News 2008

New Nickel Intercepts From The Araguaia Nickel Project In Brazil

Jan 31, 2008

Lara Exploration ("Lara" or the "Company") (LRA-TSX.V) is pleased to report that Teck Cominco Brasil S.A. ("Teck Cominco"), a wholly-owned subsidiary of Teck Cominco Limited, has completed an infill diamond drilling program on the Vila Oito target on Lara's Araguaia ("Araguaia") nickel project in Pará State, Northern Brazil. The program comprised 42 vertical holes drilled on a 200 meter spaced grid, where previous wide-spaced drilling indicated significant lateritic nickel mineralization over an area of approximately 1.4 by 1.0 kilometers (see Lara press release of May 15, 2006). Teck Cominco has also initiated field testing and scout drilling of other priority geophysical anomalies on the Araguaia project.

Teck Cominco and Lara entered into an Option and Joint Venture Agreement in October 2007, covering 310,000 hectares of mineral rights in the Araguaia Belt held by Lara. Under the terms of this agreement, Teck Cominco can earn up to a 60% interest in the property by paying Lara $600,000 in cash and incurring exploration expenditures of $4,000,000 over a 36 month period (see Lara press release of October 1, 2007). The Vila Oito target is adjacent and contiguous to areas already being explored by Teck Cominco and approximately 100 kilometers to the south of the Serra da Tapa and Vale dos Sonhos nickel laterite deposits owned by Xstrata plc.

Vila 8 Drill program

Analytical results for 33 of the 42 holes (total of 965.03m) drilled at Vila 8 are available and summarized on Table 1. Nickel intersections are reported with a minimum of 2 meters width and with a lower cut-off grade of 0.9% nickel. This new drilling shows that the mineralization is reasonably consistent across the 1.4 by 1.0 kilometer area, with a well-defined NNE-SSW trend that extends onto Teck Cominco property to the northeast and south. Mineralization reaches over 20 meters in thickness and grades can be in excess of 1.5% nickel have been intersected in places.

Scout diamond drilling (four holes in total) on geophysical targets in the area from 1.0 to 1.5 kilometers north of Vila 8 did not intersect any significant nickel mineralization.

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Table 1 - Vila Oito Drill Intercepts - 2007 Infill Program (Partial)
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Drill Hole    Target        From (m)   To (m)   Interval (m)    Nickel%
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PCA-DD-0419   Vila Oito         8.5     16.5            8.0       1.375
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PCA-DD-0420   Vila Oito         7.3    12.43           5.13       1.375
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PCA-DD-0421   Vila Oito             No significant results
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PCA-DD-0422   Vila Oito       10.50     17.0            6.5       1.894
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PCA-DD-0423   Vila Oito       16.00     27.9           11.9       1.069
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PCA-DD-0424   Vila Oito        1.00      8.4            7.4       1.378
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                               13.4     19.0            5.6       1.176
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PCA-DD-0425   Vila Oito             No significant results
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PCA-DD-0426   Vila Oito             No significant results
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PCA-DD-0427   Vila Oito             No significant results
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PCA-DD-0428   Vila Oito        1.90     9.77           7.87       1.217
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PCA-DD-0429   Vila Oito        4.00     26.3           22.3       1.343
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PCA-DD-0430   Vila Oito       21.00     23.2            2.2       1.344
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PCA-DD-0434   Vila Oito             No significant results
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PCA-DD-0436   Vila Oito             No significant results
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PCA-DD-0438   Vila Oito        3.10     11.6            8.5       1.474
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PCA-DD-0440   Vila Oito        4.10     11.2            7.1       1.375
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PCA-DD-0442   Vila Oito       22.00     28.0            8.0       1.118
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PCA-DD-0444   Vila Oito             No significant results
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PCA-DD-0446   Vila Oito                 Results Pending
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PCA-DD-0448   Vila Oito                 Results Pending
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PCA-DD-0449   Vila Oito                 Results Pending
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PCA-DD-0450   Vila Oito             No significant results
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PCA-DD-0451   Vila Oito                 Results Pending
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PCA-DD-0452   Vila Oito             No significant results
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PCA-DD-0453   Vila Oito                 Results Pending
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PCA-DD-0460   Vila Oito       12.05     15.0           2.95       1.281
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PCA-DD-0461   Vila Oito        1.11     4.41            3.3       0.948
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PCA-DD-0462   Vila Oito             No significant results
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PCA-DD-0463   Vila Oito             No significant results
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PCA-DD-0464   Vila Oito                 Results Pending
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PCA-DD-0465   Vila Oito                 Results Pending
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PCA-DD-0466   Vila Oito                 Results Pending
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PCA-DD-0467   Vila Oito             No significant results
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PCA-DD-0468   Vila Oito             No significant results
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PCA-DD-0469   Vila Oito             No significant results
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PCA-DD-0471   Vila Oito             No significant results
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PCA-DD-0472   Vila Oito          Hole abandoned and re-drilled
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PCA-DD-0472A  Vila Oito        0.00     24.3           24.3       1.241
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PCA-DD-0473   Vila Oito        1.00      4.5            3.5       1.192
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PCA-DD-0474   Vila Oito        4.10    13.79           9.59       1.227
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PCA-DD-0475   Vila Oito        0.00     2.17           2.17       1.006
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PCA-DD-0477   Vila Oito         1.8     15.0           13.2       1.321
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PCA-DD-0445   N. Vila Oito          No significant results
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PCA-DD-0447   N. Vila Oito          No significant results
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PCA-DD-0485   N. Vila Oito          No significant results
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PCA-DD-0486   N. Vila Oito          No significant results
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Priority Geophysical Anomaly Testing

Teck Cominco has also completed field checking on eight of the priority geophysical targets previously identified by Lara in the area west of Conceição do Araguaia (see Lara press release of May 29, 2007). Soil sampling has been carried out on seven of the targets and scout drilling on two. Drill hole PCA-DD-0487 (see Table 2 below), which tested an area where disseminated nickel and copper sulphides were seen in outcrop, returned an interval of 4.5 meters at 1.21% nickel in saprolite, indicating potential for the discovery for further lateritic nickel resources.

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Table 2 - Araguaia Regional Drill Intercepts - 2007 Program (Partial)
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Drill Hole    Target        From (m)   To (m)   Interval (m)    Nickel%
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PCA-DD-0484   Anomaly 50            No significant results
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PCA-DD-0487   S of 
              Anomaly 49       20.5     25.0            4.5        1.21
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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.

Teck Cominco is the operator of the Project and employs a rigorous QA/QC protocol including the use of standards and blanks and insertion of duplicate samples at regular intervals. Samples are taken at nominal one meter intervals with breaks occurring at geological contacts. Sample preparation is made locally in a dedicated sample preparation facility operated by Teck Cominco near Conceição de Araguaia and samples are assayed using X-Ray Fluorescence methods at the commercial SGS-Geosol Laboratory in Belo Horizonte, Minas Gerais State.

About Lara

Lara is a well-funded junior exploration company with projects in Brazil 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.