Mr. Leon Binedell reports

SHERRITT REPORTS THIRD QUARTER 2023 RESULTS

Sherritt International Corp. has released its financial results for the three and nine months ended Sept. 30, 2023.

"We are pleased with the progress of our Moa expansion project. The project remains on track, and we expect reliable ore flows to the Moa plant with the completion of phase 1 early next year. Once the full expansion is complete, we expect to achieve higher production levels from 2025 onwards, benefiting us over a mine life that exceeds 20 years," said Leon Binedell, president and chief executive officer of Sherritt.

Mr. Binedell continued: "While we were successful advancing our expansion project, the third quarter was one marked by challenges. Market conditions softened, particularly for nickel, and we faced a number of concurrent production challenges related to adverse weather, supply chain logistics and unplanned maintenance. Our team responded effectively to reduce the impacts to our operations and largely resolved the maintenance outages by the end of the quarter. Despite the near-term headwinds in [electric vehicle] adoption and slower-than-expected supply chain development, we remain encouraged on our long-term outlook with the energy transition set to drive significant demand for the critical minerals we produce, which aligns well with the timing of our expansion."

Selected third quarter 2023 developments:

• Sold approximately 97 per cent of the total 2,082 tonnes of cobalt received under the cobalt swap agreement; remaining cobalt expected to be sold and all cash to be received by end of year;
• Available liquidity in Canada was $104.2-million;
• Sherritt's share of finished nickel and cobalt production at the Moa joint venture was 3,841 tonnes and 410 tonnes compared with 4,443 tonnes and 419 tonnes in Q3 2022, respectively;
• Finished nickel sales volumes were lower than the prior-year period and finished production volumes in the current quarter primarily due to lower demand for nickel from steel mills after summer shutdowns and delayed sales by customers; higher mixed hydroxide precipitate and matte intermediate availability also led to lower metal purchasing in Asia;
• Net direct cash cost was $7.24 (U.S.) per pound compared with $6.76 (U.S.) per pound in Q3 2022 primarily due to the impact of lower nickel sales volumes, lower fertilizer byproduct credits and higher maintenance costs, partly offset by higher cobalt byproduct credits;
• Power production increased by 37 per cent compared with Q3 2022 primarily from the receipt of gas from two wells that went into production in the second quarter and improved equipment availability;
• Net loss from continuing operations was $24.8-million, or six cents per share, in Q3 2023, compared with a net loss from continuing operations of $26.9-million, or seven cents per share, in Q3 2022;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was ($9.1-million) compared with $37.4-million in Q3 2022 primarily as a result of delayed nickel sales, lower fertilizer sales volumes, and lower cobalt and fertilizer average realized prices; adjusted EBITDA includes an $8.9-million writedown of fertilizer inventory and a $5.8-million increase in environmental rehabilitation obligations on legacy oil and gas Spanish assets;
• Based on its results to date, Sherritt has provided updates to its 2023 guidance.

Conference call and webcast

Sherritt will hold its conference call and webcast Nov. 2, 2023, at 10 a.m. Eastern Time, to review its Q3 2023 results. Dial-in and webcast details are as follows.

North American callers, please dial 1-888-886-7786,

Passcode:  79249342

International callers, please dial 1-416-764-8658.

Passcode:  79249342

Live webcast:  at the Sherritt website

Please dial in 15 minutes before the start of the call to secure a line. Alternatively, listeners can listen to the conference call and presentation through the webcast available on Sherritt's website.

An archive of the webcast and replay of the conference call will also be available on the website.

Financial statements and management's discussion and analysis

Sherritt's condensed consolidated financial statements and MD&A for the three and nine months ended Sept. 30, 2023, are available at the Sherritt website and should be read in conjunction with this news release. Financial and operating data can also viewed in the investor relations section of Sherritt's website on SEDAR+.

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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