Mr. Daniel Tellechea reports

LARGO REPORTS FOURTH QUARTER AND FULL YEAR 2023 FINANCIAL RESULTS; CONTINUED FOCUS ON OPERATIONAL IMPROVEMENTS AND COST REDUCTION TO OFFSET DEPRESSED VANADIUM PRICES

Largo Inc. today released financial and operating results for the three and 12 months ended Dec. 31, 2023. The company reported annual vanadium pentoxide (V2O5) equivalent sales of 10,396 tonnes at a cash operating cost excluding royalties per pound sold of $5.30. (All dollar amounts are in U.S. dollars unless otherwise indicated.)

Daniel Tellechea, interim chief executive officer and director of Largo, stated: "The company's financial results continued to be adversely affected by lower vanadium prices as highlighted by a sharp decline in the European V2O5 price of 22 per cent in Q4 2023 compared to Q4 2022. We remain committed to achieving greater levels of operational efficiency at the Maracas Menchen mine in order to meet production and sales targets improve cash flow going forward."

He continued: "A number of notable achievements were made by the company during 2023, including the successful construction and commissioning of a new ilmenite concentration plant. We continue with the ramp-up of production at this facility, further diversifying our revenue stream from our existing vanadium operations. Largo's exploration efforts surrounding the Maracas Menchen mine have become an increasingly important part of our story over the last few quarters and we continue to advance our efforts in this area. Following our recent announcement on our review and evaluation of strategic alternatives to unlock and fully maximize the value of LCE, we look forward to continuing discussions with Stryten over the coming weeks."

He concluded, "While vanadium appears to have very promising long-term fundamentals, the company remains solely focused on reducing costs and meeting its production and sales targets to withstand the current period of low vanadium prices."

Q4 and full-year 2023 notes and other highlights:

• The company recorded a net loss of $32.4-million in 2023, compared with a net loss of $2.2-million in 2022, largely driven by a 13-per-cent decrease in revenues and an increase in certain expenses, most notably a 3-per-cent increase in operating costs, a 506-per-cent increase in finance costs, a 195-per-cent increase in exploration and evaluation costs, and a writedown of vanadium assets of $4.9-million.
• In 2023, the company saw increased direct mine and production costs, primarily due to an increase in total ore mined in 2023, the cost impacts of low ore availability experienced earlier in the year and plant shutdowns for corrective maintenance during 2023. The company's direct mine and production costs decreased in Q4 2023 as compared with Q4 2022, reflecting the impact of the cost saving and operational improvement initiatives implemented at the mine, as well as the softening of prices for critical consumables.
• The company continues to actively work toward achieving higher levels of operational efficiency to better manage its costs as it navigates lower grades of ore mined as compared with prior years. In Q4 2023, V2O5 equivalent production was 28 per cent higher than the 2,163 tonnes produced in Q3 2023 and 38 per cent higher than the 2,004 tonnes produced in Q4 2022. The global recovery achieved in Q4 2023 was 79.4 per cent, an increase of 6.3 per cent from the 74.7 per cent achieved in Q4 2022 and 3.3 per cent higher than the 76.9 per cent achieved in Q3 2023. The total ore mined in Q4 2023 was 473,958 tonnes, an increase of 45 per cent in comparison with Q4 2022. 1,752,982 tonnes of ore were mined in 2023, an increase of 29 per cent as compared with 2022. Actions were taken to increase crushing availability and normal production levels were recovered in Q4 2023. Total ore crushed in Q4 2023 was 8 per cent higher than in Q3 2023 and 35 per cent higher than in Q4 2022. For 2023, total ore crushed was 9 per cent higher than in 2022.
• For 2023, total professional, consulting and management fees decreased by 9 per cent from 2022 and other general and administrative expenses decreased by 18 per cent from 2022, both as a result of reduced activity and head count at LCE as a result of the initiation of the strategic review. Additionally, technology start-up costs decreased by 52 per cent in 2023 compared with 2022, primarily due to a writedown of battery components inventory in Q4 2022 of $6.4-million and a decrease in activities at LCE in Q4 2023 as the installation of its battery project nears conclusion.
• In 2021, the company signed a 10-year exclusive off-take agreement with Gladieux Metals Recycling (GMR) for the purchase of all standard and high-purity-grade vanadium products GMR produces. The company is committed to the purchase of a minimum of 360 tonnes of V2O5 in 2024 and its onward distribution to customers.
• Subsequent to Q4 2023, production in January, 2024, was 582 tonnes of V2O5 equivalent with 276 tonnes of V2O5 equivalent produced in February, 2024. Lower production achieve in the first two months of Q1 2024 is attributable to the company's previously announced kiln refractory maintenance. Subsequent to Q4 2023, sales in January, 2024, were 1,072 tonnes of V2O5 equivalent, with 1,065 sold in February, 2024.

The information provided within this news release should be read in conjunction with Largo's annual consolidated financial statements for the years ended Dec. 31, 2023, and Dec. 31, 2022, and its management's discussion and analysis for the year ended Dec. 31, 2023, which are available on the company's website or on the company's respective profiles on SEDAR+ and EDGAR.

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 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.

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

We seek Safe Harbor.