Ad Hoc Group of the 9.25% 2031 Notes of Sherritt Notes Responds to Company Update and Confirms Alternative Recapitalisation Proposal submitted to the Company

About this update from Sherritt International Corporation

TORONTO, July 17, 2026 /CNW/ -- An ad hoc group of holders of the 9.25% 2031 notes of Sherritt International Corporation ("Sherritt" or the "Company") (the "Ad Hoc Group") today issued the following statement in response to Sherritt's recent public update on July 13, 2026, regarding its financial position, liquidity constraints and ongoing recapitalisation process. The Ad Hoc Group notes the Company's disclosure that it remains in "active discussions with its senior lenders and noteholders" regarding a comprehensive recapitalisation. The Ad Hoc Group believes that the statement made by Sherritt materially overstates the current status of engagement with the noteholders. While an Ad Hoc Group of holders have organised, retained financial and legal advisers, established a coordinated engagement process and made themselves available to engage, there has not been meaningful engagement with the Ad Hoc Group or its advisers regarding a comprehensive recapitalisation, the Ad Hoc Group's potential provision of new capital or the alternative recapitalisation proposal under evaluation by the Ad Hoc Group. The Ad Hoc Group believes stakeholders should understand that an organised creditor constituency exists and is prepared to engage, but that engagement has not advanced in a manner consistent with the urgency of the Company's circumstances or the central role that noteholder consent is expected to play in any executable transaction. The Ad Hoc Group does not believe that the proposed transaction involving Gillon Capital LLC ("Gillon Capital") should be viewed as the only available or most executable path forward. The Ad Hoc Group has reviewed an alternative recapitalisation proposal that has been submitted to the Company and is supported by a consortium of highly credible strategic and financial participants. The Ad Hoc Group believes that this proposal warrants meaningful evaluation alongside any transaction currently under consideration by the Company.  The Company has emphasised its ongoing discussions with Gillon Capital and the existence of an exclusivity arrangement. The Ad Hoc Group believes stakeholders should not assume that governmental, regulatory or other third-party engagement is available only in connection with a single transaction path, or that the existence of an exclusivity arrangement relieves the Company of the need to meaningfully evaluate alternative recapitalisation proposals. The Ad Hoc Group notes that the Company is now approximately one month into a 120-day exclusivity period and the Gillon Capital proposal remains subject to a non-binding term sheet. During that same period, an alternative recapitalisation proposal supported by strategic and financial participants has been submitted to the Company, yet engagement with the Ad Hoc Group regarding either recapitalization alternative has remained limited. In the Ad Hoc Group's view, all credible recapitalisation alternatives should be evaluated in a timely and informed manner.

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