Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

November 24, 2009 18:07 ET

Largo Options the Currais Novos Tungsten Project in Rio Grande do Norte, Brazil

- Company targets potential near-term production of tungsten and molybdenum - Discussions with a major end user of tungsten and molybdenum for an off-take agreement and financing assistance are underway - Development of Currais Novos is part of a partnership strategy to accelerate development of the Northern Dancer tungsten project

TORONTO, ONTARIO--(Marketwire - Nov. 24, 2009) - Largo Resources Ltd. (TSX VENTURE:LGO) is pleased to announce that it has signed an option agreement with Emprogeo Ltda. ("Emprogeo"), to acquire the Currais Novos Tungsten project. The project envisions the reprocessing and recovery of tungsten and molybdenum from tailings deposited during the processing of ore from the Barra Verde tungsten-molybdenum mine that has operated intermittently since 1957.

In addition, Largo is pleased to report that it is in advanced discussions with a major end user of tungsten with respect to collaboration on the Currais Novos Tungsten project, subject to favourable due diligence and an economic evaluation.

Mark Brennan, President and CEO of Largo, stated: "We are very excited with the prospects for Currais Novos. We have conducted initial due diligence that indicates potentially attractive economics over a 5 year period at current prices as well as a moderately short start-up period. The development of the Currais Novos tungsten project is part of Largo's strategy to work with a major end user of tungsten to bring the Northern Dancer project to production."

The Currais Novos property is located 180 kilometres west-southwest of Natal in the State of Rio Grande do Norte, Northeastern Brazil (see attached location map below). The project is in the municipality of Currais Novos, on the Campina Grande-Natal highway, about 6 km. south of the city of Currais Novos.

The 148 hectare property consists of one (1) concession on which the tailings are situated. No compliant NI 43-101 resource exists for the tailings material. Preliminary samples taken by Largo resulted in grade estimates of approximately 0.15% WO3 and 0.05% molybdenum which are within the range estimated by the current owners. The potential grade is conceptual in nature since there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

Upon the signing of the respective acquisition agreement, Largo shall have the option to acquire a 100% interest in the tailings, subject to the terms and conditions set forth therein, for a purchase price of US$500,000 payable in instalments over a 6-month period commencing in January 2010, subject to satisfactory due diligence.

Largo plans to use the due diligence period to establish a NI 43-101 compliant mineral resource for the tailings and also to carry out testwork to establish its process and metallurgical characteristics. In addition, all necessary title, legal, environmental and marketing aspects will be reviewed. Based on the estimated source and apparent nature of the Currais Novos tailings, Largo believes that there is potential for near-term production of tungsten and molybdenum concentrates.

The Currais Novos property is underlain by a portion of the Serido Mobile Belt (SMB) which is located in northeastern Brazil and consists of a gneiss basement (Paleo-Proterozoic), a metasedimentary sequence (marble, quartzites, and schists), and the Brasiliano igneous suite (both of Neo-Proterozoic age). In this region, numerous mineralized skarns occur within marble and at the marble-schist contact in the metasedimentary sequence and have been known since at least the 1940s. The main characteristic of the SMB skarns is that they are dominantly oxidized tungsten skarns and several mines currently operate on a small scale in this part of northeastern Brazil producing tungsten concentrate.

Timothy Mann, P. Eng.,Vice President, Engineering of the Company and a Qualified Person under NI 43-101, has reviewed the scientific and technical information in this press release.

About Largo

Largo Resources Ltd. 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 effect of the option agreement on the Company, the likelihood that discussions with major end user of tungsten will progress to a definitive agreement, estimates regarding the two tailings piles and material, the accuracy of preliminary samples taken by Largo and resulting grade estimates that are conceptual in nature, the likelihood of validating the tonnage of the tailing and the completion of an NI 43-101 compliant estimate of the tungsten and molybdenum mineral resource, the likelihood of satisfactory due diligence and reaching a definitive agreement, Largo's development potential and timetable of the Northern Dancer project; the Largo's ability to raise additional funds necessary; the future price of tungsten and molybdenum; the estimation of mineral reserves and mineral resources; the timing and amount of estimated future exploration; costs of future activities; success of exploration activities; 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 mineral resources are based on extensive analysis regarding exploration information obtained for diverse sources, including drill results; such analysis being conducted by company geologists and verified by third party 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. 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 Company does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

To view the map associated with this release, please visit the following link: http://media3.marketwire.com/docs/LGO1124.pdf

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