Largo provides update on Capex Budget for the Maracas Vanadium Project

Largo Resources Ltd.  is pleased to provide an updated budget estimate  for mechanical completion of its Maracas Vanadium Project in Bahia, Brazil .

The current budget forecast for mechanical completion of the project is USD $248 million , which includes the full utilization of a USD $7 million contingency provision that is currently unallocated, versus an initial budget of USD $230 million (see press release September 13, 2012 ).

This forecasted variance of USD $18 million is offset by USD $30 million in additional funding available from the following:

1. USD $17 million equity currently expected to close in mid-December 2013 as set out in a press release dated November 29, 2013.
2. USD $13 million in additional funding under the Project's lending facilities due to depreciation of the Brazilian Real.

As such, the Company expects that it will have sufficient funds to complete the Project's remaining CAPEX. The appreciation in the Maracas Project's budget (+7.8%) is primarily the consequence of delays to the Project's initial completion date resulting from manufacturing issues and the subsequent delay in delivery by a supplier of 4 rollers for the kiln and cooler (see press release August 21, 2013 ). Some of the costs associated with this delay include: additional work hours and incidentals for electro-mechanical contractors and the postponement of anticipated revenue.

Mark Brennan , President and Chief Executive Officer for Largo, stated: "I am extremely pleased with progress at the Maracas Project to date. Although we are disappointed that the delay in the delivery of the kiln cooler rollers has caused a slight increase to our projected budget, I must commend my team for their diligence in maintaining such a close track to the budget despite these circumstances." He added, "It is quite uncommon for projects of this size and scale to be so close to the initial projected budget at this advanced stage of development. We are confident that we will complete construction in Q1, and expect that we will also will continue to track very close to this revised budget for which we are sufficiently funded."