Sherritt Reports Fourth Quarter and Full Year 2024 Results; Strong Operational Performance at Metals and Power; Provides Guidance for 2025

Sherritt International Corporation 1

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Sherritt Reports Fourth Quarter and Full Year 2024 Results;

Strong Operational Performance at Metals and Power;

Provides Guidance for 2025

TORONTO – February 5, 2025 – Sherritt International Corporation (“Sherritt”, the “Corporation”) (TSX: S), a world leader in

using hydrometallurgical processes to mine and refine nickel an d cobalt – metals deemed critical for the energy transition –

today reported its financial results for the three months and year ended December 31, 2024 and provided its 2025 guidance. All

amounts are in Canadian dollars unless otherwise noted.

“Sherritt demonstrated exceptional performance in 2024, with Metals production, Power production and net direct cash costs all

falling within their guidance ranges despite significant external challenges,” said Leon Binedell, President and CEO of Sherritt.

“Our teams skillfully managed through port and rail disruptions in Canada, while successfully navigating natural disasters and

power infrastructure challenges in Cuba. We implemented strategic adjustments, including optimizing our maintenance schedule

and strategically building feed inventory at our refinery to en sure operational continuity. Our comprehensive risk management

protocols proved highly effective, preventing any health, safety, or environmental incidents during Cuba’s natural disasters.”

Mr. Binedell continued, “We achieved strong results despite challenging nickel market conditions, with nickel sales volumes

increasing 22% year-over-year. Our financial position in Canada remains solid, bolstered by the resumption of the Cobalt Swap

which yielded a $30 million distribution. In our Power division, the maintenance work completed in 2024 to bring online an

additional turbine and the improvements in equipment availability are leading to higher levels of electricity production. This in

turn is translating into higher dividends in Canada which total ed $13 million last year and which we see significantly increasi ng

with $25 million to $30 million expected this year. Additionally, our comprehensive organizational restructuring and cost reduction

initiatives are projected to deliver approximately $17 million in annualized savings.

Looking ahead to 2025, we are focused on driving operational excellence and maximizing value from our Moa JV expansion.

We continue to advance key strategic initiatives including our mixed hydroxide precipitate project targeting the North American

EV market. Sherritt remains well positioned to navigate current market conditions and maintain competitiveness despite Chinese-

driven supply pressures.”

FOURTH QUARTER AND FULL YEAR 2024 RESULTS AND SELECTED DEVELOPMENTS(1)

 Finished nickel and cobalt production at the Moa Joint Venture (“Moa JV ”) in Q4 2024 was 3,853 tonnes and

465 tonnes, respectively, (Sherritt’s share (1)). For the full year 2024 finished nickel and cobalt production was

30,331 tonnes and 3,206 tonnes, respectively, (100% basis) both within their respective annual guidance ranges.

 Finished nickel sales totaled 4,326 tonnes in Q4 2024 and 15,678 tonnes for the full year both exceeding production.

Sales in Q4 2024 were the highest in two years. Year-ove r-year finished nickel sales increased by 22% reflecting

Sherritt’s focused effort to expand ma rket opportunities. Fini shed cobalt sales were 465 tonnes in Q4 2024 and

1,638 tonnes for the full year.

 Net direct cash cost (“NDCC”) (2) was US$5.44/lb in Q4 2024. Full year 2024 NDCC (2) of US$5.94/lb was within its

guidance range and was a pronounced improvement over 2023 being 18% lower year-over-year despite a 41%

reduction in cobalt by-product credits due to lower average-realized prices(2). This improvement was driven by notably

lower mining, processing, and refining costs per pound of nickel sold (“MPR/lb”).

 Electricity production was 171 GWh in Q4 2024 and 816 GWh for the full year, respectively. In Q4 2024, Sherritt’s

Power division played a meaningful role in restoring the Cuban national grid following nationwide power outages.

