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Item 2. Properties

2023-02-14 compared with 2022-02-11 · 853 added, 770 removed, 637 unchanged (72% of the section changed)

Trilogy’s principal business is the exploration and development of the Upper Kobuk Mineral Projects located in the Ambler mining district in Northwest Alaska, United States.

The Upper Kobuk Mineral Projects are held by Ambler Metals LLC (“Ambler Metals”), a limited liability company owned equally by Trilogy and South32 Limited, and is comprised of the (i) Arctic Project, a development stage property, which contains a high-grade polymetallic volcanogenic massive sulfide deposit;

and (ii) Bornite Project, an exploration stage property, which contains a carbonate-hosted copper - cobalt deposit.

Mineral Resource Summary Table as of November 30, 2022

Average Grade

Contained Metal Content

Arctic – 50% Attributable Interest

Bornite – 50% Attributable Interest

Mineral Resources are current as of November 30, 2022 and were verified by a Wood QP.

Mineral Resources were prepared in accordance with the standards and definitions of S-K 1300 and represent first-time disclosure of Mineral Resources under S-K 1300 standards and definitions.

The Mineral Resource estimate is reported exclusive of those Mineral Resources that were converted to Mineral Reserves.

Trilogy Metals’ 50% attributable interest is stated in the table.

Figures may not sum due to rounding.

The mineral resources are reported in place (point of reference).

Arctic Notes:

Mineral Resources stated are contained within a conceptual pit shell developed using metal prices of $3.00/lb Cu, $0.90/lb Pb, $1.00/lb Zn, $1,300/oz Au and $18/oz Ag and metallurgical recoveries of 92% Cu, 77% Pb, 88% Zn, 63% Au and 56% Ag and operating costs of $3/t mining and $35/t process and general and administrative costs.

The assumed average pit slope angle is 43º.

As a result of flattening the north end of the reserve pit to stabilize the pit wall due to the presence of talc, a portion of the reserve pit extended beyond the resource constraining pit shell and a second pass of mineral resource tabulation was performed exterior to the constraining resource pit and interior to the constraining reserve pit which is included in the Mineral Resource tabulation.

The cut-off grade is 0.5% copper equivalent:

CuEq = (Cu% x 0.92) + (Zn% x 0.290) + (Pb% x 0.231) + (Au g/t x 0.398) + (Ag g/t x 0.005).

Bornite Notes:

Mineral resources are constrained by:

an open pit shell at a cut-off grade of 0.5% Cu, with an average pit slope of 43 degrees;

and underground mining shapes with a cut-off grade of 1.79% Cu.

The cut-off grades include the considerations of a $4.05/lb Cu price, process recovery of 87.2%, open pit mining costs of $3.21/t mined, underground mining cost of $73.62/t mined, process cost of $19.14/t processed, G&A cost of $4.14/t processed, treatment, refining, sales cost of $0.73/lb Cu in concentrate, road use cost of $8.04/t processed, 2% NSR royalty.

Mineral Reserve Estimate as of November 30, 2022 for the Arctic Project, Alaska USA

Classification

Average Grade

Probable Mineral Reserves – 50% Attributable Interest

Mineral Reserves estimates are current as of November 30, 2022 and were prepared by a Wood QP.

Mineral Reserves were estimated assuming open pit mining methods and include a combination of internal and contact dilution.

Total dilution is expected to be between 30% and 40%.

Pit slopes vary by sector and range from 26° to 56°.

A marginal NSR cut-off of $38.8 /t is used.

Mineral Reserves are based on prices of $3.46/lb Cu, $0.91/lb Pb, $1.12/lb Zn, $1,615/oz Au, and $21.17/oz Ag.

Variable process recoveries averaging 92% Cu in Cu concentrate, 62% Pb in Pb concentrate, 88% Zn in Zn concentrate, 47% Au in Cu concentrate, 33% Ag in Cu concentrate, 26% Au in Pb concentrate and 49% Ag in Pb concentrate.

Mineral Reserves are based on mining cost of $2.52/t incremented at $0.02/t/5m and $0.012/t/5m below and above 790 m elevation, respectively.

Costs applied to processed material following:

process operating cost of $18.31/t, G&A of $5.83/t, sustaining capital cost of $2.37/t, closure cost of $4.27/t, road toll cost of $8.04/t.

Strip ratio (waste:ore) is 7.3:1.

Selling terms following:

payables of 96.5% of Cu, 95% of Pb and 85% of Zn, treatment costs of $80/t Cu concentrate, $160/t Pb concentrate and $215/t Zn concentrate;

refining costs of $0.08/lb Cu in Cu concentrate, and$10/oz Au, $1.25/oz Ag in Pb concentrate;

and transport cost $270.98/t concentrate.

Fixed royalty percentage of 1% NSR.

Trilogy Metals’ 50% attributable interest is stated in the table.

The point of reference for the Mineral Reserves is defined at the point where the ore is delivered to the processing plant.

The metal prices and costs were fixed over the 13-year mine life.

The following descriptions summarize selected information about the Upper Kobuk Mineral Projects, which are located in the Ambler mining district of Alaska and include the Arctic Project and the Bornite Project.

The Arctic Project and the Bornite Project are held by Ambler Metals, of which Trilogy holds a 50% interest.

All mineral resources and mineral reserve estimates with respect to the Arctic Project and Bornite Project that are disclosed in this Annual Report on Form 10-K are reported on a 100% basis.

All of the UKMP Projects are without known reserves, as defined under SEC Industry Guide 7, and all proposed programs for the properties are exploratory in nature.

All mineral resources and mineral reserve estimates with respect to the Arctic Project and Bornite Project that are disclosed in this Annual Report on Form 10-K are reported on a 100% basis unless otherwise noted.

Please also see “ Management’s Discussion and Analysis—Project Activities ” for more information on the development and nature of our interest in the Upper Kobuk Mineral Projects.

The Company’s book value of its investment in the Upper Kobuk Mineral Projects is $142.8 million as of November 30, 2022.

Arctic Project

Except as otherwise stated, the scientific and technical information relating to the Arctic Project contained in this Form 10-K is derived from the 2020 Arctic Report titled “Arctic Feasibility Study Alaska, USA NI 43-101 Technical Report” with an effective date of August 20, 2020, prepared for Trilogy by Ausenco Engineering Canada Inc., Wood Canada Limited and SRK Consulting (Canada) Inc.

The Company is subject to and required to disclose mineral resources and mineral reserves in accordance with Subpart 229.1300 of Regulation S-K – Disclosure by Registrants Engaged in Mining Operations (“S-K 1300”).

While the S-K 1300 rules are similar to National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) rules in Canada, they are not identical and therefore two reports have been produced for the Arctic Project.

The information in Item 2, Properties, contains pertinent information required under both NI 43-101 and S-K 1300.

Except as otherwise stated, the scientific and technical information relating to the Arctic Project contained in this Form 10-K is derived from the (i) 2023 S-K 1300 report for Arctic titled “Arctic Project Technical Report Summary, Ambler Mining District, Alaska” dated November 30, 2022 prepared by Ausenco Engineering Canada Inc., Wood Canada Limited, SRK Consulting (Canada) Inc.

and Brown and Caldwell, each of whom are not affiliated with Trilogy (“S-K 1300 Arctic Report”) and the (ii) 2023 Arctic Report titled “Arctic Project NI 43-101 Technical Report on Feasibility Study, Ambler Mining District, Alaska” with an effective date of January 20, 2023, prepared by Ausenco Engineering Canada Inc., Wood Canada Limited, SRK Consulting (Canada) Inc.

and Brown and Caldwell (“NI 43-101 Arctic Report”).

The information regarding the Arctic Project is based on assumptions, qualifications and procedures which are not fully described herein.

Reference should be made to the full text of the 2020 Arctic Report which has been filed with certain Canadian securities regulatory authorities pursuant to NI 43-101 and is available for review on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

Reference should be made to the full text of the S-K 1300 Arctic Report and the NI 43-101 Arctic Report which has been filed, as applicable, with the relevant US and Canadian securities regulatory authorities.

The NI 43-101 Arctic Report is available for review on SEDAR at www.sedar.com and the S-K 1300 Arctic Report is available for review on EDGAR at www.sec.gov.

Arctic Project Description, Location and Access

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The 1% NSR runs with the lands and is purchasable at any time from the royalty holder for a one-time payment of $10 million.

The Arctic Project is directly held by Ambler Metals, a 50/50 joint venture formed between South32 and Trilogy in February 2020.

Upon the formation of the joint venture, Trilogy contributed all of its Alaskan assets, including the Arctic

Project and the NANA Agreement, to Ambler Metals in exchange for a 50% membership interest and at the same time, South32 contributed $145 million in cash for a 50% membership interest.

The Arctic Project land tenure consists of 1,988 contiguous State mining claims, including 905 40-acre claims, 1,083 160-acre claims, and 18 Federal patented claims comprising 271.9 acres (110 ha) held in the name of Ambler Metals.

The Arctic Project is directly held by Ambler Metals LLC (“Amber Metals”), in a 50/50 joint venture formed between South32 and Trilogy in February 2020.

Upon the formation of the joint venture, Trilogy contributed all of its Alaskan assets, including the Arctic Project and the NANA Agreement, to Ambler Metals in exchange for a 50% membership interest and at the same time, South32 contributed $145 million in cash for a 50% membership interest.

The land tenure consists of 2,136 contiguous State claims totaling 230,736 acres (93,336 ha), including 905 40-acre claims, 1231 160-acre claims, and 18 Federal patented claims comprising 271.9 acres (110 ha) held in the name of Ambler Metals.

Surface use of the private land held as Federal patented claims is limited only by reservations in the patents and by generally-applicable environmental laws.

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The Arctic Project is located in the Ambler mining district of the southern Brooks Range, in the Northwest Arctic Borough (“NWAB”) of Alaska.

The Property is geographically isolated with no current road access or nearby power infrastructure.

The Arctic Project is located 270 km east of the town of Kotzebue, 37 km north of the village of Kobuk, and 260 km west of the Dalton Highway, an all-weather state-maintained highway.

The Arctic Project is geographically isolated with no current road access or nearby power infrastructure.

The Arctic Project is about 270 km east of the town of Kotzebue, 37 km northeast of the village of Kobuk, and 260 km west of the Dalton Highway, an all-weather State maintained public road, at geographic coordinates N67.17° latitude and W156.39° longitude and Universal Transverse Mercator (UTM) North American Datum (NAD) 83, Zone 4 coordinates 7453080N, 613110E.

Primary access to the Arctic Project is by air, using both fixed wing aircraft and helicopters.

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An unimproved gravel track connects the Arctic airstrip with the Arctic deposit.

Prospectors first arrived in the Ambler Mining District around 1900, shortly after the discovery of the Nome and Fairbanks gold districts.

Several years later, small gold placer deposits were located in the southern Cosmos Hills south of the Arctic deposit and worked intermittently over ensuing decades for gold and nephrite.

During this time copper mineralization

was observed at Ruby Creek in the northern Cosmos Hills;

however, no exploration was undertaken until 1947 when local prospector Rhinehart “Rhiny” Berg located outcropping copper mineralization along Ruby Creek.

Berg subsequently staked claims over the Ruby Creek showings and constructed an airstrip for access (alaskamininghalloffame.org 2012).

Bear Creek Mining Company (“BCMC”), an exploration subsidiary of Kennecott, optioned the property from Berg in 1957.

Prospectors in search of gold, travelling up the Kobuk River in 1898-99 (Grinnell, 1901), found small gold placer deposits in the southern Cosmos Hills, south of the Arctic deposit, which were worked intermittently over the ensuing decades.

Around this time, copper mineralization at Ruby Creek and Pardner Hill in the northern Cosmos Hills was explored using small shafts and adits (Smith and Eakin, 1911).

In 1947, Rhinehart “Rhiny” Berg staked claims over the Ruby Creek prospects, carried out extensive trenching and the first diamond drilling, and constructed an airstrip for access (alaskamininghalloffame.org 2012).

Bear Creek Mining Company (“BCMC”), an exploration subsidiary of Kennecott, optioned the Ruby Creek property from Berg in 1957.

The prospect became known as Bornite and Kennecott conducted extensive exploration over the next decade, culminating in the discovery of the high-grade No.

1 zone and the sinking of an exploration shaft to conduct underground drilling.

In conjunction with the discovery of the Bornite deposit, BCMC greatly expanded their regional reconnaissance exploration in the Cosmos Hills and the southern Brooks Range.

Stream silt sampling in 1965 revealed a significant copper anomaly in Subarctic Creek roughly 27 km northeast of Bornite.

The area was subsequently staked and, in 1967, eight core holes were drilled at the Arctic deposit yielding massive sulphide intercepts over an almost 500-m strike length.

BCMC conducted intensive exploration on the property until 1977 and then intermittently through 1998.

While exploring the Bornite deposit, BCMC carried out reconnaissance exploration throughout the western Brooks Range, including a large regional stream sediment survey in 1962.

Initial follow up did not identify mineralization of interest however in 1965, Riz Bigelow (BCMC) and his team of geologists found boulders of massive sulphides at an anomaly (1400 ppm Cu) located 28 km northeast of Bornite that led to the discovery of outcropping mineralization the following year.

The area was subsequently staked and, in 1967, nine core holes were drilled at the Arctic deposit, eight of which yielded massive sulphide intercepts over an almost 500-m strike length.

BCMC conducted intensive exploration on the property until 1977 and then intermittently through to 1998.

No drilling or additional exploration was conducted on the Arctic Project between 1999 and 2003.

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Teck Resources Limited, as Cominco’s successor company, continues to hold the Smucker deposit.

In 2007, Andover Mining Corporation purchased a 100% interest in the Sun deposit for US$13 million and explored the property through 2013.

In 2007, Andover Mining Corporation purchased a 100% interest in the Sun deposit for $13 million and explored the property through 2013.

The Sun deposit and adjacent lands were acquired by Valhalla Metals Inc., a private company, which staked over the Sun deposit in 2017 after the creditors for the bankrupt Andover Mining Corporation failed to pay the annual rent of the state claims and submit the Annual Labour Statement.

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BCMC initially staked federal mining claims covering the Arctic deposit area beginning in 1966.

The success of the 1960’s drill programs defined a significant high-grade polymetallic resource at the Arctic deposit and, in the early 1970s, Kennecott began the patent process to obtain complete legal title to the Arctic deposit.

The 1960’s drill programs defined a significant high-grade polymetallic resource at the Arctic deposit and, in the early 1970s, Kennecott began the patent process to obtain complete legal title to the Arctic deposit.

In 1981, Kennecott received US Mineral Survey patent M2245 covering 16 mining claims totaling 240.018 acres.

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After a short period of exploration which focused on geophysics and geochemistry combined with limited drilling, exploration work on the Arctic Project again entered a hiatus.

On March 22, 2004, Alaska Gold Company, a wholly-owned subsidiary of NovaGold completed an Exploration and Option Agreement with Kennecott to earn an interest in the Ambler land holdings.

On March 22, 2004, Alaska Gold Company (“Alaska Gold”), a wholly-owned subsidiary of NovaGold completed an Exploration and Option Agreement with Kennecott to earn an interest in the Ambler land holdings.

Previous Exploration and Development Results – Arctic Deposit

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Subsequently, Kennecott staked a total of 2,035 State of Alaska claims in 1997 and, in 1998 undertook the first field program since 1985.

Due to the number of companies and the patchwork exploration that occurred as a result of the 1973 staking war, much of the earliest exploration work on what now constitutes the Ambler Schist belt was lost during the post-1980 hiatus in district exploration.

Due to the number of companies and the patchwork exploration that occurred as a result of the 1973 staking war, much of the earliest exploration work on the Ambler Schist belt was lost during the post-1980 hiatus in district exploration.

The following subsections outline the best documented data at the Arctic deposit as summarized in the 1998 Kennecott exploration report, including the assembled computer database;

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In 1982, geologists with Kennecott, Anaconda and the State of Alaska published the definitive geologic map of the Ambler schist belt (Hitzman et al.

Table 6-1 of the 2020 Arctic Report lists known exploration mapping, geochemical, and geophysical programs conducted for VMS targets in the Ambler Mining District.

The S-K 1300 Arctic Report and the NI 43-101 Arctic Report both summarize the known exploration mapping, geochemical, and geophysical programs conducted for VMS targets in the Ambler Mining District.

Table 1 below summarizes the exploration mapping, geochemical, geophysical, and mining studies conducted on the Arctic deposit.

Geological Setting, Mineralization and Deposit Types

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The district covers both:

1) VMS-like deposits and prospects hosted in the Devonian age Ambler Sequence (or Ambler Schist belt), a group of metamorphosed bimodal volcanic rocks with interbedded tuffaceous, graphitic and calcareous volcaniclastic metasediments;

1) VMS-like deposits and prospects hosted in the Devonian age Ambler Sequence (or Ambler Schist belt or Schist Belt), a group of metamorphosed bimodal volcanic rocks with interbedded tuffaceous, graphitic and calcareous volcaniclastic metasediments;

and 2) epigenetic carbonate-hosted copper deposits occurring in Silurian to Devonian age carbonate and phyllitic rocks of the Bornite Carbonate Sequence.

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VMS-like stratabound mineralization can be found along the entire 110 km strike length of the district.

Immediately south of the Schist belt, in

the Cosmos Hills, a time equivalent section of the Anirak Schist that includes the approximately 1 km thick Bornite Carbonate Sequence.

Immediately south of the Schist belt, in the Cosmos Hills, a time equivalent section of the Anirak Schist that includes the approximately 1 km thick Bornite Carbonate Sequence.

Mineralization of both the VMS-like deposits of the Schist belt and the carbonate-hosted deposits of the Cosmos Hills has been dated at 375 to 387 Ma (Selby et al., 2009;

McClelland et al., 2006).

In addition, the Ambler Mining District is characterized by increasing metamorphic grade north perpendicular to the strike of the east-west trending units.

The Ambler Mining District is characterized by increasing metamorphic grade to the north, perpendicular to the strike of the east-west trending units.

The district shows isoclinal folding in the northern portion and thrust faulting to south (Schmidt, 1983).

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Previous deposit modelling was grade-based resulting in numerous individual mineralized zones representing relatively thin sulphide horizons.

Recent work by Trilogy defines the Arctic deposit as two or more discrete horizons of sulphide mineralization contained in a complexly deformed isoclinal fold with an upright upper limb and an overturned lower limb hosting the main mineralization.

Recent work by Ambler Metals defines the Arctic deposit as two or more discrete horizons of sulphide mineralization contained in a complexly deformed isoclinal fold with an upright upper limb and an overturned lower limb hosting the main mineralization.

Nearby drilling suggests that a third upright lower limb, likely occurs beneath the currently explored stratigraphy.

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Mineralization occurs as stratiform semi-massive sulphide (“SMS”) to massive sulphide (“MS”) beds within primarily graphitic schists and fine-grained quartz mica schists.

The sulphide beds average 4 m in thickness but vary from less than 1 m up to as much as 18 m in thickness.

The sulphide mineralization occurs within eight modelled zones lying along the upper and lower limbs of the Arctic isoclinal anticline.

The sulfide beds average 4 m in thickness but vary from less than 1 m up to as much as 18 m in thickness.

The sulfide mineralization occurs within eight modelled zones lying along the upper and lower limbs of the Arctic isoclinal anticline.

The zones are all within an area of roughly 1 km2 with mineralization extending to a depth of approximately 250 m below the surface.

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Unlike more typical VMS deposits, mineralization is not characterized by steep metal zonation or massive pyritic zones.

Mineralization dominantly consists of sheet-like zones of base metal sulphides with variable pyrite and only minor zonation, usually on a small scale.

Mineralization dominantly consists of sheet-like zones of base metal sulfides with variable pyrite and only minor zonation, usually on a small scale.

Mineralization is predominately coarse-grained sulphides comprising chalcopyrite, sphalerite, galena, tetrahedrite-tennantite, pyrite, arsenopyrite, and pyrrhotite.

Sulphides occur as disseminated (<30%), semi-massive (30 to 50%

sulphide) to massive (greater than 50% sulphide) layers.

Sulphides occur as disseminated (<30%), semi-massive (30 to 50% sulphide) to massive (greater than 50% sulphide) layers.

Trace amounts of electrum are also present.

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The mineralization at the Arctic deposit and at several other known occurrences within the Ambler Sequence stratigraphy of the Ambler Mining District consists of Devonian age, polymetallic (zinc-copper-lead-silver-gold) VMS-like occurrences.

VMS deposits are formed by and associated with sub-marine volcanic-related hydrothermal events.

These events are related to spreading centres such as fore arc, back arc or mid-ocean ridges.

VMS deposits are often stratiform accumulations of sulphide minerals that precipitate from hydrothermal fluids on or below the seafloor.

These deposits are found in association with volcanic, volcaniclastic and/or siliciclastic rocks.

They are classified by their depositional environment and associated proportions of mafic and/or felsic igneous rocks to sedimentary rocks.

There are five general classifications (Franklin et al., 2005) based on rock type and depositional environment:

● Mafic rock dominated often with ophiolite sequences, often called Cyprus type.

● Bimodal-mafic type with up to 25% felsic volcanic rocks.

● Mafic-siliciclastic type with approximately equal parts mafic and siliciclastic rocks, which can have minor felsic rocks and are often called Besshi type.

● Felsic-siliciclastic type with abundant felsic rocks, less than 10% mafic rocks and shale rich.

● Bimodal-felsic type where felsic rocks are more abundant than mafic rocks with minor sedimentary rocks also referred to as Kuroko type.

Prior to any subsequent deformation and/or metamorphism, these deposits are often bowl or mound-shaped with stockworks and stringers of sulphide minerals found near vent zones.

These types of deposit exhibit an idealized zoning pattern as follows:

● Pyrite and chalcopyrite near vents.

● A halo around the vents consisting of chalcopyrite, sphalerite and pyrite.

● A more distal zone of sphalerite and galena and metals such as manganese.

● Increasing manganese with oxides such as hematite and chert more distal to the vent.

Alteration halos associated with VMS deposits often contain sericite, ankerite, chlorite, hematite and magnetite close to the VMS with weak sericite, carbonate, zeolite, prehnite and chert more distal.

These alteration assemblages and relationships are dependent on the degree of post deposition deformation and metamorphism.

A modern analogue of this type of deposit is found around fumaroles or black smokers in association with rift zones.

In the Ambler Mining District, VMS-like mineralization occurs in the Ambler Sequence schists over a strike length of approximately 110 km.

These deposits are hosted in volcaniclastic, siliciclastic and calcareous metasedimentary rocks interlayered with mafic and felsic metavolcanic rocks.

Sulphide mineralization occurs above the mafic metavolcanic rocks but below the Button schist, a distinctive district wide felsic unit characterized by large K-feldspar porphyroblasts after relic phenocrysts.

The presence of the mafic and felsic metavolcanic units is used as evidence to suggest formation in a rift-related environment, possibly proximal to a continental margin.

Based on these characteristics, the Arctic deposit is similar to Kuroko-type VMS deposits.

Historic interpretation of the genesis of the Ambler Schist belt deposits has called for a syngenetic VMS origin with steep thermal gradients in and around seafloor hydrothermal vents resulting in metal deposition due to the rapid cooling of chloride-complexed base metals.

A variety of VMS types have been well documented in the literature (Franklin et al., 2005) with the Ambler Schist belt deposits most similar to deposits associated with bimodal felsic dominant volcanism related to incipient rifting.

