Eloro Resources Ltd. announced major advances on metallurgy for the Iska Iska silver-tin polymetallic project in the Potosi Department of southern Bolivia. These tests were directed by Mike Hallewell, C.Eng., Eloro?s Senior Strategic Metallurgist and a qualified person (QP) as defined by National Instrument 43-101 (NI 43-101). in consultation with Micon International Limited Principal Metallurgist, Richard Gowans, P.Eng., an independent QP.

Metallurgically the two different domains require different approaches to optimize recoveries. As much of the mineralization in both domains occurs in veins and vein breccias, it was felt that ?ore-sorting? technology developed by TOMRA could have a significant impact by selectively removing waste material resulting in a significant reduction in operating costs while at the same time producing a major increase in grades of feed to the grinding circuit.

256 rocks representing five different lithological groups within the Polymetallic Domain and five different lithological and tin grade groups within the Tin Domain were scanned using the on-site GeologicAI core scanner and then subsequently sent for amenability testing at TOMRA in Wedel, Germany. The preliminary images and assays indicate a positive response to XRT Ore sorting. Based upon these results, the preliminary indications are at least 40% of the run-of-mine (ROM) polymetallic mineralization could be rejected as waste while for the Tin Domain, as much as 80% of the weight can be rejected as sub ?

cutoff grade (COG) waste. Ore sorting will significantly increase concentrator feed grades which will enhance concentrator recovery in both domains. In addition, bulk mining techniques can be employed without resultant dilution issues and this will reduce downstream processing costs.

The positive results obtained justify the diamond drilling of larger size diameter holes to produce bulk samples of both Polymetallic and Tin Domains for ?Cascade? testing at TOMRA, Germany. The resultant XRT pre-concentrated product will be used for the downstream PEA studies.

Wardell Armstrong International, based at the old Wheal Jane tin mine site in Cornwall, England have conducted further tin optimisation testing on a composite sample from the tin domain, drawing on their strong historical background with tin studies. The main thrust of this work was to identify ways of increasing the tin recovery in the concentrator and consisted of Falcon Continuous Roughing followed by multi-gravity separators (MGS) and cleaning of Falcon Rougher Concentrates. These multi-gravity technologies can recover the bulk of the recovered tin in as coarse a grain size possible.

The Falcon tailings are then reground prior to a tin flotation rougher stage where much finer cassiterite is recovered using MGS cleaning of the resultant tin flotation rougher concentrates. The combined multi gravity concentrator and tin float concentrator tin recovery was increased to 50% using this flowsheet and further optimisation studies of this flowsheet have been identified which will form part of the PEA study using the XRT pre-concentrated products as mentioned above. The University of Oruro has also tested other pre-concentration techniques including Dense Media Separation (?DMS?) using heavy liquids.

The DMS testwork results for the three different grade samples tested were positive, matching the XRT ?Ore sorting? mentioned above where as much as80% of the weight can be rejected as floats at sub-COG waste in the Tin Domain. This is a positive result and provides further options to increase the quantity of waste rejected by using DMS as a potential further stage of pre-concentration on XRT products and/or the nominal -10mm that is too fine to be XRT ?Ore Sorted?.

This provides further confidence that the low-grade tin domain can be effectively upgraded. Dr. Osvaldo Arce, P. Geo., General Manager of Eloro?s Bolivian subsidiary, Minera Tupiza S.R.L., and a Qualified Person (QP) in the context of NI 43-101, has reviewed and approved the technical content of this news release. Dr. Bill Pearson, P.Geo., Executive Vice President Exploration Eloro, and who has more than 45 years of worldwide mining exploration experience, including extensive work in South America, manages the overall technical program, working closely with Dr. Osvaldo Arce, P.Geo.

Dr. Quinton Hennigh, P.Geo., Senior Technical Advisor to Eloro and Independent Technical Advisor, Mr. Charley Murahwi P. Geo., FAusIMM of Micon are regularly consulted on technical aspects of the project. Metallurgical work was directed by Mike Hallewell, B.Sc, F.S.A.I.M.M., F.I.M.M.M., C.Eng., Eloro?s Senior Strategic Metallurgist, a QP as defined by NI 43-101, in consultation with Micon International?s Principal Metallurgist, Richard Gowans, P.Eng., an independent QP as defined by NI 43-101. ?Ore-sorting?

tests were completed at TOMRA?s facilities in Wedel, Germany. TOMRA GmbH are a leading technical authority in XRT Ore sorting. Note that the term ?Ore?

is part of the registered product name of TOMRA and the use of the term ?ore? in this press release does not imply that the mineralization at Iska Iska is ?ore? as defined by NI 43-101.

Tin optimization tests were completed at the facilities of Wardell Armstrong International in Cornwall, England. Wardell Armstrong International are an internationally recognised consulting group. The metallurgical testwork carried out at the University of Oruro, Bolivia facility has been found to yield accurate results in comparison to similar analysis at internationally accredited laboratories hence the results are considered reliable for preliminary analysis.

Eloro utilized both ALS and AHK for drill core analysis, both of whom are major international accredited laboratories. Drill samples sent to ALS are prepared in both ALS Bolivia Ltda?s preparation facility in Oruro, Bolivia and the preparation facility operated by AHK in Tupiza with pulps sent to the main ALS Global laboratory in Lima for analysis. More recently Eloro has had ALS send pulps to their laboratory at Galway in Ireland.

Eloro employs an industry standard QA/QC program with standards, blanks and duplicates inserted into each batch of samples analyzed with selected check samples sent to a separate accredited laboratory. Drill core samples sent to AHK Laboratories are prepared in a preparation facility installed and managed by AHK in Tupiza with pulps sent to the AHK laboratory in Lima, Peru. Au and Sn analysis on these samples is done by ALS Bolivia Ltda in Lima.

Check samples between ALS and AHK are regularly done as a QA/QC check. AHK is following the same analytical protocols used as with ALS and with the same QA/QC protocols.