Dr. Peter Hancock reports

SHERRITT ANNOUNCES TEMPORARY WORKFORCE LAYOFFS AS IT ADVANCES PATH TOWARD RESTORING ITS METALS REFINING OPERATIONS

Sherritt International Corp. will temporarily lay off approximately 280 employees, representing 47 per cent of its Canadian work force, as part of continuing measures to preserve liquidity while the corporation works toward restoring metals refining operations at its Fort Saskatchewan, Alta., refinery. The temporary layoffs are expected to last approximately 90 days, although employees may be recalled earlier based on operational requirements.

The temporary layoffs follow the cessation of refining activities on June 22, 2026, after feed inventory at the Fort Saskatchewan refinery was depleted. Certain activities will continue during the temporary layoff period, including production and sales of ammonia fertilizer and sulphuric acid, necessary maintenance and continuing environmental protection and safety activities.

As previously announced, following the United States administration's issuance of Executive Order 14404 expanding sanctions against persons conducting business in Cuba, the corporation suspended its direct participation in joint venture activities in Cuba on May 7, 2026, and has been operating under constrained liquidity conditions. Sherritt continues to advance the regulatory, operational and financial requirements necessary to support the restart of refining operations, including the receipt on Oct. 19, 2026, of the first of a series of anticipated emergency licences from the U.S. Department of the Treasury's Office of Foreign Assets Control required to restart mining and processing operations in Cuba and refining operations in Canada.

"This was a difficult decision, and we recognize the impact it will have on our employees and their families," said Dr. Peter Hancock, interim president and chief executive officer. "We are grateful to our employees for their dedication and hard work, particularly through this challenging period. The layoffs are intended to be temporary, and employees may be recalled sooner if developments allow refining activities to resume earlier than anticipated."

"At the same time, we are encouraged by the regulatory progress being made and remain focused on the steps required to restore operations. Our objective is to return Sherritt to its position as an important producer of nickel and cobalt and a key contributor to North America's critical minerals supply chain."

Separately, the corporation announced that its chief human resources officer has departed Sherritt to pursue another opportunity. To ensure continuity, Sherritt's vice-president, human resources, who has been with the corporation for 14 years, has assumed oversight of the human resources function.

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.

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