Mr. Tony Giardini reports

TRILOGY METALS ANNOUNCES 2026 PROGRAM AND BUDGET FOR AMBLER METALS AND THE CORPORATE BUDGET FOR THE COMPANY

The program and budget for Ambler Metals LLC, as well as Trilogy Metals Inc.'s corporate budget for 2026, reflect a year focused on advancing the Ambler mining district toward permitting, technical derisking and long-term development. All amounts are in United States dollars.

Ambler Metals, the joint venture operating company equally owned by Trilogy and South32 Ltd., has recently approved the 2026 program and budget totalling approximately $35-million for the advancement of the Upper Kobuk mineral projects (UKMP) located in northwestern Alaska.

Advancing the Ambler mining district in 2026

The 2026 work program represents a pivotal year of progress for the UKMP as Ambler Metals prepares to initiate the mine permitting process for the Arctic project, while continuing to advance the technical and organizational foundations required for future development.

The joint venture is targeting mine permit submissions in 2026, potentially leveraging federal expedited programs such as FAST-41, subject to project readiness and continued engagement with stakeholders. FAST-41 is a United States federal framework designed to enhance co-ordination, transparency and predictability for permitting critical infrastructure projects.

In parallel, Ambler Metals will advance engineering, environmental and technical programs required to support a future final investment decision for mine construction and operations.

Exploration, drilling and camp activities

Exploration activities in 2026 will focus primarily on the Arctic project, including geotechnical and condemnation drilling to support mine design, infrastructure placement and future production planning. Ambler Metals will also be preparing the Bornite project camp for continuing exploration and multiyear use. The joint venture plans to open the Bornite camp during the 2026 summer field season to conduct geotechnical and exploration drilling, along with general camp maintenance and capital improvements to support future programs.

Building for the next phase

During 2026, Ambler Metals will re-establish an independent management team dedicated to managing the next stages of advancement at the UKMP. Over the coming years, this team will focus on advancing permitting for the Arctic project, completing technical programs, executing drill campaigns critical for mine design and infrastructure planning, as well as strengthening community engagement, work force development and local participation. Engagement with local communities and regional stakeholders will remain a core element of the program, with continued emphasis on transparent communication, consultation and long-term work force planning.

Ambler access project

Ambler Metals will continue to evaluate, through its existing arrangement with the Alaska Industrial Development and Export Authority (AIDEA), the potential for early stage funding opportunities to support advancement of the Ambler access project (also known as the Ambler Road). The Ambler Road is a proposed 211-mile, industrial-use-only road connecting the Ambler mining district to the Dalton Highway, intended to enable exploration and development at the UKMP.

Corporate budget and financial position

Trilogy Metals has approved its 2026 corporate budget of approximately $5-million, primarily related to public company compliance and oversight of its investment in Ambler Metals.

The company maintains a strong cash position of over $50-million, providing funding for continuing operations and its share of future joint venture requirements. In October, 2025, the company utilized its at-the-market program that was established in May, 2025, and sold 3,513,495 common shares of the company at an average price of $7.12 per share, generating gross proceeds of approximately $25-million.

Additional funding is expected to be available to Ambler Metals following the closing of the previously announced transaction with the United States Department of War. On Oct. 6, 2025, the company announced a strategic investment by the U.S. federal government of approximately $35.6-million to support the development of critical mineral resources at the UKMP through transactions with Trilogy Metals and South32. The transactions are anticipated to close in early 2026.

About Trilogy Metals Inc.

Trilogy Metals is a metal exploration and development company which holds a 50-per-cent interest in Ambler Metals LLC, which has a 100-per-cent interest in the UKMP 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.