Balmoral Receives $5,448,209 on Closing of First Tranche of Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 17, 2013) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Balmoral Resources Ltd. ("Balmoral" or the "Company") (TSX:BAR)(OTCQX:BALMF) announces that it has closed the first tranche of its previously announced (see NR13-22 and NR13-23 dated October 4 and 9, 2013 respectively) non-brokered private placement ("the Offering"). In conjunction with this first closing, the Company has issued 7,467,946 flow-through common shares ("FT Shares") at a price of $0.475 per FT Share and 4,472,788 units ("Units") at a price of $0.425 per Unit for aggregate gross proceeds of $5,448,209.

Each Unit consists of one non-flow-through common share in the capital of the Company and one half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each whole Warrant entitles the holder to purchase one additional common share in the capital of the Company (each, a "Common Share") at any time up to October 17, 2014 at an exercise price of $0.75 per Common Share. A total of 2,236,394 Warrants were issued to purchasers in conjunction with today's closing.

The net proceeds raised from the Offering will be used by the Company for further exploration of its Detour Gold Trend Project and other property assets located in the Province of Quebec, for general working capital and other corporate purposes.

In conjunction with the closing of this first tranche, the Company has agreed to pay to certain finders (each, a "Finder") a cash commission, equal to 6.0% of the gross proceeds raised from subscriptions in the Offering from persons introduced to the Company by the Finders - totaling $292,111 - and has issued, to the Finders common share purchase warrants ("Finders Warrants") equal to 4% of the Units and FT Shares subscribed for by persons introduced to the Company by the Finders - totaling 428,129 Finder Warrants. Each Finders Warrant is exercisable to acquire one Common Share of the Company at an exercise price of $0.75 at any time up to October 17, 2014.

Securities issued under the Offering are subject to a hold period which will expire four months and one day from the date of closing, being February 18, 2014 in the case of the securities issued under the first tranche of the Offering.

The Company anticipates that a second, and final, closing of the Offering will occur on or about October 30, 2013.

This news release does not constitute an offer to sell or a solicitation 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 - www.balmoralresources.com.

Balmoral is a Vancouver-based precious metal exploration and development company focused on district scale gold opportunities 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 use of proceeds of the Offering, further closings of the Offering and the Company's business plans, 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.

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