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TSX.V: LRA
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Investor Presentation March 2013
Creating Value Through Discovery in South America
“Creating Value Through Exploration, Acquisitions and Discovery”
TSX.V: LRA
Forward Looking Statements
Except for statements of historical fact rela3ng to the Company, certain informa3on contained herein cons3tutes forward-‐looking statements. Forward-‐looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “an3cipate” and other similar words, or statements that certain events or condi3ons “may” or “will” occur. Forward-‐looking statements are based on the opinions and es3mates of management on the date the statements are made, and are subject to a variety of risks and uncertain3es and other factors that could cause actual events or results to differ materially from those projected in the forward-‐looking statements. There can be no assurance that such forward-‐looking statements will prove to be accurate, as actual results and future events could differ materially from those an3cipated in such statements. Accordingly, readers should not place undue reliance on such statements. The Company does not undertake to update any forward-‐looking statements that are incorporated by reference herein, except in accordance with applicable securi3es laws. For a descrip3on of material factors that could cause the Company’s actual results to differ materially from the forward-‐looking statements, please review the Company’s Prospectus, Annual Informa3on Form, and MD&A filed on www.sedar.com. The Qualified Person (QP) for projects in China and Peru is Andre Gauthier. The Qualified Person (QP) for projects in Brazil is Mike Bennell
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TSX.V: LRA
• TSX Venture Exchange listed in Canada, symbol LRA
• Exploring in Brazil, Peru, Chile and Colombia
• Experienced South American management team
• Large por[olio across a diverse range of commodi3es
• 14 partnerships and three alliances poten3ally delivering over $70m in cash and third-‐party funded explora3on
• ~$5m in treasury covers 2013-‐14 budgets
• New copper-‐gold discovery at Liberdade in Brazil
Company Snapshot
Management & Directors
Miles Thompson, Chairman Andre Gauthier, President Michael Bennell, VP Explora3on Chris MacIntyre, VP Corporate David Miles, CFO
Kim Casswell, Corp Secretary Noel Diaz, Manager Peru
Helio Ikeda, Manager Brazil
Independent Directors
Michael Winn
Byron King Adrian Calvert
Chris Jones
Geoff Chater
Share Capital Price Shares % Total
Outstanding 1.15 30,499,687 83%
Warrants 1.85 4,683,175 11%
Op3ons 1.04 2,436,875 6%
Fully Diluted 37,019,697
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TSX.V: LRA
Prospec4ng – we acquire mineral prospects and work up targets on them, then bring in Joint Venture partners to fund on-‐going explora3on and development
Alliances – we conduct high-‐risk genera3ve work for specific commodi3es/regions, funded by partners, with any targets acquired then going into Joint Ventures
Joint Ventures – we retain risk-‐free minority interests in the projects we generate, shares in partner companies and/or royal3es
Risk – this approach makes Lara a more sustainable business than most of its peers, while remaining exposed to the substan3al returns generated by a major discovery
Liberdade – this is what its all about – our JV with Chilean copper giant Codelco has intercepted significant copper-‐gold mineraliza3on at Liberdade. Codelco must carry Lara through addi3onal drilling and resource defini3on to earn its interest.
Prospect Generator Business Model
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TSX.V: LRA
Breaking News – Liberdade Discovery
IOCG – drilling indicates a poten3ally large Carajás-‐type copper-‐gold system
Codelco JV – $3 million of explora3on to earn 51% and delivering a minimum compliant resource of 500,000t of contained copper to earn 75%
Next Step -‐ 3,000m to 4,000m drill program star3ng up in April 2013
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TSX.V: LRA
Multi-Commodity Project Portfolio
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TSX.V: LRA
Option and Joint Venture Agreements
Partner Project Commodity Country Lara Residual
% Payment US$m
Explora4on US$m
Shares m Years
Aguia Resources Sergipe Potash Brazil 25% 0.10 1.50 10.0 2 Codelco Liberdade Copper Brazil 25% 3.00 4 Avenue Resources North Brazil Tin Brazil 25% 2.50 4 Focus Graphite Caninde Graphite Brazil 40% 7.00 0.50 5 Redzone Resources Lara + Tingo Este Copper Peru 45% 0.85 Network Explora3on Picha Copper, Silver Peru 25%+PFS 1.20 8.00 3.00 3 Halston Explora3on Condoroma Copper Peru 25%+FS 1.80 10.50 6 Halston Explora3on Coporaque Copper Peru 25%+FS 1.65 10.00 6 Alta Resources Atenea Gold Peru 25%+FS 1.50 6.75 7 Totals 7.95 62.25
• Partnerships leverage Lara’s investment in target iden3fica3on and acquisi3on and significantly increase the number of opportuni3es that we’re able to test
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TSX.V: LRA
3 Strategic Alliances
Partner Commodity Countries Lara Residual
% Payment US$m
Explora4on US$m/Year Years
