Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

July 31, 2009 10:32 ET

Largo Resources Closes Flow Through Private Placement Financing

TORONTO, ONTARIO--(Marketwire - July 31, 2009) -

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

Largo Resources Ltd. (TSX VENTURE:LGO) (the "Corporation") is pleased to announce that it has closed a $510,000 financing pursuant to which it has issued 5,100,000 flow-through units at a price of $0.10 per unit. Each unit was comprised of one flow-through common share and one-half of one share purchase warrant (each whole share purchase warrant, a "Warrant"). Each Warrant is exercisable for one common share at a price of $0.15 at any time prior to January 31, 2011.

In connection with the financing, Largo has paid First Canadian Securities® a 6.0% cash finder's fee and issued 180,000 compensation options for the MineralFields portion of the financing. Each compensation option entitles First Canadian Securities® to acquire one compensation unit at a price of $0.10 per compensation option exercised at any time prior to January 31, 2011. Each compensation unit shall be comprised of one non-flow-through common share and one-half of one Warrant.

All securities issued in connection with the financing are subject to a four-month statutory hold period. The financing remains subject to receipt of applicable regulatory approvals including final approval of the TSX Venture Exchange.

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 information" within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements with respect to the future financial or operating performance of the Company, the prospective mineralization of the properties, planned exploration programs, anticipated production schedule and terms, availability and likelihood of future acquisitions. Generally, forward looking information 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 state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; acquisition risks; and other risks of the mining industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information 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 information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Neither the TSX Venture Exchange (nor its Regulatory Service Provider) accepts responsibility for the adequacy or accuracy of this release.

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