Eloro Resources Granted Option to Acquire the Iska Iska Polymetallic Property, Potosi Department, Southern Bolivia

Eloro Resources Granted Option to Acquire the Iska Iska Polymetallic Property, Potosi

Department, Southern Bolivia

Toronto, Canada, October 8, 2019 – Eloro Resources Ltd. (TSX-V: ELO; FSE: P2Q) (“Eloro”,

or the “Company”) is pleased to announce it has signed a Letter of Intent (the “Agreement”) with

a private arm’s-length Bolivian-based corporation (the “Title Holder”), granting Eloro an option to

acquire up to a 100% interest in the Iska Iska Polymetallic Property (“Iska Iska” or the “Property”),

consisting of one mineral concession totalling 900 hectares. The Property is located in a world-

class polymetallic mining district in the Potosi Department in the southern half of the Bolivian tin

belt, which hosts the largest silver deposit in the world, the Cerro Rico de Potosi, and the

polymetallic mining districts of Chorolque, Animas, Choroma, Siete Suyos, Chocaya and Tasna,

situated in the same geological trend.

The Agreement

Under the terms of the Agreement, Eloro will conduct an exploration and development program

on the Property during the four-year period following the signing of a definitive agreement (the

“Definitive Agreement”), which is due on or before December 31, 2019. Within 30 days following

the completion of the four year period the Title Holder will convey to Eloro’s, Bolivian subsidiary,

a 100% interest in the Property upon Eloro paying the amount indicated in the table below, which

amount is based on the number of mineral resource tonnes at Iska Iska in the “Inferred” and/or

“Indicated” categories, as such terms are defined by National Instrument 43-101 (“NI 43-101”).

Number of Mineral Resource Tonnes at the Iska Iska

Polymetallic Property in the “Inferred” and/or “Indicated”

Categories as per NI 43-101.

Amount Payable

More than 300 million tonnes US $10 million

More than 100 million tonnes but less than 300 million tonnes US $5 million

More than 20 million tonnes but less than 100 million tonnes US $3 million

Less than 20 million tonnes US $1 million

Pursuant to the Agreement, Eloro has also agreed to issue to the Title Holder 250,000 common

shares within 30 days of the signing of the Definitive Agreement and a further 250,000 common

shares on or before the date which is two years from the signing of the Definitive Agreement,

should Eloro elect to continue with the Iska Iska exploration program at that time.

Eloro and the Title Holder have agreed to proceed to the execution and delivery of a definitive

agreement (“Definitive Agreement”) on or before December 31, 2019, incorporating the terms

contained in the Agreement. The execution of the Definitive Agreement is subject to the

satisfactory completion by Eloro of its ongoing due diligence investigation of the Property and

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

also subject to the approval by the Boards of Directors of Eloro and the Title Holder, and the

approval of the TSX Venture Exchange, as well as the laws of the Plurinational State of Bolivia.

The Iska Iska Polymetallic Property and Due Diligence Work Completed to Date

Iska Iska is a road accessible, royalty-free property, wholly-owned by the Title Holder and is

located 48 km north of Tupiza city, in the Sud Chichas Province of the Department of Potosi (see

Figure 1). The Property can be classified as a polymetallic (Ag, Zn, Pb, Au, Cu, Bi, Sn, In)

epithermal-porphyry complex, which overprints an early higher temperature xenothermal phase. 

Geological mapping on the Property has revealed the spatial and temporal zonation of alteration

and vein minerals in an area of about 5 square kilometres through the property area (Fig. 2).

Alteration minerals include quartz, chlorite, pyrite, illite, sericite, and hematite. The polymetallic

mineralization occurs mainly as veins, subsidiary vein swarms, veinlets, stockworks, and

disseminated, forming a subvertical vein system in both the stock, the volcanic and sedimentary

rocks. Some of the veins are "rosary" type in shear zones and tension fractures, which locally

form bonanza zones and stockworks in an extensive mineralized system. Veins are typically less

than 50 cm wide and have orientations between N10º at 45ºE and dips ranging from 64º SE to

vertical.

The identified metallic minerals are pyrite, galena, sphalerite, complex silver-rich phases,

argentite electrum, native gold, chalcopyrite and cassiterite. Gangue minerals are quartz,

kaolinite, arsenopyrite, pyrrhotite, marcasite, sericite, and siderite. The mineralization represents

a multiple phase (telescoped) polymetallic system with at least two stages of mineralization; an

early stage with high temperature minerals as cassiterite and bismuthinite, and a lower

temperature with the silver, gold, zinc, lead and copper minerals.

