Lara signs deal to acquire licence by Planalto project

On October 14, 2025, Lara Exploration announced it has signed an agreement to acquire a 345-hectare exploration license from Atlantica do Brasil Mineração Ltda. The license is adjacent to Lara's flagship Planalto Copper-Gold Project in Brazil.

The terms of the acquisition are: * Upfront Payment: C$375,000 payable in Lara shares. * Work Commitment: Lara must complete a minimum of 2,000 metres of drilling and deliver an NI 43-101 compliant technical report by the end of 2027. * Success-Based Payments: Staged payments of US$0.06 to US$0.08 per pound of copper defined in future Measured and Indicated resources on the license area. These payments are capped at US$1.25 million annually. * Royalty: The property is subject to a 1% Net Smelter Return (NSR) royalty to Atlantica and an additional 1% NSR to an underlying vendor, for a total of 2% NSR.

The acquisition of this adjacent license is a logical, incremental step in consolidating the land package around the Planalto project. From a strategic perspective, the deal structure is favorable for Lara as it minimizes upfront cash expenditure by using shares for the initial payment and ties future payments directly to exploration success. This is a prudent approach for a junior explorer managing its treasury.

However, the impact is non-material for the following reasons: * Scale: The 345-hectare license is a small, prospective addition but does not fundamentally change the scope of the existing Planalto project, which was defined by a major maiden resource estimate in October 2024. * Dilution and Future Costs: The payment in shares causes minor shareholder dilution, and the agreement adds future drilling and reporting commitments, increasing future expenditures. * Added Royalties: The additional 2% NSR on this specific parcel contributes to royalty stacking on the overall project, which can negatively impact the economics of any potential future mine.

While the news is positive in that it shows management's continued focus on intelligently expanding its core asset, it does not move the needle on the company's valuation or overall risk profile. The market has already priced in the significance of the large Planalto resource; this is a minor bolt-on. The most critical missing piece of information for the project remains the Preliminary Economic Assessment (PEA), which was originally guided for completion in Q3 2024 and has not yet been delivered. This delay is a far more significant issue than this small land acquisition.

Lara Exploration is a prospect generator focused on acquiring and exploring mineral properties in South America, primarily Brazil and Peru. The company's business model involves generating projects and then seeking joint venture partners to fund exploration and development, retaining royalties and/or equity interests.

The company's flagship asset is the Planalto Copper-Gold Project located in the Carajás Mineral Province of Brazil, a world-class mining district. After partner Capstone Copper relinquished its option in late 2023, Lara regained 100% control. In October 2024, Lara announced a substantial maiden NI 43-101 compliant resource estimate for Planalto: * Indicated: 47.7 million tonnes at 0.56% CuEq. * Inferred: 154.0 million tonnes at 0.38% CuEq. The company has since been focused on consolidating the surrounding land package and advancing the project toward economic studies.