Largo Closes Equity Financing

TORONTO, ONTARIO--(Marketwire - Sept. 16, 2010) - Largo Resources Ltd. (TSX VENTURE: LGO.V)("Largo" or the "Company") is pleased to announce that it has closed its previously announced equity financing (the "Offering"). The Offering consisted of 29,397,055 units of the Company (the "Units") sold at $0.17 per Unit, of which 11,161,764 Units were offered pursuant to an agency agreement between the Company and Byron Securities Ltd. and Cormark Securities Inc. (the "Agents"). The remaining Units were sold by the Company on a non-brokered basis. The Offering raised gross proceeds to the Company of approximately $4,997,500, including the full exercise of the Agents' over-allotment option for 1,455,882 Units. Each Unit is comprised of one common share of the Company (each, a "Common Share") and one common share purchase warrant (a "Warrant"). Each Warrant is exercisable for one Common Share at a price of $0.25 any time up until 5:00pm (Toronto time) on September 16, 2011.

The net proceeds raised under the Offering will be used for the advancement of the Company's Maracas Project in Brazil by advancing the licensing process and furthering construction activities and for other corporate purposes.

In consideration for their services, pursuant to the Agency Agreement, the Agents received a cash commission equal to $132,825 and 781,323 broker warrants that will entitle them to acquire an equal number of Units at a price of $0.17 per Unit on or before September 16, 2011.