Boyaca Phosphate Claims

Lara- Sprott Alliance

In November 2008, the Company and Sprott Resource Corp., (“Sprott”) agreed to form a strategic alliance (the “Alliance”), owned 50% each, to acquire phosphate, potash and other resource opportunities. Sprott has contributed starting capital of US$500,000 to the new company, which has been used to acquire and evaluate phosphate exploration properties in Colombia and to evaluate acquisition opportunities. The Company undertook field reconnaissance work to complete a preliminary evaluation of the Alliance phosphate properties. The claims in Colombia cover sedimentary sequences containing various phosphate-rich beds.

In June 2009, Lara registered claims, totaling approximately 80,000 hectares, covering a series of high-grade phosphate beds in the Cretaceous sedimentary sequences in the Boyacá District of the Central Colombian Andes. There are three main phosphate-bearing units within the sequence. In various places these phosphate beds are mined on a small-scale to produce 25-35% P2O5 phosphate rock, which is generally milled and consumed locally as direct application fertilizer.

The claim blocks, denominated Tasco, Tota, Iza and Nueva Colon, cover synclinal and anticlinal fold structures, where the mineralized units are repeated and can be traced at surface for many kilometers. Fieldwork has comprised field checks and stratigraphic mapping to delineate the areas with the thickest and most extensive phosphate units. To date the most promising target is Iza, on the western flank of the San Miguel syncline, where the upper phosphate unit comprises stacked massive phosphate beds with an aggregate thickness of more than 4 meters. This synclinal fold is 15 kilometers long and 2 kilometers wide, with the target phosphate bed exposed on both flanks of the fold (i.e. approximately 30 kilometers of near-surface extension). The Company plans to conduct more detailed mapping and systematic channel sampling around the San Miguel syncline and other priority targets in the coming months, aiming to delineate potentially bulk-mineable areas.

The Boyacá claims are held indirectly through Colombia Alliance (BVI) Ltd., a joint venture company held 70% by Lara Alliance (BVI) Ltd., and 30% by Colombian consulting group Geotec. Lara Alliance (BVI) Ltd., is in turn owned 50% by Lara and 50% by Sprott Resource Corp.