Despite the power outages, electricity production in 2024 reac hed a six-year high as a result of Sherritt’s multiyear

efforts to optimize its Power division by bringing new gas wells into production, improv ing equipment availability and

increasing utilization rates.

 Electricity unit operating cost(2) was $30.64/MWh in Q4 2024. Full year was $34.29/MWh, slightly above the upper

end of the annual guidance range of $34.00/MWh, due to the power outages and frequency control measures in Cuba,

as well as the weaker Canadian dollar on U.S. dollar-denominated costs for the full year 2024.

2024 Fourth Quarter Report

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2 Sherritt International Corporation

 Organizational restructuring and cost reduction initiatives in 2024 are expected to yield annualized savings of

approximately $17.0 million.

 Net loss from continuing operations was $22.5 million, or $(0.06) per s hare in Q4 2024 and $73.1 million, or

$(0.18) per share for the full year.

 Adjusted net loss from continuing operations(2) was $10.2 million or $(0.03) per share in Q4 2024 and $56.3 million

or $(0.14) per share for the full year, and primarily excludes $8.4 million non-cash impairment of intangible assets in

Oil and Gas recognized in Q4 and $6.9 million and $8.2 million non-cash loss on rehabilitation provisions, respectively,

as a result of updates to valuation assumptions for rehab ilitation and closure costs on legacy Oil and Gas assets in

Spain.

 Adjusted EBITDA(2) was $15.4 million in Q4 2024 and $32.4 million for the full year.

 Cobalt Swap distributions totaled $29.8 million in Q4 2024, including $23.7 million in cash and 223 tonnes of finished

cobalt valued at $6.1 million (including both Sherritt’s share and the General Nickel Company S.A. (“GNC”) redirected

share).

 Power division dividends in Canada were $7.0 million in Q4 2024, totaling $13.0 million for the year.

 Available liquidity in Canada as of December 31, 2024 was $62.4 million.

 Construction on phase two of the Moa JV expansion project progressed with piping installation and internal brick

lining of vessels during the quarter, along with some pre-commissioning activities. With lower nickel and cobalt prices,

Sherritt continues to exercise capital preservation measures and has scheduled certain expenditures for Q1 2025 when

construction is expected to be completed and following which, the ramp-up is expected to commence.

(1) References to operating and financial metrics in this press release, unless otherwise indicated, are to “Sherritt’s share” whic h is consistent with the Corporation’s

definition of reportable segments for financial statement purposes. Sherritt’s share of “Metals” includes the Corporation’s 50% interest in the Moa JV, its 100% interest

in the utility and fertilizer operations in Fort Saskatchewan (“Fort Site”) and its 100% interests in subsidiaries established to buy, market and sell certain of the Moa

JV’s nickel and cobalt production and the Corporation’s cobalt inventory received under the Cobalt Swap agreement (“Metals Marketing”). Sherritt’s share of Power

includes the Corporation’s 33⅓% interest in Energas S.A. (“Energas”). References to Corporate and Other and Oil and Gas includes the Corporation’s 100% interest

in these businesses. Corporate and Other refers to the Corporate head office and growth and market development support. Referen ces to Fort Site directly is to the

Corporation’s 100% interest in the utility and fertilizer operations.

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

(3) For additional information on the Cobalt Swap, see Note 12 – Advances, loans receivable and other financial assets of the conso lidated financial statements for the

year ended December 31, 2024.

2025 ANNUAL GUIDANCE

Metals:

 Finished nickel and cobalt production are expected to be between 31,000 to 33,000 tonnes (100% basis) and 3,300 to

3,600 tonnes (100% basis), respectively. This increase is attr ibuted to enhanced availability of mixed sulphides from

the Moa mine site to the refinery, following the completi on, ramp up and debottlenecking of the phase two expansion.

Production is expected to be weighted towards the latter part of the year. To maximize refinery operation efficiencies

before and during the ramp-up period, third-party feed will be procured and processed as necessary, subject to market

conditions.

