Mr. Tom Larsen reports

ELORO ANNOUNCES RESTART OF DEFINITION DIAMOND DRILLING ON THE ISKA ISKA SILVER-TIN POLYMETALLIC PROJECT, POTOSI DEPARTMENT, SOUTHWESTERN BOLIVIA

Eloro Resources Ltd. has provided an update on Eloro's Iska Iska silver-tin polymetallic project in Potosi department, southern Bolivia.

Tom Larsen, chief executive officer of Eloro, commented: "Our geological team has carried out a detailed analysis of all the drilling information, including updated modelling, to develop a very targeted diamond drill program that will start up in late September, 2024. The initial focus will be proximal to the Santa Barbara adit zone to help define the potential starter pit area and then move to the west to upgrade and expand the polymetallic and Ag-Sn mineralization. This new drilling would aim to generate expanded mineral resources in the Santa Barbara starter pit area and provide a mine life of 10 to 15 years at a preliminary optimized production rate of 35,000 tonnes per day, to be evaluated in the PEA."

"I am excited to report that a ramping development phase is planned within the Santa Barbara potential starter pit area once initial infill drilling has confirmed the ramp location from the independent engineering study," added Mr. Larsen. "This ramp would provide Eloro with the added benefit of bulk sampling assay results and potentially permit Eloro to start a small-scale operation and a preconcentration plant that would aim to demonstrate the economic, environmental, social benefit and sustainable validity of the Iska Iska project. For these expected planned projects, permitted mining licences are in good standing to move forward with these initiatives."

The company is pleased to announce the appointment of Dr. Osvaldo Arce to the role of executive vice-president, Latin American operations, as he continues in his role as general manager of Eloro's Bolivian subsidiary, Minera Tupiza SRL, together with the appointment of Chris Holden to senior vice-president, corporate development.

A current inhouse ramping study for driving a ramp into the core of the Santa Barbara starter pit area is being carried out by geological and mining consultants Julio Zavaleta and Max Penafiel, respectively, who have carried out similar projects for major mining companies elsewhere in Bolivia over the last 25 years.

Planned definition diamond drilling program

As highlighted in the Eloro press release of July 30, 2024, updated modelling of the potential starter pit area at Santa Barbara emphasized the importance of completing additional definition drilling to better define the grade and extent of the mineral resource. Areas with higher-grade resource typically have much better drilling density whereas holes outside the core area are too widely spaced to give an accurate estimate of grade. This increased drilling density is particularly important for defining the extent of the high-grade silver-bearing and high-grade tin-bearing structures which have a major influence on resource grade and overall project economics.

An initial phase program of 5,700 metres (m) in 13 holes of diamond drilling in the Santa Barbara potential starter pit area is planned as follows:

• 1,800 m in four holes to better define the vertical and lateral extent of high-grade Ag mineralization;
• 3,900 m in nine holes to fill-in and expand the higher-grade Ag and Sn mineralization to the west which will be an important part of the potential production as the starter pit area expands.

This will be followed by:

• 1,400 m in two larger diameter PQ holes for further metallurgical testing in Sn mineralization to the west.

Upon completing the initial drilling program, a second phase 7,000-metre diamond drilling program in the zinc polymetallic, silver and tin domains is planned. The overall data will be incorporated into an updated mineral resource estimate (MRE), which will be reported and incorporated into the PEA.

Potential ramp and preconcentration plant program

As previously reported (see Eloro press release dated Jan. 23, 2024), bulk metallurgical tests returned substantially higher grades than the original twinned diamond drill holes -- 91 grams per tonne (g/t) silver in the bulk sample versus 31 g/t Ag in the original holes that were twinned, suggesting that grades, especially for silver, may be underestimated, in some cases significantly. These results highlight the need for further bulk sampling to better confirm overall grade in the deposit.

Eloro has carried out a preliminary independent study on the potential for driving a ramp into the core of the Santa Barbara starter pit area. This ramp, which would be built to international standards by experienced Bolivian mining contractors, would be three m wide by 3.2 m high and the first phase will consist of 1,000 m of ramping at a gradient of 12 per cent to a vertical depth of approximately 300 m but could extend deeper if warranted. The proposed project would access both the high-grade Ag and higher-grade Sn zones providing the opportunity to assess the continuity and grade of mineralization.

The company is currently studying the commercial viability of installing a small preconcentration plant and the equipment selection will take into account the metallurgical characteristics of the zinc polymetallic oxide and sulphide domains that have already been metallurgically tested. The technologies currently being considered are Tomra XRT and/or Gekko Jigs. Gekko Jigs are already in operation at Minsur in Peru treating tin ore and Pirquitas in Argentina treating silver ore.

Update on preliminary economic assessment (PEA)

The Eloro press release dated July 30, 2024, provided an update on the PEA study in progress and recent work has focused on assessing the potential of adding tin to the production plan.

The addition of a tin processing facility is currently seen as a later stage processing option so that the capital cost expenditure on the Ag-Zn-Pb equipment can be reutilized for the subsequent processing of the tin-silver sulphide domain. Alternative processing options will be considered provided the size and quantity of tin discovered justifies a stand-alone operation.

The proposed 1,400-metre PQ drill holes in the tin-silver sulphide deposit are designed specifically to extract bulk samples for metallurgical testing at Wardell Armstrong International in Cornwall and Tomra GmbH in Wedel, Germany, and Gekko in Australia to confirm that this ore is amenable to preconcentration and provide a conceptual flowsheet for this ore type that can be used in the PEA study.

Qualified person (QP)

Engineering work for the PEA is being managed by Mike Hallewell, Eloro's senior vice-president, engineering projects/metallurgy, and a qualified person as defined by National Instrument 43-101. Mr. Hallewell has reviewed and approved the technical engineering content of this news release.

Dr. Bill Pearson, PGeo, Eloro's executive vice-president, exploration, and a QP as defined by National Instrument 43-101, has reviewed and approved the technical geological content of this news release. Dr. Pearson who has more than 50 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, executive VP Latin American operations and general manager of Eloro's Bolivian subsidiary, Minera Tupiza SRL, and a QP in the context of NI 43-101, who supervised all field work carried out at Iska Iska.

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 project, which can be classified as a polymetallic epithermal-porphyry complex, a significant mineral deposit type in the Potosi department, in southern Bolivia.

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