Sherritt’s CSR Vision About Sherritt Sherritt is a world leader in the mining and refining of nickel from lateritic ores with projects Sherritt maintains a long-term commitment to and operations in Canada, Cuba, Indonesia and Madagascar. The Corporation is the largest coal responsible practice by integrating environmental, producer in Canada and is the largest independent energy producer in Cuba, with extensive oil and power operations across the island. Sherritt licenses its proprietary technologies and provides safety and community considerations into decision- metallurgical services to mining and refining operations worldwide. The Corporation’s common making and building lasting relationships with shares are listed on the Toronto Stock Exchange under the symbol “S”. our workforce, communities and governments. We take a pragmatic and localized approach to sharing the benefits of our business, while minimizing the adverse impacts of development.

Sherritt’s Commitment

Employees: To consider the health, safety, well-being and professional development of our workforce in all decision making;

Communities: To ensure local communities near our operations and offices benefit socially and economically from our business;

Governments: To build and maintain meaningful and productive relationships with local, regional and national governments in jurisdictions where we operate; the Environment: To practice responsible and forward-looking environmental stewardship at all operations; Highlights Shareholders: To be a low-cost operator across all segments of our business and 2010 2009 to grow through increased productivity and profitability; Revenue ($ millions) 1,771.1 1,474.9 Partners: To maintain an open relationship with all our partners and to share with EBITDA ($ millions) 632.0 495.4 them our success, expertise and experience; and Net earnings ($ millions) 214.0 85.7 Customers: To provide the highest quality of products and the best services possible. Nickel produced (tonnes) 33,972 33,599 Cobalt produced (tonnes) 3,706 3,721 Coal produced (millions of tonnes) 38.6 39.3 Net oil production (boepd) 11,956 13,214 Electricity generation (GWh) 2,067 2,167

NOTE: All value figures are in Canadian dollars unless otherwise noted. All volume measurements represent 100% of operations. No adjustment is made to reflect joint venture ownerships.

Sherritt International Corporation Corporate Social Responsibility 2010 At-a-Glance

0,; )URPbUHVSRQVLEOHb The paper used for this summary report is certified by the Forest VRXUFHV www.sherritt.com Stewardship Council® (FSC®) and is Process Chlorine Free (PCF). & Environment w Sherritt’s greenhouse gas reduction project w Sherritt’s Fort Saskatchewan site reduced SHERRITT COAL LAND RECLAMATION in Cuba continued at Energas S.A.’s its site industrial process gas emissions (hectares) Sherritt’s commitment 912 hectares levelled Varadero facility. By the end of 2010, by selling carbon dioxide to a nearby 1,250 In 2010, Sherritt’s coal mining operations to stakeholders includes levelled 912 hectares of land in reclamation Sherritt had documented a total of CO2 facility. 1,000 and completed 501 hectares after disturbing practicing responsible 917,027 tonnes of emission reductions 1,160 hectares. w Alberta regulators asked Sherritt to and forward-looking for the United Nations’ (UN) Kyoto credits. 750 Of these reductions, Sherritt was issued represent the coal industry on a plan to environmental stewardship credits for 166,744 tonnes in prior years. help regenerate the Athabasca rainbow 500 at all operations. An additional 177,104 tonnes were verified trout population in the province. 250 99% complete for the UN approval process in 2010. Reclamation of the 1,300-hectare former Gregg River mine site in Alberta is 99% 0 complete. Sherritt is in discussions regarding Levelled1 Completed2 the possible establishment of a reclamation 2007 2008 2009 2010 research centre at Gregg River. -1 Levelled land has- been returned- to the contour -specified by provincial standards and in mining licenses. 2 Completed land has been levelled, contoured, topsoiled and established with vegetation.

Communities w Sherritt completed the final funding of its w The Ambatovy Local Business Initiative in 2010 DONATIONS AND SPONSORSHIPS $1 million commitment to the Northern Madagascar continued to work with over ($) Sherritt ensures the local 350 pairs of shoes Alberta Institute of Technology (NAIT) 2,000 pre-qualified local companies and 1,000,000 Sherritt helped ship over 350 pairs of communities near its in support of the Sherritt Wing of the suppliers to maximize the availability of surplus ballet shoes from the National Ballet of Canada to ballet students in Havana who operations and offices NAIT Centre for Millwright Technology local materials needed for the Project. 750,000 attend the Ballet Nacional du Cuba. benefit socially and in Edmonton. w In 2010, Sherritt provided scholarships to 500,000 economically from the w Sherritt worked with the Seva Canada Society almost 230 employee-dependent students Corporation’s business. to improve basic eye care in Madagascar, to encourage higher education. $1.6 million 250,000 helping to purchase essential ophthalmology Sherritt contributed to the success of over equipment for a local hospital. 130 different organizations by providing funds, materials or time, totalling more than 0 w Sherritt employees continued to provide $1.6 million. Education Social Health schoolbooks and funding for school libraries - - - near the Ambatovy Project in Madagascar.

40,000 Workforce w Sherritt emphasizes safe operating w Sherritt’s focus on safety was recognized LOST-TIMELOST-TIME INJURY INJURY(LTI) INDEX (LTI)1 INDEX1 TOTAL TOTALRECORDABLE RECORDABLE INJURY INJURY(TRI) INDEX (TRI)2 INDEX2 conditions at all divisions. The Corporation when the Genesee mine in Alberta was (12-month(12-month rolling averagerolling average as at December as at December 31, 2010) 31, 2010)(12-month(12-month rolling averagerolling average as at December as at December 31, 2010) 31, 2010) Sherritt considers the health, 2.0 2.0 2.0 2.0 sets a Lost-Time Injury (LTI) Index target awarded the Canadian Institute of Mining’s 30,000 safety, well-being and of zero and a Total Recordable Injury (TRI) John T. Ryan national mine site safety award professional development Index target of less than 0.75. In 2010, in May 2010. During the year, the Genesee 1.5 1.5 1.5 1.5 actual results were an average LTI Index mine also reached a milestone of 22 years 20,000 of its employees in all 1.0 1.0 1.0 1.0 of 0.07 and a TRI Index of 0.29. with no recordable lost-time incidents. business decisions. 0.5 0.5 0.5 0.5 w Sherritt has not had a significant production 10,000

loss related to labour issues at its Canadian 0.0 0.0 0.0 0.0 metals operations in its history, which spans 06 0607 0708 0809 0910 10 06 0607 0708 0809 0910 10 0 nearly six decades. -Metals- Metals2006- Coal -2007Coal- Oil and2008- GasOil and Gas2009 - Power -2010Power-Metals- Metals- Coal -Coal- Oil and- GasOil and Gas - Power -Power 1 The LTI Index is calculated by multiplying the number of total 2 The TRI Index is calculated by multiplying the number of TRIs LTIs by 200,000 and then dividing by total exposure hours. by 200,000 and then dividing by the total exposure hours. This index provides a measure that is comparable across This index provides a measure that is comparable across industries and businesses of varying size. industries and businesses of varying size.