Silver Property, Ancash, Peru

TORONTO, ONTARIO--(Marketwired - Dec. 14, 2016) - Eloro Resources Ltd. (TSX VENTURE:ELO)(FRANKFURT: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.