Mr. Chris MacIntyre reports

LARA SIGNS BINDING LETTER OF INTENT FOR ITS ITAITUBA VANADIUM PROJECT

Lara Exploration Ltd. has signed a binding letter of intent with a non-reporting Ontario company (the optionee) to finance further exploration and development of Lara's Itaituba vanadium project, located in the Tapajos mineral province of Northern Brazil.

Under the terms of the agreement, Lara will receive staged payments or minimum expenditures totalling $500,000 (U.S.) in 2025 (with $150,000 (U.S.) received do date), $600,000 (U.S.) in 2026, and $900,000 (U.S.) in 2027 to finance exploration and development of the project. Lara is currently the project operator and has already mobilized a team to site, with plans to complete approximately 1,200 metres of diamond and reverse circulation drilling in the coming months, further surface sampling, mapping and a lidar (light detection and ranging) topographic survey.

The optionee has advised that its plan is to seek a stock exchange listing for the project, either on a stand-alone basis, or as part of a basket of vanadium projects. Lara will be issued with equity of the vehicle (PubCo) at a valuation of not less than $1-million and 9.9-per-cent ownership on a fully diluted basis, in exchange for 90-per-cent ownership of the project. PubCo will then have the option to acquire the residual 10-per-cent interest in the project for a payment to Lara of $250,000 and an additional one million PubCo shares, with Lara having the right to force exercise on the third anniversary of the public transaction. Lara is entitled to receive an additional payment of $1-million (U.S.) within 90 days of publication of the first feasibility study and will also receive a 2-per-cent net smelter return royalty on any production from the project and any other properties acquired within a five-kilometre area of interest.

About Lara Exploration Ltd.

Lara is an exploration company, advancing its 100-per-cent-owned Planalto copper-gold project in the Carajas mineral province of Northern Brazil, with an open pitable mineral resource detailed in a National Instrument 43-101 technical report filed on Oct. 17, 2024. Lara follows the exploration prospect and royalty generator business model, which aims to minimize shareholder dilution and financial risk by generating prospects and exploring them in joint ventures funded by partners, retaining a minority interest and or a royalty. The company currently holds a diverse portfolio of prospects, deposits and royalties in Brazil, Peru and Chile. Lara's common shares trade on the TSX Venture Exchange under the symbol LRA.

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