Eloro Resources Ltd.

Eloro Resources Ltd.

January 30, 2006 14:54 ET

Eloro Completes Financing

TORONTO, ONTARIO--(CCNMatthews - Jan. 30, 2006) -

Not for dissemination in the United States of America.

Eloro Resources Ltd. (TSX VENTURE:ELO) (the "Company" or "Eloro") is pleased to announce that it has completed its previously announced non-brokered private placement (the "Private Placement") of 1,000,000 units ("Units") of the Company at a price of $0.15 per Unit for gross proceeds of $150,000. Each Unit consists of one common share and one-half of one common share purchase warrant of the Company (the "Warrants"). Each whole Warrant entitles the holder thereof to purchase one common share of the Company at a price of $0.20 at any time on or before July 30, 2007. The common shares and the Warrants to be issued pursuant to the Private Placement will be subject to a hold period which expires May 31, 2006.

With the Company's increased activity on its James Bay area properties, the Company issued 666,667 units to Societe de developpement de la Baie-James (the "SDBJ"), for gross proceeds of $100,000. SDBJ's mission is to favour the economic development in the James Bay region of Quebec, as defined between the 49th and the 55th northern parallel. The SDBJ relies on an investment fund, part of which is devoted to the financing of junior exploration companies, as a contribution to the renewal of mineral resources and to an increase in total exploration expenditures in the James Bay region.

The net proceeds of the Private Placement will be used to finance continued exploration programs at Eloro's exploration projects located in the James Bay region of Quebec, and the Company's Hurdman Zinc Silver Property, located in northeastern Ontario and for working capital. The Private Placement is subject to final approval by the TSX Venture Exchange.

About Eloro

Eloro is a publicly traded resource exploration and development company based in Toronto, Ontario. Eloro recently announced the acquisition of precious, base metal and uranium projects in the highly prospective archean greenstone belt located in the James Bay area of Quebec. Together with Eloro's current portfolio of precious and base metal properties in the prolific Timmins and Kirkland Lake mining camps, these projects provide Eloro with an extensive land package consisting of precious and base metal and uranium properties at various stages of exploration and development at a time when commodity prices and metal demand has improved.

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

Contact Information

  • Eloro Resources Ltd.
    Thomas G. Larsen
    (416) 868-9168
    Eloro Resources Ltd.
    Jorge Estepa
    Vice President
    (416) 868-9168
    (416) 361-1333 (FAX)