Itafos and RIO Tinto Amend Sulfuric Acid Contract to Further Support American Farming
1
TSX-V: IFOS, OTCQX: ITFS
News Release
ITAFOS AND RIO TINTO AMEND SULFURIC ACID CONTRACT TO FURTHER SUPPORT AMERICAN FARMING
HOUSTON, TX – May 14, 2026 – Itafos Inc. (TSX-V: IFOS) (OTCQX: ITFS) (the “Company” or “Itafos”) is pleased to announce that today
it has entered into an amendment to its sulfuric acid supply contract (the “Sulfuric Acid Supply Agreement”) with Rio Tinto, continuing its
long-term relationship with its U.S. copper producer Kennecott, a key supplier of a primary raw material required to produce its phosphate
products manufactured at the Company’s Conda, Idaho facility.
Pursuant to the amended Sulfuric Acid Supply Agreement, Itafos will continue to purchase sulfuric acid from the Kennecott mine in Utah.
Under the amended agreement, the reference index price will change from the Vancouver Index to the Tampa Index from May 1, 2026
through December 31, 2029. To promote long- term value for both U.S. farming and mining industries, the parties have agreed to a n
adjusted sulfuric acid price until December 31, 2029 to help address significant price volatility of sulfur over the last four years. Additional
modifications to the Sulfuric Acid Supply Agreement around delivered volumes have b een negotiated to provide greater flexibilit y for
incremental supply (subject to availability). Conda has historically sourced approximately 60% of its sulfuric acid requirements from Rio
Tinto, and it is expected that it will purchase similar volumes under the amended Sulfuric Acid Supply Agreement. After Decemb er 31,
2029, it is expected that Itafos will continue to purchase sulfuric acid from Rio Tinto.
Chief Executive Officer of Itafos, David Delaney commented, “We are pleased to announce this amendment and thank the Rio Tinto team
for further strengthening the relationship. The amended contract will allow us to maintain supply of a vital input to our production process
while decreasing our exposure to volatility in commodity prices . Rio Tinto has been a reliable supplier to the Conda plant for over three
decades, and we are pleased to continue this relationship on terms that are mutually beneficial to both parties.”
“This amended agreement reflects the strength of our long-standing partnership and our shared commitment to reliable supply for the
U.S. agriculture sector,” said Rio Tinto Kennecott Managing Director Nate Foster. “T hrough close collaboration, we are advancin g
solutions that strengthen domestic resili ency for American farmers while supporting the broader farming community to help keep crop
yields strong and supply as consistent as possible.”
About Itafos
The Company is a phosphate and specialty fertilizer company with businesses and projects spanning three continents:
Conda – a vertically integrated phosphate fertilizer business loca ted in Idaho, US with production capacity as follows:
– approximately 550kt per year of MAP, MAP with micronutrients (“MAP+”), superphosphoric acid (“SPA”), and merchant
grade phosphoric acid (“MGA”); and
– approximately 27kt per year of hydrofluorosilicic acid (“HFSA”);
Arraias – a vertically integrated phosphate fertilizer busines s located in Tocantins, Brazil with the following production
targets (following the proposed restart of the beneficiation circuit):
– approximately 275kt per year of SSP, PAPR and DAPR;
– approximately 170kt per year of SSP, 60kt per year of PAPR and 45kt per year of DAPR;
– approximately 40kt per year of excess sulfuric acid (220kt per year gross sulfuric acid production capacity);
Farim – a high-grade phosphate mine project located in Farim, Guinea-Bissau; and
Santana – a vertically integrated hi gh-grade phosphate mine and fertilizer plant project located in Pará, Brazil.
The Company is a Delaware corporation with operations in the United States, Brazil and Guinea-Biss au. The Company’s shares trade
on the TSX-V under the ticker “IFOS”. The Company’s shares also trade in the US on the OTCQX® Best Market (“OTCQX”) under the
ticker symbol “ITFS”. The Company’s principal shareholder is CLF, which is an affiliate of global private investment firm Castlelake, L.P.
For more information, or to join the Company’s mailing list, please visit www.itafos.com.
Forward-Looking Information
Certain information contained in this news release constitutes fo rward-looking information, includi ng statements with respect t o: the
amendment to the Sulfuric Acid Supply Agreement; the Sulfuric Acid Supply Agreement; sulfur prices; import and export tariffs; the costs
and availability of raw materials to produce fertilizer products;; and economic and market trends with respect to the global agriculture and
phosphate fertilizer markets. All information other than information of historical fact is forward-looking information. Stateme nts that
address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future include, but
are not limited to, statements regarding estimates and/or assump tions in respect of the Company’s financial and business outloo k are
forward-looking information. The use of any of the words “intend”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”,
“project”, “should”, “would”, “believe”, “predict” and “potential” and similar expressions are intended to identify forward-looking information.
2
The forward-looking information contained in this news releas e is based on the opinions, assumptions and estimates of managemen t,
some of which are set out herein, which management believes are reasonable as at the date the statements are made. Those opinions,
assumptions and estimates are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could
cause actual events or results to differ materially from those projected in the forward-looking information. These include the Company’s
expectations and assumptions with respect to the following: commodity and raw material prices; operating results; safety risks; changes
to the Company’s mineral reserves and resources; risk that timing of expected permitting will not be met; changes to mine development
and completion; foreign operations risks; changes to regulation; environmental risks; the impact of weather and climate change; risks
related to asset retirement obligations, general economic chan ges, including inflation and foreign exchange rates; the actions of the
Company’s competitors and counterparties; fi nancing, liquidity, credit and capital risks; the loss of key personnel; impairment risks;
cybersecurity risks; risks relating to transportation and infrastructure; changes to equipment and suppliers; concentration risks, adverse
litigation; changes to permitting and licensing; geo-political risks; the Company’s expectations around geopolitical developments and the
impact of such developments on global supply chains and commodity prices; loss of land title and access rights; changes to insu rance
and uninsured risks; the potential for malicious acts; market and stock price volatility ; changes to technology, innovation or artificial
intelligence; changes to tax laws; the risk of operating in fo reign jurisdictions; the risks posed by a controlling shareholder and other
conflicts of interest; risks related to reputational damage, the risk associated wit h epidemics, pandemics and public health; t he risks
associated with environmental justice; and any risks related to internal controls over financial reporting risks. Readers are cautioned that
the foregoing list of risks, uncertainties and assumptions is not exhaustive.
Although the Company has attempted to identify crucial factors that could cause actual actions, events or results to differ materially from
those described in the forward-looking info rmation, there may be other fa ctors that cause actions, events or results not to be as
anticipated, estimated or intended. Additi onal risks and uncertainties affecting the forw ard-looking information contained in t his news
release are described in greater detail in the Company’s Annual Information Form and current Management’s Discussion and Analysis
available under the Company’s profile on SEDAR+ at www.sedarplus.ca and on the Company’s website at www.itafos.com. There can
be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from
those anticipated in such information. The reader is cautioned not to place undue reliance on forward-looking information. The Company
undertakes no obligation to update forward-l ooking statements if circumst ances or management’s estimates, assumptions or opinions
should change, except as required by applicable securities law. The forward-looking information included in this news release is expressly
qualified by this cautionary statement and is made as of the date of this news release.
NEITHER THE TSX-V NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX-
V) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
Contacts:
For Investor Relations:
Matthew O’Neill
Executive Vice President & Chief Financial Officer
713-242-8446
For Media:
Alliance Advisors IR
Fatema Bhabrawala
Director, Media Relations
647-620-5002
************