Mr. Errol Farr reports

LOYALIST COMMENCES PRELIMINARY ECONOMIC ASSESSMENT ON THE TULLY GOLD PROJECT, TIMMINS, ONTARIO

Loyalist Exploration Ltd. has commenced its preliminary economic assessment (PEA) technical report to advance its 100-per-cent-owned Tully gold project toward a production decision. Tully is located in the prolific Timmins gold camp of Northeastern Ontario.

The PEA, which will determine the economic viability of producing gold from the Tully deposit, is designed to complement the company's recently filed independent technical report supporting the 2026 mineral resource estimate (MRE) for Tully filed on SEDAR+ Aug. 21, 2026 (see below and press release dated Aug. 21, 2026).

Eugene Puritch, PEng, FEC, CET, president of P&E Mining Consultants Inc., will lead the preparation of the PEA as a qualified person under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

Errol Farr, president and chief executive officer of Loyalist, commented: "The commencement of the Tully PEA is a major milestone for the vision of Loyalist to become a gold-producing mining company in the Timmins mining camp. Loyalist recently completed the MRE on Tully, is advancing permitting and looks to have construction financing and all the requirements for a production decision in place in 2027."

The technical report, which supports the 2026 MRE for the project, is entitled "NI 43-101 Technical Report and Mineral Resource Estimate, Tully Gold Project, Timmins, Ontario, Canada," and was prepared by Charles Spath, MSc, PGeo, and Eugene Puritch, PEng, FEC, CET, of P&E Mining Consultants Inc., each of whom is an independent qualified person as defined by National Instrument 43-101. The technical report has an effective date of June 15, 2026, and a report date of Aug. 21, 2026, and was prepared in accordance with National Instrument 43-101 -- Standards of Disclosure for Mineral Projects and the Canadian Institute of Mining Definition Standards for Mineral Resources and Mineral Reserves.

On July 7, 2026, Loyalist announced a 2026 mineral resource estimate for Tully, prepared independently by P&E Mining Consultants in accordance with NI 43-101 and CIM standards. The MRE, effective June 15, 2026, establishes a 164,000-ounce indicated mineral resource (1.62 Mt (million tonnes) at 3.16 g/t (grams per tonne) Au) and a 62,000-ounce inferred mineral resource (0.95 Mt at 2.03 g/t Au). Approximately 73 per cent of the contained gold is classified as indicated, representing a significant increase in geological confidence.

The geological model defines a larger and more continuous underground gold system, with improved geometry that may support underground stopes potentially approaching 20 metres in width. Mineralization remains open along strike and at depth, providing significant potential for mineral resource expansion through additional drilling.

The 2026 MRE incorporates modern 3-D geological modelling, refined mineralized domains, one-metre compositing, domain-specific grade capping, ID interpolation and comprehensive model validation. The model also increases the indicated mineral resource from 93,140 ounces in the 2008 historical estimate to 164,000 ounces, an increase of 76 per cent.

The technical report supports the mineral resource estimate independently prepared by P&E Mining Consultants, with Charles Spath, MSc, PGeo, and Eugene Puritch, PEng, FEC, CET, serving as independent qualified persons under NI 43-101.

Qualified persons statement

The 2026 mineral resource estimate for the Tully gold project was prepared by Charles Spath, MSc, PGeo, and Eugene Puritch, PEng, FEC, CET, of P&E Mining Consultants, each of whom is an independent qualified person (QP) as defined by NI 43-101. The mineral resource estimate has been prepared in accordance with the CIM Definition Standards for Mineral Resources and Mineral Reserves, incorporated by reference into NI 43-101.

The scientific and technical information contained in this news release has been reviewed and approved by Curtis Ferron, PGeo (Ontario), principal geological consultant to Loyalist Exploration, and Eugene Puritch, PEng, FEC, CET, president of P&E, both independent qualified persons as defined under NI 43-101.

Qualified person

Curtis Ferron, PGeo (Ontario), principal geology 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 Canadian mineral exploration and development company focused on creating long-term shareholder value through the advancement of high-quality mineral projects in Timmins, Ont. The company's flagship 100-per-cent-owned Tully gold project, located in the prolific Timmins gold camp of Northeastern Ontario, is a growing underground gold project with significant exploration upside and excellent development potential. Supported by a high-confidence indicated and inferred mineral resource estimate, favourable infrastructure, and a modern geological model, Tully provides a strong platform for continued development and expansion.

Loyalist's strategy is to systematically advance the Tully gold project to production while growing the deposit and continuing to evaluate opportunities to expand its portfolio of high-quality mineral assets.

The company also looks forward to advancing exploration activities on its three other Timmins-based projects -- DeSantis, Gold Rush and Loveland.

The company is committed to maintaining the highest standards of technical excellence and responsible development throughout all stages of project advancement.

We seek Safe Harbor.