Mr. Errol Farr reports

LOYALIST EXPLORATION ANNOUNCES AND GRANT OF RSU'S AND STOCK OPTIONS

Loyalist Exploration Ltd. has issued a total of four million restricted share units and 11 million stock options to certain officers and directors and advisers of the company in accordance with the company's long-term incentive plan. Each RSU entitles the holder to acquire one common share on vesting. The RSUs will vest fully on the one-year anniversary of the grant date. Each option entitles the holder to acquire one common share at an exercise price of five cents for a period of five years. The options vest one-quarter on the grant date and one-quarter six, 12 and 24 months following grant date.

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 mining district in Ontario. The company expects to commence a significant mining permit project at Tully and exploration activities on all four properties as well as expanding the company's Timmins-based property portfolio.

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