Higher nickel, cobalt and fertilizer prices drive Sherritt’s strong second quarter results

Sherritt International Corporation 1

For immediate release

Higher nickel, cobalt and fertilizer prices drive Sherritt’s strong second

quarter results

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Toronto – July 27, 2022 – Sherritt International Corporation (“Sherritt”, the “Corporation”, the “Company”) (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 and six months ended June 30, 2022. All amounts are in Canadian currency unless otherwise noted.

“Strong long-term fundamentals for our nickel, cobalt and fertilizer products gave us the confidence to use some of our available

cash to deleverage our balance sheet by repurchasing almost $60 million principal amount of our outstanding notes,” said Leon

Binedell, President and CEO of Sherritt International Corpora tion. “On the strength of commodity prices in the quarter , our

Adjusted EBITDA increased by more than 460% compared to the same quarter last year and almost doubled our first quarter of

the year. Our NDCC at the Moa JV of US$2.19/lb was the lowest since Q3 2018 , notably due to higher fertilizer by -product

credits, and we received $19 million in distributions from the Moa JV during the quarter.”

Mr. Binedell added, “Despite some steady headwinds moving into Q3 as nicke l and cobalt prices come off recent highs, we

continue to be encouraged by long-term market fundamentals and will continue to make progress towards our expansion targets

and further strengthening our balance sheet through increased distributions from our Moa JV during the balance of the year.”

SELECTED Q2 2022 DEVELOPMENTS

 As part of its priority of strengthening its balance sheet, Sherritt successfully purchased an aggregate of $59.2 million

of Sherritt’s 8.5% second lien secured notes and 10.75% unsecured PIK option notes at a total 24% discount which

will result in a reduction in annualized interest expense of approximately $5.5 million.

 Net earnings from continuing operations were $81.5 million, or $0.21 per share, compared to a net loss from continuing

operations of $10.4 million, or $0.03 per share, in Q2 2021.

 Adjusted EBITDA(1) was $102.0 million compared to $18.0 million in Q2 2021. The improved Adjusted EBITDA was

driven by higher nickel, cobalt, and fertilizer realized prices which offset lower sales volumes and higher input

commodity prices. This quarter’s results also include a share-based compensation recovery of $17.2 million due to the

impact of a reduction in Sherritt’s share price during the quarter. This compares to a $9.4 million share-based

compensation expense in Q2 2021. Excluding the impact of share -based compensation in administrative expense,

Q2 2022 administrative expenses were 27% lower than Q2 2021.

 Sherritt’s share of finished nickel and cobalt production at the Moa Joint Venture (Moa JV) were 3,704 tonnes and

396 tonnes, respectively. Finished production was lower in the current year period primarily due to timing of the planned

annual maintenance shutdown. Last year, the plant maintenance shutdown occurred in Q3.

 Finished nickel and cobalt sales volumes for the three months ended June 30, 2022 were lower than production

primarily due to logistics-related challenges in transporting finished product to customers and the deferral of orders by

certain customers that were impacted by the slowdown of economic activity in China as a result of the country’s zero-

COVID policies and recent global economic headwinds. The affected sales orders were partially offset by higher

netback sales to other markets and sales to new customers, with a portion of the new customer contracts finalizing

after quarter end. Subsequent to period end, additional sales of nickel and cobalt continue to reduce inventory towards

more typical levels.

 Net direct cash cost (NDCC) (1) at the Moa JV was US$2.19/lb, the lowest since Q3 2018 . During the current quarter,

significantly increased cobalt and fertilizer by -product credits more than offset higher input and maintenance costs.

Input commodity costs reflect a 178% increase in global sulphur prices, 102% increase in natural gas prices and 75%

increase in fuel oil prices. Sherritt’s Q2 2022 NDCC continued to rank in the lowest cost quartile of all nickel producers

according to annualized information tracked by Wood Mackenzie.

