Sherritt Reports Record First Quarter Nickel and Cobalt

Sherritt International Corporation 1

For immediate release

Sherritt Reports Record First Quarter Nickel and Cobalt

Production at Moa JV

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED

STATES

Toronto, Ontario – April 25, 2019 – Sherritt International Corporation (“Sherritt” or the “Corporation”) (TSX: S), a world leader

in the mining and hydrometallurgical refining of nickel and cobalt from lateritic ores, today reported its financial results for the

three months ended March 31, 2019. All amounts are in Canadian currency unless otherwise noted.

CEO COMMENTARY

“Initiatives launched in 2018 to improve operational effectiveness, increase mining equipment availability, and improve ore

access paved the way for the Moa JV’s highest ever first quarter nickel and cobalt production total,” said David Pathe, President

and CEO of Sherritt International. “Our record production results in Q1 2019 were negatively impacted, however, by the dramatic

70% decline in realized cobalt prices, contributing to considerably lower by-product revenue and higher NDCC than we have

experienced in recent quarters. Our Q1 progress was also impeded by the disappointing collections on our Cuban overdue

receivables.”

Mr. Pathe added, “Since the start of Q2 2019, we have seen a number of positive developments, including the resumption of

drilling on Block 10, the recovery of cobalt prices by more than 15%, and the continued draw down of Class 1 nickel inventories.

Combined, these trends signal a more favorable outlook for our prospects for the balance of 2019 and beyond.”

Q1 HIGHLIGHTS

 Sherritt’s share of finished nickel production at the Moa Joint Venture (“Moa JV”) in Q1 2019 was 4,397 tonnes, up 54%

from last year, while finished cobalt was 426 tonnes, up 27%. The combined nickel and cobalt total for Q1 2019 marks

the Moa JV’s highest ever first quarter production results.

 Q1 2019 Adjusted EBITDA(1) was negative $1.2 million, down from positive Adjusted EBITDA of $35.5 million in Q1

2018. The decrease was due to a number of factors, including a 70% year-over-year decline in realized cobalt prices

and lower contributions from the Oil and Gas business as a result of decreased net working-interest production

stemming from maturing oil fields and a lower profit share.

 Net direct cash cost (NDCC)(1) at the Moa JV for Q1 2019 was US$4.53 per pound of finished nickel sold, up from

US$2.06 per pound for Q1 2018. The increase reflects the negative impact that sharply declining cobalt prices had on

by-product credits, including the settlement of approximately 200 tonnes of provisionally-priced cobalt sales (100%

basis) from Q4 2018. The variance between Q1 2019 cobalt reference and realized prices that resulted from provisional

pricing adjustments negatively impacted NDCC by approximately US$0.40 per pound.

 Sherritt ended Q1 2019 with cash, cash equivalents and short-term investments of $177.3 million, down from $207.0

million at the end of 2018. The decrease was due to the timing of capital expenditures, interest paid on outstanding

debentures and changes to working capital, including lower than expected Cuban energy receipts.

 Reached an agreement in principle, subject to final approvals, with its Cuban partners on a payment plan to reduce

overdue energy receivables. Final approval of the agreement and payment schedule is expected shortly.

 Consistent with its previously announced strategy to no longer fund the Ambatovy Joint Venture (“Ambatovy JV”),

Sherritt elected to not fund its share of a US$45 million cash call and became a defaulting shareholder with reduced

local influence and authority. As a result, the Ambatovy JV is no longer considered an operating segment, and its

financial performance is not included in Sherritt’s combined or adjusted financial results.

DEVELOPMENTS SUBSEQUENT TO THE QUARTER END

 Resumed drilling on Block 10 on April 1 using updated drilling parameters developed with the assistance of third-party

experts and the results of detailed lab analysis of rock cuttings collected previously. The adoption of new drilling

parameters will not result in any increases to planned capital spending previously disclosed for the Oil and Gas

business. Any incremental capital spend at the Oil and Gas business in 2019 will be predicated on successful drill

results on Block 10 and collections on overdue receivables. Sherritt intends to explore partnerships for further

investment in Block 10 following completion of the current drilling, which is expected in the second quarter of 2019.

