Mr. Tony Giardini reports

TRILOGY METALS ANNOUNCES POTENTIAL FOR BY-PRODUCT GERMANIUM AT THE BORNITE COPPER-COBALT PROJECT, ALASKA

Trilogy Metals Inc. has noted that recent research conducted with the assistance of the Colorado School of Mines and the United States Geological Survey (USGS) has highlighted the potential for germanium to be a byproduct during future copper production from the South Reef area of the Bornite copper-cobalt project. Germanium is a critical element with increasing demand in modern technologies and significant supply risks. China, the world's largest producer of germanium, has adopted export controls intended to restrict the export of germanium, among other metals.

Additionally, Ambler Metals LLC, the joint venture operating company owned equally by Trilogy and South32 Ltd., will be providing samples to the school and the USGS to be used in their collaboration on critical minerals in the U.S. The Bornite project is part of Ambler Metals' Upper Kobuk mineral projects (UKMP) in northwestern Alaska which also includes the flagship Arctic copper-zinc-lead-silver-gold project, and surrounding state mining claims and Nana Regional Corp. Inc. lands.

Bornite is located approximately 24 kilometres southwest of the Arctic deposit that is envisioned to be served by the Ambler access road. The Bornite deposit has a total inferred resource of 6.5 billion pounds of copper. It is a carbonate-hosted copper deposit with stacked stratabound mineralized bodies or reefs that include the near-surface lower and upper reefs, that together have an in-pit inferred resource of 170 million tonnes (Mt) grading 1.14 per cent copper (using a 0.5 per cent copper cut-off) and the deeper and higher-grade Ruby zone and South Reef area. South Reef has an inferred resource of 22 Mt at 3.48 per cent copper (using a 1.79 per cent copper cut-off).

Germanium at South Reef

Germanium values ranging from 5 per cent copper in the South Reef core were a key criteria in the sampling strategy. Although the samples represent only a small part of the South Reef area, the results clearly demonstrate that germanium is present at levels that are significantly higher than values obtained using a standard analytical method where a volatile germanium compound is lost during reaction with hydrochloric acid.

Importantly, the thesis work confirms the close association between the germanium sulphide renierite (Cu10ZnGe2Fe4S16 to Cu11GeAsFe4S16) and copper sulphides, most commonly bornite and chalcocite. In the 1980s, the USGS identified renierite and germanite (Cu13Ge2Fe2S16) in samples from the Ruby zone occurring as discrete grains up to 75 microns across, embedded within grains of bornite. The close association with copper sulphides suggests the germanium sulphides will in part be recovered in the copper concentrate during flotation without special or additional processing.

Tony Giardini, president and chief executive officer of Trilogy, commented: "We are excited about our ongoing collaboration with the USGS and the Colorado School of Mines. Germanium is an important metal with numerous applications, particularly in the manufacture of semiconductor chips, fibre-optic systems and high-efficiency solar cells. Prices for the high-value metal have steadily climbed to approximately $2,750 per kilogram, a 35-per-cent increase from January, 2020. We believe this trend will continue due to China's recent export curb. It is imperative that other sources of germanium are developed. The most significant Western source is the Red Dog mine in Alaska, operated by Teck Resources Ltd. in partnership with the land owner, Nana, which is approximately 320 km from the Ambler mining district."

Richard Gosse, vice-president, exploration, of Trilogy, said: "I would like to thank Alexander Jones for the research he did as part of his MSc thesis at the Colorado School of Mines on the distribution of germanium at the South Reef deposit, as well as his supervisor, Dr. Katharina Pfaff, manager of the school's mineral and material characterization facility, and Dr. Garth Graham of the USGS, for their oversight and assistance in the collection and subsequent studies. The high standard of their analytical work has highlighted the importance of germanium at Bornite and we look forward to contributing to their new project to better understand the availability of critical mineral resources in the U.S."

Germanium at Bornite

The underreporting of germanium using a standard analytical method was recognized by the company in 2011. At that time, 50 mostly continuous core samples ranging from 0.65 metre to 3.34 metre were selected from four drill holes. Germanium values ranged from less than one part per million to 83 ppm compared with a maximum value of 1.15 ppm using a standard analytical method. The best composite result obtained was 17.56 metres averaging 30 ppm germanium with 12.48 per cent copper, part of a 176-metre drill intercept grading 4.01 per cent copper in hole RC11-0187. Prior to this work, only six samples from Bornite are known to have been analyzed for germanium using sample preparation methods specifically for germanium. Including the samples used in the Jones thesis, it appears only 140 samples have been correctly analyzed for germanium in the 70-plus years since the first hole was drilled at Bornite.

Work has now started to accurately determine the amount and distribution of germanium at Bornite. Samples collected by Trilogy from Kennecott's pile of mineralization that was excavated during shaft sinking in the 1960s were recently analyzed at an ALS laboratory in Australia using an analytical method specialized to prevent the loss of the volatile germanium compound. The results confirm the loss of germanium using the standard four-acid digest. In addition, Ambler Metals will soon begin reanalyzing 14 composite samples and their resulting concentrates obtained from metallurgical test work conducted in 2019 and 2021.

Finally, Ambler Metals has recently accepted a proposal from the Center to Advance the Science of Exploration to Reclamation in Mining (CASERM) at the school with leveraged USGS funding to contribute samples from Bornite to further investigate the occurrence, distribution and sequestration of critical elements, including germanium, using a suite of microanalytical methods such as scanning electron microscopy- and X-ray fluroescence-based techniques, electron probe micro analysis, and laser ablation inductively coupled plasma mass spectrometry. Objectives of the study include compiling a comprehensive whole-rock 60-plus geochemical data set of select samples from the Bornite deposit that complement the existing data set from South Reef related to the MSc study. Additional sampling of mineralized core for the study is in progress.

