RARE EARTHS, SPECIALITY& STRATEGIC METALSINVESTMENT SUMMIT       Creating a World Leading Strategic Mineral Company       ...
Creating a World Leading Strategic Mineral CompanyMarch 2011                                                              ...
Forward Looking StatementsThe information presented contains “forward-looking statements”, within the meaning of the Unite...
Experienced Management TeamMark Brennan, President & CEOFounding member of Desert Sun Mining with over 20 years financing ...
Management Breakdown                                                 Mark Brennan                                         ...
Strong Board of DirectorsStan Bharti, P.Eng., ChairmanOver 25 years experience in operations, public markets and finance. ...
Company OverviewPositioned to be a leading player in the primary production ofvanadium: Top two undeveloped vanadium depo...
Why Invest in Vanadium?   Strategic Metal with the highest strength to weight ratio   World production totals only 70,00...
Vanadium Uses: Steel Drives DemandSteel industry: 90% ferro-vanadium end use        Carbon Steel                      36%...
Vanadium Uses: Growth in Green Technologies                   Vanadium Redox Storage Batteries                         Wi...
Vanadium and Green Batteries                                                                                Voltage with D...
Vanadium Projects Top Two Undeveloped Vanadium Deposits in the World Potential to be one of the Lowest Cost Producers Lo...
Maracás Vanadium Project, Brazil           Highest Grade Vanadium Deposit in the World Mineral reserve: 13.1 million tonn...
Maracás Resource and Property Maps                NI 43-101 Resource was defined solely on Gulcari “A” deposit            ...
Cross Section – Gulcari “A” Deposit                                      14
Maracás Processing OverviewResults of 2008 Definitive Feasibility Study 1.94% V2O5 mill feed projected during first 8 yea...
Maracás : Current Operating Parameters      Current ferrovanadium price:       US$28.00+ per Kg  Average cash operating co...
Largo – Comparative Landscape                Ore Quality*                                              Maracas        Sout...
Campo Alegre              Vanadium Property, Brazil     Potentially the World’s Second Highest Grade Vanadium DepositNon N...
Campo Alegre: Potential to ExpandDeposit details Iron, titanium and vanadium mineralization    hosted in extensive latera...
Tungsten Projects                Northern Dancer (Yukon)                     Largest undeveloped tungsten-moly deposit in...
Capital Structure          Stock symbol: LGO – TSX.VShare price (March 11, 2011): $0.41        Shares issued (Basic): 309 ...
Investor Contact             Darcie Ladd   Business Development Manager     dladd@largoresources.com             416-861-5...
Largo Resources    APPENDIX   Vanadium fundamentals   Maracas feasibility parameters   Maracas PGM potential   Tungste...
Overview – Vanadium and SteelVanadium is used as an additive in steels and alloys because of its properties as an active g...
Vanadium DemandsVanadium End - Uses       Carbon Steel             37%    Full Alloy       20%       High Strength Low ...
Sources of VanadiumPrimary: Produced from vanadium-rich ore. Mines rely on vanadium for the majority of their revenue.Co-...
Global Production                                     2007                                 World Production               ...
Vanadium Price Outlook: StrongBase Case: World Vanadium Supply and DemandAnnual, Projected through 2018pMetric Tonnes     ...
Maracás PGM Exploration Blue Sky   PGM’s: high Pt:Pd ratio similar to Bushveld    & Great Dyke   208,000 ounces PGMs   ...
Tungsten End-UseHard metals and steel alloy: 81 percent of end-useEnd Use in the United States    heavy machinery and spe...
China tungsten demand US domestic tungsten source    The US is entirely dependant on imports and US Strategic stockpile. ...