2022 Second Quarter Report

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2 Sherritt International Corporation

 Received $19.2 million (US$15 million) as its share of Moa JV distributions in Q2 to bring total distributions received in

the year to $43.4 million (US$34 million) which exceeds the total amount of distributions received in all of 2021. Given

prevailing nickel and cobalt prices, planned spending on capital, including growth capital, working capital needs, and

other expected liquidity requirements , Sherritt continues to anticipate higher distributions in the second half of 2022

compared to the first half of the year.

 The Moa JV advanced its expansion strategy aimed at growing annual nickel and cobalt production by 15 to 20% from

the combined 3 4,710 tonnes produced in FY2021 once all projects are completed , and extending the life of mine at

Moa beyond 2040. The first phase of this expansion, the slurry preparation plant at Moa, continues under construction

and remains on budget and on schedule for completion in early 2024. Sherritt continues to evaluate its growth capital

spend estimates in light of supply chain challenges and inflationa ry price pressures on construction materials,

equipment, and labour costs. Additional engineering and design work continues and will facilitate more accurate cost

estimates. The most recent assessment of expansion capital costs continues to indicate that costs are expected to be

approximately US$25,000 per tonne of new nickel capacity consistent with previous disclosure. Progress in Q2 2022

included:

o ongoing construction of the slurry preparation plant with 50% of civil construction complete, 85% of the

contracts for supply of materials and services awarded, and completed slurry pipeline design and ordered all

materials;

o completed a feasibility study for the leach plant sixth train at Moa and confirmed previously installed equipment

is in an acceptable condition for use;

o continued with basic engineering on the acid plants at Moa to meet the acid requirements from the expansion

projects; and

o continued with basic engineering on de-bottlenecking projects at the refinery.

Sherritt expects to provide an update on the rollout and spending on capital related to the expansion strategy with each

of its quarterly results with full project approval expected in the second half of 2022.

 Completed the first of the London Metal Exchange’s (LME) Responsible Sourcing requirements for LME-Listed Brands.

The Corporation completed a LME -conformant Red Flag Assessment of its mineral supply chain and did not identify

any red flags such as human rights violations, association with conflict, f inancial crimes or corruption. Independent

LME-approved auditors validated this assessment and recommended that the LME confirm Sherritt’s conformance with

its responsible sourcing requirements.

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

Sherritt International Corporation 3

Q2 2022 FINANCIAL HIGHLIGHTS

For the three months ended For the six months ended

2022 2021 2022 2021

$ millions, except per share amount June 30 June 30 Change June 30 June 30 Change

Revenue $ 65.9 $ 31.0 113% $ 100.0 $ 52.9 89%

Combined revenue(1) 221.5 152.3 45% 423.7 294.0 44%

Earnings (loss) from operations and joint venture 74.0 (7.3) nm(2) 97.5 (1.2) nm

Net earnings (loss) from continuing operations 81.5 (10.4) 884% 97.9 (12.3) 896%

Net earnings (loss) for the period 81.1 (10.7) 858% 96.8 (16.3) 694%

Adjusted EBITDA(1) 102.0 18.0 467% 160.5 48.2 233%

Net earnings (loss) from continuing operations ($ per share) 0.21 (0.03) 800% 0.25 (0.03) 933%

Cash provided (used) by continuing operations for operating

activities 25.6 1.5 nm 31.2 (1.5) nm

Combined free cash flow(1) 23.5 2.6 nm 21.8 21.6 1%

Average exchange rate (CAD/US$) 1.277 1.228 4% 1.272 1.247 2%

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

(2) Not meaningful (nm).

2022 2021

$ millions, as at June 30 December 31 Change

Cash and cash equivalents $ 124.6 $ 145.6 (14%)

Loans and borrowings 393.4 444.5 (11%)

Cash and cash equivalents at June 30, 2022 were $124.6 million, down from $145.5 million at March 31, 2022. The reduction

in cash was primarily due to the $44.8 million used to repurchase notes, $15.2 million in interest payments on the 8.50% second

lien secured notes and $3.3 million of capital expenditures, partially offset by $19.2 million of distributions received from the Moa

JV and strong fertilizer receipts.

