Mr. Darin Wagner reports

BALMORAL RESOURCES LTD (TSX:BAR) CONTINUES TO EXTEND GRASSET NI-CU-PGE DISCOVERY

Balmoral Resources Ltd. has released the final results of the summer/fall drill program on the company's wholly owned Grasset property in Quebec. Drilling has now extended the Horizon 3 nickel-copper-platinum-group-element zone to a depth of 400 vertical metres, and confirmed 400 metres of strike extent along Horizon 3 with the zone remaining open to depth and along strike. Results were highlighted by hole GR-14-62 which returned 57.11 metres grading 1.03 per cent nickel, 0.13 per cent copper, 0.20 gram per tonne platinum and 0.55 gram per tonne palladium, including 16.87 metres grading 1.42 per cent nickel, 0.21 per cent copper, 0.29 gram per tonne platinum and 0.90 gram per tonne palladium. This interval also includes a very high-grade massive sulphide intercept which yielded 9.88 per cent nickel, 2.33 per cent copper, 2.45 grams per tonne platinum and 6.13 grams per tonne palladium over 0.41 metre. Drilling of the Horizon 3 discovery is anticipated to resume in January, 2015.

Drilling in January, 2015, will focus on the vertical expansion of the Horizon 3 discovery, testing the northwest and southeast panels for fault offset, along strike extensions of Horizon 3 and initial testing of high-priority targets chosen from over 50 EM anomalies outlined by the recently completed airborne mag/EM survey along the Grasset trend (see the company's news release dated Dec. 11, 2014). The board of directors of the company has approved a $4.5-million exploration budget for the first six months of 2015. The majority of that budget will be focused on expansion of the Horizon 3 discovery and testing of additional targets along the 16-to-20-kilometre-long Grasset trend.

Hangingwall gold mineralization

Drilling at Grasset continues to intersect a number of intervals of anomalous to locally high-grade gold mineralization, developed in sheared and strongly altered volcanic rock in the hangingwall to, or within the uppermost portion of, the Grasset ultramafic complex. Results from holes GR-14-66 and GR-14-68 indicate a potential broadening of the gold mineralized package at depth.

Exploration holes

Seven exploration holes, outside the Horizon 3 discovery area, were completed on the Grasset property during late 2014. Six holes were collared in the Lac Hugo area located 18 kilometres east of the Grasset Ni-Cu-PGE discovery and one hole was collared to test a magnetic anomaly proximal to the Grasset Horizon 3 discovery. The shallow holes completed in the Lac Hugo area targeted geophysical anomalies located proximal to the interpreted eastward continuation of the Sunday Lake deformation zone, host to the Detour gold deposit. Drilling intersected a sequence dominated by mafic volcanic rocks and felsic intrusions in keeping with the company's geophysical interpretations. Several narrow structural zones were observed but no significant gold intercepts were encountered.

The seventh hole of the program was collared to test a magnetic anomaly centred approximately one kilometre east-northeast of the Horizon 3 discovery. This hole collared into a zoned mafic-ultramafic intrusion with certain lithological similarities to the Grasset ultramafic complex, host to the Horizon 3 discovery. This confirms the presence of other mafic to ultramafic intrusions proximal to the Grasset complex and Horizon 3 Ni-Cu-PGE discovery. Further testing of this 1.5-kilometre-long feature will be considered following completion of additional geophysical work.

Corporate update

The company also advises that, effective immediately, John Toporowski has resigned as manager of corporate development. The company would like to thank Mr. Toporowski for his contribution to the success of the company over the past four years. The company has initiated a search for a successor to Mr. Toporowski and currently anticipates filling this position early in 2015.

Qualified person and quality control

Darin Wagner, PGeo, president and chief executive officer of the company, is the non-independent qualified person who has approved the scientific and technical information contained in this news release. Mr. Wagner has supervised the work programs on the Grasset property, visited the property on multiple occasions, has examined the drill core or photos of same from the holes summarized in this release, reviewed the results with senior on-site geological staff and reviewed the available analytical and quality control results.

Balmoral employs a quality control program for all of its drill programs, to ensure best practice in the sampling and analysis of drill core. This includes the insertion of blind blanks, duplicates and certified standards into the sample stream. NQ-sized drill core is saw cut with half of the drill core sampled at intervals based on geological criteria including lithology, visual mineralization and alteration. The remaining half of the core is stored on site at the company's Fenelon field camp in central Quebec. Drill core samples are transported in sealed bags to ALS Minerals Val d'Or, Que., analytical facilities.

Base metal analyses were initially obtained via ICP-AES with both aqua regia and four-acid digestion employed. The two digestion methods show good correlation. Nickel values in excess of 10,000 parts per million are reanalyzed using a sodium peroxide fusion followed by ICP-AES finish. PGE values were obtained via industry-standard fire assay with ICP-AES finish using 30-gram aliquots. Gold analyses are obtained via industry-standard fire assay with atomic absorption finish using 30-gram aliquots. For samples returning greater than five grams per tonne gold follow-up fire assay analysis with a gravimetric finish is completed. The company has also requested that any samples returning greater than 10.00 grams per tonne gold undergo screen metallic fire assay.

Following receipt of assays, visual analysis of mineralized intercepts is conducted and additional analysis may be requested. ALS Minerals is ISO 9001:2008 certified and the Val d'Or facilities are ISO 17025 certified for gold analysis. The company has contracted an independent quality control expert to supervise its quality assurance/quality control program.