Mr. Tom Halton reports

SHERRITT AND PALA ANNOUNCE BOARD RENEWAL AND COLLABORATION AGREEMENT

Sherritt International Corp. has entered into a collaboration agreement with Pala Assets Holdings Ltd. Under the terms of the agreement, Pala has withdrawn its requisition for a special meeting of shareholders, agreed to customary standstill and voting covenants, and Sherritt has made certain board and committee changes that will support the leadership transition and execution of strategy.

The agreement provides that Pala will observe a standstill through Jan. 1, 2027. During the standstill period, Pala may increase its beneficial ownership to, but not above, 9.99 per cent of Sherritt's issued and outstanding common shares, and will have customary pre-emptive rights to maintain its ownership percentage for so long as it continues to beneficially own at least 5 per cent of the corporation's common shares. The standstill does not restrict the exercise of Pala's rights under the put/call rights agreement dated April 17, 2025, between Sherritt and Pala. Pala has agreed to vote in favour of the corporation's board slate at the 2026 annual meeting and at any other shareholder meetings involving the election of directors prior to Jan. 1, 2027.

To support the appointment of a permanent chief executive officer, the board of directors of Sherritt will comprise no more than eight directors until Jan. 1, 2027. Effective immediately, Shelley Brown has stepped down from the board and Brett Richards has been appointed to fill the resulting vacancy. The board will reconstitute the CEO search committee, with Brian Imrie as chair, and Brett Richards and Richard Moat as members. Mr. Richards will serve on at least two standing committees of the board. In addition to the CEO search committee, he will join the governance committee. When the CEO search committee is disbanded following the appointment of a permanent CEO, Mr. Richards will join the reserves, operations and capital, and sustainability committee, and he will be appointed to any new committee formed by the board during this period.

Brian Imrie, chair of the board, said: "We are pleased to have reached an agreement with Pala that will provide stability through the leadership transition and allow the board and management to focus on executing our strategy for the benefit of all shareholders. We thank Shelley for her dedicated service and are pleased to welcome Brett, whose extensive mining leadership experience will be a valuable asset to Sherritt."

Jan Weidner, CEO of Pala, added: "We have been invested in Sherritt for nearly a decade, and we believe the agreement announced today reflects meaningful progress. It marks a constructive and positive outcome for Sherritt and provides a strong foundation to unlock value through the selection of a new CEO. We see great potential in Sherritt's businesses, and are aligned in driving significant near-term value creation for all shareholders."

A copy of the agreement will be filed on Sherritt's profile on SEDAR+.

Brett Richards

Mr. Richards is an experienced mining executive with more than 37 years in the industry, most recently as chief executive officer of Pasofino Gold Ltd. He has held senior leadership roles at Gold X2 Mining Inc. (formerly Goldshore Resources Inc.), Banro Corp., Midnight Sun Mining Corp., African Thunder Platinum, Renew Resources and Octea, and previously served as transition CEO of Roxgold and as CEO of Avocet Mining PLC. He was part of the five-person start-up team at Katanga Mining and has held senior executive positions with Kinross Gold and Co-Steel Inc. Mr. Richards currently serves on the boards of Nickel 28 Capital Corp., Gold X2 Mining Inc. (formerly Goldshore Resources Inc.) and Midnight Sun Mining Corp.

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. Leveraging its technical expertise and decades of experience in critical minerals processing, Sherritt is committed to expanding domestic refining capacity and reducing reliance on foreign sources. The corporation operates a strategically important refinery in Alberta, Canada, recognized as the only significant cobalt refinery and one of just three nickel refineries in North America. Sherritt's Moa joint venture has an estimated mine life of approximately 25 years and has recently completed an expansion that is set to increase its annual mixed sulphate precipitate production by 20 per cent of contained nickel and cobalt.

The corporation's power division, through its ownership in Energas, 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.

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