Mr. Tom Larsen reports

BULK TONNAGE METALLURGICAL TESTS RETURN SIGNIFICANTLY HIGHER SILVER HEAD GRADE OF 91 G AG/T COMPARED WITH THE 31 G AG/T AVERAGE GRADE FROM THE ORIGINAL TWINNED HOLES IN THE POLYMETALLIC DOMAIN AT ISKA ISKA, POTOSI DEPARTMENT, SOUTHWESTERN BOLIVIA

Eloro Resources Ltd. has released the final results of its bulk metallurgical test program on the Iska Iska silver-tin polymetallic project in the Potosi department of southwestern Bolivia.

Tom Larsen, chief executive officer of Eloro, commented: "The substantive difference in average silver grade in the bulk sample compared to the twinned holes strongly suggests that the silver grade in the two original twinned holes is likely significantly underreported due to the much smaller sample size. The recently released results from the definition drill program in the same general area within the initial MRE (see Eloro press releases dated Dec. 18, 2023, and Jan. 11, 2024) which yielded a number of higher-grade Ag intersections, also reflected in the improved silver grade equivalent values, further supports this underreported silver grade conclusion. These results highlight the fact that tighter-spaced drilling is required to have a more representative sampling of high-grade areas in the Iska Iska deposit to obtain a more accurate estimate of the likely true overall grade."

Mr. Larsen continued: "While the initial test program focused on the higher-grade part of the polymetallic domain, as this is where the bulk of the current mineral resource is, further test work is planned on the tin domain which is very underdrilled. The recent definition drilling reported significant Sn results and it is expected that additional definition drilling will expand and upgrade the tin resource so that it can potentially be included in the preliminary economic assessment (PEA) in progress."

Mike Hallewell, newly appointed as Eloro's senior vice-president, engineering projects/metallurgy, said: "The results indicate that 91.9 per cent of the silver and lead, and 76 per cent of the zinc can be preconcentrated into a relatively high-grade mill feed product constituting only 46.6 per cent of the original tonnage. The upgraded product results in higher flotation plant feed grades that will assist flotation stage recoveries. Both XRT ore sorting and DMS are well-known, low-risk separation technologies that provide Eloro with a great opportunity to significantly reduce operating and capital costs, reduce the mine cut-off grade, and enhance flotation-stage recoveries. The small differences in the minus-60-millimetre plus 25 mm and minus 25 mm plus 9.5 mm size fractions suggests that the top size could be increased above 60 mm. This would increase the percentage of run-of-mine (ROM) secondary crushed material that would report for preconcentration, which would enhance the overall benefit of preconcentration. The much higher Ag grades of 91 g/t Ag in the bulk metallurgical sample as compared to the twinned holes grade of 31 g/t Ag is very encouraging. This, along with the very high test recoveries for Ag, will have a major positive effect on potential project economics."

Metallurgical test program

As previously reported (see Eloro press release dated Nov. 1, 2023), three metallurgical drill holes totalling 940 metres were completed at the Iska Iska project. Two holes targeted the higher-grade polymetallic (Ag-Pb-Zn) domain while the third hole sampled the higher-grade tin polymetallic (Sn-Ag-Pb) domain. These metallurgical holes were drilled using PQ core (approximately 85 mm diamater) and were designed to twin previous HQ core drill holes which contained representative mineralization with values for the predominant higher-grade polymetallic (Ag-Zn-Pb) outlined herein. These metallurgical holes were targeted in the potential higher-grade starter pit area at Santa Barbara which contains an estimated mineral resource at a cut-off of net smelter return $25 (U.S.)/t 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) (see Eloro press release dated Oct. 17, 2023). The drill core selected for testing from these holes, which totalled 7.9 tonnes from 519 m of drill core, was shipped to Wardell Armstrong International (WAI) in Cornwall, England, for crushing to 60 mm and sizing into five different size fractions. The minus 60 mm plus 9.5 mm crushed and sized product was sent to Tomra GmbH based in Wedel, Germany, for separate cascade ore sorting tests on minus 60 mm plus 25 mm and minus 25 mm plus 9.5 mm.

The testing program reported in this release focused on the two PQ drill holes in the polymetallic domain which contain the majority of the tonnage and metal, namely MET-DSBU-10 and MET-DSB-30. The sample size tested was 6.3 tonnes from 418 m of the overall drill core sent to WAI. Further PQ diamond drilling is planned to obtain a bulk metallurgical sample from the sulphide tin domain, in addition to testing MET-DSB-32 which is in the oxide zone of the tin domain. The tin domain, although it contains an inferred mineral resource of 110 million tonnes grading 0.12 per cent Sn, 14.2 g/t Ag and 0.14 per cent Pb (38.02 g/t AgEq) (see Eloro press release of Oct. 17, 2023), is very underdrilled, especially to the west. The recent definition drilling reported significant Sn results and it is expected that additional definition drilling will expand and upgrade the Sn resource so that it can potentially be included in the PEA in progress.

The minus 9.5 mm plus 0.85 mm size fractions were subject to heavy liquid analysis performed on two separate size fractions (minus 9.5 mm plus five mm and minus five mm plus 0.85 mm) to identify the amenability of the finer-size fractions to dense media separation (DMS). The minus 0.85 mm material and the preconcentrated products from the ore sorting and heavy liquid tests will provide test work material for further PEA-level grinding and flotation metallurgical test work at WAI. This work builds on previous metallurgical test work using representative Iska Iska samples, as summarized in the company's National Instrument 43-101 technical report filed on SEDAR+ (see Eloro press release dated Oct. 17, 2023).

