Largo Provides Clarification

TORONTO, ONTARIO--(Marketwire - Aug. 14, 2009) - Largo Resources Ltd. (TSX VENTURE:LGO) -

Highlights

- 150 million tonnes combined high grade vanadium (22.5 million tonnes 43-101 compliant and 132 million tonnes non-compliant)

- Target production of 10-15 million pounds high grade ferrovanadium per year

- Target production of over 20 million pounds of tungsten oxide per year

- Target production of over 6 million pounds of molybdenum oxide per year

Corporate Summary

The Maracas Vanadium Project provides Largo with the ability to produce in excess of 155,000,000 pounds of high grade vanadium in ferrovanadium over the currently projected 23 year life of the mine. This estimate is based on the feasibility study completed by Aker Solutions in September 2008. Following initial investigations and market analysis, Largo is examining options to increase the targeted annual production to 15,000,000 pounds from the currently proposed 10,000,000 pounds of vanadium per annum and accelerate the production schedule.

The existing resource at Maracas occupies a small foot print (400 meters) and potential for additional resources can be identified with drilling along strike and at depth. Only 10% of the potential 8 kilometres of strike length has been tested to date and four other targets have been identified that need further drilling in order to upgrade them to a resource category.

The recent acquisition of Campo Alegre de Loudres in Bahia, Brazil provides Largo with significant additional high grade vanadium estimated to be 132 million tonnes of 0.75% V205 and includes 50% Fe and 21% TiO2. This estimate is historical in nature, does not comply with National Instrument 43-101 and should not be relied upon. The resource estimate was prepared by Companhia Baiana de Pesquisa Mineral (CBPM) in 1980. The mineralization at Campo Alegre de Lourdes occurs as wide zones of massive titanomagnetite and ilmenite that has been traced for eleven kilometres along strike and two kilometres wide and are characterized by eleven deposits aligned roughly north-south as eleven elongated hills.

Drilling at Campo Alegre de Lourdes has not tested the deposit limits and the deposit remains open both along its 22 kilometre strike and to depth. The holes have only tested the deposit to a shallow depth of 60 metres vertical. Largo believes that Campo Alegre provides the Company with an opportunity to diversify into the iron ore business with the potential benefit of producing titanium and vanadium as by-products.

On a basis of the revised mineral resource for Northern Dancer (see press release dated March 12, 2009) and the conceptual potential to mine higher than average grade material for the initial years of mine life, Largo is analyzing target production rates in excess of 20 million pounds of tungsten and 6 million pounds of molybdenum. Additional metallurgical testwork is to be done to further advance development of this project.

Maracas

The Maracas Project is a high grade vanadium deposit located in Bahia, Brazil. Largo has defined a NI43-101 compliant Measured and Indicated Resource of 22.5 million tonnes grading 1.26% V2O5 which is the highest grade vanadium deposit known. (See press release dated August 13, 2008 for details regarding mineral resource estimate.)

Largo believes that there is good potential to expand the estimated mineral resource significantly. The existing resource estimate occupies a small foot print and Largo believes that it can identify potential for additional resource with drilling along strike and at depth. Only 10% of the potential 8 kilometres of strike length has been tested to date and four other targets have been identified that need further drilling to up grade them to a resource category. This deposit is hosted in extensive laterally continuous magnetite layers within gabbros and pyroxenites of the Rio Jacare mafic-ultramafic layered intrusion. This sheetlike linear intrusion extends for 70 kilometres along a north-south strike averaging about 1.2 kilometres in width. The massive magnetite layers at Maracas run up to 100 metres in thickness. The vanadium is associated with titaniferous magnetite.

In May of this year, Largo received the most significant permit required to license the project (see press release May 14, 2009). The license known as the Localization License ("Licenca de Localizacao" or LL) allows the rest of the licensing process to proceed, and confirms that the project can be "located" (hence "localization licence"), developed and operated as proposed. The Environmental Impact Assessment (EIA) and Environmental Impact Report (RIMA) were completed as part of this process. The LL involves the participation of the public and any NGOs who wish to participate through public meetings.

Largo's staff located in Brazil, continue to develop the project by:

- Focusing on updating capital costs

- Initiating additional environmental work in support of the project prior to commencing basic engineering

- Preparing to conduct additional site geotechnical investigations for basic engineering

- Identifying additional metallurgical testwork to maximise recoveries and examine throughput alternatives.

The feasibility study published in September 2008 (see press release dated August 12, 2008) was based on the production of approximately 4,500 tpa of vanadium contained in ferrovanadium for the initial years of operation. Based on an internal continued review of the flowsheets and productivities, Largo's consultants believe that a target of 5,100 tpa is reasonable for the initial years of operation. In addition, Largo has commenced a process of further project optimization that includes examining annual vanadium production rates of 7,500 tonnes. Assuming a successful plant expansion to 5,100 tpa or 7,500 tpa, Largo would anticipate that the economics of the project would improve significantly.

Campo Alegre de Loudres

Campo Alegre de Lourdes represents a very large Fe-Ti-V deposit. Mineralization consists of massive magnetite layers hosted in a layered mafic sequence. The mineralized zones are up to 1.5 kilometres long and over 50 metres wide. The mineralization is estimated to be composed of 60% to 80% titaniferous magnetite and 18% ilmenite (weakly magnetic titanium-iron oxide - FeTiO3). Largo believes that this deposit has a similar geological setting and style of mineralization as Maracas.

