Luscar Ltd.

                LUSCAR SUSPENDS PRODUCTION AT OBED MOUNTAIN MINE

EDMONTON, March 25, 2003 Luscar Ltd. announced today, that it will suspend
production at its Obed Mountain mine for an indefinite period beginning in April
2003. The decision has been made in response to an oversupply of thermal coal in
international markets, which has significantly reduced prices. An orderly
reduction of coal production at Obed Mountain mine will begin immediately, while
steps are taken to idle equipment and operations.

"This decision has not been easy," said Reg Toliver, president and chief
executive officer of Luscar Ltd. "Employees at Obed Mountain mine have worked
hard to reduce costs and improve efficiencies. However, it is a necessary move,
as the mine cannot operate at the very low prices we are experiencing in export
thermal coal markets. We intend to pursue other opportunities to market coal
from Obed and may resume production if such opportunities offer long-term
viability."

Employees will receive severance payments and outplacement counseling to assist
in the transition to alternative employment. A limited number of employees will
be retained to continue land reclamation activity for those areas not required
for future mining. Luscar expects that its first quarter results will include a
provision of approximately $6.3 million for severance and other costs associated
with the decision to suspend operations.

Obed Mountain mine has a workforce of about 110 people. Located 30 kilometers
west of Hinton, the mine began operations in 1984 and serves domestic and
international customers. In 2002, Obed Mountain produced 1.1 million tonnes of
bituminous thermal coal.

Luscar also announced a planned three-week temporary shutdown at its Coal Valley
mine near Edson, Alberta to be scheduled in April. This measure has been taken
to reduce coal inventory levels as sales volumes are expected to be higher
during the second half of 2003.

Export market conditions do not impact the balance of Luscar's business, the
majority of which is to supply coal to domestic power stations under long term
contracts.

Luscar Ltd. is owned by the Luscar Energy Partnership (LEP) partnership of
Sherritt International Corporation and Ontario Teachers' Pension Plan. During
2002, LEP reported revenues of $597 million and net earnings of $32.3 million,
on shipments of 36 million tonnes. Luscar is Canada's largest coal producer and
operates 10 thermal coal mines in Alberta and Saskatchewan, primarily serving
local electrical utilities. Luscar also produces value-added products related to
its coal mining operations, including char sold to charcoal briquette
manufacturers and humalite products sold to agricultural, environmental and
industrial users.

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For more information:
Joanne Miller, Director, Public Relations  (780) 420-4087