Balmoral Commences 25,000 Metre Drill Program Focussed on Expanding the Bug Lake Gold Deposits, Martiniere Property, Quebec - Seite 2

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 hanging wall to the Bug South Deposit. The discovery intercept of 26.90 metres grading 4.51 g/t gold included two higher grade sub-intervals 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, 300-500 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 sub-parallel 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 (43.27-50.45 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 (56.93-73.47 metres) and returned anomalous gold mineralization grading 0.17 g/t gold over 16.54 metres.