Total distributions from the Moa JV to the end of the second quarter 2022 totaled $43.4 million (US$34 million) which exceeds

the total amount of distributions received in all of 2021. Distributions from the Moa JV are determined based on available cash

in excess of liquidity requirements, including anticipated nickel and cobalt prices, planned capital spend, working capital needs,

and other expected liquidity requirements. Sherritt continues to expect distributions to be higher in the second half of the year

than the first.

Sherritt also received US$12.2 million ($15.6 million) from Energas in Q2 which was used to facilitate foreign currency payments

for the Energas operations. Total overdue receivables at June 30, 2022 were unchanged during the quarter at US$153.1 million.

Collections on overdue amounts from Sherritt’s Cuban energy partners continue to be adversely impacted by Cuba’s reduced

access to foreign currency as a result of ongoing U.S. sanctions and the global pandemic’s impact on tourism. Sherritt continues

to work with its Cuban partners to accelerate receipt of payments on overdue amounts.

Of the $124.6 million of cash and cash equivalents, $28.6 million was held in Canada, down from $50.4 million as at

March 31, 2022, and $91.8 million was held at Energas, up from $81 million as at March 31, 2022. The remaining amounts

were held in Cuba and other countries.

Mandatory redemptions of the Corporation’s 8.5% second lien secured notes, as at the interest payment date in April 2022, was

not required for the two-quarter period ended December 31, 2021 as the conditions pursuant to the redemption provisions of the

indenture agreement were not met. For the two -quarter period ended June 3 0, 2022, excess cash flow, as defined in the

indenture agreement, was $11.0 million. Subject to the minimum liquidity condition as defined in the indenture agreement, at the

interest payment date in October 2022 the Corporation will be required to redeem, at par, total second lien secured notes equal

to 50% of excess cash flow, or $5.5 million. In determining the minimum liquidity amounts in October 2022, the $44.8 million of

cash used to repurchase second lien secured notes and unsecured PIK option notes d uring the three months ended

June 30, 2022 will be added back in the calculation of minimum liquidity before and after any such redemption.

2022 Second Quarter Report

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4 Sherritt International Corporation

Adjusted net earnings (loss) from continuing operations(1)

2022 2021

For the three months ended June 30 $ millions $/share $ millions $/share

Net earnings (loss) from continuing operations $ 81.5 $ 0.21 $ (10.4) $ (0.03)

Adjusting items:

Sherritt - Unrealized foreign exchange gain - continuing operations (3.8) (0.01) (8.6) (0.02)

Corporate - Gain on repurchase of notes (13.8) (0.03) (0.8) -

Corporate - Transaction finance charges on repurchase of notes 1.2 - - -

Corporate - Severance and other contractual benefits expense - - 2.4 0.01

Corporate - Unrealized losses on commodity put options - - 3.7 0.01

Oil and Gas and Power - ACL revaluation 1.2 - (0.1) -

Other(2) - - 0.8 -

Total adjustments, before tax $ (15.2) $ (0.04) $ (2.6) $ -

Tax adjustments (0.3) - - -

Adjusted net earnings (loss) from continuing operations $ 66.0 $ 0.17 $ (13.0) $ (0.03)

2022 2021

For the six months ended June 30 $ millions $/share $ millions $/share

Net earnings (loss) from continuing operations $ 97.9 $ 0.25 $ (12.3) $ (0.03)

Adjusting items:

Sherritt - Unrealized foreign exchange gain - continuing operations (4.9) (0.02) (11.2) (0.03)

Corporate - Gain on repurchase of notes (13.8) (0.03) (2.1) (0.01)

Corporate - Transaction finance charges on repurchase of notes 1.2 - - -

Corporate - Severance and other contractual benefits expense - - 2.4 0.01

Corporate - Unrealized losses on commodity put options (0.9) - 4.3 0.01

Corporate - Realized losses on commodity put options 0.9 - - -

Oil and Gas - Gain on disposal of property, plant and equipment (1.3) - - -

Oil and Gas and Power - ACL revaluation 1.5 - 1.5 -

Other(2) 0.5 - 2.6 0.01

Total adjustments, before tax $ (16.8) $ (0.05) $ (2.5) $ (0.01)

Tax adjustments (0.4) - (0.5) -

Adjusted net loss from continuing operations $ 80.7 $ 0.20 $ (15.3) $ (0.04)

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

(2) Other items primarily relate to losses in net finance (expense) income and inventory obsolescence.

Sherritt International Corporation 5

METALS MARKET

Nickel

Following extreme volatility and multi -year highs experienced in the first quarter of 2022, the second quarter nickel prices

experienced a period of reasonably stable prices before they declined towards the end of the quarter, with prices ending Q2 a t

US$10.48/lb, down from US$15.15/l b at the end of Q1. The nickel price averaged US$13.13/lb for Q2 2022, compared to

US$11.97/lb for Q1 2022, a 10% incr ease. Reduced volatility on the London Metal Exchange (LME), continuing COVID -19

restrictions in China, inflationary pressures, and globa l economic recession concerns have all played a role in tempering the

nickel price. Since the beginning of Q3, prices have continued to decline to US$9.66/lb at July 27.

Inventory levels on the LME and Shanghai Futures Exchange (SHFE) continued to decrease in Q2 with the LME inventory falling

from 72,570 tonnes to 66,780 tonnes and the SHFE from 6,097 tonnes to 958 tonnes.

Near-term visibility of market fundamentals, including inventory levels, beyond 2022 is limited given the uncertainty caused by

a number of recent geopolitical and macroeconomic developments relating to Russia’s invasion of Ukraine, slower than expected

resumption of demand from China, the ongoing impacts caused by COVID -19, continued global lo gistics issues, inflationary

pressures and global economic recession concerns.

The long-term outlook for nickel remains positive on account of the strong demand expected from the stainless steel sector, the

largest market for nickel, and the rapidly growing electric vehicle (EV) battery market. Some market observers, such as Wood

Mackenzie, have forecast a prolonged nickel supply deficit beginning in 2026 due to strong demand from the electric vehicle

market and insufficient nickel production coming on stream in the near term.

According to Wood Mack enzie in June 2022, they estimated nickel demand to increase by 41% between 2021 and 2026 and

increase to 2040 at a compound annual growth rate (CAGR) of 4%, with EV battery and storage accounting for 38% of nickel

demand in 2040 a CAGR of 10.5%.

As a resu lt of its unique properties, high -nickel cathode formulations remain the dominant choice for long -range and high

performance electric vehicles manufactured by automakers. Sherritt is particularly well positioned to meet Class 1 demand given

its production capabilities and the fact that Cuba possesses the world’s fourth largest nickel reserves. The adoption of lithium

iron phosphate (LFP) cathode battery chemistry, which is less expensive than nickel -manganese-cobalt (NMC) cathode

chemistry but with lower energy density and less vehicle range, may soften nickel demand from this segment of the market.

Cobalt

Cobalt prices experienced a steady decline during the quarter due to concerns relating to the slow rate of full reopening of the

Chinese economy, global inflation and economic recession concerns.

While the average price for Standard Grade cobalt in Q2 2022 of US$38.19/lb was 6.3% higher than Q1 2022’s average of

US$35.90/lb, according to data collected by Fastmarkets MB, cobalt prices steadily declined from US$39.35/lb at the end of Q1

to close at US$32.25/lb, down 18%. Since the beginning of Q3, prices continued to fall to US$25.70/lb at July 27.

