Itafos Reports Q2 2026 Financial Results and Operational Highlights

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TSX-V: IFOS, OTCQX: ITFS

News Release

ITAFOS REPORTS Q2 2026 FINANCIAL RESULTS AND OPERATIONAL HIGHLIGHTS

HOUSTON, TX – August 5, 2026 – Itafos Inc. (TSX-V: IFOS) (OTCQX: ITFS) (the “Company”) today reported its Q2 2026 financial

results and provided a corporate update. The Company’s financial statements and management’s discussion and analysis for the three

and six months ended June 30, 2026 are available under the Company’s profile at www.sedarplus.ca and on the Company’s website at

www.itafos.com. All figures are in thousands of US Dollars except as otherwise noted. A recorded webcast of management’s commentary

reviewing the Q2 2026 financial results and an update on the busine ss will be available on the Company’s website on Friday, August 7,

2026 (see details below).

CEO Commentary

Chief Executive Officer David Delaney commented, “we are pleased to report another quarter of c ontinued execution for the Company,

especially given the unprecedented challenges facing the global phosphate industry. The Company recorded consolidated revenues for

the quarter of $144.0 million, an increase of 14% compared to the same period last year, driven by higher product prices and hi gher

fertilizer and sulfuric acid sales volumes in Brazil. Our safety performance during the quarter was indicative of our high standards and the

Company’s Total Recordable Incident Frequency Rate declined to 0.53 as of the end of the quarter.

Our solid relationships with the long-term suppliers of our primary raw materials allowed the Company to continue to maximize output at

both Conda and Arraias in an economic environm ent that has seen a series of shutdowns or production deferrals from domestic and

global producers of phosphate. Conda produc ed fertilizer volumes that were comparable with year-ago levels while completing its

scheduled turnaround during June and Arraias increased fertilizer production by 62% on a P2O5 basis compared to the same period last

year. I am proud that our team was able to execute so well and supply farmers in the United States, Canada, and Brazil with these critical

crop inputs at a time when the industry was experiencing unprecedented turmoil.

Global supply chains for phosphates, sulfur, ammonia, and other co mmodities continue to be disrupted by the ongoing conflict in Iran,

and operating margins across the industry have suffered. Despite this, our net leverage ratio remains at 0.3 times trailing 12 months

Adjusted EBITDA 1 and we maintain ample liquidity to maintain industry- leading operating rates and to execute our planned growth

projects.

It is unclear when tensions will fall in the Middle East, what the ‘new normal’ will look like, or how long it may take for that to be achieved.

That said, the Company continues to excel at executing our day-to-day operations and is fortunate to have well established relationships

with key customers and suppliers that allow for us to efficiently run our businesses and deliver vital products to the domestic and global

agriculture industry. I remain confident of the long-term opportunities in our industry and in the ability of the Company to co ntinue to

prosper as we move forward.”

Q2 2026 Financial Highlights

For Q2 2026, the Company’s financial highlights were as follows:

 Revenues of $144.0 million in Q2 2026 compared to $126.8 million in Q2 2025;

 Adjusted EBITDA 1 of $17.8 million in Q2 2026 compared to $31.8 million in Q2 2025;

 Net income (loss) of $(5.6) million in Q2 2026 compared to $24.8 million in Q2 2025;

 Basic earnings (loss) 1 of C$(0.04)/share in Q2 2026 compared to C$0.18/share in Q2 2025; and

 Free cash flow 1 of $10.7 million in Q2 2026 compared to $10.8 million in Q2 2025.

The decrease in the Company’s Q2 2026 Adjusted EBITDA compared to Q1 2025 was primarily due to materially higher sulfur and

sulfuric acid costs at Conda and Arraias, which were partially offset by higher revenues.

The decrease in the Company’s Q2 2026 net income compared to Q2 2025 was primarily due to lower gross margin coupled with the fair

value gain on investments recorded in Q2 2025 and higher finance expense, which were partially offset by lower income tax expense in

Q2 2026.

1Adjusted EBITDA, trailing 12 months Adjusted EBITDA, basic earnings (loss) (C$/share), and free cash flow are each a non-IFRS financial measure.

