Mr. David Delaney reports

ITAFOS REPORTS Q2 2023 RESULTS

Itafos Inc. has released its Q2 2023 financial and operational highlights. The company's financial statements, and management's discussion and analysis for the three and six months ended June 30, 2023, are available under the company's profile on SEDAR+ and on the company's website. All figures are in thousands of U.S. dollars except as otherwise noted.

CEO commentary

"We are pleased to report solid financial results and continuation of our strong safety and operational performance in Q2 2023. For 1H 2023 we reported revenues of $235.7 million and adjusted EBITDA of $82.6 million.

The Record of Decision issued on April 24th and subsequent Notice to Proceed on May 8th for the Husky 1/North Dry Ridge mine project represent a significant milestone for Itafos. The approvals provide the path for the Company to achieve our strategic goal of extending Conda's mine life. The permit allows us to work to continue to serve the North American fertilizer market through 2037 with potential to further extend the resource life through leases and third-party arrangements.

The Company has lowered its full year EBITDA guidance, due to the sharp decline in commodity prices in Q2. The impact of this price decline will also be seen in the Company's Q3 performance due to the pricing formula of our MAP sales contract. Following the sharp decline in Q2, commodity prices have partially rebounded in early Q3, driven by demand improvement and tighter US supply fundamentals."

Finally, the process to explore and evaluate various strategic alternatives to enhance value for all Itafos Shareholders announced by our Board in Q1 2023 is on-going. At the same time, we remained focused on running the Company to support our customers, maintaining our safety performance, and delivering on our operational and financial results" said G. David Delaney, CEO of Itafos.

Q2 2023 Key Highlights

• revenues of $116.1 million
• Adjusted EBITDA of $39.7 million1
• net income of $20.4 million
• basic earnings of C$0.14/share
• free cash flow of $44.1 million1

H1 2023 Key Highlights

• revenues of $235.7 million
• Adjusted EBITDA of $82.6 million
• net income of $48.6 million
• basic earnings of C$0.35/share
• free cash flow of $63.9 million

June 30, 2023 Key Highlights

• trailing 12 months Adjusted EBITDA of $183.4 million1
• net debt of $38.0 million1
• net leverage ratio of 0.2x1

Lowered FY 2023 Guidance

• Adjusted EBITDA guidance of $115-135 million
• net income guidance of $45-60 million
• basic earnings guidance of C$0.31-0.41/share
• maintenance capex guidance of $15-25 million1
• growth capex guidance of $35-45 million1
• free cash flow guidance of $65-85 million

Q2 and H1 2023 Market Highlights

Diammonium phosphate ("DAP") New Orleans ("NOLA") prices averaged $527/st in Q2 2023 compared to $860/st in Q2 2022, down 39% year-over-year, and averaged $571/st in H1 2023 compared to $827/st in H1 2022, down 31% year-over-year. Specific factors driving the year-over-year decline in DAP NOLA were as follows:

• weakened demand in response to historically high 2022 phosphate prices;
• the softening of global Ammonia and Sulphur prices;
• the softening of historically high crop prices; and
• increased phosphate exports out of Russia and China.

Q2 2023 Financial Highlights

For Q2 2023, the Company's financial highlights were as follows:

• revenues of $116.1 million in Q2 2023 compared to $155.0 million in Q2 2022;
• Adjusted EBITDA of $39.7 million in Q2 2023 compared to $63.6 million in Q2 2022;
• net income of $20.4 million in Q2 2023 compared to $44.3 million in Q2 2022;
• basic earnings of C$0.14/share in Q2 2023 compared to C$0.30/share in Q2 2022; and
• free cash flow of $44.1 million in Q2 2023 compared to $41.3 million in Q2 2022.

The decrease in the Company's Q2 2023 financial performance compared to Q2 2022 was primarily due to lower realized prices as a result of softer global market conditions partially offset by lower input costs.

The Company's total capex2 spend in Q2 2023 was $18.1 million compared to $16.0 million in Q2 2022 with the increase primarily due to the the development activities at H1/NDR upon receipt of ROD in Q2 2023.

H1 2023 Financial Highlights

For H1 2023, the Company's financial highlights were as follows:

• revenues of $235.7 million in H1 2023 compared to $304.9 million in H1 2022;
• Adjusted EBITDA of $82.6 million in H1 2023 compared to $124.0 million in H1 2022;
• net income of $48.6 million in H1 2023 compared to $77.3 million in H1 2022;
• basic earnings of C$0.35/share in H1 2023 compared to C$0.52/share in H1 2022; and
• free cash flow of $63.9 million in H1 2023 compared to $95.7 million in H1 2022.

The decrease in the Company's H1 2023 financial performance compared to H1 2022 was primarily due to lower sales volumes and lower realized prices, partially offset by lower input costs.

The Company's total capex2 spend in H1 2023 was $20.9 million compared to $21.3 million in H1 2022 with the decrease primarily due to the capital additions expended in the prior year relating to the HFSA build out at Conda during Q1 2022 and the Arraias sulfuric acid restart.

