Sherritt Provides Update on Joint Venture Activities in Cuba

• The most recent release (May 7, 2026) confirms Sherritt has suspended direct participation in joint venture activities in Cuba following a U.S. Executive Order expanding sanctions.
• Immediate actions include repatriating expatriate employees from Cuba and requesting partners to repatriate personnel in Canada.
• The Fort Saskatchewan refinery remains operational but feed inventory is depleted by mid-June 2026, creating an imminent production cliff.
• Three Board members (Brian Imrie, Richard Moat, Brett Richards) resigned effective immediately, signaling governance instability.
• Financial risk is highlighted: formal designation under the Executive Order could cause financial providers to withdraw support.
• Historical context shows a progression of operational degradation: fuel supply issues in Feb 2026 led to mining pauses; April 2026 financing ($43.5M) provided temporary liquidity; May 4, 2026 news warned of the Executive Order impact.

• The suspension of JV activities is a material negative event that directly impacts the core Nickel and Cobalt production assets (Moa JV).
• The feedstock cliff at Fort Saskatchewan by mid-June 2026 threatens revenue generation within weeks, despite the April financing.
• Board resignations of the Chair and key directors undermine investor confidence in management's ability to navigate the crisis.
• Banking risk is explicit; loss of financial support could force insolvency or asset fire sales if alternative funding isn't secured immediately.
• The April 2026 private placement at $0.21/share provided a short-term buffer, but the current price ($0.25) may not sustain if operations halt completely by June.
• This is not routine; it represents a fundamental threat to the business model in its primary jurisdiction (Cuba).

• Company: Sherritt International Corporation operates in Metals (Nickel/Cobalt) and Power sectors.
• Flagship Project: Moa Joint Venture in Cuba (Nickel/Cobalt mining and processing).
• Secondary Asset: Fort Saskatchewan Refinery in Alberta, Canada (processing mixed sulphides from Moa).
• Power Division: Energas S.A. joint venture in Cuba (electricity generation), which has provided dividends but is also subject to sanctions risk.
• Development Status: Moa JV Phase 2 expansion was completed in late 2025, but operational constraints (fuel/feedstock) have prevented full utilization.