Mr. Errol Farr reports

LOYALIST EXPLORATION UPDATE ON ACQUISITION OF THE TULLY GOLD PROJECT

Loyalist Exploration Ltd. intends to complete the previously announced acquisition of the Tully gold project (see press releases dated April 9, 2025, and July 8, 2025) located in the prolific Timmins, Ont., gold mining camp on or about Oct. 2, 2025.

As part of the acquisition, Loyalist expects that it may issue an aggregate of up to approximately 114,256,278 common shares in the capital of Loyalist, subject to adjustments in accordance with the terms as announced on April 9, 2025, and July 8, 2025, to the vendor of the Tully gold project. Together with other issuances of shares that the company has made in 2025, the total dilution of the company as a result of the acquisition is expected to exceed 100 per cent. Consequently, in accordance with the policies of the Canadian Securities Exchange, the acquisition is subject to shareholder approval, which Loyalist intends to obtain by written consent of its 50 per cent plus one of its shareholders.

Completion of the acquisition is subject to the receipt of all necessary regulatory approvals. All shares issued in connection with the acquisition will be subject to a four-month-and-one-day statutory hold period.

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.

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