Mr. Rick Van Nieuwenhuyse reports

TRILOGY METALS REPORTS SIGNIFICANT COPPER AND ZINC DRILL RESULT FOR THE ARCTIC DEPOSIT AND PLANS FOR AN ORE SORTING STUDY

Trilogy Metals Inc. has released additional infill drill results and provide a project update from its 2017 summer field program at the Arctic polymetallic volcanogenic massive sulphide (VMS) deposit, part of the Upper Kobuk mineral projects (UKMP) located in the Ambler mining district of northwestern Alaska. All amounts are in U.S. dollars unless otherwise stated.

The 2017 Arctic field program included 785.2 metres of diamond drilling to collect representative sample material to conduct bulk ore sorting studies for the Arctic deposit. An additional 273.8 metres of sonic drilling was completed to collect geotechnical, hydrological, geothermal and hydrogeological information for the tailings management facilities and waste rock dump for the project in support of the upcoming prefeasibility study (PFS). The PFS results are anticipated to be released in the first quarter of 2018.

Highlights from the drill program

Based on a cut-off grade of 0.5 per cent copper equivalent (CuEq), significant zones of high-grade copper, zinc, lead, gold and silver mineralization were intersected -- including:

• AR17-0159 intersected four mineralized intervals, including 31.11 metres of 1.58 per cent copper, 2.84 per cent zinc, 0.69 per cent lead, 0.38 gram per tonne gold and 30.79 g/t silver, and 15.25 metres of 2.91 per cent copper, 4.34 per cent zinc, 0.96 per cent lead, 0.66 g/t gold and 44.27 g/t silver.
• AR17-0160 intersected four mineralized intervals, including 25.95 metres of 2.43 per cent copper, 1.19 per cent zinc, 0.16 per cent lead, 0.59 g/t gold and 46.31 g/t silver, and 17.23 metres of 4.42 per cent copper, 5.32 per cent zinc, 1.37 per cent lead, 0.13 g/t gold and 43.92 g/t silver.
• AR17-0161 intersected two mineralized intervals, including 17.60 metres of 2.69 per cent copper, 5.50 per cent zinc, 1.14 per cent lead, 0.66 g/t gold and 54.47 g/t silver, and 4.40 metres of 3.01 per cent copper, 3.80 per cent zinc, 0.95 per cent lead, 0.54 g/t gold and 50.90 g/t silver.
• AR17-0162 intersected one mineralized interval, 6.75 metres of 2.35 per cent copper, 6.00 per cent zinc, 1.57 per cent lead, 0.71 g/t gold and 43.27 g/t silver.
• AR17-0163 intersected one mineralized interval, 6.48 metres of 2.95 per cent copper, 6.33 per cent zinc, 1.40 per cent lead, 0.84 g/t gold and 44.23 g/t silver.

"These results from large-diameter drill holes continue to demonstrate that Arctic is an exceptional copper-zinc-rich deposit. Further engineering and environmental work completed this summer will support completion of the Arctic prefeasibility study by the end of the first quarter of 2018. We expect this study will demonstrate that Arctic is one of the highest-grade, open-pittable copper deposits in the world. And it is located in a mining-friendly jurisdiction in the United States where both our shareholders and stakeholders will be able to reap the benefits of our efforts. Meanwhile, the Alaska Industrial and Export Authority (AIDEA) continues to advance permitting of the Ambler mining district industrial access project with the scoping process set to be finalized by the end of January," stated Rick Van Nieuwenhuyse, president and chief executive officer of Trilogy Metals.

Trilogy Metals completed five PQ diamond drill holes for a total of 785.2 metres of core. This drill program was designed to collect two tons of representative mill feed material for bulk ore sorting testwork at the Steinert facility in Kentucky, an independent facility. The core was quartered for geochemical analysis, and the remaining core shipped to ALS Minerals, in North Vancouver, B.C., Canada, an independent laboratory for coarse crushing and chemical analysis. The core will be sent to the Steinert facility in early 2018 for subsequent bulk ore sorting testing. The ore sorting studies will be carried out after the PFS is released and if determined to be advantageous to overall project, will be incorporated in subsequent studies.

The company is pleased to announce that all five holes encountered mineralized intervals consistent with previous drilling conducted within the resource area on the property. Significant mineralized intervals of high-grade mineralization at a cut-off of 0.5 per cent CuEq are reported in the associated table. These drill results, along with continuing engineering and environmental studies described in the associated table, will be used to support the PFS on the Arctic deposit.

