disciplined cash management and portfolio building at …onthegroundgroup.com/documents/4 - chris...

Disciplined Cash Management and Portfolio Building at the Bottom of the Cycle 1

2TSX-V: LRA NOVEMBER 2015

• Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking

statements. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”,

“anticipate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are

based on the opinions and estimates of management on the date the statements are made, and are subject to a variety of risks and

• uncertainties 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 anticipated 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 securities laws. For a description of material factors that could cause the Company’s actual results to differ

materially from the forward-looking statements, please review the Company’s Management Discussion & Analysis and Financial Statements

filed on www.sedar.com.

• Michael Bennell, Lara’s Vice President Exploration and a Fellow of the Australasian Institute of Mining and Metallurgy, is a Qualified Person

as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators, and

approved the written disclosure of the technical information in this presentation regarding the Company’s projects.

Forward Looking Statements

Return (%)

0%

50%

100%

150%

-50%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: Palisade Capital, 2015

1,560 days

Opportunity – Value

TSX-V: LRA NOVEMBER 2015 3

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

2011-03-23 2011-10-09 2012-04-26 2012-11-12 2013-05-31 2013-12-17 2014-07-05 2015-01-21 2015-08-09

South American Currency Exchange Rates

BRL-USD BRL-CAD CLP-USD CLP-CAD


South America – Currency

Source: Bloomberg

Devaluing of South American currencies relative to USD and CAD


South America – Decline of Mining

Vale Freeport Belo Sun Amarillo Gold Luna GoldS&P TSX

Global Mining Index

YTD -43.6% -54.4% 41.0% 0.0% -83.6% -29.3%2014 -43.7% -37.9% -43.8% -35.0% -76.1% -21.8%

5 Years -86.4% -77.9% -54.2% -91.3% -98.3% -66.7%

Relative Performance

Source: Investing.com and Google Finance November 2, 2015; Vale and Freeport USD, Belo Sun, Luna Gold and Amarillo Gold CAD

Collapses in share price

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

03-Dec-09 17-Apr-11 29-Aug-12 11-Jan-14 26-May-15

Belo Sun

Amarillo Gold

Luna Gold

0

10

20

30

40

50

60

70

23-Dec-09 07-May-11 18-Sep-12 31-Jan-14 15-Jun-15

Freeport

Vale


Low Odds, High Cost

Costs of discovery have gone up 3 fold- Boston Consulting Group, 2015

Cost ($millions)

0

50

100

150

200

250

Base MetalsEstimated

Weighted average for 2000-2009 = $64 million

Weighted average for1980 -1989 = $23 million

1975 1980 1985 1990 1995 2000 2005 2010

{ {

Population Growth

Consumption Upgrade

Consumption

Complex Consumption New Demand

Urbanization

Copper – Demand Drivers


2x

Image Source: New York Leadership Center

Politics

Environment

Dependence

Cost Declining Grade

Timeline

Copper – Supply Challenges


$ 15%

14 Million Ton ShortfallThat is just under 14x the annual production of Escondida

(The largest copper mine in the world)

2017-2021

2015-2016

Time

Price

AnalystConsensus:$2.80/lb

$3.50/lbto$4.00/lb

Source:FirstQuantum,2015

Floorat$2.002015-2016

Copper– MutualAgreementonPriceDirection


Affordable Geological potential

Minimal competition for

mineral resources

✔

South America – Opportunity


Image Source: MedicCast

Source: Brent Cook – Exploration Insights

Relativ

eVa

lue

12

10

8

6

4

2

0

Concept Pre-discovery Discovery Feasibility Development Startup Deplete

SpeculatorsLeave

OrphanPeriod

InstitutionalInvestment

SoldtoaMiner

FullValue

The “Sweet Spot” – Maximum Value Creation


Property Raise Money Explore

Raise Money Explore Raise Money

$TSX

$$TSX

$$$TSX

Repeat until discovery or bankruptcy

Classic Exploration – Raising and Drilling


Properties Raise Money Identify Targets

Partner Partner Funds Add more Properties

$TSX

70% 30%

Partner until discovery

$$

$

$$

$

Risk Adverse Exploration – Prospect Generator Model


Joint Ventures, Alliances and Royalties

15

Country Partner Project Commodity Lara % Cash $m Expl $m Royalties

Brazil Codelco Liberdade Copper 25% 2% NSR

Brazil Tessarema Curionopolis Copper-Au Royalty 2.00 2 - 5% NSR

Brazil Aguia Sergipe Potash Shares 0.150

Brazil Paradigm Canindé Graphite 20% 0.70 4.50 2% NSR

Brazil Vertical Curionopolis Iron Royalty 0.80 $0.75 - $1.5/t

Peru Aruntani Grace Gold Royalty 2.00 0.50 0.75-1% NSR

Peru Redzone Lara Copper 45% 1% NSR

Peru Hochschild Corina Gold Royalty 4.15 2.00 2% NSR

Peru Kiwanda Picha Copper 30% 1%-2% NSR

Chile Kiwanda Bahia Inglesa Phosphate Shares 0.77 5.00 2% NSR

Colombia Kiwanda Carbhid Coal Shares 2% NSR

Colombia Kiwanda Pelaya Coal Shares 2% NSR

Totals 10.67 12.00

TSX-V: LRA NOVEMBER 2015


Liberdade

• 3licensesintheCarajás district,closetooperating ironandcoppermines

• Tessarema hascompleted theStage1earn-into49%ownership

• Tessarema intends tocompleteearn-into100%

Curionopolis Copper


Tessarema Earn-In (Cumulative % Ownership) Payments to Lara Work Required

49% $US700,000 2,000 m of drilling, Final Exploration Report

60% US$500,000 and 5% NSR on pilot production Secure Pilot License

100% US$750,000 and additional 2% NSR on commercial production

Commercial production at project (min rate of 500 tpd)

Taking advantage of the bottom of the cycle:

Lara Exploration Ltd. signed option to acquire the previously mined Azul Tin Project in Brazil from Best Metais e Soldas S.A.

Along with a series of cash payments, Lara will pay a 2% NSR to Best Metais e SoldasS.A. on production from the mine or can buy back the royalty for US$3 million

New Opportunities – Azul Tin Project, Brazil

DueDate US$

UponSigning 7,500

ByDecember 31,2015 7,500

ByDecember 31,2016 40,000

ByDecember 31,2017 200,000

ByDecember 31,2018 500,000


Be fearful when others are greedy, and greedy when others are fearful

- Warren Buffett

19

Contact

20

For more information please contact:

Christopher MacIntyreVice President, Corporate DevelopmentSuite 414, 100 Richmond Street WestToronto, Ontario, Canada M5H 3K6Phone: +1 416-703-0010Fax: +1 416-964-0823

Or visit us online at:www.laraexploration.com

TSX-V: LRA NOVEMBER 2015

disciplined cash management and portfolio building at …onthegroundgroup.com/documents/4 - chris...

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