Mr. Daniel Tellechea reports

LARGO REPORTS FOURTH QUARTER AND FULL YEAR 2023 OPERATIONAL AND SALES RESULTS HIGHLIGHTED BY RECORD QUARTERLY HIGH PURITY V2O5 PRODUCTION; PROVIDES 2024 GUIDANCE

Largo Inc. had annual production of 9,681 tonnes (21.3 million pounds) of vanadium pentoxide (V2O5) equivalent from its Maracas Menchen mine and sales of 10,396 tonnes of V2O5 equivalent in 2023.

Daniel Tellechea, interim chief executive officer of Largo, stated: "The company continues to improve the operational efficiency of its Maracas Menchen mine, and saw a considerable improvement in production results in the fourth quarter of 2023. As a result, the company managed to achieve its annual production and sales guidance for 2023. The company continues to place as many units as possible in the premium-yielding high-purity vanadium sector, achieving a record production of 1,670 tonnes of high purity V2O5 equivalent in Q4 2023, representing 60 per cent of the company's quarterly V2O5 output. This improvement is expected to partially offset the impact of lower vanadium prices in Q4 2023, which fell to their lowest level in approximately two years, and lower sales volumes compared to Q4 2022."

He continued: "In Q4 2023, we continued to ramp up our ilmenite concentrate plant and are pleased to provide the first annual guidance for this material in 2024. With a substantial investment in this new plant in 2022/2023, we look forward to reaping the benefits of diversifying Largo's product offering and revenues in 2024 from expected ilmenite sales as byproduct of our traditional vanadium operations. We completed our first 500-tonne ilmenite sale in January, 2024, and expect to sell between 8,500 and 10,500 tonnes in Q1 2024. For the coming year, it is our priority to remain focused on optimizing our operations, reducing costs, and achieving our production and sales targets as we continue to navigate a lower-vanadium-price environment. Lastly, Largo remains dedicated to advancing its exploration program surrounding the Maracas Menchen mine as we strive to plan for future growth."

Q4, fiscal year 2023 and other updates:

• Total ore mined was 473,958 tonnes in Q4 2023, a 45-per-cent increase over the 326,552 tonnes mined in Q4 2022. The company closed 2023 with 1,752,982 tonnes of ore mined, representing a 29-per-cent increase as compared to the previous year.
• Crushing availability improved in Q4 2023 with total ore crushed of 465,619 tonnes, representing an 8-per-cent increase over the 430,256 tonnes crushed in Q3 2023 and a 35-per-cent increase over the 343,773 tonnes crushed in Q4 2022. The company closed 2023 with 1,685,166 tonnes of ore crushed, being 9 per cent higher than 2022.
• The global recovery achieved in Q4 2023 was 79.4 per cent, being 6 per cent higher than 74.7 per cent achieved in Q4 2022 and 3 per cent higher than the 76.9 per cent achieved in Q3 2023. The global recovery3 in October was 79.2 per cent, 78.9 per cent in November and 80 per cent in December. The global recovery achieved in 2023 was 80 per cent, being 1 per cent higher than the 79.1 per cent achieved in 2022.
• In December, the company secured an additional debt facility of $10-million with a bank in Brazil. The facility is for two years with a fee of 0.85 per cent and an accrued interest rate of 10.45 per cent per annum to be paid on maturity. This debt facility is being used to finance working capital requirements.
• In December, 2023, the company provided an update on the continuing exploration program surrounding its Maracas Menchen mine, including an initial phase of drilling conducted in 2023 and the further analysis of past exploration work completed at the company's Campbell Pit and exploration targets located both north and south of the Campbell Pit. The company's goal for this program is to establish a potential mineralized trend measuring more than seven kilometres along strike by establishing a correlation between the known mineralization intercepted between Novo Amparo North (NAN) to the Campbell Pit (see press release dated Dec. 18, 2023).
  • In 2022 and 2023, the company conducted a drill program north and south of the Campbell Put consisting of 19 drill holes and 245 surface samples, 148 infill holes in the Campbell Pit and 33 holes in the Southern district. The company is in the process of analyzing its historical drill data and the remaining holes from the 2023 campaign with results expected in Q1 2024.
  • In 2024, the company anticipates completing approximately 15,300 metres of exploration drilling with efforts primarily focusing on areas north and south of the Campbell Pit with known magnetic and geochemical anomalies. Exploration efforts will also focus on concessions surrounding the Maracas Menchen mine that require drilling in order to maintain good standing in accordance with the applicable rules and regulations in Brazil. The company's 2024 drilling campaign is expected to begin in February, 2024.

2024 guidance

Tables summarizing the company's 2024 production, sales and cost guidance are provided herein. The company expects lower V2O5 equivalent production in Q1 2024 due to a planned kiln refractory replacement in February, 2024.

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 the ramp-up of its 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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