Mr. Errol Farr reports

LOYALIST EXPLORATION ANNOUNCES ENGAGEMENT OF BLUE HERON FOR PERMIT PLANNING

Loyalist Exploration Ltd. has engaged Blue Heron Solutions for Environmental Management Inc. to assist the company in the development of project plans and schedules associated with the environmental baseline and mining permitting process for the company's Tully gold project located in the prolific Timmins mining district.

On Oct. 3, 2025, the company acquired a 100-per-cent interest in Tully (see news release dated Oct. 3, 2025, for details). Tully is the subject of a historical non-National Instrument 43-101-compliant mineral resource estimate, dated Dec. 15, 2013, by Francis Minerals Ltd.

Now that the company has acquired Tully, it has commenced exploring the potential of obtaining a mining permit to go underground to exploit the potential resources of gold and continue exploration along strike and at depth around the deposit. Blue Heron is assisting the company with determining the fundamental requirements and timeline to obtain the permit and may participate in that process. The company will also be engaging a mining consulting company to assist in producing a current National Instrument 43-101-compliant MRE and a preliminary economic assessment.

Errol Farr, chief executive officer, stated: "We are very pleased to commence the initial work on determining the environmental and permitting timelines to a production decision on Tully with Blue Heron. With gold prices at all-time highs, now is the time to take advantage of the potential resources at Tully and execute on the company's Buy Timmins strategy."

Tully property highlights:

• 458-hectare mining lease;
• 25 kilometres northeast of Timmins;
• Historical resource estimate of:
  • Indicated: 358,000 tonnes grading 6.56 grams per tonne gold for 76,000 ounces;
  • Inferred: 184,000 tonnes 5.17 g/t gold for 31,000 ounces;
  • Total 107,000 ounces (uncapped 144,000 ounces) (see table);
• Potential for expansion.

The Tully project overview

The Tully deposit

Tully is located approximately 25 kilometres northeast of Timmins and includes a historical indicated and inferred mineral resource estimate (not published). The project is located within the Timmins-Porcupine gold camp and is approximately two kilometres southwest of the Bradshaw gold project of Gowest Gold Ltd. The Timmins-Porcupine gold camp includes the Dome and Hollinger mines.

Prospective structures splay off the Porcupine-Destor fault through the Tully area. Mineralization at Tully occurs within a 30-metre-wide mafic volcanic unit with an approximate west-southwest strike and steep northerly dip. The hangingwall consists of sedimentary rocks, and the footwall consists of ultramafic rocks. As currently understood, the deposit comprises an array of shallowly inclined quartz-carbonate veins or lenses stacked ladder style within the volcanic rocks and constrained by its hangingwall and footwall contacts. The higher-grade core of the deposit extends over 600 m along strike and 400 m downdip, and plunges moderately toward the east-northeast. The mineralized veins/lenses host gold primarily within irregular pyrite clusters and also commonly as free visible gold.

The Tully property occurs within a swampy area and is covered by a blanket of glacial drift, averaging 30 m thickness, which hid the deposit from early explorers; thus, the geology is entirely derived from drill hole and geophysical data. Exploration by a number of companies over several decades has resulted in the drilling of many holes -- the historical resource estimate utilized data from an extensive database of 356 holes totalling 91,623 m, with 718 vein intercepts being interpreted and incorporated into the lens wire frames.

A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. Loyalist is not treating the historical estimate as current mineral resources or mineral reserves.

Statement regarding historical mineral resource estimates

The Tully deposit historical mineral resource estimate is unclassified and does not comply with Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards on Mineral Resources and Mineral Reserves as required by National Instrument 43-101. The MRE was taken from a report titled "Tully Deposit Mineral Resource Estimate" written by Francis Minerals Ltd. and dated Dec. 15, 2013. Investors are cautioned not to treat the estimate as current or rely on the estimate in making an investment decision. The MRE 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 MRE as current mineral resources, and the company is not treating this historical MRE as a current estimate. It is uncertain whether, following evaluation and/or further exploration, the historical MRE 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 the MRE up to the CIM reporting standards.

Qualified person

Curtis Ferron, PGeo (Ontario), independent consultant 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 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.