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TSXV: LGO
www.largoresources.com
The Only ‘Pure-Play’
VANADIUM Producer
NOV 2014CORPORATE PRESENTATION
TSXV: LGO
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.
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TSXV: LGO 3
Ramping-Up Production.
Focused on Cash-Flow.
As at October 10, 2013
Project as at February 20, 2013
TSXV: LGO
Maracás Menchen Mine
4
Vanadium Project in Brazil
Highest grade/quality; lowest cost project
Vanadium demand growth 6.5% CAGR
Ramping up production
Commercial shipments ongoing
Glencore Off-take: 100% Take-or-Pay
Best Mining Deal
Metals and Mining Deal of the Year
TSXV: LGO
Maracás Milestones
5
First concentrate produced, Feb 2014
First Production, Aug 2014
Record 24hr production at 71% capacity Oct 2014
Shipments of material commenced Sept 2014
First production achieved Aug 2014
Final CAPEX within 2% of budget July 2014
Feed to plant commenced May 2014
Construction completed April 2014
Recent Achievements:
Operational break-even Dec 2014
Target 100% Phase 1 Capacity June 2015
Production Targets:
TSXV: LGO
What is Vanadium?
Most used alloy to strengthen steel Significantly increases tensile strength Resistant to: seismic, corrosion, abrasion Proven process for separation
6
Steel’s Strongest Alloy
Makes steel stronger, lighter and tougher
Source: vanitec.org/Roskill, 2013
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Vanadium – Few Substitutes
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2lbsV 1 Tonne of Steel
2XStrength
Highest strength to weight ratio of any alloy
Source: vanitec.org
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Uses of Vanadium
8Source: Roskill, 2013
Uses of Vanadium in Steels
Vanadium in Steel
High Strength Low Alloy Steels (HSLA) are the leading market for vanadium in the steel industry
Steel is the largest end-use for vanadium91%
48%
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Vanadium Demand Drivers
Increased use of steel Growth in applications containing V Higher quality steel standards in BRICs
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Strong growth profile
Source: Roskill, 2013
TSXV: LGO 10Source: Vanitec
Vanadium is Everywhere
Rebar for construction
Buildings, bridges, tunnels
Automotive parts Aviation and aerospace
Power lines and power pylons
Pipelines Railway lines, railway cars, cargo containers
Chemical plants, oil refineries, offshore-
platforms
High strength steel structures Various tools and dies
Construction machinery and equipment Missiles and defense ShipsHeavy-wear mechanical
parts Vanadium applications are
growing…
TSXV: LGO 11Source: Autosteel.org, Popular Mechanics, 2008
In 2013 VW announced plans to use new high-strength steel instead of aluminum to make its cars lighter and also to improve fuel efficiency to comply with the strict emissions regulations.
In 2013 Ford announced that the F-150 pickup will soon be 250 to 750 pounds lighter with HSLA steels.
Ram’s 2013 3500 pickup 7,000 pounds additional towing capacity than previous version, by using high-strength steel
Despite the recent rapid growth in the automotive sector with new HSLA steels, Vanadium has a long history with automobiles
1906 Henry Ford first introduced vanadium into the his Model T for the purpose of making it lighter and stronger
Did you know….
Growth Example: Automobiles
TSXV: LGO
Growth Example: Automobiles
12
Growth in Consumption of High-Strength Steels in Automobiles %
Source: Roskill, 2013
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Growth Example: China
13
The output of hot rolled ribbed steels (rebar) accounts for 1/4 of steel production in China.
Vanadium alloyed high-strength rebars have significantly higher resistance to seismic events
Vanadium enhances the engineering quality which reduces the amount of steel used by 10%-20% (and as an added benefit, results in energy saving as well as emissions cutting)
The Chinese government implemented Code for Design and Concrete Structures in 2010 and an Update on the Code in 2011.
This policy seeks to gradually eliminate the use of low strength bars by 2015 and implement an increase in Vanadium content in steel rebar.
(Global Steel 2013, Ernest&Younge)
(Gan Yong,Dong Han “Proceedings of International Seminar on Production and Application of HIgh Strength Seismic Grade Rebar Containing Vanadium”)
Did you know….
