Mr. Mark Smith reports

LARGO REPORTS FIRST QUARTERLY NET INCOME AND OTHER FINANCIAL AND OPERATIONAL HIGHLIGHTS FOR Q3 2017

Largo Resources Ltd. has released highlights of its financial results for the quarter ended Sept. 30, 2017, as filed in full on SEDAR and on the company's website. The reader is cautioned that this news release should be read in conjunction with the company's unaudited condensed interim consolidated financial statements for the three and nine months ended Sept. 30, 2017, and Sept. 30, 2016, as well as management's discussion and analysis (MD&A) for the three and nine months ended Sept. 30, 2017.

Highlights:

• Largo is for the first time reporting quarterly net income since its Maracas Menchen mine started commercial production. Net income for Q3 2017 of $13.5-million compares with a loss of $24.7-million for Q3 2016.
• Operating cash flows before changes in non-cash working capital items increased to $29.5-million, from $11.0-million in Q2 2017 and negative $1.4-million in Q3 2016.
• For the nine months ended Sept. 30, 2017, the company recorded $45.6-million in operating cash flow before changes in non-cash working capital items, versus negative $15.7-million for the nine months ended Sept. 30, 2016.
• V2O5 (vanadium pentoxide) production increased to its highest quarterly level to date of 2,513 tonnes in Q3 2017, from 2,183 tonnes in Q2 2017 and 2,182 tonnes for Q3 2016, with record monthly production of 888 tonnes in August, 2017.
• Revenues increased to $53.5-million in Q3 2017, from $35.8-million in Q2 2017 and from $20.8-million in Q3 2016, mainly driven by higher V2O5 prices and increased production.
• Overall metallurgical V2O5 recovery increased to 76.5 per cent in Q3 2017, from 74.3 per cent in Q2 2017 and 71.8 per cent in Q1 2017.
• Cash costs remained at $3.56 (U.S.) per pound, the same level as for Q2 2017, but on a Brazilian-real basis represents the lowest cost quarter since the start of commercial production (11.27 reais).
• Cash increased to $16.0-million in Q3 2017, from $12.4-million in Q2 2017, and restricted cash reduced to $200,000 in Q3 2017, from $8.3-million in Q2 2017. The reduction in restricted cash is primarily attributable to the settlement of outstanding bank guarantee fees over the course of Q3 2017.

                            Q3 2017 FINANCIAL HIGHLIGHTS*
                                                                       Q3               YTD
                                                             2017    2016     2017     2016  

Revenues                                                   $ 53.5  $ 20.8   $118.7   $ 49.8  
Direct mine and mill costs                                   20.1    20.5     60.9     55.5  
Net income (loss)                                            13.5   (24.7)   (10.1)   (44.0)
Basic earnings (loss) per common share                     $ 0.03  $(0.06)  $(0.02)  $(0.12)
Cash provided (used) before non-cash working capital items   29.5    (1.4)    45.6    (15.7)
Net cash provided by (used in) operating activities           8.1     0.0     20.1    (20.5)

* Financial numbers are reported in millions of Canadian dollars, except for per-share 
amounts.

A 158-per-cent increase in Q3 revenues, driven mainly by higher V2O5 prices and increased production

Revenues for Q3 2017 represent a 158-per-cent increase over Q3 2016, and year-to-date revenues represent a 139-per-cent increase over the corresponding period last year.

Significant increase in cash generation

Revenues for Q3 2017 exceeded direct mine and mill costs by $33.4-million, and cash provided before non-cash working capital items for Q3 2017 was $29.5-million, representing increases of $33.2-million and $30.9-million, respectively, over Q3 2016.

Mark Smith, president and chief executive officer for Largo, stated: "Our Q3 2017 financial performance is our best to date and the first time Largo has achieved net income and earnings per share. This represents a significant improvement over previous quarters and was driven by excellent operating performance, especially due to our improvements in overall recovery levels and robust vanadium prices. We anticipate continuing to deliver strong financial performance as the vanadium market continues to tighten and place upward pressure on vanadium pricing levels."

Maracas Menchen mine operating results

During Q3 2017, the overall V2O5 recovery was 76.5 per cent, compared with 74.3 per cent in the second quarter 2017 and 71.8 per cent in the first quarter 2017. The company continues to improve its metal recovery as it actively works to reduce costs and increase operational efficiencies. Key components of the improved recovery level in Q3 2017 include the leaching recovery, which improved from 95 per cent in the first quarter of 2017 to 97.8 per cent in Q3 2017, and the kiln recovery, which increased from 85.4 per cent in the second quarter of 2017 to 87.0 per cent in Q3 2017.

