Mr. John O'Donnell reports

LOYALIST EXPLORATION LIMITED ANNOUNCES PROPOSED PRIVATE PLACEMENT

Loyalist Exploration Ltd. intends to close a brokered private placement financing of $170,000, consisting of 17 million units priced at one cent per unit. Each unit consists of one common share and one common share purchase warrant exercisable for five years at five cents.

The private placement will be conducted in reliance upon certain prospectus exemptions. The proceeds of the private placement will be used for working capital for general and administrative purposes.

IBK Capital Corp. will act as agent for the financing and will receive (i) a cash commission of 9 per cent of the funds raised, and (ii) the number of broker warrants equal to 10 per cent of the number of units issued. Each broker warrant is exercisable into a unit at a price of five cents for a period of five years from the closing of the financing.

The securities issued in connection with the private placement are subject to a hold period expiring four months and one day from the issuance of the securities.

About Loyalist Exploration Ltd.

Loyalist Exploration is a mineral exploration company focused on acquiring, exploring and developing quality mineral properties in Canada. The company's core values are respect for the community, the landowners and the environment, and operating a safe workplace for its employees. The company is also committed to best practice standards of corporate governance.

We seek Safe Harbor.