 NDCC (1) is expected to be between US$5.75 to US$6.25 per pound of nickel sold based on a forecast negative impact

from future commodity prices which are expected to result in year-over-year lower cobalt by-product credits and higher

input costs as well as planned Fort Site ammonia and Moa JV acid plant maintenance offsetting the benefits of higher

expected production and sales and cost optimization initiatives implemented in 2024.

 Sustaining spending on capital (1), excluding spending on the new tailings fa cility, is expected to be $35.0 million (Moa

JV 50% basis, Fort Site 100% basis).

Sherritt International Corporation 3

 Sustaining spending on capital (1) of $40.0 million (50% basis) is related to advancing Moa JV’s tailings management

project as outlined in its 2023 National Instrument 43-101 Technical Report. The new tailings facility will be engineered

and built to international standards and wi ll provide a tailings solution for the M oa mine over the entirety of its current

mine life of approximately 25 years. The estimated spending in 2025 includes early works spending that was deferred

from 2024. Subsequent to year end, the Moa JV secured a US$60.0 million (100% basis) equivalent loan in Cuban

pesos from a Cuban financial institution with a 5-year maturity that will primarily be utilized to support capital spending

on tailings management.

 Growth spending on capital (1) is expected to be $5.0 million (Moa JV 50% basis) due to planned deferral of spending

from 2024 which is to be used for the completion of phase two of the Moa JV expansion as noted above.

Power:

 Electricity production is expected to be between 800 to 850 GWh (33 ⅓% basis) on higher gas and equipment availability

and improved utilization rates despite lower production from Varadero due to planned grid frequency control.

 Electricity unit operating cost (1) is expected to be between $23.00 to $24.50 per MWh on lower maintenance and higher

electricity production.

 Spending on capital (1) is expected to be $2.0 million (33⅓% basis) reflecting lower maintenance spending.

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

Q4 2024 FINANCIAL HIGHLIGHTS

For the three months ended For the year ended

2024 2023 2024 2023

$ millions, except per share amount December 31 December 31 Change December 31 December 31 Change

Revenue $ 45.7 $ 34.8 31% $ 158.8 $ 223.3 (29%)

Combined revenue(1) 160.3 140.5 14% 577.6 652.9 (12%)

Loss from operations and joint venture (16.9) (43.4) 61% (43.5) (43.4) -

Net loss from continuing operations (22.5) (53.4) 58% (73.1) (64.3) (14%)

Net loss for the period (22.9) (53.4) 57% (72.8) (64.6) (13%)

Adjusted EBITDA(1) 15.4 (7.0) 320% 32.4 46.2 (30%)

Adjusted loss from continuing operations(1) (10.2) (27.9) 63% (56.3) (28.1) (100%)

Net loss from continuing operations ($ per share) (0.06) (0.13) 54% (0.18) (0.16) (13%)

Adjusted loss from continuing operations ($ per share)(1) (0.03) (0.07) 57% (0.14) (0.07) (100%)

Cash used by continuing operations for operating activities (21.5) (18.1) (19%) (25.9) 28.2 (192%)

Combined free cash flow(1) (20.2) (39.1) 48% (19.2) (15.9) (21%)

Average exchange rate (CAD/US$) 1.398 1.362 3% 1.370 1.350 1%

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

2024 2023

$ millions, as at December 31 December 31 Change

Cash and cash equivalents

Canada $ 32.0 $ 21.5 49%

Cuba(1) 113.1 96.3 17%

Other 0.6 1.3 (54%)

145.7 119.1 22%

Loans and borrowings 372.5 355.6 5%

The Corporation's share of cash and cash equivalents in the Moa Joint Venture,

not included in the above balances: $5 . 7 $5 . 9 ( 4 % )

(1) As at December 31, 2024, $111.4 million of the Corporation’s cash and cash equivalents was held by Energas (December 31, 2023 - $93.9 million).

2024 Fourth Quarter Report

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4 Sherritt International Corporation

Cash and cash equivalents were $145.7 million as at December 31, 2024 compared to $148.6 million as at September 30, 2024.

