Loyalist Announces Updated 2026 Mineral Resource Estimate at the Tully GOLD Project: 1.62 MT Indicated at 3.16 G/T Au (164,000 OZ) and 0.95 MT Inferred at 2.03 G/T Au (62,000 OZ), Timmins, Ontario
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LOYALIST ANNOUNCES UPDATED 2026 MINERAL RESOURCE ESTIMATE AT THE TULLY GOLD
PROJECT: 1.62 MT INDICATED AT 3.16 G/T AU (164,000 OZ) AND 0.95 MT INFERRED AT 2.03 G/T
AU (62,000 OZ), TIMMINS, ONTARIO
Updated Geological Model Defines a Larger, Higher-Confidence Underground Gold System with
Significant Exploration Upside and a Strong Foundation for Future Development
Toronto, Ontario – July 7, 2026 – Loyalist Exploration Limited ("Loyalist" or the "Company") (CSE:
PNGC) is pleased to announce significantly updated independent Mineral Resource Estimates ("MRE") for
its 100%-owned Tully Gold Project ("Tully" or the "Project"), located in the prolific Timmins Gold Camp of
northeastern Ontario. Prepared by P&E Mining Consultants Inc. ("P&E") in accordance with National
Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") and the CIM Definition
Standards for Mineral Resources and Mineral Reserves (May 2014), the 2026 MRE substantially increases
geological confidence while defining a larger, more continuous underground gold system that strengthens
the Project's pathway toward future engineering and econo mic studies. The updated geological
interpretation also confirms that mineralization remains open along strike and at depth, highlighting
significant potential for future expansion through additional drilling. The effective date of the Mineral
Resource Estimate is June 15, 2026.
Figure 1: 73% of the contained gold ounces classified as Indicated Mineral Resources, representing approximately 15% of the
known mafic tuff host unit volume.
Key Highlights
• Indicated Mineral Resource Estimate: 1.62 million tonnes grading 3.16 g/t gold, containing 164,000
ounces of gold, representing approximately 73% of total contained gold ounces, that makes up
approximately 15% of the known tuff unit volume.
• Inferred Mineral Resource Estimate: 0.95 million tonnes grading 2.03 g/t gold, containing 62,000
ounces of gold.
204m
Planned
Development
530m
Most Stockwork Zones are Indicated
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• Approximately 73% of contained gold ounces classified as Indicated, materially increasing geological
confidence and providing a strong foundation for future engineering and economic studies.
• Modern geological modelling defines a larger and more continuous underground gold system than
previously recognized.
• Improved geometry supports underground stopes potentially approaching 20 metres in width,
enhancing future mine planning flexibility.
• Mineralization remains open along strike and at depth, providing multiple opportunities for expansion
through additional drilling.
• Located in the Timmins Gold Camp, the Project benefits from excellent infrastructure, nearby
processing facilities and access to a highly experienced mining workforce.
• Updated grade estimation methodology and comprehensive model validation further increase
confidence in the Indicated and Inferred Mineral Resource Estimate and support advancement toward
a Preliminary Economic Assessment ("PEA").
The 2026 MRE reflects a comprehensive re-evaluation of the Tully Gold Project using modern geological
modelling, updated grade estimation techniques and an improved understanding of the mineralized Mafic
Tuff host unit. The revised geological interpretation defines a larger, more continuous underground gold
system and provides a substantially stronger technical foundation for future exploration, engineering and
economic studies.
The updated MRE includes an Indicated Mineral Resource Estimate of 1.62 million tonnes grading 3.16 g/t
gold containing 164,000 ounces of gold and an Inferred Mineral Resource Estimate of 0.95 million tonnes
grading 2.03 g/t gold containing 62,000 ounces of gold. Approximately 73% of the contained gold ounces
are classified as Indicated Mineral Resources, reflecting increased geological confidence and establishing
a solid foundation for advancing the Project toward engineering studies and future economic evaluation.
The updated geological interpretation also defines broader and more continuous mineralized domains that
are better suited to underground mining. Compared with earlier Mineral Resource Estimate models, the
revised interpretation produces smoother mineralized envelopes that may support underground stopes
potentially approaching 20 metres in width, enhancing development flexibility while highlighting the potential
for future Mineral Resource growth through systematic drilling along strike and at depth.
An independent Technical Report prepared in accordance with NI 43-101 supporting the MRE will be filed
on the Company’s SEDAR+ profile within 45 days of this news release.
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Figure 2. Location of the Tully Gold Project within the Timmins Gold Camp.
Figure 3. Longitudinal projection of the 2026 Mineral Resource and principal mineralized zones.
Errol Farr, President and Chief Executive Officer of Loyalist commented "The updated 2026 MRE
represents a transformational milestone for Loyalist and significantly advances the Tully Gold Project.
Beyond establishing 164,000 Indicated and 62,000 Inferred ounces of contained gold, approximately 73%
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of those ounces are now classified in the higher-confidence Indicated category, providing a substantially
stronger technical foundation for project advancement.