The majority of field observations broadly support such a scenario at the Arctic deposit and include:

Observations and interpretations at the Arctic deposit such as:

1) the tectonic setting with Devonian volcanism in an evolving continental rift;

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3) an alteration assemblage with well-defined magnesium-rich footwall alteration and sodium-rich hanging wall alteration;

and 4) typical polymetallic base-metal mineralization with massive and semi-massive sulphides.

A preserved sulphide-smoker occurrence has been tentatively identified near Dead Creek, northwest of the Arctic deposit and suggests local hydrothermal venting during deposition.

However, the lack of stockworks and stringer-type mineralization at the Arctic deposit suggest that the deposit may not be a proximal vent-type VMS.

Although the deposit is stratiform in nature, it exhibits characteristics and textures common to replacement-style mineralization.

At least some of the mineralization may have formed as a diagenetic replacement.

and 4) typical polymetallic base-metal mineralization with massive and semi-massive sulphides, are indicative of a VMS deposit that has undergone high strain and complex folding and faulting.

A variety of VMS types have been well documented in the literature (Franklin et al., 2005), with the Ambler Schist belt deposits most like deposits associated with bimodal felsic dominant volcanism related to incipient rifting.

However, the abundance of volcaniclastic rocks with argillaceous sedimentary rocks and the tabular nature of mineralization are considered by Piercey (2022) to be similar to felsic silicilastic VMS environments.

Evidence exists for both exhalation and emplacement on the seafloor and replacement of rocks in the sub-seafloor, either via filling of void space or via dissolution of original rocks and replacement by new minerals (Piercey, 2022).

For example, the presence of barite, attributed to the mixing of BaCl2(aq) from hydrothermal fluids with seawater sulphate (SO4(aq)) at the vent-seawater interface supports some of the mineralization at Arctic likely precipitated on the seafloor.

In contrast, there is ample textural evidence of subseafloor replacement at Arctic, such as the presence of transitions from massive sulphides into selective replacement of interpreted permeable tuff beds in the hanging wall mudstones.

The tonnage, grades, and stratigraphic setting of the Arctic deposit, and its broader tectonostratigraphic setting, are similar to other felsic siliclastic VMS environments globally.

The deposit has strong similarities to deposits found the Finlayson Lake VMS district, Yukon, Bathurst district, New Brunswick, and some parts of the Iberian Pyrite Belt, Spain-Portugal (Piercey, 2022).

A VMS model is considered applicable for use in exploration targeting in the Arctic Project area.

Table 1 summarizes the exploration work conducted by NovaGold and Trilogy from 2004 to the present.

Table 1 summarizes the exploration work conducted by NovaGold, Trilogy (formerly, NovaCopper) and Ambler Metals from 2004 to the present.

Field exploration was largely conducted during the period between 2004 to 2007 with associated engineering and characterization studies between 2008 and 2019.

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Arctic deposit surface geology

Snow, Ambler, Nani, DH, Cliff, Sunshine, Dead Creek, BT, 98-9/Pipe, COU, SE Arctic, Nora

Work Completed

Snow, Ambler, Nani, DH, Bud, Sunshine, Dead Creek, BT, 98-9/Pipe, COU, East Arctic, Nora, South Cliff, SK, Cynbad, Z, Tom Tom, Kogo/White Creek

Geophysical Surveys

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Soils – Arctic deposit area

Soils - VTEM 26-29, JA Creek, West Dead Creek, Dead Creek

Soils - Sub Arctic Valley, South Cliff, VTEM 26-29, VTEM-41, VTEM-23 , East and West Sunshine, Tom Tom, Kogo/White Creek, SK, Cynbad, East Arctic, West Dead Creek, Dead Creek, 98-9/Pipe, Z, Nora, Ambler, Nani

Streams silts - Core area prospects

2004 to 2011,

All 2004 to 2019 NovaCopper drill holes

Work Completed

2018, 2019, 2021, 2022

Historical Kennecott drill holes

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Preliminary rock mechanics and hydrology

Geotechnical and Hydrology

2015, 2016, 2018, 2019, 2021, 2022

Arctic P FS and FS slope design

2015, 2016, 2017, 2018, 2019

Static kinetic tests and ABA update - ongoing

2015, 2016, 2017, 2018, 2019, 2021

Cu-Pb Separation Testwork;

Flotation and Variability Testwork;

SAG Mill Comminution (SMC) Testwork, filtration Testwork, thickener Testwork, and tailings settling testing

Project Evaluation

Resource Estimation

Resource estimation

PEA - Underground

PEA – Open Pit

Pre-Feasibility Study

Feasibility Study

SWIR = short wave infrared;

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ALS = ALS Metallurgy;

Drilling at the Arctic deposit and within the Ambler Mining District has been ongoing since its initial discovery in 1967.

Approximately 60,857 m of drilling was completed within the Ambler Mining District, including 42,571 m of drilling in 207 drill holes at the Arctic deposit or on potential extensions in 29 campaigns spanning 52 years.

Drill programs were completed by Kennecott and its subsidiaries, Anaconda, and Trilogy and its predecessor companies.

Core recoveries are acceptable.

Geological and geotechnical logging is in line with industry generally-accepted practices.

Drill collar and downhole survey data were collected using industry-recognized instrumentation and methods at the time the data were collected.

Between 2004 and 2005, NovaGold conducted a systematic drill core re-logging and re-sampling campaign of Kennecott and BCMC era drill holes.

NovaGold either took 1 m to 2 m samples every 10 m, or sampled entire lengths of previously un-sampled core within a minimum of 1 m and a maximum of 3 m intervals.

During the Trilogy campaigns, sample intervals were determined by the geological relationships observed in the core and limited to a 2.5 m to 3 m maximum length and 0.3 m minimum length.

An attempt was made to terminate sample intervals at lithological and mineralization boundaries.

Sampling was generally continuous from the top to the bottom of the drill hole.

When the hole was in un-mineralized rock, the sample length was generally 3 m, whereas in mineralized units, the sample length was shortened to 1 m to 2 m with a maximum of 2.5 m.

Gold assays were conducted using fire assay fusion followed by an atomic absorption spectroscopy finish.

An additional 49-element suite was assayed by inductively coupled plasma-mass spectroscopy (ICP-MS) methodology, following a four acid (hydrochloric, nitric, hydrofluoric, and perchloric) digestion.

The copper, zinc, lead, and silver analyses were completed by AA, following a triple acid digest, in 2004 and 2005, and by inductively coupled plasma-atomic emission spectroscopy following a triple acid digestion from 2006 to 2019, when overlimits occurred with the ICP-MS methodology.

Standard reference materials, blanks, duplicates, and check samples have been regularly submitted at a combined level of 20% of sampling submissions for all NovaGold/NovaCopper/Trilogy era campaigns.

BD Resource Consulting, Inc.

reviewed the QA/QC dataset and reports and found the sample insertion rate and the timeliness of results received and reviewed meets or exceeds industry best practices.

SG measurements were conducted on 4,708 samples in the database and range from a minimum of 1.49 to a maximum of 5.35 and average 3.04.

The distribution of SG data is considered sufficient to support estimation in the resource model.

Current Mineral Resource estimates and geologic models use topography completed in 2010 by PhotoSat Inc.

The resolution of the satellite imagery used was at 0.5 m, and a 1 m contour map and digital elevation model were generated.

An aerial LiDAR survey was completed to support feasibility level resource estimation, engineering design, environmental studies, and infrastructure layout evaluations.

Agreement between surveyed drill hole collar elevations and a LiDAR topographic surface verifies the correctness of the digital topography for use in estimation.

It was concluded that the drill database and topographic surface for the Arctic deposit is reliable and sufficient to support the current estimate of mineral resources.

PEA = preliminary economic assessment.

Drilling at the Arctic deposit and within the Ambler Mining District has been ongoing since the initial discovery of mineralization in 1966.

Approximately 67,639 m of drilling has been completed within the Ambler Mining District,

including 55,038 m of drilling in 285 drill holes at the Arctic deposit or on potential extensions in 32 campaigns spanning 56 years.

All drill holes, except 11 geotechnical holes in 2017, 24 geotechnical holes drilled in 2018, 8 holes from the 2021 program and 34 holes from the 2022 program, for which assay results were not available - were considered for use in the estimate of Mineral Resources.

Geotechnical drilling is summarized in Table 2 and Table 3.

The number of holes reported for each year are the holes that were staffed by a geotechnician at the rig and primary purpose was to gather geotechnical data.

Table 2 – Summary of Geotechnical Drilling

Number of Holes

Oriented core

Water level monitoring

Falling head packer tests

Point load tests

Uniaxial compressive strength

Direct shear testing

Modulus testing

Triaxial testing

Acoustic Televiewer

Falling Head, Singleor Straddle packer tests

Airlift pump test

Hydraulic conductivity testing (slug testing)

Cohesive and residual shear strength tests on soils

Compressive strength test on core and rock

Extended duration injection tests

Table 3 – Summary of Geotechnical Drilling by Year and Purposes

Obtain geotechnical data in areas of the deposit that may host underground infrastructure or could pose issues with underground mining.

Collect geotechnical and hydrological data to better understand the wall rock characteristics and hydrology within the open pit area.

Complete the 3 drill holes that were deferred/not completed from the 2015 program.

Collect geotechnical and hydrological data for tailings management and waste rock facilities within the entire Sub Arctic Creek valley.

Collect geotechnical and hydrological data for waste rock dump, tailings management facility, and surface infrastructure in the Upper Sub Arctic Creek Valley.

Provide additional geotechnical and hydrological data for pit design for the Feasibility Study.

Define talc horizons on east side of pit for pit design.

Define extent of lower talc horizons on northeast side of pit for pit design.

NovaGold re-surveyed collars of selected historical holes in 2004 and again in 2008.

The re-surveys showed little variation compared to the historical surveys.

The downhole survey data show a pronounced deviation of the drill holes toward an orientation more normal to the foliation.

Incomplete Kennecott data exist with regards to overall core recovery but based on 917 intervals of 3.05 m or less in the historical database, the average recovery was 92%.

Kennecott RQD measurements in the 1998 program averaged 87.0%.

There has been no systematic evaluation of recovery by rock type.

Core recovery during NovaGold/NovaCopper/Trilogy Metals and Ambler Metals drill programs were good to excellent, resulting in quality samples with little to no bias.

Sampling, Analysis and Data Verification

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The data for the Arctic deposit were generated over three primary drilling campaigns:

1966 to 1986 when BCMC, a subsidiary of Kennecott was the primary operator, 1998 when Kennecott resumed work after a long hiatus, and 2004 to present under NovaGold, NovaCopper, and Trilogy.

1966 to 1986 when BCMC, a subsidiary of Kennecott was the primary operator, 1998 when Kennecott resumed work after a long hiatus, and 2004 to present under NovaGold, Trilogy (formerly, NovaCopper), and Ambler Metals.

Between 2004 and 2005, NovaGold conducted a systematic drill core re-logging and re-sampling campaign of Kennecott and BCMC era drill holes AR-09 to AR-74.

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The objective of the sampling was to generate a full ICP geochemistry dataset for the Arctic deposit and ensure continuous sampling throughout the deposit.

During NovaGold, NovaCopper, and Trilogy eras, samples were selected based on lithologic contacts, significant mineralization and alteration.

Drill core was sampled at no less than 30 cm and no more than 2.5 m when in un-mineralized material, and 2 m maximum intervals when in mineralized material.

All samples processed at the logging facility at the Bornite Camp were sawn in half with one half being sent to ALS Minerals in Vancouver, BC for analysis and the other half stored on site at the Bornite Camp.

Shipment of core samples from the site occurred on a drill hole by drill hole basis.

Rice bags, containing two to four poly-bagged core samples each, were marked and labelled with the ALS Minerals address, project and hole number, bag number, and sample numbers enclosed.

Rice bags were secured with a pre-numbered plastic security tie and a twist wire tie and then assembled into standard fish totes for transport by chartered flights on a commercial airline to Fairbanks, where they were met by a contracted expeditor for delivery directly to the ALS Minerals preparation facility in Fairbanks.

In addition to the core, control samples are inserted into the shipments at the approximate rate of one standard, one blank and one duplicate per 17 core samples.

From 2004 to 2019, sample intervals are determined by the geological relationships observed in the core and limited to a 2.5 m maximum length and 1 m minimum length.

Sample intervals terminate at lithological and mineralization boundaries.

After logging, the core was cut in half using diamond core saws.

If core was not competent, it was split by using a spoon to transfer half of the core into the sample bag.

One-half of the core was returned to the core box for storage on site and the other half was bagged, labelled, and sent to ALS Minerals Laboratories in Vancouver for analysis, via the (ALS preparation facility in Fairbanks Alaska) and the other half was archived in the core storage facility at the Bornite Camp

facilities or at the Ambler Metals warehouse in Fairbanks.

For the 2021 metallurgical holes, ¼ core was sampled for analysis at ALS, ¼ retained, and ½ sent for metallurgical testing.

Samples were logged into a tracking system on arrival at ALS Minerals, and weighed.

Samples were then crushed dried, and a 250 g split pulverized to greater than 85% passing 75 μm.

Gold assays were determined using fire assay fusion followed by an atomic absorption spectroscopy finish.

The lower detection limit was 0.005 ppm gold;

the upper limit was 1,000 ppm gold.

An additional 49-element suite was assayed by ICP-MS, following a 4-acid digestion.

The copper, zinc, lead, and silver analyses were completed by AA, following a triple acid digest, when over limit results occurred using the ICP-MS assay method.

Samples were submitted for multielement analysis of a 0.25 gram sample by Inductively Coupled Plasma (ICP) Mass Spectrometry (MS) following a 4-acid digestion, and for gold analysis of a 30 gram sample by Fire Assay (FA) with an Atomic Absorption (AA) finish.

Over limit ICP-MS Cu, Pb, and Zn samples were resubmitted for analysis of a 0.4 gram sample by ICP-Atomic Emission Spectroscopy (AES) or AA following a 4 acid digestion.

The overlimit value for Cu, Pb, and Zn is 10,000 ppm.

Over limit gold results were resubmitted for analysis of a 30 gram sample by FA with a Gravimetric finish.

The overlimit value for Au is 10 ppm.

The Lower detection limits for Cu, Pb, and Zn by ICP-MS are 0.2 ppm, 0.5 ppm, and 2 ppm respectively.

The lower detection limit for Au by FAAA is 0.05 ppm.

Between 2004 and 2005 NovaGold completed a resampling program of historic drill holes.

As a result, 85% of the assay intervals now have recent assay results from ALS Minerals.

All core and pulp reject samples submitted to the ALS Minerals laboratory since 2004 were accompanied by standard, blank and duplicate control samples.

Secondary laboratory check samples were analysed at Acme in Vancouver or SGS Burnaby.

The secondary laboratory check samples were selected to represent the data population using a random selection of 5% of the samples within percentile range groups.

GeoSpark Consulting has prepared several reports summarizing the control sample results received between 2004 and 2019.

Paired laboratory and field determinations from for mineralized zone SG measurements from 1998 and the 2004 program show very low variation.

SRK conducts monthly QA/QC review of kinetic test leachates for all operating kinetic tests.

Data Verification

Drill hole collars, topography, core logging, and database verification were completed by third party independent contractors.

Quality assurance and quality control measures have been in place on an annual basis since 2011 with full data audits of the NovaGold era assay database including retaining independent consultant Caroline Vallat, P.Geo.

of GeoSpark Consulting Inc.

(“GeoSpark”) to:

1) re-load 100% of the historical assay certificates, 2) conduct a QA/QC review of paired historical assays and NovaGold era re-assays;

3) monitor an independent check assay program for the 2004 to 2008 and 2011-2019 drill campaigns;

and 4) generate QA/QC reports for the NovaGold era 2004 to 2008 and NovaCopper/Trilogy era 2011, 2015, 2016, 2017 and 2019 drill campaigns.

BDRC reviewed the QA/QC dataset and reports and found the sample insertion rate and the timeliness of results analysis met or exceeded industry best practices.

The QA/QC results indicate that the assay results collected by Trilogy, and previously by NovaGold and NovaCopper, are reliable and suitable for use in the Arctic FS.

Wood qualified persons reviewed database verification and laboratory QA/QC reports and made data entry error spot checks, inspected down hole survey results for anomalous kinks and excessive bends in the drill hole traces, reviewed reports summarizing the results of drill core sampling and assaying completed since 2004, reviewed the assay database for gaps and overlaps, and reviewed the historic re-assay program results.

The following two significant issues were observed:

● A significant high bias in historic Cu and low bias in historic Pb assay results

● Apparent low bias in Random Forest assisted specific gravity predictions

In the current assay table historic sample interval assay results are given priority over the historic sample interval re-assay results.

This is not expected to have a material impact on the grade estimation but using the re-assay results would further mitigate the risk associated with the observed biases in the historic Cu and Pb values.

Overall, the database verification and management and the laboratory QAQC monitoring completed by NovaGold, Trilogy Metals, and Ambler Metals has resulted in a reasonably reliable drill hole database suitable for supporting the Mineral Resource estimated for the Arctic deposit.

Some deficiencies exist that when rectified will make the drill hole database even more robust.

Mineral Processing and Metallurgical Testing

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In general, the samples tested produced similar metallurgical performances and the Arctic Project has seen the development of a robust metal recovery process to support the current operational plans.

conducted included mineralogy and flotation testing, locked cycle tests, comminution tests, copper/lead separation testwork, talc optimization testwork, and thickening and filtration testing.

Testwork can be broken into three key time periods:

Historical testwork completed prior to 2012, primarily by Kennecott Research Center in Utah, and Lakefield Research Ltd., Lakefield, Ontario;

Preliminary Trilogy test work conducted at SGS Mineral Services, Vancouver (“SGS Vancouver”), in 2012 to 2015;

Detailed Trilogy test work conducted at ALS Metallurgy in Kamloops, BC (“ALS Metallurgy”) in 2015 to 2019.

Work conducted included mineralogy and flotation testing, locked cycle tests, comminution tests, copper/lead separation testwork, talc optimization testwork, and thickening and filtration testing.

Testwork can be broken into four key time periods:

Historical testwork completed prior to 2012, primarily by Kennecott Research Centre in Utah, and Lakefield Research Ltd., Lakefield, Ontario;

Preliminary Trilogy testwork conducted at SGS Mineral Services, Vancouver (“SGS Vancouver”), in 2012 to 2015;

Detailed Trilogy testwork conducted at ALS Metallurgy in Kamloops, BC (“ALS Metallurgy”) in 2015 to 2019;

Amber Metals testwork conducted at ALS Metallurgy and SGS Mineral Services in 2021 to 2022.

In 2012, SGS Vancouver conducted a metallurgical test program to further study metallurgical responses of the samples produced from Zones 1, 2, 3, and 5 of the Arctic deposit.

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Test results show the material is amenable to SAG milling and is relatively soft, with a reported breakage (axb) average value of 189.7.

Bond ball mill work index (BWi) tests were completed on 44 samples and values ranged from 5.4 to 13.1 kWhr/t with an average BWi of 8.82 kWhr/t.

Abrasion index (Ai) tests were completed on five samples and values fluctuated from 0.017 to 0.072 g for the measured samples.

Bond ball mill work index (BWi) tests were completed on 44 samples and values ranged from 5.4 to 13.1 kWh/t with an average BWi of 8.82 kWh/t.

Abrasion index (Ai) tests were completed on five samples and values fluctuated from 0.017 to 0.072 g for the measured

The data indicate that the samples are neither resistant nor abrasive to ball mill grinding.

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In 2017, ALS Metallurgy conducted detailed copper and lead separation flotation testwork using a bulk sample of copper– lead concentrate produced from the operation of a pilot plant.

This testwork confirmed high lead recoveries in locked

cycle testing of the copper–lead separation process and confirmed precious metal recoveries into the representative copper and lead concentrates.

This testwork confirmed high lead recoveries in lockedcycle testing of the copper–lead separation process and confirmed precious metal recoveries into the representative copper and lead concentrates.

This testwork indicated a clear tendency of the gold values to follow the lead concentrate, giving it a significant gold grade and value.

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The lead concentrate is also shown to be rich in precious metals, which has some advantages in terms of marketability of this material.

An overall metallurgical balance for the Arctic Project is summarized in Table 2.

The projected metallurgical recoveries are based on an expected average recovery over the life-of-mine (LOM), and results of metallurgical testwork conducted in 2012 and 2017–2019.

Table 2 - Summary of Overall Metal Recovery – Arctic Project

Concentrate Grade

Metal Recoveries

Process stream

Process Tailings

Ancillary testwork was completed by third party consultants on representative concentrate samples, to provide thickening and filtration data for the various concentrates.

Settling and filtration rates were observed to be typical for sulphide concentrates and moisture contents in final filter cakes were observed to be lower than expected.

Settling and filtration rates were observed to be typical for sulfide concentrates and moisture contents in final filter cakes were observed to be lower than expected.

Metallurgical testwork was completed to provide representative tailings samples for use in detailed solids settling and compaction testwork to provide data for tailings design studies.

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The use of an SO2/air process in a small-scale pilot plant demonstrated removal of 99% of the contained cyanide and supported the concept of maintaining low cyanide concentrations within the proposed tailings pond solutions.

In 2021, various metallurgical testwork programs were conducted at ALS Metallurgy, SGS, and MO Group.

ALS Metallurgy completed several testwork programs, including flotation testing with the Preflotation circuit only to establish talc performance;

further flowsheet development test work to investigate the benefits of sequential flotation versus the original bulk flow sheet;

and a variability testwork to support the development of improved metallurgical recovery models.

The objective of the ALS Metallurgy program was to investigate bulk and sequential flotation flowsheets with composites formed from two parent composites, and then select a flowsheet for a geo-metallurgical evaluation through testing with variability samples.

The mineralization was amenable to either a bulk flowsheet followed by copper-lead separation, or a sequential flowsheet, both following a pre-flotation stage to remove talc.

Table 4 shows average performance obtained for the Avg Talc Composite in the Flowsheet Development phase of the testing.

Table 4 – Comparison of Bulk versus Sequential Locked-Cycle Test Results – ALS 2021

Distribution (%)

Avg Talc Bulk

Copper concentrate

Lead concentrate

Zinc concentrate

Avg Talc - Sequential

Copper concentrate

Lead concentrate

Zinc concentrate

Copper recovery to the copper concentrate was slightly higher for the sequential flowsheet;

however, gold recovery to the copper concentrate was substantially lower.

The lead concentrate grade for the Avg Talc composite could likely be improved over that shown above with optimization of copper-lead separation conditions given the higher lead concentrate grade measured with other composites.

Zinc circuit performance was similar for the two flowsheets, although higher zinc recovery to the copper concentrate was recorded for the bulk circuit.

Magnesium content in the copper concentrate was higher for the sequential circuit, but similar in the lead concentrate for both circuits.

Based on economic analysis comparing the bulk and sequential circuit, the bulk circuit flowsheet was selected for the Variability testing.

An overall metallurgical balance for the project is summarized in Table 5.

The projected metallurgical recoveries are based on an expected average recovery over the life-of-mine (LOM), and results of metallurgical variability testwork conducted in 2021 and 2022.

Table 5 – Summary of Overall Metal Recovery – Arctic Project

Process stream

Concentrate Grade

Metal Recoveries

SGS conducted SAG Power Index (SPI®) tests to investigate the effect of friable ores on the plant throughput.

MO Group conducted talc circuit modelling using the data obtained from the ALS Metallurgy Preflotation test work program to investigate the benefits of talc circuit open and closed-circuit cleaning.

