Classification of Sphene Capital GmbH to Eloro Resources Ltd.

Substantial resource growth in updated MRE at Iska Iska

The updated Mineral Resource Estimate (MRE) for the silver-tin polymetallic Iska Iska project in Bolivia marks a material inflection point in the asset’s life cycle, shifting the investment case from a purely exploration-driven narrative toward a credible development-stage polymetallic system. While the headline figures—substantial tonnage growth and the introduction of an Indicated category—are clearly positive, the deeper significance lies in improved geological confidence, grade continuity, and metallurgical refinements, in our view, as these factors collectively enhance the project’s economic visibility. We continue to view Iska Iska as a high-risk, high-reward asset with substantial upside potential, contingent on the successful execution of drilling, metallurgical optimization, and economic validation in upcoming studies. Given the increased number of shares, we slightly adjust our price target to CAD 20.80 from CAD 21.80. The valuation is based exclusively on an in-situ assessment of the higher-grade portion of the Santa Barbara Breccia Pipe at the Iska Iska project in Bolivia, excluding all other assets. We reiterate our Buy recommendation on the shares of Eloro Resources.

The updated MRE outlines Indicated Resources of 85.17 mn tonnes grading 40 g/t Ag and Inferred Resources of 945.43 mn tonnes grading 8.5 g/t Ag. Total resources therefore exceed 1 bn tonnes on a combined basis, reflecting a shift from exploration uncertainty to geological continuity, typically a key driver of valuation uplift in the mining sector, in our view.