Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

February 20, 2008 17:15 ET

Largo Intersects 0.83 g/t PGMs Over 20 Metres; Discovers New High Priority PGM Targets at Maracas, Brazil

- 8 of 11 holes intersected significant PGM values over significant true widths - New parallel trend identified covering much of the 8km property - 5,000 meter Phase II PGM drilling program to begin in March

TORONTO, ONTARIO--(Marketwire - Feb. 20, 2008) - Largo Resources Ltd. (TSX VENTURE:LGO) announced today diamond drilling results from its initial Phase I PGM (Platinum Group Metals) exploration program undertaken following successful definition of the Gulcari "A" Vanadium deposit (now in feasibility-see press release of December 12, 2007) at its Maracas project in Brazil. To date, Largo has outlined a measured and indicated mineral resource of 208,000 ounces of PGMs at Gulcari "A", within 22.5 million tonnes with an average grade of 0.30 g/t PGM (see press release of December 7, 2007 for details regarding this resource estimate).

Largo has identified high priority PGM targets during ongoing exploration work including petrographic and analytical studies, geological mapping and sampling, magnetic and Spectral Induced Polarization (IP) surveys, and diamond drilling. Target selection is underway to begin the Phase II 5,000 meter drill program in March, 2008.

Mark Brennan, President & CEO of Largo Resources, stated "The initial exploration program at Maracas for PGM's outlined below provides strong encouragement that there is very good potential for adding significantly to the 208,000 ounces of PGM's that Largo has currently estimated." He continued, "Largo's current PGM resource is contained within the Gulcari "A" deposit which is only 400 meters in length. Maracas has three trends each covering much of the 8 km length of the property that have very similar attributes to those at Gulcari "A".

New Diamond Drill Results

Initial drilling of 11 exploration holes (totalling 1,846 meters) at the Novo Amparo target, located 4 km north of Gulcari "A", has confirmed significant true widths of PGM mineralization with high Pt:Pd ratios in eight of these holes.

Highlights from the new drilling include:

- FNA14 - 19.92 metres true width at 0.83 g PGM/t (0.57 g Pt/t and 0.26 g Pd/t) and 0.83% V2O5

- FNA15 - 25.11 metres true width grading 0.66 g PGM/t (0.45 g Pt/t and 0.21 g Pd/t) and 0.76% V2O5

- FNA13 - 26.18 metres true width grading 0.65 g PGM/t (0.52 g Pt/t and 0.13 g Pd/t) and 0.70% V2O5

The purpose of the initial program at Novo Amporo was to evaluate the PGM potential of the massive magnetite mineralization. Sporadic sampling by previous owners during a drill program in the 1980s indicated potential for PGMs but it was not systematic. Results from Largo's recent program show that 8 of 11 holes yield PGM values over significant widths. The mineralization is associated with increased sulphide content. Largo believes that this unique style of PGM mineralization is consistent throughout the massive magnetite lens. A high Pt: Pd ratio has been maintained throughout all of the intersections.

Novo Amparo lies 4 kilometres north of the Gulcari "A" deposit on a parallel eastern trend. Drilling and ground geophysics show that it extends 270 metres along strike, to a vertical depth of over 100 metres. True widths range from 4 to 26 metres with an average width of about 14 metres. Novo Amparo remains open along strike to the south and at depth. It is part of the same mineralized trend as the Sao Jose and Gulcari "B" showings. The initial indication from the drilling suggests that more sulphides are associated with the massive magnetite layer at Nova Amparo than at Gulcari "A" where 208,000 ounces of PGM's have been estimated. Results are pending for the 5 regional holes testing parts of the geophysical targets.

Petrographic and analytical studies have confirmed that the property exhibits a unique style of PGM mineralization. The mineralization consists of fine disseminated sulphides hosted in the massive magnetite layers. The PGMs are associated with the fine disseminated sulphides interstitial to the coarse magnetite and ilmenite grains that form massive oxide layers.

The ground magnetic survey has identified three parallel trends that cross eight km of the property. Two of these, the "Gulcari "A" and "Gulcari-B-Sao Jose-Novo Amparo" trends host the known deposits and occurrences. The third trend is a new and untested discovery.

The Total Field Magnetic Map can be viewed via the following link to Largo's website:

http://www.largoresources.com/maps/mag.htm

Using Spectral IP, a technique that can distinguish between metallic mineral grains such as magnetite and sulphides, Largo has identified a number of strong hanging wall sulphide anomalies above the massive magnetite layers. These targets are untested by drilling and are presently being followed up. One high priority target is 600 metres northeast of Gulcari "A", on the "Gulcari "A" trend. This strong, 700-metre long anomaly is immediately up section from the magnetite layer. It has not been drill tested. A second IP anomaly on the "Gulcari-B-Sao Jose-Novo Amparo trend" lies 600 metres south of Novo Amparo has not been drilled anywhere along its 900-metre length.

The IP Map can also be viewed via the following link to Largo's website:

http://www.largoresources.com/maps/ip.htm

Dr. Reid Keays, a well known expert in platinum group element (PGE) geochemistry and the development of genetic models and exploration techniques for Ni-Cu-PGE sulphide deposits, has visited the property and collected samples. He has also reviewed the analytical work and petrographic studies. He recently commented "the Fe-Ti-V oxide mineralization on the Maracas property in Bahia, Brazil is the most remarkable of the "unconventional" PGE deposits." He continued to state that "the PGE-rich Fe-Ti-V oxide Maracas mineralization has much higher Pt/Pd ratios than other magnetite rich systems such as those of the Platinova Reefs in the Skaergaard Intrusion (Greenland), Stella (South Africa) or Rincon del Tigre (Bolivia)." Other observations include:

- The PGE mineralization is undoubtedly "magmatic" in origin.

