Midu Gold Project, Yunnan Province China

The Midu Joint Venture consists of three exploration permits, covering a total of 189km2, 190 km south of Dali City, Yunnan Province. Lara has the right to earn 75% interest of project, Chinese partner (Yunnan Mining Geology Group) participating in exploration expenditures (25%). Two main targests (Muluozuo target and Qingmuling target), a third developing. Three main stream sediments gold anomalies out of eight were investigated to date. Quingmuling, Longtan, and Niujie zones have been identified.

The Midu Gold Project, located approximately 200 kilometers (km) west of Kunming (the capital city of Yunnan Province) is comprised of three exploration permit areas (the Niujie, Qingmuling and Baicaoshan) which cover 189.07 square km. The Project area is accessible by road with service facilities and power nearby and is geologically located within the prolific north-west trending poly-metallic metallogenic belt just north of the giant Red River Structure Zone which hosts numerous copper-gold porphyries, gold, copper-nickel, lead-zinc and platinum group metal deposits and prospects.

Midu Technical Review

Drilling
7 DDH , total 876 meters , Muluozuo target
Understand mineralization extension and grade variance in depth and along strike, and mineralization structure

Underground
Muluozuo
3 tunnels, MLPD1, MLPD2 and MLPD3, total 820 meters
Test west-east-striking gold mineralization structure and mineralization extension to the levels of 2133.9m (PD1) and 2083.5m (PD3).

Qingmulin
2 tunnels, QMPD1 and MLPD23, total 220 meters
Test north-west-striking gold mineralization structure and mineralization extension in depth.

Trenches and wells Qingmulin and Muluozuo
9 trenches, total 3600m3,
12 wells, total 94 meters, test soil Au anomalies and to confirm the gold mineralization structure

Samples ( Muluozuo and Qingmulin )
1229 Rock Samples

Geology
Completed geological survey and 1:2000 mapping of 7.29 km2 area which covers five soil geochemical Au anomaly targets (MLZN, MLZS, MLE1,MLE2,MLE3)in adjacent Muluozuo Au target.

Completed geological survey and 1:2000 mapping of 5 km2 area to test soil geochemical Au anomalies in Qingmuling target.

Target 1- Mulouzou

Same geological setting as the Dalongtang Gold Mine, located approximately 2 km east of the MZ target. The Dalongtang Mine reportedly produces about 500kg of gold per year, and contains a sizable gold deposit of approximately 1,000,000 oz. Maxy has not independently verified these details and therefore cannot comment on the reliability of the report.

Exploration workings since 2006

Trenching

31.6m@1.4g/t Au (thickness varying from 5 to 7 meters) in trench T-4; 48@2.6 g/t Au (thickness of 7 meters) in trench T-3

Tunnelling:

Zone of 35 meters width and 150 meters long at 0.84 g/t Au, open. With the best grade of 3.45 g/t Au.

Diamond Drilling:

DH07-04, 16.1m@1.0 g/t Au, DH07-02, 3m@1.5 g/t Au,
DH08-01, 3.2m@0.95 g/t Au, DH08-02, 5.1m@0.91 g/t Au,

Target 2- Qingmulin

In the West zone Gold intersections of 2.8 g/t Au over 5.5 meters and 3.8 g/t Au over 7.4 meters were intersected in trenches in a contact zone.

In the East zone, few high grade samples returned anomalous gold values reaching up to 6.2 g/t Au and 2.7 g/t Au with high Ag values reaching up to 29.3 g/t Ag and 392.1 g/t Ag. These samples are associated with altered and fractured sandstones. Mineralization and structural trend is Northwest-Southeast.

Trench # 2 returned 7m, grading 0.7 g/t of gold and Trench # 3 returned 2m, grading 3.6 g/t of gold.
Tunnelling has not returned significant gold mineralization sections.

Project Map and Location