Mr. Tony Giardini reports

TRILOGY METALS REPORTS FIRST QUARTER FISCAL 2026 RESULTS AND PROVIDES UPDATE ON U.S. FEDERAL STRATEGIC INVESTMENT AND PROJECT ADVANCEMENT

Trilogy Metals Inc. has released its financial results for the first quarter ended Feb. 28, 2026, and provides an update on the U.S. federal strategic investment, project advancement at the Upper Kobuk mineral projects (UKMP) in northwestern Alaska, and the broader regulatory and policy environment supporting domestic critical minerals development. Details of the company's financial results are contained in the interim unaudited consolidated financial statements and management discussion and analysis, which will be available on the company's website, SEDAR+ and EDGAR. All amounts are in U.S. dollars unless otherwise stated.

Financial and operational highlights:

• Strong cash balance of $47.8-million as at Feb. 28, 2026, providing significant financial flexibility;
• Continued advancement of the approximately $35.6-million U.S. federal strategic investment, reflecting the strategic importance of the UKMP to domestic critical mineral supply chains; the binding letter of intent with the U.S. Department of War (DOW) provides for an investment of approximately $35.6-million, $17.8-million of which is payable to the company to acquire common shares of the company and warrants of the company and $17.8-million of which is payable South32 Ltd. to acquire previously issued common shares and a call option to acquire previously issued common shares, subject to satisfaction of applicable conditions;
• Expanded senior management and operational capacity at Ambler Metals LLC, the company's 50/50 joint venture with South32, including four new appointments, to support the 2026 work program and accelerate permitting and technical activities;
• U.S. Department of the Interior opened approximately 2.1 million acres to mineral entry through Public Land Order 7966, including federal lands along the Ambler access project (or Ambler Road) corridor, removing future uncertainty over land status;
• U.S. Interior Secretary indicated the White House is actively considering participating in Ambler Road financing, potentially as an equity partner, reinforcing the federal government's commitment to critical mineral infrastructure in Alaska;
• 2026 field season preparations under way for the approved $35-million Ambler Metals work program, including geotechnical and condemnation drilling at Arctic and reopening of the Bornite camp for multiyear exploration use;
• Annual general meeting scheduled for May 13, 2026, in Vancouver, B.C.

Tony Giardini, president and chief executive officer of Trilogy Metals, commented: "The first quarter of fiscal 2026 has been a period of accelerating execution across all fronts. We are building the organizational capabilities at Ambler Metals needed to advance the UKMP through its next development phases while the U.S. federal government continues to demonstrate strong and tangible support for domestic critical mineral production. The opening of approximately 2.1 million acres along the Ambler corridor and public statements by the Interior Secretary regarding potential federal participation in road financing represent meaningful progress toward derisking the access infrastructure for the project. With our 2026 field program fully funded, our Ambler Metals team in place, and permitting preparations advancing, we are well positioned for a productive year."

Selected results

The following selected financial information is prepared in accordance with U.S. GAAP (generally accepted accounting principles).

For the three-month period ended Feb. 28, 2026, the company reported a net loss of $7.1-million compared with a net loss of $3.6-million for the three-month period ended Feb. 28, 2025. The increase in net loss is primarily driven by two non-cash items: (i) the mark-to-market fair value adjustment of $1.5-million for the derivative liability related to the company's obligation to issue common shares and warrants to the DOW; and (ii) stock-based compensation charges as a result of the annual grant with higher Black-Scholes values in the current year compared with the prior year. The loss is also impacted by an increase in activity at Ambler Metals, which resulted in a larger amount for the company's share of loss on the equity investment and an increase in personnel costs due to the addition of senior staff.

Corporate and project activities

Corporate and strategic developments

During the quarter, the company continued to expand its corporate and joint venture capabilities. At the corporate level, additions in strategic advisory, corporate development, investor relations and communications are supporting increased oversight of joint venture activities, strengthened stakeholder engagement and the company's ability to advance long-term strategic initiatives. On Feb. 23, 2026, Ambler Metals announced four senior appointments: Michael Galicki as vice-president, exploration, Cole Schaeffer as vice-president, human resources, community and partnerships, Jenna Tan as vice-president, finance, and Ron Rimelman as senior director, permitting. These appointments coincide with South32's increased personnel commitment to Ambler Metals and are intended to ensure the joint venture is well resourced to advance the 2026 work program, including mine-permitting preparations and field season activities.

Significant progress was also achieved on the Ambler access project during the quarter. On Feb. 25, 2026, the U.S. Department of the Interior issued Public Land Order 7966, which partially revoked prior land withdrawals and opened approximately 2.1 million acres to mineral entry along the Dalton Utility Corridor, including federal lands traversed by the proposed Ambler Road alignment. This action, together with the Alaska Industrial Development and Export Authority right-of-way permits executed in fiscal 2025, continues to derisk the road permitting pathway. In March, 2026, U.S. Interior Secretary Doug Burgum publicly indicated the White House is actively considering whether to participate in financing the Ambler Road, potentially as an equity partner, reinforcing the administration's commitment to critical mineral supply chain infrastructure.

