TMQ.TO · 2018-12-13 12:00:00

Trilogy Metals Reports Final Drill Results from the Bornite Project

Drill Results

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News Release

December 13, 2018 - Vancouver, British Columbia – Trilogy Metals Inc. (TSX/NYSE

American: TMQ) ("Trilogy Metals” or the “Company”) is pleased to announce the third, and

final, set of copper and cobalt assay results for five holes from the 2018 summer exploration

diamond drilling program at the Bornite Project, a part of the Company’s Upper Kobuk

Mineral Projects (“UKMP”) located in the Ambler Mining District of Northwest Alaska. Assay

results from these five holes comprise approximately 3,024 meters from the 10,123-meter

drill campaign. All five of the drill holes contain significant copper mineralization and were

designed as infill and extension holes to the 300 to 400 meter step-out holes drilled by the

Company’s previous round of drilling completed in 2017.

At a cutoff grade of 0.5% copper the results are as follows:

• RC18-0254 intersected seven mineralized intervals of:

o 123.9 meters averaging 1.07% copper;

o 10.0 meters averaging 0.81% copper;

o 13.5 meters averaging 0.78% copper;

o 46.0 meters averaging 0.98% copper;

o 8.0 meters averaging 0.91% copper; and

o 29.0 meters averaging 1.68% copper.

• RC18-0252 intersected five mineralized intervals of:

o 2.9 meters averaging 1.95% copper;

o 3.6 meters averaging 2.63% copper;

o 12.5 meters averaging 1.49% copper;

o 1.9 meters averaging 1.12% copper; and

o 7.5 meters averaging 2.25% copper.

• RC18-0251 intersected three mineralized intervals of:

o 13.6 meters averaging 0.72% copper;

o 1.7 meters averaging 1.01% copper; and

o 1.3 meters averaging 0.98% copper.

• RC18-0255 intersected four mineralized intervals of:

o 1.0 meter averaging 11.47% copper;

o 5.4 meters averaging 0.88% copper;

o 14.3 meters averaging 0.97% copper; and

o 3.1 meters averaging 1.96% copper.

• RC18-0256 intersected three mineralized intervals of:

o 12.9 meters averaging 0.94% copper;

o 6.6 meters averaging 1.36% copper; and

o 15.0 meters averaging 2.54% copper.

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On August 23, 2018, the Company announced initial assay results from the first drill hole,

RC18-0247, from the Bornite Project. Subsequently, on October 9, 2018, the Company

announced additional assay results for three additional drill holes (RC18 -0243, RC18-0244,

RC18-0246 as well as RC18-0247). Additional drilling results, comprising assay results from

three drill holes (RC18 -0248, RC18-0249 and RC18 -0250) were released on November 19,

2018. The current release contains the results for the five remaining drill holes (RC18 -0251,

RC18-0252, RC18 -0254, RC18 -0255 and RC18 -0256). Hole RC18 -0253 was re -collared as

RC18-0254 before reaching its target depth. In total, 12 holes were drilled at the Bornite

Project during the 2019 summer exploration program.

Rick Van Nieuwenhuyse, President and CEO of Trilogy Metals commented , “The latest drilling

results confirm the extent and continuity of the copper and co balt mineralized system at the

Bornite Project, and continue to demonstrate that the system is open . The results from drill

hole RC18-0254 show additional thick zones of continuous copper-cobalt mineralization which

is what was seen in RC13-0224, which contains 236.0 meters of 1.90% copper, including 6.6

meters of 7.70% copper (please see the press release dated October 7, 2013) . Hole RC18-

0254 is approximately 150 meters to the southwest of RC13-0224. Within the central part of

the Bornite deposit, drill holes RC18 -0252, RC18 -0255 and RC18 -0256 partially in -fill the

doughnut hole – an area previously undrilled as seen in figure 2. These three drill holes extend

the mineralized envelop e towards the surface - potentially expanding the open pit resource .

The results from RC18-0251 extend the South Reef Zone up-dip to the south – albeit at lower

grades but the mineralized system remains open up-dip towards the surface. Overall, all four

of these holes (RC18-0251, RC18-0252, RC18-0255 and RC18-0256) show that the South Reef

mineralization is open up dip and joins with the Main Lower Reef mineralization that makes up

the open pit resource.”

This year’s program was comprised of 12 drill holes totaling approximately 10, 123 meters

through a combination of infill and expansion drill holes in and around the known deposit. The

original drilling campaign was budgeted to be 8,000 meters but was subsequently expanded

to 10,000 meters with the addition of two more drill rigs. The 2018 program followed up on

drilling completed during the 2017 exploration program, which was one of the larger programs

in the history of drilling at the Bornite Project. During 2017, the Company drilled nine diamond

drill holes comprising 8,437 meters to test the extension of the of the current ly defined

resource†.

The objective of the 2018 drill campaign is to infill and expand the currently defined open pit

and underground mineral resources.

Results are presented in Table 1 at a cutoff grade of 0.5% copper to be comparable with

previous drill results released by the Company. All the intersected widths are normal to

stratigraphy and therefore can be considered to be approximately true widths. Results at a

more selective higher-grade cutoff of 1.5% copper are presented in Table 2. Table 3 shows

drill hole locations while Figure 1 shows the location of the drill holes on a plan map along

with cross section lines A-A’, B-B’ and C-C’ (Figures 3, 4 and 5). Figure 2 shows the location

of the drill holes on a grade thickness contour map which will be updated in a press release

summarizing the 2018 drill results to be issued at a later date.