"The updated geological model defines a larger, more continuous underground gold system with improved
mining geometry that we believe enhances the Project's long-term development potential. Importantly,
mineralization remains open along strike and at depth, and as outlined in figure 4, the Indicated area
occupies only about 15% of the know Mafic Tuff host unit leaving meaningful opportunities to expand both
the size and confidence of the Mineral Resource through future drilling.
"Our next steps are clear. We intend to advance the Tully Gold Project toward a Preliminary Economic
Assessment ("PEA"), while progressing mine permitting initiatives, targeted expansion drilling, infill drilling
to further increase the Indicated Mineral Resource, and the technical studies required to support future
economic evaluation and production financing. Management believes the combination of grade, resource
geometry, infrastructure and geological continuity provides a compelling basis to advance the Project
toward a PEA. Located in the heart of the Timmins Gold Camp, with excellent infrastructure, a growing
high-confidence Indicated and Inferred Mineral Resource Estimate and significant exploration upside, we
believe Tully is well positioned to become an important underground gold development project."
2026 Mineral Resource Estimate
The 2026 Indicated and Inferred Mineral Resource Estimate for the Tully Gold Project was independently
prepared by P&E Mining Consultants Inc. in accordance with NI 43-101 and CIM Definition Standards for
Mineral Resources & Mineral Reserves (May 2014). The MRE reflects a comprehensive geological
reinterpretation of the Project supported by modern Mineral Resource modelling and grade estimation
practices.
Table 1. 2026 Tully Gold Project Mineral Resource Estimate with an effective date of June 15, 2026(1-7)
Category
Cut-Off Grade
(g/t Au)
Tonnes
(k)
Grade
(g/t Au)
Contained Au
(koz)
Indicated 1.1 1,620 3.16 164
Inferred 1.1 948 2.03 62
Notes:
1. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral
Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other
relevant issues. It is noted that no specific issues have been identified yet.
2. The Inferred Mineral Resource Estimate in this estimate has a lower level of confidence than that applied to an Indicated
Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred
Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
3. Mineral Resources were prepared in accordance with CIM Definition Standards for Mineral Resources and Mineral
Reserves (May 10, 2014) and CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (Nov
29, 2019).
4. The Qualified Persons are not aware of any known environmental, permitting, legal, title-related, taxation, socio-political,
financial, or other relevant issues that could materially affect the MRE.
5. The MRE is reported at a cut off of 1.1 g/t Au for the conceptual underground DeswikTM Stope Optimizer extraction scenario.
The cut-off grade and potential mining scenario were calculated using the following parameters; mining cost: $1 10/t
underground mining cost; G&A and site service costs: $15/t; processing cost: $35/t; recovery 92%; gold price US$3,500 per
ounce; and minimum stope optimized mining width of 1.25 metres in order to meet the requirement that the Mineral
Resources show "reasonable prospects for eventual economic extraction." US$/C$ exchange rate was 0.72.
6. All prices and costs are in Canadian dollars ($CAD) unless otherwise stated.
7. All numbers are rounded to reflect the relative accuracy of the estimates.
The updated Indicated and Inferred Mineral Resource Estimate incorporates updated geological
wireframes, refined mineralized domains, one-metre compositing, domain-specific grade capping, Inverse
Distance Cubed (ID³) interpolation, and comprehensive model validation. Together, these improvements
provide a robust representation of the geometry and continuity of the Tully gold system while supporting
future Mineral Resource expansion and underground mine planning.
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Modern Resource Estimation Methodology
The 2026 Mineral Resource Estimate was completed using current industry-standard geological modelling
and grade estimation practices that provide a more accurate representation of the geometry, continuity,
and distribution of gold mineralization than earlier Mineral Resource estimates.
P&E Mining Consultants Inc. developed an updated three-dimensional geological model based on a
comprehensive reinterpretation of the mineralized Mafic Tuff and associated stockwork zones. This modern
geological framework forms the basis of the Mineral Resource Estimate and more accurately reflects the
continuity of the Project.
The Mineral Resource Estimate incorporates:
• updated three-dimensional geological wireframes;
• constrained data = 343 drill holes and 19,551 metres.
• one-metre assay compositing (n=5,224) within individual mineralized domains;
• domain-specific high-grade capping (Stockwork 150 g/t, Tuff 30 g/t);
• Inverse Distance Cubed (ID³) grade interpolation;
• domain-specific variography and optimized search parameters;
• a bulk density of 2.86 t/m³;
• DeswikTM Stope Optimized potential mining shapes for MRE reporting; and
• Mineral Resource reporting constrained by the current Loyalist property boundary.
The Property constrained current Mineral Resource model is estimated to contain approximately 4% fewer
ounces than the unconstrained model, reflecting mineralization extending beyond the current Property
boundary.
Quality Assurance and Quality Control (QA/QC)
Diamond drill core samples from the Tully Gold Project were analyzed by several independent commercial
laboratories during historical exploration programs, including Actlabs (Timmins, Ontario), Cattarello
Assayers (Timmins, Ontario), Swastika Laboratories (Swastika, Ontario), and Bell-White Analytical
Laboratories (Haileybury, Ontario). In addition, selected samples from the 2010 and 2011 drilling programs
were submitted to Goldcorp's Porcupine Gold Mines laboratory in Timmins, Ontario, as an independent
check laboratory to verify analytical results.
