Dr. Peter Hancock reports

SHERRITT REPORTS 2025 PRODUCTION RESULTS AND OPERATIONAL UPDATE

Sherritt International Corp. has released its fourth quarter and full-year 2025 production results. During the fourth quarter of 2025, Sherritt received $7.7-million of dividends in Canada from Energas SA, bringing the total to $26-million for the year, double the $13-million received in 2024.

Dr. Peter Hancock, interim chief executive officer of Sherritt, commented: "Since my appointment in December, I have worked with our joint venture partner on a comprehensive operational turnaround at Moa to address the challenges we saw in 2025 and support a return to consistent operational performance at the site. Our efforts aim to strengthen the productivity and reliability of the mine's operations amid heightened geopolitical uncertainty and ultimately pave the way for us to realize the full benefit from our expansion. Our power division demonstrates what focused operational improvements can achieve, with our dividends doubling this year to $26-million. We will be applying the same operational discipline at Moa to replicate that success in the years ahead."

Metals

Finished nickel and cobalt production were at the lower ends of their revised 2025 guidance ranges. In the fourth quarter of 2025, continued lower-than-expected production of mixed sulphides at Moa impacted feed availability at the refinery. This was primarily due to below-plan mined ore volumes, lower leach train availability, a delay in commodity procurement, national grid power outages and periods of reduced operating rates following hurricane Melissa. As well, Sherritt did not acquire additional third party feed given high payabilities in the intermediate market. Full-year 2025 net direct cash cost (NDCC) was within the guidance range originally disclosed at the start of the year of $5.75 (U.S.) to $6.25 (U.S.) per pound of nickel sold, benefiting from higher cobalt byproduct credits from higher average realized cobalt prices and continuing cost optimization initiatives.

Power

Electricity production was slightly below the low end of its 2025 guidance range. While capable of producing more, during the fourth quarter 2025, the Varadero and Boca de Jaruco facilities were required by the government agency Union Electrica (UNE) to operate in frequency control for periods to help stabilize the national power grid, thus restricting output. Energas was fully compensated for this reduction, resulting in no impact to power's adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), earnings from operations or dividends from Energas to Sherritt in Canada during the year. Full-year 2025 unit operating cost was at the lower end of the 2025 guidance range of $23 (U.S.) to $24.50 (U.S.) per megawatt-hour.

Operational update

In response to the operational challenges encountered at the Moa mine in 2025, coupled with heightened geopolitical uncertainty, Sherritt is collaborating with its joint venture partner to review the existing recovery plan and identify additional opportunities to improve the mine's performance and reliability against a backdrop of continuing adverse operating conditions.

The operational review will aim to stabilize the site and gradually restore production of mixed sulphides to pre-2025 levels. Following stabilization of the site, the ramp-up of the Moa JV expansion program will be reassessed and optimized to realize the full benefit.

Sherritt is actively monitoring recent regional geopolitical developments and is working closely with its joint venture partner to anticipate and respond to potential risks. Sherritt has a record of navigating complex operating environments throughout the 30-year history of the Moa joint venture.

Sherritt expects to provide a further operational update when it reports its financial results for the fourth quarter and year ended Dec. 31, 2025, on Feb. 10, 2026, after market close. The corporation's 2026 guidance for production, NDCC, unit operating costs, spending on capital and estimated distributions under the cobalt swap agreement and dividends from Energas will also be provided. Guidance for power electricity production will reflect the expected impact of the Varadero facility operating in frequency control, which is expected for most of 2026.

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 produces cost-competitive critical minerals while maintaining high sustainability standards and has an estimated mine life of approximately 25 years.

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. Energas processes domestically sourced raw natural gas to generate electricity for sale to the Cuban national electrical grid. 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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