Concerned Shareholders Correct Sherritt's Misleading Claims

HALIFAX, March 31, 2014 /CNW/ -The Concerned Shareholders of Sherritt International Corp., led by Clarke Inc. (TSX:CKI; CKI.DB.A), today advised fellow shareholders of the truth behind the claims made in a letter issued by the current Board of Sherritt.

Many of the claims of progress made by Chairman Harold Stephen are the direct result of recommendations made earlier by the Concerned Shareholders. Sherritt would not even have acknowledged them without the threat of a potential proxy contest to bring true shareholder representation to the Board of Directors.

"The fact is that Sherritt would not have shifted its stated focus from acquiring assets to debt reduction without the advocacy of the Concerned Shareholders," said George Armoyan, President and CEO of Clarke Inc. "The first references to cost reduction came only after those steps were recommended by the Concerned Shareholders. Sherritt would have no claim to a 'disciplined strategy' without our intervention. The current Board can mimic our recommendations, but it will take new directors with a focus on shareholder value to see this strategy actually implemented."

Mr. Armoyan also noted that Sherritt has taken credit for adopting the Shareholder Proposals submitted by the Concerned Shareholders regarding corporate governance enhancements, particularly changes to the large and mostly unwarranted allowances paid to its directors by Sherritt and the implementation of "Say on Pay" advisory resolutions.

"The Concerned Shareholders have many ideas for improvement at Sherritt and they must be credible since the current Board has already adopted many of them," Mr. Armoyan said. "But the current Board refuses to accept shareholder representation which would help to align the Board with the interests of the owners of the Company.  The Concerned Shareholders have invested in Sherritt since 2011 and now hold more than 5.5% of the common shares, compared with less than 0.25% for the current Board and management."

Sherritt also made irresponsible personal attacks on the nominees of the Concerned Shareholders, without knowing who those nominees will be.  Mr. Stephen was advised on March 24 that the Concerned Shareholders would be nominating qualified independent directors in compliance with Sherritt's new advance notice by-law.  Instead, by issuing its Management Information Circular today, it is misleading its shareholders, circumvented its own by-law and undermined the principles of shareholder democracy the by-law was intended to protect.

The Concerned Shareholders will announce their nominees shortly and will provide full details as well as reasons to support the shareholder nominees within the next few days.  Sherritt shareholders are advised to take no action until they have had the opportunity to review the Concerned Shareholder Circular.

About the Concerned Shareholders of Sherritt

Members of the Concerned Shareholders of Sherritt have been investors in the Company since May 2011. They are led by Halifax-based Clarke Inc. which invests in a variety of private and publicly-traded businesses and participates actively where necessary to enhance performance and increase the return to shareholders. Clarke's securities trade on the Toronto Stock Exchange (CKI; CKI.DB.A); for more information about Clarke, please visit the website at www.clarkeinc.com.

SOURCE: Clarke Inc.

Shareholders, Susy Monteiro, CST Phoenix Advisors,1-866-822-1237, 647-351-3085, [email protected]; Dustin Haw, Vice President, Investments, Clarke Inc., 416.855.1928, 416.930.1982,[email protected]; Media, John Lute, Lute & Company, 416-929-5883, [email protected] , www.luteco.com