TORONTO, December 1, 2010 - Sherritt announced it has executed an earn-in and shareholders agreement with a subsidiary of Rio Tinto Limited (“Rio Tinto”)whereby Sherritt will acquire an interest in the Indonesia. Subject to satisfaction of certain conditions, Sherritt will acquire a controlling 57.5% equity interest in the holding company that owns the Sulawesi Project Sherritt has been appointed as the Operator and the Project. As consideration for its interest, Sherritt feasibility study from which a development decision In compliance with Indonesia’s Mining Law, local Indonesian interests the Project. Following that event, Sherritt an in the Sulawesi Project, which will give Sherritt a controlling interest and a 46% economic interest with Rio Tinto maintaining a 34% economic interest.
The Sulawesi Project currently ranks as one of the largest known undeveloped in the world. Ian W. Delaney, Sherritt’s Chairman and CEO commented, “The Sulawesi Project is a truly impressive, high quality lateritic nickel resource. With 50 years of operational experience in Canada and Cuba development of the Ambatovy Project Project forward. We will begin process development and further delineation of the resource immediately.” About the Sulawesi Project The Sulawesi Project is located in the Southeast and Central Sulawesi provinces on the Republic of Indonesia. Based on exploration completed to date potentially richer than Ambatovy. Identification of exploration and completion of feasibility studies.
About Sherritt
Sherritt is a diversified natural resource company that produces nickel, cobalt, thermal coal, oil, gas and electricity. It also licenses its proprietary technologies to other metals companies. listed on the Toronto Stock Exchange under the symbol “S” For further information, please contact: Investor Relations Telephone: 416-935-2451 Toll-Free: 1-800-704-6698 Email: [email protected] www.sherritt.com NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES a controlling interest in the Sulawesi Nickel Project Sherritt International Corporation (“Sherritt” or the “Corporation”) (TSX: S) today in and shareholders agreement with a subsidiary of Rio Tinto Limited (“Rio n interest in the Sulawesi Nickel Project (the “Sulawesi Project”) Subject to satisfaction of certain conditions, Sherritt will acquire a controlling 57.5% equity interest in the holding company that owns the Sulawesi Project, and Rio Tinto will continue to hold the remaining 42.5%. Sherritt has been appointed as the Operator and will license its commercially-proven, proprietary technology to As consideration for its interest, Sherritt has committed to fund US$110 million towards feasibility study from which a development decision will be made.
In compliance with Indonesia’s Mining Law, local Indonesian interestsare expected to acquire a Following that event, Sherritt and Rio Tinto together will indirectly own and control an 80% interest in the Sulawesi Project, which will give Sherritt a controlling interest and a 46% economic interest with Rio Tinto currently ranks as one of the largest known undeveloped, greenfield lateritic nickel deposits Ian W. Delaney, Sherritt’s Chairman and CEO commented, “The Sulawesi Project is a truly impressive, high quality lateritic nickel resource. With 60 years of technological expertise in lateritic solutions, in Canada and Cuba, and most recently, its project experience in the in Madagascar, Sherritt is uniquely positioned to help mo We will begin process development and further delineation of the resource immediately.” the Southeast and Central Sulawesi provinces on the island Based on exploration completed to date, the Project includes a large, high grade resource potentially richer than Ambatovy. Identification of further mineralization will be achieved through additional and completion of feasibility studies.
Sherritt is a diversified natural resource company that produces nickel, cobalt, thermal coal, oil, gas and electricity. It also licenses its proprietary technologies to other metals companies. Sherritt’s common shares are listed on the Toronto Stock Exchange under the symbol “S”.
- 30 - For further information, please contact: NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES interest in the Sulawesi Nickel Project ation (“Sherritt” or the “Corporation”) (TSX: S) today in and shareholders agreement with a subsidiary of Rio Tinto Limited (“Rio Project (the “Sulawesi Project”)in Subject to satisfaction of certain conditions, Sherritt will acquire a controlling 57.5% equity interest and Rio Tinto will continue to hold the remaining 42.5%.
proven, proprietary technology to million towards producing a are expected to acquire a 20% interest in d Rio Tinto together will indirectly own and control an 80% interest in the Sulawesi Project, which will give Sherritt a controlling interest and a 46% economic interest with Rio Tinto greenfield lateritic nickel deposits Ian W. Delaney, Sherritt’s Chairman and CEO commented, “The Sulawesi Project is a truly 0 years of technological expertise in lateritic solutions,, and most recently, its project experience in the in Madagascar, Sherritt is uniquely positioned to help move the Sulawesi We will begin process development and further delineation of the resource immediately.” of Sulawesi in the high grade resource will be achieved through additional Sherritt is a diversified natural resource company that produces nickel, cobalt, thermal coal, oil, gas and Sherritt’s common shares are