Balmoral Resources Ltd. (TSX:BAR) announces that it has closed the second and final tranche of the previously announced (see news releases NR19-18, NR19-19, NR19-21 and NR19-22 dated respectively Oct. 11, 16, 23 and 28, 2019) non-brokered private placement.

Pursuant to the closing of the Second Tranche, the Company issued 9,361,158 units at a price of $0.17 per Unit for gross proceeds of $1,591,396.86. Each Unit consisted of one common share of the Company and one half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.30 for a period of 18 months. The common shares and common share purchase warrants issued will be subject to a four month and one day hold period from the date of closing of the Second Tranche under applicable securities laws in Canada. The gross proceeds of the Offering totaled $3,491,396.86.

Mr. Eric Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially controlled by him, purchased 5,882,353 Units.

“We would like to thank our existing retail and institutional shareholders for their strong support of the Offering and to welcome Mr. Sprott as a shareholder of the Company moving forward” said Darin Wagner, President and CEO of Balmoral.

The net proceeds from the sale of the Units will be used for the exploration of the Company’s Canadian exploration properties, principally those located in the province of Quebec, and for general working capital.

In consideration of their assistance with sale of the Units the Company paid cash finders’ fees totaling $76,594.99 and issued 450,557 common share purchase warrants (the “Finders Warrants”). Each Finders Warrant entitles the holder to purchase one common share of the Company at a price of $0.30 for a period of 18 months from today’s closing. The Company also paid a total of $18,800 in administration fees upon closing of the Unit Offering.

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 the account or benefit of a U.S. person absent an exemption from the registration requirements of such Act.

About Balmoral Resources Ltd.

Balmoral is a multi-award winning Canadian-focused exploration company actively exploring a portfolio of gold and base metal properties located within the prolific Abitibi greenstone belt. The Company’s flagship, 1,000 km2 Detour Gold Trend Project hosts the resource stage Bug and Martiniere West gold deposits and the Grasset nickel-copper-cobalt-PGE deposit. Employing a drill focused exploration style in one of the world’s preeminent mining jurisdictions, Balmoral is following an established formula with a goal of maximizing shareholder value through the discovery and definition of high-grade, Canadian gold and base metal assets.