Lara Exploration ("Lara" or the "Company") (TSX VENTURE:LRA) is pleased to report that it has signed a Definitive Agreement (the "Agreement") with Sprott Resource Corp. ("SRC") to form a Strategic Alliance (the "Alliance") to acquire phosphate, potash and other fertiliser feedstock mineral projects.

Under the terms of the Agreement, SRC will commit to spend $500,000 in the first year and may at its election invest a further $2,500,000 over the following two-year period to earn up to a 63% interest in the venture, subject to Lara's option to contribute funds to maintain a 50% interest in the venture. Lara will be project operator, generate projects and manage exploration.

The Alliance has already acquired a substantial exploration portfolio, comprising 205,000 hectares of claims and licenses in Brazil and Colombia. In Brazil, the Alliance has seven project areas covering phosphate-bearing sedimentary sequences or carbonatite igneous rocks and two areas with known potash-bearing evaporite sequences. The claims in Colombia cover sedimentary sequences containing various phosphate-rich beds.

About Lara

Lara is a well-funded natural resource prospect generator, with multi-commodity exploration portfolio in Brazil, Colombia and Peru. Lara's common shares trade on the TSX Venture Exchange under the symbol "LRA".

SOURCE: Lara Exploration Ltd.

Lara Exploration Ltd.
Miles Thompson
President
(604) 669-8777
Lara Exploration Ltd.
Kim Casswell
Corporate Secretary
(604) 669-8777
(604) 688-1157 (FAX)
Website: www.laraexploration.com