In August 2019, Eloro performed preliminary evaluation work at Iska Iska that included geological

mapping and sampling, whereby 42 channel samples were collected. All of the channel samples

included altered wall rock with widths ranging between 1.20 to 5.55 m, averaging 2.90 m. Four

underground workings were sampled, including the Huayra Kasa which has two branches, one

bearing a W-NW direction and the second oriented in a North-South direction, with the latter

appearing to be more enriched in gold. Additionally, the Santa Barbara, Porco and Mine 2 adits

were sampled, together with two sectors on surface. Chemical assays were performed at the

ALS Laboratory in both Oruro, Bolivia (preparation) and in Lima, Peru (analysis).

The results of the channel sampling program are detailed in Table 1, and are summarized below:

 Silver. Anomalous silver values range between 35.5-694 g/t Ag (46% of channel samples).

 Gold. Anomalous gold values range between 0.31-28.6 g/t Au (42% of channel samples).

 Zinc. Anomalous zinc values range between 1.05-16.95% Zn (37% of channel samples).

 Lead. Anomalous lead values range between 0.41- 16.95% Pb (49% of channel samples).

 Copper. Anomalous copper values range between 0.1->1% (22% of channel samples).

 Bismuth. Anomalous bismuth values range between 967-7,380 g/t Bi (22% of channel

samples).

 Indium. Anomalous indium values range between 10.35 - >500 g/t In (34% of channel

samples).

It is significant to note that the due dili gence and sampling program was performed only on

approximately 15% of the total Property area.

FIGURE 1 – Iska Iska Property Location And Main Deposits In Bolivia

International Mining Presence in the Department of Potosi, Bolivia

In addition to various state mining ventures, the main projects in the private/mixed mining sector

in Bolivia include the San Cristobal open-pit silver, lead and zinc mine (owned by the Sumitomo

Group), the San Vicente silver mine (95% owned by Pan American Silver) and the San Bartolome

silver mine (owned by Argentum Investments, AB). As well, recent foreign investment and

exploration in the Potosi mining district is currently being undertaken by New Pacific Metals Corp.

at their flagship Silver Sand project and by Prophecy Development Corp. at its Pulacayo-Paca

project.

Tom Larsen, Eloro CEO stated, “We are delighted to sign the Letter of Intent to acquire this

exciting project in Bolivia, especially as this country is starting to be recognized as a “go-to”

destination for foreign investment in the mineral resource sector. The results of our initial due

diligence, supervised by Dr Osvaldo Arce, P. Geo., are very positive and suggest the potential

for a large polymetallic mineralized system in a similar geological setting to other major deposits

in the belt. It is significant to note that this property has not been drilled to date. We look forward

to finalizing the Definitive Agreement and advancing the exploration effort at Iska Iska.”

TABLE 1 – Eloro Iska Iska Channel Sampling Results

Channel

Sample No.

Width

(m) 1

Au

g/t Ag g/t Zn % Pb % Cu g/t Bi g/t In g/t Sn g/t

HK-01 2.35 0.01 0.53 0.01 0.01 171.00 12.50 1.08 44.9 Granodiorite, tr-1% py-

aspy dissem

HK-02 4.10 0.36 1.39 0.51 0.44 519.00 123.00 4.72 57.8 Granodiorite, 1% py-

aspy dissem

HK-03 3.10 2.50 25.50 2.15 0.63 569.00 967.00 9.76 107.5 Granodiorite, brecciated

3% py dissem

HK-04 3.60 0.85 10.50 1.99 0.28 439.00 52.50 26.30 71.7 Granodiorite, py, gal,

sph 3mm veinlets

HK-05 3.10 0.04 1.68 0.32 0.04 187.00 6.51 6.74 67 Dacite, minor py, sph

veinlets

HK-06 2.60 0.07 46.10 3.01 0.77 541.00 40.80 >500 77.6

Dacite, abundant

dissem sulphides,

massive sulphide

veinlets.

HK-07 3.20 0.35 204.00 4.81 4.13 479.00 30.70 384.00 131

Dacite, 4 veinlets 1cm

wide; massive

sulphides, 30cm breccia

HK-08 3.70 0.02 75.10 1.40 1.35 219.00 40.40 101.50 65.6

Sandstone brecciated;

py, aspy, gal, sph

veinlets

HK-09 3.30 0.02 266.00 5.75 8.24 127.50 71.00 46.40 215 Sandstone brecciated,

3-5cm gal, sph, py veins

HK-10 2.70 0.01 570.00 10.60 9.72 1510.00 73.00 >500 250

Sandstone brecciated,

abundant sph, gal, py,

aspy veinlets

HK-11 2.40 <0.01 1.67 0.69 0.15 83.80 23.70 9.68 36.6 Granodiorite, tr-1% fine

sulph dissem.

