VANCOUVER, BC--(Marketwired - January 23, 2017) - Balmoral Resources Ltd. ("Balmoral" or the "Company") (TSX: BAR)(OTCQX: BALMF) today reported that the Bug South gold deposit on its Martiniere Property in Quebec continues to return broad intersection of high grade gold mineralization and show good continuity between sections. Results were released from seven holes testing Bug South completed during the fall program and were highlighted by:

41.95m grading 3.24 g/t gold, including 11.58m grading 6.30 g/t gold from the Upper Bug Zone -- hole MDE-16-246B

13.93m grading 4.07 g/t gold from the Upper Bug Zone -- hole MDE-16-250

10.13m grading 7.34 g/t gold, including 5.34m grading 13.54 g/t gold from the Hanging Wall Zone -- hole MDE-16-247

13.79m grading 2.80 g/t gold, including 2.22m grading 16.33 g/t gold from the 221 Zone -- hole MDE-16-247

The Upper Bug Zone of the Bug South deposit continues to exhibit excellent continuity ranging in down-hole thickness in the holes released today from 5.83 to 88.36 metres. The Upper Bug Zone continues to exhibit a well-defined, south-southeast plunging area of enhanced thickness and grade. Updated cross-sections for the Bug South deposit featuring the results of the holes released today are available at http://www.balmoralresources.com. Strong gold values also continue to be intersected throughout the deposit area in the Hanging Wall Porphyry ("HWP"), Hanging Wall and recently discovered 221 Zones.

Hole           Northing Easting  Dip       From     To       Interval* Gold  Zone
Number             (Degrees) (Metres) (Metres) (Metres)  (g/t)  
MDE-16-244     2+20S    1+40W    -51       98.08    102.64   4.56      0.34  HWP
               206.04   226.83   20.79     2.16  Hanging Wall
including             206.04   211.51   5.47      5.63  "
which includes        210.32   211.51   1.19      16.65 "
               297.92   303.75   5.83      1.27  Upper Bug
including             299.17   300.50   1.33      3.53  "
               346.47   354.18   7.71      0.68  Lower Bug
MDE-16-245     1+75S    2+40W    -48       52.64    62.33    9.69      0.18  Zn-Pb Zone
               88.05    176.41   88.36     1.07  Upper Bug
including             127.83   128.38   0.55      6.70  "
and                   156.64   164.41   7.77      2.99  "
               210.90   220.68   9.78      1.20  Lower Bug
including             213.31   214.12   0.81      6.06  "
MDE-16-246B    2+55S    1+20W    -51       256.05   334.35   78.30     1.94  Upper Bug
includes              281.68   282.35   0.67      6.41  "
and                   292.40   334.35   41.95     3.24  "
which includes        313.07   324.65   11.58     6.30  "
which includes        316.50   317.08   0.58      19.40 "
and                   318.95   319.69   0.74      11.60  
and                   323.57   324.65   1.08      33.91  
and                   331.58   332.43   0.85      62.30  
               345.42   348.95   3.53      4.37  Lower Bug
including             347.59   348.26   0.67      18.05 "
MDE-16-247     1+75S    1+35W    -51       137.28   151.07   13.79     2.80  221 Zone
including             144.74   146.96   2.22      16.33 "
               190.83   200.96   10.13     7.34  Hanging Wall
including             192.71   198.05   5.34      13.54 "
which includes        192.71   194.00   1.29      47.50 "
               311.87   338.00   26.13     0.64  Upper Bug
including             337.00   338.00   1.00      4.66  "
MDE-16-248     1+20S    2+40W    -51       103.96   150.19   46.23     0.98  Upper Bug
including             122.75   143.37   20.62     1.88  "
which includes        122.75   124.20   1.45      5.39  "
and                   129.48   130.80   1.32      7.77  "
               161.31   172.79   11.48     0.37  Upper Bug
               198.50   206.02   7.52      0.48  Lower Bug
MDE-16-249     1+25S    1+95W    -51       230.60   244.98   14.38     0.72  Upper Bug
MDE-16-250     2+65S    2+20W    -51       114.21   132.96   18.75     0.95  HWP
including             122.28   123.76   1.48      9.73  "
               172.27   201.20   28.93     2.15  Upper Bug
including             174.14   188.07   13.93     4.07  "
which includes        177.44   184.69   7.25      5.40  Upper Bug
which includes        183.95   184.69   0.74      14.40 "

* 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 they are estimated to range between approximately 70 and 77% of true thickness. All values presented uncapped.

The Company also intersected a new zone of zinc-lead-silver-gold veining at shallow depth in hole MDE-16-245. The 5.36 metre wide interval between 54.79 and 60.15 metres down-hole returned an average grade of 2.80% zinc, 2.67% lead, 99.11 g/t silver and 0.19 g/t gold. This is the first time that mineralization of this nature (Zn-Pb-Ag-Au) has been intersected on the Martiniere Property, although high-grade silver mineralization is known from the Martiniere East area. This new discovery appears to cross-cut the local stratigraphy. Its origin and relationship to the Bug Lake gold deposits and/or the VMS system in the Martiniere East area is currently unknown.

Additional results from the fall drill program on the Martiniere Property and on Balmoral's Detour East Property remain pending. Work on the winter road into the Martiniere camp continues and, weather conditions permitting, drilling is expected to commence on the property in early February.

Balmoral will have drill core from the Bug South gold deposit on display in the core shack, booth 820, at the 2017 Mineral Exploration Round-Up in Vancouver, B.C. on January 23rd and 24th, and at the Prospectors and Developers Association convention in Toronto, Ontario on March 5 and 6.

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 Quebec based 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.