Eloro Resources Ltd: Announces Financing

TORONTO, 11/11/10 - Eloro Resources Ltd. (TSX VENTURE: ELO) (FRANKFURT: P2Q) ('Eloro' or the 'Company') is pleased to announce that it is proceeding with a non-brokered private placement (the 'Private Placement') of up to 10,000,000 flow-through units of Eloro at a price of $0.10 per unit ('F-T Units') for proceeds of up to $1,000,000 and up to 12,500,000 non-flow-through units of Eloro at a price of $0.08 per unit ('Units') for additional proceeds of up to $1,000,000.

Each F-T Unit will consist of one common share (a 'Common Share') to be issued on a 'flow-through' basis under the Income Tax Act (Canada) ('ITA') and one half of one Common Share purchase warrant (the 'F-T Warrants') to be issued on a 'flow-through' basis under the ITA. Each whole F-T Warrant will entitle the holder to purchase one non-flow-through Common Share of the Company at a price of $0.20 per share for a term of 18 months provided that, if the closing price for the Common Shares on the TSX Venture Exchange ('TSXV') is at least $0.30 per share for 20 consecutive trading days (following the expiry of the four month hold period), the F-T Warrants will expire unless they are exercised within ten business days (or such longer period of time as the Company may provide) after the Company provides notice to accelerate the expiry date.

Each Unit will consist of one Common Share and one half of one Common Share purchase warrant (a 'Warrant') of the Company. Each whole Warrant will entitle the holder to purchase one Common Share of the Company at a price of $0.16 per share for a term of 18 months provided that, if the closing price for the Common Shares on the TSXV is at least $0.24 per share for 20 consecutive trading days (following the expiry of the four month hold period), the Warrants will expire unless they are exercised within ten business days (or such longer period of time as the Company may provide) after the Company provides notice to accelerate the expiry date.

The net proceeds of the Private Placement will be used to finance exploration at the Simkar Gold Property near Val d'Or, Quebec (the 'Simkar Property') and for working capital purposes. The Private Placement is subject to approval by the TSXV. All securities issued pursuant to the Private Placement will subject to the applicable statutory, exchange and regulatory hold period.


About Eloro Resources Inc.

Eloro is a junior exploration company focused on discovering and developing precious metals in the Val-d'Or mining camp, as well as quality precious and base metal resources in the James Bay region of northern Quebec. Eloro has an option to acquire an undivided 50% interest in the Simkar Property from Megastar Development Corp. ('Megastar'); Eloro and Megastar have recently signed a letter of intent to complete a business combination pursuant to which Eloro will acquire 100% of the Simkar Property from Megastar in exchange for 70,000,000 Eloro shares, which shares are to be distributed pro rata to Megastar's shareholders (see joint press release dated August 30, 2010). In the James Bay region, Eloro has 11 gold-copper-silver properties (1,062 claims) covering 548 km2 in the La Grande and Eastmain Greenstone Belts, proximal to Goldcorp's Eleonore Gold Project.


Information in this news release respecting the proposed financing and the proceeds that may be realized therefrom constitutes forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the companies' plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the company. Forward-looking statements and information are based on assumptions that financing and personnel will be available when required and on reasonable terms, and all necessary regulatory approvals will be obtained, none of which are assured and each of which is subject to a number of other risks and uncertainties. There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.



Contacts:

Eloro Resources Ltd.
Thomas G. Larsen, President and CEO
(416) 868-9168

Eloro Resources Ltd.
Jorge Estepa, Vice-President
(416) 868-9168
www.elororesources.com