Business Awards 2018

6 LATIN AMERICA NEWS / Business Awards 2018 hectares and is located in the eastern Bahia State of Brazil. The mine is roughly 250 km southwest of Salvador (capital of Bahia). The Maracás Menchen Mine has excellent access by road. The town of Maracás has a population of approximately 30,000. The mine boasts one of the highest-grade vanadium resources in the world and is one of the lowest-cost producers of the material in the vanadium industry. Construction at the Maracás Menchen Mine commenced in Q2 2012 and initial production of vanadium flake commenced in Q3 2014. Largo has a take-or-pay off-take agreement with Glencore International Plc. for 100% of its vanadium material and has under two years remaining in the contract. Vanadium at the Maracás Menchen Mine is contained within a massive, titaniferous magnetite possesses very low levels of contaminants, like silica (SiO2). The entire strike length of the Maracás Menchen Mine property is rich in vanadium, hosting many deposits of vanadium- rich titaniferous magnetite mineralization particularly at the Campbell Pit and other deposits such as Gulcari B, Novo Amparo Norte and Sao Jose. These unique features make extracting and processing the vanadium into its final saleable product much easier, significantly lowers the operating costs of production. Ore from the mine is crushed, milled, and sent through a magnetic separator to produce a concentrate. This concentrate has the highest grade in the world (3,20% V2O5), and is then processed through pyrometallurgy and chemical technologies into vanadium pentoxide high purity vanadium or vanadium powder where it is then bagged or packed into barrels for sale. Largo utilizes industry proven equipment and processes to produce vanadium with new technologies and innovation to reach high standard level of process efficiency, low cost and minimum environmental impact. The Company announced an expansion plan in Q2 2018 to increase the nameplate capacity production rate at Maracás from 800 tonnes of V2O5 per month to1 ,000 tonnes, being an increase of 25%. The expansion ramp-up is expected to begin in Q3 2019 and the Company should reach the increase nameplate production rate in the same quarter. The mine is projected to produce between 10,000 and 11,000 tonnes of vanadium pentoxide in 2019. Looking back, 2018 was a transformative year for Largo Resources, as the firm achieved multiple production records as 2,595 tonnes of V2O5 in Q4 2018 that is 8% over nameplate capacity and FY 2018 production of 9,830 tonnes of V2O5. On the back of historic vanadium prices lending support to the company’s record financial performance as the third quarter 2018 cash flows before non-cash working capital items of $127.5 Million, on revenues of $149.5 Million and net income before tax of $91.7 million in Q3 2018. The firm’s workforce has been extremely dedicated and committed to the Maracás operation as evidenced by the multiple operational records achieved throughout 2018. Indeed, the secret behind its phenomenal success is his team! The engagement of Largo team is outstanding and the guarantee that the company will keep improving its operation, producing the best quality V2O5 products and delivering great results. Looking ahead, Largo will remain extremely committed to ensuring ongoing success for this dedicated and dynamic company. Seeking to build upon this impressive success, Largo Resources will continue to drive innovation within the vanadium market to ensure that it remains a key player in this vital world market. The firm’s vision is to be the lowest-cost, highest- grade vanadium producer in the world while maximizing overall shareholder value and continually maintaining the respect of its employees, communities and shareholders. This will remain an ongoing focus for the company as Largo looks towards a bright and prosperous future. ,