1. TSX.V: LRA
“Creating Value Through Exploration, Acquisitions
and Discovery”
Investor Presentation
March 2013
Creating Value Through Discovery in South America
1
2. 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
1
3. TSX.V: LRA
Company Snapshot
Management
&
Directors
• TSX
Venture
Exchange
listed
in
Canada,
symbol
LRA
Miles
Thompson,
Chairman
• Exploring
in
Brazil,
Peru,
Chile
and
Colombia
Andre
Gauthier,
President
Michael
Bennell,
VP
Explora3on
• Experienced
South
American
management
team
Chris
MacIntyre,
VP
Corporate
• Large
por[olio
across
a
diverse
range
of
commodi3es
David
Miles,
CFO
Kim
Casswell,
Corp
Secretary
• 14
partnerships
and
three
alliances
poten3ally
delivering
Noel
Diaz,
Manager
Peru
over
$70m
in
cash
and
third-‐party
funded
explora3on
Helio
Ikeda,
Manager
Brazil
• ~$5m
in
treasury
covers
2013-‐14
budgets
Independent
Directors
• New
copper-‐gold
discovery
at
Liberdade
in
Brazil
Michael
Winn
Byron
King
Share
Capital
Price
Shares
%
Total
Adrian
Calvert
Outstanding
1.15
30,499,687
83%
Chris
Jones
Warrants
1.85
4,683,175
11%
Geoff
Chater
Op3ons
1.04
2,436,875
6%
Fully
Diluted
37,019,697
3
4. TSX.V: LRA
Prospect Generator Business Model
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.
4
5. TSX.V: LRA
Breaking News – Liberdade Discovery
IOCG
–
drilling
indicates
a
poten3ally
large
Carajás-‐
type
copper-‐gold
system
Codelco
JV
–
$3
million
of
explora3on
to
earn
51%
and
delivering
a
minimum
compliant
resource
of
500,000t
of
contained
copper
to
earn
75%
Next
Step
-‐
3,000m
to
4,000m
drill
program
star3ng
up
in
April
2013
5
7. TSX.V: LRA
Option and Joint Venture Agreements
Lara
Residual
Payment
Explora4on
Shares
Partner
Project
Commodity
Country
%
US$m
US$m
m
Years
Aguia
Resources
Sergipe
Potash
Brazil
25%
0.10
1.50
10.0
2
Codelco
Liberdade
Copper
Brazil
25%
3.00
4
Avenue
Resources
North
Brazil
Tin
Brazil
25%
2.50
4
Focus
Graphite
Caninde
Graphite
Brazil
40%
7.00
0.50
5
Redzone
Resources
Lara
+
Tingo
Este
Copper
Peru
45%
0.85
Network
Explora3on
Picha
Copper,
Silver
Peru
25%+PFS
1.20
8.00
3.00
3
Halston
Explora3on
Condoroma
Copper
Peru
25%+FS
1.80
10.50
6
Halston
Explora3on
Coporaque
Copper
Peru
25%+FS
1.65
10.00
6
Alta
Resources
Atenea
Gold
Peru
25%+FS
1.50
6.75
7
Totals
7.95
62.25
• Partnerships
leverage
Lara’s
investment
in
target
iden3fica3on
and
acquisi3on
and
significantly
increase
the
number
of
opportuni3es
that
we’re
able
to
test
7
8. TSX.V: LRA
3 Strategic Alliances
Lara
Residual
Payment
Explora4on
US
Partner
Commodity
Countries
%
US$m
$m/Year
Years
Antofagasta
Copper
Brazil
30%
3
0.6
3
Kiwanda
Phosphate
Peru,
Chile,
Colombia
30%
0.5
3
Kiwanda
Coal
Peru,
Colombia
30%
0.6
3
Totals
3.00
1.7
• 3
Strategic
Alliances
formed
in
2012
• Each
Alliance
provides
funding
for
genera3ve
work,
with
new
projects
going
to
joint
ventures
where
the
partner
will
fund
explora3on
to
earn
a
70%
interest
• Low-‐risk
way
for
Lara
to
leverage
its
experience
and
database
to
acquire
new
joint
venture
project
interests
8
9. TSX.V: LRA
Listed Interests and Royalty Agreements
Partner
Project
Commodity
Country
Lara
Interest
Cash
US$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
9
10. TSX.V: LRA
Six Drill Programs JV Funded Again in 2012
• 2012
• 2013
– Lara
(Cu,
Mo)
– Liberdade
(Cu)
– Curionópolis
(Cu,
Au)
– Sergipe
(K)
– Ver3cal
(Fe)
– Condoroma
(Cu)
– São
Lourenço
(Sn)
– Picha
(Cu-‐Ag)
– Conceição
(Ni)
– Liberdade
(Cu)
• 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
10
11. 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
11
12. 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
12
13. TSX.V: LRA
Sami (Peru) – District-Scale Epithermal System
• 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.
13
14. TSX.V: LRA
Lara Copper (Peru) – Mid-Size Cu-Mo Porphyry
• Drilling
has
materially
expanded
the
mineraliza3on
to
2km
by
0.5km.
• Low
al3tude,
close
to
infrastructure
and
the
coast.
• Purchase
by
Minsur
of
a
70%
interest
in
the
nearby
Marcona
-‐
Mina
Justa
deposit
for
$505
million
establishes
valua3on
target
benchmark
14
15. TSX.V: LRA
Vertical Iron (Brazil) - Royalty Project
• 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
15
16. TSX.V: LRA
Curionopolis (Brazil) - High-Grade Copper
• 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
16
17. TSX.V: LRA
De-Risking Exploration
• 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.
