Mr. Daniel Tellechea reports

LARGO REPORTS FIRST QUARTER 2024 FINANCIAL RESULTS; COST REDUCTION MEASURES AND PRODUCTIVITY INITIATIVES UNDERWAY

Largo Inc. has released financial results for the three months ended March 31, 2024. The company reported quarterly vanadium pentoxide equivalent sales of 2,765 tonnes at a cash operating cost excluding royalties per pound sold of $6.12. Financial figures are expressed in U.S. dollars except as otherwise stated.

Daniel Tellechea, interim chief executive officer and director of Largo, stated: "Having navigated challenges in the first quarter, such as an extended maintenance period which led to increased costs, and a sharp decline in vanadium prices, our focus remains on restoring profitability at Largo. We continued to realize cost savings at our clean energy division this quarter as a result of initiating our strategic review process, and negotiations with Stryten Energy LLC remain ongoing. While we anticipate elevated costs in the first half of the year, we expect improvements in the second half as the full effects of our previously announced productivity initiatives and cost reduction measures materialize at our Maracas Menchen mine."

First quarter 2024 notes:

• The company recorded a net loss of $13.0-million in Q1 2024 compared with a net loss of $1.2-million in Q1 2023, primarily due to a 27-per-cent decrease in revenues and an 8-per-cent increase in operating costs, which were partially offset by a 24-per-cent decrease in professional, consulting and management fees and a 73-per-cent decrease in technology start-up costs.
• In Q1 2024, the company's direct mine and production costs of $29.9-million increased by 5 per cent over Q1 2023, primarily due to the impact of the scheduled plant shutdown in Q1 2024 and the associated lower global recoveries and higher costs as the plant resumed operations. During the shutdown, the kiln refractory was replaced, and annual maintenance activities were performed in the crushing, milling, ilmenite, leaching and chemical sections of the plant.
• Cash operating costs excluding royalties of $6.12 per pound sold in Q1 2024 increased by 19 per cent over Q1 2023 ($5.15 per lb) due to the reasons noted above and included a writedown of produced vanadium products of $4.5-million. Additionally, increased quantities of ore mined and lower grades also impacted the financial performance during the quarter. The company is actively working to achieve operational stability and operating norms to better manage its unit costs, and has implemented a number of initiatives with the goal of reducing production costs and improving productivity. These include reducing haulage distances, reducing the number of contractors and a comprehensive review of all contracts.
• Professional, consulting and management fees in Q1 2024 decreased from Q1 2023 by 24 per cent ($1.3-million), primarily due to reduced activity and head count at Largo Clean Energy Corp. as a result of the initiation of its strategic review process. Technology start-up costs in Q1 2024 also decreased from Q1 2023 by 73 per cent ($2.0-million), which is primarily attributable to a decrease in activities at LCE in Q1 2024 as the installation of its battery project nears conclusion.
• Subsequent to Q1 2024, production and sales were 815 tonnes and 757 tonnes of V2O5 equivalent, respectively, in April, 2024, with 2,500 tonnes of ilmenite concentrate being produced during this period and 8,363 dry tonnes of ilmenite being sold.
• In May, 2024, the company secured a working capital debt facility with a bank in Brazil for a total limit of $8.0-million. Drawdowns on the facility are repayable in 90 days together with accrued interest at a rate of 8.25 per cent per year, with renewals subject to approval by the bank.
• On May 15, 2024, the company signed a binding term sheet for up to $10.0-million in inventory financing. Under the terms of this facility, which shall have a minimum duration of 12 months, the company will use its vanadium finished product inventory to secure drawdowns of up to $10.0-million for a maximum period of 90 days. Amounts repaid will include a commission fee of 1 per cent, interest at an expected rate of the U.S. secured overnight financing rate plus 2.5 per cent and other direct costs.

The information provided within this release should be read in conjunction with Largo's unaudited condensed interim consolidated financial statements for the three months ended March 31, 2024, and 2023, and its management's discussion and analysis for the three months ended March 31, 2024, which are available on its website or on the company's respective profiles at SEDAR+ and the Securities and Exchange Commission website.

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 ramping up production 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.

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

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