Largo Provides Operational Update

Symbol: LGO (TSX.V)

• Civil Contractor Demobilising
• Significant Progress on Mechanical and Electrical Construction Activities
• Crushing System in Pre-Commissioning

TORONTO, Oct. 3, 2013 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") is pleased to provide the following operational update for its Maracás Vanadium Project in Bahia, Brazil (the "Project").

The civil construction contractor at the Project has already begun the demobilization process, which represents the achievement of an important construction milestone. Electrical-mechanical erection at the Project, which includes the installation of equipment and structures, continues on track for expected commissioning in the first quarter of 2014 (see pictures 1-6).

A summary of recent developments is listed below.

Highlights of Ongoing Development:

• Mine
  
  Pre-stripping of the Gulçari "A" open pit is proceeding as planned with the first bench at the 300 level and the main pit access ramp well underway.

• Utilities
  
  The electrical power line is expected to be commissioned by mid-October which would be in time for the planned commissioning of the crushing plant in late October.
  
  The water treatment plant is nearing completion and is presently undergoing final instrumentation checks prior to commissioning. The steam boiler and its stack have been installed while associated pipe work and auxiliary equipment installation continues.

• Crushing System
  
  Pre-commissioning of the crushing plant is currently underway. Full commissioning of the crushing system is expected to commence before the end of October.

• Beneficiation plant
  
  Construction and erection of the steel structure and conveyors for the beneficiation plant are almost complete. Both belt filters have been installed together with their respective vacuum pumps. Civil work on this system is complete and the piping and electrical installation is proceeding. The non-magnetic tailings pond is complete and ready for use.
  
  Commissioning of the beneficiation plant and the production of 5,000 tonnes of concentrate is expected to commence in November.

• Kiln
  
  The steel structure for the kiln feed, kiln discharge platforms as well as the electrostatic precipitator are in progress and at present remain on track. All light and heavy shells are on site and initial assembly of the kiln and cooler shells has commenced. The base plates are in position on the piers. The work required for the installation of the refractory material placement anchors is progressing well.

• Leaching Area
  
  In the leaching area of the Project, the lubrication system for the regrind mill has been commissioned with the mill now resting on its bearings. Civil work in this area is also complete. The agitator for the leaching tank has been installed. The calcine tailings conveyor for the iron ore bi-product is physically complete and ready for electrical connection and testing.

• Desilication
  
  All the tanks required for the desilication process and previously completed are now fitted with agitators. Civil work in this area is complete and the press filter has been installed.

• Evaporator (Salt Recovery Plant)
  
  The steel structure for the evaporator is almost complete, which has allowed installation of the crystallizer, heat exchanger, pumps for the tanks and some ducting.

• AMV Precipitation
  
  Civil work required for all tanks associated with AMV precipitation is now complete with the solution cooler and belt filter having been installed. Required pipe work is proceeding.

• Flash Dryer, Deammoniator and Fusion Furnace
  
  The flash dryer combustion chamber and de-agglomerater are installed and erection of the dryer structure has commenced.
  
  The deammoniator and the fusion furnace have been installed. The vanadium pentoxide flaking wheel and vanadium pentoxide flake silo have also been moved into place.
  
  The product handling and storage area structure and the container loading facility continue to progress.

• General
  
  All but minor civil work remains to be completed by the civil contractor.
  
  The non-magnetic tailings and iron ore by-product dams are now complete.

About Largo

Largo is a Canadian-based mineral resource exploration and development company focused on creating a world leading strategic metals company. The immediate goal of the Company is to develop the Maracás Vanadium Project by Q1, 2014 and to produce WO₃ concentrate from the reprocessing of tungsten tailings from Currais Novos. Largo's skilled management team both in Canada and Brazil, are confident in their ability to advance these projects. Largo currently holds a 100% interest in the Maracás Vanadium Project, a 100% interest in the Currais Novos Tungsten Tailings Project, a 100% interest in the Campo Alegre de Lourdes Iron-Vanadium Project, all in Brazil, and a 100% interest in the Northern Dancer Tungsten-Molybdenum property located in the Yukon Territory, Canada.

Largo is listed on the TSX Venture Exchange under the symbol "LGO".

Mr. Tim Mann P.Eng., a Qualified Person as defined by the National Instrument 43-101, has reviewed and approved the contents of this press release.

For more information please refer to Largo's website: www.largoresources.ca

Disclaimer

This press release contains forward-looking information under Canadian securities legislation. forward-looking information includes, but is not limited to, statements with respect to completion of the private placement, Largo's development potential and timetable of the Maracás and Northern Dancer projects; Largo's ability to raise additional funds necessary; the future price of tungsten and molybdenum; 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 but not limited to those risks described in the annual information form of Largo and in its public documents filed on SEDAR from time to time. Although management of 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. Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws. Readers should also review the risks and uncertainties sections of Largo's annual and interim MD&As.

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SOURCE Largo Resources Ltd.

Image with caption: "Photo 1: Pre-stripping Work at the Gulcari "A" - 300 Level Bench (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20131003_C6727_PHOTO_EN_31626.jpg

Image with caption: "Photo 2: Completed Crushing System - Pre-Commissioning Underway (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20131003_C6727_PHOTO_EN_31627.jpg

Image with caption: "Photo 3: Beneficiation Building with Equipment Installed (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20131003_C6727_PHOTO_EN_31628.jpg

Image with caption: "Photo 4: Kiln Area with Kiln Installation in Progress (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20131003_C6727_PHOTO_EN_31629.jpg

Image with caption: "Photo 5: Final Product Area and Main Plant with Majority of Equipment Installed (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20131003_C6727_PHOTO_EN_31630.jpg

Image with caption: "Photo 6: Panoramic of Project Site as at September 16, 2013 (CNW Group/Largo Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20131003_C6727_PHOTO_EN_31631.jpg