Mr. Thomas Larsen reports

ELORO RESOURCES FILES NI 43-101 TECHNICAL REPORT FOR INITIAL MINERAL RESOURCE ESTIMATE FOR ISKA ISKA PROJECT, POTOSI DEPARTMENT, SOUTHWESTERN BOLIVIA

Eloro Resources Ltd. has filed the National Instrument 43-101 technical report in support of the initial mineral resource estimate for the Iska Iska silver-tin polymetallic project in the Potosi department of southwestern Bolivia. The MRE, as set out in the attached table, has been prepared by independent qualified persons with Micon International Ltd. as defined under NI 43-101.

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.

Initial mineral resource estimate

1. Definition -- net smelter return and metal equivalent

The Iska Iska deposit is polymetallic in nature, and, as such, the value of its mineralized material will result from the extraction and sale of a combination of metals which includes silver, lead, tin and zinc for the initial mineral resource. Pending further success in metallurgical testwork, Cu (copper), Au (gold) and In (indium) may be added to the economic equation.

Based on the CIM (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 estimated dollar value that each metal contributes toward the total value of each tonne is calculated and is expressed as one value referred to as the NSR value per tonne. The calculation of an NSR value per tonne considers estimated revenues, mining costs, general and administrative expenses, processing costs, metallurgical recoveries, smelter deductions, treatment charges, penalties, and transportation costs for all metals of potential economic interest. This NSR value per tonne can then be used to derive a cut-off value, where the NSR cut-off value per tonne is equal to the estimated total operating costs of mining, processing and recovering the metals per tonne of the resource.

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 assumptions 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 the Micon 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 better 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 net smelter return cut-off values per tonne which are as follows:

• Polymetallic (zinc-lead-silver) domain equals $9.20 (U.S.) per tonne for open-pit (OP) mining and $34 (U.S.) per tonne for underground (UG) mining;
• Tin (tin-silver-lead) domain equals $6 (U.S.) per tonne 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).

Note that the open-pit mineral resources are reported within a constrained pit shell (slope angle 45 degrees) at NSR cut-off values of $6 (U.S.) per tonne and $9.20 (U.S.) per tonne for the tin domain and polymetallic domain, respectively. The UG resource is a coherent mass (less a 20-metre-thick crown pillar) beneath the pit reported at an NSR cut-off of $34.40 (U.S.) per tonne. The open-pit and underground NSR cut-off grades consider estimated mining costs, G&A expenses, processing costs, metallurgical recoveries, smelter deductions, treatment charges, penalties and transportation costs for all metals of potential economic interest and, accordingly, are equal to estimated total operating costs.

The potential open pit defining the bulk of the mineral resource is 1.4 kilometres in diameter, extends to a maximum depth of 750 m below the Santa Barbara hill and has a stripping ratio of 1 to 1. Total in situ metal is estimated to be 298 million ounces Ag (silver), 4.09 million tonnes Zn (zinc), 1.74 million tonnes Pb (lead) and 130,000 tonnes Sn (tin).

Resource estimate is based on 139 diamond drill holes totalling 96,386 metres. All holes intersected significant reportable mineralization, and the deposit is open in all directions.

4. Higher-grade resources in polymetallic domain

There is a core higher-grade inferred mineral resource in the polymetallic domain at an NSR cut-off of $15 (U.S.) per tonne of 342 million tonnes grading 0.85 per cent Zn, 0.35 per cent Pb and 17 grams per tonne Ag for an NSR value of $25.22 (U.S.) per tonne, which is 2.74 times the total estimated operating cost of $9.20 (U.S.) per tonne.

This core mineral resource includes a higher-grade near-surface inferred mineral resource at an NSR cut-off of 25 (U.S.) per tonne of 132 million tonnes at 1.11 per cent Zn, 0.50 per cent Pb and 24.3 g/t Ag for an NSR value of $34.50 (U.S.) per tonne, which is 3.75 times the total estimated operating cost of $9.20 (U.S.) per tonne.

5. Use of silver equivalent calculation

Previous disclosure by Eloro of drill results had employed silver equivalent calculations using current metal prices to provide comparative results for polymetallic mineralization. Metallurgical recoveries were recently assessed and are available for the major elements in both polymetallic and tin domains. Going forward, Eloro will use these recoveries, as well as current metal prices, for determining any disclosure of silver equivalent calculations. The previous disclosure of silver equivalent estimates should no longer be relied upon.

6. Estimates of in situ metal value

Eloro withdraws the previously released estimates of in situ metal value for the Iska Iska mineral resource in the press release of Aug. 30, 2023, and in the webinar of Sept. 5, 2023. Eloro's corporate presentation has been updated to remove references to these estimates, and the link to the webinar has been removed from the corporate website.

Qualified person

The initial MRE for Iska Iska has been prepared by Micon. Independent qualified persons for the technical report are Charley Murahwi, PGeo, FAusIMM, Richard Gowans, PEng, ing, Alan J. San Martin, MAusIMM (CP), and Abdul Aziz, 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. Osvaldo Arce, PGeo, general manager of Eloro's Bolivian subsidiary, Minera Tupiza SRL, a qualified person in the context of NI 43-101, has reviewed and approved the technical content of this news release. Dr. Bill Pearson, PGeo, executive vice-president, exploration, Eloro, 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. Osvaldo Arce, PGeo. Dr. Quinton Hennigh, PGeo, senior technical adviser to Eloro and independent technical adviser Charley 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 Ltda 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

Iska 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 kilometres 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 kilometres by 1.8 kilometres in dimension with a vertical extent of at least one kilometre. 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 Santa Barbara breccia pipe (SBBP) approximately 150 metres 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 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 and 0.056 per cent Sn from 0.0 m to 257.5 m. Subsequent drilling has confirmed significant values of Ag-Sn polymetallic mineralization in the SBBP and the adjacent Central breccia pipe. A substantive mineralized envelope which is open along strike and downdip extends around both major breccia pipes. Continuous channel sampling of the Santa Barbara adit located to the east of SBBP returned 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 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.

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. 22, 2022, Eloro announced the pending acquisition of the Mina Casiterita and Mina Hoyada properties covering 14.75 square kilometres 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 right 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 kilometres.

Artisanal mining in the 1960s identified high-grade tin 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 returned 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.

Positive ore sorting results were obtained from composite samples of both the tin (Sn-Pb-Ag) and polymetallic (Zn-Pb-Ag) 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-tin concentrate grade amenable to the tin fuming process that ultimately could produce a 60- to 70-per-cent-tin concentrate for smelting.

The level of metallurgical and pyrometallurgical work that has been conducted is exceptionally high for an initial 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.

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, 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 La Victoria gold/silver project, located in the north-central mineral belt of Peru about 50 km south of Barrick's Lagunas Norte gold mine and Pan American Silver's La Arena gold mine.

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