Eloro Resources Ltd.

Eloro Resources Ltd.

April 24, 2007 11:19 ET

Eloro Options Uranium Property to Icon Industries Limited

TORONTO, ONTARIO--(CCNMatthews - April 24, 2007) - ELORO RESOURCES LTD. (TSX VENTURE:ELO) ("Eloro" or the "Company") is pleased to announce that it has signed an option agreement (the "Agreement") with Icon Industries Limited (TSX VENTURE:ICN) ("Icon") allowing Icon to earn up to a 55% interest in Eloro's wholly-owned Lac Henry Uranium Property located in the Otish Mountains in the province of Quebec.

Pursuant to the Agreement, Icon has been granted an option to acquire up to a 55% interest in the Lac Henry Uranium Property. Icon can earn an initial 50% interest (the "Initial Option") in the Lac Henry Property by: a) funding not less than CDN $1,000,000 in aggregate exploration related costs by the third anniversary of the closing date of the Agreement (the "Closing") of which: i) at least $150,000 shall have been expended by the first anniversary of the Closing, ii) at least $450,000 (inclusive of year one amounts) shall have been expended by the second anniversary of the Closing, iii) at least $1,000,000 (inclusive of year one and two amounts) shall have been expended by the third anniversary of the Closing, and b) issuing 300,000 common shares of Icon (the "Shares") to Eloro as follows: i) 50,000 Shares after receipt of all necessary regulatory approvals, ii) 100,000 Shares by the first anniversary of Closing, and iii) 150,000 Shares by the second anniversary of Closing. Pursuant to the Agreement, Icon has been granted the right to increase its interest in the Lac Henry Uranium Property to 55% by satisfying all the requirements of the Initial Option and by paying to Eloro $500,000 within 18 months of exercising the Initial Option.

Eloro retains a 2% Net Smelter Returns royalty on the Lac Henry Uranium Property, of which Icon can purchase 1.0% for $1,000,000. The Agreement and issuance and the Shares are subject to receiving all necessary regulatory and exchange approval, including that of the TSX Venture Exchange.

Mr. Thomas Larsen, President and CEO of Eloro stated, "This is excellent news for Eloro and its shareholders. Eloro's partnership with Icon allows Eloro to participate in the rapidly developing uranium exploration sector while allowing it to focus on discovering and developing gold-silver, base metal and uranium resources in its other wholly-owned portfolio of properties." Mr. T. Barry Coughlan, President and CEO of Icon stated "the joining of Eloro's claims with Icon's, while greatly enhancing discovery potential, now allows for the simultaneous exploration of the combined claims while providing for an expeditious and cost effective development program which greatly benefits each company's shareholders".

Including the Lac Henry Uranium Property, Eloro controls a 100% interest in 8 uranium properties covering 70 km2 in the Otish Mountains, Rupert River and La Grande River sectors. Several of the uranium properties contain documented historical sampling results, including:

Property Name MRNF Grab Samples Host
Reference Assays Rocks
Lac Mills GM 32768 1.44 % U3O8 Pegmatites
Lac Henry GM 57730 0.86 % U3O8 Uraniferous vein
Maguy GM 34000 0.44 % U3O8 Pegmatites

The Company is completing a detailed evaluation of the potential of its uranium assets. This evaluation will serve to highlight priority targets for follow-up exploration work in the summer of 2007.

Martin Bourgoin, P. Geo., Executive Vice-President, Exploration, the Company's qualified person under National Instrument 43-101 standards, prepared the technical information in this news release.

About Eloro Resources Ltd.

Eloro Resources Ltd. is a junior exploration company focused on discovering and developing gold-silver, base metal and uranium quality resources in the James Bay Mining District of northern Quebec and the Timmins Mining Camp of northern Ontario. The Company currently has 19 gold-copper-silver and uranium properties covering 425 km2 in the La Grande and Eastmain Greenstone Belts, proximal to Goldcorp's Eleonore Gold Prospect. The Company also has an option to earn a 50% interest in 31 claims held by Virginia Mines Inc. (refer to Eloro's press release dated November 23, 2006).

About Icon Industries Limited

Icon Industries Limited is a junior uranium exploration company based in Vancouver B.C. with a focus on exploring and developing quality uranium resources in central Quebec (refer to Icon's news release of March 13, 2007). The Chairman and CEO of Icon is Mr. Barry Coughlan who over the past 23 years has been involved in the financing of publicly traded companies and their subsequent listings on North American Stock Markets. He has been employed as a Stock Broker in New York City, Toronto and Vancouver, and has extensive knowledge of both local and international financial markets. Mr. Coughlan is an officer and or a director of several companies including: Great Basin Gold Ltd., Farallon Resources Ltd., Icon Industries Ltd., Continental Minerals Ltd., and Taseko Mines Limited. Another member of the Icon board of directors is Mr. David Rhys, M. Sc., P. Geo., a consulting structural geologist based in Vancouver, Canada. As a partner in Panterra Geoservices Inc., Mr. Rhys is an experienced consultant specializing in structural controls on mineral deposits and their application to exploration, mining and mine site grade control. His expertise has been conducted for both major and junior mining companies in global exploration and mine environments, covering a wide range of deposit types, including many world class gold deposits. His experience also includes extensive work on uranium deposits in the Athabasca basin of Saskatchewan for Cameco and UEX Corporation. Mr. Rhys has also been involved in exploration advisory roles to several junior mining companies.

Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. 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
    Vice President
    (416) 868-9168
    (416) 361-1333 (FAX)
    Website: www.elororesources.com