Mr. Leon Binedell reports

SHERRITT REPORTS FOURTH QUARTER AND FULL YEAR 2023 RESULTS; 2024 GUIDANCE FOR METALS OUTLINES IMPROVED PRODUCTION AND LOWER COSTS

Sherritt International Corp. has released its financial results for the three months and year ended Dec. 31, 2023, and provided its 2024 guidance. All amounts are in Canadian currency unless otherwise noted.

Leon Binedell, President and CEO of Sherritt commented, "Last year was a challenging year for the Moa JV. The nickel price fell faster and further than forecast, particularly in the second half of the year. Nickel pricing suffered from a significant over supplied market due to the conversion of Class II nickel into intermediates suitable for the electric vehicle market and even into Class I LME deliverable metal putting further downward pressure on pricing."

Mr. Binedell continued, "For our part, at the start of the year, we acknowledged that 2023 would be a transitional year at the mine; however, we had not anticipated encountering the more immediate operational issues we found ourselves facing at the mine and consequently at the refinery. Working together with our partner we successfully resolved each of these operational hurdles and we are continuing to work together to materially improve the operational performance at both facilities. In addition, in our fertilizer business, we suffered a significant outage in our ammonia plant. Despite our established multi-year capital refurbishment program, this required the advancement of significant operational spend which would otherwise be covered under our planned capital program and also led to reduced fertilizer sales. In support of our initiatives to improve operational oversight, we have changed Sherritt's operational leadership to a Chief Operating Officer with considerable experience and recent successes, including working closely with our partner in Cuba to deliver phase one of our expansion program on time and below budget.

Despite the challenges faced in 2023, we accomplished a number of objectives which further build the foundation for our future success. We delivered our technical report for the Moa JV, doubling mine life and extending it beyond 2040. We achieved growth in our power business with energy production in the fourth quarter reaching our highest quarterly production level since 2016. We successfully completed the first year of the Cobalt Swap agreement and we continued advancing the Moa JV expansion on budget and on schedule."

Commenting on managing the lower nickel price environment that is forecasted for 2024 Mr. Binedell added, "The nickel market turned quickly during the third quarter of 2023. Our established process of forecasting long-term cash flows prepared us early to implement an effective cost mitigation and cash conservation program which we expect to begin realizing the benefits from in 2024. With the support from our partner, we have optimized operating plans for 2024 and beyond and combined with the spending reductions during the third quarter and headcount reductions early this year, we are better aligned with the current nickel price environment."

In finishing his remarks, Mr. Binedell closed by saying, "Looking ahead, we will continue to proactively pursue opportunities to improve profitability and liquidity while delivering operational improvements, translating to higher production of nickel and cobalt at lower net direct cash costs. With our stronger operational outlook, we remain well positioned to take advantage of the expected long-term demand growth for the critical minerals we produce."

FOURTH QUARTER AND FULL YEAR 2023 RESULTS AND SELECTED DEVELOPMENTS

• Sherritt's share(1) of finished nickel and cobalt production in Q4 2023 at the Moa Joint Venture ("Moa JV") was 3,744 tonnes and 330 tonnes, respectively. During the quarter, Moa mixed sulphides production was impacted by heavy rainfall which required processing lower grade and quality stockpiled material. Full year 2023 finished nickel and cobalt production on a 100% basis was 28,672 tonnes and 2,876 tonnes, respectively, slightly below their annual guidance(2) ranges.
• Net direct cash cost ("NDCC")(3) was US$7.87/lb in Q4 2023. Full year 2023 NDCC(3) of US$7.22/lb was within guidance(2).
• Electricity production in Q4 2023 was 225 GWh. Full year 2023 production of 745 GWh exceeded guidance(2) due to additional gas from the two gas wells that went into production during Q2 2023 and improved equipment availability.
• Electricity unit operating cost(3) in Q4 2023 was $29.16/MWh. Full year 2023 unit operating costs(3) of $27.70/MWh was within guidance(2).
• Net loss from continuing operations of $53.4 million, or $(0.13) per share in Q4 2023 and $64.3 million, or $(0.16) per share for the full year 2023, was primarily impacted by delayed nickel sales, lower fertilizer sales volumes, lower average-realized prices(3), higher maintenance costs, inventory write-downs and an increase in rehabilitation and closure costs related to legacy Oil and Gas assets.
• Adjusted net loss from continuing operations(3), was $27.9 million or $(0.07) per share in Q4 2023 and $28.1 million or $(0.07) per share for the full year 2023.
• Adjusted EBITDA(3) in Q4 2023 was $(7.0) million and $46.2 million for full year 2023 and included $2.3 million and $14.6 million in inventory write-downs in Q4 and the full year 2023, respectively.
• Available liquidity in Canada as at December 31, 2023 was $63.0 million.
• Completed the first year of the Cobalt Swap(4) which included receipt of 2,082 tonnes of cobalt from the Moa JV which was sold by Sherritt realizing cash receipts of $80.3 million, a cash dividend of $64.0 million, and a corresponding reduction in the GNC receivable of $76.0 million.
• Slurry Preparation Plant ("SPP") construction was completed; commissioning and capacity testing is ongoing, and in January 2024, the SPP began processing ore at design capacity. The overall timing and budget of phase two to reach target levels of production remains unchanged and is on schedule for an expected end of year 2024 completion with commissioning and ramp up in 2025.

