Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

June 12, 2008 13:32 ET

Largo Resources Closes Private Placement Financing

TORONTO, ONTARIO--(Marketwire - June 12, 2008) -

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

Largo Resources Ltd. (TSX VENTURE:LGO) ("Largo or the "Company") is pleased to announce that it has closed its previously announced private placement of units, including the exercise in full of the agents option.

In connection with the offering, Largo issued and sold 23,000,000 units ("Units) at a price of $0.50 per Unit (the "Offering"). Each Unit consisted of one common share in the capital of the Corporation and one half of one common share purchase warrant. Each whole warrant entitles the holder thereof to purchase one Common Share at any time prior to June 12, 2009 at a price of $0.75 per share.

Largo intends to use the proceeds of the financing to repay a note facility and for working capital purposes.

Cormark Securities Inc. acted as lead agent on behalf of a syndicate of agents comprised of Fraser Mackenzie Limited, Macquarie Capital Markets Canada Ltd. and Clarus Securities Inc. (the "Agents"). The Agents received a cash commission of 6.0% of the gross proceeds raised in the Offering. The Agents also received broker warrants equal to 6.0% of the number of units purchased. Each broker warrant will entitle the Agents to purchase one share at the issue price of the units for a period of 12 months following the closing date.

The common shares and common shares issuable upon exercise of the warrants will be subject to resale restrictions for a period of four months plus one day from the closing date.

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

Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information is identified by words such as "estimates", "intends", "expects", "believes", "may", "will" and include, without limitation, statements regarding the company's plan of business operations, and proposed use of proceeds. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, regulatory risks, metal prices, risks inherent in the mining industry, financing risks, labour risks, uncertainty of mineral resource estimates, equipment and supply risks, title disputes, regulatory risks and environmental concerns. Most of these factors are outside the control of the company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

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

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