Mr. Tom Larsen reports

ELORO RESOURCES INTERSECTS 57.62G AG/T, 1.26% ZN, 0.94% PB AND 0.12% SN (139.94G AG EQ/T) OVER 136.11M IN DEFINITION DRILLING AT THE ISKA ISKA PROJECT, POTOSI DEPARTMENT, SOUTHWESTERN BOLIVIA

Eloro Resources Ltd. has released the final assay results for the last six diamond 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: "I am very pleased with the continuation of significantly higher-grade silver equivalent results from the latest definition drilling program, compared to the initial mineral resource estimate (MRE) starter pit area model as previously reported (see Eloro press release dated Oct. 17, 2023). These new results highlight the potential to upgrade and expand the higher-grade resource in the Santa Barbara starter pit area."

Mr. Larsen continued: "Tin is proving to be an important metal contributor to these upgraded silver equivalent results. This can enhance NSR values and increase tonnage in future MRE studies. As an example, hole DSB-63 located in the northeast section of the Santa Barbara starter pit area, recognized more as a polymetallic (silver-zinc-lead) domain, returned 0.51 per cent tin over a 23.02-metre drill intercept with a total silver equivalent value of 205.57 g/t [grams per tonne].

"There is more and more evidence of high-temperature sulphidation centres being identified as feeders within the open-pit area resulting in upgraded tin and silver values. Higher-density definition drilling in the initial Santa Barbara open-pit envelope is consistently proving up higher grades as drill density is improved."

Dr. Osvaldo Arce, PGeo, general manager of Eloro's Bolivian subsidiary Minera Tupiza SRL and an expert on Bolivian mineral deposits, said, "The definition drilling is confirming a strong high-grade Ag-Sn association, which is common in the southern Bolivian tin belt, including in large systems at Cerro Rico de Potosi, Animas-Siete Suyos-Chocaya and Tatasi deposits that occur along northwest-southeast-striking structural corridors, the same geological environment that is present at Iska Iska."

Dr. Arce continued: "Recent drilling results have outlined upgraded tin and silver values from near surface down to at least 500 m in vertical extent, principally in the sulphide zone. Geophysical information and deep drilling indicate that tin-silver mineralization may extend to depths of one kilometre or more. Tin mineralization in these zones has been remobilized and redeposited throughout the deposit by brecciation in favourable rock types, especially medium-grained porphyritic dacite and intrusion breccia which are the most widespread lithologies at Iska Iska. Moreover, tin-polymetallic mineralization can be locally extensive/continuous as occurs in hole DSB-67, where 477 m of the 500 m drilled averages about 0.1 per cent Sn, with almost no waste material. This high-grade continuous polymetallic mineralization forms commonly subhorizontal vein-parallel banding along north-northwest-trending shear zones, indicating multiple episodes of fracture opening and mineral precipitation."

Definition drill program

The definition diamond drill program focused on upgrading and expanding the higher-grade polymetallic (Ag-Zn-Pb) 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 at 24.3 g/t Ag, 1.11 per cent Zn and 0.50 per cent Pb (72.06 g/t silver equivalent) at a net smelter return cut-off of $25 (U.S.)/t. The net NSR value of this higher-grade resource is $34.40 (U.S.)/t which is 3.75 times the estimated operating cost of $9.20 (U.S.)/t. Several of these holes also tested the adjacent tin (Sn-Ag-Pb) domain where high values of silver (Ag) have previously also been obtained in addition to tin (Sn).

Drill hole locations were planned 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., author of the National Instrument 43-101 technical report detailing the initial Iska Iska MRE (see Eloro 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. Results previously reported (see Eloro press release dated Dec. 18, 2023) and results reported herein confirm that this is likely the case.

These new data highlight the potential for expanding the mineral resource particularly outlining a significant higher-grade Sn resource to include for consideration in the PEA. As noted in the Eloro press release of Nov. 1, 2023, the PEA was planned to focus solely on the higher-grade polymetallic (Ag-Zn-Pb) with Sn being a major exploration target. The results of the definition drill program highlight the potential to significantly expand the higher-grade Sn resource to the west of the current potential pit and to incorporate this new potential resource area into consideration for the PEA.

The following is a summary of significant diamond drill results from the six holes:

Hole DSB-66 intersected several long, well-mineralized intervals as follows:

• 57.62 g/t Ag, 1.26 per cent Zn, 0.94 per cent Pb and 0.12 per cent Sn (139.94 g/t AgEq) over 136.11 m from 137.75 m to 273.86 m, including:
  • 136.81 g/t Ag, 2 per cent Zn, 1.38 per cent Pb and 0.17 per cent Sn (255.19 g/t AgEq) over 34.77 m from 187.64 m to 222.41 m.
• 24.67 g/t Ag, 1.08 per cent Zn, 0.83 per cent Pb and 0.08 per cent Sn (94.46 g/t AgEq) over 86.39 m from 288.92 m to 375.31 m, including:
  • 69.37 g/t Ag, 0.41g/t Au, 1.88 per cent Zn, 3.68 per cent Pb and 0.32 per cent Sn (272.27 g/t AgEq) over 6.08 m from 307.15 m to 313.23 m;
  • 23.59 g/t Ag, 2.14 per cent Zn, 1.57 per cent Pb and 0.15 per cent Sn (159.64 g/t AgEq) over 6.15 m from 328.23 m to 334.38 m;
  • 99.40 g/t Ag, 1.60 per cent Zn, 1.06 per cent Pb and 0.10 per cent Sn (187.52 g/t AgEq) over 12.24 m from 360.02 m to 372.26 m.
• 7.46 g/t Ag, 2.51 per cent Zn, 1.02 per cent Pb and 0.06 per cent Sn (129.90 g/t AgEq) over 74.85 m from 415.85 m to 490.70 m;
  • 10.80 g/t Ag, 0.12 g/t Au, 4.96 per cent Zn, 1.49 per cent Pb and 0.06 per cent Sn (229.62 g/t AgEq) over 16.86 m from 430.99 m to 447.85 m;
  • 13.86 g/t Ag, 4.20 per cent Zn, 2.35 per cent Pb and 0.34 per cent Sn (277.75 g/t AgEq) over 7.76 m from 457.31 m to 465.07 m.

Hole DSB-65 collared 100 m west of hole DSB-66 intersected the highest-grade silver sample intersected thus far at Iska Iska in an 80-plus m wide well mineralized zone as follows:

• 118.86 g/t Ag, 0.35 per cent Zn, 0.35 per cent Pb and 0.15 per cent Sn (152.29 g/t AgEq) over 81.28 m from 353.49 m to 434.77 m, including:
  • 5,080 g/t Ag, 0.12 g/t Au, 0.26 per cent Zn, 1.34 per cent Pb, 1.53 per cent Cu and 1.27 per cent Sn (4,746.46 g/t AgEq) over 1.46 m from 362.53 m to 363.99 m.
• Cutting of this very high Ag sample to 1,000 g/t Ag based on a statistical probability plot yields a still high average for the 81.28 m interval of 45.58 g/t Ag with an overall grade of 87.80 g/t AgEq;
• This very high-grade sample highlights the potential for Iska Iska to host extraordinary grades within the overall extensive mineralized system.

Hole DSB-67 collared 200 m south-southwest of DSB-66 intersected a wide zone of mineralization grading 8.17 g/t Ag, 1.40 per cent Zn, 0.48 per cent Pb and 0.06 per cent Sn (79.08 g/t AgEq) over 236.13 m from 240.04 m to 476.17 m, including higher-grade zones of:

• 2.17 g/t Ag, 0.16 g/t Au, 2.65 per cent Zn, 0.52 per cent Pb and 0.06 per cent Sn (118.18 g/t AgEq) over 9.03 m from 249.09 m to 258.12 m;
• 28.10 g/t Ag, 4.25 per cent Zn, 1.67 per cent Pb and 0.17 per cent Sn (245.05 g/t AgEq) over 19.45 m from 434.06 m to 453.51 m.

Hole DSB-60 intersected a 158.58 m long zone of lower-grade mineralization with higher-grade zones as follows:

• 16 g/t Ag, 0.66 per cent Zn, 0.41 per cent Pb and 0.09 per cent Sn (63.23 g/t AgEq) over 158.58 m from 15.33 m to 173.91 m, including:
  • 23.31 g/t Ag, 1.18 per cent Zn, 0.56 per cent Pb and 0.16 per cent Sn (105.56 g/t AgEq) over 6.16 m from 34.99 m to 41.15 m;
  • 115.54 g/t Ag, 1.45 per cent Zn and 1.67 per cent Pb (201.17 g/t AgEq) over 4.54 m from 139.32 m to 143.86 m.

Hole DSB-63, the easternmost hole in the definition drill program, intersected a significant Sn intersection of 23.37 g/t Ag, 1.77 per cent Zn, 1.22 per cent Pb and 0.51 per cent Sn (205.57 g/t AgEq) over 23.02 m from 446.10 m to 469.12 m. This area is in the polymetallic (Ag-Zn-Pb) domain where Sn values have typically been low. This suggests potential to extend the higher-grade Sn zone farther east.

Hole DSB-64, the southwestern most hole in the definition drill program, intersected 113.33g/t Ag and 0.12 g/t Au (110.97 h/t AgEq) over 22.91 m from 35.22 m to 58.13 m and 172.37 g/t Ag and 0.17 per cent Pb per cent (161.78 g/t AgEq) over 13.46 m from 135.83 m to 149.29 m. This hole was terminated at 240 m due to faulting short of its planned depth of 500 m.

Qualified person

The inaugural MRE for Iska Iska outlined in the National Instrument 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. Bill Pearson, PGeo, vice-president, exploration, 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. Arce, PGeo, general manager of Eloro's Bolivian subsidiary, Minera Tupiza, 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 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 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

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 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 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 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 Au, 1.45 per cent Zn, 0.59 per cent Pb, 0.080 per cent 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, have 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 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 an NSR cut-off of $25 (U.S.)/t 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.)/t which is 3.75 the estimated operating cost of $9.20 (U.S.)/t. 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 under drilled.

The company has completed a 5,267.7 m definition drill program to upgrade and 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 the La Victoria gold/silver project, located in the north-central mineral belt of Peru approximately 50 km south of the Lagunas Norte gold mine and the La Arena gold mine.

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