Largo Resources One2One Investor Presentation 6th June 2013

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Largo Resources One2One Investor Presentation 6th June 2013

Near Term VANADIUM Producer

CORPORATE PRESENTATION

June, 2013

www.largoresources.com


Forward 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.

2


Production in sight.

As at May 21, 2013

3


Maracas Vanadium Project

• Vanadium Project in Brazil

• Highest grade; lowest cost project

• Funded and in construction

• Production to begin in Q4, 2013

• Glencore Off-take: 100% Take-or-Pay Contract

Set to capitalize on rising demand for high-strength steel

4


Vanadium – a Strategic Metal

• Most used alloy to strengthen steel

• Found with iron

• Highly magnetic

• Proven process for separation

Makes steel stronger, tougher and lighter

Source: vanitec.org/Roskill, 2013

5


Vanadium – Few Substitutes

2lbsV

1 Tonne

of Steel

= 2X

Strength

Strongest strength to weight ratio of any alloy

Source: vanitec.org

6


Demand is growing

Demand Drivers:

CAGR through 2017

• Higher quality steel standards in BRICs

• Growth of V use in steel production

• Growth in applications for V

Very tight Supply/Demand balance

Source: Roskill, 2013

7


Growth Example

%V in Rebar

2010

0.08% 0.07% 0.05% 0.023%

Minimum

0.05%

2013+

Source: Les Ford Vanadium and Steel presentation, PDAC 2010

8


Supply is Concentrated

• China 39,000 tonnes

• South Africa 19,600 tonnes

• Russia 7,800 tonnes

Total Market:

76,000 tonnes

Brazil production provides stability of supply

Source: Roskill, 2013

9


Maracas – Ideal Location

• Government and local support

• Arid climate, ideal topography

• Management with regional experience

Located in a safe, mining friendly jurisdiction

10


Maracas - Mineralization

Long strike zone

• Magnetite deposit

• Mineralization at surface

• Highest grade and quality ore

• Contains Platinum Group Metals

11


Concessions and Mineralization

Gulcari “A” Deposit Detail

Maracás concessions

and strike length

12


Maracas – Resource Estimates

Mineral Resources

Mineral 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

13


Maracas – Project Highlights

• Funded and in construction

• Experienced management

• Excellent Infrastructure

• Available workforce

• Ideal for open pit mining

Supported by strong economics

14


Maracas Project Economics

Net Present Value $554 million

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

*including iron ore byproduct credit

**Average years 1-15

15


Low Cost Environment

OPEX costs*

• Open pit mining

• At surface deposit

• Highly magnetic ore

• Few contaminants

• Water leaching process

Ore provides better recoveries and reduces input costs

*including iron ore byproduct credit

16


Cost Advantage

Highest Grade/Quality Vanadium Deposit in the World

Vanadium is contained in magnetite with a

higher iron content than others

=

Better recoveries, requires less power and

less chemicals

=

Concentrate with much higher V 2 O 5 , higher

Fe, and lower SiO 2 (contaminant) than any

other deposit

=

Ore V 2 O 5 % Concentrate

SiO 2 %

Concentrate

V 2 O 5 %

LOWEST COST PRODUCTION

*Average grade comparisons compiled by Les Ford, presentation March 8, 2011 17


Process Flow Sheet

Proven, industry tested process

18


Production Ramp-Up

Production Profile

Year

Production

Tonnes V2O5 Equiv.

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

Operating

Cash Flow

Near to steady cash flow

19


Sensitivity to Pricing

$20.00

$15.00

$10.00

$5.00

$0.00

Historical High/Low Vanadium Pricing

Per Lb V2O5

Low Price

High Price

Largo cost

Price per Lb NPV IRR

$5.49 $469 million 23.4%

$6.37 3 yr Avg. $554 million 26.3%

$7.44 $638 million 29.2%

$6.00 as at May 6/13 $520 million 25.2%

20


Strong Partners

Glencore International Plc.

Off-take agreement

• Largest trader of Vanadium

• Take-or-pay agreement

• 100% of all material produced

De-risked product sale

21


Strong Management

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

Douglas Herbst

Country Manager &

Maracas Project

Manager

Maracas Construction

Manager

30+ years mining engineering experience

operating mines in Brazil

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

22


Commissioning Target Range

Maracas Construction Schedule

2012 2013

Q2

Q3

Q4

Q1 Q2 Q3 Q4

Engineering

COMPLETE

Procurement Services

Equipment Fabrication

Civil Works

Crushing System Erection

Milling System Erection

Kiln System Erection

Sulphate Salt Recovery

System Erection

Deammoniator/ Furnace

Erection

Utilities System Erection

Eletrical Line Contract

Water Pipeline Erection

COMPLETE

23


Site Development

Processing Plant

Admin Facilities

Concrete Plant

Main Access Road

Crushing and Milling

Gulcari “A” Deposit and Open Pit

24


Site Development

Processing Plant

Admin Facilities

Concrete Plant

Main Access Road

Crushing and Milling

Project as at May 21, 2013

25


Site Development

Implementation at

Primary Crushing Area

26


Site Development

Conveyor from Primary Crushing

Area to Secondary Crusher

27


Site Development

Pedestal for Kiln and Cooler

28


Site Development

Installation of base for magnetic

separator with ball mill foundation

and thickening tank

29


Site Development

Civil Works in Main Plant Area

Foundation for Main Ball Mill with

Installation of Baseplates in Progress

30


Site Development

Civil Works in Main Plant Area

31


Site Development

Transformer in completed switchyard

32


Corporate Structure

Stock symbol:

LGO – TSX-V

Share price (May 22, 2013): $0.18

Shares issued (Basic):

Market Cap

870 million

C$157 million

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

Management & Institutions: 75%

Warrants & Options (Basic):

250 million

Currais Novos Project

Shareholder site visit – August 2012

Shareholders & Project Partners

Institutional Shareholders

Arias Resource Capital-19.9%

Mackenzie Investments-15.9%

Eton Park Capital Management-12.5%

Ashmore Investment Management-12.5%

Project Partners

Glencore International

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

Major Tungsten End User

100% Off-take agreement for Currais Novos tungsten

project

33


Secondary Projects

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

34


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

Substantially de-risked flagship project with near term cash flow

35


Darcie Ladd

Business Development Manager

dladd@largoresources.com

416-861-9406

Mark Brennan

President and CEO

mbrennan@largoresources.com

416-861-9797

Largo Resources

@LargoResources1

Largo Resources

www.LARGORESOURCES.com

55 University Ave. Suite 1101

Toronto, ON – M5J 2H7

36


Appendix

• Board of Directors

• TSX – TSXV Market

• Maracas Cashflow Projections

• Maracas Mining Process

• Maracas Deposit Outcrop

• Tungsten

• Currais Novos

• Northern Dancer

• Campo Alegre de Lourdes

37


Appendix: Strong Board

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

38


TSXV - TSX Mining Market

Decline in market cap of top 100 mining

companies on the TSXV in 2012

TSXV loss over past 12 months

YTD loss Market Vectors Junior

Gold Index (GDXJ)

YTD loss Global Mining Index

(TXGM)

YTD loss Global Gold Index (XGD)

YTD loss in Global Base Metals

Index (ITXBM)

Mining IPOs in Q1, 2013

As at, May 27, 2013

Source: http://www.pwc.com/en_CA/ca/junior-mining-headquarters/publications/pwc-junior-rmine-2012-11-en.pdf

Source: http://finance.yahoo.com/news/tough-times-continue-junior-mining-162000422.html

39


Maracas Projected Cash flow*

$140

$120

$100

$80

$60

$40

Significant Cash Flow

After-tax Operating Cash Flow

Free Cash Flow

$20

$0

2014 2015 2016 2017 2018

Implementing Expansion & FeV plant

*See press release dated Jan 18, 2013

40


Appendix: Maracas 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

Simple, Cost-Effective Open

Pit Mining Process

• Deposit outcrops at surface

• Less than 1 meter pre-stripping

• High grade material from

surface continues to depth

*See press release dated Jan 18, 2013

**Includes all royalties less credit Iron Ore byproduct

41


Appendix: Maracas Deposit Outcrop

150 meters

Magnetite

25 meters of

ore at surface

Dips at 65 ◦

Gabbro (waste)

42


Appendix: Tungsten

Tungsten [W74]

Tungsten is unique in its extreme

qualities and difficult to replace

Tungsten is….

Very Hard

• Only diamonds are harder

• 100X harder than steel

Cemented Carbide Usage

Very Heat

Resistant

• Highest melting point

• Lowest expansion

Very Dense

• Greater than lead or

uranium

Source: Roskill, 2011

Source: Minor Metals Trade Association

43


Appendix: Tungsten

Supply

Demand

Tungsten Scored 4 th

Most at Risk out of 52

Elements

95,000 Tonnes

(2015)

67,000 Tonnes

(2011)

Production

Consumption

17%

Growing

at 7%

per year

Source: British Geological Survey’s Risk List, 2011

Source: US Gelological Survey

Source: Roskill, 2011/Europacific Canada, April 12, 2012

44


Appendix: 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

45


Appendix: Currais Novos

Summary Highlights

Currais Novos

Site Visit – August 2012

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

46


Appendix: Northern Dancer Project

Northern Dancer Resource Estimate

223.4 MT grading 0.102% WO 3 and

0.029% Mo (M&I)

Higher-grade tungsten and molybdenum zone: 60.3

MT of 0.14% WO 3 and 0.045% Mo (M&I)

201.2 MT grading 0.09% WO 3 and

0.024% Mo (I)

Development Milestones

PEA complete

Environmental permitting under way

Discussions with off-take partners and

JV partner

47


Appendix: Northern Dancer

PEA Highlights

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

Tungsten

(US$ per MTU)

Moly

(US$ per lb)

IRR (%)

$275 $17.50 20.0 918

NPV @ 8%

(US$ millions)

Strategic asset for long term

supply of tungsten

Attractive economics at

current tungsten prices

$300 $17.50 22.2 1,110

$325 $17.50 24.4 1,302

$350 $17.50 26.5 1,494

$365 $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.

48


Appendix: Campo Alegre Project

Non NI 43-101 Resource:

133 Million Tonnes Grading 50% Fe,

21% TiO 2 , 0.75% V 2 O 5 *

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)

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