largo corporate presentation, december 2012

www.largoresources.com

An Emerging Market Leader

for VANADIUM and TUNGSTEN Production

December, 2012

CORPORATE PRESENTATION

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,”, “projects” 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.

2

Investment Highlights

Exposure to growing supply constrained commodities

Located in politically stable and mining friendly jurisdictions

World-class Maracas Vanadium Project

Lowest cost production

Fully funded, permitted and in construction

Commissioning targeted for Q4, 2013

Substantial cashflow generation in 2014

Potential for significant upside through expansion

High quality Management, Board and supportive core

investor-base

3

Corporate Structure

4

Stock symbol: LGO – TSX-V

Share price (Nov 29, 2012): $0.20

Shares issued (Basic): 870 million

Market Cap C$174 million

52-week High/Low: $0.365 / $0.20

Management & Institutions: 75%

Warrants & Options (Basic): 220 million

Institutional Shareholders

Arias Resource Capital-19.9%

Mackenzie Investments-15.9%

Eton Park Capital Management-12.5%

Ashmore Investment Management-12.5%

Project Partners

Glencore International 100% 6 yr take-or-pay off-take agreement for Maracas

vanadium project

Major Tungsten End User 100% Off-take agreement for Currais Novos tungsten project

Shareholders & Project Partners

Currais Novos Project Shareholder site visit – August 2012

Mark Brennan, President & CEO

Founding member of Desert Sun Mining with over 20 years financing experience in North America and Europe. Founder and

Principal of Linear Capital, Brasoil Corporation, Castle Resources, 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

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 in 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.

Douglas Herbst, Maracas Project Manager

Mr. Herbst has extensive management experience in the design and construction of heavy and medium size industrial projects,

ranging from oil and gas, steel mills, chemical and food plants as well as minerals refining and processing plants

Donald Clark, Construction Advisor and Specialits

Mr. Clark formerly headed up Yamana's construction management team in Brazil. Mr. Clark has over 30 years of experience

managing the design, construction and operations of major mineral processing plants in Brazil and abroad and will provide guidance

with respect to the construction management process for Maracás.

John Laurie, C.G.A., Chief Financial Officer

Over 20 years of accounting and financial management experience.

Experienced Management Team

5

Mark Brennan, President/CEO and Director

Founding member of Desert Sun Mining with over 20 years financing experience in North America and Europe. Founder and

Principal of Linear Capital, Brasoil Corporation, James Bay Resources, and Morumbi Oil & Gas and former President, CEO and

Chairman of Admiral Bay Resources.

Dirk Donath, Director

Senior Managing Director and Partner at Eton Park Capital Management, responsible for Eton Park’s private equity and direct

investment activities in emerging markets. Eton Park is a global, multi-disciplinary investment fund with a capital base of over

US$14 billion.

Dan Ioschpe, Director

Mr. Ioschpe is currently Chief Executive Officer of Lopche-Maxion, an international company operating in the automotive and railroad sectors..

Alberto Arias, Director

Founder and President of Arias Resource Capital Management. He worked for Goldman Sachs & Co and was ranked for five

consecutive years as the #1 Equity Research Analyst for the metals and mining industry in Latin America. Prior to Goldman Sachs,

he worked at UBS as Executive Director and Analyst covering the Latin American mining sector.

David Brace, Director

Mr. Brace is currently Chief Executive Officer and a director of Karmin Exploration and a director of Viking Gold Exploration Inc. Mr. Brace previously served as President of Lambton Capital Inc., a private investment firm focused on evaluating mining investments. He has also served as the Chief Executive Officer and as a director of Globe Star Mining as well as Executive Vice-President of Business Development with Aur Resources Inc. until August, 2007.

Wayne Egan, Director

Mr. Egan is a partner at the law firm of WeirFoulds LLP and acts for several public companies on the TSX and TSX Venture Exchange.

Dr. Alan Alper, Director

Dr. Alper is an accomplished senior executive, with 30 years of experience at Osram Sylvania, Inc., formerly GTE Sylvania.

Strong Board of Directors

6

What is Vanadium?