Antofagasta Copper Brazil 30% 3 0.6 3 Kiwanda Phosphate Peru, Chile, Colombia 30% 0.5 3 Kiwanda Coal Peru, Colombia 30% 0.6 3 Totals 3.00 1.7
• 3 Strategic Alliances formed in 2012
• Each Alliance provides funding for genera3ve work, with new projects going to joint ventures where the partner will fund explora3on to earn a 70% interest
• Low-‐risk way for Lara to leverage its experience and database to acquire new joint venture project interests
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TSX.V: LRA
Listed Interests and Royalty Agreements
Partner Project Commodity Country Lara Interest Cash US$m Royalty Shares m Ver3cal Mineração Ver3cal Iron Brazil Royalty 0.80 0.75-‐1.50/t Horizonte Minerals Vila Oito Nickel Brazil Shares 8.5 Avenue Resources Sao Lourenco Tin Brazil Royalty 1.00 1.0% 3.0 Avanco Resources Conceicao Ni-‐PGE Brazil Royalty 3.00 2.0% Hochschild Lampa Gold Peru Royalty 2.0% CJL Capital Chocos Zinc-‐Lead Peru Royalty 0.45 2.0% Totals 2.25
• Most joint venture agreements result in a royalty interest if Lara elects not to fund its minority interest
• Market currently puts high value on royal3es and Lara intends to grow this part of its por[olio in the coming years
• The Ver3cal iron project is now permited to begin small-‐scale produc3on and, subject comple3on of project finance, could be the first royalty to start paying out
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TSX.V: LRA
• 2012 – Lara (Cu, Mo) – Curionópolis (Cu, Au) – Ver3cal (Fe) – São Lourenço (Sn) – Conceição (Ni) – Liberdade (Cu)
Six Drill Programs JV Funded Again in 2012
• 12 third-‐party funded drill programs completed 2011-‐2012.
• 2012 programs substan3ally expanded the Lara Copper and Ver3cal Iron deposits and confirmed the Liberdade copper discovery.
• 4 drill programs already planned and permited for 2013
• 2013 – Liberdade (Cu) – Sergipe (K) – Condoroma (Cu) – Picha (Cu-‐Ag)
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TSX.V: LRA
Brazil Exploration Highlights
• Copper-‐gold discovery at Liberdade with Codelco.
• Curionopolis high-‐grade copper target, >1% Cu breccias.
• Sergipe Potash target to be drilled in 2013
• Growing pipeline of iron, copper and graphite prospects.
• New copper explora3on Alliance with Antofagasta
• 15 projects, 7 funded by JV
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TSX.V: LRA
Peru Exploration Highlights • Drilling substan3ally
expanded footprint of the Lara Cu porphyry.
• World class epithermal district outlined at Sami.
• Drill permits secured for Condoroma and Picha
• 18 projects, 8 JVs
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TSX.V: LRA
• 20 high sulphida3on epithermal gold and porphyry style copper-‐gold targets inden3fied.
• The large area of prospec3ve altera3on is indica3ve of district poten3al.
• Pitusaja zone of strong silica altera3on with gold values. Similar outcrops nearby suggest mineraliza3on extends under cover for several kilometres.
Sami (Peru) – District-Scale Epithermal System
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TSX.V: LRA
• Drilling has materially expanded the mineraliza3on to 2km by 0.5km.
• Low al3tude, close to infrastructure and the coast.
Lara Copper (Peru) – Mid-Size Cu-Mo Porphyry
• Purchase by Minsur of a 70% interest in the nearby Marcona -‐ Mina Justa deposit for $505 million establishes valua3on target benchmark
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TSX.V: LRA
• Iron forma3ons extend for over 10km within the property
• Pilot mining license and permiwng in place for small-‐ scale produc3on
• Final Explora3on Report with Resources and Reserves filed with the Brazilian Dept of Mines
• Ver3cal currently working to secure a Mining License and project finance
Vertical Iron (Brazil) - Royalty Project
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TSX.V: LRA
• Located in the Carajas IOCG district close to several opera3ng iron and copper mines.
• Ar3sanal workings expose high-‐grade copper-‐gold veins.
• Recent drill holes include: 53.8m at 9.59% Cu & 29.05m at 4.56% Cu
Curionopolis (Brazil) - High-Grade Copper
TSX.V: LRA
• People -‐ management has depth (10 geologists), is highly experienced technically, commercially and locally. Insiders are significant shareholders.
• Poli3cs – ac3ve in mul3ple jurisdic3ons – Brazil, Peru, Chile and Colombia. • Finance – $5m treasury sufficient for 2013-‐14. The company expects addi3onal cash
from por[olio sales, share sales and royal3es going forward. • Paper – approximately 31m shares outstanding and 37m fully diluted.
• Partnerships – over $70m of explora3on to be poten3ally paid for by joint ventures and alliances with companies from Canada, UK, Australia and South America.
• Commodi3es – diversified por[olio including Au, Ag, Sn, Cu, Ni, Fe, Zn, Pb, K, P, C (graphite) and coal exposure.
• Por[olio -‐ includes a number of significant discoveries and projects maturing towards resource defini3on and mining.
• Payback – large diverse por[olio gives mul3ple chances of the kind of explora3on success that generates outstanding returns to shareholders, while the partnerships funding limits the downside risk.
De-Risking Exploration
