Mr. Errol Farr reports

LOYALIST CLOSES PURCHASE OF THE LOVELAND PROJECT, A MAJOR MINERAL PROPERTY ACQUISITION IN THE TIMMINS MINING DISTRICT AND INITIAL $275,000 TRANCHE OF CONCURRENT FINANCING

Loyalist Exploration Ltd. has completed the acquisition of the Loveland gold, copper and nickel property from STLLR Gold Inc. The Loveland property is located about 45 kilometres (km) northwest of Timmins, Ont., and is the first acquisition of Loyalist's "buy and explore Timmins" strategy. The property includes the Hollinger and Cominco volcanogenic massive sulphide zones, both with historical mineral resources of nickel and copper noted below. Together they are open along strike and at depth and form a 10-kilometre prospective exploration corridor within the property. The property also includes significant historical gold assays at surface and in drill core.

Property highlights:

• 292 contiguous mineral claims for a total area of 6,244 hectares (15,430 acres);
• Hollinger zone, historical estimate of 422,350 short tons grading 0.71 per cent Ni and 0.42 per cent Cu;
• Cominco zone, historical estimate of 130,000 short tons grading 0.73 per cent Ni and 0.68 per cent Cu;
• Open along strike and at depth, forming an exploration corridor with a 10 km strike length;
• Gold assays from one drill hole include 6.37 grams per tonne Au over 8.55 metres from 383.25 m to 391.8 m down hole, 6.17 g/t Au over 3.0 m from 403.0 m to 406.0 m and 10.39 g/t Au over 3.1 m from 410.30 m to 413.4 m;
• Surface gold grab samples about 400 m southeast of the historical Cominco zone contain 8.98 g/t Au and 11.48 g/t Au.

Errol Farr, Loyalist's president and chief executive officer, commented: "We are very pleased to complete the acquisition of the highly prospective Loveland property, which hosts the Cominco and Hollinger nickel-copper zones and associated gold mineralization on surface and at depth. The company is now in the process of completing a full property and data assessment to plan an exploration program for the fall of 2025. The Loveland property is a cornerstone project for Loyalist Exploration, and we thank STLLR Gold and IBK Capital Corp for all their assistance".

John McBride, STLLR's vice-president of exploration, stated: "Historical data and proximity to robust mining projects and past-producing mines highlight Loveland's potential for base and precious metals discoveries. We support Loyalist's commitment to unlocking this potential through targeted exploration programs."

The company now has a 100-per-cent ownership interest in one leased mining claim and 292 unpatented mining claims (283 single-cell claims, six boundary cell (that is, partial cell) claims and three multicell claims). These contiguous claims total 6,244.28 ha in area. The consideration to STLLR for the acquisition of the property consists of a cash payment of $250,000, the issuance of 10 million of Loyalist common shares, and STLLR retaining a 2.0-per-cent net smelter return royalty (NSR), providing Loyalist with an option to buy back one-half of the NSR for $1-million.

Loveland property

The Loveland property is located in Byers, Loveland, Thorburn and Moberly townships in the Porcupine mining division. The property lies within the Superior province of Archean basement rocks, in the Eastern Canadian Shield. It is situated in the northwest region of the Abitibi greenstone belt. The local geology consists of intercalated mafic to intermediate volcanic flows. These flows are locally intruded by feldspar porphyries and gabbro. The gabbroic rocks have similarities to the Kamiskotia gabbroic complex.

Mineralization consists of chalcopyrite, pentlandite and pyrrhotite. Sulphides occur as intergranular mineralization within a gabbro, transitioning to fracture-controlled and semi-massive lenses along the contact between the gabbro and mafic to intermediate volcanic flows. The mineral concentration occurs as trace to semi-massive (up to 75 per cent) pyrrhotite, with minor pyrite and local concentrations of 6 per cent to 8 per cent chalcopyrite and pentlandite.

