Latin Resources Ltd (LRS)

Latin Resources Ltd (LRS) 17 th March 2014 ASX Code: LRS Shares on issue (m) 231.8 Current Price $0.05 12 Month High $0.19 12 Month Low $0.045 Market Cap (m) $11.6 Net Debt (m) Dec 31 2013 $2.75 Cash (m) Dec 31 2013 $0.875 Pivotal developments leave Latin well placed to progress post a challenging period Recommendation: Speculative Buy Latin Resources ASX Code (LRS) Latin Resources (ASX Code LRS) is focused on an emerging portfolio of projects in Peru a globally significant, emerging and highly prospective resource jurisdiction. With the recent acquisition of the Borborema Iron Ore project Latin has broadened this focus to include Brazil. The sale on October 16 th of the Mariela project to Junefield Resources for $USD2.5m marked the first of a sequence of encouraging developments leaving Latin well placed to emerge from a challenging period for all junior developers and on a more secure financial platform. November 27 th 2013,Latin acquired the Borborema Iron ore project in the emerging north east region of Brazil, prospective for commercial Itabirite ore bodies commonly found in Brazil. The project whilst early stage is in proximity to existing mines and infrastructure and was purchased with a modest capital outlay and post considerable due diligence. 29 th November Latin announced the signing of a binding term sheet with Peruvian company Compania Minera Zahena SAC for a staged consideration of US$9M to earn a 70% stake in the Ilo Norte project. Crucially this involves an immediate 4800 metre diamond drilling program following up Latin s work to date. Latin retains 30% of the Project and 100% of the remaining Ilo tenement package consisting of some 105,600 hectares. Source: IRESS Major Shareholders % Junefield Group Ltd 22.2 Dempsey Resources Pty Ltd 11.13 Directors and Management 7.0 Management David Vilensky... Chairman Chris Gale... Managing Director Mark Rowbottam Non-Executive Director Frankie Li... Non-Executive Director Zhongsheng Liu Non-Executive Director Anthony Begovich.... CFO The recent developments are pleasing and leave Latin better placed to progress the portfolio and consolidate on the considerable work completed to date across its portfolio. Latin retains 100% at Guadalupito and is currently conducting a process to attract a joint venture partner. Beyond Guadalupito Latin are advancing exploration programs across a considerable 100% owned tenement position in the highly prospective and prolific Coastal IOCG/Copper Porphyry Belt in Southern Peru, and has now also gained an exposure to iron ore in Brazil. Crucially Latin has established a well-credentialed and impressive in country team in South America to pursue strategy, now with a stronger financial position. We view the recent series of developments as encouraging and in keeping with LRS s realistic change of strategy aimed at a least cost pathway to capitalise on the considerable work done to date at its projects via the attraction of joint venture partners to its assets. Whilst not ideal, this strategy is reflective of the challenging funding market all junior resource companies are confronting. We understand the motives behind this change of tack; whilst not textbook for a development portfolio to be inactive for a period of time at its assets this is a sensible and realistic option. The company has made sufficient progress at Guadalupito in particular that the attraction of a joint venture partner is more plausible than aspirational. Latin is currently working on a less capital intensive development proposal than originally intended, encompassing lower throughput and capex from discrete high grade zones from within the substantial established resource. At the Guadalupito Iron and Mineral Sands project Latin has refined its focus to the Los Conchales deposit which is understandable given the technical superiority of the Los Conchales resource of 1.073bt @ 6.1% HM. There is a more than adequate resource at Los Conchales to satisfy any conventional production horizon, including discrete high grade zones that could promise higher initial return on production and a quicker pathway to production and cashflow. Several step out holes completed at Los Conchales indicate strongly that the resource has the capacity to extend significantly with comparable if not improved mineral assemblage hence the overall resource target at Guadalupito of 4.5bt remains largely in place. Peter Wright BCP Equities Pty Ltd pwright@bizzellcapital.com +61 7 3212 9218

