LOYAL METALS LTD — Capital/Financing Update 2021

Jul 1, 2021

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Updated statement of commitments

The below table sets out the statement of commitments based on:

• (a) the actual amount of funds raised, being $5,000,000; and

• (b) the granted tenements only.[1]

Monger Gold Exploration Program (2 Years)

Mt Monger North and South Projects	$5,000,000 Capital Raise	$5,000,000 Capital Raise
Activity	Year 1 ($)	Year 2 ($)
Administration (heritage, tenure, enviro etc.)	$166,000	$166,000
Technical review and data compilation	$10,000	$20,000
Mapping / pXRF	$50,000	$40,000
Geological and rig supervision services	$85,000	$70,000
Civil works and rehabilitation	$20,000	$20,000
Geophysical surveys (magnetics, gravity)	$55,000	$50,000
Vacuum drilling	$260,000	$217,000
RC drilling	$210,000	$210,000
Analytical services (Vacuum and RC)	$180,000	$145,000
Subtotals	$1,036,000	$938,000
Gibraltar Project
Activity	Year 1 ($)	Year 2 ($)
Administration (heritage, tenure, enviro etc.)	$105,000	$105,000
Technical review and data compilation	$12,000	$8,000
Mapping / pXRF	$25,000	$25,000
Geological and rig supervision services	$60,000	$55,000
Civil works and rehabilitation	$20,000	$20,000
Geophysical surveys (magnetics, gravity)	$25,000	$20,000
Vacuum drilling	$130,000	$90,000

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RC drilling	$215,000	$215,000
Analytical services (Vacuum and RC)	$100,000	$85,000
Subtotals	$692,000	$623,000
Exploration Expenditure / Annum	$1,728,000	$1,561,000
Exploration Expenditure (over 2 years)	$3,289,000

Notes:

1 The above expenditure program does not include any expenditure on tenements the subject of the third-party application for Special Prospecting Licences.