Largo Resources arranges $50-million placement

May 7, 2015

Largo Resources Ltd. has arranged a financing of up to $50-million. Mackie Research Capital Corporation will act as lead agent and sole book-runner (the “Agent”), in connection with a private placement of units (the “Units”) to raise aggregate gross proceeds of up to C$50 million, at an issue price (the “Issue Price”) of C$0.80 per Unit. The Offering (the “Offering”) will be conducted on a “best efforts” private placement basis.

Each Unit will consist of one common share (“Common Share”) and one-half of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant will entitle the holder thereof to acquire one Common Share (a “Warrant Share”) for an exercise price of C$1.50 per Warrant Share for a period of 12 months following the Closing of the Offering.

The Company has also granted the Agent an option (the “Agent’s Option”) to increase the size of the Offering by up to 15% in Units by giving written notice of the exercise of the Agent’s Option, or a part thereof, to the Company at any time up to 48 hours prior to the Closing of the Offering.

The Company expects it will receive significant commitments from existing shareholders to participate in the Offering, subject to completing subscription agreements and receipt of any regulatory approvals.

A minimum equity raise of US$35 million is one of the conditions precedent to the Company’s restructuring of its debt facilities for its Maracas Menchen Mine with its commercial consortium of lenders. The net proceeds from the Offering will be used by the Company for the continued development of the Maracas Menchen Mine, and for general corporate purposes.

The Offering will take place by way of a private placement to qualified investors in such provinces of Canada (except Quebec) as the Agent may designate, and otherwise in those jurisdictions where the Offering can lawfully be made under applicable private placement exemptions.

The closing of the Offering is expected on or about the week of May 15, 2015 (the “Closing”) and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals including the approval of the TSX Venture Exchange.

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