Mr. Daniel Tellechea reports

LARGO CORPORATE UPDATE ON SUSTAINED OPERATIONAL PROGRESS AND SALES IMPACT OF US TARIFFS AND SHORT-TERM LIQUIDITY

Largo Inc. has provided an operational update, adjustments to its U.S. sales strategy amid continuing tariff measures and a financing update.

Vanadium production update

The company is pleased to report sustained production levels during third quarter 2025. In August, 2025, the company produced 931 tonnes of vanadium pentoxide equivalent, an improvement from 856 tonnes of V2O5 produced in July, 2025. These results further reflect the progress of the operational turnaround program initiated earlier this year, which continues to deliver improvements in mine planning, equipment availability and overall plant performance.

Ilmenite expansion under installation and aiming for late October commissioning

Largo produced 4,141 tonnes of ilmenite concentrate in July, 2025, and 3,298 tonnes in August, 2025, with TiO2 grades above 46 per cent. In September, 2025, the company started the installation of additional flotation cell circuits to increase its capacity to 115,000 metric tonnes from 42,000 mt of ilmenite concentrate annually. The ilmenite circuit stopped production in September, 2025, for the equipment installation and is currently expected to resume operations in November, 2025, with a ramp-up to the expanded production levels currently expected to occur by year-end. Annual guidance of 25,000 mt to 35,000 mt of ilmenite production for 2025 is maintained.

U.S. sales strategy update

The company finances all of its inventory during transit and ferrovanadium conversion. The company has recently been unable to deliver vanadium products under certain contracts due to the company's limited working capital. To address this situation, the company had discussions with affected customers and is evaluating various other short-term financing solutions.

On July 30, 2025, Executive Order 14323 increased tariffs on imports from Brazil to the United States from 10 per cent to 50 per cent, effective Aug. 6, 2025. This tariff increase did not affect Largo's ferrovanadium sales in the U.S., but is impacting Largo's high-purity vanadium sales contracts in the U.S. As a result of the tariffs and the short-term liquidity issues, the company is seeking to renegotiate affected contracts and has resulted in delayed shipments and some defaults to U.S. customers. The company has been actively lobbying the U.S. government to exempt vanadium products from tariffs on the basis that Largo's high-purity vanadium products are sold to customers in the titanium alloy and chemical industries, which are of critical strategic importance for the U.S. aerospace and defence industries.

Corporate update

The company is evaluating opportunities to unlock its ownership in tungsten projects, given that tungsten is deemed a critical material by multiple jurisdictions, including the U.S. and Canada. Largo owns 100 per cent of the Northern Dancer tungsten-molybdenum project in Yukon, Canada, as well as its Currais Novos tungsten project in Brazil. Preliminary economic assessments were completed for Northern Dancer and Currais Novos in 2011. The company is evaluating strategic alternatives for these assets to potentially unlock value.

The company believes Cirque Capital LLC is in default of its payment obligations to the company in connection with certain factoring transactions. The company is seeking an amicable resolution of the default but reserves all its legal remedies.

Due to the current liquidity issues, Largo's operation is at risk of operating disruptions given the accounts payables owed to its mining contractor and other suppliers. The company is evaluating several financing alternatives in the near term to address this issue.

Going concern

This news release should be read in conjunction with the company's interim consolidated financial statements and management's discussion and analysis for the three and six months ended June 30, 2025, which are available on SEDAR+ and the company's website. As disclosed in the company's interim financial statements and MD&A released on Aug. 12, 2025, the company will require additional financing to repay its liabilities, support its working capital to finance operating activities and continue to operate as a going concern. The company is actively pursing financing options to raise additional capital. There is no assurance that these initiatives will be successful, timely or sufficient.

Daniel Tellechea, interim chief executive officer of Largo, stated: "The company continues to navigate its current liquidity issues and challenging market conditions following the implementation of Executive Order 14323 and the resulting 50-per-cent tariff on imports from Brazil affecting our high-purity vanadium supply, which is of critical importance for the U.S. aerospace and defence industries. While these tariffs and our current liquidity issues have resulted in delayed shipments and/or some defaults on certain vanadium sales contracts, we are actively evaluating options to increase liquidity and continue negotiating payment plans with our suppliers and contractors."

Mr. Tellechea added, "Our operational turnaround initiatives are delivering results with sustained production of vanadium pentoxide of 931 tonnes in August after 856 tonnes in July, reflecting the progress made in strengthening mine and plant performance."

About Largo Inc.

Largo is a globally recognized supplier of high-quality vanadium and ilmenite products, sourced from its world-class Maracas Menchen mine in Brazil. As one of the world's largest primary vanadium producers, Largo produces critical materials that empower global industries, including steel, aerospace, defence, chemical and energy storage sectors. The company is committed to operational excellence and sustainability, leveraging its vertical integration to ensure reliable supply and quality for its customers.

Largo is also strategically invested in the long-duration energy storage sector through its 50-per-cent ownership of Storion Energy, a joint venture with Stryten Energy, focused on scalable domestic electrolyte production for utility-scale vanadium flow battery long-duration energy storage solutions in the U.S.

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

We seek Safe Harbor.