Eloro Resources Announces Closing of Previously Announced Private Placement

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TORONTO, ONTARIO--(Marketwire - Oct. 21, 2011) - Eloro Resources Ltd. (TSX VENTURE:ELO - News; FRANKFURT:P2Q - News; "Eloro" or the "Company") is pleased to announce that it has closed the previously announced private placement of flow-through units (see Eloro news release dated September 1, 2011). Eloro closed the sale of 4,625,000 flow-through units at a price of $0.20 per unit for gross proceeds of $925,000. Eloro did not proceed with the sale of any non-flow-through units at a price of $0.18 per unit, as detailed in the September 1, 2011 press release.

Each flow-through unit is comprised of one Common Share 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") issued on a "flow-through" basis under the ITA. Each whole F-T Warrant entitles 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 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.

In connection with the private placement, two arm's length finders received as compensation 7% cash commission aggregating $57,400 and 287,000 finder's warrants entitling the holders to purchase 287,000 Eloro Common Shares at a price of $0.40 per share for a term of 18 months, subject to the same acceleration provisions as the F-T Warrants.

The net proceeds from the private placement will be used to finance continued exploration at the Simkar Gold Property near Val d'Or, Quebec (the "Simkar Property"). One officer of the Company participated in the financing by subscribing for 125,000 flow-through units. All the securities issued pursuant to the private placement are subject to a four (4) month hold period. The private placement remains subject to TSX Venture Exchange final acceptance.

About Eloro Resources Inc.

Eloro Resources is an exploration and mine development company with a portfolio of gold and base metal properties in northern and western Quebec. The Company is focused on expanding the historic gold resources at its wholly-owned past-producing Simkar gold mine property ("Simkar 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 Property 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 the Simkar Property with the objective to outline quality gold resources in an established mining camp.

Information in this news release respecting the financing and the use of the proceeds 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.

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

Jorge Estepa
Eloro Resources Ltd.
Vice-President
(416) 868-9168