For additional information on non-IFRS and other financial measures, see “Non-IFRS financial measures” below. International Financial Reporting

Standards (“IFRS”).

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The Company’s total capex2 spend in Q2 2026 was $30.6 million compared to $28.8 million in Q2 2025 with the increase due to a planned

sulfuric acid plant turnaround and preventive maintenance activities related to the acidulation and granulation plants at Arraias and MgO

reduction development activities at Conda.

H1 2026 Financial Highlights

For H1 2026, the Company’s financial highlights were as follows:

 Revenues of $286.2 million in H1 2026 compared to $262.5 million in H1 2025;

 Adjusted EBITDA 2 of $36.2 million in H1 2026 compared to $71.1 million in H1 2025;

 Net income (loss) of $(3.9) million in H1 2026 compared to $60.7 million in H1 2025;

 Basic earnings (loss) 2 of C$(0.03)/share in H1 2026 compared to C$0.44/share in H1 2025; and

 Free cash flow 2 of $(6.1) million in H1 2026 compared to $42.1 million in H1 2025.

The decrease in the Company’s H1 2026 Adjusted EBITDA compared to H1 2025 was primarily due to higher sulfur and sulfuric acid

costs at Conda and Arraias and higher selling, general, and administrative expenses.

The decrease in the Company’s H1 2026 net income compared to H1 2025 was primarily due to lower gross margin, the gain on the sale

of the Araxá project recorded in H1 2025, the fair value gain on investments recorded in H1 2025 and higher finance expense, wh ich

were partially offset by lower income tax expense

The Company’s total capex spend in H1 2026 was $43.2 million co mpared to $38.7 million in H1 2025 with the increase due to the

planned sulfuric acid plant turnaround and preventive maintenance activities related to the acidulation and granulation plants at Arraias

and MgO reduction development activities at Conda.

As of June 30, 2026, the Company’s financial highlights were as follows:

 Trailing 12 months Adjusted EBITDA 2 of $123.8 million;

 Net debt 2 of $31.2 million; and

 Net leverage ratio 2 of 0.3x.

FY 2026 Market and Financial Outlook

Market Outlook

Phosphate fertilizer prices increased during Q2 2026 primarily driven by supply constraints stemming from the ongoing hostilities in Iran

and the broader Middle East and the associated disruption in global trade resulting from the shutdown of the Strait of Hormuz. MAP

NOLA prices exceeded $800 per short ton during Q2 2026, slightly above the highest levels seen during 2025 that had been influenced

primarily by the U.S. import tariff policies.

Raw material prices have increased at materially higher rates and remained at higher levels relative to finished product prices, negatively

impacting operating margins across the industry . Spot sulfur prices in Vancouver, Cana da were approximately $500 per ton before the

start of the conflict in Iran a nd the Middle East, having increased to levels above those seen during the Russia/Ukraine war in 2022 on

increased demand in Asia for metals processing. Following the closure of the Strait of Hormuz, where approximately 45% of global supply

passes, prices spiked above $1,000 per ton during Q2 2026 and have remained at these peak levels. Tampa, Florida Ammonia prices

were approximately $625 per ton prior to t he start of the conflict, up about 25% versus the prior year and then rose to $775 - $825 per

ton during Q2 2026.

Higher input prices and the lack of availability of raw materials have driven a number of production curtailments, even among the largest

phosphate producers in the world. Accordi ng to public reports, OCP pulled forward main tenance operations at its facilities duri ng the

quarter and indications were that production rates were as low as 50% of operating capacity exit ing Q2 2026. The Mosaic Company

announced temporary curtailments of production at its Brazil and Louisiana facilities during the quarter and indicated that there would be

further cutbacks in rate at sites in Florida, Louisiana and Brazil due to high sulfur prices.

China had announced that it will restrict phosphate fertilizer exports throu gh August 2026. Total exports on a P 2O5 basis were down

approximately 54% through May 2026 on a year-over-year basis. T he consensus among industry analysts is moving toward an

expectation that China will extend the phosphate export ban throu gh the end of 2026 which, if r ealized, will further negatively impact

global supply.

