Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

October 17, 2007 07:30 ET

Drilling Confirms Extensive Vanadium-PGM Deposit at Largo's Maracas Project (Brazil)

- 41 of 42 holes intersect significant Vanadium-PGM mineralization - Updated resource estimate in progress - Focus shifted to PGM exploration - Eleven additional holes completed on second target with results pending

TORONTO, ONTARIO--(Marketwire - Oct. 17, 2007) - Largo Resources Ltd. (TSX VENTURE:LGO) is pleased to provide a further update on its exploration program in progress on the Company's 2,000 hectare Maracas Vanadium-PGM property located 250 kilometres west of Salvador, Bahia, Brazil.

To date, 45 diamond drill holes totalling 11,196 metres have been completed on the Gulcari "A" deposit in order to expand and upgrade the Vanadium-PGM mineralization and the previously announced inferred mineral resource of 15.0 million tonnes grading 1.37% Vanadium Pentoxide (V2O5) (see press release November 22, 2006). Results were previously released for 16 holes (see press releases May 22, 2007, June 19, 2007 and July 18 2007). Three holes were drilled for geotechnical and metallurgical purposes (FGA81, FGA84 and FGA85). Significant results for the remaining 26 holes are summarized in Table 1.

Highlights from the new results include:

- FGA73 - 40.0 metres true width at 1.62% V2O5 and 0.34 g PGM/t (0.24 g Pt/t and 0.10 g Pd/t) and 17.5 metres true width at 2.81% V2O5 and 0.59 g PGM/t (0.54 g Pt/t and 0.05 g Pd/t)

- FGA74 - 39.0 metres true width grading 1.86% V2O5 and 0.27 g PGM/t (0.24 g Pt/t and 0.03 g Pd/t) including 25.0 metres true width grading 2.15% V2O5, and 0.25 g PGM/t (0.21 g Pt/t and 0.04 g Pd/t)

- FGA77 - 17.9 metres true width grading 2.37% V2O5, and 0.25 g PGM/t (0.22 g Pt/t and 0.03 g Pd/t))

- FGA79 - 70.0 metres true width grading 1.60% V2O5, and 0.32 g PGM/t (0.26 g Pt/t and 0.06 g Pd/t)) including 38.0 metres true width grading 2.32% V2O5, and 0.43 g PGM/t (0.35 g Pt/t and 0.08 g Pd/t)

- FGA87 - 22.0 metres true width grading 1.82% V2O5, and 0.41 g PGM/t (0.19 g Pt/t and 0.22 g Pd/t))

- FGA89 - 59.0 metres true width grading 2.11% V2O5, and 0.26 g PGM/t (0.19 g Pt/t and 0.07 g Pd/t)) including 36.0 metres true width grading 2.40% V2O5 and 0.27 g PGM/t (0.20 g Pt/t and 0.07 g Pd/t)

- FGA95 - 65.0 metres true width grading 1.46% V2O5, and 0.21 g PGM/t (0.11 g Pt/t and 0.10 g Pd/t))

- FGA97 - 50.3 metres true width grading 1.83% V2O5, and 0.47 g PGM/t (0.28 g Pt/t and 0.19 g Pd/t)) including 29.3 metres true width grading 2.26% V2O5, and 0.50 g PGM/t (0.34 g Pt/t and 0.16 g Pd/t)

Andy Campbell, P.Geo., Vice President Exploration commented: "Of the 42 holes drilled to expand and upgrade the resource, only one hole did not intersect the magnetite-rich layer confirming the excellent continuity of the Gulcari "A" deposit. Twenty of the 42 holes returned intersections that significantly exceeded the average grade (1.35% V2O5) and average true width (25m) of the original deposit. The deposit, which now extends 400m along strike and to a depth of 300m, is still open along strike as well as at depth."

Largo President & CEO Mark Brennan commented: "We are delighted with the results of the drilling program which have exceeded expectations. The updated resource estimate, which is in progress, will form the basis for an expanded scoping study including PGMs. Engineering work on the metallurgy is also well advanced."

PGM Exploration

The Gulcari "A" deposit is part of a mineralizing system that extends for 8 kilometres across the property. Results from drilling of the deposit indicate that the PGM mineralization is related to the disseminated sulphides in the massive magnetite zone. The PGM mineralization is significant and consistent throughout the massive magnetite lens with a very high Pt:Pd ratio averaging about 4:1, which is a comparable ratio to the Great Dyke. Of particular interest is Hole FGA-80 which intersected 3.93 g Pt/t and 0.21 g Pd/t (4.14 g PGM/t) over 1.0m in a section with 3-7% sulphides but very low magnetite. This suggests in addition to the magnetite lens, there is excellent potential for outlining higher grade PGM mineralization that may not be directly associated with magnetite.

