Mr. Louis-Antoine Paquin reports

SNC-LAVALIN EXERCISES ITS OPTION TO SELL ITS INTEREST IN MADAGASCAR'S AMBATOVY NICKEL PROJECT

SNC-Lavalin Group Inc. has exercised its option to divest its 5-per-cent ownership interest and the balance of its loans in the Ambatovy nickel joint venture project, a laterite nickel mine operation and a hydrometallurgical processing plant in Madagascar, to Sumitomo Corp., an existing partner, for a cash consideration of approximately $600-million.

The company was initially awarded an EPCM (engineering, procurement and construction management) contract for the Ambatovy nickel and cobalt operation in 2007. The mine, the largest capital project in Madagascar's history, has a capacity to annually produce 60,000 tonnes of refined nickel, 5,600 tonnes of refined cobalt and 210,000 tonnes of ammonium sulphate fertilizer for a minimum of 29 years. On Sept. 21, 2015, the Ambatovy project achieved financial completion. Accordingly, SNC-Lavalin has chosen to exercise its put option and has received its proceeds.

"We are pleased to have been involved in building the Ambatovy operation with our joint venture partners these past seven years and helping this unique mining project achieve crucial key milestones over this time," said Robert G. Card, president and chief executive officer, SNC-Lavalin Group. "With nickel being the country's largest export, Ambatovy will continue to contribute to the country's future growth and generate long-term economic and social benefits for the people of Madagascar."

"This divestiture process is another step forward in executing our company's strategic plan to monetize certain assets within the infrastructure concession investments portfolio," said Neil Bruce, chief operating officer, SNC-Lavalin Group. "Ambatovy is a perfect example of how we successfully leveraged our operational and investment capabilities for the mining sector."