The Trump administration issued an executiv e order in late Q2 2026 temporarily suspending the countervailing duties (“CVD”) on

phosphate imports from Morocco that have been in place since 2021. The latest CVD rates were 16.8%. Subsequently during the ongoing

sunset review, the Department of Commerce announced a preliminary determination that a revocation of the CVD would likely lead to a

recurrence of a subsidy and proposed an updated rate of 20.04% on phosphate imports from Morocco. In addition, the Trump

2Total capex, adjusted EBITDA, basic earnings (loss) (C$/share), free cash flow, trailing 12 months Adjusted EBITDA, net debt, and net leverage ratio

are each a non-IFRS financial measure. For additional information on non-IFRS and other financial measures, see “Non-IFRS financial measures”

below.

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administration imposed tariffs of 10 to 12.5 percent on goods from over 80 countries u nder Section 301 of the Trade Act of 1974 to

replace duties that had been struck down by the Supreme Court but provided broad exemptions for various products and raw materials.

Netbacks to producers for phosphate exports to the US are more than $100 per ton less than many alternative international markets, so

it is unclear how much, if any, this change in policy will impact phosphate supplies in the US.

Multiple ceasefires between US and Iranian forces have been announced since early Q2 2026, with varying degrees of temporary

success. Following a ceasefire announced in June 2026, certain cargoes of phosphate and sulfur that had been bottlenecked in the Strait

of Hormuz were able to make passage to international ports. Howeve r, the flow of trade remained well below historical levels, a nd the

ceasefire was subsequently abandoned in July 2026 in response to attacks on vessels transiting the Strait of Hormuz.

The Company expects that supply chains will be disrupted, global supplies of fertilizers and associated raw material inputs will be limited,

and commodity prices will be elevated in 2026 and potentially beyond.

Fertilizer affordability indexes continue to point towards lower demand from domestic farmers based on the relative cost of inputs versus

prices received for crops. However, that ratio has begun to impr ove with corn, wheat and soybean prices increasing at the end o f Q2

2026. In addition, an incremental $12 billio n in farmer assistance spending passed the US House of Representatives in July 2026 ,

potentially helping farmer income through the end of the year.

Looking ahead, the Company anticipates phosphate prices to remain at elevated levels through the remainder of 2026 primarily due to:

 continued supply chain and production issues related to the hostilities in Iran and other parts of the Middle East;

 ongoing phosphate fertilizer expor t restrictions from China; and

 phosphate supply curtailments from major global suppliers due to elevated cost and lack of supply of raw materials.

Financial Outlook

The Company revised its guidance for 2026 as follows from that previously announced in the Company news release dated February 11,

2026:

(in millions of US Dollars Projected

except as otherwise noted) FY 2026

Sales Volumes (thousands of tonnes P2O5) 3 340-355

Corporate selling, general and administrative expenses4 $16-20

Maintenance capex4 $23-28

Growth capex4 $63-83

Environmental and asset retirement obligations payments $25-30

The Company’s revised guidance for FY 2026 is explained as follows:

 increased the low end of sales volumes from 335 thousand tonnes P 2O5 to 340 thousand tonnes P 2O5 based on actual sales

through the first half of the year; and

 lowered the high end of maintenance capex from $33 million to $28 million as we prudently review cash expenditures given the

current market dynamics.

Q2 and H1 2026 Market Highlights

MAP New Orleans (“NOLA”) prices averaged $778/st in Q2 2026 compared to $690/st in Q2 2025, up 13% year-over-year, and averaged

$721/st in H1 2026 compared to $643/st in H1 2025, up 12% year-over-year.

