Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

April 20, 2007 16:55 ET

Largo Resources Announces Signing of Definitive Agreement Regarding Brazilian Vanadium-PGM Deposit

TORONTO, ONTARIO--(CCNMatthews - April 20, 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 entered into a definitive share purchase agreement (the "Purchase Agreement") to acquire a 90% interest in Companhia de Maracas (the "Company") which is currently owned by Odbpar Investimentos S.A. and Companhia Vale Do Rio Doce (collectively, the "Vendors"). The Company holds a 95.38% equity interest in Vanadio de Maracas Ltda., an entity that owns the mining rights for vanadium in respect of a 2,000-hectare property located in the municipality of Maracas, State of Bahia, Brazil. The property is located 813 kilometres northeast of Brasilia, the capital of Brazil, and 250 kilometres southwest of Salvador, the capital of Bahia State.

Pursuant to the Purchase Agreement, Largo must pay to the Vendors US$1 million by April 30, 2007 and an additional US$4 million by May 1, 2008 in order to acquire 50% plus 1 of the issued and outstanding shares of the Company. Largo is required to make a final payment of US$5 million by November 1, 2008 in order to acquire an additional 40% less 1 of the Company's issued and outstanding common shares. Largo has agreed to pay interest of 5.5% per annum to the Vendors in respect of the portion of the purchase price not yet paid.

In connection with the acquisition, Cancap Investments Limited will retain a 2% N.S.R. on the Company and will be issued 300,000 common shares of the Company at a deemed price of CDN$0.25 per share as a finder's fee. The agreement and finder's fee remain subject to regulatory approval.

About Largo Resources

Largo Resources is a Canadian natural resource development and exploration company. In addition to Largo's interest in the Maracas deposit in Brazil, its Northern Dancer Tungsten-Molybdenum deposit is an advanced stage project in the Yukon. 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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