2019 First Quarter Report

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2 Sherritt International Corporation

 On April 17, the U.S. State Department announced that effective May 2, 2019 it will implement Title III of the Helms-

Burton Act, allowing U.S. citizens to bring lawsuits against foreign companies for using property that was nationalized

by the Cuban government beginning in 1959. Sherritt has been working with its partners in Cuba since 1994 producing

nickel, cobalt, oil and gas, and electricity, and plans to continue to operate business as usual. More details on Title III

and its potential risks and uncertainties can be found in Sherritt’s Annual Information Form dated February 13, 2019.

See “Risk Factors – Risks Related to U.S. Government Policy Towards Cuba” for additional information.

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

Q1 2019 FINANCIAL HIGHLIGHTS(1)

$ millions, except as otherwise noted, for the three months ended March 31 2019 2018 Change

Revenue $ 31.9 $ 39.4 (19%)

Combined Revenue(2) 124.6 129.1 (3%)

Net loss for the period (61.8) (0.6) nm(3)

Adjusted EBITDA(2) (1.2) 35.5 (103%)

Cash (used) provided by continuing operations (34.6) 11.1 (412%)

Combined adjusted operating cash flow (2) (9.9) 6.7 (248%)

Combined free cash flow(2) (44.0) 15.0 (393%)

Average Exchange Rate (CAD/US$) 1.330 1.265 N/A

Net earnings (loss) from continuing operations per share $ (0.16) $ 0.00 -

(1) The financial results for the Ambatovy JV are only discussed as part of share of earnings in associate based on financial statement amounts. Prior period non-GAAP

measures have been revised to exclude the Ambatovy JV performance.

(2) For additional information see the Non-GAAP measures section.

(3) Not meaningful (nm).

2019 2018

$ millions, as at March 31 December 31 Change

Cash, cash equivalents and short term investments $ 177.3 $ 207.0 (14%)

Loans and borrowings 704.4 705.7 -

Cash, cash equivalents and short-term investments at March 31, 2019 were $177.3 million, down from $207.0 million at

December 31, 2018. The reduction in cash is largely as a result of negative changes to working capital totaling $26.8 million,

$7.8 million in interest payments on outstanding debentures, and $7.8 million in capital expenditures principally earmarked for

resumption of drilling on Block 10. These outflows were partly offset by a $3.3 million dividend received from the Moa JV.

During Q1 2019, Sherritt received US$5.7 million on its Cuban overdue receivables. At March 31, 2019 total overdue energy

receivables were US$171.6 million, up from US$152.5 million at December 31, 2018. Sherritt continues to work with its Cuban

partners to finalize a payment plan to reduce the amount of overdue energy receivables. Sherritt has experienced variability in

its Cuban overdue energy receivables over the years but has not incurred any losses.

Adjusted net earnings (loss)(1)

Net loss for Q1 2019 was $61.8 million, or $0.16 per share, compared to a loss of $0.6 million, or nil per share, for the same

period of last year. The net loss for Q1 2019 was principally due to a 4% and 70% decline in realized prices, respectively, for

nickel and cobalt at the Moa JV. Other contributing factors included a $5.7 million loss from the Oil and Gas business due to

reduced production and a lower profit share, and a $26.8 million share of loss for the Ambatovy JV. Adjusted net loss is

summarized below:

2019 2018

For the three months ended March 31 $ millions $/share $ millions $/share

Net loss (61.8) (0.16) (0.6) -

Adjusting items:

Unrealized foreign exchange (gain) loss 5.8 0.01 (7.7) (0.02)

Other 1.1 0.01 (6.5) (0.02)

Adjusted net loss (54.9) (0.14) (14.8) (0.04)

(1) For additional information see the Non-GAAP measures section.