Specific factors driving the year-over-year increase in MAP NOLA prices were as follows:

 global supply chain disruptions affecting fertilizers and associated raw materials resulting from the conflict in Iran;

 significantly reduced Chinese exports of Diammonium Ph osphate (“DAP”), MAP and Nitrogen, Phosphorus, Potassium (“NPK”)

fertilizers due to expanded government-induced export restrictions;

 global phosphate production curtailments , particularly notable in Morrocco, the US and Russia, due to high priced or scarce raw

sulfur inputs and the ongoing conflicts in Iran and Ukraine; and

 moderately stronger global demand, particularly from Africa and India, and decreased US retail demand due to the relative price

of fertilizer inputs costs versus crop prices.

3Sales volumes reflect quantity in P2O5 of Conda sales projections.

4Corporate selling, general and administrative expenses, maintenance capex, growth capex, trailing 12 months Adjusted EBITDA, Adjusted EBITDA, net

debt, net leverage ratio, and liquidity are each a non-IFRS financial measure. For additional information on non-IFRS and other financial measures, see

“Non-IFRS financial measures” below.

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June 30, 2026, Highlights

As of June 30, 2026, the Company had trailing 12 months Adjusted EBITDA4 of $123.8 million compared to $158.7 million as of December

31, 2025 with the decrease primarily due to the same factors that resulted in lower Adjusted EBITDA 4 during H1 2026 as compared to

H1 2025 described above.

As of June 30, 2026, the Company had net debt4 of $31.2 million compared to $19.5 million as of December 31, 2025, with the reduction

primarily due to lower cash and cash equivalents which was partially offset by lower debt. The Company’s net debt4 as of June 30, 2026

was comprised of $53.3 million in cash and $85.1 million in debt (gross of deferred financing costs). As of June 30, 2026 and December

31, 2025, the Company’s net leverage ratio4 was 0.3x and 0.1x, respectively.

As of June 30, 2026, the Company had liquidity 4 of $133.3 million comprised of $53.3 million in cash and $80.0 million in undrawn

borrowing capacity under its $80.0 million asset-based revolving credit facility (“ABL Facility”).

Operations Highlights and Mine Development

Environmental, Health, and Safety (“EHS”)

 For Q2 2026, the Company sustained EHS performance, includin g no reportable environmental releases and one recordable

incident, which resulted in a consolidated total recordable incident frequency rate (“TRIFR”) of 0.53.

 For H1 2026, the Company sustained EHS performance, includ ing no reportable environmental releases and two recordable

incidents, which resulted in a consolidated TRIFR of 0.53.

Conda

In Q2 2026, Conda:

 Produced 79,306 tonnes P 2O5 compared to 79,606 tonnes P 2O5 in Q2 2025 which remained consistent with higher MAP

production offset by lower SPA production;

 Generated revenues of $127.0 million comp ared to $116.6 million in Q2 2025 with the increase primarily due to higher MAP and

Superphosphoric acid (“SPA”) realized prices; and

 Generated Adjusted EBITDA 5 of $17.6 million compared to $32.9 million in Q2 2025 with the decrease primarily due to lower

cash margin per tonne P2O55 driven by higher cash costs due to sulfur market dynamics.

In H1 2026, Conda:

 Produced 166,882 tonnes P 2O5 compared to 170,806 tonnes P 2O5 in H1 2025 with the decrease primarily due to a shift in

production mix to MAP from SPA;

 Generated revenues of $257.4 million compared to $244.9 million in H1 2025 with the increase primarily due to higher realized

prices for MAP and SPA products, partially offset by the impact of sales volumes mix; and

 Generated Adjusted EBITDA 5 of $39.6 million compared to $73.8 million in H1 2025 with the decrease primarily due to lower

cash margin per tonne P2O55, driven by higher cash costs due to sulfur market dynamics.

Mine Life Extension

For the three and six months ended June 30, 2026, the Company advanced activities related to the extension of Conda’s mine life as

follows:

 successfully commenced regular loading of or e trains from the H1/NDR tipple to the plant, which ensures ore continuity for the

2026 shipping and production season and beyond; and

 advanced engineering and construction activities for the new pr ocessing facility designed to lo wer the magnesium content of

the ore from the H1/NDR mines to maintain P2O5 production capacity at the plant (the “MgO Reduction Project”).

MgO Reduction Project

Management recently completed a review of the expected timing for completion and cost of the company’s MgO Reduction Project.

