Largo to Complete Preliminary Economic Assessment (PEA) on Northern Dancer Project, Yukon

LARGO RESOURCES LTD.

65 QUEEN STREET WEST, SUITE 820 TORONTO, ONTARIO M5H 2M5

May 31, 2010 Symbol: LGO (TSX Venture) www.largoresources.com

LARGO TO COMPLETE PRELIMINARY ECONOMIC ASSESSMENT (PEA) ON NORTHERN DANCER PROJECT, YUKON

• Measured and Indicated mineral resource estimate contains 500.1 million

pounds of WO3 (226.9 k tonnes) and 143.8 million pounds of Mo (65.2 k tonnes)

• Inferred mineral resources contains 393.1 million pounds of WO3 (178.3 k

tonnes) and 107.7 million pounds of Mo (48.9 k tonnes).

• Recent metal prices for both Tungsten (WO3) and Molybdenum (Mo) have been

on the rise. Tungsten APT prices have been reported in Europe at US$225 to 235/mtu (US$10.20 to US$10.65/lb) while Molybdenum (Mo) is reported at US$15.00/ lb (Metal-Pages May 27, 2010)

Toronto, Canada: Largo Resources Ltd. (TSX Venture Exchange: LGO) announces that it intends to complete a Preliminary Economic Assessment (PEA) on its Northern Dancer Project, Yukon by the fourth quarter of 2010. Largo is currently in the process of contacting a number of engineering firms to quote on the study.

The updated mineral resource estimate (March 14, 2009) for the deposit will form the basis for the study. This resource is as follows at a cut-off grade of 0.06% WO3:

Measured mineral resources of 30.8 million tonnes grading 0.114% WO3 and 0.030% Mo, Indicated mineral resources of 192.6 million tonnes grading 0.100% WO3 and 0.029% Mo. The Measured and Indicated mineral resource estimate contains 500.1 million pounds of WO3 (226.9 k tonnes) and 143.8 million pounds of Mo (65.2 k tonnes). Inferred mineral resources were estimated to be 201.2 million tonnes grading 0.089% WO3 and 0.024% Mo containing 393.1 million pounds of WO3 (178.3 k tonnes) and 107.7 million pounds of Mo (48.9 k tonnes) (for details of resource estimate, see March 12, 2009 press release).

Most importantly, the 2008 drilling program provided much better definition of the higher-grade zone which is estimated to contain a Measured and Indicated resource of

60.3 million tonnes grading 0.137% WO3 and 0.045% Mo (WO3 equiv 0.215%) and Inferred mineral resource of 5.4 million tonnes grading 0.134% WO3 and 0.047% Mo (WO3 equiv 0.214%) at a 0.17% WO3 equivalent cut-off grade(for details of resource estimate, see March 12, 2009 press release).

Andy Campbell, Vice-President, Exploration for Largo, stated: “Recent metal prices for tungsten and molybdenum are on the rise, which is very encouraging for Northern Dancer. Largo has very successfully upgraded the resource and confirmed a significant high grade zone. The PEA will be a good road map for moving the project forward into the next phase. The deposit now has a substantial Measured and Indicated resource that includes the higher-grade zone which could support a pre-feasibility study.”

The Northern Dancer deposit is one of the world’s largest known tungsten-molybdenum porphyry systems. Tungsten and molybdenum mineralization are concentrated in two zones which partially overlap. The mineralization is hosted in fractures, veinlets and veins associated with a northeast-trending sheeted vein structure hosted in calc-silicate (skarn) rocks and spatially related to a felsic intrusion (quartz-feldspar porphyry). The deposit, which has been tested by drilling for 1.2 kilometres 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. 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 the northeast-trending sheeted quartz veins structure.

Mr. Andy Campbell, P.Geo. is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the program.

About Largo

Largo Resources Ltd. 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 also owns the Campo Alegre de Lourdes Vanadium exploration project in Brazil. 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 proposed use of proceeds, receipt of regulatory approval; completion of the financing on the terms proposed; Largo’s development potential and timetable of the Maracas and Northern Dancer projects; Largo’s ability to raise additional funds necessary; the future price of ferrovanadium and vanadium pentoxide; the estimation of mineral reserves and mineral resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. 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. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Largo to be materially different from those expressed or implied by such forward-looking statements, including those risks described in the annual information form of the Company available under the Company’s profile on SEDAR at www.sedar.com. 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.

FOR FURTHER INFORMATION CONTACT:

Mark Brennan President & CEO (416) 861-5886 [email protected]

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