7

Vanadium [V23]

Vanadium is a grey transition metal

primarily used as an additive to steel

Vanadium Titanium Alloys have the

Highest Strength to Weight Ratio

of any Engineering Material on

Earth

Source: Roskill, 2010 Source: Vanitec

• Imparts tremendous tensile strength when added to steel

Very Hard

•Small amounts of V increase strength and reduce weight of steel

Very Light

•Provides resistance to: seismic events, corosion, abrasion

Very Tough

Vanadium Benefits:

8

0.1%V 1 Tonne of Steel

= 2X Strength

Low input cost

Higher quality product

Source: Roskill, 2010 Source: Vanitec

Construction and engineering

• Largest consumers of steel products

• Vanadium the is most widely used alloying element

to strengthen steel employed in buildings, bridges

and tunnels (North America)

Vanadium is Everywhere:

9

Energy and Utilities

• Steel poles or towers to run cables between

generating plants

• Oil and gas sector including valves and bends in

pipelines; greatest development in pipeline steels for

gas transmission

Source: Vanitec

10

• Rebar for construction

• Automotive parts

• Various tools and dies

• High strength steel structures (like columns in

airports and skyrises)

• Construction machinery and equipment

• Cast iron used for rolls in steel mills

• Chemical plants, oil refineries, offshore-platforms

• Pipelines

Vanadium in steel:

Source: Vanitec

Unstable Supply & Growing Demand

11 Source: Vanitec/US Geological Survey, 2012 Source: Roskill, 2010

Supply Demand

World Reserves Consumption

• Xstrata • Evraz

• Chengda • Panzihua

• Evraz • Stratcor (Evraz)

60,000 Tonnes

per year

Source: Roskill, 2010

CAGR 4.6%

Source: TTP Squared, 2012 Source: Metal Pages Feb 15, 2012 http://bit.ly/VaNEzx

99%

Production

projected 50%

Increase

Long Term Vanadium Pricing

12 * Source: Metal Bulletin

$6.46 per lb

Supply Disruptions

Maracás Vanadium Project

13

Maracas “Base Case” Operating Parameters*

14

Mineral Reserve: 13.1 million tonnes @ 1.34% V2O5

Mineral Resource: 24.6 million tonnes @ 0.83% V2O5 (M&I)

30.4 million tonnes @ 0.83% V2O5 (Inferred)

Average Annual Production (years 1-5) 9,200 tonnes of vanadium pentoxide (V2O5)

Vanadium Pentoxide Price: $6.46 per lb, or $14.24 per Kg (3 year average)

Average Vanadium Pentoxide Operating Costs

$3.12 per lb

IRR and NPV (after taxes, royalties and including sustaining capex)

IRR of 22.4% and NPV of US$274 million (8% discount rate)

Initial Capital Costs: $230,347 ($USD millions)

USD/BR$ Exchange Rate: 2.00

Glencore International Off-take Agreement:

Take or Pay contract for 100% of vanadium products for first 6 years

* As outlined in “Technical Report for the Largo Maracás Vanadium Project Plant, Brazil” announced September 13th 2012

Maracas Grade and Quality

Deposit Characteristics

Vanadium is contained in magnetite with a

higher iron content than others

Better recoveries, less power required, less

chemicals

concentrate with much higher V2O5, higher

Fe, and lower SiO2 (contaminant) than any

other deposit

LOWEST COST PRODUCTION

*Average grade comparisons compiled by Les Ford, presentation March 8, 2011 15

Highest Grade/Quality Vanadium Deposit in the World

=

=

= Ore V2O5% Concentrate

SiO2%

Concentrate

V2O5%

Maracas Mining Process*

16

• Nominal strip ratio 1.95:1

• Deposit outcrops at surface

• Less than 1 meter pre-stripping

• High grade material from

surface continues to depth

Simple, Cost-Effective Open

Pit Mining Process

Unit Mining Cost Total OPEX Revenue

Tonne of ore $9.72 $74.87 $153.57

Per Lb V2O5 $0.40 $3.12 $6.40


Maracas Process Flow

17

• Designed using “best-practices”

from current low-cost producers

• No new processes or technology

• Lower input costs due to ore

quality

• Efficient ramp-up schedule

• 75% capacity reached in 6 months

Proven Low-Cost Process

with Efficient Ramp Up

Development on Track

Procurement orders 95% complete with

orders placed for all long-lead items: • Kiln

• Sodium sulphate crystalliser

• V2O5 reactor

Delivery schedules for equipment meet

commissioning timeline

Civil construction at plant site underway

Water supply pipeline construction in

progress and on track

Installation of 138 kV powerline underway

18

Maracas Site visit – August 2012

Construction Underway and On Schedule

19

Site Development

20

Site Development

Site Development

21

Construction Progress

22

Maracas Projected Cashflow*

23

Significant Cashflow

Generated from Year 1


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 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.

