Ann: Operational Update, page-6

This is the operational update for Sherritt's drilling in CUBA, 

As previously reported, Sherritt resumed drilling on Block 10 in early July. Drilling continues today. During the quarter,the expandable casing technology imported to address the loss circulation zones in the upper reservoir wassuccessfully deployed. Drilling continued to a total depth of approximately 5,000 meters of the planned 5,960 meters.Recently, wellbore instability has been encountered between the upper and lower reservoirs. To manage the wellboreinstability, a portion of the wellbore below the upper reservoir is currently being re-drilled and results are anticipatedwithin 90 days. Total capital spending for the oil division, including added costs for drilling on Block 10, are nowestimated at approximately US$29 million for 2018.