Lara Exploration Ltd.

Lara Exploration Ltd.

October 16, 2006 08:30 ET

Lara Exploration Ltd.: Permit Granted for Further Drilling on the Lara Oxide Copper Deposit in Peru

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 16, 2006) - Lara Exploration Ltd. ("Lara") (TSX VENTURE:LRA) is pleased to inform that the Peruvian Ministry of Energy and Mines has approved Lara's Environmental Impact Statement and granted it an Environmental Certification permitting it to restart drilling on the Lara oxide copper deposit in Peru.

The Lara property, located near the town of Nazca in southern Peru, is host to an inferred resource of 18.6 million tons at 0.53% of oxide copper (see Lara's Technical Report prepared by John Nebocat P.Eng. of PGS Pacific Geological Services entitled "Summary of Exploration, Metallurgical and Scoping Studies Performed on the Lara Porphyry Copper Property and Proposed 2005 Exploration Program" dated February 2004 (Revised March 31, 2005) filed on SEDAR on April 12, 2005 for full details). Artisanal mining, geochemistry, induced polarization anomalies and an intersection of 0.28% copper over 54 metres located 300 metres beyond the resource boundary indicate the potential for additional resources.

Under the terms of a Binding Letter of Intent effective November 1st 2005, further exploration and feasibility studies may be funded by Solid Resources Ltd ("Solid" )(TSX VENTURE:SRW). Under this agreement, Solid may earn a 55% interest in the project by making cash payments to Lara totalling $500,000 and undertaking exploration expenditures totalling $2 million (including 8,000 metres of drilling) over a three year period. Solid also has the option to acquire a further 20% by completing a bankable feasibility study and making a payment of $1.5 million within an additional two years.

Quality Control

Michael Bennell, Vice President Exploration of Lara, a member of the Australasian Institute of Mining and Metallurgy (AusIMM), is a Qualified Person as defined by National Instrument 43-101 and has verified the data disclosed herein, including sampling, analytical and test data underlying the information or opinions contained in this release.

Forward-Looking Statement

Some statements in this report contain forward-looking information. These statements address future events and conditions and, as such, involve inherent risks and uncertainties. Actual results could be significantly different from those projected.

Lara is a well-funded junior exploration company with fourteen (copper-gold-nickel) projects in Brazil and the Lara oxide copper deposit in Peru. Lara's common shares trade on the TSX Venture Exchange under the symbol "LRA". All dollars are in Canadian currency unless otherwise stated. On behalf of the Board

Miles Thompson, President & CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Lara Exploration Ltd.
    Miles Thompson
    (604) 669-8777
    Lara Exploration Ltd.
    Kim Casswell
    Corporate Secretary
    (604) 669-8777
    (604) 688-1157 (FAX)