Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

March 14, 2011 06:00 ET

Largo Announces Extension of Option to Purchase Final 30% of the Northern Dancer Project

TORONTO, ONTARIO--(Marketwire - March 14, 2011) - Largo Resources Ltd. (TSX VENTURE:LGO) is pleased to announce that it has negotiated a formal extension of the term during which it can purchase the remaining 30% interest it does not already own at the Northern Dancer Tungsten-Molybdenum deposit in the Yukon Territory until May 15, 2011 (See press releases March 24, 2010 and March 26, 2009). Largo currently holds a 70% interest in the Northern Dancer project.

Terms of the option require Largo to pay Strategic Metals Ltd. US$5 million for the final 30% interest in the Northern Dancer project. Largo intends to use funds that it anticipates will be accumulated through the exercise of warrants and options that expire in early May to make this payment.

Mark Brennan, President and CEO, commented: "Finalizing the acquisition of the remaining 30% option on the Northern Dancer property is an important next step in Largo's goals for the project. Following our recent announcement of a positive Preliminary Economic Assessment on the project, we look forward to completing the transaction and furthering the development of this world-class tungsten and molybdenum asset."

About Largo

Largo is a Canadian-based mineral resource exploration and development company focused on creating a world leading strategic metals company. The Company currently holds an 80% interest in the Maracás Vanadium Project, a 100% interest in the Currais Novos Tungsten Tailing Project, a 100% interest in the Campo Alegre de Lourdes Iron-Vanadium Project, all in Brazil, and a 70% interest in the Northern Dancer Tungsten-Molybdenum property located in the Yukon Territory, Canada. The immediate goal of the Company is to develop the Maracás Vanadium Project by Q1 2013 and begin production of WO3 concentrate from the reprocessing of tungsten tailings from Currais Novos by June, 2011. Largo has a very skilled management team both in Canada and Brazil with the ability to advance these projects.

Largo is listed on the TSX Venture Exchange under the symbol "LGO".

For more information please refer to Largo's website: www.largoresources.com

Cautionary Statement on Forward Looking Information

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the completion of the acquisition of the remaining interest in the Northern Dancer project, the realization of proceeds from exercise of warrants and options outstanding, and the receipt of necessary approvals. 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 risks inherent in the mining industry and risks described in the public disclosure of the Company which is available under the profile of the Company on SEDAR at www.sedar.com. 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.

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

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