(1) References to "Sherritt's Share" is consistent with the Corporation's definition of reportable segments for financial statement purposes. Sherritt's Share of "Metals" includes the Corporation's 50% interest in the Moa JV, its 100% interest in the utility and fertilizer operations in Fort Saskatchewan ("Fort Site") and its 100% interests in subsidiaries established to buy, market and sell certain of the Moa JV's nickel and cobalt production and the Corporation's cobalt inventory received under the Cobalt Swap agreement ("Metals Marketing"). Sherritt's Share of Power includes the Corporation's 33*1/3*% interest in Energas S.A. ("Energas"). References to Technologies and Oil and Gas includes the Corporation's 100% interest in these businesses. References to Fort Site directly is to the Corporation's interest in its 100% interest in the utility and fertilizer operations.

(2) "Guidance" refers to 2023 guidance as most recently disclosed in the Corporation's Management Discussion and Analysis for the three and nine months ended September 30, 2023; for additional information see the Outlook section.

(3) Non-GAAP financial measures. In Q4 2023, Sherritt revised its definitions of combined revenue, adjusted net (loss) earnings from continuing operations and adjusted EBITDA to exclude the financial results of its Oil and Gas segment as the segment is not currently exploring for or producing oil and gas and its financial results relate to ancillary drilling services provided to a customer and CUPET and environmental rehabilitation costs for legacy assets, which are not reflective of the Corporation's core operating activities or revenue generation potential. Prior period comparative amounts have been adjusted accordingly. For additional information see the Non-GAAP and other financial measures section of this press release.

(4) For additional information on the Cobalt Swap, see Note 12 - Advances, loans receivable and other financial assets of the consolidated financial statements for the year ended December 31, 2023.

2024 ANNUAL GUIDANCE

Nickel and cobalt production are both expected to increase in 2024 compared to 2023 due to increased feed of mixed sulphides from the Moa mine site to the refinery as a result of access to additional ore sources to improve the blend of feed as well as increased quality and feed rates following the ramp-up of the SPP, and reduced downtime from maintenance. NDCC(1) is expected to be lower in 2024 compared to 2023 due to lower expected maintenance activity, cost optimization, and higher expected production and sales, including increased fertilizer by-product sales.

Electricity production is expected to be higher in 2024 compared to 2023 primarily due to the full year receipt of additional gas from the two wells that went into production in Q2 2023. Unit operating cost(1) for electricity in 2024 reflects higher planned maintenance activities related to gas turbines, partly offset by the impact of higher electricity production and sales.

Production and costs:

• finished nickel production of 30,000 to 32,000 tonnes (100% basis);
• finished cobalt production of 3,100 to 3,400 tonnes (100% basis);
• NDCC(1) of US$5.50 to US$6.00 per pound of nickel sold;
• electricity production of 775 to 825 GWh (33*1/3*% basis); and
• electricity unit operating cost(1) of $32.50 to $34.00 per MWh.

