Balamara Resources Limited is pleased to announce that it is about to embark on an important new phase of exploration at its 85%-owned Bogdan Copper Project, located adjacent to the world-class KGHM operations in Poland, after receiving all necessary permits to commence its Phase Two drilling programme. The Company has received approval to drill an additional nine holes;however, the initial programme will comprise three deep diamond holes, with additional holes to be drilled subject to results. Drilling is expected to re-commence in early February, subject to weather conditions, with the entire programme likely to take approximately five months to complete.

Exploration activities to date have clearly demonstrated that the Bogdan Project can be divided into two sectionsof approximately equal size – one containing copper mineralisation and the other dominated by lead mineralisation. Both areas contain significant silver mineralisation. In August 2012, Balamara announced the drill results from Hole B4 at Bogdan which returned an intersection of 8.5mgrading 0.36% copper and 11.6g/t silver, including 1.3mgrading 0.60% copper and 13.5g/t silver.

This hole is located close to the producing mines of KGHM,suggesting that an extension of the world-class KGHM copper system may occur on Balamara’s lease area. In light of this, Balamara has decided to focus the next phase of drilling at Bogdan around this hole and applied for the necessary permits in order to facilitate a drilling programme around the copper-dominant zone. Balamara is targeting an extension to the orebody which has been successfully mined in the adjacent concession by KGHM PolskaMiedz (“KGHM”), one of the largest copper-silver producers in the world for the past 40 years. The closest operating KGHM mine to the Bogdan tenement is the world-class Lubin-Malomice mine, located approximately 5km from Hole B4.Lubin-Malomice has current reported ore resources of 388Mt grading 1.32% copper and 56g/t silver, for 5.14Mt of contained copper and 21,563t of silver.(Source: KGHM 2011 marketing report/ KGHM website).

Balamara completed an initial exploration drilling programme in mid-2012 in order to provide evidence that the same Kupferschiefer mineralised zone which is mined by KGHM extends into the Bogdan tenement.To date every hole drilled by Balamara has confirmed that the Kupferschieferextends into the Balamara lease. The Phase Two Bogdan drilling programme is designed to test for the presence of a higher grade copper system around Hole B4. The first three holes within the next programme will test the area between Hole B4 and a historical KGHM hole which had mine-grade material. The KGHM hole is located just to the west of Balamara’s lease boundary. Balamara’s exploration activities during the March 2013 Quarter will be focused at Bogdan, with furtherresults also expected from the completed 2012 drilling programme at the Monty zinc-silver project in Montenegro where an updated JORC resource is being worked on.