Following this review, the Company now expects that the MgO Reduction Project will be completed and operational during Conda’s 2028

turnaround activities. As a result of the change in timing of the MgO Reduction Project, management has decided to defer the lo ng

turnaround scheduled at Conda from 2027 to 2028. Management believes that the deferral of the MgO Reduction Project completion will

further de-risk the project execution providing additional time for construction and commissioning activities.

The optimization of the MgO Reduction Project has resulted in an increase in the total projected capital costs. The Company now forecasts

that the total project cost from Q3 2025 to project completion to be between $95 and $110 million, compared to the original for ecast of

5 Adjusted EBITDA and cash margin per tonne P2O5 are a non-IFRS financial measure. For additional information on non-IFRS and other financial

measures, see “Non-IFRS financial measures” below.

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$80 to $95 million. The changes to the forecasted completion date and project costs have no impact on maintenance or growth cap ex

guidance for 2026, which are at $23 to $28 million and $63 to $83 million, respectively as described in the Financial Outlook s ection

above.

Exploration and Appraisal Program at Conda

As H1/NDR mining activities continue, the Company is focused on identifying and pursuing opportunities to add resources and reserves

to Conda to extend mine life beyond the curr ent Conda Technical Report estimate of mid- 2037. To pursue this objective, the Comp any

has commenced a multi-year, multi-lease expl oration, resource evaluation and permitting program at Conda with an expected annua l

cost of approximately $6,000 to $8,000.

Activities in the first half of the year focused on planning, preparation, and initial drilling activities, which will continue to peak into Q3

2026. Drilling activities will include in-fill drilling to further define reserves at Husky 1, initial resource delineation drilling on the Dry Ridge

lease to generate initial resource models, and core drilling of the Husky 3 and Husky 4 leases to identify site geology and cha racterize

the resource. Geologic evaluation and permitting activities also advanced during the quarter.

Sulfuric Acid Amended Agreement (as announced in the Company news release dated May 14, 2026).

On May 14, 2026, the Company entered into an amendment to its long-term sulfuric acid supply agreement with Rio Tinto Kennecott, a

key supplier of sulfuric acid for the Company's Conda phosphate production facility in Idaho.

Pursuant to the amended Sulfuric Acid Supply Agreement, the Company will continue to purchase sulfuric acid from the Kennecott mine

in Utah. Under the amended agreement, the re ference index price will change from the V ancouver Index to the Tampa Index from Ma y

1, 2026 through December 31, 2029. To prom ote long-term value for both U.S. farming and mining industries, the parties have agr eed

to an 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 been negotiated to provide greater

flexibility 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 ame nded Sulfuric Acid Supply Agreement. Afte r

December 31, 2029, it is expected that the Company will continue to purchase sulfuric acid from Rio Tinto.

Planned Turnaround

In June 2026, the Company completed a planned turnaround at Conda. The underlying maintenance activities were completed on

schedule and within budget, with one recordable injury and no environmental incidents. Production has resumed as of June 30, 2026.

Arraias

In Q2 2026, Arraias:

 Produced 15,494 tonnes of excess sulfuric acid compared to 29,658 tonnes in Q2 2025 with the decrease due to a planned

sulfuric acid plant turnaround and higher inte rnal sulfuric acid consumption in the acidulation process, which reduced excess

volumes available for sale compared to prior year;

 Produced 16,494 tonnes P 2O5, compared to 10,194 tonnes P2O5 in Q2 2025, with the increase due to higher demand for fertilizer

products and a full quarter of Granulated Partially Acidulated Rock (“G-PAPR”) production compared to the prior year; and

 Generated Adjusted EBITDA 6 of $4.7 million compared to $3.4 million in Q2 2025 with the increase primarily due to higher

realized prices and higher sales volumes in tonnes P2O5, which were partially offset by higher sulfur costs.