Near term visibility on cobalt prices are limited for much of the same reasons as nickel and the ongoing logistics issues relating

the transportation of cobalt hydroxide from the Democratic Republic of Congo (DRC), the world’s largest supply market.

Longer-term, the demand for cobalt is forecast to be positive as cobalt is a significant component in electric vehicl e battery

chemistries. Given the expected increase in EV adoption in the coming years, cobalt demand is expected to increase despite

the EV industry’s efforts to minimize cobalt content to reduce battery cost. According to CRU in June 2022, they estimated that

cobalt demand is expected to increase at a CAGR of 13% over the next five years (from 173 thousand tonnes in 2021 to

320 thousand tonnes in 2026), with EV battery driving much of this increase with a forecast CAGR of 23%.

2022 Second Quarter Report

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6 Sherritt International Corporation

REVIEW OF OPERATIONS

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

For the three months ended For the six months ended

2022 2021 2022 2021

$ millions (Sherritt's share), except as otherwise noted June 30 June 30 Change June 30 June 30 Change

FINANCIAL HIGHLIGHTS

Revenue(1) $ 205.7 $ 142.2 45% $ 391.3 $ 268.5 46%

Cost of Sales(1) 125.7 120.2 5% 241.7 216.6 12%

Earnings from operations 78.4 19.7 298% 146.1 47.5 nm(2)

Adjusted EBITDA(2) 91.9 34.1 170% 173.1 75.8 128%

CASH FLOW

Cash provided by continuing operations for operating activities $ 41.7 $ 21.6 93% $ 65.9 $ 45.1 46%

Free cash flow(2) 29.5 13.8 114% 43.0 32.7 31%

PRODUCTION VOLUMES (tonnes)

Mixed Sulphides 3,906 4,020 (3%) 8,032 7,951 1%

Finished Nickel 3,704 4,230 (12%) 7,579 8,418 (10%)

Finished Cobalt 396 476 (17%) 842 953 (12%)

Fertilizer 61,965 69,516 (11%) 125,052 133,308 (6%)

NICKEL RECOVERY(3) (%) 89% 85% 5% 89% 84% 6%

SALES VOLUMES (tonnes)

Finished Nickel 3,148 4,268 (26%) 6,906 8,445 (18%)

Finished Cobalt 248 452 (45%) 646 929 (30%)

Fertilizer 49,951 64,722 (23%) 81,390 91,833 (11%)

AVERAGE-REFERENCE PRICE (USD)

Nickel (US$ per pound)(4) $ 13.13 $ 7.87 67% $ 12.54 $ 7.92 58%

Cobalt (US$ per pound)(5) 38.19 21.06 81% 37.00 21.38 73%

AVERAGE-REALIZED PRICE (CAD)(2)

Nickel ($ per pound) $ 16.99 $ 9.46 80% $ 15.83 $ 9.71 63%

Cobalt ($ per pound) 44.16 22.82 94% 42.62 22.35 91%

Fertilizer ($ per tonne) 1,090.96 409.06 167% 922.38 380.50 142%

UNIT OPERATING COST(2) (US$ per pound)

Nickel - net direct cash cost $ 2.19 $ 4.58 (52%) $ 2.85 $ 4.20 (32%)

SPENDING ON CAPITAL(2)

Sustaining $ 12.5 $ 7.7 62% $ 28.2 $ 12.4 127%

Growth 0.8 - - 1.1 - -

$ 13.3 $ 7.7 73% $ 29.3 $ 12.4 136%

(1) Revenue and Cost of sales of Moa Joint Venture and Fort Site is composed of revenue/cost of sales, respectively, recognized by the Moa Joint Venture at Sherritt’s

50% share, which is equity-accounted and included in share of earnings (loss) of Moa Joint Venture, net of tax, and revenue/cost of sales recognized by Fort Site,

which is included in consolidated revenue. For a breakdown of revenue between Moa Joint Venture and Fort Site see the Combined revenue section in the Non-

GAAP and other financial measures section of this press release.

