Martiniere – Initial Resource Estimation 

On March 27, 2018 Balmoral published the initial resource estimate for the Martiniere Gold System. The initial resource estimate was primarily focussed on the shallow part of the Martiniere system (above 350 vertical metres depth) and included separate estimates for the Bug and Martiniere gold deposits.

The initial resource estimate for the Martiniere Gold System was prepared by Mr. Marc Jutras (P.Eng., M.A.Sc.) of Ginto Consulting Inc. Mr. Jutras is an Independent Qualified Persons pursuant to NI 43-101.

The highlights of the initial estimate were:

• At a 0.5 g/t cut-off grade the Martiniere Gold System is currently estimated to host an open pit-constrained Indicated gold resource of 431,000 ounces at an average grade of 2.0 g/t and an Inferred gold resource of 11,000 ounces at an average grade of 2.5 g/t

• At a 2.5 g/t cut-off grade the System is currently estimated to host an additional underground Indicated resource of 159,000 ounces at an average gold grade of 4.5 g/t and an Inferred resource of 43,000 ounces at an average gold grade of 5.8 g/t

• 92% of the estimated resource is contained within Indicated Category

• 76% of the initially estimated resource occurs within the Bug Gold deposit

• 73% of the estimated ounces are contained within the optimized pit shell which extends to a depth of approximately 260 metres below surface

The base case initial resource at Martiniere was estimated to be:

MARTINIERE GOLD SYSTEM
BASE CASE - INDICATED MINERAL RESOURCE
Gold Cut-Off Grade g/t	Tonnage tonnes	Average Gold Grade g/t	Contained Gold oz
CONSTRAINED OPEN PIT @ $1300 US/oz
0.5	6,827,000	1.96	431,000
UNDERGROUND
2.5	1,092,000	4.54	159,000

MARTINIERE GOLD SYSTEM
BASE CASE - INFERRED MINERAL RESOURCE
Gold Cut-Off Grade g/t	Tonnage tonnes	Average Gold Grade g/t	Contained Gold oz
CONSTRAINED OPEN PIT @ $1300 US/oz
0.5	132,000	2.50	11,000
UNDERGROUND
2.5	231,000	5.75	43,000

The initial resource estimate for the Martiniere Gold System is based on results from 93,294 assays collected from 490 diamond drill holes representing in total 91,988 metres of drilling.

As indicated above, the base case initial resource includes both an open pit and an underground component reported at cut-off grades of 0.5 g/t and 2.5 g/t respectively after incorporation of estimates for operating costs based on those associated with mines currently operating in the local region, mill recoveries and overburden removal at an estimated long-term gold price of US$1,300.

The three figures to the right, which make use of the block model for the two deposits, display the location and orientation of the two deposits relative to each other and long sections through each of the deposits.

Both deposits remain open down-plunge, as do the numerous satellite and secondary gold zones surrounding them.

The table below provides an analysis of the volumetric resources at a range of cut-off grades for the modeled portion of the Martiniere Gold System as calculated by the Qualified Person with the base case highlighted.

MARTINIERE GOLD SYSTEM
INDICATED MINERAL RESOURCE
Gold Cut-Off Grade g/t	Tonnage tonnes	Average Gold Grade g/t	Contained Gold oz
CONSTRAINED OPEN PIT @ $1300 US/oz
0.5	6,827,000	1.96	431,000
0.7	5,703,000	2.23	409,000
1.0	4,355,000	2.66	372,000
UNDERGROUND (Based on Open Pit @ 0.5 g/t cut-off)
2.0	1,657,000	3.75	200,000
2.5	1,092,000	4.54	159,000
3.0	751,000	5.36	129,000

MARTINIERE GOLD SYSTEM
INFERRED MINERAL RESOURCE
Gold Cut-Off Grade g/t	Tonnage tonnes	Average Gold Grade g/t	Contained Gold oz
CONSTRAINED OPEN PIT @ $1300 US/oz
0.5	132,000	2.50	11,000
0.7	122,000	2.67	10,000
1.0	108,000	2.89	10,000
UNDERGROUND(Based on Open Pit @ 0.5 g/t cut-off)
2.0	332,000	4.68	50,000
2.5	231,000	5.75	43,000
3.0	185,000	6.50	39,000

The assumptions and notes which accompany the initial resource estimate are listed below:

