Mr. Errol Farr reports

LOYALIST EXPLORATION ANNOUNCES $1,700,000 NON-BROKERED PRIVATE PLACEMENT

Loyalist Exploration Ltd. has arranged a non-brokered private placement consisting of the sale of hard-dollar and flow-through common shares. The offering will consist of the sale of up to: (i) 21.25 million hard-dollar common shares in the capital of the company at a price of four cents per common share for gross proceeds of up to $850,000; and (ii) 17 million common shares, each to be issued as flow-through shares within the meaning of the Income Tax Act (Canada) at a price of five cents per flow-through share for gross proceeds of up $850,000.

The proceeds from the sale of flow-through shares will be used to incur Canadian exploration expenses as defined in Subsection 66.1(6) of the Income Tax Act and flow-through mining expenditures as defined in Subsection 127(9) of the Income Tax Act. Such proceeds will be renounced to the subscribers with an effective date not later than Dec. 31, 2025, in the aggregate amount of not less than the total amount of gross proceeds raised from the issue of flow-through shares. More specifically, the proceeds from the sale of flow-through shares will be used for exploration and permitting of the Tully gold property, as well as data review, digitization, an internal resource calculation, exploration planning, and the commencement of a National Instrument 43-101 resource estimate and technical report; as well as the commencement of exploration on the Gold Rush property.

The proceeds from the sale of hard-dollar common shares will be for marketing, property payments on the Gold Rush property and the DeSantis property as well as general working capital.

The company may pay finder's 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 per 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 Dec. 18, 2025.

The company provides the following updates to its announcement on Dec. 2, 2025, regarding the engagement of Existing Agency Inc. Existing is located at 120 Adelaide St. W, Suite 1400, Toronto, Ont., M5H 1T1, and its representatives are each arm's-length parties to company. For more information regarding Existing, please contact Cassandra Woloschuk, head of agency (telephone: 647-215-6243; e-mail: hello@weareexisting.com).

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 currently focused on its Buy Timmins strategy, with the recent acquisitions of the Tully gold property, the Loveland nickel/copper/gold property, the Gold Rush gold/silver property and the DeSantis gold property, all located in the Timmins, Ont., mining district. The company expects to commence a significant mining permit project at Tully and exploration activities on all four properties as well as expand the company's Timmins-based property portfolio.

We seek Safe Harbor.