Investment View At the current market price and prevailing enterprise valuation of circa A$13.1m, Latin is more symptomatic of acutely challenging equity and debt markets for junior resources as opposed to any reasonable assessment of the long term value of the companies constituent assets. Latin has made considerable progress at Guadalupito leaving the company well placed to attract joint venture interest to take the project forward. In addition Latin retains the broader potential of the Ilo tenements, highly prospective ground that over the interim will see an externally funded diamond drilling program. Latin mid 2013 made the rational but difficult decision for any Exploration and Development Company to suspend active major exploration expenditure, limiting progress at its two main projects Guadalupito and Ilo in the face of challenging funding markets. Rather than continuing to fund the development of the assets via dilutive and expensive equity raisings Latin sought to realise value and to consolidate the substantial work completed to date via the attraction of joint venture partners for both core projects. Given the quality of assets and work completed to date we view this as achievable. Pleasingly Latin have begun to deliver on this strategy with the announcement on November 29 th of a joint venture deal at Ilo Norte delivering a material exploration spend in excess of $US5M at zero cash cost to Latin while allowing the company to retain a 30% interest in the Ilo Norte project (5,300 hectares), and 100% interest in the remaining 105,600 hectares of tenements at Ilo that are highly prospective for IOCG and Porphyry Copper mineralisation. Latin s focus to date has been made at the Guadalupito project with a considerable resource, exploration target and scoping study all tabled. Latin is in the process of seeking to achieve a joint venture outcome at Guadalupito over the coming 6 months. This is the key catalyst for Latin over the next 6 months along with the articulation of less capital intensive interim production scenarios at the asset. Peru is an established mining jurisdiction owing a healthy proportion of its rapid economic growth over the last decade to its flourishing mining sector. The past decade in Peru has been characterised by high growth, low inflation and rising incomes, Peru has established mining regulatory structures and an established mining services sector offering competitively priced services. It is within this context that Latin has assembled and progressed its portfolio which crucially is complimented by an experienced and wellcredentialed team. At the Guadalupito Iron and Mineral Sands project Latin has established an extensive strike and conceptual exploration target of 4.5bt of heavy mineral bearing sediments. Latin has established a JORC inferred resource of 1.073bt @ 6.1% HM from only a portion of the overall tenement footprint inclusive of this resource are discrete high grade zones that could promise increased returns on production. Latin has received an encouraging scoping study at Guadalupito sourcing feedstock from the extrapolation of a comparatively lower grade resource that was initially delineated, and which has now been significantly upgraded in terms of both tonnage and grade. With the progress to date towards attracting the right joint venture partner, Guadalupito could progress to a pre- feasibility study given prevailing enterprise value and the scope of the Guadalupito project offering considerable upside. The Los Conchales deposit announced on Feb 7 th 2013 illustrates the overall potential of the project, Los Conchales has sufficient resource to satisfy 20 years of mine life under the assumptions of the initial scoping study with an improved head grade along with improved Andalusite liberation and titanium minerals and zircon contents. Whilst the long term picture at Guadalupito is to build a major project, Latin is sensibly progressing far less capital intensive interim options to establish an initial cash flow from the project focussing on discrete high grade zones within the Los Conchales resource. Summary. Latin has compelling projects that are materially more valuable than the current market capitalisation of A$11.1m suggests. Latin like the majority of its peers has had to confront challenging funding markets over the past 18 months requiring a change of strategy with the company seeking to partially monetize its assets and progress made to date, and at the same time ease continual funding burdens via the attraction of joint partners at Guadalupito and Ilo to progress the projects. We see this strategy as achievable and reference some key differentials for Latin as opposed to other micro-cap stocks. Latin has completed considerable work to date at its assets, Guadalupito in particular and retains a well-credentialed in country team. Latin has begun to deliver on strategy with the attraction of a joint venture partner for the Ilo Norte Project with drilling now underway with two rigs. We see the attraction of a joint venture partner at Guadalupito as plausible given the breadth of work completed to date, this being the key catalyst along with initial assays from the externally funded Ilo Norte exploration program and further articulation of an interim production scenario at Guadalupito. At current share price of $0.05 and a market cap of $11.1m we feel the market has been excessively harsh on Latin and remain of the view the assets and in country management are worth persevering with, the cash balance post the Mariela sale delivers Latin a degree of flexibility over the coming 12 months to deliver on its interim goals. We retain a speculative buy on Latin Resources. Page 2 of 9

