Mr. Errol Farr reports

LOYALIST CLOSES AN ADDITIONAL $25,000 TRANCHE OF CONCURRENT FINANCING

Loyalist Exploration Ltd. has closed an additional $25,000 of its open, non-brokered private placement, to augment the company's financing of its now 100-per-cent-owned Loveland Cu/Ni (copper/nickel) and Au (gold) project in Timmins, Ont.

Closing of financing

The company has issued 2.75 million units of the company for aggregate gross proceeds of $25,000 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 $2,000 and issued 250,000 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 to augment the company's 100-per-cent-owned 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.

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 mining district in Ontario.

We seek Safe Harbor.