The lowest monthly production during Q3 2017 was in July, with an output of 807 tonnes of V2O5. The planned shutdown in July, 2017, to implement improvements in the deammoniator exhaust system impacted production for two days. The improvements were successfully implemented, with operations achieving a new production record of 888 tonnes of V2O5 in August, 2017.

The company sold 20 tonnes of high-purity V2O5 in Q3 2017 (125 tonnes in the nine months ended Sept. 30, 2017). In addition, the company is proceeding with the installation of the necessary equipment to handle and pack V2O5 powder. High-purity V2O5 flake yields a price premium to the company over and above what is received for V2O5 flake.

The cost per pound (in dollars) for Q3 2017 was 7 per cent lower than the second quarter of 2017, primarily due to higher production and higher global metal recovery during Q3 2017. These results are due to the improvements implemented during the kiln refractory shutdown in March and April, 2017, and the improvements made in July and August in the deammoniator exhaust system.

In Q4 2017, the company expects to maintain the higher metal recovery levels achieved in Q3 2017 and to maintain the improved plant performance in order to achieve the targeted production level of 2,493 tonnes of V2O5 in Q4 2017. In addition, the company expects to realize the benefits from completed improvement projects, including the ammonium sulphate dosage system.

Financing highlights during Q3 2017

On July 12, 2017, the company announced that effective June 30, 2017, the syndicate of Brazilian commercial lenders under the company's existing debt facilities have agreed to: (i) terminate the $5,000 (U.S.) March, 2017, capital injection requirement, which has been the subject of a temporary waiver since March 15, 2017; and (ii) postpone the additional $5,000 (U.S.) June, 2017, capitalization requirement until Dec. 31, 2017. The March, 2017, and June, 2017, capitalization requirements had initially been required by the commercial lenders in connection with the 2017 facility. The commercial lenders have further agreed that if the company complies with the required payment obligations, then, on Dec. 31, 2017, the June, 2017, capitalization requirement will also be terminated.

On July 24, 2017, the company announced that it, along with its operating subsidiary, Vanadio de Maracas S.A., has entered into a non-binding term sheet for the restructuring and conversion of the existing short-term loan and swap facility. Highlights of the proposed arrangement include: (i) conversion of the short-term loan into common shares of the company to be issued within 60 days from the date of the definitive agreement; and (ii) renegotiation of the repayment schedule for the swap facility and accrued interest, and, upon fulfilment of certain payment milestones, the long-term restructuring of the swap facility and accrued interest. Refer to the company's press release dated July 24, 2017, for further details. To allow time for this restructuring to be finalized, the company executed an amendment to its short-term loan on Aug. 28, 2017, to defer payments to October, 2017.

During the nine months ended Sept. 30, 2017, 13,381 warrants were exercised, resulting in proceeds to the company of $3,906.

        SUMMARY OF THE COMPANY'S Q3 2017 FINANCIAL RESULTS*

                                    At Sept. 30, 2017    At Dec. 31, 2016

Cash                                           $ 16.0              $  0.8          
Restricted cash                                   0.2                 2.1
Total current assets                             58.9                32.2         
Mine properties, plant and equipment            300.2               321.1        
Total assets                                    359.1               353.3        
Total current liabilities                       114.8                94.1         
Total liabilities                               318.9               326.5

                                                   Q3                 YTD         
                                         2017    2016       2017     2016

Operating costs                        $ 30.2  $ 30.0     $ 89.7   $ 83.0  
Net income (loss)                        13.5   (24.7)     (10.1)   (44.0)
Basic earnings (loss) per share          0.03   (0.06)     (0.02)   (0.12)
Net cash provided by (used in)
Financing activities                      0.7     2.1       10.6     31.2  
Investing activities                     (5.0)   (4.1)     (14.7)   (12.1)

* Financial numbers are reported in millions of Canadian dollars, 
except for per-share amounts. Refer to the non-GAAP (generally accepted
accounting principles) measures section of the company's MD&A for a 
discussion regarding the calculation of non-GAAP measures and 
additional discussion of cash operating costs elsewhere in the company's 
MD&A. 