As at December 31, 2024, total available liq uidity in Canada, which is composed of cash and cash equivalents in Canada of

$32.0 million and available credit facilities of $30.4 million was $62.4 million compared to $71.4 million as at September 30, 2024.

During the quarter, Sherritt received $23.7 million of Cobalt Swap cash distributions, $7.0 million of dividends from Energas and

$4.7 million on the settlement of in-the-money nickel put options. These receipts were offset by cash used for operating activities

primarily reflecting timing of working capital receipts and paym ents, $9.4 million for interest on the Corporation’s 8.5% secured

second lien notes (“Second Lien Notes”), and $3.6 million on contractually obligated rehabilitation and closure costs related t o

legacy Oil and Gas assets in Spain.

On a full year basis, total available liquidity in Canada was in line with the $63.0 million as at December 31, 2023. During 2024,

Sherritt received $23.7 million of cash Cobalt Swap distributi ons and $13.0 million of dividends from Energas, $36.2 million of

proceeds from operating activities at Fort Site on higher operating earnings and timing of working capital receipts and payments,

$30.0 million as full repayment of short-term working capital advances made to the Moa JV in 2023 and $5.9 million net proceeds

from nickel put options. These receipts were offset by cash us ed for operating activities primarily on timing of working capita l

receipts and to support planned maintenance activities at Power, $18.8 million for interest on the Second Lien Notes, $6.6 million

for property, plant and equipment and $27.2 million on contractually obligated rehabilitation and closure costs related to legacy

Oil and Gas assets in Spain.

At current spot nickel prices, the Corpor ation expects that cobalt dividends and ca sh distributions under the Cobalt Swap

agreement will commence in the second half of the year and will not meet the annual minimum amount in 2025. The Moa JV’s

cash and cobalt distributions to the Corporation are determined based on available cash in excess of liquidity requirements.

Determinants of liquidity include anticipated nickel and cobalt prices and sales volumes, planned spending on capital at the Moa

JV including growth capital, capital committed toward the new ta ilings facility net of financing, working capital needs, expect ed

financing and other expected liquidity requir ements. Available cash is also impacted by changes in working capital primarily

related to changes in inventory, and timing of receipts and payments, including receipts on nickel and cobalt sales subsequent

to shipment.

With the completion of maintenance work in 2024 to bring online an additional turbine and to improve equipment availability to

process gas from the recently comple ted wells and based on 2025 guidance estimate s for production volumes, unit operating

costs(1) and spending on capital(1) disclosed in the Outlook section, total dividends in Canada from Energas in 2025 are expected

to be between $25.0 million and $30.0 million.

As at December 31, 2024, the Corporation was in compliance with all its debt covenants.

At the Second Lien Notes interest payment date in October 2024, the Corporation was not re quired to make a mandatory

redemption of Second Lien Notes as it did not have Excess Cash Flow as defined in the Second Lien Notes indenture agreement

for the two-quarter period ended June 30, 2024. For the two-quarter period ended December 31, 2024, Excess Cash Flow was

$5.5 million. Subject to the minimum liquidity threshold of $75.0 million pursuant to the Sec ond Lien Notes Indenture at the

interest payment date in April 2025, the Corporation will be required to redeem, at par, total Second Lien Notes equal to 50% of

Excess Cash Flow, or $2.8 million.

Subsequent to the quarter end, consistent with its prudent approach to managing liqui dity, Sherritt elected not to pay cash

interest due in January 2025 of $3.6 million and added the payment-in-kind interest to the principal amount owed to noteholders

in its 10.75% unsecured PIK option notes (“PIK notes”).

