Trilogy Metals Unveils Finalized Agreements for Strategic Equity Investment from the U.S. Department of Defense

Trilogy Metals Inc. Announces Strategic Investment with U.S. Department of War

Symbol: TMQ
Location: VANCOUVER, BC
Date: Aug. 28, 2026

Trilogy Metals Inc. (NYSE American: TMQ; TSX: TMQ) has finalized definitive agreements with the U.S. Department of War (DOW) for a strategic equity investment amounting to approximately US$35.6 million. This investment aims to advance the exploration and development of the Upper Kobuk Mineral Projects (UKMP) in northwestern Alaska.

Key Details of the Transaction:

• Investment Structure:

  • In Trilogy Metals: DOW will invest US$17.8 million for 8,215,570 units at US$2.17 per unit. Each unit includes:
    • One common share
    • Three-quarters of a 10-year warrant, exercisable at US$0.01 contingent on specific project milestones.
  • Through South32: DOW will pay US$17.8 million to South32 to acquire the same number of shares, along with a call option for an additional 6,161,678 common shares.

• Ownership Post-Transaction: DOW will hold approximately 10% of Trilogy Metals.

• Use of Proceeds: Funds will be directed toward the exploration and development of the UKMP.

• Board Representation: DOW can appoint one independent director until October 6, 2028 and has rights to a non-voting board observer as long as it holds a minimum of 8 million shares.

• Indebtedness Covenant: Trilogy Metals has committed not to incur third-party debt exceeding US$1 billion without DOW’s consent until January 1, 2029.

Pre-Closing Milestones Completed:

• FOCI Review: The U.S. Government has completed its Foreign Ownership, Control or Influence risk assessment.
• Congress Authorization: Necessary authorizations from the U.S. Congress have been obtained.

Comments from Leadership:

Tony Giardini, President and CEO, stated, “This agreement marks a milestone for building a secure domestic supply of critical minerals in Alaska.”

George K. Kollitides II, DOW Director, emphasized the investment’s role in enhancing American industrial strength and mitigating foreign supply vulnerabilities.

Additional Information:

• Trilogy Metals will rely on the Eligible Interlisted Issuer exemption under the TSX Company Manual for this transaction.
• The Ambler Access Project aims to establish a 211-mile industrial-only road to enhance accessibility to the Ambler Mining District, crucial for advancing mineral project development.

Disclaimer: This announcement contains forward-looking statements regarding the expected closing of the investment and future activities related to the UKMP. Actual results may differ significantly due to various risks and uncertainties.

For more detailed information and updates, please visit www.sedarplus.ca.

About Trilogy Metals Inc.

Trilogy Metals focuses on the exploration and development of the Upper Kobuk Mineral Projects in Alaska, in partnership with South32 Limited. The UKMP contains significant copper-dominant resources and has a commitment to environmental responsibility and collaboration with local communities.

This summary captures the essential elements of Trilogy Metals Inc.’s recent announcements regarding their strategic investment and project developments.