Balmoral Resources Ltd.

Balmoral Resources Ltd.

November 09, 2010 13:10 ET

Balmoral Announces Closing of $18 Million Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 9, 2010) -


Balmoral Resources Ltd. ("Balmoral" or the "Company") (TSX VENTURE:BAR.H) announced today that it has closed its brokered private placement (the "Offering") announced in its press releases dated September 7 and 21, 2010 (NR10-05 and 10-06) with a syndicate of agents co-led by Haywood Securities Inc. and Raymond James Ltd. and including Canaccord Genuity Corp. (the "Agents"). The Offering involved the issuance of 24,916,600 units (the "Units") at a price of $0.60 per Unit; and 3,812,500 flow-through shares at a price of $0.80 per flow-through share for total gross proceeds of $17,999,960.

Each Unit consists of one common share in the capital of the Company (a "Common Share") and one half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each whole Warrant entitles the holder thereof to purchase one Common Share of the Company for a period of 24 months following the closing date at an exercise price of $0.94.

In consideration of the Agents' services, the Company paid the Agents a cash commission of 6% of the gross proceeds of the Offering. The Agents were also issued broker warrants (the "Broker Warrants") equal to 6.0% of the flow‐through shares and Units sold pursuant to the Offering. Each Broker Warrant entitles the holder to acquire one common share of the Company at a price of $0.94 for 24 months from the closing date.

The net proceeds raised from the Offering will be used by the Company for the acquisition of certain property assets as described in the September 7, 2010 press release (NR10-05), exploration and drill testing of the properties, confirmation of historic resources on the properties in order to bring them into compliance with National Instrument 43‐101 Standards of Disclosure for Mineral Projects requirements, retirement of debt obligations and for general working capital purposes. The securities issued in the Offering are subject to a four month hold period.

The Company anticipates that the reactivation of the Company to Tier 1 of the TSX Venture Exchange, and resumption of trading under the trading symbol BAR, will occur on Friday, November 12, 2010.

This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to a U.S. person absent an exemption from the registration requirements of such Act.

About Balmoral Resources –

Balmoral is a Vancouver-based precious metal exploration and development company focused on district scale gold and silver 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 a proven formula of maximizing shareholder value while limiting shareholder risk.

On behalf of the board of directors of BALMORAL RESOURCES LTD.

Darin Wagner, President and CEO

This press release includes certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. 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. Important factors that could cause actual events and results to differ materially from the Company's expectations include legal requirements with respect to the purchase and option agreements and the Offering; risks related to the Company's reactivation on the TSXV; risks related to the exploration stage of the Company's projects; market fluctuations in prices for securities of exploration stage companies; and uncertainties about the availability of additional financing. Trading in the securities of the Company should be considered highly speculative.

Neither 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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