Mr. Tom Larsen reports

ELORO RESOURCES INTERSECTS 279.22 G AG/T, 0.47% PB AND 0.43% SN (339.82G AG EQ/T) OVER 62.84M IN DEFINITION DRILLING AT THE ISKA ISKA PROJECT, POTOSI DEPARTMENT, SOUTHWESTERN BOLIVIA

Eloro Resources Ltd. has released the first assay results from five of the drill holes in its 11-hole, 5,267.7-metre definition drill program on the Iska Iska silver-tin polymetallic project in the Potosi department of southwestern Bolivia.

Tom Larsen, chief executive officer of Eloro, commented: "These latest drill hole results are very encouraging. They demonstrate substantive higher-grade intervals, especially for silver, in the potential starter pit mineral resource area that may now be potentially upgraded and expanded."

Mr. Larsen continued: "Significant tin is present in several holes, with grades up to 0.5 per cent, highlighting the chances to expand and increase the grade of the tin resource, which is a high-priority exploration target in 2024. As we expected, the higher-grade silver and tin intercepts from this definition drill program are demonstrating selective higher-grade metal zonation within the starter pit area and the tin (Sn-Ag-Pb [tin-silver-lead]) domain. We expect to release results from the six remaining definition drill holes in the first part of January, 2024, concluding our first-phase infill definition drilling program aimed to enhance grade and expand tonnage in the Santa Barbara starter pit area."

The definition diamond drill program focused on upgrading and expanding the higher-grade polymetallic (Ag-Zn-Pb (silver-zinc-lead)) domain type inferred mineral resource, which, as previously reported (see Eloro press release dated Oct. 17, 2023), contains an inferred mineral resource of 132 million tonnes (Mt) at 24.3 grams per tonne (g/t) Ag, 1.11 per cent Zn and 0.5 per cent Pb (72.06 g/t silver equivalent (AgEq)) at an NSR (net smelter return) cut-off of $25 (U.S.)/tonne. The net NSR value of this higher-grade resource is $34.40 (U.S.)/tonne, which is 3.75 times the estimated operating cost of $9.20 (U.S.)/tonne. Several of these holes also tested the adjacent tin (Sn-Ag-Pb) domain, where high values of silver have previously also been obtained in addition to tin.

Dr. Bill Pearson, PGeo, executive vice-president of exploration, said: "The bulk of mineralization at Iska Iska, especially the high-grade Ag zones, occur within veins, vein breccias and veinlets that overall have a general west-northwest trend (300 degrees). Channel sampling of a typical high-grade structure in the Santa Barbara adit (see Eloro press release dated April 21, 2021) returned 165 g/t Ag, 3.46 per cent Pb and 0.46 per cent Sn (310.25 g/t AgEq) over 166 m, which included a very-high-grade section of 446 g/t Ag, 9.03 per cent Pb and 1.16 per cent Sn (817.38 g/t AgEq) over 56.19 m. This gives an excellent indication of the potential strike length of these high-grade Ag structures, as well as the potential for bonanza-type grades in them. Closer-spaced drilling, as expected, provides a better definition of these important mineralized structures, especially those with higher-grade silver, which has the potential to increase the overall resource grade as well as expand resource tonnage."

Dr. Pearson continued: "Work is continuing on the 'ore-sorting' tests, with metallurgical work on the concentrate samples produced at TOMRA in Germany being completed at Wardell Armstrong in Cornwall. In addition, our geophysicists are processing new IP [induced polarization] data which will provide important information on potential extensions of the remarkable Iska Iska mineralizing system."

The table entitled "Diamond drill results as of Dec. 18, 2023, Santa Barbara deposit, Iska Iska," lists significant results for the five drill holes reported. Silver equivalent has been calculated using three-year average metal prices and preliminary metallurgical recoveries (see the note below the table entitled "Diamond drill results as of Dec. 18, 2023, Santa Barbara deposit, Iska Iska" for more information).

Definition drill program

The definition drill program has been designed to fill in major gaps in the block model, as well as upgrade and expand the higher-grade zone both along and across strike in the general area of the potential starter pit. As noted by Micon International Ltd., authors of the National Instrument 43-101 (NI 43-101) technical report detailing the initial Iska Iska mineral resource estimate (MRE) (see Eloro's press release dated Oct. 17, 2023), the highest-grade areas are also the best drilled. As drill density in the deposit is improved, it is expected that grade will increase due to better sample density. Initial results reported herein confirm that this is likely the case.

