Trilogy Metals Initiates Work to Establish Cobalt Resource Estimate for the Bornite Project in Alaska, USA

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News Release

Trilogy Metals Initiates Work to Establish Cobalt Resource Estimate

for the Bornite Project in Alaska, USA

May 3, 2018 - Vancouver, British Columbia – Trilogy Metals Inc. (TSX/NYSE

American: TMQ) (“Trilogy Metals” or the “Company”) is pleased to announce that work has

been initiated to estimate a cobalt resource for the Bornite Project. Preliminary results from

our on-going geometallurgical studies demonstrate our understa nding of cobalt mineralogy

and distribution to the point that warrants initiating a cobalt resource estimate, which, when

established, would be in addition to the coppe r resource for the Bornite deposit. The work

has been focused on examining metallurgical products from both the in-pit resource area and

the higher-grade below-pit copper resource area at Bornite along with classic petrographic

and microprobe work.

Highlights of the geometallurgical study are as follows:

 Initial metallurgical and geometallurgical work on in-pit and below-pit samples

concluded that cobalt is found primarily within three mineral species: cobaltiferous

pyrite, cobaltite, and carrollite.

 A majority (+80%) of the cobalt is found in pyrite which preferentially reports to the

copper tails. Further test work will be forthcoming on producing a cobaltiferous pyrite

concentrate.

 At a 100ppm cutoff, cobalt assays range from 0.01% to 0.04% Co and includes

intervals such as: 18.44m of 0.35% Co (RC-34), 36.85m of 0.1% Co (RC11-0187),

and 6.79m of 0.42% Co (RC11-0184).

 Geometallurgical and metallurgical studies are ongoing to better understand

mineralogic distribution and metallurgical response.

Rick Van Nieuwenhuyse, President and CEO of Trilogy Metals commented, “It has become

imperative that the United States secure its own sources of critical minerals. We have known

that cobalt occurs with copper mineralization at Bornite for some time. With the completion

of our metallurgical work related to copper, we decided to put forth further effort to

understand how the cobalt was distributed. No w that we have established from our initial

test work that ~80% to 90% of the cobalt reports to the copper tails as cobaltiferous pyrite,

we will complete flotation test work to concentrate cobalt into a pyrite-rich flotation product

that can be considered for further upgrading and recovery of cobalt metal at the Bornite site.”

Mr. Van Nieuwenhuyse continued, “With the market interest in finding significant cobalt

sources outside of the Congo – where child labor and worker exploitation have been

highlighted by Amnesty International and others as problematic for the Auto and Electric

TSX/NYSE American

Symbol: TMQ

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Battery Industries, defining a large, North American cobalt resource has become a priority for

the Company. With cobalt currently trading over $40 per pound, we believe the cobalt

potential at Bornite could be significant and is worth pursuing. We look forward to reporting

a maiden cobalt resource next quarter now that our QAQC work has been completed.”

Cobalt was recently identified by the United States of America as 1 of 35 critical mineral

commodities. On February 16, 2018, U.S. Depa rtment of the Interior issued a notice

presenting a draft list of 35 mineral commodities deemed critical pursuant to Executive Order

13817 issued on December 20, 2017, “A Federa l Strategy To Ensure Secure and Reliable

Supplies of Critical Minerals”. See the notice, which contains the draft list of critical mineral

commodities on the Federal Register at the following link:

https://www.federalregister.gov/documents/2018/02/16/2018-03219/draft-list-of-critical-

minerals).

A “critical mineral” as defined by the Executive Order is a mineral identified to be (i) a non-

fuel mineral or mineral material essential to the economic and national security of the United

States, (ii) the supply chain of which is vulnerable to disruption, and (iii) that serves an

essential function in the manufacturing of a product, the absence of which would have

significant consequences for the U.S. economy or national security.

The notice states: “These commodi ties merit considerations in furthering the policy of the

Federal Government to reduce the Nation's vulnerability for the security and prosperity of the

United States”. The critical minerals list was developed with input and information from the

U.S. Geological Survey (“USGS”), the Department of Defense and other U.S. Government

agencies. Trilogy Metals is also entering into a Technical Assistance Agreement with the USGS

to research the distribution of critical elements in the carbonate-hosted Bornite copper

deposit, particularly Germanium (Ge), Rhenium (Re), Gallium(Ga), and Cobalt (Co), which

enables the USGS to assess the potential for the United States’ critical mineral resources.

