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Balmoral Resources Increases Private Placement to $18.0 Million

 
Sep 21, 2010
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION THROUGH U.S. NEWSWIRE SERVICES

(Vancouver, September 21, 2010) Balmoral Resources Ltd. ("Balmoral" or the "Company") (TSXV: BAR.H) announces that it has amended the engagement letter announced September 7, 2010 (NR10-05) entered into with a syndicate of agents co-led by Haywood Securities Inc. and Raymond James Ltd., and including Canaccord Genuity Corp. (collectively the "Agents"), under which the Agents have agreed to offer, on a "commercially best efforts" private placement basis $18,000,000 in securities of the Company (an increase of $3 million), comprised of units at an issue price of $0.60 per unit (the "Unit") and/or flow-through shares at an issue price of $0.80 per flow-through share (the "Offering"), subject to a maximum of $4,500,000 in gross proceeds from the issuance of flow-through shares. All other terms and conditions of the Offering will remain the same.

The net proceeds raised from the Offering have been specifically allocated and are necessary for the acquisition of the properties described in the Company's news release dated September 7, 2010 (NR10-05), initial exploration and drill testing of said properties, confirmation of historic resources on the property in order to bring them into compliance with NI43-101 requirements, retirement of debt obligations and for general working capital purposes. Closing of the Offering is anticipated to occur on or about October 15, 2010. Closing of the Offering is subject to receipt of regulatory approvals, including the approval of the TSXV for the Offering, the transactions which are the basis for the reactivation of the Company as described in the Company's news release dated September 7, 2010 (NR10-05) and the entering into by the Company and the Agents of an agency agreement. The securities issued will be subject to a four month hold period under applicable securities laws in Canada.

This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to the account or benefit of a U.S. person absent an exemption from the registration requirements of such Act.

About Balmoral Resources - www.balmoralresources.com

Balmoral Resources is a newly formed Vancouver-based precious metal exploration and development company focused on district scale gold and silver opportunities in politically favourable jurisdictions in North America. With a philosophy of creating value through the drill bit and with a focus on proven productive precious metal belts Balmoral is following an established formula with a goal of maximizing shareholder value through discovery.


On behalf of the board of directors of
BALMORAL RESOURCES LTD.

"Darin Wagner"

President and CEO
dwagner@balmoralresources.com


For further information contact:
John Toporowski, Manager, Investor Relations
Balmoral Resources Ltd., Vancouver, B.C.
Tel: (604) 638-5815 / Toll Free: (887) 838-3664
E-mail: jtoporowski@balmoralresources.com

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