Sherritt International Corporation 5

REVIEW OF OPERATIONS

Metals

For the three months ended For the year ended

2024 2023 2024 2023

$ millions (Sherritt's share), except as otherwise noted December 31 December 31 Change December 31 December 31 Change

FINANCIAL HIGHLIGHTS(1)

Revenue $ 148.3 $ 125.9 18% $ 526.6 $ 603.7 (13%)

Cost of sales 146.6 146.6 - 532.3 601.4 (11%)

Loss from operations (1.0) (22.0) 95% (18.5) (2.1) (781%)

Adjusted EBITDA(2) 14.6 (8.7) 268% 40.0 53.6 (25%)

CASH FLOW(1)

Cash provided by continuing operations for operating

activities(2) $5 . 9 $ 3.4 74% $ 93.1 $ 115.9 (20%)

Free cash flow(2) (0.3) (14.2) 98% 59.1 58.9 -

PRODUCTION VOLUMES (tonnes)

Mixed Sulphides 3,552 3,514 1% 15,847 15,084 5%

Finished Nickel 3,853 3,744 3% 15,166 14,336 6%

Finished Cobalt 465 330 41% 1,603 1,438 11%

Fertilizer 67,648 61,092 11% 250,272 219,707 14%

NICKEL RECOVERY(3) (%) 84% 89% (6%) 86% 88% (2%)

SALES VOLUMES (tonnes)

Finished Nickel 4,326 3,511 23% 15,678 12,888 22%

Finished Cobalt 465 399 17% 1,638 2,720 (40%)

Fertilizer 63,299 55,509 14% 179,135 170,161 5%

AVERAGE-REFERENCE PRICE(4) (US$ per pound)

Nickel $ 7.27 $ 7.82 (7%) $ 7.63 $ 9.74 (22%)

Cobalt 11.59 15.69 (26%) 12.77 16.30 (22%)

AVERAGE-REALIZED PRICE(2) (CAD)

Nickel ($ per pound) $ 9.98 $ 10.87 (8%) $ 10.30 $ 13.36 (23%)

Cobalt ($ per pound) 12.30 17.23 (29%) 13.30 17.47 (24%)

Fertilizer ($ per tonne) 502.93 414.80 21% 503.19 548.16 (8%)

UNIT OPERATING COST(2) (US$)

Nickel - net direct cash cost (US$ per pound) $ 5.44 $ 7.87 (31%) $ 5.94 $ 7.22 (18%)

SPENDING ON CAPITAL(2)(CAD)

Sustaining $6 . 0 $ 19.0 (68%) $ 28.3 $ 51.3 (45%)

Growth 5.3 2.3 130% 11.4 11.4 -

$ 11.3 $ 21.3 (47%) $ 39.7 $ 62.7 (37%)

(1) The amounts included in the Financial Highlights, and cash flow sections for Metals above include the combined results of the Moa JV, Fort Site and Metals Marketing.

Breakdowns of revenue, Adjusted EBITDA, and the components of free cash flow (cash provided (used) by continuing operations for operating activities and Property,

plant and equipment expenditures) for each of these operations are included in the Combined Revenue, Adjusted EBITDA and Free c ash flow reconciliations,

respectively, 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 rel ease.

(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) Reference sources: Nickel – London Metal Exchange (“LME”). Cobalt - Average chemical-grade cobalt price published per Argus.

2024 Fourth Quarter Report

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6 Sherritt International Corporation

Revenue

Metals revenue for the three months and year ended Decem ber 31, 2024 was $148.3 million and $526.6 million compared to

$125.9 million and $603.7 million, respectively, in the same periods in 2023.

Nickel revenue for the three months and year ended December 31, 2024 was $95.3 million and $355.9 million compared to

$84.1 million and $379.6 million, respectively, in the same periods in 2023. In Q4 2024, the 23% increase in nickel sales volume

offset the 8% lower average-realized price(1). For the year ended December 31, 2024, the 22% increase in nickel sales volume

was more than offset by the 23% decrease in average-realized price (1) in 2024. Sales volumes were higher in line with higher

production in each quarter in 2024, except in Q3 where demand is typically softer and as a result of the Canadian rail lock-out

that temporarily disrupted logistics. In Q4 2024, sales volume was above production due to strong spot sales and the realization

of sales deferred as a result of the Canadian rail lock-out in the third quarter.

