Loyalist Commences Preliminary Economic Assessment on the Tully Gold Project, Timmins, Ontario

Loyalist Commences Preliminary Economic Assessment on the Tully Gold Project, Timmins, Ontario

(TheNewswire)

Toronto, Ontario – TheNewswire - September 8, 2026 – Loyalist Exploration Limited (CSE: PNGC) (“Loyalist” or the “Company”) is pleased to announce that it has commenced its Preliminary Economic Assessment (“PEA”) Technical Report to advance its 100%-owned Tully Gold Project (“Tully” or the “Project”) towards 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 (the “Technical Report”) supporting the 2026 Mineral Resource Estimate (“MRE”) for Tully filed on SEDAR+ August 21, 2026 (see below and press release dated August 21, 2026).

 

Eugene Puritch, P.Eng., 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 CEO 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, M.Sc., P.Geo., and Eugene Puritch, P.Eng., FEC, CET, of P&E Mining Consultants Inc. (“P&E”), each of whom is an independent Qualified Person as defined by NI 43-101. The Technical Report has an effective date of June 15, 2026 and a report date of August 21, 2026, and was prepared 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.

 

On July 7, 2026, Loyalist announced a 2026 Mineral Resource Estimate for Tully, prepared independently by P&E Mining Consultants Inc. 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 at 3.16 g/t Au) and a 62,000 ounce Inferred Mineral Resource (0.95 Mt at 2.03 g/t Au). Approximately 73% of the contained gold is classified as Indicated, representing a significant increase in geological confidence.

 

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 Deswik™ Stope Optimizer extraction scenario. The cut-off grade and potential mining scenario were calculated using the following parameters; mining cost: $110/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 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 3D geological modelling, refined mineralized domains, one-metre compositing, domain-specific grade capping, ID³ 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%.

 

The Technical Report supports the Mineral Resource Estimate independently prepared by P&E Mining Consultants Inc., with Charles Spath, M.Sc., P.Geo., and Eugene Puritch, P.Eng., FEC, CET, serving as independent Qualified Persons under NI 43-101.

  

Click Image To View Full Size

 

Figure 1. Location of the Tully Gold Project within the Timmins Gold Camp.

 

Qualified Persons Statement

The 2026 Mineral Resource Estimate for the Tully Gold Project was prepared by Charles Spath, M.Sc., P.Geo., and Eugene Puritch, P.Eng., FEC, CET, of P&E Mining Consultants Inc., 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, P.Geo. (Ontario), principal geological consultant to Loyalist Exploration Limited and Eugene Puritch, P.Eng., FEC, CET, president of P&E, both independent Qualified Persons as defined under NI 43-101.

 

About P&E Mining Consultants Inc. P&E is an independent consulting firm based in Brampton, Ontario, specializing in geological and mine engineering services, including NI 43-101 Technical Reports, Mineral Resource and Reserve Estimates, and Preliminary Economic Assessments for mining projects across Canada and internationally.

 

Qualified Person

Curtis Ferron, P.Geo. (ON), 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.

 

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) have reviewed or accept responsibility for the adequacy or accuracy of this release.

 

About Loyalist Exploration Limited

 

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, Ontario. The  Company's flagship 100%-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.

  

For further information please visit the Company's website at www.loyalistexploration.com or contact:

 

Loyalist Exploration Limited

 

Errol Farr, President and CEO

Email: efarr@loyalistexploration.com

Tel: 647-296-1270

 

This news release contains “forward-looking statements” or “forward-looking information” (collectively, “forward-looking statements”) within the meaning of applicable securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as of the date of this news release. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as “expects”, “is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “forecasts”, “budget”, “schedule”, “potential”, “possible” or variations thereof or stating that certain actions, events, conditions or results “may”, “could”, “would”, “should”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding: the ability to complete the Offering on the terms announced, or at all, the timing and content of upcoming work programs; geological interpretations; timing of the Company’s exploration programs; and estimates of market conditions.

Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied by forward-looking statements contained herein. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Certain important factors that could cause actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others: general economic conditions in Canada and globally; industry conditions; governmental regulation of the mining industry, including environmental regulation; geological, technical and drilling problems; unanticipated operating events; competition for and/or inability to retain drilling rigs and other services; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; volatility in market prices for commodities; liabilities inherent in the mining industry; changes in tax laws and incentive programs relating to the mining industry. This list is not exhaustive of the factors that may affect the Company’s forward-looking statements. There may be other factors that could cause actual events or results to differ from those expressed or implied by forward-looking statements contained herein.

Forward-looking statements are necessarily based upon a number of factors and assumptions that, if untrue, could cause actual events or results to differ from those expressed or implied by forward-looking statements contained herein. Forward-looking statements are based upon a number of estimates and assumptions that, while considered reasonable by the Company at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies that may cause the Company’s actual financial results, performance, or achievements to be materially different from those expressed or implied herein. Some of the material factors or assumptions used to develop forward-looking statements include, without limitation: the future price of gold; anticipated costs and the Company’s ability to raise additional capital if and when necessary; volatility in the market price of the Company’s securities; future sales of the Company’s securities; the Company’s ability to carry on exploration and development activities; the success of exploration, development and operations activities; the timing and results of drilling programs; the discovery of mineral resources on the Company’s mineral properties; the costs of operating and exploration expenditures; the Company’s ability to identify, complete and successfully integrate acquisitions; the Company’s ability to operate in a safe, efficient and effective manner; health, safety and environmental risks; the presence of laws and regulations that may impose restrictions on mining; employee relations; relationships with and claims by local communities and indigenous populations; availability of increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); uncertainties related to title to mineral properties; assessments by taxation authorities; fluctuations in general macroeconomic conditions.

The forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Any forward-looking statements and the assumptions made with respect thereto are made as of the date of this news release and, accordingly, are subject to change after such date. The Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

 

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