News 2006

Corporate Update - Granting Of Incentive Stock Options

Jul 10, 2006

Lara Exploration Ltd. ("Lara" or "the Company") is pleased to announce the appointment of Mr. Mike Bennell as Vice-President of Exploration. The Company would also like to announce the resignation of Mr. Andrew Milligan from the board of directors and the appointment of Mr. Narinder Nagra as a director of the Company. The board wishes to thank Mr. Milligan for his valued service over the past few years.

Mr. Bennell, a graduate of the University of Tasmania (Australia), with a M.Sc. from the Camborne School of Mines (UK), was, until recently, Exploration Manager at the Crixás Gold Mine in Goiás State for AngloGold Ashanti Brasil Ltda. Mr. Bennell has a track record of exploration success for both gold and base metals in Australia, Brazil and West Africa. In Brazil he made the initial discovery of the Boa Vista nickel deposit in Goiás. In West Africa, working for BHP between 1988 and 1999, he was directly involved in the discovery of five gold deposits: Belahouro and Essakan in Burkina Faso, Kubi and Mampon-Aboronye in Ghana and Tongon in the Ivory Coast and worked on many other deposits in West Africa including the gold deposits of Morila and Syama (both in Mali), Fayalala in Guinea and the Syola laterite nickel deposit (Ivory Coast).

Mr. Nagra has worked in the financial accounting industry since 1990 and is currently the Treasurer of Quest Capital Corp., a public company, the shares of which trade on the Toronto, AMEX and AIM stock exchanges. Mr. Nagra was Corporate Controller for Canico Resource Corp., (TSX: CNI) supporting the exploration and feasibility of the Onça-Puma nickel laterite deposit in northern Brazil, until Canico's takeover by CVRD in late 2005.

As allowed under Lara's stock option plan, a total of 250,000 incentive stock options exercisable at $1.10 per share for a period of five years have been granted to a director and to an officer of the Company. Lara is a well-funded junior exploration company with fourteen (copper-gold-nickel) projects in Brazil and one copper project in Peru and trades on the TSX Venture Exchange under the symbol "LRA".

On behalf of the Board, Miles Thompson, President & CEO

For further information on Lara Exploration please contact: Miles Thompson or Kim Casswell, Corporate Secretary at +1 604 669 8777.

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