An anonymous director reports

TRILOGY METALS ANNOUNCES CLOSING OF PRIVATE PLACEMENT

Trilogy Metals Inc. has closed the previously announced non-brokered private placement of 5,854,545 common shares of the company at a price of 55 U.S. cents per common share for gross proceeds of $3.22-million (U.S.).

The private placement was led by the company's two largest shareholders. Electrum Strategic Opportunities Fund LP and a wholly owned subsidiary of South32 Ltd. subscribed for $1.2-million (U.S.) each under the private placement. In addition to Electrum and South32, Tony Giardini, the company's president and chief executive officer, participated in the private placement. Electrum, South32 and Mr. Giardini are affiliates or insiders of Trilogy.

Collectively, related parties purchased an aggregate of 4,545,454 common shares under the private placement. The related parties are each considered a related party of the company and the sale of common shares under the private placement to the related parties accordingly constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The related party portion of the private placement was exempt from the minority approval requirement of Section 5.6 and the formal valuation requirement of Section 5.4 of MI 61-101 as neither the fair market value of the related party portion of the private placement, nor the fair market value of the consideration of the related party portion of the private placement, exceeded 25 per cent of the company's market capitalization.

At the closing of the private placement, the company's issued and outstanding common shares total 154,837,574. Electrum now holds 21.0 per cent and South32 now holds 12.0 per cent of the issued and outstanding common shares.

Proceeds from the private placement will be used for general corporate purposes.

About Trilogy Metals Inc.

Trilogy Metals is a metal exploration and development company that holds a 50-per-cent interest in Ambler Metals, which has a 100-per-cent interest in the Upper Kobuk mineral projects in northwestern Alaska. On Dec. 19, 2019, South32, a globally diversified mining and metals company, exercised its option to form a 50/50 joint venture with Trilogy. The UKMP is located within the Ambler mining district, one of the richest and most-prospective known copper-dominant districts in the world. It hosts world-class polymetallic volcanogenic massive sulphide deposits that contain copper, zinc, lead, gold and silver, and carbonate replacement deposits that have been found to host high-grade copper and cobalt mineralization. Exploration efforts have been focused on two deposits in the Ambler mining district -- the Arctic VMS deposit and the Bornite carbonate replacement deposit. Both deposits are located within a land package that spans approximately 190,929 hectares. Ambler Metals has an agreement with NANA Regional Corp. Inc., an Alaska Native Corp. that provides a framework for the exploration and potential development of the Ambler mining district in co-operation with local communities. Trilogy's vision is to develop the Ambler mining district into a premier North American copper producer while protecting and respecting subsistence livelihoods.

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