Creating a World Leading Strategic Mineral Company

March 2011 TSX.V:LGO

www.largoresources.com

A Member of the Forbes & Manhattan Group of Companies

Forward Looking Statements
The information presented contains “forward-looking statements”, within the meaning of the United States Private Securities Litigation Reform Act
of 1995, and “forward-looking information” under similar Canadian legislation, concerning the business, operations and financial performance
and condition of the Company. Forward-looking statements and forward-looking information include, but are not limited to, statements with
respect to the estimation of mineral reserves and mineral resources; the realization of mineral reserve estimates; the timing and amount of
estimated future production; costs of production; metal prices and demand for materials; capital expenditures; success of exploration and
development activities; permitting time lines and permitting, mining or processing issues; government regulation of mining operations;
environmental risks; and title disputes or claims. Generally, forward-looking statements and forward-looking information 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 state that certain actions,
events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements and forward-looking
information are based on the opinions and estimates of management as of the date such statements are made, and they 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
Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information,
including, but not limited to, unexpected events during operations; variations in ore grade; risks inherent in the mining industry; delay or failure to
receive board approvals; timing and availability of external financing on acceptable terms; risks relating to international operations; actual
results of exploration activities; conclusions of economic valuations; changes in project parameters as plans continue to be refined; and
fluctuating metal prices and currency exchange rates.. Although management of the Company has attempted to identify important factors
that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, 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 and forward-looking information. The Company does not undertake to update any
forward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable
securities laws.
Investors are advised that National Instrument 43-101 of the Canadian Securities Administrators requires that each category of mineral reserves
and mineral resources be reported separately. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources
The information presented uses the terms “measured”, “indicated” and “inferred” mineral resources. United States investors are advised that
while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not
recognize these terms. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and as to their economic and legal
feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian
rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned
not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors
are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.
 Experienced Management Team
Mark Brennan, President & CEO
Founding member of Desert Sun Mining with over 20 years financing experience in North America & Europe.
Founder and principal of Linear Capital, Brasoil Corporation, James Bay Resources, Morumbi Oil & Gas and former
President, CEO and Chairman of Admiral Bay Resources.

Tim Mann, P. Eng., Chief Operating Officer

Mining Engineer with extensive international operations and management experience in mine engineering,
development and mine operations with SNC Lavalin, Placer Dome and Goldcorp.

Andy Campbell, M.Sc., P.Geo. , Vice President Exploration,

Over 33 years experience in mining and exploration, including LAC Minerals and Noranda.

Kurt Menchen, General Manager, Brazil

Former Jacobina Mine Manager, Brazil. Mining Engineer with over 30 years experience including Anglo Gold and
Desert Sun Mining.

Les Ford, Technical Director of Brazilian Operations

With over 40 years of experience constructing, developing and producing vanadium projects, Mr. Ford is arguably
one of the world’s foremost experts in vanadium. Previously Assistant General Manager of Highveld Steel and a
member of the Highveld Executive committee and Managing Director of Rand Mines Vansa.

Rodrigo Costa, Operations Director

Most recently Metallurgy Manager with a major mining company in Brazil. His previous experience includes
commissioning and constructing mines as well as acting as General Manager with one of Brazil's largest private
mining companies.

Kevin Brewer, P. Geo., General Manager – Northern Dancer Project

Geologist with over 20 years of mining and exploration experience combined with extensive knowledge of
regulatory and environmental assessment processes.

Deborah Battiston, C.G.A., Chief Financial Officer

Over 20 years of accounting and financial management experience. 3
 Management Breakdown
Mark Brennan
President & CEO

Tim Mann, P. Eng. Robert Campbell, P. Geo.

Chief Operating Officer VP Exploration

Kurt Menchen Kevin Brewer

General Manager, General Manager, Yukon

Rodrigo Costa Les Ford Israel Nonato

Director of Operations Technical Director Senior Exploration Geologist

Mauricio Coletti Eldes Bittencourt

Mining Engineer Geologist

Mauro Silva Mike Henderson

Electrical Engineer Geologist

Carlos Lorenzo
Environmental Geologist Toronto
Main Office Location Brazil
Yukon
4
4
 Strong Board of Directors

Stan Bharti, P.Eng., Chairman

Over 25 years experience in operations, public markets and finance. Has raised over $500 million in the last
decade. Former founder and Chairman of Desert Sun Mining.

