Mr. Darin Wagner reports

BALMORAL INTERSECTS 4.51 G/T GOLD OVER 26.90 METRES IN NEW DISCOVERY ADJACENT TO BUG SOUTH DEPOSIT, MARTINIERE PROPERTY, QUEBEC

Balmoral Resources Ltd. has released additional results from the summer/fall drill program on its wholly owned Martiniere property in Quebec. Results were highlighted by the discovery of a new high-grade gold-bearing vein zone in the hangingwall to the Bug South gold deposit. This new discovery was intersected in hole MDE-16-121, approximately 90 metres above the Upper Bug zone of the Bug South deposit. It returned 4.51 grams per tonne gold over 26.90 metres, including separate intercepts of 10.89 g/t gold over 6.80 metres and 15.89 g/t gold over 2.80 metres.

In total, results from eight holes were reported, five from the Bug South deposit area (MDE-16-221, 222, 223, 226 and 227) and three from the Bug Southeast zone and extension. The gold-mineralized intercepts in holes MDE-16-224 and MDE-16-228 extend the strike length of the gold-mineralized system along the Bug Lake gold trend by approximately 200 metres with it remaining open to the southeast, and to depth on all sections, for further expansion.

Drill hole MDE-16-225 tested the Bug Southeast zone and returned 1.74 g/t gold over 17.16 metres, including two higher-grade subintervals of six g/t gold over 1.72 metres and 7.40 g/t gold over 1.71 metres. MDE-16-225 tested beneath hole MDE-16-208, drilled during the winter program, which returned 1.23 g/t gold over 25.02 metres, including two similar higher-grade subintervals of 8.60 g/t gold over 1.45 metres and 12 g/t gold over one metre (see news release dated June 8, 2016).

Results from an additional 42 drill holes completed on the Martiniere property during the summer/fall program remain pending, including numerous follow-up holes to the recently announced intercept of 115.45 metres grading 1.40 g/t gold (see news release dated Sept. 7, 2016) from the Bug South deposit.

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

MDE-16-221          62.00      68.65       6.65       1.56
including           65.60      67.00       1.40       5.82
                   110.90     137.80      26.90       4.51
including          112.20     115.00       2.80      15.89
and                122.20     129.00       6.80      10.89
including          125.90     129.00       3.10      22.64
                   201.00     226.30      25.30       1.15
including          220.40     222.60       2.20       3.39
                   252.30     268.00      15.70       1.07
including          257.30     257.90       0.60      11.20
and                267.00     268.00       1.00       4.54
MDE-16-222         236.50     251.65      15.15       0.20
                   316.40     326.15       9.75       1.17
including          325.20     326.15       0.95       5.21
                   332.65     339.65       7.00       0.69
                   397.05     409.20      12.15       2.02
including          405.50     409.20       3.70       3.44
MDE-16-223         257.60     259.90       2.30       0.83
MDE-16-224         142.00     162.00      20.00       0.15
MDE-16-225         128.56     145.72      17.16       1.74
including          131.03     132.75       1.72       6.00
and                138.26     144.00       5.74       2.84
which
includes           142.29     144.00       1.71       7.40
MDE-16-226         124.51     132.76       8.25       1.17
including          125.49     126.18       0.69       9.14
                   153.69     166.13      12.44       0.12
                   193.58     222.98      29.40       0.22
MDE-16-227         189.72     202.50      12.78       0.56
MDE-16-228          38.16      49.24      11.08       0.42
                    59.12      64.11       4.99       0.76
including           59.12      59.53       0.41       5.15

Note
* 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 the reported intercepts are estimated to 
range between approximately 60 and 80 per cent of true 
thickness save for the new vein zone discovered in hole 
MDE-16-221. All values presented uncapped.
 

Geological interpretation

An anastomosing, relatively low sulphide vein zone was intersected in hole MDE-16-221 between 110.90 and 137.80 metres, in the hangingwall to the Bug South deposit. The style of mineralization is distinct (sulphide, silica, alteration) from that typically associated with the Bug gold zones. The veins comprising the zone exhibit angles to the axis of the drill core ranging from five to 40 degrees, with the majority trending approximately 30 degrees to core axis. This suggests a more east-west or northeast-southwest strike to the new zone versus the north-south strike of the Bug gold trend in this area. Additional testing of this new discovery to determine its true strike, dip, extent and estimated true thickness will be necessary and is clearly warranted based on the high-grade gold results.

Drill holes MDE-16-221, 223, 226 and 227 were drilled along the northern flank of the Bug South deposit and, similar to other holes in this area, intersected anomalous gold mineralization in the Upper Bug zone over narrower width than holes drilled 50 to 75 metres to the south in the core of the deposit. Hole MDE-16-222 tested the Bug South deposit down plunge to the south near the feature which offsets the Bug South and Bug Southeast segments of the trend.

In the Bug Southeast area anomalous gold-mineralized intercepts, ranging in downhole width from 4.99 to 20.00 metres, were intersected on all three holes completed. Drilling throughout this area remains widely spaced with additional drilling required to more fully evaluate the potential of this portion of the trend. Results from five additional holes drilled along the Southeast zone and its potential extensions remain pending.

Detour East property

Drill testing on the Detour East property has commenced. Six holes are planned for the Detour East property to provide first-pass evaluation of four target areas, including potential extensions to the Lynx and Rambo gold zones. As well an induced polarization (IP) geophysical survey is under way to aid in future drill targeting in the northeastern quadrant of the property. The Detour East property stretches for approximately 20 kilometres east from the Ontario-Quebec border and is centred approximately 25 kilometres from the company's Martiniere property. It borders the holdings of Detour Gold and is located along the two regional deformation zones that host the Detour Lake gold deposit and the recent 58N discovery.

The summer/fall 2016 drill program on the Detour Trend project is anticipated to be completed this week with logging and sampling expected to continue through month-end.

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.

We seek Safe Harbor.