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Creating a World Leading Strategic Mineral Company

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Objective Capital's Rare Earths, Speciality & Strategic Metals

Investment Summit 2011
Ironmongers' Hall, City of London
17 March 2011
Speaker: Tim Mann, Largo Resources

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Creating a World Leading Strategic Mineral Company

  1. 1. RARE EARTHS, SPECIALITY& STRATEGIC METALSINVESTMENT SUMMIT Creating a World Leading Strategic Mineral Company Tim Mann– COO, Largo Resources IRONMONGERS’ HALL, CITY OF LONDON ● THURSDAY, 17 MAR 2011 www.ObjectiveCapitalConferences.com
  2. 2. Creating a World Leading Strategic Mineral CompanyMarch 2011 TSX.V:LGO www.largoresources.com A Member of the Forbes & Manhattan Group of Companies
  3. 3. Forward Looking StatementsThe information presented contains “forward-looking statements”, within the meaning of the United States Private Securities Litigation Reform Actof 1995, and “forward-looking information” under similar Canadian legislation, concerning the business, operations and financial performanceand condition of the Company. Forward-looking statements and forward-looking information include, but are not limited to, statements withrespect to the estimation of mineral reserves and mineral resources; the realization of mineral reserve estimates; the timing and amount ofestimated future production; costs of production; metal prices and demand for materials; capital expenditures; success of exploration anddevelopment 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 theuse 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”, 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-lookinginformation are based on the opinions and estimates of management as of the date such statements are made, and they are subject to knownand unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of theCompany 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 toreceive board approvals; timing and availability of external financing on acceptable terms; risks relating to international operations; actualresults of exploration activities; conclusions of economic valuations; changes in project parameters as plans continue to be refined; andfluctuating metal prices and currency exchange rates.. Although management of the Company has attempted to identify important factorsthat could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there maybe other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will proveto be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers shouldnot place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update anyforward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicablesecurities laws.Investors are advised that National Instrument 43-101 of the Canadian Securities Administrators requires that each category of mineral reservesand 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 ResourcesThe information presented uses the terms “measured”, “indicated” and “inferred” mineral resources. United States investors are advised thatwhile such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does notrecognize these terms. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and as to their economic and legalfeasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadianrules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautionednot to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investorsare also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.
  4. 4. Experienced Management TeamMark Brennan, President & CEOFounding member of Desert Sun Mining with over 20 years financing experience in North America & Europe.Founder and principal of Linear Capital, Brasoil Corporation, James Bay Resources, Morumbi Oil & Gas and formerPresident, CEO and Chairman of Admiral Bay Resources.Tim Mann, P. Eng., Chief Operating OfficerMining Engineer with extensive international operations and management experience in mine engineering,development and mine 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, BrazilFormer Jacobina Mine Manager, Brazil. Mining Engineer with over 30 years experience including Anglo Gold andDesert Sun Mining.Les Ford, Technical Director of Brazilian OperationsWith over 40 years