Jones joined the Blue Square Bet Premier side in January on an initial one-month deal.
The teenager, who has started the Imps' last three matches, told Walsall's official website: "It's proving to be a valuable experience for me.
"I'm really enjoying it and hopefully I will come back stronger and a better all-round player for it.
"The standard at this level is very good and it's beneficial for me to be playing competitively against good-standard players.
"The fans have also taken to me and they are really getting behind the team at the moment as we look to pull ourselves up the league table. We get decent crowds and that can really help to push us on in the battles ahead.
"My aim between now and the end of the season is to play regularly and contribute with goals and assists.
"I know that the gaffer is keeping close tabs on me, so I want to prove what I can do and at the same time help Lincoln move in the right direction.
"The experience of being in a new environment and playing regular first-team football at a good level can only help me as I look ahead to next year."