The MO Group also conducted dewatering and filtration test work on the talc concentrate and final tailings generated from the Preflotation test work program.

Thickening and filtration testwork were completed by the MO Group on representative preflotation concentrate and tailings samples, to investigate opportunities to improve water recovery and reduce operating costs.

The results were used to incorporate a tailings thickener in the process plant flow sheet.

Mineral Resource and Mineral Reserve Estimates

Mineral Resource Estimate

Mineral resource estimates are estimated from a 3D block model based on geostatistical applications using commercial mine planning software (MineSight v11.60-2).

The block model has a nominal block size measuring 10 x 10 x 5 m and uses data derived from 152 drill holes in the vicinity of the Arctic deposit.

Mineral Resources have not been previously disclosed under S-K 1300 standards and definitions in a filing with the United States Securities and Exchange Commission (SEC).

A description of the key assumptions, parameters, and methods used in the mineral resource estimate are included in Chapter 11 of the S-K 1300 Arctic Report .

A brief discussion of the material assumptions and criteria used in the mineral resource estimation are as follows:

Mineral resource estimates are performed from a 3D block model based on geostatistical applications using LeapFrog software.

The block model has a parent block size measuring 10 x 10 x 5 m with a sub-block size measuring 2 x 2 x1 m and uses data derived from 171 drill holes within the Arctic deposit.

The resource estimate was generated using drill hole sample assay results and the interpretation of a geological model which relates to the spatial distribution of copper, lead, zinc, gold and silver.

Interpolation characteristics were defined based on the geology, drill hole spacing, and geostatistical analysis of the data.

The effects of potentially anomalous high-grade sample data, composited to two meter intervals, are controlled by limiting the distance of influence during block grade interpolation.

The grade models

have been validated using a combination of visual and statistical methods.

The resources were classified according to their proximity to the sample data locations and are reported using the 2014 CIM Definition Standards.

The effects of potentially anomalous high-grade sample data, composited to 2 m intervals, are controlled by capping each mineralization zone.

The grade models have been validated using a combination of visual and statistical methods.

The resources were classified according to their proximity to the sample data locations and are reported using the 2014 CIM Definition Standards in the NI 43-101 Arctic Report and standards and definitions in S-K 1300 in the S-K 1300 Arctic Report.

The tonnes, grade, and classification are the same under the two standards.

Model blocks estimated by three or more drill holes spaced at a maximum distance of 100 m are included in the Indicated category.

Inferred blocks are within a maximum distance of 150 m from a drill hole.

The estimate of Indicated and Inferred Mineral Resources is constrained within a conceptual pit shell derived using the projected technical and economic parameters in Table 3.

Table 3 - Parameters Used to Generate a Resource-Limiting Pit Shell

Optimization Parameters

The deposit is amenable to open pit extraction methods.

Reasonable prospects for economic extraction were established by constraining mineralization within a pit shell based on technical and economic assumptions presented in Table 6.

a result of flattening the north end of the reserve pit to stabilize the pit wall due to the presence of talc, a portion of the reserve pit extended beyond the resource constraining pit shell.

A second pass of resource tabulation was performed on the Indicated and Inferred classified blocks exterior to the resource constraining pit shell and interior to the reserve constraining pit shell, above a 0.5% copper equivalent (CuEq) cut-off.

The formula for the CuEq is shown in footnote 5 of Table 7.

Table 6 - arameters Used to Generate a Resource-Constraining Pit Shell

Optimization Parameter

Open Pit Mining Cost

Milling + General and Administrative (G&A) Costs

Milling Cost + G&A

$/t processed

Metallurgical Recovery:

no adjustments for mining recovery or dilution.

The pit shell was generated about copper equivalent (CuEq) grades that incorporate contributions of the five different metals present in the deposit.

The formula used to calculate copper equivalent grades is:

CuEq%= (Cu% x 0.92) + (Zn% x 0.290) + (Pb% x 0.231) + (Au g/t x 0.398) + (Ag g/t x 0.005)

The metal prices and costs were fixed over the 13-year mine life.

The metal prices are within the range of industry consensus of long-term average metal prices based on an assessment of industry peers over the past year, and long-term forecast prices by banks at the time of the mineral resource estimate.

Trilogy’s attributable interest in the Mineral Resource estimate exclusive of Mineral Reserves is stated in Table 7a.

The Mineral Resource estimate inclusive of Mineral Reserves is stated in Table 7b .

All Indicated Mineral Resources have been converted to Mineral Reserves.

Mineral Resources are reported in place (point of reference) and on a 100% basis;

however, Trilogy Metals attributable interest is 50% of the tonnes and metal content.

The Mineral Resource estimate is listed in Table 7.

Mineral Resources are reported inclusive of those Mineral Resources that were converted to Mineral Reserves.

Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

Table 4 - Mineral Resource Estimate for the Arctic Deposit

Table 7a – S-K 1300 Mineral Resource Summary Table, Exclusive of Mineral Reserves

Average Grade

Contained metal:

(1) The Qualified Persons for the estimate are employees of SIM and BDRC.

The estimate is reported using the 2014 CIM Definition Standards.

The effective date of the Mineral Resource estimate is April 25, 2017.

The results of the 2019 drilling supports the current estimate of mineral resources and the inclusion of these nine new drill holes would have no material impact on the estimate of mineral resources for the Arctic Project.

(2) Mineral Resources stated are contained within a conceptual pit shell developed using metal prices of US$3.00/lb Cu, US$0.90/lb Pb, US$1.00/lb Zn, US$1,300/oz Au and US$18/oz Ag and metallurgical recoveries of 92% Cu,

77% Pb, 88% Zn, 63% Au and 56% Ag and operating costs of US$3/t mining and US$35/t process and general and administrative costs.

Contained Metal Content

Inferred -100%

Inferred – 50% Attributable Interest

Mineral Resources are current as of November 30, 2022 and were verified by a Wood QP.

Mineral Resources were prepared in accordance with the standards and definitions of S-K 1300 and represent first-time disclosure of Mineral Resources under S-K 1300 standards and definitions.

The assumed average pit slope angle is 43º.

(3) The base case cut-off grade is 0.5% copper equivalent:

The cut-off grade is 0.5% copper equivalent:

CuEq = (Cu% x 0.92) + (Zn% x 0.290) + (Pb% x 0.231) + (Au g/t x 0.398) + (Ag g/t x 0.005).

(4) The Mineral Resource estimate is reported on a 100% basis without adjustments for metallurgical recoveries.

Trilogy holds 50% of Ambler Metals.

(5) The Mineral Resource estimate is reported inclusive of those Mineral Resources that were converted to Mineral Reserves.

Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

An inferred mineral resource has a lower level of confidence than that applied to an indicated mineral resource and must not be converted to a mineral reserve.

Mineral Resources have been rounded.

Factors that may affect the Mineral Resource estimates include:

● Metal price and exchange rate assumptions.

● Changes to the assumptions used to generate the CuEq cut-off grade.

● Changes in local interpretations of mineralization geometry and continuity of mineralized zones.

● Changes to geological and mineralization shapes, and geological and grade continuity assumptions.

● Density and domain assignments.

● Changes to geotechnical, mining and metallurgical recovery assumptions.

● Change to the input and design parameter assumptions that pertain to the conceptual pit constraining the estimates.

● Assumptions as to concentrate marketability, payability and penalty terms.

● Assumptions as to the continued ability to access the site, retain mineral and obtain surface rights titles, obtain environment and other regulatory permits, and maintain the social license to operate.

● Assumptions as to future site access.

There are no known factors related to environmental, permitting, legal, title, taxation, socioeconomic, marketing, or political issues which could materially affect the Mineral Resource estimate that are not discussed in the 2020 Arctic Report.

The Mineral Resource estimate is reported exclusive of those Mineral Resources that were converted to Mineral Reserves.

Trilogy Metals’ 50% attributable interest is stated in the table.

Figures may not sum due to rounding.

Table 7b – NI 43-101 Mineral Resource Summary Table, Inclusive of Mineral Reserves

Average Grade

Contained Metal Content

Confidence Category

Mineral Resources are current as of November 30, 2022 and were verified by a Wood QP.

Mineral Resources were prepared in accordance with the standards and definitions of S-K 1300.

Mineral Resources stated are contained within a conceptual pit shell developed using metal prices of $3.00/lb Cu, $0.90/lb Pb, $1.00/lb Zn, $1300/oz Au and $18/oz Ag and metallurgical recoveries of 92% Cu, 77% Pb, 88% Zn, 63% Au and 56% Ag and operating costs of $3/t mining and $35/t process and G&A.

The assumed average pit slope angle is 43°.

The cut-off grade is 0.5% copper equivalent.

CuEq = (Cu%x0.92) + (Zn%x0.290) + (Pb%x0.231) + (Au g/tx0.398) + (Ag g/tx0.005).

As a result of flattening the north end of the reserve pit to stabilize the pit wall due to the presence of talc, a portion of the reserve pit extended beyond the resource constraining pit shell.

Approximately 568kt of 1.72% Cu, 0.77% Pb, 0.23 g/t Au and 21.3 g/t Ag in the Indicated category, and approximately 319 kt of 2.01% Cu, 0.87% Pb, 2.53% Zn, 0.50 g/t Au and 37.5 g/t Ag in the Inferred category were added to the Mineral Resource tabulation.

The Mineral Resource estimate is reported inclusive of those Mineral Resource that were converted to Mineral Reserves.

Trilogy Metals’ attributable interest is 50% in the table.

Figures may not sum due to rounding.

Factors that may affect the mineral resource estimate are listed below:

● Uncertainties in sampling and drilling methods, data processing and handling.

● Metal price assumptions.

● Uncertainties in the cost assumptions used to determine the cut-off grade.

● Uncertainties in the geological and mineralization shapes, and geological and grade continuity assumptions.

● Uncertainties in the historically predicted (estimated) SG values determined by Random Forest Regressor.

● Uncertainties in the geotechnical, mining, and metallurgical recovery assumptions.

● Uncertainties represented by historical assay values for payable metals.

● Uncertainties in the resource estimation parameters including parameters such as capping values, search ellipsoids, variogram models, number of composites.

● Changes in the Mineral Resource Classification criteria.

● Uncertainties to the input and design parameter assumptions that pertain to the conceptual pit constraining the estimates.

● Uncertainties in the assumptions made to the concentrate marketability, payability and penalty terms.

● Uncertainties in the assumptions regarding the continued ability to access the site, retain mineral and obtain surface rights titles, obtain environment and other regulatory permits, and maintain the social license to operate.

Mineral Reserve Estimates

Mineral Reserves were classified in accordance with the CIM Definition Standards for Mineral Resources and Mineral Reserves (May 10, 2014).

Only Mineral Resources that were classified as Measured and Indicated were given economic attributes in the mine design and when demonstrating economic viability.

Mineral Reserves for the Arctic deposit incorporate appropriate mining dilution and mining recovery estimations for the open pit mining method.

Mineral Reserves have not been previously disclosed under S-K 1300 standards and definition in a filing with the SEC.

A description of the key assumptions, parameters, and methods used in the mineral reserve estimate are included in Chapter 12 of the S-K 1300 Arctic Report .

A brief discussion of the material assumptions and criteria used in the mineral reserve estimation are as follows:

Mineral Reserves were classified in accordance with the CIM Definition Standards for Mineral Resources and Mineral Reserves (May 10, 2014) in the NI 43-101 Arctic Report and in accordance with the standards and definitions of S-K 1300 in the S-K 1300 Arctic Report.

There are no differences in the resulting tonnes, grade, or classification between the two reporting standards.

Modifying factors were applied to the Indicated Mineral Resources to convert them to Probable Mineral Reserves.

All of the Indicated Mineral Resources were converted to Probable Mineral Reserves.

The point of reference for reporting the Mineral Reserves is at delivery to the mill, as such, the Mineral Reserves for the Arctic deposit incorporate appropriate mining dilution and mining recovery estimations.

The pit shell that defines the ultimate pit limit was derived in Whittle using the Pseudoflow pit optimization algorithm.

The optimization procedure uses the block value and pit slopes to determine a group of blocks representing pits of valid slopes that yield the maximum profit.

The block value is calculated using information stored in the geological block model, commodity prices, mining and processing costs, process recovery, and the sales cost for the metals produced.

The pit slopes are used as constraints for removal precedence of the blocks (Xiaoyu Bai, et al., 2017).

Table 8 provides a summary of the primary optimization inputs.

Metal prices and costs were fixed over the 13-year mine life .

Table 8 – Optimization Inputs

Discount Rate

Sector 1 (2L-E)

Sector 2 (2L-W)

Sector 3 (2U)

Sector 5 (4L)

Sector 6 (4U)

Estimated in a block-by-block basis

Taken into account by block

Base Elevation

Dilution and Mine Losses

Estimated in a block-by-block basis, adding up 30% to 40%.

Reference Bench Elevation

Incremental Mining Cost

Uphill (below 790m)

Downhill (above 790m)

Process Costs

Operating Cost

Process Sustaining Capital

Sustaining Capital

Road Toll Cost

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Process Recovery

Treatment & Refining Cost

Variable by concentrate type/ metal

Payable – Main Element

Treatment Cost

Refining Cost

Transport Cost

Concentrate Losses

Insurance Cost

Representation/Marketing

Geotechnical Sector 1 (2L-E)

Variable based on slope dip direction.

IRA ranging from 26 to 56.

Geotechnical Sector 2 (2L-W)

Variable based on slope dip direction IRA ranging from 38 to 56.

Geotechnical Sector 3 (2U)

Variable based on slope dip direction IRA ranging from 29 to 56.

Geotechnical Sector 4 (3)

Variable based on slope dip direction IRA ranging from 30 to 56.

Geotechnical Sector 5 (4L)

Variable based on slope dip direction IRA ranging from 34 to 56.

Geotechnical Sector 6 (4U)

Variable based on slope dip direction IRA ranging from 37 to 56.

NANA Surface Use

NANA may elect to either (a) exercise a non-transferrable back-in-right to acquire between 16% and 25% (as specified by NANA) of the Arctic Project;

or (b) not exercise its back-in-right, and instead receive a net proceeds royalty equal to 15% of the net proceeds realized by Ambler Metals.

Upon the direction of Trilogy, the Arctic FS

was evaluated on a 100% basis, of which Trilogy’s share is 50%, and does not include the impact on Ambler Metals of the NANA options, either purchasing an interest in the Arctic Project or receiving a royalty payment.

Dilution was applied to the resource model in two steps:

planned dilution and contact dilution.

As the mining cost varies with depth individual blocks captured within the final pit design were tagged as either ore or waste by applying the parameters shown in Table 5.

Using the partial block percentages within the final pit design the ore tonnage and average grades were calculated.

The Mineral Reserve estimates are shown in Table 6.

Only Probable Mineral Reserves have been classified.

Table 6 – Mineral Reserve Statement

Proven Mineral Reserves

IRA = inter ramp angle

The Mineral Reserves statement is shown in Table 9Trilogy Metals attributable interest is 50% of the tonnes of the Mineral Reserves.

Table 9 – Mineral Reserve Estimate

Confidence Category

Average Grades

Probable Mineral Reserves – 100%

Proven & Probable Mineral Reserves

(1) The Qualified Person for the Mineral Reserves estimates is an employee of Wood.

Mineral Reserves have an effective date of January 31, 2020.

Mineral Reserves are reported on a 100% basis.

Trilogy has a 50% interest in Ambler Metals.

(2) Mineral Reserves estimated assuming open pit mining methods and include a combination of planned and contact dilution.

Probable Mineral Reserves – 50% Attributable Interest

Mineral Reserves estimates are current as of November 30, 2022 and were prepared by a Wood QP.

Mineral Reserves were estimated assuming open pit mining methods and include a combination of internal and contact dilution.

Total dilution is expected to be between 30% and 40%.

Pit slopes vary by sector and range from 26° to 56°.

Cut-off grade is variable and ranges from US$32.83/t NSR to US$33.96/t NSR.

Commodity prices used were US$3.00/lb Cu, US$1.00/lb Pb, US$1.10/lb Zn, US$1,300/oz Au and US$18/oz Ag.

Fixed process recoveries were assumed to be 91.2% Cu, 80.0% Pb, 91.0% Zn, 58.9% Au and 80.0% Ag.

Mining costs were estimated at US$2.78/t incremented at US$0.02/t/5 m and US$0.015/t/5 m below and above 730 m elevation respectively.

Processing costs were estimated at US$29.39/t, which includes a process operating cost of US$15.09/t, general and administrative cost of US$6.55/t, sustaining capital cost of US$1.53/t.

Closure cost of US$1.52/t, and a road toll cost of US$4.70/t.

Treatment costs include US$80/t Cu concentrate, US$180/t Pb concentrate and US$200/t Zn concentrate.

Refining costs were estimated at US$0.08/lb Cu, US$10/oz Au, US$0.80/oz Ag.

Transport costs were included as US$270.38/t concentrate.

There is a fixed royalty percentage of 1%.

Risks that may affect the Mineral Reserve estimates include:

commodity price and exchange rate assumptions;

changes to the assumptions used to generate the NSR cut-off grades that constrains the estimate;

A marginal NSR cut-off of $38.8/t is used.

Mineral Reserves are based on prices of $3.46/lb Cu, $0.91/lb Pb, $1.12/lb Zn, $1,615/oz Au, and $21.17/oz Ag.

Variable process recoveries averaging 92.2% Cu in Cu concentrate, 62.2% Pb in Pb concentrate, 87.6% Zn in Zn concentrate, 16.0% Pb in Cu concentrate, 1.9% Zn in Cu concentrate, 47.2% Au in Cu concentrate, 32.7% Ag in Cu concentrate, 0.8% Cu in Pb concentrate, 1.3% Zn in Pb concentrate, 26.1% Au in Pb concentrate, 48.7% Ag in Pb concentrate, 2.1% Cu in Zn concentrate, 4.5% Pb in Zn concentrate, 3.3% Au in Zn concentrate, 5.8% Ag in Zn concentrate.

Mineral Reserves are based on mining cost of $2.52/t incremented at $0.02/t/5m and $0.012/t/5m below and above 790 m elevation, respectively.

Costs applied to processed material following:

process operating cost of $18.31/t, G&A of $5.83/t, sustaining capital cost of $2.37/t, closure cost of $4.27/t, road toll cost of $8.04/t.

Strip ratio (waste:ore) is 7.3:1.

Selling terms following:

payables of 96.5% of Cu, 95% of Pb and 85% of Zn, treatment costs of $80/t Cu concentrate, $160/t Pb concentrate and $215/t Zn concentrate;

refining costs of $0.08/lb Cu in Cu concentrate, and$10/oz Au, $1.25/oz Ag in Pb concentrate;

and transport cost $270.98/t concentrate.

Fixed royalty percentage of 1% NSR.

Trilogy Metals’ attributable interest is 50% of the tonnage stated in the table.

The Arctic Mineral Reserves are subject to the types of risks common to open pit polymetallic mining operations that exist in Alaska and may be materially affected by the following risk factors include:

● Changes in the metal prices from what was assumed;

● Changes to the assumptions used to generate the cut-offs;

● Changes in local interpretations of mineralization geometry and continuity of mineralized zones;

● Changes to geological and mineralization shapes, and geological and grade continuity assumptions;

density and domain assignments;

changes to geotechnical and hydrological assumptions, changes to mining and metallurgical recovery assumptions;

changes to the input and design parameter assumptions that pertain to the conceptual pit constraining the estimates;

● Changes to density and domain assignments from what was assumed;

● Changes to geotechnical, hydrogeological design assumptions;

● Changes to mining and metallurgical recovery assumptions;

● Change to the input and design parameter assumptions that pertain to the open pit constraining the estimates;

● Assumptions as to concentrate marketability, payability and penalty terms;

assumptions as to the continued ability to access the site, retain mineral and obtain surface rights titles, obtain environment and other regulatory permits, and maintain the social license to operate.

There is a risk to the estimate if the Ambler Mining District Industrial Access Project road is not constructed as envisaged, or in the time frame envisaged, or that the toll charges assumed in the 2020 Arctic Report are not the final charges levied.

Other risks include:

proper management of groundwater will be important to maintaining pit slope stability;

the east wall is highly sensitive to several geotechnical parameters, and talc horizons that may not have been included in the geological model might also affect its stability;

the presence of talc layers in the rock could affect recoveries in the process plant and therefore could be a risk to the Mineral Reserves.

● Assumptions as to the continued ability to access the site, retain mineral tenure and obtain surface rights titles, obtain environment and other regulatory permits, and maintain the social license to operate.

More specifically the presence of certain talc layers in the rock have not been included in the current geological model and could affect the metallurigcal recoveries and slope stability.

Additionally, there is currently no developed surface access to the Arctic Project area and beyond.

Access to the Arctic Project is proposed to be via AAP, a road approximately 340 km (211 miles) long, extending west from the Dalton Highway where it would connect with the proposed Arctic Project area.

Construction costs of the road are not yet final.

The working assumption is that AIDEA would arrange financing in the form of a public-private partnership to construct and arrange for the construction and maintenance of the access road.

AIDEA would charge a toll to multiple mining and industrial users (including the Arctic Project) in order to pay back the costs of financing the AAP.

The amount paid in tolls by any user would be affected by the cost of the road, its financing structure, and the number of mines and other users of the road which could also include commercial transportation of materials and consumer items that would use the AAP to ship concentrates to the Port of Anchorage in Alaska and possibly provide goods and commercial materials to villages in the region.

The Mineral Reserve estimation assumes toll payments of $5.52/t processed, plus a road maintenance fee of $2.52/t milled processed, resulting in a total road toll and maintenance LOM unit cost of $8.04/t processed.

There is a risk that a negotiated road toll agreement may result in higher costs than what has been assumed.

Mining Operations

The Arctic Project is designed as a conventional truck–shovel operation assuming 144 t trucks, and 15 m 3 shovels.

The pit design includes three nested phases to balance stripping requirements while satisfying the concentrator requirements.

The design parameters include a ramp width of 28.5 m, maximum road grades of 10%, bench height of 5 m, targeted mining width of between 70 and 100 m, berm interval variable by sector, variable slope angles by sector and a minimum mining width of 30 m.

The Arctic Project is designed as a conventional truck-shovel operation with 144 t trucks and 15 m 3 shovels.

The pit design includes four nested phases to balance stripping requirements while satisfying the concentrator requirements.

The design parameters include a ramp width of 30 m, road grades of 10%, bench height of 5 m, targeted mining width between 70 m and 100 m, berm interval of 20 m, variable slope angles by sector and a minimum mining width of 30 m.

The smoothed final pit design contains approximately 46.7 Mt of ore and 340.2 Mt of waste for a resulting stripping ratio of 7.3:1.

Within the 43.4 Mt of ore, the average grades are forecast to be 2.24% Cu, 3.12% Zn, 0.54% Pb, 0.47 g/t Au and 34.7 g/t Ag.

Within the 46.7 Mt of ore, the average grades are forecasted to be 2.11% Cu, 2.90% Zn, 0.56% Pb, 0.42 g/t Au and 31.8 g/t Ag.

The scheduling constraints set the maximum mining capacity at 35 Mt/a, and the maximum process capacity at 10 kt/d.

The production schedule results in a LOM of 12 years.

The mine will require three years of pre-production before the start of operations in the processing plant.

The production schedule based on the Probable Mineral Reserves shows a total life-of-mine (LOM) of 15 years, including 2 years of pre-production and 13 years of production.

