Financial Performance - For the three-month period ended February 29, 2024, Trilogy Metals reported a net loss of $3.6 million, a decrease from a net loss of $5.1 million for the same period in 2023, representing a 29.4% improvement[5]. - Total expenses for the first quarter of 2024 were $2.82 million, down from $3.61 million in the same quarter of 2023, indicating a reduction of 21.7%[5]. Cash and Working Capital - As of February 29, 2024, Trilogy Metals had cash and cash equivalents of $2.0 million and working capital of $1.7 million, reflecting ongoing cash preservation strategies[11]. - Ambler Metals LLC, in which Trilogy holds a 50% interest, had cash and cash equivalents of $61.3 million and working capital of $61.1 million as of February 29, 2024, sufficient to fund its fiscal year's budget[12][13]. Budget and Expenditures - The Board of Ambler Metals approved a 2024 fiscal year budget of $5.5 million to support external and community affairs and maintain mineral claims[7]. - The Ambler Access Project has a budget of $2.5 million for 2024, with $0.4 million expended in the first quarter against a budget of $0.6 million[8]. - Trilogy Metals expended $0.6 million on operating activities during the first quarter, primarily on professional fees and regulatory filings[10]. Future Funding Needs - The Company anticipates needing to raise additional funds in the future to support operations, with potential sources including equity financing and debt financing[14]. Environmental Impact Statement - The final Supplemental Environmental Impact Statement (SEIS) is now expected to be published in the second quarter of 2024, delayed from earlier expectations[9]. Cost Reduction Measures - The Company’s management is taking measures to reduce cash expenditures, including accepting compensation in deferred share units and shares[11].

Financial Performance - For the quarter ended February 29, 2024, Trilogy Metals reported a net loss of $3.6 million, a decrease from a net loss of $5.1 million for the same period in 2023, representing a 29.3% improvement [82]. - Comprehensive loss for the period was $3.6 million compared to $5.1 million in the previous year, primarily due to reduced share of loss from Ambler Metals and lower stock-based compensation [82]. - The company’s share of loss on equity investment was $793,000 for the quarter, down from $1.5 million in the same quarter last year, indicating improved financial performance [82]. - General and administrative expenses for the quarter were $415,000, slightly up from $408,000 in the previous year [82]. - Professional fees decreased significantly to $200,000 from $570,000 year-over-year, reflecting cost management efforts [82]. Budget and Expenditures - The company’s cash budget for the fiscal year 2024 totals $2.8 million, with cash expenditures of $0.8 million for the quarter, remaining on budget [77]. - Ambler Metals LLC approved a fiscal year 2024 budget of $5.5 million, with actual expenditures of $1.2 million for the quarter, slightly below the budgeted $1.4 million [78]. - The Ambler Access Project has a budget of $2.5 million for fiscal year 2024, with $0.4 million spent in the quarter against a budget of $0.6 million [79]. - The company expended $0.6 million on operating activities during the three-month period ending February 29, 2024, primarily on professional fees and regulatory filings [83]. Cash Position and Future Funding - As of February 29, 2024, the company had cash and cash equivalents of $2.0 million and working capital of $1.7 million [84]. - Ambler Metals, funded with $61.3 million in cash and cash equivalents, is well-positioned to advance the UKMP and the Ambler Access Project without requiring additional funding from Trilogy until current cash is expended [85]. - Future cash requirements may vary, and the company will need to raise additional funds, likely through equity financing, to support operations and administration expenses [86]. Operational Developments - Trilogy Metals has signed a new office lease starting July 1, 2024, for four years, indicating ongoing operational stability [77]. - The company anticipates the final Supplemental Environmental Impact Statement (SEIS) for the Ambler Access Project to be published in the second quarter of 2024 [80]. Management and Strategic Decisions - The company is implementing cash preservation strategies, including reductions in marketing and office expenses, and management is taking a portion of their salaries in shares [84]. - Management assesses the possibility of impairment in the carrying value of its equity method investment in Ambler Metals, which requires significant judgment [93]. - The company faces substantial doubt about its ability to continue as a going concern due to uncertainties in obtaining future financing [88]. Shareholder Information - As of April 3, 2024, the company had 160,166,788 common shares issued and outstanding, along with 14,354,400 stock options at a weighted-average exercise price of CDN$1.79 [90]. - The company has no material off-balance sheet arrangements [89]. - There are no new accounting pronouncements affecting the company [91].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended November 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission File Number: 1-35447 TRILOGY METALS INC. (Exact Name of Registrant as Specified in Its Charter) British Columbia 98-1006991 (State or Other Ju ...

