Largo Reports First Quarter 2022 Operational And Sales Results; Begins Construction On Its Ilmenite Concentration Plant

Quarterly V 2 O 5 production of 2,442 tonnes (5.4 million lbs 1 ) in Q1 2022, a 23% increase over the 1,986 tonnes produced in Q1 2021

Q1 2022 operational results largely impacted by preventative and corrective maintenance on the Company’s plant facility in Maracás; V 2 O 5 production improved in March and the Company expects additional production improvements moving forward

Quarterly sales of 2,232 tonnes of V 2 O 5 equivalent in Q1 2022 vs. 2,783 tonnes in Q1 2020; Lower quarterly sales due to ongoing global logistical challenges

Construction of the Company’s ilmenite concentration plant commenced in April as part of its titanium dioxide (“TiO 2 “) pigment project outlined in its latest filed technical report

Largo Clean Energy (“LCE”) remained focused on delivering the Enel Green Power España (“EGPE”) contract announced on July 30, 2021; While supply chain challenges have emerged for the EGPE project, LCE has found alternative suppliers in support of an expected completion date in Q4 2022

Largo Inc. (” Largo ” or the ” Company “) ( TSX: LGO ) ( NASDAQ: LGO ) today announces quarterly production of 2,442 tonnes (5.4 million lbs 1 ) and sales 2,232 tonnes of vanadium pentoxide (“V 2 O 5 “) equivalent, respectively, from its Maracás Menchen Mine in Q1 2022.

Paulo Misk, President and CEO of Largo, stated: “As previously reported in March, the Company experienced impacts to both production and sales during the quarter mainly due to preventative and corrective maintenance on its facility and due to global logistical disruptions. We continue our focus on production improvements throughout the facility and are pleased to report improved V 2 O 5 equivalent production for the month of March with 1,009 tonnes produced. We expect further improvements to production in the second quarter.” He continued: “We are also excited to report that construction on the Company’s ilmenite concentration plant as part of the phased operational approach outlined for Largo’s TiO 2 pigment project has commenced at our Maracás operation in Brazil. This is an important first step in advancing one of the Company’s two strategic pillars and we look forward to providing additional updates as we progress through the first phase of this project.” He concluded: “Lastly, demand in all of the Company’s key vanadium markets remained strong in Q1 2022 reflected in strong price increases over the quarter.”

Maracás Menchen Mine Operational and Sales Results

	Q1 2022	Q1 2021
Total Ore Mined (tonnes)	303,652	263,966
Ore Grade Mined – Effective Grade (%)2	1.27	1.22
Concentrate Produced (tonnes)	92,324	100,467
Grade of Concentrate (%)	3.21	3.21
Global Recovery (%)3	77.5	77.4
V2O5 produced (Flake + Powder) (tonnes)	2,442	1,986
V2O5 produced (equivalent pounds) 1	5,383,682	4,378,375
Total V2O5 equivalent sold (tonnes)	2,232	2,783
Produced V2O5 equivalent sold (tonnes)	2,153	2,654
Purchased V2O5 equivalent sold (tonnes)	79	129

Operational Results in Q1 2022 Impacted by Maintenance; Improvements Seen in March: Production from the Maracás Menchen Mine was 2,442 tonnes of V 2 O 5 in Q1 2022, representing an increase of 23% over Q1 2021. January production was impacted by the residual effects of rainfall in Q4 2021 and a scheduled a six-day shutdown of the processing plant to perform maintenance on the plant cooler engine system and power substations. February production was impacted by a nonplanned corrective maintenance shutdown (5 days) to repair the cooler support bearing with March production being impacted by low concentrate stock levels leading to kiln feed rate restrictions. The Company began ramping up production towards the end of the quarter with a focus on replenishing its intermediate stock levels. In Q1 2022, global recoveries 3 averaged 77.5% as compared to the 77.4% averaged in Q1 2021 and were 2% higher than the 76.0% achieved in Q4 2021. The Company mined 303,652 tonnes of ore with an effective V 2 O 5 grade 2 of 1.27% in Q1 2022 compared to 263,966 tonnes with an effective V 2 O 5 grade 2 of 1.22% in Q1 2021.

Q1 2022 Sales Update: In Q1 2022, the Company sold 2,232 tonnes of V 2 O 5 equivalent compared to 2,783 tonnes sold in Q1 2021. The Company delivered both standard grade and high purity V 2 O 5 as well as ferrovanadium (“FeV”) to its customers, globally. Persistent logistical challenges and elevated transport costs have impacted all aspects of the Company’s supply chain resulting in lower than anticipated sales and increased inventory in transit in Q1 2022. However, the Company continued to deliver on all its commercial commitments through careful planning. The Company does not expect the logistics situation to improve until mid-2022, at which point the Company anticipates being able to reduce its inventory in transit through increased sales.

Ilmenite Plant Construction Commenced: In April, the Company received the required installation license to begin construction on its ilmenite concentration plant as part of its phased operational plan outlined in its latest technical report. The Company expects to begin producing ilmenite concentrate in H1 2023.

Q1 2022 Cash Cost Guidance: Due to operational impacts previously mentioned, lower sales, global inflationary pressures and the strengthening of the Brazilian Real against the U.S. Dollar, management anticipates cash operating costs excluding royalties 4 of approximately US$4.50 per pound sold for Q1 2022.

Clean Energy Manufacturing Facility and VCHARGE Certification Progress: LCE’s headquarter configuration, including a VRFB product development and stack manufacturing center, in Massachusetts, U.S. is nearing completion, with formal acceptance scheduled for May 2022. LCE began producing stacks and purifying electrolyte in the new facility and has scheduled prospective customer visits in May. LCE also proceeded with Conformité Européenne (“CE”) certification of the VCHARGE product, and ISO 9001 certification of LCE’s Quality Management System (“QMS”) with audits scheduled for May 2022.

About Largo

Largo has a long and successful history as one of the world’s preferred vanadium companies through the supply of its VPURE TM and VPURE+ TM products, which are sourced from one of the world’s highest-grade vanadium deposits at the Company’s Maracás Menchen Mine in Brazil. Following the acquisition of vanadium redox flow battery technology in 2020, Largo is working to integrate its world-class vanadium products with its VCHARGE vanadium battery technology to support the planet’s on-going transition to a low carbon future. Largo’s VCHARGE batteries are uniquely capable of supporting reliability and grid stability as electricity systems move away from fossil-fuel generation. VCHARGE batteries are cost effective due to a variety of innovations, enabling an efficient, safe and ESG-aligned long duration solution that is fully recyclable at the end of its 25+ year lifespan.

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