ELO.TO · 2020-06-25 12:00:00

Eloro Resources Ltd. Announces Start of Underground Preparation for Diamond Drilling Program at Iska Iska Silver- Polymetallic Property Area, Potosi Department, Southern Bolivia

Exploration Programs

NEWS RELEASE | JUNE 25, 2020

Eloro Resources Ltd. Announces Start of Underground

Preparation for Diamond Drilling Program at Iska Iska Silver-

Polymetallic Property Area, Potosi Department, Southern Bolivia

 Synchrotron study identifies four major mineralogi cal domains that are within a single

large telescoped porphyry/epithermal mineralizing system

Toronto, Canada, June 25, 2020 – Eloro Resources Lt d. (TSX-V: ELO; FSE: P2Q) (“Eloro”,

or the “Company”) is pleased to announce that its B olivian subsidiary Minera Tupiza SRL has

contracted Empresa Minera Villegas SRL to start underground drill bay preparations required for

the 3,500m underground diamond drilling program pla nned on its Iska Iska Silver-Polymetallic

Project (“Iska Iska”) in the Potosi Department, sou thern Bolivia. The Company and contractor

have implemented safeguards to protect personnel from COVID-19. It is expected that drilling

can commence once Bolivia lifts lockdown restrictio ns. Mineral Tupiza SRL has an option to

acquire a 99% interest in Iska Iska (see press release January 9, 2020).

Preparations will include rehabilitation of 400 meters of underground workings and preparation

of drill bays in the Huayra Kasa mine and in the Mi na 2 underground workings located 2

kilometres south of Huayra Kasa (Figure 1). All wo rkings will be systematically geologically

mapped and channel sampled.

Tom Larsen, President & CEO of Eloro commented: “Th e planned drill program will follow the

outline presented in the National Instrument (“NI”) 43-101 Technical Report by Micon

International Limited (see press release April 29, 2020). This program will be the first drilling to

ever be carried out on the property and is designed to test the full extent of the mineralized system

in the vicinity of the mine workings. Iska Iska is in a prolific district of Bolivia and has excellent

potential to host a significant silver-polymetallic mineral deposit.”

SYNCHROTRON MINERAL STUDY

Eloro contracted Dr. Lisa Van Loon of LISA CAN Analytical Solutions Inc. and Dr. Neil Banerjee

of Western University, Department of Earth Sciences, to carry out a synchrotron mineral cluster

analysis of samples from Iska Iska. The synchrotron is a type of circular particle accelerator that

is an extremely powerful source of broad-spectrum electromagnetic radiation (e.g., visible light,

infrared, UV, & X-rays), approximately 10 billion times brighter than the sun that allows for a rapid,

high-resolution analytical technique for mineral ex ploration. A total of 42 pulps from samples

from the Iska Iska due diligence program (see press release of October 8, 2019) were analysed.

The study concluded that synchrotron mineral cluste r analysis identified four mineralogical

domains that cover the entire sampling area suggesting they are related and represent a single,

large mineralizing system. Furthermore, the minera logy of the domains is consistent with

minerals identified in hand specimen and are likely related to a telescoped porphyry/epithermal

style of mineralization. Domain 1 is the most perv asive being identified in 31 samples while

Domains 2, 3 and 4 are more localized. Table 1 lists the characteristics of each sample domain

with range of assay results and mineralogical data from the synchrotron samples. Table 2 gives

the complete analytical data for all samples analysed in the study.

Dr. Osvaldo Arce, P.Geo., Eloro’s Project Manager in Bolivia, commented: “The results from this

study support the concept of outlining potential bu lk mineable silver-polymetallic mineralization

at Iska Iska as concluded by Micon. Domain 1 is ve ry widespread with mineralization and

alteration occurring in all rock types including granodiorite, dacite and sandstone. Some samples

returned grades comparable to those samples in the more restricted domains. Domain 2 contains

high silver, zinc, lead and indium values while Dom ain 3 has high gold and bismuth values.

Domain 4 returned the highest gold value with high silver and bismuth. It is likely that the

mineralization in Domains 2 to 4 is a precious meta l-rich epithermal style that occurs along

structures cutting the widespread Domain 1 mineralization that is of disseminated porphyry style.

It should be emphasized that this is a preliminary study the conclusions of which will be refined

with additional surface/underground geological mapping and diamond drilling.”