The draft list of critical minerals specifically identifies cobalt as a critical metal because of its

use in rechargeable batteries such as in electr ic vehicles and to hard en steel in jet engines

and other high-tech applications. Based on th e U.S. Department of the Interior’s and the

USGS’s publication titled “Mineral Commodity Summaries 2018”, the Democratic Republic of

the Congo continues to be the world’s leading source of mined cobalt, with 58% of cobalt

production in 2017 coming from the Congo – an unreliable source because of significant

political unrest. China was the world’s leading consumer of cobalt, with nearly 80% of its

consumption being used by the rechargeable ba ttery industry. The report continues that

“Growth in world refined cobalt supply was forecast to increase at a lower rate than that of

world cobalt consumption, which was driven ma inly by strong growth in the rechargeable

battery and aerospace industries”.

Bornite Project

As previously announced by the Company on April 19, 2016, a NI 43-101 compliant resource

estimate was filed for the Bornite deposit. † At a base case 0.5% copper cutoff grade, the

Bornite Project is estimated to contain in-pit Indicated Resources of 40.5 million tonnes at

1.02% Cu and Inferred Resources of 84.1 millio n tonnes at 0.95% copper. At a base case

1.5% copper cutoff grade, the Bornite Projec t is estimated to contain below-pit Inferred

Resources of 57.8 million tonnes at 2.89% coppe r. Preliminary work shows that although

† See “Amended and Restated NI43-101 Technical Report on the Bornite Project, Northwest Alaska,

USA” with an effective date of April 19, 2016 and a release date of October 12, 2017 available on the

Company’s website and under the Company’s profile on www.sedar.com.

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cobalt is broadly associated with copper minera lization, cobalt does not have a one-to-one

correlation. It mostly occurs as a cloud of cobaltiferous pyrite in and around the copper

mineralization.

Cobalt composites using a 100ppm cut-off grad e include 6.79m of 0.42 % Co in drill hole

RC11-0184 and 18.44m of 0.35% Co in drill hole RC-34 within the in-pit resource area (see

Table 1). Cobalt composites from the below pit resource area include 36.85m of 0.1% Co

from drill hole RC11-0185 and 21.23m of 0.23% Co from drill hole RC12-0198 (see Table 2).

We will continue to work on understanding the controls of the higher grade cobalt zones.

Figure 1 highlights the locations of these cobalt intercepts. A ll of the ranges of potential

quantity and grade contained in this news release are conceptual in nature. There has been

insufficient exploration to define a mineral resour ce and it is uncertain if further exploration

will result in the target being delineated as a mineral resource.

Table 1: Co Intercepts Within Pit

Drill hole From (m) To (m) Length (m) Co% Cu%

RC11-0184 327.43 334.22 6.79 0.42 28.98

RC-34 292 310.44 18.44 0.35 26.81

RC11-0185 182.88 191.84 8.96 0.09 3.32

RC13-0219 442.5 468.48 25.98 0.06 1.82

RC11-0182 212.01 230.9 18.89 0.19 3.433

Table 2: Co Intercepts Below Pit

Drill hole From (m) To (m) Length (m) Co% Cu%

RC11-0187 458.79 495.64 36.85 0.10 12.07

RC12-0198 631.65 652.88 21.23 0.23 3.86

RC12-0200 572.46 595.57 23.11 0.21 2.67

RC13-0213 347.45 349.27 1.82 0.38 3.36

RC13-0237 321.02 374.86 53.84 0.03 1.69

RC13-0224 653.03 721.94 68.91 0.02 2.15

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Figure 1: Significant Bornite Cobalt Intercepts

QAQC Program

The drill program and sampling protocol is managed by qualified persons employed by Trilogy

Metals. The diamond drill holes are typically collared at HQ diameter drill core and reduced to

NQ diameter during the drilli ng process. Samples are collec ted using a 0.2-meter minimum

length and a 2.5-meter maximum length. Three quality control samples (one blank, one

standard and one duplicate) are inserted into each batch of 20 samples. The drill core is sawn,

with half sent to ALS Minerals in Fairbanks for sample preparation and the sample pulps

forwarded to ALS's North Vancouver facility for analysis. ALS Minerals, North Vancouver, B.C.

