Symbol: LGO (TSX.V)
www.largo.com TORONTO , July 3, 2012 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") is pleased to announce that it has entered into a definitive agreement with the Business Development Bank of Brazil ("BNDES") for a Brazilian Reais R$333 million (approximately US$166million equivalent) debt financing facility (the "Facility") for its Maracas Project in Bahia, Brazil , as previously disclosed in its press releases dated October 31, 2011 , March 8, 2012 and May 15, 2012 . As a condition precedent to the Facility, the Company has also entered into a guarantee agreement (the "Guarantee") with a consortium of commercial banks in Brazil , led by Banco Itau BBA S.A. and including Banco Votorantim S.A. and Banco Bradesco S.A. , (collectively the "Banks"), to secure the Facility.

The first disbursement by BNDES of approximately R$57 million of the Facility to Largo is expected to occur on or around July 16, 2012 .