LRA Lara Exploration Ltd

Lara Exploration Ltd. (TSX VENTURE:LRA) and privately held Kiwanda Mines (NA)
LLC of Lake Oswego, Oregon have entered into a letter of intent with Nebo
Capital Corp. of Vancouver, British Columbia whereby Nebo will acquire the
interests of Lara and Kiwanda in certain coal properties and assets in Colombia.



The interests to be sold to Nebo, through the newly incorporated private
company, consist of: 


1. A 19.91% equity interest in Carbhid SAS, a Bogota, Colombia-based coal
producer which holds an operating contract on the Escalones concession in the
Boyaca district, where it is developing underground coal mining operations
targeting thermal and metallurgical-grade coal. During 2012, Carbhid completed
the El Diamante inclined shaft and related reserve development, which began
small-scale production for sale to a local thermoelectric power plant in
mid-2013. Nebo will also have the option to acquire a 51% interest in the
Escalones coal mining lease. 


2. The option to acquire a 75% interest in the Pelaya exploration prospect, in
the Cesar district of northern Colombia. 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 option calls for
cash payments of US$ 3.8 million payable over five years. 


3. A 100% interest in Andean Coal Alliance (BVI) Ltd, a company incorporated in
the British Virgin Islands and owned by Lara (50%) and Kiwanda (50%). 


Lara understands that Nebo will, subject to shareholder approval, concurrently
with the acquisition, consolidate its common shares on a 3:1 basis, change its
name and complete a private placement for gross proceeds of a $4,000,000 to
$6,000,000 through the issuance of subscription receipts (to acquire units, each
consisting of one post-consolidated common share and a warrant to acquire a
further post-consolidated common share). Under the sale Nebo will issue
10,000,000 post consolidated common shares at a deemed price of C$ 0.50 per
share, representing a deemed acquisition value of $5,000,000. 


Lara understands that Nebo currently has 2,320,000 common shares issued and
outstanding and options to acquire 250,000 common shares outstanding. Following
its 3:1 share consolidation, closing of the acquisition and the completion of
the maximum amount of the private placement, it is expected that Nebo will have
approximately 20,783,333 post-consolidated common shares issued and outstanding
and options and warrants to acquire 10,083,333 post-consolidated common shares
outstanding. 


The sale is subject to execution of definitive agreements and receipt by Nebo of
stock exchange, and possibly shareholder, approvals. Nebo is a capital pool
company and Lara understands that Nebo intends the acquisition will constitute
its qualifying transaction. 


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 currently has eleven Partnership Agreements
and three Strategic Alliances, including one to explore for copper with
Antofagasta in Brazil. Lara's common shares trade on the TSX Venture Exchange
under the symbol "LRA". 


Neither the TSX Venture Exchange nor the Investment Industry Regulatory
Organization of Canada 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
www.laraexploration.com

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