Canada facility is certified as ISO 9001:2008 and accredited to ISO / IEC 17025:2005 from

the Standards Council of Canada. A third party has completed a QAQC review on all historic

(where data was present) and recent cobalt analytical work. The analytical method for cobalt

quantification is multi-element ICP with mass spectroscopy. The QAQC review shows overall

very strong precision and accuracy for coba lt results for the 2011 to 2017 Bornite assay

results.

The cobalt mineral resource estimate is be ing prepared by Bruce M. Davis, FAusIMM, BD

Resource Consulting, Inc., and Robert Sim, P.Geo., SIM Geological Inc. who are both

independent Qualified Persons as set forth by National Instrument 43-101.

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Qualified Person

Andrew W. West, Certified Professional Geologist, Exploration Manager for Trilogy Metals Inc.,

is a Qualified Person as define d by National Instrument 43-101. Mr. West has reviewed and

verified the technical information in this news release and approves the disclosure contained

herein.

About Trilogy Metals

Trilogy Metals Inc. is a metals exploration company focused on exploring and developing the

Ambler mining district located in northwestern Alaska. It is one of the richest and most-

prospective known copper-domina nt districts located in one of the safest geopolitical

jurisdictions in the world. It hosts world-class polymetallic VMS deposits that contain copper,

zinc, lead, gold and silver, and carbonate repl acement deposits which have been found to

host high grade copper 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 the Company's land package that spans

approximately 143,000 hectares. The Company has an agreement with NANA Regional

Corporation, Inc., a Regional Alaska Native Corporation that provides a framework for the

exploration and potential development of the Ambler mining district in cooperation with local

communities. Our vision is to develop the Am bler mining district into a premier North

American copper producer.

Company Contacts

Rick Van Nieuwenhuyse Elaine Sanders

President & Chief Executive Officer Vice President & Chief Financial Officer

604-638-8088 or 1-855-638-8088

# # #

Cautionary Note Regarding Forward-Looking Statements

This press release includes certain "forward-looking inform ation” and "forward-looking

statements” (collectively "forward-looking stat ements”) within the meaning of applicable

Canadian and United States securities legislation including the United States Private Securities

Litigation Reform Act of 1995. All statements, other than stat ements of historical fact,

included herein, including, without limitation, the future price of copper and cobalt, the

estimation of mineral reserves and mineral resources, the realization of mineral reserve and

mineral resource estimates, the market for cobalt, the timing and amount of estimated future

production, costs of production, capital expenditures, costs and timing of the development of

projects, the results or prospects of testing an d studies, the identification of cobalt as a

critical mineral commodity, completion of test work and other research relating to the

distribution of critical elements in the carbonate-hosted Bornite copper deposit, world refined

cobalt supply and consumption, the potential future development of Bornite, the exploration

and potential development of the Ambler mining district in cooperation with local communities

and the development of the Amble mining dist rict into a premier North American copper

producer, are forward-looking statements. Forw ard-looking statements are frequently, but

not always, identified by words such as "expects”, "anticipates”, "believes”, "intends”,

"estimates”, "potential”, "possible”, and simi lar expressions, or st atements that events,

conditions, or results "will”, "may”, "could”, or "should” occur or be achieved. These forward-

