(Vancouver, October 17, 2016) Balmoral Resources Ltd. (�Balmoral� or the �Company�) (TSX:BAR; OTCQX: BALMF) today reported additional results from the summer/fall drill program on its wholly-owned Martiniere Property in Quebec. Results were highlighted by the discovery of a new high-grade gold bearing vein zone in the hanging wall to the Bug South gold deposit. This new discovery was intersected in hole MDE-16-121, approximately 90 metres above the Upper Bug Zone of the Bug South deposit. It returned 4.51 g/t gold over 26.90 metres, including separate intercepts of 10.89 g/t gold over 6.80 metres and 15.89 g/t gold over 2.80 metres.

In total results from eight holes were reported, five from the Bug South deposit area (MDE-16-221, 222, 223, 226 and 227) and three from the Bug Southeast Zone and extension. The gold mineralized intercepts in holes MDE-16-224 and MDE-16-228 (see Figure 1) extend the strike length of the gold mineralized system along the Bug Lake Gold Trend by approximately 200 metres with it remaining open to the southeast, and to depth on all sections, for further expansion.

Drill hole MDE-16-225, tested the Bug Southeast Zone and returned 1.74 g/t gold over 17.16 metres, including two higher grade sub-intervals of 6.00 g/t gold over 1.72 metres and 7.40 g/t gold over 1.71 metres. MDE-16-225 tested beneath hole MDE-16-208, drilled during the winter program, which returned 1.23 g/t gold over 25.02 metres, including two similar higher grade sub-intervals of 8.60 g/t gold over 1.45 metres and 12.00 g/t gold over 1.00 metre (see NR16-10; June 8, 2016).

Results from an additional 42 drill holes completed on the Martiniere Property during the summer/fall program remain pending, including numerous follow-up holes to the recently announced intercept of 115.45 metres grading 1.40 g/t gold (see NR16-19; Sept 7, 2016) from the Bug South deposit.

* Reported drill intercepts are not true widths. At this time there is insufficient data with respect to the shape of the mineralization to calculate true orientations in space although the reported intercepts are estimated to range between approximately 60 and 80% of true thickness save for the new vein zone discovered in hole MDE-16-221 (see information below). All values presented uncapped.

Geological Interpretation

An anastomosing, relatively low sulphide, vein zone was intersected in hole MDE-16-221 between 110.90 and 137.80 metres, in the hanging wall to the Bug South deposit. The style of mineralization is distinct (< sulphide, < silica, < alteration) from that typically associated with the Bug Gold zones. The veins comprising the zone exhibit angles to the axis of the drill core ranging from 5 to 40 degrees, with the majority trending approximately 30 degrees to core axis. This suggests a more east-west, or northeast-southwest, strike to the new zone vs. the north-south strike of the Bug Gold Trend in this area. Additional testing of this new discovery to determine its true strike, dip, extent and estimated true thickness will be necessary and is clearly warranted based on the high-grade gold results.

Drill holes MDE-16-221, 223, 226 and 227 were drilled along the northern flank of the Bug South deposit and, similar to other holes in this area, intersected anomalous gold mineralization in the Upper Bug Zone over narrower width than holes drilled 50-75 metres to the south in the core of the deposit. Hole MDE-16-222 tested the Bug South deposit down plunge to the south near the feature which offsets the Bug South and Bug Southeast segments of the Trend.

In the Bug Southeast area anomalous gold mineralized intercepts, ranging in down hole width from 4.99 to 20.00 metres, were intersected on all three holes completed. Drilling throughout this area remains widely spaced with additional drilling required to more fully evaluate the potential of this portion of the Trend. Results from five additional holes drilled along the Southeast Zone and its potential extensions remain pending.

Detour East Property

Drill testing on the Detour East property has commenced. Six holes are planned for the Detour East property to provide first pass evaluation of four target areas, including potential extensions to the Lynx and Rambo gold zones. As well an induced polarization (I.P.) geophysical survey is underway to aid in future drill targeting in the northeastern quadrant of the property. The Detour East property stretches for approximately 20 kilometres east from the Ontario-Quebec border and is centered approximately 25 kilometres from the Company�s Martiniere property. It borders the holdings of Detour Gold and is located along the two regional deformation zones that host the Detour Lake gold deposit and the recent 58N discovery.

The summer/fall 2016 drill program on the Detour Trend Project is anticipated to be completed this week with logging and sampling expected to continue through month end.

Quality Control

Mr. Darin Wagner (P.Geo.), President and CEO 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, 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, Quebec analytical facilities. Gold analyses are obtained via industry standard fire assay with atomic absorption finish using 30 g aliquots. For samples returning greater than 5.00 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 10.00 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. � www.balmoralresources.com

Balmoral is a well-funded, 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-PGE 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.

On behalf of the board of directors of

BALMORAL RESOURCES LTD.

�Darin Wagner�

President and CEO

For further information contact:

John Foulkes, Vice-President, Corporate Development
Tel: (604) 638-5815 / Toll Free: (877) 838-3664
E-mail: jfoulkes@balmoralresources.com