CASH OPERATING COSTS SINCE THE COMMENCEMENT OF COMMERCIAL PRODUCTION ON OCT. 1, 2015*

             Production  Production pounds     Cost per pound   
                 tonnes         equivalent     Canadian $    U.S. $   Brazilian real

Q3 2017           2,513          5,540,210          $4.47     $3.56      11.27 reais
Q2 2017           2,183          4,812,685          $4.80     $3.56      11.46 reais
Q1 2017           2,062          4,545,926          $5.19     $3.90      12.31 reais
Q4 2016           2,304          5,079,444          $4.82     $3.60      11.90 reais
Q3 2016           2,182          4,810,481          $4.67     $3.59      11.61 reais
Q2 2016           2,311          5,094,877          $4.19     $3.25      11.40 reais
Q1 2016           1,169          2,577,201          $6.52     $4.75      18.51 reais
Q4 2015           1,654          3,646,441          $5.97     $4.47      17.20 reais

* The reader is cautioned that the cash operating costs presented are intended to 
serve as a guide to the magnitude of the company's monthly operating expenditures 
on a cash basis and excludes financing costs associated with the operations and 
non-cash accounting charges (including but not limited to depreciation and 
amortization expense, accretion, share-based payments, or foreign exchange and 
derivative gains or losses). The measure may therefore not be comparable with other 
companies or the results of similar operations, and does not meet any definition of 
GAAP. Refer to the non-GAAP measures section of the MD&A.

                                         2017 PRODUCTION GUIDANCE
                                                                          Estimated annual            Estimated annual
                                                                                   average                     average
                    Annual            Annual           Average      U.S. $/Canadian $ cash      U.S. $/Canadian $ cash
                production        production            annual             operating costs             operating costs
                  high-end           low-end        production        per tonne (1) (2) (3)       per tonne (1) (2) (3)

          29,751 tonnes (4)  8,751 tonnes (4)  9,251 tonnes (4)               $8,237 (U.S.)                $3.74 (U.S.)
2017 (2)  ~21.5 million lb  ~19.3 million lb  ~20.4 million lb           $10,991 (Canadian)            $4.99 (Canadian)

(1) The cash operating costs reported are on a non-GAAP basis. Cash operating costs include all cash expenditures, the
main categories being mining costs, plant and maintenance costs, sustainability costs, mine and plant administration 
costs, royalties, and selling, general and administrative (SG&A) costs. Cash operating costs excludes depreciation and
amortization charges, interest or any other debt servicing costs, and commissions on sales. Refer to the non-GAAP 
measures section of the MD&A. The estimated average annual Brazilian-real/U.S.-dollar and Canadian-dollar/U.S.-dollar
exchange rates used for 2017 are approximately 3.22 and 1.33, respectively.
 
(2) Excludes corporate SG&A or capex (capital expenditures). 

(3) The reader is cautioned that the cash operating costs presented are intended to serve as a guide to the magnitude 
of the company's monthly operating expenditures on a cash basis and excludes financing costs associated with the 
operations and non-cash accounting charges (including but not limited to depreciation and amortization expense, 
accretion, share-based payments, or foreign exchange and derivative gains or losses). The measure may therefore not 
be comparable with other companies or the results of similar operations, and does not meet any definition of GAAP. 
Refer to the non-GAAP measures section of the MD&A.

(4) Conversion of tonnes to pounds; one tonne equal to 2,204.62 pounds.

Significant events and transactions subsequent to Q3 2017

On Oct. 10, 2017, the company executed an amendment to the terms of the $2,000 (U.S.) bridge loan it had entered into with a shareholder of the company on April 12, 2017. Under the revised terms, the maturity date is extended from Oct. 11, 2017, to Dec. 16, 2017, in return for the company paying an extension fee of $120 (U.S.) on or before Dec. 16, 2017. Should the company repay the bridge loan in full prior to Dec. 16, 2017, the extension fee will be reduced to $70 (U.S.).

On Oct. 6, 2017, 10,714 warrants with an exercise price of $3.50 and an estimated grant date fair value of $6,400 expired unexercised.

On Oct. 12, 2017, 115 warrants with an exercise price of 29 cents and 128 warrants with an exercise price of 65 cents were exercised, resulting in gross proceeds to the company of $116. On Nov. 2, 2017, 35 warrants with an exercise price of 29 cents and 50 warrants with an exercise price of 65 cents were exercised, resulting in gross proceeds to the company of $43.

On Oct. 30, 2017, the company executed an amendment to the terms of its $4,425 (U.S.) short-term loan to extend the $500 (U.S.) principal, plus interest, due on Oct. 31, 2017, to Nov. 30, 2017.

About Largo Resources Ltd.

Largo Resources is a growing strategic mineral company focused on the production of vanadium pentoxide at its Vanadio de Maracas Menchen mine. Vanadium is primarily used as an alloy to strengthen steel and reduce its weight. As trends in the steel industry now demand increasingly stronger and lighter products for advanced applications, the use of vanadium is expected to grow over the medium and long term. Largo also has interests in a portfolio of other projects, including: a 100-per-cent interest in the Currais Novos tungsten tailings project in Brazil; a 100-per-cent interest in the Campo Alegre de Lourdes iron-vanadium project in Brazil; and a 100-per-cent interest in the Northern Dancer tungsten-molybdenum property in the Yukon Territory, Canada.

We seek Safe Harbor.