Sherritt International Corporation 3

METAL MARKETS

Nickel

Nickel was the best performing base metal in Q1 2019, closing at US$5.90/lb on March 29, up almost 25% from the start of

the year. The recovery was driven by a number of factors, including optimism that an international trade agreement between

the U.S. and China would soon be reached. Underlying market fundamentals also contributed to the price recovery.

Combined nickel inventories on the London Metals Exchange (LME) and the Shanghai Futures Exchange at the end of Q1

2019 totaled 191,292 tonnes, down 13% from the combined total of 219,804 tonnes at the end of Q4 2018. Since the end of

Q1 2018, combined Class 1 nickel inventories have declined by approximately 50%. As demand continues to exceed available

supply, the nickel market is anticipated to be in a structural deficit in the coming years.

Despite the recovery of prices since the start of 2019, the average reference price for nickel in Q1 2019 was down 7% from

last year, declining from US$6.03/lb to US$5.62/lb. Nickel prices in April 2019 have averaged at US$5.85/lb and are currently

trading on the LME at US$5.56/lb.

Demand for nickel will continue to be driven by the stainless steel sector. According to market research by CRU, stainless

steel demand is expected to grow at an average annual rate of approximately 4% through 2022 with production emanating

largely from China and Indonesia. Demand for nickel – particularly Class 1 nickel – from non-stainless steel sectors is also

expected to accelerate given the growth of the electric vehicle battery market. Class I nickel, along with cobalt, are key metals

needed to manufacture electric vehicle batteries.

Beyond 2019, a shortage of Class 1 nickel is anticipated over the coming years since current market prices are below incentive

levels needed to develop new nickel projects. As a result, no new Class 1 nickel supply is expected to come on stream in the

near term.

Cobalt

Cobalt prices and demand experienced considerable softness and volatility in Q1 2019. The reference price for Q1 2019 was

US$18.53/lb, down 52% from US$39.01/lb for the same period of 2018. Consistent with trends over the past several months,

the price decline was driven by increased supply of intermediate product from the Democratic Republic of Congo as well as by

the destocking of inventory by Chinese consumers.

Abundant available supply has recently resulted in cobalt producers selling product at significant discount to prevailing

reference prices. During the run-up in prices from late 2017 through 2018, cobalt producers often sold cobalt at a premium to

reference prices as consumers looked to lock supply.

Since the start of April, however, cobalt prices have risen by approximately 15% as consumers renew purchasing activities.

The recent increase in cobalt prices is expected to be sustained through the balance of 2019 albeit with some volatility due to

increased speculative interest, growing demand from the electric vehicle battery market and persistent supply risk concerns

linked to the Democratic Republic of Congo, which is currently the world’s largest source of cobalt supply.

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REVIEW OF OPERATIONS

Moa Joint Venture (50% interest) and Fort Site (100%)

$ millions, except as otherwise noted, for the three months ended March 31 2019 2018 Change

FINANCIAL HIGHLIGHTS

Revenue $ 102.3 $ 96.3 6%

(Loss) earnings from operations (9.5) 16.3 (158%)

Adjusted EBITDA(1) 4.2 27.1 (85%)

CASH FLOW

Cash (used) provided by operations $ (4.1) $ 18.1 (123%)

Adjusted operating cash flow(1) 2.8 26.8 (90%)

Free cash flow(1) (10.4) 13.6 (176%)

PRODUCTION VOLUMES (tonnes)

Mixed Sulphides 4,336 3,882 12%

Finished Nickel 4,397 2,854 54%

Finished Cobalt 426 336 27%

Fertilizer 66,962 52,440 28%

NICKEL RECOVERY (%) 84% 79% 6%

SALES VOLUMES (tonnes)

Finished Nickel 4,391 2,910 51%

Finished Cobalt 460 325 42%

Fertilizer 26,957 25,472 6%

AVERAGE-REFERENCE PRICES (US$ per pound)

Nickel $ 5.62 $ 6.03 (7%)

Cobalt(2) 18.53 39.01 (52%)

AVERAGE REALIZED PRICE

Nickel ($ per pound) 7.51 7.80 (4%)

Cobalt ($ per pound) 14.62 48.47 (70%)

Fertilizer ($ per tonne) 418 358 17%

UNIT OPERATING COSTS(1) (US$ per pound)

Nickel - net direct cash cost 4.53 2.06 120%

SPENDING ON CAPITAL(3)

Sustaining 14.0 4.5 211%

Expansion - - -

14.0 4.5 211%

(1) For additional information see the Non-GAAP measures section.

