Ann: Cott to Aquire Interest in Peru Gold Project, page-22

Toronto, Canada, June 13, 2017 -- Eloro Resources Ltd. (TSX-V: ELO; FSE: P2Q; "Eloro") is pleased to announce that the ongoing reconnaissance geological mapping and sampling program has outlined a major new mineralized trend in the Victoria South area of the La Victoria Gold-Silver Project, Ancash Department, in the North-Central Mineral Belt of Peru. This mineralized area appears to be closely associated with the Puca Fault, a major northeast-southwest striking regional fault that is a likely feeder structure for multiple stages of epithermal gold-silver mineralization on the property (Figures 1, 2 and 3). Geologically the style of mineralization is similar to that of Rufina located approximately 1.7 kilometres to the southwest (Figures 1 and 3) and is the likely northern continuation.

Assays from an initial twenty-two rock chip samples returned encouraging results (Figure 2; Table 1):

• 33.02 grams gold per tonne (g Au/t) over 0.30 metres across a quartz vein with arsenopyrite and pyrite, in intrusive diorite;
• 8.02 g Au/t over 0.20 metres, in the intersection of a series of low-angle structures;
• 5.46 g Au/t Au gold across a 0.30-metre-wide quartz vein in altered diorite, with disseminated arsenopyrite and pyrite.

In addition to the higher-grade bonanza-style gold mineralization, significant results were also returned from limited sampling of the host breccia zones including 13.66 g Au/t over 1.10 metres, 2.73 g Au/t over 0.20 metres and 1.10 g Au/t over 0.60 metres. Much of the mineralized breccia is not well exposed and has been heavily oxidized hence trenching will be required to more accurately assess its potential.

The new mineralized zone at Victoria South is approximately 170 metres wide and strikes northwest-southeast extending for at least 1 kilometre along strike (Figure 2). It appears likely (see Figure 1 and 3) that this zone is the southern continuation of the mineralized zone at San Markito which is marked by strong induced polarization anomalies that also trend northwest-southeast. This would suggest the potential strike length may be more than 3 kilometres. A second target at Victoria South, the breccia zone, that trends northeast-southwest for approximately 850 metres, is up to 200 metres wide and is a potential target for bulk tonnage mineralization. Trenching is required to better expose this zone for sampling.

Tom Larsen, President & CEO of Eloro commented: "We are very encouraged by the results of the geological work which continues to expand our known mineralized zones and outline additional targets for diamond drilling. Our Peruvian-based team lead by Vice President, Exploration Luc Pigeon, P.Geo., is working on completing the final details for permitting of the planned diamond drilling program. In addition, a new DIA will be filed for proposed drilling in the Victoria South and Ccori Orrco target areas based on the new promising results."

Dr. Bill Pearson, P.Geo., Chief Technical Advisor to Eloro commented: "Our geological work continues to show that there is an extensive multi-phase epithermal gold-silver mineralizing system on La Victoria property centred around the Puca Fault and environs (Figures 1 and 3). Gold mineralization occurs in a variety of structural settings both parallel to the northeast trending Puca Fault as well as perpendicular along likely tear faults related to this structure. Mineralization has been identified vertically over 1 kilometre from elevation 3100 metres at Rufina to elevation 4200m at San Markito as well as along strike on different structures for up to 3+ kilometres. We are continuing to focus our work on outlining the best targets for diamond drilling."


Table 1: Results of Reconnaissance Chip Sampling, Victoria South

	Sample ID	Easting	Northing	Elev(m)	Width(m)	Au (g/t)	Ag (g/t)	Description
1	C001520	173835	9081780	3757	0.40	0.036	<0.2	Silicified microdiorite dyke
2	C001521	173831	9081769	3779	0.60	1.10	2	Hydrothermal breccia
3	C001522	173829	9081756	3775	0.12	2.59	4.3	Quartz vein
4	C001523	173826	9081754	3774	0.40	0.016	2.7	Hydrothermal breccia
5	C001524	173825	9081750	3773	0.30	0.16	1	Hydrothermal breccia
6	C001525	173820	9081742	3770	0.30	0.41	1.7	Quartz vein
7	C001526	173819	9081736	3769	1.00	0.03	0.5	Stockwork in altered diorite
8	C001527	173816	9081732	3766	0.12	2.84	22.2	Quartz vein
9	C001528	173816	9081731	3766	0.30	5.46	5.4	Quartz vein
10	C001529	173806	9081719	3758	0.50	0.38	1.6	Hydrothermal breccia
11	C001530	173805	9081718	3759	0.25	0.75	2.1	Hydrothermal breccia
12	C001531	173802	9081715	3757	0.10	2.42	3.7	Quartz vein
13	C001532	173800	9081708	3755	0.10	0.26	3.5	Quartz vein
14	C001533	173777	9081687	3747	0.30	33.02	28	Massive arsenopyrite vein
15	C001534	173769	9081679	3744	0.25	0.14	2.3	Vein stockwork
16	C001535	173728	9081660	3730	2.00	0.082	1.6	Altered diorite dyke
17	C001536	173726	9081661	3730	2.40	0.30	1.6	Altered diorite dyke
18	C001537	173724	9081662	3730	2.40	0.20	1.9	Altered diorite dyke
19	C001538	173302	9082070	3912	0.10	0.006	<0.2	Quartz vein
20	C001539	173555	9081788	3874	0.20	8.02	5.4	Stockwork
21	C001540	173324	9081411	3608	0.20	2.73	33.9	Hydrothermal breccia
22	C001541	173554	9081786	3847	1.10	13.66	7.9	Hydrothermal breccia

For all samples, width equals true width; "m" = metres; "g/t" = grams per tonne; "Au" = gold; "Ag" = Silver
Samples were analysed for Au and Ag by fire assay and 31 element ICP analysis at SGS del Peru S.A.C.
In Lima, Peru. In addition to the standard laboratory QA/QC procedures Eloro employs a system of external blanks and standards.