Gold analyses were performed using industry-standard fire assay methods with an atomic absorption (AA)
finish. Samples returning elevated gold values were routinely re-analyzed using a gravimetric finish, where
appropriate.
The historical drilling programs completed in 2004, 2010, 2011, and 2013 incorporated quality assurance
and quality control (QA/QC) procedures consistent with accepted industry practices at the time of
exploration. These procedures included the routine insertion of certified reference materials, blank samples,
and duplicate samples into the sample stream to monitor analytical accuracy, precision, and potential
contamination. In addition to each laboratory's internal quality control procedures, external QA/Q C
measures, including independent check assays, were implemented to further verify the accuracy and
reproducibility of the analytical results.
Mineral Resource Classification
Indicated and Inferred Mineral Resources were classified in accordance with the CIM Definition Standards
incorporated by reference into NI 43-101, based on drill spacing, geological continuity, estimation quality,
and confidence in the geological interpretation.
The principal Stockwork Zones exhibit strong geological continuity and drill density, resulting in
approximately 73% of the contained gold ounces being classified as Indicated Mineral Resources. Areas
with wider drill spacing or lower confidence were classified as Inferred Mineral Resources.
The updated classification reflects the improved understanding of the Project and provides a solid basis for
future infill drilling, Mineral Resource expansion, and engineering studies.
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Figure 4. Longitudinal projection showing the distribution Stock Work Zones of Indicated and Inferred Mineral Resources.
Model Validation
P&E completed a comprehensive validation program to confirm that the block model accurately represents
the available geological and assay data. Validation included:
• visual comparison of block grades and drill hole composites;
• comparison of ID³ estimates with nearest-neighbour models;
• swath plot analysis;
• statistical comparison of composite and block grades; and
• reconciliation of geological wireframes with the final block model.
The validation confirmed excellent agreement between the geological model, assay database, and
estimated block grades, providing confidence that the 2026 Mineral Resource Estimate is both geologically
representative and statistically robust.
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Figure 5. Wireframe-to-block-model reconciliation illustrating the close agreement between geological interpretation and estimated
mineralized volumes.
Comparison of the 2008 Historical and 2026 NI 43-101 Mineral Resource Estimates
The updated 2026 Indicated and Inferred Mineral Resource Estimate (supersedes previous historical
estimates) reflects a significant evolution in the understanding of the Tully Gold Project since the historical
estimate completed in 2008. While the historical estimate established Tully as a high-grade underground
gold deposit, the updated model defines a substantially larger mineralized system supported by modern
geological interpretation and current Mineral Resource estimation practices.
The most significant improvement is the growth of the Indicated Mineral Resource, which has increased
from 93,140 ounces to 164,000 ounces. In addition, the updated model outlines more continuous
mineralized domains that provide greater confidence for future engineering studies and underground mine
planning.
Table 2. Comparison of the 2008 Historical and 2026 NI 43-101 2026 Mineral Resource Estimates.
Category 2008 Historical
Estimate 2026 MRE Change
Indicated Tonnes 362,090 1,620,000 +347%
Indicated Grade (g/t
Au) 8.00 3.16 Broader mineralized
envelope
Indicated Gold (oz) 93,140 164,000 +76%
Inferred Tonnes 114,990 948,000 +60%
Inferred Gold (oz) 23,290 62,000 *
*The Inferred categories are not directly comparable since the 2008 historical estimate included projected extensions below the
drilled Mineral Resource, whereas the 2026 Mineral Resource Estimate reflects updated geological modelling and current reporting
criteria.
Enhanced Underground Mineability
The revised geological model has significantly improved the potential mineability of the Project. Earlier
Mineral Resource Estimate models contained numerous narrow, discontinuous mineralized lenses that
limited mine planning flexibility. The updated interpretation defines broader, more continuous mineralized
zones that are better suited to modern underground mining methods.
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Preliminary evaluations indicate that portions of the principal Stockwork Zones may support underground
stopes potentially approaching 20 metres in width, representing an important improvement in potential
mining efficiency and future project economics.
Figure 6. Comparison of historical Mineral Resource shapes with the updated "More Mineable Shapes" model.
Positioned for Future Growth
The updated Indicated and Inferred Mineral Resource Estimate provides a robust technical foundation for
the next phase of project development and exploration. The revised geological model will support
engineering studies, and assist in evaluating the economic potential and guide future infill and expansion
drilling, of the Tully Gold Project.
With a larger, higher-confidence Indicated and Inferred Mineral Resource Estimate, favourable
underground mining geometry, and significant exploration upside, Loyalist believes the Tully Gold Project
is well positioned to advance toward future economic studies and continued growth.
Figure 6. Longitudinal projection illustrating the current Mineral Resource, priority exploration targets, and conceptual underground
mining geometry.