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Largo Begins Drilling Program to Test PGM Targets at Maracas, Brazil

Posted on: Monday, 2 June 2008, 09:21 CDT

Largo Resources Ltd. (TSX VENTURE: LGO) announced today that a drill has been mobilized on the Maracas property to begin a 5,000-metre exploration drill program to test a number of high priority PGM targets. A total of 20 to 25 holes will be drilled. These holes were targeted based on the magnetic and Spectral Induced Polarization (IP) surveys completed in late 2007, lithogeochemical results from drill core sampling done across the property and some modeling and lithological and petrographic studies done by Dr. Reid Keays, an expert in platinum group element (PGE) deposits.

The PGE-rich Iron-Titanium-Vanadium oxide mineralization at Maracas has much higher Pt/Pd ratios than other magnetite rich systems such as those of the Platinova Reefs in the Skaergaard Intrusion (Greenland), Stella (South Africa) or Rincon del Tigre (Bolivia).

Drilling indicates that more sulphides are associated with the PGM mineralization and that copper and nickel are anomalous in the zones. Petrographic and analytical work by Dr. Keays has confirmed that PGM values are closely spatially related to sulphides and higher PGM grades tend to occur in sections with higher sulphide content. Ground geophysics surveys indicate that the zones extend across the property for eight kilometres of strike length.

Largo believes there is a strong possibility for a PGE-rich horizon to occur at a stratigraphic interval higher than that which the Gulcari A deposit is located. The field work completed to date has identified a number of high priority targets to be tested by this upcoming diamond drill program. Key targets are depicted in the map appended to the end of this new release.

Diamond Drill Results

Drilling results from five (5) regional exploration holes across the property that were completed in late 2007 have confirmed significant widths of PGM and V2O5 mineralization in four of five holes. These holes were targeted before completion of the IP work and studies by Dr. Keays were completed. The fifth hole failed to hit the target due to ground conditions. The target remains untested and will be part of this new program.

The results are summarized in Table 1 appended at the end of this news release.

Andy Campbell, P.Geo., Vice President, Exploration commented: "We now have a much better understanding of the relationship between the sulphides in the magnetite-rich layers and the PGM mineralization at Maracas. Further work is focussing on locating areas with greater sulphide content in stratigraphically higher parts of the intrusion as predicted by Dr. Keays model. These areas will be tested in the upcoming drill program. The Pt:Pd ratio continues to be very high, enhancing the potential of discovering an economic PGM deposit in addition to our substantial vanadium resources."

Analytical work was carried out by SGS Minerals in Belo Horizonte, Brazil, an ISO 9001-2000 certified laboratory. Largo employs a systematic QA/QC program including standards, duplicates and blanks. Andy Campbell, P. Geo., Largo's Vice President of Exploration, is the Qualified Person responsible for the scientific and technical work for the program as defined under National Instrument 43-101 and has reviewed this release.

Largo is pleased to announce that it has granted 200,000 stock options to a director of the Company. The options shall be exercisable for $0.77 for a period of five years from the date of grant. The grant of options shall be subject to receiving all necessary regulatory approvals and the options shall vest immediately subject to the regulatory four month hold period.

About Largo

Largo Resources 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 is listed on the TSX Venture Exchange under the symbol LGO.

Disclaimer

Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information is identified by words such as "estimates", "intends", "expects", "believes", "may", "will" and include, without limitation, statements regarding the company's plan of business operations, production levels and costs, estimates regarding mineral resources, mineralization projections, projections regarding mineral prices, anticipated revenues and projected expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, risks inherent in the mining industry, financing risks, labour risks, uncertainty of mineral resource estimates, equipment and supply risks, title disputes, regulatory risks and environmental concerns. Most of these factors are outside the control of the company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

To view a map of the PGM Drill Targets please view the following link: http://media3.marketwire.com/docs/largorespgmdrilltargets.pdf.

 Table 1: Summary of Significant Assay Results - Maracas Property, Brazil ----------------------------------------------------------------------------                                                                      True Hole                       V2O5     Pt     Pd    PGM  Interval  thickness Number        From     To     %   (g/t)  (g/t)  (g/t)  (metres)        (m) ---------------------------------------------------------------------------- FEXP 01      44.00  51.00  0.13   0.18   0.12   0.30      7.00       7.00 ---------------------------------------------------------------------------- FEXP 02      67.00  72.00  1.03   0.05   0.05   0.10      5.00       5.00  and        102.00 108.00  0.70   0.30   0.50   0.80      6.00       6.00 ---------------------------------------------------------------------------- FEXP 03     104.00 113.94  1.04   0.16   0.12   0.28      9.94       9.94 ---------------------------------------------------------------------------- including   111.94 113.94  0.83   0.56   0.38   0.94      2.00       2.00 ---------------------------------------------------------------------------- FEXP 04     103.00 110.00  0.17   0.41   0.20   0.61      7.00       7.00 ---------------------------------------------------------------------------- FEXP 05                    No significant results ----------------------------------------------------------------------------         Drill hole Information - Maracas Property, Brazil -------------------------------------------------------------------- Hole Number     Northing    Easting     Elevation    Azimuth    Dip -------------------------------------------------------------------- FEXP 01        8,488,396    319,152           340        290    -60 FEXP 02        8,488,450    319,000           331        290    -60 FEXP 03        8,487,092    318,653           338        290    -60 FEXP 04        8,485,487    318,655           339        290    -60 FEXP 05        8,484,085    319,058           343        290    -60 -------------------------------------------------------------------- 

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

 Contacts: Largo Resources Ltd. Mark Brennan President & CEO (416) 861-5886 Email: mbrennan@largoresources.com  Largo Resources Ltd. Tony LaMantia VP, Corporate Development (416) 861-5882 Email: tlamantia@largoresources.com Website: www.largoresources.com

SOURCE: Largo Resources Ltd.

Source: MARKET WIRE

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