Spending on capital(1):

• sustaining: Metals (Moa JV 50% basis, Fort Site 100% basis) of $40.0 million;
• sustaining: Power (33*1/3*% basis) of $5.5 million; and
• growth: Metals (Moa JV 50% basis) of $15.0 million.

(1) Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release.

DEVELOPMENTS SUBSEQUENT TO THE QUARTER

Subsequent to the quarter end:

As announced January 15, 2024, Sherritt implemented an organization-wide restructuring and cost-cutting program following a robust internal review conducted during the second half of 2023 to improve operational performance and respond to current market conditions. The changes include:

• consolidated executive oversight over operations into a single role and appointed Elvin Saruk as Chief Operating Officer;
• streamlined the Metals division to deliver value in the near-term while ensuring safe and effective operations;
• restructured Technologies to a reduced scale in line with a narrower focus to deliver essential support and enhancements to internal operations and business development opportunities to expand midstream processing capacity of critical minerals for the electric vehicle supply chain; and
• reduced the Corporation's Canadian operations headcount by approximately 10%, with annualized employee cost savings of $13.0 million expected to be realized.

The Moa JV signed a sales agreement for nickel deliveries in 2024 with a $20 million prepayment expected to be received in early February, improving available liquidity.

As a result of lower realized commodity prices and lower nickel sales volumes over the second half of 2023, coupled with an expected lower pricing environment in the near term, Sherritt continued its prudent approach to managing its liquidity and elected not to pay cash interest due in January 2024 of $3.4 million and added the payment-in-kind interest to the principal amount owed to noteholders on its 10.75% unsecured PIK option notes ("PIK notes").

Cash and cash equivalents as at December 31, 2023 were $119.1 million, down from $120.4 million as at September 30, 2023. During Q4 2023, Sherritt drew an additional $40.0 million on its revolving credit facility of which $15.0 million was advanced to the Moa JV for short-term working capital purposes and received $4.0 million proceeds from operating activities from Fort Site including the impact of receipts from fertilizer pre-sales and timing of working capital payments. These amounts were offset primarily by payments of $5.5 million for property, plant and equipment, $9.4 million for interest on the 8.5% second lien secured notes ("Second Lien Notes"), and $4.2 million on rehabilitation and closure costs related to legacy Oil and Gas Spain assets.

On a full year basis, cash and cash equivalents as at December 31, 2023 were down slightly from $123.9 million as at December 31, 2022. During 2023, Sherritt received $80.3 million from the sale of cobalt to third parties and $64.0 million as a top-up cash dividend under the Cobalt Swap. In addition, Sherritt drew a net $13.0 million on its revolving credit facility, repaying $17.0 million related to repurchasing notes in the prior year and advancing $30.0 million to the Moa JV for short-term working capital purposes. Significant cash payments during the year included $24.9 million for share-based compensation; $18.8 million for interest on the Second Lien Notes, $20.1 million for property, plant and equipment, $7.8 million for the repurchase of PIK notes at a discount, and $5.9 million on rehabilitation and closure costs related to legacy Oil and Gas Spain assets. In addition, Energas paid $14.8 million (33*1/3* basis) to GNC in the year, in Cuban pesos, in accordance with the Cobalt Swap.

As at December 31, 2023, total available liquidity in Canada, which is composed of cash and cash equivalents in Canada and available credit facilities of $41.5 million was $63.0 million compared to $104.2 million as at September 30, 2023 and $74.8 million as at December 31, 2022.

Subsequent to quarter end, the Moa JV signed a sales agreement for nickel deliveries in 2024 with a $20 million prepayment expected to be received in early February, improving available liquidity.

Advances to the Moa JV are interest bearing, at the Corporation's borrowing rates, and are expected to be repaid during the first half of 2024. Sherritt does not expect to advance further amounts to the Moa JV in 2024. Upon repayment of the amounts outstanding by the Moa JV, and subject to the Moa JV's available liquidity to support operations and expected liquidity requirements, the joint venture will be eligible to commence payment of cobalt dividends pursuant to the Cobalt Swap. At current spot nickel prices, and given the prioritization of the joint venture to repay its outstanding advances, the Corporation expects that under the Cobalt Swap the cobalt dividends anticipated to commence in the second half the year will not meet the annual maximum amount in 2024. As previously disclosed and as defined by the agreement, any short fall in the annual minimum payment amount will be added to the following year.

