Itafos Continues with Outstanding Operational Performance, Provides Q4 2024 Operational Update

ITAFOS_Q4_2024_ER_2024

Production_2025 Guidance_vFinal.docx

TSX-V: IFOS

News Release

ITAFOS CONTINUES WITH OUTSTANDING OPERATIONAL PERFORMANCE, PROVIDES Q4 2024 OPERATIONAL UPDATE

HOUSTON, TX – February 3, 2024 – Itafos Inc. (TSX-V: IFOS) (the “Company”) today announces its preliminary, unaudited Q4 2024

operational highlights and guidance for 2025.

CEO Commentary

“We are pleased to report a continuation of our outstanding operational performance in the fourth quarter of 2024. During the quarter and

for the full year, the Company set a number of production records at Conda, our flagship asset. At Conda, we achieved the best-ever

monthly and quarterly front-end production results during the year while also producing the most granular tonnes and sulfuric acid in the

past 25 years. Total production in 2024 exceeded the levels achieved in 2023 on a P 2O5 basis, despite a large-scale planned plant

turnaround mid-year which resulted in an additional 14 days of incremental planned maintenance year-over-year. In addition to the

outstanding operational efficiency, the Company achieved its operational objectives whilst maintaining an exceptional safety record. For

2024, the Company recorded a TRIFR of 0.89 continuing its outstanding performance in this area” said David Delaney, Chief Executive

Officer of the Company.

“At Arraias, sulfuric acid production increased in 2024 by 26.6% as compared to 2023 as demand increased from both external customers

and internal processes. Production of our newly introduced dry products more than tripled versus a year ago as we successfully restarted

and scaled up operations of the lite beneficiation circuit and acidulation plant.”

“Looking ahead to 2025, we expect that the positive operating momentum we have achieved over the past four years will continue. The

first stages of our mine-life extension to support the Conda operations are off to a successful start. We have begun mining operations at

North Dry Ridge, with the first ore shipments to the Conda plant expected in the second half of this year.”

“At Arraias, in 2025 we plan on producing a granulated dry fertilizer product in Brazil by utilizing our existing infrastructure, with minor

plant upgrades and circuit restarts, which we expect will increase margins and help the facility progress towards its goal to produce single

superphosphate (“SSP”) in support of local demand in the coming years. These products and process upgrades have been funded

through internally generated operating cash flows and we plan to continue funding these upgrades in this manner.”

Preliminary Unaudited Operational Highlights

Conda

For the three months and years ended December 31, 2024 and 2023 Conda had preliminary operational highlights as follows:

For the three months ended December 31, For the year ended December 31,

(Unaudited) 2024 2023 2024 2023

Production volumes (tonnes P2O5) 97,307 95,719 349,396 349,030

MAP sales volumes (tonnes) 99,845 84,289 371,412 364,006

MAP revenues (in thousands of US Dollar) $ 71,942 $ 49,955 $ 258,640 $ 231,483

MAP realized price ($/tonne)1 $ 721 $ 593 $ 696 $ 636

In Q4 2024, Conda:

 Produced 97,307 tonnes P 2O5 compared to 95,719 tonnes P2O5 in Q4 2023 driven by production efficiencies resulting from the

successful large scope turnaround maintenance completed in Q2 2024;

 Monoammonium phosphate (“MAP”) realized price 1 averaged $721/t in Q4 2024 compared to $593/t in Q4 2023, up 22% year-

over-year. The increase was driven by our new MAP Offtake Agreement with a key customer that transitioned from a

diammonium phosphate (“DAP”) New Orleans, Louisiana ("NOLA”) contract reference price to a MAP NOLA contract reference

price coupled with higher underlying prices and a higher premium under the new MAP Offtake Agreement; and

 Q4 2024 set a record for the best front-end production in a quarter, with December also achieving best-ever monthly front-end

production.

