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LRA.V ·

VENTURE: LRA) is pleased to provide an update on permitting and development work being undertaken by partner Tessarema Resources Inc. (“Tessarema”) at the Maravaia Copper Project, located in the Carajás District of Northern Brazil.

Permits & Approvals

January 11, 201 7 (TSX Venture: LRA) - Lara Exploration Ltd., (“Lara” or the “Company”) (TSX

VENTURE: LRA) is pleased to provide an update on permitting and development work being undertaken

by partner Tessarema Resources Inc. (“Tessarema”) at the Maravaia Copper Project, located in the

Carajás District of Northern Brazil.

On the permitting front, Tessarema has now been issued with the Installation Li cense for its tailings

facility and filed its Feasibility Study (known in Brazil as “Plano de Aproveitamento Economico ”) with

the Department of Mines. Tessarema’s consultants are currently working to secure the Operating Licenses

that will allow the start of commercial production.

Construction of the processing plant is also now well advanced, with the remaining large items of t he

crushing circuit installed in December. Please see the projects section of the Lara website

(www.laraexploration.com) for an updated set of photographs of the construction work.

Tessarema can complete its earn-in to 100% by starting commercial production at a rate of not less than

500 tonnes per day and making a final US$750,000 payment to Lara. Thereafter, Lara will retain a net

smelter returns royalty of 2%.

Qualified Person

Michael Bennell, Lara’s Vice Pr esident Exploration and a Fellow of the Australasian Institute of Mining

and Metallurgy (AusIMM), is a Qualified Person as defined by National Instrument 43 -101 Standards of

Disclosure for Mineral Projects and has approved the technical disclosure and verified 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 explorin g them in joint

ventures funded by partners. The Company currently holds a diverse portfolio of prospects and deposits

located mostly in Brazil and Peru. 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, or

contact Chris MacIntyre, VP Corporate Development, at +1 416 703 0010.

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada

accepts responsibility for the adequacy or accuracy of this release.

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Lara Updates Progress of Permitting and Development Work at the Maravaia Copper

Deposit in Northern Brazil

TSX-Venture: LRA

Suite 501-543 Granville Street

Vancouver BC, Canada

V6C 1X8

www.laraexploration.com

T: 604.669.8777

F: 604.688.1157

[email protected]

News Release