Sherritt Obtains Final Court Order Approving Transaction to Improve its Capital Structure

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES

OR FOR DISSEMINATION IN THE UNITED STATES

Sherritt Obtains Final Court Order

Approving Transaction to Improve its Capital Structure

TORONTO, August 6, 2020 – Sherritt International Corporation (“Sherritt” or the “Corporation”)

(TSX:S) announced today that, in connection with the Corporation’s previously announced

transaction to improve its capital structure (the “Transaction”), the Corporation has obtained a

final court order from the Ontario Superior Court of Justice (Commercial List) approving the plan

of arrangement under the Canada Business Corporations Act (the “ Plan of Arrangement ”)

pursuant to which the Transaction is being implemented.

As previously announced, the Plan of Arrangement was approved by holders of the Corporation’s

outstanding (i) 8.00% senior unsecured debentures due 2021, (ii) 7.50% senior unsecured

debentures due 2023, and (iii) 7.875% senior unsecured notes due 2025 (the “Noteholders”) and

holders of the Corporation’s obligations under its Ambatovy Joint Venture partner loans (the “CFA

Lenders” and together with the Noteholders, the “ Debtholders”) at the meeting of Debtholders

held on July 23, 2020.

It is expected that the Transaction will be completed at the end of August 2020 , subject to the

satisfaction or waiver of all other conditions to the Plan of Arrangement. Upon implementation,

the Plan of Arrangement would bind all Debtholders of the Corporation.

This news release is not an offer of securities for sale in the United States. The securities to be

issued pursuant to the Transaction have not been and will not be registered under the U.S.

Securities Act of 1933 (the “ 1933 Act”), or the securities laws of any state of the United States,

and may not be offered or sold within the United States except pursuant to an exemption from the

registration requirements of the 1933 Act. The securities to be issued pursuant to the Transaction

will be issued an d distributed in reliance on the exemption from registration set forth in Section

3(a)(10) of the 1933 Act (and similar exemptions under applicable state securities laws).

About Sherritt

Sherritt is a world leader in the mining and refining of nickel and cobalt from lateritic ores with

projects, operations and investments in Canada, Cuba and Madagascar. The Corporation is the

largest independent energy producer in Cuba, with extensive oil and power operations across the

island. Sherritt licenses its proprietary technologies and provides metallurgical services to mining

and refining operations worldwide. The Corporation’ s common shares are listed on the Toronto

Stock Exchange under the symbol “S”.

For more information, please contact:

Joe Racanelli, Director of Investor Relations

Telephone: 416-935-2457

Email: [email protected]

www.sherritt.com

Forward-Looking Statements

This news release contains certain forward-looking statements. Forward-looking statements can

generally be identified by the use of statements that include such words as “believe”, “expect”,

“anticipate”, “intend”, “plan”, “forecast”, “likely”, “may”, “will”, “could”, “should”, “suspect”, “outlook”,

“projected”, “continue” or other similar words or phrases. Specifically, forward-looking statements

in this document include, but are not limited to, statements set out in this news release relating to

the expected process for and timing of implementing the Transaction.

Forward-looking statements are not based on historic facts, but rather on current expectations,

assumptions and projections about future events, including matters relating to the proposed

Transaction; commodity and product prices and demand; the level of liquidity; production results;

realized prices for production; earnings and revenues; and certain objectiv es, goals and plans.

By their nature, forward looking statements require the Corporation to make assumptions and are

subject to inherent risks and uncertainties. There is significant risk that predictions, forecasts,

conclusions or projections will not p rove to be accurate, that those assumptions may not be

correct and that actual results or payments may differ materially from such predictions, forecasts,

conclusions or projections.

The Corporation cautions readers of this news release not to place undue reliance on any forward-

looking statement as a number of factors could cause actual future results, conditions, actions or

events to differ materially from the targets, expectations, estimates or intentions expressed in the

forward-looking statements. These risks, uncertainties and other factors include, but are not

limited to, risks associated with the ability of the Corporation to receive all remaining necessary

third party approvals in order to complete the Transaction; the ability of the Corporation to achieve

its financial goals; the ability of the Corporation to operate in the ordinary course, including with

respect to satisfying obligations to service providers, suppliers, contr actors and employees; the

ability of the Corporation to continue as a going concern; the ability of the Corporation to continue

to realize its assets and discharge its liabilities and commitments; the Corporation’s future liquidity

position, and access to capital, to fund ongoing operations and obligations (including debt

obligations); the ability of the Corporation to stabilize its business and financial condition; the

ability of the Corporation to implement and successfully achieve its business priorities; the ability

of the Corporation to comply with its contractual obligations, including, without limitation, its

obligations under debt arrangements; the general regulatory environment in which the

Corporation operates; the tax treatment of the Corporation and the materiality of any legal and

regulatory proceedings; the general economic, financial, market and political conditions impacting

the industry and markets in which the Corporation operates; the ability of the Corporation to

sustain or increase profit ability, fund its operations with existing capital and/or raise additional

capital to fund its operations ; the ability of the Corporation to generate sufficient cash flow from

operations; the impact of competition; the ability of the Corporation to obtain and retain qualified

staff, equipment and services in a timely and efficient manner (particularly in light of the

Corporation’s efforts to restructure its debt obligations); the ability of the Corporation to retain

members of the senior management team, in cluding but not limited to, the officers of the

Corporation; and the impact on business operations of the Corporation resulting from the COVID-

19 pandemic and the responses of government and the public to the pandemic, and the

implementation of the Transac tion and the timing thereof. Readers are cautioned that the

foregoing list of factors is not exhaustive and should be considered in conjunction with the risk

factors described in this news release and in the Corporation’s other documents filed with the

Canadian securities authorities, including without limitation the Management’s Discussion and

Analysis of the Corporation for the year ended December 31, 2019, the Management’s Discussion

and Analysis of the Corporation for the three and six months ended June 30, 2020, and the Annual

Information Form of the Corporation dated March 19, 2020 for the period ending December 31,

2019, which are available on SEDAR at www.sedar.com.

The Corporation may, from time to time, make oral forward-looking statements. The Corporation

advises that the above paragraph and the risk factors described in this news release and in the

Corporation’s other documents filed with the Canadian securities authorities should be read for a

description of certain factors that could cause the actual results of the Corporation to differ

materially from those in the oral forward-looking statements. The forward-looking information and

statements contained in this news release are made as of the date her eof and the Corporation

undertakes no obligation to update publicly or revise any oral or written forward -looking

information or statements, whether as a result of new information, future events or otherwise,

except as required by applicable securities laws. The forward-looking information and statements

contained herein are expressly qualified in their entirety by this cautionary statement.