Eloro Resources Adds Second Rig to Accelerate the Diamond Drill Program at its Iska Iska Property, Potosi Department, Southern Bolivia

Eloro Resources Adds Second Rig to Accelerate the Diamond Drill Program at its Iska

Iska Property, Potosi Department, Southern Bolivia

Toronto, Canada, February 16, 2021 – Eloro Resources Ltd. (TSX-V: ELO; OTCQX: ELRRF

FSE: P2QM) (“Eloro”, or the “Company”) is pleased to announce that it is adding an additional

drill rig to accelerate its diamond drilling program at its Iska Iska Silver-Polymetallic Project in

Potosi Department, southern Bolivia. To date, Eloro has completed 22 holes totalling 6,721m

metres from both underground (12) and surface drill holes (10). Results from the first five

underground holes were reported on November 18, 2020 and an additional 10 holes were

reported on January 26, 2021. Results are pending for an additional 7 holes (Table 1). Figure 1

is a plan map showing locations of the drill holes completed and in progress; Figures 2 and 3 are

updated North-South and West-East geological cross sections, respectively.

Since the January 26, 2021 release, an additional two -60 degree holes to the north (DSB-04)

and west (DSB-05), respectively have been completed at the Santa Barbara Breccia Pipe

(“SBBP”) (Figure 1). These holes have not only confirmed the overall diameter of the pipe of

approximately 400m, based on surface geological mapping, but also indicate that the pipe bulges

out at depth as shown in Figures 2 and 3, respectively. Hole DSB-05 drilled at -60 degrees due

west intersected 611m of variably mineralized breccia including a 240m section of strongly

silicified, well mineralized breccia from 360m to 600m, which suggests that there is a major bulge

in the SBBP to the west. Typical examples of drill core from this zone are shown in Figure 4.

Currently, a deep hole DSB-06 is being drilled at SBBP at -80 degrees at azimuth 210 degrees

to test the breccia pipe at depth where it is believed that there is potential to intersect a major

porphyry tin-silver-gold deposit.

The new drill rig will be used to carry out first pass drilling of the Central Breccia Pipe (“CBP”) in

the northern part of the target area, using a similar radial drill pattern currently being utilized at

the SBBP. Once the drill rig at SBBP completes the deep hole, it will be moved to the southern

radial drill base at CBP. Each drill will do a series of -60 degree holes on 90 degree quadrants

followed by a deep hole at -80 to -85 degrees to complete a first past drill test of the CBP in both

the north and south areas to cover its approximately 400m by 700m extent.

Tom Larsen, Eloro’s CEO commented: “We continue to make excellent progress at Iska Iska,

although we have only just started to evaluate the enormous potential of this extensive

mineralized system. The additional rig will help considerably in accelerating the drill program. I

am also pleased to announce that Dr. Bill Pearson, P.Geo. has been appointed Executive Vice-

President Exploration and will manage all technical aspects of the exploration program on a full-

time basis going forward.”

Dr. Bill Pearson, P.Geo., Executive VP Exploration said: “I am delighted to join the Eloro team to

move the exciting Iska Iska silver polymetallic project forward with our outstanding team in

Bolivia. Our deeper drilling continues to intersect wide zones of well mineralized and silicified

breccia. These types of breccias are typical hosts of sulphidic matrices with widespread massive

20 Adelaide Street East, Suite 200, Toronto, Ontario CANADA M5C 2T6 Tel.: (416) 868-9168 Fax: (416) 361-1333

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sulphides, sulphide veinlets and disseminations. It is clear that the SBBP bulges deeper which

is particularly evident in Hole DSB-05. The full extent of this pipe remains completely open to

the west. The breccia pipe system is most certainly driven by a large tin porphyry at depth. There

is almost one kilometre vertically from the valley to the peak of Iska Iska hence there is a good

possibility that we can intersect this porphyry in our deep hole DSB-06 currently being drilled.

Table 1: Summary of Diamond Drill Holes at Iska from press release of January 26, 2021

to February 26, 2021 with assays pending.