(2) Average low-grade cobalt published price per Fastmarkets MB (formerly Metals Bulletin).

(3) Excludes right of use assets recognized on adoption of IFRS 16. Refer to note 4 of the condensed consolidated financial statements for additional information.

The Moa JV produced 4,397 tonnes of finished nickel in Q1 2019, up 54% from 2,854 tonnes produced in Q1 2018. Growth was

largely driven by the deployment of new mining equipment acquired throughout 2018 that resulted in improved ore access and

reduced equipment downtime compared to the same period of last year. In Q1 2018, the Moa JV’s results were impacted by the

highest level of rainfall at Moa in more than 20 years and by transportation delays to the refinery in Fort Saskatchewan by the

railway service provider. Efforts at improving ore access and mining equipment reliability at Moa have been instrumental in

increasing inventory stockpiles and reducing the impact that adverse weather conditions may have on future production.

Finished cobalt production for Q1 2019 was 426 tonnes, up 27% from Q1 2018 due to higher mixed sulphides availability. The

ratio of finished nickel production to cobalt production was higher in Q1 2019 compared to last year as a result of a higher nickel

to cobalt ratio in mixed sulphides produced at Moa. Despite the change, which is due to ore grade variability, the nickel to cobalt

ratio is consistent with historical norms.

Combined nickel and cobalt production totals for Q1 2019 represent the Moa JV’s highest ever first quarter production results.

Second quarter production will be impacted, however, by the annual maintenance shutdown of the refinery in Fort Saskatchewan.

This year’s shutdown is expected to be similar in duration to the prior years.

Sherritt International Corporation 5

Revenue for Q1 2019 totaled $102.3 million, up 6% from last year. The increase was largely due to higher sales volume of

nickel and cobalt, offset, however, by a 70% decline in the cobalt realized price over Q1 2018. The realized price decline in Q1

2019 was driven by lower consumer demand and the settlement of provisional Q4 2018 pricing. The average-realized price for

nickel in Q1 2019 was $7.51/lb, down 4% from last year.

Mining, processing and refining (MPR) costs for Q1 2019 were US$5.59/lb, up 6% from US$5.26/lb for Q1 2018 due to the impacts

of higher energy prices and higher utilization of Moa mixed sulphides relative to third-party feeds although partly offset by the

impact of higher sales volume.

NDCC in Q1 2019 was US$4.53/lb, up from US$2.06/lb for the same period last year. The increase was largely due to lower by-

product revenue stemming from lower cobalt prices and the settlement of approximately 200 tonnes of provisionally-priced cobalt

sales (100% basis) from Q4 2018. The variance between Q1 2019 cobalt reference and realized prices that resulted from

provisional pricing adjustments negatively impacted NDCC by approximately $0.40 per pound. The decrease in cobalt by-product

revenue was partly offset by lower third-party feed costs and a higher contribution from fertilizer sales.

Sustaining capital spending in Q1 2019 was $14.0 million, up from $4.5 million in Q1 2018 as the Moa JV continued its new mining

equipment initiative aimed at improving equipment reliability, reducing maintenance costs and improving ore accessibility.

Consistent with its efforts to improve operational effectiveness, the Moa JV also commissioned a new slurry preparation plant

dump pocket at Moa in Q1 2019 that is designed to improve ore screening and processing.

The Moa JV contributed a dividend distribution of $3.3 million in Q1 2019.

