Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

March 06, 2008 17:15 ET

Largo Completes Private Placement Financing

TORONTO, ONTARIO--(Marketwire - March 6, 2008) -

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

Largo Resources Ltd. (TSX VENTURE:LGO) is pleased to announce that it has closed the remaining $1 million tranche of its previously announced $3 million financing, pursuant to which it has issued 1,818,181 flow-through units at a price of $0.55 per unit.

Each unit was comprised of one flow-through common share and one-half of one share purchase warrant (each whole share purchase warrant, a "Warrant"). Each Warrant is exercisable for one common share at a price of $0.80 at any time prior to March 6, 2010.

In connection with the financing, Largo has paid First Canadian Securities® a 6.5% cash finder's fee and issued 127,272 compensation options. Each compensation option will entitle First Canadian Securities® to acquire one compensation unit at a price of $0.55 per compensation option exercised at any time prior to March 6, 2010. Largo notes that the compensation units granted in connection with the first tranche of this financing will expire on February 7, 2010. Each compensation unit shall be comprised of one non-flow-through common share and one-half of one Warrant.

All securities issued in connection with the financing are subject to a four-month statutory hold period.

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.

Cautionary Notes

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 and use of proceeds. 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, risks inherent in the mining industry, financing risks, unreliability of resource estimates, and regulatory risks. 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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