Table of contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended August 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission File Number: 1-35447 TRILOGY METALS INC. (Exact Name of Registrant as Specified in Its Charter) British Columbia 98-1006991 (State or Ot ...

Financial Performance - For the three-month period ended May 31, 2023, the company reported a net loss of $2.8 million, a decrease from a net loss of $4.1 million in the same period of 2022, representing a 31.9% improvement[84] - For the six-month period ended May 31, 2023, the company reported a net loss of $7.9 million, compared to a net loss of $9.1 million for the same period in 2022, reflecting a 13.2% reduction in losses[85] - The company's share of loss on equity investment decreased to $1.6 million for the three-month period ended May 31, 2023, down from $2.5 million in the same period of 2022, indicating improved performance from Ambler Metals[84] - Salaries and stock-based compensation expenses decreased, contributing to the overall reduction in comprehensive loss[84] Cash and Working Capital - The company had $4.2 million in cash and working capital of $3.5 million as of May 31, 2023, with ongoing cash preservation strategies in place[87] - Ambler Metals, which funds all project-related costs, had $72.8 million in cash and $71.8 million in working capital as of May 31, 2023, sufficient to cover the current fiscal year's budget for the UKMP and the Ambler Access Project[88] - The Board of Directors agreed to take all fees in Deferred Share Units (DSUs) to preserve cash, and senior management is also taking a portion of their salaries in shares[87] Project Development - The budget for the Ambler Access Project is set at $24.6 million, with $12.3 million approved for the 2023 field season work[79] - Trilogy Metals' Upper Kobuk Mineral Projects are part of a 50/50 joint venture with South32, focusing on the Arctic and Bornite projects[75] - The United States Bureau of Land Management anticipates publishing a draft Supplemental Environmental Impact Statement in Q3 2023 and a final SEIS in Q1 2024[78] - The company is focused on exploration and development in the Ambler mining district, Alaska, through its subsidiary, NovaCopper US Inc.[75] Risks and Challenges - The company has faced risks related to the COVID-19 pandemic and its impact on operations[65] - The company has a history of losses and expects future losses as it continues its exploration activities[67] - The company is dependent on third-party approvals for the development of its mineral properties, which may not be received in a timely manner[64] Shareholder Information - Trilogy Metals reported a gross proceeds of $3.2 million from a non-brokered private placement of 5,854,545 common shares at a price of $0.55 per share[82] - As of July 14, 2023, the company had 155,559,334 common shares issued and outstanding, along with 13,049,400 stock options outstanding[90] - The company completed its Annual General Meeting on May 17, 2023, with all nominated directors receiving over 97% of the votes cast[83] Operating Expenses - The company expended $1.5 million on operating activities during the six-month period ending May 31, 2023, primarily on corporate salaries and professional fees[86] - There are no material off-balance sheet arrangements reported by the company[89]

Table of contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 1-35447 TRILOGY METALS INC. (Exact Name of Registrant as Specified in Its Charter) British Columbia 98-1006991 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) Canada V7Y 1G5 (Address of Principal Executive Offices) (Zip Code) (604) 638-8088 (Regi ...

