Eloro Resources Ltd.

Eloro Resources Ltd. is a junior silver exploration company headquartered in Toronto, Canada, operating primarily in South America. The company's portfolio consists of 1 advanced exploration project. Key assets include Iska Iska. The company's business model is centered on the exploration and development of complex polymetallic systems. A key operational characteristic is the application of advanced metallurgical processes to de-risk assets and enhance project economics. The enterprise has focused on developing multiple potential flowsheets to optimize recovery from extensive and varied mineralization. This includes comprehensive testwork on pre-concentration techniques such as sensor-based ore-sorting and dense media separation, which have demonstrated the potential to significantly upgrade material feed grades by rejecting a substantial percentage of waste tonnage. This approach provides considerable operational flexibility, allowing for economic trade-off analyses between reducing downstream capital and operating expenditures and maximizing overall metal recoveries. The business is not focused on production but on advancing exploration-stage assets through systematic technical evaluation and engineering studies. The operational approach involves detailed mineralogical characterization to inform the design of efficient processing circuits capable of producing multiple saleable concentrates from a single feed stream.

Strategic priorities are centered on systematically advancing the primary exploration asset toward a Preliminary Economic Assessment to quantify its economic potential. This involves a disciplined, phased approach to exploration, including definition drilling programs focused on expanding known higher-grade zones and step-out drilling to delineate the full extent of the mineralized system. The exploration strategy is guided by advanced geophysical surveys, such as induced polarization and magnetic modeling, to identify and prioritize new drill targets with high potential. A core component of the strategy is the continuous optimization of metallurgical processes through ongoing testwork to improve recoveries and flowsheet designs. The financial strategy involves securing capital through equity financings, including bought deal private placements, to fund exploration and development activities. The company maintains financial flexibility through a base shelf prospectus and intends to retain any future earnings to reinvest in the business rather than issue dividends, ensuring resources are allocated to project advancement.

Executive leadership includes a Chief Executive Officer who has held the position since 1997. In 2022, the company appointed an independent advisor, the former Executive Chairman of Yamana Gold Inc., to provide strategic guidance on project advancement and business development. The technical team was further strengthened in 2024 with the appointment of a Senior Vice President of Engineering Projects/Metallurgy, a specialist with extensive global experience in mineral processing. The board of directors is composed of 6 members. Governance is structured through an Audit Committee and a Nomination and Compensation Committee, each comprising 3 directors. All members of the Audit Committee are independent and financially literate, meeting at least quarterly to oversee financial reporting, internal controls, and the external auditor. The company relies on the expertise of its directors and officers to manage potential conflicts of interest in accordance with corporate law, with directors required to disclose any conflicts and abstain from voting on related matters.

The organization maintains a comprehensive Environmental, Social, and Governance program overseen by a dedicated ESG Manager. Social initiatives focus on direct community support, including the construction of sanitation stations in local homes and providing equipment for community medical centers. The company actively collaborates with the Women's Association of Almona and La Torre, supporting training courses in baking and embroidery to foster economic empowerment. Educational support includes providing classroom materials, computer equipment, and other resources to local schools. Environmental stewardship involves regular monitoring of soil, noise, air, and water quality in compliance with regulations. The company has implemented systems for controlling solid and liquid waste from exploration work, including the construction of sedimentation and infiltration pits for the disposal of drilling sludge. A baseline environmental study has also been prepared to document and manage the environmental context of its primary project area.

The corporate structure is defined by several key option agreements and ownership arrangements through subsidiaries. The company holds a 98% interest in its primary operating subsidiary, Minera Tupiza S.R.L., with an option to acquire the remaining 1%. In turn, Minera Tupiza holds an option to acquire a 99% interest in the principal project from a partner, Empresa Minera Villegas SRL, contingent on a final payment, with the payment schedule amended and extended to July 2025. A significant structural development is a November 2022 letter of intent granting Minera Tupiza the right to acquire 100% of the capital quotas of Empresa Minera Villegas. Additionally, Minera Tupiza holds an option agreement from September 2021 to acquire the Mina Casiterita and Mina Hoyada properties from Empresa Unipersonal Minera VIROED. The company also holds an 82% interest in a separate entity, Compañia Minera Eloro Peru S.A.C., which is owned 41% directly and 41% indirectly through a wholly-owned subsidiary, 2529907 Ontario Limited. As of July 2, 2024, directors and executive officers as a group beneficially owned or controlled approximately 22% of the outstanding common shares.