  We present an overview of our project of large-scale simulations with
dynamical overlap fermions. The first production run in two-flavor QCD is
on-going using the Iwasaki gauge action on a 16^3 \times 32 lattice at the
lattice spacing of 0.12fm with six sea quark masses down to m_{s,phys}/6, where
m_{s,phys} is the physical strange quark mass. We briefly introduce our choice
of the lattice action and simulation algorithm, and describe the present status
of the production run. Preliminary results on the light meson masses and the
static quark potential are also reported.