Cobalt revenue for the three months and year ended December 31, 2024 was $12.6 million and $48.0 million compared to

$15.2 million and $104.8 million, respectively, in the same peri ods in 2023. Lower revenue in the current year periods was

primarily due to the timing of receipts and sales of cobalt by Sherritt under the Cobalt Swap agreement and lower average-

realized prices(1). The average-realized prices (1) for cobalt were 29% and 24% lower in the current year periods, respectively,

compared to the same periods in 2023. For more information regarding the timing of Cobalt Swap receipts, sales and distributions

in 2024, refer to the Cobalt Swap section below.

Sherritt will continue to leverage its marketing strategy in developing new avenues for sales which, concurrent with implementing

strategic costs reductions, is expected to effectively weather t he unabated oversupply strategy from China, Indonesia and the

Democratic Republic of the Congo. Sherritt is actively pursuing spot sales opportunities, new customer development and market

opportunities to counter dependance on supply from these countries.

Fertilizer revenue for the three months and year ended December 31, 2024 was $ 31.8 million and $90.1 million compared to

$23.1 million and $93.3 million, respective ly, in the same periods in 2023. Fertilizer sales volumes were 14% and 5% higher

while average-realized prices (1) were 21% higher and 8% lower for the three months and year ended December 31, 2024,

respectively, compared to the same periods in 2023. Higher fert ilizer sales volumes in 2024 reflect better available production

for sale compared to 2023 consistent with higher nickel production and better equipment availability.

Cobalt Swap

In Q4 2024, Sherritt focused e fforts to maximize distributions under the Cobalt Swap agreement. In Q3 2024, Sherritt had

indicated the Cobalt Swap distribution in Q4 could be up to a maximum of $50.0 million (including both Sherritt’s share and

GNC’s redirected share) assuming midpoint guidance for annual nickel production and first half 2024 average nickel and cobalt

reference prices of US$8.00/lb and US$13. 50/lb continued in the second half of th e year. Despite average nickel and cobalt

reference prices in the second half of 2024 being US$7.32/lb and US$11.92/lb, respectively, well below their first half averages,

Sherritt’s focused efforts to prudently manage and maximize its ca sh flows in the Moa JV led to significant distributions of

$23.7 million in cash and 223 tonnes of fini shed cobalt with an in-kind value of $6.1 million (including both Sherritt’s share and

GNC’s redirected share) for a total of $29.8 million.

In Q4 2024, Sherritt sold 50 tonnes of t he 223 tonnes of finished cobalt that it re ceived under the Cobalt Swap agreement

recognizing revenue of $1.5 million. In 2023, Sherritt had received 100% of the annual maximum amount of cobalt (2,082 tonnes)

by the end of the second quarter and had sold virtually all of that cobalt by the end of the year, including 49 tonnes in Q4 2023.

Sales of cobalt from the Cobalt Swap in full year 2024 were 73 tonnes, or $2.4 million, compared to 2,059 tonnes, or $80.1 million,

in 2023.

At current spot nickel prices, the Corpor ation expects that cobalt dividends and ca sh distributions under the Cobalt Swap

agreement will commence in the second half of the year and will not meet the annual minimum amount in 2025. The Moa JV’s

cash and cobalt distributions to the Corporation are determined based on available cash in excess of liquidity requirements.

Determinants of liquidity include anticipated nickel and cobalt prices and sales volumes, planned spending on capital at the Moa

JV including growth capital, capital committed toward the new ta ilings facility net of financing, working capital needs, expect ed

financing and other expected liquidity requir ements. Available cash is also impacted by changes in working capital primarily

related to changes in inventory, and timing of receipts and payments, including receipts on nickel and cobalt sales subsequent

to shipment.

Sherritt International Corporation 7

While the timing of receipts and sales of cobalt under the Cobalt Swap results in variances in cobalt sales volume, revenue and

cost of sales for Sherritt, they do not have a material impact on earnings from operations, average-realized prices(1), cobalt by-

product credits, or NDCC (1). This is because the variance in revenue and co sts of Sherritt’s share of cobalt under the Cobalt

Swap is offset by Sherritt’s share of revenue and costs of the Moa JV and the cost of cobalt sold on volumes of cobalt redirected

from GNC is determined based on the in-kind value of cobalt calculated as the cobalt reference price from the month preceding

distribution less a mutually agreed selling cost adjustment.

Production

Mixed sulphides production at the Moa JV for the three mont hs and year ended December 31, 2024 was 3,552 tonnes and

15,847 tonnes, 1% and 5% higher, respectively, compared to the same periods in 2023. Lower maintenance and improved feed

to the processing plant following the completion of the new Slurry Preparation Plant (“SPP”) in the first quarter of 2024 contributed

to higher production throughout the year. During Q4 2024 a number of external factors in Cuba occurred including an earthquake,

hurricanes and nationwide power outages t hat individually did not materially impact mixed sulphide precipitate (“MSP”)

production but in aggregate and when combined with heavy rains which required the processing of lower grade stockpiles,

resulted in MSP production being lower than it would have been otherwise.

Finished nickel production for the three months and year ended December 31, 2024 was 3,853 tonnes and 15,166 tonnes, 3%

and 6% higher, respectively, compared to the same periods in 2023 primarily as a result of higher mixed sulphides feed

availability at the refinery partly offset by lower third-party feed purchases in 2024.

Finished cobalt production for the thr ee months and year ended December 31, 2024 was 465 tonnes and 1,603 tonnes, 41%

and 11% higher, respectively, compared to the same periods in 2023 for the same reasons as finished nickel. Third-party feed

processed in Q4 2024 had higher cobalt content compared to feed processed in Q4 2023.

Finished nickel and cobalt production for full year 2024, on a 100% basis, was within the annual guidance ranges.

Fertilizer production for the three months and year ended December 31, 2024 was 67,648 tonnes and 250,272 tonnes, 11% and

14% higher, respectively, compared to the same periods in 2023 in line with higher metals production and the implementation

of operational improvements during 2024.

NDCC(1)

NDCC(1) per pound of nickel sold for the three months and year ended December 31, 2024 wa s US$5.44/lb and US$5.94/lb,

respectively, compared to US$7.87/lb and US$7.22/lb in the same periods in 2023. In each of the current year periods, NDCC(1)

significantly improved as a result of lo wer MPR/lb and third-party feed costs and hi gher net fertilizer by-product credits, par tly

offset by lower cobalt by-product credits. NDCC (1) was also positively impacted by higher nickel sales volume in each of the

current year periods compared to the same periods in the prior year. NDCC(1) for 2024 was within the annual guidance range.

Overall, finished nickel and cobalt production significantly benefitted from the Corporation’s multiyear production optimizatio n

and expansion programs that have resulted in improved mining production and refining process flows which provided operational

stability and improved operational efficiencies and have been instrumental in driving NDCC(1) down in this volatile commodities

market.

MPR/lb was 14% and 15% lower in Q4 and full year 2024, respectively, compared to the same periods in 2023. In Q4 2024, the

average price for natural gas and diesel were 44% and 22% lower, respectively, while sulphur was 3% higher, compared those

in Q4 2023. For the full year 2024, average prices for sulp hur, natural gas and diesel were 22%, 45% and 13% lower,

respectively, compared to those in 2023. Full year MPR was also positively impacted by lower maintenance costs, operational

improvements and lower purchases of sulphuric acid.

Third-party feed costs were 45% and 35% lower in Q4 and full year 2024 compared to in the same periods in 2023 on lower

feed availability.

Net fertilizer by-product credits were significantly higher in Q4 2024 compared to Q4 2023 as a result of higher sales volumes

and average-realized prices(1) as well as lower maintenance costs. For the full year 2024, net fertilizer by-product credits were

higher, however, lower fertilizer maintenance costs were partly offset by lower average-realized prices (1) in full year 2024

compared to 2023.

