Trilogy Metals Secures US$35.6 Million U.S. Government Investment to Advance Alaska Mining Projects

Trilogy Metals Inc. (NYSE American: TMQ) (TSX: TMQ) has closed a strategic equity investment from the U.S. Department of War totaling approximately US$35.6 million, according to a company announcement. The investment, made across transactions with Trilogy and South32 Limited, will be fully committed to Ambler Metals LLC, the 50/50 joint venture between Trilogy and South32, to advance exploration and development of the Upper Kobuk Mineral Projects (UKMP) in northwestern Alaska.

The UKMP includes the high-grade Arctic polymetallic deposit and the Bornite copper-cobalt deposit. These deposits are located within the Ambler Mining District, which is described as one of the richest and most-prospective known copper-dominant districts in the world. The district hosts polymetallic volcanogenic massive sulfide (VMS) deposits containing copper, zinc, lead, gold, and silver, as well as carbonate replacement deposits with high-grade copper and cobalt mineralization. The land package spans approximately 190,929 hectares.

The U.S. government's investment underscores the strategic importance of domestic sources of critical minerals such as copper and cobalt, which are essential for renewable energy technologies, electric vehicles, and defense applications. By funding the UKMP, the investment aims to accelerate the development of a premier North American copper producer, reducing reliance on foreign sources and bolstering national security. Additionally, the Department of War has committed to work in good faith to help facilitate financing for construction of the proposed 211-mile Ambler Road in coordination with the State of Alaska and the Alaska Industrial Development and Export Authority. This road is considered vital for accessing the remote mining district and enabling the transportation of materials and concentrates.

The involvement of the U.S. government also signals a broader push to secure supply chains for minerals critical to the energy transition and advanced manufacturing. Copper and cobalt are key components in batteries, wiring, and military equipment. The UKMP's high-grade deposits could become a significant domestic source of these minerals, enhancing U.S. economic and strategic resilience.

Trilogy Metals holds a 50 percent interest in Ambler Metals LLC, which has a 100 percent interest in the UKMP. South32, a globally diversified mining and metals company, exercised its option to form the joint venture on December 19, 2019. 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. The company states that its vision is to develop the Ambler Mining District into a premier North American copper producer while protecting and respecting subsistence livelihoods.

For investors, the completion of this strategic investment provides validation of the project's potential and could accelerate timelines. The latest news and updates relating to TMQ are available in the company's newsroom at https://ibn.fm/TMQ. To view the full press release, visit https://ibn.fm/PNvWx.