Mineral Reserves and Resources - As of November 30, 2022, the Arctic Project has probable mineral reserves of 23.35 million tonnes with an average grade of 2.11% Cu, 0.56% Pb, 2.90% Zn, 0.42 g/t Au, and 31.8 g/t Ag[143]. - The book value of the company's investment in the Upper Kobuk Mineral Projects is $142.8 million as of November 30, 2022[144]. - The mineral resource estimate includes 35.7 million tonnes of indicated resources with an average copper grade of 2.98% and a contained copper content of 2,347 million pounds[243]. - The inferred mineral resource estimate is 4.5 million tonnes with an average copper grade of 1.92% and a contained copper content of 189 million pounds[243]. - As of November 30, 2022, the Mineral Reserve estimate includes 46.7 million tonnes with an average grade of 2.11% Cu, 0.56% Pb, 2.90% Zn, 0.42 g/t Au, and 31.8 g/t Ag[259]. - Trilogy Metals holds a 50% attributable interest in the reported Mineral Reserves and Resources[259][260]. Project Economics - The project demonstrates a pre-tax net present value (NPV) of $1,500 million at an 8% discount rate, with an internal rate of return (IRR) of 25.8% and a payback period of 2.9 years[319]. - The estimated cash flow forecast over the life of the mine is $3,942.6 million undiscounted pre-tax cash flow[320]. - The average life-of-mine (LOM) operating cost is estimated to be $59.83 per tonne milled, with mining and processing costs accounting for 37.6% and 37.8% of total operating costs respectively[311][314]. - The total estimated initial capital cost for the Arctic Project is $1,177 million, with a total project cost of $1,291.2 million including sustaining and closure costs[308][309]. - The project has an initial capital cost of $1,177 million, sustaining capital costs of $114 million, and closure costs of $428 million, leading to a pre-tax IRR of 25.8% and an NPV of $1,500 million at an 8% discount rate[339]. - The project has a payback period of 2.9 years pre-tax and 3.1 years post-tax, with a post-tax IRR of 22.8% and an NPV of $1,108 million[339]. Mining and Processing - The project is amenable to open pit extraction methods, with reasonable prospects for economic extraction established[237]. - The Arctic Project is designed as a conventional truck-shovel operation with a processing rate of 10 kt/d[262]. - The processing plant is designed for a capacity of 10,000 t/d, operating at an overall availability of 92%[267]. - The average lead concentrate grade for the Avg Talc composite could be improved with optimized separation conditions, indicating potential for enhanced recovery[228]. - The project will require a combination of existing and proposed access roads, including the AAP road to connect to the Dalton Highway[277]. - The mine requires approximately two years of pre-strip operations before actual production can commence[337]. Metallurgical Testing and Recovery - The average Bond ball mill work index (BWi) was reported at 8.82 kWh/t, indicating the materials are considered soft or very soft for grinding requirements[216]. - The 2012-2015 metallurgical test results indicated that the samples responded well to the flotation flowsheet tested[214]. - Copper recoveries to the bulk copper-lead concentrates ranged from 89% to 93%, with grades between 24% to 28%[216]. - Lead recovery to the bulk copper-lead concentrates was approximately 92% to 94%, containing 9% to 13% lead[216]. - Zinc recovery was reported at 84.2% from Composite Zone 1 & 2, 93.0% from Composite Zone 3, and 90.5% from Composite Zone 5, with average zinc grades higher than 55%[216]. - Gold recoveries to the bulk copper-lead concentrates ranged from 65% to 80%, while silver recoveries ranged from 80% to 86%[216]. - The metallurgical recovery projections for the life-of-mine (LOM) are 92% for copper, 77% for lead, 88% for zinc, 63% for gold, and 56% for silver[239]. Environmental and Community Impact - The project is expected to create significant employment opportunities for local residents during exploration, construction, and operation phases[300]. - The company aims to support education, job training, and economic growth for local communities throughout the project's life[303]. - The water treatment plant is designed to treat all parameters in the predicted site wastewater to meet the state's Water Quality Standards for Subarctic Creek[288]. - A cyanide removal process demonstrated a 99% removal efficiency, supporting low cyanide concentrations in tailings pond solutions[222]. Exploration and Geological Information - Exploration activities targeting VMS style mineralization in the Ambler Sequence have been conducted from 2004 to the present, with significant work completed between 2004 and 2007[187]. - The Ambler Mining District is characterized by a 110 km strike length of VMS-like stratabound mineralization[173]. - The Arctic deposit mineralization occurs within eight modelled zones, extending to a depth of approximately 250 m below the surface[179]. - The mineralization predominantly consists of coarse-grained sulphides, including chalcopyrite, sphalerite, and galena[181]. - The Arctic deposit has strong similarities to deposits found in the Finlayson Lake VMS district, Yukon, and the Bathurst district, New Brunswick[186]. Infrastructure and Access - The Arctic Project is located in a geographically isolated area with no current road access, approximately 270 km from Kotzebue[151]. - Primary access to the Arctic Project is by air, with four gravel airstrips capable of accommodating charter fixed wing aircraft[153]. - The Arctic access road must be constructed to at least a pioneer road condition to facilitate the delivery and operation of mine fleet and support facilities[338].

Table of contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended August 31, 2022 OR British Columbia 98-1006991 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) Canada V7Y 1G5 (Address of Principal Executive Offices) (Zip Code) (604) 638-8088 (Registrant's Telephone Number, Including Area Code) ☐ TRANSIT ...

Table of contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended May 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission File Number: 1-35447 TRILOGY METALS INC. (Exact Name of Registrant as Specified in Its Charter) British Columbia 98-1006991 (State or Other ...

Table of contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended February 28, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission File Number: 1-35447 TRILOGY METALS INC. (Exact Name of Registrant as Specified in Its Charter) British Columbia 98-1006991 (State or ...