[Ferro-alloys.com] Largo Reports Q2 2026 Financial Results Reflecting 68% Revenue Growth and Positive Adjusted EBITDA, Despite Raw Material Input Cost Pressures; and Provides Guidance for New Copper-Platinum Group Metals Production

All amounts expressed are in U.S. dollars, denoted by "$".

Toronto, Ontario--(Newsfile Corp. - August 14, 2026) - Largo Inc. (TSX: LGO) (NASDAQ: LGO) ("Largo" or the "Company"), the world's largest primary vanadium producer, today announced financial and operating results for the three months ended June 30, 2026.

Mr. Alberto Arias, Executive Chairman and Co-Chief Executive Officer of Largo, stated: "Our second-quarter performance reflects the continued improvement of operations at the Maracás Menchen Mine and higher vanadium prices, which were partly offset by a rise in raw material input costs caused by war related disruptions in the Middle East. Higher ore availability at the mine resulted in a 29% increase in vanadium production while our commercial team increased sales by 53%. We are considering areas for further cost reductions to offset high sulfuric acid and fuel oil prices and anticipate generating revenues from our copper and Platinum Group Metals ("PGM") by-product production starting this month."

Mr. Jim Bannantine, Co-Chief Executive Officer of Largo, added: "The significant increase in revenue, together with positive Adjusted EBITDA and improved Mining Operations Adjusted EBITDA despite temporary cost pressures, demonstrates the value of pairing stronger production with improved commercial execution. We are preparing shipments for our first $60 million order from the U.S. Defense and Logistics Agency and have already started the production of copper-PGM concentrates as by-products from Maracás Menchen. We forecast copper-PGM concentrate production in the 300-380 ton per month range, with an average grade of approximately 15% copper and 41 grams per tonne of PGM. This copper-PGM concentrate production is being produced using existing infrastructure, diversifies our revenue base, and recovers greater value from material already being mined. Together with our expanded access to the U.S. market and the U.S. Defense Logistics Agency delivery order, these initiatives strengthen Largo's position as a supplier of critical minerals while supporting our focus on liquidity and long-term value creation."

Q2 2026 Highlights

Operation Highlights

• Vanadium pentoxide ("V?O?") production in Q2 2026 increased 28.5% to 2,900 tonnes vs. 2,256 tonnes in Q2 2025 and was near the upper end of the Company's quarterly guidance range of 2,500 to 3,000 tonnes. Production was supported by better ore availability and operational stability in the industrial plant. Year-to-date, V?O? production increased 55.2% to 5,516 tonnes vs. 3,553 tonnes in the first half of 2025.
• Largo continues to expect full-year 2026 V?O? equivalent production of 10,500 to 12,000 tonnes.
• Total ore mined in Q2 2026 increased 46.6% to 712,198 tonnes vs. 485,687 tonnes mined in Q2 2025. The effective ore grade¹ was 0.50% V?O? in Q2 2026 vs. 0.51% in Q2 2025.
• Global recovery² in Q2 2026 was 82.5% compared with 84.9% in Q2 2025.
• Ilmenite concentrate production in Q2 2026 decreased 11.6% to 7,205 tonnes vs. 8,149 tonnes in Q2 2025. Ilmenite production was temporarily suspended in June as the Company conducted further testing and prepared to transition flotation capacity toward copper-PGM concentrate production.
• Initial copper-PGM production guidance at 300 to 380 tonnes per month, at an expected average copper grade of approximately 15% Cu, 41 grams per ton of PGMs.

Commercial Highlights

• Sales in Q2 2026 totaled 2,773 tonnes of V?O? equivalent, including 61 tonnes of purchased material, up 53.5% from the 1,807 tonnes sold in Q2 2025, reflecting stronger commercial execution and improved market access. Separately, the Company delivered an additional 300 tonnes under its inventory supply agreement. These tonnes are subject to refund and were not recognized as sales.
• Sales of ilmenite concentrate, a by-product of the vanadium operation, increased 67.0% to 10,059 tonnes in Q2 2026 vs. 6,024 tonnes in Q2 2025.
• Vanadium market conditions strengthened during Q2 2026. In Europe, the average benchmark price for V?O? was $6.03/lb in Q2 2026 vs. $5.13/lb in Q2 2025, while the average benchmark price for FeV was $28.17/kg vs. $24.37/kg. The average U.S. FeV benchmark price increased 45.8% to $21.65/lb from $14.85/lb, supported by tighter supply and demand from the aerospace and infrastructure sectors.

Financial Highlights

• Revenues increased 68.5% to $44.0 million in Q2 2026 from $26.1 million in Q2 2025. Vanadium sales revenue increased 67.3% to $42.6 million, while ilmenite sales revenue increased 114.4% to $1.4 million, reflecting higher sales volumes and stronger realized vanadium pricing.
• Revenues per pound sold of V?O? equivalent increased 8.9% to $6.96 in Q2 2026 from $6.39 in Q2 2025, and 20.0% from $5.80 in Q1 2026.
• Cash operating costs excluding royalties were $5.10/lb sold in Q2 2026 compared with $4.63/lb in Q2 2025. Adjusted cash operating costs excluding royalties were $4.12/lb compared with $3.18/lb. The increases primarily reflected higher input costs, including diesel fuel, explosives and sulfur-derived reagents, together with higher operating activity supporting increased sales volumes.
• Cash provided before working capital items increased 206.2% to $6.6 million in Q2 2026 from $2.2 million in Q2 2025.
• Adjusted EBITDA increased to $2.7 million in Q2 2026 from $34 thousand in Q2 2025. Mining Operations Adjusted EBITDA increased 64.8% to $4.4 million from $2.7 million in Q2 2025.
• Largo recorded a net loss of $22.7 million in Q2 2026 compared with a net loss of $5.8 million in Q2 2025. The change primarily reflected large non-cash items such as a write-down of vanadium assets and a deferred income tax expense, as well as higher materials, supplies and other production costs, professional, consulting and management compensation, finance costs, partially offset by higher revenues.
• Basic loss per share was $0.21 in Q2 2026 compared with $0.09 in Q2 2025.
• The Company ended Q2 2026 with a cash balance of $5.1 million and debt of $114.2 million.

