Paul Cutler lost 2&1 to Austrian golfer Philipp Fendt in the last 32 of the British Amateur Championship at Southport on Thursday.
The Portstewart man was the last remaining Northern Ireland player in the tournament.
Cutler, who won the West of Ireland Championship in April, cruised to a 5&4 victory over Frenchman Victor Perez in the last 64 of the competition.
Malone's Garth McGee made his exit to Norway's Joakim Mikkelsen.
McGee lost at the first extra hole at the last 64 stage on Wednesday.