Mr. Darin Wagner reports

BALMORAL COMPLETES SALE OF FENELON GOLD MINE PROPERTY

Balmoral Resources Ltd. has received the final cash payment of $2.5-million and completed the sale of the Fenelon gold mine property to Wallbridge Mining Company Ltd. Balmoral received, in total, cash payments of $3.5-million, 2,381,575 common shares of Wallbridge and retains a 1-per-cent net smelter return royalty on all future production from the property.

"We are pleased to have completed the sale, topping up our treasury in a non-dilutive manner to our shareholders, and look forward to participating through our share position and royalty interest in the future of the Fenelon gold mine property," said Darin Wagner, president and chief executive officer of Balmoral.

The Fenelon gold mine property is a 10.5-square-kilometre subdivision of Balmoral's larger Fenelon property which forms part of the 700-plus-square-kilometre Detour Trend project in west-central Quebec. The Fenelon gold mine property is located approximately seven kilometres west of Balmoral's Grasset Ni-Cu-Co-PGE (nickel-copper-cobalt-platinum-group-element) deposit. Infrastructure upgrades during the proposed development of Fenelon have potential to positively impact the outlook for Grasset and Balmoral's continuing exploration activities throughout its extensive holdings along the Detour gold trend.

Northshore property update

Balmoral has been advised by partner GTA Resources and Mining Inc. that the phase 2 summer 2016 drill program on the Northshore gold property near Schreiber, Ont., has been completed.

This phase 2 program was designed to follow up on the positive results from the phase 1 program (see news release dated Aug. 22, 2016) which included intercepts of 23.73 grams per tonne gold over nine metres and 4.06 g/t gold over 23 metres from the Audney and Caly veins system located in the core of the Afric gold zone. Drilling also tested the nearby Gino vein system which appears to parallel the trend of the former producing Northshore mine on the property. Previous testing of the Gino vein indicated the presence of high-grade gold mineralization, including intercepts of 46.40 g/t gold and 41.60 g/t gold over 1.00-metre core lengths (see news release dated Dec. 10, 2013).

The Northshore property is a joint venture between Balmoral and GTA. GTA is the current operator of the joint venture. Prior to the commencement of the 2016 summer program, Balmoral held a 48.6-per-cent interest in the Northshore property. Partial funding for the current program will come through the Ontario government's Junior Exploration Assistance Plan (JEAP), with GTA providing the balance of the financing.

Qualified person

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, on behalf of Balmoral, reviewed the previous work programs on the Northshore, visited the properties on multiple occasions, discussed and reviewed the results with senior on-site geological staff including the qualified person for GTA and reviewed the information provided to the company by GTA. All reported intercepts are reported as core lengths and not true widths. At this time there are insufficient drill data to accurately calculate true dimensions.

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