Surefire Establishes an Advancement Process for Vanadium Extraction

• Quarterly V ₂ O ₅ comparable production of 2,768 tonnes (6.1 million pounds ¹ ) in Q4 2023, a 38% boost over the 2,005 tonnes produced in Q4 2022
• Yearly V ₂ O ₅ production of 9,681 tonnes (21.3 million pounds ¹ ) in 2023 vs. 10,436 tonnes in 2022; Within the Business’s 2023 yearly production assistance series of 9,000– 11,000 tonnes
• Quarterly worldwide V ₂ O ₅ healing of 79.4% in Q4 2023, a 6% boost over the 74.7% attained in Q4 2022; Yearly worldwide V ₂ O ₅ healing of 80.0% in 2023 vs. 79.1% in 2022
• Quarterly sales of 2,605 tonnes of V ₂ O ₅ comparable (inclusive of 139 tonnes of acquired product) in Q4 2023 vs. 2,774 tonnes in Q4 2022
• Yearly V ₂ O ₅ comparable sales of 10,396 (inclusive of 929 tonnes of acquired product) tonnes in 2023 vs. 11,091 tonnes in 2022; Within the Business’s yearly 2023 sales assistance of 8,700– 10,700 tonnes
• Increase of the Business’s ilmenite concentrate production stays continuous with 8,970 tonnes produced in Q4 2023; Ilmenite production was 814 tonnes in October, 2,546 tonnes in November and 5,610 tonnes in December
• In October, Largo Clean Energy’s (” LCE”) 6 megawatt-hour vanadium redox circulation battery (” VRFB”) release for Enel Green Power España (” EGPE”) was verified to run on test conditions according to EGPE requirements and LCE test treatments
• The Business’s evaluation of tactical options for LCE to assess chances to optimize worth in the tidy energy shift stays continuous
• The Business released its 2nd yearly Environment Report , lined up to the Taskforce on Climate-related Financial Disclosures which highlighted enhancements to specific climate-related metrics and targets

Vanadium Market Update ²

• The typical benchmark cost per pound of V ₂ O ₅ in Europe was $6.46 in Q4 2023, a 22% reduction from the average of $8.25 seen in Q4 2022; The typical benchmark cost at December 31, 2023 was $6.53, a 31% reduction from the average of $9.44 at December 31, 2022
• The typical benchmark cost per kg of ferrovanadium in Europe was $26.61 in Q4 2023, a 20% reduction from the average of $33.20 seen in Q4 2022; The typical benchmark cost at December 31, 2023 was $28.70, a 21% reduction from the average of $36.50 at December 31, 2022
• Vanadium area need was soft in Q4 2023, mainly due to unfavorable conditions in the Chinese and European steel markets, nevertheless, strong need from the aerospace sector continued; Need in the energy storage market is prepared for to increase in future quarters, particularly in China
• The decrease in vanadium rates throughout the quarter is anticipated to adversely affect the Business’s Q4 2023 monetary outcomes

Largo Inc. (” Largo ” or the” Business “) ( TSX: LGO) ( NASDAQ: LGO ) today reveals yearly production of 9,681 tonnes (21.3 million pounds ¹ ) of vanadium pentoxide (” V ₂ O ₅ “) comparable from its Maracás Menchen Mine and sales of 10,396 tonnes of V ₂ O ₅ comparable in 2023.

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Largo Reports 4th Quarter and Complete Year 2023 Operational and Sales Outcomes Highlighted by Record Quarterly High Pureness V2O5 Production; Supplies 2024 Assistance (Picture: Organization Wire)

Daniel Tellechea, Interim CEO of Largo, mentioned: “The Business continues to enhance the functional effectiveness of its Maracás Menchen Mine, and saw a substantial enhancement in production lead to the 4th quarter of 2023. As an outcome, the Business handled to accomplish its yearly production and sales assistance for 2023. The Business continues to position as lots of systems as possible in the premium yielding high pureness vanadium sector, attaining a record production of 1,670 tonnes of high pureness V ₂ O ₅ comparable in Q4 2023, representing 60% of the Business’s quarterly V ₂ O ₅ output. This enhancement is anticipated to partly balance out the effect of lower vanadium rates in Q4 2023, which was up to their most affordable level in roughly 2 years, and lower sales volumes compared to Q4 2022.