† See the latest resource statement in the report titled “NI 43-101 Technical Report on the Bornite Project,

Northwest Alaska, USA” released on July 20, 2018 with an effective date of June 5, 2018 (the “Bornite

Technical Report”) on the Company’s website at www.trilogymetals.com and on the Company’s profile at

www.sedar.com and www.sec.gov.

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Table 1 - 0.5% Cu cut-off with maximum 4 m internal waste

Hole From (m) To (m) Length (m) Cu (%) Co (%)

RC18-0251

539.05 552.73 13.68 0.72 0.01

613.45 615.15 1.70 1.01 0.00

676.05 677.30 1.25 0.98 0.04

RC18-0252

178.30 181.22 2.92 1.95 0.03

206.62 210.21 3.59 2.63 0.02

290.53 303.00 12.47 1.49 0.03

306.54 308.48 1.94 1.12 0.02

436.93 444.38 7.45 2.25 0.01

RC18-0254

455.00 578.90 123.90 1.07 0.02

614.90 624.90 10.00 0.81 0.04

638.80 652.26 13.46 0.78 0.01

672.25 718.25 46.00 0.98 0.01

722.25 730.25 8.00 0.91 0.01

738.25 767.29 29.04 1.68 0.04

RC18-0255

256.90 257.86 0.96 11.47 0.02

349.60 354.96 5.36 0.88 0.02

382.50 396.80 14.30 0.97 0.02

562.50 565.56 3.06 1.96 0.01

RC18-0256

165.65 178.50 12.85 0.94 0.02

183.60 190.15 6.55 1.36 0.02

256.20 271.22 15.02 2.54 0.02

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Table 2 - 1.5% Cu cut-off with maximum 3 m internal waste

Hole From (m) To (m) Length (m) Cu (%) Co (%)

RC18-0252

180.48 181.22 0.74 5.59 0.08

207.87 210.21 2.34 3.61 0.02

290.53 291.04 0.51 11.05 0.13

298.03 298.98 0.95 2.46 0.06

436.93 442.79 5.86 2.71 0.01

RC18-0254

460.67 462.65 1.98 2.33 0.08

471.80 473.34 1.54 1.85 0.04

480.00 482.00 2.00 1.52 0.01

498.00 507.18 9.18 2.17 0.04

540.90 544.90 4.00 2.12 0.01

554.90 556.90 2.00 1.62 0.01

572.90 574.90 2.00 1.54 0.01

676.25 680.25 4.00 2.22 0.03

708.25 710.25 2.00 1.57 0.01

744.25 746.25 2.00 3.10 0.13

750.25 752.25 2.00 3.17 0.11

760.25 767.29 7.04 2.85 0.05

RC18-0255

256.90 257.86 0.96 11.47 0.02

350.76 352.68 1.92 1.75 0.04

389.00 391.65 2.65 1.84 0.02

563.68 565.56 1.88 2.56 0.01

RC18-0256

167.65 169.65 2.00 1.97 0.02

187.60 190.15 2.55 2.32 0.02

256.20 265.50 9.30 3.39 0.02

268.62 271.22 2.60 1.85 0.01

Table 3 – Bornite Drill Hole Locations

East (m) North (m) Elevation (m) Azimuth Dip

RC18-0251 589984 7439671 242 26 -85

RC18-0252 589868 7440015 252 206 -75

RC18-0254 589884 7440799 228 169 -70

RC18-0255 589902 7440168 256 206 -75

RC18-0256 589711 7439884 224 170 -85

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Figure 1- Map Showing Location of 2018 Drilling Program

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Figure 2 - Map Showing 2018 Drilling and Grade-Thickness Contours

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Figure 3 – Cross Section of Bornite Drilling Showing RC18-0254 Results

Note: Within RC18-0254 – the interval of 124m @ 1.07% Cu contains 63.9m @1.16% Cu, 56.0m @1.03% Cu and a 4m internal waste interval between

the two mineralized intervals.

Figure 4 – Cross Section of Bornite Drilling Showing RC18-0255 Results

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Figure 5 – Cross Section of Bornite Drilling Showing RC18-0252 and RC18-0256 Results

Mineralization within the Bornite deposit occurs as a series of “Reefs” hosted by both the Upper

and Lower Bornite Carbonate sequences separated by generally unmineralized phyllite unit s.

The Cu-Co mineralization at Bornite occurs in three distinct carbonate zones, the Upper Reef,

the Lower Reef, and the South Reef. All three zones were drill tested this year.

Mineralization is typically observed as breccia matrix replacement and is generally dominated

by chalcopyrite and sometimes by bornite with chalcocite – particularly in the higher -grade

zones. Mineralization can also be observed as vein and replacement zones containing

chalcopyrite and calcite/dolomite gangue. These styles of mineralization were observed in all

holes mentioned in this press release.

Bornite Resource

The resource estimate utilized assay data from drill holes completed by the Company between

2011 and 2013 and re-sampled historic holes Kennecott drilled in the 1960s and 1970s. Assays

from historic Ken necott holes that were not re -sampled were also used in the resource

estimation. On June 5th, 2018 the Company announced an updated resource estim ate for the

Bornite project of 5.5 billion pounds of copper inferred resource at a grade of 1.74% Cu and

913 million pounds of copper indicated resource at a grade of 1.02% Cu and total inferred

cobalt resources (in-pit and below-pit) of 182.4 million tonnes grading 0.019% Co for 77 million

pounds of contained cobalt. Trilogy Metals filed a National Instrument 43-101 technical report

in July 2018. See the Bornite Technical Report as well as the Company’s press releases dated

June 5, 2018 (https://Trilogy PR June 5 2018 ) and the Company’s press release on th e filing

of the updated NI43-101 Technical Report for Bornite on July 20, 2018 (https://Trilogy PR July

20 2018).

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