Mr. Leon Binedell reports

SHERRITT ANNOUNCES COST-CUTTING INITIATIVES AND CHANGES TO EXECUTIVE MANAGEMENT, REPORTS 2023 PRODUCTION RESULTS

In line with Sherritt International Corp.'s continuing commitment to cost optimization, the need to improve operations and in response to market conditions, a number of organization-wide cost-cutting initiatives and changes to its executive management have been completed, resulting in a more cost-efficient and adaptable organization anchored in delivering value through its core businesses while retaining expertise and capabilities to pursue future growth opportunities spurred by the energy transition. Further, Sherritt has provided an update on its fourth-quarter and full-year 2023 production results, and its expansion program at the Moa joint venture (Moa JV).

Corporate restructuring

During the second half of 2023, the corporation conducted an in-depth internal review, which identified its metals and technologies divisions as primary opportunities to optimize through restructuring. Metals has been streamlined to deliver value in the near term while ensuring safe and effective operations. Technologies has been restructured to a reduced scale in line with a narrower focus to deliver essential support and enhancements to internal operations and business development. Business development will primarily focus on near-term partnerships and development opportunities to expand mid-stream processing capacity of critical minerals for the electric vehicle supply chain, which Sherritt has been working to advance given its differentiated and specialized technical expertise in hydrometallurgical processing. As a result of the changes made, the work force across the corporation's Canadian operations is being reduced by approximately 10 per cent, with annual employee cost savings of $13-million expected to be realized.

To align with this restructuring, the corporation is announcing changes to its executive management team to consolidate operational leadership with the appointment of Elvin Saruk as chief operating officer, responsible for leading both Sherritt's metals, and power and oil and gas divisions. Mr. Saruk has more than 30 years of experience with Sherritt, including at the senior-executive level managing large-scale operations, overseeing complex high-pressure acid leach (HPAL) mining and processing projects, and strengthening partner relations while overseeing operations in Cuba. Prior to this appointment, Mr. Saruk was senior vice-president, oil and gas and power, and head of growth projects, most recently responsible for leading the Moa joint venture's expansion program and growing production at the corporation's power division during 2023. Along with this change, Dan Rusnell, senior vice-president, metals, has left the organization.

"We would like to thank Dan for his years of service and valuable contributions to Sherritt. We wish him the very best in the future," said Leon Binedell, president and chief executive officer of Sherritt.

Mr. Binedell continued: "Our comprehensive, organization-wide restructuring and cost-cutting program is the outcome of a robust internal assessment, and a necessary endeavour to improve metals operations following a disappointing 2023 and reduce non-essential expenditures in the currently depressed metal price environment, which Sherritt has extensive experience navigating. As a result of our cost-cutting program, we have had to make the difficult decision to reduce head count across the organization, and we would like to express our sincere gratitude to all affected employees for their dedication and the contributions they have made."

Mr. Binedell added: "We are pleased to announce Elvin's appointment as chief operating officer, expanding his responsibilities and building off the momentum he has achieved in successfully advancing the Moa joint venture's expansion program, and significantly increasing electricity production in our power division. We look forward to the value Elvin will deliver in his expanded role.

"Today's announcement reflects our objectives to respond to market realities and pro-actively pursue opportunities, including optimizing costs, improving profitability and liquidity, and growth opportunities to enhance and diversify our business."

Metals

Full-year 2023 finished nickel and finished cobalt production were slightly below their respective revised annual guidance ranges as a result of fourth quarter production being impacted by lower availability of Moa mixed sulphides due to heavier-than-normal rainfalls requiring processing of lower-grade and quality stockpiled materials. Full-year 2023 metals net direct cash costs (NDCC) (1) per pound of nickel sold are expected to be within the previously disclosed guidance range.

Power

Full-year 2023 electricity production exceeded revised guidance. Unit operating costs (1) are expected to be within the previously disclosed guidance range.

Sherritt expects to report its full operational and financial results for the fourth quarter and year ended Dec. 31, 2023, on Feb. 7, 2024, after market close. The corporation's 2024 guidance for production, NDCC, unit operating costs (1) and spending on capital (1) will also be provided with year-end 2023 results and will incorporate the restructuring changes to the corporation outlined above.

Expansion advancing on budget and on schedule

Sherritt's low-cost and low-capital-intensity, two-phase Moa JV expansion program remains on budget and on schedule. The slurry preparation plant (SPP) is mechanically complete, and precommissioning is continuing, with ore feed to the plant expected to commence later in January. Phase one of the expansion is expected to reduce ore haulage distances, lower carbon intensity from mining, and increase annual mixed sulphide precipitate (MSP) production of contained nickel and cobalt through increased throughput over the mine's long life. With the completion of phase two of the Moa expansion, annual MSP production is targeted to increase by 6,500 tonnes of contained nickel and cobalt (100-per-cent basis), and is expected to fill the refinery to nameplate capacity to maximize profitability from the joint venture's own mine feed, displacing lower-margin third party feeds, and increasing overall finished nickel and cobalt production.

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 25 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 comprise two combined cycle plants that produce low-cost electricity from one of the lowest-carbon-emitting sources of power in Cuba. Sherritt's common shares are listed on the Toronto Stock Exchange under the symbol S.

(1) Non-GAAP (generally accepted accounting principles) and other financial measures

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