The cash-settled method was more dilutive for the three months ended March 31, 2017 , and no adjustment was required for the numerator or the denominator. For the three months ended March 31, 2016 , the equity-settled method was more dilutive and an adjustment was required for both the numerator and the denominator.

Stock options and, if calculated using the equity-settled method, TSARs are considered dilutive when the average market price of the Company’s common shares during the period disclosed exceeds the exercise price of the stock option or TSAR. For the three months ended March 31, 2017 , stock options were considered dilutive resulting in an adjustment to the denominator. For the three months ended March 31, 2016 , the Company incurred a net loss attributable to Methanex shareholders and therefore exclusion of the stock options was more dilutive.

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



	Three Months Ended
	Mar 31 2017		Mar 31 2016
Numerator for basic net income (loss) per common share	$	131,569	$	(23,398	)
Adjustment for the effect of TSARs:
Cash-settled recovery included in net income	—		1,577
Equity-settled expense	—		(1,863		)
Numerator for diluted net income (loss) per common share	$	131,569	$	(23,684	)

A reconciliation of the denominator used for the purposes of calculating diluted net income (loss) per common share is as follows:



	Three Months Ended
	Mar 31 2017	Mar 31 2016
Denominator for basic net income (loss) per common share	89,786,855	89,718,730
Effect of dilutive stock options	69,237	—
Effect of dilutive TSARs	—	49,170
Denominator for diluted net income (loss) per common share	89,856,092	89,767,900

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 9

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)


7.	Share-based compensation:


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


(i)	Outstanding units:

Information regarding units outstanding at March 31, 2017 is as follows:



	SARs			TSARs
(per share amounts in USD)	Number of Units		Weighted Average Exercise Price	Number of Units		Weighted Average Exercise Price
Outstanding at December 31, 2016	1,511,485		$42.68	2,416,111		$42.10
Granted	167,600		50.15	340,200		50.17
Exercised	(88,106	)	27.13	(118,305	)	27.17
Cancelled	(5,000	)	25.22	—		—
Outstanding at March 31, 2017	1,585,979		$44.39	2,638,006		$43.81



	Stock Options
(per share amounts in USD)	Number of Units		Weighted Average Exercise Price
Outstanding at December 31, 2016	344,767		$40.91
Granted	31,400		50.17
Exercised	(53,620	)	29.07
Cancelled	(5,200	)	55.22
Outstanding at March 31, 2017	317,347		$43.59



	Units Outstanding at March 31, 2017			Units Exercisable at March 31, 2017
Range of Exercise Prices (per share amounts in USD)	Weighted Average Remaining Contractual Life (Years)	Number of Units Outstanding	Weighted Average Exercise Price	Number of Units Exercisable	Weighted Average Exercise Price
SARs:
$25.22 to $35.51	3.93	672,260	$32.72	427,771	$31.66
$38.24 to $73.13	4.48	913,719	52.97	646,644	53.26
	4.25	1,585,979	$44.39	1,074,415	$44.66
TSARs:
$25.22 to $35.51	3.82	1,111,325	$32.75	730,980	$31.78
$38.24 to $73.13	4.52	1,526,681	51.86	1,052,538	51.91
	4.23	2,638,006	$43.81	1,783,518	$43.66
Stock options:
$25.22 to $35.51	3.64	143,350	$32.50	97,346	$31.51
$38.24 to $73.13	4.44	173,997	52.73	125,758	52.98
	4.08	317,347	$43.59	223,104	$43.61

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 10

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)


(ii)	Compensation expense related to SARs and TSARs:

Compensation expense for SARs and TSARs is measured based on their fair value and is recognized over the vesting period. Changes in fair value each period are recognized in net income for the proportion of the service that has been rendered at each reporting date. The fair value at March 31, 2017 was $47.6 million compared with the recorded liability of $41.4 million. The difference between the fair value and the recorded liability of $6.2 million will be recognized over the weighted average remaining vesting period of approximately 1.8 years. The weighted average fair value was estimated at March 31, 2017 using the Black-Scholes option pricing model.

For the three months ended March 31, 2017 , compensation expense related to SARs and TSARs included an expense in cost of sales and operating expenses of $9.1 million ( 2016 - $2.4 million). This included an expense of $6.4 million ( 2016 - recovery of $0.5 million) related to the effect of the change in the Company’s share price for the three months ended March 31, 2017 .


