Largo Resources Ltd.
TSX VENTURE : LGO

Largo Resources Ltd.

July 12, 2010 13:27 ET

Largo Resources Signs Term Sheet With Banco Itau BBA S.A. for a Loan Facility of Up to US$162 Million for the Maracas Vanadium Project, Bahia, Brazil

TORONTO, ONTARIO--(Marketwire - July 12, 2010) -

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

Largo Resources Ltd. (TSX VENTURE:LGO) ("Largo or the "Company") is pleased to announce that Vanadio de Maracas Ltda., a 100% owned Brazilian subsidiary of Largo Resources, has entered into a term sheet with Banco Itaú BBA S.A. ("Itaú BBA"), a subsidiary of Itaú Unibanco Group and one of Brazil's leading investment banks, for a loan facility in the principal amount of up to US$162 million, subject to the terms there proposed, for the development of its Maracas Vanadium Project in Bahia State, Brazil.

The facility has an eight year maturity date with an estimated two year grace period for the repayment of principal.

Mark Brennan, President and Chief Executive Officer of Largo Resources, stated: "We have been very pleased with the progress of the financing for the Maracas project. We have seen very strong interest and we believe we will be able to begin pre-construction by the end of the year with formal construction beginning in the first quarter of 2011."

Largo completed a definitive Feasibility Study (FS) (see press release dated August 12, 2008) outlining a NI 43-101 proven and probable mineral reserve estimated at 13.1 million tonnes grading 1.34% V2O5 , based upon which production of 155 million pounds of vanadium contained in FeV is projected over a 23 year project plan.

Largo believes that there is good potential to expand the mineral resource significantly with drilling along strike and at depth. The existing resource occupies a small foot print of the overall property and Largo has done additional work including drilling outside of the resource area on the property that has identified a number of other targets that can be upgraded through drilling. Only 10% of the potential eight kilometres of strike length has been tested to date and four other target areas have been identified that need further drilling to upgrade them to a resource category.

The term sheet remains subject to the signing of a definitive agreement, the details of which will be press released upon finalization.

About Largo

Largo Resources Ltd. 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 also owns the Campo Alegre de Lourdes Vanadium exploration project in Brazil. 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.

Mr. Andy Campbell, P.Geo., an officer of the Company, is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical disclosure in this press release.

Disclaimer

This press release contains forward-looking statements under Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the proposed use of proceeds, receipt of regulatory approval; completion of the financing on the terms proposed; Largo's development potential and timetable of the Maracas projects; Largo's ability to raise additional funds necessary; the estimation of mineral reserves and mineral resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Generally, forward-looking statements 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 statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Largo to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to: timing and availability of external financing on acceptable terms; unexpected events and delays during construction, expansion and start-up; variations in ore grade and recovery rates; receipt and revocation of government approvals; actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of ferrovanadium; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry. Although management of Largo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements 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 statements. Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the 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.

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