1 This is a non-IFRS measure. For additional information, see “Non-IFRS Financial Measures” below.

ITAFOS_Q4_2024_ER_2024

Production_2025 Guidance_vFinal.docx

In FY 2024, Conda:

 Produced 349,396 tonnes P 2O5 compared to 349,030 tonnes P2O5 in FY 2023 despite an additional 14 days of planned downtime

in 2024 due to the large scope turnaround maintenance. The success of the turnaround maintenance drove higher recoveries,

reduced downtime, and correspondingly higher throughput;

 MAP realized price averaged $696/t in 2024 compared to $636/t in 2023, up 10% year-over-year. The increase was driven by

our new MAP Offtake Agreement with a key customer that transitioned from a diammonium phosphate DAP NOLA contract

reference price to a MAP NOLA contract reference price coupled with higher underlying prices and a higher premium under the

new MAP Offtake Agreement; and

 Achieved several notable production records, including the best granular production year, best sulfuric acid production year,

and multiple best-ever months in granular and sulfuric acid production throughout 2024.

Arraias

For the three months and years ended December 31, 2024 and 2023 Arraias had preliminary production volumes as follows:

For the three months ended December 31, For the year ended December 31,

(Unaudited) 2024 2023 2024 2023

Sulfuric acid (tonnes) 25,267 34,087 112,785 89,075

Production volumes (tonnes P2O5) 1,635 643 18,147 5,196

In Q4 2024, Arraias:

 Produced 25,267 tonnes of sulfuric acid compared to 34,087 tonnes in Q4 2023, with the decrease explained by additional plant

maintenance during Q4 2024 and lower customer demand compared to the previous year; and

 Produced 1,635 tonnes P 2O5 of Direct Application Phosphate Rock (“DAPR”) and Partially Acidulated Phosphate Rock (“PAPR”)

compared to 643 tonnes P 2O5 in Q4 2023, with the increase due to the full quarter of DAPR and PAPR production and sales

following the Fertilizer Restart Program.

In FY 2024, Arraias:

 Produced 112,785 tonnes of sulfuric acid compared to 89,075 tonnes in FY 2023 with the increase due to higher customer

demand and acid consumption with the start of PAPR production; and

 Produced 18,147 tonnes P 2O5 of DAPR and PAPR compared to 5,196 tonnes P2O5 in FY 2023, with the increase due to DAPR

and PAPR production and sales following the Fertilizer Restart Program.

All operational and financial information included in this press release is preliminary and is inherently uncertain due to a number of factors,

and remains subject to review by the Company’s management, audit committee and board of directors and the completion of regular

financial closing and review procedures and audit procedures for Q4 FY2024 and fiscal 2024. The preliminary unaudited figures disclosed

herein should not be viewed as a substitute for audited financial statements prepared in accordance with generally accepted accounting

principles. Additional adjustments to the preliminary unaudited figures presented above may be identified, and final results for the relevant

fiscal periods may differ materially from these preliminary unaudited figures and will not be finalized until after the Company completes

its normal year-end accounting procedures, including execution of internal controls over financial reporting. These preliminary unaudited

figures are intended to provide information about management’s current expectations regarding certain aspects of the Company’s

financial performance. Reliance on the information presented herein may not be appropriate for other purposes.

FY 2025 Market and Financial Outlook

Market Outlook

Phosphate pricing decreased seasonally in Q4 2024 following a rebound that began with an early summer reset. Domestic MAP prices

have moved off highs achieved during the second half of the year, while DAP prices have remained relatively firm, bringing the products

close to parity. Global phosphate prices have remained consistent since the middle of 2024.

Crop fundamentals have improved over the past quarter. The USDA reduced its estimates for ending stocks for corn and soybeans based

on lower yields and total production. Global inventories of grains and oilseeds outside of China are expected to decrease over the course

of the current crop year, resulting in a declining stock to use ratio that is projected to fall near a 20-year low.

Moving forward, the Company expects relatively flat phosphate pricing through 2025, with risk to the upside supported by the following

factors:

 low inventory levels in the North American market and continued strength in global demand;

 ongoing export restrictions from China;

 improving affordability metrics driven by higher grain and oilseed prices; and

 no significant adjustments in global trade flows, particularly to the North American market.

