Mr. Celio Pereira reports

LARGO ANNOUNCES COST REDUCTION AND PRODUCTIVITY IMPROVEMENTS AT ITS MARACAS MENCHEN MINE; REPORTS Q1 2024 PRODUCTION AND SALES RESULTS

Largo Inc. intends to implement extensive changes to reduce production costs and improve productivity at its Maracas Menchen mine through several initiatives, including the reduction of haulage distances, costs of inputs as well as comprehensive review of all contracts. The company will reduce the number of contractors by 20 per cent in Q2 2024 and prioritize its capital expenditures for low-cost, high-return projects in order to optimize the use of cash. The company had quarterly production of 1,729 tonnes of vanadium pentoxide (V2O5) equivalent and sales of 2,765 tonnes V2O5 equivalent in Q1 2024.

As part of the plan to increase productivity, the company plans to increase its annual crushing capacity by approximately 220,000 tonnes, or 22 per cent, by the end of Q2 2024 following the installation of a mobile crusher, dry magnetic and wet magnetic separator from inventory, which is expected to compensate for lower grades and higher silica levels resulting from increased processing of disseminated vanadium ore. These actions are expected to maintain the company's production capacity by providing the required throughput and grades needed to achieve its set production targets in accordance with its 2024 mining plan.

Also, starting in Q2 2024, the company plans to feed its ilmenite plant with ilmenite feedstock from its non-magnetic ponds from ores processed in prior years. This action is expected to increase ilmenite production in 2024 as well as improve titanium dioxide (TiO2) grades as non-magnetic material stored in the company's ponds contain higher TiO2 grades than feedstock from current mine operations.

For the remainder of 2024, the company expects a reduction of approximately 48 million Brazilian reais in operating expenditures and approximately 12 million Brazilian reais in ilmenite capital expenditures.

Celio Pereira, chief operating officer of Largo, Brazil, stated: "Maximizing operational output and reducing costs remain top priorities at Largo. We have identified several avenues for cost reduction at the Maracas Menchen mine and we expect to realize the benefits of these initiatives in the second half of the year. When combined with our productivity improvement initiatives this year, these measures are expected to assist the company in achieving its revised 2024 cost guidance and offset some of the impact of lower vanadium prices."

He continued: "In Q1 2024, the operations team conducted the planned annual maintenance at the mine, which included the replacement of the kiln refractory as well annual maintenance actions performed in the crushing, milling, ilmenite, leaching and chemical sections of the plant. Following this maintenance, we also expect to remain within our annual production guidance of 9,000 to 11,000 tonnes of V2O5 for 2024."

Q1 2024 production and sales overview:

• Lower expected production in Q1 2024 due to kiln refractory maintenance: V2O5 production in January was 582 tonnes, with 276 tonnes produced in February and 871 tonnes produced in March, for a total of 1,729 tonnes produced in Q1 2024. Production in Q1 2024 was largely impacted by the replacement of the kiln refractory and associated restart of operations following the performed maintenance during the quarter. During this shutdown, the company completed its yearly maintenance activities in the crushing, milling, ilmenite, leaching and chemical sections of the plant. In Q1 2024, global recoveries averaged 70.5 per cent, being 15 per cent lower than the 83.0 per cent averaged in Q1 2023 and 11 per cent lower than the 79.4 per cent achieved in Q4 2023. Lower global recoveries achieved during Q1 2024 are largely attributable to the kiln refractory maintenance performed during the quarter. As part of its continuing efforts to offset lower grades of ore mined in Q1 2024, the company continued to increase mining throughput during the quarter to 604,231 tonnes with an effective V2O5 grade of 0.53 per cent, compared with 341,967 tonnes with an effective V2O5 grade of 0.81 per cent in Q1 2023. Total crushed ore also increased by 50 per cent over Q1 2023 (344,265 tonnes) to 516,547 tonnes in Q1 2024 and 11 per cent over the 465,619 tonnes crushed in Q4 2023.
• Sales results in Q1 2024 in line with quarterly guidance -- steel sector demand remains soft: V2O5 equivalent sales of 2,765 tonnes (inclusive of 156 tonnes of purchased material) were within the upper end of the company's quarterly guidance range for Q1 2024 but represented a 3-per-cent decrease over the 2,849 tonnes sold in Q1 2023. Spot demand remained soft in Q1 2024, primarily due to continuing adverse conditions in the Chinese and European steel sectors. The average benchmark price per pound of V2O5 in Europe was $6.44 in Q1 2024, a 38-per-cent decrease from the average of $10.39 seen in Q1 2023. The average benchmark price per kilogram of ferrovanadium in Europe was $27.96 in Q1 2024, a 30-per-cent decrease from the average of $39.46 seen in Q1 2023.

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 U.S.-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.