Eloro Resources Announces the Exercise in Full of the Bought Deal Financing Over- Allotment Option by the Underwriters

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

Eloro Resources Announces the Exercise in Full of the Bought Deal Financing Over-

Allotment Option by the Underwriters

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION

OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.

Toronto, Canada – March 24, 2021 – Eloro Resources Ltd. (the “Company” or “Eloro”) (TSX-V: ELO;

OTCQX: ELRRF; FSE: P2QM) is pleased to announce that, in connection with it s previously announced

bought deal financing (the “Financing”) (see Eloro press releases dated March 2, 2021, March 3, 2021 and

March 8, 2021), and further to the filing of the fi nal short form prospectus on March 18, 2021 with th e

applicable securities regulators in each of the pro vinces of Canada, except Quebec, Haywood Securities

Inc. and Cantor Fitzgerald Canada Corporation as co -lead underwriters and joint-bookrunners, and

Cormark Securities Inc. as co-lead underwriter (col lectively, the “Underwriters”), have elected to exe rcise

their over-allotment option (“Over-Allotment Option”) in full.

Under the terms of the Financing, the Over-Allotmen t Option granted the Underwriters an option to

purchase up to an additional 870,000 units (“Units” ) at a price of C$3.75 per Unit (the “Issue Price”) ,

exercisable at any time, in whole or in part, until the date that is 30 days following the closing of the

Financing. With the exercise in full of the Over-Allotment Option, the total number of Units to be sold in the

Financing will be 6,670,000 Units at the Issue Pric e for total gross proceeds to the Company of

C$25,012,500.

Each Unit will consist of one common share (a “Comm on Share”) in the capital of the Company and one-

half (1/2) of one common share purchase warrant (ea ch whole common share purchase warrant, a

“Warrant”) of the Company. Each Warrant shall be exercisable to acquire one Common Share (a “Warrant

Share”) at a price per Warrant Share of C$5.25 for a period of 24 months from the closing date of the

Financing. The expiry date of the Warrants may be accelerated by the Company at any time following th e

six-month anniversary of the closing date of the Financing and prior to the expiry date of the Warrants if the

volume-weighted average trading price of the Compan y’s Common Shares is greater than C$7.00 for any

20 consecutive trading days, at which time the Company may accelerate the expiry date by issuing a press

release to announce the reduced warrant term, where upon the Warrants will expire on the 20th calendar

day after the date of such press release.

The Company intends to use the net proceeds from th e Financing mainly for continued exploration and

development of the Company’s Iska Iska project in B olivia. On February 16, 2021, Eloro announced the

addition of a second drill rig to commence drilling on the Central Breccia Pipe target. Planned diamo nd

drilling for the balance of 2021 and Q1 2022 is 51, 000 metres, comprising 6,000 metres already budgete d

and an additional 45,000 metres planned to be funde d from the Financing. Additional drills will be ad ded

in stages so that by July 2021, 4 surface drill rigs are expected to be operating with an expected production

of 6,000 metres per month. This drilling will be done to explore and define a mineral resource in the Santa

Barbara Breccia Pipe, Central Breccia Pipe, Porco ( South) Breccia Pipe target and the Huayra Kasa

Breccia Pipe and underground workings. Included as part of the 45,000 metres are 6,000 metres of drilling

in outside targets at Iska Iska and the Pache prope rty located 20 kilometres southwest of Iska Iska. Eloro

also intends to pay from the proceeds of the Financ ing US$2,500,000 toward the US$10,000,000 option

price under an option agreement to acquire a 99% interest in the Iska Iska Project.

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The Financing is scheduled to close on or about Mar ch 26, 2021 and is subject to certain conditions

including, but not limited to, the receipt of all necessary regulatory and other approvals.

The securities offered in the Financing have not been, and will not be, registered under the U.S. Securities

Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be

offered or sold in the United States or to, or for the account or benefit of, United States persons ab sent

registration or any applicable exemption from the r egistration requirements of the U.S. Securities Act and

applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation

of an offer to buy securities in the United States, nor there be any sale of these securities in any jurisdiction

in which such offer, solicitation or sale would be unlawful.

Qualified Person

Dr. Bill Pearson, P.Geo., Eloro’s Executive Vice President Exploration and a Qualified Person as such term

is defined in National Instrument 43-101, has revie wed and approved the technical content of this news

release.

About Eloro

Eloro is an exploration and mine development compan y with a portfolio of gold and base-metal propertie s

in Bolivia, Peru and Quebec. Eloro has an option t o 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 Gold/Silver Project , located in the North-Central Mineral Belt of Peru some

50 km south of Barrick’s Lagunas Norte Gold Mine an d Pan American Silver’s La Arena Gold Mine. La

Victoria consists of eight mining concessions and e ight mining claims encompassing approximately 89

square kilometres. La Victoria has good infrastruct ure 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 Thoma s 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 forwa rd-

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 (forward-looking statements in this news release include,

without limitation, statements regarding the comple tion of the Financing, the use of proceeds from the

Financing and the Company’s exploration plans at the Iska Iska property). 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 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.