An anonymous director reports

TRILOGY METALS REPORTS FISCAL 2023 YEAR END RESULTS

Trilogy Metals Inc. has released its financial results for the year and fourth quarter ended Nov. 30, 2023. Details of the company's financial results are contained in the audited consolidated financial statements and management's discussion and analysis in its annual report on Form 10-K which will be available on the company's website, on SEDAR+ and on EDGAR. All amounts are in United States dollars unless otherwise stated.

For the year ended Nov. 30, 2023, Trilogy reported a net loss of $15-million (or 10 cents basic and diluted loss per common share) compared with a net loss of $24.3-million (or 17 cents basic and diluted loss per common share) in fiscal 2022. The $9.3-million decrease in comprehensive loss in the current year, when compared with fiscal 2022, is due to the decrease in the company's share of losses from its equity investment in Ambler Metals LLC of $9.5-million, decrease in salaries of $200,000, and partially offset from an increase of $600,000 in salaries and directors expense -- stock-based compensation, when compared with prior fiscal year 2022. The decrease in its share of losses of Ambler Metals of $9.5-million is mainly due to the decrease in mineral property expenses over the comparative fiscal year 2022. The lack of an exploration drilling program during the 2023 summer field season resulted in decreases in drilling, engineering and project support cost and partially offset from the increase in spending on the Ambler access project.

Outlook for 2024

Ambler Metals, the joint venture operating company owned equally by Trilogy and South32 Ltd., had $63.8-million of cash as at the fiscal year end on Nov. 30, 2023. The owners have approved a budget for Ambler Metals for fiscal 2024 in the amount of $5.5-million (2023 -- $9.2-million) and $2.5-million (2023 -- $12.3-million) for the Ambler access project of which the entire amounts are financed by the joint venture. The main focus of this year's $5.5-million budget for Ambler Metals is to support external and community affairs, maintain the State of Alaska mineral claims in good standing, and the maintenance of physical assets.

The company has approved a 2024 cash budget for corporate, head office activities of approximately $2.8-million (2023 -- $4-million). The corporate budget consists of personnel and related costs of $700,000 (2023 -- $900,000), professional fees of $600,000 (2023 -0 $1.5-million), investor relations and marketing costs of $100,000 ( 2023 -- $200,000), office-related costs of $400,000 (2023 -- $400,000), insurance costs of $600,000 (2023 -- $0.6-million), regulatory costs of $300,000 (2023 -- $300,000), and exploration activities of $100,000 (2023 -- $100,000). Trilogy had $2.6-million of cash at the fiscal year-end on Nov. 30, 2023. The company intends to finance its future budget requirements through a combination of debt and/or equity issuance.

Liquidity and capital resources

On April 25, 2023, the company completed a non-brokered private placement of 5,854,545 common shares of the company at a price of 55 cents per common share for gross proceeds of $3.2-million and net proceeds of $3.1-million. Financing costs consisted of legal and stock exchange fees.

During the 2023 fiscal year, Trilogy expended $3.1-million on operating activities with the majority of cash spent on corporate salaries, professional fees related to its annual regulatory filings, annual insurance renewal, annual fees paid to the Toronto Stock Exchange and the NYSE American Exchange, and with the American and Canadian securities commissions.

As at Nov. 30, 2023, Trilogy had $2.6-million in cash and working capital (current assets less current liabilities) of $2.4-million. Management continues with cash preservation strategies to reduce cash expenditures where feasible, including but not limited to reductions in marketing and investor conferences and office expenses. In addition, the company's board of directors has agreed to take all of their fees in shares of the company in an effort to preserve cash and increase share ownership. The company's senior management team is also taking a portion of its base salaries in shares of the company to preserve cash.

All project-related costs are financed by the joint venture. Ambler Metals is well financed to advance the Upper Kobuk mineral projects (UKMP) with $63.8-million in cash and $62.4-million in working capital as at Nov. 30, 2023. There are sufficient funds at the joint venture to finance an operating budget of $5.5-million and $2.5-million for the Ambler access project for fiscal 2024. Trilogy does not anticipate having to finance the activities of Ambler Metals until the current cash balance of $63.8-million is expended.

Future cash requirements may vary materially from current expectations. The company will need to raise additional funds in the future to support its operations and administration expenses. Future sources of liquidity are likely in the form of an equity financing but may include debt financing, convertible debt, exercise of options, or other means. The continued operations of the company are dependent on its ability to obtain additional financing or to generate future cash flows. There is no assurance that the company will be able to obtain such financings or obtain them on favourable terms. These uncertainties raise substantial doubt about the company's ability to continue as a going concern.

Qualified persons

Richard 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 holding 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 Corp. Inc., 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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