Processing and Recovery Operations

The 10,000 t/d process plant design is conventional for the industry and will operate two 12-hour shifts per day, 365 d/a with an overall plant availability of 92%.

The 10,000 t/d process plant design is conventional for the industry and will operate two 12-hour shifts per day, 365 d/yr with an overall plant availability of 92%.

The process plant will produce three concentrates:

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Gold and silver are expected to be payable at a smelter;

silver is expected to be payable in the copper and lead concentrates, with gold expected to be payable in the lead concentrate only.

There are several deleterious elements reporting to the concentrates at levels which would incur penalties;

however, there are no special processing provisions required to make a readily saleable concentrate.

both gold and silver is expected to be payable in the copper and lead concentrates.

While there are several deleterious elements reporting to the concentrates at levels that could incur penalties, there are no special processing provisions required to make a readily saleable concentrate.

The presence of naturally hydrophobic talc minerals was consistently observed in the various testwork programs.

There is little reason to expect concentrates will be impaired by talc contamination as talc can be effectively removed from the flotation process prior to base metal flotation.

Talc and fluorine levels will be managed by optimization of the talc pre-float circuit, effectively removing talc and fluorine to ensure the quality of the lead concentrate.

The mill feed will be hauled from the open pit to a primary crushing facility where the material will be crushed by a jaw crusher to a particle size of 80% passing 80 mm.

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The bulk rougher concentrate will be cleaned and followed by copper and lead separation to produce a lead concentrate and a copper concentrate.

The final tailings from the zinc flotation circuit will be pumped to a TMF.

The final tailings from the zinc flotation circuit will be pumped to a tailing management facility (“TMF”).

Copper, lead, and zinc concentrates will be thickened and pressure-filtered before being transported by truck to a port and shipped to smelters.

Based on the mine plan developed for the Arctic FS and metallurgical testwork results, the LOM average metal recoveries and concentrate grades will be:

● Copper concentrate:

89.9% copper;

● Copper grade:

● Lead concentrate:

● Lead grade:

● Zinc concentrate:

● Zinc grade:

The average annual dry concentrate production is estimated as:

● Copper concentrate:

● Lead concentrate:

● Zinc concentrate 173,093 t/a

Based on the mine plan developed for the NI 43-101 Arctic Report and S-K 1300 Arctic Report and metallurgical testwork results, the LOM average metal recoveries and concentrate grades are presented in table 10.

Table 10 – LOM average recovery and grade

LOM Production

The recovery plan includes provision for reagents, and water and power requirements.

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Infrastructure

The Arctic Project site is a remote, greenfields site that is remote from existing infrastructure.

The Arctic Project site is a remote, greenfield site that is remote from existing infrastructure.

Infrastructure that will be required for the mining and processing operations will include:

● Open pit mine

● Stockpiles and WRF

● Stockpiles and Waste Rock Facility (“WRF”)

● Truck workshop, truck wash, mine offices, mine dry facility and warehouse

● Power house

● Administration building

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● Reagent storage and handling building

● Raw water supply building

● Tailings management facility

● Explosive storage silos and magazines

● Avalanche mitigation structures

● Surface water diversion and collection channels, culverts, and containment structures

The Arctic Project site will be accessed through a combination of State of Alaska-owned highways (existing), an Alaska Industrial Development and Export Authority-owned private road (proposed) and Trilogy-owned access roads (proposed).

The AMDIAP road is proposed by AIDEA to connect the Ambler mining district to the Dalton Highway.

The AMDIAP road expected to be permitted as a private road with restricted access for industrial use.

To connect the Arctic Project site and the existing exploration camp to the proposed AMDIAP road, a 30.7 km access road (the Arctic access road) will need to be built.

● Waste rock collection pond (“WRCP”)

● Process water pond

● Water treatment plant (“WTP”)

The Arctic Project site will be accessed through a combination of State of Alaska-owned highways (existing), an AIDEA-owned private road (proposed) and Ambler-owned access roads (proposed).

The AAP road is proposed by AIDEA to connect the Ambler Mining District to the Dalton Highway.

The AAP road expected to be permitted as a private road with restricted access for industrial use.

To connect the Arctic Project site and the existing exploration camp to the proposed AAP road, an access road (the Arctic access road) will need to be built.

The State of Alaska-owned, public Dahl Creek airport will require upgrades to support the planned regular transportation of crews to and from Fairbanks.

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The total connected load will be 25.9 MW with a normal running load of 21.0 MW.

Diesel will be supplied via existing fuel supply networks in the region and shipped along the AMDIAP road.

Diesel will be supplied via existing fuel supply networks in the region and shipped along the AAP road.

Accommodation

The Arctic Project will require three different self-contained camps, equipped with their own power and heat generation capabilities, water treatment plant, sewage treatment plant, and garbage incinerator.

The existing 90-person exploration camp will be used to start the construction of the Arctic access road.

A 185-person construction camp will be constructed at the intersection of the AMDIAP road and Arctic access road and will be decommissioned once construction is complete.

The permanent camp will be constructed along the Arctic access road, closer to the planned processing facility.

The 400-person permanent camp will be constructed ahead of operations to support the peak accommodation requirements during construction.

The Arctic Project will require three self-contained camps, in two different locations, equipped with their own power and heat generation capabilities, potable water treatment plant, sewage treatment plant, and garbage incinerator.

The existing 90-person Bornite Camp currently used for exploration will be expanded and used to start the construction of the Arctic access road and the logistics yard and construction camp.

This Bornite Camp will be expanded and available prior to surface access from the Dalton Highway via the AAP road is available.

A 250-person construction camp (“CC”) will be constructed at location near the intersection of the AAP road and Arctic Mine Access road, across the road from the Logistics Yard.

CC will be constructed when limited access via the AAP is available for the transport of camp modules.

A Permanent Accommodations Facility (“PAF”) will be constructed in the same location as CC.

The PAF will be constructed when the AAP is available to transportation of the modules by truck and will be operating for about 2 years prior to the commissioning of the Arctic Mill and production of concentrates.

During this period, it will be used to accommodate both construction personnel and the initial Ambler Metals Mine Operations and support personnel required for pre-production mining.

Waste Rock Facility

A large WRF will be developed north of the Arctic pit in the upper part of the Subarctic Creek valley.

The WRF is be designed to store waste rock as well as provide a buttress for the tailings containment in the adjacent footprint.

The WRF will be developed north of the Arctic pit in the upper part of the Subarctic Creek valley.

The WRF is designed as part of the tailings dam structure to provide a buttress for tailings containment in the adjacent footprint.

The total volume of waste rock is expected to be 162.6 Mm3 (340 Mt);

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Overburden Stockpiles

There will also be two small overburden stockpiles to store the stripped topsoil and overburden from the TMF footprint.

The topsoil stockpile will be placed between the haul roads with capacity to store up to 325,000 m 3 of material while the overburden stockpile will be located below the lower haul road between the pit and the mill site with capacity to store up to 2,200,000 m 3 .

There will also be three small overburden stockpiles to store the stripped topsoil and overburden from the TMF and WRF footprint.

The topsoil stockpile will be placed between the haul roads with capacity to store up to 325,000 m3 while the overburden stockpile will be located south of the WRF to store up to 2,200,000 m3.

Tailings Management Facility

The TMF will be located at the headwaters of Subarctic Creek, in the upper-most portion of the creek valley.

The 58.6 ha footprint of the TMF will be fully lined with an impermeable liner.

Tailings containment will be provided by the natural topography on the valley sides and an engineered cross valley dam that will be buttressed by the WRF constructed immediately downstream of the TMF.

The 59 ha footprint of the TMF will be fully lined with a geomembrane liner.

Tailings containment will be provided by an engineered dam, buttressed by the WRF that will be constructed immediately downstream of the TMF and the natural topography on the valley sides.

A starter dam will be constructed to elevation 830 m.

Three subsequent raises will

bring the final dam crest elevation to 890 m, which is 40 m lower than the final elevation of the WRF.

The TMF is designed to store approximately 34.5 Mm 3 (37.8 Mt) of tailings plus 4.5 Mm 3 of water produced over the 12-year mine life and still provide capacity for the probable maximum flood with 2.5 m of freeboard.

Three subsequent raises will bring the final dam crest elevation to 892 m, which is 98 m lower than the final elevation of the WRF.

The TMF is designed to store approximately 37.4Mm3 (41.2 Mt) of tailings produced over the 13-year mine life, 3.3 Mm3 of additional pond water, as well as 1.5 times the probable maximum flood, with 2.5 m of freeboard.

Water Management

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A surface water management system will be constructed to segregate contact and non-contact water.

Non-contact water will be diverted around mine infrastructure to Subarctic Creek.

Non-contact water will be

diverted around mine infrastructure to Subarctic Creek.

A groundwater seepage monitoring and collection system will be located down gradient of the WRF and seepage collection pond.

Contact water will be conveyed to treatment facilities prior to discharge to the receiving environment.

A collection pond (WRCP) will be located directly below the toe of the WRF and will be used to collect seepage from the WRF, runoff from the WRF and haul road corridor area, and water pumped from the open pit.

The Arctic Project water and load balance indicates that during operations excess water from the WRCP will need to be treated prior to discharge to the receiving environment.

In the last year of operations and during closure, water from the dewatering of the TMF will also need to be treated prior to discharge to the receiving environment.

Water Treatment Plants

A HDS lime-based neutralization and precipitation process will be used to treat effluent from the WRCP.

The HDS WTP will operate during the open water season from May through October, during operations through to post-closure.

Treated effluent will be discharged via a 12 km pipeline to the Shungnak River.

Long-term water treatment at the HDS WTP will be required in perpetuity.

A Selenium water treatment plant (SeWTP) will treat excess water in the TMF that is predicted to have elevated selenium concentrations.

The SeWTP is anticipated to commence treatment during operation in mine year 12.

A portion of the treated effluent from the HDS WTP will be combined with excess water from the TMF, and treated for selenium such that the selenium water quality standard is met after a mixing zone in the Shungnak River.

The SeWTP will cease once the TMF is dewatered (by approximately year 15 of closure).

Studies are being conducted to evaluate alternative water management strategies and treatment methods that will not require a mixing zone in the Shugnak River.

A WRCP will be located directly below the toe of the WRF and will be used to collect seepage from the WRF, runoff from the WRF and haul road corridor area, and water pumped from the open pit.

The Arctic Project water and load balance model was updated to include the current water management plan.

The model indicates that during operations, excess water from the WRCP will need to be treated prior to discharge to the receiving environment.

During closure, water from the dewatering of the TMF will also need to be treated prior to discharge to the receiving environment.

Water Treatment Plant

It was assumed the site will be assigned water quality-based effluent limits matching the state’s Water Quality Standards for the nearby Subarctic Creek.

Therefore, the WTP is designed to treat all parameters in the predicted site wastewater to the WQS of Subarctic Creek.

This will eliminate the need for a mixing zone and allow treated water to be discharged year-round if needed.

A single WTP, built in stages, will be used.

During Operations phase the WTP will treat effluent from the WRCP, and during Closure phase effluent from the pit.

The WTP will initially consist of chemical/physical treatment with reverse osmosis (“RO”) filtration.

During operations, the RO reject will be sent to the TMF, and only RO permeate will be discharged to Subarctic Creek.

When the TMF is closed at the end of the operations, a biological/chemical/physical plant will be added to treat the RO reject.

The biologic plant discharge will be mixed with the RO prior to discharge.

Market Studies

Metal pricing was based on combination of two year trailing actual metal prices, market research and bank analyst forward price projections, prepared in July 2020 by Jim Vice of StoneHouse Consulting Inc., who was retained by Trilogy.

The long-term consensus metal price assumptions selected for the Arctic FS were:

Metal pricing was guided by 3-year trailing average prices and long-term price forecasts from analysts as published by CIBC in 2022.

The metal price assumptions used in the economic analysis:

Smelter terms were prepared in January 2023 by StoneHouse Consulting Inc.

Smelter terms were applied for the delivery of copper, zinc and lead concentrate.

It was assumed that delivery of all concentrates would be to an East Asian smelter at currently available freight rates.

It was assumed that delivery of all concentrates would be to a smelter in the Asia Pacific region at currently available freight rates.

Total transport costs for the concentrate are estimated at $324.37/dmt.

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The Arctic Project area includes the Ambler lowlands and Subarctic Creek within the Shungnak River drainage.

A moderate amount of baseline environmental data collection has occurred in the area including surface and groundwater quality sampling, surface hydrology monitoring, wetlands mapping, aquatic life surveys, avian and mammal habitat surveys, cultural resource surveys, hydrogeology studies, meteorological monitoring, and ML/ARD studies.

A significant amount of baseline environmental data collection has occurred in the area including surface and groundwater quality sampling, surface hydrology monitoring, wetlands mapping, aquatic life surveys, avian and mammal habitat surveys, cultural resource surveys, hydrogeology studies, meteorological monitoring, and ML/ARD studies.

Permitting Considerations

Trilogy undertakes its current mineral exploration activities at the Arctic deposit under State of Alaska and Northwest Arctic Borough (“NWAB”) permits.

Trilogy is presently operating under a State of Alaska Miscellaneous Land Use Permit that expires at the end of 2022, and a NWAB Permit that expires also expires at the end of 2022.

Both permits are renewable.

Mine development permitting will be largely driven by the underlying land ownership;

regulatory authorities vary depending on land ownership.

The Arctic Project area includes patented mining claims (private land under separate ownership by Trilogy), State of Alaska land, and NANA land (private land).

Because the Arctic Project is situated to a large extent on State land, it will be necessary to obtain a Plan of Operation Approval (which includes the Reclamation Plan and Closure Cost Estimate) from the Alaska Department of Natural Resources (“ADNR”).

The Arctic Project will also require certificates to construct and then operate a dam(s) (tailings and water storage) from the ADNR (Dam Safety Unit) as well as water use and discharge authorizations, an upland mining lease and a mill site lease, as well as several minor permits including those that authorize access to construction material sites from ADNR.

The Alaska Department of Environmental Conservation (“ADEC”) would authorize waste management under an integrated waste management permit, air emissions during construction and then operations under an air permit, and an Alaska Pollutant Discharge Elimination System permit for any wastewater discharges to surface waters, and a Multi-Sector General Permit for stormwater discharges.

The ADEC would also be required to review the US Army Corps of Engineers (“USACE”) Section 404 permit to certify that it complies with Section 401 of the Clean Water Act (“CWA”).

Current mineral exploration activities are conducted at the Arctic deposit under State of Alaska and NWAB permits.

The State of Alaska Miscellaneous Land Use Permit and the NWAB Permit both expired at the end of 2022 and will be renewed.

Mine development permitting will be largely driven by the underlying land ownership with regulatory requirements varying depending on land ownership.

The Arctic Project area includes patented mining claims (private land under separate ownership by Ambler Metals and NANA), State of Alaska land, and NANA land (private land)

Because the infrastructure for the Arctic Project is situated to a large extent on State land, it will likely be necessary to obtain a Plan of Operation Approval (which includes the Reclamation Plan and Closure Cost Estimate) from the Alaska Department of Natural Resources (“ADNR”).

The Arctic Project will also require certificates to construct and operate dams (tailings and water storage) from the ADNR (Dam Safety Unit) as well as water use and discharge authorizations, an upland mining lease and a mill site lease, as well as several minor permits including those that authorize access to construction material sites from ADNR.

The Alaska Department of Environmental Conservation (“ADEC”) would authorize waste management under an Integrated Waste Management permit, air emissions during construction and operations under an air permit, and an Alaska Pollutant Discharge Elimination System permit for any wastewater discharges, and a Multi-Sector General Permit for stormwater discharges.

The ADEC would also be required to review the US Army Corps of Engineers Section 404 permit to certify that it complies with Section 401 of the Clean Water Act (“CWA”).

The Alaska Department of Fish and Game would have to authorize any culverts or bridges that are required to cross fish-bearing streams or other impacts to fish-bearing streams that result in the altering or affecting fish habitat.

Army Corps of Engineers (“USACE”) would require a CWA Section 404 permit for dredging and filling activities in Waters of the United States including jurisdictional wetlands.

The USACE Section 404 permitting action would require the USACE to comply with the Natural Environmental Policy Act (“NEPA”) and, for a project of this magnitude, the development of an Environmental Impact Statement is anticipated.

The USACE Section 404 permitting action would require the USACE to comply with the NEPA and, for a project of this magnitude, the development of an Environmental Impact Statement (“EIS”) is anticipated.

The USACE would likely be the lead federal agency for the NEPA process.

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In Alaska, the EIS and other State and Federal permitting processes are generally coordinated so that permitting and environmental review occurs in parallel.

The NEPA process could require between two to three years to complete, and could potentially take longer.

The NEPA process could require about three years to complete and could potentially take longer.

Social and Community

The Arctic Project is located approximately 40 km northeast of the villages of Shungnak and Kobuk, and 64 km east-northeast of the native village of Ambler.

The population in these villages range from 151 in Kobuk (2010 Census) to 262 in Shungnak (2010 Census).

Residents live a largely subsistence lifestyle with incomes supplemented by trapping, guiding, local development projects, government aid and other work in, and outside of, the villages.

The Arctic Project has the potential to significantly improve work opportunities for village residents.

Trilogy is working directly with the villages to employ residents in the ongoing exploration program as mechanics, geotechnicians, core cutters, administrative staff, camp-services staff, heavy equipment operators, drill helpers, and environmental technicians.

Trilogy and NANA have established a Workforce Development Committee to assist with developing a local workforce.

In addition, Trilogy has existing contracts with native-affiliated companies (such as NANA Management Services and KUNA Engineering Inc.) that are providing camp catering and environmental services for the Arctic Project, respectively.

Local community concerns will also be formally recognized during the development of the Arctic Project EIS.

Early in the EIS process, the lead federal permitting agency will hold scoping meetings in rural villages to hear and record the concerns of the local communities so that the more significant of these concerns can be addressed during the development of the EIS.

In addition, the lead federal agency would have government-to-government consultations with the Tribal Councils in each of the villages, as part of the EIS process, to discuss the Arctic Project and hear Council concerns.

The Arctic Project is located approximately 40 km northeast of the villages of Shungnak and Kobuk, and 65 km east-northeast of the community of Ambler.

The population in these villages are 151 in Kobuk (2020 Census), 210 in Shungnak (2020 Census), and 275 in Ambler (2020 Census).

Residents largely live a subsistence lifestyle with incomes supplemented by guiding, local development projects, employment through tribal and city councils, government aid, and employment both in and outside of their home villages.

The Arctic Project has the potential to significantly improve work opportunities for residents during the exploration phase, construction, and during full operation.

Trilogy’s joint venture, Ambler Metals works directly with the Upper Kobuk villages and communities throughout the region to employ residents as mechanics, geotechnicians, core cutters, administrative staff, camp services, heavy equipment operators, drill helpers, and environmental technicians.

Stakeholder outreach and community meetings in the region by the Arctic Project’s owners over many years have provided the opportunity to engage with residents, provide updated information on the project and future plans for the Upper Kobuk Mineral Project, hear concerns, answer questions, and build relationships.

This engagement has also identified various hurdles residents have faced when applying for employment.

Opportunities have been created for NANA shareholders to apply and receive educational scholarships, participate in job shadowing at Bornite, driver’s license courses, and heavy equipment operator training sponsored by the Arctic Project’s owners.

It is the company’s goal to continue and grow these efforts throughout the permitting process and the life of the project – encouraging and supporting education, job training, employment, and economic growth.

Closure Planning

Mine reclamation and closure are largely driven by State regulations that specify that a mine must be reclaimed concurrent with mining operations to the greatest extent possible and then closed in a way that leaves the site stable in terms of erosion and manages degradation of water quality from acid rock drainage or metal leaching on the site.

A detailed Reclamation Plan and Closure Cost Estimate will be submitted to the State agencies for review and approval in the future, during the formal mine permitting process.

Owing to the fact that the Arctic Project is likely to have facilities on a combination of private (patented mining claims and native land) and State land, it is likely that the Reclamation Plan will be submitted and approved as part of the plan of operations, which is approved by the ADNR.

However, since the reclamation plan must meet regulations of both ADNR and the ADEC, both agencies will review and approve the Reclamation Plan and Closure Cost Estimate.

In addition, private land owners must formally concur with the portion of the Reclamation Plan for their lands so that it is compatible with their intended post-mining land use.

The estimate cost of closure is based on unit rates used by SRK on other closure projects in cold environments.

The indirect costs were included as percentages of the estimated direct costs based on guidelines for Alaska (DOWL 2015).

Long-term water treatment and maintenance of certain water management facilities were calculated separately, and a NPV is provided for the first 100 years, at a discount rate of 4.3%.

Reclamation and closure costs were estimated to be $158.2 million, in discounted 2020 US dollars.

Annual (undiscounted) costs associated with long-term closure activities and operation of the HDS WTP are estimated to be $5.1 million.

Mine reclamation and closure are largely driven by State of Alaska regulations that specify that a mine must be reclaimed concurrent with mining operations to the greatest extent possible and then closed in a way that leaves the site stable in terms of erosion and manages degradation of water quality from acid rock drainage or metal leaching on the site.

A detailed Reclamation Plan and Closure Cost Estimate will be submitted to the State of Alaska agencies for review and approval in the future, during the formal mine permitting process.

Owing to the fact that the Arctic Project is likely to have facilities on a combination of private (patented mining claims and native land) and State land, the Reclamation Plan will be submitted and approved as part of the Plan of Operations, which is approved by the ADNR.

However, since the Reclamation and Closure plan must meet regulations of both ADNR and the ADEC, both agencies will review and approve the Reclamation Plan and Closure Cost Estimate.

In addition, private landowners must formally concur with the portion of the Reclamation Plan for their lands so that it is compatible with their intended post-mining land use.

The estimated closure costs are determined from unit rates based on projects located in Alaska.

The indirect costs were included as percentages of the estimated direct costs.

Long-term water treatment and maintenance of certain water management facilities were calculated separately, and a net present value (“NPV”)value is provided for the first 100 years, at a discount rate of 4.3%.

Annual undiscounted costs associated with long-term operations of the WTP are estimated to be $11.7 million in Phase 1 closure (15-years post-closure) and $10.8 million in Phase 2 closure (85 years thereafter), amounting to $1,095 million over the 100-year closure period.

These costs equate to 258 million when discounted at 4.3% p.a.

to the first year of post-production.

Capital and Operating Costs

Capital Costs

The capital cost estimate has an estimated accuracy of ±15% and uses quarter 4, 2019 US dollars as the base currency.

The capital cost estimate has an estimated accuracy of ±15% and uses Q3/Q4-2022 US dollars as the base currency.

The total estimated initial capital cost for the design, construction, installation, and commissioning of the Arctic Project is estimated to be $1,177 million.

A summary of the estimated capital cost is shown in Table 7.

Table 7 – Initial Capital Costs

A summary of the estimated initial capital cost, sustaining capital cost and closure costs is shown in Table 11.

Table 11 – Capital Cost Summary

WBS Level 1 Description

Initial Capex

Sustaining Capex

Process Plant

On-site Infrastructure

Off-site Infrastructure

Direct Subtotal

Indirect Total

Sub-total Direct Costs

Provisions (Contingency)

Sub-total Indirect Costs

Project Total

The total sustaining capital cost estimate is $113.8 million for the 12-year LOM which includes equipment, tailings and other items.

Closure costs were estimated to be $205.4 million.

