Largo Starts Processing Tailing Materials at Its Currais Novos Project, Brazil

TORONTO, ONTARIO -- (Marketwire) -- 07/21/11 -- Largo Resources Ltd. (TSX VENTURE: LGO) ('Largo') is pleased to announce that it is ramping up toward full scale production with the initial processing of tailing materials at its 100% owned Currais Novos Tungsten Project in Rio Grande do Norte, Brazil. Tailings materials are presently being processed at partial mill capacity, and incremental materials will continue to be added until full capacity is reached in the very near term.

Mark Brennan, President and Chief Executive Officer, stated: 'This is a tremendously exciting milestone for Largo. Our team, both in Canada and Brazil, have worked diligently toward bringing this project into production on-time and on-budget and we believe that this major accomplishment also demonstrates our team's ability to advance the Maracas Vanadium Project toward production in the same manner. With tungsten prices remaining around all-time highs, we feel that Currais Novos has the potential to be an incredibly lucrative endeavour for Largo and its shareholders.'

Potential for Further Exploration and Expansion

Largo believes that the Currais Novos region, once a major tungsten producing district, within which its Currais Novos Project resides, has great potential for significant expansion from historic producing mines as well as new exploration discoveries. Largo continues to actively seek to acquire additional properties to extend and expand Largo's tungsten reserve base and likewise the life of the project.

Appointment of Director

Largo also announces the appointment of Santiago Pardo to its board of directors. Mr. Pardo, Portfolio Manager, joined Ashmore Investment Management Limited in 2006 from Deutsche Bank where he was based in New York and was responsible for strategy, business generation and transaction execution for clients in energy, utilities and chemicals. Mr. Pardo has also worked in M&A roles for both Goldman Sachs & Co and for Salomon Brothers Inc in New York. He has a Masters in Business Administration from Harvard Business School and dual BBA/BS degrees in Business Administration and Political Science from the Universidad de Los Andes in Bogota.

Quality Control

Mr. Tim Mann, P.Eng. and the Chief Operating Officer of the Company, 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-Vanadium 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 full-scale production of WO3 concentrate from the reprocessing of tungsten tailings from Currais Novos by the end of 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 future production activities at Currais Novos and the profitability thereof, expansion potential, implications from Currais Novos for the development of Maracas, and the likelihood of completing acquisitions of additional attractive properties. 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 statements that certain actions, events or results 'may', 'could', 'would', 'might' or 'will be taken', 'occur' or 'be achieved'. Forward-looking information is based on the opinions and estimates of management as of the date such statements are made. 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 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

Business Development

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