Itafos Reports Strong Operational Q4 and FY 2023 Results

TSX-V: IFOS

News Release

ITAFOS REPORTS STRONG OPERATIONAL Q4 AND FY 2023 RESULTS

HOUSTON, TX – March 20, 2024 – Itafos Inc. (TSX-V: IFOS) (the “Company”) r eported today its Q4 and FY 2023 financial and

operational highlights. The Company’s financial statements and management’s discussion and analysis for the year ended December

31, 2023 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.

CEO Commentary

“We are pleased to report our 2023 financial results and the continuation of our strong safety and operational performance. For 2023, we

reported revenues of $465.5 million and adjusted EBITDA of $131.8 million.

During Q4 2023, we continued to successf ully execute our business plan and made sign ificant progress on a number of key company

objectives. Work continues on our Husky 1 / North Dry Ridge (“H 1/NDR”) capital project with the project remaining on schedule and on

budget. We now expect to begin mining activities in Q4 2025.

During Q4 2023, we saw prices continue to strengthen off the lows of Q2 2023, ref lective of increasing demand and tighter US su pply

fundamentals. We expect to see these conditions continue into 2024. Going forward, the Company, will now provide guidance associated

with our expected sales volumes, capital ex penditures and other relevant financial metr ics. This change is consistent with peer s in the

industry.

Finally, the process to explore and evaluate various strategic alternatives to enhance value for all Itafos shareholders announced by our

Board in Q1 2023 continues.” said G. David Delaney, CEO of Itafos.

Q4 2023 Key Highlights

 revenues of $119.0 million

 Adjusted EBITDA of $29.5 million

 impairment of $66.0 million at Arraias

 net loss of $(48.6) million

 basic loss of C$(0.35)/share

 free cash flow of $23.3 million

FY 2023 Key Highlights

 revenues of $ 465.5 million

 Adjusted EBITDA of $ 131.8 million

 impairment of $66.0 million at Arraias

 net income of $ 3.1 million

 basic earnings of C$ 0.02/share

 free cash flow of $ 77.6 million

December 31, 2023 Key Highlights

 trailing 12 months Adjusted EBITDA of $ 131.8 million 1

 net debt of $ 61.3 million 1

 net leverage ratio of 0.5x 1

1 Adjusted EBITDA, trailing 12 months Adjusted EBITDA, maintenance capex, growth capex, net debt, net leverage ratio and free cash flow are each a

non-IFRS financial measure. For additional information on non-IFRS financial measures, see “Non-IFRS financial measures” below.

FY 2024 Guidance

 sales volumes guidance of 320-340 thousands of tonnes P 2O52

 selling, general and administrative ex penses guidance of $17-20 million3

 maintenance capex guidance of $25-35 million 1

 growth capex guidance of $35-46 million 1

Q4 and FY 2023 Market Highlights

Diammonium phosphate ("DAP") New Orleans (" NOLA") prices averaged $545/st in Q4 2023 compared to $672/st in Q4 2022, down

19% year-over-year, and averaged $548/st in FY 2023 compared to $772/st in FY 2022, down 29% y ear-over-year. Specific factors

driving the year-over-year decline in DAP NOLA were as follows:

 weakened demand in response to historically high 2022 phosphate prices;

 the softening of global ammonia and sulfur prices;

 the softening of historic ally high crop prices; and

 increased phosphate exports out of Russia and China.

Q4 2023 Financial Highlights

For Q4 2023, the Company’s financial highlights were as follows:

 revenues of $119.0 million in Q4 2023 compared to $135.2 million in Q4 2022;

 Adjusted EBITDA of $29.5 million in Q4 2023 compared to $50.1 million in Q4 2022;

 impairment of $66.0 million at Arraias in Q4 2023 compared to $0 million in Q4 2022;

 net income (loss) of $(48.6) million in Q4 2023 compared to $29.3 million in Q4 2022;

 basic earnings (loss) of C$(0.35)/share in Q4 2023 compared to C$0.21/share in Q4 2022; and

 free cash flow of $23.3 million in Q4 2023 compared to $38.6 million in Q4 2022.

The decrease in the Company’s Q4 2023 financial performance compared to Q4 2022 was primarily due to lower realized prices as a

result of softer global market conditions and the impairment of non-current assets of Arraias, partially offset by higher sales volumes and

lower input costs.

