Form 51-102F3 MATERIAL CHANGE REPORT

Item 1 . Name & Address of Company

Lara Exploration Ltd. (the “Company”)

Suite 300 - 570 Granville Street Vancouver, British Columbia V6C 3P1

Item 2 . Date of Material Change

December 20, 2010

Item 3 . News Release

A press release dated December 20, 2010 was issued to the British Columbia, Alberta, and Ontario Commissions, the TSX Venture Exchange and through the facilities of Marketwire via Canadian Timely Disclosure.

Item 4 . Summary of Material Change

Lara is pleased to announce the appointment of Mr. Byron King to the Board of Directors (the “Board”) of the Company. Lara also announces the resignation of Mr. Wojtek Wodzicki from the Board. In addition, 75,000 incentive stock options exercisable at $1.23 per share for a period of five years have been granted to Mr. King.

Item 5 . Full Description of Material Change

Item 5.1 Full Description of Material Change

Please refer to the press release of the Company disseminated on December 20, 2010, attached hereto.

Item 5.2 Disclosure for Restructuring Transactions

Not applicable

Item 6 . Reliance on subsection 7.1(2) or (3) of National Instrument 51-102

Not applicable.

Item 7 . Omitted Information

None.

Item 8 . Executive Officer

The following executive officer of the Company is knowledgeable about the material change and this report:

Kim Casswell, Corporate Secretary Phone: 604-669-8777 Email: [email protected]

Item 9 . Date of Report

December 20, 2010

Suite 300-570 Granville Street T: 604.669.8777 www.laraexploration.com Vancouver BC, Canada - 2 - F: 604.688.1157 V6C 3P1

TSX-Venture: LRA

News Release

CORPORATE UPDATE

December 20, 2010 (TSX Venture: LRA) - Lara Exploration Ltd. ("Lara” or the “Company”) is pleased to announce the appointment of Mr. Byron King to the Board of Directors (the “Board”) of the Company. Lara also announces the resignation of Mr. Wojtek Wodzicki from the Board and wishes thank him for all his support and good work on behalf of the Company.

Mr. King is both a geologist and lawyer by training. He currently writes about energy and mineral development issues for an international audience through two major publications of Agora Financial LLC, “Outstanding Investments” and the “Energy and Scarcity Investor”. Byron worked previously for the Gulf Oil Company and has followed oil and mineral industry developments for over 30 years. Byron’s career path also took him into the U.S. Navy, both on active duty and in reserve duty, including participation in numerous large technology development programs. During the 1990’s and 2000’s he engaged in a vigorous private law practice. Byron holds degrees from Harvard, the U.S. Naval War College and the University of Pittsburgh.

Miles Thompson, CEO of Lara, commented, “Although very sorry to be losing Wojtek from the team, Byron brings us a wealth of both technical and commercial experience and we look forward to working with him going into what promises to be a very busy and prosperous New Year”.

Pursuant to the Company’s stock option plan, 75,000 incentive stock options exercisable at $1.23 per share for a period of five years have been granted to Mr. King.

About Lara

Lara is an exploration company following the Prospect Generator business model, which aims to minimize shareholder dilution and financial risk by generating prospects and then exploring them through joint ventures funded by partners. The Company currently holds a diverse portfolio of prospects and deposits in Brazil, Peru, Colombia and China, with 8 active joint ventures. Lara’s common shares trade on the TSX Venture Exchange under the symbol "LRA".

For further information on Lara Exploration Ltd. please consult our website www.laraexploration.com or contact: Miles Thompson – CEO, or Andre Gauthier – President, at +1 604-669-8777.

Investor Relations: Chris MacIntyre – +1 416 346-7660

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

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