So far, yes.
These settings evaluate into paths / file names, the difference in this case is the ../Debug or ../Release subfolder.
Are these folders there, and are the specified libraries there ?
I don't have the LPC1114 or the SDK to check this myself.
However, there is no fundamental difference between the Debug and the Release build, except for the toolchains settings (compiler, linker, pre-/post build), which are configurable.
In case it is missing in the ../Release folder, you should be able to link against the other lib version.