Eloro Resources Announces Closing of Final Tranche of Previously Announced Private Placement

TORONTO, ONTARIO--(Marketwire - Jan. 4, 2011) - Eloro Resources Ltd. (TSX VENTURE:ELO)(FRANKFURT:P2Q) ("Eloro") is pleased to announce that it has closed the final tranche of the sale of non-flow-through units pursuant to its previously announced unit financing (see Eloro news releases dated November 11, 2010 and December 23, 2010). Eloro closed the sale of 2,720,000 non-flow-through units of Eloro at a price of $0.08 per unit for gross proceeds of $217,600.

In the aggregate, Eloro has raised $2,000,000 in gross proceeds from the sale of 13,020,000 flow-through units at a price of $0.10 per flow-through unit and the sale of 8,725,000 non-flow-through units at a price of $0.08 per unit.

The net proceeds from the private placement will be used to finance exploration at the Simkar Gold Property near Val d'Or, Quebec (the "Simkar Property") and for general corporate purposes. All the securities issued pursuant to the private placement are subject to a four (4) month hold period. The private placement remains subject to TSXV final acceptance.

About Eloro Resources Inc.

Eloro is a junior exploration company focused on discovering and developing precious metals in the Val-d'Or mining camp, as well as quality precious and base metal resources in the James Bay region of northern Quebec. In the James Bay region, Eloro has 11 gold-copper-silver properties (1,062 claims) covering 548 km² in the La Grande and Eastmain Greenstone Belts, proximal to Goldcorp's Eleonore Gold Project. Eloro also has an option to acquire an undivided 50% interest in the Simkar Property from Megastar; Eloro and Megastar have recently signed an Asset Purchase Agreement, Voting Trust Agreement and other closing documents (in escrow) to complete a business combination pursuant to which Eloro will acquire 100% of the Simkar Property from Megastar in exchange for 70,000,000 Eloro shares, which shares are to be distributed pro rata to Megastar's shareholders (see joint press release dated August 30, 2010).

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.