He continued: “In Q4 2023, we continued to increase our ilmenite concentrate plant and are happy to supply the very first yearly assistance for this product in 2024. With a considerable financial investment in this brand-new plant in 2022/2023, we anticipate profiting of diversifying Largo’s item offering and earnings in 2024 from anticipated ilmenite sales as spin-off of our standard vanadium operations. We finished our very first 500 tonne ilmenite sale in January 2024 and anticipate to offer in between 8,500– 10,500 tonnes in Q1 2024. For the coming year, it is our concern to stay concentrated on enhancing our operations, minimizing expenses, and attaining our production and sales targets as we continue to browse a lower vanadium cost environment. Finally, Largo stays devoted to advancing its expedition program surrounding the Maracás Menchen Mine as we make every effort to prepare for future development.”

Maracás Menchen Mine Operational and Sales Outcomes

Q4, FY 2023 and Other Updates

• Overall ore mined was 473,958 tonnes in Q4 2023, a 45% boost over the 326,552 tonnes mined in Q4 2022. The Business closed 2023 with 1,752,982 tonnes of ore mined, representing a 29% boost as compared to the previous year.
• Squashing schedule enhanced in Q4 2023 with overall ore squashed of 465,619 tonnes, representing an 8% boost over the 430,256 tonnes squashed in Q3 2023 and a 35% boost over the 343,773 tonnes squashed in Q4 2022. The Business closed 2023 with 1,685,166 tonnes of ore crushed, being 9% greater than 2022.
• The worldwide healing ³ attained in Q4 2023 was 79.4%, being 6% greater than 74.7% attained in Q4 2022 and 3% greater than the 76.9% attained in Q3 2023. The worldwide healing ³ in October was 79.2%, 78.9% in November and 80.0% in December. The worldwide healing attained in 2023 was 80.0%, being 1% greater than the 79.1% attained in 2022.
• In December, the Business protected an extra financial obligation center of $10.0 million with a bank in Brazil. The center is for 2 years with a cost of 0.85% and an accumulated rate of interest of 10.45% p.a. to be paid on maturity. This financial obligation center is being utilized to money working capital requirements.
• In December 2023, the Business offered an upgrade on the continuous expedition program surrounding its Maracás Menchen Mine, consisting of a preliminary stage of drilling carried out in 2023 and the additional analysis of previous expedition work finished at the Business’s Campbell Pit and expedition targets situated both north and south of the Campbell Pit. The Business’s objective for this program is to develop a prospective mineralized pattern determining more than 7 kilometres (” km”) along strike by developing a connection in between the recognized mineralization obstructed in between Novo Amparo North (” NAN”) to the Campbell Pit ( see press launched outdated December 18, 2023 ).
  • In 2022 and 2023, the Business carried out a drill program north and south of the Campbell Put including 19 drill holes and 245 surface area samples, 148 infill holes in the Campbell Pit and 33 holes in the Southern District (the” 2023 Project “) The Business remains in the procedure of examining its historic drill information and the staying holes from the 2023 Project with outcomes anticipated in Q1 2024.
  • In 2024, the Business expects finishing roughly 15,300 metres of expedition drilling with efforts mainly concentrating on locations north and south of the Campbell Pit with recognized magnetic and geochemical abnormalities. Expedition efforts will likewise concentrate on concessions surrounding the Maracás Menchen Mine that need drilling in order to keep excellent standing in accordance with the relevant guidelines and policies in Brazil. The Business’s 2024 drilling project is anticipated to start in February 2024.

2024 Assistance

Tables summing up the Business’s 2024 production, sales and expense assistance is offered listed below. The Business anticipates lower V ₂ O ₅ comparable production in Q1 2024 due to a prepared kiln refractory replacement in February 2024.