The Hollinger zone

Mineralized zones of massive sulphide are present along the contact of mafic (gabbroic) intrusions (dykes) and intermediate volcanic rocks farther to the west. Along the contact, the metavolcanic andesitic rocks are intensely altered (feldspathization), whereas the gabbro is only minimally altered within a narrow zone of schistose carbonate alteration. The massive sulphide zones consist primarily of pyrrhotite-pyrite-chalcopyrite-pentlandite, presenting as intergranular mineralization increasing to massive sulphides approaching the andesite contact. The main zone is interpreted as occupying a shear zone dipping steeply toward north 75 degrees and plunging southward at 60 degrees.

Drill intersections have delineated the historical deposit over 125 metres of strike and show a maximum interpreted width of 16 m to a maximum depth of 240 m. The historical deposit coincides with airborne and ground geophysical mag and EM anomalies. An isopach map for the drill intercepts suggests that the deposit is open down-plunge southward and becomes thicker with depth. The historical Hollinger zone deposit is not exposed at surface. Overburden depths recorded for the Hollinger Mines' drill holes range from 12 m on the flank of the deposit to 41 m directly over it.

Cominco zone

The Cominco zone was discovered by Cominco in 1972. The zone was drill tested to a depth of approximately 120 m. Four drill campaigns completed by Amador Gold between 2007 and 2010, were designed to test for possible depth and strike extensions of the Cominco zone. The first three drill campaigns intersected the mineralized gabbro on 50 m centres both down dip and along strike to define the mineralized horizon. The fourth campaign was designed to infill specific areas of the Cominco zone on 25 m spacing to define the geometry of mineralization, which is steeply dipping to the west-southwest. The drilling extended both the dip and strike lengths of the earlier defined mineralization and it remains open in both directions as well as down dip.

Significant historical intercepts from 2007 to 2010 include 45.0 m of 0.70 per cent Ni and 0.75 per cent Cu in drill hole AMDG07-3. Drill hole LL08-05 intersected 0.53 per cent Ni and 0.88 per cent Cu over 22.80 m, including 0.65 per cent Ni and 1.0 per cent Cu over 11.20 m, and 1.0 per cent Ni and 1.92 per cent Cu over 2.70 m. This drill hole was collared 50 m northeast, on strike, of drill hole AMDG07-1, which intersected 0.41 per cent Ni and 0.61 per cent Cu over 25.80 m. A broad mineralized zone was intersected in drill hole LL08-11 grading 0.33 per cent Ni and 0.38 per cent Cu over 37.60 m, including 0.59 per cent Ni and 0.73 per cent Cu over 8.50 m, and 0.85 per cent Ni and 0.78 per cent Cu over 6.00 m.

A deeper mineralized zone from 488.0 m to 492.0 m, was intersected in drill hole LL08-22, with a grade of 0.98 per cent Ni and 1.41 per cent Cu. This gabbroic style mineralization indicates the potential for a continued mineralized system to depth. Additionally, drill hole LL09-07 intersected 7.30 m of 0.44 per cent Ni and 0.43 per cent Cu within mineralized gabbro. This zone is associated with a weak to moderate induced polarization (IP) and versatile time-domain electromagnetic (VTEM) anomaly about 400 m northwest of the Cominco zone and may represent a new zone of the intrusive gabbro style of mineralization.

Gold mineralization

Gold mineralization was intersected in holes drilled by Amador Gold Corp. to a depth of 300 m below the historical Cominco zone deposit in 2007 to 2009. Gold-bearing arsenopyrite and pyrite mineralization was encountered in sections of silicified granodiorite. Amador's significant historical drill hole (LL08-13) intersected a mineralized interval that assayed 6.37 g/t Au over 8.55 m (383.25 m to 391.8 m down hole). Additional intervals from the hole included 6.17 g/t over 3.0 m from 403.0 m to 406.0 m and 10.39 g/t over 3.1 m from 410.30 m to 413.4 m. The reported lengths of gold intersections are core lengths and not true lengths which are currently unknown.

Anomalous gold values ranging from 100 ppb (parts per billion) to 3,800 ppb were recorded from several other drill holes (including AMDG07-01, LL08-04, LL08-09, LL09-13W, LL08-14, LL08-21, LL08-22 and LL08-23) over a strike more than 500 m within the granodiorite. The anomalous gold values occur over various widths from less than a metre to several metres of core. True widths are unknown. Prospecting in 2008 led to the discovery of a surface gold showing about 400 m southeast of the historical Cominco zone deposit. The showing returned grab samples containing 8.98 g/t Au and 11.48 g/t Au collected from granodiorite containing quartz-stringers mineralized with disseminated sulphides.

