Classification of Sphene Capital GmbH to Eloro Resources Ltd

Encouraging results from the expansion diamond drilling program

Eloro’s recent announcement represents a meaningful step towards geological rather than economic de-risking. The results are particularly encouraging because they combine attractive grades of silver and tin with significant drilled widths and relatively shallow mineralisation and the possibility of incorporating higher-grade material into an initial open-pit mining operation. Iska Iska's principal challenge, in our view, is therefore no longer demonstrating the existence of a large mineralised system but establishing that a commercially attractive portion of this system can be mined, processed, and financed under realistic technical and economic assumptions. We maintain our Buy rating and our price target of CAD 18.00 per share. Our price target is purely based on the in-situ valuation of the Santa Barbara Breccia Pipe within the Iska Iska property in Bolivia, while excluding all other assets.

Eloro’s latest exploration results from its Iska Iska silver-tin polymetallic project provide additional evidence that the Santa Barbara mineralised system contains substantial near-surface, higher-grade mineralisation within a much larger, lower-grade polymetallic deposit. The most important finding (drillhole DSB-96, the most significant of the three reported holes) is the intersection of 87.10 metres grading 73.26 grams per tonne (g/t) silver and 0.18% tin, accompanied by a separate, particularly attractive interval of 17.90 metres grading 190.50 g/t silver and 0.45% tin. The reported silver grades are significantly above the 40 g/t silver grade reported for the Indicated Mineral Resource in April 2026, suggesting that the economic viability of Iska Iska may depend disproportionately on identifying, delineating, and selectively developing higher-grade zones rather than attempting to exploit the entire mineralised system. The recent findings are therefore not only strategically relevant because they may help increase the proportion of higher-grade material within the more confidently defined resource inventory; they are also encouraging because they demonstrate that higher silver grades are not confined to narrow, isolated structures. Instead, significant mineralisation occurs across considerable drilled intervals, potentially supporting the interpretation of a broad, structurally controlled hydrothermal system with multiple mineralising events. In addition, the reported intervals suggest that the near-surface mineralisation may contain a particularly high-grade component within a broader mineralised envelope. If this interpretation is confirmed, the possibility of selectively extracting higher-value material during the initial years of production could become a meaningful economic advantage for Eloro Resources, in our view.