that wasn't so hard was it...

Balamara Resources Limited (ASX: BMB) (“Balamara” or the “Company”) provides the
following update to shareholders on the previously announced sale of its non-core Balkans
base metal assets.

Under the sale agreement announced on 19 February 2014, the proceeds of approximately
$15.2 million were due to be received within 30 days of that date, once all final completion
requirements were fulfilled.

The Company subsequently announced that various administrative issues required by the
Buyer were being dealt with prior to release of funds. While these processes have taken
longer than anticipated, they were finalised last week after the Buyer secured an escrow
agent who has completed all necessary due diligence with accounts now opened for
payment.

Balamara has now been informed that there is a concern over the support of one of the
funding parties within the Buyer’s consortium, which is currently holding up completion of
the deal and payment by the other funding parties.

The Buyer remains committed to acquire these Projects and are working to fulfil its
requirements to pay the agreed sum together with interest on late payment. Balamara will
continue to work with the Buyer to complete the transaction as soon as possible.

Balamara will update the market once it has further information relating to this transaction.