DELORO RESOURCES LTD V.DLL

ELK HILLS ACQUISITION

[saskadan]

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Re: News Releases - Thursday, May 05, 2011
DELORO RESOURCES TO ACQUIRE UP TO 1/3 INTEREST IN ELK HILLS HEAVY
OIL PROJECT
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Deloro Resources Ltd. (TSX-V:DLL) is pleased to announce that it has
entered into a Agreement with Stellar Resources Ltd. (OTC-BB:SRRL)
"Stellar" and Elk Hills Petroleum Canada Ltd. "EHPC" through which
Deloro can acquire up to a 1/3 interest in the ~22,000 acre Elk Hills
Heavy Oil Project in Carbon County,
Montana.
The Elk Hills Prospect contains a shallow accumulation of heavy oil in
the Tensleep Sandstone, originally drilled in the 1920's and 1940's.
The prospect was drilled in 2010 by the vendors of the property, to
confirm the results of historic drilling. A preliminary drill hole
intersected a 20-foot oil column.
Similar structures, in the Tensleep Sandstone, within twenty-five miles
of the Elk Hills Prospect, have seen extensive oil production. The
property is overwhelmingly private fee acreage with no governmental
surface restrictions in either access or timing. A 12-inch crude
pipeline crosses the leasehold and three refineries are located within
12 miles.
Under the terms of the agreement, Deloro can earn a 1/3 interest in Elk
Hills Heavy Oil LLC, "EHHO" from Stellar and EHPC by issuing 3,000,000
shares to Stellar and 3,000,000 shares to EHPC, making a capital
contribution of $600,000 on or before September 11, 2011 ($450,000 for
approved exploration expenditures and the balance of funds to meet
current and operating liabilities of EHHO.) Deloro will become the
Operator of the project and Deloro, Stellar and EHPC will be
Co-Managers of EHHO. No new insiders of control positions will be
created through this issuance. Shares issued under this Agreement will
be subject to a four month and a day hold. Both share issuances will be
subject to separate TSX Venture Exchange approval. The Elk Hills heavy
Oil project is subject to a 20% royalty on the production of oil, gas
and other hydrocarbons to Longshot Oil LLC of Spokane, WA.
Technical information in this news release has been reviewed By Mike
Magrum, P.Eng., a qualified person as defined in NI 51-101.
On Behalf of Deloro Resources Ltd.
"Mike Magrum"
Mike Magrum
President & Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this press
release. This news release shall not
constitute an offer to sell or the solicitation of an offer to buy
securities in any jurisdiction.
Suite 900-925 West Georgia Street,
Vancouver, British Columbia, Canada, V6C 3L2
Telephone [phone], Facsimile 604-484-5760,
[e-mail] / www.deloro.ca
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Copyright (c) 2011 DELORO RESOURCES LTD. (DLL) All rights reserved.
For more information visit our website at https://www.deloro.ca/ or send
mailto:[e-mail]
Message sent on Tue May 10, 2011 at 10:22:45 AM Pacific Time
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