Largo Announces High Grade Drill Results from Its Maracas Project in Bahia, Brazil

- Hole FGA103, intersected 62.00 metres grading 1.64% V2O5, including 25.00 metres grading 2.09% V2O5
- Drill program confirms the continuation of high grade material with significant widths
- Encouraging PGM values discovered to the north and west along Gulcari "A" trend

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TORONTO, ONTARIO--(Marketwire - Aug. 22, 2011) - Largo Resources Ltd. (TSX VENTURE:LGO - News; "Largo" or "the Company") is pleased to announce the results from the first five drill holes of the Company's 11,000-metre diamond drill program (announced May 17, 2011) at the Company's Maracas Vanadium-PGM property located 250 kilometres west of Salvador in Bahia, Brazil. Included in the results are assays from four holes initially drilled in conjunction with the Company's 2008 drill program but which were not analyzed due to the cancellation of the program as a result of market conditions in 2008.

Significant results include (results are all true thickness):

--  FGA101 - 7.00 metres grading 1.08% V2O5, and 0.63 g/t PGM, including
    2.78 metres grading 1.17% V2O5, and 1.42 g/t PGM (200 metres north
    of the Gulcari "A" deposit) (Drilled 2008 analyzed 2011)

--  FGA103 - 62.00 metres grading 1.64% V2O5, and 0.25 g/t PGM,
    including 25.00 metres grading 2.09% V2O5, and 0.28 g/t PGM (down
    dip Gulcari "A" deposit)

--  FGA105 - 4.30 metres grading 1.00% V2O5(300 metres east of the
    Gulcari "A" deposit) , and 15.00 metres grading 1.34% V2O5, and 0.27
    g/t PGM and 15.10 metres grading 1.00% V2O5, and 0.26 g/t PGM (down
    dip of the Gulcari "A" deposit)

--  FGA106 - 14.00 metres grading 1.03% V2O5, and 0.50 g/t PGM.
    Including 4.00 metres grading 1.32% V2O5, and 1.02 g/t PGM (100
    metres west of the Gulcari "A" deposit)

Largo presently has two diamond drill rigs operating on the property with the objective to significantly increase the mineral resources. As a result of ground surveys and magnetic mapping work done by Largo, several high priority vanadium targets (which includes significant high grade PGM "Platinum Group Metals" values) have been identified along the Gulcari "A" trend and the Gulcari "B" trend. The present drill program has also been designed to further evaluate the PGM potential of the deposit. This year's drill program began testing targets in the area immediately surrounding Gulcari "A" and the presently defined optimal pit which could potentially have an immediate impact on the known deposit. The program will continue moving outward to other target areas including the Gulcari "A" north prospect and the Gulcari "B" prospect

Andy Campbell, P.Geo., Vice President of Exploration of the Company commented: "We are very pleased with the results of the drill program that continue to confirm our high grade vanadium values at depth as well as to define new zones both eastward and westward from the immediate vicinity of the Gulcari "A" pit. These initial results will be important in significantly increasing the size of the resources and we look forward to receiving further similar results in the coming weeks."

He continued, "Hole FGA101, a 200-metre step out hole to the north of Gulcari "A" demonstrates the continuation of the mineralization and also includes significant PGM content. Additional drill holes have also tested this zone two kilometres to the north along the trend the results for which remain pending, and we expect to receive more results over the next three to four weeks. Additional step out holes are planned to further define the limits of the mineralization. The drill program has now progressed out and away from Gulcari "A" and is now testing other zones such as Gulcari "B" which lies 500 metres west and 1.5 kilometres north of Gulcari "A". "

Table 1: Summary of Significant Assay Results - Maracas Property, Brazil    
----------------------------------------------------------------------------
                                                                        True
                                   V2O5    Pt    Pd   PGM Interval thickness
Hole Number            From     To    % (g/t) (g/t) (g/t) (metres)       (m)
----------------------------------------------------------------------------
FGA101                93.00  98.27 1.00  0.10  0.10  0.20     5.27      5.00
               and   156.00 163.00 1.08  0.32  0.31  0.63     7.00      7.00
         including   157.22 160.00 1.17  0.73  0.69  1.42     2.78      2.78
----------------------------------------------------------------------------
FGA102               385.95 399.40 1.05  0.16  0.16  0.32    13.45     10.00
----------------------------------------------------------------------------
FGA103               254.68 322.80 1.64  0.15  0.10  0.25    78.14     62.00
         including   260.00 290.00 2.09  0.16  0.11  0.27    30.00     25.00
----------------------------------------------------------------------------
FGA104                31.00  35.90 0.70  0.21  0.22  0.43     4.90      4.90
----------------------------------------------------------------------------
FGA105                99.00 103.39 1.00  0.00  0.00  0.00     4.39      4.30
               and   274.60 293.57 1.34  0.15  0.12  0.27    18.97     15.00
               and   308.18 327.18 1.00  0.12  0.14  0.26    19.00     15.10
----------------------------------------------------------------------------
                                                                        
FGA106                37.50  52.44 1.03  0.31  0.18  0.49    14.94     14.00
         including    47.34  51.62 1.32  0.61  0.41  1.02     4.28      4.00
----------------------------------------------------------------------------
                                                                            
Drill Hole Information - Maracas Property, Brazil                           
----------------------------------------------------------------------------
Hole Number            Northing  Easting  Elevation  Azimuth  Dip  Depth (m)
----------------------------------------------------------------------------
FGA101                8,486,386  318,640        300      270  -45        211
FGA102                8,486,018  318,696        304      290  -70        506
FGA103                8,486,086  318,554        301      290  -70     364.05
FGA104                8,486,081  318,058        303      290  -45     196.85
FGA105                8,486,029  318,554        310      290  -70      404.9
FGA106                8,486,120  318,082        304      290  -60     195.04
----------------------------------------------------------------------------

Quality Assurance and Quality Control

Analytical work was carried out by SGS Minerals in Belo Horizonte, Brazil. The scientific and technical information in this press release has been reviewed and approved by Andy Campbell, P.Geo., Vice President of Exploration for Largo and a Qualified Person as defined by National Instrument 43-101.

About Largo

Largo is a Canadian-based mineral resource exploration and development company focused on creating a world leading strategic metals company. Largo 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 to continue ramping up towards full scale production of WO3 concentrate from the reprocessing of tungsten tailings from Currais Novos. Largo's skilled management team both in Canada and Brazil, are confident in their 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 the effect of these results on the Company's operations, the development potential and timetable of the project; the estimation of mineral resources; realization of mineral resource estimates; the timing and amount of estimated future exploration; costs of future activities; capital and operating expenditures; and success of exploration activities. 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

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