Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

January 25, 2008 09:30 ET

Largo Arranges Private Placement Financing

TORONTO, ONTARIO--(Marketwire - Jan. 25, 2008) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

Largo Resources Ltd. (TSX VENTURE:LGO) has agreed to sell 5,454,545 flow-through units at a price of $0.55 per unit. MineralFields Group has agreed to acquire the entire financing, subject to certain pre-closing conditions. Each unit will be comprised of one flow-through common share and one-half of one share purchase warrant (each whole share purchase warrant, a "Warrant"). Each Warrant shall be exercisable for one common share at a price of $0.80 at any time prior to the date that is 18 months from the date of issue.

Mark Brennan, the President and Chief Executive Officer of Largo, commented, "we are pleased to lock in this financing with MineralFields Group. We plan to use the proceeds from this flow-through financing to continue our exploration program at the Northern Dancer Property in the Yukon."

The Northern Dancer deposit is one of the world's largest known tungsten-molybdenum porphyry systems. The mineralization is hosted in fractures and veins associated with a northeast-trending sheeted vein system in calc-silicate (skarn) rocks and spatially related to a felsic intrusion (quartz-feldspar porphyry). The deposit, which has been tested by drilling of 750 metres along strike, 500 metres vertically and 600 metres in width, remains open along strike to both the northeast and southwest as well as at depth.

Upon closing of the financing, Largo shall pay First Canadian Securities® a 6.5% cash finder's fee and 381,818 compensation options. Each compensation option will entitle First Canadian Securities® to acquire one compensation unit at a price of $0.55 per compensation option exercised at any time prior to the date that is 18 months from the date of issue. Each compensation unit shall be comprised of one non-flow-through common share and one-half of one Warrant.

The financing is subject to regulatory approval and all securities issued in connection with the financing will be subject to a four-month regulatory hold period.

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. 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.

About MineralFields, Pathway and First Canadian Securities®

MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds. Information about MineralFields Group is available at www.mineralfields.com First Canadian Securities® is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, with investors both within, and outside of, MineralFields Group".

Cautionary Notes

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.

Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information is identified by words such as "estimates", "intends", "expects", "believes", "may", "will" and include, without limitation, statements regarding the company's plan of business operations, use of proceeds, closing of the financing and receipt of regulatory approval. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, risks inherent in the mining industry, financing risks, unreliability of resource estimates, and regulatory risks. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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