Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

September 16, 2010 09:52 ET

Largo Closes Equity Financing

TORONTO, ONTARIO--(Marketwire - Sept. 16, 2010) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. NEWS WIRE SERVICES

Largo Resources Ltd. (TSX VENTURE:LGO)("Largo" or the "Company") is pleased to announce that it has closed its previously announced equity financing (the "Offering"). The Offering consisted of 29,397,055 units of the Company (the "Units") sold at $0.17 per Unit, of which 11,161,764 Units were offered pursuant to an agency agreement between the Company and Byron Securities Ltd. and Cormark Securities Inc. (the "Agents"). The remaining Units were sold by the Company on a non-brokered basis. The Offering raised gross proceeds to the Company of approximately $4,997,500, including the full exercise of the Agents' over-allotment option for 1,455,882 Units. Each Unit is comprised of one common share of the Company (each, a "Common Share") and one common share purchase warrant (a "Warrant"). Each Warrant is exercisable for one Common Share at a price of $0.25 any time up until 5:00pm (Toronto time) on September 16, 2011.

The net proceeds raised under the Offering will be used for the advancement of the Company's Maracás Project in Brazil by advancing the licensing process and furthering construction activities and for other corporate purposes.

In consideration for their services, pursuant to the Agency Agreement, the Agents received a cash commission equal to $132,825 and 781,323 broker warrants that will entitle them to acquire an equal number of Units at a price of $0.17 per Unit on or before September 16, 2011.

This press release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Common Shares or Warrants in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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.

FORWARD LOOKING INFORMATION

This document may contain or refer to forward looking information within the meaning of applicable securities laws, based on current expectations, including, but not limited to, proposed use of proceeds, ability to attract financing, regulatory approvals, ability to complete the Offering, and future exploration expenses and plans. Forward looking information is subject to significant risks and uncertainties, including those risks identified in the annual information form of the Company, which is available under the profile of the Company on SEDAR, and other factors that could cause actual results to differ materially from expected results. Estimates and assumptions underlying the future-looking information are based upon negotiations between the Company and prospective investors, extensive technical and scientific analysis conducted by the management of the Company, and information obtained by the Company from third parties. Readers should not place undue reliance on forward-looking information. Forward looking information is provided as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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