Mr. Darin Wagner reports

BALMORAL RESOURCES (TSX:BAR) INTERSECTS 54.08 METRES GRADING 1.62% NI, 0.18% CU, 0.36 G/T PT AND 0.88 G/T PD AT GRASSET

Balmoral Resources Ltd. has released high-grade nickel-copper-PGE (platinum group elements) intercepts from each of the first eight holes targeting its recent Horizon 3 discovery on the company's wholly owned Grasset property in Quebec. All eight holes, which fan out from discovery hole GR-14-25 (1.79 per cent nickel, 0.19 per cent copper, 0.42 gram per tonne (g/t) platinum and 1.04 g/t palladium over 45.28 metres (see news release date May 20, 2014)) intersected broad zones of high-grade nickel-copper-PGE mineralization similar to that observed in the discovery hole.

• Results include 102.86 metres grading 1.03 per cent Ni plus Cu and PGE.
• High-grade core continues throughout including 15.84 m at 2.51 per cent Ni and 9.80 metres at 2.73 per cent Ni in deepest hole reported to date.

Results were highlighted by holes GR-14-28 and GR-14-33, the latter being the deepest of the initial eight follow-up holes. Hole GR-14-28 returned a 102.86-metre intercept grading 1.03 per cent nickel, 0.11 per cent Cu, 0.22 g/t Pt and 0.53 g/t Pd from the bedrock collar. This included a higher-grade section almost nine metres wider than the discovery hole at 54.08 metres grading 1.62 per cent Ni, 0.18 per cent Cu, 0.36 g/t Pt and 0.88 g/t Pd. Hole GR-14-33 returned a similarly broad 99.50-metre intercept grading 0.95 per cent Ni, 0.11 per cent Cu, 0.21 g/t Pt and 0.48 g/t Pd which includes a very high-grade core of 9.80 metres grading 2.73 per cent Ni, 0.33 per cent Cu, 0.68 g/t Pt, 1.64 g/t Pd and 0.11 g/t Au. In addition to nickel, copper, platinum and palladium values, several of the deeper intercepts from the current program returned significantly anomalous (greater than 0.10 g/t) gold values.

"Today's results confirm the discovery, and begin to outline the potential, of a high-grade nickel-copper-PGE sulphide zone within the Grasset ultramafic complex," said Darin Wagner, president and chief executive officer of Balmoral. "Ongoing drilling continues to intersect broad zones of sulphide mineralization, both along strike from, and beneath, the holes reported today. With continued strong results, regional geophysical work ongoing and the tendency of magmatic nickel sulphide systems to host multiple zones of nickel mineralization we are increasingly optimistic about the potential of this trend, which is 100 per cent controlled by Balmoral."

The initial phase of testing has now successfully defined the local controls on the attitude, continuity and structural aspects of the Horizon 3 discovery. This has allowed continuing drilling to incorporate wider step-outs and thus more efficiently and rapidly expand the size of the mineralized zone. Of the holes reported today, only hole GR-14-27 was drilled deep enough to test mineralized Horizon 1. Disseminated nickel sulphide mineralization was successfully intersected over a downhole length of over 60 metres along the base of the intrusion (Horizon 1) returning 60.46 metres grading 0.35 per cent nickel.

Drill hole GR-14-34, the southeasternmost of the current Horizon 3 test holes, intersected a zone of deformed ultramafics cored by a quartz porphyry dike near the projected level of the Horizon 3 sulphide zone. This porphyry cored section is currently interpreted to represent a roughly east-west-trending, near vertical fault (the QP fault), offsetting the Horizon 3 stratigraphy in this area. The presence of Grasset ultramafic complex rocks on both sides of the fault suggests limited lateral offset along the fault. Drilling to the southeast will resume once detailed magnetic data being collected from the continuing airborne survey of the Grasset trend is received and processed.

Drilling continues at Grasset (and on the company's Martiniere gold project 40 km to the west). In addition to the current airborne survey, which covers the Balmoral's Grasset, Fenelon, Jeremie South and Jeremie properties (the 16-kilometre-long Grasset nickel trend), downhole geophysical surveys are also under way in the Grasset area.

Northshore property

The company has been advised that GTA Resources and Mining has elected not to exercise its second option under the Northshore option agreement. As a result, the companies will now form a participatory joint venture to further explore and develop the Northshore property in Ontario. GTA will hold an initial 51-per-cent interest in the joint venture and be the initial joint venture operator.