of experience constructing, developing and producing vanadium projects, Mr. Ford is arguablyone of the world’s foremost experts in vanadium. Previously Assistant General Manager of Highveld Steel and amember of the Highveld Executive committee and Managing Director of Rand Mines Vansa.Rodrigo Costa, Operations DirectorMost recently Metallurgy Manager with a major mining company in Brazil. His previous experience includescommissioning and constructing mines as well as acting as General Manager with one of Brazils largest privatemining companies.Kevin Brewer, P. Geo., General Manager – Northern Dancer ProjectGeologist with over 20 years of mining and exploration experience combined with extensive knowledge ofregulatory and environmental assessment processes.Deborah Battiston, C.G.A., Chief Financial OfficerOver 20 years of accounting and financial management experience. 3
  5. 5. Management Breakdown Mark Brennan President & CEOTim Mann, P. Eng. Robert Campbell, P. Geo.Chief Operating Officer VP Exploration Kurt Menchen Kevin Brewer General Manager, General Manager, Yukon Rodrigo Costa Les Ford Israel Nonato Director of Operations Technical Director Senior Exploration Geologist Mauricio Coletti Eldes Bittencourt Mining Engineer Geologist Mauro Silva Mike Henderson Electrical Engineer Geologist Carlos Lorenzo Environmental Geologist Toronto Main Office Location Brazil Yukon 4 4
  6. 6. Strong Board of DirectorsStan Bharti, P.Eng., ChairmanOver 25 years experience in operations, public markets and finance. Has raised over $500 million in the lastdecade. Former founder and Chairman of Desert Sun Mining.Mark Brennan, President/CEO and DirectorFounding member of Desert Sun Mining with over 20 years financing experience in North America & Europe.Founder and principal of Linear Capital, Brasoil Corporation, James Bay Resources, and Morumbi Oil & Gas.Bill Pearson, Ph.D., P.Geo., Director & Technical AdvisorOver 33 years experience in the mining & exploration industry; former VP Exploration at Desert Sun Mining.Mike Hoffman, P.Eng., DirectorProfessional mining engineer with over 25 years experience; former VP at Yamana Gold and Desert Sun MiningWilliam Clarke, DirectorFormer Ambassador to Brazil and Sweden. Former Advisor to Desert Sun Mining.Dr. Allen Alper*Accomplished senior executive, 30 year career at Osram Sylvania. Formerly VP and General Manager OsramChemical/Metallurgical Division (15 years). Expert in manufacturing and marketing of Tungsten, Molybdenumand other strategic metals. Holder of 33 patents in high temperature metals.* Advisory Board member 5
  7. 7. Company OverviewPositioned to be a leading player in the primary production ofvanadium: Top two undeveloped vanadium deposits in the world Potential lowest cost producer of primary vanadium Vanadium prices reboundingPotential to be a leading non Chinese producer of tungsten Largest undeveloped tungsten-moly deposit in the world Short term low cost production opportunity: Currais Novos Strong long term relationships with industry leaders 6
  8. 8. Why Invest in Vanadium? Strategic Metal with the highest strength to weight ratio World production totals only 70,000 tons per year and demand continues to grow Main Commercial use: steel industry  Small amount doubles the strength of steel alloy and increases corrosion and abrasion resistance  Airplanes, automobiles, construction The future of Vanadium is  Vanadium will play an integral role in the green revolution  Lithium Redox Batteries & Clean Energy Technologies  Vanadium increases effectiveness of energy storage – energy can be stored longer and re-charged faster  Electric cars, solar panels, wind turbines etc.  New applications = increasing demand 7
  9. 9. Vanadium Uses: Steel Drives DemandSteel industry: 90% ferro-vanadium end use  Carbon Steel 36%  High strength low alloys 22%  Stainless/tool 9%  Full Alloy 20%Ferro-vanadium (FeV) used in high performance steels for:  Construction (building frames, bridges, etc.)  Ship construction  Structural applications  Airplanes  Automobiles and parts  Railways  Tools 8
  10. 10. Vanadium Uses: Growth in Green Technologies Vanadium Redox Storage Batteries  Wind Turbines  Solar Panels  Backup Electrical Systems  Hybrid/Electric Cars Diagram of a Vanadium Flow Battery 9