The Company’s total capex2 spend in Q4 2023 was $21.2 million compared to $9.9 million in Q4 2022 with the increase primarily due to

the mine development activities at H1/NDR at Conda.

FY 2023 Financial Highlights

For FY 2023, the Company’s financial highlights were as follows:

 revenues of $465.5 million in FY 2023 compared to $593.3 million in FY 2022;

 Adjusted EBITDA of $131.8 million in FY 2023 compared to $224.8 million in FY 2022;

 impairment of $66.0 million at Arraias in FY 2023 compared to $0 million in FY 2022;

 net income of $3.1 million in FY 2023 compared to $114.7 million in FY 2022;

 basic earnings (loss) of C$0.02/share in FY 2023 compared to C$0.79/share in FY 2022; and

 free cash flow of $77.6 million in FY 2023 compared to $187.9 million in FY 2022.

The decrease in the Company’s FY 2023 financial performance compared to FY 2022 was primarily due to lower realized prices and the

impairment of non-current assets of Arraias, partially offset by lower input costs.

The Company’s total capex4 spend in FY 2023 was $58.4 million compared to $39.9 million in FY 2022 with the increase primarily due to

development activities at H1/NDR at Conda.

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

3 Selling, general and administrative expenses (“SG&A”) is Corporate SG&A less share-based payment expense.

4 Total capex is a non-IFRS financial measure. For additional information on non-IFRS and other financial measures, see “Non-IFRS financial measures”

below.

December 31, 2023 Highlights

As at December 31, 2023, the Company had trailing 12 months Adjusted EBITDA of $131.8 million compared to $224.8 million at the end

of 2022 with the decrease primarily due to the same factors that resulted in lower revenues, partially offset by lower input costs at Conda.

At December 31, 2023, the Company had net debt of $61.3 million compared to $88.3 million at the end of 2022, with the reduction due

to the repayment of principal debt outstanding from free cash fl ows generated, which was partially offset by lower cash and cas h

equivalents. The Company’s net debt as at December 31, 2023 was comprised of $30.8 million in cash and $90.5 million in debt (g ross

of deferred financing costs). As at December 31, 2023 and the end of 2022, the Company’s net leverage ratio was 0.5x.

As at December 31, 2023, the Company had liquidity 5 of $70.8 million comprised of $30.8 millio n in cash and $40.0 million in undrawn

borrowing capacity under its $80 million asset-based revolving credit facility (the “ABL Facility”).

Q4 2023 Operational Highlights

Environmental, Health, and Safety (“EHS")

 Sustained EHS performance, including no re portable environmental releases and one recordable incidents, which resulted in a

consolidated total recordable incident frequency rate (“TRIFR”) of 0.57.

Conda

 Produced 95,719 tonnes P 2O5 at Conda in Q4 2023 compared to 89,226 tonnes P 2O5 in Q4 2022 with the increase primarily

due to production efficiencies from improved uptime and better recoveries;

 Generated revenues of $112.4 million at Conda in Q4 2023 co mpared to $129.3 million in Q4 2022 with the decrease primarily

due to lower realized selling prices, which were partially offset by higher sales volumes; and

 Generated Adjusted EBITDA at Conda of $32.4 million in Q4 2023 compared to $54.8 million in Q4 2022 with the decrease

primarily due to the same factors that resulted in lower revenues, which were partially offset by lower input costs.

Q4 2023 Other Highlights

 Produced 34,087 tonnes of sulfuric acid at Arraias in Q4 2023 compared to 35,895 tonnes in Q4 2022 with the decrease primarily

due to reduced sulfuric acid and sulfur inventory management in Q4 2023;

 Successfully started the production of Direct Application Phosphate Rock (“DAPR”) at Arraias by producing 643 tonnes P2O5 in

Q4 2023 compared to 0 tonnes P 2O5 in Q4 2022 with the increase due to the fu ll quarter of DAPR production and sales per

Fertilizer Restart Program;

 Generated Adjusted EBITDA at Arraias of $1.1 million in Q4 2023 compared to $0 million in Q4 2022 with the increase primarily

due to higher sulfuric acid volume and lower cost of goods sold generating gross margin improvement and commencement of

DAPR sales; and

 Recorded an impairment of non-current assets of $66 million at Arraias.

FY 2023 Operational Highlights

EHS

 Sustained EHS performance, including no re portable environmental releases and five recordable incidents, which resulted in a

consolidated TRIFR of 0.57.

Conda

 Produced 349,030 tonnes P 2O5 at Conda in Q4 2023 compared to 343,526 tonnes P2O5 in Q4 2022 with the increase primarily

due to better recoveries;

 Generated revenues of $448.1 million at Conda in Q4 2023 co mpared to $571.1 million in Q4 2022 with the decrease primarily

due to lower realized selling prices. Elevated prices in the prior year driven primarily by the Russian invasion of Ukraine and the

three-month lagged pricing impact on Conda’s MAP contract;

 Generated Adjusted EBITDA at Conda of $148.1 million in Q4 2023 compared to $240.2 million in Q4 2022 with the decrease

primarily due to the same factors that resulted in lower revenues, which were partially offset by lower input costs;

 On April 24, 2023, the Company announced the Record Of Decision for the H1/NDR mine development project. The H1/NDR

project comprises primarily of civil activities and infrastructure development. Mineral resources from H1/NDR are expected from

5 Liquidity is a non-IFRS financial measure. For additional information on non-IFRS and other financial measures, see “Non-IFRS financial measures”

below.

20256 onward, providing an uninterrupted supply as Rasmussen Valley Mine reaches the end of its useful life;

 On May 8, 2023, the Company received the Notice to Proc eed (“NTP”) for the H1/NDR mine development project. Upon receipt

of the NTP, the Company commenced capital activities associated with the mine development project;

 Advanced H1/NDR capital activities including earthworks and related water management features for the rail loadout and haul

road, improvement of the maintenance shop, and existing road relocation;

 Advanced development, including engineering of key infrastruc ture and progression of related magnesium oxide reduction

initiatives to enhance SPA production and sales volumes, including continuation of test work;

 On September 7, 2023, the Company annou nced that it entered into a MAP Offtake Agreement with J.R. Simplot Company, an

international food and agriculture company. The Company will se ll 100% of the MAP produced by Conda to the J.R. Simplot

Company during the term of the MAP Offtake Agreement, which commenced on January 1, 2024, with a term of five years. The

MAP Offtake Agreement will replace the existing MAP sale s agreement dated January 12, 2018, between the Company and

Nutrien, which expired on December 31, 2023; and

 On September 7, 2023, the Company enter ed into a new ammonia supply contract with a subsidiary of Nutrien, which

commenced on January 1, 2024, with a term of two years. The new ammonia supply contract replaces the current supply contract

dated January 12, 2018, between the Company and Nutrien which expired on December 31, 2023.

FY 2023 Other Highlights

 Produced 89,075 tonnes of sulfuric acid at Arraias in FY 2023 compared to 99,030 tonnes in FY 2022 with the decrease due to

the sulfuric acid plant shutdown for required maintenance in April and May;

 Produced 5,196 tonnes P 2O5 of DAPR at Arraias in FY 2023 compared to 0 tonnes P2O5 in FY 2022 the increase due to the full

year of DAPR production and sales per Fertilizer Restart Program;

 Generated Adjusted EBITDA at Arraias of $0.4 million in FY 2023 compared to $0.1 million loss in FY 2022 with the increase

primarily due to higher sulfuric acid volume and lower co st of goods sold generating gross margin improvement and

commencement of DAPR sales;

 On June 28, 2023, the Company filed the NI 43-101 te chnical report for the Farim Phosphate Project; and

 Recorded an impairment of non-current assets of $66 million at Arraias.

Market Outlook

Prices in 2023 have moderated off the historically high prices in 2022. The Company’s 2023 performance was impacted due to a ve ry

competitive summer price reset and the three-month lagging average of our MAP contract. Despite the decrease, the Company has seen

an extremely strong fall season, resulting in improved pricing from the summer and contin ued tightening of North American phosp hate

fertilizer supply. The Company expects a relative stable market moving forward due to the ongoing tight supply situation couple d with

softer crop prices.

Specific factors the Company expects to support moderate pricing in the global phosphate fertilizer markets through the end of 2024 are

as follows:

 no significant phosphate supply capacity additions;

 strong demand for phosphates in North Americ a following years of under application;

 softening of crop prices from historical highs; and

 ongoing phosphate export restrictions fr om China and reduced exports from Morocco.

