Mr. Mark Brennan reports

LARGO PROVIDES OPERATIONAL UPDATE

Largo Resources Ltd. has provided an operational update for its Maracas Menchen mine in Bahia, Brazil. To date, a total of approximately 1,140 tonnes (2.5 million pounds) has been shipped from the Maracas mine. This represents an increase of approximately 408 shipped tonnes (900,000 pounds) since the company's last operational update on Dec. 3, 2014 (see press release dated Dec. 3). The company currently has approximately 60 tonnes of recent production in inventory, and commercial shipments have been continuing on a weekly basis.

During the month of January, 2015, the Maracas mine production output has been running between approximately 55 per cent to 75 per cent of capacity.

Mark Brennan, Largo's president and chief executive officer, stated: "We continue to see steady growth in the ramp-up of the Maracas mine. We are achieving greater stability in the operations and expect to see continued momentum in our production growth to reach our phase 1 target production by the third quarter."

Largo has been producing vanadium at the Maracas mine since August, 2014, with the ramp-up of production expected to take 12 months. As such, the company's focus for 2015 is on achieving peak phase 1 production capacity in the third quarter of 2015.

Vanadium market update

Vanadium pricing has decreased significantly since January, 2014, where it was trading at approximately $6 per pound, and currently remains at a five-year low trading at $4.85 to $5.15 per pound vanadium pentoxide on the bid offer (metal bulletin). Historically, the $5 range has been a floor for vanadium pricing. Since January, 2005, vanadium has traded below $5 on both the bid and offer for only 72 days, and a total of 158 days where the bid price was below $5.

Based on historical trends, Largo believes that vanadium pricing is unsustainable at current levels for a long period of time and continues to monitor the situation carefully.

Continuing disclosures regarding the Maracas mine

Going forward, the company will provide updates on its 2015 production and operational outlook on a quarterly basis in its 2015 management discussion and analysis, and quarterly/annual statements, which will be filed on SEDAR and on the company's website following their release. The company also announces its intention to host quarterly conference calls, following the release of its quarterly/annual financial statements. The company may also choose, at its discretion, to release additional updates and information regarding the Maracas mine by press release, e-mail and blog updates, or through social media. Largo encourages its investors and interested parties to subscribe to its mailing list on the company website.

Quality assurance and quality control

Michael Mutchler, chief operating officer of Largo, and a qualified person under National Instrument 43-101, has reviewed and approved the contents of this press release.

We seek Safe Harbor.