  11. 11. Vanadium and Green Batteries Voltage with Different Cathodes (v) Vanadium phosphate cathode material 4.8 Vanadium Advantages ► can support 20% more energy storage than 4.1 4.0 cobalt oxide, 26% more than iron 3.7 3.6 3.3 phosphate and 56% more than manganese oxide, solving the issue of quick discharge in electric cars ► Highest voltages measured, generating a more powerful battery Li3V2(PO4)3 LiVPO4F LiMn2O4 LiCoO2 Li2FePO4F LiFePO4 Lithium Vanadium Electric Car Photo Courtesy of Tesla MotorsThe potential demand for electric cars can substantially increase demand for lithium-ionbatteries with cathodes compounded by vanadium 10Source: USGS, Byron Capital Markets
  12. 12. Vanadium Projects Top Two Undeveloped Vanadium Deposits in the World Potential to be one of the Lowest Cost Producers Location Highlights  Located in mining-friendly and politically stable Brazil  Established infrastructure: roads, electricity, shipping routes, water sources and ports  Local communities provide access to labor and basic supplies 11
  13. 13. Maracás Vanadium Project, Brazil Highest Grade Vanadium Deposit in the World Mineral reserve: 13.1 million tonnes grading 1.34% Vanadium Pentoxide Mineral Resource: 23.2 million tonnes grading 1.27% Vanadium Pentoxide (measured + Indicated) Deposit Characteristics Rio Jacaré intrusion 21 concessions totalling 27,172 ha (40 km x 2.5 km) Vanadium is contained in Magnetite with a higher iron content than others High iron content results in highly magnetic magnetite making beneficiation very efficient giving high vanadium recoveries. Produces a concentrate with much higher V2O5, higher Fe, and lower SiO2 than any other deposit 12
  14. 14. Maracás Resource and Property Maps NI 43-101 Resource was defined solely on Gulcari “A” deposit Gulcari “A” deposit detail Maracás concessions and strike length = tremendousexploration upside 13
  15. 15. Cross Section – Gulcari “A” Deposit 14
  16. 16. Maracás Processing OverviewResults of 2008 Definitive Feasibility Study 1.94% V2O5 mill feed projected during first 8 years production (mineral reserve) Results for Definitive Feasibility Study announced August 2008  Yearly production 5,000 tonnes Ferrovanadium  Open pit with low strip ratio of 2.23:1  Mill throughput of 1,600 tpd  Recovery of 71.6%  Proven mining technology and processes  23 year production plan  Commissioning 18 months from financingUpcoming Milestones→ Project financing underway – announced March 11, 2011→ Verge of awarding FEED contract → Process flow diagrams already drafted – to be reviewed and accepted by EPC → Process instrumentation drawings complete – to be reviewed and accepted by EPC→ Granting of Installation License→ Equipment purchase & construction→ Production Q1, 2013 15
  17. 17. Maracás : Current Operating Parameters Current ferrovanadium price: US$28.00+ per Kg Average cash operating costs of US$12.89 per Kg FeV: Average pre-tax operating cash US$ 80.0 MM per year flow: Initial CAPEX US$ 212.0 MM Payback 4.3 Years(5,000 Tonne Per Annum Scenario) 16
  18. 18. Largo – Comparative Landscape Ore Quality* Maracas South African Australian Ore V2O5 % 1.34 0.47 0.47 Waste Ratio 2.23 2.00 2.00 Concentrate % SiO2 1.00 2.10 2.30 Concentrate % V2O5 3.42 2.00 1.27 Concentrate Quality* Maracas South African Australian Concentrate V2O5 % 3.40 2.00 1.27 SiO2 % in concentrate 1.00 2.00 2.10 V2O5:SiO2 ratio 3.4 1.0 0.6 Fe % 60.0 54.0 53.5* *Average grade comparisons compiled by Les Ford, presentation March 8, 2011 17
  19. 19. Campo Alegre Vanadium Property, Brazil Potentially the World’s Second Highest Grade Vanadium DepositNon NI 43-101 compliant resource: 133 milliontonnes grading 50% Fe, 21% TiO2 , 0.75% V2O5  100% owned iron, titanium and vanadium deposit  650 kilometres west-northwest of Salvador with excellent access & infrastructure  Property consists of 7 concessions covering 9,274.66 ha  24 km by 5.5km 18
  20. 20. Campo Alegre: Potential to ExpandDeposit details Iron, titanium and vanadium mineralization hosted in extensive laterally continuous massive magnetite layers in the Campo Alegre de Lourdes Intrusion 11 known showings and occurrences traced along strike for 9 kilometres Mag-survey indicates fold structure Deposits remain open along strike and at depthExploration plans for 2011 Preliminary metallurgical testing underway Drilling to commence in Q2 Bring into a compliant resource 19