HK-12 3.15 <0.01 3.78 1.29 0.80 105.50 1.94 5.67 81.4

Dacite, local fine dissem

sulphides, sph, gal; 5

veinlets

HK-13 2.25 <0.01 3.10 0.39 0.15 111.00 1.25 9.55 68.8 Dacite, local fine dissem

sulphides

HK-14 2.90 0.04 13.60 0.38 0.43 171.50 4.12 2.82 52.1 Granodiorite fine

disseminated py

HK-15 2.50 <0.01 1.82 1.05 0.03 104.50 1.81 2.07 66.8 Dacite, boxworks FeOx,

3cm sph, py veinlets

HK-16 2.15 <0.01 0.85 0.08 0.01 148.00 2.02 0.99 38.7 Granodiorite 1% fine

dissem sulphides

HK-17 3.00 <0.01 5.99 0.31 0.25 130.00 3.06 1.83 102.5 Dacite 1% fine dissem

sulphides

HK-18 3.85 0.03 362.00 9.23 9.53 327.00 66.80 23.00 >500

Dacite carbonaceous,

5mm sph, gal veinlets,

abundant sulphides

dissem

HK-19 3.00 0.03 37.70 1.51 1.33 435.00 44.10 8.95 >500

Mine front-end,

granodiorite cpy, py, gn,

sph veinlets & dissem

HK-20 2.95 15.50 7.58 0.25 0.07 617.00 5860.00 1.04 23.4

N-S gallery, brecciated

granodiorite 1 cm 3 gn

veins, 1-2% dissem py

Channel

Sample No.

