Eloro Resources Ltd. Proceeds with Phase II Exploration Program on the La Victoria Gold/Silver Property, Ancash, Peru - Seite 2

Geology and Mineralization

The Property, which covers approximately 45 square kilometres (Figure 1) is located within a prolific epithermal gold deposit belt that spans from Cajamarca to Ancash and that includes such deposits as Yanacocha, Lagunas Norte, La Arena and Pierina. The La Arena and the Santa Rosa open pit mines are respectively located 50km and 25km northwest of the Property.

Gold-silver mineralization on the La Victoria property is spatially and structurally associated with a series of dioritic to granodioritic Victoria intrusives that intrude sandstone and shale of the Chicama Formation. The style of mineralization is typical of low sulphidation epithermal deposits. Figure 2 is an analytical signal magnetic map developed from reprocessing of 2011 data, which shows the widespread occurrence of interpreted intrusions and principal gold (Ag) + silver (Ag) showings and occurrences. Each potential intrusion is considered prospective, warranting followup work. The areas of the magnetic anomalies tend to be recessively weathered covered by Quaternary colluvium and alluvium suggesting that the intrusives are likely altered. The location of the new road being constructed in the northeastern part of the property which substantially improves access, is also shown.

Four principal mineralized zones have been identified on the Property: San Markito, Rufina, Victoria and Victoria South with the first two being the most advanced targets. Limited sampling to date has indicated the presence of high grade mineralization in each of these mineralized areas but more systematic sampling and diamond drilling is required to assess the potential of these targets.

At San Markito, the northwest-trending mineralized zone extends for at least 1300m along strike and is up to 400m wide with the bulk of mineralization located within silicified sedimentary rocks near the contact with intrusive rocks. Results from previous sampling returned significant values up to 2.27 g/t Au and 1814 g/t Ag with enriched values of Pb up to 16.82% and arsenic and antimony greater than 1% analytical limit. Initial planned drilling will focus on testing this mineralized zone along strike and vertically.