Largo Resources to Advance the Currais Novos Tungsten Project, Rio Grande De Norte, Brazil - Due Diligence Provides Very Positive Outlook for Project- Substantial Opportunity Exists to Expand Metrics of the Project - Largo Has Signed a Letter of Inte

TORONTO, ONTARIO -- (Marketwire) -- 08/09/10 -- Largo Resources Ltd. (TSX VENTURE: LGO) announces that it has successfully completed its due diligence process at the Currais Novos tungsten project, located 180 kilometres west-southwest of Natal in the State of Rio Grande do Norte, Northeastern Brazil.

The conclusion of its investigations has led Largo to conclude that the project is of merit and shall provide substantial short term economic benefit to the Company and its shareholders. Construction is expected to begin in September 2010 with first deliveries expected in the first quarter of 2011.

In tandem with the conclusion of its due diligence, Largo is pleased to announce that it has signed a Letter of Intent (LOI) with Global Tungsten & Powders ('GTP') Corp., Towanda, Pennsylvania to enter into an off-take agreement. The signing of the off-take agreement is contingent upon GTP satisfactorily completing its due-diligence. GTP is a worldwide leading supplier of refractory metal powders.

Mark Brennan, Largo's President and CEO stated, 'We are extremely pleased to be working with GTP to make Currais Novos a reality. We hope this will be the beginning of a fruitful partnership with GTP. GTP is a leading player in the tungsten world and we are proud of the confidence they have shown in us.'

He continued 'We are very pleased with the results of our due diligence process at Currais Novos. We hope that the cash flow generated from the project will advance our commitment to expanding our tungsten business as well as enable the Company to be less reliant on capital markets for funding.'

The 604 hectare Currais Novos property consists of three concessions on which two tailings piles (Barre Verde and Boca de Lagio) are situated. Historical tonnage estimates of the piles reported by the previous operators that included Anglo American and its subsidiaries in the late 1970s to the Departamento Nacional de Producao Mineral ('DNPM'), the national mineral agency in Brazil, estimated the piles to contain approximately 4.1 million tonnes of tailings material. This resource estimate should not be relied upon as it is historical in nature and does not conform to the resource categories accepted under NI 43-101. Preliminary samples taken by Largo resulted in grade estimates of approximately 0.12% WO3 which is within the range estimated by the current owners.

Largo has the option to acquire a 100% interest in the tailings for a purchase price of US$1,200,000 payable in instalments over a twelve-month period that commenced in January 2010, subject to certain terms and conditions.

During the due diligence period systematic samplings of the two tailings piles have been completed as well as test work to establish its process and metallurgical characteristics. In addition, all necessary title, legal, environmental and marketing aspects have been acquired. As a result of the source and apparent nature of the Currais Novos tailings, Largo believes that there is very good potential for near-term production of tungsten concentrates.

The Currais Novos property is underlain by a portion of the Serido Mobile Belt (SMB) which is located in northeastern Brazil and consists of a gneiss basement (Paleo-Proterozoic), a metasedimentary sequence (marble, quartzites, and schists), and the Brasiliano igneous suite (both of Neo-Proterozoic age). In this region, numerous mineralized skarns occur within marble and at the marble-schist contact in the metasedimentary sequence and have been known since at least the 1940s. The main characteristic of the SMB skarns is that they are dominantly oxidized tungsten skarns and several mines currently operate on a small scale in this part of northeastern Brazil producing tungsten concentrate.

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

In addition, Largo announces that it has granted a total of 4,950,000 options under the stock option plan of the Company to various officers, directors, consultants and employees of the Company. The options shall vest in accordance with the Company's stock option plan and are subject to regulatory approval. The options are exercisable at $0.18 per option and expire on August 9, 2015.

About Largo

Largo Resources Ltd. is a Canadian natural resource development and exploration company with three advanced stage projects: the Maracas Vanadium-PGM deposit in Bahia, Brazil, the Currais Novos Tungsten project in Rio Grande de Norte, Brasil and the Northern Dancer Tungsten-Molybdenum deposit in the Yukon, Canada. 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

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 and Northern Dancer projects; Largo's ability to raise additional funds necessary; the future price of ferrovanadium and vanadium pentoxide; 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 the 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 the 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. The Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

NEITHER THE TSX VENTURE EXCHANGE (NOR ITS REGULATORY SERVICE PROVIDER) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

Contacts:

Largo Resources Ltd.

Mark Brennan

President & CEO

(416) 861-5886
mbrennan@largoresources.com
www.largoresources.com