At the Second Lien Note interest payment date in October 2023, the Corporation was not required to make a mandatory redemption of Second Lien Notes for the two-quarter period ended June 30, 2023 as it did not meet the minimum liquidity threshold as defined in the indenture agreement. For the two-quarter period ended December 31, 2023, the Corporation did not have Excess Cash Flow as defined in the Second Lien Notes indenture agreement and, therefore, will not be required to make a mandatory redemption with its April 2024 interest payment.

REVIEW OF OPERATIONS

Metals

Challenging market conditions accelerated in the fourth quarter 2023 through lower demand and reference prices for nickel. Despite management actions taken to reduce costs and protect margins, unplanned maintenance challenges and lower production due to lower ore grades and poor quality ore sources available negated these efforts, negatively impacting operating cost and margins that ultimately contributed to an adjusted EBITDA(1) of $(8.7) million which also included the impacts of $2.3 million in inventory write-downs. During 2023, in addition to the unplanned maintenance to the ammonia plant in the third and fourth quarters, the Fort Site experienced higher than normal maintenance costs, in part due to the planned biannual acid plant shutdown, which identified a larger than anticipated remedial scope of work. This maintenance work has since been completed and production has returned to levels in line with historical performance.

In further response to expected lower pricing commodity market conditions, subsequent to the year end the Corporation streamlined its Metals business unit to improve operating margins in the near-term while ensuring safe and effective operations by reducing senior management costs, operating headcount and non-essential expenditures. Additional operational improvements are expected to further enhance the performance of Metals going forward. Phase one of the Moa expansion is complete and following its ramp-up, 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. As outlined in its 2024 guidance for NDCC(1) of US$5.50 - US$6.00 per pound of nickel sold, the Corporation expects through the implemented changes, a meaningful improvement to be realized in costs and operating margins going forward.

Finished nickel revenue for the three months and year ended December 31, 2023 was $84.1 million and $379.6 million down from $153.8 million and $522.8 million, respectively, in the prior year periods primarily as result of lower average-realized prices(1) and lower sales volumes for nickel in each of the current year periods. Average-realized nickel prices(1) were 30% and 11% lower, respectively, in the current year periods.

Finished nickel sales volumes for the three months and year ended December 31, 2023 were 3,511 tonnes and 12,888 tonnes down from 4,486 tonnes and 15,879 tonnes, respectively, in the prior year periods. During Q4 2023, finished nickel sales volumes were in line with finished nickel production volumes with sales volumes improving from Q3 2023. Finished nickel sales volumes during the full year 2023 were lower than finished nickel production volumes due to lower demand for nickel from steel mills after mid-year shutdowns, lower finished metal purchasing in Asia as mixed hydroxide precipitate ("MHP") and matte intermediate availability increased and customers delayed purchases to reduce inventories and their holding and financing costs and sought better prices in a falling price environment. All of this resulted in higher than anticipated inventory build-up at the end of 2023. This inventory is expected to be reduced over the course of 2024.

Finished cobalt revenue, including cobalt sold by Sherritt under the Cobalt Swap and Sherritt's 50% share of cobalt sold by the Moa JV, for the three months and year ended December 31, 2023 was $15.2 million and $104.8 million compared to $22.0 million and $104.2 million, respectively, in the prior year periods. While sales volumes of 399 tonnes and 2,720 tonnes in the current year periods were 3% and 97% higher, respectively, revenue was impacted by 33% and 49% lower average-realized prices(1) in the current year periods, respectively.

Cobalt sales volumes based on Sherritt's 50% share were 375 tonnes in Q4 2023 compared to 386 tonnes in Q4 2022 and 1,692 tonnes for the year ended December 31, 2023 compared to 1,379 tonnes for the prior year. Lower sales in Q4 2023 reflected the impact of lower production. For the full year period, a general improvement in demand in the second and third quarters reflected increased purchases as consumers took the opportunity to restock inventories as prices stabilized at relative lows in the recent price cycle. During this period, Sherritt was able to increase its customer base and reduce its inventory to more typical levels.

