Largo Resources Receives Installation License/Construction License for Its Maracas Vanadium Project, Bahia, Brazil

Oct 24, 2011

TORONTO, ONTARIO -- (MARKET WIRE) -- 10/24/11 -- Largo Resources Ltd. (TSX VENTURE: LGO) ("Largo" or the "Company") is pleased to announce that The Environmental and Water Resources Agency of the State of Bahia ("INEMA"), has granted the final Installation License (the "Construction License" or "LI") to Largo's subsidiary, Vanadio de Maracas S.A. The receipt of the LI marks the final governmental approval that was required in order to begin construction at the Maracas project.

The Construction License, which also incorporates a license for site preparation involving the removal of trees and vegetation (Autorizacao de Supressao de Vegetacao (ASV)) allows Largo to commence the installation and development of a facility that will produce 5,000 tonnes of Vanadium per annum at its Maracas Vanadium Project located in the municipality of Maracas, Bahia, Brazil. The Construction License provides permits for the following: deposition of tailings ponds, waste dumps, access to necessary land, construction of a water pipeline and other key infrastructure requirements for the operation.

The LI also provides for the protection of an area of pristine woodland that Largo has acquired adjacent to the site in order to preserve local flora and fauna through the ASV. The protected area is intended to compensate for the environmental impact of site construction. The LI also authorizes the removal of all and any vegetation that is required to be removed to accommodate all the proposed facilities within the area licensed. The issuance of the LI allows construction work to commence on site.

Mark Brennan, President and CEO, stated, "This is perhaps the most significant milestone to date for the Maracas Vanadium Project. The LI provides us with final governmental approval to begin construction at the project." He continued, "Maracas continues to have the potential to be a significant generator of cash flow. We are excited to be able to start the process to bring the project to fruition."

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 timing of construction at the Maracas project and associated costs, expectations regarding the future cash flows generated by the project and the effect of the Company's projects on the Company's future financial and operational success,, the timing and amount of future exploration work to be conducted on the properties, and the timing of production at the Company's Currais Novos 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.

Contacts:

Largo Resources Ltd.

Mark Brennan

President & CEO

(416) 861-5886

mbrennan@largoresources.com

Largo Resources Ltd.

Darcie Ladd

Manager Business Development

(416) 861-5938

dladd@largoresources.com

Source: Largo Resources Ltd.