(iii)	Compensation expense related to stock options:

For the three months ended March 31, 2017 , compensation expense related to stock options included in cost of sales and operating expenses was $0.1 million ( 2016 - $0.2 million). The fair value of each stock option grant was estimated on the grant date using the Black-Scholes option pricing model.


b)	Deferred, restricted and performance share units:

Deferred, restricted and performance share units outstanding at March 31, 2017 are as follows:



	Number of Deferred Share Units		Number of Restricted Share Units	Number of Performances Share Units
Outstanding at December 31, 2016	251,017		18,649	572,272
Granted	6,505		8,100	163,500
Performance factor impact on redemption ¹	—		—	(102,557	)
Granted in-lieu of dividends	1,424		160	3,551
Redeemed	(13,789	)	—	(34,186	)
Cancelled	—		—	(3,967	)
Outstanding at March 31, 2017	245,157		26,909	598,613


¹	Performance share units have a feature where the ultimate number of units that vest are adjusted by a performance factor of the original grant as determined by the Company’s total shareholder return in relation to a predetermined target over the period to vesting. These units relate to performance share units redeemed in the quarter ended March 31, 2017.

Compensation expense for deferred, restricted and performance share units is measured at fair value based on the market value of the Company’s common shares and is recognized over the vesting period. Changes in fair value are recognized in net income for the proportion of the service that has been rendered at each reporting date. The fair value of deferred, restricted and performance share units at March 31, 2017 was $23.7 million compared with the recorded liability of $18.8 million. The difference between the fair value and the recorded liability of $4.9 million will be recognized over the weighted average remaining vesting period of approximately 2.0 years.

For the three months ended March 31, 2017 , compensation expense related to deferred, restricted and performance share units included in cost of sales and operating expenses was an expense of $4.1 million ( 2016 - $0.4 million). This included an expense of $3.2 million ( 2016 - recovery of $0.6 million) related to the effect of the change in the Company’s share price for the three months ended March 31, 2017 .

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 11

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)


8.	Changes in non-cash working capital:

Changes in non-cash working capital for the three months ended March 31, 2017 were as follows:



	Three Months Ended
	Mar 31 2017			Mar 31 2016
Changes in non-cash working capital:
Trade and other receivables	$	(13,973	)	$	119,756
Inventories	(70,035		)	6,809
Prepaid expenses	(2,596		)	5,551
Trade, other payables and accrued liabilities	51,671			(77,075		)
	(34,933		)	55,041
Adjustments for items not having a cash effect and working capital changes relating to taxes and interest paid	(34,424		)	(22,636		)
Changes in non-cash working capital having a cash effect	$	(69,357	)	$	32,405

These changes relate to the following activities:
Operating	$	(58,291	)	$	10,590
Financing	(3,967		)	(5,465		)
Investing	(7,099		)	27,280
Changes in non-cash working capital	$	(69,357	)	$	32,405

9. Financial instruments:

Financial instruments are either measured at amortized cost or fair value.

In the normal course of business, the Company's assets, liabilities and forecasted transactions, as reported in U.S. dollars, are impacted by various market risks including, but not limited to, natural gas prices and currency exchange rates. The time frame and manner in which the Company manages those risks varies for each item based on the Company's assessment of the risk and the available alternatives for mitigating risks.

The Company uses derivatives as part of its risk management program to mitigate variability associated with changing market values. Changes in fair value of derivative financial instruments are recorded in earnings unless the instruments are designated as cash flow hedges. The Company designates as cash flow hedges derivative financial instruments to hedge its risk exposure to fluctuations in natural gas prices and derivative financial instruments to hedge its risk exposure to fluctuations in the euro compared to the U.S. dollar.

The fair value of derivative instruments is determined based on industry-accepted valuation models using market observable inputs and are classified within Level 2 of the fair value hierarchy. The fair value of all of the Company's derivative contracts as presented in the consolidated statements of financial position are determined based on present values and the discount rates used are adjusted for credit risk. The effective portion of the changes in fair value of derivative financial instruments designated as cash flow hedges is recorded in other comprehensive income. The spot element of forward contracts in the hedging relationships is recorded in other comprehensive income as the change in fair value of cash flow hedges. The change in the fair value of the forward element of forward contracts is recorded separately in other comprehensive income as the forward element excluded from hedging relationship.

Until settled, the fair value of the derivative financial instruments will fluctuate based on changes in commodity prices or foreign currency exchange rates.

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 12

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

Natural gas forward contracts

The Company manages its exposure to changes in natural gas prices for a portion of their North American natural gas requirements by executing a number of fixed price forward contracts.

The Company has entered into forward contracts to manage its exposure to changes in natural gas prices for the Geismar 2 facility which it has designated as cash flow hedges. The Company has also entered into physical forward contracts to manage its exposure to changes in natural gas prices for the Medicine Hat facility over the period 2017 to 2022. During the first quarter of 2017, the Company has designated contracts for the 2021 and 2022 period as cash flow hedges for its highly probable forecast natural gas purchases in Medicine Hat. Other costs incurred to transport natural gas from the contracted delivery point, either Henry Hub or AECO, to the relevant production facility represent an insignificant portion of the overall underlying risk and are recognized as incurred outside of the hedging relationship.