Financial Outlook

The Company’s guidance for 2024 is as follows:

(in millions of US Dollars Projected

except as otherwise noted) FY 2024

Sales Volumes (thousands of tonnes P2O5) 320-340

Selling, general and administrative expenses $17-20

Maintenance capex $25-35

Growth capex $35-46

6 Timeline for H1/NDR based on management esti mates and subject to certain assumptions , including successful permitting and deve lopment activities.

The H1/NDR mine life extension is based on a Preliminary Econom ic Assessment (“2019 PEA”) included in the Conda Technical Repor t (as defined

below). The 2019 PEA on the H1 and NDR properties is preliminary in nature and includes inferred mineral resources that are considered too speculative

geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty

that the 2019 PEA will be realized. Readers are referred to t he Conda Technical Report for the applicable qualifications and as sumptions in connection

with its 2019 PEA.

Business Outlook

The Company continues to focus on the following key objectives to drive long-term value and shareholder returns:

 improving financial and operational performance;

 executing on the infrastructure and civil works required for the mine development for H1/NDR; and

 conducting the strategic review process (including evaluating potential strategic alternatives for the Company as outlined in the

news release dated March 13, 2023).

About Itafos

The Company is a phosphate and specialty fertilizer company. The Company’s businesses and projects are as follows:

 Conda – a vertically integrated phosphate fertilizer business lo cated in Idaho, US with production capacity as follows:

- approximately 550kt per year of monoa mmonium phosphate (“MAP”), MAP with micronutrients (“MAP+”), superphosphoric

acid (“SPA”), merchant grade phosphoric acid (“MGA”) and ammonium polyphosphate (“APP”); and

- approximately 27kt per year of hy drofluorosilicic acid (“HFSA”);

 Arraias – a vertically integrated phosphat e fertilizer business located in Tocantins, Brazil with production capacity as follows:

- approximately 500kt per year of single superphos phate (“SSP”) and SSP with micronutrients (“SSP+”); and

- 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; and

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

As at December 31, 2023 the Company has completed the wind down process of the Mantaro mine project (located in Junin, Peru).

The Company is a Delaware corporation that is headquartered in Houston, TX. The Company’s shares trade on the TSX Venture

Exchange (“TSX-V”) under the ticker symbol “IFOS”. The Company’s principal shareholder is CL Fertilizers Holding LLC (“CLF”). CLF is

an affiliate of Castlelake, L.P., a global private investment firm.

For more information, or to join the Comp any’s mailing list to receive notification of future news releases, please visit the C ompany’s

website at www.itafos.com.

Forward-Looking Information

Certain information contained in this news release constitute s forward-looking information, including statements with respect t o: the

Company’s planned operations and strategies; the timing for commencement of operations at H1 / NDR; the expected resource life of H1

/ NDR; the sources of funding to be used fo r the development of H1 / NDR; and economic and market trends with respect to the gl obal

agriculture and phosphate fertilizer markets. All information other than information of historical fact is forward-looking info rmation.

Statements that address activities , events or developments that t he Company believes, expects or anticipates will or may occur in the

future include, but are not limited to, stat ements regarding estimates and/or assumpti ons 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 t he date the statements are made. Those opinions, assumptions and

estimates are inherently subject to a variety of risks and uncert ainties and other known and unknow n factors that could cause a ctual

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 mine ral

reserves and resources; risk that timing of expected permitting will not be met; changes to mine development and completion; fo reign

operations risks; changes to regulation; environmental risks; t he impact of adverse weather and climate change; general economi c

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; adverse litigation; changes to permitting and lic ensing; geo-political risks; loss of land title and

access rights; changes to insurance and uninsured risks; the potential for malicious acts; market volatility; changes to technology; changes

to tax laws; the risk of operating in foreign jurisdictions; and the risks posed by a controlling shareholder and other conflic ts of interest.

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 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-looki ng information contained in this news rele ase are

described in greater detail in the Company’s current 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.

