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For immediate release Sherritt Reports Strong First Quarter Nickel and Cobalt Production NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S. Toronto - April 28 , 2021 - 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 - month period ended March 31 , 2021. All amounts are in Canadian currency unless otherwise noted . CEO COMMENTARY " Sherritt sustained the momentum we established following the successful close of our balance sheet initiative last year into 2021 as evidenced by our strong performance in Q1 , " said David Pathe , President and CEO of Sherritt International . " Even while managing against the continuing global pandemic , we ended the quarter with improved finished nickel and cobalt production results at the Moa Joint Venture , a $ 5 million reduction in our long - term debt , our highest adjusted EBITDA in almost three years , and improved nickel and cobalt market conditions . " Mr Pathe added , " In addition to continuing to work with our Cuban partners on overdue receivables , we will focus during 2021 on further developing and commercializing the know - how within our Technologies business . We have continued to make improvements to our patented process for upgrading bitumen , which produces lower emissions and virtually eliminates coke waste compared to current upgrading methods . It also eliminates the need for diluent when transporting bitumen by pipeline , thereby reducing costs and increasing pipeline capacity with no need for new investment in pipelines . We are also progressing with the patenting of a hydrometallurgical process for the treatment of high arsenic copper concentrates , which offers superior environmental benefits by rendering the arsenic inert and reducing emissions relative to current methodologies . We also continue to engage our Technologies team in the development of next generation battery - grade nickel and cobalt production from lateritic ores to lower capital intensity , reduce emissions , and eliminate waste . Over the longer term , Sherritt is well positioned to create significant value - both economic and environmental - as it capitalizes on the growing demand for high- purity nickel as the market adoption of electric vehicles accelerates . " SELECTED Q1 2021 HIGHLIGHTS . • Adjusted EBITDA ( 1 ) was $ 30.2 million , up 602 % from last year , and reflective of strong production totals at the Moa Joint Venture ( Moa JV ) , improved nickel and cobalt prices , and reduced administrative costs . Q1's Adjusted EBITDA total represents Sherritt's highest since Q3 2018 . Sherritt's share of finished nickel production at the Moa JV was 4,188 tonnes , up 9 % from last year while Sherritt's share of finished cobalt production was 477 tonnes , up 19 % . The growth was largely attributable to high inventories of mixed sulphides at the refinery in Fort Saskatchewan , Alberta and improved refinery reliability . Production totals for Q1 2020 were adversely impacted by the disruption of mixed sulphides deliveries to the refinery caused by rail blockades in Canada and by extended transit times for shipping vessels from Cuba . • NDCC ( 1 ) at the Moa JV was US $ 3.83 / lb , the lowest total since Q4 2019 . • • • • • Received US $ 5 million in distributions from the Moa JV , indicative of improved nickel and cobalt market conditions . Received US $ 5.7 million in Cuban energy payments . Sherritt anticipates continued variability in the timing of collections through the remainder of 2021 , and is working with its Cuban partners to ensure timely receipts . Received a $ 20.3 million prepayment against nickel deliveries in 2021. The prepayment is consistent with Sherritt's efforts to enhance its liquidity . Purchased an aggregate total of $ 5 million principal amount of second lien notes at an aggregate cost of $ 3.3 million . The $ 5 million debt reduction will also result in cash interest savings of $ 2.4 million through to the maturity of the 8.5 % second lien notes in November 2026 . Excluding depreciation and share - based compensation , administrative expenses declined by $ 1.5 million from Q1 2020 . Sherritt International Corporation 1