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For immediate release Sherritt Reports Strong Nickel and Cobalt Production in Q2 and Upgrades ESG Targets NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S. Toronto - July 29 , 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 and six months ended June 30 , 2021. All amounts are in Canadian currency unless otherwise noted . CEO COMMENTARY " Our performance in Q2 was marked by strong nickel and cobalt production , receipt of US $ 28 million in distributions from the Moa Joint Venture , and measures taken to reduce corporate costs by approximately $ 1.3 million annually , " said Leon Binedell , President and CEO of Sherritt International . " Just as significant , we accelerated efforts to transition our Technologies Group from being a cost centre to becoming an incubator of industry solutions that can be commercialized externally or applied internally to improve operational performance , reduce carbon emissions , and support growth initiatives , such as efforts to de - bottleneck production , evaluate brownfield expansion opportunities , and increase mineral reserves . " Mr. Binedell added , " Although our ability to collect overdue receivables may be subject to near - term volatility due to the continued impact of U.S. sanctions and Cuba's reduced access to foreign currency on account of the global pandemic , we remain bullish on our prospects given the favourable outlook for nickel and cobalt with the mass adoption of electric vehicles anticipated in the coming years . " SELECTED Q2 2021 HIGHLIGHTS • • • Leon Binedell , a 25 - year mining industry veteran with a history of building shareholder value , was appointed President and CEO of Sherritt International effective June 1 , 2021 . Adjusted EBITDA ( 1 ) was $ 18 million , up 114 % from last year . The higher total was indicative of strong production totals at the Moa Joint Venture ( Moa JV ) and improved nickel and cobalt prices , but offset by increased input costs and $ 1.8 million of expenses relating to a 10 % workforce reduction in Sherritt's Corporate office , which will result in a reduction of corporate costs by approximately $ 1.3 million annually , and $ 5.5 million in other contract benefits expenses relating to the planned departure of senior executives . Sherritt's share of finished nickel production at the Moa JV was 4,230 tonnes , up 2 % from last year while Sherritt's share of finished cobalt production was 476 tonnes , up 12 % . The growth was largely attributable to higher inventories of mixed sulphides available at the refinery in Fort Saskatchewan , Alberta and improved refinery reliability . Net Direct Cash Cost ( NDCC ) ( ¹ ) at the Moa JV was US $ 4.58 / lb , up 17 % from last year . Despite a 73 % improvement in cobalt by - product credits , unit costs per pound of finished nickel sold were impacted by the 65 % increase in sulphur prices , 160 % increase in fuel oil prices , 46 % increase in natural gas prices , and added costs stemming from the purchase of sulphuric acid necessary because of the acid plant shutdown at Moa due to scheduled maintenance repairs . Upgraded a number of environmental , social , and governance ( ESG ) targets , including a target of achieving net zero greenhouse emissions by 2050 and obtaining 15 % of overall energy from renewable sources by 2030. Sherritt's list of long - term and interim ESG targets will be published in its upcoming Sustainability Report . • Received US $ 28 million in distributions from the Moa JV . The total consisted of Sherritt's 50 % share of distributions declared by the Moa JV , or US $ 14 million , and US $ 14 million re - directed by General Nickel Company S.A. ( GNC ) , Sherritt's joint venture partner , from its 50 % share to be used to fund Energas operations . • Received US $ 24.5 million in Cuban energy payments , including the US $ 14 million noted above redirected to Sherritt by its Moa JV partner . 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 . Generated $ 1.5 million of cash from continuing operations for operating activities , representing a turnaround of $ 14.1 million from Q2 2020 . Sherritt International Corporation 1