Eloro Resources Announces Shares-for-Debt Transaction

Eloro Resources Announces Shares-for-Debt Transaction

Toronto, Canada, October 11, 2018 – Eloro Resources Ltd. (TSX -V: ELO; FSE: P2Q) (“Eloro” or the

“Corporation”) announces its intention to proceed with a shares-for-debt transaction (t he “Shares-for-

Debt Transaction”) with insiders of the Corporation who are related parties (“ Related Parties”), in which

Eloro proposes to issue 962,000 Common Shares at a price of $0. 50 per Common Share to settle debts

of $481,000. The transaction is bein g undertaken by Eloro in order to conserve capital and improve the

Corporation’s balance sheet while financing junior exploration companies remains difficult.

In accordance with the policies of the TSX Venture Exchange, the proposed Shares-for-Debt Transaction

with “ insiders” who are Related Parties requires the approval of a majority of the disinterested

shareholders of the Co rporation who vote on the applicable resolution at a meeting of the shareholders.

Disinterested shareholder approval was obtained by the Co rporation at its annual and special

shareholders meeting held on September 28, 2018. In addition to disinterested shareholder approval, t he

completion of the Shares-for-Debt Transaction is subject to the receipt of all regulatory approvals

including that of the TSX Venture Exchange. Any securities to be issued by Eloro pursuant to the

Shares-for-Debt Transaction would be subject to a 4-month hold period.

About Eloro Resources Ltd.

Eloro is an exploration and mine development company with a portfo lio of gold and base-metal properties

in Peru and Quebec. Eloro owns a 90% interest in the La Victoria Gold/Silver Project , located in the

North-Central Mineral Belt of Peru some 50 km south of Barrick's Lagunas Norte Gold Mine and Tahoe's

La Arena Gold Mi ne. La Victoria consists of eight mining concessions and eight mining claims

encompassing approximately 89 square kilometres. The property has good infrastructure with access to

road, water and electricity and is located at an altitude that ranges from 3,100 m to 4,200 m above sea

level.

For further information please contact Thomas G. Larsen, Chairman and C.E.O. of Eloro

Resources Ltd., or Jorge Estepa, Vice-President of Eloro Resources Ltd. 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 Corporation's plans, estimates,

forecasts, projections, expectations, or beliefs as to future events or results and are believ ed to be

reasonable based on information currently available to the Corporation. 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 st atements. 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 rele ase.

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

TSX.V Symbol: ELO www.elororesources.com