Largo Signs Definitive Agreement for US$56 Million Sale of Iron Ore Calcine as Previously Announced

On January 20, 2026, Largo Inc. signed a definitive agreement to sell its iron ore calcine stockpile, a byproduct of its operations, for total expected proceeds exceeding US$56 million. This confirms the binding term sheet previously announced on January 5, 2026. The deal is structured as a multi-year Ex Works contract. Crucially, the payment schedule provides immediate liquidity: US$2.9 million is due by January 30, 2026, followed by US$1.9 million on February 16, 2026. Thereafter, monthly payments of US$1.9 million are expected to commence in April 2026. This monetizes a waste stream that previously incurred management costs.

This development is Material - Positive and serves as a critical stabilizer for the company. * Liquidity Crisis Mitigation: As of Q3 2025, Largo had only ~$5.6M in cash against significant debt obligations and working capital deficits. The immediate influx of ~$4.8M within the next 30 days, followed by a ~$22.8M annualized run rate from this byproduct sales stream, significantly reduces the immediate insolvency risk that plagued the company in late 2025. * Margin Expansion: Monetizing a waste product effectively acts as a cost credit. With vanadium prices depressed and 50% US tariffs hurting margins, this non-dilutive cash flow lowers the effective cost of production, validating management's "turnaround" strategy focused on byproducts (Ilmenite and now Calcine). * Reduced Reliance on Dilution: While an ATM was established in Jan 2026, this reliable cash flow reduces the necessity to aggressively hit the bid on the ATM for daily operations, potentially protecting the stock price from further erosion.

Largo Inc. is a strategic minerals company focused on vanadium and ilmenite. * Flagship Asset: The Maracás Menchen Mine in Bahia, Brazil. It is a high-grade vanadium mine. * Products: Vanadium Pentoxide (V2O5), Ferrovanadium, and recently Ilmenite (Titanium) and Iron Ore Calcine byproducts. * Clean Energy: Largo also operates Largo Clean Energy (now part of the Storion Energy JV) focused on Vanadium Redox Flow Batteries (VRFB). * Recent Shift: The company is pivoting from a pure vanadium play to a multi-element producer (Vanadium, Titanium, Iron, potentially Copper) to survive low commodity prices.