Commencing in January of 2011 Balmoral began a multi-disciplinary program targeting gold mineralization on the Martiniere Property. Initial diamond drilling focused on the Martiniere West Zone and has identified high-grade core to this Zone and traced it to a depth of over 320 metres below which it remains open. Drilling throughout 2011 expanded the Martiniere West Zone and made a number of new discoveries in the Martiniere East area. The Company also completed a detail airborne Mag-EM survey in 2011 following the recognition of a new VMS system on the Martiniere property.

The winter multi-rig 2012 drill program commenced on the property in January 2012. Drilling led to additional discoveries including the Bug Lake Zone which separates the Martiniere East and Martiniere West areas. Testing of this new discovery during the summer of 2012 led to the identification of the Footwall discovery -- a bonanza grade vein system in the footwall to the Bug Lake Zone.

With all of the discoveries on the Martiniere Property remaining open for expansion the Company is currently reviewing an expanded 2013 drill campaign which would enable the production a global gold resource for the entire Martiniere Gold System as it is known to date while also testing for new discoveries throughout this large promising property.

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