Germanium

Various modern technologies, including infrared systems used in thermal imaging applications such as night-vision goggles, as well as fibre optics, semiconductors and solar panels, use germanium. About 130 tonnes of germanium are produced globally each year, up from 50 to 70 tonnes 20 years ago, primarily from zinc residues and fly ash (waste from the burning of coal), with China producing between 60 and 80 per cent. Supply and price are largely determined by recovery processes, geopolitical and legislative factors, and environmental regulations.

Estimates on the future demand for germanium vary widely and are largely based on different solar energy scenarios. Germanium is an essential component of solar photovoltaic cells that use amorphous silicon-germanium thin-film technology. Future technologies that could also strongly affect demand are fibre optics and SiGe semiconductors used in 5G telecom and related infrastructure.

Copper and cobalt

Copper mineralization at Bornite comprises chalcopyrite, bornite and chalcocite as stringers, veinlets and breccia fillings in hydrothermally altered dolostone within a sequence of alternating carbonates (limestones and dolostones) and calcareous phyllite. As with the other world-class carbonate-hosted copper deposits, such as at Kipushi (Democratic Republic of the Congo) and Tsumeb (Namibia), Bornite shows early pyrite-dolomite alteration followed by copper-dominant sulphide mineralization with associated cobalt, germanium, silver and zinc.

Studies of cobalt mineralization at Bornite indicate that most of the cobalt occurs as cobaltiferous pyrite both within and enveloping the deposit. Cobalt is also present as two cobalt-bearing sulphides, carrollite and cobaltite, that are associated with the copper mineralization. The Bornite technical report (as defined below) on the mineral resource update of the Bornite project includes representative drill hole intersections with cobalt grades showing drill holes within South Reef containing higher grades than drill holes in-pit.

Critical minerals and Alaska

Critical minerals such as copper, cobalt and germanium play an essential role in powering modern technologies, from renewable energy systems and electric vehicles, to advanced electronics and national defence. Trilogy's management is confident that high-grade Alaskan mineral deposits such as Bornite can play an important role in securing a reliable supply of these materials, which are essential for the United States' economic competitiveness and national security.

Copper, cobalt and germanium are included in the U.S. critical materials list, which informs eligibility for tax credits for suppliers under the Inflation Reduction Act.

Quality assurance/quality control program

The drilling program, sampling and assaying protocol, and data verification for germanium completed during 2011 were managed by qualified persons (QPs) employed by NovaCopper Inc. The diamond drill holes were completed using HQ or NQ diameter core. Drill core was cut lengthwise into halves using a diamond saw; one-half was used for the assay sample and the other half retained in core boxes and archived at site. Samples were collected through mineralized zones using a 0.3 m minimum length and 3.1 m maximum length; median sample length is 2.6 m.

Each core sample was placed into a bag with a numbered tag, and quality control samples were inserted between core samples using the same numbering sequence. The samples were grouped into batches for shipping and laboratory submissions. Each batch of 20 samples contains one certified reference material (CRM), one blank (BLK) and one crushed duplicate (DUP). Blank samples are commercial landscape marble. Duplicate samples were prepared at the sample preparation facility by taking a second split from the entire crushed sample. Chain-of-custody records were maintained for sample shipments and the custody was transferred upon delivery from NovaCopper expeditor to the laboratory.

Samples were shipped to the ALS Minerals laboratory in Fairbanks, Alaska, U.S., for sample submission. ALS Minerals Fairbanks is a satellite sample preparation facility accredited under ALS Minerals. ALS Minerals Fairbanks shipped the samples to ALS Minerals in Reno, Nev., U.S., for sample preparation and analysis. ALS Minerals is an independent laboratory certified under ISO 9001:2008 and accredited under ISO/IEC 17025:2005. ALS Minerals includes its own internal quality control samples comprising certified reference materials, blanks and pulp duplicates.

Drill core samples were weighed, dried, coarsely crushed to 70 per cent passing six millimetres, finely crushed to 70 per cent passing two mm, riffle split to 250-gram subsamples and pulverized to 85 per cent passing 75 micrometres. Gold analyses were completed using a 30-gram lead fire assay and atomic absorption spectroscopy finish (Au-AA23). Multielement analyses for 48 elements were completed using a geochemical four-acid digestion and inductively coupled plasma emission spectroscopy/mass spectrometry finish (ME-MS61m). Overrange assays for silver, copper, zinc and sulphur were completed using an ore-grade four-acid digestion and ICP-ES finish (ME-OG62). Additional analyses were completed for barium and mercury.

Gold, silver, copper, lead and zinc assays for QC samples were reviewed to ensure that CRMs are within tolerance limits specified on supplier certificates, BLKs are below acceptable thresholds, and DUPs display statistical patterns normally expected for sample types, methods and elements.

Samples submitted for germanium check analyses were analyzed at ALS Minerals by a three-acid digestion (Ge-MS66), which comprises nitric-hydrofluoric-orthophosphoric acids specifically set up to avoid volatilization of germanium chloride that occurs with a conventional four-acid digestion that comprises nitric-perchloric-hydrofluoric-hydrochloric acids. Although external germanium CRMs were not included with the check samples, higher germanium values are more in line with expectations based on mineralogy.

Qualified Person

Mr. Gosse, PGeo, vice-president, exploration, for Trilogy Metals, is a qualified person as defined by National Instrument 43-101. Mr. Gosse 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 and development company which 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 which is one of the richest and most prospective known copper-dominant districts in the world. It hosts world-class polymetallic volcanogenic massive sulphide (VMS) deposits that contain copper, zinc, lead, gold and silver, and carbonate replacement deposits which 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, an Alaska native corporation 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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