  21. 21. Tungsten Projects Northern Dancer (Yukon) Largest undeveloped tungsten-moly deposit in the world  Well situated 10 km off Alaskan Highway  First-world advantagesCurrais Novos (Brazil) Near term tungsten production – Production scheduled for July, 2011  Located on major highway and shipping route close to ports  Prolific tungsten mining district 20
  22. 22. Capital Structure Stock symbol: LGO – TSX.VShare price (March 11, 2011): $0.41 Shares issued (Basic): 309 million Management & Institutions: 80% 52-week High/Low: $0.58 / $0.14 Market cap (Basic): C$ 125MM 21
  23. 23. Investor Contact Darcie Ladd Business Development Manager dladd@largoresources.com 416-861-5938 Mark Brennan President & CEO mbrennan@largoresources.comwww.LargoResources.com 22
  24. 24. Largo Resources APPENDIX Vanadium fundamentals Maracas feasibility parameters Maracas PGM potential Tungsten fundamentals 23
  25. 25. Overview – Vanadium and SteelVanadium is used as an additive in steels and alloys because of its properties as an active grainrefiner and deoxidant. Vanadium imparts strength, toughness and wear resistance due to itsstrong affinity to carbon. When added to steels and carbons, vanadium is able to retard graingrowth and acts as an effective hardening agent. Vanadium is mainly used in the form of ferrovanadium (88%) Titanium alloys are the main non-ferrous use. (9%) Global Vanadium Usage Steel Titanium Alloys ChemicalsSource: CPM group, Vanadium Industry Outlook 24
  26. 26. Vanadium DemandsVanadium End - Uses  Carbon Steel 37%  Full Alloy 20%  High Strength Low Alloys 22%  Titanium Alloy 9%  Stainless/tool 9%  Chemicals 3% 43.5 3 Carbon2.5 HSLA 2 STS/Tool1.5 Full Alloy Ti Alloy 1 Chemicals0.5 0 Vanadium End Uses 25
  27. 27. Sources of VanadiumPrimary: Produced from vanadium-rich ore. Mines rely on vanadium for the majority of their revenue.Co-Products: Production of vanadium with steel is driven by the economics of the steelindustry. Co-products cannot be increased without increasing the steel production.By-Products: Oil residues and recycling of spent catalyst. By Product producers have higher operating costs than most primary and co-productproducers. By-Product small Chinese producers currently occupy the “swing producer” in the vanadiumindustry. * 2007 2015* Primary 20% 24% By-Product 24% 14% Co-Product 56% 62% *Source: CRU, Vanadium Outlook 26
  28. 28. Global Production 2007 World Production China 46% Russia 17% South Africa 36% 2015P** World Production Maracás* 5% Australia 7% U.S 7% China 45% Russia 11% South Africa 23%**CRU, Vanadium Market Outlook 27
  29. 29. Vanadium Price Outlook: StrongBase Case: World Vanadium Supply and DemandAnnual, Projected through 2018pMetric Tonnes Market Balance (LHS) Ferro-V Price $/Kg. V. 8,000 $72.00 6,000 $63.00 4,000 $54.00 2,000 $45.00 0 $36.00 -2,000 $27.00 -4,000 $18.00 -6,000 $9.00 Actual Projected -8,000 $-Source: CRU 28
  30. 30. Maracás PGM Exploration Blue Sky PGM’s: high Pt:Pd ratio similar to Bushveld & Great Dyke 208,000 ounces PGMs High Pt:Pd ratio (4:1) Higher concentration PGMs interstitial to sulphides Phase II 5,000 metre drill program Q2 2008 High-priority targets: 700M anomaly NE of Gulcari “A”; 900M anomaly south of Novo Amparo 29
  31. 31. Tungsten End-UseHard metals and steel alloy: 81 percent of end-useEnd Use in the United States heavy machinery and specialty alloys jet turbine engines and light-bulb filaments sporting goods (golf clubs, tennis racquets). 4% 15% Other electronics pipelines mining & construction materials. Steel Alloys Mill Products 61% 20% Hard Metals Tungsten Applications in the US *Source: (USGS) 30
  32. 32. China tungsten demand US domestic tungsten source  The US is entirely dependant on imports and US Strategic stockpile.  Companies outside China with tungsten exposure are few and far between.  2007, US tungsten imports 11,500 tonnes from mainly: China, Canada, Bolivia and Portugal.  US account for 13% of total tungsten consumption. Source: (USGS)China demand growth Global Industry Analyst, Inc : China’s own use of tungsten was growing at 8 percent per year. China is the world’s largest tungsten consumer. Chinese industries demand tungsten and authorities are keen to ensure uninterrupted supply. 31

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