Mark Brennan, President/CEO and Director

Founding member of Desert Sun Mining with over 20 years financing experience in North America & Europe.
Founder and principal of Linear Capital, Brasoil Corporation, James Bay Resources, and Morumbi Oil & Gas.

Bill Pearson, Ph.D., P.Geo., Director & Technical Advisor

Over 33 years experience in the mining & exploration industry; former VP Exploration at Desert Sun Mining.

Mike Hoffman, P.Eng., Director

Professional mining engineer with over 25 years experience; former VP at Yamana Gold and Desert Sun Mining

William Clarke, Director

Former Ambassador to Brazil and Sweden. Former Advisor to Desert Sun Mining.

Dr. Allen Alper*

Accomplished senior executive, 30 year career at Osram Sylvania. Formerly VP and General Manager Osram
Chemical/Metallurgical Division (15 years). Expert in manufacturing and marketing of Tungsten, Molybdenum
and other strategic metals. Holder of 33 patents in high temperature metals.

* Advisory Board member

5
 Company Overview

Positioned to be a leading player in the primary production of

vanadium:

 Top two undeveloped vanadium deposits in the world

 Potential lowest cost producer of primary vanadium
 Vanadium prices rebounding

Potential to be a leading non Chinese producer of tungsten

 Largest undeveloped tungsten-moly deposit in the world

 Short term low cost production opportunity: Currais Novos
 Strong long term relationships with industry leaders

6
 Why Invest in Vanadium?

 Strategic Metal with the highest strength to weight ratio

 World production totals only 70,000 tons per year and demand
continues to grow

 Main Commercial use: steel industry

 Small amount doubles the strength of steel alloy and increases corrosion and
abrasion resistance
 Airplanes, automobiles, construction

 The future of Vanadium is

 Vanadium will play an integral role in the green revolution
 Lithium Redox Batteries & Clean Energy Technologies
 Vanadium increases effectiveness of energy storage – energy can be
stored longer and re-charged faster
 Electric cars, solar panels, wind turbines etc.
 New applications = increasing demand
7
 Vanadium Uses: Steel Drives Demand

Steel industry: 90% ferro-vanadium end use

 Carbon Steel 36%

 High strength low alloys 22%
 Stainless/tool 9%
 Full Alloy 20%

Ferro-vanadium (FeV) used in high performance steels for:

 Construction (building frames, bridges, etc.)

 Ship construction
 Structural applications
 Airplanes
 Automobiles and parts
 Railways
 Tools

8
Vanadium Uses: Growth in Green Technologies

Vanadium Redox Storage Batteries

 Wind Turbines
 Solar Panels
 Backup Electrical Systems
 Hybrid/Electric Cars

Diagram of a Vanadium Flow Battery 9

 Vanadium and Green Batteries
Voltage with Different Cathodes (v)
Vanadium phosphate cathode material 4.8
Vanadium Advantages

►
can support 20% more energy storage than 4.1 4.0
cobalt oxide, 26% more than iron 3.7 3.6
3.3
phosphate and 56% more than manganese
oxide, solving the issue of quick discharge in
electric cars

► Highest voltages measured, generating a

more powerful battery
Li3V2(PO4)3 LiVPO4F LiMn2O4 LiCoO2 Li2FePO4F LiFePO4

Lithium Vanadium Electric Car

Photo Courtesy of Tesla Motors

The potential demand for electric cars can substantially increase demand for lithium-ion
batteries with cathodes compounded by vanadium 10
Source: USGS, Byron Capital Markets
 Vanadium Projects

 Top Two Undeveloped Vanadium

Deposits in the World

 Potential to be one of the Lowest Cost

Producers

Location Highlights
 Located in mining-friendly and politically stable
Brazil

 Established infrastructure: roads, electricity,

shipping routes, water sources and ports

 Local communities provide access to labor and

basic supplies

11
 Maracás Vanadium Project, Brazil

Highest Grade Vanadium Deposit in the World

 Mineral reserve: 13.1 million tonnes grading 1.34% Vanadium Pentoxide

 Mineral Resource: 23.2 million tonnes grading 1.27% Vanadium

Pentoxide (measured + Indicated)

