Guidance

2018 PRODUCTION FORECASTS

Production volumes	2018 Guidance	Year-to-date actual at June 30, 2018	Updated Guidance at June 30, 2018
Moa Joint Venture (tonnes, 100% basis)
Nickel, finished	31,500 - 32,500	13,206	Unchanged
Cobalt, finished	3,500 - 3,800	1,448	Unchanged
Ambatovy Joint Venture (tonnes, 100% basis)
Nickel, finished	40,000 - 43,000	15,125	35,000 - 38,000
Cobalt, finished	3,500 - 3,800⁽¹⁾	1,233	3,100 - 3,400
Oil – Cuba (gross working-interest, bopd)	4,300 - 4,800	5,128	Unchanged
Oil and Gas – All operations (net working-interest, boepd)	2,300 - 2,600⁽¹⁾	2,862	Unchanged
Electricity (GWh, 33⅓% basis)	750 - 800	406	Unchanged

Unit operating costs	2018 Guidance	Year-to-date actual at June 30, 2018	Updated Guidance at June 30, 2018
NDCC (US$ per pound)
Moa Joint Venture	$1.75 - $2.25⁽¹⁾	$1.84	Unchanged
Ambatovy Joint Venture	$2.50 - $3.00⁽¹⁾	$3.85	$3.00 - $3.50
Oil and Gas - Cuba (unit operating costs, $ per barrel)	$22.00 - $23.50	$19.63	Unchanged
Electricity (unit operating cost, $ per MWh)	$20.75 - $21.50	$17.90	Unchanged

Spending on capital (US$ millions)	2018 Guidance	Year-to-date actual at June 30, 2018	Updated Guidance at June 30, 2018
Moa Joint Venture (50% basis), Fort Site (100% basis)⁽²⁾	US$41 (CDN$52)	US$13.8 (CDN$17.6)	Unchanged
Ambatovy Joint Venture (12% basis)⁽³⁾	US$13 (CDN$17)	US$4.4 (CDN$5.6)	Unchanged
Oil and Gas	US$39 (CDN$50)	US$7.5 (CDN$9.5)	US$25 (CDN$32)
Power (33⅓% basis)	US$1 (CDN$1)	US$0.2 (CDN$0.3)	Unchanged
Spending on capital (excluding Corporate)	US$94 (CDN$119)	US$25.2 (CDN$32.1)	US$80 (CDN$102)

¹Guidance updated March 31, 2018

²Spending is 50% of US$ expenditures for Moa JV and 100% expenditures for Fort Site fertilizer and utilities

³Sherrit's ownership interest at the Ambatovy Join Venture was reduced to 12% following a restructuring completed on December 10, 2017.

TSX: S 0.83 +0.01 +1.22% Volume: 1,487,439 ~20 MIN. DELAY September 21, 2018

Contact info:

Joe Racanelli,
Director,
Investor Relations.