SHERRITT INTERNATIONALSHERRITT INTERNATIONAL

Ambatovy Nickel Project:Ambatovy Nickel Project:A Progress ReportA Progress Report

March 2008March 2008

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Diversified Natural Resource Diversified Natural Resource CompanyCompany

Metals 33,000 tonne nickel plus cobalt mining and processing facility in Cuba and refinery

in Canada - 50/50 joint venture between Sherritt and the Cuban state 40% interest in 60,000 tpa Ambatovy nickel project Technology leader in nickel laterite processing and refining Positioned to be preeminent low-cost producer ~110,000 tpa in 2012

Coal Operates and/or owns nine surface coal mines in Canada Produced 40 million tonnes of coal in 2006 Developing gasification project ~11 billion tonnes of thermal coal reserves

Oil and Gas 9 commercial fields operating and 5 exploration/development blocks under review Gross working interest production of ~31,000 boepd Significant international exploration opportunities Understanding of complex fold and thrust structure in Cuba Leading horizontal drilling operator

Power Largest independent power producer in Cuba Track record of growing the business - 376 MW of installed generating capacity Proceeding with 150+ MW expansion in Cuba and reviewing potential opportunities

in Madagascar

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Ambatovy Project OverviewAmbatovy Project Overview

Sherritt acquired Dynatec’s Ambatovy nickel project in June 2007 Sherritt will operate and hold a 40% interest

with partners Sumitomo (27.5%) Kores (27.5%) and SNC-Lavalin (5%)

Reserve life of 27+ years Major project components:

» Mine Site near Moramanga» 220 km pipeline to transport ore slurry » Process plant near Toamasina» Supporting infrastructure, including port facilities,

roads, rail lines, tailings dam and power plant

Refinery design capacity:» 60,000 tpa LME Class 1 nickel briquettes» 5,600 tpa high-grade cobalt» 190,000 tpa ammonium sulphate

Earth works commenced in June 2007, commissioning to start in 2009, full production in 2012

Antananarivo

Toamasina

MADAGASCAR

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Mine Site and PipelineMine Site and Pipeline

Construction commenced on the 220 km pipeline which will transport the ore as slurry from the mine to the

process plant Engineering has completed Hazard and Operability

reviews in nearly all areas Upgrades to short term and long term erosion and sediment controls ongoing

The Ore Preparation Plant site civil work is 60% complete

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Upgrading of Port and transportation links to the plant site underway

Employee housing being completed for occupancy in early March

Over 6,000 people are employed on the project

Processing Facility SiteProcessing Facility Site

Field activities are progressing at a steady pace with over 1,500 foundation piles now in place and concrete work underway on some structures

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Environment, Health & Safety and Environment, Health & Safety and Corporate Social ResponsibilityCorporate Social Responsibility

Environment Work continues to survey, salvage and trans-locate species Sedimentation and erosion control remains one of the most important

activities JEAs (Job Environmental Analysis) have been established, reviewed and

applied Focus on biodiversity and water management Relocation of project affected people is well advanced

Health & Safety Over 8 million man-hours worked with no lost time incidents 1,922 site safety orientations have been held

Corporate Social Responsibility Continuation of Special Projects (job and income creation programs,

targeting communities most affected by the Project) Ambatovy project recognized by local authorities (a project that is not only

about economics, but also about social aspects) Programs are being implemented to fight Malaria AM LRDI (Local Resources Development Initiative) is in operation to provide

basic skills training and to help SMEs (small and medium sized enterprises) provide services to the project

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A strong management team with significant operating experience has grown Sherritt from $677 million in assets in 1995 to approximately $3.8 billion today

Demonstrated a consistent ability to grow the company while exceeding performance objectives

A track record of implementing strategies that build long-term stakeholder value

A strong management team with significant operating experience has grown Sherritt from $677 million in assets in 1995 to approximately $3.8 billion today

Demonstrated a consistent ability to grow the company while exceeding performance objectives

A track record of implementing strategies that build long-term stakeholder value

EXPERIENCED BOARD AND MANAGEMENT TEAM

EXPERIENCED BOARD AND MANAGEMENT TEAM

Projected to be among the world’s biggest nickel laterite mines in 2013 Among the lowest cost operators in all segments Set out to double capital assets over the next 5 years

Projected to be among the world’s biggest nickel laterite mines in 2013 Among the lowest cost operators in all segments Set out to double capital assets over the next 5 years

INDUSTRY LEADERINDUSTRY LEADER

Revenue & EBITDA growth at CAGRs of 12% & 21%, respectively, from 2001 to 2006

A positive cash flow maintained through management of commodity down-cycles

An ongoing focus on the maximization of free cash flow

Revenue & EBITDA growth at CAGRs of 12% & 21%, respectively, from 2001 to 2006

A positive cash flow maintained through management of commodity down-cycles

An ongoing focus on the maximization of free cash flow

STRONG HISTORIC PERFORMANCE

STRONG HISTORIC PERFORMANCE

Low financial leverage with total debt to capitalization of 19% Total debt to EBITDA of approximately 0.9x Growth projects evaluated on “bottom of cycle” commodity price economics

Low financial leverage with total debt to capitalization of 19% Total debt to EBITDA of approximately 0.9x Growth projects evaluated on “bottom of cycle” commodity price economics

CONSERVATIVE FINANCIAL POSITION AND POLICIES

CONSERVATIVE FINANCIAL POSITION AND POLICIES

SummarySummaryWith the addition of the Ambatovy project, Sherritt is positioned to be a pre-eminent nickel producer from laterite

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This presentation contains forward-looking statements. These forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events. These forward-looking statements are subject to risks and uncertainties. These risks and uncertainties could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. Further information regarding risks can be found in our continuous reporting documents such as our annual report and annual information form.