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Largo Reports Additional Encouraging Tungsten and Molybdenum Results From Northern Dancer Project, Yukon

September 24, 2008

Largo Resources Ltd. (TSX VENTURE: LGO) announced that it has received additional results for five (5) 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. The 2008 drill program focused on upgrading and expanding the limits of the higher-grade tungsten and molybdenum zones outlined during the 2007 drill program and further upgrading a significant portion of the Inferred and Indicated resource (reported in the April 10, 2008 press release) to a 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.

Wide zones of mineralization consisting of numerous quartz veins and veinlets continue to be intersected in the drill core containing varying amounts of scheelite and molybdenite. The true width of the mineralization varies from 17.50 to 432.80 metres. LT08-106 was lower grade and marks the northeast limit to the higher grade mineralization. LT08-105 is in a molybdenum rich zone. The remaining three holes (LT08-107, 108 & 111) are moving towards the centre of the tungsten rich part of the deposit. Largo has received additional results for five (5) holes totalling 936 samples. Results are pending on the remaining 25 holes. Core logging and splitting is continuing and is expected to be completed before the end of September.

Andy Campbell, Vice President, Exploration at Largo Resources commented: “This is a very large mineralized system and the results continue to be encouraging with four of the holes reporting extended widths and good grades. Higher grade molybdenum results were reported in LT08-105 and LT08-108. These molybdenum results are two to three times higher than the average deposit grade. Higher grade tungsten values were also reported in LT08-107, 108, and 111. LT08-108 was an exceptional hole reporting good values for tungsten and molybdenum and wide widths. Drill results continue to confirm the higher-grade tungsten and molybdenum zones. These results will have a positive impact on an updated resource and the modeling of the higher-grade zones. With encouraging results expected in the remaining holes, these results from the 2008 program should have a significant impact on the economics of the project.”

Northern Dancer, hosts widespread tungsten-molybdenum porphyry style mineralization, the core of which has been partially 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 April 10, 2008) Largo announced an updated NI 43-101 compliant resource consisting of Indicated 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 resources of 18.7 million tonnes grading 0.16% WO3 and 0.023 % Mo.

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

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, estimates regarding mineral resources, exploration plans and budgets, timing of receipt of assay results, 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 and ability to economically mine such deposits, 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.

                Table 1: Summary of Significant Assay Results -                        Northern Dancer Property, Yukon --------------------------------------------------------------------------- Hole                                                            Interval(i)  Number             From          To       WO3%         Mo%        (metres) --------------------------------------------------------------------------- LT08-105          257.50      275.00      0.04       0.074           17.50  and              320.00      396.20      0.06       0.051           76.20 --------------------------------------------------------------------------- LT08-106           32.00       88.00      0.05       0.014           56.00  and              204.00      222.10      0.02       0.030           18.10 --------------------------------------------------------------------------- LT08-107            6.10      400.80      0.11       0.028          394.70  including        156.00      202.70      0.15       0.030           46.70  including        322.20      375.00      0.20       0.036           52.80 --------------------------------------------------------------------------- LT08-108            0.00      432.80      0.11       0.046          432.80  including         18.00       60.00      0.12       0.049           42.00  including        163.00      331.00      0.14       0.052          168.00  including        347.00      376.00      0.24       0.034           29.00 --------------------------------------------------------------------------- LT08-111            3.00      268.35      0.11       0.025          265.35  including         73.20      114.00      0.14       0.020           40.80  including        151.00      171.00      0.24       0.021           20.00  including        220.30      259.00      0.17       0.024           38.70 --------------------------------------------------------------------------- (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) ---------------------------------------------------------------------------LT07-105       6,655,095    355,198       1,525       315   -50     396.24 LT07-106       6,655,131    355,231       1,554       135   -60     239.26 LT07-107       6,654,716    355,011       1,513       315   -45     405.38 LT07-108       6,654,927    355,159       1,500       315   -50     432.82 LT07-111       6,654,650    355,002       1,510       318   -45     362.71 --------------------------------------------------------------------------- 

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 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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