Mr. Leon Binedell reports

SHERRITT RECEIVES FINAL 2023 COBALT DIVIDEND AND $64 MILLION CASH TOP-UP DIVIDEND UNDER ITS COBALT SWAP AGREEMENT

Sherritt International Corp. has confirmed that it has received the 2023 annual maximum volume of cobalt dividends and a $64-million cash top-up dividend, fully satisfying its Cuban partner's current-year obligation owed to Sherritt under the cobalt swap agreement. In addition, Sherritt intends to pay cash interest on its 10.75 per cent unsecured PIK option notes due 2029 in settlement of its July, 2023, interest payment.

"We are pleased with the success of the cobalt swap agreement, and as a testament to the strong working relationship we have with our Cuban partners, the first year's obligations under the agreement have been met before midyear," said Leon Binedell, president and chief executive officer of Sherritt. "The cash received from the ongoing sales of cobalt and the top-up dividend provides significant liquidity to assist in advancing our strategic priorities and supports our intention to pay cash interest on our junior PIK notes commencing with our July, 2023, payment."

Mr. Binedell continued, "Additionally, this achievement reinforces our confidence that we will receive the full benefit of the cobalt swap over the next four years, providing significant liquidity in excess of our second-lien notes maturing in November, 2026."

In June, 2023, the Moa joint venture approved the final cobalt dividend required to fulfill the 2,082-tonne annual maximum volume of cobalt receivable under the cobalt swap agreement. As the total in-kind value of cobalt received under the agreement did not meet the annual dollar minimum of $114-million (U.S.) ($57-million (U.S.) per partner), the Moa JV also distributed a cash dividend of $48.5-million (U.S.) ($64-million). Sherritt continues to sell the cobalt received under the cobalt swap to third parties, and expects to sell the remaining cobalt and realize all cash receipts on the sales before the end of the year.

General Nickel Company (GNC) has fulfilled its first year's obligation under the five-year cobalt swap agreement with the redirection of its 50-per-cent share of the cobalt and cash dividends collectively amounting to $57-million (U.S.) ($76-million) to Sherritt as payment against the GNC receivable.

With receipt of the cash top-up dividend, and cash receipts expected from continuing sales of cobalt, Sherritt intends to make a cash payment of its semi-annual interest on its junior PIK notes at the end of July, 2023. Satisfying the junior PIK note interest in cash, rather than payment in kind, is a key step in providing Sherritt with the ability to provide returns to equity holders.

Sherritt is confident that it will receive its maximum cobalt volume of 2,082 tonnes and any cash top-up dividends required to ensure a total minimum of $114-million (U.S.) (100-per-cent basis) in each of the next four years. The receipt of the remaining dividends will provide significant cash flow to deliver on strategic priorities, including reducing debt and facilitating returns to equity holders. Sherritt expects to receive three of the four remaining annual total cobalt swap dividends ($342-million (U.S.), approximately $450-million) ahead of the maturity of its second=lien notes in November, 2026 ($221.3-million as at March 31, 2023).

With the completion of the current-year obligations under the cobalt swap, any further dividends from the Moa JV in 2023 will be distributed in cash to each partner equally.

About Sherritt International Corp.

Sherritt is a world leader in using hydrometallurgical processes to mine and refine nickel and cobalt -- metals deemed critical for the energy transition. Sherritt's Moa joint venture has a current estimated mine life of 26 years, and has embarked on an expansion program focused on increasing annual mixed sulphide precipitate production by 20 per cent or 6,500 tonnes of contained nickel and cobalt (100-per-cent basis). The corporation's power division, through its ownership in Energas SA, is the largest independent energy producer in Cuba with installed electrical generating capacity of 506 megawatts, representing approximately 10 per cent of the national electrical generating capacity in Cuba. The Energas facilities are composed of two combined cycle plants that produce low-cost electricity from one of the lowest-carbon-emitting sources of power in Cuba. Additionally, its technologies group creates innovative, proprietary solutions for natural-resource-based industries around the world to improve environmental performance and increase economic value. Sherritt's common shares are listed on the Toronto Stock Exchange under the symbol S.

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