Largo Secures Land Rights for Mining and Development at Its Maracas Project, Bahia Brazil - Largo to Submit Application for Installation License Imminently

TORONTO, ONTARIO -- (Marketwire) -- 06/02/11 -- Largo Resources Ltd. (TSX VENTURE: LGO) ('Largo' or the 'Company') is pleased to announce that it has signed an agreement to secure the necessary land rights to develop and construct the processing facility at its Maracas Project in Bahia, Brazil. Largo previously held exploration rights for this area of the property and has now finalized an agreement for mining and construction on the property.

Mark Brennan, President and Chief Executive Officer of Largo stated: 'This is a major step in the development of the Maracas Vanadium Project. This agreement guarantees that we can submit the Installation License application which will provide us with final approval to construct and develop on the property. Our team in Brazil has been working diligently with the authorities in Brazil over the past months to finalize the documentation required for this application. With documentation nearly complete and this final agreement executed, we expect that the Installation License will be filed imminently and that approval should be received within our projected deadlines. Concurrently, the front end engineering design is progressing rapidly and we are looking forward to continued development on the engineering process over the next few months.'

Details of Land Agreement:

The land rights are being acquired by the Company through a series of agreements which will allow the Company to gain access to the Maracas Property to allow for the mining, research and processing activities as set forth by the mining rights attached to the Maracas Property. In consideration for the property acquisition, the Company will pay a cash payment of R$275,000 to Banco Economico S/A - In Voluntary Liquidation ('BESA') pursuant to an option agreement, a cash payment of R$5,250,000 to be paid in twelve monthly instalments to Economico Agro Pastoril e industrial pursuant to a leasing agreement, and a payment of US$9,000,000 paid in instalments over forty months for royalties, mining easements and other uses to BESA pursuant to a mining easement.

About Largo

Largo is a Canadian-based mineral resource exploration and development company focused on creating a world leading strategic metals company. The Company currently holds a 90% interest in the Maracas Vanadium Project, a 100% interest in the Currais Novos Tungsten Tailing Project, a 100% interest in the Campo Alegre de Lourdes Iron-Vanadium Project, all in Brazil, and a 70% interest in the Northern Dancer Tungsten-Molybdenum property located in the Yukon Territory, Canada. The immediate goal of the Company is to develop the Maracas Vanadium Project by Q1 2013 and begin production of WO3 concentrate from the reprocessing of tungsten tailings from Currais Novos by July, 2011. Largo has a very skilled management team both in Canada and Brazil with the ability to advance these projects.

Largo 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 information under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to completion of the acquisition, the receipt of the installation license and the Company's expectations for the Maracas project and the expected effect of the project on the Company's performance. 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 those risks described in the annual information form of Largo and in its public documents filed on SEDAR from time to time. 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.

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

Contacts:

Largo Resources Ltd.

Darcie Ladd

Manager Business Development

416-861-5938
dladd@largoresources.com
www.largoresources.com