Exploration and Development Co. Hits High-Grade Silver
Research Report

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Disclosures for Cantor Fitzgerald, Eloro Resources Ltd., January 6, 2025

Disclaimers The opinions, estimates and projections contained in this report are those of Cantor Fitzgerald Canada Corporation. (“CFCC”) as of the date hereof and are subject to change without notice. Cantor makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; however, Cantor makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained herein and accepts no liability whatsoever for any loss arising from any use of or reliance on this report or its contents. Information may be available to Cantor that is not herein. This report is provided, for informational purposes only, to institutional investor clients of Cantor Fitzgerald Canada Corporation, and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such offer or solicitation would be prohibited. This report is issued and approved for distribution in Canada, CFCC., a member of the Investment Industry Regulatory Organization of Canada ("IIROC"), the Toronto Stock Exchange, the TSX Venture Exchange and the CIPF. This report is has not been reviewed or approved by Cantor Fitzgerald & Co., a member of FINRA. This report is intended for distribution in the United States only to Major Institutional Investors (as such term is defined in SEC 15a-6 and Section 15 of the Securities Exchange Act of 1934, as amended) and is not intended for the use of any person or entity that is not a major institutional investor. Major Institutional Investors receiving this report should effect transactions in securities discussed in the report through Cantor Fitzgerald & Co. Non US Broker Dealer 15a-6 disclosure: This report is being distributed by (CF Canada/CF Europe/CF Hong Kong) in the United States and is intended for distribution in the United States solely to “major U.S. institutional investors” (as such term is defined in Rule15a-6 of the U.S. Securities Exchange Act of 1934 and applicable interpretations relating thereto) and is not intended for the use of any person or entity that is not a major institutional investor. This material is intended solely for institutional investors and investors who Cantor reasonably believes are institutional investors. It is prohibited for distribution to non-institutional clients including retail clients, private clients and individual investors. Major Institutional Investors receiving this report should effect transactions in securities discussed in this report through Cantor Fitzgerald & Co. This report has been prepared in whole or in part by research analysts employed by non-US affiliates of Cantor Fitzgerald & Co that are not registered as broker-dealers in the United States. These non-US research analysts are not registered as associated persons of Cantor Fitzgerald & Co. and are not licensed or qualified as research analysts with FINRA or any other US regulatory authority and, accordingly, may not be subject (among other things) to FINRA’s restrictions regarding communications by a research analyst with a subject company, public appearances by research analysts, and trading securities held by a research analyst account.

Potential conflicts of interest The author of this report is compensated based in part on the overall revenues of Cantor, a portion of which are generated by investment banking activities. Cantor may have had, or seek to have, an investment banking relationship with companies mentioned in this report. Cantor and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned herein as principal or agent. Although Cantor makes every effort possible to avoid conflicts of interest, readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies. Disclosures as of January 6, 2025 Cantor has provided investment banking services or received investment banking related compensation from Eloro Resources Inc. within the past 12 months. The analysts responsible for this research report do not have, either directly or indirectly, a long or short position in the shares or options of Eloro Resources Inc. The analyst responsible for this report has not visited the material operations of Eloro Resources Inc. No payment or reimbursement was received for related travel costs. Analyst certification The research analyst whose name appears on this report hereby certifies that the opinions and recommendations expressed herein accurately reflect his personal views about the securities, issuers or industries discussed herein. Definitions of recommendations BUY: The stock is attractively priced relative to the company’s fundamentals and we expect it to appreciate significantly from the current price over the next 6 to 12 months. BUY (Speculative): The stock is attractively priced relative to the company’s fundamentals, however investment in the security carries a higher degree of risk. HOLD: The stock is fairly valued, lacks a near term catalyst, or its execution risk is such that we expect it to trade within a narrow range of the current price in the next 6 to 12 months. The longer term fundamental value of the company may be materially higher, but certain milestones/catalysts have yet to be fully realized. SELL: The stock is overpriced relative to the company’s fundamentals, and we expect it to decline from the current price over the next 6 to 12 months. TENDER: We believe the offer price by the acquirer is fair and thus recommend investors tender their shares to the offer. UNDER REVIEW: We are temporarily placing our recommendation under review until further information is disclosed. Member-Canadian Investor Protection Fund. Customers' accounts are protected by the Canadian Investor Protection Fund within specified limits. A brochure describing the nature and limits of coverage is available upon request.

In a January 6, 2025 research note, Cantor Fitzgerald analyst Matthew O'Keefe maintained a Speculative Buy rating on Eloro Resources Ltd. (ELO:TSX.V; ELRRF:OTCBB) with a CA$3.60 target price, following positive results from the company's definition drilling program at its Iska Iska Silver-Tin Polymetallic Project in Bolivia.

The company reported results from three new holes in its definition drilling program, which is focused on establishing a higher-grade mineral resource in the Santa Barbara starter pit area. Significant intersections include "DSB-69, which returned 127.49 g/t AgEq over 41.25m, DSB-70, which returned 45.71 g/t AgEq over 81 m, and DSB-71, which returned 53.17 g/t over 45 m."

To date, 4,902.8m of PQ diamond drilling has been completed in 10 holes, including one hole in progress. The larger PQ core size is being used to obtain more representative core samples.

The drill program aims to fill in gaps currently categorized as low-grade or waste, better define silver mineralization extent, expand tin mineralization to the west, and complete two large PQ holes for metallurgical testing. The company plans to use this drilling to support a mine life of 10-15 years at a production rate of 35,000 tonnes per day, to be evaluated in a PEA expected in late 2025.

The analyst notes that while Iska Iska is predominantly a base metal deposit, it has a substantial silver component of approximately 30% by value. O'Keefe expects the company will need to raise approximately CA$10 million over the next 12 months to advance the project through a PEA and make a final option payment of US$4.6 million in July 2025.

The valuation is based on "a blended EV/Resource basis applying a 70% weighting to its base metal valuation of US$0.01/lb ZnEq and a 30% weighting to its silver valuation at US$0.50/oz AgEq."

The share price at the time of the report of CA$0.87 represents a potential return of 314% to Cantor's CA$3.60 target price.