TSXV: LGO

Near Term VANADIUM Producer

Metals and Mining

Deal of the Year

Best Mining Deal

Vanadium Market Trends

Metal Pages Ferro Alloys Congress
November, 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 forwardlooking 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.

TSXV: LGO

Vanadium Overview

Steels Greatest Alloy

Most used alloy to strengthen steel

Significantly increases tensile strength
Resistant to: seismic, corrosion, abrasion
Proven process for separation

Makes steel stronger, tougher and lighter

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Source: vanitec.org/Roskill, 2013

Vanadium a Strategic Alloy

2lbsV

1 Tonne
of Steel

2X
Strength

Highest strength to weight ratio of any alloy

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Source: vanitec.org

Vanadium in Steel

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Source: Roskill, 2013

Vanadium is Everywhere

Rebar for construction

Buildings, bridges, tunnels
Automotive parts
Pipelines
Aviation and aerospace

Power lines and power pylons

Chemical plants, oil refineries, offshore-platforms
Various tools and dies
High strength steel structures
Construction machinery and equipment
Cast iron used for rolls in steel mills

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Source: Vanitec

Construction Drives Demand

Future growth for vanadium largely tied to global performance of the construction sector

Increasing use of high-strength steels in construction

Particularly for: infrastructure, building construction, energy, and transportation

Increase in construction spending in Asia, particularly China, will be main drivers

Growth Rate (CAGR)

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Source: Roskill, 2013 Source: Largo

Despite weakness in global construction trends since

2008, vanadium demand has increased at 6.5% CAGR.

As economic recovery develops increase, further in

accretion in demand is expected.
Global Investment in infrastructure is expected to
grow over the medium term.

Asia Driving Construction Growth

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Source: Roskill, 2013 Source: Vanitec

By 2020 Asian construction spending is

forecast at 46% of global outstripping
European spending by 24%

Chinese construction sector will expand

between 4.5% - 7.5% between 2016 - 2021

Strongest construction spending growth

expected to be in China, followed by India and
Indonesia

China Infrastructure Growth

China: Investment in Infrastructure 2004 2011

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Source: Roskill, 2013 Source: China National Bureau of Statistics (NBS)

China/U.S. Construction Trends

China and
USA:and
Forecast
Growth
in Construction
2012 - 2021
China
USA: Forecast
Growth
in Construction

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Source: Roskill, 2013 Source: Oxford Economics

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China Increasing Rebar Quality

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(Global Steel 2013, Ernest&Younge)

The Chinese government has sought to promote

high strength rebar use in construction through
the implementation of the Code for Design and
Concrete Structures in 2010 and an Update on
the Code in 2011.

This policy seeks to restrict and gradually

eliminate the use of lower strength bars by 2015
and implement an increase in Vanadium content
in steel rebar.

12th Five-Year Plan has the following focus points:

reduction in energy use, slowdown in steel
production, value-added steel, and upgrading
technology.

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The Rebar Argument

Vanadium-enhanced rebar provides buildings with the improved
structural support necessary to better withstand the higher
magnitude earthquakes so frequently seen in China,
It is extremely important that an earthquake-prone country like
China is well informed about the overall benefits of vanadiumenhanced steel as it relates to the countrys seismic precautions
moving forward.
-- Robert Glodowski, Director of Technical Services at East Metals North
America and a member of Vanitec.
http://www.asminternational.org

from the perspective of seismic performance system focused

on the high strain and low cycle fatigue resistance, Vmicroalloyed rebar is much better than the tempcored rebar,
especially in terms of sensitivity of strain-aging, DBTT and cyclic
toughness.
-- Sheng Guangmin, Lv Yukun, Zhan Suyu, Yu Mengshan
Comparative Investigation of Seismic Resistant Behaviors between Vanadium
Micro-Alloyed and Post-Rolling Tempcored Rebars

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Total Tonnes by Region (V2O5 Equiv.)

Chinas Growth Projections

Projected Impact of Chinas Increased Steel Standards
Projection

China

Europe
Japan
Actual Consumption 2010

Kg of Vanadium Used per Tonne of Steel by Region

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Source: Largo Source: Roskill 2013

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Recovery in Europe?

