Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

December 12, 2007 09:36 ET

Largo Commences Feasibility Study for Maracas Vanadium-PGM Project (Brazil)

- Strong team assembled, led by Aker Kvaerner of Toronto, Ontario - Identification of long-lead items for construction has commenced - Feasibility study is estimated for completion by early 3rd quarter 2008 - Targeted full production in First quarter of 2010

TORONTO, ONTARIO--(Marketwire - Dec. 12, 2007) - Largo Resources Ltd. (TSX VENTURE:LGO) is pleased to announce that a Feasibility Study has been formally initiated on the Company's Maracas Vanadium-PGM property in Bahia, Brazil. The Feasibility Study will be managed and led by Aker Kvaerner of Toronto, Ontario.

Testwork for the Feasibility Study has been in progress for some time, with the majority of the metallurgical testwork being undertaken by SGS Lakefield. Largo has assembled a very competent team to complete the Feasibility Study, the members of which are summarized below.



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Area of Responsibility Consultant
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Compilation of Feasibility Study and Aker Kvaerner
National Instrument 43-101 Report
compliant summary report
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Mineral resource Micon International of Toronto
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Mining NCL Brasil of Belo Horizonte, Brazil
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Process - beneficiation ECM S. A. of Belo Horizonte, Brazil
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Process - hydrometallurgical Aker Kvaerner
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Process - ferrovanadium Mintec of the Republic of South
Africa
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Infrastructure Aker Kvaerner and ECM S. A. of Belo
Horizonte, Brazil
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Geotechnical, earthworks and tailings VOGBR Recursos Hidricos & Geotechnia
dam of Belo Horizonte, Brazil
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Environmental Brandt Meio Ambiente of Belo
Horizonte, Brazil
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Process and infrastructure capital Aker Kvaerner
costs, operating costs and economic
analysis
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The Feasibility Study is estimated for completion by early 3rd quarter 2008. Environmental permitting for the project has been initiated with the submission of the requisite environmental preliminary documentation .

Largo has commenced the process of identifying long-lead items for construction including the procurement of the primary ball mills. Largo's current schedule calls for delivery of the mills to be secured in January 2008, when detailed engineering for the mills will commence. This schedule will allow construction to commence in late 2008 continuing into 2009 to allow full production in the first quarter of 2010.

About Largo

Largo Resources is a Canadian natural resource development and exploration company with two advanced stage projects: the Maracas Vanadium-PGM deposit in Brazil and the Northern Dancer Tungsten-Molybdenum deposit in the Yukon. Largo also has a large (60,000 hectare) land position and prospective gold exploration properties in Ecuador. 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

Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information is identified by words such as "estimates", "intends", "expects", "believes", "may", "will" and include, without limitation, statements regarding the company's plan of business operations, timing of feasibility study, acquisition of equipment an d commencement of production. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, risks inherent in the mining industry, financing risks, labour risks, resource estimates, equipment and supply risks, title disputes, regulatory risks and environmental concerns. Most of these factors are outside the control of the company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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