Network Exploration receives TSX-V approval of option agreement and private placement

VANCOUVER, Dec. 13, 2011 /CNW/ - Network Exploration Ltd. (the "Company") (TSX.V: NET) is pleased to announce that it has received final approval of the TSX Venture Exchange (the "Exchange") with regard to i) the option agreement between the Company and Lara Exploration Ltd. ("Lara") to acquire the Picha Project, and ii) the non-brokered private placement of 12,325,000 units for gross proceeds of $862,750.

Picha Project Option

Further to the Company's press release dated October 19, 2011, the Company has received final approval from the Exchange to complete the option agreement with Lara to acquire up to a 75% interest in the Picha Project (the "Option Agreement").  Pursuant to the Option Agreement, to earn an initial 55% interest in the Picha Project the Company will pay to Lara an aggregate of US$200,000 (of which $50,000 has been paid) and incur aggregate expenditures on the Property of US$3,000,000 by December 6, 2014.  In addition, to acquire an initial 55% interest in the Picha Project, the Company will issue to Lara 3,500,000 units (the "Picha Units") with each Picha Unit comprised of one common share of the Company and one non-transferable common share purchase warrant (the "Picha Warrants").  Each Picha Warrant will entitle the holder to purchase one common share of the Company at a price of $0.10 until December 7, 2013.

Under the terms of the Option Agreement, the Company may then acquire an additional 20% interest (for a total interest of 75%) in the Picha Project by paying to Lara US$1,000,000 within 30 days of acquiring its 55% interest and incurring aggregate expenditures of US$5,000,000 and completing a pre-feasibility study on the Picha Project by January 6, 2018.

In connection with the Option Agreement, the Company will pay a finder's fee of $12,000 and issue 250,000 common shares of the Company to a non-arm's length finder.

Picha Project

The 6,000 hectare Picha Copper-Silver Project is located within the Tertiary Volcanic Arc of Southern Peru, host to various epithermal gold-silver deposits and copper porphyry-skarn deposits. The Property is adjacent to the properties of Gold Fields Limited and Compañía de Minas Buenaventura S.A., that are host to the recent Chucapaca discovery, with reported mineral resources of 7.5 million gold equivalent ounces.

Lara's exploration work on the Picha Project in 2010, found widespread alteration, brecciation and vein stockworking, indicative of the presence of a porphyry system at depth, and outlined seven zones with anomalous copper and associated silver values which have been mined on a small scale in the past (see Lara news release of September 21, 2010).  Subsequent (2011) IP and Magnetic surveys outlined six chargeability anomalies indicative of sulphide mineralization in a wider area of moderate chargeability and higher magnetic response interpreted as volcanic or intrusive rocks.

Marco Fernandez-Concha, Senior Exploration Geologist of Network Exploration, stated: "Our intention to advance exploration by delineating drill targets for Picha is immediate.  Lara recently completed ground magnetic and IP surveys; coupling this geophysical data with existing geochemical data will allow our combined team to identify the specific drill targets for our anticipated Spring drill program."

Private Placement

On December 7, 2011 (the "Closing Date") the Company closed a non-brokered private placement of 12,325,000 units (the "Units") at a price of $0.07 per Unit for gross proceeds of $862,750 (the "Offering"). Each Unit consists of one common share of the Company and one non-transferable common share purchase warrant (a "Warrant").  Each Warrant will entitle the holder thereof to purchase one common share of the Company (a "Warrant Share") until December 7, 2013 (the "Exercise Period") at a price of $0.10 per Warrant Share for the first twelve months of the Exercise Period and at a price of $0.15 per Warrant Share thereafter until the expiry date. In connection with the Offering, the Company paid finder's fees of $78,435 and issued 1,120,500 broker's warrants (the "Broker's Warrants").  The Broker's Warrants are subject to the same terms and conditions as the Warrants issued to subscribers.

All securities issued or made issuable under the Offering are subject to a mandatory hold period expiring on April 8, 2012.

The net proceeds will be used for general working capital, mineral exploration at the Picha Project and to fund the Company's obligations under the Option Agreement.

Quality Control and Qualified Person

This press release has been approved by Bob Friesen, P. Geo, a director of the Company and the Company's Qualified Person.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

ON BEHALF OF THE COMPANY


"Moises Uribe"
Chief Financial Officer

Forward-Looking Statements:  This news release contains forward-looking statements regarding the future success of the business of the Company that is subject to risk and uncertainties. Examples of such forward-looking statements include, but are not limited to, statements concerning the Company's acquisition of the interest in the Picha Project and exploration activities on the Picha project and generally, government regulation of exploration and mining operations, indications and benefits of exploration, drilling test work and engineering assessments, environmental risks, title disputes or claims, and the Company's intention to raise additional capital and financing. These forward-looking statements involve known and unknown risk and uncertainties that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied in these forward-looking statements. These risks include risks related to the closing of the transaction, key personnel, competition, risks related to newly acquired businesses, uncertainty and dilution as a result of additional financing and the ability of the Company to service its current debt obligations, as well as the risk factors described in the Company's Management Discussion and Analysis filed on SEDAR at www.sedar.com and the risks described in any Management Information Circular of the Company. The forward-looking statements contained herein are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Except as required by law, the Company undertakes no obligation to publicly update or revise any such forward-looking statements to reflect any change in its expectations or in events, conditions or circumstances on which any such forward-looking statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.