These costs are summarized in Table 8.

Table 8 – Sustaining Capital and Closure Costs

On-Site Infrastructure

Total Sustaining Capital

Closure Costs

Project Total – Closure Costs

Operating Costs

The operating cost estimates use US dollars as the base currency and have an accuracy of ±15%.

An average operating cost was estimated for the Arctic Project based on the proposed mining schedule.

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The average LOM operating cost for the Arctic Project is estimated to be $59.83/t milled.

The breakdown of costs in Table 9 is estimated based on the LOM average mill feed rate.

All pre-production costs have been included in capital costs.

Table 9 – Operating Costs

LOM Average Unit

Operating Cost

Percentage of Total

The breakdown of costs in Table 12 is estimated based on the LOM average mill feed rate of 3,650,000 t/y.

All pre-production costs have been included in the capital cost estimate in “Properties – Arctic Project—Capital and Operating Costs – Capital Costs” above.

Table 12 – Overall Operating Cost Estimate

LOM Average Unit Operating Cost

($/ t milled)

Annual Operating Costs

Surface Operations

Percentage of Total Annual

Operating Costs

Road Toll and Maintenance

Water Treatment

Total Operating Cost

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Economic Analysis

The results of this economic analysis represent forward looking information.

The results depend on the inputs that are subject to several known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those presented in this section.

Information that is forward looking includes mineral reserve estimates, commodity prices, the proposed mine production plan, construction schedule, projected recovery rates, proposed capital and operating cost estimates, closure cost estimates, toll road cost estimates, and assumptions on geotechnical, environmental, permitting, royalties, and hydrogeological information.

An economic analysis was undertaken on a 100% basis to determine the IRR, net present value and payback on initial investment of the Arctic Project.

Trilogy holds 50% of Ambler Metals.

The Arctic Project consists of a three-year pre-production construction period, followed by 12 years of production.

Ausenco developed a pre-tax cash flow model for the Arctic Project and the NPV and IRR were calculated at the beginning of the construction period in Year -3.

The results of the economic analyses discussed in this section represent forward-looking information as defined under Canadian securities law.

The results depend on inputs that are subject to several known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those presented herein.

Information that is forward-looking includes the following:

Proven and Probable Mineral Reserves that have been modified from Measured and Indicated Mineral Resource estimates;

assumed commodity prices and exchange rates;

proposed mine and process production plan;

projected mining and process recovery rates;

ability to market the three types of concentrate on favourable terms;

ability to control the levels of deleterious elements in some of the concentrate batches;

sustaining costs and proposed operating costs;

assumptions as to closure costs and closure requirements, including WTP requirements;

assumptions as to development of the Ambler Access Project, timeframe of such development and assumed toll charges;

assumptions as to ability to permit the project;

assumptions about environmental, permitting and social risks.

An economic analysis was undertaken on a 100% project ownership basis to determine the internal rate of return (“IRR”), NPV and payback on initial investment of the Arctic Project.

Trilogy holds a 50% interest in the Arctic Project though its ownership in Ambler Metals.

The Arctic Project consists of a three-year construction period, followed by 13 years of production.

The pre-tax financial model incorporated the production schedule and smelter term assumptions to produce annual recovered payable metal, or gross revenue, in each concentrate stream by year.

Off-site costs, including the applicable refining and treatment costs, penalties, concentrate transportation charges, marketing and representation fees, and royalties were then deducted from gross revenue to determine the NSR.

The operating cash flow was then produced by deducting annual mining, processing, G&A, surface services, and road toll charges from the NSR.

The operating cash flow was then produced by deducting annual mining, processing, G&A, surface services, and road toll & maintenance charges from the NSR.

Initial and sustaining capital was deducted from the operating cash flow in the years they occur, to determine the net cash flow before taxes.

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The model includes an allocation of a 1% NSR attributable to NANA.

The pre-tax financial results are:

● $1,550.9 million NPV at an 8% discount rate

● 2.4 year payback period, on the initial capital costs of $905.6 million

● Undiscounted pre-tax cashflow of $3,768.0 million over LOM

The following tax regimes were incorporated in the post-tax analysis:

US Federal Income Tax, Alaska State Income Tax, and Alaska Mining License Tax.

Taxes are calculated based on currently enacted United States and State of Alaska tax laws and regulations, including the US Federal enactment of the Tax Cuts & Jobs Act on December 22, 2017.

At the base case metal prices used for this study, the total estimated taxes payable on the Arctic Project profits are $924.7 million over the 12-year mine life.

The post-tax financial results are:

● $1,134.7 million NPV at an 8% discount rate

● 2.6 year payback period, on the initial capital costs of $905.6 million

● Undiscounted post-tax cashflow of $ 2,843.4 million over LOM

With total capital costs of $1,719 million over LOM ($1,177 million initial capital cost, $114 million sustaining capital cost and $428 million closure costs), the project demonstrates a pre-tax NPV of $1,500 million at an 8% discount rate, IRR of 25.8% and payback period of 2.9 years.

Post-tax financials have an NPV of $1,108 million at an 8% discount rate, IRR of 22.8% and payback period of 3.1 years.

The estimated cash flow forecast over LOM is $3,942.6 million undiscounted pre-tax cash flow, $1,500.3 million discounted pre-tax cash flow at an 8% discount rate, $3,019.9 million undiscounted post-tax cash flow and $1,108.1 discounted post-tax cash flow at an 8% discount rate.

Sensitivity Analysis

Ausenco investigated the sensitivity of the Arctic Project’s pre-tax NPV, and IRR to several project variables, including metal prices (copper, zinc, lead, gold, silver), capital costs, and operating costs (onsite and offsite).

The metal grade is not presented in these sensitivity graphs because the impacts of changes in the metal grade mirror the impact of changes in metal price.

The Arctic Project’s pre-tax NPV at an 8% discount rate is most sensitive to changes in copper price, followed by zinc price, off-site operating costs, on-site operating costs, capital costs, silver price, gold price, and lead price.

The Arctic Project’s pre-tax IRR is most sensitive to changes in copper price and capital cost, followed by zinc price and off-site operating costs, and in then decreasing order, on-site operating costs, silver price, gold price, and lead price

Ausenco investigated the sensitivity of the Arctic Project’s pre-tax NPV, and IRR to several project variables.

The following variables were elected for this analysis:

● Copper price

● Silver price

● Capital costs

● On-site operating costs

● Off-site operating costs (royalties, refining and treatment charges, penalties, insurance, marketing, and representation fees, and concentrate transportation).

Each variable was changed in increments of 10% between -20% to +20% while holding all other variables constant.

The project NPV at an 8% discount rate is most sensitive to changes in copper price, followed by off-site operating costs, on-site operating costs, zinc price, capital costs, silver price, gold price and lead price.

Exploration, Development, and Production

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● Waste Rock placement and Tails Dam

● Project water management and treatment

● Arctic Project water management and treatment

● Arctic Access Road design and construction, in particular the pioneer road necessary to allow earliest possible access to the Mine pre-assembly construction site

● Pioneer, Construction and Permanent Camps.

● Bornite, Construction and Permanent Camps.

The Interface Management procedures will be developed to ensure services at the battery limits are clearly defined and understood by all parties affected.

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The Mine requires nominally two years of pre-strip operations, tailings pond starter dam development and water accumulation before actual production mining operations can commence.

For that pre-strip work to start, the Arctic access road from the AMDIAP intersection to the mine site will have to be constructed to at least a pioneer road condition that will allow the mine fleet and the support facilities to be delivered, built and made operational.

For that pre-strip work to start, the Arctic access road from the AAP intersection to the mine site will have to be constructed to at least a pioneer road condition that will allow the mine fleet and the support facilities to be delivered, built and made operational.

Tailings pond construction must be to a height to allow natural collection of water in quantities that will allow plant operations to commence.

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By default, the rest of the civil design would need to attach to that early works for simple plant layout and construction coordination purposes.

For that to occur the plant layout will be required to be frozen a lot earlier than normal.

That in turn is dependent on sizing and selection of the major process equipment items and the receipt of certified vendor data.

For that to occur the plant layout will be required to be established at an early stage.

That in turn is dependent on sizing and selection of the major process equipment items and the receipt of vendor data to complete the plant layout.

Effectively, the detailed design phase will need to follow the conventional approach and run its course but started at a time that meets the early works schedule requirements.

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With the early equipment order placement, the supply phase could become inordinately long, extending over three years in most cases, when in fact the equipment is not likely to be needed until the last eighteen months prior to plant start¬up.

An unorthodox but proven option to this extended design, supply and construction schedule is to have the EPCM Contractor buy the major equipment in two steps:

Buy only the vendor certified engineering data to allow detailed engineering to continue to completion but hold the manufacturing functions until later in the overall schedule, effectively a delay of around twelve to fifteen months.

An unorthodox but proven option to this extended design, supply and construction schedule is to have the EPCM Contractor procure the major equipment in two steps:

Procure only the vendor certified engineering data to allow detailed engineering to continue to completion but hold the manufacturing functions until later in the overall schedule, effectively a delay of around twelve to fifteen months.

Based on agreed vendor manufacturing durations, apply a “late” release of the equipment for manufacture with deliveries effectively becoming a “Just-in Time” logistics operation.

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● Reduced cashflow demands.

The disadvantages with this approach are:

Potential issues to be mitigated with this approach are:

● The vendors need to be clearly briefed as to what the system means to their manufacturing schedule.

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Interpretations and Conclusions

The Arctic deposit will be mined at an annual rate of 36 Mt/a, with an overall stripping ratio of 6.9:1.

Ore will be processed by conventional methods to annually produce 241,024 tonnes of copper, 28,234 tonnes of lead, and 173,093 tonnes of

zinc, all in concentrates for provision to third party refiners.

The Arctic deposit will be mined at an maximum annual rate of 35 Mt of ore per year with an overall stripping ratio of 7.3.

Ore will be processed by conventional methods to annually produce 234 kt of copper, 23 kt of lead, and 174 kt of zinc, all in concentrates for provision to third party refiners.

Waste and tailings materials will be stored in surface facilities, which will be closed and reclaimed at the end of the mine;

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Precious metals attendant with the concentrates will be largely payable.

While there are expected to be several deleterious elements in the concentrates at levels that may incur penalties, there are no special processing requirements.

Under the assumptions presented in the 2020 Arctic Report, the Arctic Project shows positive economics.

The financial analysis excludes consideration of the NANA Agreement, whereby NANA has the right, following a construction decision, to elect to purchase a 16% to 25% direct interest in the Arctic Project or, alternatively, to receive a 15% Net Proceeds Royalty.

The financial analysis excludes consideration of the new joint venture formed between South32 and Trilogy.

The cost assumptions for the AMDIAP road are estimates provided by Trilogy.

There is a risk to the capital and operating cost estimates, the financial analysis, and the Mineral Reserves if the toll road is not built in the time frame required for the Arctic Project, or if the toll charges are significantly different from what was assumed.

there are deleterious elements reporting to the concentrates at levels that could incur penalties, special processing provisions have been included in the flowsheet to make a readily saleable concentrate.

In terms of project execution, the mine requires nominally two years of pre-strip operations, tailings pond starter dam development and water accumulation before actual production mining operations can commence.

Recommendations

A single-phase work program is recommended, which will include:

additional drilling program to upgrade a portion of the indicated resource to measured resource;

drill and blast study;

geotechnical investigations and studies;

further geohazards assessment;

site specific seismic hazard assessment;

updating of hydrogeological models and groundwater management plans;

optimization of the plant and related service facilities and evaluation of the power supply;

examination of water management, water treatment, WRF and TMF designs;

baseline studies and environmental permitting activities;

and additional metallurgical testwork.

The budget for this work is estimated at about $7.0 million.

Bornite Project, Ambler District, Alaska

For that pre-strip work to start, the Arctic access road from the Ambler Access Project intersection to the mine site will have to be constructed to at least a pioneer road condition that will allow the mine fleet and the support facilities to be delivered, built, and made operational.

Based on $1,177 million of initial capital costs, sustaining capital costs of $114 million, closure costs of $428 million, $2,969 million in LOM off-site operating costs and $2,794 million in LOM on-site operating costs, pre-tax financial results show a project IRR of 25.8% and an NPV of $1,500 million at an 8% discount rate and a 2.9-year payback period.

Post-tax results show a project IRR of 22.8% and NPV of $1,108 million at an 8% discount rate and a 3.1-year payback period.

Bornite Project

Except as otherwise stated, the scientific and technical information relating to the Bornite Project contained in this Form 10-K is derived from the technical report entitled “NI 43-101 Technical Report on the Bornite Project, Northwest Alaska, USA” dated February 11, 2022, with an effective date of December 31, 2021, prepared by SIM Geological Inc., Bruce M.

Davis and International Metallurgical & Environmental Inc.

(the “2021 Bornite Report”).

The Company is subject to and required to disclose mineral resources and mineral reserves in accordance with S-K 1300.

While the S-K 1300 rules are similar to NI 43-101 rules in Canada, they are not identical and therefore two reports have been produced for the Arctic Project.

The information in Item 2, Properties, contains pertinent information required under both NI 43-101 and S-K 1300.

Except as otherwise stated, the scientific and technical information relating to the Bornite Project contained in this Form 10-K is derived from the (i) 2023 S-K 1300 report for Bornite titled “Technical Report Summary on the Initial Assessment of the Bornite Mineral Resource, Northwest, Alaska, USA” dated November 30, 2022 prepared by Wood Canada Limited, which is unaffiliated with Trilogy (“S-K 1300 Bornite Report”) and the (ii) technical report titled “NI 43-101 Technical Report on the Mineral Resource Update of the Bornite Project, Northwest Alaska, USA” with an effective date of January 26, 2023, prepared by Wood Canada Limited (the “NI 43-101 Bornite Report”).

The information regarding the Bornite Project is based on assumptions, qualifications and procedures which are not fully described herein.

Reference should be made to the full text of the 2021 Bornite Report which has been filed with certain Canadian securities regulatory authorities pursuant to NI 43-101 and is available for review on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

Bornite Project - Property Description and Location

The property is located in the Ambler Mining District of the southern Brooks Range in the Northwest Artic Borough (“NWAB”) of Alaska.

Reference should be made to the full text of the S-K 1300 Bornite Report and the NI 43-101 Bornite Report which has been filed, as applicable, with certain Canadian securities regulatory authorities pursuant to NI 43-101.

The NI 43-101 Bornite Report is available for review on SEDAR at www.sedar.com and the S-K 1300 Bornite Report is available for review on EDGAR at www.sec.gov.

Property Description, Location, and Access

The Bornite property is located in the Ambler Mining District of the southern Brooks Range in the NWAB of Alaska.

The property is located in Ambler River A-2 quadrangle, Kateel River Meridian T 19N, R 9E, sections 4, 5, 8 and 9.

latitude and W156.94° longitude (Universal Transverse Mercator North American Datum 83, Zone 4W coordinates 7440449N, 589811E).

At the time of the formation of Ambler Metals, Trilogy transferred its Alaskan assets, including the Bornite Project, to the newly formed joint venture.

The mineral resource estimates with respect to the Bornite Project are reported on a 100% basis, of which Trilogy’s share is 50%.

Bornite Project - Accessibility, Climate, Local Resources, Infrastructure, and Physiography

The Bornite Project is located 248 km east of the town of Kotzebue, 19 km north of the village of Kobuk, 275 km west of the Dalton Highway (an all-weather state maintained public road) at geographic coordinates N67.07° latitude and W156.94° longitude (Universal Transverse Mercator North American Datum 83, Zone 4W coordinates 7440449N, 589811E).

Primary access to the Bornite Project is by air, using both fixed wing aircraft and helicopters.

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The airstrip at Bornite is suited to smaller aircraft, which support the Bornite camp with personnel and supplies.

There is no direct water access to the property.

During spring runoff, river access is possible by barge from Kotzebue Sound to Ambler, Shungnak, and Kobuk via the Kobuk River.

A two-lane, two-wheel drive gravel road links the Bornite Project’s main camp to the 1,525 m Dahl Creek airstrip and village of Kobuk.

The climate in the region is typical of a sub-arctic environment.

Exploration is generally conducted from late May until late September.

Weather conditions on the Bornite Project can vary significantly from year to year and can change suddenly.

During the summer exploration season, average maximum temperatures range from 10°C to 20°C, while average lows range from -2°C to 7°C.

By early October, unpredictable weather limits safe helicopter travel to the property.

During winter months, the property can be accessed by snow machine, track vehicle, or fixed-wing aircraft.

Winter temperatures are routinely below -25°C and can exceed -50°C.

Annual precipitation in the region averages 395 mm with the most rainfall occurring from June through September, and the most snowfall occurring from November through January.

Drilling and mapping programs are seasonal and have been supported out of the main Bornite Camp.

The main Bornite Camp facilities are located on Ruby Creek on the northern edge of the Cosmos Hills.

The camp provides office space and accommodations for the geologists, drillers, pilots, and support staff.

There were four two-person cabins installed by NANA prior to our tenure.

The 85-person capacity Bornite Camp consists of 35 structures most of which are metal-framed, insulated tents that house multi-occupancy sleeping accommodations, kitchen facilities, dining facilities, medical services, showers, washrooms, laundry, administrative offices, and a recreation tent.

Early 1960s-era legacy structures constructed by Kennecott to support Bornite Shaft sinking are used for equipment maintenance, storage, and sleeping cabins.

Core is logged in two, metal-clad buildings:

one from the early 1970s and one 30 m x 9 m structure that was built in 2011.

Electricity is generated at site by one 275 kW primary and one 300 kW backup diesel-powered generator.

Potable water is sourced from a permitted well.

Solid waste disposal is accomplished by a combination of diesel-fired incineration and permitted landfill placement.

The primary camp’s domestic wastewater is treated in a packaged bioreactor-style treatment plant before it is discharged.

Wastewater from a small portion of the camp is treated in a conventional septic system.

The Bornite Project is located on Ruby Creek on the northern edge of the Cosmos Hills.

The Cosmos Hills are part of the southern flank of the Brooks Range in Northwest Alaska.

Topography in the area is moderately rugged.

Maximum relief in the Cosmos Hills is approximately 1,000 masl with an average of 600 masl.

Talus covers the upper portions of the hills;

glacial and fluvial sediments occupy valleys.

The Kobuk Valley is located at the transition between boreal forest and Arctic tundra.

Spruce, birch, and poplar are found in portions of the valley, with a ground cover of lichens (reindeer moss).

Willow and alder thickets and isolated cottonwoods follow drainages, and alpine tundra is found at higher elevations.

Tussock tundra and low, heath-type vegetation covers most of the valley floor.

Patches of permafrost exist on the property.

Wildlife in the property area is typical of Arctic and Subarctic fauna.

Larger animals include caribou, moose, Dall sheep, bears (grizzly and black), wolves, wolverines, coyotes, and foxes.

Fish species include salmon, sheefish, arctic char, and arctic grayling.

The Kobuk River, which briefly enters the Upper Kobuk Mineral Projects on its southwest corner, is a significant salmon spawning river.

The caribou on the property belong to the Western Arctic herd that migrates twice a year – south in August, from their summer range north of the Brooks Range, and north in March from their winter range along the Buckland River.

Bornite Project - History

A two-lane, two-wheel drive gravel road links the Bornite camp to the 1,525 m Dahl Creek airstrip and village of Kobuk.

On February 11, 2020, Trilogy Metals transferred the UKMP, including the Bornite property, to a 50/50 joint venture named Ambler Metals.

With NANA’s approval, Trilogy Metals also contributed, along with the UKMP, its rights under the NANA Agreement to Ambler Metals while its joint venture partner, South32, contributed $145 million dedicated to advancing the projects.

The NANA Agreement provides that NANA will grant Trilogy Metals the nonexclusive right to enter onto, and the exclusive right to explore, the Bornite Lands and the ANCSA Lands (each as defined in the NANA Agreement) and in connection therewith, to construct and utilize temporary access roads, camps, airstrips, and other incidental works.

The NANA Agreement has a term of 20 years, with an option in favour of Trilogy Metals to extend the term for an additional 10 years.

The NANA Agreement may be terminated by mutual agreement of the parties or by NANA if Trilogy Metals does not meet requirements of aggregate expenditures over two consecutive calendar years are not at least $600,000 on NANA’s lands.

Trilogy Metals has confirmed they met this expenditure requirement to date.

The NANA Agreement outlines a partnership agreement for the development the UKMP.

If, following receipt of a feasibility study and the release for public comment of a related draft environmental impact statement, Ambler Metals decides to proceed with construction of a mine on the lands subject to the NANA Agreement, Ambler Metals will notify NANA in writing and NANA will have 120 days to elect to either (a) exercise a non-transferrable back-in-right to acquire between 16% and 25% (as specified by NANA) of that specific project;

or (b) not exercise its back-in-right, and instead receive a net proceeds royalty equal to 15% of the net proceeds realized by Ambler Metals from such project.

The cost to exercise such back-in-right is equal to the percentage interest in the property multiplied by the difference between (i) all costs incurred by Ambler Metals or its affiliates on the property, including historical costs incurred prior to the date of the NANA Agreement together with interest on the historical costs;

and (ii) $40 million (subject to exceptions).

This amount will be payable by NANA to Ambler Metals in cash at the time the parties enter into a joint venture agreement and in no event will the amount be less than zero.

In the event that NANA elects to exercise its back-in-right, the parties will, as soon as reasonably practicable, form a joint venture with NANA electing to participate between 16% to 25%, and Ambler Metals will own the balance of interest in the joint venture.

Upon formation of the joint venture, the joint venture will assume all obligations of Ambler Metals and be entitled to all the benefits of Ambler Metals under the NANA Agreement in connection with the mine to be developed and the related lands.

A party’s failure to pay its proportionate share of costs in connection with the joint venture will result in dilution of its interest.

Each party will have a right of first refusal over any proposed transfer of the other party’s interest in the joint venture other than to an affiliate or for the purposes of granting security.

A transfer by either party of a NSR royalty on the property or any net proceeds royalty interest in the property other than for financing purposes will also be subject to a first right of refusal.

In connection with possible development on the Bornite Lands, Ambler Metals and NANA will execute a mining lease to allow Ambler Metals or the joint venture to construct and operate a mine on the Bornite Lands.

These leases will provide NANA a 2% NSR royalty as to production from the Bornite Lands.

If Ambler Metals decides to proceed with construction of a mine on its own lands subject to the NANA Agreement, NANA will enter into a surface-use agreement with Ambler Metals which will afford Ambler Metals access to the project along routes approved by NANA.

In consideration for the grant of such surface use rights, Ambler Metals will grant NANA a 1% NSR royalty on production and an annual payment of $755 per acre (as adjusted for inflation each year beginning with the second anniversary of the effective date of the NANA Agreement and for each of the first 400 acres (and $100 for each additional acre) of the lands owned by NANA and used for access which are disturbed and not reclaimed.

Environmental Liabilities

Under the NANA Agreement, NANA is required to complete a baseline environmental report following the cleanup of the former mining camp on the Bornite Lands;

this work must be completed to Alaska Department of Environmental Conservation standards.

Cleanup includes the removal and disposal, as required by law, of all hazardous substances present on the Bornite Lands.

NANA has indemnified and will hold Trilogy Metals harmless for any loss, cost, expense, or damage suffered or incurred attributable to the environmental condition of the Bornite Lands at the date of the baseline report which relate to any activities prior to the date of the agreement.

