/R E P E A T -- Largo announces positive preliminary economic assessment for the expansion of production at its Maracas Vanadium

/R E P E A T -- Largo announces positive preliminary economic assessment for 
the expansion of production at its Maracas Vanadium Project, Brazil/ 
Symbol: LGO (TSX.V) 

    --  NPV $554 million vs $274 million previously (+102%)
    --  After tax IRR of 26.3% vs 22.4% previously
    --  Production increased by approximately 46%
    --  Production of V(2)O(5) from 2014; FeV from 2016
    --  Mine life increased to 29 years versus 15

TORONTO, Jan. 18, 2013 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") 
is pleased to announce the results from a National Instrument 43-101 compliant 
Preliminary Economic Assessment (the "Report") which affirms very robust 
economics for an expanded production scenario for its Maracás Vanadium 
Project in Bahia, Brazil (the "Maracás Project"). The Report is being 
prepared by RungePincockMinarco ("Runge") and will be filed on SEDAR within 45 
days of the date hereof in accordance with NI 43-101.

The Company commissioned the Report to re-scope its advanced stage Maracas 
Project by incorporating a new production stream of both V2O5 and FeV as 
opposed to an FeV only scenario (set out in the September 2008 Definitive 
Feasibility Study as amended in May 2009 (see www.sedar.com) prepared by Aker 
Solutions Canada Inc. (the "Feasibility Study")) as well as an expanded 
production scenario which considered the mineral resources available to Largo 
set out in its Amended Technical report filed on SEDAR on December 21, 2012 
(the "December Report"). 

The new production scenario sees production increased by approximately 46% 
following year 2 and sees a dual revenue stream of V2O5 and FeV following year 
3. The mine life is also increased to 29 years from the 15 years previously 
set out in the Feasibility Study. 

These changes result in an increase to $554 million versus $274 million 
(+102%) in the Net Present Value ("NPV") and an increase to 26.3% versus 22.4% 
in the Internal Rate of Return ("IRR") versus the previous production profile 
each as compared to the results of the Feasibility Study. 


|                IRR and NPV      |IRR of 26.3% and NPV of US$554     |
|                                 |million (8% discount rate)         |
| Average Annual Production of  V |6,376 tonnes of V2O5               |
|      (2)O(5) (years 2-11)       |                                   |
|Average Annual Production of FeV |4,899 tonnes of V in FeV           |
|          (years 2-11)           |                                   |
|      Vanadium Pentoxide Price:  |$6.37 per lb, or $14.04 per Kg  (3 |
|                                 |year average)                      |
|          Ferrovanadium Price    |$28.01 per Kg (3 year average)     |
|     Average Vanadium Pentoxide  |$3.18 per lb                       |
|           Operating Costs       |                                   |
| Average Ferrovanadium Operating |$15.62 per kg                      |
|              Costs              |                                   |
|                  Mine Life      |29 Years                           |
|        USD/BR$ Exchange Rate:   |2.00                               |
|          Off-take Agreement:    |Agreement with Glencore            |
|                                 |International remains in place for |
|                                 |100% of vanadium products for first|
|                                 |6 years                            |

The Report follows extensive engineering work completed by Largo and Promon 
Engenheria S.A. (Largo's Maracas EPCM Contractor) to begin initial production 
at the Maracás Project by the end of 2013 which was based on the results of 
the Feasibility Study. As previously disclosed, construction at the Maracas 
Project is well under way and Largo has ordered key equipment with additional 
capacity in anticipation of increasing production. Largo expects to be a low 
cost producer of Vanadium.

The expanded scenario adopts the following production strategy:
    --  2014 - ramp up to 100% of base case design capacity producing
        vanadium pentoxide (V(2)O(5)) only
    --  2015 - complete the expansion of the V(2)O(5) plant by Q3 2015
        and produce at an expanded rate in Q4 2015; design
        ferrovanadium (FeV) plant during this period
    --  2016 - produce V(2)O(5 )throughout the year; construct FeV
        plant, and commence FeV production in Q4 2016
    --  2017 and beyond - produce V(2)O(5 )and FeV

Details of Assessment:

The expanded production scenario is made possible by utilising all the mineral 
resources available to Largo in the Maracás Project area as reported in the 
December Report. In the Report, the mill feed sources comprise: Gulçari 
A, Gulçari A Norte, Gulçari B, Sao Jose, Novo Amparo and Novo Amparo 
Norte. The Report provides for a total mill feed over the 29 year life of 
the mine of 41,737,000 tonnes at an average grade of 1.10% V(2)O(5). The 
authors of the Report based this estimate on Whittle pit optimizations carried 
out on the previously reported mineral resources in the measured, indicated 
and inferred resource categories (see press release dated September 17, 2012).