ITAFOS_Q4_2024_ER_2024

Production_2025 Guidance_vFinal.docx

Financial Outlook

The Company’s guidance for 2025 is as follows:23

(Unaudited in millions of US Dollars Projected Unaudited

except as otherwise noted) FY 2025 FY 2024

Sales Volumes (thousands of tonnes P2O5)2 340-360 345

Corporate selling, general and administrative expenses3 $17-20 $17

Maintenance capex3 $13-23 $27

Growth capex3 $63-83 $44

Environmental and asset retirement obligations payments $5-7 $4

About Itafos

Itafos is a phosphate and specialty fertilizer company with businesses and projects spanning three continents:

 Conda – a vertically integrated phosphate fertilizer business located in Idaho, US, with the following production capacity:

- approximately 550kt per year of MAP, MAP with micronutrients (“MAP+”), superphosphoric acid (“SPA”), merchant grade

phosphoric acid (“MGA”) and ammonium polyphosphate (“APP”)

- approximately 27kt per year of hydrofluorosilicic acid (“HFSA”)

 Arraias – a vertically integrated phosphate fertilizer business located in Tocantins, Brazil, with the following production capacity:

 approximately 500kt per year of single superphosphate (“SSP”) and SSP with micronutrients (“SSP+”)

- 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

 Santana – a vertically integrated high-grade phosphate mine and fertilizer plant project located in Pará, Brazil

 Araxá – a vertically integrated rare earth elements and niobium mine and extraction plant project located in Minas Gerais, Brazil.

Itafos is a Delaware corporation headquartered in Houston, Texas, with shares trading on the TSX Venture Exchange under the ticker

“IFOS”. The Company’s principal shareholder is CL Fertilizers Holding LLC (“CLF”), 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.

2Sales volumes reflect quantity in P2O5 of Conda sales projections.

3Corporate selling, general and administrative expenses, maintenance capex, and growth capex are each a non-IFRS financial measure. For additional

information on non-IFRS measures, see “Non-IFRS Financial Measures” below.

ITAFOS_Q4_2024_ER_2024

Production_2025 Guidance_vFinal.docx

Forward-Looking Information

Certain information contained in this news release constitutes forward-looking information, including statements with respect to: the

Company’s planned operations and strategies; the timing for the first ore shipments to the Conda plant; our expectations at Arraias

regarding producing granulated dry fertilizer; 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. Statements 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 assumptions in respect of the Company’s financial and business outlook 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.

The forward-looking information contained in this news release is based on the opinions, assumptions and estimates of management 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 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 changes, including inflation and foreign exchange rates; the actions of the Company’s competitors and

counterparties; financing, 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; loss of land title and access rights; changes to insurance 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 foreign jurisdictions; the risks posed by a controlling shareholder and other conflicts of interest; risks related to reputational damage,

the risk associated with epidemics, pandemics and public health; the 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 information, there may be other factors that cause actions, events or results not to be as

anticipated, estimated or intended. Additional risks and uncertainties affecting the forward-looking information contained in this 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-looking statements if circumstances 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.

This news release contains future-oriented financial information and financial outlook information (together, “FOFI”) about the Company’s

prospective results of operations. FOFI is subject to the same assumptions, risk factors, limitations and qualifications as set forth in the

above paragraph. The Company has included the FOFI to provide an outlook of management’s expectations regarding anticipated

activities and results, and such information may not be appropriate for other purposes. The Company and management believe that the

FOFI has been prepared on a reasonable basis, reflecting management’s reasonable estimates and judgements; however, actual results

of operations and the resulting financial results may vary from the amounts set forth herein. Any financial outlook information speaks only

as of the date on which it is made and the Company undertakes no obligation to publicly update or revise any financial outlook information

except as required by applicable securities laws.

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.