Technical Report Sensitivity Analysis*

24

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

85% 90% 95% 100% 105% 110% 115%

N

P

V

(

U

S

D)

Sale Price (Vanadium Pentoxide)

Project Net Present Value (NPV)

$6.46 $7.36 $5.49

0%

5%

10%

15%

20%

25%

30%

I

R

R

(

%)

Sale Price (Vanadium Pentoxide)

Project Internal Rate of Return

$6.46 $7.36 $5.49

• Current vanadium pricing perceived to

be industry “floor”

• Output cut offs begin at $5.00 per lb

• US$ based commodity

• Main sources of supply prone to

instability


Vanadium Pricing

$8.26 $10.59 $7.40 $13.65 $6.04

Historical Averages (lb V2O5)

$6.92 $6.61

Source: Roskill, 2010

Gulcari “A” Deposit Detail

Maracás concessions

and strike length

Concessions and Mineralization

26

8km

Potential to Expand

Gulcari “A” open pit

(400 m x 450 m)

Resource Update Released in

Q3 2012 • Five new satellite deposits delineated

with total Inferred resources of 27.8

MT containing 232,100 tonnes @

0.83% V2O5

• Increased M&I resources at Gulcari

“A” by 1.4 MT

• Total M&I 24.6 MT containing

272,900 tonnes @ 1.11% V2O5

27

Gulcari “A” deposit is

location of entire Mineral

Reserve

Increase Capacity by 50%

28

Anticipated to require nominal capital

expenditures relative to projected

cashflows

All critical equipment ordered with

expanded capacity to minimize future

capital expenditures

Simple ramp-up process to increase

production once plant is commissioned

Will explore production of both FeV and

vanadium pentoxide for market flexibility

Agreement with Glencore includes potential

for increased production

PEA Underway for Q2, 2013

Technical Report Sensitivity Analysis*

29

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

85% 90% 95% 100% 105% 110% 115%

NPV

(U

SD

)

Operating Cost

Project Net Present Value (NPV)

0%

5%

10%

15%

20%

25%

30%

85% 90% 95% 100% 105% 110% 115%

IRR

(%

)

Operating Cost

Project Internal Rate of Return

• Lowest cost producer with

potential to reduce operating

costs further

• Adoption of “owner-crushing”

projected to reduce opex

• Increase in production output

further decreases opex

• PEA to explore these scenarios

• Anticipated reduction in op-costs

$3.12 $3.59 $2.65

$3.12 $3.59 $2.65


Sensitivity to Operating Costs

(Base Case)

Maracas Summary:

Project fully funded, permitted and in construction

Highest grade deposit

To be lowest cost producer in market

Significant cashflow generated at prices below historical

averages

Strong potential for upside on commodity price in near-term

Commodity with growing demand and unstable supply

30

What is Tungsten?

31

Tungsten [W74]

Tungsten is unique in its extreme

qualities and difficult to replace

Source: Roskill, 2011 Source: Minor Metals Trade Association

Cemented Carbide Usage •Only diamonds are harder

•100X harder than steel Very Hard

•Highest melting point

• Lowest expansion

Very Heat Resistant

•Greater than lead or uranium Very Dense

32

• Heavy construction machinery

• Drilling for mining and oil

• Pipelines

• High temperature equipment and parts

• Heavy artillery and missiles

• Automotive

• Electronics

• Lightbulbs

Tungsten Uses:

Source: Vanitec

Supply Dominated by China

33 Source: British Geological Survey’s Risk List, 2011 Source: US Gelological Survey

Supply Demand

Source: Roskill, 2011/Europacific Canada, April 12, 2012

Production

17%

Tungsten Scored 4th Most at Risk out of 52

Elements

67,000 Tonnes

(2011)

95,000 Tonnes (2015)

