Araguaia Option Update

Vancouver, British Columbia, December 10, 2008 (TSX Venture: LRA) - Teck Cominco Brasil S.A. ("Teck") has informed Lara Exploration Ltd. ("Lara" or the "Company") that in accordance with the Option and Joint Venture Agreement it will not be proceeding with the earn-in on Lara's Araguaia Nickel Property in Brazil. Teck has forfeited all rights, title and interest in and to the Property in favour of Lara.

During the period of the Teck option on Araguaia, an additional 47 diamond drill holes primarily on the Vila Oito target, and 96 auger holes primarily on regional targets have been completed. This work, along with mapping and surface sampling, has defined seven priority targets with potential to host significant nickel mineralization that Lara intends to retain. In the light of the current market conditions, the Company is reducing its mineral rights to just those covering these targets.

Quality Control

Michael Bennell, Lara's Vice President Exploration and a member of the Australasian Institute of Mining and Metallurgy, is a Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects and is responsible for the preparation and verification of the technical information in this release.

About Lara

Lara is a well-funded prospect generator, with a multi-commodity exploration portfolio in Brazil, Colombia and 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 www.laraexploration.com or contact: Miles Thompson, President or Kim Casswell, Corporate Secretary at (604) 669-8777.

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