Lgo corporate presentation june 2013

www.largoresources.com

Near Term VANADIUM Producer

June, 2013

CORPORATE PRESENTATION

Metals and Mining Deal of the Year

Forward Looking StatementsForward 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.

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3

Production in sight.

As at May 21, 2013

Maracas Vanadium ProjectMaracas Vanadium Project

Vanadium Project in Brazil Highest grade/quality; lowest cost project Funded and in construction Production to begin in Q4, 2013 Glencore Off-take: 100% Take-or-Pay Contract

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Set to capitalize on rising demand for high-strength steel

Metals and Mining Deal of the Year

Vanadium – a Strategic MetalVanadium – a Strategic Metal

Most used alloy to strengthen steel Found with iron Highly magnetic Proven process for separation

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Makes steel stronger, tougher and lighter

Source: vanitec.org/Roskill, 2013

Vanadium – Few Substitutes Vanadium – Few Substitutes

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Strongest strength to weight ratio of any alloy

Source: vanitec.org

Demand is growingDemand is growing

Demand Drivers:

Higher quality steel standards in BRICsGrowth of V use in steel productionGrowth in applications for V

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Very tight Supply/Demand balance

CAGR through 2017

Source: Roskill, 2013

Growth ExampleGrowth Example

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0.08% 0.07% 0.05% 0.023%

2010

Minimum

0.05%

2013+

Source: Les Ford Vanadium and Steel presentation, PDAC 2010

%V in Rebar

Supply is ConcentratedSupply is Concentrated

China 39,000 tonnes South Africa 19,600 tonnes Russia 7,800 tonnes

Total Demand: 76,000 tonnesTotal Supply: 71,000 tonnes

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Brazil production provides stability of supply

Source: Roskill, 2013

Maracas – Ideal LocationMaracas – Ideal Location

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Located in a safe, mining friendly jurisdiction

Government and local support Arid climate, ideal topography Management with regional experience

Metals and Mining Deal of the Year

Maracas - MineralizationMaracas - Mineralization

Magnetite deposit Mineralization at surface Highest grade and quality ore Contains Platinum Group Metals

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Long strike zone

Concessions and MineralizationConcessions and Mineralization

Gulcari “A ” Deposit Detail

Maracás concessions and

strike length

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Maracas – Resource EstimatesMaracas – Resource Estimates

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Mineral ResourcesMineral Reserve: 13.1 million tonnes @ 1.34% V2O5

Mineral Resource: 24.6 million tonnes @ 1.11% V2O5 (M&I)

30.4 million tonnes @ 0.83% V2O5 (Inferred)

Largo’s grade is 2x higher than industry average

Maracas Project EconomicsMaracas Project Economics

14*including iron ore byproduct credit**Average years 1-15

Net Present Value $554 million

After tax Internal Rate of Return 26.3%

Discount rate 8%

Average Production 11,400 tonnes V2O5 equiv

Mine life 29 Years

Initial CAPEX 235 million

OPEX $2.10*

V2O5 price – 3 year avg $6.37

Average annual cashflow $89 million**

Includes all taxes, royalties, and sustaining capex

Low Cost EnvironmentLow Cost Environment

Open pit mining At surface deposit Highly magnetic ore Few contaminants Water leaching process

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OPEX costs*

Ore provides better recoveries and reduces input costs

*including iron ore byproduct credit

Vanadium Historical PricingVanadium Historical Pricing

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Largo cost

Consistent pricing floor at $5.00

Cost AdvantageCost Advantage

Vanadium is contained in magnetite with a higher iron content than others

Better recoveries, requires less power and 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

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Highest Grade/Quality Vanadium Deposit in the World

= = =

Ore V2O5% Concentrate SiO2%

Concentrate V2O5%

Process Flow SheetProcess Flow Sheet

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Proven, industry tested process

Production Ramp-UpProduction Ramp-Up

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Production Profile

Year ProductionTonnes V2O5 Equiv.

Operating Cash Flow

2014 5,511 $30 million

2015 9,689 $80 million

2016 12,952 $108 million

2017 13,757 $120 million

2018 14,599 $125 million

Near to steady cash flow

Strong PartnersStrong Partners

Glencore International Plc.

Largest trader of VanadiumTake-or-pay agreement100% of all material produced

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Off-take agreement

De-risked product sale

Strong ManagementStrong Management

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Mark Brennan President & CEO 20+ years experience in capital markets

Tim Mann Chief Operating Officer 30+ years mining engineering experience designing, building, operating, managing mines

Les Ford Technical Director Vanadium expert. 40+ years experience building/designing vanadium plants

Kurt Menchen Country Manager & Maracas Project Manager

30+ years mining engineering experience operating mines in Brazil

Douglas Herbst Maracas Construction Manager

30+ years mining engineering experience building mines

Don Clark Construction Advisor Specialist with 30+ years managing, designing and construction of mines

Andy Campbell VP Exploration 30+ years of mining exploration experience

John Laurie Chief Financial Officer 20+ years experience in financial management

Maracas Construction ScheduleMaracas Construction Schedule

2012 2013

Engineering

Procurement Services

Civil Works

Crushing System Erection

Milling System Erection

Kiln System Erection

Sulphate Salt Recovery System Erection

Deammoniator/ Furnace Erection

Utilities System Erection

Equipment Fabrication

Eletrical Line Contract

Water Pipeline Erection

COMPLETE

COMPLETE

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Com

mis

sion

ing

Targ

et

Ran

ge

Q1 Q2 Q3 Q4Q4Q3Q2

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Site DevelopmentSite Development