These metallurgical drill holes also provided an important comparative bulk sample test of mineralization grade relative to the weighted average grade of the twinned holes.

Summary highlights

1. Overall summary tests

The main focus of this test work phase has been on the predominant Ag-Pb-Zn sulphide domain which accounts for the majority of the mineral resource tonnage and metal values. The attached table shows the compelling results from this preliminary study on the full bulk PQ sample representative of the higher-grade polymetallic (Ag-Zn-Pb) sulphide domain. The results indicate that 91.9 per cent of the silver and lead, and 76 per cent of the zinc can be preconcentrated into a relatively high-grade mill feed product constituting only 46.6 per cent of the original tonnage. The upgraded product results in higher flotation plant feed grades that will assist flotation stage recoveries. While 91.1 per cent of the bulk sample (minus 60 mm plus 0.85 mm) reports to preconcentration, the remaining 8.9 per cent of the material bypasses preconcentration and can be blended directly with the preconcentrated feed ahead of grinding.

The attached table compares the individual back calculated head assays coming from the PEA preconcentration test work program with the assays from the one-half HQ twinned exploration holes. The overall weighted average Ag assay was significantly higher in the bulk PQ metallurgical hole sample at 91 g/t Ag as compared with the two original HQ geological twinned holes at 31 g/t Ag. This substantive difference in average Ag grade strongly suggests that the silver grade in the two original twinned holes is likely to be significantly underreported due to the much smaller sample size. The recently released results from the definition drill program in the same general area (see Eloro press releases dated Dec. 18, 2023, and Jan. 11, 2024), which yielded a number of higher-grade Ag intersections, further supports this conclusion. These results highlight the fact that tighter-spaced drilling is required to have a more representative sampling of high-grade areas in the Iska Iska deposit to obtain a more accurate estimate of the likely true overall grade.

2. Ag-Zn-Pb sulphide domain minus 60 mm plus 25 mm X-ray transmission ore sorter result

In test 4.4, metal recoveries of 77.8 per cent, 89.2 per cent and 91 per cent of zinc, lead and silver, respectively, were achieved into a preconcentrate comprising 38.1 per cent of the feed weight. The preconcentrate assayed 2.91 per cent Zn, 2.05 per cent Pb and 180 g/t Ag (308.37 g/t AgEq).

3. Ag-Pb-Zn sulphide domain minus 25 mm plus 9.5 mm XRT ore sorter result

In test 1.4, metal recoveries of 81.9 per cent, 89.5 per cent and 89.6 per cent for zinc, lead and silver, respectively, were achieved into a preconcentrate comprising 41.6 per cent of the sample feed weight. The preconcentrate assayed 2.96 per cent Zn, 1.72 per cent Pb and 183g/t Ag (305.13 g/t AgEq).

4. Ag-Zn-Pb sulphide domain minus 9.5 mm plus five mm DMS heavy liquid results

In 2.65 specific gravity (SG) sinks, metal recoveries of 85.3 per cent, 92.7 per cent and 92.3 per cent of zinc, lead and silver, respectively, were achieved into a pre-concentrate that consisted of 45.9 per cent of the feed weight. The 2.65 SG Sink product assayed 3.47 per cent Zn, 2.38 per cent Pb and 156 g/t Ag (314.61 g/t AgEq).

5. Ag-Zn-Pb Sulphide Domain -5.0 mm+0.85 mm DMS Heavy Liquid Results

In the 2.65 SG sinks, metal recoveries of 91.4 per cent, 95.5 per cent and 92.1 per cent of zinc, lead and silver, respectively, were achieved into a preconcentrate comprising 49.5 per cent of the feed weight. The 2.65 SG sink product assayed 3.68 per cent Zn, 2.37 per cent Pb and 196 g/t Ag (356.98 g/t AgEq).

Qualified person

The metallurgical test program was directed by Mike Hallewell, BSc, F.I.M.M.M., FSAIMM, FMES, CEng, senior vice-president, engineering projects/metallurgy, and a qualified person (QP) as defined by NI 43-101 in consultation with Richard Gowans, PEng, an independent QP as defined by NI 43-101. Previous metallurgical work completed on Iska Iska is summarized in the NI 43-101 technical report (see Eloro press release dated Oct. 17, 2023) prepared by Micon International Ltd. Independent QPs for the technical report are Charley Murahwi, PGeo, FAusIMM, Mr. 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.

Wardell Armstrong International, based in Cornwall, United Kingdom, an internationally respected minerals processing laboratory, carried out the crushing of the bulk sample for shipment to Tomra and completed metallurgical tests and assays on resulting products.

As part of the Tomra Group, Tomra Mining, headquartered in Wedel, Germany, is a leading provider of ore sorting technologies, particularly specializing in X-ray transmission (XRT) sorting. Among the latest advancements to enhance and improve finer particle separation, Tomra introduced a cutting-edge ejection module. This innovative module is specifically designed to increase separation accuracy and significantly reduce air consumption, thereby positively impacting operational expenditures (OPEX). Tomra's extensive global reach has a proven record in handling large-scale projects.

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 49 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. Dr. Arce supervised the on-site drilling and collection of the PQ core. Shipping to Wardell Armstrong in Cornwall for sample crushing was done through the facilities of Alfred H. Knight (AHK). Crushed material was shipped to Tomra in Germany for the cascade test on the ore sorter then the concentrates were shipped to WAI for final metallurgical testing and assaying.

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 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 gold, 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, 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 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.)/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 underdrilled.

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 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.

We seek Safe Harbor.