Balmoral Resources Ltd.
TSX VENTURE : BAR

Balmoral Resources Ltd.

July 27, 2011 07:59 ET

Balmoral and GTA Finalize Northshore Property Option Agreement

Due Diligence Grab Samples Return Grades of up to 7,521 g/t (219 oz/t) Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 27, 2011) - Balmoral Resources Ltd. ("Balmoral" or the "Company") (TSX VENTURE:BAR) announced today that the Company and Ontario-based GTA Resources and Mining Inc. ("GTA") (TSX VENTURE:GTA) have entered into an Option Agreement whereby GTA has been granted, subject to the receipt of regulatory approvals, the exclusive right to acquire from Balmoral up to a 70% interest in Balmoral's Northshore Property located in the Hemlo-Schreiber greenstone belt of western Ontario.

"We are pleased to have finalized the Northshore Option Agreement with GTA and look forward to initial results from their exploration of the Property," said Darin Wagner, President and CEO of Balmoral Resources. "The results obtained during their due diligence site review speak to the high-grade gold potential of the Northshore Property."

Due Diligence Sampling

Surface grab samples collected as part of GTA's due diligence review of the Northshore Property returned a number of bonanza grade gold-bearing samples from two northeast trending vein systems near the intersection of the veins and the east-southeast trending Afric Zone. Seven grab samples collected from the first vein returned gold grades ranging from 17.44 g/t (0.51 oz/t) gold to a high of 7,520.91 g/t gold (219 oz/t) (average of the seven samples – 1,369.21 g/t gold or 39.94 oz/t gold). A single sample collected from the second vein located approximately 60 metres to the southeast, and running parallel to Vein 1, returned 371.98 g/t (10.85 oz/t) gold. Several additional spectacular visible gold bearing samples collected from the site were not submitted for assay but pictures of both these samples, and those submitted for assay, are available on the Company's website at www.balmoralresources.com. Note that grab samples are, by nature, selective and are unlikely to accurately represent average grades from the veins sampled or for the property as a whole.

The Option Agreement

Under the terms of the Option Agreement, GTA may earn an initial 51% interest in the Northshore Property by making cash payments to Balmoral of $50,000, issuing in favour of Balmoral 2,500,000 common shares of GTA and incurring a minimum of $2,500,000 in eligible exploration expenditures on the Property over a three year period from receipt of regulatory approval. A cash payment of $10,000, issuance of 1,000,000 shares and a year one exploration expenditure of $350,000 (including the production of a 43-101 technical report) are firm commitments by GTA under the Option Agreement.

Upon exercise of the First Option outlined above, GTA will have the right to elect to proceed with a Second Option, under which GTA would have the ability to earn an additional 19% interest in the Northshore Property by making an additional cash payment of $100,000, issuing an additional 1,000,000 shares in favour of Balmoral upon exercising its right and incurring additional exploration expenditures totaling $3,000,000 over an additional 24 month time frame.

Members of GTA's Board of Directors and exploration team were actively involved with exploration on the Northshore Property when the property was held by Noranda Exploration/Hemlo Gold Mines between 1998 and 2000 and are thus very familiar with the property and its potential.

The Northshore Property is located in Priske township in Ontario, immediately south of the town of Schreiber. The property hosts a number of known zones of gold mineralization including the former producing North Shore Mine and the Afric Zone. Located in the Hemlo-Schrieber greenstone belt, approximately 70 kilometres west of the world class Hemlo gold deposit, the structurally controlled intrusive-hosted gold mineralization on the Northshore Property shares similarities with gold deposits in the Kirkland Lake and West Timmins areas of Ontario.

The Option Agreement will constitute a non-arm's length transaction as defined by the TSXV and B.C. and Ontario Securities Commission as Balmoral and GTA have a director in common. The terms of the Option Agreement have been reviewed and approved by the non-conflicted directors of both Companies as being in the best interests of shareholders. The Option Agreement remains subject to TSXV review and approval.

Quality Control

GTA has provided Balmoral with the following information regarding analysis of the due diligence samples and their quality control procedures. The samples were collected and delivered to Accurassay Laboratories under the care and control of Mr. Robert Duess, Qualified Person for GTA. Gold analysis was performed via standard fire 30 gram fire assay. Samples were initially assayed with an atomic absorption finish and duplicate analyses were then performed with a gravimetric finish (results reported). Accurassay is an ISO 17025 accredited analytical facility. No additional quality control measures other than those undertaken internally by Accurassay were performed.

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 reviewed the historic work on the Northshore Property, visited the property, examined the samples from the due diligence sampling and reviewed the analytical results.

About Balmoral Resources Ltd. – www.balmoralresources.com

Balmoral is a Vancouver-based precious metal exploration and development company focused on district scale gold opportunities in politically favourable jurisdictions in North America. With a philosophy of creating value through the drill bit and with a focus on proven productive precious metal belts, Balmoral is following an established formula with a goal of maximizing shareholder value through discovery.

On behalf of the Board of Directors of

BALMORAL RESOURCES LTD.

Darin Wagner, President and CEO

This press release contains forward-looking statements and forward-looking information (collectively, "forward looking statements") within the meaning of applicable Canadian and United States securities laws. All statements, other than statements of historical fact, included herein, including statements regarding the anticipated content, commencement, duration and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, the timing of the receipt of assay results, and business and financing plans and trends, are forward-looking statements. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions or are those which, by their nature, refer to future events. Although the Company believes that such statements are reasonable, there can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future performance, and that actual results may differ materially from those in forward-looking statements. Important factors that could cause actual events and results to differ materially from the Company's expectations include those related to weather, equipment and staff availability; performance of third parties; risks related to the exploration stage of the Company's projects; market fluctuations in prices for securities of exploration stage companies and in commodity prices; and uncertainties about the availability of additional financing; risks related to the Company's ability to identify one or more economic deposits on the properties, and variations in the nature, quality and quantity of any mineral deposits that may be located on the properties; risks related to the Company's ability to obtain any necessary permits, consents or authorizations required for its activities on the properties; and risks related to the Company's ability to produce minerals from the properties successfully or profitably . Trading in the securities of the Company should be considered highly speculative. All of the Company's public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the latest technical reports filed with respect to the Company's mineral properties.

This news release contains information with respect to adjacent or similar mineral properties in respect of which the Company has no interest or rights to explore or mine. Readers are cautioned that the Company has no interest in or right to acquire any interest in any such properties, and that mineral deposits on adjacent or similar properties are not indicative of mineral deposits on the Company's properties.

This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

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