During the same visit, Mr. Burgum also highlighted federal support for the Alaska LNG (liquefied natural gas) project, a proposed $44-billion natural gas pipeline and liquefaction facility that has received all required federal permits. The approximately 807-mile Alaska LNG pipeline would follow the Dalton Highway corridor, the same infrastructure spine from which the proposed Ambler Road originates. The administration has framed both projects as complementary elements of its Alaska resource development and energy security strategy, with the Dalton corridor land order revocations explicitly benefiting both the Ambler Road and the Alaska LNG pipeline. The company notes that the advancement of major energy infrastructure along the Dalton corridor may enhance the long-term viability of the broader transportation and energy framework supporting the Ambler mining district.

Budget and operational outlook

The company has a 2026 fiscal year budget totalling $22.5-million, which comprises $5-million for corporate activities and $17.5-million for financing project activities at Ambler Metals. For the three-month period ended Feb. 28, 2026, the company recorded a net loss of $7.1-million, compared with a budgeted loss of $4.8-million. The variance was primarily driven by non-cash expenses that were not included in the budget, partially offset by lower-than-planned expenditures from Ambler Metals. During the quarter, the company recorded a $1.5-million non-cash mark-to-market adjustment related to the derivative liability associated with its obligation to issue common shares and warrants to the DOW. The company also recognized $3.1-million of stock-based compensation expense associated with the current fiscal year's annual equity grant. These two non-cash expenses were not included in the budget and were partially offset by a favourable variance from the accounting for the equity investment in Ambler Metals, reflecting lower expenditures than budget due to slower-than-planned hiring of personnel at Ambler Metals.

U.S. federal strategic investment update

As previously disclosed on Oct. 6, 2025, Trilogy Metals entered into a binding letter of intent with the DOW for a strategic investment of approximately $35.6-million, comprising approximately $17.8-million into Trilogy Metals in exchange for 8,215,570 units (each unit consisting of one common share and three-quarters of a 10-year warrant exercisable at one cent per share), and approximately $17.8-million to South32 for an equivalent number of common shares plus a call option. Upon closing, the DOW would hold approximately 10 per cent of Trilogy Metals' outstanding common shares.

On March 30, 2026, the parties amended the letter of intent to extend the deadline to May 31, 2026, to allow additional time for the completion of certain closing conditions, including the foreign ownership, control or influence review.

During the first quarter, the company recorded a $1.5-million non-cash mark-to-market adjustment related to the derivative liability associated with the obligation to issue common shares and warrants to the DOW. The derivative liability is expected to be resolved upon satisfaction of the applicable closing conditions.

Liquidity and capital resources

During the three-month period ended Feb. 28, 2026, the company used $2.7-million for operating activities and $2.5-million for investing activities and raised $1.3-million in financing activities. Operating expenditures were driven primarily by corporate salaries, professional fees, and annual regulatory filing fees with the U.S. and Canadian securities commissions. In addition, the company contributed $2.5-million for its share of financing to Ambler Metals. These cash outflows were offset by $1.3-million in proceeds from financing activities, primarily from the company's at-the-market equity program, through which the company may offer and issue up to $200-million of common shares from time to time pursuant to an equity distribution agreement dated Nov. 7, 2025, and from the exercise of stock options.

As at Feb. 28, 2026, the company had cash and cash equivalents of $47.8-million and adjusted working capital of $47.3-million, which are current assets less current liabilities, excluding the derivative liability, which will be settled by way of the issuance of common shares and warrants. There is sufficient cash on hand to finance the company's fiscal 2026 budget of $5-million and its share of Ambler Metals' fiscal budget of $17.5-million.

Qualified persons

Richard Gosse, PGeo, vice-president, exploration, for Trilogy Metals, is a qualified person as defined by National Instrument 43-101, Standard of Disclosure for Mineral Projects, and Subpart 1300 of Regulation S-K. 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 metals exploration and development company that holds a 50-per-cent interest in Ambler Metals, which owns 100 per cent of the Upper Kobuk mineral projects (UKMP) in northwestern Alaska. The UKMP is located within the Ambler mining district, one of the world's most prospective copper-dominant districts, hosting world-class polymetallic volcanogenic massive sulphide (VMS) and carbonate replacement deposits. Exploration has focused on the Arctic VMS deposit and the Bornite copper-cobalt deposit.

Ambler Metals operates under an agreement with Nana Regional Corp. Inc., supporting responsible exploration and development in co-operation with local communities. Trilogy's vision is to develop the Ambler mining district into a premier North American copper producer while respecting subsistence livelihoods.

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