Width

(m) 1

Au

g/t Ag g/t Zn % Pb % Cu g/t Bi g/t In g/t Sn g/t

HK-21 3.35 0.34 2.60 0.51 0.07 150.00 100.50 3.95 25 Sandstone FeOx

stockwork-sulphides

HK-22 2.90 9.10 73.70 3.80 1.70 750.00 1230.00 323.00 65.5

Sandstone networkpy,

boxwork FeOx, massive

aspy, 3% dissem

sulphides

HK-23 2.90 12.35 57.40 1.86 1.44 191.00 1200.00 19.35 42 Sandstone 2-5cm

abundant veins gn-sph

HK-24 2.56 0.03 3.03 0.01 0.21 423.00 36.70 7.09 185

Granodiorite 10 py

veinlets, 1% fine dissem

sulphides

HK-25 2.55 0.32 26.90 0.01 1.16 401.00 162.50 28.50 >500

Mine front-end

granodiorite fine dissem

sulphides

HK-26 2.55 2.71 295.00 0.02 0.48 >10000 3160.00 24.10 >500

Qtz Sandstone py-aspy

veinlets, 10cm massive

sulphide veins

HK-27 1.25 1.61 55.70 0.01 0.11 >10000 503.00 4.78 >500

Similar to former

channel sample, abund

py, pyrrh, cpy, calcoc

HK-28 3.35 1.65 321.00 0.00 0.35 2920.00 1850.00 16.85 >500

Qtz sandstone, euhedral

crystalspy, po, fine

dissem sulphides

HK-29 1.96 0.60 68.70 0.01 0.01 >10000 1500.00 10.35 >500

Qtz sandstone massive

sulph vns, py-aspy

intergrowths,-veinlets

HK-30 2.10 0.01 1.72 0.01 0.00 129.00 6.31 0.50 127.50

Qtz sandstone with 3%

dissem sulphides,

sporadic coarse py

dissem

HK-31 2.30 2.60 288.00 0.01 0.42 1430.00 2850.00 10.60 >500

Qtz sandstone oxidized-

bleached, stockwork

FeOx

HK-32 4.60 0.02 2.90 0.02 0.01 1375.00 21.40 0.83 75.40

Granodiorite oxidized

micaceous, 5 mm FeOx

veinlets

HK-33 5.55 0.11 4.06 0.02 0.17 1025.00 18.35 5.21 40.40 Similar to former

channel sample

HK-34 2.10 0.02 1.61 0.00 0.01 47.40 17.70 0.69 59.00

Granodiorite brecciated,

specularite matrix,

dacite clasts

HK-35 2.30 0.01 0.55 0.00 0.01 20.20 6.17 0.58 43.60 Similar to former

channel sample

HK-36 1.60 2.14 8.99 0.01 0.72 166.50 646.00 5.84 30.90 Granodiorite brecciated,

massive sulphide vein

HK-37 1.80 0.08 1.43 0.01 0.07 112.50 8.97 3.88 90.00 Granodiorite, FeOx

veinlets

HK-38 1.20 28.60 61.60 0.01 0.41 3140.00 7380.00 4.37 17.00

Massive sulphide vein

30 cm, py, po, cpy in

altered granodiorite

HK-39 5.30 0.15 1.15 0.00 0.01 137.50 42.10 1.13 65.50 Granodiorite brecciated

w/sulphidic matrix

HK-40 3.16 2.18 68.90 3.75 3.75 539.00 334.00 5.44 311.00

Qtz Sandstone massive

sulphides cpy, py, gn,

sph, dissem, veinlets

HK-41 2.15 0.19 73.40 1.08 1.08 348.00 428.00 32.20 171.50

Similar to former

channel sample, though

includes stockwork py

HK-42 2.70 0.01 694.00 16.95 16.95 644.00 37.00 >500 181.50

Sandstone brecciated,

abundant sph, gn, py,

aspy vnlts

1. Reported channel sample widths are approximately 90% of true widths.

2. Abbreviations py=pyrite, gn=gal ena, sph=sphalerite, dissem=dissemi nated, aspy=arsenopyrite, qtz=quartz,

FeOx=iron oxide, po=pyrrhotite, tr=trace, mm=millimetre, cm=centimetre

Figure 2 – Preliminary Interpretation of Iska Iska Geology and Mineral System (see

Figure 3 for location map).

FIGURE 3 – Underground Channel Sampling Iska Iska Property (Huayra Kasa Adit)

Qualified Person

Dr. Osvaldo Arce, P. Geo., an expert on Bolivian geology and a Qualified Person in the context

of NI 43-101 supervised the due diligence work completed at Iska Iska by Eloro. Dr. Bill Pearson,

P.Geo., a Qualified Person in the context of National Instrument 43-101 has reviewed and

approved the technical content of this news release. Chemical assays were performed at the

ALS Laboratory in both Oruro, Bolivia (preparation) and in Lima, Peru (analysis). ALS Laboratory

employs an industry standard QA/QC program. Eloro Resources will utilize an independent

QA/QC program including blanks, duplicates and external standards for its planned exploration

program at Iska Iska.

Quality Assurance Quality Control Procedures and Protocol Employed by Eloro

Resources Ltd.

The integrity of a resource database is fundamental to Eloro’s success in securing debt or equity

finance for a new mining project. The validity and quality of data can only be guaranteed when

appropriate sampling and assaying protocols have been implemented. Eloro has implemented

Quality Assurance/Quality Control (QA/QC) programs in its projects applied during all phases of

sampling programmes. QA/QC programmes are carefully designed and implemented at all

stages of exploration and development where sampling of material is undertaken. Furthermore,

QA/QC programs will require review prior to, and during, each sampling programme with

modifications made where necessary based on numerous factors such as sample type, size, and

the proposed sample processing and treatment methods.

Eloro acknowledges that QA/QC is required to ensure all chemical data generated over the

course of a sampling programme during the overall exploration. The key areas subject to QA/QC

auditing prior to mineral resource estimation will be project-specific protocols and available

sample data from QA/QC sampling and analysis.

Project-specific protocols, often in the form of Standard Operations Procedures (“SOPs”), will be

in place before any sampling commences. SOPs should outline the procedures and operating

practices to be implemented during the sampling programmes, from the initial set up of the drill

rig through to the analysis of QA/QC data upon receipt of the sampling results. SOPs help to

ensure that a culture of QA/QC is established throughout sampling programmes, and also aid in

identifying areas of risk within a procedure where errors could occur.

Three essential stages which are applicable to all projects are the following:

 It will be standard practice to include the right mix of QA/QC materials in every batch of

samples submitted to a laboratory.

 The geologist/technician initiating the analysis will critically review the results of all QA/QC

samples within a sample batch as soon as the results are received from the laboratory.

This will be undertaken prior to the associated data being included within the resource

database, and used to update any resource models.

 Action must be taken when QA/QC results fall outside of predetermined acceptable limits.

QA/QC materials inserted into sample streams will be used to assess the three fundamental

aspects (precision, accuracy, identification of errors) of QA/QC. Best practice QA/QC

programmes will include a combination of the following QA/QC materials:

Primary Standards (or Standards, Certified Reference Materials (“CRMs”)

Material with a known metal content and specific chemical characteristics similar to the

mineralisation being sampled, will be utilised to evaluate bias within a sample dataset. These can

be externally sourced commercial standards (CRMs) or company ‘in house’ standards (which

require a specific QA/QC analytical testing programme). For example Eloro has reviewed projects

in the past where in order of 10 different standards were used with some standards being only