Guadalupito Iron and Heavy Mineral Sands Project The 100% owned Guadalupito Iron and Mineral Sands project is Latin s most advanced project, situated 25km from the major city and port of Chimbote in Peru s north. Guadalupito is located in a barren, flat and largely uninhabited coastal desert with power, water, sealed highway and a major iron smelter all within close proximity. Guadalupito consists of 39 mostly contiguous mining concessions covering 22,287 hectares. Latin has made significant progress at the project and is currently assessing mid-scale production after initially proposing a dual dredge operation producing several marketable concentrates including Magnetite, Andalusite, Titanium minerals, Zircon and Gold. Progress Latin initially undertook an extensive surface interpretation of the Guadalupito project. Latin took circa 3600 one metre deep trench samples taken at 200m x 100m spacing establishing a strike length of over 25km. Following up this and other extensive surface interpretation Latin have executed several successful sonic drill programs drilling targets up to 62 metres depth. Latin has established total inferred resources of 1,329Mt at 5.7% Heavy Minerals. Of note the resource has been established from a portion of the overall tenement package and is in part exclusive of an overall conceptual exploration target of 4.5 billion tonnes. Resources The initial resource defined at Tres Chosas (256Mt at 3.9%HM) is split into two defined zones: an above water table resource of approximately 3 metres thickness characterised by a higher grade of mineralisation; and a below water table resource much thicker without significant oversize although generally of lower Heavy Mineral grade than the conglomerate above water table resource. The Los Conchales resource (1,073Mt@6.1%HM) is also defined in the same manner, but the entire thickness of mineralisation displays very consistent grades throughout the pile to a depth of around 45 m, and is open at depth. The existing inferred resource at Guadalupito is summarised in Table A and is contained within the outlined areas on map at right. This resource has been deposited on the beach from sediments sourced from the Santa River to the south of the tenement extending to a depth of up to 45 metres. The mineral assemblage of the current resource at Guadalupito is dominated by Magnetite, Andalusite with recoverable Titanium group minerals including Ilmenite and Rutile along with Garnets and Zircon. Scoping Study 19 September 2012 Latin tabled an encouraging scoping study for the Guadalupito deposit from Ausenco. Whilst preliminary, the report established a firm basis for continuing the development of the project and highlighted the potential of the asset. The study established a base case scenario for extracting commercial quantities of heavy mineral concentrate via the transfer of feedstock from a standard dredging operation to processing facility. The study examined a two stage construction process with both modules processing 25mtpa of feedstock to produce a Heavy Mineral Concentrate (HMC). The HMC would subsequently be separated into individual concentrates of Magnetite, Andalusite, Zircon, Rutile, Ilmenite and Gold. The two stage modular development would be staged with the first stage being commissioned 4 years before the second. The scoping study forecast an overall capital cost of US$623.7M inclusive of a 35% contingency with the first dredge and processing facility costed at US$344M and the second at US$279.6M. Page 3 of 9

Potential (Los Conchales) The scoping study was derived assuming a mine plan based on the extrapolation of the characteristics of the initial 119Mt from the Heldmaier resource that was later expanded to 136Mt at 5.5% HM and is shown on the diagram below occurring north to south parallel with the ocean. With the Los Conchales exploration target of 690Mt @ 6.8% HM exceeded and validated with a JORC inferred resource of 1.073Bt @ 6.1%HM, the economics of Guadalupito improve materially given the rising head grade and vertically stacked nature of the resource with an improved mineral assemblage. At 6.1% HM, Guadalupito improves both in terms of grade and economics materially, notwithstanding that the trace gold present at Heldmaier does not extend to Los Conchales. Assuming a 6.1% HM feedstock with comparable Magnetite and Andalusite, materially improved Titanium minerals and Zircon content, and maintaining 80% recoveries of HM sourcing, the Los Conchales inferred resource provides a considerable boost in revenue to all throughput assumptions (except gold). Within the Los Conchales resource Latin are targeting several discrete higher grade zone of resource as initial feedstock for a smaller, less capital intensive operation. The mining cost at Los Conchales is potentially improved with the resource more vertically stacked and containing much less oversize (conglomerate) material compared with the extrapolated Heldmaier resources evaluated by the Ausenco scoping study. Evidence suggests that the resource would extend further to the east at Guadalupito following a series of Paleo shorelines with a view that the resource extends all the way to the natural embayment barrier of the steep coastal foothills. Resource Formation The sedimentary process that has