June 30, 2023 Highlights

• As at June 30, 2023, the Company had trailing 12 months Adjusted EBITDA of $183.4 million compared to $224.8 million at the end of 2022 with the decrease primarily due to the same factors that resulted in lower revenues, which were partially offset by lower input costs at Conda.
• At June 30, 2023, the Company had net debt of $38.0 million compared to $88.3 million at the end of 2022, with the reduction due to the repayment of principal debt outstanding from free cash flows generated and higher cash and cash equivalents. The Company's net debt as at June 30, 2023 was comprised of $68.6 million in cash and $106.6 million in debt (gross of deferred financing costs). As at June 30, 2023 and the end of 2022, the Company's net leverage ratio were 0.2x and 0.4x.
• As at June 30, 2023, the Company had liquidity3 of $101.7 million comprised of $68.6 million in cash and $33.0 million in ABL Facility undrawn borrowing capacity.

Q2 2023 Operational Highlights

Environmental ,Health, and Safety ("EHS")

• Sustained EHS performance, including no reportable environmental releases and two recordable incidents, which resulted in a consolidated total recordable incident frequency rate ("TRIFR") of 0.35.

Conda

• Produced 83,190 tonnes P2O5 at Conda in Q2 2023 compared to 80,297 tonnes P2O5 in Q2 2022 with the increase primarily due to higher throughput resulting from operational efficiencies and reduced downtime;
• Generated revenues of $112.9 million at Conda in Q2 2023 compared to $148.9 million in Q2 2022 primarily due to lower realized prices;
• Generated Adjusted EBITDA at Conda of $44.6 million in Q2 2023 compared to $66.7 million in Q2 2022 primarily due to the same factors that resulted in lower revenues, which were partially offset by lower input costs;
• On April 24, 2023, the Company announced the Record of Decision ("ROD") for Husky 1/North Dry Ridge ("H1/NDR") mine development project. The H1/NDR project comprises primarily of civil activities and infrastructure development. Mineral resources from H1/NDR are expected from 20264 onward, providing an uninterrupted supply as Rasmussen Valley Mine reaches the end of its useful life; and
• On May 8, 2023, the Company received the Notice of Proceed ("NTP") for H1/NDR mine development project. Upon receipt of the NTP, the Company has begun capital activities associated with the mine development project.

Q2 2023 Other Highlights

• Produced 8,523 tonnes of sulfuric acid at Arraias in Q2 2023 compared to 20,549 tonnes in Q2 2022 with the decrease due to sulfuric acid plant shutdown for required maintenance and turnaround in June 2023;
• Generated Adjusted EBITDA at Arraias of $0.8 million loss in Q2 2023 compared to $0.4 million gain in Q2 2022 with the decrease primarily due to lower realized sulfuric acid prices, which were partially offset by higher sales volumes, lower cost of goods sold and lower selling, general and administrative expenses;
• On June 28, 2023, the Company filed the National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") technical report for the Farim Phosphate Project; and
• The Special Committee of the Board of Directors continues to evaluate strategic alternatives that may be available to company in an effort to enhance shareholder value.

H1 2023 Operational Highlights

Environmental, Health, and Safety ("EHS")

• Sustained EHS excellence, including no reportable environmental releases and two recordable incidents, which resulted in a consolidated total recordable incident frequency rate ("TRIFR") of 0.35.

Conda

• Produced 165,336 tonnes P2O5 at Conda in Q2 2023 compared to 169,393 tonnes P2O5 in Q2 2022 with the decrease slightly due to extreme winter weather conditions and unplanned downtime in Q1 2023, mostly offset by stronger throughput in Q2 2023;
• Generated revenues of $228.9 million at Conda in Q2 2023 compared to $296.5 million in Q2 2022 primarily due to lower sales volumes and lower realized prices;
• Generated Adjusted EBITDA at Conda of $92.0 million in Q2 2023 compared to $131.1 million in Q2 2022 primarily due to the same factors that resulted in lower revenues, which were partially offset by lower input costs;
• On April 24, 2023, the Company announced the ROD for H1/NDR mine development project. The H1/NDR project comprises primarily of civil activities and infrastructure development. Mineral resources from H1/NDR are expected from 20264 onward, providing an uninterrupted supply as Rasmussen Valley Mine reaches the end of its useful life; and
• On May 8, 2023, the Company received the NTP for H1/NDR mine development project. Upon receipt of the NTP, the Company has begun capital activities associated with the mine development project.

