Exploration Plans

In early 2016 Balmoral suspended exploration work for nickel on the Grasset Property due to severely depressed nickel prices. In early 2016 the Company published the initial resource estimate for the Grasset Ni-Cu-Co-PGE deposit which was based on drilling up to the end of 2015. Since 2016 a limited amount of gold focused drilling has occurred on the property, mainly to the east of the Grasset deposit.

With the significant improvement in the nickel market in 2018, and strong forecasts for nickel prices moving forward, Balmoral will resume active exploration on the Grasset and adjacent Fenelon properties. Planned drilling will focus on three areas:

1. The further expansion and delineation of the Grasset Ni-Cu-Co-PGE deposit

2. Follow-up testing of a series of nickel sulphide discoveries made by the Company in 2015

3. Testing of additional targets within the Grasset Ultramafic Complex (“GUC”) and surrounding mafic/ultramafic intrusions

Delineation drilling on the Grasset deposit also led to the discovery of several occurrences and zones of gold mineralization located proximal to the GUC. Like the nearby Fenelon gold deposit which is currently under development, several of these occurrence feature high grade gold mineralization and remain targets for future exploration.