Largo Resources Ltd.

Largo Resources Ltd.

January 27, 2010 14:33 ET

Largo Resources Announces Extension of Term to Purchase Additional Interest at Its Maracas Project, Brasil From Odebrecht S.A. and Vale S.A.

- Option to purchase remaining 10% interest also extended

TORONTO, ONTARIO--(Marketwire - Jan. 27, 2010) - Largo Resources Ltd. (TSX VENTURE:LGO) ("Largo" or "the Company") is pleased to announce that it has negotiated a formal extension of the term during which it can purchase an additional 40% interest in Companhia de Maracas, the operating company and holder of its Maracas Project, Bahia State, Brazil from Odebrecht S.A.("Odebrecht") and Vale S.A. ("Vale") to March 31, 2010. In addition the Company has extended an option to acquire the final 10% interest in Companhia de Maracas held by Odebrecht and Vale to June 30, 2010.

Largo currently holds a 46.5% interest in Companhia de Maracas and Largo's partner at Maracas, Metais Nao Ferrosos Da Bahia Ltda. ("MNFB"), holds a 4.5% interest in Companhia de Maracas. Through these extensions, Largo maintains its ability to acquire up to a 90% interest in Companhia de Maracas and MNFB maintains its ability to acquire up to a 10% interest.

In consideration for these extensions, the Company has made an initial deposit of US$250,000 to Vale and Odebrecht that will be counted towards the payment of US$5 million plus interest that Largo will have to make by March 31st, 2010 for Largo and MNFB to acquire an additional 40% interest in Companhia de Maracas. In order for Largo and MNFB to acquire the final 10% interest in Companhia de Maracas, Largo must make a US$8 million payment to Odebrecht and Vale prior to June 30, 2010. If Largo completes both payments, it shall hold a 90% interest in Companhia de Maracas and MNFB will hold a 10% interest.

Mark Brennan, Largo's President and CEO, stated: "We are very appreciative to Odebrecht and Vale for their support and understanding over the past year. It has been an extremely volatile period but we are now very optimistic about the road ahead."

In addition, Largo announces that it has granted a total of 4,150,000 options to various officers, directors, consultants and employees under the stock option plan of the Company. The options are exercisable at $0.24 per option and expire on January 27, 2015. The options shall vest immediately subject to the four month regulatory hold period. The grant of options remains subject to regulatory approval.

About Largo

Largo Resources Ltd. 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 also owns the Campo Alegre de Lourdes Vanadium exploration project in Brazil. The company is listed on the TSX Venture Exchange under the symbol LGO.

For more information please refer to Largo's website:


This press release contains forward-looking statements under Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to effect of the extension on the Corporation and the likelihood of the extension being met, and Largo's ability to raise additional funds necessary. 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. 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 Largo to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to: timing and availability of external financing on acceptable terms; unexpected events and delays during construction, expansion and start-up; variations in ore grade and recovery rates; receipt and revocation of government approvals; 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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