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

(3) The nickel recovery rate measures the amount of finished nickel that is produced compared to the original nickel content of the ore that was mined.

(4) The average nickel reference price for the six months ended June 30, 2022 was impacted by the suspension of nickel trading and disruption events on the LME in

March 2022. The calculation of the average nickel reference price for the six months ended June 30, 2022 is based on LME guidance for disruption events, which

uses the next available price after a disruption event.

(5) Average standard grade cobalt published price per Fastmarkets MB.

Revenue in Q2 2022 increased by 45% to $205.7 million from $142.2 million last year. The revenue increase was largely

attributable to higher average-realized prices(1) for nickel, cobalt, and fertilizer which were up 80%, 94%, and 167%, respectively,

which more than offset lower sales volumes compared to Q2 2021.

Mixed sulphides production at the Moa JV in Q2 2022 was 3,906 tonnes, down 3% from the 4,020 tonnes produced in Q2 2021.

The variance was primarily due to limited access to planned mining faces and reduced Leach Plant capacity due to unplanned

maintenance.

Sherritt International Corporation 7

Sherritt’s share of finished nickel production in Q2 2022 totaled 3,704 tonnes, down 12% from the 4,230 tonnes produced in

Q2 2021 while finished cobalt production for Q2 2022 was 396 tonnes, down 17% from the 476 tonnes produced in the same

period last year. Lower finished metals production in Q2 2022 was primarily a result of timing of the annual maintenance shutdown.

All work has been completed and full production has resumed. In 2021, the annual shutdown was moved to Q3 due to the impact

of COVID-19 and contractor availability. Guidance for nickel and cobalt production remains unchanged; however, based on the

expected nickel to cobalt ratio in the ore, finished cobalt production is estimated to be at the lower end of the 3,400 – 3,700 tonne

range.

Finished nickel and cobalt sales volumes for the three months ended June 30, 2022 were lower than production primarily due

to logistics-related challenges in transporting finished product to customers and the deferral of orders by certain customers that

were impacted by the slowdown of economic activity in China as a result of the country’s zero-COVID policies and recent global

economic headwinds. The affected sales orders were partially offset by higher netback sales to other markets and sales to new

customers, with a portion of the new customer contracts finalizing after quarter end. Subsequent to period end, additional sales

of nickel and cobalt continue to reduce inventory towards more typical levels.

Fertilizers production for the three months ended June 30, 2022 was lower compared to the same period in the prior year in line

with lower metals production. Fertilizer sales volume was lower as a result of lower production and reduced demand caused by

wet weather conditions in western Canada including flooding in Manitoba.

Mining, processing and refining (MPR) costs per pound of nickel sold in Q2 2022 were up 29% from Q2 2021. Higher MPR

costs in Q2 2022 continue to be driven by the significant rise in input costs, which were further compounded by Russia’s invasion

of Ukraine, and higher maintenance costs. Most notably for the Moa JV, sulphur, natural gas and fuel oil prices were 178%,

102% and 75% higher, respectively, when compared the same period last year. Increased input costs were partly offset by

lower purchased sulphuric acid consumption. Purchased sulphuric acid consumption was required in the prior year to offset

lower sulphuric acid production at Moa ahead of the planned sulphuric acid plant shutdown in the second quarter of 2021. Higher

maintenance costs primarily reflected the timing of the annual maintenance shutdown at the refinery which occurred in the

second quarter of 2022 compared to the third quarter of 2021.

Net direct cash cost (NDCC)(1) per pound of nickel sold decreased by 52% to US$2.19/lb in Q2 2022 from US$4.58/lb for

Q2 2021. The improvement was primarily due to higher cobalt and net fertilizer by-product credits generated by higher average-

realized prices which offset lower sales volumes and higher input commodity prices as discussed above. NDCC for Q2 2022,

which was the lowest since the third quarter of 2018, continued to rank Sherritt in the lowest cost quartile of all nickel producers

according to annualized information tracked by Wood Mackenzie. Guidance for NDCC remains unchanged; however, it is

expected to be at the higher end of the US$4.00 – US$4.50/lb range with finished cobalt production estimated to be at the lower

end of the guidance range.

