"The Bolivian mining industry is still in a place where they need outside expertise and that is where we are fortunate to be accepted in the country."

Tom Larsen & Bill Pearson

CEO & EXECUTIVE VICE PRESIDENT OF EXPLORATION, ELORO RESOURCES

January 21, 2022

Can you provide some highlights from Eloro Resources’ operations over the past few years?

TL: Prior to our involvement at Iska Iska, our focus was La Victoria, a gold bearing low sulphidation epithermal system in North Central Peru. Notwithstanding the mineral potential of this system, it has been an arduous permitting process. We continue to work towards an official land rental agreement with the Pallasca community.

When did you close the Iska Iska deal?

TL: Eloro has until January 6th of 2024 to acquire a 99% interest in the project.  

BP: We commenced our first drill program underground in September 2020 and have completed approximately 40,000 m to date. Our first raise was thanks to both the due diligence of Dr. Quinton Hennigh, who has knowledge of Bolivia through Sumitomo and the San Cristobal mine, and Crescat Capital through a CS$1.5 million offering prior to first drilling. In November 2020, we discovered the presence of breccia pipes on site.  These tend to occur in clusters and are typical of larger systems.  Noting this, we followed that with a key drill result in late January of 257.5 m @ 126.8 oz Ag eq/t. To date, we have drilled 65 holes, and all have been mineralized. Our exploration success has allowed us to raise over C$30 million in equity the first quarter of 2021, which has funded our drill program to date.  The company has no debt outstanding.  Our drilling contractor, Leduc drilling, has been exceptional in terms of productivity.  Year round drilling with great infrastructure has helped with cost control. Our current focus is to bring out an inaugural 43-101 mineral resource report, but with continuously finding more mineralization, we will probably have it by Q2 2022.

Eloro is listed on various stock exchanges. How does each of the company’s listings compare to the TSX-V?

TL: Our main trading volumes are on the TSX-V and will likely continue to be that way in the near future. Our OTCQX gives Eloro more exposure to the US market, but has low trading volumes. Eloro has a solid European investor following, but also with relatively small volumes on our Frankfurt listing. One of the key milestones for 2022 is a maiden resource report and meeting the listing requirements of the TSX.  Listing on a senior exchange can be costly and we are not going to make any hasty decisions with shareholder’s money.    

Can you elaborate on the Iska Iska project’s connectivity in terms of water and road access?

BP: One of the great aspects to the Iska Iska project is the location. Its proximity to Tupiza, a major mining town located 48 km north, provides an exceptional exploration base, but also is distanced enough to not infringe on the community.  Roads are well maintained and water for drilling has not been an issue with the Tupiza river being close by.  High voltage power is just 25 km away.  One of the key next steps is an engineering review of the project and we have already had an initial site review.

Can you speak to Bolivia as a mining destination?

TL: From our time in country, we have had no issues and continue to be extremely pleased with the reception we have received by the local community and the larger government bodies. Since Luis Arce came into office as president in 2020 we have not seen radical changes in any type of official mining code, but rather key incentives to encourage industrial and mining growth, such as the elimination of VAT when importing equipment. One advantage we possess is that we are dealing with a private owner, and we are working with two top Bolivian law firms who have been through many regimes. The Bolivian mining industry is still in a place where they need outside expertise and that is where we are fortunate to be accepted in the country.

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