Mr. Darin Wagner reports

BALMORAL COMMENCES 25,000 METRE DRILL PROGRAM FOCUSSED ON EXPANDING THE BUG LAKE GOLD DEPOSITS, MARTINIERE PROPERTY, QUEBEC

Balmoral Resources Ltd.'s 2017 drilling program is now under way with the primary focus being the continued expansion and delineation of the Bug Lake gold deposits and other recent high-grade, near-surface gold discoveries on its Martiniere property, part of the Detour Trend project, in Quebec. It is anticipated that a minimum of 25,000 metres of drilling will be completed this year along the Bug Lake gold trend, with expansion of the size of the program as the year progresses being a strong possibility given the excellent results from the fall 2016 program.

"Our summer/fall 2016 drill program more than doubled the known footprint of the Bug South and Bug Lower Steep gold deposits and continued to extend the Bug North deposit down plunge," said Darin Wagner, president and chief executive officer of Balmoral. "Those results included some of the broadest gold-mineralized intercepts from the property to date from our expansion drilling of the Bug South deposit, which is the initial focus of drilling this winter."

The Bug South gold deposit is one of three deposits now recognized along the length of the Bug Lake gold trend located central to the Martiniere property. The summer/fall program led to the identification of a broad central core to the Bug South deposit located at depths of less than 275 vertical metres and highlighted by intercepts of:

• 115.45 metres grading 1.40 grams per tonne gold including 10.75 metres grading 3.73 g/t gold (see NR16-19);
• 88.36 metres grading 1.07 g/t gold including 7.77 metres grading 2.99 g/t gold (see NR17-02);
• 78.17 metres grading 1.65 g/t gold including 17.00 metres grading 4.50 g/t gold (see NR16-24);
• 41.95 metres grading 3.24 g/t gold including 11.58 metres grading 6.30 g/t gold (see NR17-02);
• 35.16 metres grading 2.16 g/t gold including 9.08 metres grading 7.10 g/t gold (see NR16-24);
• 32.29 metres grading 3.39 g/t gold including 18.26 metres grading 5.41 g/t gold (see NR16-19);
• 25.90 metres grading 2.73 g/t gold including 10.75 metres grading 4.17 g/t gold (see NR16-19).

To date the Bug South deposit has been intersected for approximately 300 metres along strike, to a vertical depth of approximately 275 metres and down plunge for approximately 425 metres. It remains open to depth and down plunge. One drill is currently testing the Bug South deposit with a second slated to begin turning over the next several days.

Drilling will also target the rapidly expanding Bug Lower Steep gold deposit which has now been intersected for over 850 metres down plunge and which, like the Bug South deposit, remains open to depth and down plunge. The sparsely drilled Lower Steep deposit has demonstrated excellent potential to rapidly add to the overall potential of the gold system at Martiniere.

The current winter drill program will also follow up on three high-grade, near-surface gold discoveries made during the fall program. The first of these three targets, the 221 zone, has already been intersected in several holes and occurs in the hangingwall to the Bug South deposit. The discovery intercept of 26.90 metres grading 4.51 g/t gold included two higher-grade subintervals grading 15.89 g/t gold over 2.80 metres and 10.89 g/t gold over 6.80 metres (see NR16-20).

The other two new discoveries occur approximately 300 metres to the east of the Bug Lake gold trend. The first, from hole BLD-16-03, returned 5.80 metres grading 10.51 g/t gold (see NR17-01). The second discovery is located approximately 1,000 metres to the south and returned 11.58 metres grading 6.25 g/t gold (see NR17-03). Both intercepts occur at depths of less than 100 vertical metres and are open in all directions. This area, 300 to 500 metres east of the Bug Lake trend, is virtually untested and based on the recent intersections appears to have good potential to add meaningful zones of gold mineralization in the near surface to the project.

Finger Lake (Lac du Doigt) fault corridor

The north-south-oriented Bug Lake gold trend is located between two east-west-trending deformation/fault zones, the Sunday Lake deformation zone to the south, host to the large Detour Lake gold mine located 45 kilometres to the west, and the subparallel Finger Lake fault corridor to the north. The Finger Lake fault corridor was first identified by Balmoral in late 2014.

Limited drill testing along the Finger Lake fault corridor during the 2016 summer/fall drill program successfully extended the known gold mineralization along the corridor with an intercept of 1.28 g/t gold over 7.18 metres (43.27 to 50.45 metres downhole) including a higher-grade core of 3.46 g/t gold over 2.37 metres in hole MDX-16-55. A second zone of weaker deformation and quartz-tourmaline veining occurs directly below (56.93 to 73.47 metres) and returned anomalous gold mineralization grading 0.17 g/t gold over 16.54 metres.

MDX-16-55 is the westernmost hole drilled to date along the Finger Lake corridor. Three holes across 750 metres of this structure have all successfully intersected gold mineralization of a similar nature which is open in all directions.

"We continue to be very intrigued by the evolving potential along the Finger Lake fault system," said Mr. Wagner. "The style of mineralization suggests a favourable environment which has been tested by only three holes to date, is open in all directions, and which has shown evidence for good gold grades and thicknesses. Additional testing is currently being planned for the summer 2017 season."

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 and 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 Ltd.

Balmoral is a well-financed, Canadian-based company actively delineating and expanding a series of high-grade gold deposits on its Martiniere property located within the prolific Abitibi greenstone belts in Quebec, Canada. The Martiniere property is just one of several large, highly prospective properties comprising the company's wholly owned, 1,000-square-kilometre Detour Trend project.

Employing an aggressive, drill-focused exploration style in one of the world's pre-eminent mining jurisdictions, Balmoral is following an established formula with a goal of maximizing shareholder value through discovery and definition of high-grade, Canadian gold and base metal assets.

We seek Safe Harbor.