Mr. Richard Gosse reports

TRILOGY METALS REPORTS FIRST QUARTER FISCAL 2024 FINANCIAL RESULTS

Trilogy Metals Inc. has released its financial results for the first quarter ended Feb. 29, 2024. Details of the company's financial results are contained in the interim unaudited consolidated financial statements and management's discussion and analysis 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 three-month period ended Feb. 29, 2024, Trilogy reported a net loss of $3.6-million compared with a net loss of $5.1-million for the three-month period ended Feb. 28, 2023. The decrease in comprehensive loss in the first quarter of 2024 compared with the same quarter in 2023 is due to the decrease in its share of loss of Ambler Metals LLC, professional fees and corporate personnel expenses. The decrease in Trilogy's share of losses of Ambler Metals is mainly due to a reduction in wages and mineral property expenses at the joint venture. The primary driver for the decrease in mineral property expenses compared with the quarter in the prior year is a decrease in activity by the Alaska Industrial Development and Export Authority (AIDEA) at the Ambler access project (as defined below) of which Ambler Metals assists with financing.

Corporate and project activities

The company has a 2024 fiscal year cash budget totalling $2.8-million. During the quarter ended Feb. 29, 2024, it was on budget with cash expenditures of $800,000 for personnel costs, professional fees, insurance, regulatory and office expenses. The company's current office lease expires at the end of June, 2024, and it has signed a new office lease starting July 1, 2024, for four years.

Ambler Metals

The board of Ambler Metals approved a 2024 fiscal year budget totalling $5.5-million to support external and community affairs, to maintain the State of Alaska mineral claims in good standing, and for the maintenance of physical assets. During the quarter ended Feb. 29, 2024, Ambler Metals expended $1.2-million on salaries and wages, professional fees, and mineral property expenses in engineering and project support costs compared with the budget of $1.4-million for the quarter.

Ambler mining district industrial access project (Ambler access project)

In December, 2023, the board of Ambler Metals approved a 2024 fiscal year budget of $2.5-million for the Ambler access project to assist AIDEA with financing costs related to the final supplemental environmental impact statement (SEIS) and completion of cultural resource studies and engineering studies related to bridge crossings along the road route. For the quarter ended Feb. 29, 2024, Ambler Metals expended $400,000 to AIDEA compared with the budget of $600,000 for the quarter.

On March 18, 2024, the United States Bureau of Land Management (BLM) filed its 11th status report with the courts stating that it posted the draft SEIS on its e-planning website on Oct. 13, 2023, and published notice of availability of the draft SEIS in the federal register on Oct. 20, 2023. The public comment period ended on Dec. 22, 2023. The BLM conducted several public meetings concerning the draft SEIS, and conducted associated ANILCA Section 810 hearings on subsistence use in communities affected by the project. The BLM had previously reported that it anticipated publishing a final SEIS in the first quarter of calendar year 2024, but now anticipates publishing a final SEIS in the second quarter of calendar year 2024. The BLM continues to anticipate publishing a record of decision within the second quarter of calendar year 2024.

Liquidity and capital resources

Trilogy expended $600,000 on operating activities during the three-month period ending Feb. 29, 2024, with the majority of cash spent on professional fees and American and Canadian securities commission fees related to the company's annual regulatory filings, annual fees paid to the Toronto Stock Exchange and the NYSE American Exchange, and corporate salaries.

As at Feb. 29, 2024, Trilogy had cash and cash equivalents of $2-million and working capital of $1.7-million. Management continues with cash preservation strategies to reduce cash expenditures where feasible, including but not limited to reductions in marketing, investor conferences and office expenses. In addition, the company's board of directors has agreed to take all of its fees in deferred share units in an effort to preserve cash. 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 Ambler Metals. Amber Metals is well financed to advance the Upper Kobuk mineral projects (UKMP) with $61.3-million in cash and cash equivalents and $61.1-million in working capital as at Feb. 29, 2024. There are sufficient funds at Ambler Metals to finance this fiscal year's budget for the UKMP and the Ambler access project. Trilogy does not anticipate having to finance the activities of Ambler Metals until the current cash and cash equivalent balance of $61.3-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 debts, 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 material 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.

We seek Safe Harbor.