Largo Resources Ltd. Announces a Non-Binding Term Sheet IN Respect of the Restructuring and Conversion of Existing Debt Facilities with Banco Pine

LARGO RESOURCES LTD. ANNOUNCES A NON-BINDING TERM SHEET

IN RESPECT OF THE RESTRUCTURING AND CONVERSION

OF EXISTING DEBT FACILITIES WITH BANCO PINE

TORONTO – Largo Resources Ltd. ("Largo" or the "Com pany") (TSX: LGO) (OTCQB: LGORF) is

pleased to announce that it, along with its operating subsidiary, Vanádio de Maracás S.A. ("Vanádio"),

have entered into a non-binding term sheet for the restructuring and conversion of their existing debt

facilities with Banco Pine S.A (the "Lender").

Highlights of the Proposed Arrangement:

• Conversion of an existing USD $4,425,475 credit fa cility between the Company and the Lender

(the "USD Facility") into common shares of Largo to be issued within 60 days from the date of a

definitive agreement (the "Agreement"); and

• Renegotiation of the repayment schedule for an exi sting BRL $89,127,631 credit facility

(including accrued interest) between Vanádio and the Lender and guaranteed by Largo (the BRL

Facility”) and, upon fulfilment of certain payment milestones, the long-term restructuring of the

BRL Facility.

Details of the Debt-to-Equity Conversion

The Company and the Lender anticipate the Agreement to provide for the conversion of the full

outstanding amount under the USD Facility into comm on shares of Largo. The converted common

shares would be issuable within 60 days from the date of the Agreement. Until the Agreement has been

finalized and the conversion has occurred, interest shall accrue on the outstanding amount of the USD

Facility in accordance with the underlying loan agreement. The Lender will also receive a restructuring

fee that may be payable in common shares. Any debt-to-equity conversion contemplated by the

Agreement will be subject to receipt of all required approvals.

It is expected that, upon conversion of the debt to common shares, the Lender will enter into a lock-up

agreement under which it will not sell, assign, encumber or otherwise dispose of the converted common

shares for six months from the execution of the Agreement.

Details of the BRL Facility Restructuring

It is anticipated that, under the terms of the Agre ement, the payment schedule for the BRL Facility wi ll

be amended to allow Vanádio up to 290 days from the execution of the Agreement to pay USD

$8,500,000 (approximately BRL $26,800,000) towards the outstanding amount of the BRL Facility (the

"Initial Payment"). If, following the Initial Payment, the outstanding amount of the BRL Facility is higher

than BRL $69,000,000, Vanádio must make an addition al payment to reduce the outstanding amount

of the BRL Facility to this amount.

Upon fulfilment of the Initial Payment, it is expec ted that the remaining amount outstanding under the

BRL Facility will be refinanced through a new loan agreement, the terms of which are likely to include:

(i) a maturity date 7 years from the date of execut ion;

(ii) a floating interest rate equal to IPCA (“Índic e Nacional de Preços ao Consumidor Amplo”; the

Broad Consumer Price Index, currently 3.0%), with a cap of 12% per annum;

(iii) any interest accruing during the first 12 months from the Initial Payment shall be paid at the end

of the first year. Thereafter interest shall be pai d on a semi-annual basis until December 2021.

From January 2022 until the maturity date interest shall be paid monthly;

(iv) no outstanding principal shall be repayable un til 2021. At which time, 1% of the principal shall

be repaid in 2021; 5% of the principal shall be repaid in 2022; 15% of the principal shall be repaid

in 2023; and the balance of the principal shall be repaid in monthly instalments until maturity;

and

(v) Vanádio shall have the right to prepay the outstanding amount under the restructured facility at

any time.

Mark Smith, President and Chief Executive Officer f or Largo, stated: "We believe that the proposed

restructuring of these facilities will result in a debt profile that enables the Company to more accurately

match its future cash flows with its debt servicing obligations. We are very pleased with the strong

support shown by Banco Pine in working with the Company to find a solution that benefits both parties.

This outcome would not have been possible without a ll of the hard work of the Largo team that has

enabled us to provide stable production at a low un it cost. This foundation along with our world class

resource will ensure the future success of Largo as vanadium prices continue to rise."

About Largo

Largo Resources Ltd. is a growing strategic mineral company focused on the production of vanadium

pentoxide at its Vanadio de Maracás Menchen Mine. V anadium is primarily used as an alloy to

strengthen steel and reduce its weight. Vanadium enhanced steels are used in a vast and growing range

of products that are used and encountered every day ; including, rebar, automobiles, transport

infrastructure etc. As trends in the steel industry now demand increasingly stronger and lighter products

for advanced applications, the use of vanadium is e xpected to grow over the medium and long term.

Largo also has interests in a portfolio of other projects, including: a 100% interest in the Currais Novos

Tungsten Tailings Project in Brazil; a 100% interes t in the Campo Alegre de Lourdes Iron-Vanadium

Project in Brazil; and a 100% interest in the North ern Dancer Tungsten-Molybdenum property in the

Yukon Territory, Canada. For more information, please visit www.largoresources.com .

Forward Looking Information

Disclaimer: This press release contains forward-loo king information under Canadian securities

legislation. Forward-looking information includes, but is not limited to, statements with respect to

completion of the loan restructuring and conversion of existing debt and the definitive terms thereon;

Largo's development potential and timetable of its operating, development and exploration assets;

Largo's ability to raise additional funds necessary ; the future price of vanadium, tungsten and

molybdenum; the estimation of mineral reserves and mineral resources; conclusions of economic

evaluation; the realization of mineral reserve esti mates; the timing and amount of estimated future

production, development and exploration; costs of future activities; capital and operating expenditures;

success of exploration activities; mining or proces sing issues; currency exchange rates; government

regulation of mining operations; and environmental risks. Generally, forward-looking statements can be

identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is

expected", "budget", "scheduled", "estimates", "for ecasts", "intends", "anticipates" or "does not

anticipate", or "believes", or variations of such w ords and phrases or statements that certain actions ,

events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". All

information contained in this news release, other than statements of current and historical fact, is forward

looking information. Forward-looking statements 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 Largo to be materially different from those expressed or implied by such forwardlooking statements,

including but not limited to those risks described in the annual information form of Largo and in its public

documents filed on SEDAR from time to time. Forward -looking statements are based on the opinions

and estimates of management as of the date such sta tements are made. Although management of

Largo has attempted to identify important factors that could cause actual results to differ materially from

those contained in forward-looking statements, 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. Largo

does not undertake to update any forward-looking st atements, except in accordance with applicable

securities laws. Readers should also review the risks and uncertainties sections of Largo's annual and

interim MD&As.