TSX / NYSE American Symbol: TMQ

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TSX / NYSE American

Symbol: TMQ

News Release

Bornite Metallurgical Test Work Demonstrates High Quality

Copper Concentrate Grades and Recoveries

January 10, 2018 - Vancouver, British Columbia – Trilogy Metals Inc. (TSX/NYSE

American: TMQ ) (“Trilogy Metals” or the “Company”) is pleased to provide an update on

metallurgical test work results for samples from the In-Pit Resource area of the Bornite

Project, a part of the Company’s Upper Kobuk Mineral Projects (“UKMP”) located in the

Ambler mining district of Northwest Alaska. The defined In-Pit Resource contains 40.5 Mt of

1.02% Cu (indicated) and 84.1 Mt Cu (inferred) at 0.5% Cu cut-off grade. The objectives of

this test work are to demonstrate that the Bornite mineralized materials are amenable to the

production of high-grade copper concentrates using traditional mineral processing techniques

and to determine the hardness and grindability of the mineralization. Results demonstrate

that a high quality, 30% copper concentrate containing no deleterious metals can be

produced. Furthermore, grindability test work conducted indicates an average Bond Work

Index of 9.8kWhr/tonne, which is considered soft and therefore will have low grinding costs

and power consumption. Test work has been completed at SGS Laboratories in Burnaby,

British Columbia, which is independent of Trilogy Metals. Test work followed industry

standard methods and procedures commonly used for the design and development of copper

recovery processes, including hardness testing, floatation testing (lock cycle testing) and

assaying of metallurgical products

Two HQ diamond drill holes were drilled in the Bornite deposit, specifically to obtain

representative material for use in metallurgical testing. Five main metallurgical composites

were prepared from whole core obtained from this drilling and the composite samples are

outlined in Table 1.

Table 1 – Composite Samples

Composite N ame Drill Hole and Metres Cu Fe Co S

% % % %

Composite 1 RC13 -0232 1, 6.5m - 69.7m 1.11 7.72 0.02 8.29

Composite 2 RC13 -0232, 69.7m -137.2m 0.91 5.97 0.02 4.78

Composite 3 RC13 -0230 2, 0.5m – 56.9m 0.96 6.01 0.02 4.99

Composite 4 RC13 -0230, 118.2m - 179.5m 1.45 10.4 0.03 11.6

Composite 5 RC13 -0230, 179.5m – 249.5m 1.02 9.12 0.02 10.2

1RC13-0232 was drilled due north at an angle of -60°.

2 RC13-0230 was drilled due south at an angle of -77° from the same pad as RC13-0232.

The Bornite deposit is hosted in dolomite and typically contains approximately 5 to 15

percent total sulphide minerals including pyrite, chalcopyrite, bornite and chalcocite.

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Mineralogical evaluations conducted as part of this test work program show the copper

minerals to display a wide variety of grain sizes. A majority of the copper mineralization is

very well liberated at 100 microns, however, a minor fraction of the contained copper

consists as very fine-grained copper sulphide minerals occurring in pyrite (5 to 15 percent of

the overall copper). The copper rich zones of the Bornite deposit do not typically contain

significant precious metals and nor do the concentrates. Penalty elements in both the

mineralized materials and copper concentrates are also low and below levels of concern.

The mineralized materials were subject to grindability testing to determine power

requirements in grinding. The materials were shown to be consistent with an average work

index determination (Bond Work Index) of 9.8kWhr/tonne. Of the 15 individual samples

tested, the variance of work indices was very low, with a minimum value of 8.8kWhr/tonne

and a maximum value of 10.8kWhr/tonne. The Bornite materials are considered soft to very

soft in terms of grinding power requirements.

The production of copper concentrates from the Bornite materials is based on traditional

grinding and flotation processes and a flowsheet is shown in Figure 1. Unit operations in this

flowsheet include crushing, grinding to approximately 100 microns, rough flotation

concentrate production, rough concentrate re-grinding (10-15 microns) and flotation

cleaning.

Figure 1 - Proposed Flowsheet for Bornite Copper Recovery and Upgrading

The expected metallurgical performance of the test samples is summarized in the following

Table 2 and is based on locked cycle testing of the flowsheet shown in Figure 1. These results

Second and Third Column

Flotation Cleaning

Copper Rougher and Scavenger Flotation

Re-Grind mill

Final Tailings

Cyclone Overflow

from Primary Grinding

First Cu Cleaner Flotation

Final Copper

Conc.

