Largo Announces Strategic Focus on Higher-Margin Products; Provides Update on Copper-Platinum Group Metal Margins and Potential Expansion; and Further Advances Debt Restructuring

Largo is optimizing its production mix toward high-purity vanadium and copper-platinum group metals (" PGMs ") by-products, which currently generate materially higher margins than the Company's standard-grade vanadium products and ferrovanadium (" FeV" ). Largo's recent sales of copper-PGM concentrates are generating approximately US$4.7 million in revenue and an operating profit margin above 90%, making it the Company's highest-margin product. The Company is evaluating a potential expansion to double copper-PGM concentrate production in 2027. The Company has produced and shipped its first high-purity vanadium pentoxide material for the U.S. Defense Logistics Agency (" DLA ") and is currently completing production of its second shipment. Largo executed a definitive debt-restructuring agreement with Banco do Brasil , its largest creditor, with key provisions consistent with the binding term sheet announced in the Company's August 20, 2026 press release. Together with the previously announced definitive agreement with Caixa Econômica Federal, the Company has now executed definitive restructuring agreements representing approximately 48% of its US$82 million in commercial bank senior debt.

Largo Inc. (TSX: LGO) (NASDAQ: LGO) (" Largo " or the " Company "), the world's largest primary vanadium producer, today provided an important update on its production, commercial, and financing strategies.

Following recent process optimization work and changes to its production flowsheet, Largo has developed a production strategy focused on increasing the share of sales from higher-margin products. The strategy is centered on two principal areas: High-purity vanadium, including material supplied to the U.S. defense and aerospace sectors and to vanadium electrolyte producers; and Copper-PGM concentrates, containing copper, gold, platinum, palladium and silver, recovered as by-products from material associated with the Company's Maracás Menchen operation.

An optimization study of Largo's high-purity vanadium operations indicated the capacity to increasing high-purity production to approximately 68% of total vanadium production, which could maximize cash generation under current market conditions. Under the optimized production plan, overall vanadium pentoxide output would be expected to trend toward approximately 876 tonnes per month, a rate corresponding to the low end of the Company's current production guidance, compared with approximately 1,000 tonnes per month at the upper end of the guidance. The lower overall production rate is expected to be more than offset by the higher realized pricing and margins from an increased proportion of high-purity vanadium, resulting in an expected net positive impact on cash flows.

High-purity material represented approximately only 4% of Largo's vanadium production during the first half of 2026, reflecting, among other factors, the impact of the tariff environment affecting Brazilian exports during 2025 and early 2026. Vanadium oxides are currently exempt from applicable U.S. import tariffs, and Largo can now significantly increase its vanadium product mix to high-purity vanadium.

Largo's supply relationship with the DLA is an important component of the Company's strategy to increase its exposure to premium high-purity vanadium markets. The Company has produced and shipped its first high-purity vanadium pentoxide material for the DLA and is currently completing production of its second shipment.

Largo's recently completed sales of copper-PGM concentrate generating approximately US$4.7 million of revenue and an operating profit margin above 90%.