Largo Resources Receives Confirmation of Debt Facility from the Brazilian Development Bank to Finance Its Maracas Vanadium Project in Bahia, Brazil

- The Maracas Vanadium Project is Eligible for a 100% Direct Loan from the BNDES for the Entire Eight Year Term
- Largo Receives LOI Outlining Tax Incentives from Bahia State Government

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SymbolPriceChange LGO.V

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TORONTO, ONTARIO--(Marketwire - Oct. 31, 2011) - Largo Resources Ltd. (TSX VENTURE:LGO - News; "Largo" or the "Company") is pleased to announce that the Brazilian Development Bank ("BNDES") has provided the Company with a formal letter (the "Enquadramento") to confirm that the Company's Maracas Vanadium Project is eligible to receive a 100% direct loan with an eight year term to fully finance the Maracas Vanadium Project.

The Enquadramento is non-binding and the loan remains subject to customary conditions including the provision of a commercial bank's guarantee, final approval by BNDES board, negotiation of definitive agreements and regulatory approvals. The issuance of an Enquadramento is the first step for completing the financing structure for the Maracas project through a BNDES structure.

Additionally, Largo is pleased to announce that the government of the State of Bahia, through its development secretary, has signed a Letter of Intent ("LOI") to support the Maracas project by providing tax incentives to the Company. Such incentives include: the reduction of the value-added tax ("VAT") applicable on the acquisition of fixed assets (VAT state, the "ICMS") due to the State of Bahia to 0%, as well as a deferral for 72 months of the VAT due to the State of Bahia when the project enters into production.

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 production of WO3 concentrate from the reprocessing of tungsten tailings from Currais Novos by December, 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, the effect of enquadramento on the ability of the Company to finance its project and its financial and corporate performance, the ability of the Company to satisfy the conditions of the enquadramento, the ability of the Company to complete the required third party financing, the timing and amount of future exploration work to be conducted on the properties, and the timing of production at the Company's Maracas project. 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.

Mark Brennan
Largo Resources Ltd.
President & CEO
(416) 861-5886
mbrennan@largoresources.com

Darcie Ladd
Largo Resources Ltd.
Manager Business Development
(416) 861-5938
dladd@largoresources.com
www.largoresources.com