Balmoral Enters Into Agreement to Receive Minimum $3.6 Million Through Sale of Non-Core Asset

VANCOUVER, BC--(Marketwired - May 25, 2016) -  Balmoral Resources Ltd. ("Balmoral" or the "Company") (TSX: BAR) (OTCQX: BALMF) today reported the Company has entered into a Letter of Intent (the "LOI") to sell its interest in the Discovery Zone Property (the "Property"), a 10.5 square kilometre subdivision of the current, larger Fenelon Property, to Wallbridge Mining Company Limited ("Wallbridge") (TSX: WM). The Fenelon Property forms part of Balmoral's 700⁺ square kilometre Detour Trend Project located in west-central Quebec.

Under the terms of the LOI Balmoral will receive an immediate payment of 2,381,575 common shares of Wallbridge, cash payments totaling either $3.4 or $3.5 million dollars over the next 60 to 120 days (see details below), and will retain a 1% Net Smelter Return Royalty ("NSR") on all future production from the Property.

The benefits of the sale, should it be completed, to the shareholders of Balmoral include:

• Near term, dilution free, infusion of $3.4-3.5 million "hard" dollars from the sale of a non-core, inactive asset; which if spent on exploration on the Company's Detour Trend Project would be eligible for a 28% tax credit to the Company through current exploration incentive programs in Quebec.
• "Up-side" leverage to future exploration activities on the Discovery Zone Property, and the other activities of Wallbridge, through a share position in Wallbridge. The 2,381,575 shares represent approximately 1.3% of the currently issued and outstanding shares of Wallbridge.
• Potential for future cash flow through the retained 1% NSR on the Discovery Zone Property
• Potential for near term enhancements to the local infrastructure network proximal to the Company's Grasset Nickel-Copper-Cobalt-PGE deposit and recent gold discoveries

The Discovery Gold Zone was last targeted by the Company in 2011. The Zone has currently flooded but established underground ramp access and was bulk sampled in 2004 by previous operators. Over 50,000 metres of surface and underground drilling has defined a number of narrow, but high-grade, gold mineralized veins from the bedrock surface to a depth of approximately 250 vertical metres. Additional details on the Fenelon Property and the Discovery Zone are available on the Company's website at www.balmoralresources.com.