Exploration Plans

With the significant improvement in the nickel market, and strong forecasts for nickel prices moving forward, Balmoral resumed active exploration on the Grasset and adjacent Fenelon properties in the fall of 2018, with drilling focused 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 in the Grasset Ultramafic Complex (“GUC”) made by the Company in 2015

3. Testing of additional targets within the GUC and surrounding mafic/ultramafic intrusions

The first results of this drilling were released in January 2019 and demonstrated the presence of new zones of nickel mineralization approximately 7 kilometres to the northwest of the Grasset deposit.. See News for details.

Near term exploration plans at Grasset and within the GUC will focus on further expansion of the Grasset deposit and nearby mineralized zones with an increased priority placed on follow-up testing the new discoveries discussed above and associated geophysical anomalies.

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.