Eloro Resources Provides Update on Status of Proposed Drilling on the Prospective San Markito Mineralized Zone at the La Victoria Gold/Silver Project, Ancash, Peru

May 27, 2019

TORONTO, May 27, 2019 (GLOBE NEWSWIRE) -- Eloro Resources Ltd. (TSX-V: ELO; FSE: P2Q) (“Eloro” or the “Corporation”) is pleased to provide an update on the ongoing process to bring the San Markito Zone into an exploration and discovery focus.

On May 19, 2019, a meeting was held with the residents of the community of Pallasca, Pallasca District, Ancash Department, Peru, where the San Markito target is located, at which representatives from Eloro and the Peruvian Ministry of Mines gave presentations about the economic benefits of mineral exploration and mining.  The Huandoval mayor also spoke passionately about the positive economic impact in his district during Eloro’s 2017-18 drilling campaign. Eloro’s in-country technical team was on hand at the meeting to explain aspects of the program in the context of its water usage and minimal environmental impact.

The message was well received by the community members with most opponents from previous meetings now in favour of renting the required community land of the San Markito Zone to the Corporation’s Peruvian subsidiary in order to enable Eloro to proceed with a drilling campaign. Additionally, it was decided that an environmental monitoring committee and a negotiation committee would be established on June 9, 2019, thereby demonstrating the community’s willingness to work with Eloro.

Next Steps  

Once both parties are satisfied with the land rental contract terms, a general assembly would be called to communicate the contract’s details to the community, following which the community members would then vote on the proposal.  A simple majority would need to be obtained to rent the required land. As Eloro already holds an approved environmental instrument, an archaeological certificate and a water permit from the relevant authorities, the outstanding approved land rental contract is the last requirement the Corporation needs to obtain the drilling permit.

Eloro CEO Mr. Tom Larsen said, “We are pleased with the progress we are making with the local community and we are optimistic about being in position to resume exploratory drilling and testing the San Markito target this summer.”

Qualified Person

Jim Steel MBA P.Geo., a Qualified Person in the context of National Instrument 43-101, has read and approved the technical content of this News Release.

About Eloro Resources Ltd.

Eloro is an exploration and mine development company with a portfolio of gold and base-metal properties in Peru and Quebec. Eloro owns an 82% interest in the La Victoria Gold/Silver Project, located in the North-Central Mineral Belt of Peru some 50 km south of Barrick's Lagunas Norte Gold Mine and Pan American Silver’s La Arena Gold Mine. The Property consists of eight mining concessions and eight mining claims encompassing approximately 89 square kilometres. The Property has good infrastructure 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.

For further information please contact 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.

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