Fertilizer revenue for the three months and year ended December 31, 2023 was $23.1 million and $93.3 million compared to $39.9 million and $129.5 million, respectively, in the prior year periods. Sales volumes for the three months ended December 31, 2023 were 10% lower than the prior year period due to the unplanned maintenance earlier in the year which resulted in lower ammonia production and lower fertilizer availability during the fall shipping season. Sales volumes for the full year ended December 31, 2023 were relatively unchanged compared to the prior year. Average-realized prices(1) in the current year periods were 36% and 28% lower compared to the prior year periods, respectively.

Mixed sulphides production at the Moa JV for the three months and year ended December 31, 2023 was 3,514 tonnes and 15,084 tonnes, down 12% and 7%, respectively, from the prior year periods. In Q4 2023, mixed sulphides production was impacted by heavy rainfall which required processing lower grade and quality stockpiled materials. Logistical delays in the delivery of purchased sulphuric acid required during planned sulphuric acid plant maintenance resulted in ore processing reductions at the end of the third quarter and into the early part of the fourth quarter. As well, for the full year 2023, production was impacted by maintenance on the ore thickener and hydrogen plant, lower ore grades and ore blending challenges in the first half of the year, all of which have since been resolved.

Finished nickel production for the three months and year ended December 31, 2023 was 3,744 tonnes and 14,336 tonnes, down from 4,112 tonnes and 16,134 tonnes, respectively, in the prior year periods primarily as a result of lower mixed sulphides feed availability at the refinery. This feed shortfall was partly offset by the higher third-party feed processed in the fourth quarter.

Finished cobalt production for the three months and year ended December 31, 2023 was 330 tonnes and 1,438 tonnes down from 423 tonnes and 1,684 tonnes, respectively, in the prior year periods as a result of lower mixed sulphides feed availability at the refinery.

Full year 2023 finished nickel and finished cobalt production were slightly below their respective guidance(2) ranges for the year.

Fertilizer production for the three months and year ended December 31, 2023 of 61,092 tonnes and 219,707 tonnes was 2% lower and 12% lower, respectively, compared to prior year periods in line with lower metals production and the impact of reduced ammonia plant availability resulting from unplanned maintenance during the current year. Ammonia production returned to normal in Q4.

Mining, processing and refining ("MPR") costs per pound of nickel sold ("MPR/lb"), which includes Sherritt's share of cost of Cobalt Swap and Moa JV cobalt sold, for the three months ended December 31, 2023 was down 16% compared to Q4 2022 as a result of lower input commodity prices, including a 56% decrease in global sulphur prices, a 45% decrease natural gas prices, a 13% decrease in diesel prices, and a 7% decrease in fuel oil prices and the increased ratio of third-party feed to Moa mine feed, partly offset by higher maintenance costs and lower nickel production and sales volumes in the current year period. For the year ended December 31, 2023, MPR/lb was 4% higher than in the prior year as a result of lower nickel production and sales volumes in the current year, higher maintenance costs, and the cost associated with the higher cobalt sales volume, partly offset by lower input commodity prices. For the year ended December 31, 2023, global sulphur, natural gas, diesel and fuel oil prices decreased 49%, 46% and 3% and 14% respectively.

NDCC(1) per pound of nickel sold for the three months ended December 31, 2023 increased to US$7.87/lb from US$7.00/lb in the prior year as lower MPR/lb were offset by higher third-party feed costs and lower fertilizer and cobalt by-product credits(3). Higher MPR/lb for the year ended December 31, 2023, as discussed above, coupled with lower fertilizer and cobalt by-product credits resulted in a higher NDCC(1) of US$7.22/lb compared to US$5.14/lb for the prior year. Lower net fertilizer by-product credits in both current year periods reflected lower production and sales, lower realized prices, as well as higher maintenance costs. In both current year periods, NDCC(1) reflected the impact of lower nickel sales volumes. Annual NDCC per pound of nickel sold was within the guidance(2) range for the year.

