Mr. John Foulkes reports

BALMORAL FILES UPDATED MARTINIERE TECHNICAL REPORT, ANNUAL INFORMATION FORM AND 2016 FINANCIAL RESULTS

Balmoral Resources Ltd. has filed an updated technical report for the Martiniere property, part of the Detour Trend project in Quebec. As well Balmoral's audited financial statements, management's discussion and analysis, and annual information form for the year ended Dec. 31, 2016, have been released. For details of the company's year-end filings and the updated Martiniere property technical report please see the company's filings on SEDAR and the company's website.

2016 highlights

• On the Martiniere gold property exploration and delineation drilling continue to expand the numerous known deposits and zones of gold mineralization on the property. In addition the 2016 program added three new, potentially significant, near-surface high-grade gold discoveries to the expanding inventory on the property:
  • At the Bug South deposit drilling rapidly expanded the high-grade core of the deposit with intercepts highlighted by 14.08 grams per tonne over 12.56 metres (see NR16-08) and 6.30 g/t gold over 11.58 metres (NR17-02). Results continue to demonstrate broad, near-surface zones of gold mineralization surrounding this higher-grade core highlighted by hole MDE-16-218 which returned 115.45 metres grading 1.40 g/t gold (NR16-19) starting at less than 75-metre vertical depth.
  • At Bug North drilling successfully extended the deposit down plunge for an additional 150 metres with a high-grade intercept of 11.71 g/t gold over 6.06 metres (NR17-01); the deposit remains open down plunge.
  • The vertical extent of the Lower Steep deposit was doubled extending the deposit to a vertical depth of 550 metres. The same holes continued to intersect high-grade gold mineralization in the footwall to the Lower Steep deposit to a vertical depth of 740 vertical metres with only two holes to date extended to these depths (NR17-01).
  • New discoveries to the east of the Bug Lake gold trend included 4.51 g/t gold over 26.90 metres from the 221 zone (NR16-20); 10.51 g/t gold over 5.80 metres (NR17-01) in the sparsely tested east-central portion of the property; and 6.25 g/t gold over 11.66 metres in the most southeasterly hole drilled to date (NR17-03).
  • Drilling also expanded, to 750 metres, the known strike extent of gold mineralization along the Finger Lake fault system which remains open in all directions.
• The company published an initial resource estimate for the Grasset nickel-copper-cobalt-platinum-palladium (Ni-Cu-Co-Pt-Pd) deposit in March of 2016 (see NR16-04). The resource estimate outlined a high-grade core to the deposit of 3.45 million tonnes grading 1.56 per cent nickel, 0.17 per cent copper, 0.03 per cent cobalt, 0.34 g/t platinum and 0.84 g/t palladium. The Grasset deposit remains open down dip below the 500-vertical-metre level for future expansion with additional testing subject to a recovery in the nickel market.
• On the Detour East property the first drill program by Balmoral targeting the Lower Detour structural zone was successful in extending the historic Lynx gold zone down plunge. The company also completed a large geophysical program targeting the northeastern quadrant of the property along a six-kilometre-long section of the Detour gold mine host structure -- the Sunday Lake deformation zone -- which identified multiple targets for drill testing in 2017.
• During 2016 the company acquired, by staking, the Hwy 810 property located northeast of the operating Casa Berardi gold mine and south of the Detour gold trend project. This large (250 square kilometres) sparsely explored property exhibits structural similarities to operating gold deposits located east of Rouyn-Noranda, Que., including the world-class LaRonde gold deposit. Highway 810 will see its first exploration by Balmoral in 2017.
• On the financial front the company closed a $7.1-million bought deal flow-through financing on June 30, 2016, and announced the completion of the $3.7-million sale of the Fenelon mine property to Wallbridge Mining on Oct. 19, 2016. As a result the company entered 2017 in a strong financial position with the proposed 2017 program fully financed.
• The board of directors has approved a minimum 25,000-metre drill program for 2017 which is under way with initial results anticipated from the shallow testing of the Bug South gold deposit on the Martiniere property within the next several days.

Financial results -- year ended Dec. 31, 2016

As at Dec. 31, 2016, the company had working capital of $10,601,748, which included cash and cash equivalents of $10,559,915. This compares with working capital of $7,663,759, including cash and cash equivalents of $9,173,010, at Dec. 31, 2015.

During the year ended Dec. 31, 2016, the company had a net loss of $1,052,653, compared with a net loss of $122,832 for the year ended Dec. 31, 2015. The net loss comprises general administrative expenses of $2,834,941 and foreign exchange losses of $6,362 offset by interest income of $91,354, gains on sale of marketable securities of $46,404, and deferred income tax recovery of $1,650,892. The increase in the loss as compared with 2015 is principally due to an increase on share-based payments which increased to $838,977 from $104,238 in the last fiscal year as a result of the grant of 2.56 million stock options at a weighted average fair value of 63 cents and the vesting of certain options granted in 2015.

During the year ended Dec. 31, 2016, the company incurred $7,362,351 of qualified flow-through financed exploration expenditures, which fulfilled its commitments pursuant to the flow-through share financing which closed on Oct. 28 and Nov. 18, 2015, and partially fulfilled its commitment to the flow-through financing closed on June 30, 2016. As at Dec. 31, 2016, $5,121,154 of qualifying expenditures remains to be incurred by December, 2017. The company expects to fully meet this obligation.

Shareholders may receive, upon request and free of charge, a hard copy of the company's audited financial statements.

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 aside from the disclosure related to the Grasset Ni-Cu-Co-Pt-Pd deposit. The latter is supported by a technical report prepared by Pierre-Luc Richard (PGeo) and Carl Pelletier (PGeo) which is available for review on SEDAR or on the company's website. 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.

About Balmoral Resources Ltd.

Balmoral is a well-financed, Canadian-based company 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 Ni-Cu-Co-Pt-Pd deposit and numerous additional base metal occurrences. Employing an aggressive, drill-focused exploration style in one of the world's pre-eminent geological and 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.