Mr. Errol Farr reports

LOYALIST EXPLORATION PROVIDES 2025 LOOKBACK, 2026 OUTLOOK

Loyalist Exploration Ltd. has provided a review of its accomplishments in 2025 and has outlined its strategic outlook for 2026.

2025 year in review

In 2025, the company launched a new corporate mission: Buy Timmins. At the outset of the year, Loyalist was a Timmins-founded company without properties or a defined operating strategy, focused solely on identifying high-quality opportunities within one of Canada's most prolific mining camps.

In February, 2025, Loyalist executed two acquisition agreements nearly simultaneously, securing the Gold Rush property southwest of Timmins and the Loveland property to the northeast. Financing for these acquisitions followed shortly thereafter. By mid-March, the opportunity to acquire the Tully property emerged, resulting in Loyalist assembling three highly prospective assets within the Timmins mining camp.

Tully quickly became the company's primary focus, given its advanced stage and documented near-term gold production potential, particularly within a strong gold market environment.

During the summer of 2025, Loyalist completed the acquisition of Loveland with the support of key existing and new shareholders. The company then advanced toward closing the Tully acquisition, which was successfully completed on Oct. 2, 2025, with continued shareholder support.

In October, Loyalist was introduced to the DeSantis property, located immediately south of Timmins. On Dec. 1, 2025, the company announced its fourth Timmins-area acquisition, strategically positioned along the prolific Porcupine-Destor Fault, one of the most significant gold-bearing structures in Canada.

By year-end 2025, Loyalist had firmly established its Buy Timmins strategy through the acquisition of four high-quality properties within the Timmins mining camp, including a project with near-term production potential. These milestones were achieved with total capital raised of approximately $1.4-million. During the year, the company's share price increased from 0.5 cent to four cents, with market capitalization reaching approximately $16-million.

Management and directors

During the year the company added three new directors:

• Bob Bresee, a graduate of the Haileybury School of Mines and 45 years in the mining business and along-time resident of Timmins, Ont.;
• Michael Cachia, a CPA with an extensive history of working in the natural resource sector, is Loyalist's audit committee chairman;
• David Drinkwater has extensive business and legal experience across many industries with a broad focus including corporate finance and mergers and acquisitions.

Filled out its advisory board including:

• Jean Roy and Kevin Filo, both active in the mining industry of Timmins;
• Steve Balch (former director of Loyalist) and vice-president, exploration, at Canada Nickel;
• Birks Bovaird, chair of Energy Fuels Inc., a leading United States-based critical minerals company.

Management additions:

• Ashley Nadon, CPA, as chief financial officer;
• Curtis Ferron, PGeo, as principal consulting geologist.

2026 outlook

Loyalist plans to build on this momentum in 2026 through the following initiatives:

Tully property

• Complete and execute an exploration program along strike to the east and west to further expand the resource base;
• Begin permitting activities with the objective of advancing toward gold production as efficiently as possible;
• Initiate a National Instrument 43-101-compliant resource estimate aimed at expanding known mineral resources;
• Commence a preliminary economic assessment (PEA) and updated production scenario.

DeSantis property

• Complete a comprehensive property review;
• Complete the acquisition of the DeSantis property;
• Exploration planning, with field activities anticipated later in 2026.

Loveland property

• Complete a full technical review and finalize exploration plans targeting the 2026 summer field season.

Gold Rush property

• Design and implement a spring/summer exploration program, including geochemical and geophysical surveys.

Property acquisitions

Loyalist will continue to review acquisition opportunities consistent with its Buy Timmins strategy, focusing on high-quality assets within the golden ring of the Timmins mining district.

Events

Loyalist will be:

• Participating in Existing Agency's virtual webinar series, on Jan. 15, 2026, at 2 p.m., see press release dated Jan. 7, 2026, for details;
• Attending the Mining Investment Event (June 2 to June 4, 2026) in Quebec City;
• Attending the Canadian Mining Expo (June 10 to June 11, 2026) in Timmins, Ont.

Corporate outlook

While matching the scale of Timmins' historic major mining companies remains an ambitious goal, Loyalist's objective is clear: to build a strong, growth-oriented exploration and development company that delivers meaningful shareholder returns and becomes a long-term contributor to the Timmins mining community. The company is well positioned to achieve significant milestones in 2026.

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 and 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 expanding the company's Timmins-based property portfolio.

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