V ₂ O ₅ Comparable Production, Sales and Money Operating Expense Omitting Royalties

Ilmenite Concentrate Production and Sales

2024 Capital Investment Assistance

The Business prepares to invest roughly $33.0 million on capital investment in 2024, consisting of roughly $14.0 million for sustaining capital requirements, $15.6 million for capitalized removing and $3.5 million for specific production procedure products associated with the ilmenite concentrate plant.

About Largo

Largo is an internationally acknowledged vanadium business understood for its premium VPURE ™ and VPURE+ ™ items, sourced from its Maracás Menchen Mine in Brazil. The Business is presently concentrated on the increase of its ilmenite concentrate plant and is carrying out a tactical examination of its U.S.-based tidy energy organization, including its innovative VCHARGE vanadium battery innovation to optimize the worth of the company. Largo’s tactical organization strategy centers on preserving its position as a leading vanadium provider with a development method to support a low-carbon future.

Largo’s typical shares trade on the Nasdaq Stock Exchange and on the Toronto Stock Market under the sign “LGO”. To learn more on the Business, please see www.largoinc.com

Cautionary Declaration Relating To Positive Info:

This news release consists of “positive details” and “positive declarations” within the significance of relevant Canadian and United States securities legislation. Positive details in this news release consists of, however is not restricted to, declarations with regard to the timing and quantity of projected future production and sales; the future cost of products; expenses of future activities and operations, consisting of, without constraint, the impact of inflation and currency exchange rate; the impact of unpredicted devices upkeep or repair work on production; timing and ramp-up of the ilmenite plant; the capability to produce vanadium trioxide according to consumer requirements; the degree of capital and running expenses; the effect of worldwide hold-ups and associated cost boosts on the Business’s worldwide supply chain and future sales of vanadium items. Positive details in this news release likewise consists of, however is not restricted to, declarations with regard to our capability to construct, financing and effectively run a VRFB organization, the ramp-up of the Business’s ilmenite concentrate production; the evaluation of tactical options for LCE; diversifying the Business’s item offering; enhancing our operations, minimizing expenses, and attaining our production and sales targets; the anticipated timing of the 2023 Project outcomes; developing a connection in between the recognized mineralization obstructed from NAN to the Campbell Pit; the 2024 drilling project at Campbell Pit; the kiln refractory replacement and organized capital investment in 2024.

The following are a few of the presumptions upon which positive details is based: that basic organization and financial conditions will not alter in a product unfavorable way; need for, and steady or enhancing cost of V2O5 and other vanadium products; invoice of regulative and governmental approvals, authorizations and renewals in a prompt way; that the Business will not experience any product mishap, labour conflict or failure of plant or devices or other material disturbance in the Business’s operations at the Maracás Menchen Mine or associating with LCE; the schedule of funding for operations and advancement; the capability to reduce the effect of continuing heavy rains; the Business’s capability to acquire devices and running materials in enough amounts and on a prompt basis; that the quotes of the resources and reserves at the Maracás Menchen Mine are within sensible bounds of precision (consisting of with regard to size, grade and healing and the functional and cost presumptions on which such quotes are based); the competitiveness of the Business’s VRFB innovation; that the Business’s present prepare for ilmenite and VRFBs can be attained; the Business’s “two-pillar” organization method will achieve success; the Business’s sales and trading plans will not be impacted by the developing sanctions versus Russia; and the Business’s capability to draw in and keep competent workers and directors; the capability of management to carry out tactical objectives.