In H1 2026, Arraias:

 Produced 51,163 tonnes of sulfuric acid compared to 66,948 tonnes in H1 2025 with the decrease due to a planned sulfuric acid

plant turnaround and higher internal sulfuric acid consumpt ion by the acidulation process, which reduced excess volumes

available for sale compared to H1 2025;

 Produced 16,854 tonnes P 2O5 compared to 10,727 tonnes P2O5 in H1 2025, with the increase due to higher demand for fertilizer

products and a full quarter of G-PAPR production compared to the prior year; and

 Generated Adjusted EBITDA 6 of $6.2 million compared to $5.4 million in H1 2025 with the increase primarily due to higher

realized prices and higher sales volumes in tonnes P2O5, which were partially offset by higher sulfur costs.

Q2 2026 Financial Results and Business Update Webcast

An on-demand recorded webcast of management commentary that revi ews the Q2 2026 financial results, provides an update on the

business and addresses analysts’ and investors’ recent frequently asked questions will be available on Friday, August 7, 2026 a t 9:30

a.m. ET. The webcast will be available on the Pres entations & Events page of the Company’s website

www.itafos.com/investors/presentations-fact-sheets/ and will be available for 90 days.

6 Adjusted EBITDA is a non-IFRS financial measure. For additional information on non-IFRS and other financial measures, see “Non-IFRS financial

measures” below.

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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 lo cated 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 phosph ate fertilizer business 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 wit h operations in the United St ates, Brazil and Guinea-Bissau. 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 CL Fertilizers Holding LLC (“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 forward-looking information, including statements with respect t o: import

and export tariffs; the costs and availability of raw materials to produce fertilizer products; the impact of hostilities in the Middle East; and

the Company’s expectations around such hostilities and other geopolitical developments and the impact of such developments on global

supply chains and commodity prices; the Company’s expectations regarding the benefits, terms and effects of key supply and offt ake

agreements including the sulfuric acid su pply agreement and any amendments thereto; t he Company’s planned operations, strategies

and projects, including the planned drilling programs at Conda, the MgO Reduction Project; the restarting SSP production includ ing the

beneficiation plant at Arraias, the affordability of the Company’s products for its end users, the operations and performance of H1/NDR;

the expected resource life of H1 /NDR; exploration activities and environmental baseline resource studies to extend mine life; a nd

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 t hat 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 bus iness outlook are forward-looking informat ion. 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 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; 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; t he 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 ca utioned that the foregoing li st 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

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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, including statements regarding expected Adjusted EBI TDA, Net income (loss), basic earnings ( loss)

per share, corporate selling, general and administrative expenses, maintenance capex, growth capex, sales volumes, environmental and

asset retirement obligations payments and free cash flow. FOFI is subject to the same assumptions, risk factors, limitations an d

qualifications as set forth in the above paragraph. The Company has included the FOFI to prov ide 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 reas onable basis, reflecting management’s reasonable estimates and

judgements; however, actual results of operations and the result ing financial results may vary from the amounts set forth herei n. 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.

Contacts:

For Investor Relations:

Matthew O’Neill

Executive Vice President & Chief Financial Officer

[email protected]

713-242-8446

For Media:

Alliance Advisors IR

Jose Paredes

PR & Media Coordinator

[email protected]

504-8755-8860

Scientific and Technical Information

The scientific and technical information contained in this news release related to Mineral Resources for Conda has been reviewe d and

approved by Jerry DeWolfe, Professional Geologist (P.Geo.) with the Association of Professional Engineers and Geoscientists of Alberta.

Mr. DeWolfe is a full-time employee of WSP Canada Inc. and is independent of the Company. The scientific and technical informat ion

contained in this news release related to Mineral Reserves for Conda has been reviewed and approved by Terry Kremmel, Professional

Engineer (P.E.) licensed by the States of Mi ssouri and North Carolina. Mr. Kremmel is a full-time employee of WSP USA, Inc. and is

independent of the Company. The Company’s latest technical report in respect of Conda is entitled, “NI 43-101 Technical Report Itafos

Conda Project, Idaho, USA,” with an effective date of July 1, 2023 (the “Conda Technical Report”) and is available under the Company’s

website at www.itafos.com and under the Company’s profile on SEDAR+ at www.sedarplus.ca.