Sustaining spending on capital(1) for the three months and year ended December 31, 2023 was $19.0 million and $51.3 million, compared to $22.3 million and $66.7 million, respectively, in the prior year periods primarily due to timing of planned spending at both the Moa JV and Fort Site. Sherritt took a prudent approach and reduced its sustaining spending on capital(1) guidance(2) in Q3 2023 to conserve liquidity in response to the current market conditions. Annual sustaining spending(1) on capital was in line with guidance(2) for the year.

Growth spending on capital(1) for the three months and year ended December 31, 2023 was $2.3 million and $11.4 million, compared to $4.4 million and $7.4 million, respectively, in the prior year periods, most of which was related to spending on the SPP and Sixth Leach Train as part of the Moa JV expansion program in each of the current year periods. Annual growth spending on capital was below guidance(2) for the year and related to the timing of spending for non-critical path items. The project timing and overall budget remains unchanged.

In Q1 2023, the Moa JV released its National Instrument 43-101 Technical Report which indicates that the current reserves estimates, without the current expansion impact, are sufficient to extend the life of mine 14 years to 2048.

(1) Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release.

(2) "Guidance" refers to 2023 guidance as most recently disclosed in the Corporation's Management Discussion and Analysis for the three and nine months ended September 30, 2023; for additional information see the Outlook section.

(3) Cobalt by-product credits include Sherritt's share of cobalt revenue per pound of nickel sold only.

Moa JV expansion program update

The Moa JV expansion program was specifically designed to minimize the risks of capital overruns and project delays which were anticipated following the COVID-19 pandemic. This low cost and low capital intensity two-phase expansion program remains on budget and on schedule. Phase one of the expansion, the SPP, is expected to reduce ore haulage distances, lower carbon intensity from mining and increase annual MSP production of contained nickel and cobalt through increased throughput over the mine's long life. With completion of phase two of the expansion, the Processing Plant, annual MSP production is targeted to increase by 6,500 tonnes of contained nickel and cobalt (100% 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.

The Moa JV continued to advance the expansion program at the mine site. Progress included:

SPP:

• Construction of the SPP was completed under budget; commissioning and capacity testing is ongoing, and in January 2024 the SPP began processing ore at design capacity.

Processing Plant:

• Civil construction and structural erection is ongoing on those areas not completed in the prior expansion. Some of the long-lead items will be delivered in Q1 2024 for the Sixth Leah Train which will allow mechanical construction to commence in Q2 2024; and
• engineering for the Fifth Sulphide Precipitation Train has been completed and ordering of equipment and materials will commence in 2024.

In response to the current lower nickel price environment, the joint venture optimized the timing of certain capital spending items shifting some phase two spending to beyond 2024. This deferral is not expected to impact the timing of the ramp up of MSP production from the expansion.

The overall timing and budget to reach target production remains unchanged and is on schedule for an expected end of year 2024 completion with commissioning and ramp up in 2025.

Power

Revenue for the three months and year ended December 31, 2023 was $14.0 million and $47.1 million, respectively, increasing 33% and 27% compared to the prior year periods primarily due to higher production from increased available gas.

Electricity production for the three months and year ended December 31, 2023 was 225 GWh and 745 GWh compared to 159 GWh and 568 GWh, respectively, in the prior year periods. Production increased sequentially throughout the year with electricity production during the fourth quarter reaching the highest level of quarterly production since 2016 resulting in overall annual production exceeding guidance(2) for the year. The increase in electricity production in the current year periods is a result of additional gas from two gas wells that went into production in the second quarter of 2023 and increased equipment availability following planned maintenance to facilitate increased utilisation of the facilities. The gas is provided to Energas free of charge by Union Cubapetroleo ("CUPET") for use in power generation. Opportunities to further increase gas supply for additional power production in 2024 continue to be pursued.

Unit operating costs(1) for the three months and year ended December 31, 2023 were $29.16/MWh, and $27.70/MWh, compared to $21.41/MWh, and $19.39/MWh, respectively, for the prior year periods an increase primarily driven by the timing of planned maintenance activities, partly offset by higher sales volumes. Unit operating costs(1) for 2023 were within guidance(2).

Sustaining spending on capital(1) for the three months and year ended December 31, 2023 was $1.3 million and $3.2 million, respectively, primarily driven by maintenance activities. Spending on capital(1) for 2023 was below guidance(2).

