An anonymous director reports

SHERRITT PROVIDES UPDATE ON FINANCIAL AND LIQUIDITY POSITION

Sherritt International Corp. today provided an update on its financial and liquidity position. Further to its second quarter 2026 results and financial position update filed on Aug. 12, 2026, the corporation continues to operate under constrained liquidity conditions and faces a material uncertainty that may cast significant doubt on its ability to continue as a going concern.

As previously disclosed, following the issuance of the executive order by the United States administration on May 1, 2026, expanding sanctions against persons and companies conducting business in Cuba, the corporation suspended its direct participation in joint venture activities in Cuba on May 7, 2026, and ceased metals refining operations at its Fort Saskatchewan, Alta., facility on June 22, 2026. The corporation continues to advance a comprehensive recapitalization and remains in active discussions with all of its lenders, with the objective of securing interim financing and the significant new capital required to restart and restore normal operations. In parallel, the corporation is pursuing government support and other strategic capital sources as part of these efforts. There can be no assurance that any such financing will be available or capable of being completed on acceptable terms, in a timely manner, or at all.

As previously disclosed, the issuance of the executive order constituted a material and progressive adverse change to the corporation's business, which entitled the administrative agent (on behalf of the lenders) to call an event of default under the corporation's revolving-term credit facility maturing April 30, 2027. No demand for repayment of outstanding loan obligations has been made to date, and the corporation continues to engage constructively with its lenders. An acceleration of indebtedness under the credit facility would entitle the holders of at least 25 per cent of the corporation's outstanding amended senior secured notes to declare such notes immediately due and payable. See the "liquidity" and "capital resources" sections of the corporation's management's discussion and analysis for the three and six months ended June 30, 2026, for additional details regarding the credit facility and the corporation's liquidity position and cash flows.

Sherritt will continue to provide timely public disclosure as circumstances develop.

About Sherritt International Corp.

Sherritt is a world leader in using hydrometallurgical processes to mine and refine nickel and cobalt -- metals deemed critical for the energy transition. Leveraging its technical expertise and decades of experience in critical minerals processing, Sherritt is committed to expanding domestic refining capacity and reducing reliance on foreign sources. The corporation operates a strategically important refinery in Alberta, Canada, recognized as the only significant cobalt refinery and one of just three nickel refineries in North America.

Sherritt's common shares are listed on the Toronto Stock Exchange under the symbol S.

We seek Safe Harbor.