Positive declarations can be recognized by the usage of positive terms such as “strategies”, “anticipates” or “does not anticipate”, “is anticipated”, “budget plan”, “arranged”, “quotes”, “projections”, “means”, “expects” or “does not expect”, or “thinks”, or variations of such words and expressions or declarations that specific actions, occasions or outcomes “might”, “might”, “would”, “may” or “will be taken”, “happen” or “be attained”. All details included in this press release, besides declarations of present and historic truth, is forward looking details. Positive declarations go through recognized and unidentified threats, unpredictabilities and other aspects that might trigger the real outcomes, level of activity, efficiency or accomplishments of Largo or LCE to be materially various from those revealed or suggested by such positive declarations, consisting of however not restricted to those threats explained in the yearly details type of Largo and in its public files submitted on www.sedar.com and readily available on www.sec.gov from time to time. Positive declarations are based upon the viewpoints and quotes of management since the date such declarations are made. Although management of Largo has actually tried to recognize crucial aspects that might trigger real outcomes to vary materially from those included in positive declarations, there might be other aspects that trigger results not to be as prepared for, approximated or planned. There can be no guarantee that such declarations will show to be precise, as real outcomes and future occasions might vary materially from those prepared for in such declarations. Appropriately, readers need to not position unnecessary dependence on positive declarations. Largo does not carry out to upgrade any positive declarations, other than in accordance with relevant securities laws. Readers need to likewise evaluate the threats and unpredictabilities areas of Largo’s newest yearly and interim MD&A, which likewise use.

Hallmarks are owned by Largo Inc.

Future Oriented Financial Info:

Any monetary outlook or future oriented monetary details included in this news release, as such term is specified by relevant securities laws, has actually been authorized by management of Largo since the date hereof and is offered the function of supplying details about management’s present expectations and strategies associating with the Business’s 2024 assistance. Readers are warned that any such future oriented monetary details included herein need to not be utilized for functions besides those for which it is divulged herein. The Business and its management think that the potential monetary details regarding the Business’s awaited 2024 assistance has actually been prepared on a sensible basis, showing management’s finest quotes and judgments. Nevertheless, since this details is extremely subjective, it needs to not be depended on as always a sign of future outcomes.

Non-GAAP ⁵ Procedures

The Business utilizes specific non-GAAP monetary efficiency procedures in this news release, which are explained in the following area.

Money Operating Expense

The Business’s news release describes cash operating expense per pound, a non-GAAP efficiency step, in order to supply financiers with details about an essential step utilized by management to keep an eye on efficiency. This details is utilized to evaluate how well the Maracás Menchen Mine is carrying out compared to strategy and previous durations, and likewise to evaluate its total efficiency and effectiveness. Money operating expense consists of mine website running expenses such as mining expenses, plant and upkeep expenses, sustainability expenses, mine and plant administration expenses, royalties and sales, basic and administrative expenses (all for the Mine homes sector), however omits devaluation and amortization, share-based payments, forex gains or losses, commissions, improvement, capital investment and expedition and examination expenses. Running expenses not attributable to the Mine homes sector are likewise omitted, consisting of conversion expenses, item acquisition expenses, circulation expenses and stock write-downs. These expenses are then divided by the pounds of vanadium offered that were produced by the Maracás Menchen Mine to reach the money operating expense per pound. This step varies to the brand-new overall money expenses non-GAAP determine the Business utilizes to determine its total efficiency (see Business’s most current Management Conversation and Analysis). These procedures, together with earnings, are thought about to be among the essential indications of the Business’s capability to create operating revenues and capital from its Maracás Menchen Mine. These money operating expense procedures do not have any standardized significance recommended by IFRS and vary from procedures figured out in accordance with IFRS. These procedures are planned to supply extra details and needs to not be thought about in seclusion or as a replacement for procedures of efficiency prepared in accordance with IFRS. These procedures are not always a sign of net revenues or capital from running activities as figured out under IFRS.

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¹ Conversion of tonnes to pounds, 1 tonne = 2,204.62 pounds or pounds.
² Fastmarkets Metal Publication.
³ Reliable grade represents the portion of magnetic product mined increased by the portion of V2O5 in the magnetic concentrate.
⁴ Worldwide healing is the item of squashing healing, milling healing, kiln healing, seeping healing and chemical plant healing.
⁵ GAAP– Typically Accepted Accounting Concepts

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Financier Relations
Alex Guthrie
Senior Supervisor, External Relations
+1.416.861.9778
[email protected]