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 (see News Release 19-01) and demonstrated the presence of a Type 1 basal komatiite-hosted nickel sulphide deposit approximately 7kms NW of the Grasset deposit.

Results of the expansion drilling on the Grasset deposit were released in February 2019 (see News Release 19-02) and successfully expanded the deposit both to depth and along strike. In addition, they expanded the known extent of one of the broadest portions of the deposit near the lower limit of the current resource.

Near-term exploration plans at Grasset and within the GUC in 2019-2020 will focus on:

1. Further expanding the Grasset deposit with a view to substantially growing the 2016 Initial Resource Estimate (see News Release 16-04 and associated Technical Report for details)

2. Delineating the recently discovered Type 1 basal komatiite-hosted nickel sulphide deposit 7km NW of the Grasset deposit

3. Continued evaluation and testing of numerous nickel sulphide targets throughout the GUC.