Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

April 23, 2007 13:10 ET

Largo Resources Announces Completion of Private Placement

TORONTO, ONTARIO--(CCNMatthews - April 23, 2007) -

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

Largo Resources Ltd. (TSX VENTURE:LGO)(the "Company") is pleased to announce that it has completed its previously announced private placement of units (the "Units") for aggregate gross proceeds to the Company of $10,009,975 based on the issue and sale of 18,199,955 Units at a price of $0.55 per Unit (the "Offering"), including 9,099,955 Units that were issued pursuant to the exercise by the agency syndicate of an option to increase the size of the Offering. The Offering was completed by a syndicate of agents led by Pacific International Securities Inc. and including PowerOne Capital Markets Limited and Fraser Mackenzie Limited.

Each Unit consists of one common share in the capital of the Company and one half of one transferable common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to purchase one additional common share in the capital of the Company at a price of $0.80, for a period of 18 months following the closing date.

The Agents were entitled to a commission of 6.0% of the gross proceeds raised pursuant to the Offering, which amounted to approximately $600,599. The Agents elected to receive $162,100 of this commission in cash and the remainder in the form of 797,270 commission units (the "Commission Units") at a prescribed value of $0.55 per Commission Unit. The Commission Units have identical terms as the Units. The Agents also received 1,091,997 compensation options (the "Compensation Options") equal to 6.0% of the number of Units issued in connection with the Offering. Each Compensation Option entitles the Agents to purchase one additional common share of the Company at a price of $0.65 per common share for a period of 18 months following the closing date of the Offering.

The net proceeds raised in the Offering will be used to further explore the Company's Northern Dancer Tungsten-Molybdenum deposit in the Yukon and the Maracas Vanadium-PGM deposit in Brazil.

About Largo Resources

Largo Resources is a Canadian natural resource development and exploration company. Largo holds interests in the Northern Dancer Tungsten-Molybdenum deposit in the Yukon and in 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.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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