As at March 31, 2017 , the Company had outstanding forward contracts designated as cash flow hedges with a notional amount of $494 million (December 31, 2016 - $484 million ) and a net negative fair value of $81.2 million (December 31, 2016 - $61.9 million ) included in other long-term liabilities.

Euro forward exchange contracts

The Company manages its foreign currency exposure to euro denominated sales by executing a number of forward contracts which it has designated as cash flow hedges for its highly probable forecast euro collections.

As at March 31, 2017 , the Company had outstanding forward exchange contracts designated as cash flow hedges to sell a notional amount of 126 million euros (December 31, 2016 - 92 million euros). The euro contracts had a negative fair value of $0.4 million included in current liabilities (December 31, 2016 - positive fair value $0.3 million included in current assets).

Fair value

The fair value of the Company’s derivative financial instruments as disclosed above are determined based on Bloomberg quoted market prices and confirmations received from counterparties, which are adjusted for credit risk.

The table below shows net cash flows for derivative hedging instruments, excluding credit risk adjustments, based upon contracted settlement dates. The amounts reflect the maturity profile of the hedging instruments and are subject to change based on the prevailing market rate at each of the future settlement dates. Financial asset derivative positions are held with investment-grade counterparties and therefore the settlement day risk exposure is considered to be negligible.



	Cash inflows (outflows) by term to maturity
	1 year or less		1-3 years		3-5 years		More than 5 years		Total
Natural gas forward contracts	2,399		(13,077	)	(22,618	)	(64,774	)	$	(98,070	)
Euro forward exchange contracts	(379	)	—		—		—		$	(379	)

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

Long-term debt consists of limited recourse debt facilities and unsecured notes. There is no publicly traded market for the limited recourse debt facilities. The fair value of the limited recourse debt facilities as disclosed on a recurring basis and categorized as Level 2 within the fair value hierarchy is estimated by reference to current market rates as at the reporting date. The fair value of the unsecured notes disclosed on a recurring basis and also categorized as Level 2 within the fair value hierarchy is estimated using quoted prices and yields as at the reporting date. The fair value of the Company’s long term debt will fluctuate until maturity.

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 13

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

Methanex Corporation

Quarterly History (unaudited)



	Q1 2017	2016		Q4	Q3		Q2		Q1		2015	Q4	Q3	Q2	Q1

METHANOL SALES VOLUME
(thousands of tonnes)

Methanex-produced ¹	1,756	6,828		1,750	1,860		1,689		1,529		5,050	1,372	1,238	1,203	1,237
Purchased methanol	512	1,892		526	411		533		422		2,780	636	679	813	652
Commission sales ¹	304	758		245	205		140		168		641	178	169	109	185
	2,572	9,478		2,521	2,476		2,362		2,119		8,471	2,186	2,086	2,125	2,074
METHANOL PRODUCTION
(thousands of tonnes)

New Zealand	533	2,181		536	559		577		509		1,856	412	476	487	481
Geismar (Louisiana, USA)	493	2,055		526	519		527		483		959	244	259	276	180
Trinidad (Methanex interest)	396	1,605		455	420		417		313		1,644	432	398	419	395
Egypt (50% interest)	159	293		96	69		53		75		74	58	—	8	8
Medicine Hat (Canada)	118	488		92	114		123		159		456	155	123	51	127
Chile	167	395		154	68		73		100		204	88	3	40	73
	1,866	7,017		1,859	1,749		1,770		1,639		5,193	1,389	1,259	1,281	1,264
AVERAGE REALIZED METHANOL PRICE ²
($/tonne)	365	242		278	236		223		230		322	277	323	350	337
($/gallon)	1.10	0.73		0.84	0.71		0.67		0.69		0.97	0.83	0.97	1.05	1.01

PER SHARE INFORMATION ($ per common share attributable to Methanex shareholders)
Adjusted net income (loss)	1.56	(0.17	)	0.46	(0.01	)	(0.34	)	(0.27	)	1.20	0.16	0.26	0.56	0.23
Basic net income (loss)	1.47	(0.14	)	0.28	(0.12	)	(0.03	)	(0.26	)	2.21	0.10	0.87	1.15	0.09
Diluted net income (loss)	1.46	(0.14	)	0.28	(0.12	)	(0.08	)	(0.26	)	2.01	0.10	0.54	1.15	0.09


²	Average realized price is calculated as revenue, excluding commissions earned and the Egypt non-controlling interest share of revenue, but including an amount representing our share of Atlas revenue, divided by the total sales volume of Methanex-produced and purchased methanol, but excluding Tolling Volume.

METHANEX CORPORATION 2017 FIRST QUARTER PAGE 14

QUARTERLY HISTORY (UNAUDITED)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on behalf by the undersigned, thereunto duly authorized.