Hole No. Type Collar

Easting

Collar

Northing

Azimuth Angle Hole Length m

DHK-16 UG 205468.9 7656367.2 235 -10 234.00

DHK-17 UG 205468.9 7656367.2 235 -50 321.40

Subtotal 555.40

Santa Barbara Breccia Pipe - Surface Radial Drilling from Centre

DSB-01 S 205118.9 7656205.7 180 -45 341.00

DSB-02 S 205118.9 7656205.7 180 -60 632.50

DSB-03 S 205118.9 7656205.7 90 -60 515.30

DSB-04 S 205118.9 7656205.7 0 -60 536.40

DSB-05 S 205118.9 7656205.7 270 -60 611.20

DSB-06 S 205118.9 7656205.7 210 -80 In progress

Subtotal 2,636.4

TOTAL 3,191.8

UG = Underground S = Surface

Total drilling completed since the start of the program on September 13, 2020 is 6,721

m in 12 underground holes and 10 surface holes with one surface hole in progress.

Qualified Person

Dr. Osvaldo Arce, P. Geo., Manager of Minera Tupiza, Eloro’s subsidiary in Bolivia and a

Qualified Person in the context of National Instrument 43-101 (NI 43-101), has reviewed and

approved the technical content of this news release. Dr. Bill Pearson, P.Geo., Executive Vice

President Exploration Eloro, and who has more than 45 years of worldwide mining exploration

experience including extensive work in South America, manages the overall technical program

in consultation with Dr. Quinton Hennigh, P.Geo., Senior Technical Advisor to Eloro and

Independent Technical Advisor, Mr. Charley Murahwi P. Geo., FAusIMM of Micon International

Limited. Drill samples are prepared in ALS Bolivia Ltda’s preparation facility in Oruro, Bolivia with

pulps sent to the main ALS laboratory in Lima, Peru for analysis by fire assay for gold and silver

as well as 31 element ICP. Over limits from ICP are analyzed by XRF. Eloro employs an industry

standard QA/QC program with standards, blanks and duplicates inserted into each batch of

samples analyzed with selected check samples sent to a separate accredited laboratory.

About Iska Iska

Iska Iska silver polymetallic project is a road accessible, royalty-free property, wholly-controlled

by the Title Holder, Empresa Minera Villegas S.R.L. and is located 48 km north of Tupiza city, in

the Sud Chichas Province of the Department of Potosi. The property can be classified as a silver

polymetallic (Ag, Zn, Pb, Au, Cu, Bi, Sn, In) and porphyry-epithermal complex. This is an

important mineral deposit type in the prolific South Mineral Belt of Bolivia.

Silver polymetallic mineralization at Iska Iska occurs within a Miocene possibly

collapsed/resurgent caldera that consists of granodioritic stocks and five (5) dacitic domes which

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are each about 500m in diameter. These rocks intrude/extrude an intensely deformed sequence

of Ordovician shales, siltstones, and sandstones, which are partially covered by Miocene

pyroclastic rocks. The silver polymetallic mineralization occurs mainly as veins, vein swarms,

veinlets, stockworks, disseminations and in breccias associated with intense hydrothermal

alteration. The Iska Iska dome complex has several major phases of igneous breccias, quartz

porphyries, dikes and dacitic syn-kinematic flows.

On November 18, 2020 Eloro announced the discovery of a significant breccia pipe with

extensive silver polymetallic mineralization just east of the Huayra Kasa underground workings

and a high-grade gold-bismuth zone in the underground workings. Diamond drilling intersected

a number of extensive mineralized intersections within the major breccia pipe including 54.48 g

Ag/t, 1.45% Zinc (Zn) and 1.60% Lead (Pb) over 16.39m (140.91 g Ag eq/t) within a broader

interval of 122.74m grading 14.29 g Ag/t, 0.81% Zn and 0.41% Pb (53.67 g Ag/t eq) in Hole DHK-

04 (see press release November 18, 2020).

