Eloro Resources Ltd - Announces Financing

TORONTO, 09/01/11 - 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 $0.20 per unit ('F-T Units') for proceeds of up to $2,000,000 and up to 5,555,555 non-flow-through units of Eloro at a price of $0.18 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 $0.40 per share for a term of 18 months provided that, if the average closing price for the Common Shares on the TSX Venture Exchange ('TSXV') is at least $0.60 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 $0.36 per share for a term of 18 months provided that, if the average closing price for the Common Shares on the TSXV is at least $0.54 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 regulatory 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 Ltd.

Eloro Resources is an exploration and mine development company with a portfolio of gold and base metal properties in the Abitibi Greenstone Belt and in the James Bay area of north-western Quebec. The Company is focused on expanding the historic gold resources at its wholly-owned past-producing Simkar gold mine property. The Simkar Property consists of two contiguous mining concessions totaling 226 hectares in Louvicourt Township, approximately 20 km east of Val-d'Or, Quebec. Since 2009, Eloro has completed 15,035 m of drilling on the Simkar Project and has identified two new mineralized zones below the historic workings and two near surface zones in a diorite unit south of the historic workings.

Eloro plans to pursue exploration work at Simkar with the objective to outline quality gold resources in an established mining camp.

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
(416) 361-1333 (FAX)
www.elororesources.com