Significant results in hole DSB-61 are as follows:

• 279.22 g/t Ag, 0.47 per cent Pb and 0.43 per cent Sn (339.82 g/t AgEq) over 62.84 metres from 87.44 m to 150.28 m;
• 37.15 g/t Ag, 0.16 per cent Zn, 0.78 per cent Pb and 0.52 per cent Sn (152.20 g/t AgEq) over 37.57 m from 171.27 m to 208.84 m;
• 33.83 g/t Ag, 1.53 per cent Zn, 0.93 per cent Pb and 0.14 per cent Sn (130.88 g/t AgEq) over 178.99 m from 229.78 m to 408.77 m, including:
  • 17.03 g/t Ag, 4.13 per cent Zn, 1.30 per cent Pb and 0.15 per cent Sn (217.71 g/t AgEq) over 19.48 m from 286.67 m to 306.15 m;
  • 120.37 g/t Ag, 2.13 per cent Zn, 1.57 per cent Pb and 0.19 per cent Sn (252.19 g/t AgEq) over 18.25 m from 364.92 m to 383.17 m;
  • 175.23 g/t Ag, 2.44 per cent Zn, 0.56 per cent Pb and 0.12 per cent Sn (275.45 g/t AgEq) over 9.11 m from 398.2 m to 407.31 m.
• 36.69 g/t Ag, 1 per cent Zn, 2.73 per cent Pb and 0.34 per cent Sn (193.19 g/t AgEq) over 13.46 m from 424.04 m to 437.5 m;
• 43.54 g/t Ag, 0.63 per cent Zn, 1.79 per cent Pb and 0.18 per cent Sn (135.24 g/t AgEq) over 9.07 m from 457.08 m to 466.15 m.

Hole DSB-62 intersected a very long mineralized intersection of 265.89 m from 130.59 m to 396.48 m grading 7.84 g/t Ag, 1.51 per cent Zn and 0.64 per cent Pb (85.39 g/t AgEq), including higher-grade sections:

• 25.65 g/t Ag, 2.24 per cent Zn and 1.77 per cent Pb (160.16 g/t AgEq) over 45.23 m from 183.57 m to 228.8 m; and
• 110.92 g/t Ag with minor Zn and Pb (107.98 g/t AgEq) over 21.25 m from 477.85 m to 499.1 m.

Holes DSB-59, DSB-58 and DSB-57 returned the following significant intersections:

• 51.19 g/t Ag, 0.75 per cent Zn and 0.44 per cent Pb (98.85 g/t AgEq) over 55.93 m from 28.81 m to 84.74 m (DSB-59), including:
  • 31.65 g/t Ag, 3.19 per cent Zn, 1.21 per cent Pb and 0.19 per cent Sn (203.15 g/t AgEq) over 10.55 m from 30.31 m to 40.86 m;
  • 192.92 g/t Ag with minor Zn and Pb (178.76 g/t AgEq) over 7.46 m from 77.28 m to 84.74 m.
• 34.96 g/t Ag, 0.69 per cent Zn, 0.70 per cent Pb and 1.64 per cent Sn (71.98 g/t AgEq) over 15 m from 184.86 m to 199.86 m (DSB-58);
• 15.74 g/t Ag, 1.39 per cent Zn and 0.54 per cent Pb (77.01 g/t AgEq) over 66.2 m from 237.39 m to 303.59 m (DSB-58), including:
  • 33.68 g/t Ag, 1.32 per cent Zn and 1.18 per cent Pb (105.15 g/t AgEq) over 7.5 m from 237.39 m to 244.89 m;
  • 19.27 g/t Ag, 2.13 per cent Zn and 0.65 per cent Pb (109.37 g/t AgEq) over 22.48 m from 281.11 m to 303.59 m.
• 44.91 g/t Ag and 0.11 per cent Sn (65.25 g/t AgEq) over 25.97 m from 13.91 m to 39.88 m (DSM-57);
• 43.68 g/t Ag, 0.42 per cent Zn and 0.38 per cent Pb (71.70 g/t AgEq) over 74.53 m from 63.23 m to 137.76 m (DSM-57);
• 132.33 g/t Ag, 0.23 per cent Zn and 0.25 per cent Pb (136.70 g/t AgEq) over 15.14 m from 87.76 m to 102.9 m (DSM-57);
• 55.24 g/t Ag, 0.96 per cent Zn, 0.83 per cent Pb and 0.26 per cent Sn (149.47 g/t AgEq) over 10.58 m from 235.89 m to 246.47 m (DSM-57);
• 41.83 g/t Ag, 0.28 per cent Zn, 0.23 per cent Pb and 0.10 per cent Sn (69.70 g/t AgEq) over 28.86 m from 257.06 m to 285.92 m (DSM-57);
• 43.45 g/t Ag, 0.24 per cent Zn, 0.23 per cent Pb and 0.12 per cent Sn (74.56 g/t AgEq) over 10.56 m from 361.44 m to 372 m (DSM-57).