Reclamation of mineral exploration activities at the Bornite property is completed under the guidelines presented by the State of Alaska in the Multi-Year Hardrock Exploration Permit #2183 issued by the Department of Natural Resources Division of Mining, Land, and Water.

Multiple permits are required during the exploration phase of the Bornite property.

Permits are issued from Federal, State, and Regional agencies, including:

the Environmental Protection Agency, US Army Corps of Engineers, ADEC, Alaska Department of Fish and Game, ADNR, and NWAB.

The State of Alaska permit for exploration on the Bornite property, known as the Annual Hardrock Exploration Activity (“AHEA”) Permit, is obtained and renewed every five years through the ADNR – Division of Mining, Land and Water.

Trilogy Metals held an AHEA exploration permit in good standing with the ADNR and has done so each year since 2004 under Alaska Gold.

The Bornite property is within the NWAB therefore requiring a Title 9 Miscellaneous Land Use permit for mineral exploration, fuel storage, gravel extraction, and the operation of a landfill.

The Bornite camp, Bornite landfill, and Dahl Creek camp are permitted by the ADEC.

After the formation of the joint venture, Ambler Metals has renewed the necessary permits for exploration and related camp operations.

As the Bornite Project progresses, additional permits for environmental baseline and engineering studies will be necessary at Federal, State, and Regional levels.

The QP is not aware of any significant factors and risks that may affect access, title, or the right or ability to perform work on the Bornite property other than what is described in the NI 43-101 Bornite Report and the S-K 1300 Bornite Report.

The mineral resource estimates with respect to the Bornite Project are reported on a 100% basis, of which Trilogy’s share is 50%.

Kennecott and Bear Creek Mining Tenure

Regional exploration began in the early 1900s when gold prospectors noted copper occurrences in the hills north of Kobuk, Alaska.

In 1947, local prospector Rhinehart “Rhiny” Berg along with various partners traversing in the area located outcropping mineralization along Ruby Creek (Bornite) on the north side of the Cosmos Hills.

They subsequently staked claims over the Ruby Creek showings and constructed an airstrip for access.

In 1957, Bear Creek Mining Company (“BCMC”), Kennecott's exploration subsidiary, optioned the property from Berg.

Exploration drilling in 1961 and 1962 culminated in the discovery of the “No.1 Ore Body” where drill hole RC-34 cut 20 m of 24% Cu (the “No.1 Ore Body” is a historical term used by BCMC that does not connote economic viability in the present context;

it is convenient to continue to use the term to describe exploration work and historical mineral resource estimation in a specific area that was previously referred to as the Ruby Creek zone and is now referred to simply as the Ruby Zone).

The discovery of the “No.1 Ore Body” led to the development of an exploration shaft in 1965 through 1966.

The shaft, which reached a depth of 328 m, encountered a significant watercourse and was flooded near completion depth.

The shaft was subsequently dewatered and an exploration drift was developed to provide access for sampling and mapping, and to accommodate underground drilling to further delineate mineralization.

A total of 59 underground holes were drilled before the shaft was allowed to re-flood.

Prospectors in search of gold, travelling up the Kobuk River in 1898 to 1899 found several small gold placer deposits in the southern Cosmos Hills that were worked intermittently over the ensuing decades.

Around this time, copper mineralization at Ruby Creek and Pardner Hill was explored using small shafts and adits.

At Ruby Creek, Smith describes bornite and chalcopyrite and lesser amounts of galena and pyrite filling open spaces in brecciated zones in limestone and in places replacing dolomite breccia.

In 1947, Rhinehart “Rhiny” Berg staked claims over the Ruby Creek prospects, carried out extensive trenching and the first diamond drilling, and constructed an airstrip for access.

In 1957, BCMC, Kennecott’s exploration subsidiary, optioned the property from Berg.Exploration drilling in 1961 and 1962 culminated in the discovery of the “No.1 Ore Body” where drill hole RC-34 cut 20 m of 24% Cu (the “No.

1 Ore Body” is a historical term used by BCMC that does not connote economic viability in the present context;

it is convenient to continue to use the term to describe exploration work in a specific area that was previously referred to as the Ruby Creek Zone and is now referred to as simply the Ruby Zone).

The discovery of the “No.

1 Ore Body” led to the development of an exploration shaft in 1965 through 1966, the development of an exploration drift and the completion of underground drilling in 1967.

The discovery of the Arctic project in 1965 prompted a hiatus in exploration at Bornite, and only limited drilling occurred up until 1997.

In the late 1990s, Kennecott resumed its evaluation of the Bornite deposit and the mineralization in the Cosmos Hills with an intensive soil, stream, and rock chip geochemical sampling program using a 32-element ICP analyses.

Grid soil sampling yielded 765 samples.

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Geochemical sampling identified multiple areas of elevated copper and zinc in the Bornite region.

Kennecott completed numerous geophysical surveys as an integral part of exploration throughout its tenure on the property.

Kennecott completed numerous geophysical surveys as an integral part of exploration throughout its tenure on the Bornite property.

Various reports, notes, figures, and data files stored in Kennecott’s Salt Lake City exploration office indicated that geophysical work included, but was not limited to, the following:

● Airborne magnetic and EM surveys (fixed-wing INPUT) (1950s)

● Gravity, single point (“SP”), audio-frequency magnetotelluric (“AMT”), EM, borehole and surface IP/resistivity surveys (1960s)

● Gravity, airborne magnetic, and controlled-source audio-frequency (“CSAMT”) surveys (1990s)

● Gravity, single point, audio-frequency magnetotelluric, EM, borehole and surface induced polarization (“IP”)/resistivity surveys (1960s)

● Gravity, airborne magnetic, and controlled-source audio-frequency surveys (1990s).

We have minimal information or documentation associated with these geophysical surveys conducted prior to the 1990s.

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Numerous 2 milligal to > 6 milligal anomalies occur under cover in the Ambler Lowlands and near the Aurora Mountain and Pardner Hill occurrences.

In addition to the

geophysical surveys conducted by Kennecott, the ADNR completed an aeromagnetic survey of portions of the Ambler mining district in 1974-1975.

In addition to the geophysical surveys conducted by Kennecott, the ADNR completed an aeromagnetic survey of portions of the Ambler mining district in 1974-1975.

Several studies have been undertaken reviewing the geology and geochemistry of the Bornite deposit.

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1 Ore Body” in a 1986 paper in Economic Geology.

In addition to the historical work, Ty Connor at the Colorado School of Mines recently completed a Master’s thesis which reported on the timing of alteration and mineralization at the Bornite deposit.

to the historical work, Ty Connor at the Colorado School of Mines recently completed a Master’s thesis which reported on the timing of alteration and mineralization at the Bornite deposit.

Kennecott conducted two technical reviews of the groundwater conditions and a summary of the findings related to the flooding of the exploration shaft.

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Samples targeted high-grade (> 10%) copper mineralization from the Upper Reef at the Ruby Zone.

Bornite Project - Geological Setting and Mineralization

Geological Setting, Mineralization and Deposit Types

The Bornite Project is located within the Arctic Alaska Terrane, a sequence of mostly Paleozoic continental margin rocks that make up the Brooks Range and North Slope of Alaska.

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The geology of the Bornite resource area is composed of alternating inervals of carbonate rocks (limestone and dolostone) and calcareous phyllite.

Limestone transitions laterally into dolostone near zones of mineralization and is considered to be hydrothermally altered.

Limestone transitions laterally into dolostone near zones of mineralization and is considered hydrothermally altered.

Spatial relationships and petrographic work suggest that dolomitization is genetically related to early stages of the copper mineralizing system;

however, recent re-logging has questioned this view.

In 2015, Trilogy made an effort to improve the understanding of the distribution and nature of the various lithologic units and their context within a sedimentary depositional model.

A new interpreation, based on lithogeochemical signatures of the various units along with their historical visual logging, concluded that stacked debris flows composed of basal non-argillaceous channelized breccias were overlain by upward fining upward sequence of increasingly argillaceous-rich breccias capped by high calcium (Ca) phyllites, confined laterally in channels between either massive or thin-bedded platform carbonates.

Two mineralized stacked debrite sequences were named the Lower and Upper Reefs.

In 2015, Trilogy tried to improve the understanding of the distribution and nature of the various lithologic units and their context within a sedimentary depositional model.

A new interpretation, based on lithogeochemical signatures of the various units along with their historical visual logging, concluded that stacked debris flows composed of basal non-argillaceous channelized breccias were overlain by upward fining upward sequence of increasingly argillaceous breccias capped by high calcium (Ca) phyllites, confined laterally in channels between either massive or thin-bedded platform carbonates.

Two mineralized stacked debrite successions were named the Lower and Upper Reefs.

The Upper Reef grades upward into argillaceous limestones instead of discrete high Ca phyllites indicating a waning of debris supply.

Based on this interpretation, a series of individual debrites were identified and modeled.

In contrast to the locally derived high-Ca phyllites of the debrite- dominated Bornite carbonate sequence, low calcium (Ca) phyllites are abundant in the allochthonous Anirak schist (quartz phyllite) and the The Beaver Creek phyllite that underlie and overlie the Bornite carbonate sequence, respectively.

In addition to depositional lithostratigraphy, a crosscutting mineralized breccia called the “P-Breccia” has been identified in and around the South Reef deposit.

In contrast to the locally derived high-Ca phyllites of the debrite-dominated Bornite carbonate sequence, low calcium (Ca) phyllites are abundant in the allochthonous Anirak schist (quartz phyllite) and the Beaver Creek phyllite that underlie and overlie the Bornite carbonate sequence, respectively.

In addition to depositional lithostratigraphy, a cross-cutting mineralized breccia called the P-Breccia has been identified in and around the South Reef deposit.

Though poorly defined due to lack of drilling in the area, the P-Breccia zone—which contains excellent copper grade—lies at the apex of the Iron Mountain discontinuity.

Although clearly post-deformational, it remains unclear whether the P-Breccia is a post-depositional structural, hydrothermal or solution-collapse breccia.

A short lithostratigraphic project carried out during the 2021 field season updated the depositional environment of the Bornite succession;

A short lithostratigraphic project carried out during the 2021 field season updated the interpretation of the depositional environment of the Bornite succession;

this resulted in significant differences when compared to the previously summarized interpretations.

The Bornite succession is now understood to be a carbonate slope deposit characterized by (a) lime mudstone, exported to the slope from a contemporaneous shallow-marine carbonate factory, variably mixed with and interlayered with (b) background argillaceous sediment that is locally carbonaceous.

Superimposed on these calcite-dominated “normal”

slope strata are locally impressive thicknesses of dolomudstone-clast conglomerate (formerly “breccia”).

Superimposed on these calcite-dominated normal slope strata are locally impressive thicknesses of dolomudstone-clast conglomerate (formerly breccia).

Slope limestone and siltstone-mudstone were originally centimetrically to decimetrically bedded, but are commonly ductilely deformed, producing the variably limey phyllites that exhibit sub-mm scale foliation.

In contrast, the dolostone-clast conglomerates and individual dolomudstone clasts responded brittlely to Brookian stress and show no significant shearing or plastic deformation.

In contrast, the dolostone-clast conglomerates and individual dolomudstone clasts responded brittlely to Brookian stress and show no

significant shearing or plastic deformation.

Instead, plastic deformation is largely restricted to the various phyllitic layers around the peripheries of the dolostone bodies.

Structural fabrics observed on the property include rare bedding and two distinct metamorphic foliations.

Structural fabrics observed on the Bornite property include rare bedding and two distinct metamorphic foliations.

Bedding (S0) can be measured only rarely where phyllite and carbonate are interbedded and it is unclear to what extent it is transposed.

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It is easily measured in phyllites and is commonly reflected by colour banding and/or stylolamination (flaggy habit in outcrop) of the carbonates.

Core logging shows that S1 is folded gently on the 10 m scale and locally tightly folded at the decimetre scale.

S2 axial planar cleavage is locally developed in decimetre scale folds of S1.

Both S1 and S2 foliations are considered to be Jurassic in age.

Some limestone outcrops, in particular the “TBLS” on Aurora Mountain and the marbles at the base of Coral Hill, also exhibit a stretching lineation.

Some limestone outcrops, in particular the thin bedded limestone on Aurora Mountain and the marbles at the base of Coral Hill, also exhibit a stretching lineation.

Core-logging shows that S1 is folded gently on a 10 m scale and locally tightly folded at the decimetre scale forming a common S2 axial planar cleavage.

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S1 and S3 foliations are thought to be Jura-Cretaceous in age.

Structural mapping in 2021 recognized a well-developed stretching lineation (i.e., L-tectonite) in the carbonate-phyllite rocks, typically oriented shallowly towards the NNE or SSW.

“Top” direction indicate movement to the S or SSW along the vector of the stretching lineation.

Structural mapping in 2021 recognized a well-developed stretching lineation (i.e., L-tectonite) in the carbonate-phyllite rocks, typically oriented shallowly towards the north-northeast or south-southwest.

Top directions indicate movement to the south or south-southwest along the vector of the stretching lineation.

Moreover, new mapping indicates that stiff Bornite rocks, in particular metric to hectametric dolostone bodies, have been boudinaged into 3D ellipsoids.

Slip is accommodated by phyllites., Additional mapping is required to determine whether such a tectonic style plays a role in the distribution of copper mineralization.

Slip is accommodated by phyllites.

Interpretation of this mapping should be performed to determine whether such a tectonic style plays a role in the distribution of copper mineralization.

Owing to their greater rigidity, dolostone bodies of secondary dolostone manifest strain differently:

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The Upper Reef hosts relatively high-grade mineral resources to the north in the Ruby Zone.

The Upper Reef appears to lie at an important NE-trending facies transition to the NW of the main drilled area and appears to be at least partially thrust over the Lower Reef stratigraphy to the southeast.

The Upper Reef appears to lie at an important northeast-trending facies transition to the northwest of the main drilled area and appears to be at least partially thrust over the Lower Reef stratigraphy to the southeast.

Drill results from 2013 show dolomitization and copper mineralization in the Upper and Lower Reefs coalescing into a single unit along the northern limits of current exploration.

The NE- trending Ruby Zone and South Reef areas also coalesce into a roughly 1,000 m wide zone of >200 m thick dolomite containing significant copper mineralization dipping north at roughly 5-10 degrees.

The northeast- trending Ruby Zone and South Reef areas also coalesce into a roughly 1,000 m wide zone of >200 m thick dolomite containing significant copper mineralization dipping north at roughly 5 to 10°.

The 2017 drill results show that the mineralized dolomite interval continues for at least another 700m down-dip to the northeast from mineralization in the Upper and Lower Reefs.

Bornite Project – Mineralization

Copper mineralization at Bornite comprises chalcopyrite, bornite, and chalcocite distributed in stacked, roughly stratiform zones exploiting favourable lithologies (conglomerate/berccia) within the Bornite sequence.

Mineralization occurs, in order of increasing grade, as disseminations, irregular and discontinuous stringer-style veining, breccia matrix replacement, and stratabound massive sulphides.

Mineralization

Copper mineralization at Bornite comprises chalcopyrite, bornite, and chalcocite distributed in stacked, stratabound zones exploiting favourable lithologies (conglomerate/berccia) within the Bornite sequence.

Mineralization occurs, in order of increasing grade, as disseminations, irregular and discontinuous stringer-style veining, breccia matrix

replacement, and stratabound massive sulphides.

The distribution of copper minerals is zoned around the bottom-centre of each zone of mineralization, with bornite-chalcocite-chalcopyrite at the core progressing outward to a fringe of chalcopyrite-pyrite.

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Cobalt often occurs with high-grade copper as carrollite (Co2CuS4) and as cobaltiferous rims on recrystallized pyrite grains.

Preliminary geometallurgical work by Trilogy showed that cobalt occurs primarily as cobaltiferious pyrite (approximately 80% of he contained cobalt) and within other cobalt minerals such as carrollite, and cobaltite (CoAsS).

Some appreciable silver values are also found at Bornite, particularly in association with bornite-rich mineralization in the South Reef area and Ruby Zones.

Bornite Project – Exploration

Exploration in and around the Bornite Project by Kennecott from 1957 to 1998 is summarized above.

Preliminary geometallurgical work by Trilogy showed that cobalt occurs primarily as cobaltiferious pyrite (approximately 80% of the contained cobalt) and within other cobalt minerals such as carrollite, and cobaltite (CoAsS).

Some appreciable silver values are also found at Bornite, particularly in association with bornite-rich mineralization in the South Reef area and Ruby Zone.

Copper-cobalt-silver-zinc mineralization at Bornite forms disseminations, veins, and massive sulphides in stacked, semi-stratabound bodies closely associated with secondary hydrothermal dolomitization.

The cross-cutting nature of the mineralization along with the presence of early pyrite and sphalerite in sedimentary breccia clasts suggest an epigenetic origin that was temporally very close after the deposition of host strata.

Re-Os dating supports this interpretation.

Data are limited regarding the sources and nature of the copper-rich fluids that formed the Bornite deposit, but they suggest that mineralizing fluids may have formed from the interaction of saline basin fluids with mafic volcanic rocks in the area.

An early epigenetic carbonate-hosted Cu-Co model is applicable for exploration targeting in the project area.

Exploration work completed by Kennecott is summarized above.

In addition to the extensive drilling completed during the more than 40-year tenure of Kennecott in the district, Kennecott completed widespread surface geochemical sampling, regional and property scale mapping, and numerous geophysical surveys employing a wide variety of techniques.

The majority of this data has been acquired by us and forms the basis for renewed exploration that targets Bornite-style mineralization in the Bornite carbonate sequence.

NovaGold as the precursor company to us began to actively pursue an agreement to explore the Bornite Project with NANA in 2005 resulting in an initial airborne geophysical survey in 2006.

Negotiations on the consolidation and exploration of the entire Ambler district continued for the next several years culminating in the NANA Agreement in October 2011.

With the NANA Agreement approaching completion, NovaGold initiated work in 2010 to begin to characterize the exploration potential and depositional controls by re-logging and re-analyzing select drill holes with a Niton portable x-ray fluorescence (“XRF”) to determine geochemical variability.

In 2011, NovaGold began an initial drill program to verify the historical database and exploration potential and conducted additional geophysical surveys to provide better targeting tools for continued exploration in the district.

In 2012, we expanded the IP geophysical coverage completing a major district-wide survey that targeted the prospective Bornite Carbonate sequence.

Subsequent resource drilling between 2011 and 2013 based on the exploration targeting is discussed in the “ Bornite Project - Mineral Resource Estimates” section below.

Most of this data has been acquired by us and forms the basis for renewed exploration that targets Bornite-style mineralization in the Bornite carbonate sequence.

2006 NOVAGOLD

In 2006, NOVAGOLD contracted Fugro Airborne Surveys to complete a detailed helicopter DIGHEM (frequency-domain EM), magnetic and radiometric survey of the Cosmos Hills.

The survey covered a rectangular block approximately 18 km by 49 km which totaled 2,852-line km.

The survey covered a rectangular block approximately 18 km by 49 km which totalled 2,852-line km.

The survey was flown at 300 m line spacing with a line direction of N20E.

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In 2010, in anticipation of completing the NANA Agreement, NANA granted NOVAGOLD permission to begin low level exploration at Bornite.

this consisted of re-logging and re-analyzing select drill holes using a Niton portable XRF.

In addition to the 2010 re-logging effort, NovaGold contracted a consulting geophysicist, Lou O'Connor, to compile a unified airborne magnetic map for the Ambler mining district from Kennecott, Alaska DNR, and NovaGold airborne geophysical surveys.

This consisted of re-logging and re-analyzing select drill holes using a NitonTM portable XRF.

In addition to the 2010 re-logging effort, NOVAGOLD contracted a consulting geophysicist to compile a unified airborne magnetic map for the Ambler mining district from Kennecott, Alaska DNR, and NOVAGOLD airborne geophysical surveys.

2011 NOVAGOLD

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NSAMT data were acquired along two lines totaling 5.15 line-km;

one line is oriented generally north-south through the centre of the survey area and the other being the southernmost east-west line in the survey area.

one line is oriented generally north-south through the centre of the survey area and the other line is the southernmost east-west line in the survey area.

CRIP data were acquired on five lines:

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2012 NovaCopper

In light of the success of the 2011 geophysical program, we contracted Zonge to conduct a major district-wide dipole/dipole IP survey, a down-hole IP radial array survey in the South Reef area, and an extensive physical property characterization study of the various lithologies to better interpret the existing historical geophysical data.

Considering the success of the 2011 geophysical program, we contracted Zonge to conduct a major district-wide dipole/dipole IP survey, a down-hole IP radial array survey in the South Reef area, and an extensive physical property characterization study of the various lithologies to better interpret the existing historical geophysical data.

Zonge completed 48 line-km of 200 m dipole/dipole IP during 2012, infilling and expanding on the 2011 survey, and stretching across the most prospective part of the outcropping permissive Bornite carbonate sequence.

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As a follow-up to the 2013 field program, a deep penetrating soil and vegetation geochemical survey was extended north of the deposit into the Ambler Lowlands.

Trilogy geologists completed a lithogeochemical desktop study and a comprehensive update to the 3D lithology model.

Trilogy geologists completed a litho-geochemical desktop study and a comprehensive update to the 3D lithology model.

The 2017 field program extended the 2013 and 2015 deep penetrating geochemical (“DPG”) soil survey another 500m to the northeast.

The 2013 soil line was extended 1,500m to the east to test over the covered projection of the Two Grey Hills carbonate section.

The 3D lithology model was updated to incorporate the 2017 drill program results, which are described in Section 10,

The 3D lithology model was updated to incorporate the 2017 drill program results.

Trilogy also completed a close spaced ground gravity survey over a 2 km by 4km grid with 100 m station spacing over the resource area and extending northeast over the 2017 drill target area.

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facies changes within the dolostones;

detection of massive sulphide mineralization;

and direct detection of massive sulphide mineralization;

and any alteration associated with mineralization.

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Using geology to constrain the model, three areas of anomalously higher gravity were defined.

Unfortunately, none of these intervals were properly tested in 2017 with two holes, those at Anomaly “B” and “C”, ending above the gravity anomalies.

Unfortunately, none of these intervals were properly tested in 2017 with two holes, those

at Anomaly “B” and “C”, ending above the gravity anomalies.

Two of the three identified anomalies from the 2017 inversion modelling changed in size and relative orientation with the updated geologic model.

Anomaly B, which stretches to the northwest from hole RC17-0238 decreased in extent, likely the result of a thicker-than-previously-modelled Upper Reef carbonate section in RC17-0238.

Anomaly C is much broader and less defined, indicating that it may be the result of underestimating the SG in the lithology model (incorrect interpretation).

Anomaly C is much broader and less defined, indicating that it may be the result of underestimating the SG in the lithology model.

This anomaly remains untested with the failures of drill holes RC17-0242 and RC18-0245 and should be redrilled in the future.

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The northeast extent of this anomaly is still considered a viable exploration target.

South32 completed a QA/QC review, lithogeochemical-alteration assessment, and a vectoring/targeting exercise on downhole geochemical data on the Bornite deposit.

South32 completed a QAQC review, lithogeochemical-alteration assessment, and a vectoring/targeting exercise on downhole geochemical data on the Bornite deposit.

The purpose of this exercise was to use downhole analyses to assess the geology, alteration, and mineralogy of the deposit to vector towards mineralization.

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2020 Ambler Metals

Trilogy Metals and South32 decided not to proceed with the 2020 exploration program due to the coronavirus (COVID-19) pandemic.

