Arias Resource Capital Fund L.P. increases its position in Largo Resources
Ltd.

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TORONTO, Sept. 16 /CNW/ - Arias Resource Capital Fund L.P. (the "Fund"), announced that it acquired 10,294,118 Units of Largo Resources Ltd. (TSX-V: LGO) (the "Company") at a price of C$0.17 per Unit, by way of a non-brokered private placement transaction that closed on September 16, 2010 ("Closing Date"). Each Unit is comprised of one common share (a "Unit Share") of the Company and one common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder thereof to purchase one common share (a "Warrant Share") of the Company at a price of C$0.25 per Warrant Share at any time prior to 5:00 p.m. (Toronto time) on the date that is 12 months following the Closing Date.

Taking into account the closing of the non-brokered private placement transaction and a separate brokered private placement transaction, which the Fund did not participate in, the Company now has 289,332,727 Common Shares issued and outstanding. The 10,294,118 Common Shares acquired by the Fund through the purchase of the Units represents approximately 3.6% of such outstanding shares. The Fund now owns a total of 42,006,482 Common Shares representing approximately 14.5% of the issued and outstanding Common Shares. The Fund also owns an aggregate of 17,112,300 Warrants exercisable at prices ranging from C$0.25-0.35 per Warrant with expiration dates approximately 6-12 months following the Closing Date. The Fund's Common Shares and Warrants represent approximately 19.3% of the issued capital of the Company calculated on a partially diluted basis.

The Fund acquired the Common Shares and Warrants for investment purposes and may in the future increase or decrease its ownership of securities of the Company from time to time depending upon the business and prospects of the Company and future market conditions.

For further information: Alberto Arias, Director, phone: [phone], fax: [phone], e-mail: [email protected]