Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

September 10, 2007 13:33 ET

Largo Reports Progress on PGM Recovery Testwork for the Maracas Vanadium-PGM Project (Bahia, Brazil)

- Platsol testwork on whole ore exceeded 80% recovery for both platinum and palladium - Economic evaluation of PGMs and identification of potential purchasers of PGM concentrate underway - Scoping-level PGM testwork program completed by SGS Mineral Services

TORONTO, ONTARIO--(Marketwire - Sept. 10, 2007) - Largo Resources Ltd. (TSX VENTURE:LGO) is pleased to announce that a scoping-level program of testwork to evaluate the potential viability of PGM recovery at its Maracas Vanadium Project (Bahia, Brazil) has been completed by SGS Mineral Services in Lakefield, Ontario Canada (SGS).

SGS has completed a program of testwork that included the following significant results:

- Flotation testwork, which resulted in the production of a concentrate with approximately 52 g/t platinum and 9 g/t palladium. A flowsheet involving a two-stage mill-float process has been proposed. The economics based on projected recoveries are being evaluated.

- Platsol testwork on whole ore that exceeded 80% recovery for both platinum and palladium after regrinding. SGS has proposed testwork to establish the effectiveness of the Platsol process on flotation concentrate and the economic sensitivity of the process to concentrate recovery and regrind costs.

SGS commented that the testwork demonstrates that PGMs could be recovered either through a concentration process, Platsol process or combination of these processes.

The PGM metallurgical test results have been forwarded to Micon International for their review and economic assessment. Micon has been mandated to produce a Revised Scoping Study based on a revised mineral resource and assessment of the PGMs. As a result of Largo's 2007 drill program at Maracas, the existing mineral resource is anticipated to significantly increase and result in an enhancement of the overall project economics. Also, Largo is in active discussions with several smelters to establish the value of the PGM concentrate should this process route offer the best economic returns. These conclusions will be reflected in the Revised Scoping Study.

Tim Mann, P.Eng., Vice President of Engineering commented: "We are pleased with the results of the PGM testwork and with the overall pace and progress on the engineering studies being carried out for our Maracas project ".

As noted above, analytical work and testwork was carried out by SGS Minerals in Lakefield, Ontario Canada. Tim Mann, P. Eng., Largo's Vice President of Engineering, 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.

About Largo

Largo Resources is a Canadian natural resource development and exploration company with two advanced stage projects: the Northern Dancer Tungsten-Molybdenum deposit in the Yukon and the Maracas Vanadium-PGM deposit in Brazil. Largo also has a large (60,000 hectare) land position and prospective gold exploration properties in Ecuador; one of which, the 5,000 hectare Macuchi property, is under option to Aur Resources Inc. 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

Statements in this release that are not historical facts are "forward-looking statements" within the meaning of applicable securities laws. Readers are cautioned that any such statements are not guarantees of future performance and those actual developments or results may vary materially from those in these "forward-looking statements".

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