Balmoral Resources Ltd.

Balmoral Resources Ltd.

June 28, 2011 08:00 ET

Balmoral Teams With GTA Resources and Mining to Advance Northshore Property in Ontario

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 28, 2011) - Balmoral Resources Ltd. ("Balmoral" or the "Company") (TSX VENTURE:BAR) announced today that it has entered into a Letter of Intent with Ontario based GTA Resources and Mining Inc. ("GTA") whereby GTA has, subject to satisfactory results of final technical due diligence by GTA, been granted the exclusive right to enter into an Option Agreement to acquire from Balmoral up to a 70% interest in Balmoral's Northshore Gold Property located in the Hemlo-Schreiber greentstone belt of western Ontario.

Under the terms of the proposed Option Agreement, GTA may earn an initial 51% interest in the Northshore Property by making aggregate cash payments of $50,000, and issuing an aggregate of 2,500,000 common shares of GTA, to Balmoral and incurring a minimum of $2,500,000 in eligible exploration expenditures on the Property over a three year period. 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) would be firm commitments by GTA under the proposed Option Agreement.

"We are pleased to be able to reach an agreement with an experienced and technically sound group like GTA who have first-hand experience on the Northshore Property. This should enable them to move the project forward rapidly," said Darin Wagner, President and CEO of Balmoral. "This will allow Balmoral to concentrate on our recent gold discoveries on the Detour Gold Trend in Quebec, where we anticipate the resumption of drilling within the next 7-10 days, while at the same time allowing our shareholders to be exposed to the discovery and advancement opportunities at Northshore."

Members of GTA's Board of Directors and exploration team were actively involved with the Northshore Property when the property was held by Noranda Exploration/Hemlo Gold Mines between 1990 and 1992 and are thus very familiar with the property and its potential.

Under the proposed Option Agreement, upon exercise of the First Option outlined above, GTA will have the right to elect to proceed with a Second Option whereby GTA may earn an additional 19% interest in the Northshore Property by making an additional cash payment of $100,000 and issuing an additional 1,000,000 shares to Balmoral upon electing to proceed with the Second Option and incurring additional exploration expenditures totaling $3,000,000 over an additional 24 month period.

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 Northshore 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.

Assuming that the results of GTA's technical due diligence are satisfactory, GTA and the Company have undertaken to finalize and enter into an Option Agreement by no later than July 15, 2011. The Option Agreement will be subject to acceptance by the TSX Venture Exchange ("TSXV") on behalf of each of Balmoral and GTA, and will constitute a non-arm's length transaction under the policies of the TSXV as Balmoral and GTA have a director in common. The terms of the LOI and proposed Option Agreement have been negotiated and approved by the directors of both companies excluding the common director.

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 and has approved such disclosure. Mr. Wagner has reviewed the historic work on the Northshore Property and visited the property.

About Balmoral Resources Ltd. –

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, the successful negotiation and execution of an option agreement between the Company and GTA 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 (including GTA); 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.comand 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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