The Gold Report

Largo Resources Ltd. TICKER: LGO:TSX.V Visit Company Website Largo Resources Ltd. is a Canadian resource company developing strategic advanced-stage mineral deposits containing metals used as building blocks for new age steel, machinery and products (such as fuel-efficient aircraft, automobiles and railway cars). The company holds the world-class Maracas Vanadium/PGM deposit in Brazil and the sprawling Northern Dancer Tungsten/Molybdenum deposit in Yukon.

The information provided below is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.

Expert Analysis

Canadian Business Magazine (10/31/11) "Largo Resources Ltd. has received approval from a Brazilian bank for an eight-year direct loan to finance its Maracas vanadium project northeast of Brasilia, Brazil. . .the Bahia state government is also backing the project. . .Bahia state will provide tax incentives for the project, including a reduction in value-added taxes and a deferral of other required payments."

The Critical Metals Report Interview with Jonathan Lee (10/25/11) "We have a Strong Buy on Largo. . .Largo is progressing nicely at its Maracas project, where it already has a significant reserve. It's drilling right now to increase that resource to increase production in the future, if need be. It's the highest-grade vanadium deposit in the world and even more so after magnetic separation. Right now, it's finishing its financing on the debt side for construction. It has spent some money on construction on the equity side. It's in the midst of finalizing the debt portion and getting an installation license, which is much like a construction license. It still expects to start producing in 2013 and, given that it already has a take or pay off-take with Glencore International for all of its production, we think this is a big development story that has a lot of legs in the near future. Once it finalizes that debt, it's on to construction, and it's really just about executing on the plan.

It has a strong management and technical team. Construction financing is about to be completed. It is also the highest-grade deposit in the world that has expansion potential. Its average grade is roughly 1.3%, but with physical upgrading, it goes to about 3%. . .That will definitely make it a low-cost producer in the industry. We look forward to it producing vanadium in 2013. . .With the capital on the debt side and the equity side, it should have more than enough cash to go to production. . .Once the debt financing comes in and Glencore is a customer, it's off to the races for them."

James Wellstead, Vanadium Investing News (9/12/11) "The Largo Resources Ltd. Maracas Project in central Bahia State, Brazil is one of the world's highest quality grading of vanadium pentoxide. The titaniferous magnetite mineralization at Maracas ranges from 2 to 100m in thickness with an average true width of 40m. Deposits of 23.2 Mt. grading 1.27% vanadium pentoxide and 13.1 Mt. grading 1.34% vanadium pentoxide provide for a production period of approximately 23 years, with an initial annual production of 5,000 Mt. commencing in 2013."

The Critical Metals Report Interview with Chris Berry (9/6/11) "Largo Resources Ltd. Is particularly interesting. This is a Canadian company that has two different vanadium deposits in Brazil. The company's Maracas project contains the highest grades of vanadium I've seen in North or South America at roughly 1.27%. It's also a deposit of size with ample potential to expand, so here you're combining good grades with tonnage. Another important factor I haven't mentioned is an offtake agreement. Largo negotiated an offtake agreement with Glencore International for a term of six years. This is a huge credibility boost for Largo, in my opinion. The fact that Largo has a high-grade vanadium deposit as well as other metal deposits in the Americas makes the potential for this company quite strong going forward."

The Gold Report Interview with Stephen Taylor (7/20/11) "We like Largo Resources in Brazil and in Canada. Largo has made some great progress since we last spoke. It's completed the financing on its Maracas vanadium project, and the drill program is now underway in the Northern Dancer tungsten-molybdenum project up in the Yukon. This company continues to make great progress. . .I think you could see some drill results out of the Northern Dancer project. The company began the drill program for a pre-feasibility study up there. They will begin construction on the Maracas project. I think vanadium is a metal that we're going to hear a lot more about in the years ahead, and Largo arguably has the best undeveloped vanadium deposit in the world down in Brazil—one of the best markets. So, I think you'll keep seeing good things about them."

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