TSXV: LGO
China’s Projected Impact on Supply
14Source: Les Ford Vanadium and Steel presentation, PDAC 2010Source: Roskill 2013
% of Vanadium Used per Tonne of Steel by Region
Tota
l To
nn
es
by
Re
gio
n (
V2O
5 E
qu
iv.)
Actual Consumption 2010
Projected Impact of China’s 2013 Rebar Standards
Japan
Europe
China
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Vanadium Batteries?
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Vanadium Redox Batteries are a Potential New Growth Prospect
Renewable energy sources (like wind and solar) generate energy intermittently
This creates a mismatch between supply and demand
VRBs allow energy generated at off-peak times to be time shifted to when it is needed most
Governments like Germany, the USA, China and Japan are now making the development of renewable energy resources mandatory
California requires one third of its power to be generated by renewable energy by 2020
Germany is targeting 80% of energy will come from renewables by 2050.
Did you know….
Source: Journal of Power SourcesSource: California Energy Commission, Renewables Portfolio StandardSource: German Renewable Energies (Act, 2014)
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Largo is the only Pure Play Producer of Vanadium
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Supply is Concentrated
17Source: Roskill, 2013 *Tonnage calculated in V2O5 Equivalent
Total Supply 127,000 Tonnes (V2O5 Equiv)
of Global Supply
Ton
ne
s V
2O5
Eq
uiv
Other8,000
Total Demand 136,000 Tonnes (V2O5 Equiv)
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Global Production by Method
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$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Co-product (slag)production
Primary Production Secondary Production
% of Global Production $ Cost of Production per Lb V2O5 Equiv
$ Largo Cost of Production per Lb V2O5 Equiv
Global Production by Method & Cost
NTD: Prices calculated into V2O5 EquivSource: Roskill 2013; TTP Squared/Atlantic, Vanadium Market OutlookSource: Largo forecast based on company information & industry experts
% o
f Glo
bal P
rod
uctio
n$ C
ost
of
Pro
du
ctio
n
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Vanadium Historical Pricing
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Consistent floor at $5.00 per lb
$ Largo Cost
$ Price V2O5
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Maracás Location Details
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Government and local support Arid climate, ideal topography Management with regional experience Strong tax incentives Local familiarity with mining
Best Mining Deal
Metals and Mining Deal of the Year
Brazil was rated in the top 5 countries for mining investment in 2013
Mining makes up approx. 4% of Brazil’s GDP
Did you know….
Source: Behre Dolbear 2013 Ranking of Countries for Mining Investment
Source: The Economist, June 2013
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Concessions and Mineralization
= Campbell Pit (first 12 Years)
Maracás concessions
and strike length
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Mineral Resources
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+2 Times Industry Average Grade
30.4 Million Tonnes
24.6 Million Tonnes
Gulcari “A” Deposit
Satellite Deposits
Contained within
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0.0 1.0 2.0 3.0 4.0
Co
nce
ntr
ate
SiO
2%C
on
cen
trat
eV
2O5%
Ore
V2O
5%
Maracas Australian South African
Cost Advantage
*Average grade comparisons compiled by Les Ford, presentation March 8, 2011 23
Highest Grade/Quality Vanadium Deposit in the World
Higher head-grade
and higher iron
content
Concentrate has
much higher V2O5
Concentrate has fewer
contaminants like silica
Lowest Cost Production% % % % %
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Campbell Pit Cross Section
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Maracas Project Economics
25NTD: As outlined in 2013 Preliminary Economic Assessment [1] including iron ore byproduct credit – OPEX without credit is $3.18 (still lowest cost producer)[2] Average years 1-15
Net Present Value $554 million
After tax IRR 26.3%
Discount rate 8%
Exchange rate (BRL:USD) 2:1
Average Production 11,400 t V2O5 equiv
Mine life 29 Years
Initial CAPEX 235 million
OPEX $2.10[1]
V2O5 price – 3 year avg $6.37
Average annual cash flow $89 million[2]
Reported after taxes, royalties, SG&A & sustaining capex
Strong Economics
Near-Term Cash Flow
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Low Cost with Potential to Improve
Lower mining costs Lower power costs In-house crushing Depreciation of BRL
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Contracted reductions in operating costs since PEA
*including iron ore byproduct credit - OPEX without credit is $3.18 (still lowest cost producer)
$2.10/lbOPEX costs*
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Vanadium Historical Pricing
