Largo Announces Positive Preliminary Metallurgical Test Results for Its Campo Alegre Iron-Titanium Project, Bahia, Brazil - Clean Magnetite Concentrate Produced at High Mass Yield- Potential for TiO2 (Titanium Oxide) Slag Operation With Pig Iron Bi-P

TORONTO, ONTARIO -- (Marketwire) -- 06/29/11 -- Largo Resources Ltd. (TSX VENTURE: LGO) ('Largo' or the 'Company') is pleased to announce that it has received positive preliminary metallurgical results for its Iron-Titanium project at its Campo Alegre de Lourdes Project in Bahia, Brazil.

Highlights of preliminary metallurgical test results include:

--  Metallurgical test results indicate that the massive magnetite can
    produce a magnetite iron ore at a high yield.

--   Test work also produced a high quality ilmenite concentrate

--  Potential that the ilmenite produced from massive magnetite at Campo
    Alegre can be used for the production of a TiO2 slag by smelting the
    ilmenite to produce a TiO2 slag and pig iron which is a well-
    established process currently in use in China, South Africa and Canada

--  Titanium slag is the preferred raw material to the pigment producer
    market and presently sells for approximately US$1,500 per ton.

Mark Brennan, CEO of Largo Resources stated 'Based on these encouraging preliminary results, Largo will continue to refine its metallurgical test work in order to further optimize magnetic separation processes in the hopes that it can further enhance the concentrates of the massive magnetite and the oxidized material at the Campo Alegre project'.

Likewise, Largo will launch a diamond drill program with the objective of identifying mineral resources for both the oxidized and non-oxidized massive magnetite, and complete an independent 43-101 compliant independent resource estimate. The resources will come from a number of high priority targets that stretch for 14 kilometres along strike by 2.5 kilometres wide and include from north to south Morro Branco, Lazan, Morro Testa Branca, Morro Redondo, Morro Chico Velho, Morro da Carlota, Morro do Tuiuiu, Morro do Sitio, and Morro do Anfilofio. These nine target areas have been tested in the past by the CBPM and have potential for high grade iron-titanium resources (see Figure 1 at bottom of release).

Overview of metallurgical results:

Magnetite Concentrate:

With a low intensity wet magnetic separation at 1600 gauss and a particle size of 80% passing 180 micron, the massive magnetite samples from the Campo Alegre de Lourdes deposit produced a high quality and low impurity concentrate with a mass yield of 57.9%. The analysis of the concentrate is indicated below:

--------------------------------------------------------
    Fe      P     Si     Al   TiO2   V2O5    LOI    FeO
--------------------------------------------------------
 59.8% 0.006%   0.5%   0.4%  12.7%   0.8%  -2.4%  26.7%
--------------------------------------------------------

Ilmenite Concentrate:

The non-magnetic portion from the 1600 gauss magnetic produced an Ilmenite concentrate with very high grades of titanium and low levels of contaminants between 1600 and 6400 gauss at a mass yield of 17.1% from the original ore sample. These grades were obtained without a secondary cleaner stage which would have improved concentrate grade further. The quality of this concentrate could lead to its use in producing TiO2 slag for the synthetic Rutile market. The analysis of the concentrate is indicated below:

--------------------------------------------------------
    Fe      P     Si     Al   TiO2   V2O5    LOI    FeO
--------------------------------------------------------
 37.7% 0.008%   1.0%   0.8%  42.1%   0.3%  -2.1%  18.7%
--------------------------------------------------------

Oxidized Material:

The initial test work from oxidized ore samples indicated the potential to produce a magnetic concentrate at 1600 gauss, with a mass yield of 26.4%. Indications were that an increased yield may be obtained using higher magnetic intensities. Further test work will need to be conducted to provide a more firm assessment. The analysis of the concentrate is indicated below:

--------------------------------------------------------
    Fe      P     Si     Al   TiO2   V2O5    LOI    FeO
--------------------------------------------------------
 57.4% 0.026%   0.4%   0.4%  15.0%   0.8%   0.5%  18.2%
--------------------------------------------------------

Metallurgical Test Processes:

Samples from drill cores from Campo Alegre de Lourdes representing the massive and oxidized material were submitted to the Fundacao Gorceix laboratory located in Ouro Preto, Minas Gerais state, Brazil for evaluation. The processes used in the test program were established by Largo's technical team to determine if valuable components of the ore could be separated by magnetic separation at varying magnetic field strengths.

Ore samples were reduced in size to give separate milled products of 80% passing 180 micron, and 80% passing 66 microns using field strengths of 800, 1600, 3200, 6400, and 12800 gauss. Each of the varying size fractions of the ore samples were first subjected to an 800G wet magnetic separation, the magnetics collected, and the non magnetic fraction were then subjected to separation at 1600G and similarly progressed to the 12800G separation stage. Samples of magnetics at the varying field strengths, and final discarded material from the 12800G stage were then collected and analyzed.

Quality Control

Mr. Tim Mann, P.Eng., the Chief Operating Officer for Largo Resources, is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the program.

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-Titanium Project, all in Brazil, and a 100% 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 in July 2011.

Largo is listed on the TSX Venture Exchange under the symbol 'LGO'.

For more information please refer to Largo's website: www.largoresources.com

Cautionary Statement on Forward Looking Information

This press release contains 'forward-looking information' within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding future exploration work and analysis; test results ability to produce in the future and regulatory and permitting approvals. Generally, forward-looking information 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 state that certain actions, events or results 'may', 'could', 'would', 'might' or 'will be taken', 'occur' or 'be achieved'. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including risks inherent in the mining industry and risks described in the public disclosure of the Company which is available under the profile of the Company on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information 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 information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

To view accompanying Figure 1, visit the following link: http://media3.marketwire.com/docs/LargoFigure1.pdf

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