During 2023, Sherritt received $1.4 million of dividends from Energas in Canada and expects dividends to increase in 2024.

(1) Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release.

(2) "Guidance" refers to 2023 guidance as most recently disclosed in the Corporation's Management Discussion and Analysis for the three and nine months ended September 30, 2023; for additional information see the Outlook section.

Technologies

During the three months ended December 31, 2023, Technologies:

• continued to advance development of strategic growth opportunities for Sherritt, provide technical support, process optimization and technology development services to the Moa JV and the Fort Site and support the Moa JV's expansion program;
• continued to progress near-term partnerships and development opportunities to expand midstream processing capacity of critical minerals for the electric vehicle supply chain;
• completed the continuous pilot test of the on-going MHP test program, which is supported by a funding commitment from Natural Resources Canada (NRCan), as part of Sherritt's strategic objective for expanding midstream processing capacity;
• advanced its venture analysis, flowsheet enhancements, and batch test work related to its next-generation laterite ("NGL") processing technology to support discussions with external parties; and
• continued to progress on commercialization activities around proprietary technologies and innovative industry solutions.

Subsequent to the quarter-end, Technologies was restructured to reduce headcount, including management, and decrease costs 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 midstream 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.

OUTLOOK

Metals

Nickel and cobalt production are both expected to increase in 2024 compared to 2023 due to increased feed of mixed sulphides from the Moa mine site to the refinery as a result of access to additional ore sources to improve the blend of feed as well as increased quality and feed rates following the ramp-up of the SPP, and reduced downtime from maintenance.

NDCC(1) is expected to be lower in 2024 compared to 2023 due to lower expected maintenance activity, cost optimization, and higher expected production and sales, including increased fertilizer by-product sales. NDCC(1) includes by-product credits and input commodities that are subject to considerable change given the volatility of cobalt, fertilizers, sulphur, diesel and fuel prices. NDCC(1) guidance for 2024 is based on a forecast cobalt reference price of US$15.50 per pound and forecast sulphur price of US$170.00 per tonne including freight and handling.

Sustaining spending on capital(1) of $40.0 million is primarily for tailings management, infrastructure, and the replacement of equipment at the Moa JV. A portion of these costs are expected to be financed by the Moa JV or Sherritt in the case of Fort Site costs.

Growth spending on capital(1) of $15.0 million is primarily for the continued construction of phase two of the expansion program at the Moa JV.

Power

Electricity production is expected to be higher in 2024 compared to 2023 primarily due to the full year receipt of additional gas from the two wells that went into production in Q2 2023. Sherritt continues to look for opportunities with its Cuban partner to increase the amount of gas available for electricity production.

Unit operating cost(2) for electricity in 2024 reflects higher planned maintenance activities related to gas turbines, partly offset by the impact of higher electricity production and sales.

Sustaining spending on capital(1) of $5.5 million at Power is primarily for maintenance and equipment purchases.

(1) Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release.

CONFERENCE CALL AND WEBCAST

Sherritt will hold its conference call and webcast February 8, 2024 at 10:00 a.m. Eastern Time to review its fourth quarter and full year 2023 results. Dial-in and webcast details are as follows:

• North American callers, please dial: 1 (800) 717-1738
• Passcode: 78950
• International callers, please dial: 1 (289) 514-5100
• Passcode: 78950
• Live webcast: see company's website

Please dial in 15 minutes before the start of the call to secure a line. Alternatively, listeners can access the conference call and presentation via 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 consolidated financial statements and MD&A for the year ended December 31, 2023 are available on the company's website and should be read in conjunction with this news release. Financial and operating data can also be viewed in the investor relations section of Sherritt's website or on SEDAR.

ABOUT SHERRITT INTERNATIONAL CORPORATION

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% or 6,500 tonnes of contained nickel and cobalt (100% basis). The Corporation's Power division, through its ownership in Energas S.A., is the largest independent energy producer in Cuba with installed electrical generating capacity of 506 MW, representing approximately 10% of the national electrical generating capacity in Cuba. The Energas facilities are comprised of 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".

We seek Safe Harbor.