                SIGNIFICANT DRILL INTERCEPTS -- 2017 PQ DRILL PROGRAM
  
Hole             From        To    Length   CuEq    Cu     Zn    Pb       Au     Ag
ID                (m)       (m)       (m)    (%)   (%)    (%)   (%)    (g/t)  (g/t)

AR17-0159      145.45    160.70     15.25   4.64  2.91   4.34  0.96     0.66  44.27
               167.34    198.45     31.11   2.74  1.58   2.84  0.69     0.38  30.79
               203.45    211.95      8.50   4.42  2.64   4.72  0.63     0.49  54.72
               216.55    221.35      4.80   1.62  0.85   1.57  0.44     0.30  32.60
AR17-0160      116.25    121.04      4.79   7.95  5.93   6.19  0.75     0.56  60.53
               133.54    140.67      7.13   8.21  6.61   4.66  0.81     0.53  76.38
               156.00    173.23     17.23   6.20  4.42   5.32  1.37     0.13  43.92
               214.80    240.75     25.95   3.08  2.43   1.19  0.16     0.59  46.31
AR17-0161      143.60    148.00      4.40   4.56  3.01   3.80  0.95     0.54  50.90
               157.90    175.50     17.60   4.87  2.69   5.50  1.14     0.66  54.47
AR17-0162       26.90     33.65      6.75   4.76  2.35   6.00  1.57     0.71  43.27
AR17-0163       26.84     33.32      6.48   5.43  2.95   6.33  1.40     0.84  44.23

Footnotes to drill interval table
Copper equivalent (CuEq) calculations use metal prices 
assumptions of $3/pound for copper, $1/pound for zinc, 90 cents/pound for 
lead, $1,300/ounce for gold and $18/ounce for silver. Copper equivalent 
calculations are adjusted for the expected metallurgical recoveries
of 92 per cent for copper, 88 per cent for zinc, 77 per cent lead, 63 per cent 
for gold, and 56 per cent for silver.
Results are core intervals and not true thickness; true 
widths have not been determined for the intercepts but are 
believed to be representative of actual drill thicknesses.
Significant interval defined as a minimum of 1.0-metre Cu interval 
with average grade greater than 0.5 per cent CuEq.
Cut-off grade of 0.5 per cent CuEq.
Internal dilution up to three metres of less than 0.5 per cent CuEq.
Intervals of less than 1.0 metre not reported.
Core recovery averaged 96 per cent.
Minimum sample length was 0.17 m, average sample length was 2.4 m over all 
and 1.7 m within mineralized zones.
Some rounding errors may occur. 
 

Prefeasibility study update

Trilogy Metals completed 11 sonic drill holes (273.8 metres), 26 test pits and two pump tests during the 2017 field season. This program was developed to collect geotechnical, hydrological, geothermal (permafrost) and hydrogeological information for the various tailings management facilities and waste rock dump areas for the Arctic project. Four of the sonic drill holes were instrumented with thermistors, piezometres and data loggers that will allow for long-term baseline monitoring information to be gathered that will be required for a future permitting document.

Continuing baseline environmental data collection included maintenance of three hydrologic gauging stations and one meteorological station. Surface water quality samples were taken from several surface water locations and analyzed for a full suite of parameters including total and dissolved metals. An aquatics survey of rivers and creeks over the UKMP included identification of fish species present and tissues metals testing. An avian survey over the UKMP was conducted in May to identify bird nest locations, with a follow-up survey in July to measure fledging success.

The company continues to advance the acid-base accounting static and kinetic testwork at Arctic. Six on-site barrel samples were successfully collected during all seasons of 2017 to support the kinetics program. Maintenance and monitoring of all kinetic tests continue into 2018.

Trilogy Metals is pleased to announce that the prefeasibility study is on schedule and anticipated to be completed by the end of the first quarter in 2018.

Quality assurance/quality control program

The drill program, sampling protocol and data verification were managed by qualified persons employed by Trilogy Metals. The diamond drill holes were typically collared at HQ-diameter drill core and reduced to NQ diameter during the drilling process. Samples were collected using a minimum length of 0.2 metre, a maximum length of 2.5 metres and an average sample length of 1.7 metres. Drill core recovery averaged 88 per cent over all and 91 per cent within the prospective lithologies. The drill core was sawn, with half sent to ALS Minerals in Fairbanks for sample preparation and the sample pulps forwarded to ALS's North Vancouver facility for analysis. ALS Minerals in North Vancouver, B.C., is a facility certified as ISO 9001:2008 and accredited to ISO/IEC 17025:2005 from the Standards Council of Canada. Three quality control samples (one blank, one standard and one duplicate) were inserted into each batch of 20 samples. Results of the control samples were reviewed by the qualified person and were all within acceptable limits. Trilogy Metals will submit 5 per cent of the assay intervals from prospective lithologies to an independent check assay lab.

Qualified persons

Andrew W. West, certified professional geologist, exploration manager for Trilogy Metals, is a qualified person as defined by National Instrument 43-101. Mr. West has reviewed the technical information in this news release and approves the disclosure contained herein.

About Trilogy Metals Inc.

Trilogy Metals is a metal exploration company focused on exploring and developing the Ambler mining district located in northwestern Alaska. Exploration efforts have been focused on two deposits in the Ambler mining district -- the Arctic VMS (volcanogenic massive sulphide) deposit and the Bornite carbonate replacement deposit. Both deposits are located within the company's land package that spans approximately 143,000 hectares.

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