Hydrometallurgical nickel and cobalt recovery process The locations of the Moa Joint Venture

Sherritt's current Metals production is carried out through its 50% interest in a joint venture known as the Moa Joint Venture. The Moa Joint Venture is a vertically-integrated nickel and cobalt mining, processing, refining and marketing joint venture between subsidiaries of Sherritt and General Nickel Company S.A. (‘‘GNC''), a Cuban company. The operations of the Joint Venture are carried on through three companies:

• Moa Nickel S.A. (‘‘Moa Nickel'') - owns and operates the Moa, Cuba mining and processing facility

• The Cobalt Refinery Company Inc. (‘‘CRC'') - owns and operates the Fort Saskatchewan, Alberta metals refinery

• International Cobalt Company Inc. (‘‘ICCI'') - is responsible for feed acquisition and the marketing and sale of commodity cobalt and nickel.

Moa Nickel uses an open pit mining process to mine lateritic nickel and cobalt ore, which is processed onsite into mixed sulphides containing nickel and cobalt. These mixed sulphides are shipped to the east coast of Canada, where they are then transported by train to Sherritt's Fort Saskatchewan facility for refining into finished nickel and cobalt. Currently, the Moa Joint Venture produces approximately 38,000 tonnes of nickel and cobalt annually.

The Metals business also includes Sherritt's 100%-owned fertilizer and utilities operation located in Fort Saskatchewan which provides inputs for the metals refinery and produces agricultural fertilizer for sale in western Canada.