Exploration Plans

Drilling and underground development completed to date on the Discovery Zone has demonstrated the presence of a very high-grade gold system characterized by sub-vertically oriented, free gold bearing shears hosted within an ultramafic host. These relationships are common to many million plus ounce gold deposits in the Abitibi and the vast majority of these deposits demonstrate tremendous vertical continuity -- often for more than 1,000 vertical metres

Based on results to date Balmoral plans to immediately pursue potential depth and along strike extension to the high-grade Fenelon system. At the same time the Company will focus on confirming and expanding the near surface resources within the Zone with a goal of providing a current resource estimate for the Fenelon project in late 2011 or early 2012.

In addition exploratory drilling will follow-up on a number of other zones of anomalous gold mineralization intersected on the Fenelon property and on testing additional targets which have been outlined based on the experience of the Company's technical staff in the Abitibi.

Balmoral will also review the recent base metal discoveries on the project and may give consideration to further exploring these discoveries if warranted.