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Guidance

2023 PRODUCTION

Production volumes Original 2022 Guidance 2023 Year-to-date Actual Updated 2023 Guidance
Moa Joint Venture (tonnes, 100% basis)      
Nickel, finished  30,000 - 32,000 13,502 30,000 - 32,000
Cobalt, finished 3,100 - 3,400 1,396 3,100 - 3,400
Electricity (GWh, 33⅓% basis) 575 - 625 330 650 - 700

2023 UNIT COST

Unit operating costs(1) Original 2022 Guidance 2023 Year-to-date Actual Updated 2023 Guidance
Moa Joint Venture (NDCC, US$ per pound) $5.00 - $5.50 $6.88 $6.75 - $7.25
Electricity (unit operating cost, $ per MWh) $28.50 - $30.00 $27.08 $27.25 - $28.75

2023 SPENDING ON CAPITAL

Spending on capital(1)(C$ millions) Original 2022 Guidance 2023 Year-to-date Actual Updated 2023 Guidance
Sustaining      
Moa Joint Venture (50% basis), Fort Site (100% basis)(2) $70.0 $19.5 $70.0
Power (33⅓% basis)(2) $4.4 $1.3 $4.4
Growth      
Moa Joint Venture (50% basis) $20.0 $6.2 $20.0
Spending on capital(3) $94.4 $27.0 $94.4

(1) Non-GAAP financial measures. 2023 actual amounts for unit operating cost/NDCC and spending on capital at June 30, 2023 are incorporated by reference to Sherritt’s Management Discussion and Analysis (MD&A) for the three and six months ended June 30, 2023, dated July 26, 2023, which is available on Sherritt’s website (www.Sherritt.com). These amounts can be found in the Q2 2023 Financial Report in the Review of Operations section: Metals – page 32, Power – page 36. The MD&A for the three and six months ended June 30, 2023 is also available on SEDAR. The primary determinants impacting unit operating costs are: for Moa Joint Venture – production levels, cobalt and fertilizer prices and input commodity prices, primarily sulphur; for Power, the primary determinants are production levels and maintenance costs. The primary determinants impacting spending on capital are timing of expenditures and foreign exchange rates (as most purchases are denominated in U.S. dollars).

(2) Spending on capital is based on Sherritt’s ownership interests in the Moa Joint Venture (50%), Fort Site (100%) and Power (331/3%).

(3) Excludes spending on capital for Corporate, Oil and Gas, Technologies and Metals Other.

Contact info:
Tom Halton / Director
Investor Relations
TSX: S 0.41 -0.01 -2.41% Volume: 60,400 ~20 MIN. DELAY September 28, 2023