formed the Guadalupito deposits is ostensibly easy to follow from the map at right. The Santa River to the south of the tenement package delivers heavy mineral bearing sediment down river from the Andes Mountains at over 5,000 m elevation down to the ocean. Subsequently the sediment was deposited along a prograding shoreline through tides and wave action across the tenement package with resource accumulation of heavy minerals owing to their higher specific gravities. This combined with the embayment of the substantial coastal foothills and changing sea levels have given rise to the Guadalupito deposit. The drilling at Los Conchales and subsequent step out drills at holes 209, 211, 212, 213 and 214 and their impressive HM content potentially alters the geological model at Guadalupito. The HM grade is increasing toward the east of the tenement package and theoretically constrained by the steep coastal foothills on the eastern edge of the tenement package at the north and east of the deposit. The addition of significant resource tonnage at materially higher HM grade presents real and observable upside to the value of the Guadalupito deposit. The results from regional holes to the north of Los Conchales (209, 211, 212 and 213) present the potential for Los Conchales style mineralisation to be extended up to 10 km northwards along the eastern flank of the concessions. The step out hole 214 also suggests that the Los Conchales style mineralisation will extend even further to the east, providing scope for the addition of significant higher grade material to the ultimate resource inventory. Infrastructure The project is well served for infrastructure; the resource is situated on an arid coastal plain and is largely uninhabited. The deposit is in direct proximity to the Pan American highway which bisects the project. Grid power and water from the Santa River, from which the resource has ultimately been sourced from are both close. Table A Summary of the JORC inferred resource estimates at Guadalupito. Inferred Resource Block Split 1 Tonnes (Mt) 3 HM in situ (%) HM in Sand (%) 4 Sand (%) 4 Oversize (%) 5 Fines (%) 6 Tres Chosas 41.8 8.9 12 78.7 19.6 1.8 Los Conchales Above Water Table 85.2 8 10 80.9 12.2 6.9 Total 127.0 8.3% 10.6% 80.2% 14.6% 5.2% Tres Chosas 214.5 3 3.3 89 4.6 6.3 Los Conchales Below Water Table 987.6 5.9 8.3 72.6 18.5 8.9 Total 1202.1 5.4% 7.2% 75.5% 16.0% 8.4% Tres Chosas 256.3 3.9 4.8 87.3 7.1 5.6 Los Conchales Total Inferred Resources 1072.8 6.1 8.4 73.2 18 8.8 Grand Total 1329.1 5.7% 7.6% 75.9% 15.9% 8.2% Source: Company Announcement 5 Jun 2013 Page 4 of 9

Current development Strategy Latin has made the decision to moderate the rate of development at the Guadalupito project, suspending active exploration with a view to consolidating the considerable progress and compiled data set to date with a view to attracting a joint venture partner to assist in funding the projects progress. The broader potential and capacities of the Guadalupito Ore body was highlighted in the tabled Ausenco scoping study of August 2012. In the current environment Latin is progressing several options to capitalise on the Guadalupito project and its considerable resource base, all options focus on a reduced throughput and capex but targeting high grade zones from the deposit but crucially establishing production and cash flow. Whilst the most likely path forward for the asset is now a materially reduced throughput and capex, this is partially compensated by sourcing feedstock via the targeting of discrete high grade zones with the Los Conchales deposit. The below tabled data derived from the Ausenco Scoping study does still reflect the potential scope of the project. The scoping study from Ausenco outlined a dual circuit operation, with a nameplate processing capacity of 25Mtpa for each module. Module 1 is to be commissioned 4 years ahead of module 2 with stage 1 costing US$344M and stage 2 US$279M. Clearly in the current market a significant capital obstacle. Assuming a capacity of 90% or 22.5Mtpa throughput v 25Mtpa nameplate capacity to arrive at an annual Heavy Mineral Concentrate production of 1.372Mtpa for each module for 2.56Mtpa. Allowing for differing recoveries delivers the following output. Los Conchales As per initial report we had assumed the source of feedstock would be the Los Conchales deposit and its initial JORC inferred resource of 1.073Bt @ 6.1% HM. The higher grade HM feedstock from Los Conchales delivers a higher theoretical output and revenue as tabled below. At Los Conchales the vertically stacked nature of the deposit presents potential cost efficiencies. Attracting a JV partner via the sale of an equity stake in the Project significantly de-risks Guadalupito on a number of fronts as would off-take agreements for Magnetite and the other Heavy Minerals. The proposed progression to less capital intensive interim smaller scale production for commercial quantities of magnetite would provide Latin with much needed cash flow and provide a partial proof of concept. The obtaining of surface rights over 11,521 Hectares at Guadalupito on December 20 th 2013 represents a key milestone in the permitting process and is a pleasing sign of progress. Page 5 of 9