- There is a strong possibility that there is a PGE-rich horizon at a higher stratigraphic interval than that in which the Gulcari A deposit is located.

- There is a great variety of Platinum Group Minerals (PGM) that often form composite grains or clusters.

- It is highly probable that the PGE in the ores were originally hosted by magmatic Cu-(Ni) sulphides.

Preliminary test work done by SGS Minerals on a 68-kg sample of rejects representing the Gulcari "A" deposit indicated values for platinum range from 0.63 to 0.88 g/t and for palladium 0.17 to 0.21 g/t respectively. These results are higher than the drill indicated grade of the massive magnetite lens at Gulcari "A" and Largo believes they better represent the grade at Gulcari "A". More work is needed to confirm the possibility of a nugget effect.

Andy Campbell, P.Geo., Vice President, Exploration commented: "Though exploration for PGMs is at an early stage, we are pleased with the results from the exploration program including the initial drill results at Novo Amparo. This is a unique style of PGM mineralization in that the PGM's are associated with the sulphides hosted in massive magnetite layers. They are not associated with a particular chromite layer as in Bushveld, South Africa. The PGM results continue to be very significant and have a very high platinum-palladium ratio. We are now beginning to better understand the relationship between the massive magnetite zones and the PGM mineralization in this layered ultramafic complex. There is good potential to outline a PGM deposit and further exploration is warranted."

The Maracas deposits are hosted within a sequence of gabbros and pyroxenites of the 2.64 billion-year-old, Jacare River layered mafic-ultramafic intrusion. This sheetlike linear intrusion extends for 70 kilometres along a north-south strike averaging about 1.2 kilometre in width. There are a number of striking similarities to the Great Dyke including age, rock types, platinum and palladium ratio and style of intrusion as well as host rock that it intrudes. The PGMs found thus far are associated with disseminated to massive bodies of titano-magnetite in pyroxenites. This massive, titano-magnetite mineralization at Maracas ranges from 11.0 to 100 metres in thickness with an average true width of 40 metres.

Analytical work was carried out by SGS Minerals in Belo Horizonte, Brazil, an ISO 9001-2000 certified laboratory. Largo employs a systematic QA/QC program including standards, duplicates and blanks. Andy Campbell, P. Geo., Largo's Vice President of Exploration, is the Qualified Person responsible for the scientific and technical work for the program as defined under National Instrument 43-101 and has reviewed this press release.

Option Grant

Largo has granted a total of 1,425,000 options under the stock option plan of the Company to various officers, directors & consultants. The options have an exercise price of $0.50 per option exercised and shall vest immediately subject to the statutory four month hold. The options shall expire on February 19, 2013 and are subject to regulatory approval.

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, production levels and costs, estimates regarding mineral resources, projections regarding mineral prices, anticipated revenues and projected expenditures. 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, uncertainty of mineral 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.



Table 1: Summary of Significant Assay Results - Maracas Property, Brazil

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Hole V2O5 Pt Pd PGM Interval True
Number From To % (g/t) (g/t) (g/t) (metres) thickness (m)
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FNA08 No significant results
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FNA09 55.32 63.62 0.68 0.36 0.20 0.56 8.30 8.30
and 76.55 80.29 1.62 0.80 0.23 0.07 3.74 3.74
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FNA10 74.06 82.91 0.58 0.34 0.16 0.50 8.85 8.85
and 88.20 106.24 0.72 0.32 0.18 0.50 18.04 18.04
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FNA11 No significant results
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FNA12 91.54 103.30 0.78 0.38 0.22 0.60 11.76 11.76
----------------------------------------------------------------------------
FNA13 70.45 96.63 0.70 0.52 0.13 0.65 26.18 26.18
----------------------------------------------------------------------------
FNA14 52.26 72.18 0.83 0.57 0.26 0.83 19.92 19.92
----------------------------------------------------------------------------
FNA15 82.27 107.38 0.76 0.45 0.21 0.66 25.11 25.11
----------------------------------------------------------------------------
FNA16 84.48 90.54 0.80 0.26 0.21 0.47 6.06 6.06
and 95.10 101.56 0.57 0.25 0.10 0.35 6.46 6.46
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FNA17 No significant results
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FNA18 141.30 166.10 0.66 0.32 0.12 0.44 24.80 24.80
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Drill hole Information - Maracas Property, Brazil
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Hole Number Northing Easting Elevation Azimuth Dip
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FNA 08 8,489,900 319,450 340 290 -45
FNA 09 8,489,864 319,450 331 290 -45
FNA 10 8,489,926 319,452 338 290 -50
FNA 11 8,489,799 319,460 339 290 -45
FNA 12 8,489,740 319,433 343 290 -45
FNA 13 8,489,708 319,400 345 290 -60
FNA 14 8,489,708 319,400 345 290 -45
FNA 15 8,489,639 319,410 340 290 -45
FNA 16 8,489,587 319,409 342 290 -45
FNA 17 8,489,675 319,450 331 290 -60
FNA 18 8,489,675 319,450 331 290 -70
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