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Profitable at historic lows
$ Largo Cost
$ Price V2O5
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Process Flow Sheet
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Proven, industry tested process
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Year 1 Ramp-up Projections
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0
10
20
30
40
50
60
70
80
90
100
110
1 2 3 4 5 6 7 8 9 10 11 12 Year 2
Year 1 Total: 5,511 Tonnes V2O5
Year 2 Total: 9,689 Tonnes V2O5
Plant Capacity: 10,000 Tonnes V2O5
% P
lan
t C
apac
ity
(tim
e o
pe
rati
ng
)
100%
Month
We are Here
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Production Profile
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0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
$0
$20
$40
$60
$80
$100
$120
$140
Year 1 Year 2 Year 3 Year 4 Year 5
Pro
du
ctio
n
Cas
h-f
low
(MIL
LIO
NS
)
Free Cashflow ($M) Operating Cashflow ($M) Tonnes V2O5 Equiv.
Phase 1(10,000 Tonnes Capacity)
Initial Ramp Up
Phase 2(15,000 Tonnes Capacity)
Expanded Production rates & FeV
*As outlined in 2013 Preliminary Economic Assessment – Includes all taxes, royalties, and SG&A**Does not include debt repayment
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Strong Partners
Largest trader of Vanadium Take-or-pay agreement 100% of all material produced
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De-risked product sale
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Strong Management
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Mark Brennan President & CEO 25+ years experience in capital markets
Michael Mutchler Chief Operating Officer 20+ years mining engineering experience operating and managing mines
Les Ford SVP & Technical Director,Brazil
Vanadium expert. 40+ years experience building/operating vanadium facilities globally
Kurt Menchen President of Operations, Brazil
30+ years mining engineering experience operating mines in Brazil
Andy Campbell VP Exploration 30+ years of mining exploration experience
Ernest Cleave Chief Financial Officer 10+ years experience in financial management
Andrew Hancharyk Chief Legal Officer 20+ years experience in corporate Law
Casper Groenewald Deputy Technical Director
20+ years metallurgical engineering experience including 5+ in vanadium processing
Significant Experience Building and Operating Mining Facilities
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Maracás Environment
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Project as at December 11, 2013
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Simple, Low Cost Mining
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150 meters
Magnetite(ore)
Gabbro (waste)
Current mining operations
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The Ford Facility at Maracás
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Project as at February 20, 2013
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Recent Milestones
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Production Achieved
Above: First delivery September, 2014
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Recent Photos
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Crushing Circuit
30,000+ tonnes of crushed ore stockpiled
Milling Circuit
5,000+ tonnes of concentrate stockpiled
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Recent Photos
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Kiln and Cooler System
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Corporate Structure
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Stock symbol: LGO – TSX-V
Share price (Nov 7, 2014): $2.00
Shares issued (Basic): 109 million
Market Cap C$218 million
52-week High/Low: $3.60 / $1.90
Management & Institutions: 75%
Warrants & Options (Basic): 30 million
Institutional Shareholders
Arias Resource Capital - 28%
Mackenzie Investments - 14.6%
Eton Park Capital Management - 10.1%
Ashmore Investment Management - 10.1%
Shareholders & Project Partners
Project Finance Deal of the Year Awards - March 2013
Project Partners
Glencore International 100% 6 yr take-or-pay off-take for Maracas
Business Development Bank of Brazil
Bank Itau, Votorantim, Bradesco
TSXV: LGO
Potential Chrome/PGM Discovery
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Chromite and PGMs are often associated in ultra-mafic rocks like the ones discovered near the Maracas Menchen Mine
This discovery potentially resembles deposits like those in the Bushveld region of South Africa which produces a significant amount of the world’s chrome, PGMs and vanadium
Potential new discovery of chrome and PGMs located North of current mine area
Chromite layers trace 3km strike with at least two zones of chromite layers 20 to 25 metres wide at surface with fine-grained sulphides that potentially contain platinum
Exploration program underway, initial results pending
Did you know….