Ilo projects Ilo Projects (Ilo Norte Project under 70% Earn-in, remainder 100% owned) Following the sale of the Mariela Project, the entire Ilo Tenement package covers some 110,000 hectares in the prolific Coastal IOCG /Porphyry Copper belt in Southern Peru in direct proximity to several tier one ore bodies in both Peru and further to the south in Chile. This world class mineral province is highly prospective for large scale copper porphyry and Iron Oxide Copper Gold deposits (IOCG s) and is a considerable contributor to Peru s status as the world s third largest copper producer. Ilo Norte Highlighting the potential of the tenement package, Latin recently concluded a $US9M joint venture earn in deal in exchange for a 70% share of the 5,300 hectare Ilo Norte Project with Latin retaining a 30% interest in the Project, and leaving the balance of the 100% owned Ilo portfolio of some 105,000 hectares ripe for attracting other similar deals. The broader geological context of theses remaining 105,000 hectares is encouraging with several majors establishing a considerable and active presence in the region including BHP, Southern Peru Copper Corporation (Grupo Mexico), Anglo American and Antofagasta all encouraged by a geological setting highly prospective for IOCG and copper porphyry formations. IOCG deposits tend to have relatively high copper grades along with the possibility of significant by-products such as gold and silver that defray cost and give greater latitude to project economics while Porphyry Copper deposits are lower grade, but the largest of copper mines having important by-products of Molybdenum and Gold in this part of the world. Through recompilation and interpretation of available exploration data Latin currently has 10 new targets under the spot light for IOCG and Porphyry Copper potential not including the now under earn-in option Ilo Norte Project. One of the standouts of these 10 is an exciting prospect at Ilo East which was drilled in 2000 by Rio Tinto when Copper was less worth than $1/lb. In Latin s initial appraisal they reported evidence of a porphyry system with copper oxides seen at surface. We expect Latin to start generating some news on this project in 2014. Immediately adjacent and trending into Latin s concessions at Ilo South, fellow ASX junior Ausquest (ASX: AQD) have had encouraging indications identifying numerous occurrences if small epithermal quartz veins containing anomalous copper values (0.3% to 1.68% Cu) and occasional gold up to 12g/t au. Ausquest have attracted joint venture interest from US major Cliffs Natural Resources for several of its Southern Peru tenements. Ilo Norte Event November 29 th 2013: Signing of binding term sheet with Compania Minera Zahena SAC (CMZ) consisting of exploration spend of $US5.35 m with immediate 4,800m diamond drilling project program followed by an extension to the program worth $US 4.0m with $US 3.65m payable via instalments to Latin. We view this as pleasing on many fronts: in the first instance Latin have delivered on stated strategy; in the second instance the deal facilitates an immediate resumption of exploration at the highly prospective tenement package. Latin has concluded significant work to date and has an articulated geological model for the joint venture partner to follow up. From the data collected to date, the company had not only generated, but fully permitted specific drilling targets that should begin to provide results from the partner drill program in Q1 of 2014. To date Latin s activities at Ilo Norte have consisted of gravity, magnetic and Induced Polarisation surveys followed up by an 8 hole RC drill program to depths of between 300-350 metres with some encouragement with all 8 holes encountering the presence of magnetite and copper gold mineralisation at varying grades including an intersection of 14m @0.55% Cu and 0.13g/t Au. The initial program did identify a mineralised unit of circa 250 metres thickness which is open in all directions, which we assume will form the basis of the initial 4800m drilling program, targeting the undercover extension of previously untested Silica Albite altered volcano-sedimentary rocks that in the proximity of younger intrusives have the potential to host (IOCG/Skarn) replacement style magnetite, sulphide (including Copper bearing chalcopyrite) and gold mineralisation. The exploration program and interpretation done to date has delivered a better understanding of the geological setting at Ilo Norte and a strong foundation for the mandated exploration activity to progress from. Pleasingly CMZ have already deployed two rigs to Ilo Norte and are currently drilling with first assays due over the coming month. Page 6 of 9

