Mr. Errol Farr reports

LOYALIST EXPLORATION LIMITED ANNOUNCES PROPOSED PRIVATE PLACEMENT

Loyalist Exploration Ltd. has arranged a non-brokered private placement financing of up to 15 million common shares of the company at a price of one cent per share for proceeds of up to $150,000. The proceeds of the offering will be used for working capital as well as general and administrative purposes.

In connection with the offering, the company may pay finders' fees equal to 7 per cent of the gross proceeds in cash and issue non-transferable warrants to various registered dealers or finders equal to 7 per cent of the shares sold through such registered dealers or finders in the offering. Each finder's warrant will entitle the holder thereof to purchase one Loyalist common share at a price of five cents per share for a period of 36 months from the closing date of the offering.

The private placement will be conducted in reliance upon certain prospectus exemptions.

The shares 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.

We seek Safe Harbor.