Trilogy Metals and South32 decided not to proceed with the 2020 exploration program due to the coronavirus pandemic.

The Bornite geologic model was updated using the 2019 drill program results.

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During the 2021 field season, the understanding of the Bornite deposit and the potential for additional deposits was advanced with a new interpretation of the carbonate sequence at Bornite and an improved structural understanding of the Cosmos Hills.

Elizabeth Turner, specialist in carbonate geology from Laurentian University, re-logged two fences/sections of drill holes, E-W and N-S, through the Bornite deposit, to identify, distinguish and correlate lithofacies within the Bornite sequence and to identify and distinguish different types/ages of dolomitization, including, if possible, their relation to mineralization.

A specialist in carbonate geology from Laurentian University re-logged two fences/sections of drill holes, east-west and north-south, through the Bornite deposit, to identify, distinguish and correlate lithofacies within

the Bornite sequence and to identify and distinguish different types/ages of dolomitization, including, if possible, their relation to mineralization.

Turner describes the Bornite sequence as a tectonized normal carbonate slope deposit that consists of calcitic material (lime mud) derived from a nearby shallow-marine source area, interlayered with variable amounts of background terrigenous mud (argillaceous proportion increases with distance downslope).

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The fault scarp(s) that shed dolostone clasts were probably part of a seafloor paleotopographic system that developed during regional extension and associated fault-mediated syn-depositional subsidence.

Also initiated in 2021 was structural mapping around Pardner Hill and Aurora Mountain by Dr.

Also initiated in 2021 was structural mapping around Pardner Hill and Aurora Mountain.

Initial results indicate:

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(4) the fault contact with the overlying Beaver Creek phyllite is likely a low-angle normal fault that cuts out of the Bornite deposit to the southeast where Beaver Creek is in structural contact with Anirak schist.

Bornite Project – Drilling

Two diamond drill holes targeting the Bornite copper-hosting carbonate sequence in the Cosmos Hills and Ambler Lowlands were completed during the 2021 field season.

Hole ALL21-001 targeted the northeast projection of the Bornite carbonate sequence under cover in the Ambler Lowlands about 7 km east-northeast of Bornite.

The second hole, hole RC21-0267 was located at West Bornite, along the Coxcomb Ridge  Pardner Hill saddle, 3.5 km west of the Bornite deposit.

Hole ALL21-001 intercepted alternating units of limestone clastic breccia, dolostone clastic breccia, limestone and dolostone with textures similar to the Beaver Creek carbonates;

alternating intervals of argillaceous phyllite, argillaceous limey phyllite, argillaceous phyllitic limestone, and argillaceous limestone clastic breccias.

The phyllitic units host trace pyrite mineralization and have geochemical signatures that are similar to Beaver Creek phyllites.

Unfortunately, the hole was lost at 335 m without drilling through the carbonate stratigraphy.

Hole RC21-0267 tested the down-dip projection of weakly mineralized dolomitic breccia mapped in the saddle between Coxcomb Ridge and Pardner Hill.

The hole intersected argillaceous phyllite (probable Beaver Creek) followed by Bornite sequence:

alternating tan phyllitic limestone, tan limey phyllite, argillaceous/carbonaceous phyllitic limestone, limestone clastic breccia, limestone, and argillaceous limestone clastic breccias and dolostone clastic breccia.

Trace to locally 1% chalcopyrite, with lesser amounts of sphalerite, and tennantite/tetrahedrite occur through-out a 180 m thickness of dolostone clastic breccia, mostly as disseminations within the breccia matrix and in this carbonate veins.

Within this zone a 54.9 m thick interval averages 0.165% Cu starting from 196.5 m.

RC21-0267 ended in a quartz phyllite fault zone at 435 m.

Ambler Metals (2022)

During the 2022 field season, structural mapping around Pardner Hill and Aurora Mountain carried out in 2021 was extended to the south to Cosmos Mountain and to the east to Inerevuk Mountain.

In addition, two holes were drilled,

hole RC22-0268 at Bornite West to follow up the mineralized interval encountered during the 2021 drilling, and the other at Pardner Hill, hole PH22-0180 to test the down-dip potential of the historical Pardner Hill resource to the south.

The results of these two holes are being compiled and interpreted.

From 1957 to 2019, a total of 273 holes targeted the Bornite deposit during 24 different campaigns;

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these were distances considered too far to support the estimation of mineral resources at that time.

From 1957 to 1976, Kennecott used drilling contractor Sprague and Henwood, a Pennsylvania-based drilling company.

Kennecott’s 1997 program (three drill holes) was completed by Tonto Drilling Services, Inc.

(a NANA-Dynatec company).

The 2011 through to 2013 NovaGold/Trilogy Metals programs used Boart Longyear Company as the drill contractor.

The 2017 program used Tuuq drilling, a NANA company, who sub-contracted Major Drilling.

The 2018 program used both Major and Tuuq as the primary drill contactors and the 2019 program used Major as the primary contractor.

In the initial years of drilling at Bornite, Kennecott relied on AX diameter core (1.1875 in or 30.2 mm diameter), but, as drilling migrated towards deeper targets, a change to BX diameter core (1.625 in or 41.3 mm diameter) was implemented to help limit deviation.

From 1966 to 1967, drilling activity at Bornite moved underground and EX diameter core (0.845 in or 21.5 mm diameter) was implemented to define the Ruby Upper Reef zone “No.1 Ore Body”.

In the summer of 2018, Trilogy Metals conducted a drilling program that included the completion of 12 holes that infilled gaps in previous drilling in the northern, down-dip part of the deposit as well as in the central area between the Ruby Zone and South Reef area.

Three additional holes were collared but were abandoned due to drilling problems.

In the summer of 2019, Trilogy Metals completed another drilling program comprising eight holes that tested the continuity of the mineralization within the Bornite deposit and two holes that tested exploration targets located about 1 km south and southeast of the deposit.

Between 2012 and 2014, Trilogy Metals geologists re-logged and re-sampled legacy drill holes in the Ruby Zone and South Reef area which were previously drilled and only selectively sampled by Kennecott.

These assays were used in the estimation of the current mineral resource, except where duplicates of Kennecott samples were collected.

In the case of duplicates, the original assay information was given priority in the mineral resource database.

In the initial years of drilling at Bornite, Kennecott relied on AX diameter core (30.2 mm diameter), but, as drilling migrated towards deeper targets, a change to BX diameter core (41.3 mm diameter) was implemented to help limit deviation.

From 1966 to 1967, drilling activity at Bornite moved underground and EX diameter core (21.5 mm diameter) was implemented to define the Ruby Zone Upper Reef “No.1 Ore Body”.

In 1968, drilling activity moved back to the surface and from 1968 to 1972, BX diameter core was most commonly drilled.

In later years, core size increased to NX (2.125 in or 54.0 mm diameter) and finally, in 2011, core size increased to NQ (1.874 in or 47.6 mm diameter) and HQ (2.5 in or 63.5 mm diameter).

Over the years, progressively larger diameter drill rods have been used in an effort to minimize drill hole deviation.

There is only limited information with respect to the specific drill core handling procedures used by Kennecott during its tenure at the Bornite deposit.

All of the drill data collected during the Kennecott drilling programs (1958 to 1997) were logged on paper drill logs, and copies were stored in the Kennecott office in Salt Lake City, Utah.

Electronic, scanned copies of the paper logs, in PDF format, are held by Trilogy.

Drill core was sawed or split in half with a splitter, half was submitted to various assay labs and the remainder was stored in the Kennecott core storage facility at the Bornite deposit.

In later years, core size increased to NX (54.0 mm diameter) and finally, in 2011, core size increased to NQ (47.6 mm diameter) and HQ (63.5 mm diameter).

Over the years, progressively larger diameter drill rods have been used in an effort to minimize drill hole deviations.

There is limited information with respect to the specific drill core handling procedures used by BCMC/Kennecott.

All drill data collected during 1957 to 1997 were logged on paper drill logs with copies were stored in the Kennecott office in Salt Lake City, Utah.

Electronic, scanned copies of the paper logs are held by Trilogy and stored in the Fairbanks field office.

Drill core was sawed or split in half with a splitter, half was submitted to various assay labratories and the remainder was stored in the Kennecott/BCMC core storage facility at the Bornite deposit.

In 1995, Kennecott converted the drill assay data, geologic core logs and the down-hole collar survey data into an electronic format.

In 2009, NOVAGOLD geologists verified the geologic data from the original paper logs against the Kennecott electronic format and then merged the data into a MicrosoftTM SQL database.

Sampling of drill core by Kennecott and BCMC focused primarily on the moderate to high grade mineralized zones.

Sampling of drill core by Kennecott/BCMC focused primarily on the moderate-to-high grade mineralized zones.

Intervals of visible sulphide mineralization containing roughly >0.5% to 1% Cu were selected for analysis by Union Assay Office Inc.

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Throughout our tenure at Bornite, the following core handling procedures have been implemented (including programs conducted by NOVAGOLD and NovaCopper).

Core is slung by helicopter, or transported by truck or ATV, from the drill rig to the core-logging facility.

Upon delivery, geologists and geotechnicians open and inspect the core boxes for any irregularities.

Core is slung by helicopter or transported by truck or all-terrain vehicle from the drill rig to the core-logging facility.

Upon delivery, geologists and geotechnicians open and inspect the core

boxes for any irregularities.

They first mark the location of each drilling block on the core box, and then convert footages on the blocks into metric equivalents.

Geotechnicians or geologists measure the intervals (or “from/to”) for each box of core and include this information, together with the drill hole ID and box number, on a metal tag stapled to the end of each box.

Geotechnicians then measure the core to calculate percent recovery and rock quality designation (“RQD”).

Geo-technicians or geologists measure the intervals (or from/to) for each box of core and include this information, together with the drill hole ID and box number, on a metal tag stapled to the end of each box.

Geo-technicians then measure the core to calculate percent recovery and rock quality designation (“RQD”).

RQD is the sum of the total length of all pieces of core in a run over 12 cm.

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Core is then logged with lithology and visual alteration features captured on observed interval breaks.

Mineralization data, including sulphide species and abundance (recorded as percent), and gangue and vein mineralogy are collected for each sample interval with an average interval of approximately 2 m.

Mineralization data, including sulphide species (recorded as percent), sulphide type (recorded as a relative amount) and gangue and vein mineralogy are collected for each sample interval with an average interval of approximately 2 m.

Structural data is collected as point data.

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Entire holes were re-logged using Trilogy protocols discussed above.

Samples were submitted either as half-core, where previously sampled,

or whole core where un-sampled (to ensure that a sufficient volume of material was provided for analysis).

Samples were submitted either as half-core, where previously sampled, or whole core where un-sampled (to ensure that a sufficient volume of material was provided for analysis).

Sample intervals were matched to historical intervals whenever possible or selected to reflect Trilogy sampling procedures described above.

The objectives of the re-assay/re-logging program were threefold:

1) to implement a QA/QC program on intervals previously sampled by Kennecott in order to confirm the validity of its results;

1) to implement a QAQC program on intervals previously sampled by Kennecott in order to confirm the validity of its results;

2) to identify additional lower grade (0.2%-0.5% Cu), which was not previously sampled;

and 3) to provide additional multi-element ICP data to assist in the geologic interpretation of the deposit.

Bornite Project - Sample Preparation, Analyses and Security

Sample preparation, analytical lab accreditation and security measures taken during historical Kennecott and BCMC programs are unknown to us;

however, we are not aware of any reason to suspect that any of these samples have been tampered with.

The 2011 to 2013 and 2017 samples were either in the custody of NovaGold or Trilogy personnel or the assay laboratories at all times, and the chain of custody of the samples is well documented.

Once drill core was sawed in half, one half was retained for future reference and the other half was sent to ALS Minerals (formerly ALS Chemex) in Vancouver, BC for analyses.

Preliminary geotechnical data was collected from drill core such as RQD and limited hydrogeology data has been obtained which is sufficient to support early-stage resource estimation.

The Wood QP is not aware of any drilling, sampling or recovery factors that could materially impact the accuracy and reliability of the copper results supporting the mineral resource estimate.

Sampling, Analysis and Data Verification

There is limited documentation available describing the sample preparation, security, and analysis of drill core samples collected between 1957 and 1997.

These assumptions are based on the old assay certificates and some sample ledgers with mixed in QAQC check assays.

Gold and silver were likely analyzed by fire assay off site.

Between 2012 and 2014, Trilogy Metals completed a re-assay and re-sampling program of the historical drill holes.

As a result, 67% of the historical hole assay values are now supported by a current and documented QAQC program

The drill core sampling procedures are described above.

After the drill core was sawed in half, one half was retained for future reference and the other half was sent to ALS Minerals (formerly ALS Chemex) in Vancouver, British Columbia for analyses.

Core samples were shipped from the Bornite camp when backhaul capacity was available on the chartered aircraft;

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Rice bags were secured with a pre-numbered plastic security tie, assembled into loads for transport by chartered flights on a commercial airline to Fairbanks, Alaska, and delivered directly to the ALS Minerals preparation facility by a contracted expeditor.

Core samples were also inserted into these shipments at the rate of one standard, one blank and one duplicate per 17 core samples.

Samples were logged into a tracking system on arrival at ALS Minerals, and weighed.

Control samples were also inserted into these shipments at the rate of one standard, one blank and one duplicate per 17 core samples.

Samples were logged into a tracking system on arrival

at ALS Minerals and weighed.

Samples were then crushed, dried, and a 250 g split was pulverized to greater than 85% passing 75 μm.

Copper and cobalt data were derived using an additional 48-element suite assayed by inductively coupled plasma-mass (ICP-MS) and atomic emission spectroscopy (ICP-AES) methodologies, following a four-acid digestion.

Security measures taken during historical Kennecott and BCMC programs are not known to Trilogy Metals;

however, Trilogy Metals is not aware of any reason to suspect that any of these samples have been tampered with.

The 2011 to 2019 samples were either in the custody of NOVAGOLD or Trilogy Metals personnel, or the assay laboratories at all times and the chain of custody of the samples is well documented.

Copper and cobalt data were derived using a 48-element suite assayed by inductively coupled plasma-mass spectrometry (ICP-MS) and atomic emission spectroscopy (ICP-AES) methodologies, following a four-acid digestion.

The lower detection limits for copper and cobalt are 0.2ppm and 0.1 ppm, respectively.

The upper limits were 10,000ppm.

Over limit (>1.0%) copper and cobalt analyses were completed by atomic absorption (AA), following a four-acid digestion.

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Trilogy has no relationship with any of the primary or check assay labs used on the Bornite Project.

In 2012, 2013, 2014, and 2017 through to 2019, Trilogy Metals staff performed continuous validation of the drill data during the logging process and after the field program was complete (West, 2013;

Morris, 2014).

Trilogy Metals also retained independent consultant Caroline Vallat, P.Geo.

of GeoSpark Consulting Inc.

(GeoSpark) to import digital drill data to the master database and conduct QA/QC checks upon import;

conduct a QA/QC review of paired historical assays and Trilogy Metals 2012, 2013 and 2014 re-assays;

In 2012, 2013, 2014, and 2017 through to 2019, Trilogy Metals staff performed continuous validation of the drill data during the logging process and after the field program was complete.

Trilogy Metals also retained independent consultant GeoSpark Consulting Inc.

(“GeoSpark”) to import digital drill data to the master database and conduct QAQC checks upon import;

conduct a QAQC review of paired historical assays and Trilogy Metals 2012, 2013 and 2014 re-assays;

monitor an independent check assay program for the 2012, 2013 and 2014 campaigns;

and generate a QA/QC report for each of the drilling campaigns conducted in 2012, 2013, 2014, 2017, 2018 and 2019, including a 2017 review of the cobalt data.

Bornite Project - Mineral Resource Estimates

We have filed several previous NI 43-101 Technical Reports on the Bornite Project dated March 18, 2014, February 5, 2013, July 18, 2012, April 19, 2016 and July 20, 2018.

The effective date of this resource is December 31, 2021.

These discussions of underground and surface mining parameters are used solely for the purpose of testing the “reasonable prospects for economic extraction” and do not represent an attempt to estimate mineral reserves.

No mineral reserves were calculated for the Bornite Project.

These preliminary evaluations are used to assist with the preparation of a Mineral Resource Statement and to select appropriate reporting assumptions.

In the opinion of the QPs, the mineral resource evaluation reported herein is a sound representation of the copper and cobalt mineral resources for the Bornite Project at the current level of sampling.

The mineral resources were estimated in conformity with generally accepted CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (November 2019) and are reported in accordance with the Canadian Securities Administrators’ NI 43-101.

Mineral resources are not mineral reserves and do not have demonstrated economic viability.

There is no certainty that all or any part of the mineral resource will be converted into a mineral reserve.

The QPs audited the database used to estimate the Bornite Project mineral resource, and the QPs are of the opinion that the current drilling information is sufficiently reliable to confidently interpret the boundaries for copper and cobalt mineralization, and the assay data are sufficiently reliable to support mineral resource estimation.

In the summer of 2017, seven holes were drilled that tested the down-dip continuity of the northern part of the Bornite deposit.

These drill holes successfully intersected the mineralized target horizon, but the spacing of these holes was considered too far apart to support the generation of additional mineral resource estimates at that time, and as a result, the estimate of copper mineral resources remained unchanged in the June 2018 report from those reported in the previous technical report dated April 2016, and the June 2018 technical report included an estimate of cobalt mineral resources.

In the summer of 2018, Trilogy Metals conducted a drilling program on the Bornite deposit that included the completion of 12 holes that infilled gaps in previous drilling in the northern, down-dip part of the deposit as well as in the central area between the Ruby Zone and South Reef area.

In the summer of 2019, another drilling program was conducted on the Property comprising eight holes that tested the continuity of the mineralization within the Bornite deposit and two holes that tested exploration targets located about 1 km south and southeast of the deposit.

From 2011 through 2017, Trilogy Metals implemented an expanded program of re-sampling and re-assaying for an extended suite of elements, including cobalt.

Analyses of these additional elements were continued on samples collected during the 2018 and 2019 drilling programs, and once again, estimates of both copper and cobalt mineral resources are included in this report.

The Bornite Project database comprises a total of 273 diamond drill (core) holes totalling 106,406 m;

and generate a QAQC report for each of the drilling campaigns conducted in 2012, 2013, 2014, 2017, 2018 and 2019, including a 2017 review of the cobalt data.

QAQC monitoring by GeoSpark included assessment laboratory precision and accuracy using assay results from certified reference standards, blanks and duplicates inserted into the sample stream by Trilogy Metals personnel.

Wood’s geology and resource QP visited the Bornite property from August 29 to September 9, 2022.

During the visit, he reviewed drill core, measured drill collars with a handheld GPS unit, visited the historical trench area and viewed the deposit area by helicopter.

Wood’s geology and resource QP also measured five surface drill collars with a handheld GPS unit.

Out of five drill collars, one drill collar was off more than 40 m when compared to the collar database.

After further investigation, Ambler Metals identified seven drill collars in the database with planned coordinates, rather than the surveyed coordinates.

The QP has reviewed the metallurgical testwork reports, the analytical procedures, qualification of the laboratory, and presentation of the test results and considers all to have followed industry accepted practice.

Inspection of the historical drill hole data has revealed some issues with collar, down hole survey and assay results.

There are 183 historical holes representing 46% of the total drilled metres in the Bornite database 177 of which are in the Ruby Zone and six of which are in the South Reef area.

There are no significant concerns with the current collar survey records.Issues identified are manageable by the significant number of drilling and sampling that has been undertaken, and restriction of the resource classification to the Inferred category.

Wood’s geology and resource QP’s review of the database transcription error checks is considered adequate and provides sufficient support for the database to be judged as acceptably error free.

In the opinion of the QP the metallurgical data is adequate for the purposes used in the NI 43-101 Bornite Report and the S-K 1300 Bornite Report.

Mineral Processing and Metallurgical Testing

In 1961, Kennecott collected 32 coarse reject samples from five drill holes intersecting the Bornite deposit (RC-34, RC-54, RC-60, RC-61, and RC-65) to support preliminary metallurgical testwork conducted at KRC.

Samples targeted high-

grade (>10%) copper mineralization from the Ruby Zone Upper Reef (“No.

1 Ore Body”) (BCMC, 1961).

Locked-cycle laboratory testwork suggested that 97.64% of the copper was recoverable in a concentrate assaying 43.90% Cu.

Fine-grinding to 5% passing +200-mesh was required to obtain the liberation of copper minerals from pyrite necessary for such a high recovery.

Mineralogical testwork on the composite sample showed high-grade mineralization of the Ruby Zone Upper Reef is dominated by bornite with subordinate chalcocite and chalcopyrite.

A total of four metallurgical testwork programs have been conducted on materials from the Bornite Property under the supervision of Trilogy Metals.

In 2012, Trilogy Metals contracted ALS Metallurgy to conduct preliminary sample characterization and flotation testwork on mineralized samples collected from the South Reef area.

To the extent known, the samples are representative of the styles and types of mineralization present in the South Reef area.

The program at ALS Metallurgy was based on traditional grinding and flotation testwork aimed at producing saleable copper concentrates.

The testwork continued into 2013.

In 2017, Trilogy Metals contracted SGS to conduct detailed metallurgical testwork on a series of samples that represent the lower grade mineralization within the constraining pit shell.

This work followed the preliminary flowsheet and process options outlined in the 2012/2013 testwork.

This testwork continued into 2018.

Additional metallurgical testing was conducted by ALS Metallurgy in 2018/2019 and again in 2020/2021 which followed on from the process development of the earlier testwork.

Metallurgical testwork to date indicates that the Bornite mineralization can be treated using standard grinding and flotation methods to produce clean copper concentrates with good results being obtained.

Copper recoveries range

Mineral Resource Estimates

The mineral resources were prepared in accordance with CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (November 2019) and reported in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves (CIM Definitions Standards, 2014) and the standards and definitions of S-K 1300..

The QP considers the sample preparation, security and analytical procedures adequate to support an Inferred mineral resource.

The Bornite database comprises a total of 273 diamond drill (core) holes totalling 106,406 m;

203 holes target the Ruby Zone to the west and 58 holes target the South Reef area to the east.

The remaining 12 holes in the database are exploratory in nature and test for satellite mineralization proximal to the Bornite deposit or represent holes that encountered problems and were therefore abandoned.

The database contains a total of 39,740 samples that were analyzed for copper content and 34,177 that were analyzed for cobalt content.

A total of 242 drill holes are used in the mineral resource estimate contains a total of 39,740 samples that were analyzed for copper content and 34,177 that were analyzed for cobalt content.

Most holes drilled by Trilogy, plus a few select historical holes drilled by Kennecott, contain additional analyses for elements such as zinc, lead, gold, silver, and cobalt.

at this time, only copper and cobalt show any significant economic potential, and the others were excluded from the estimation of mineral resources.

During the 2012, 2013 and 2014 field seasons, Trilogy collected samples from drill hole intervals that Kennecott never sampled.

At this time, only copper has reasonable prospectus for eventual economic extraction.

During the 2012, 2013 and 2014 field seasons, Trilogy collected samples from drill hole intervals that were not previously sampled.

It is assumed that Kennecott did not sample these intervals because, visually, they did not exhibit the presence of high-grade copper mineralization (amenable to underground mining).

In previous mineral resource estimates, these un-sampled intervals were assigned a default grade of 0% Cu.

At this current stage, the majority of the core drilled by Kennecott has been sampled and analyzed for copper content.

At this current stage, the majority of the core drilled by Kennecott has been sampled and analyzed for copper content and are included in the database.