Oil and Gas

$ millions, except as otherwise noted, for the three months ended March 31 2019 2018 Change

FINANCIAL HIGHLIGHTS

Revenue $ 9.0 $ 18.1 (50%)

(Loss) earnings from operations (5.7) 1.7 (435%)

Adjusted EBITDA(1) (2.7) 4.6 (159%)

CASH FLOW

Cash (used) provided by operations (8.0) 7.3 (210%)

Adjusted operating cash flow(1) (2.2) (7.7) 71%

Free cash flow(1) (14.9) 4.2 (455%)

PRODUCTION AND SALES (boepd)

Gross working-interest (GWI) - Cuba 4,443 5,572 (20%)

Total net working-interest (NWI) 1,776 3,916 (55%)

AVERAGE-REFERENCE PRICE (US$ per barrel)

West Texas Intermediate (WTI) $ 54.79 $ 62.85 (13%)

U.S. Gulf Coast High Sulphur Fuel Oil (USGC HSFO) 61.04 55.13 11%

Brent 62.96 66.88 (6%)

AVERAGE-REALIZED PRICE(1) (NWI)

Cuba ($ per barrel) 59.13 $ 51.11 16%

UNIT OPERATING COSTS(1) (GWI)

Cuba ($ per barrel) 21.19 $ 20.83 2%

SPENDING ON CAPITAL(2)

Development, facilities and other $ 1.5 $ (0.3) 600%

Exploration 4.2 2.6 62%

$ 5.7 $ 2.3 148%

(1) For additional information see the Non-GAAP measures section.

(2) Excludes right of use assets recognized on adoption of IFRS 16. Refer to note 4 of the condensed consolidated financial statements for additional information.

Gross working-interest oil production in Cuba in Q1 2019 was 4,443 barrels of oil per day (“bopd”), down 20% from 5,572 bopd

for Q1 2018. Lower production in 2019 was primarily due to natural reservoir declines and the absence of new development

drilling.

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Revenue in Q1 2019 was $9.0 million, down 50% when compared to last year. The decline was attributable to lower total net

working-interest production due to the impact of the decrease in profit oil percentage to 6% from 45% with the renewal of the

Puerto Escondido/Yumuri PSC starting in Q2 2018. The decline was partially offset by a higher USGC HSFO reference oil price

and by a weaker Canadian dollar relative to the U.S. currency.

Unit operating costs in Cuba in Q1 2019 were $21.19 per barrel, up 2% from Q1 2018, driven largely by reduced production. Costs

were also negatively impacted by a stronger U.S. dollar relative to the Canadian currency. Expenses in Cuba are generally

denominated in U.S. currency.

Capital spending in Q1 2019 was $5.7 million, up 148% from Q1 2018. Exploration capital spending was higher in Q1 2019 as a

result of the sourcing of materials and supplies in advance of resumed drilling on Block 10.

Free cash flow for Q1 2019 was impacted by the timing of capital expenditures and negative changes to working capital.

Drilling on Block 10 resumed on April 1, 2019 using updated drilling parameters developed with the assistance of third-party

experts and the results of detailed lab analysis of rock cuttings collected previously. The adoption of new drilling parameters will

not result in any increases to planned capital spending previously disclosed for the Oil and Gas business. Any incremental capital

spend at the Oil and Gas business in 2019 will be predicated on successful drill results on Block 10 and collections on overdue

receivables. Sherritt intends to explore partnerships for further investment in Block 10 following completion of the current drilling,

which is expected in the second quarter of 2019.

