Vila Oito Nickel Project

Lara’s Araguaia Nickel Project has been split out into two blocks, separating the nickel sulphide from the lateritic nickel exploration targets. The Vila Oito and Floresta blocks include 3 licenses, covering a total of 27,806 hectares, with potential for lateritic nickel-cobalt mineralization. On July 8, 2011, the Company completed a Definitive Agreement with Horizonte Minerals plc (TSX: HZM, “Horizonte”) to exchange these properties for 8.5 million shares of Horizonte, valued at approximately $2 million, payable upon completion of the license transfers.

The Vila Oito nickel laterite deposit is adjacent to and contiguous with the Araguaia resource currently being drilled by Horizonte. The Floresta target is separate and lies just to the north of Vila Oito. Details of the work completed to date on Lara’s projects are provided in the NI 43-101 compliant Technical Report “Exploration Update Araguaia Nickel Project in Pará State, northern Brazil”, dated January 20, 2010, prepared by Michael R. Bennell, Vice President Exploration of the Company, which is available on the Lara website www.laraexploration.com.