Q1 2020 Highlights

Net income of $5.7 million and basic earnings per share of $0.01

Cash operating costs excluding royalties1 of US$2.79 ($3.69) per lb of V2O5, a decrease of 18% over Q1 2019

Production of 2,831 tonnes (6.2 million pounds2) of V2O5, a 35% increase over Q1 2019

V2O5 sales of 3,170 tonnes, a 51% increase over Q1 2019

Revenues of $58.2 million (after a positive re-measurement of trade receivables / payables of $2.4 million on vanadium sales from a contract with a customer of $55.8 million ), an increase of 31% over Q1 2019

Cash balance of $206.1 million exiting Q1 2020

Commercial independence: Over 85% committed on annual guided sales for 2020

COVID-19 Update: The Maracás Menchen Mine continued operations during Q1 2020 and the Company is maintaining it’s 2020 guidance on a “business as usual” basis

Q1 2020 operational and financial results conference call: Wednesday, May 13th, 2020 at 10:00 a.m. EST

TORONTO , May 12, 2020 /CNW/ – Largo Resources Ltd. (“Largo” or the “Company”) (TSX: LGO) (OTCQX: LGORF) is pleased to report its first quarter 2020 results highlighted by net income of $5.7 million or basic earnings per share of $0.01 , cash operating costs excluding royalties1 of US$2.79 per pound V2O5, and vanadium pentoxide (“vanadium” or “V2O5”) production of 2,831 tonnes.

Paulo Misk , President and Chief Executive Officer for Largo, stated: “Despite production impacts during the quarter, I am pleased to report the Company generated net income of $5.7 million in Q1 2020 following a new quarterly sales record of 3,170 tonnes of V2O5. The Company also performed well on a unit cost basis, achieving a cash operating cost excluding royalties1 of US$2.79 per pound in Q1 2020 – a decrease of 18% over Q1 2019. Our financial position continues to remain solid with a cash balance of US$147.5 million ( $204.6 million ) as of April 30, 2020 and a final revenue adjustment payable of US$64.4 million due to the Company’s former off-take partner. Following the offset against receivable amounts due to the Company, we expect the net trade payables payment of US$57.4 million will be settled between May 15 and 25, 2020 . The Company is also evaluating the timing for the construction of the ferrovanadium conversion plant, including the deferral of planned 2020 capital expenditures due to precautionary measures associated with our employees and contractors in light of COVID-19.”

He continued: “I am also very pleased to report that Largo has commenced full commercial control of its vanadium output following the expiration of the Company’s off-take agreement on April 30, 2020 . The Company’s sales and trading team continues its dedication to the promotion and sales of Largo’s products and have committed over 85% of the Company’s annual guided sales for 2020. This strategic transition marks a transformative moment in Largo’s history and we expect our commercial independence will prove beneficial both economically and strategically going forward. Largo is now an even more important player in the global vanadium industry and we look to continue maximizing value for all of our shareholders as the industry preferred producer and supplier of vanadium.”