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are obtained with a consistent set of metallurgical parameters across all test samples and are

considered a significant improvement over previous test results for the deposit.

Table 2 - Summary of Expected Metallurgical Performance - Bornite Composite

Samples

Composite Name Cu F eed Grade Copper Recovery Copper Conc. Grade

% Cu % % Cu

Composite 1 1.11 90.4 30.3

Composite 2 0.91 87.0 24.3

Composite 3 0.96 89.7 25.6

Composite 4 1.45 91.6 33.5

Composite 5 1.02 90.9 28.0

Future metallurgical test work planned for the Bornite include an evaluation of the potential

to recover cobalt from zones which are shown to be high in cobalt. Additional copper

recovery test work will cover a broader range of grades (0.2% to 2%) and continue to be

focused on the flowsheet and processing philosophy shown in Figure 1.

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

results reported here continue to demonstrate that we can produce a high quality copper

concentrates of 24% to 33% containing no deleterious metals. The soft work index means

grinding and power costs will be low relative to more traditional sources of copper from

harder porphyry deposits. We are also excited to continue work on the cobalt. Cobalt occurs

as carrolite and cobaltiferous pyrite. Electron microprobe and metallurgical work will be

conducted during the winter months with the objective of determining if the cobalt can be

concentrated into a saleable product. If it is determined that it can, then cobalt will be added

to the resource base as a potentially valuable metal which could enhance the value of the

possible Bornite ores”.

Qualified Persons

The metallurgical information in this news release has been prepared in accordance with

Canadian regulatory requirements set out in National Instrument 43-101 Standards of

Disclosure for Mineral Projects of the Canadian Securities Administrators ("NI 43-101") and

supervised, reviewed and verified by Jeffrey B. Austin, P.Eng., President, of International

Metallurgical and Environmental Inc., a "Qualified Person" as defined in National Instrument

43-101 and the person who oversees metallurgical developments for Trilogy Metals.

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-dominant 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 replacement 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

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development of the Ambler mining district in cooperation with local communities. Our vision is

to develop the Ambler 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

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Cautionary Note Regarding Forward-Looking Statements

This press release includes certain "forward-looking information” and "forward-looking statements” (collectively

"forward-looking statements”) 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 statements of

historical fact, included herein, including, without limitation, the future operating or financial performance of the

Company, interpretation of drill results, planned expenditures, the level of grinding and power costs, the potential

addition of cobalt to the resource base, and the anticipated activity at the UKMP Projects, are forward-looking

statements. Forward-looking statements are frequently, but not always, identified by words such as "expects”,

"anticipates”, "believes”, "intends”, "estimates”, "potential”, "possible”, and similar expressions, or statements that

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

statements may include statements regarding perceived merit of properties; exploration plans and budgets; mineral

reserves and resource estimates; work programs; capital expenditures; timelines; strategic plans; market prices for

precious and base metals; or other statements that are not statements of fact. Forward-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 include the uncertainties

involving 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 reserves 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 with environmental and permit requirements, unanticipated variation in geological

structures, metal grades or recovery rates; unexpected cost increases, which could include significant increases in

estimated capital and operating costs; fluctuations in metal prices and currency exchange rates; and other risks and

uncertainties disclosed in the Company’s Annual Report on Form 10-K for the year ended November 30, 2016 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

The Bornite Technical Report have been prepared in accordance with the requirements of the securities laws in effect

in Canada, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all resource and

reserve estimates included in this press release have been prepared in accordance with National Instrument 43-101

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

Petroleum Definition Standards on Mineral Resources and Mineral Reserves. 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 the requirements of the United States Securities and Exchange Commission ("SEC”), and resource and reserve

information contained therein 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 the 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 standards normally do not permit the inclusion of information concerning "measured mineral

resources”, "indicated mineral resources” or "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.

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Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted

into reserves. U.S. 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 SEC 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 the Company in compliance with NI

43-101 may not qualify as "reserves” under SEC standards. Accordingly, information concerning mineral deposits set

forth in this press release or the Bornite Technical Report may not be comparable with information made public by

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