Largo and Stryten Energy to Form Storion Energy for the Manufacture of Vanadium Electrolyte and Battery Components for Long Duration Energy Storage

Largo Inc. ("Largo" or the "Company") (TSX: LGO) (NASDAQ: LGO) is pleased to announce the signing of definitive agreements between its subsidiary, Largo Clean Energy Corp. (“LCE”), and Stryten Critical E-Storage, LLC (“Stryten”), an affiliate of Stryten Energy LLC, to establish a joint venture in Storion Energy, LLC (“Storion”) (the “Transaction”), subject to customary closing conditions. Storion intends to become a leading manufacturer of domestically produced vanadium electrolyte and remove other barriers to entry in the flow battery manufacturing industry.

Francesco D’Alessio, Chief Commercial Officer of Largo and President of LCE, stated: “We expect the Storion partnership with Stryten Energy to be highly beneficial to Largo and its clean energy storage investment strategy. The transaction aims to maximize the value of Largo’s vanadium products, and Storion’s patented purification process, which is expected to accelerate the manufacture of vanadium electrolyte and deployment of vanadium flow battery solutions, which in turn is anticipated to increase the demand for vanadium from Largo Physical Vanadium Corp. (“LPV”), Largo and the vanadium sector as a whole.

Key Highlights

• Position Storion to become a U.S. domestic leader for vanadium electrolyte production and supply; future plans to develop vanadium flow battery components that are competitively positioned in the large and growing long-duration energy storage market
• Sharing product and industry knowledge with Stryten Energy LLC, a leading U.S.-based battery manufacturer
• Significant synergies are anticipated by leveraging complementary assets and integrating top-tier talent from Largo and Stryten
• Intended to enhance Largo’s strategic position in the rapidly expanding vanadium flow battery market, to accelerate growth and market share

Transaction Details

The key terms of the transaction are summarized below:

• Upon closing of the Transaction (“Closing”), each of LCE and Stryten will contribute certain of its vanadium flow battery-related assets and liabilities to Storion;
• Upon Closing, Stryten will pay US$1 million in cash directly to Largo and contribute to Storion over time a total of US$6 million in cash, for the purpose of funding Storion’s operations;
• Upon Closing, LCE and Stryten will each hold a 50% equity interest in Storion, with customary pre-emption rights and certain other anti-dilution protections;
• Board representation of Storion will be generally proportional to ownership, with Stryten holding one additional seat so long as LCE and Stryten hold similar ownership interests;
• At Closing, Largo will amend its Safekeeping and Supply Agreements with LPV to adjust certain commercial terms, and Largo will assign its Safekeeping Agreement to Storion. In addition, at Closing, Largo and Storion will enter into a separate supply agreement providing Storion a right of first offer, subject to certain terms and conditions, to purchase vanadium products.

Gallatin Capital LLC acted as financial advisor to Largo in connection with the Transaction, and Linklaters LLP acted as legal counsel.

About Storion Energy

Storion Energy intends to bring energy resilience and security to the U.S. by removing the barrier to entry for battery manufacturers to domestically sourced, price competitive electrolyte used in vanadium redox flow batteries (VRFB) for long-duration energy storage (LDES). Storion will have locations in Wilmington, Massachusetts and Alpharetta, Georgia, Storion will be a joint venture between a Stryten Energy affiliate and Largo Clean Energy Corp., a subsidiary of Largo Inc., one of the world’s largest and highest quality vanadium suppliers, that is expected to support scalable domestic electrolyte production to establish a fully integrated vertical supply chain for utility-scale VRFB LDES solutions. VRFB technology is a safe and reliable option to provide long-duration energy storage greater than four hours to help ensure grid stability and facilitate increased utilization of renewables for businesses and consumers.

Stryten Energy | www.stryten.com

Largo Physical Vanadium | www.lpvanadium.com

Largo | www.largoinc.com