Sustaining spending on capital in Q2 2022 was $12.5 million, up 62% from $7.7 million in Q2 2021. The year-over-year increase

was due primarily to higher planned spending at both the Moa JV and Fort Site. Growth spending on capital, which represents

spending on the joint venture’s expansion projects, was $0.8 million. Of that, $0.6 million was spending on the slurry preparation

plant. The Corporation revised its guidance for sustaining spending on capital at Moa JV and Fort Site from $75 million to

$60 million as a result of freight and order delays and lower contractor availability.

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

Expansion and growth update

The Moa JV advanced with its expansion strategy aimed at growing annual nickel and cobalt production by 15 to 20% from the

combined 34,710 tonnes produced in FY2021, which should result in an increase in annual nickel production by approximately

4,700 to 6,200 tonnes (100% basis), once all projects are completed, and extending the life of mine at Moa beyond 2040. Progress

in Q2 2022 included:

Slurry Preparation Plant

 Construction of the slurry preparation plant at Moa is progressing on schedule with civil construction 50% complete, 85%

of the contracts for supply of materials and services have been awarded and the slurry pipeline design has been

completed and all materials have been ordered. In addition, the structural steel has arrived at site and pre-fabrication will

commence in early Q3 with field assembly in the latter half of Q4.

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8 Sherritt International Corporation

 The project cost and schedule remain on track at an estimated cost of US$27 million (100% basis) with expected

completion in early 2024. In 2022, US$9 million (100% basis) in growth spending on capital, all of which has been

committed, will be used for long lead materials and equipment, civil and mechanical construction.

 The project is expected to deliver a number of benefits, including reduced ore haulage, lower carbon intensity from

mining, and increased annual production of nickel and cobalt contained in mixed sulphides of approximately 1,700 tonnes

commencing in mid-2024.

Moa Processing

 The feasibility study for a leach plant sixth train has been completed and approved by the Cuban authorities. Inspection

of previously installed equipment has been completed by third party experts and determined to be in acceptable

condition.

 Basic engineering continues on the acid plants to meet the acid requirements from the expansion projects.

 Initiated assessment of plant capacity and other infrastructure with expected completion in Q3.

Refinery

 An external engineering firm has been contracted and basic engineering has commenced.

Economic Cut-Off Grade and Life of Mine

 External consultants continued to advance on the initial pit designs for reserves.

 Continued to engage with the Oficina Nacional de Recursos Minerales (ONRM), Cuba’s Natural Resources Ministry, with

expected approval during the second half of the year.

 Sherritt plans to release an updated NI 43-101 Technical Report before the end of year.

Sherritt continues to evaluate its growth capital spend estimates in light of supply chain challenges and inflationary price pressures

on construction materials, equipment, and labour costs. Additional engineering and design work continues and will facilitate more

accurate cost estimates. The most recent assessment of expansion capital costs continues to indicate that costs are expected to

be approximately US$25,000 per tonne of new nickel capacity consistent with previous disclosure. Sherritt will review additional

ESG considerations in the expansion plans as engineering advances.

Spending on growth capital is expected to be self-funded by the Moa JV primarily using operating cash flows with the option to

utilize Sherritt’s revolving credit facility for up to $30 million at the refinery in Fort Saskatchewan. Total growth spending on capital

of US$30 million (100% basis) is expected in 2022 for the slurry preparation plant, ordering of long lead items, and engineering

work related to finalizing costs of the remaining expansion projects.

Sherritt expects to provide an update on the rollout and spending on capital related to the expansion strategy with each of its

quarterly results with full project approval expected in the second half of 2022.