Loyalist Announces Exploration Thesis at the Tully Gold Project - Expansion East, West and at Depth

Executive Summary

• Loyalist Exploration Limited announced a conceptual diamond drill program of approximately 21,674 metres across 70 holes at its Tully Gold Project in Ontario, designed to test along-strike and down-dip extensions of known gold mineralization.
• The program is structured in three phases targeting the west extension, east extension, and deep plunge extensions, with the primary objective of significantly expanding the project's historical mineral resource footprint.
• The initiative supports an upcoming NI 43-101 compliant updated Mineral Resource Estimate (MRE) and a planned Preliminary Economic Assessment (PEA), pending successful financing and regulatory approvals.

Key Details

• Program Scope: ~21,674 metres in 70 conceptual diamond drill holes across three distinct phases.
• Phase 1 (West Extension): 24 holes totaling ~7,913 metres (hole lengths 250–451m) to test along-strike mineralization extension to the west of the main zone.
• Phase 2 (East Extension): 22 holes totaling ~7,161 metres (hole lengths 250–401m) to test along-strike mineralization extension to the east.
• Phase 3 (Deep Targets): 24 holes totaling ~6,600 metres (hole lengths 125–700m) to test down-dip and plunge extensions beneath the historical resource area.
• Technical Methodology: Program will commence with a 3D magnetic inversion of existing high-resolution airborne magnetic survey data to refine lithological contacts between weakly magnetic hanging-wall sedimentary rocks and strongly magnetic footwall ultramafic units.
• Targeting Strategy: Focus on mafic tuff units demonstrating a strong association with gold mineralization, while evaluating structural controls and interpreted geophysical anomalies.
• Drill Parameters: Collar dips ranging from -47° to -80°, with azimuths oriented to intersect interpreted mineralized structures.
• Regulatory & Financing Status: Conceptual program subject to financing, regulatory approvals, and receipt of all required exploration permits. Final hole locations and parameters remain subject to field conditions and geological observations.
• Future Studies: Follows engagement of P&E Mining Consultants to advance an updated NI 43-101 compliant MRE. Company intends to advance a Preliminary Economic Assessment (PEA) contingent on successful MRE completion.
• Historical Resource Context: 2013 Francis Minerals Ltd. estimate (not NI 43-101 compliant or verified) of 107,000 oz Au (capped) comprising 358,000 tonnes grading 6.56 g/t Au (indicated) and 184,000 tonnes grading 5.17 g/t Au (inferred).
• Historical MRE Parameters: Cut-off grade of 2.5 g/t Au, gold price of $1,510/oz, metallurgical recovery of 92%, high-grade assay cap at 70 g/t Au, and bulk density of 2.71 t/m³.
• Project Location & Status: 458-hectare mining lease located ~25 km northeast of Timmins, Ontario, in a well-established mining district with excellent infrastructure; advancing toward permitting with additional exploration planned for 2026.

Notable Quotes

• “We are excited to initiate this program of exploration at Tully,” said Errol Farr, President and CEO of Loyalist. “It is designed not only to significantly expand the known mineralization but also to unlock the broader potential of the project. With strong geological indicators and a clear exploration model, we believe Tully has significant upside.”