Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

March 28, 2006 16:15 ET

Largo Closes Private Placement Financing

TORONTO, ONTARIO--(CCNMatthews - March 28, 2006) -

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

Company to embark on growth path with mature assets

Largo Resources Ltd. (TSX VENTURE:LGO) has closed a non brokered private placement through the issuance of 13,100,000 Units and 6,900,000 Flow Through Units, both priced at $0.10 for total gross proceeds of $2,000,000. Each Unit consisted of one common share and one common share purchase warrant. Each whole warrant entitles the holder to purchase a common share at a price of $0.13 until March 28, 2008. Each Flow Through Unit consisted of one common share and one common share purchase warrant. Each whole warrant entitles the holder to purchase a common share at a price of $0.13 until March 28, 2008. Each of the common shares, flow through shares and common share purchase warrants are subject to a hold period that will expire on July 29, 2006.

The gross proceeds will be used for development of the Company's assets and for general working capital.

Stated Mark Brennan, President and CEO, "We have spent the period between April and October of last year focusing upon the optimal development strategy for the Macuchi property. We are very encouraged with results of the program but feel it necessary to augment Macuchi with more mature assets." He continued, "We have spent the last three to four months looking for large, mature assets that we can exploit more readily. We hope to be able to provide investors with evidence of the execution of this strategy in the very near term."

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.

About Largo

Largo Resources Ltd. is a Canadian listed mineral resource exploration and development company. The Company is focused upon creating shareholder value through developing exploration properties and acquiring undervalued mining assets throughout the America's.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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