Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

May 16, 2008 16:08 ET

Largo Resources Ltd. Announces Private Placement Financing

TORONTO, ONTARIO--(Marketwire - May 16, 2008) -

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

Largo Resources Ltd. (TSX VENTURE:LGO) announces that the Corporation has entered into an agreement with Cormark Securities Inc. as lead agent and a syndicate of agents comprising Fraser Mackenzie Limited, Macquarie Capital Markets Canada Ltd. and Clarus Securities Inc. to sell on a best efforts basis up to $10,000,000 of units. Each unit will consist of one common share in the capital of the Corporation and one half of one common share purchase warrant. Each whole warrant shall entitle the holder thereof to purchase one Common Share for a period of 12 months following the closing date.

Closing of the offering is anticipated to occur on or before June 12, 2008 and is subject to receipt of applicable regulatory approvals including approval of the TSX Venture Exchange.

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. The Agents will receive a commission of 6.0% of the gross proceeds raised in the Offering. The Agents will also receive broker warrants equal to 6.0% of the number of shares 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 proceeds of the financing will be used for repayment of a convertible note facility and for working capital purposes.

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.

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, proposed use of proceeds, production levels and costs, estimates regarding mineral resources, projections regarding mineral prices, anticipated revenues and projected expenditures. 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, 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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