Eloro Resources Ltd.

Eloro Resources Ltd.

July 16, 2008 08:30 ET

Eloro Completes Acquisition of Strategic Hydrocarbon (Gas) Land Package in Quebec

TORONTO, ONTARIO--(Marketwire - July 16, 2008) - ELORO RESOURCES LTD. ("Eloro" or the "Company") (TSX VENTURE:ELO) is pleased to announce the completion of the previously announced acquisition (the "Acquisition") of 4 oil and gas permits termed the Charlevoix Property (the "Property"), located in the Charlevoix area (NTS Map-Sheets 21M08 and 21M09) on the northern shore of the St. Lawrence River, 75 km NE of Quebec City, Quebec. The Property encompasses an area of 53,405 hectares or 534.05 km2 along a segment of the same Paleozoic Basin that hosts the current "gas play" in the Utica Shale.

Pursuant to the terms of the Acquisition the Company acquired a 100% undivided interest in the Property by making cash payments totalling C$50,000 to three Vendors, committing to complete C$ 500,000 in exploration expenditures over a two year period, and issuing an aggregate total of 1.5 million shares of Eloro to the Vendors, subject to a four month hold period expiring November 16, 2008. As per the Agreement, the Vendor would retain a 2.5% Gross Overriding Royalty, of which 1% may be purchased by Eloro for C$ 1.5 million.

The Charlevoix area was historically explored for hydrocarbons in the late 1980's and early 1990's by the GHK Corporation ("GHK"). Based on GHK surface sampling, hydrocarbon analysis and extensive geophysical surveying, hydrocarbon seepage was identified at surface in a number of areas, in addition to occurrences of tar, anthracite and other carbon-rich compounds. More than 450 surface sites were sampled for hydrocarbons. Higher than background values in methane were also outlined in soils at 22 sites; one occurrence yielding up to 11,161 ppm or 1.12% methane. A Soil Fluorescence survey outlined the seepage of heavier hydrocarbons. Soils were also anomalous in iron, titanium, copper, manganese, vanadium, lead, barium and strontium, all known to be associated with hydrocarbons.

Work completed in 2007 and 2008 on the Property included geological compilation, field mapping with surface sampling and a ground structural study that identified the main structural breaks covered by the Property, and an air-photo and LANDSAT satellite study to identify the main structures and alterations pertinent to the Shale Gas setting.

Eloro reviewed and compiled the technical information available for the Property and plans to initiate the first phase of exploration by mobilizing a crew on site in order to conduct a soil and sampling geochemical survey covering targets derived from compilation and field work completed by the Vendors. Based on results of the soil and geochemical surveys, Eloro plans follow-up drilling.

About Eloro Resources Ltd.

Eloro is a junior exploration company focused on discovering and developing precious and base metal quality resources in the James Bay and uranium resources in the Otish Basin districts of northern Quebec, and base and precious metals in the Timmins Camp of northern Ontario. Eloro currently has eleven gold-copper-silver properties (1,062 claims) covering 548 km2 in the La Grande and Eastmain Greenstone Belts, proximal to Goldcorp's Eleonore Gold Prospect. Eloro owns 90 km2 of prospective uranium holdings in 10 properties (175 claims). The Timmins area holdings include both the prospective Hurdman Zinc-Silver Property, and the 30 km2 McArthur Lake Nickel Property.

Eloro's holdings now also include 4 oil and gas permits, the Charlevoix Property, located in the Charlevoix area along on the northern shore of the St. Lawrence River, 75 km NE of Quebec City, Quebec. The Charlevoix Property encompasses 534.05 km2 along a segment of the same Paleozoic Basin that hosts the current Quebec "gas play" in the Utica Shale.

Shareholders and stakeholders should visit the Eloro Resources IR Hub at www.agoracom.com/ir/eloro, where you can post questions and receive answers within 24 hours, or simply review questions and answers posted by other investors. If you would like to receive Eloro's news releases and the latest updates in real-time, you may download your e-mail address at elo@agoracom.com.

The information contained in this news release was prepared by Mr. Jean Lafleur, P. Geo., Eloro's Technical Advisor and Board member, a Qualified Person under National Instrument 43-101 standards.

Any statements made in this news release that are not historical facts are forward-looking statements, and readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results, may vary materially from those in these forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Eloro Resources Ltd.
    Thomas G. Larsen
    President and CEO
    (416) 868-9168
    (416) 361-1333 (FAX)
    Eloro Resources Ltd.
    Jorge Estepa
    (416) 868-9168
    (416) 361-1333 (FAX)
    Website: www.elororesources.com