Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

May 14, 2009 07:00 ET

Largo Receives Critical License for Maracas Vanadium Project (Brazil)

Localization license is the most critical of the required licenses as it confirms that the project can be "located"

TORONTO, ONTARIO--(Marketwire - May 14, 2009) - Largo Resources Ltd. (TSX VENTURE:LGO) is pleased to announce that the Environmental State Council of Bahia, the Conselho Estadual de Meio Ambiente ("CEPRAM") has granted the Localization License ("Licenca de Localizacao" or "LL") for its Maracas Vanadium Project, in Bahia State, Brazil. The approval was confirmed today by publication in the Official Gazette of the state of Bahia.

Stated Mark Brennan, President and CEO of Largo Resources, "I am very proud of our technical team for achieving this milestone. The team has taken an asset with a non-compliant resource and has received the critical permit within two and a half years. " He added, "The Company will now explore financing opportunities and complete the required work for obtaining the Installation License."

There are three licenses issued by CEPRAM that are necessary to bring a mine into production in the state of Bahia (Brazil).

The Localization License ("LL") is the most critical license. Receipt of this license allows the rest of the licensing process to proceed, and confirms that the project can be "located" (hence "localization license"), developed and operated as proposed. The Environmental Impact Assessment (EIA) and Environmental Impact Report (RIMA) are completed as part of this process. The process for obtaining the LL involved the participation of the public and any NGOs who wished to participate through public meetings. The Instituto do Meio Ambiente (IMA), the Bahia state environmental agency, hosted these meetings in February 2009 in Maracas and Porto Alegre, which are two towns located in the vicinity of the project site. Following this, IMA submitted the project to Conselho Estadual de Meio Ambiente (CEPRAM), an independent body, who at their April 2009 monthly meeting endorsed IMA's recommendation that the LL be granted. The LL is a very critical step in the environmental permitting process and concludes the active participation of the public.

The Installation License (LI) involves an approval process involving only Largo and the aforementioned government agencies. The process includes the submission of more details of the project and a detailed description of the proposed environmental management system that was outlined in the LL documentation previously submitted.

The Operating License (LO) is granted during the final stages of commissioning and involves a site inspection by IMA, with the likely participation of CEPRAM, to confirm that the project has been constructed as planned and in accordance with the LI.

In addition, Largo announces that it has granted a total of 4,225,000 options to various officers, directors, consultants and employees under the stock option plan of the Company. The exercise price for the options will equal the closing price for Largo common shares on the TSX Venture Exchange on May 15, 2009. The options will have a five-year term and will vest immediately subject to the four month regulatory hold period. The grant of options remains 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. 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

This press release contains forward-looking statements under Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to Largo's development potential and timetable of the Maracas project; the ability of Largo to receive the remaining licences and permits, Largo's ability to raise additional funds necessary to complete the project; the future price of ferrovanadium and vanadium pentoxide; the estimation of mineral reserves and mineral resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Estimates regarding the anticipated timing, amount and cost of mining at the Maracas project are based on assumptions underlying mineral reserve and mineral resource estimates and the realization of such estimates; detailed research and analysis completed by independent consultants; research and estimates regarding the timing of delivery for long-lead items; knowledge regarding the factors involved in building a mine in Brazil and other factors that will be described in the technical report summarizing the Feasibility Study that will be filed under the profile of the Company on SEDAR.
Capital and operating cost estimates are based on extensive research of the Largo and independent consultants, recent estimates of construction and mining costs and other factors that are set out in the Feasibility Study. Production estimates are based on mine plans and production schedules, which have been developed by the Largo's personnel and independent consultants. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Largo to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to: unexpected events and delays during construction, expansion and start-up; variations in ore grade and recovery rates; receipt and revocation of government approvals; timing and availability of external financing on acceptable terms; actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of ferrovanadium; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry. Although management of the Largo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

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