The gold-bearing sulphide mineralization occurs with silicification that presents as silica flooding and quartz veining. The better values, such as those from hole LL08-13, occur in intervals with blue-grey quartz veining and strong silicification with 3 to 10 per cent sulphides comprising arsenopyrite, pyrite and trace amounts of sphalerite, and possibly trace galena and chalcopyrite. Silicification with trace to 2 per cent sulphides was observed marginal to joints and local quartz stringers in all holes where anomalous gold was recorded.

The results from Amador's drilling suggest the presence of a system of gold enrichment within the granodiorite. Additional exploration will be required to determine the orientation and extent of the gold-enriched zone.

Exploration potential

Earlier work by Hollinger Mines to the southeast of the historical Cominco zone, within the original Moneta Loveland land package by Hollinger Mines lead to the discovery of the Hollinger zone, which contains a historical mineral resource estimate from 1974 of 401,000 tonnes grading 0.71 per cent Ni and 0.42 per cent Cu. Note that this estimate, developed prior to the introduction of National Instrument 43-101 has not been independently verified and investors are cautioned not to treat this estimate as reliable or current. This zone is open at depth and it has only been drilled to 120 m. The trend extrapolated from the Hollinger and Cominco zones highlights a potential exploration corridor of approximately 10 km strike length.

Extensive airborne surveys were completed over many areas of the Abitibi greenstone belt including Byers and Loveland townships. A series of ground geophysical surveys was also completed on portions of the property. The geophysical surveys have highlighted several favourable exploration targets that have yet to be drill tested.

Closing of financing

The company is also pleased to announce it has issued 27.5 million units of the company for aggregate gross proceeds of $275,000 of its upsized non-brokered private placement of $1.5-million of units at a price of one cent per unit. Each unit consists of one common share of the company and one common share purchase warrant exercisable at a price of five cents for 36 months following the date of issuance.

In connection with the offering, the company paid finders' fees of $24,000 and issued three million finders' warrants to acquire one unit of the offering at the offering price for a period of 60 months from the closing date of the financing.

The proceeds from the financing will be used for the acquisition of the Loveland property as well as general working capital purposes.

All of the securities issued and issuable in connection with the offering and the acquisition are subject to a hold period expiring four months and one day after the date of issuance of the securities. Completion of the offering and the acquisition is subject to the receipt of all required regulatory approvals, including the approval of the Canadian Securities Exchange.

Statement regarding historical mineral resource estimates

The Hollinger zone historical mineral resource estimate is unclassified and does not comply with Canadian Institute of Mining Definition Standards on Mineral Resources and Mineral Reserves as required by NI 43-101. The Hollinger zone historical mineral resource estimate was taken from a report titled "Geological Report, Rousseau Loveland Property, Loveland Township" authored by W. C. Kerr and dated February, 1992, citing data provided by Hollinger Mines Ltd. from 1974. Given the age of the information and the lack of underlying data, investors are cautioned not to treat the estimate as current or rely on the estimate in making an investment decision. The historical mineral estimate is being included herein to provide shareholders with background on the rationale for acquiring the asset. A qualified person has not done sufficient work to classify this historical mineral resource estimate as current mineral resources and the company is not treating these historical mineral resource estimate as a current estimate. It is uncertain whether following evaluation and/or further exploration, the historical mineral resource estimate will ever be able to be reported in accordance with NI 43-101. The company has no current plans to undertake the work to bring any or all of the historical resource estimates up to the CIM reporting standards.

Qualified person

Stephen Balch, PGeo, independent director for Loyalist, who is a qualified person as defined by NI 43-101, has reviewed and approved the technical content of this press release.

About Loyalist Exploration Ltd.

Loyalist Exploration is a mineral exploration company concentrating on acquiring, exploring and developing quality mineral properties in Canada. The company is focused on the Loveland nickel/copper/gold property and the recently announced Gold Rush gold/silver property, both located in the Timmins, Ont., mining district.

We seek Safe Harbor.