Largo Inc (LGO)

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Largo announces significant increase in Maracás Project Mineral Reserves and Updated Mine Plan

May 26, 2016

40% increase in Mineral Reserves to 18.3618.4 million tonnes Proven and Probable Mineral Reserves with an average grade of 1.17% V2O5
Retrospective 51% increase in aggregate tonnage when factoring in tonnage milled to date

TORONTO, May 26, 2016 /CNW/ - Largo Resources Ltd. (TSX-V:LGO) (OTCQB: LGORF) ("Largo" or the "Company") is pleased to announce a 40% increase in the mineral reserves for the Campbell Pit at its Maracás Menchen Vanadium Mine in Bahia, Brazil (the "Maracás Project") and a new mine plan for the Maracás Project. The update, prepared by Whittle Consulting ("Whittle"), Micon International ("Micon") and RungePincockMinarco (Canada) Ltd. ("RPM"), has increased the proven and probable mineral reserves for the Maracás Project to 18.4 million tonnes from the 13.1 million tonnes established previously in the 2008 definitive feasibility study (the "Feasibility Study") for the project (updated in 2009) by Aker Metals, a division of Aker Solutions Canada Inc. ("Aker") (see Largo news release dated August 12, 2008). The new mine plan, based on the production of vanadium pentoxide ("V2O5") and larger mineral reserves, results in an operating life of the Maracás Project and process plant of 15 years at a 9,600 tonnes V2O5 per annum production rate.

Highlights of the Updated Maracás Project Mine Plan and Mineral Reserves:

- 40% increase in Proven and Probable Mineral Reserves to 18.4 million tonnes, at a grade of 1.17% V2O5.
- Retrospective increase of 51% in aggregate tonnage when factoring in tonnage mined to date.
- Mine life of 15 years.
- The ore averages 29.5% magnetics (magnetite) which yields an average concentrate grade of 3.32% V2O5.
- New mine plan to produce V2O5 flakes rather than ferrovanadium ("FeV") to improve project economics and allow faster ramp-up of production.

Mr. Mark A. Smith, President and Chief Executive Officer of Largo stated: "We are very pleased with the updated reserve as it continues to demonstrate the robust nature of the project. The reserve supports the high performance of our operation." He further stated: "The reserve is the result of our greater understanding and knowledge of the orebody, and the next phase of our work will be to systematically upgrade the resources in the satellite deposits in order that they may contribute to the expansion of the project."

Read more at: http://www.largoresources.com/English/investors/news/news-release-details/2016/Largo-announces-significant-increase-in-Maracs-Project-Mineral-Reserves-and-Updated-Mine-Plan/default.aspx