TSXV: LGO
Investment Summary
Ramping up production
Commercial shipments ongoing
High grade, low cost production project
Significant cash-flow potential in near-term
Only ‘pure-play’ exposure to vanadium
Commodity with strong growth profile
Management that delivers
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Substantially de-risked flagship project with near term cash flow
Undervalued
Early Stage Producer
With Strong Upside
Potential
Project as at November 19, 2013Project as at December 26, 2013Project as at February 20, 2013
TSXV: LGO 42
TSXV: LGO 4343
Darcie LaddCorporate Development
416-861-9406
Mark BrennanPresident and CEO
416-861-9797LARGORESOURCES.COM
Largo Resources
LargoResources1
Largo Resources
largoresources
TSXV: LGO
Appendix
Board of Directors
Secondary Projects
Vanadium – additional growth profiles
Maracás Mining Process
Currais Novos
Northern Dancer
Campo Alegre de Lourdes
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Appendix: Strong Board
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Mark Brennan Director Largo Resources President & CEO
Dirk Donath Director Managing director Aimaira 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 AurResources
Wayne Egan Director Partner at Weir Foulds LLP
Alex Monteiro Director Partner at CALT Ltd.
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Secondary Projects
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Blue sky potential to add value
Currais Novos
Region: Brazil
Metal: Tungsten
Stage: Care & Maintenance
Campo Alegre
Region: Brazil
Metal: V, Ti, Fe
Stage: Exploration
Northern Dancer
Region: Yukon, Canada
Metal: Tungsten
Stage: PEA Complete
TSXV: LGO
Growth Example: Aircraft
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Aircraft usages presently accounts for approx. 7% of vanadium market and is growing rapidly
Demand projected to double by 2016
Aircraft manufacturers using increasing amounts of titanium-vanadium alloy
Boeing's new 787 Dreamliner and the Airbus 380 each contain more than 100 tonnes of vanadium alloys, more than double that in a Boeing 747
Source: Largo Source: www.asiaminer.com Source: TTP Squared
TSXV: LGO
Projected Growth in Aircraft
48Source: Roskill, 2013 Source: Airline Monitor
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Appendix: Maracás Mining Process*
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Deposit outcrops at surface
Less than 1 meter pre-stripping
High grade material from surface continues to depth
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
*As outlined in 2013 Preliminary Economic Assessment**Includes all royalties less credit Iron Ore byproduct
Simple, Cost-Effective Open Pit Mining Process
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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
Production Commenced December 2011
Plant optimization continued through 2012
Production temporarily suspended due to severe regional drought in 2013
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Operational History:
TSXV: LGO 51
Appendix: Campo Alegre Project
133 Million Tonnes Grading 50% Fe, 21% TiO2, 0.75% V2O5*
100% owned iron, titanium, and vanadium deposit - seven concessions covering 9,274.66 hectares
Purchased in 2009 for USD $250,000.00 from Bahia State Mining Development Agency (CBPM)
Preliminary metallurgical testwork completed in 2011 suggested potential for titanium dioxide (TiO2) project
* Historical resource provided by CBPM (Bahia State Mining Development Agency)
Mineral Resources (non-NI 43-101)
Development Milestones
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Appendix: Northern Dancer Project
223.4 MT grading 0.102% WO3 and 0.029% Mo (M&I)
Higher-grade tungsten and molybdenum zone: 60.3 MT of 0.14% WO3 and 0.045% Mo (M&I)
201.2 MT grading 0.09% WO3 and 0.024% Mo (I)
PEA complete
Discussions with off-take partners and JV partner
Development Milestones
Mineral Resources
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Appendix: Northern Dancer PEA
Tungsten
(per MTU)
Moly
(US$ per lb)IRR (%)
NPV @ 8%
(US$ millions)
$275 $17.50 20.0 918
$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.53
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$370 MTU
Attractive economics at current tungsten prices
Strategic asset for long term supply of tungsten