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looking statements may includ e statements regarding perceived merit of properties;

exploration plans an d budgets; mineral reserves and re source estimates; work programs;

capital expenditures; timelines; strategic plans; market prices for precious and base metals;

or other statements that are not statements of fact. Forwar d-looking statements involve

various risks and uncertainties. There can be no assurance that such statements will prove to

be accurate, and actual results and future events could differ materially from those anticipated

in such statements. Important factors that could cause actual results to differ materially from

the Company's expectations in clude the uncertainties involv ing success of exploration,

development and mining activities, permitting timelines, requirements for additional capital,

government regulation of mining operations, environmental risks, unanticipated reclamation

expenses; mineral reserve and resource estimates and the assumptions upon which they are

based; assumptions and discount rates bein g appropriately applied to the PFS; our

assumptions with respect to the likelihood and timing of the AMDIAP; capital estimates; prices

for energy inputs, labour, materials, supplies an d services the interpretation of drill results,

the need for additional financing to explore and develop properties and availability of financing

in the debt and capital markets; uncertainties involved in the interpretation of drilling results

and geological tests and the estimation of rese rves and resources; the need for cooperation

of government agencies and native groups in the development and operation of properties as

well as the construction of the access road; the need to obtain permits and governmental

approvals; risks of construction and mining projects such as accidents, equipment

breakdowns, bad weather, non-compliance wi th environmental and permit requirements,

unanticipated variation in geological structures, metal grades or recovery rates; unexpected

cost increases, which could include significan t increases in estimated capital and operating

costs; fluctuations in metal prices and cu rrency exchange rates; and other risks and

uncertainties disclosed in the Company’s Annual Report on Form 10-K for the year ended

November 30, 2017 filed with Canadian securities regulatory authorities and with the United

States Securities and Exchange Commission and in other Company reports and documents

filed with applicable securities regulatory authorities from time to time. The Company's

forward-looking statements reflect the beliefs, opinions and projections on the date the

statements are made. The Company assumes no obligation to update the forward-looking

statements or beliefs, opinions, projections, or other factors, should they change, except as

required by law.

Cautionary Note to United States Investors

This press release has been prepared in accord ance with the requirements of the securities

laws in effect in Canada, which differ from th e requirements of U.S. securities laws. Unless

otherwise indicated, all resource and reserv e estimates included in this press release have

b e e n p r e p a r e d i n a c c o r d a n c e w i t h C a n a d i a n N a t i o n a l I n s t r u m e n t 4 3 - 1 0 1 S t a n d a r d s o f

Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy

and Petroleum (CIM)—CIM Defini tion Standards on Mineral Resources and Mineral Reserves,

adopted by the CIM Council, as amended (“CIM De finition Standards”). NI 43-101 is a rule

developed by the Canadian Securities Administrators which establishes standards for all public

disclosure an issuer makes of scientific and technical information concerning mineral projects.

Canadian standards, including NI 43-101, differ significantly from th e requirements of the

United States Securities an d Exchange Commission (SEC), and resource and reserve

information contained herein may not be comparable to similar information disclosed by U.S.

companies. In particular, and without limiting the generality of the foregoing, the term

"resource” does not equate to the term "reserves”. Under U.S. standards, mineralization may

not be classified as a "reserve” unless th e determination has been made that the

mineralization could be economically and legally produced or extracted at the time the reserve

determination is made. The SEC's disclosure stan dards normally do not permit the inclusion

of information concerning "measured mineral re sources”, "indicated mineral resources” or

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"inferred mineral resources” or other descriptions of the amount of mineralization in mineral

deposits that do not constitute "reserves” by U.S. standards in documents filed with the SEC.

Investors are cautioned not to assume that a ll or any part of “measured” or “indicated

resources” will ever be converted into “reser ves”. Investors should also understand that

"inferred mineral resources” have a great amount of uncertainty as to their existence and

great uncertainty as to their economic and legal feasibility. Under Canadian rules, estimated

"inferred mineral resources” may not form the basis of feasibility or pre-feasibility studies

except in rare cases. Disclosure of "contained ounces” in a resource is permitted disclosure

under Canadian regulations; however, the S EC normally only permits issuers to report

mineralization that does not constitute "reserves” by SEC standards as in-place tonnage and

grade without reference to unit measures. The requirements of NI 43-101 for identification of

"reserves” are also not the same as those of the SEC, and reserves reported by Trilogy Metals

in compliance with NI 43-101 may not qualify as "reserves” under SEC standards. Arctic does

not have known reserves, as defined under SEC Industry Guide 7. Accordingly, information

concerning mineral deposits set forth herein may not be comp arable with information made

public by companies that report in accordance with U.S. standards.