Loyalist Exploration Limited Terminates Private Placement, Closes Shares for Debt Transaction
Toronto, Ontario — October 16, 2026 — Leads & Copy — Loyalist Exploration Limited announced Friday it has terminated its previously announced non-brokered private placement, stating no further tranches or closings will be completed. The company had previously closed the first tranche of the offering on August 31, 2026, consisting of 25,000,000 common shares sold at $0.04 per share, raising $1,000,000. The offering was initially announced on August 10, 2026.
In a separate transaction, Loyalist Exploration also announced the closing of a shares for debt deal. The company settled $113,285.00 in outstanding debt to certain creditors by issuing 2,832,125 common shares at $0.04 per share. These shares are subject to a four-month-and-one-day hold period.
The First Tranche proceeds are earmarked for completing ongoing NI 43-101 technical reports, including a resource estimate and preliminary economic assessment for the company’s Tully project. Funds will also support production permitting work at Tully, property payments, and general working capital.
Errol Farr, President and CEO of Loyalist, expressed gratitude for subscriber support, which he stated enabled the company to fund the ongoing Tully Preliminary Economic Assessment (PEA). Farr reiterated the company’s strategy to become the next gold producer in the Timmins camp by advancing Tully toward a permitted mining operation.
The Shares for Debt Transaction included the settlement of $45,000 of indebtedness owed to Farr and Leonard Mackenzie, Vice President of Exploration. They received a combined 1,125,000 common shares at $0.04 per share. As these individuals are considered related parties under Multilateral Instrument 61-101, the transaction is classified as a related party transaction. Loyalist is relying on exemptions from formal valuation and minority approval requirements based on the fair market value of the transaction not exceeding 25% of the company’s market capitalization.
In connection with the First Tranche, Loyalist paid $37,200 in cash and issued 930,000 non-transferable broker warrants to Haywood Securities Inc. Each warrant allows Haywood to acquire one common share at $0.075 per share until August 31, 2028. All securities issued in the First Tranche are subject to a four-month-and-one-day hold period.
Securities offered have not been registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States or to U.S. persons without registration or an exemption. This release does not constitute an offer for sale in the United States.
Loyalist Exploration Limited is a Canadian mineral exploration and development company focused on advancing mineral projects in Timmins, Ontario. Its flagship asset is the 100%-owned Tully Gold Project, located in the Timmins Gold Camp. The company also holds interests in the DeSantis, Gold Rush, and Loveland projects in Timmins.
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