News 2007

Lara Targets Two Diamondiferous Kimberlites In Northwest Brazil

Jul 23, 2007

Lara Exploration Ltd. (“Lara” or the “Company”) is pleased to announce that it has signed an option to acquire the mineral rights over the Concord 1 and Concord 2 kimberlite pipes in Rondônia State, Northwest Brazil.

The kimberlitic lithologies are exposed at surface, with Concord 1, the larger of the two pipes being mapped as approximately 6 hectares in area. I.T. Zolinger studied the two pipes for his Doctoral Thesis in 2005 at the University of São Paulo (Brazil), defining the kimberlites as brecciated diatreme and crater facies. Petrographic studies by the Company on outcropping coarse-grained kimberlite from Concord 1 confirmed the petrology and noted the presence of various indicator minerals. Diamonds have been recovered from bulk sampling in the past, but this data is not 43-101 compliant and the work will have to be repeated.

Since optioning the property, Lara has collected heavy mineral samples from streams draining Concord 1 for mineralogical and microprobe analyses to confirm prospectivity before embarking on more costly bulk sampling. The mineralogical analyses returned maximum counts of eclogitic and peridotitic garnets, ilmenite, spinel, chrome diopside as well as near-maximum orthopyroxene and a single grain of gold. The presence of abundant eclogitic tracer minerals is very encouraging in that it possibly reflects the great, asthenospheric depth of kimberlitic magma source. This, in turn would reflect the kimberlite’s probable maximum path of ascent and emplacement through the all-important diamondiferous lithospheric mantle wedge. Microprobe analyses of individual minerals returned very favourable results with the garnets plotting in the G9 and G10 fields, and high chrome levels in the spinels up to the diamond-inclusion field. Chrome–diopside plots were less definitive.

Under the terms of the Option Agreement, Lara may acquire 100% of the Concord property for C$230,000 (~C$23,000 has been paid) and a 1% production royalty. The Company has the option to purchase the royalty at a time of its choosing for the sum of US$500,000. The 8,850 hectare Concord property lies 10 kilometres west of Lara’s 20,000 hectare Colorado Gold Property, permitting a wider exploration effort for both gold and diamonds using the same field crews and infrastructure.

Quality Control

Michael Bennell, Lara’s Vice President Exploration and a member of the Australasian Institute of Mining and Metallurgy (AusIMM), is a Qualified Person as defined by National Instrument 43-101, and is responsible for the preparation and verification of the technical information 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.

About Lara

Lara is a well-funded junior exploration company with fifteen (copper-gold-nickel-tin-diamond) 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”.

For further information on Lara Exploration Ltd. please consult our website or contact: Miles Thompson, President or Kim Casswell, Corporate Secretary at (604) 669-8777.

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