With drilling on the main deposit complete, exploration has now shifted focus to test other areas along the system including, from north to south, Nova Amparo, Sao Jose and Gulcari "B". Eleven (11) shallow drill holes totalling 1,952 metres have now been completed at Nova Amparo located 4 km to the north of Gulcari "A" to test for PGMs associated with a magnetite lens. The initial indications from this drilling are that there are more sulphides associated with the magnetite at Nova Amparo compared to Gulcari "A". Assay results are pending for these holes.

Additional work in progress includes geological mapping at a scale of 1:2,500 and geophysical (magnetics and induced polarization (IP)) surveys. The magnetic survey has been completed while the IP survey is approximately 60% complete and is expected to be finished in early November. The geophysical work is being directed by Dr. Chris Hale, P.Geo., consulting geophysicist and a Qualified Person as defined under NI 43-101.

Analytical work was carried out by SGS Minerals in Belo Horizonte, Brazil, an ISO 9001-2000 certified laboratory. Largo employs a systematic industry standard QA/QC program including standards, duplicates and blanks. Andy Campbell, P. Geo., Largo's Vice President of Exploration, is the Qualified Person responsible for the scientific and technical work for the program as defined under National Instrument 43-101 and has reviewed this press release.

About Largo

Largo Resources is a Canadian natural resource development and exploration company with two advanced stage projects: the Northern Dancer Tungsten-Molybdenum deposit in the Yukon and the Maracas Vanadium-PGM deposit in Brazil. Largo also has a large (60,000 hectare) land position and prospective gold exploration properties in Ecuador. 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

Statements in this release that are not historical facts are "forward-looking statements" within the meaning of applicable securities laws. Readers are cautioned that any such statements are not guarantees of future performance and those actual developments or results may vary materially from those in these "forward-looking statements".