Power

$ millions (33⅓% basis), except as otherwise noted, for th e three months ended March 31 2019 2018 Change

FINANCIAL HIGHLIGHTS

Revenue $ 10.7 $ 11.9 (10%)

Earnings from operations 0.9 1.8 (50%)

Adjusted EBITDA(1) 7.2 7.8 (8%)

FINANCIAL HIGHLIGHTS

Cash provided by operations 3.6 11.2 (68%)

Adjusted operating cash flow(1) 6.3 7.5 (16%)

Free cash flow(1) 3.1 11.1 (72%)

PRODUCTION AND SALES

Electricity (GWh) 173 202 (14%)

AVERAGE-REALIZED PRICE(1)

Electricity ($/MWh) $ 55.74 $ 53.24 5%

UNIT OPERATING COSTS(1) ($/MWh)

Base 19.83 14.44 37%

Non-base(2) 0.45 2.78 (84%)

20.28 17.22 18%

NET CAPACITY FACTOR (%) 54 63 (14%)

SPENDING ON CAPITAL(3)

Sustaining $ 0.5 $ 0.1 400%

$ 0.5 $ 0.1 400%

(1) For additional information see the Non-GAAP measures section.

(2) Costs incurred at the Boca de Jaruco and Puerto Escondido facilities that otherwise would have been capitalized if these facilities were not accounted or as service

concession arrangements.

(3) Excludes right of use assets recognized on adoption of IFRS 16. Refer to note 4 of the condensed consolidated financial statements for additional information.

Power production in Q1 2019 was 173 gigawatt hours (“GWh”) of electricity, down 14% from 202 GWh for the comparable period

of 2018. The decline was due to reduced gas supply and to scheduled maintenance activity on the steam turbine at Varadero.

Average-realized prices in Q1 2019 were $55.74, up 5% from $53.24 from last year. The increase was due to the depreciation of

the Canadian dollar relative the U.S. currency.

Revenue in Q1 2019 totaled $10.7 million, down 10% from $11.9 million for last year. The decline was due to lower power

production, partially offset by higher realized prices.

Sherritt International Corporation 7

Unit operating costs in Q1 2019 were $20.28, up 18% from $17.22 for last year. The increase was attributable to lower sales

volume and the impact of a weaker Canadian dollar in Q1 2019 as Power business costs are generally denominated in U.S.

currency.

Total capital spending in Q1 2019 was negligible.

INVESTMENT IN AMBATOVY JOINT VENTURE (12% interest)

$ millions, except as otherwise noted, for the three months ended March 31 2019 2018 Change

PRODUCTION VOLUMES (tonnes)

Mixed Sulphides 992 675 47%

Finished Nickel 920 668 38%

Finished Cobalt 81 49 65%

Fertilizer 2,957 1,989 49%

UNIT OPERATING COSTS(1)

NDCC (US$ per pound of nickel) $ 5.70 $ 5.34 7%

SPENDING ON CAPITAL(2) ($ millions)

Sustaining 2.2 2.5 (12%)

Expansion - - -

2.2 2.5 (12%)

(1) For additional information, see the Non-GAAP measures section of this release.

(2) Excludes right of use assets recognized on adoption of IFRS 16. Refer to note 4 of the condensed consolidated financial statements for additional information.

Consistent with previous disclosure, Sherritt announced on March 6, 2019 that it would not fund a cash call requested by the

Ambatovy JV. As a result of this decision, Sherritt became a defaulting shareholder, losing its voting rights at the Ambatovy JV

board level and incurring a reduction in influence and authority at the local level. Given these developments, Sherritt no longer

considers the Ambatovy JV as an operating segment for accounting purposes, and will no longer present Ambatovy’s financial

results as part of Sherritt’s combined financial results, including combined revenue, Adjusted EBITDA and combined cash flow.

The accounting treatment for the Ambatovy JV for financial statement purposes has not changed.

Finished nickel production in Q1 2019 was 920 tonnes and finished cobalt production was 81 tonnes, up 38% and 65%,

respectively, from Q1 2018. Production in Q1 2019 was impacted by an accident and fatality in the hydrogen plant that resulted

in a full shutdown of the Ambatovy plant for a period of 10 days to undertake safety reviews and complete repairs. Production in

Q1 2019 was also impacted by unplanned maintenance activities in the acid plants as well as by equipment reliability issues. In

Q1 2018, production was impacted by Cyclone Ava that necessitated a plant shutdown of approximately one month due to damage

to equipment and facilities.