Deposit Characteristics
 Rio Jacaré intrusion
 21 concessions totalling 27,172 ha (40 km x 2.5 km)
 Vanadium is contained in Magnetite with a higher iron content
than others
 High iron content results in highly magnetic magnetite making
beneficiation very efficient giving high vanadium recoveries.
 Produces a concentrate with much higher V2O5, higher Fe, and
lower SiO2 than any other deposit

12
 Maracás Resource and Property Maps

NI 43-101 Resource was defined solely on Gulcari “A” deposit

Gulcari “A” deposit detail

Maracás
concessions and
strike length =
tremendous
exploration upside

13
Cross Section – Gulcari “A” Deposit

14
 Maracás Processing Overview
Results of 2008 Definitive Feasibility Study
 1.94% V2O5 mill feed projected during first 8 years production (mineral reserve)
 Results for Definitive Feasibility Study announced August 2008
 Yearly production 5,000 tonnes Ferrovanadium
 Open pit with low strip ratio of 2.23:1
 Mill throughput of 1,600 tpd
 Recovery of 71.6%
 Proven mining technology and processes
 23 year production plan
 Commissioning 18 months from financing

Upcoming Milestones
→ Project financing underway – announced March 11, 2011
→ Verge of awarding FEED contract
→ Process flow diagrams already drafted – to be reviewed and accepted by EPC
→ Process instrumentation drawings complete – to be reviewed and accepted by EPC
→ Granting of Installation License
→ Equipment purchase & construction
→ Production Q1, 2013

15
 Maracás : Current Operating Parameters

Current ferrovanadium price: US$28.00+ per Kg

Average cash operating costs of US$12.89 per Kg

FeV:
Average pre-tax operating cash
US$ 80.0 MM per year
flow:
Initial CAPEX US$ 212.0 MM

Payback 4.3 Years

(5,000 Tonne Per Annum Scenario)

16
 Largo – Comparative Landscape

Ore Quality*

Maracas South African Australian

Ore V2O5 % 1.34 0.47 0.47
Waste Ratio 2.23 2.00 2.00
Concentrate % SiO2 1.00 2.10 2.30

Concentrate % V2O5 3.42 2.00 1.27

Concentrate Quality*

Maracas South African Australian

Concentrate V2O5 % 3.40 2.00 1.27
SiO2 % in concentrate 1.00 2.00 2.10
V2O5:SiO2 ratio 3.4 1.0 0.6
Fe % 60.0 54.0 53.5
*
*Average grade comparisons compiled by Les Ford, presentation March 8, 2011 17
 Campo Alegre
Vanadium Property, Brazil

Potentially the World’s Second Highest Grade Vanadium Deposit

Non NI 43-101 compliant resource: 133 million

tonnes grading 50% Fe, 21% TiO2 , 0.75% V2O5

 100% owned iron, titanium and

vanadium deposit
 650 kilometres west-northwest of
Salvador with excellent access &
infrastructure
 Property consists of 7 concessions
covering 9,274.66 ha
 24 km by 5.5km

18
 Campo Alegre: Potential to Expand

Deposit details
 Iron, titanium and vanadium mineralization
hosted in extensive laterally continuous
massive magnetite layers in the Campo
Alegre de Lourdes Intrusion
 11 known showings and occurrences traced
along strike for 9 kilometres
 Mag-survey indicates fold structure
 Deposits remain open along strike and at
depth

Exploration plans for 2011

 Preliminary metallurgical testing underway
 Drilling to commence in Q2
 Bring into a compliant resource

19
 Why Invest in Tungsten?

 Strategic Metal with highest melting point of all metals

 Market dominated by China
 Chinese produce 90% of global supply
 Tight export restrictions
 Chinese supply dwindling

 Main Commercial use: steel industry

 Automotive, drilling, electronics, construction materials & pipelines

20
 Tungsten Projects

Northern Dancer (Yukon)

Largest undeveloped tungsten-moly deposit in the
world
 Well situated 10 km off Alaskan Highway
 First-world advantages

Currais Novos (Brazil)

Near term tungsten production – Production
scheduled for July, 2011
 Located on major highway and shipping route
close to ports
 Prolific tungsten mining district
21
 Northern Dancer: Highlights

One of largest undeveloped Tungsten-

Molybdenum deposits in the world

March 2009 NI 43-101 resource estimate:

223.4 MT grading 0.102% WO3 and 0.029%Mo
(Measured & Indicated)

 Higher-grade Tungsten and Molybdenum zone:

 60.3 MT of 0.14% WO3 and 0.045% Mo (M&I) and
 5.4 MT of 0.13% WO3 and 0.047% Mo (Inferred)
 201.2 MT grading 0.09% WO3 and 0.024% Mo
(Inferred)

 PEA Complete
 11,500 metre infill drilling program completed
 Discussions with off-take partners and JV partner

22
 Northern Dancer: PEA Highlights

 Positive NPV of US$ 918 million (at an 8% discount rate)

 Low cash cost producer: US$116 per MTU (Metric Tonne Unit) (current
trading price of US$365 MTU)

 Cumulative cash flow US$ 4.8 billion

 Average annual production of 833,000 MTU tungsten and 5,959,000 lb

molybdenum over initial 23 years

 Potentially one of the world’s largest tungsten producers

 Preliminary Feasibility Study to begin immediately

 Pre-Production Capital Costs : $645 million

23
*Note: includes contingency of 25%
 Northern Dancer PEA

Tungsten Molybdenum IRR (%) NPV @ 8%

(US$ per mtu) (US$ per lb) (US$ millions)

$275 $17.50 20 918

$300 $17.50 22.2 1,110
$325 $17.50 24.4 1,302
$350 $17.50 26.5 1,494
$365* $17.50 27.8 1,769

Tonnage milled for 1st 23 years is 252 Mt at 0.10% WO3 and 0.32 Mo

24
 Northern Dancer: Process Flow

 Crushing at 30,800 tpd

 Sorting using Dual Energy X-Ray Transmission (DE-XRT) (35%
mass reject)
 Milling at 20,000 tpd
 WO3 and Mo concentrate production by flotation methods
 WO3 concentrate converted to APT
 Mo concentrate shipped off-site for roasting
 Overall WO3 recovery is 75%
 Overall Mo recovery is 72%
 APT conversion recovery is 95%
 Pit stripping ratio: W:O = 0.15
25
 Northern Dancer: OPEX

Average Operating Cost Per Tonne Mined (Ore and Waste)

Mining (ore and waste) C$2.20 per tonne mined

Ore re-handling C$0.76 per tonne mined
Concentrator operations C$4.71 per tonne mined
Sorting reject re-handle C$0.88 per tonne mined
Tailings management C$0.20 per tonne mined
APT production C$1.88 per tonne mined
G&A C$1.01 per tonne mined
Total C$10.11 per tonne mined

26
 Northern Dancer: Opportunities to Add Value

 Conducting additional testwork with the objective of refining the Dual

Energy X-Ray Transmission (DE-XRT) technique to improve sorting
recoveries
 Conducting additional flotation testwork to produce a concentrate for
the production of APT, and to endeavour to improve overall flotation
recoveries
 Detailed analysis of the production, costs and marketing of WO3
and/or APT to maximise revenues over the long-term
 Reduce infrastructure costs particularly in respect of power supply.

27
Northern Dancer: Identification of
Higher Grade Zones

28
 Currais Novos:
Good Location & Access

Good Location & Access in

Northeastern Brazil

 165 km west-southwest of Natal in south

central Rio Grande do Norte State,
Brazil
 The nearest community is Currais Novos
(37,300 pop) which lies 12 kilometres
north of the project area
 Access to the project is on the
Campina Grande-Natal Highway
 Excellent site well suited for mine
infrastructure, number of past producers
in the immediate area
 LOI signed to acquire 4 additional
properties

29
 Currais Novos: Summary Highlights

Targeting 1.5 million lbs of WO3 per year

Near term production

 Reprocessing and recovery of tungsten from two tailings piles
deposited during the processing of ore from the Barra Verde and
Boca de Laje tungsten mines
 Previous owners estimate a historical (1980’s) resource of 4.1 million
tonnes (non NI 43-101 compliant resource)
 Due diligence and updated independent resource model
completed
 Plant construction underway
 Production to begin July 2011

