Mr. Francesco D'Alessio reports

LARGO PROVIDES UPDATE ON STATUS OF IRON ORE CALCINE COMMERCIAL TRANSACTION AND STRENGTHENING U.S. AND E.U. FERROVANADIUM MARKETS

Largo Inc. today provided an update on its previously announced iron ore calcine transaction and a market update on recent developments in the global ferrovanadium (FeV) market. All amounts are expressed are in United States dollars.

Highlights

• Iron ore calcine transaction update: The purchaser has failed to make the initial payment under the terms of the $56-million (U.S.) iron ore sale agreement and Largo will terminate the contract if payment is not received by Feb. 20, 2026, and potentially pursue alternative transactions for this iron ore calcines with other interested parties. Largo believes that is has ample cash on hand to offset this potential near term set back.
• United States FeV prices have increased approximately 30 per cent over the past month, materially outpacing European price movements.
• Structural supply constraints in the U.S. market persist, driven by limited conversion capacity and restricted access to certain alternative origins, in part due to U.S. tariffs and sanctions.
• Largo is well positioned to supply the U.S. market as a reliable, Western-aligned primary producer, subject to existing tariff constraints.

Update on iron ore calcine transaction

As previously disclosed in the company's Feb. 5, 2026, update, the initial payment under the definitive agreement announced on Jan. 20, 2026, for the sale of up to 4.5 million tonnes of iron ore calcine material has not been received. The first payment of $2.9-million (U.S.) was due by Jan. 30, 2026, but the company accepted a deferral of the payment until the week of Feb. 9. The second payment of $1.9-million (U.S.) is due by Feb. 16, 2026.

Largo today notified the counterparty of this non-compliance and provided a cure period until Feb. 20, 2026, to remedy the outstanding payment obligation. If the first payment is not received by that date, the agreement will be terminated in accordance with its terms. The company will review all legal remedies for damages resulting from the breach of contract.

No delivery of iron ore calcine material has been made under the agreement. If necessary, the company will evaluate alternative commercialization opportunities.

The company will provide further updates as appropriate.

Strong upward momentum in FeV prices

Largo has observed a rapid increase in published FeV prices across both the United States and European markets over the past month, with the U.S. market leading materially versus the European markets.

In the United States, FeV prices have risen from the mid-$13-per-pound range to approximately the mid-$17-per-pound range over the past month, representing an increase of about 30 per cent. Over the same period, European prices have risen from approximately $23.8/kilogram to $25.6/kg, an increase of around 7 to 8 per cent.

This divergence has widened materially in recent weeks. At current levels, a U.S. FeV price of approximately $17 per pound equates to about $37 to 38 per kilogram, compared with approximately $25.6 per kilogram in Western Europe, underscoring the significant premium currently observed in the U.S. market.

Structural tightness in the U.S. market

The U.S. FeV market remains structurally tight. Available supply of FeV 80 is limited, with conversion capacity representing a key constraint. Canadian conversion capacity is currently operating at or near capacity, limiting the market's ability to respond to rising demand.

Access to material from alternative origins remains constrained by trade measures and regulatory restrictions. Anti-dumping rulings affecting certain exporting jurisdictions, including China and South Africa, together with sanctions-related limitations on Russian-origin material historically processed through European intermediaries, have reduced supply flexibility into the U.S. market.

These combined factors have materially reduced supply elasticity in the U.S. market and contributed to the recent price acceleration.

Largo continues to be subject to a 50-per-cent tariff on direct Brazilian imports into the United States, applicable to both vanadium pentoxide and FeV. As a result, Largo has been supplying the North American market primarily through its Canadian conversion partner. Largo does not pay tariffs on vanadium converted into FeV in Canada as it enters into the U.S. under the USMCA agreement.

Given current market conditions, removal of tariff constraints would allow Largo, as a Western-aligned and reliable primary producer, to directly supply FeV into the U.S. market from Brazil and help address the widening supply gap.

Francesco D'Alessio, chief commercial officer of Largo, commented: "Since the beginning of the year, we have seen a clear and accelerating divergence between the North American and European FeV markets. U.S. prices have risen approximately 36 to 40 per cent year to date, moving from $13.25/lb on Jan. 1 to $18.0 to 18.5/lb currently. Over the same period, European prices have increased by about 8.4 per cent, from $23.83/kg to $25.83/kg. The U.S. market is now trading at a premium of more than 50 per cent to Europe, reflecting ongoing structural tightness, constrained conversion capacity and restricted access to alternative supply."

Mr. D'Alessio continued: "Largo is ready and fully capable of helping close this growing supply gap. However, the 50-per-cent tariff imposed on Brazilian-origin material continues to restrict direct supply of both FeV 80 to U.S. steel mills and high-purity vanadium products critical for defence applications. As a result, steel producers face constrained availability, while high-purity defence customers have been forced to absorb punitive tariffs simply to secure access to Largo's material."

Largo has the capability to supply FeV converted in Brazil, as well as high-grade vanadium material, which could meaningfully contribute to meeting U.S. steel demand. As prices continue to respond to tightening fundamentals, the company believes Largo is well positioned to support the market should those constraints be addressed.

About Largo Inc.

Largo is a globally recognized supplier of high-quality vanadium and ilmenite products, sourced from its world-class Maracas Menchen mine in Brazil. As one of the world's largest primary vanadium producers, Largo produces critical materials that empower global industries, including steel, aerospace, defence, chemical and energy storage sectors. The company is committed to operational excellence and sustainability, leveraging its vertical integration to ensure reliable supply and quality for its customers.

Largo is also strategically invested in the clean energy storage sector through its 50-per-cent ownership of Storion Energy, a joint venture with Stryten Energy focused on scalable domestic electrolyte production for utility-scale vanadium flow battery long-duration energy storage solutions in the U.S.

The company also holds a 100-per-cent interest in the Northern Dancer tungsten-molybdenum property located in the Yukon Territory, Canada, and 100-per-cent interest in the Currais Novos tungsten tailing project near Natal, Brazil. Preliminary economic assessments were completed for each asset in 2011.

Largo's common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange under the symbol LGO.

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