Table 1: Summary of Significant Assay Results - Maracas Property, Brazil

---------------------------------------------------------------------
Hole From To V2O5 Pt Pd PGM Interval True
Number % (g/t) (g/t) (g/t) (metres) thick
-ness
(m)
---------------------------------------------------------------------
FGA72 211.55 224.60 1.30 0.12 0.08 0.20 13.05 12.0
and 229.90 239.15 1.43 0.13 0.11 0.24 9.25 9.0
and 249.15 268.15 1.06 0.04 0.05 0.09 19.00 18.0
---------------------------------------------------------------------
FGA73 128.60 148.00 2.81 0.54 0.05 0.59 19.40 17.5
and 151.46 195.46 1.62 0.24 0.10 0.34 44.00 40.0
---------------------------------------------------------------------
FGA74 136.38 175.38 1.86 0.24 0.03 0.27 39.00 39.0
including 148.38 173.38 2.15 0.21 0.04 0.25 25.00 25.0
---------------------------------------------------------------------
FGA75 181.00 216.89 1.19 0.05 0.04 0.09 35.00 35.0
---------------------------------------------------------------------
FGA76 89.00 118.00 1.43 0.08 0.06 0.14 29.00 29.0
including 105.00 118.00 1.93 0.09 0.08 0.17 13.00 13.0
and 128.00 135.00 1.32 0.06 0.08 0.14 7.00 7.0
---------------------------------------------------------------------
FGA77 127.50 145.42 2.37 0.22 0.03 0.25 17.92 17.9
---------------------------------------------------------------------
FGA78 106.95 117.40 0.68 0.08 0.07 0.15 10.45 9.0
---------------------------------------------------------------------
FGA79 148.75 221.00 1.60 0.26 0.06 0.32 72.25 70.0
including 150.00 191.00 2.32 0.35 0.08 0.43 41.00 38.0
---------------------------------------------------------------------
FGA80 22.00 23.00 0.38 3.93 0.21 4.14 1.00 1.0
and 83.70 90.70 0.69 0.07 0.04 0.11 7.00 7.0
and 94.70 98.70 1.02 0.09 0.11 0.20 4.00 4.0
and 114.10 118.10 1.22 0.09 0.08 0.17 4.00 4.0
---------------------------------------------------------------------
FGA82 No significant results
---------------------------------------------------------------------
FGA83 134.00 152.93 1.77 0.23 0.21 0.44 18.93 18.9
including 139.00 152.93 1.99 0.26 0.25 0.51 13.93 13.9
and 159.72 172.72 1.18 0.05 0.06 0.11 13.00 13.0
---------------------------------------------------------------------
FGA86 178.50 191.16 1.43 0.01 0.02 0.03 12.66 10.0
and 241.00 247.45 1.45 0.19 0.14 0.33 6.45 5.0
and 259.00 265.00 1.28 0.06 0.02 0.08 6.00 5.0
and 276.00 298.00 1.54 0.33 0.19 0.52 22.00 20.0
---------------------------------------------------------------------
FGA87 244.50 259.83 1.93 0.16 0.21 0.37 15.33 15.3
and 267.00 289.00 1.82 0.19 0.22 0.41 22.00 22.0
and 306.00 323.00 0.86 0.05 0.06 0.11 17.00 17.0
---------------------------------------------------------------------
FGA88 177.10 183.10 1.02 0.13 0.10 0.23 6.00 6.0
and 303.10 308.10 1.07 0.25 0.16 0.41 5.00 5.0
---------------------------------------------------------------------
FGA89 297.00 356.00 2.11 0.19 0.07 0.26 59.00 59.0
including 302.00 338.00 2.40 0.20 0.07 0.27 36.00 36.0
---------------------------------------------------------------------
FGA90 279.00 293.00 1.05 0.09 0.07 0.16 14.00 14.0
---------------------------------------------------------------------
FGA91 285.60 294.60 1.32 0.21 0.10 0.31 9.00 9.0
---------------------------------------------------------------------
FGA92 249.00 270.00 0.99 0.07 0.05 0.12 21.00 21.0
---------------------------------------------------------------------
FGA93 264.00 278.00 1.94 0.24 0.18 0.42 14.00 14.0
and 299.00 309.00 1.31 0.10 0.07 0.17 10.00 10.0
---------------------------------------------------------------------
FGA94 204.50 242.12 1.44 0.09 0.05 0.14 37.62 35.0
and 269.00 281.00 1.12 0.08 0.05 0.13 12.00 10.0
---------------------------------------------------------------------
and 292.47 298.00 1.28 0.07 0.06 0.13 5.53 5.0
---------------------------------------------------------------------
FGA95 268.80 336.00 1.46 0.11 0.10 0.21 67.20 65.0
including 268.80 284.60 2.24 0.09 0.09 0.18 15.80 15.8
---------------------------------------------------------------------
FGA96 283.84 290.00 0.81 0.08 0.04 0.12 6.16 6.1
---------------------------------------------------------------------
FGA97 142.73 193.00 1.83 0.28 0.19 0.47 50.27 50.2
including 143.73 173.00 2.26 0.34 0.16 0.50 29.27 29.2
and 218.00 228.00 1.40 0.30 0.30 0.60 10.00 10.0
---------------------------------------------------------------------
FGA98 175.00 187.00 0.80 0.20 0.06 0.26 12.00 12.0
---------------------------------------------------------------------
FGA99 224.00 233.00 1.38 0.10 0.11 0.21 9.00 9.0
and 237.00 241.00 1.55 0.06 0.04 0.10 4.00 4.0
---------------------------------------------------------------------




Drill hole Information - Maracas Property, Brazil

-----------------------------------------------------------
Hole Number Northing Easting Elevation Azimuth Dip
-----------------------------------------------------------
FGA 72 8,486,020 318,336 296.00 290 -45
FGA 73 8,486,130 318,435 299.00 290 -50
FGA 74 8,486,130 318,435 299.00 290 -80
FGA 75 8,486,033 318,288 293.99 290 -45
FGA 76 8,486,011 318,281 293.68 290 -55
FGA 77 8,486,145 318,429 297.82 290 -60
FGA 78 8,486,000 318,320 295.64 290 -65
FGA 79 8,486,133 318,478 300.03 290 -60
FGA 80 8,485,941 318,301 294.70 290 -60
FGA 82 8,486,201 318,926 298.99 290 -60
FGA 83 8,486,065 318,380 298.05 290 -65
FGA 86 8,486,048 318,432 302.00 290 -65
FGA 87 8,486,079 318,523 305.00 290 -65
FGA 88 8,486,055 318,479 309.00 290 -65
FGA 89 8,486,051 318,620 304.00 290 -65
FGA 90 8,485,993 318,498 309.00 290 -65
FGA 91 8,486,106 318,594 300.00 290 -60
FGA 92 8,485,991 318,430 301.00 290 -60
FGA 93 8,486,007 318,530 304.00 290 -65
FGA 94 8,485,968 318,412 301.00 290 -65
FGA 95 8,486,068 318,567 301.41 290 -65
FGA 96 8,486,129 318,531 304.10 290 -60
FGA 97 8,486,130 318,435 298.00 290 -65
FGA 98 8,486,020 318,402 296.00 290 -73
FGA 99 8,485,955 318,465 302.00 290 -65
-----------------------------------------------------------


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