Mr. Darin Wagner reports

BALMORAL INTERSECTS 115.45 METRES GRADING 1.40 G/T GOLD AS BUG SOUTH DEPOSIT BROADENS RAPIDLY AT SHALLOW DEPTH MARTINIERE PROPERTY, QUEBEC

Continuing drilling has demonstrated a rapid increase in the width of the Bug South gold deposit on Balmoral Resources Ltd.'s Martiniere property in Quebec.

Drill holes MDE-16-217 to MDE-16-220 returned gold-mineralized downhole intercepts ranging from 25.90 metres to 115.45 metres at average grades of 0.96 to 2.73 grams per tonne gold from the Upper Bug zone (see associated table). The four holes intersected the Upper Bug zone at vertical depths of 110 to 145 metres, 50 to 100 metres below and lateral to previous drilling. The rapid increase in the width of the gold-mineralized zone is apparent in an image on the company's website, a cross-section through holes MDE-16-217 and MDE-16-218. The deposit remains open to depth and down plunge.

Gold mineralization within the Bug South deposit, while primarily contained within the Upper Bug zone, is also associated with the Lower Bug, HWP and zinc zones. As with previous drilling the broader gold-mineralized intervals contain higher-grade subzones highlighted by the following intercepts:

• 5.41 g/t gold over 18.26 metres (including 9.34 g/t gold over 8.49 metres) from the Upper Bug -- HWP wedge in hole MDE-16-216;
• 22.20 g/t gold over 3.64 metres from the Lower Bug zone in hole MDE-16-214;
• 4.17 g/t gold over 10.75 metres from the Upper Bug zone in hole MDE-16-219;
• 3.73 g/t gold over 10.75 metres from the Upper Bug zone in hole MDE-16-218;
• 8.79 g/t gold over 2.83 metres from the Upper Bug zone in hole MDE-16-215.

"The rapid expansion of the Bug South deposit and the strengthening of the mineralized system apparent from today's results are potential game changers for the Bug Lake South area. With Bug North and Martiniere West there are now three near-surface gold deposits on the Martiniere property. All three are open at relatively shallow depths for expansion, and a number of other prospective zones and exploration targets can add to this list," said Darin Wagner, president and chief executive officer of Balmoral. "Permits for a series of holes which will allow for the continued testing of the Bug South deposit along strike from, and to depth beneath, the holes announced today were recently received and one drill is already active in this area. A second is anticipated to move from testing the Lower Steep zone to this area within the next several days."

 
Hole               From         To  Interval*       Gold
No.            (metres)   (metres)   (metres)      (g/t)

MDE-16-214        87.95      94.95       7.00       0.38
                 121.36     139.53      18.17       1.40
including        125.42     125.88       0.46       5.18
and              130.85     134.15       3.30       3.32
                 161.96     165.60       3.64      22.20
including        163.10     164.64       1.54      51.34
MDE-16-215        53.00      59.26       6.26       0.46
                  92.78      115.6      22.82       2.55
including         94.35      95.74       1.39       4.36
and               98.72     103.18       4.46       2.92
and              107.30     114.65       7.35       4.22
which
includes         111.82     114.65       2.83       8.79
                 133.38     136.16       2.78       0.88
MDE-16-216       154.07     157.20       3.13       0.20
                 206.40     238.69      32.29       3.39
including        206.40     224.66      18.26       5.41
which
includes         210.19     211.92       1.73       5.01
and              216.17     224.66       8.49       9.34
which
includes         216.17     220.98       4.81      11.97
                 255.91     256.84       0.93       2.88
MDE-16-217        75.38     155.55      80.17       0.96
including         86.40      86.77       0.37       3.27
and              101.95     102.60       0.65       4.57
and              116.09     117.02       0.93       3.10
                    Lower Bug zone incompletely sampled;
                                                 pending
                 216.85     221.00       4.15       0.59
MDE-16-218        74.05     189.50   115.45**       1.40
including        148.70     189.50      40.80       2.82
which
includes         150.00     162.20      12.20       3.33
including        151.00     152.70       1.70       5.17
and              160.50     162.20       1.70       5.77
and
including        177.25     188.00      10.75       3.73
including        177.25     178.30       1.05       8.25
and              186.40     188.00       1.60       8.03
                 222.80     227.35       4.55       1.20
including        222.80     225.05       2.25       2.18
                 257.00     260.00       3.00       0.56
MDE-16-219        71.05      72.80       1.75       7.45
                  84.65      87.00       2.35       0.49
                 166.55     192.45      25.90       2.73
including        181.25     192.00      10.75       4.17
                 209.40     213.30       3.90       0.20
                 277.80     278.20       0.40      14.90
MDE-16-220        97.25     105.65       8.40       0.30
                 139.33     170.30      30.97       1.28
including        153.55     159.30       5.75       3.36
                 178.71     180.65       1.94       1.51

Notes
* Reported drill intercepts are not true widths. At 
this time there are insufficient data with respect to 
the shape of the mineralization to calculate true 
orientations in space although they are estimated 
to range between approximately 60 and 77 per cent 
of true thickness. All values presented uncapped.
** Three internal intervals within this composite, 
107.50 to 110.70 metres, 121.00 to 125.00 metres 
and 139.20 to 147.20 metres (an aggregate of 12.20 
metres), were not initially sampled and have been 
assigned zero value for purposes of computing the 
composite. Subsequent visual inspection of the core, 
and nearby hole MDE-16-217, by the company's 
qualified person suggests the mineralized system 
continues through each of these intervals. These 
intervals are currently being sampled and analyzed 
and the final results will be reported in an upcoming 
release.

Thirty additional holes have now been completed on the Martiniere property with results pending and two drills active. Drilling will continue to focus on the expansion of the Bug South gold deposit in the near-term. Testing of several gold exploration targets on the company's nearby Detour East property is still tentatively slated for later in September pending receipt of drill permits.

Quality control

Darin Wagner, PGeo, president and chief executive officer of the company, is the non-independent qualified person for the technical disclosure contained in this news release. Mr. Wagner has supervised the work programs on the Martiniere property since inception, visited the property on multiple occasions, examined the drill core from the holes summarized in this release, discussed, reviewed the results with senior on-site geological staff, and reviewed the available analytical and quality control results.

Balmoral has implemented a quality control program for all of its drill programs to ensure best practice in the sampling and analysis of the drill core, which includes the insertion of blind blanks, duplicates and certified standards into 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 Martiniere field camp in central Quebec. Drill core samples are transported in sealed bags to ALS Minerals' Val d'Or, Que., analytical facilities. Gold analyses are obtained via industry-standard fire assay with atomic absorption finish using 30-gram aliquots. For samples returning greater than five g/t gold follow-up fire assay analysis with a gravimetric finish is completed. The company has also requested that any samples returning greater than 10 g/t 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.

About Balmoral Resources

Balmoral is actively delineating and expanding multiple targets along the Bug Lake gold trend on its wholly owned, 700-square-kilometre Detour trend project in Quebec, Canada. The project also hosts Balmoral's Grasset nickel-copper-cobalt-platinum-group-element deposit and numerous additional base metal occurrences.

We seek Safe Harbor.