Trilogy Metals Provides Update on Proposed U.S. Department of War Investment

Trilogy Metals Inc. (NYSE American: TMQ) (TSX: TMQ) has provided an update on its previously announced proposed strategic equity investment of approximately US$35.6 million by the U.S. Department of War (DOW) to support exploration and development of the Upper Kobuk Mineral Projects in northwestern Alaska. The company stated that discussions with the DOW remain ongoing, and the letter of intent signed in October 2025 remains in effect as both parties continue to advance negotiations regarding the proposed investment.

The funding is intended to support continued exploration and development activities at the Upper Kobuk Mineral Projects, which are located in the Ambler Mining District, one of the world's richest and most-prospective known copper-dominant districts. The district hosts polymetallic volcanic massive sulfide (VMS) deposits containing copper, zinc, lead, gold, and silver, as well as carbonate replacement deposits found to host high-grade copper and cobalt mineralization. Exploration efforts have focused on two deposits: the Arctic VMS deposit and the Bornite carbonate replacement deposit, both within a land package spanning approximately 190,929 hectares.

Trilogy Metals holds a 50 percent interest in Ambler Metals LLC, which has a 100 percent interest in the Upper Kobuk Mineral Projects. South32, a globally diversified mining and metals company, exercised its option in December 2019 to form a 50/50 joint venture with Trilogy Metals. Ambler Metals has an agreement with NANA Regional Corporation, Inc., an Alaska Native Corporation, providing a framework for exploration and potential development in cooperation with local communities.

This proposed investment by the U.S. Department of War is significant as it signals potential government backing for domestic critical mineral projects, aligning with national security interests to reduce dependence on foreign sources for minerals like copper. The Upper Kobuk Mineral Projects could contribute to a North American copper supply chain, which is vital for various industries including defense, technology, and renewable energy.

The ongoing discussions and the commitment from both parties highlight the strategic importance of the project. The investment would enable further exploration and development, potentially advancing the project toward production. For more information, visit the full press release at https://ibn.fm/YCxA5.

Trilogy Metals' vision is to develop the Ambler Mining District into a premier North American copper producer while protecting and respecting subsistence livelihoods. The company's progress and updates are available in its newsroom at https://ibn.fm/TMQ.