Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

March 25, 2011 08:42 ET

Largo Announces Increase to Previously Announced Equity Offering to $115 Million

TORONTO, ONTARIO--(Marketwire - March 25, 2011) - Largo Resources Ltd. (TSX VENTURE:LGO) ("Largo") is pleased to announce an increase to its previously announced private placement equity offering of CDN $110 million to up to approximately CDN $115 million. The CDN $5 million increase will be generated through the issuance of additional subscription receipts ("Subscription Receipts") at a price of $0.35 per Subscription Receipt bringing the expected total aggregate gross proceeds from Subscription Receipts to approximately $85,000,000. Upon satisfaction of certain escrow release conditions, the Subscription Receipts will be automatically exercisable, with no further action on the part of the holder, into Units (as defined below).

The first portion of the private placement will remain unchanged and will consist of the issuance of units (each a "Unit") at a price of $0.35 per Unit aggregate proceeds to Largo of $30,000,000 with each Unit consisting of one common share and one-third of one common share purchase warrant (a "Warrant") where each whole Warrant will entitle the holder to acquire one further common share at a price of $0.50 for a period of 48 months from the date of issue.

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

Disclaimer

This press release contains forward-looking information under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to completion of the private placement, Largo's development potential and timetable of the Maracas and Northern Dancer projects; Largo's ability to raise additional funds necessary; the future price of tungsten and molybdenum; the estimation of mineral reserves and mineral resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; 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. 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, including but not limited to those risks described in the annual information form of Largo and in its public documents filed on SEDAR from time to time. Although management of 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.

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