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Largo Intersects Good Grades Over Wide Widths With Significant Higher Grade Zones at Northern Dancer, Yukon

September 4, 2008

Largo Resources Ltd. (TSX VENTURE: LGO) announced today that it has received results for the first eight (8) drill holes that are part of the recently completed 2008 drill program of 38 holes totalling 11,500 metres at the Company’s Northern Dancer Tungsten-Molybdenum property in the Yukon. Largo’s 2008 drill program focused on further expanding the limits of the higher-grade tungsten and molybdenum zones outlined during the 2007 drill program and upgrading a significant portion of the Inferred and Indicated resource, reported in the April 10, 2008 press release, to the Measured and Indicated category in order to support a Pre-feasibility Study. Preliminary pit modelling was used in order to help maximize the effectiveness of the drill program.

Numerous quartz veins and veinlets were intersected in the drill core containing varying amounts of scheelite and molybdenite, the principal tungsten and molybdenum minerals, respectively. The true width of the mineralization varies from 31 to 190 metres. Largo has received results for eight (8) holes totalling 1,212 samples. Results are pending on the remaining 30 holes. Core logging and splitting is continuing and expected to be completed by the end of the month.

Andy Campbell, Vice President, Exploration at Largo Resources, commented: “The results continue to be very encouraging with all eight holes reporting good grades over wide widths of mineralization. Higher grade molybdenum zones were intersected in six of the eight holes with values returned that were two to six times higher than the average deposit grade of 0.022% to 0.026% Mo. Drilling continues to confirm that the higher-grade tungsten and molybdenum zones are more extensive than previously thought. Our work indicates that a major northeast-southwest structure controls the distribution of mineralization, especially tungsten, and testing of this structural zone was a major focus of our drill program.”

Northern Dancer, hosts widespread tungsten-molybdenum porphyry style mineralization, the core of which has been delineated by 94 diamond drill holes and 496 metres of underground workings. This work was done by AMAX Minerals Exploration from 1977 to 1980 (51 holes) and by Largo Resources which completed a 17-hole diamond drill program in 2006 and 26-hole program in 2007. On April 10, 2008 (see press release of the same date) Largo announced an updated NI 43-101 compliant resource comprising Indicated resources of 140.8 million tonnes grading 0.10% WO3 and 0.026% Mo and Inferred resources totalled 253.2 million tonnes grading 0.10% WO3 and 0.022 % Mo. This resource includes a higher grade tungsten zone containing an Indicated resource of 17.1 million tonnes grading 0.17% WO3 and 0.029 % Mo and Inferred resource of 18.7 million tonnes grading 0.16% WO3 and 0.023 % Mo. Please see the press release of Largo Resources dated April 10, 2008 for a description of the assumptions and parameters underlying these mineral resource estimates.

Please refer to Table 1 (Summary of Significant Assay Results – Northern Dancer Property, Yukon) which is appended to this news release for a summary of the above-noted drill results. Largo’s website has the Northern Dancer 2008 Drilling Plan Map which provides a reference for the location of these holes on the property via the following link:

http://www.largoresources.com/nd_map.htm

The Northern Dancer deposit is one of the world’s largest known tungsten-molybdenum porphyry systems. The mineralization is hosted in fractures and veins associated with a northeast-trending sheeted vein system in calc-silicate (skarn) rocks and spatially related to a felsic intrusion (quartz-feldspar porphyry). The deposit, which has been tested by drilling for 1500 metres along strike, 500 metres vertically and 600 metres in width, remains open along strike to both the northeast and southwest as well as at depth.

Tungsten and molybdenum mineralization are concentrated in two zones which partially overlap. In the core of the deposit, there is a higher-grade molybdenum zone where molybdenite occurs within and adjacent to the felsic intrusion. Surrounding and partially overlapping the molybdenum zone is a much more extensive tungsten zone where scheelite occurs in northeast-trending sheeted quartz veins in skarn.

Analytical work is being carried out at Acme Analytical Laboratories Ltd. in Vancouver, British Columbia, an ISO 9001-2000 certified laboratory. The samples are crushed to 70% passing 10 mesh, split to 250 g and pulverized to 95% passing 150 mesh. A 5-gram split is analyzed for Mo and W using a phosphoric acid leach followed by ICP-emission spectrometry. Then a second 5-gram split is analyzed for 36 elements by ICP-mass spectrometry using a hot (95 degrees centigrade) aqua regia leach. Routine check assays are performed at SGS Minerals in Lakefield, Ontario on sample rejects. 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 press release.

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. Largo also has a large (60,000 hectare) land position and prospective gold exploration properties in Ecuador. 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 mineralization projections at the Northern Dancer project; the estimation of mineral resources; and costs 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. Estimates regarding the anticipated timing, amount and cost of exploration activities are based on detailed research and analysis completed by company management. Mineral resource estimates have been based on the assumptions and parameters described in previous press releases of the company. Forward-looking statements are subject to known and unknown risks, uncertainties, including but not limited to risks related to: actual results of current exploration activities; changes in project parameters as plans continue to be refined; future mineral prices ; 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.

 Table 1: Summary of Significant Assay Results - Northern Dancer   Property, Yukon --------------------------------------------------------------------------- Hole                                       WO3          Mo      Interval(i) Number            From           To          %           %         (metres) --------------------------------------------------------------------------- LT08-97           1.50        32.70       0.08       0.048           31.20 and              53.50       126.00       0.04       0.063           72.50 --------------------------------------------------------------------------- LT08-98          87.00       136.80       0.05       0.054           49.80 --------------------------------------------------------------------------- LT08-99           6.40        42.90       0.11       0.038           36.50 and              98.00       167.44       0.10       0.029           69.44 including       150.00       167.44       0.17       0.030           17.44 --------------------------------------------------------------------------- LT08-100        128.80       198.95       0.10       0.022          189.42 and             227.68       287.43       0.13       0.054           59.75 --------------------------------------------------------------------------- LT08-101         37.00        87.00       0.13       0.117           50.00 and             145.30       209.00       0.10       0.042           53.70 and             289.00       408.40       0.12       0.030          119.40 --------------------------------------------------------------------------- LT08-102         97.60       148.00       0.09       0.079           50.40 and             199.00       235.60       0.08       0.042           36.60 --------------------------------------------------------------------------- LT08-103         11.60        74.00       0.11       0.039           62.40--------------------------------------------------------------------------- LT08-104        209.00       283.00       0.09       0.090           74.00 and             325.00       419.10       0.14       0.036           94.10 including       400.00       416.00       0.21       0.097           16.00 --------------------------------------------------------------------------- (i) the drill core size is NTW and all intervals reported are at or very      near true thickness Drill hole Information - Northern Dancer Property, Yukon --------------------------------------------------------------------------- Hole Number     Northing   Easting  Elevation  Azimuth    Dip      Depth(m) --------------------------------------------------------------------------- LT07-97        6,654,964   355,274      1,476      345    -45       216.41 LT07-98        6,654,992   355,303      1,478      315    -45       306.31 LT07-99        6,654,873   355,213      1,478      315    -45       210.31 LT07-100       6,654,798   355,025      1,515      322    -52       320.04 LT07-101       6,655,035   355,112      1,559      315    -55       408.43 LT07-102       6,655,035   355,112      1,559      135    -60       289.06 LT07-103       6,654,798   355,025      1,513      145    -73       147.84 LT07-104       6,654,810   354,934      1,537      315    -52       419.10 --------------------------------------------------------------------------- 

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.




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