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TORONTO, ONTARIO--(Marketwire - April 26, 2010) - Largo Resources Ltd. (TSX VENTURE: LGO.V) ("Largo or the "Company") is pleased to announce that it has received a conditional approval and a non-binding term sheet for structuring an approximate US$150 million debt financing from Banco Itau BBA S.A. ("Itau BBA"), a subsidiary of Itau Unibanco Group and one of Brazil's leading investment banks, for the development of its Maracas Vanadium Project in Bahia State, Brazil.

Largo estimates that the Maracas Vanadium project needs approximately US$215 million in capital costs and approximately US$35 million in working capital for a total investment of US$250 million to develop the project.

The strategy for project finance is a combination of debt and equity. The debt component consists of a single credit facility of approximately US$150 million to be provided by a consortium of financial institutions led by Itau BBA. Largo is also reviewing a debt term sheet received for the same approximate amount from a leading international bank with strong experience in the mining sector.

The Company is currently working with its advisors on how it might best structure the equity component of the capex. The objective of the Company is to maximize Largo's ownership position in the Maracas project and minimize dilution to existing shareholders.

Mark Brennan, President & CEO of Largo Resources stated "We are very pleased and extremely excited to be working with Itau BBA for the development of our Maracas project." He continued, "The realistic expectation of securing the debt component of the overall project financing represents a major milestone for the Maracas project." He continued, "Maracas remains a jewel in the Vanadium business due to its high grade and low costs. The project would be extremely profitable at current vanadium prices."

Maracas is the highest grade vanadium deposit in the world. Largo has an estimated NI 43-101 compliant measured and indicated mineral resource of 22.5 million tonnes grading 1.26% V2O5, which is two to three times higher grade than any other producer and/or project (for details see press release dated August 13, 2008). Within this resource is a very significant high-grade zone consisting of 8.7 million tonnes grading 1.94% V2O5 that will be produced during the first eight years of operations.

Largo completed a very positive Definitive Feasibility Study (DFS) (see press release dated August 12, 2008) outlining a NI 43-101 proven and probable mineral reserve estimated at 13.1 million tonnes grading 1.34% V2O5 , based upon which, production of 155 million lbs of vanadium contained in FeV is projected over a 23 year project plan.

Largo believes that there is good potential to expand the mineral resource significantly with drilling along strike and at depth. The existing resource occupies a small foot print to the overall property and Largo has done additional work including drilling outside of the resource area on the property that has identified a number of other targets that can be upgraded through drilling. Only 10% of the potential 8 kilometres of strike length has been tested to date and four other target areas have been identified that need further drilling to upgrade them to a resource category.

About Largo

Largo Resources Ltd. is a Canadian natural resource development and exploration company with two advanced stage projects: the Maracas Vanadium-PGM deposit in Brazil and the Northern Dancer Tungsten-Molybdenum deposit in the Yukon. 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.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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

Contacts

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