Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

March 26, 2009 09:21 ET

Largo Resources Exercises Option to Acquire 70% Interest in Northern Dancer Property

Company has until March 11, 2010 to exercise option to purchase final 30%

TORONTO, ONTARIO--(Marketwire - March 26, 2009) - Largo Resources Ltd. ("Largo" or the "Company") (TSX VENTURE:LGO) is pleased to announce that it has acquired a 70% interest in the Northern Dancer property in Yukon Territory (the "Property") pursuant to its previously announced option agreement. Largo has also acquired one-third of the 3% NSR on the Property. Largo has a right to earn the remaining 30% interest in the Property by making a cash payment of $5,000,000 or issuing the equivalent value in shares of the Company within twelve months. The Property remains subject to a 2% NSR, a further 1% of which may be acquired by the Company upon acquiring the remaining 30% interest in the Property.

Northern Dancer hosts widespread tungsten-molybdenum porphyry style mineralization. The updated mineral resource for the deposit at a cut-off grade of 0.06% WO3 is estimated as measured mineral resources of 30.8 million tonnes grading 0.114% WO3 and 0.030% Mo, indicated mineral resources of 192.6 million tonnes grading 0.100% WO3 and 0.029% Mo. The measured and indicated mineral resource estimate contains 500.1 million pounds of WO3 (226.9 k tonnes) and 143.8 million pounds of Mo (65.2 k tonnes). Inferred mineral resources were estimated to be 201.2 million tonnes grading 0.089% WO3 and 0.024% Mo containing 393.1 million pounds of WO3 (178.3 k tonnes) and 107.7 million pounds of Mo (48.9 k tonnes). For details of the resource estimates, see press release dated March 12, 2009.

Tungsten and molybdenum mineralization are concentrated in two zones which partially overlap. In the core of the deposit, there is a higher-grade molybdenum zone where molybdenite occurs within and adjacent to the felsic intrusion. Surrounding and partially overlapping the molybdenum zone is a much more extensive tungsten zone where scheelite occurs in northeast-trending sheeted quartz veins in skarn.

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. Largo also has a large (60,000 hectare) land position and prospective gold exploration properties in Ecuador. The company is listed on the TSX Venture Exchange under the symbol LGO.

Mr. Andy Campbell, P.Geo., the Vice President Exploration of the Company and a Qualified Person as defined under National Instrument 43-101, has reviewed the scientific and technical information in this press release.

For more information please refer to Largo's website: www.largoresources.com.

Disclaimer

Cautionary Note Regarding Forward-Looking Information

This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects, the development potential of the Property, the exercise of the remaining option and mineralization projections. Generally, forward looking information 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 state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: the future financial or operating performance of the Company and its projects, general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; competition; future prices of mineral prices; realization of mineral resource estimates; accidents, labour disputes and other risks of the mining industry; and, delays in obtaining governmental approvals. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information 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 information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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