Start of Underground Preparation Forr Diamond Drilling Program At Iska Iska Silver-Polymetallic Property Area

TORONTO - Eloro Resources Ltd. reported that its Bolivian subsidiary Minera Tupiza SRL has contracted Empresa Minera Villegas SRL to start underground drill bay preparations required for the 3,500m underground diamond drilling program planned on its Iska Iska Silver-Polymetallic Project in the Potosi Department, southern Bolivia. The Company and contractor have implemented safeguards to protect personnel from COVID-19. It is expected that drilling can commence once Bolivia lifts lockdown restrictions. Mineral Tupiza SRL has an option to acquire a 99% interest in Iska Iska.

Preparations will include rehabilitation of 400 meters of underground workings and preparation of drill bays in the Huayra Kasa mine and in the Mina 2 underground workings located 2 kilometers south of Huayra Kasa. All workings will be systematically geologically mapped and channel sampled.

Tom Larsen, President & CEO of Eloro commented: “The planned drill program will follow the outline presented in the National Instrument (NI) 43-101 Technical Report by Micon International Limited (see press release April 29, 2020). This program will be the first drilling to ever be carried out on the property and is designed to test the full extent of the mineralized system in the vicinity of the mine workings. Iska Iska is in a prolific district of Bolivia and has excellent potential to host a significant silver-polymetallic mineral deposit.”

The study concluded that synchrotron mineral cluster analysis identified four mineralogical domains that cover the entire sampling area suggesting they are related and represent a single, large mineralizing system. Furthermore, the mineralogy of the domains is consistent with minerals identified in hand specimen and are likely related to a telescoped porphyry/epithermal style of mineralization. Domain 1 is the most pervasive being identified in 31 samples while Domains 2, 3 and 4 are more localized.

Following the completion of the NI 43-101 Technical Report dated April 27, 2020, the next phase in the development of the Iska Iska polymetallic project is geared towards the preparation of a maiden mineral resource estimate. To ensure that the highest level of technical and commercial standards is upheld, Eloro has retained Micon International Limited as Independent Engineer (“IE”) to review, on an on-going basis, all its exploration activities and data collection methods. The IE will also advise on how best to proceed with preliminary metallurgical test-work of which the results will be critical in the definition of the mineral resources.