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Largo Continues to Report Encouraging Results From Northern Dancer Project, Yukon

October 9, 2008

Largo Resources Ltd. (TSX VENTURE: LGO) is pleased to announce that it has received additional results for nine (9) drill holes as part of the recently completed 2008 program of 38 holes totalling 11,500 metres at the Company’s Northern Dancer Tungsten-Molybdenum property in the Yukon. These down-dip and in-fill holes continue to upgrade and expand the limits of the higher-grade tungsten and molybdenum zones outlined during the 2007 drill program and further upgrade a significant portion of the Inferred and Indicated resource previously reported (see April 10, 2008 press release).

Wide zones of mineralization continue to be intersected consisting of numerous quartz veins and veinlets containing varying amounts of scheelite and molybdenite. LT08-109 was an exceptional hole compared to previous holes at Northern Dancer, intersecting a higher grade tungsten and molybdenum zone which returned 53.00 metres grading 0.32% WO3 and 0.053% Mo and an additional molybdenum-rich zone at the bottom of the hole-78.66 metres grading 0.079% Mo and 0.02% WO3. LT08-112, 116 and 118 also intersected good molybdenum results that are 1.5 to 3 times higher than deposit grade. Holes LT08-114, 116 and 118 all intersected higher grade tungsten zones which are 40% to 90% higher grade than the deposit grade. Largo has received additional results for nine (9) holes totalling 1,521 samples. Results are pending on the remaining 16 holes. Core logging and splitting has been completed and all samples have been sent to the laboratory for analysis.

Andy Campbell, Vice President, Exploration at Largo Resources commented: “These down-dip and in-fill holes continue to be very encouraging and underscore this very large mineralizing system. Higher grade molybdenum results were reported in LT08-109, 112, 116 and 118. These molybdenum results are 1.5 to 3 times higher than the average deposit grade. Higher grade tungsten values were also reported in LT08-109, 114, 116 and 118. LT08-109 was an exceptional hole reporting good values for both tungsten and molybdenum over wide widths. Drill results to date are better than expected and continue to confirm the higher-grade tungsten and molybdenum zones. We expect that these results will have a positive impact on an updated resource and the modeling of the higher-grade zones.”

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 of April 10, 2008) Largo announced an updated NI 43-101 compliant mineral resource estimate consisting of Indicated mineral resources of 140.8 million tonnes grading 0.10% WO3 and 0.026% Mo and Inferred mineral resources totalled 253.2 million tonnes grading 0.10% WO3 and 0.022 % Mo. This resource estimate includes a higher grade tungsten zone containing an Indicated mineral resource of 17.1 million tonnes grading 0.17% WO3 and 0.029 % Mo and Inferred mineral 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 1,500 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 that 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) ----------------------------------------------------------------------- LT08-109           5.00     281.00       0.11      0.042        276.00  including         5.00      47.70       0.10      0.028         42.70  including        81.00     147.00       0.05      0.051         66.00  including       155.00     206.00       0.05      0.052         51.00  including       228.00     281.00       0.32      0.053         53.00  and             281.00     359.66       0.02      0.079         78.66 ----------------------------------------------------------------------- LT08-110          61.00     289.50       0.10      0.027        228.50 ----------------------------------------------------------------------- LT08-112          14.00      48.00       0.10      0.012         34.00  and              62.95     110.00       0.10      0.019         47.05  and             267.00     304.45       0.05      0.048         37.45  and             360.00     390.00       0.10      0.066         30.00 ----------------------------------------------------------------------- LT08-113          46.00      56.00       0.09      0.023         10.00  and              64.00      93.00       0.09      0.017         29.00  and             120.00     182.00       0.09      0.018         62.00 ----------------------------------------------------------------------- LT08-114          84.00     117.00       0.11      0.014         33.00  and             137.70     157.00       0.10      0.015         19.30  and             175.00     187.00       0.07      0.046         12.00  and             195.00     237.00       0.19      0.024         42.00  and             345.00     373.00       0.09      0.013         28.00 ----------------------------------------------------------------------- LT08-115           2.00      59.00       0.07      0.015         57.00 ----------------------------------------------------------------------- LT08-116           0.00     306.07       0.11      0.028        306.07  including        74.00     112.00       0.14      0.033         38.00 including       148.00     194.00       0.16      0.022         48.00  including       206.00     306.07       0.14      0.049        100.07 ----------------------------------------------------------------------- LT08-117         143.00     171.00       0.11      0.015         28.00 ----------------------------------------------------------------------- LT08-118           0.00     371.50       0.14      0.031        371.50  including       107.00     369.00       0.17      0.038        262.00 ----------------------------------------------------------------------- (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) ----------------------------------------------------------------------- LT07-109      6,655,119   354,797      1,495      130   -65     359.66 ----------------------------------------------------------------------- LT07-110      6,654,745   354,952      1,522      315   -45     309.37 ----------------------------------------------------------------------- LT07-112      6,655,300   354,906      1,543      135   -55     414.53 ----------------------------------------------------------------------- LT07-113      6,654,776   354,882      1,545      140   -62     204.83 ----------------------------------------------------------------------- LT07-114      6,654,722   354,649      1,651      315   -60     435.00 ----------------------------------------------------------------------- LT07-115      6,655,362   354,944      1,530      138   -50     315.00 ----------------------------------------------------------------------- LT07-116      6,655,155   354,692      1,455      130   -55     306.72 ----------------------------------------------------------------------- LT07-117      6,654,661   354,569      1,691      315   -55     213.36 ----------------------------------------------------------------------- LT07-118      6,655,045   354,592      1,473      135   -50     402.34 ----------------------------------------------------------------------- 

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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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