APPOINTMENT OF MICON INTERNATIONAL

Following the completion of the NI 43-101 Technical Report dated April 27, 2020, the next phase

in the development of the Iska Iska polymetallic pr oject is geared towards the preparation of a

maiden mineral resource estimate. To ensure that the highest level of technical and commercial

standards is upheld, Eloro has retained Micon Inter national Limited as Independent Engineer

(“IE”) to review, on an on-going basis, all its exp loration activities and data collection methods.

The IE will also advise on how best to proceed with preliminary metallurgical test-work of which

the results will be critical in the definition of the mineral resources.

QUALIFIED PERSON

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

of NI 43-101 has reviewed and approved the technica l content of this news release. Dr. Bill

Pearson, P.Geo., Chief Technical Advisor for Eloro, and who has more than 45 years of

worldwide mining exploration experience including extensive work in South America, will provide

technical oversight to the program in consultation with Eloro’s Technical Advisory Committee and

Micon International.

ABOUT ISKA ISKA

Iska Iska 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. T he property can be classified as a

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

mineral deposit type in Bolivia.

Geological mapping on the property by Eloro has revealed the spatial and temporal zonation of

alteration and vein minerals in an area of about 5 square kilometres. The polymetallic

mineralization occurs mainly as veins, subsidiary v ein swarms, veinlets, stockworks, and

disseminations, forming a subvertical vein system i n both the stock and the volcanic and

sedimentary rocks. Preliminary evaluation work inc luding 42 channel samples in underground

channel samples included altered wall rock with wid ths ranging between 1.20 to 5.55 m,

averaging 2.90 m (see press release of October 8, 2019 for further details).

 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).

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 classi fied as a polymetallic epithermal-porphyry

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

recently 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 and Pan American Silver’s La Arena Gold Mine. La Victoria

consists of eight mining concessions and eight mini ng 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.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

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 statements of forward-looking information will prove to be accurate. Actual

results and future events could differ materially f rom 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.

FOR FURTHER INFORMATION PLEASE CONTACT:

Thomas G. Larsen (President & CEO) Jorge Estepa (Vi ce-President)

[email protected] [email protected]

ELORO RESOURCES LTD

20 Adelaide Street East, Suite 200 PHONE (416) 868-9168 | FAX (416) 361-1333

Toronto, Ontario, Canada M5C 2T6 www.elororesources.com

FIGURE 1: LOCATION MAP AND PLAN MAP OF UNDERGROUND WORKINGS AT HUAYRA KASA SHOWING LOCATION OF

DOMAINS DEFINED IN SYNCHROTRON STUDY

TABLE 1: SYNCHROTON MINERALOGICAL ANALYSIS

py = pyrite; mc = marcasite; sph = sphalerite; gn = galena; apy = arsenopyrite; sd = siderite; agt = argentite; spls = samples ; n.d. = not detected

Domain

No.

Spls

Grade Range of Main Metals

Main Minerals

Characteristics

Au g/t Ag g/t Zn% Pb% Bi

ppm

Cu % Sn % Py Mc Sph Gn Apy Sd Agt

0.32-

15.50

(39%

of total

spls)

8.99 -

362

(48% of

total

spls)

0.3-

2.15

(51.6%

of total

spls)

0.25-

9.53

(51.6

% of

total

spls)

23.7-

5,860

(67.7%

of total

spls)

4.72-

˃500

(˃64.5

% of

total

spls)

0.02-˃1

(74.1%

of total

spls)

0.01-

˃0.05

(51.6%

of total

spls)

major

n.d.

minor

n.d.

Quartz,

muscovite,

sulphides

(pyrite), low gold,

low silver, high

bismuth and low

indium

0.02-

0.35

(40%

of total

spls)

204-694

(100%

of total

spls)

0.39-

16.95

(100%

of total

spls)

0.15-

16.95

(100

% of

total

spls)

30.70-

(80% of

total

spls)

46.40-

˃500

(100%

of total

spls)

0.05-

0.15

(74.1%

of total

spls)

<0.01%

(100%

of total

spls)

major

n.d.

major

n.d.

minor

trace

Galena, pyrite,

quartz,

muscovite, low

gold, high silver,

zinc, lead and

highest indium.