The high-grade gold-bismuth zone outlined in channel samples in the underground working

averaged 7.1 g Au/t and 0.2% Bi (8.29 g Au eq/t) over 3.04m width for strike length of 47m. Hole

DHK-05 on the strike extension of the high-grade Au-Bi zone intersected 6.51g Au/t, 0.07% Bi

and 31.96 g Ag/t (7.68 g Au eq/t) over 11.85m grading including 29.56 g Au/t,0.26% Bi/t and

63.69 g Ag/t (31.94 g Au eq/t) over 2.31m in this high-grade zone.

On January 26, 2021, Eloro announced significant results from drilling at the Santa Barbara

Breccia Pipe. Highlights are as follows:

 129.60 g Ag eq/t over 257.5m (29.53g Ag/t, 0.078g Au/t, 1.45%Zn, 0.59%Pb, 0.080%Cu,

0.056%Sn, 0.0022%In, 0.0064%Bi and 0.0083%Cd i) from 0.0m to 257.5m in hole DHK-

15, the deepest of the three holes reported within the SBBP;

 79.00 g Ag eq/t over 121.33m (21.77g Ag/t, 0.034g Au/t, 0.35%Zn, 0.23%Pb, 0.18%Cu,

0.056%Sn, 0.0011%In, 0.004%Bi and 0.0055%Cd) from 0.0m to 121.33m in Hole DHK-

14 within the SBBP;

 74.16 g Ag eq/t over 40.88m (33.43g Ag/t, 0.032g Au/t, 0.04%Zn, 0.33%Pb, 0.13%Cu,

0.045%Sn, 0.0010%In and 0.0012%Bi) from 30.40m to 71.28m in Hole DHK-13 which is

within the approximately 100m wide mineralized envelope that surrounds the breccia

pipe.

Silver-polymetallic mineralization within the Iska Iska system occurs over a potential strike length

of more than 2.5km along major ring structures in the caldera complex. A synchrotron study of

the underground channel samples (see press release dated June 25, 2020) concluded that the

mineral cluster analysis identified four mineralogical domains that cover the entire sampling area

suggesting they are related and represent a single, large mineralizing system. Furthermore, the

mineralogy of the domains is consistent with minerals identified in hand specimen and are likely

related to a telescoped porphyry/epithermal style of mineralization.

About Eloro Resources Ltd.

Eloro is an exploration and mine development company with a portfolio of gold and base-metal

properties in Bolivia, Peru and Quebec. Eloro has an option to acquire a 99% interest in the highly

prospective Iska Iska Property, which can be classified as a polymetallic epithermal-porphyry

complex, a significant mineral deposit type in the Potosi Department, in southern Bolivia. Eloro

commissioned a NI 43-101 Technical Report on Iska Iska, which was completed by Micon

International Limited and is available on Eloro’s website and under its filings on SEDAR. Iska

Iska is a road-accessible, royalty-free property. Eloro also owns an 82% interest in the La Victoria

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Gold/Silver Project, located in the North-Central Mineral Belt of Peru some 50 km south of

Barrick’s Lagunas Norte Gold Mine and Pan American Silver’s La Arena Gold Mine. La Victoria

consists of eight mining concessions and eight mining claims encompassing approximately 89

square kilometres. La Victoria has good infrastructure with access to road, water and electricity

and is located at an altitude that ranges from 3,150 m to 4,400 m above sea level.

For further information please contact either Thomas G. Larsen, Chairman and CEO or

Jorge Estepa, Vice-President at (416) 868-9168.

Information in this news release may contain forward-looking information. Statements containing forward looking

information express, as at the date of this news release, the Company’s plans, estimates, forecasts, projections,

expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently

available to the Company. There can be no assurance that forward-looking statements will prove to be accurate. Actual

results and future events could differ materially from those anticipated in such statements. Readers should not place

undue reliance on forward-looking information.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts

responsibility for the adequacy or accuracy of this release.

Figure 1: Geological Plan Map of the Santa Barbara Breccia Pipe area

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Figure 2: North-South Geological Cross Section, Santa Barbara Breccia Pipe

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Figure 3: West-East Geological Cross Section, Santa Barbara Breccia Pipe

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Figure 4:Core Photos