Liberdade Copper Project

The Liberdade Copper project comprises an exploration license covering 8,491 hectares, located in Pará State, at the western end of the prolific Carajás District in northern Brazil. The Project is covered by a joint venture agreement with Codelco do Brasil Mineração Ltda. (“Codelco”). Under the terms of this Agreement, Codelco has earned a 51% interest in the property by investing US$3.3 million in exploration and has elected to earn a further 24% interest by sole-funding such additional exploration works as are necessary to define a minimum resource of at least 500,000 tons of copper equivalent, independently reported under National Instrument 43-101 guidelines. The Company believes that the drilling results received from Codelco (see Lara news release of March 1, 2013 for details) represent the possible discovery of a large IOCG (“iron oxide copper gold”) mineralized system, consistent with the style and average grades of mineralization from known deposits in the Carajás District.

Codelco completed six diamond drill holes in 2012 in follow-up to the discovery hole FTCD-01 (see Lara news release of March 7, 2011 and October 7, 2013 for details). The best sulphide (chalcopyrite) only intercepts are summarized. Hole LBCD-02 and LBCD-06 are located approximately 650 metres apart on the same geophysical and geochemical anomaly; LBCD-06 was terminated prematurely in 1% copper mineralization for technical reasons.

Liberdade Best Intercepts - Primary Chalcopyrite Zone
Drill holeTargetFrom (m)To (m)Intercept (m)Copper (%)Gold (ppb)Cu Eq (%) *
LBCD-02Fortuna492461970.651180.72
LBCD-06Fortuna72.6200.7128.10.691040.75

* Copper Equivalent calculated as ((Copper %) + (0.6 * g/t Gold))

The Liberdade exploration license was originally published on October 19, 2010 and valid for three years. It was transferred to Codelco on March 21, 2011, under the terms of the option agreement between Lara and Codelco, with Codelco then having the right to renew the license for up to a further three years. Codelco completed several exploration and drill programs within the license period and then requested a three-year renewal on July 12, 2013. The Brazilian Department of Mines (“DNPM”) has delayed analysis of the renewal, as Vale S.A. (“Vale”) claimed to have a license dating back to 1986 that is still valid. Codelco has filed a lawsuit with the Federal Courts in Brasilia, against both the DNPM and Vale to nullify Vale’s claims and safeguard its rights under the Liberdade exploration license.