Balmoral Completes Sale of Fenelon Gold Mine Property

VANCOUVER, BC--(Marketwired - October 19, 2016) - Balmoral Resources Ltd. ("Balmoral" or the "Company") (TSX: BAR) (OTCQX: BALMF) reports that it has received the final cash payment of $2,500,000 and completed the sale of the Fenelon Gold Mine Property to Wallbridge Mining Company Limited (TSX: WM) ("Wallbridge"). Balmoral received, in total, cash payments of $3,500,000, 2,381,575 common shares of Wallbridge and retains a 1% NSR 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 CEO 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+ square kilometre Detour Trend Project in west-central Quebec. The Fenelon Gold Mine Property is located approximately 7 kilometres west of Balmoral's Grasset Ni-Cu-Co-PGE deposit. Infrastructure upgrades during the proposed development of Fenelon have potential to positively impact the outlook for Grasset and Balmoral's on-going 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. ("GTA") (TSX VENTURE: GTA) that the Phase 2 summer 2016 drill program on the Northshore Gold Property near Schreiber, Ontario has been completed.

This Phase 2 program was designed to follow-up on the positive results from the Phase 1 program (see NR16-17, Aug. 22, 2016) which included intercepts of 23.73 g/t gold over 9.00 metres and 4.06 g/t gold over 23.00 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 NR13-31, Dec. 10, 2013).