Cobalt by-product credits (2) were 34% and 41% lower in Q4 and full year 2024, respectively, primarily as a result of lower

average-realized prices(1).

2024 Fourth Quarter Report

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8 Sherritt International Corporation

Spending on capital(1)

During the fourth quarter, in response to market conditions , Sherritt took a prudent approach and reduced its spending on

capital(1) to conserve liquidity. As a result, total spending on capita l for sustaining and growth activities for the year were both

lower than 2024 guidance.

Sustaining spending on capital for the three months and year ended December 31, 2024 was $6.0 million and $28.3 million

compared to $19.0 million and $51.3 million in the same periods in 2023, respectively.

Growth spending on capital for the three months and year ended Decem ber 31, 2024 was $5.3 million and $11.4 million

compared to $2.3 million and $11.4 million in the same periods in 2023, respectively. Spending on capital in 2024 was primarily

related to the second phase of the Moa JV expansion program.

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

(2) Cobalt by-product credits include Sherritt’s share of cobalt revenue per pound of nickel sold only.

Expansion program and strategic developments

Moa JV expansion program and tailings update

Sherritt’s low cost and low capital intensity Moa JV expans ion program continues to adv ance. Phase one, the SPP, was

completed in early 2024 reducing ore haulage distances, lowering carbon intensity from mining and increasing throughput over

the life of mine.

Construction on phase two progressed with piping installation and internal brick lining of vessels along with some pre-

commissioning activities. With lower nickel and cobalt prices, S herritt continues to exercise capital preservation measures and

has scheduled certain expenditures for Q1 2025 when construction is expected to be completed and following which, the ramp-

up is expected to commence.

Concurrent with the phase two completion and ramp up, the Moa JV is undertaking a series of measures to remove minor

processing bottlenecks to support the expected 20% increase in annual MSP production. The additional MSP is expected to fill

the refinery to nameplate capacity to maximize profitability from the joint venture’s own mine feed, displacing lower margin third-

party feeds and increasing overall finished nickel and cobalt production.

In line with its life of mine plan and in consideration of growing international focus on tailings risks, the Moa JV is advanci ng a

tailings management project as outlined in its 2023 National Inst rument 43-101 Technical Report. The new tailings facility will

be engineered and built to international st andards and will provide a tailings solution for the Moa mine over the entirety of i ts

current mine life of approximately 25 year s. The Corporation expects the new tailin gs facility to be commissioned in 2026.

Spending on capital(1) in 2024 was $13.1 million for initial engineering and infrastructure work and the expected remaining capital

cost is estimated to be approximately $4 0.0 million (50% basis) in each of 2025 and 2026. The tailings management project is

a capital efficient and robust tailings solution driven to meet expected production needs, international standards, and Moa JV’s

strategic environmental priorities.

Strategic developments

Sherritt, through its mixed hydroxide precip itate processing project (“MHP Project”), is advancing a flowsheet to convert nicke l

intermediates via midstream processing to produce high-purity nickel and cobalt sulphates, two fundamental feedstock materials

for the electric vehicle supply chain.

During the quarter, Sherritt continued to advance and derisk the MHP Project. The refinery flow sheet was validated through the

completion of process development batch testing and continuous solvent extraction (“SX”) pilot work programs which yielded high-

purity nickel and cobalt products, meeting battery grade specif ications. Initial engineering and capital cost estimates were

completed, and site assessment activities identified four potential refinery locations in Canada. Sherritt continued to engage with

federal and provincial governments, potential customers and funding partners, including offtake partners for refinery products and

by-products. These engagement activities will continue in 2025 with a focus on securing external partners and funding support.

Additionally, Sherritt continues to select ively advance metallurgy re search and flowsheet development programs on potential

future sources of nickel and cobalt, in cooperation with third parties and via external technical services, towards ensuring sufficient

future critical mineral processing capacity and supply in North America.