The scientific and technical information contained in this news release related to Arraias has been reviewed and verified by Je nnifer

Simper, P.Geo., WSP Canada Inc., Geology and Mineral Resources, Terry L. Kremmel, P.E., WSP USA Inc. Mining Methods and

Economic Analysis and Rainer Stephenson, P.E., Millcreek Engineering, Mineral Processing and Metallurgical Testing, each a Qualified

Person as defined in NI 43-101 and independe nt of the Company. The Arraias technical report, prepared in accordance with NI 43- 101

and supporting the PEA, is entitled, “NI 43-101 Technical Report Preliminary Economic Assessment Arraias Phosphate Operations,

Tocantins, Brazil”, with an effe ctive date of January 30, 2026 (the “Arraias Technical Report”) and is available under the Comp any’s

website at www.itafos.com and under the Company’s profile on SEDAR+ at www.sedarplus.ca.

Non-IFRS Financial Measures

This press release contains both IFRS and certain non-IFRS measures that management consid ers 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 t he 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 are

included below.

8

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

EBITDA earnings (loss) before interest, taxes,

depreciation, depletion and

amortization

Net income (loss) and operating income

(loss)

EBITDA is a valuable indicator of

the Company’s ability to generate

operating income

Adjusted EBITDA EBITDA adjusted for non-cash,

extraordinary, non-recurring and other

items unrelated to the Company’s core

operating activities

Net income (loss) and operating income

(loss)

Adjusted EBITDA is a valuable

indicator of the Company’s ability

to generate operating income

from its core operating activities

normalized to remove the impact

of non-cash, extraordinary and

non-recurring items. The

Company provides guidance on

Adjusted EBITDA as useful

supplemental information to

investors, analysts, lenders, and

others

Basic earnings

(loss) (C$/share)

Basic earnings (loss) per share

denominated in US dollars ($/share)

divided by the average exchange rate

C$/$ during the period.

Basic earnings (loss) ($/share) The Company considers that

basic earnings (loss) (C$/share)

is a useful indicator to investors

given that the Company’s shares

primarily trade in C$

Trailing 12

months Adjusted

EBITDA

Adjusted EBITDA for the current and

preceding three quarters

Net income (loss) and operating income

(loss) for the current and preceding three

quarters

The Company uses the trailing 12

months Adjusted EBITDA in the

calculation of the net leverage

ratio (non-IFRS measure)

Total capex Additions to property, plant, and

equipment and mineral properties

adjusted for additions to asset

retirement obligations, additions to

right-of-use assets and capitalized

interest

Additions to property, plant and

equipment and mineral properties

The Company uses total capex in

the calculation of total cash

capex (non-IFRS 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.

Total cash capex Total capex less accrued capex A dditions to property, plant and

equipment and mineral properties

The Company uses total cash

capex in the calculation of cash

growth capex (non-IFRS

measure)

Cash

maintenance

capex

Maintenance capex less accrued

maintenance capex

Additions to property, plant and

equipment and mineral properties

The Company uses cash

maintenance capex in the

calculation of cash growth capex

(non-IFRS measure)

Cash growth

capex

Growth capex less accrued growth

capex

Additions to property, plant and

equipment and mineral properties

The Company uses cash growth

capex in the calculation of free

cash flow (non-IFRS measure).

Net debt Debt less cash and cash equivalents

plus deferred financing costs (does not

consider lease liabilities)

Current debt, long-term debt and cash

and cash equivalents

Net debt is a valuable indicator of

the Company’s net debt position

as it removes the impact of

deferring financing costs.

Net leverage ratio Net debt divided by trailing 12 months

Adjusted EBITDA

Current debt, long-term debt and cash

and cash equivalents; net income (loss)

and operating income (loss) for the

current and preceding three quarters

The Company’s net leverage

ratio is a valuable indicator of its

ability to service its debt from its

core operating activities.

Liquidity Cash and cash equivalents plus

undrawn committed borrowing capacity

Cash and cash equivalents Liquidity is a valuable indicator of

the Company’s liquidity