Largo Resources Ltd.

Largo Resources Ltd.

November 22, 2006 16:15 ET

Largo Resources Reports an Inferred Resource of 15.0 Million Tonnes Grading 1.37% Vanadium Pentoxide at Maracas Vanadium Project in Brazil

TORONTO, ONTARIO--(CCNMatthews - Nov. 22, 2006) - Largo Resources Ltd. (TSX VENTURE:LGO) announced today that it has completed a revised block model and mineral resource estimate incorporating all historical drilling results for the Gulcari "A" deposit on the Maracas Vanadium Project located in the south-central part of Bahia state in northeastern Brazil. The Gulcari "A" deposit is one of four known prospects (Gulcari "A", Gulcari "B", Sao Jose and Nova Amparo) hosted in the Rio Jacare mafic-ultramafic intrusion along a strike length of eight kilometres.

Table 1 below is a sensitivity report for the Gulcari "A" mineral resource to cut-off grade. The inferred mineral resource in the Gulcari "A" deposit has been estimated to contain 15.0 million tonnes grading 1.37% Vanadium Pentoxide (V2O5). The cut-off grade used for the reporting of this inferred resource was 0.35% V2O5, which was chosen based on a review of mineral reserve statements for similar deposit types which are being mined by open pit methods, as is likely at Gulcari "A".

Table 1. Sensitivity Table for Inferred Resources in Gulcari "A" deposit.

CUT-OFF GRADE (%) Tonnes V2O5% V2O5% V2O5 (lbs)
0.15 15,040,000 1.37 206,000 454,100,000
0.25 15,040,000 1.37 206,000 454,100,000
0.35 15,040,000 1.37 206,000 454,100,000
0.45 14,960,000 1.38 206,400 455,000,000
0.55 14,450,000 1.41 203,700 449,100,000
0.65 13,150,000 1.49 195,900 431,900,000
0.75 11,470,000 1.60 183,500 404,500,000
0.85 9,930,000 1.73 171,800 378,800,000
0.95 8,400,000 1.88 157,900 348,100,000
1.05 6,960,000 2.06 143,400 316,100,000
1.50 4,600,000 2.50 115,000 253,500,000
2.00 3,950,000 2.61 103,100 227,300,000
2.50 1,970,000 2.97 58,500 129,000,000
3.00 680,000 3.47 23,600 52,000,000

The mineral resource estimate has been reviewed and confirmed by B. Terrence Hennessey, P.Geo. of Micon International Limited. Mr. Hennessey, who is an independent qualified person as defined under National Instrument 43-101, visited the site from June 26 to 29, 2006. The resource estimation procedures and classification used are outlined in a technical report by Mr. Hennessey that will be filed shortly on SEDAR.

Mark Brennan, President & CEO of Largo Resources stated: "This resource estimate provides Largo with a solid foundation upon which to activate the development process at Maracas. We are very encouraged by the potential for the Maracas project as a consequence of our initial investigations." He added, "We expect to be able to begin our confirmation drilling program in January. This will enable Largo to begin the process of developing an updated feasibility study for Vanadium as well as gaining a better understanding for the potential for platinum."

The increase in the revised inferred resource estimate reported above over that of the historical resource reported in a press release on Oct. 24 2006, is a reflection of a new geological interpretation and a better understanding of the geological model. This allowed better defined domains and specific gravity associated with the block model.

The presence of significant PGM mineralization reported in a press release on Oct.30 2006 has not been systematically sampled enough in order to be included in the resource reported above. However, further sampling is anticipated in order to assess the significance of the PGMs.

Parameters used in estimating the mineral resource are as follow:

- Database consists of 53 diamond drill holes and 21 trenches. Drill hole workspace in Gemcom database includes different tables for drill holes and trenches.

- The resource estimation used a new set of cross- sections constructed in Gemcom every 25m, as appropriate for the drill hole density. These cross-sections are perpendicular to strike of the deposit and parallel with rotated local resource grid to avoid any rotation of block model. New set of plan views also constructed every 10m between 150m elevation and 300m elevation.

- Five major geological domains have been identified for Gulcari A deposit. Geological domains for magnetite, magnetite-pyroxenite and pegmatite entirely constructed within the mineralized portion of the sections. Surrounding gabbro and pyroxenite were partly modeled. Magnetite and magnetite-pyroxenite comprise more than 98% of the deposit. Pegmatite and gabbro are internal waste materials.

- All the solids (geological domains) extended 50m beyond the existing drill holes down dip. In some sections when there weren't adequate drill holes, the boundary extends to be geologically compatible with previous and next sections.

- An average of specific gravity calculated for different rock types from 140 intervals in massive and banded magnetite (SG equals 4.45), 202 intervals in magnetite-pyroxenite (SG equals 3.57) and 7 intervals in gabbros (3.09) and pyroxenites (3.40).

- An assay top cut of 5.0% V2O5 was chosen based on probability plot analysis for the magnetite domain. A top cut of 2.3% V2O5 was chosen based on the probability plots for the magnetite-pyroxenite domain.

- All assay data composited starting at the collar using cut data from grade capping. All drill hole and trench assay data composited in 5m intervals then updated domain intersections.

- The resource estimates for the magnetite and magneite-pyroxenite domains were prepared by block model technique using Ordinary Kriging grade interpolation method. The lower cut off grade estimated at 0.35% V2O5 based on a review of mineral reserve statements for similar deposit types and likely mining methods.

- The block size used was 5 x 5 x 5m based on drill data spacing and likely requirements for open pittable mine blocks for Gulcari "A" deposit. The model has dimensions of 500 m east (5 x 100 meter blocks), 450 m north (5 x 90 meter blocks) and 250m vertically (5 x 50 meter blocks).

- The search volume limits along the X, Y and Z axes were set at ranges of 45, 55 and 100 meters, respectively for magnetite domain and 45, 100, 100 meters for magnetite-pyroxenite domain.

Assaying for the 1881-1987 drilling programs was carried out by GEOSOL laboratory and Paulo Abib Engenharia S.A. laboratory, both based in Belo Horizonte, and using an XRF method. Check analyses were carried out by Largo Resources by a re-sampling program to analyze a portion (approx. 10%) of the old drill core to verify the past analytical database on the property. These analyses were done at SGS Minerals laboratories both in Belo Horizonte, Brazil and Lakefield, Ontario. The samples were analysed for FeO, Fe2O3, SiO2, TiO2 and V2O5 by the XRF method. Security is maintained at the core logging and sampling facility in a locked warehouse in the nearby town of Maracas. Mr. R. A. Campbell, P.Geo. is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the program.

About Largo

Largo Resources is a Canadian natural resource development and exploration company with two advanced stage projects: the Northern Dancer Tungsten-Molybdenum deposit in the Yukon and the Maracas Vanadium-PGM deposit in Brazil. 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:


Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and those actual developments or results may vary materially from those in these "forward-looking statements".

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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