Largo cautions that the Report referred to in this announcement is preliminary 
in nature and includes inferred mineral resources that are considered too 
speculative geologically to have the economic considerations applied to them 
that would enable them to be categorized as mineral reserves. Mineral 
resources that are not mineral reserves do not have demonstrated economic 
viability. Due to the inclusion of inferred resources in the Report, the 
Company also cautions there is no certainty that the Report will be 
realized. The results of the Report are not intended to disclaim existing 
mineral reserves under the Feasibility Study.

Capital Expenditures:

The additional CAPEX to expand the operation of approximately $US 50 million 
was minimised by the fact that the capacity of significant components of the 
original plant design were purposefully designed to be larger than required 
with a view to a future possible expansion. No additional expenditures are 
required for the most critical long-lead items such as the crushing circuit or 
the horizontal kiln. Other components of the circuit such as milling, 
beneficiation, leaching, precipitation, deammoniation and drying will require 
fairly minimal additional capital expenditures to cater for the increased 
production rates. This additional $US 50 million in CAPEX would be over and 
above the already funded US$230.347 million presently being utilised at the 
project which is currently under construction (see press release dated: 
September 13, 2012). Except for US$1.0 million of this additional amount, 
first funds for the expansion would not be required until 2015 and would then 
be disbursed over a 3 year period during which the Company expects to be in 
production. Largo anticipates that it will fund these additional expenditures 
through cash-flow generated by the operations.

Tim Mann, Chief Operating Officer to Largo stated: "In addition to being very 
pleased with the results of the PEA which demonstrate the significant upside 
of the Maracás operation, I can report that the site activity is proceeding 
very well with the procurement process well advanced allowing detailed 
engineering to be completed as needed. Earthworks for the plant site area are 
complete and good progress is being made with civil construction. The 
electrical-mechanical contractor has commenced mobilization. In addition, 
water supply and power supply activity is proceeding well with construction 
underway in both cases including the main electrical sub-station. Mechanical 
completion is scheduled for Q4 2013, which is consistent with the 
commissioning target of the company".

Long-Term Metal Pricing:

Runge has used the three year average pricing from Metal Bulletin 
(www.MetalBulletin.com) as their base case scenario for metal pricing for both 
V(2)O(5) and FeV. Metal Bulletin is a widely accepted reference source for 
non-LME listed minor metal pricing and industry information.

As metal pricing for both V(2)O(5) and FeV were subject to extreme 
fluctuations during the 2008 period, it was determined to use the three year 
average to exclude this period.

|Product:|         3 Year Average*   |   Pricing as at January 17,  |
|        |                           |             2013*            |
|V(2)O(5)|$6.37 per lb, or $14.04 per|$6.47 per lb, or $14.28 per Kg|
|        |            Kg             |                              |
|   FeV  |          $28.01 per Kg    |            $32.00 per Kg     |

* Vanadium pricing determined based pricing as reported on Metal Bulletin

Using vanadium prices as of January 17, 2013, the IRR increases to 28.3% and 
the NPV (8% discount rate) increases to US$651 million.

Quality Assurance Quality Control:

The scientific and technical information in this press release has been 
reviewed and approved by Tim Mann, P.Eng., Chief Operating Officer of Largo, 
and also by Don Arsenault, P. Eng., MBA, Vice President of Mining - Canada for 
Runge, both of whom are Qualified Persons as defined by National Instrument 

About Largo

Largo is a Canadian-based mineral resource exploration and development company 
focused on creating a world leading strategic metals company. 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. The immediate goal of the Company is to develop the 
Maracás Vanadium Project by Q4 2013 and continue to produce WO(3) 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 is listed on the TSX Venture Exchange under the symbol "LGO".

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


The Company cautions that the Report is a preliminary economic assessment only 
which was undertaken to re-scope an advance staged project based on new 
information and readers should not treat the results as enhancing the 
Feasibility Study or certainty of the Maracas Project. 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 Maracas 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.

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Darcie Ladd Manager Business Development 416-861-9406 

Mark Brennan President & CEO 416-561-0266

SOURCE: Largo Resources Ltd.

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CO: Largo Resources Ltd.
ST: Ontario

-0- Jan/21/2013 12:45 GMT

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