Lara Exploration Ltd.: Bahia Inglesa Phosphate Acquisitions,

Lara Exploration Ltd.: Bahia Inglesa Phosphate Acquisitions, Chile 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/14/12 -- Lara
Exploration Ltd. ("Lara" or the "Company") (TSX VENTURE:LRA) is
pleased to announce that it has signed a Letter of Intent to acquire
6,090 hectares of mining licenses and that it has also claimed in its
own right a further 6,200 hectares of exploration licenses, covering
known sedimentary phosphate deposits in the Bahia Inglesa district of
Chile, on behalf of the Kiwanda Phosphate Alliance. 
Lara, on behalf of the Kiwanda Phosphate Alliance ("Kiwanda") has
signed a Letter Agreement with two related Chilean companies SCM
Bahia Inglesa ("SCM") and Compania Minera de Fosfatos Naturales
Limitada ("Bifox") to acquire 6,090 hectares of mining licenses that
were originally drilled for sedimentary phosphates in the 1980's by
the Chilean Government and from which SCM and Bifox currently produce
phosphate concentrates (with approximately 17% P2O5) on a small
scale. The option is subject to due diligence, completion of a
Definitive Agreement, cash payments and a sliding scale production
royalty on the following terms: 


 
----------------------------------------------------------------------------
Date/Milestone       Payment US$     Conditions                             
----------------------------------------------------------------------------
Definitive Agreement 400,000         Date of signature                      
----------------------------------------------------------------------------
12 Months            3,000,000       Cash payment 12 months after date of   
                                     signature                              
----------------------------------------------------------------------------
24 Months            8,000,000       Cash payment 24 months after date of   
                                     signature                              
----------------------------------------------------------------------------
48 Months            2,000,000       Payable only if phosphate concentrate  
                                     (+30% P2O5) prices are greater than   
                                     US$200/tonne                           
----------------------------------------------------------------------------
Production royalty   2%              Payable on any production if phosphate 
                                     concentrate (+30% P2O5) prices are less
                                     than US$200/tonne                      
----------------------------------------------------------------------------
Production royalty   3%              Payable on any production if phosphate 
                                     concentrate (+30% P2O5) prices are     
                                     between US$200 and US$300/tonne        
----------------------------------------------------------------------------
Production royalty   5%              Payable on any production if phosphate 
                                     concentrate (+30% P2O5) prices are     
                                     greater than US$300/tonne             
----------------------------------------------------------------------------

 
Bifox and SCM will continue their current operations up to a total
production of 200,000 tonnes (time measured from the date of
signature of the Purchase Option Agreement) of phosphate rock with
approximately 17% P2O5 content and will have an exclusive agreement
to market and sell production by Kiwanda into the local Chilean
market for a period of 10 years. Kiwanda will have access to and use
of the laboratory and other facilities on-site for a period of 3
years, with an option to purchase them at market prices.  
Kiwanda has also applied for 6,200 hectares of exploration licenses
adjacent to and covering extensions of the SCM and Bifox deposits.
Under the terms of the agreement between Lara and Kiwanda (see
Company news release of January 10, 2012 for details), the combined
Bahia Inglesa property 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 to 65%. Kiwanda may then raise its interest to
a total of 75% by delivering a Feasibility Study as defined by NI
43-101 within a further two years (subject to spending a minimum of
US$2 million per year). 
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 is
responsible for the preparation and verification of the technical
information in this 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 primarily in Brazil and
Peru where it has signed agreements for fifteen joint ventures and
three Strategic Alliances. 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. 
Contacts:
Lara Exploration Ltd.
Chris MacIntyre
VP Corporate Development
+1 416 703 0010
info@laraexploration.com
www.laraexploration.com
 
 
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