Mr. Errol Farr reports

LOYALIST ANNOUNCES CLOSING OF PRIVATE PLACEMENT

Loyalist Exploration Ltd. has closed its non-brokered private placement financing with the issuance of 26.3 million common shares for gross proceeds of $131,500 (see news releases dated June 5, 2024, and Nov. 8, 2024). No finders' fees were paid as a result of the private placement.

Errol Farr, chief executive officer, and Eric Plexman, former chief financial officer, and Steve Balch, director, participated in the private placement by subscribing for $15,000, $15,000 and $10,000, respectively.

The participation by such insiders is a related-party transaction within the meaning of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company has relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of related-party participation in the placement as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involved the related parties, exceeded 25 per cent of the company's market capitalization (as determined under MI 61-101).

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 comprising the offering.

About Loyalist Exploration Ltd.

Loyalist Exploration is a mineral exploration company focused on acquiring, exploring and developing quality mineral properties in Canada.