News Releases

Toronto, Canada, December 14, 2016 – Eloro Resources Ltd. (TSX-V: ELO; FSE: P2Q; “Eloro”) has completed the second phase of geological mapping and sampling in the San Markito-Victoria area (San Markito and San Felipe 2 concessions) in the northern part of the La Victoria property (Figure 1). This program, led by Dr. Osvaldo Arce and Luc Pigeon, M.Sc., P.Geo., the General Manager of Eloro’s Peruvian subsidiary covered an area of approximately 370 ha concentrated on the three-plus km of potential strike length of the silver-gold mineralized breccias at the San Markito zone. In the course of the mapping work, 130 rock samples were taken with most samples being continuous channels by gas-powered diamond saw or chip sampling. These samples were analyzed for gold (Au) and silver (Ag) by fire assay and 31 element ICP analysis to define geochemical trends. Significant results are shown in Table 1 below. Figure 2 (Ag) and Figure 3 (Au) are maps showing sample results along with distribution of alteration and mineralization, including previous reported sample results.

The best gold values from the Victoria zone were 8.91 g/t Au (and trace silver) over 0.5m; 2.40 g/t Au and 86.1 g/t g/t Ag over 0.50m and 0.81 g Au/t with 229 g/t Ag over 3.50m. Anomalous gold values can be traced for more than 1.0 kilometre along strike and appear to indicate a potential gold-rich target area east of San Markito. The best silver values were 994 g/t Ag with 0.35 g/t Au in a continuous diamond saw channel sample over 4.00m and 390 g/t Ag with 0.53 g/t Au over 1.53m and >1.0% Pb This further confirms previous sampling which returned values up to 2.27 g/t Au and up to 1814 g/t Ag with up to 16.82% Pb The silver anomaly in the San Markito area extends over 1.5 km in strike length. Au, Ag, Pb and arsenic (As) are positively correlated, including anomalous antimony (Sb).

Gold-silver mineralization on the La Victoria property is spatially and structurally associated with a series of dioritic to granodioritic intrusive rocks that intrude sandstone and shale of the Chicama and Chimu Formations. In the San Markito-Victoria area Ag-Au occurs at or near an intrusive contact within an extensive area of hydrothermal alteration approximately 4km long by up to 1km wide. Alteration is characterized by silicic, argillic and limonitic alteration, surrounded by a halo of propylitic alteration. This alteration is likely in the upper part of a major low sulphidation epithermal system. Mineralization is comprised of a wide variety of types including veins, dykes, veinlets, breccias, crackle breccias, boxworks and stockworks with multiple stages of mineralization evident. The best grade mineralization appears to be associated with NW-SE striking faults cutting this alteration zone.

Tom Larsen, President and CEO of Eloro commented: “We are continuing to expand our target areas and better understand the extensive mineralized system. The current study area is approximately 2km northwest of the Ccori Orcco area (Figure 1) which will be the target of a future geological mapping and sampling program. This area has a very similar geological signature to San Markito-Victoria and preliminary work indicates that the alteration and mineralization extends into this area which has the potential to become another major target area on the property. We will be carrying out additional IP surveys in the San Markito-Victoria area to better define drill targets. Diamond drilling at both San Markito and Rufina is expected to commence in the first part of 2017 once final permits are received.”

Dr. Bill Pearson, P.Geo. Chief Technical Advisor for Eloro added: “This work continues to confirm the presence of a major epithermal system with multiple stages of mineralization in the San Markito-Victoria area in the northern part of the La Victoria property. The intensity of alteration and the wide range of styles of mineralization is very encouraging. It should be noted that some of the surface samples were oxidized, in some cases intensely, such that the values may have been affected by leaching in the surface environment.

Table 1: Significant results, Phase II Sampling Program

Sample No.   Northing(m)   Easting(m)	 Elev(m) Width(m) Au(g/t) Ag(g/t)  Pb %
M002023	     9032798	    172553	  4108	    4.0      0.35  994.0  >1.00
M002137	     9082980	    173348	  4188	    0.5      8.91   tr	  >1.00
M002155	     9082890	    173276	  4198	    0.5      2.40   86.1   0.99
M002154	     9082924	    173256	  4185	    0.5      1.02   tr	   0.05
M002032	     9082741	    172559	  4078	    3.5      0.81  229.0  >1.00
M002077	     9082742	    172535	  4107	    1.0      0.80  298.0  >1.00
M002079	     9082820	    172546	  4090	    2.3      0.77   68.7   0.16
M002076	     9082738	    172574	  4103	    1.3      0.53  390.0  >1.00
M002156      9082890	    173276	  4198	    0.5      0.49   tr	   0.06
M002099	     9082434        172376	  3876	    2.0      0.40   tr	    tr

Acquisition of New Property in Rufina Area

Eloro has acquired an additional mining concession, Romina 3, covering approximately 600ha, that ties on to the western boundary of the Rufina Concession in the southwest corner of the La Victoria property (see inset map Figure 1).

At Rufina, gold mineralization occurs principally within quartz veins in shear zones within dioritic intrusive and sedimentary rocks. Work to date by Eloro has identified five vein shear sets of 20m to 70m in width in the western part of the mineralized zone. Vein sets are composed of iron oxide-quartz-arsenopyrite veins, in veinlet swarms, stockworks, and breccia zones. Three surface samples from the mineralized zone averaged 8.8 g/t gold and 23.8 g/t silver, while one 50cm chip sample taken from an artisanal adit returned 15.1 g/t gold, 136.5 g/t silver, with 1.61% lead and 3.75% zinc. In the northern part of Rufina at higher elevations, the mineralized rocks are oxidized and have argillic alteration suggesting potential for heap-leachable gold mineralization. The recently completed IP survey shows that the high resistance diorite (the main mineralized lithology present on the Rufina zone) is concentrated near the surface in this area and is underlain by conductive and chargeable sedimentary rocks; this target, known as Rufina North, will be tested in the planned drill program.

Eloro is an exploration and mine development company which recently acquired a 100% undivided interest in the La Victoria property, located in the prolific North-Central Mineral Belt of Peru. The La Victoria Property covers 45 square kilometres and is within 50 kilometres of several large low-cost producing gold mines, with three producers visible from the Property. Infrastructure in the area is good with access to road, water and electricity and is located at an altitude that ranges from 3,100 m to 4,200 m above sea level. Eloro also holds a portfolio of gold and base-metal properties in northern and western Quebec.

For further information please contact Thomas Larsen, President and C.E.O. or Jorge Estepa, Vice-President of Eloro Resources Ltd. at (416) 868-9168

Information in this news release may contain forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Corporation’s plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Corporation. There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Jim Steel MBA, P.Geo., a Qualified Person in the context of NI 43-101 has reviewed and approved the technical content of this news release.

For additional technical information on the La Victoria Project, the reader is referred to the NI 43-101 Technical Report on the La Victoria Au-Ag Property, Ancash, Peru filed under Eloro’s profile on SEDAR (www.sedar.com).

FIGURE 1 Location Map


FIGURE 2
San Markito & Victoria Zones Alteration & Mineralization - SILVER



FIGURE 3
San Markito & Victoria Zones Alteration & Mineralization - GOLD



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