Growing at 7%

per year

Consumption

Long Term Tungsten Pricing

34 * Source: Metal Bulletin

projection

Maracas Cash Flow Projections

Maracas: Catalysts for Growth

Year 1 = Current production parameters

Year 2 = Sale of tailings material (pig-iron)

Years 4+ = 50% increase in production capacity

35









•Projections assumes FeV pricing of $28.00 per Kg

Implementation Summary Highlights

36

Commercial Production Commenced December

2011

90 tonnes of concentrate shipped

Initially commissioned without mill due to

importation delay at port

Mill commissioned in February

Plant optimization proceeded to adjust milling

circuit

3 additional screens were added in order to

increase yields

Screens presently being commissioned

Undergoing minor modifications to plant

Production temporarily suspended due to severe

regional drought

Full production anticipated by February, 2013

3 shipments per month (54 tonnes of

concentrate)

Currais Novos Site Visit – August 2012

Identify and Acquire Additional Resources

Historical production district

Significant production from 1940s to 1970s

(approx 8% of global supply)

Numerous potential acquisitions in

immediate vicinity – both underground and

tailings

Provides significant expansion potential

Preliminary exploration underway with goal

of defining additional resources

37

Currais Novos Cash Flow Projections

Currais Novos: Catalysts for Growth

Year 2 = Current production parameters

Year 4+ = following 3 year exploration ramp-up on

recently acquired additional underground properties

* Projections assumes exploration success on aditional properties ramp up

38









projection

39

Northern Dancer Project

Northern Dancer Resource Estimate

223.4 MT grading 0.102% WO3 and

0.029% Mo (M&I)

Higher-grade tungsten and molybdenum zone: 60.3

MT of 0.14% WO3 and 0.045% Mo (M&I)

201.2 MT grading 0.09% WO3 and

0.024% Mo (I)

Development Milestones

PEA complete

Environmental permitting under way

Discussions with off-take partners and

JV partner

Northern Dancer: PEA Highlights

Tungsten (US$ per MTU)

Moly (US$ per lb)

IRR (%) NPV @ 8% (US$ millions)

$275 $17.50 20.0 918

$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

* The PEA is preliminary in nature, and includes inferred resources that are too speculative geologically to have economic considerations applied to them.

There is no certainty that the PEA will be realized. 40

Low cash cost producer: US$116 per MTU

49 year mine life

Pre-production capital costs: $645 million

Cumulative cash flow US$4.8 billion

Average annual production of 833,000 MTU tungsten

(18.3 million pounds) and 5,959,000 pounds

molybdenum over initial 23 years

Current trading price of US$360 MTU

Attractive economics at current tungsten prices

Strategic asset for long term supply of tungsten

41

Campo Alegre Project

Non NI 43-101 Resource:

133 Million Tonnes Grading 50% Fe,

21% TiO2, 0.75% V2O5*

100% owned iron, titanium, and vanadium

deposit - seven concessions covering 9,274.66

hectares

Purchased in 2009 for USD $250,000.00 from

Bahia State Mining Development Agency

(CBPM)

Preliminary metallurgical testwork completed in

2011 suggested potential for titanium dioxide

(TiO2) project

Further metallurgical testing underway in 2012

* Historical resource provided by CBPM (Bahia State Mining Development Agency)

Investment Thesis:

Flagship Maracas project fully funded, permitted and in

construction

• Highest grade deposit

• To be lowest cost producer in market

• Significant cashflow generated at prices below historical averages

• Strong potential for upside on commodity price in near-term

Exposure to commodities with growing demand and unstable

supply

Experienced management team, independent board, supportive

core shareholder base

Projects located in politically stable and mining friendly

jurisdictions

42

43

Largo Resources

@LargoResources1

Largo Resources

43

www.LARGORESOURCES.com

55 University Ave. Suite 1101

Toronto, ON – M5J 2H7

Darcie Ladd Business Development Manager

[email protected]

416-861-9406

Mark Brennan President and CEO

[email protected]

416-861-9797

mailto:[email protected]

mailto:[email protected]

largo corporate presentation, december 2012

Documents

forwardlooking statements

forwardlooking information

inferred mineral resources

mineral resourcesbe

category of mineral

estimation of mineral

convertedinto mineral

united states investors