H1 2023 Other Highlights

• Produced 29,137 tonnes of sulfuric acid at Arraias in H1 2023 compared to 30,200 tonnes in H1 2022 with the Sulfuric acid production consistent year-over-year; Increased sales volumes due to full half year sales in H1 2023 compared to a partial half year in H1 2022 (the sulfuric acid plant was restarted in February 2022);
• Generated Adjusted EBITDA at Arraias of $0.6 million loss in H1 2023 compared to $0.3 million loss in H1 2022 with the decrease primarily due to lower realized sulfuric acid prices, which were partially offset by higher sales volumes and lower selling, general and administrative expenses; and
• On June 28, 2023, the Company filed the NI 43-101 technical report for the Farim Phosphate Project; and
• The Special Committee of the Board of Directors continues to evaluate strategic alternatives that may be available to company in an effort to enhance shareholder value.

Market Outlook

2023 prices have moderated off the historically high 2022 prices and weaker global demand drove a significant reduction in Q2 2023 prices. Due to the nature of our MAP sales contract, with sales price determined by a three-month lagging average, the impact of this decrease, coupled with a lower SPA reset pricing, will impact the Company's performance in Q3 2023. The Company expects relatively stable global agriculture and phosphate fertilizer fundamentals moving forward but has seen demand and pricing improve in early Q3 2023 driven by tighter US supply fundamentals. Accordingly, the Company expects some volatility in pricing in the short term with consistent volume fundamentals in the phosphate fertilizer markets and expects stabilization in pricing long term.

Specific factors the Company expects to support strength in the global phosphate fertilizer markets through 2023 are as follows:

• no significant phosphate supply capacity additions;
• excellent farmer affordability due to sustained high crop prices
• improved phosphate application following lower demand associated with historically high pricing; and
• ongoing phosphate export restrictions from China compared to recent norms.

The Company expects the sulfur and sulfuric acid markets to remain under pressure globally through 2023 due to increased refinery activity and softer demand from phosphate producers and metals consumers.

Financial Outlook

The Company lowered its guidance for 2023 as follows:

 (in millions of US Dollars   Projected
except as otherwise noted)     FY 2023

Adjusted EBITDA            $   115-135
Net income                       45-60
Basic earnings (C$/share)    0.31-0.41
Maintenance capex                15-25
Growth capex                     35-45
Free cash flow                   65-85

Business Outlook

The Company continues to focus on the following key objectives to drive long-term value and shareholder returns:

• improving financial and operational performance;
• deleveraging the balance sheet;
• executing on the requisite infrastructure and civil works required for the mine development for H1/NDR; and
• conducting the strategic review process (including evaluating potential strategic alternatives for the company as outlined in the news release dated March 13, 2023).

About Itafos

The Company is a phosphate and specialty fertilizer company. The Company's businesses and projects are as follows:

• Conda - a vertically integrated phosphate fertilizer business located in Idaho, US with production capacity as follows: approximately 550kt per year of monoammonium phosphate ("MAP"), MAP with micronutrients ("MAP+"), superphosphoric acid ("SPA"), merchant grade phosphoric acid ("MGA") and ammonium polyphosphate ("APP"); and approximately 27kt per year of hydrofluorosilicic acid ("HFSA");
• Arraias - a vertically integrated phosphate fertilizer business located in Tocantins, Brazil with production capacity as follows: approximately 500kt per year of single superphosphate ("SSP") and SSP with micronutrients ("SSP+"); and approximately 40kt per year of excess sulfuric acid (220kt per year gross sulfuric acid production capacity);
• Farim - a high-grade phosphate mine project located in Farim, Guinea-Bissau;
• Santana - a vertically integrated high-grade phosphate mine and fertilizer plant project located in Para, Brazil; and
• Araxa - a vertically integrated rare earth elements and niobium mine and extraction plant project located in Minas Gerais, Brazil.

In addition to the businesses and projects described above, the Company also owns Mantaro (Junin, Peru), which is a phosphate mine project that is in process of being wound down.

The Company is a Delaware corporation that is headquartered in Houston, TX. The Company's shares trade on the TSX Venture Exchange ("TSX-V") under the ticker symbol "IFOS". The Company's principal shareholder is CL Fertilizers Holding LLC ("CLF"). CLF is an affiliate of Castlelake, L.P., a global private investment firm.

Scientific and Technical Information

The scientific and technical information contained in this news release related to Mineral Resources for Conda and Farim has been reviewed and approved by Jerry DeWolfe, Professional Geologist (P.Geo.) with the Association of Professional Engineers and Geoscientists of Alberta. Mr. DeWolfe is a full-time employee of WSP Canada Inc. and is independent of the Company. The scientific and technical information contained in this news release related to Mineral Reserves for Conda and Farim has been reviewed and approved by Edward Minnes, Professional Engineer (P.E.) licensed by the State of Missouri. Mr. Minnes is a part-time employee of WSP USA Inc. and is independent of the Company. The Company's latest technical report in respect of Conda is entitled, "NI 43-101 Technical Report on Itafos Conda and Paris Hills Mineral Projects, Idaho, USA," with an effective date of July 1, 2019 (the "Conda Technical Report") and is available under the Company's website and under the Company's profile on SEDAR+.

We seek Safe Harbor.