For further information, please contact:

Matthew O’Neill

Executive Vice President & Chief Financial Officer

[email protected]

713-242-8446

For Media and Investor Relations:

irlabs

Alyssa Barry

Principal and Co-Founder

[email protected]

1-833-947-5227

ITAFOS_Q4_2024_ER_2024

Production_2025 Guidance_vFinal.docx

Non-IFRS Financial Measures

This press release contains both IFRS and certain non-IFRS measures that management considers to evaluate the Company’s

operational and financial performance. Non-IFRS measures are a numerical measure of a company’s performance, that either include or

exclude amounts that are not normally included or excluded from the most directly comparable IFRS measures. Management believes

that the non-IFRS measures provide useful supplemental information to investors, analysts, lenders and others. In evaluating non-IFRS

measures, investors, analysts, lenders and others should consider that non-IFRS measures do not have any standardized meaning under

IFRS and that the methodology applied by the Company in calculating such non-IFRS measures may differ among companies and

analysts. Non-IFRS measures should not be considered as a substitute for, nor superior to, measures of financial performance prepared

in accordance with IFRS.

Definitions and reconciliations of non-IFRS measures to the most directly comparable IFRS measures can be found in the Company’s

Management’s Discussion & Analysis for the three and nine months ended September 30, 2024 and 2023 under Section 8 – Non-IFRS

Measures which is available on SEDAR+ at www.sedarplus.ca.

DEFINITIONS

The Company defines its non-IFRS measures as follows:

Non-IFRS

measure

Definition Most directly comparable IFRS

measure

Why the Company uses the

measure

Maintenance

capex

Portion of total capex relating to the

maintenance of ongoing operations

Additions to property, plant and

equipment and mineral properties

Maintenance capex is a valuable

indicator of the Company’s

required capital expenditures to

sustain operations at existing

levels

Growth capex Portion of total capex relating to the

development of growth opportunities

Additions to property, plant and

equipment and mineral properties

Growth capex is a valuable

indicator of the Company’s capital

expenditures related to growth

opportunities.

Realized price Revenues divided by sales volumes Revenues The Company uses realized price

to assess operational

performance

Corporate selling,

general and

administrative

expenses

Corporate selling, general and

administrative less share-based

payment expense.

Selling, general and administrative

expenses

The Company uses corporate

selling, general and

administrative expenses to

assess corporate performance.

EXPECTED RECONCILIATION OF TOTAL CAPEX

For the year ended December 31, 2024

For the year ended December 31, 2024, the Company had expected capex by segment as follows:

(unaudited in thousands of US Dollars) Conda Arraias

Development

and

exploration Corporate Total

Additions to property, plant and equipment $ 31,871 $ 3,686 $ (2 ) $ 10 $ 35,565

Additions to mineral properties 62,279 — 500 — 62,779

Additions to asset retirement obligations (24,123 ) 1,289 — — (22,834 )

Additions to right-of-use assets — (158 ) 2 — (156 )

Capitalized interest in mineral properties (4,122 ) — — — (4,122 )

Total capex $ 65,905 $ 4,817 $ 500 $ 10 $ 71,232

Accrued capex (3,752 ) — — — (3,752 )

Total cash capex $ 62,153 $ 4,817 $ 500 $ 10 $ 67,480

Maintenance capex $ 23,765 $ 3,219 $ — $ 10 $ 26,994

Accrued maintenance capex (110 ) — — — (110 )

Cash maintenance capex $ 23,655 $ 3,219 $ — $ 10 $ 26,884

Growth capex $ 42,140 $ 1,598 $ 500 $ — $ 44,238

Accrued growth capex (3,642 ) — — — (3,642 )

Cash growth capex $ 38,498 $ 1,598 $ 500 $ — $ 40,596

ITAFOS_Q4_2024_ER_2024

Production_2025 Guidance_vFinal.docx

EXPECTED RECONCILIATION OF CORPORATE SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES

For the three and twelve months ended December 31, 2024 and 2023, the Company had expected corporate selling, general and

administrative expenses as follows:

For the three months ended December 31, For the year ended December 31,

(unaudited in thousands of US Dollars) 2024 2023 2024 2023

Selling, general and administrative expenses $ 4,605 $ 4,436 $ 19,228 $ 21,037

Share-based payment (recovery) expense (640 ) (492 ) (2,231 ) (3,317 )

Corporate selling, general and administrative

expenses

$ 3,965 $ 3,944 $ 16,997 $ 17,720