30
 Capital Structure

Stock symbol: LGO – TSX.V

Share price (March 11, 2011): $0.41

Shares issued (Basic): 309 million

Management & Institutions: 80%

52-week High/Low: $0.58 / $0.14

Market cap (Basic): C$ 125MM

31
 Investor Contact

Darcie Ladd
Business Development Manager
dladd@largoresources.com
416-861-5938

Mark Brennan
President & CEO
mbrennan@largoresources.com

www.LargoResources.com
32
Largo Resources

APPENDIX
 Vanadium fundamentals
 Maracas feasibility parameters
 Maracas PGM potential
 Tungsten fundamentals

33
 Overview – Vanadium and Steel

Vanadium is used as an additive in steels and alloys because of its properties as an active grain
refiner and deoxidant. Vanadium imparts strength, toughness and wear resistance due to its
strong affinity to carbon. When added to steels and carbons, vanadium is able to retard grain
growth and acts as an effective hardening agent.

 Vanadium is mainly used in the form of ferrovanadium (88%)

 Titanium alloys are the main non-ferrous use. (9%)

Global Vanadium Usage

Steel
Titanium Alloys
Chemicals

Source: CPM group, Vanadium Industry Outlook

34
 Vanadium Demands
Vanadium End - Uses
 Carbon Steel 37%  Full Alloy 20%
 High Strength Low Alloys 22%  Titanium Alloy 9%
 Stainless/tool 9%  Chemicals 3%

4
3.5
3
Carbon
2.5
HSLA
2 STS/Tool
1.5 Full Alloy
Ti Alloy
1
Chemicals
0.5
0
Vanadium End Uses 35
 Sources of Vanadium

Primary:
 Produced from vanadium-rich ore. Mines rely on vanadium for the majority of their revenue.

Co-Products:
 Production of vanadium with steel is driven by the economics of the steel
industry.
 Co-products cannot be increased without increasing the steel production.
By-Products:
 Oil residues and recycling of spent catalyst.
 By Product producers have higher operating costs than most primary and co-product
producers.
 By-Product small Chinese producers currently occupy the “swing producer” in the vanadium
industry. *

2007 2015*
Primary 20% 24%
By-Product 24% 14%
Co-Product 56% 62%

*Source: CRU, Vanadium Outlook 36

 Global Production

2007
World Production
China 46%
Russia 17%
South Africa 36%

2015P**
World Production
Maracás* 5%
Australia 7%
U.S 7%

China 45%
Russia 11%
South Africa 23%

**CRU, Vanadium Market Outlook

37
 Vanadium Price Outlook: Strong

Base Case: World Vanadium Supply and Demand

Annual, Projected through 2018p
Metric Tonnes Market Balance (LHS) Ferro-V Price $/Kg. V.
8,000 $72.00

6,000 $63.00

4,000 $54.00

2,000 $45.00

0 $36.00

-2,000 $27.00

-4,000 $18.00

-6,000 $9.00
Actual Projected
-8,000 $-

Source: CRU 38
 Maracás PGM Exploration Blue Sky

 PGM’s: high Pt:Pd ratio similar to Bushveld

& Great Dyke

 208,000 ounces PGMs

 High Pt:Pd ratio (4:1)

 Higher concentration PGMs interstitial to

sulphides

 Phase II 5,000 metre drill program Q2 2008

 High-priority targets: 700M anomaly NE of

Gulcari “A”; 900M anomaly south of Novo
Amparo

39
 Tungsten End-Use

Hard metals and steel alloy: 81 percent of end-use

End Use in the United States

 heavy machinery and specialty alloys
 jet turbine engines and light-bulb filaments
sporting goods (golf clubs, tennis racquets).
4%
 15% Other
 electronics
 pipelines
 mining & construction materials.
Steel Alloys

Mill Products

61% 20%
Hard Metals

Tungsten Applications in the US

*Source: (USGS) 40
 China tungsten demand
US domestic tungsten source
 The US is entirely dependant on imports and US Strategic stockpile.
 Companies outside China with tungsten exposure are few and far between.
 2007, US tungsten imports 11,500 tonnes from mainly: China, Canada, Bolivia
and Portugal.
 US account for 13% of total tungsten consumption. Source: (USGS)

China demand growth

 Global Industry Analyst, Inc : China’s own use of tungsten was growing at 8 percent
per year.

 China is the world’s largest tungsten consumer.

 Chinese industries demand tungsten and authorities are keen to ensure

uninterrupted supply.

41