NDCC in Q1 2019 was US$5.70/lb, up 7% from Q1 2018. The increase was attributable to lower cobalt by-product credits resulting

from lower cobalt prices, which more than offset the impact of higher nickel and cobalt sales volumes.

Capital spend at Ambatovy based on Sherritt’s ownership interest was $2.2 million in Q1 2019. Capital spending in 2019 will be

largely aimed at improving the reliability of the acid plants, replacement of mobile equipment at the plant site, fixing corroded

equipment and restoring general plant and equipment.

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2019 REVIEW OF STRATEGIC PRIORITIES

The table below lists Sherritt’s Strategic Priorities for 2019, and summarizes how the Corporation has performed against those priorities

on a year to date basis.

Strategic Priorities 2019 Actions Status

PRESERVE LIQUIDITY AND

BUILD BALANCE SHEET

STRENGTH

Continue to emphasize de-leveraging of

the balance sheet within the context of a

low commodity price environment.

Sherritt’s net debt at the end of Q1 2019 was $560 million,

down from almost $2 billion at the end of 2016. The

reduction was driven by the restructuring of Sherritt’s

ownership interest in the Ambatovy JV at the end of 2017

and the purchase of more than $130 million of debentures

in 2018.

Optimize working capital and receivables

collection

Management continues to take action to expedite Cuban

energy receipts and has reached an agreement in

principle subject to final approvals, with its Cuban partners

on a payment plan to reduce overdue receivables.

Overdue receivables at quarter end were US$171.6

million.

Operate the Metals businesses to

maintain a leadership position as a low-

cost producer of finished nickel and

cobalt while maximizing Free Cash Flow

The Moa JV and Fort Site generated $2.8 million of

adjusted operating cash flow in Q1 2019 despite the

negative impact of volatile nickel and cobalt prices.

UPHOLD GLOBAL

OPERATIONAL LEADERSHIP IN

FINISHED NICKEL LATERITE

PRODUCTION

Further reduce NDCC towards the goal

of being consistently in the lowest cost

quartile.

NDCC at the Moa JV was US$4.53/lb in Q1 2019,

reflecting the negative impact that the dramatic decline in

cobalt prices had on by-product credits, including the

settlement of provisionally-priced sales from Q4 2018.

Maximize production of finished nickel

and cobalt and improve predictability

over 2018 results

The Moa JV produced 9,646 tonnes of finished nickel and

cobalt in Q1 2019 (100% basis), marking the highest

combined total ever produced in the first quarter. The new

record was driven by initiatives aimed at improving

operational effectiveness, ore access and mining

equipment reliability.

Achieve peer leading performance in

environmental, health, safety and

sustainability

Sherritt’s operations at Moa, Fort Site, Oil & Gas and

Power had zero work-related fatalities and zero lost time

incidents. In Q1 2019, Moa/Fort Site had a recordable

injury frequency rate of 0.19 and a lost time injury

frequency rate of 0.11 while the Oil and Gas business had

a recordable injury frequency rate of 0.49 and a lost time

injury rate of 0.00 while the Power business had a

recordable injury frequency rate of 1.66 and a lost time

injury frequency rate of 0.24. Sherritt is in the lowest

quartile of benchmark peer set of data.

OPTIMIZE OPPORTUNITIES IN

CUBAN ENERGY BUSINESS

Successfully execute Block 10 drilling

program

Drilling on Block 10 resumed on April 1 using updated

drilling parameters developed with the assistance of third-

party experts who completed an analysis of geological

conditions and rock cuttings from previous drilling. Drilling

on Block 10 is expected to be completed in Q2 2019 with

no increase to planned capital spend for the year. Any

incremental capital spend at the Oil and Gas business in

2019 will be predicated on successful Block 10 drill results

and collections of receivables. The company intends to

explore potential partnerships on Block 10 pending

completion of current drilling.

Review opportunities to leverage Oil and

Gas experience and relationships

The Production Sharing Contract at Puerto Escondido/

Yumuri was extended in 2018 for three years to 2021.