Elcora Resources Corp. updates transaction with Sakura Graphite (PVT) Ltd. and closes 1.4 million dollar private placement in trust

(Not for distribution to US wire services or for dissemination in the United States of America)

Trading Symbol:  ERA:TSXV
Shares Issued:  32,792,538

HALIFAX, May 13, 2014 /CNW/ - Elcora Resources Corp. (TSXV: ERA) ("Elcora")

Transaction

As previously announced Elcora has entered into a definitive share purchase agreement dated March 25, 2014 with Sakura Graphite (PVT) Ltd of Sri Lanka ("Sakura"). Upon completion of this transaction Elcora will own 40% of the issued and outstanding shares of Sakura (the "Transaction").  Sakura operates the Sakura Graphite Mine located in Sri Lanka (the "Mine").  In addition, Elcora will earn 20% of the net income from the Mine as the Mine operator, and an additional 30% of the net income from the Mine for managing the processing of the graphite, for the life of the Mine.  Historically, the Mine operated between 1974 and 1985 and produced as much as 18,000 tons per year of high purity graphite. The graphite from the Mine is of natural crystalline vein type. Sakura has invested in and developed the Mine over the last 3 years and is now nearing readiness to begin commercial production, with much of the mining equipment having been upgraded over the last two years. Upgrading of the remaining equipment will continue as Sakura progresses the project towards becoming a fully integrated graphite producer. Pursuant to the terms of the Transaction, Elcora will provide the remaining capital expenditure required to put the Mine back into commercial production.  The Transaction is not a non-arms length transaction.  No Finders Fee is payable for the Transaction.

Private Placement

Elcora has closed in trust its previously announced non-brokered private placement for $1,436,300 (the "Private Placement").  The Private Placement was subscribed for at $0.16 per common share with a full warrant attached entitling the holder to acquire one common share of Elcora for $0.30 for 18 months (the "Warrant").  Pursuant to the Private Placement, Elcora will issue 8,976,875 common shares and 8,976,875 Warrants.

The Private Placement has been closed in trust pending the closing of the Transaction.

The securities issued pursuant to the Private Placement will be subject to a hold period expiring four months and one day after the closing of the Private Placement in accordance with applicable securities laws and, if required, the policies of the Exchange.

Elcora has also issued 1,062,500 common shares and 1,062,500 Warrants to settle outstanding debt in the amount of $170,000 in accordance with Exchange Policy 4.3.

This press release was prepared under the supervision of Marc Filion, P.Eng., who is a Qualified Person.

Completion of the Transaction is subject to a number of conditions, including but not limited to, Exchange acceptance and approval and all other required regulatory approvals.

Elcora's stock resumed trading on Monday, May 5, 2014.

CAUTIONARY STATEMENT:

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.  No stock Exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.  This News Release includes certain "forward-looking statements".  All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Elcora, are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.  Important factors that could cause actual results to differ materially from Elcora's expectations are exploration risks detailed herein and from time to time in the filings made by Elcora with securities regulators.

Investors are cautioned that, except as disclosed in the filing statement prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon.

SOURCE Elcora Resources Corp.

For further information:

Troy Grant, Director, President and CEO, Elcora Resources Corp., T: 902 802-8847   F:  902 446-2001.