The sampling and assaying for cobalt is less extensive.

Where assay data are not available, these intervals are assigned a zero grade for copper (0% Cu) when the host rocks are phyllite, or they left as “missing” when the host rocks are carbonates.

No adjustments were made to intervals where cobalt grades are missing, and mineral resource estimates are estimated using the available sample data.

Where assay data are not available, these intervals are assigned a zero grade for cobalt (0% Co) when the host rocks are phyllite, or they are left blank when the host rocks are carbonates.

Individual sample intervals range from 3 cm to 39.58 m long and average 2.09 m.

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Specific gravity (“SG”) measurements were conducted on 7,476 samples in the database and range from a minimum of 2.12 to a maximum of 5.20 and average 2.89.

The distribution of SG data is considered sufficient to support block model estimation.

Drill core recovery was recorded for approximately one half of the drill holes at the Ruby Zone and in essentially all of the South Reef drill holes.

Overall, core recoveries are considered to be very good with an average of 86% for the Project.

Only 8% of samples have recoveries ≤ 50%, and approximately 85% of samples have core recoveries ≥ 75%.

There is no apparent correlation between copper grade and drill core recovery.

There were no adjustments or omissions to the mineral resource database in response to drill core recoveries.

Trilogy provided a topographic digital terrain surface derived from a 2010 PhotoSat 1 m resolution model.

Drill hole collar locations, surveyed using a differential GPS, correlate very well with the local, digital terrain (topographic) surface.

The distribution of SG data is considered sufficient to support resource estimation.

The geologic model interpreted for the Bornite deposit consists primarily of a series of inter-bedded carbonate and phyllitic rocks that dip gently to the north and overlay a quartz-phyllite footwall.

Copper and associated cobalt mineralization occurs primarily as massive, semi-massive, stringer, veinlet and disseminated accumulations of chalcopyrite, bornite and chalcocite in dolomitized portions of the sedimentary host rocks.

Cobalt minerals such as carrolite and cobaltiferous pyrite tend to be associated with the copper mineralization.

The geologic model comprises 18 individual phyllite domains and 16 separate carbonate domains plus a series of separate domains representing the hanging wall (Beaver Creek phyllite), the footwall (quartz-phyllite Anirak schist), and the overlying overburden.

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Approximately one half of the samples in the carbonate domains have copper grades above the lower grade threshold of 0.2% copper.

This limit roughly segregates areas of “mineralized” versus “unmineralized” (including cobalt) rocks and is still below the anticipated cut-off grade of the mineral resource, ensuring that sufficient internal dilution is retained in the mineral resource model.

There are also areas where the phyllite domains contain appreciable copper or cobalt grades (above the 0.2% copper threshold), but these tend to be rare and localized occurrences.

Indicator values are assigned to 2 m composites at the grade thresholds described here, and indicator variograms are produced.

This limit roughly segregates areas of mineralized versus unmineralized rocks and is still below the anticipated cut-off grade of the mineral resource, ensuring that sufficient internal dilution is retained in the mineral resource model.

There are also areas where the phyllite domains contain appreciable copper grades (above the 0.2% Cu threshold), but these tend to be rare and localized occurrences.

Indicator values are assigned to 2 m composites at the grade thresholds, and indicator variograms are produced.

Probability values are estimated in model blocks using ordinary kriging;

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The lower grade shell envelopes areas where there is a greater than 50% probability that the grade will exceed 0.2% Cu.

At this stage of project evaluation, copper is the main economic contributor at Bornite, and it can be assumed that cobalt will act as a secondary metal or byproduct.

Therefore, reasonable prospects for eventual economic extraction only address the copper content in the deposit, and the available cobalt is reported based on a copper cut-off grade threshold.

It is very rare that appreciable cobalt grades occur where there is no associated copper mineralization.

deposit comprises several zones of relatively continuous moderate- to high-grade copper mineralization that extends from surface to depths of more than 800 m below surface.

The deposit is potentially amenable to a combination of open pit and underground extraction methods.

The “reasonable prospects for eventual economic extraction” requirement was tested using a pit shell based on a series of technical and economic assumptions considered appropriate for a deposit of this type, scale and location.

A pit shell was generated in the area of the Ruby Zone that extends to a depth of approximately 500 m below surface and contains a total of 1.01 billion tonnes.

As stated previously, it is assumed that extraction from the Bornite deposit is based on the copper content in the rocks and that cobalt would be a secondary contributor to the potential economic viability of the deposit.

As a result, both copper and cobalt mineral resource estimates are defined based on a copper cut-off grade threshold.

Mineral resource estimates are reported based at two cut-off grades:

0.5% Cu for material that is amenable to open pit extraction and 1.5% Cu for mineral resources that occur below the pit shell.

The cut-off grade of mineral resources amenable to underground extraction is based on an underground mining cost of US$65/tonne.

Mineral resources below the open pit shell are separated into two separate areas to highlight that the underground mineral resources in the South Reef area are much thicker and higher grade than those present in the area of the Ruby Zone.

Based on the drilling information to date, the South Reef underground resource occurs in a relatively continuous zone, measuring approximately 1,100 m north-south by 400 m east-west, that dips at about -25 degrees to the north and is located between 400 m and 1,000 m below surface.

The true thickness of the underground mineral resource at South Reef is variable from 5 m to more than 40 m in some areas and averages about 15 m to 20 m thick.

The underground resources at the Ruby Zone tend to be lower grade, narrower and more patchy or discontinuous in nature, with average true thicknesses typically ranging from 5 m to 10 m in most areas.

Mineral resources located below the open pit shell exclude zones of mineralization that are above the base case cut-off grade of 1.5% Cu but are considered too small and/or isolated to be considered economically viable.

The resulting continuity of grade and thickness of mineralization included in the estimate of mineral resources below the pit shell exhibits reasonable prospects of eventual economic extraction using underground mining methods such as a combination of longhole stoping and cut-and-fill mining.

Bornite Project - Mineral Resource Statement

Mineral Resources are classified in accordance with the CIM Definition Standards for Mineral Resources and Mineral Reserves (May 2014).

Indicated Resource Estimate for the Bornite Project

See “Cautionary Note to United States Investors”.

This section uses the term “indicated resources”.

We advise United States investors that these terms are not recognized by the SEC.

United States investors are cautioned not to assume that estimates of indicated mineral resources are economically minable or will be upgraded into measured mineral resources.

See “ Risk Factors ” and “ Cautionary Note to United States Investors ”.

Estimate of Copper Mineral Resources for the Bornite Project - Indicated

At this stage of project evaluation, copper is the only economic contributor at Bornite.

There is potential for reasonable prospects of eventual economic extraction for cobalt with additional drill information and metallurgical testwork to establish the appropriate process options available to produce marketable pyrite-cobalt concentrate.

Currently there is insufficient information to identify reasonable process method for economic recovery of cobalt or a market for the pyrite-cobalt concentrate.

The Bornite deposit comprises several zones of relatively continuous moderate- to high-grade copper mineralization that extends from surface to depths of more than 800 m below surface.

The deposit is amenable to either open pit or underground mining methods.

Underground mining assumes a combination of longhole stoping and cut-and-fill methods with an average assumed mining cost $73.62/t mined.

Using these parameters an open pit marginal cut-off grade of 0.5% Cu and an underground break-even cut-off grade of 1.79% Cu were determined.

The underground mining shape is based on a 1.79% Cu grade shell and then a filter was applied to remove isolated blocks that are outside of the underground mining shape that would not meet reasonable prospects for eventual economic extraction.

A 20 m pillar was imposed between mining the pit shell and underground mining shapes.

The Wood QP considers industry consensus on a long-term price forecast on mineral reserves and cash flows of $3.50/lb Cu is reasonable.

It is in accordance with industry-accepted practice to use higher metal prices for the mineral resource

estimates than the pricing used for mineral reserves.

The copper price forecast of $3.50/lb was increased by approximately 15% to provide the mineral resource estimate copper price assumption of $4.05/lb.

Mineral Resources are classified in accordance with S-K 1300 and the CIM Definition Standards for Mineral Resources and Mineral Reserves (May 2014).

The Wood QP reviewed and performed validation checks on the mineral resource model and based on the results prepared a revised mineral resource statement that is summarized in Table 1.

The mineral resource estimates are based on a combination of open pit and underground mining methods and a copper price of $4.05/lb.

Mineral resources amenable to open pit methods are constrained within a pit shell above a marginal cut-off grade of 0.5% Cu and those amenable by underground methods are constrained within a grade shell defined by a breakeven cut-off grade of 1.79% Cu.

A portion of the in-pit mineral resource is well above the 1.79% Cu cut-off and would be amenable to underground mining methods providing flexibility on how to develop the deposit (Table 2).

Table 1 – Mineral Resources for the Bornite Deposit as of November 30, 2022

Average Grade

Contained Metal

These resource estimates have been prepared in accordance with NI 43-101 and the CIM Definition Standards.

See “Risk Factors” and “Cautionary Note to United States Investors.”

Mineral resources stated as contained within a pit shell developed using a metal price of US$3.50/lb Cu, mining costs of US$3/tonne, milling costs of US$11/tonne, G&A cost of US$5/tonne, 87% metallurgical recoveries and an average pit slope of 43 degrees.

Underground mining cost is US$65/tonne.

Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves.

Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and con-tained metal content.

Tonnage and grade measurements are in metric units.

Contained copper are reported as imperial pounds.

All amounts are stated in U.S.

dollars unless otherwise noted.

Mineral resources are reported on a 100% basis.

Following the formation of Ambler Metals, Trilogy and South32 each own 50% of the Bornite Project.

Inferred Resource Estimate for the Bornite Project

See “ Cautionary Note to United States Investors ”.

This section uses the term “inferred resources”.

We advise United States investors that these terms are not recognized by the SEC.

The estimation of inferred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources.

See “ Risk Factors ” and “ Cautionary Note to United States Investors ”.

Estimate of Copper Mineral Resources – Inferred

Total Inferred – 100%

Total Inferred – 50% Attributable Interest

The mineral resources are current as of November 30, 2022 and were prepared by a Wood QP.

Mineral resources are prepared in accordance with the definitions in S-K 1300 and CIM Definitions Standards (2014).

No mineral reserves have been estimated on the Bornite Property.

Mineral resources are constrained by:

an open pit shell at a cut-off grade of 0.5% Cu, with an average pit slope of 43 degrees;

and underground mining shapes with a cut-off grade of 1.79% Cu.

Trilogy Metals’ attributable interest is 50% of the tonnage and contained metal stated in the table.

Figures may not sum due to rounding.

The mineral resources are reported in place (point of reference).

Table 2 – Portions of South Reef Mineral Resource Amenable to Underground Mining

Average Grade

Contained Metal

Total Inferred

These resource estimates have been prepared in accordance with NI 43-101 and the CIM Definition Standards.

See “ Risk Factors ” and “ Cautionary Note to United States Investors .”

Underground mining cost is US$65/tonne.

Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves.

Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and con-tained metal content.

Tonnage and grade measurements are in metric units.

Contained copper are reported as imperial pounds.

All amounts are stated in U.S.

dollars unless otherwise noted.

Mineral resources are reported on a 100% basis.

Following the formation of Ambler Metals, Trilogy and South32 each own 50% of the Bornite Project.

It is reasonably expected that the majority of Inferred mineral resources could be upgraded to Indicated mineral resources with additional exploration.

Estimate of Cobalt Mineral Resources – Inferred

Total Inferred

Underground mining cost is US$65/tonne.

Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves.

It is reasonably expected that the majority of Inferred mineral resources could be upgraded to Indicated mineral resources with additional exploration.

Due to limited sample data, none of the cobalt mineral resource meets the confidence level for Indicated-class mineral resources.

All cobalt mineral resources are considered to be in the Inferred category.

Mineral resources are reported on a 100% basis.

Following the formation of Ambler Metals, Trilogy and South32 each own 50% of the Bornite Project.

There are no known factors related to environmental, permitting, legal, title, taxation, socio-economic, marketing, or political issues which could materially affect the mineral resource.

Bornite Project – Metallurgy

Metallurgical test work to date indicates that the Bornite Project can be treated using standard grinding and flotation methods to produce copper concentrates.

Initial testing indicates copper recoveries of approximately 87% resulting in concentrate grades of approximately 28% Cu with very low potential penalty elements.

Further metallurgical test work is warranted to test these assumptions.

Bornite Project – Environmental Considerations

The Bornite Project area includes NANA’s Bornite and ANCSA lands, the Ruby Creek drainage (a tributary of the Shungnak River), the Shungnak River drainage, and portions of the Ambler Lowlands.

Since 2008, baseline environmental data collection has occurred in the area including archaeology, aquatic life surveys, sediment sampling, wetlands mapping, surface water quality sampling, hydrology, meteorological monitoring, and subsistence.

Additional baseline environmental data in NANA’s Bornite and ANCSA lands, Ruby Creek drainage, Shungnak River drainage, portions of the Ambler Lowlands, and downstream receiving environments will be required to support future mine design, development of an EIS, permitting, construction and operations.

Bornite Project – Mining Operations

In-Pit South Reef 1

Outside-Pit South Reef 2

Total South Reef

(1) Subset of the mineral resource and is not additive to the in-pit mineral resource reported in Table 1

(2) Restatement of the mineral resources outside of the pit as reported in Table 1 and is not additive to Table 1

Some of the in-pit mineral resources are of sufficiently high grade to allow mining by underground mining methods which allows flexibility on how they could eventually be extracted.

Additional factors that could affect the mineral resource estimate include:

● Unrecognized complexity and other changes to the interpretation of the geological model and grade shell

● Changes to the mineral resource estimate methodology

● Adjustments to address the perceived high-grade bias in the higher-grade copper

● Unrecognized metallurgical variability

● Additional work may allow the inclusion of cobalt in future updates to the mineral resource statement and expand the mineral resource.

● Approval for developing road access to site.

Exploration, Development, and Production

Based on the mineral resource estimates and existing metallurgical testwork presented in this NI 43-101 Bornite Report and S-K 1300 Bornite Report, the QPs recommend Trilogy Metals continue to improve their understanding of the Bornite property’s structural geology and their confidence in the database with additional re sampling, drilling and database reviews, scoping study as well as conduct additional metallurgical testwork, hydrogeological and geotechnical assessments, and environmental studies totalling between $16.8 and $19.9 million.

Exploration Potential

Outcropping exposures of the mineralization-hosting carbonate stratigraphy along with large areas of dolomite alteration occur over approximately 18 km of strike along the northern flank of the Cosmos Hills.

Historical exploration drilling focused solely on outcropping mineralization and subsurface extensions at the Bornite, Aurora Mountain, and Pardner Hill areas.

Much of the carbonate belt has still yet to be evaluated.

In addition, airborne geophysics completed in 2006 show the Bornite carbonate sequence and the bounding stratigraphy dip to the north under the Ambler Lowlands toward the Ambler Schist Belt.

This opens a large area to explore for deposits beneath the till and recent sediments that occupy the lowlands.

Exploration by Kennecott and Trilogy Metals has used a variety of methodologies.

In 1996, Kennecott completed an initial gravity survey of the Ambler Lowlands showing significant gravimetric anomalies that may indicate structural dislocations and potential alteration and mineralization.

In 2011, Trilogy Metals investigated both deep IP and NSAMT geophysical techniques.

Results from the 2011 program led to a 2012 district-wide, 200 m dipole-dipole, deep-penetrating IP survey.

Along with extensive physical property data captured for all lithologies, airborne EM and magnetic data, the IP data was used to develop a comprehensive geophysical model of the district to support future exploration targeting.

In 2017, Trilogy Metals conducted a more detailed gravity survey that delineated significant north-northeast to northeast oriented structures which appear in part to control local basin morphology and mineralization.

Geochemical methods include conventional and DPG and lithogeochemical vectoring.

Test lines using DPG methods with various selective partial leaches of metals proved effective in recognizing margins of South Reef mineralization at significant depths under cover.

A recent analysis of the extensive ICP trace element data set at Bornite demonstrates some significant alteration vectors including iron content of various hydrothermal dolomites.

Simple XRF analysis of dolomites in the field might prove effective in vectoring toward Fe-poor mineralized dolomite sections.

A better understanding of the basin development and its structural framework is critical to the exploration of Bornite-style systems.

Dating of mineralization in the Ambler Mining District suggests that the Ambler schist belt that hosts the Arctic deposit and the Bornite carbonate-hosted mineralization are close to contemporaneous.

However, some textural and metamorphic observations suggest a possible Jura-Cretaceous or younger age for Bornite and as such, mineralization at Bornite is suspected to slightly post-date host stratigraphy.

This early and extensive syngenetic/early epigenetic signature, along with the overall fluid chemistry of the system investigated by early workers, such as Hitzman (1983 and 1986), point to large saline basin-generated fluid transport as the mechanism controlling the metallogeny of the Ambler Mining District.

Importantly, similar metallogenies related to saline, basin-generated fluids and their associated deposits form some of the largest copper districts in the world.

The Bornite Project is not currently in production;

for contemplated exploration or development activities see above.

Bornite Project – Exploration and Development Permitting

Development of the Bornite Project will require a significant number of permits and authorizations from state, federal, and regional organizations.

Much of the groundwork to support a successful permitting effort must be conducted before permit applications are submitted so that issues can be identified and resolved, baseline data can be acquired, and regulators and stakeholders can become familiar with the proposed project.

The comprehensive permitting process for the Bornite Project can be divided into three categories:

Exploration state/regional permitting phase:

required to obtain approval for drilling, camp operations, engineering, and environmental baseline studies.

Pre-application phase:

conducted in conjunction with engineering feasibility studies.

This stage includes the collection of environmental baseline data and interaction with stakeholders and regulators to facilitate the development of a project that can be successfully permitted.

The National Environmental Policy Act phase:

formal agency review of the Federal and State requirements for public and agency participation to determine if and how the Bornite Project can be done in an acceptable manner.

The permit review process will determine the number of management plans required to address all aspects of the Project to ensure compliance with environmental design and permit criteria.

Each plan will describe the appropriate environmental engineering standard and the applicable operations requirements, maintenance protocols, and response actions.

Glossary of Technical Terms

The following technical terms defined in this section are used throughout this Form 10-K:

“2D” is two dimensional.

“3D” is three dimensional.

“ AA ” is atomic absorption.

“ Ag ” is the chemical symbol for silver.

“ Ai ” is abrasion index.

“Al” is the chemical symbol for aluminum.

“ AMT ” is audio-magnetotelluric.

“ Au ” is the chemical symbol for gold.

“ BWi ” is bond ball mill work index.

“C” is the chemical symbol for carbon.

“Ca” is the chemical symbol for calcium.

“ CIM ” is the Canadian Institute of Mining, Metallurgy and Petroleum.

“ Co ” is the chemical symbol for cobalt.

“CSAMT” is controlled-source audio-frequency magnetotelluric.

“ Cu ” is the chemical symbol for copper.

“ CuEq ” is copper equivalent.

is days per annum.

“ dilution ” is waste, which is unavoidably mined with ore.

“ dip ” is the angle of inclination of a geological feature/rock from the horizontal.

“ DIGHEM ” is a proprietary geophysical survey system.

“DPG” is deep penetrating geochemistry.

“ EM ” is electromagnetic.

“ fault ” is the surface of a fracture along which movement has occurred.

“Fe” is the chemical symbol for iron.

“ gangue ” are non-valuable components of the ore.

“ grade ” is the measure of concentration of metal within mineralized rock.

“ g ” is a gram.

“ g/t ” is grams per metric tonne.

“ ha ” is a hectare.

“HDS ” is high density sludge.

“ ICP ” is induced couple plasma.

“ ICP-MS ” is inductively coupled plasma-mass spectroscopy.

“ ICP-AES ” is inductively coupled plasma-atomic emission spectroscopy.

“IP” is induced polarization.

“ IRR ” is internal rate of return.

“K” is the chemical symbol for potassium.

“ km ” is a kilometer.

“ kWhr ” is kilowatt hours.

“ kV ” is a kilovolt.

“ LOM ” is the life-of-mine.

“ LiDAR ” is light detection and ranging.

“ μm ” is a micron or mircrometer and is one millionth of a meter.

“ m ” is a meter.

“ Ma ” is million years.

“masl” is meters above sea level.

“Mg” is the chemical symbol for magnesium.

“ ML/ARD ” is metal leaching and acid rock drainage.

“ mm ” is a millimeter.

“ Mm 3 ” is million cubic meters.

“ MS ” is massive sulphide.

“ Mt/a ” is million tonnes per annum.

“ MW ” is million watts.

“ NPV ” is net present value.

“NSAMT” is natural source audio-magnetotelluric.

“ NSR ” is net smelter return

“ ounce ” or “ oz ” is a troy ounce.

“ Pb ” is the chemical symbol for lead.

“ ppm ” is parts per million.

“ QA/QC ” is quality assurance and quality control.

“ SAG ” is semi-autogenous grind.

“ SeWTP ” is a selenium water treatment plant.

“ SG ” is specific gravity.

“ SMS ” is semi-massive sulphide.

“ strike ” is the duration of line formed by the intersection of strata surfaces within the horizontal plane, always perpendicular to the dip direction.

“ tailings ” is the finely ground waste rock from which valuable minerals or metals have been extracted.

“ TMF ” is a tailings management facility.

“ tonne"

or "t” is a metric tonne:

1,000 kilograms or 2,204.6 pounds.

“ t/d ” is tonnes per day.

“ VMS ” is volcanogenic massive sulphide.

“ WRCP ” is a waste rock collection pond.

“ WRF ” is a waste rock facility.

“ WTP ” is a water treatment plan.

“ XRF ” is x-ray fluorescence spectroscopy.

“ Zn ” is the chemical symbol for zinc.

Internal Controls Over Mineral Resource and Reserve Estimates

Trilogy has internal controls for reviewing and documenting the information supporting the mineral resource and mineral reserve estimates, describing the methods used, and ensuring the validity of the estimates.

Information that is used to compile mineral resources and reserves is prepared and certified by appropriately qualified persons at the project sits and is subject to our internal review process which includes review by appropriate management and a Qualified Person employed by Trilogy.

The corporate Qualified Person presents the mineral resource and reserve information to the Board’s Technical Committee for their review on a periodic basis.

Mineral Reserve and Resource Estimate Comparison Between November 30, 2022 and 2021

For the year ended November 20, 2021, Trilogy was not subject to S-K 1300, and reported its mineral reserve and resources in accordance with NI 43-101.

For ease of comparison, the estimates for each project are shown on a 100% basis.

Trilogy’s attributable interest is 50% of the tonnage and contained metal stated in the tables.

Mineral Reserves Comparison for Arctic

Percentage Change

Mineral Resources Comparison for Arctic

Contained Metal Content

Indicated (2021) (note 1)

Indicated (2022)

Inferred (2021)

Inferred (2022)

Under S-K 1300, mineral resources are shown exclusive of reserves.

Due to the reporting change, no indicated resources are indicated for 2022.

In 2021, mineral resources are reported under NI 43-101 inclusive of reserves.

Mineral Resources Comparison for Bornite

Percentage Change

Contained Metal Cu (Mlb)

Percentage Change

Inferred In-Pit

Inferred Outside Pit South Reef

Inferred Outside Pit Ruby Zone

Total Inferred

In 2022, in-pit mineral resources increased by increasing the size of the pit to maximize the copper resource.

This resulted in reduction of the mineral resources from outside of the pit.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 2. Properties