High correlation

silver and indium

2.18-

9.10

(100%

of total

spls)

68.90-

295

(100%

of total

spls)

3.75-

3.80

(66.6%

of total

spls)

0.48-

3.75

(100

% of

total

spls)

334-

3160

(100%

of total

spls)

5.44-

323

(100%

of total

spls)

0.05˃1

(100%

of total

spls)

0.01-

˃0.05

(100%

of total

spls)

major

minor

trace

Sulphides

(pyrite), quartz,

high gold,

moderate silver,

high bismuth.

High correlation

gold and bismuth

28.60

61.60

0.01

0.41

7,380

4.37

0.31

<0.01%

minor

major

n.d.

Scorodite,

tourmaline

dravite, quartz,

highest gold,

high silver,

highest bismuth

and low indium

TABLE 2: DETAILED ANALYTICAL DATA BY DOMAIN FOR SAMPLES ANALYZED IN THE SYNCHROTRON STUDY

Domain Sample No. Au g/t Ag g/t Zn % Pb % Cu % Bi ppm In p pm Sn ppm

HK 01 0.01 0.53 0.01 0.01 0.02 12.50 1.08 44.90

HK 02 0.36 1.39 0.51 0.44 0.05 123 4.72 57.80

HK 03 2.50 25.50 2.15 0.63 0.06 967 9.76 108

HK 04 0.85 10.50 1.99 0.28 0.04 52.50 26.3 71.70

HK 06 0.07 46.10 3.01 0.77 0.05 40.80 ˃500 77.60

HK 08 0.02 75.10 1.40 1.35 0.02 40.40 102 65.60

HK 11 <0.01 1.67 0.69 0.15 0.01 23.70 9.68 36.60

HK 12 <0.01 3.78 1.29 0.8 0.01 194 5.67 81.40

HK 13 <0.01 3.10 0.39 0.15 0.01 1.25 9.55 66.80

HK 14 0.04 13.60 0.38 0.43 0.02 4.12 2.82 52.10

HK 15 <0.01 1.82 1.05 0.03 0.01 1.81 2.07 66.80

HK 16 <0.01 0.85 0.08 0.01 0.01 2.02 0.99 38.70

HK 17 <0.01 5.99 0.31 0.25 0.01 3.06 1.83 105

HK 19 0.03 37.70 1.51 1.33 0.04 44.10 8.95 ˃500

HK 21 0.34 2.60 0.51 0.07 0.02 101 3.95 25

HK 23 12.4 57.4 1.86 1.44 0.02 1,200 19.40 42

HK 24 0.03 3.030 0.01 0.21 0.04 36.70 7.09 185

HK 25 0.32 26.90 0.01 1.16 0.04 163 28.50 ˃500

HK 27 1.61 55.70 0.01 0.11 ˃1.00 503 4.78 ˃500

HK 28 1.65 321 0.01 0.35 0.29 1,850 16.90 ˃500

HK 29 0.60 68.70 0.01 0.01 ˃1.00 1,500 10.40 ˃500

HK 30 0.01 1.72 0.01 0.00 0.01 6.31 0.50 128

HK 31 2.60 288 0.01 0.42 0.14 2,850 10.60 ˃500

HK 32 0.02 2.90 0.02 0.01 0.14 21.04 0.83 75.40

HK 33 0.11 4.06 0.02 0.17 0.10 18.40 5.21 40.40

HK 34 0.02 1.61 0.01 0.01 0.01 17.70 0.69 59

HK 35 0.01 0.55 0.01 0.01 0.01 6.17 0.58 43.60

HK 36 2.14 8.99 0.01 0.72 0.02 646 5.84 30.90

HK 37 0.08 1.43 0.01 0.07 0.01 8.97 3.88 90

HK 39 0.15 1.15 0.01 0.01 0.01 42.10 1.13 65.50

HK 41 0.19 73.4 5.63 1.08 0.03 48 32.2 172

HK 07 0.35 204 4.81 4.13 0.05 30.70 384 283

HK 09 0.02 266 5.75 8.24 0.01 71 46.40 248

HK 10 0.01 570 10.60 9.72 0.15 73 ˃500 136

HK 18 0.03 362 9.23 9.53 0.03 66.80 23 845

HK 42 0.01 694 7.87 16.95 0.06 37 ˃500 182

HK 22 9.10 73.70 3.80 1.70 0.08 1,230 323 30.1

HK 26 2.71 295 0.02 0.48 ˃1.0 3,160 24.10 ˃500

HK 40 2.18 68.90 3.75 3.75 0.05 334 5.44 311

4 HK 38 28.60 61.60 0.01 0.41 0.31 7,380 4.37 17

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