Borborema Iron Ore Project Event: November 27th 2013 Latin acquires Borborema Iron ore project from Rio Tinto Ltd in the emerging iron pore province of Rio Grande do Norte State. Transaction: Latin have acquired the mineral rights covering 24 exploration claims (36,158 hectares) and 4 application claims (5235 hectares) covering 40,483 hectares for an immediate consideration of $USD200,000 plus taxes and legal costs of approximately $USD 45,000 along with a net smelter royalty of 3%. Asset: The Borborema project is prospective for Banded Iron Formation resource and consistent with Latin s strategy of making considered but small scale acquisitions with a view to adding value via in house technical expertise. Dr Carlos Spier, Latin s in house exploration manager with an extensive background in iron ore resources, conducted the due diligence over 6 months on the project for Latin. The project is potentially well served for infrastructure with a relative proximity to both existing port infrastructure and proposed rail lines. Whilst limited geological interpretation has been conducted to date, Latin sees considerable scope to add value to the project in the emerging province. The project sits in proximity to two operating iron ore mines the Bonito Mine operated by Brazilian MHAG with minority holder Noble and is currently producing commercial quantities or export iron concentrate. To date field work has been limited to early stage surface work with rock chip samples returning values of 36-41% Fe along with several identified outcrops of considerable thickness. Borborema Project Bonito Mine (Mhag) Saquinho Mine (Zamin) Rio Grande Do Norte Existing railroads (black lines) and those under development (Transnordestina, yellow line). Forward work program: Latin is not seeking to establish a multibillion tonne resource at Borborema but is seeking in the first instance to follow up the existing surface signature assessed via rock chip samples, visible outcrop and available data collected to date from vendor to establish a resource capable of sustaining mid-tier production and taking advantage of proximal infrastructure to improve project economics. Post the establishment of a resource at Borborema the company would seek to take the project further along the value chain via the attraction of a joint venture partner. Valuation: Considering the early stage of the project we see difficulty in being able to being able to ascribe anything more than a nominal value to the project we do note however the prospectively of the location, the proximity to infrastructure always key with bulk metal projects and the extensive due diligence work carried by Dr Carlos Spier. We see the portents to add value to the asset over the coming twelve months. Page 7 of 9

Key staff and management Diligence David Vilensky- Non Executive Chairman: a practicing lawyer and the Managing director of Bowen Buchbinder Vilensky, a Perth based law firm. Mr. Vilensky has more than 30 years experience in the areas of corporate and business law. Mr. Vilensky is also currently the Non-Executive Chairman of Zambezi Resources Ltd. Chris Gale Managing Director: Mr Gale is an experienced executive in both public and private companies having founded and managed a number of private and public businesses over a twenty year period. Mr Gale has been actively involved in promoting and developing start-up companies and building strong management teams with a focus on commercialisation. He has held various board and executive roles at a number of global mining and technology companies during his career. Mr Gale is a Board member of the Council on Australian Latin American Relations (COALAR) established by the Australian Government. He is also a founding director of Allegra Capital, a boutique corporate advisory firm based in Perth and is a member of the Australian Institute of Company Directors (AICD). Mark Rowbottam Non Executive Director: Mr Rowbottam has in excess of 15 years experience in corporate finance, having been involved in a number of ASX capital raisings, mergers/acquisitions and corporate transactions in the mineral and energy sectors. Mr. Rowbottam is currently a Director of GRP Corporation Limited. Frankie Li-Non Executive Director: Mr Li has 25 years experience in the accounting and finance industry. Mr. Li is currently a Director of Centinel Limited (Hong Kong based company) and the CFO of Junefield (Holding) Limited. Anthony Begovich CFO: Mr Begovich has more than 18 years experience as a chartered accountant specializing in the mining industry. Andrew Bristow General Manager Peru: A dual Peruvian/Australian Citizen, Mr Bristow has over twenty years experience in the resources sector gaining experience in Australia, Africa and South America. A geologist by trade and with a combined MBA from US and Peruvian Universities, Mr Bristow has been based in Peru for twelve years where he lives with his family. Mr Bristow is fluent in Spanish. Geoff Blackburn OAM Consulting Geologist: Mr Blackburn was the geologist who initially identified the potential of Guadalupito and was responsible for Latin s interest in the Project. Mr Blackburn brings an invaluable acumen to Latin with the benefit of 40 years experience gained throughout the world. Mr Blackburn has been awarded both the Australian Prospector of the year award and the Order of Australia Medal for services to the Resource sector. Dr Carlos Spier - Group Exploration Manager: Mr Spier brings over 30 years practical experience to Latin Resources along with a long list of academic qualifications. Dr Spier has previously been employed as global exploration manager for BHP Billiton Iron ore and several other principal roles for leading resource houses. Dr Spier currently focuses on Latin s Brazilian projects. Page 8 of 9