Gulcari “A” Deposit and Open Pit

Concrete Plant Main Access RoadAdmin

Facilities

Processing Plant

Crushing and Milling

Maracas Deposit OutcropMaracas Deposit Outcrop

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25 meters of ore at surface

150 meters

Magnetite

Gabbro (waste)

◦Dips at 65

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Site DevelopmentSite Development

Concrete Plant Main Access RoadAdmin

Facilities

Processing Plant

Crushing and Milling

Project as at May 21, 2013

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Site DevelopmentSite Development

Implementation at Primary Crushing Area

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Site DevelopmentSite Development

Pedestal for Kiln and Cooler

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Site DevelopmentSite Development

Civil Works in Main Plant Area

Foundation for Main Ball Mill with Installation of Baseplates in Progress

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Site DevelopmentSite Development

Civil Works in Main Plant Area

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Site DevelopmentSite Development

Transformer in completed switchyard

Corporate StructureCorporate Structure

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Stock symbol: LGO – TSX-V

Share price (June 13, 2013):

$0.19

Shares issued (Basic): 897 million

Market Cap C$170 million

52-week High/Low: $0.275 / $0.155

Management & Institutions:

75%

Warrants & Options (Basic):

250 million

Institutional Shareholders

Arias Resource Capital-19.9%

Mackenzie Investments-15.9%

Eton Park Capital Management-12.5%

Ashmore Investment Management-12.5%

Shareholders & Project Partners

Project Finance Deal of the Year Awards - March 2013

Project Partners

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

Business Development Bank of Brazil Bank Itau, Votorantim, Bradesco

Secondary ProjectsSecondary Projects

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Project Jurisdiction Metal Stage

Currais Novos Brazil Tungsten Development – care and maintenance due to drought

Northern Dancer Yukon, Canada Tungsten PEA Complete

Campo Alegre de Lourdes

Brazil Iron, Titanium, Vanadium

Exploration

Blue sky potential to add value

Investment Summary:Investment Summary:

Project funded, permitted and in construction

Advancing towards production in Q4

High grade, low cost production project

Experienced management

Capitalizing on market demand and supply instability

Pipeline of projects in place for growth

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Substantially de-risked flagship project with near term cash flow

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Largo Resources

@LargoResources1

Largo Resources

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www.LARGORESOURCES.com

55 University Ave. Suite 1101

Toronto, ON – M5J 2H7

Darcie LaddBusiness Development Manager

[email protected]

416-861-9406

Mark BrennanPresident and CEO

[email protected]

416-861-9797

AppendixAppendix

Board of Directors

TSX – TSXV Market

Maracas Cashflow Projections

Maracas Mining Process

Tungsten

Currais Novos

Northern Dancer

Campo Alegre de Lourdes

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Appendix: Strong BoardAppendix: Strong Board

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Mark Brennan Director Largo Resources President & CEO

Dirk Donath Director Managing director Eton Park Capital Management

Alberto Arias Director Founder & President Arias Resource Capital

Dan Ioschpe Director CEO of Lopche-Maxion

David Brace Director CEO of Karmin Exploration. Formerly with Aur Resources

Wayne Egan Director Partner at Weir Foulds LLP

Dr. Alan Alper Director Tungsten expert. Formerly with Osram Sylvania

TSXV - TSX Mining MarketTSXV - TSX Mining Market

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YTD loss Market Vectors Junior Gold Index (GDXJ)

TSXV loss over past 12 months

YTD loss in Global Base Metals Index (ITXBM)

Decline in market cap of top 100 mining companies on the TSXV in 2012

YTD loss Global Mining Index(TXGM)

Mining IPOs in Q1, 2013

As at, May 27, 2013Source: http://www.pwc.com/en_CA/ca/junior-mining-headquarters/publications/pwc-junior-rmine-2012-11-en.pdfSource: http://finance.yahoo.com/news/tough-times-continue-junior-mining-162000422.html

YTD loss Global Gold Index (XGD)

Maracas Projected Cash flow*Maracas Projected Cash flow*

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Significant Cash Flow

*See press release dated Jan 18, 2013

Implementing Expansion & FeV plant

Appendix: Maracas Mining Process*Appendix: Maracas Mining Process*

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• 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 $14.29 $61.50 $129.97

Per lb V2O5

/equiv.**$0.82 $2.10 $6.09

*See press release dated Jan 18, 2013**Includes all royalties less credit Iron Ore byproduct

Appendix: TungstenAppendix: Tungsten

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Tungsten [W74]

Tungsten is unique in its extreme qualities and difficult to replace

Source: Roskill, 2011Source: Minor Metals Trade Association

Cemented Carbide Usage

Tungsten is….

Appendix: Tungsten Appendix: Tungsten

41Source: 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)

Growingat 7%

per year

Consumption

Supply

Appendix: Currais NovosAppendix: Currais Novos

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

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Appendix: Currais Novos Summary HighlightsAppendix: Currais Novos Summary Highlights

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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 commissioned in Q3

Modifications to plant are ongoing

Production temporarily suspended due to severe regional drought

Currais NovosSite Visit – August 2012

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Appendix: Northern Dancer ProjectAppendix: Northern Dancer Project

Northern Dancer Resource Estimate223.4 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

Appendix: Northern DancerPEA HighlightsAppendix: Northern DancerPEA Highlights

Tungsten (US$ per MTU)

Moly(US$ per lb)

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

$27

5 $17.50 20.0 918

$30

0 $17.50 22.2 1,110

$32

5 $17.50 24.4 1,302

$35

0 $17.50 26.5 1,494

$36

5$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.

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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$300 MTU

Attractive economics at current tungsten prices

Strategic asset for long term supply of tungsten

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Appendix: Campo Alegre ProjectAppendix: 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)