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

prospective results of operations, includi ng statements regarding expected adjusted EBITD A, net income, basic earnings per shar e,

maintenance capex, growth capex and free cash flow. 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 th e Company undertakes no obligation to publicly update or revis e 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

Itafos Investor Relations

[email protected]

713-242-8446

Scientific and Technical Information

The scientific and technical information contained in this news release related to Mineral Resources for Conda and Farim has be en

reviewed 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 information contained in this news release related to Mineral Reserves for Conda and Farim has been reviewed and approved

by Edward Minnes, Professional Engineer (P.E.) licensed by the State of Missouri. Mr. Minnes is a part-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

on Itafos Conda and Paris Hills Mineral Projects, Idaho, USA,” with an effective date of July 1, 2019 (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

Non-IFRS Financial Measures

This press release contains both IFRS and certain non-IFRS m easures that management consi ders 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 includ ed or excluded from the most directly co mparable 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 t he 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.

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 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

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.

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

Free cash flow Cash flows from operating activities,

which excludes payment of interest

expense, plus cash flows from

investing activities less cash growth

capex

Cash flows from operating activities and

cash flows from investing activities

Free cash flow is a valuable

indicator of the Company’s ability

to generate cash flows from

operations after giving effect to

required capital expenditures to

sustain operations at existing

levels. Free cash flow is a

valuable indicator of the

Company’s cash flow available

for debt service or to fund growth

opportunities. The Company

provides guidance on free cash

flow as useful supplemental

information to investors, analysts,

lenders, and others.

EBITDA, ADJUSTED EBITDA AND TRAILING 12 MONTHS ADJUSTED EBITDA

For the three months ended December 31, 2023 and 2022

For the three months ended December 31, 2023, the Company had EBITDA and Adjusted EBITDA by segment as follows:

(in thousands of US Dollars) Conda Arraias

Development

and

exploration Corporate Total

Net income (loss) $ 19,065 $ (65,126) $ (341) $ (2,221) $ (48,623 )

Finance (income) expense, net 1,827 (182) (1) 3,176 4,820

Current and deferred income tax expense

(recovery) 4,801 — — (5,394) (593 )

Depreciation and depletion 5,892 648 5 60 6,605

EBITDA $ 31,585 $ (64,660) $ (337) $ (4,379) $ (37,791 )

Unrealized foreign exchange (gain) loss — (157) 48 — (109 )

Share-based payment expense — — — 492 492

Impairments — 66,000 — — 66,000

Transaction costs — — — 199 199

Other (income) expense, net 788 (71) 1 — 718

Adjusted EBITDA $ 32,373 $ 1,112 $ (288) $ (3,688) $ 29,509

(in thousands of US Dollars) Conda Arraias

Development

and

exploration Corporate Total

Operating income (loss) $ 26,476 $ (65,536) $ (293) $ (4,436) $ (43,789 )

Depreciation and depletion 5,892 648 5 60 6,605

Realized foreign exchange gain 5 — — (3) 2

Share-based payment expense — — — 492 492

Impairments — 66,000 — — 66,000

Transaction costs — — — 199 199

Adjusted EBITDA $ 32,373 $ 1,112 $ (288) $ (3,688) $ 29,509

For the three months ended December 31, 2022, the Company had EBITDA and Adjusted EBITDA by segment as follows:

(in thousands of US Dollars) Conda Arraias

Development

and

exploration Corporate Total

Net income (loss) $ 35,321 $ (116) $ 59 $ (5,942) $ 29,322

Finance (income) expense, net 1,164 (122) (2) 4,771 5,811

Current and deferred income tax expense

(recovery) 9,595 — — (3,660) 5,935

Depreciation and depletion 8,354 585 3 47 8,989

EBITDA $ 54,434 $ 347 $ 60 $ (4,784) 50,057

Unrealized foreign exchange (gain) loss 400 (124) (568) 578 286

Share-based payment expense — — — (133) (133 )

Transaction costs — — 15 214 229

Other income (11) (223) (74) (1) (309 )

Adjusted EBITDA $ 54,823 $ — $ (567) $ (4,126) $ 50,130

(in thousands of US Dollars) Conda Arraias

Development

and

exploration Corporate Total

Operating income (loss) $ 46,558 $ (585) $ (585) $ (4,254) $ 41,134

Depreciation and depletion 8,354 585 3 47 8,989

Realized foreign exchange gain (89) — — — (89 )

Share-based payment expense — — — (133) (133 )

Transaction costs — — 15 214 229

Adjusted EBITDA $ 54,823 $ — $ (567) $ (4,126) $ 50,130