Ms. Vera Abdo reports

LARGO ANNOUNCES STRATEGIC FOCUS ON HIGHER-MARGIN PRODUCTS; PROVIDES UPDATE ON COPPER-PLATINUM GROUP METAL MARGINS AND POTENTIAL EXPANSION; AND FURTHER ADVANCES DEBT RESTRUCTURING

Largo Inc. today provided an important update on its production, commercial and financing strategies.

Key highlights:

• Higher-margin production strategy: Largo is optimizing its production mix toward high-purity vanadium and copper-platinum group metals (PGMs) byproducts, which currently generate materially higher margins than the company's standard-grade vanadium products and ferrovanadium (FeV).
• Largo's recent sales of copper-PGM concentrates are generating approximately $4.7-million (U.S.) in revenue and an operating profit margin above 90 per cent, making it the company's highest-margin product. The company is evaluating a potential expansion to double copper-PGM concentrate production in 2027.
• The company has produced and shipped its first high-purity vanadium pentoxide material for the U.S. Defense Logistics Agency (DLA) and is currently completing production of its second shipment.
• Largo executed a definitive debt-restructuring agreement with Banco do Brasil, its largest creditor, with key provisions consistent with the binding term sheet announced in the company's Aug. 20, 2026, press release. Together with the previously announced definitive agreement with Caixa Economica Federal, the company has now executed definitive restructuring agreements representing approximately 48 per cent of its $82-million (U.S.) in commercial bank senior debt.

Strategic focus on expanding higher-margin products

Following recent process optimization work and changes to its production flowsheet, Largo has developed a production strategy focused on increasing the share of sales from higher-margin products.

The strategy is centred on two principal areas:

1. High-purity vanadium, including material supplied to the U.S. defence and aerospace sectors and to vanadium electrolyte producers;
2. Copper-PGM concentrates, containing copper, gold, platinum, palladium and silver, recovered as byproducts from material associated with the company's Maracas Menchen operation.

An optimization study of Largo's high-purity vanadium operations indicated the capacity to increasing high-purity production to approximately 68 per cent of total vanadium production, which could maximize cash generation under current market conditions.

Under the optimized production plan, overall vanadium pentoxide output would be expected to trend toward approximately 876 tonnes per month, a rate corresponding to the low end of the company's current production guidance, compared with approximately 1,000 tonnes per month at the upper end of the guidance.

The lower overall production rate is expected to be more than offset by the higher realized pricing and margins from an increased proportion of high-purity vanadium, resulting in an expected net positive impact on cash flows.

High-purity material represented approximately only 4 per cent of Largo's vanadium production during the first half of 2026, reflecting, among other factors, the impact of the tariff environment affecting Brazilian exports during 2025 and early 2026. Vanadium oxides are currently exempt from applicable U.S. import tariffs, and Largo can now significantly increase its vanadium product mix to high-purity vanadium.

U.S. Defense Logistics Agency high-purity vanadium

Largo's supply relationship with the DLA is an important component of the company's strategy to increase its exposure to premium high-purity vanadium markets. The company has produced and shipped its first high-purity vanadium pentoxide material for the DLA and is currently completing production of its second shipment.

Copper-PGM concentrate generates operating margins above 90 per cent

Largo's recently completed sales of copper-PGM concentrate generating approximately $4.7-million (U.S.) of revenue and an operating profit margin above 90 per cent.

Based on these recent transactions, copper-PGM concentrate is currently the highest-margin product generated from Largo's operations.

The company continues to target copper-PGM concentrate production of approximately 300 to 380 tonnes per month, with concentrate grades expected to remain generally consistent with those previously disclosed in the company's Aug. 14, 2026, press release.

Given the strong margins demonstrated by recent sales, increasing copper-PGM concentrate production has become an important strategic priority.

Largo is currently completing internal engineering and process studies to evaluate a cost-efficient expansion that could potentially approximately double copper-PGM concentrate production capacity during 2027.

The company benefits from more than 12 years of accumulated non-magnetic tailings containing recoverable metals, in addition to the approximately 30-year mineral resource life associated with the Maracas Menchen operation, providing a substantial potential feed base for future byproduct recovery and production expansions.

Expansion of copper-PGM production would further diversify Largo's revenue base beyond vanadium and titanium by increasing exposure to copper, gold, platinum, palladium and silver. Management believes this broader product mix has the potential to reduce the company's exposure to the price cycle of any single commodity.

Additional ilmenite recovery studies

Largo is also conducting metallurgical testwork evaluating the recovery of ilmenite from tailings generated following the copper-PGM flotation process. Initial testwork has been encouraging. The company is evaluating potential pathways to resume ilmenite production, supported by interest from Brazilian customers that use ilmenite as a feedstock for titanium dioxide pigment production.

The potential integration of vanadium, copper-PGM and ilmenite recovery is consistent with Largo's broader strategy of maximizing value recovered from the Maracas Menchen orebody and previously processed material.

Further progress on Brazilian bank debt restructuring

Largo has executed a definitive agreement with Banco do Brasil, the company's largest commercial bank lender.

Together with the definitive agreement previously executed with Caixa Economica Federal, Largo has now executed definitive agreements covering approximately 48 per cent of its approximately $82-million (U.S.) of commercial bank senior debt.

The Banco do Brasil agreement is substantially consistent with the terms of the binding term sheet described in the company's Aug. 20, 2026, press release.

The company continues to work with the remaining members of its Brazilian commercial bank lender group to complete definitive agreements consistent with the previously announced restructuring framework set out in the binding term sheet.

About Largo Inc.

Largo is the world's largest primary vanadium producer and a globally recognized supplier of high-quality vanadium products, sourced from its world-class Maracas Menchen mine in Brazil. 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 clean energy storage sector through its 37.4-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.

The company also holds a 100-per-cent interest in the Northern Dancer tungsten-molybdenum property located in the Yukon Territory, Canada, and 100-per-cent interest in the Currais Novos tungsten project near Natal, Brazil. Preliminary economic assessments were completed for each asset in 2011.

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