Qualified person (QP)

The inaugural MRE for Iska Iska outlined in the NI 43-101 technical report (see Eloro press release dated Oct. 17, 2023) has been prepared by Micon International. Independent QPs for the technical report are Charley Murahwi, PGeo, FAusIMM, Richard Gowans, PEng, Ing, Alan J. San Martin, MAusIMM (CP), and Abdul Aziz, Drame, PEng, all of whom are independent QPs as defined by NI 43-101. Mr. Murahwi completed site visits in January, 2020, and November, 2022.

Dr. Pearson, PGeo, vice-president of exploration for Eloro and a QP as defined by NI 43-101, has reviewed and approved the technical content of this news release. Dr. Pearson, who has more than 48 years of worldwide mining exploration, development and production experience, including extensive work in South America, manages the overall technical program, working closely with Dr. Osvaldo Arce, PGeo, general manager of Eloro's Bolivian subsidiary, Minera Tupiza SRL, and a qualified person in the context of NI 43-101, who has supervised all fieldwork carried out at Iska Iska.

Eloro utilized both ALS and AHK laboratories for drill core analyses, both of whom are major international accredited laboratories. Drill samples sent to ALS were 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. Eloro employs an industry-standard quality assurance/quality control (QA/QC) 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 were prepared in a preparation facility installed and managed by AHK in Tupiza, with pulps sent to the AHK laboratory in Lima, Peru. Check samples between ALS and AHK are regularly done as a QA/QC check. AHK is followed the same analytical protocols used as with ALS and with the same QA/QC protocols.

About Iska Iska

the 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 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 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 from surface to 257.5 m. Subsequent drilling has confirmed significant values of Ag-Sn polymetallic mineralization in the SBBP and the adjacent Central breccia pipe (CBP). 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 DHK-15, which returned 29.53 g/t Ag, 0.078 g/t gold (Au), 1.45 per cent Zn, 0.59 per cent Pb, 0.080 per cent copper (Cu) and 0.056 per cent Sn over 257.5 m, Eloro has released a number of significant drill results in the SBBP and the surrounding mineralized envelope, which, along with geophysical data, has defined an extensive target zone. On Oct. 17, 2023, Eloro filed the NI 43-101 technical report outlining the initial inferred MRE for Iska Iska, prepared by Micon International. The MRE was reported in two domains, the polymetallic (Ag-Zn-Pb) domain, which is primarily in the east and south of the Santa Barbara deposit, and the tin (Sn-Ag-Pb) domain, which is primarily in the west and north. The polymetallic domain is estimated to contain 560 million tonnes (Mt) at 13.8 g/t Ag, 0.73 per cent Zn and 0.28 per cent Pb, at an NSR cut-off of $9.20 (U.S.) for potential open-pit and an NSR cut-off of $34.40 (U.S.) for potential underground. The majority of the mineral resource is contained in the constraining pit which has a stripping ratio of 1:1.

The polymetallic domain contains a higher-grade mineral resource at a NSR cut-off of $25 (U.S.)/tonne of 132 million tonnes at 1.11 per cent Zn, 0.50 per cent Pb and 24.3 g/t Ag, which has a net NSR value of $34.40 (U.S.)/tonne, which is 3.75 times the estimated operating cost of $9.20 (U.S.)/tonne. The tin domain, which is adjacent to the polymetallic domain and does not overlap, is estimated to contain a mineral resource of 110 Mt at 0.12 per cent Sn, 14.2 g/t Ag and 0.14 per cent Pb, but is very underdrilled.

The company has completed a 5,267.7 m definition drill program to expand the higher-grade mineral resource in the polymetallic domain and has commenced a preliminary economic evaluation (PEA) led by Lycopodium.

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 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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