Mr. Errol Farr reports

LOYALIST EXPLORATION ACQUIRES TULLY PROPERTY, BOOSTING TIMMINS GOLD PORTFOLIO AND ANNOUNCES CLOSING OF $653,000 FIRST TRANCHE OF NON-BROKERED FINANCING

Loyalist Exploration Ltd. has successfully completed the acquisition of the Tully property from Fulcrum Metals PLC (LON: FMET). The Tully property is located approximately 25 kilometres northwest of Timmins, Ont.

The acquisition consideration included a cash payment of $500,000 and the issuance of 78.7 million common shares of Loyalist, with Fulcrum retaining a 2.0-per-cent net smelter royalty (NSR), providing Loyalist with an option to buy back one-half of the NSR for $1-million. The company shall also issue to the vendor 272,740 Loyalist shares upon the completion of the second tranche of the offering (as defined below). In addition, Loyalist shall pay to the vendor the additional future consideration as described in its press release of July 8, 2025. The acquisition was first announced on April 9, 2025.

Errol Farr, chief executive officer of Loyalist, stated: "I am very proud of the support I have received from everyone involved in the Tully acquisition and this financing, especially Michael White of IBK Capital Inc., who has been with me all the way and the team at Fulcrum who have demonstrated the confidence in Loyalist to execute on a near term production strategy. Tully, along with our Gold Rush and Loveland properties, are transformative for Loyalist, underscoring our 'Buy Timmins' strategy and positioning Loyalist as a leading mineral exploration and development company in the Timmins region. I look forward to a very exciting fall and 2026."

Ryan Mee, CEO of Fulcrum, commented: "We are pleased to complete the Tully transaction and to support Loyalist Exploration in advancing their exploration portfolio going forward as we execute on our strategy as a technology-led company focused on recovering precious and critical metals from mine-waste tailings in Kirkland Lake. Tully is a highly prospective gold project, and we are confident that Loyalist's strong technical team will take Tully to a higher level. This belief is reflected in our decision to take a significant equity position in Loyalist and retain exposure to Tully through a royalty."

Closing of financing

Loyalist has also completed the sale of 32.65 million units of the company for aggregate gross proceeds of $653,000 of its non-brokered private placement of $700,000 of units, at a price of two cents per unit. Each unit consists of one Loyalist share and one Loyalist share purchase warrant exercisable at a price of five cents for 48 months following the date of issuance. The company expects to complete a second tranche of the offering for gross proceeds of $47,000 on or before Oct. 17, 2025.

Proceeds from the financing will finance the Tully acquisition and support general working capital, further strengthening Loyalist's growth platform.

In connection with the offering, the company paid finders' fees of $51,280 and issued 2,894,000 finder's 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.

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.

Claude Malette, a 10-per-cent holder of the company, has participated in the offering and such transaction is a "related party transaction" of the company for purposes of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions ("MI 61-101").

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.

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