A newly discovered fossiliferous horizon within sediments belonging to the Coy Pond Complex of the Exploits Subzone in central Newfoundland yields the graptolite Undulograptus austrodentatus s.l. and cyclopygid trilobite Cyclopyge grandis brevirhachis. This late Arenig faunule constrains the upper age limit of the ophiolite complex and is the first record of an Early Ordovician cyclopygid trilobite in North America. This is consistent with a paleogeographic affinity for south-central Newfoundland with the northern oceanic margin of Avalonia in a peri-Gondwanan position during the Early Ordovician and contrasts with coeval shelly and graptolitic faunas from the Notre Dame Subzone of central Newfoundland, which show marked Laurentian affinities. The Exploits Subzone is generally considered equivalent to the region of Scotland lying south of the Southern Upland Fault. The Newfoundland discovery, which is supported by faunal data from elsewhere in Newfoundland and in Ireland, suggests that the region around the Southern Upland Fault, rather than the Solway Firth, represents the location of the "Iapetus suture" in Britain in Lower Ordovician rocks.