Default of a Joint Venture Partner under the Ambatovy Joint Venture Shareholders Agreement

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; President and CEO: Masayuki Hyodo) hereby announces that under the terms of the Ambatovy Joint Venture Shareholders Agreement, which is an agreement between Sumitomo Corporation, Sherritt International Corporation (“Sherritt”) and Korea Resources Corporation for the Ambatovy Nickel Project (“Ambatovy”) in Madagascar, Sherritt has become a defaulting shareholder as of March 5th.

This occurred following Sherritt’s non-funding of their share (12%) of a cash call issued by Ambatovy by the due date.

As a result of the above, Sherritt will lose their voting rights at Ambatovy. There is no change on the shareholding structure of Ambatovy, and this will not impact the operation at Ambatovy.