• The Independent and Qualified Person for the Mineral Resource Estimate, as defined by NI 43‑101, is Mr. Marc Jutras, P.Eng., M.A..Sc., Principal of Ginto Consulting Inc. The effective date of the Estimate is March 27, 2018
• These mineral resources are not mineral reserves as they do not have demonstrated economic viability.
• While the results are presented undiluted, the reported mineral resources are considered to have reasonable prospects for eventual economic extraction. The near surface mineral resource is constrained within an optimized open pit shell, while the below pit portion of the mineral resource is reported at an elevated gold grade cut-off
• The estimate includes several discrete zones/sub-zones of mineralization.
• Resources were compiled at gold cut-off grades of 0.5, 0.7 and 1.0 g/t gold for the evaluation of open pit estimates and at 2.0, 2.5 and 3.0 g/t gold for evaluation of underground estimates (see table below). The base case resource estimate is reported at a cut-off grade of 0.5g/t gold for resources constrained within the optimized pit shell and 2.5 g/t gold for resources outside the pit shell.
• Cut-off calculations for calculating the base case resource used: (all USD figures) $1.80/t for overburden removal, $2.00/t for open pit mining, $50.00/t for underground mining, $17.00/t for Processing (for both open pit and underground scenario’s), $2.50/t for G&A; costs and mill recovery rates of 91%.
• Gold recovery rates of up to 91% have been achieved in limited testing for the Bug deposit. The Bug deposit comprises the majority of the estimated resource. Gold recoveries of.up to 97% to concentrate, and 72% overall, have been achieved in preliminary testing of theMartiniere West Deposit.
• For the open pit scenario pit slopes of 50 degrees were assumed in bedrock and 25 degrees in overburden.
• Calculations used a USD/CAD exchange rate of 1.22 and a gold price of US$1,300 in keeping with current long-term consensus estimates.
• Cut-off grade calculations would have to be re-evaluated in light of future prevailing market conditions (metal prices, exchange rate, and mining costs).
• Density values were estimated for all lithological units from measured samples. Density values for the mineralized zones were calculated from a measured density database.
• The resource was estimated using Vulcan software. The estimate is based on results from 490 diamond drill holes (91,988 m).The cut-off date for the drill hole database is January 30, 2018.
• High grade capping was done on composited assay data and established on a per zone basis.
• Compositing was done on drill hole intercepts falling within the mineralized zones (composite length of 1.0 m).
• Resources were evaluated from composited and capped drill hole assays using3-pass ordinary kriging and inverse distance squared interpolation methods in a block model (block size = 2.5 x 2.5 x 2.5 m).
• The Mineral Resources presented herein are categorized as Indicated and Inferred based on drill spacing and geological and grade continuity. Based on the nature of the mineralization, a maximum average distance of composites of 40 m was used for Indicated resources in the Bug Deposit and 35 m in the Martiniere West Deposit.
• Ounce (troy) = metric tonnes x grade / 31.10348. Calculations used metric units (metres, tonnes and g/t). Metal contents are presented in ounces.
• The number of metric tonnes and contained ounces were rounded to the nearest thousand. Any discrepancies in the totals are due to rounding effects
• The quantity and grade of reported Inferred resources in this Mineral Resource Estimate are uncertain in nature and there has been insufficient exploration to define these Inferred resources as Indicated or Measured, and it is uncertain if further exploration will result in upgrading them to these categories.
• CIM definitions and guidelines for mineral resources have been followed.

21.The Qualified Persons are not aware of any known environmental, permitting, legal, title-related, taxation, socio-political or marketing issues, or any other relevant issue, that could materially affect the Mineral Resource Estimate.

Cautionary Note Regarding References to Resources and Reserves

National Instrument 43 101 - Standards of Disclosure for Mineral Projects ("NI 43-101") is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all resource estimates contained in or incorporated by reference in this press release have been prepared in accordance with NI 43-101 and the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resource and Mineral Reserves, adopted by the CIM Council on November 14, 2004 (the "CIM Standards") as they may be amended from time to time by the CIM. 

United States shareholders are cautioned that the requirements and terminology of NI 43-101 and the CIM Standards differ significantly from the requirements and terminology of the SEC set forth in the SEC's Industry Guide 7 ("SEC Industry Guide 7"). Accordingly, the Company's disclosures regarding mineralization may not be comparable to similar information disclosed by companies subject to SEC Industry Guide 7. Without limiting the foregoing, while the terms "mineral resources", "Inferred mineral resources", "indicated mineral resources" and "measured mineral resources" are recognized and required by NI 43-101 and the CIM Standards, they are not recognized by the SEC and are not permitted to be used in documents filed with the SEC by companies subject to SEC Industry Guide 7. Mineral resources which are not mineral reserves do not have demonstrated economic viability, and US investors are cautioned not to assume that all or any part of a mineral resource will ever be converted into reserves. Further, Inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the Inferred resources will ever be upgraded to a higher resource category. Under Canadian rules, estimates of Inferred mineral resources may not form the basis of a feasibility study or prefeasibility study, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and grade without reference to unit amounts. The term "contained ounces" is not permitted under the rules of SEC Industry Guide 7. In addition, the NI 43-101 and CIM Standards definition of a "reserve" differs from the definition in SEC Industry Guide 7. In SEC Industry Guide 7, a mineral reserve is defined as a part of a mineral deposit which could be economically and legally extracted or produced at the time the mineral reserve determination is made, and a "final" or "bankable" feasibility study is required to report reserves, the three-year historical price is used in any reserve or cash flow analysis of designated reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.