Lara Copper Project

Overview

This 1,800 hectare property is located about 40 km east of the Pan American Highway, 400 km southeast from Lima, in Peru. The claims are 100% owned by Minas Dixon S.A., a wholly owned Peruvian subsidiary of Lara Exploration Ltd. A highly altered intrusive body lies beneath what appears to be the leached cap of a porphyry copper deposit situated on the Lara 2A and 4 mineral claims, measuring over 1 km north-south by 1.5 km east-west. An induced polarization (IP) survey conducted in 1997 yielded very encouraging results, extending the target area eastward to include a system named Mina de Socos. The deposit is a Chalcocite blanket with an inferred resource of 18.6Mt @ 0.53% Cu with a higher- grade core. The property is shallow, and agreeable to open pit mining with a SX-EW recovery. The expanded target area covers about 6 km2. Twenty-five drill holes totaling 2,876 metres have been drilled in three programs since May 1997 comprising 2,742 metres of reverse circulation and 134 metres of diamond drilling.

Exploration Program

Two vertical diamond drill holes were completed within the historic resource area during 2007. Hole LA-07-01 was completed to a depth of 121.7 meters and intercepted a 20 meter interval (88-108 meters) averaging 1.2% Cu. Hole LA-07-02 was completed to a depth of 292.1 meters and intercepted 13.7 meters (58-71.1 meters) averaging 0.93% Cu. Both intercepts occur within the zone of secondary sulphide enrichment in association with blebs, stringers and coatings of supergene chalcocite.

An independent technical report on the Lara property entitled "Summary of Exploration, Metallurgical and Scoping Studies on the Lara Porphyry Copper Property and Proposed 2005 Exploration Program, Rio Viscus, Palpa, Peru" was authored by John Nebocat, P. Eng. dated February 9, 2004 and revised March 31, 2005 (a copy of which has been filed on SEDAR at www.sedar.com). The report detailed the Lara property, including an inferred mineral resource estimate of 18.6 million tonnes grading 0.53% copper using a 0.2% copper cut-off. Within this inventory are higher-grade blocks estimated at 6.5 million tonnes grading 0.91% copper using a 0.5% cut-off and 4.8 million tonnes grading 1.04% copper using a 0.6% copper cut off. The resource remains open to the east and to the west.

Mineralization amenable to low cost solvent extraction and electro-winning ("SX/EW") processing remains open to the east, west, and south, both as extensions to the supergene chalcocite blanket and as transported copper oxides occurring in fractured intrusive rocks peripheral to the leached cap. In particular, strongly-altered and leached intrusive rocks, with associated stockwork mineralization and secondary copper oxide, occur over 800 meters east of the main Lara Zone (Mina de Socos) and are entirely untested by drilling. An integrated program of geologic mapping, sampling, road construction and diamond drilling is planned to commence in March, 2008.

More complete assay results from the 2007 holes follow: