Mr. Tom Larsen reports

ELORO RESOURCES ANNOUNCES ROBUST INITIAL INFERRED MINERAL RESOURCE ESTIMATE OF 670 MILLION TONNES CONTAINING 1.15 BILLION IN-SITU OUNCES SILVER EQUIVALENT FOR ISKA ISKA PROJECT, POTOSI DEPARTMENT, SOUTHWESTERN BOLIVIA

Eloro Resources Ltd. has released the inaugural mineral resource estimate (MRE) for the Iska Iska silver-tin polymetallic project in the Potosi department of southwestern Bolivia. The MRE has been prepared by independent qualified persons with Micon International Ltd. as defined under National Instrument 43-101. A technical report outlining the mineral resource estimation will be filed on SEDAR within 45 days of the date of this release.

The Micon QPs with responsibility for the initial mineral resource estimate are Charley Murahwi, MSc, PGeo, FAusIMM, Alan San Martin, MAusIMM (CP), and Abdoul Aziz Drame, BEng, PEng.

Tom Larsen, chief executive officer of Eloro, said: "We are delighted with this initial MRE which shows what a massive discovery Iska Iska is. The recent metallurgical work (see Eloro press release of July 26, 2023), particularly the positive ore sorting results, has significantly enhanced the potential economics by substantially lowering the NSR cut-off, especially for the potential open pit where the bulk of the resource is located. The fact that this potential pit is 1.4 kilometres in diameter and extends to a depth of 750 metres below the Santa Barbara hill attests to the remarkable size of the Iska Iska mineralized system. The overall stripping ratio of 1:1 is very attractive. In the first years of the potential production from the near-surface, higher-grade resource, the stripping ratio will be less than 1. Although the resource is classified as inferred, we are confident that further drilling will upgrade much of this to the indicated category. In addition, the metallurgical testing program was very extensive for this stage of the project but was felt to be necessary to confirm the economic potential. Additional planned metallurgical testing has the potential to further improve recoveries."

Mr. Larsen continued: "The overall MRE contains almost 300 million ounces of in situ silver, 4.1 million tonnes of zinc, 1.7 million tonnes of lead and 130,000 tonnes of tin for a remarkable total of 1.15 billion ounces silver equivalent in situ. Our geological team led by Dr. Bill Pearson, PGeo, vice-president, exploration, and Dr. Osvaldo Arce, PGeo, general manager of Minera Tupiza, are confident that the Iska Iska resource can be further expanded and that grades in areas with only wide-spaced drilling will likely increase with definition drilling. The tin domain in particular is very underdrilled, and our geophysical data indicates potential for a large tin porphyry at depth."

Mr. Larsen further noted: "The overall in situ value based on the net NSR values stated above is approximately $6.8-billion (U.S.) of which $3.3-billion (U.S.) is in the shallower high-grade zone in the potential open pit. This augers well for the potential for early payback on the project. We will shortly be commencing the next phase of work which will include definition drilling, further metallurgical testing, preparation of a preliminary economic assessment (PEA) and further exploration drilling of the tin domain."

Dr. Arce, PGeo, the author of Yacimientos Metaliferos de Bolivia, the authoritative book on metalliferous deposits of Bolivia, commented: "Iska Iska, which is a very large Bolivian-type polymetallic porphyry-epithermal deposit, is one of the major discoveries historically in the prolific Bolivian tin belt joining the giant (greater than 500 million tonnes) systems such as Cerro Rico de Potosi (Ag, Sn) and Llallagua (Sn). Iska Iska is an example of responsible mineral exploration practices, environmental protection and respect for the rights of local communities that will be fundamental to ensure sustainable and equitable growth in this sector. This, in turn, generates employment and growth opportunities for local communities and in the country as a whole."

Initial mineral resource estimate

The following section is prepared by Micon International:

1. Definition -- net smelter return (NSR) and metal equivalent

The Iska Iska deposit is polymetallic in nature and as such/hence, the value of its mineralized material will result from the extraction and sale of a combination of metals which include Ag, Pb, Sn and Zn for the initial mineral resource. Pending further success in metallurgical test work, copper, gold and indium may be added to the economic equation.

Based on the Canadian Institute of Mining, Metallurgy and Petroleum best practice guidelines of November, 2019, two methods are widely applied in the mining industry to address the polymetallic nature of such deposits. These include the use of a metal equivalent or the calculation of the net smelter return (NSR). For the NSR method, the dollar value that each metal contributes toward the total value is calculated and is expressed as one value referred to as the NSR value. The calculation of an NSR value considers revenues, metallurgical recoveries, smelter deductions, treatment charges, penalties and transportation costs for all metals of potential economic interest. This NSR value can then be used to derive a cut-off value, where the NSR cut-off value is then the dollar value of a given sample or block that equals the total operating costs, as appropriate.

In some cases where there are multiple elements in the deposit that contribute to the deposit value, a one-commodity equivalent calculation is sometimes used as the cut-off grade or value. In this approach, all the grades for the various commodities are converted to an equivalent metal grade by consideration of the metal prices and recoveries. The calculation of equivalent cut-off grade or value is based on a formula developed by the practitioners. This formula, and the parameters used for its development, must be clearly stated. The metal equivalent grades are then used as the cut-off grades to estimate the Mineral Reserves.

2. NSR versus metal equivalent grade cut-off grades

Based on Micon's QP experience: In multimetal deposits where there is a primary product supported by secondary products, it is more appropriate to use a metal equivalent cut-off grade based/denominated on the primary commodity. Conversely, in multimetal deposits where the deposit constituents/metals are considered largely as co-products with no obvious dominant commodity, it is best to employ an NSR value in applying a cut-off grade. The second scenario suits the Iska Iska deposit better at this stage of exploration in the definition of the deposit.

3. Iska Iska initial MRE statement

Due to the multimetal nature of the deposit, the resources are reported using NSR cut-off values which are as follows:

Polymetallic (Zn-Pb-Ag) domain is $9.20 (U.S.)/tonne for open pit (OP) and $34 (U.S.)/t for underground (UG) mining; tin (Sn-Ag-Pb) domain is $6 (U.S.)/t for OP mining. Costs have been significantly reduced due to the major impact of the positive ore sorting tests (see Eloro press release of July 26, 2023).

Using the above cut-off values, the initial mineral resources for the Iska Iska deposit as of Aug. 19, 2023, are shown in the attached table. The economic and technical assumptions used are stated beneath this table. All the resources are in the inferred category.

4. Higher-grade shallower resource in polymetallic domain

There is a shallow higher-grade resource in the polymetallic domain of 132 million tonnes at 1.11 per cent Zn, 0.50 per cent Pb and 24.3 grams per tonne silver for an NSR value of $34.50 (U.S.) at an NSR cutoff of $25 (U.S.)/t. This portion of the potentially open-pittable resource provides potential for early payback for the Iska Iska project.

Coming webinar

Eloro is also pleased to announce that Dr. Pearson will be presenting an overview of the Iska Iska MRE in a live webinar taking place on Tuesday, Sept. 5, at 10:30 a.m. PT/1:30 p.m. ET. The webinar will be hosted by Focus Communications Investor Relations (FCIR) and Cory Fleck of the Korelin Economics Report. Participants are encouraged to submit any questions for the company prior to the event by e-mailing FCIR at info@fcir.ca.

Date: Tuesday, Sept. 5

Time: 10:30 a.m. PT/1:30 p.m. ET

Qualified person

The inaugural MRE for Iska Iska has been prepared by Micon International. Independent QPs for the technical report are Mr. Murahwi, PGeo, FAusIMM, Richard Gowans, PEng, Ing, Mr. San Martin, MAusIMM (CP), and Mr. Drame, PEng, all of whom are independent QPs as defined by National Instrument 43-101. Mr. Murahwi completed site visits in January, 2020, and November, 2022.

Dr. Arce, PGeo, general manager of Eloro's Bolivian subsidiary, Minera Tupiza SRL, and a qualified person in the context of NI 43-101, has reviewed and approved the technical content of this news release. Dr. Pearson, PGeo, 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, working closely with Dr. Arce, PGeo. Dr. Quinton Hennigh, PGeo, senior technical adviser to Eloro, and independent technical adviser Mr. Murahwi, PGeo, FAusIMM, of Micon, are regularly consulted on technical aspects of the project.

Eloro is utilizing both ALS and AHK for drill core analysis, both of which are major international accredited laboratories. Drill samples sent to ALS are prepared in both ALS Bolivia Ltda.'s preparation facility in Oruro, Bolivia, and the preparation facility operated by AHK in Tupiza with pulps sent to the main ALS Global laboratory in Lima for analysis. More recently Eloro has had ALS send pulps to its laboratory at Galway in Ireland. Eloro employs an industry-standard quality assurance/quality control program with standards, blanks and duplicates inserted into each batch of samples analyzed with selected check samples sent to a separate accredited laboratory.

Drill core samples sent to AHK Laboratories are prepared in a preparation facility installed and managed by AHK in Tupiza with pulps sent to the AHK laboratory in Lima, Peru. Au and Sn analysis on these samples is done by ALS Bolivia in Lima. Check samples between ALS and AHK are regularly done as a QA/QC check. AHK is following the same analytical protocols used as with ALS and with the same QA/QC protocols.

About Iska Iska

The Iska silver-tin polymetallic project is a road accessible, royalty-free property, wholly controlled by the title holder, Empresa Minera Villegas SRL, and is located 48 km north of Tupiza city, in the Sud Chichas province of the department of Potosi in southern Bolivia. Eloro has an option to earn a 100-per-cent interest in Iska Iska.

Iska Iska is a major silver-tin polymetallic porphyry-epithermal complex associated with a Miocene possibly collapsed/resurgent caldera, emplaced on Ordovician-age rocks with major breccia pipes, dacitic domes and hydrothermal breccias. The caldera is 1.6 km by 1.8 km in dimension with a vertical extent of at least one km. Mineralization age is similar to Cerro Rico de Potosi and other major deposits such as San Vicente, Chorolque, Tasna and Tatasi, located in the same geological trend.

Eloro began underground diamond drilling from the Huayra Kasa underground workings at Iska Iska on Sept. 13, 2020. On Nov. 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. On Nov. 24, 2020, Eloro announced the discovery of the SBBP approximately 150 m southwest of the Huayra Kasa underground workings.

Subsequently, on Jan. 26, 2021, Eloro announced significant results from the first drilling at the SBBP including the discovery hole DHK-15, which returned 129.60 g/t AgEq over 257.5m (29.53 g/t Ag, 0.078 g/t Au, 1.45 per cent Zn, 0.59 per cent Pb, 0.080 per cent Cu, 0.056 per cent Sn, 0.0022 per cent In and 0.0064 per cent bismuth from zero m to 257.5 m). Subsequent drilling has confirmed significant values of Ag-Sn polymetallic mineralization in the SBBP and the adjacent CBP. A substantive mineralized envelope which is open along strike and down dip extend around both major breccia pipes. Continuous channel sampling of the Santa Barbara adit located to the east of SBBP returned 442 g/t AgEq (164.96 g/t Ag, 0.46 per cent Sn, 3.46 per cent Pb and 0.14 per cent Cu) over 166 m including 1,092 g/t AgEq (446 g/t Ag, 9.03 per cent Pb and 1.16 per cent Sn) over 56.19 m. The west end of the adit intersects the end of the SBBP.

Since the initial discovery hole, Eloro has released a number of significant drill results in the SBBP and the surrounding mineralized envelope which along with geophysical data have defined an extensive target zone. In its Sept. 20, 2022, press release, the company reported that new downhole geophysical data have significantly extended the strike length of the high-grade feeder zone at Santa Barbara a further 250 m along strike to the south-southeast from existing drilling. The 3-D inverse magnetic model which correlates very strongly with the conductive zone suggested that the high-grade feeder zone may extend across the entire caldera for as much as a further one km along strike for a total potential strike length of at least two km. As reported, the definition drill program was modified to sectionally drill this potential extension with the intention of defining a major open-pittable deposit in the valley of the caldera. As a result, the estimated completion date for the maiden National Instrument 43-101 mineral resource was pushed back to the end of Q1 2023.

The company completed 84,495 m of drilling in 122 holes from the definition drill program in the Santa Barbara target area, as previously announced on Nov. 27, 2022.

On Nov. 22, 2022, Eloro announced the pending acquisition of the Mina Casiterita and Mina Hoyada properties covering 14.75 square km southwest and west of Iska Iska. These properties connect with the TUP-3 and TUP-6 claims previously staked by Eloro. Eloro has also staked additional land in the area. Subject to the finalization of the granting of the mining rights process and the completion of the acquisition transaction for the Mina Casiterita and Mina Hoyada properties, the total land package in the Iska Iska area to be controlled by Eloro will total 1,935 quadrants covering 483.75 square km.

Artisanal mining in the 1960s identified high-grade tin (Sn) veins on the Mina Casiterita property that are hosted in an intrusive dacite. Production from 1962 to 1964 is reported by the Departamento Nacional de Geologia in Bolivia to be 69.85 tonnes grading 50.60 per cent Sn.

Recently completed magnetic surveys by Eloro have outlined an extensive, near-surface, magnetic intrusive body on the Mina Casiterita property immediately southwest of Iska Iska. This intrusive hosts the previously mined high-grade tin veins and is very likely the continuation of the porphyry tin intrusion projected to be below the epithermal Ag-Sn-Zn-Pb mineralization at Iska Iska. Initial reconnaissance drilling at Casiterita return 0.17 per cent Sn over 52.75 m in the vicinity of these old artisanal workings.

On July 26, 2023, Eloro released results of substantial metallurgical work on samples from the polymetallic and tin domains. Preliminary tests at TOMRA in Germany indicate the mineralization at Iska Iska is amenable to ore sorting with removal of at least 40 per cent of the waste in the polymetallic domain and up to 80 per cent in the tin domain which would substantially increase concentrator feed grades as well as reduce future operating costs and significantly lower the cut-off grades (COG) for the pending mineral resource estimate (MRE).

Positive ore sorting results were obtained from composite samples of both the tin (Sn) and polymetallic (Ag-Zn-Pb) mineralization domains in the Santa Barbara deposit, indicating its wide applicability throughout the entire deposit.

Further metallurgical studies conducted by Wardell Armstrong International on a composite sample of the tin mineralization have improved tin concentrator stage recovery to 50 per cent. This recovery is unoptimized and has been achieved using a mixture of multigravity and tin flotation techniques which are specifically designed to recover the finer-grained cassiterite.

The concentrator could produce an approximately 5 per cent Sn concentrate grade amenable to the tin fuming process that ultimately could produce a 60 to 70 per cent Sn concentrate for smelting.

The level of metallurgical and pyrometallurgical work that has been conducted is exceptionally high for an inaugural MRE but is justifiable due to the significance of this large potentially open-pittable tin and polymetallic resource. The additional metallurgical/mineralogical knowledge will enable Eloro to rapidly move toward a preliminary economic assessment (PEA).

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 100-per-cent 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. A recent NI 43-101 technical report on Iska Iska, which was completed by Micon International, 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-per-cent interest in the La Victoria gold/silver project, located in the north-central mineral belt of Peru approximately 50 km south of Barrick's Lagunas Norte gold mine and Pan American Silver's La Arena gold mine.

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