Peru Vital statistics Population: 29.4m GDP 2011: $US176.7b Life Expectancy: 74 GDP per head: $US 5986 World Bank Poverty headcount 2010: 31.3% v 44.5% Peru is one of the best performed economies and most stable economies in Latin America having enjoyed an average annual GDP growth of 6.4% from 2002 in a low inflation environment. Mining has been at the forefront of this development with the sector being a major employer and contributing to 60% of export income with copper the dominant contributor, whilst Tax receipts from mining account for circa 40% of tax revenue. Peru is an established mining jurisdiction ranking amongst the world s largest producers of several commodities including Silver and Copper 2 nd ; Zinc and Tin 3 rd ; Lead, Molybdenum and Mercury 4 th ; and Gold 6 th. Peru hosts several tier one projects including Antamina, Cerro Verde, Cuajone and Toquepala Copper mines and a series of other major copper projects in the development pipeline including Toromocho (Chinalco), Las Bambas (Glencore), Quelleveco (Anglo American) and La Granja (Rio Tinto). Peru has an established mining regulatory framework and service industry and has an enviable mining investment pipeline of circa $US41b ranking Peru as a major destination for mining capital expenditure. In terms of exploration expenditure, the Metals Economics Group estimated that Peru received around 4% of global exploration expenditure in 2011, just under the whole of West Africa (6%), and just shy of one third of the exploration spend in Australia (13%). Peru has a stable system of government with fixed five year terms with the current centre left government elected in April 2011. The Government headed by President Ollanta Humala whilst centre left has continued previous governments free market reforms and is actively promoting foreign investment in all sectors and in particular in Mining. Humala s demonstrated pragmatism has been compared more in line with Brazil s Lula De Silva than the radical governments found in Venezuela and Ecuador. Disclaimer Whilst BCP Equities Pty Ltd ABN 49 145 857 512, its related entities and each of their respective directors, officers and agents (together the BCPE Group ) believes the information contained in this communication is based on reliable information, no warranty is given as to its accuracy and persons relying on this information do so at their own risk. To the extent permitted by law the BCPE Group disclaims all liability to any person relying on the information contained in this communication in respect of any loss or damage (including consequential loss or damage) however caused, which may be suffered or arise directly or indirectly in respect of such information. Any projections contained in this communication are estimates only. Such projections are subject to market influences and contingent upon matters outside the control of the BCPE Group and therefore may not be realised in the future. Any advice contained in this document is general advice. It has been prepared without taking account of any person s objectives, financial situation or needs and because of that, any person should, before acting on the advice, consider the appropriateness of the advice, having regard to the client s objectives, financial situation and needs. This report does not constitute an offer or invitation to purchase any securities and should not be relied upon in connection with any contract or commitment whatsoever. Before making an investment decision an individual should assess whether it meets their own needs and consult a financial advisor, the product disclosure statement and prospectus in respect of the financial product. Disclosure of interest BCP Equities Pty Ltd ABN 49 145 857 512, advise that at the date of this report, both BCP Equities and its associates may hold interests in Latin Resources Limited. BCP Equities has also received fees for investor relations services and general corporate advisory services. BCP Equities and its associates may also receive fees under capital raising mandates with Latin Resources Ltd. BCP Equities Pty Ltd advises that it may earn brokerage, commission, fees or other benefits and advantages, direct or indirect in connection with the making of a recommendation or dealing by a client in these securities. Some or all of our Authorised representatives of BCP Equities may be partly or wholly remunerated by way of commission. Analyst certification and disclosure of interest The analyst certifies that the views expressed in this research accurately reflect their personal views about the subject securities. The analyst holds no relevant interest in Latin Resources Limited. BCP Equities Pty Ltd ABN 145 857 512 Corporate Authorised Representative of AFS Licence No. 240877 Street Address: Level 9, Waterfront Place,1 Eagle Street BRISBANE QLD 4000 Postal Address: GPO Box 1164 BRISBANE QLD 4001 Phone: (07) 3212 9200 Email: admin@bizzellcapital.com Page 9 of 9