Yes he's still a possibility. Here is Q&A with Pitino from a week or so ago:
Q. What's the status of Zach Lofton, who transferred from Illinois State but was dismissed before the season? Will he rejoin the team after staying in school all year?
A. We met at the beginning of the season. Basically, if he would've transferred, he would've lost half a year (eligibility) because of his clock. I'm not sure exactly, but he would've only had a second semester to play. So he begged me and said, 'Coach, can I stay here and try to work my way back?' Zach is a good kid. He's not a bad kid. I said, 'Listen, let's see how you do in class and with some community service -- a bunch of things -- and see how it goes. Not making any promises, but maybe we'll re-evaluate it later on.' It's a long shot certainly, but I didn't want to leave the kid out high and dry. I wanted to make sure he had an opportunity, because we have a scholarship.
http://www.twincities.com/sports/ci_27883398/gophers-coach-richard-pitino-we-need-put-up
http://www.forums.gopherhole.com/boards/showthread.php?61244-Pitino-Q-amp-A-with-Marcus
Go Gophers!!