Mr. Daniel Tellechea reports

LARGO REPORTS THIRD QUARTER 2023 FINANCIAL RESULTS; ANNOUNCES FIRST COMMERCIAL SHIPMENT OF ILMENITE AS BY-PRODUCT OF ITS VANADIUM OPERATIONS IN BRAZIL AND VALIDATION OF ITS 6 MWH VANADIUM REDOX FLOW BATTERY TO OPERATE ON TEST CONDITIONS IN SPAIN

Largo Inc. has released its third quarter 2023 financial results. All amounts expressed are in U.S. dollars.

Q3 2023 and other highlights:

• Revenues of $44.0-million versus revenues of $54.3-million in Q3 2022; decline driven by lower vanadium prices and lower vanadium sales volumes; revenues per pound sold of V2O5 equivalent of $8.34 versus $8.80 in Q3 2022;
• Operating costs of $42.5-million versus $45.6-million in Q3 2022; cash operating costs excluding royalties per pound sold of $5.44 versus 4.86 per lb sold in Q3 2022;
• Net loss of $11.9-million versus net loss of $2.6-million in Q3 2022; basic loss per share of 19 cents versus basic loss per share of four cents in Q3 2022;
• Cash used before working capital items of $4.4-million versus cash provided before working capital items of $4.3-million in Q3 2022;
• Cash balance of $39.5-million, net working capital surplus of $91.0-million and debt of $65.0-million exiting Q3 2023;
• V2O5 equivalent sales of 2,385 tonnes (inclusive of 256 tonnes of purchased material) versus 2,796 tonnes (inclusive of 351 tonnes of purchased material) sold in Q3 2022;
• Production of 2,163 tonnes (4.8 million lb) of V2O5 versus 2.906 tonnes in Q3 2022;
• Largo Clean Energy's six-megawatt-hour vanadium redox flow battery deployment for Enel Green Power Espana was validated to operate on test conditions according to EGPE specifications and LCE test procedures in October;
• The company commissioned and is in the process of ramping up production of its new ilmenite concentrate plant with initial production of 350 tonnes in August and 700 tonnes in September; the first commercial shipment of ilmenite is in progress and should contribute to the company's revenues in fourth quarter 2023 as a byproduct of its vanadium operations;
• Q3 2023 results conference call: Thursday, Nov. 9 at 1 p.m. ET.

Vanadium market update:

• 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.
• Vanadium spot demand was soft in Q3 2023, primarily due to adverse conditions in the Chinese and European steel industries. However, strong demand growth from the aerospace and energy storage sectors continued.

Daniel Tellechea, director and interim chief executive officer of Largo, commented: "Q3 2023 was a challenging quarter for Largo, primarily due to the tragic accident that occurred at the company's chemical plant in July, as well as technical delays in commissioning our new crushing plant. The accident at the chemical plant resulted in a capacity bottleneck in the evaporator section of the plant, which resulted in lower overall production rates of vanadium in July and August. In early September, our operating team recommissioned the evaporator circuit, which is now operating at its original capacity. A delay in ramp-up of the new magnetic separation crushing plant also temporarily impacted vanadium production in Q3 2023. The new crushing plant was designed to offset the impact of lower mined vanadium grades, as per the company's mine plan. The operating team is in the process of resolving these issues, and we are pleased to report that the crushing plant exceeded 1,000 tonnes of contained V2O5 in October despite additional crushing plant improvements scheduled to be implemented in November and December."

He continued: "It is our priority to continue to optimize our operations, reduce costs, and achieve production and sales targets safely. In light of this, we maintain our guidance for 2023. Additionally, further measures are being implemented to improve the organization's performance, including optimizing operational efficiencies through the implementation of the new crushing system, concentrating on increasing production of high-purity vanadium, restructuring equipment maintenance processes to further reduce costs and ramping up ilmenite production starting in the fourth quarter of 2023 to diversify revenues. We are beginning to see a notable reduction in key consumable costs, such as sodium carbonate, as well as ongoing overhead cost reductions through a reduction of the number of contractors at the mine through efficiency improvement programs and further reductions in the head count at LCE. The company considers these ongoing initiatives to be a vitally important measures to counter the current decrease in vanadium prices."

He concluded: "During this past year, we have also made several significant investments that are necessary for the sustainability of our operations in a lower vanadium price environment. Among these investments are an increased waste rock prestripping and aggressive infill drilling program to optimize production in the years to come. Our team has successfully built and commissioned an ilmenite plant to diversify future revenues as a byproduct of the vanadium mine, built a new magnetic separation crushing plant for the purpose of mining lower-grade material without reducing production levels, and delivered the company's first vanadium battery to EGPE, our European energy storage customer. A substantial investment has been made in LCE, which is not yet generating significant revenues, but continues to consume cash. With our current strategic review process in place, Largo expects to optimize the value proposition of LCE and participate in one of the most significant macrotrends, the clean energy transition with vanadium as a critical material. With these investments, we believe that Largo is on the path to a brighter future."

The information provided within this release should be read in conjunction with Largo's unaudited condensed interim consolidated financial statements for the three and nine months ended Sept. 30, 2023, and 2022, and its management's discussion and analysis for the three and nine months ended Sept. 30, 2023, which are available on its website or on the company's respective profiles at SEDAR+ and the Securities and Exchange Commission website.

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.

Largo's common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange under the symbol LGO.

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