There is a historical resource estimate that does not comply with NI 43-101 on the property that was calculated be Companhia Baiana de Pesquisa Mineral (CBPM), a Bahia State owned, government exploration company. They have stated a resource of Measured, Indicated and Inferred of 132 million tonnes grading 49.98% Fe, 20.74% TiO2 and 0.75% V2O5. This resource is based on the results of drilling done between the late 1970's to early 1980's on the property which include 60 holes totalling 5,257 metres. These holes have not tested the deposit limits and the deposit remains open along its 22 kilometre strike and to depth. The holes have only tested the deposit to a shallow depth of 60 metres vertical.

Largo is working to verify these resources and believes that there is potential to increase the estimated resources significantly. The core and geological database from previous drill programs is intact and in good condition, housed in an indoor core facility. Largo expects that this will allow verification to proceed expeditiously.

Metallurgy investigations were carried out by various laboratories in Brazil between 1978 and 1980 using various approaches that covered the production of iron ore concentrates, vanadium pentoxide, titanium and pig iron as primary or secondary products. Prior investigators included Centro de Pesquisas e Desenvolvmento (CEPED), and Centro Tecnico Aeroespacial (CTA) of Brazil - both well-known metallurgical laboratories in Brazil during that time period - and Rautaruuki Oy and Outokumpo Oy of Finland.

In addition, historical, metallurgical investigations by Paulo Abib Engineering of Brazil during 1978 to 1980 using magnetic separation techniques yielded the following concentrate:

- Fe - 58%

- TiO2 - 14.6%

- V2O5 - 0.96%

Currently, Largo is assessing the merits of the production of an iron concentrate on site with subsequent shipment to a facility that would recover all or some of these products.

The Company's objective is to complete an internal economic assessment of the project to identify potential production scenarios and examine scenarios for advancing the project. One of the initial steps in this process will be to establish a NI 43-101 compliant mineral resource, which would form the basis for an future NI 43-101 complaint Preliminary Economic Assessment.

Northern Dancer

Largo has previously announced (see press release dated March 12, 2009) updated mineral resource estimates at its Northern Dancer project that included estimate of measured mineral resources of 30.8 million tonnes grading 0.114% WO3 and 0.030% Mo, Indicated mineral resources of 192.6 million tonnes grading 0.100% WO3 and 0.029% Mo, and inferred mineral resources of 201.2 million tonnes grading 0.089% WO3 and 0.024% Mo. The higher-grade zone at the Northern Dancer project is estimated to contain a Measured and Indicated resource of 60.3 million tonnes grading 0.137% WO3 and 0.045% Mo (WO3 equiv 0.215%) and Inferred mineral resource of 5.4 million tonnes grading 0.134% WO3 and 0.047% Mo (WO3 equiv 0.214%).

Largo has carried out some very preliminary mine planning exercises that project that the first eight years of production has the potential to yield tungsten grades of approaching 0.1% and molybdenum grades of 0.03%. Largo has engaged Inspectorate-PRA to carry out a further phase of metallurgical testing that is to be started later this month. The testwork will be carried out on new metallurgical composite samples that represent the first 5-6 years of production. The program is designed to identify the optimal flowsheet that will likely combine gravity and flotation techniques and also to predict overall recoveries. In addition to the work being carried out by Inspectorate-PRA, a further program of optical sorting will be carried out to confirm the previous results that indicated the technique to be successful in recovering 93% of the WO3 while rejecting approximately 48% of the feed.

This press release was reviewed by Mr. Andy Campbell, P.Geo. is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the program.

About Largo

Largo Resources is a Canadian natural resource development and exploration company with two advanced stage projects: the Maracas Vanadium-PGM deposit in Brazil and the Northern Dancer Tungsten-Molybdenum deposit in the Yukon. The company is listed on the TSX Venture Exchange under the symbol LGO.

For more information please refer to Largo's website: www.largoresources.com

Disclaimer

This press release contains forward-looking statements under Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the development potential and timetable of the Largo's projects; Largo's ability to raise additional funds necessary to complete projects; future mineral prices; the estimation of mineral reserves and mineral resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".
Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Estimates regarding the anticipated timing, amount and cost of mining are based on assumptions underlying mineral reserve and mineral resource estimates and the realization of such estimates; detailed research and analysis completed by independent consultants; research and analysis regarding the timing of delivery for long-lead items; knowledge regarding the factors involved in building mines and other factors described in the technical reports that Largo has filed under the profile of the Company on SEDAR. Capital and operating cost estimates are based on extensive research of the Largo and independent consultants, recent estimates of construction and mining costs and other factors that are set out in the technical reports. Production estimates are based on mine plans and production schedules, which have been developed by the Largo's personnel and independent consultants. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Largo to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to: unexpected events and delays during construction, expansion and start-up; variations in ore grade and recovery rates; receipt and revocation of government approvals; timing and availability of external financing on acceptable terms; actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of ferrovanadium; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry. Although management of the Largo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.