Mr. Errol Farr reports

LOYALIST EXPLORATION ANNOUNCES NON-BROKERED PRIVATE PLACEMENT TO ACQUIRE TULLY GOLD PROJECT

Loyalist Exploration Ltd. has arranged a non-brokered private placement, consisting of the sale of up to 35 million units of the company, at a price of two cents per unit, for gross proceeds of up to $700,000.

Each unit consists of one common share of the company and one common share purchase warrant, exercisable into a common share of the company at a price of five cents for a period of 48 months following the date of issuance.

Errol Farr, Loyalist's president and chief executive officer, stated: "We are very encouraged by the strong investor response to our 'buy Timmins' strategy, which continues with the potential acquisition of the Tully deposit (see press releases dated April 9, 2025, and July 8, 2025) and its significant historical gold resource. The closing is scheduled for Sept. 30, 2025, Tully is well recognized for its numerous high-grade gold drill intersections and we believe there is considerable upside potential remaining on the project. Our next phase of exploration will focus on testing new discovery targets in addition to advancing the understanding of the existing resource, particularly in the context of current gold prices that are two to three times higher than during the last drill campaign."

Mr. Farr continued: "I want to thank our team of officers, directors, consultants and advisers, including IBK Capital Corp., for their ongoing support. The upcoming acquisition of the Tully deposit, and the recent acquisitions of the Gold Rush property and the Loveland nickel-copper-gold property, all within the prolific Timmins mining camp, stand as a testament to their expertise and commitment. Together, we are advancing our strategy to establish Loyalist as a leading mineral exploration and development company."

The proceeds from the sale of the units will be for the Tully property acquisition, the Gold Rush property payment, exploration expenditures, as well as general working capital purposes.

The company may pay finders' fees to eligible finders in connection with the offering.

Certain insiders of Loyalist may participate in the offering, which would constitute a related party transaction, as such term is defined in Multilateral Instrument 61-101, Protection of Minority Shareholders in Special Transactions. The company intends to rely on the exemptions from the 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, as the fair market value of the acquired securities by such insiders will not exceed 25 peer cent of the market capitalization of the company, as determined in accordance with MI 61-101.

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

It is anticipated that the first closing of the offering will occur on or about Sept. 30, 2025.

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.