In 2006 European consumption of vanadium

totaled 30% of global demand

During 2006 2012 period consumption of

vanadium in Europe totaled 28% of demand
despite decline in steel output

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Source: Roskill, 2013 Source: Largo

indicating higher intensity usage of

vanadium/wider array of products containing
vanadium

Recovery of steel output in Europe could cause

significant increase in demand for vanadium

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Vanadium Alloys in Aircraft

Aircraft usages presently accounts for 7% of

vanadium market and is growing rapidly

Aircraft manufacturers using increasing

amounts of titanium-vanadium alloy

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Demand projected to double by 2016

Boeing's new 787 Dreamliner and the Airbus 380

each contain more than 100 tonnes of the alloy,
more than double that in a Boeing 747

Air traffic is forecast to double over the next 15

years

Source: Largo Source: www.asiaminer.com Source: TTP Squared

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Growth in Aircraft

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Source: Roskill, 2013 Source: Airline Monitor

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High Strength Steel in Automobiles

Volkswagen Lowering Costs and
Increasing Efficiency
In 2013 VW announced plans to use new high-strength steel to make its cars lighter and
also to comply with the strict emissions regulations.
VW chose to replace aluminum with light weight ones to make to improve fuel efficiency.
VWis giving up aluminum for the high tensile steel, which is up to six times stronger
than conventional steel. The new material not only made the new Golf with about 100kg
lighter, but also helped the company reduce costs. (Reuters)

Ford Reducing Weight

In 2013 Ford announced that the F-150 pickup will soon be 250 to 750 pounds lighter.
A recent study showed that the material is not only cheaper to use but also safer, the
vehicles tested showing an outstanding crash performance.

Ram Increasing Strength

Rams 2013 3500 pickup 7,000 pounds additional towing capacity than previous
version, all thanks to high-strength steel.

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Source: www.autosteel.org

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Growth in Automotive
USA: Consumption Growth of High-Strength Steels in Automobiles %

12%

78%

50%

41%
10%

47%

40%

22%

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Source: Roskill, 2013 Source: US Steel

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Supply is Concentrated

China

70,000 Tonnes (V2O5 Equiv)

South Africa

35,000 Tonnes (V2O5 Equiv)

Russia

14,000 Tonnes (V2O5 Equiv)

Total Supply

127,000 Tonnes (V2O5 Equiv)

Total Demand

136,000 Tonnes (V2O5 Equiv)

Largo to provide supply stability

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Source: Roskill, 2013

*Tonnage calculated in V2O5 Equivalent

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Vanadium Pentoxide Pricing

11 Year High & Low Vanadium Pricing
$30.00

$25.00

Historical Volatility

Supply Disruptions

$20.00

$15.00

$10.00

$5.00

$0.00

Low Price

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High Price

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Production in sight.

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As at October 10, 2013

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Maracas Ideal Location

Government and local support

Arid climate, ideal topography
Management with regional experience

Best Mining Deal

Metals and Mining

Deal of the Year

Safe, mining friendly jurisdiction

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Lowest Cost Producer

Open pit mining

At surface deposit
Highly magnetic ore
Few contaminants
Water leaching process

Ore provides better recoveries and reduces input costs

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Mineral Resources
+2 Times Industry Average Grade

Gulcari A Deposit

24.6 Million Tonnes

0.83% V2O5

30.4 Million Tonnes

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Quality Ore, Quality Product

Highest Grade/Quality Vanadium Deposit in the World

Higher head-grade and

higher iron content

Ore V2O5%

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Concentrate has
much higher V2O5

Concentrate V2O5%

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

Concentrate has
fewer
contaminants like
silica

Concentrate SiO2%

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Production Profile
Phase 1

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Phase 2

(10,000 Tonnes Capacity)

(15,000 Tonnes Capacity)

Initial Ramp Up, Implementing

Expansion & FeV Plant

Expanded Production rates & FeV

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Future Expansion Potential

= Gulcari A Deposit (first 12 Years)

Maracs concessions
and strike length

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Strong Partners

Glencore International Plc.

Largest trader of Vanadium
Take-or-pay agreement
100% of all material produced
Off-take agreement

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Recent Construction Milestone

Commissioning of Crushing Circuit October 2013

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Maracas Environment

Processing Plant

Admin Facilities

Concrete Plant

Main Access Road

Crushing and
Milling
Gulcari A Deposit and Open Pit

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Maracas Deposit Outcrop

150 meters

Magnetite
(ore)

25 meters of
ore at surface

Dips at 65

Gabbro (waste)

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Maracas Plant Overview

Project as at September 16, 2013

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Conclusions

Demand for vanadium is increasing

Trends in construction will result in

continued growth for high-strength steels

Increasing use of high-strength steels in

the automotive sector

Growing use of aluminum, vanadium,

titanium alloys in the construction of
aircraft

Largos Maracas Project will provide stability of supply

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Darcie Ladd
Business Development Manager
dladd@largoresources.com
416-861-9406

Mark Brennan
President and CEO

LARGORESOURCES.COM

mbrennan@largoresources.com
416-861-9797

Largo Resources
LargoResources1
largoresources
LargoResources

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