Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

August 27, 2010 09:06 ET

Largo Resources Receives Formal Extension of Option to Purchase Additional 10% of Maracas Project, Bahia, Brasil

- Largo Announces Bridge Loan

TORONTO, ONTARIO--(Marketwire - Aug. 27, 2010) - Largo Resources Ltd. (TSX VENTURE:LGO) ("Largo or the "Company") is pleased to announce that it has received formal approval to extend the option period for the final 10% interest held by Odebrecht S.A. and Vale S.A to December 31,2010. Terms of the option require Largo to pay Odebrecht S.A. and Vale S.A US$8 million for their combined final interest in the Maracas property.

In addition, Largo announces that it has entered into a Bridge Loan Agreement pursuant to which it has borrowed CAD $750,000 (the "Principal") for exploration and for general corporate purposes (the "Bridge Loan").

The Principal under the Bridge Loan will incur interest at a rate of 12% per year and shall mature twelve months from the closing date of the loan, which is expected to be on or before August 29, 2010 (the "Closing Date"). Pursuant to the terms of the Loan, Largo shall grant the lender a security interest over all the assets of the Company and its subsidiaries and the lender shall have the right at any time up to the date that is three months from the Closing Date to convert up to 50% of the outstanding Principal into units of Largo at a conversion price of $0.17 per unit (each a "Unit"), with each Unit being comprised of one (1) common share of Largo and one half of one common share purchase warrant, exercisable for $0.25 for a period of twelve months from the Closing Date. In addition, as consideration for the loan, Largo shall issue on draw down of the Principal, 500,000 share purchase warrants, each exercisable for one common share at an exercise price of $0.17 for a period of one year from the Closing Date. The Loan remains subject to TSX Venture Exchange Approval.

Largo and the lender have a common director, being Mark Brennan, who is the President, C.E.O and a director of Largo and a director of the lender. Accordingly, the loan will be considered a non-arm's length transaction for the purposes of the TSX Venture Exchange.

About Largo

Largo Resources Ltd. is a Canadian natural resource development and exploration company with three advanced stage projects: the Maracas Vanadium-PGM deposit in Bahia, Brazil, the Currais Novos Tungsten project in Rio Grande de Norte, Brasil and the Northern Dancer Tungsten-Molybdenum deposit in the Yukon, Canada. The Company also owns the Campo Alegre de Lourdes Vanadium exploration project in Brazil. 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 proposed use of proceeds, receipt of regulatory approval; completion of the financing and loan on the terms proposed; Largo's development potential and timetable of the Maracas project; Largo's ability to raise additional funds necessary; and currency exchange rates. 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. 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 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. Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

NEITHER THE TSX VENTURE EXCHANGE (NOR ITS REGULATORY SERVICE PROVIDER) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

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