Lara Exploration Ltd. ("Lara" or the "Company") (TSX VENTURE:LRA) is pleased to
report that its Andean Coal Alliance ("the Alliance") with Kiwanda Mines LLC.
("Kiwanda"), has signed an option to acquire 100% of the rights to the Pelaya
Exploration Prospect, in the Cesar Department of northern Colombia, for US$3.8
million, under the following terms:




----------------------------------------------------------------------------
   Payment (US$)     Description                                            
----------------------------------------------------------------------------
          60,000     Upon signing (Paid)                                    
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          80,000     Upon registration of the concession contract           
----------------------------------------------------------------------------
         210,000     Upon transfer of the concession contract to the        
                     operating company Carbones de Pelaya S.A.S.            
----------------------------------------------------------------------------
         200,000     Within 12 months of transfer of the concession contract
----------------------------------------------------------------------------
         200,000     Within 24 months of transfer of the concession contract
----------------------------------------------------------------------------
         200,000     Within 36 months of transfer of the concession contract
----------------------------------------------------------------------------
         350,000     Within 48 months of transfer of the concession contract
----------------------------------------------------------------------------
       2,500,000     Within 60 months of transfer of the concession contract
----------------------------------------------------------------------------



The Alliance has agreed to fund US$5 million in exploration within the five-year
period and to then invest a further US$3 million in a feasibility study. The
optionors will be entitled to a US$1/tonne royalty on coal sales, while the
Alliance has the right to recover its costs in the acquisition and development
of the deposit from 60% of the royalty income. 


Under the terms of the Alliance, the Pelaya Prospect will become a designated
project whereby Kiwanda will invest US$5 million over a four-year period (US$1
million of which is a firm commitment) in exploration and development to raise
its interest in the Prospect to 65%. Kiwanda may then elect to raise its
interest in the Alliance to 75% by delivering a feasibility study as defined by
National Instrument 43-101 Standards of Disclosure for Mineral Projects of the
Canadian Securities Administrators within a further two years (subject to
spending a minimum of US$2 million per year).


The approximately 1,600 hectare Pelaya Prospect lies at the southern end of one
of the principal coal producing basins of Colombia, covering an area not
previously drill tested. The coal-bearing Umir Formation is not exposed in the
Prospect area, but is interpreted as being present, based on the stratigraphy
that is exposed, historical oil and gas drilling in the district and seismic
surveys lines run across the Prospect. Furthermore, the Umir Formation is
interpreted as lying at relatively shallow depths, under thin Quaternary age
cover sediments. The Alliance is targeting coals seams of the mid and upper
sequences of the Umir Formation, which reach thicknesses of up to 5 metres and,
if present, could be amenable to large-scale open pit mining.


Quality Control

Andre Gauthier, Lara's President, a member of the Quebec Order of Engineers, is
a Qualified Person as defined by National Instrument 43-101 Standards of
Disclosure for Mineral Projects and has verified, and approved the disclosure
of, the technical information in this news release.


About Lara

Lara is an exploration company following the Prospect Generator business model,
which aims to minimize shareholder dilution and financial risk by generating
prospects and then exploring them in joint ventures funded by partners. The
Company currently holds a diverse portfolio of prospects and deposits in Brazil,
Peru, Colombia and Chile, where it has signed agreements for eleven Joint
Ventures and three Strategic Alliances. 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.


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Lara Exploration Ltd.
Chris MacIntyre
VP Corporate Development
+1 416 703 0010
info@laraexploration.com
www.laraexploration.com
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