Mr. Daniel Tellechea reports

LARGO REPORTS THIRD QUARTER 2023 PRODUCTION AND SALES RESULTS AND BEGINS HOT COMMISSIONING OF ITS 6.1 MWH VANADIUM REDOX FLOW BATTERY; PRODUCTION AND COST GUIDANCE REMAINS UNCHANGED

Largo Inc. had quarterly production of 2,163 tonnes (4.8 million pounds (lb)) and sales of 2,385 tonnes of vanadium pentoxide (V2O5) equivalent, respectively, in Q3 2023.

Q3 2023 and other highlights

• V2O5 production of 2,163 tonnes (4.8 million pounds) versus 2,906 tonnes produced in Q3 2022, including 644 tonnes in July, 775 tonnes in August and 744 tonnes in September.
• Global V2O5 recovery rate of 76.9 per cent in Q3 2023 versus 80.7 per cent in Q3 2022.
• V2O5 equivalent sales of 2,385 tonnes versus 2,796 tonnes sold in Q3 2022.
• The average benchmark price per lb of V2O5 in Europe was $8.03, a 2.5-per-cent decrease from the average of $8.23 seen in Q3 2022.
• Ramp up of its new ilmenite concentration plant continues with ilmenite concentrate production of 350 tonnes in August and 700 tonnes in September.
• Largo Clean Energy (LCE) completed site acceptance testing of its Enel Green Power España (EGPE) 6.1-megawatt-hour vanadium redox flow battery (VRFB) deployment and submitted results to EGPE, with the expectation of completing the hot commissioning phase of the battery; provisional acceptance is expected in Q4 2023.
• Two thousand twenty-three production, sales, cost and capital expenditures guidance remain unchanged.

Daniel Tellechea, interim chief executive officer and director of Largo, stated: "Despite production setbacks in the third quarter caused by the previously reported accident in our chemical plant and delays in the ramp of our new magnetic separator in the crushing plant, Largo remains steadfast in its commitment to rectifying operations in the fourth quarter and has maintained its production, cost and capex guidance for 2023. Our top priority is safety and returning production to a more normalized level through the strengthening of operational efficiencies at the mine and crushing plant." He continued: "On the Largo Clean Energy front, we are pleased that hot commissioning and provisional acceptance of the EGPE 6.1 MWh VRFB deployment are in the final stages of completion, marking an exciting step towards the conclusion of LCE's inaugural vanadium battery project. Furthermore, the review of strategic alternatives to unlock and fully maximize the value of LCE remains ongoing and has garnered interest from various parties thus far. While near-term vanadium demand and prices are challenging on the back of weak demand from the steel sector, we are optimistic about future demand projections, particularly driven by an explosive growth of future VRFB deployments in the coming years."

Q3 2023 and other additional highlights

• Despite higher mining throughput in Q3 2023 (447,165 tonnes) compared with Q3 2022 (351,450 tonnes), V2O5 production from the Maracas Menchen mine was impacted in July and August as a result of the accident at the chemical plant in July, while production in September was affected by the lack of availability of the crushing circuit in September. Mitigative measures to increase production levels in future quarters, including increasing crusher availability and recommissioning evaporation sections of the chemical plant are under way. High-purity V2O5 equivalent production represented 38 per cent of the total quarterly production in Q3 2023.
• The global recovery achieved in Q3 2023 was 76.9 per cent, representing a 5-per-cent decrease from the 80.7 per cent achieved in Q3 2022 and 5 per cent lower than the 81.0 per cent achieved in Q2 2023. The global recovery in July was 78.8 per cent, with 77.7 per cent achieved in August and 73.6 per cent achieved in September. Lower recovery levels achieved during the quarter relate production impacts mentioned previously. The company produced 87,447 tonnes of concentrate with an effective grade of 2.94 per cent.
• V2O5 equivalent sales of 2,385 tonnes (inclusive of 256 tonnes of purchase material) were in line with expectations for Q3 2023 but represented a 17-per-cent decrease in tonnes sold over Q3 2022. The company's sales remain geographically diversified, with North America and Europe each representing approximately one-third of total sales, and South America and Asia representing the remaining third. Spot demand was soft in Q3 2023, primarily due to adverse conditions in the Chinese and European steel industries. However, strong demand for high-purity vanadium products continued.
• Effective Monday, Oct. 9, 2023, Celio Pereira assumed the role of chief operating officer (COO) of Largo Vanadio de Maracas S/A (LVMSA). This decision follows the departure of Alvaro Resende, to whom the company thanks for his many years of service. Mr. Pereira's appointment is a testament to his excellent record and the trust and confidence placed in him by the board and management of Largo. Mr. Pereira brings to LVMSA over eight years of operational and technical expertise, honed during his tenure at the Maracas Menchen mine. He will be instrumental in implementing a culture of safety and operational efficiency at the mine. Following this operational restructuring, the company expects an enhancement in operational efficiencies at the crushing and milling circuits, as well as the increasing throughput to the ilmenite plant.

About Largo Inc.

Largo is a globally recognized vanadium company known for its high-quality VPure and VPure+ products, sourced from its Maracas Menchen mine in Brazil. The company is currently focused on implementing an ilmenite concentrate plant and is undertaking a strategic evaluation of its United States-based clean energy business, including its advanced VCharge vanadium battery technology to maximize the value of the organization. Largo's strategic business plan centres on maintaining its position as a leading vanadium supplier with a growth strategy to support a low-carbon future.

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