Financial and Operational Results - Highlights

Subsequent Events

U.S. Defense Logistics Agency Delivery Order

On July 7, 2026, Largo secured a $60.1 million delivery order from the U.S. Defense Logistics Agency Strategic Materials under a five-year contract. The order supports the supply of high-purity vanadium products and reinforces the Company's strategic role in U.S. critical-mineral supply chains.

U.S. Tariff Developments

On July 15, 2026, the Office of the United States Trade Representative published its final action imposing an additional 25% tariff on certain products of Brazil, effective for covered goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Time on July 22, 2026.

Vanadium oxides and hydroxides classified under HTSUS 2825.30 are expressly included on the published exemption list. Accordingly, Brazilian-origin V?O? imported under this tariff classification is not subject to the new 25% Brazil-specific Section 301 tariff.

The exemption is product-specific and does not extend to ferrovanadium ("FeV") exported directly from Brazil. Largo's exposure to the Brazil-specific tariff on ferrovanadium is limited, as the majority of the Company's ferrovanadium sales to the U.S. are not supplied directly from Brazil. The Company is also evaluating recently announced additional U.S. tariffs on certain Canadian products and their potential application to ferrovanadium supplied from Canada to the U.S.

At-The-Market Equity Offering Program

In January 2026, the Company launched an at-the-market equity offering program (the "ATM Program"). The ATM Program allows the Company to issue and sell common shares periodically on the Nasdaq Stock Market, with total gross proceeds of up to $60 million. Since the beginning of the year, Largo has raised approximately $24.8 million in net proceeds.

Start of Copper-PGM By-Product Production

Subsequent to Q2 2026, Brazil's National Mining Agency ("ANM") approved Largo's request to produce and sell copper, PGMs, nickel and cobalt as by-products from its existing mining operations at the Maracás Menchen Mine.

Following successful industrial-scale flotation tests, the Company commenced full-scale production of a copper-PGM concentrate on August 7, 2026, using its existing ilmenite flotation infrastructure.

Largo believes the initiative can diversify its revenue base, improve overall resource utilization and generate higher profit margins than ilmenite production without requiring material capital expenditures. The Company temporarily suspended ilmenite concentrate production to maximize copper-PGM concentrate output and is evaluating the additional equipment required to produce ilmenite concentrate from the copper flotation tailings. Largo is also discussing commercial terms for its first copper-PGM concentrate shipment with potential smelters and traders.

Vanadium Market Update

Vanadium market conditions strengthened during Q2 2026. In Europe, the average benchmark price for V?O? increased 17.5% to $6.03/lb from $5.13/lb in Q2 2025, while the average benchmark price for FeV increased 15.6% to $28.17/kg from $24.37/kg. In the U.S., the average FeV benchmark price increased 45.8% to $21.65/lb from $14.85/lb, supported primarily by tighter global supply and demand from the domestic aerospace and infrastructure sectors.

Stronger market pricing was reflected in the Company's realized revenue per pound sold, which increased approximately 20.0% to $6.96 in Q2 2026 from $5.80 in Q1 2026 and increased 8.9% from $6.39 in Q2 2025.

The Company continues to monitor market volatility, geopolitical developments and trade-policy changes that may affect pricing and commercial activity during the remainder of 2026.

Vanadium Guidance for 2026

Largo is reiterating its 2026 vanadium guidance. The Company continues to expect annual V?O? equivalent production of 10,500 to 12,000 tonnes, annual V?O? equivalent sales of 7,500 to 9,500 tonnes and adjusted cash operating costs excluding royalties of $3.50/lb to $4.50/lb sold.

1. Sales guidance does not include purchased products or any sold material related to the Company's vanadium inventory supply agreement.
2. Adjusted cash operating costs excluding royalties per pound is a non-GAAP ratio with no standard meaning under IFRS, and may not be comparable to similar financial measures disclosed by other issuers. Refer to the "Non-GAAP Measures" section of this press release.

The Company's 2026 guidance is presented on a business-as-usual basis and reflects management's current expectations for improved mine access, higher ore availability, and the continued impact of operational enhancements implemented during 2025.

The Company continues to monitor geopolitical and trade-related uncertainties, operating conditions and input costs and may revise its guidance if operating assumptions or market conditions materially change.

Initial Copper-PGM Concentrate Production Guidance for 2026

Based on the industrial test results, Largo is providing initial copper-PGM concentrate production guidance of approximately 300 to 380 tonnes per month at an expected average copper grade of approximately 15% Cu and 41 grams per ton of PGMs (13 grams per ton gold, 16 grams per ton platinum, 12 grams per ton palladium), and 53 grams per ton silver.

The Company expects production to progressively stabilize within this range as operations are optimized. Largo believes that copper-PGM concentrate production will provide an additional revenue stream, further strengthening the overall economics of its Maracás Menchen operations and lowering the effective cost of vanadium production through by-product credits.

The information provided within this release should be read in conjunction with Largo's unaudited condensed interim consolidated financial statements for the quarter ended June 30, 2026 and June 30, 2025 and its management's discussion and analysis ("MD&A") for the quarter ended June 30, 2026, which are available on the Company's website and on its profiles on SEDAR+ and EDGAR at www.sec.gov.

• [Editor:tianyawei]