What changed in this filing

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Item 1. Financial Statements

2023-04-05 compared with 2022-10-05 · 119 added, 138 removed, 241 unchanged (52% of the section changed)

3 unchanged sentences

in thousands of US dollars

August 31, 2022

February 28, 2023

November 30, 2022

Current assets

Cash and cash equivalents

Accounts receivable

Deposits and prepaid amounts

Total current assets

Investment in Ambler Metals LLC (note 3)

Mineral properties

Right of use asset (note 5 (a))

2 unchanged sentences

Current portion of lease liability

Total current liabilities

Long-term portion of lease liability (note 5 (b))

Total liabilities

Shareholders’ equity

3 unchanged sentences

Contributed surplus – units (note 6(b))

Total shareholders' equity

Total liabilities and shareholders' equity

Commitments (note 8)

4 unchanged sentences

Trilogy Metals Inc.

For the Quarter Ended August 31, 2022

For the Quarter Ended February 28, 2023

Trilogy Metals Inc.

3 unchanged sentences

For the three months ended

For the nine months ended

August 31, 2022

August 31, 2021

August 31, 2022

August 31, 2021

February 28, 2023

February 28, 2022

Exploration expenses

Foreign exchange loss (gain)

Foreign exchange (gain) loss

General and administrative

3 unchanged sentences

Total expenses

Gain on disposition of mineral property

Interest and other income

Services agreement income

Share of loss on equity investment (note 3(b))

Write off mineral properties

Comprehensive loss for the period

Loss and comprehensive loss for the period

Basic loss per common share

4 unchanged sentences

Trilogy Metals Inc.

For the Quarter Ended August 31, 2022

For the Quarter Ended February 28, 2023

Trilogy Metals Inc.

6 unchanged sentences

Exercise of options

Stock-based compensation

Earnings for the period

Balance – February 28, 2021

Exercise of options

Stock-based compensation

Loss for the period

Balance – May 31, 2021

Exercise of options

Stock-based compensation

Loss for the period

Balance - August 31, 2021

Balance – November 30, 2021

Exercise of options

Restricted Share Units

3 unchanged sentences

Balance – February 28, 2022

Balance – November 30, 2022

Exercise of options

Restricted Share Units

Stock-based compensation

Loss for the period

Balance – May 31, 2022

Restricted Share Units

Joint venture contribution

Services settled by common shares

Stock-based compensation

Loss for the period

Balance – August 31, 2022

Balance – February 28, 2023

(See accompanying notes to the interim consolidated financial statements)

Trilogy Metals Inc.

For the Quarter Ended August 31, 2022

For the Quarter Ended February 28, 2023

Trilogy Metals Inc.

1 unchanged sentence

in thousands of US dollars

For the nine months ended

August 31, 2022

August 31, 2021

For the three months ended

February 28, 2023

February 28, 2022

Cash flows used in operating activities

1 unchanged sentence

Adjustments to reconcile net loss to cash flows in operating activities

Professional fees settled by common shares

Office lease accounting

Gain on disposal of mineral property

Loss on equity investment in Ambler Metals LLC (note 4(b))

Unrealized foreign exchange (gain) loss

Unrealized foreign exchange loss

Stock-based compensation

Write off mineral properties

Net change in non-cash working capital

Decrease in accounts receivable

Increase in deposits and prepaid amounts

Decrease in accounts payable and accrued liabilities

Decrease (increase) in accounts receivable

Decrease in deposits and prepaid amounts

(Decrease) increase in accounts payable and accrued liabilities

Total cash flows used in operating activities

3 unchanged sentences

Cash flows from investing activities

Mineral claims

Proceeds from disposition of mineral property

Total cash flows from (used in) investing activities

Decrease in cash and cash equivalents

Effect of exchange rate on cash and cash equivalents

Cash and cash equivalents – beginning of period

Cash and cash equivalents – end of the period

Total cash flows from investing activities

Decrease in cash

Effect of exchange rate on cash

Cash – beginning of the period

Cash – end of the period

(See accompanying notes to the interim consolidated financial statements)

Trilogy Metals Inc.

For the Quarter Ended August 31, 2022

For the Quarter Ended February 28, 2023

Trilogy Metals Inc.

Notes to the Interim Consolidated Financial Statements

1) Nature of operations

1) Nature of operations and Going Concern

Trilogy Metals Inc.

2 unchanged sentences

The Company also conducts early-stage exploration through a wholly owned subsidiary, 995 Exploration Inc.

At August 31, 2022, we had $ 3.1 million in cash and cash equivalents and working capital of $ 2.9 million.

The Company continues to manage its cash expenditures through its working capital including cash preservation efforts related to Director and management compensation.

We believe our existing cash resources will provide sufficient funds to carry out our planned operations for the 12-months from the date that our consolidated financial statements are issued.

These interim consolidated financial statements have been prepared on a going concern basis which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future.

At February 28, 2023, we had a working capital surplus of $ 1.0 million (2022 - $ 2.4 million) and an accumulated deficit of $ 71.9 million (2022 - $ 66.9 million).

The Company has no recurring source of cash inflows at its current stage.

The Company’s cash outflow from operations was $ 0.9 million for the first quarter ended February 28, 2023.

The Company intends to finance its future requirements through a combination of debt and/or equity issuance.

There is no assurance that the Company will be able to obtain such financings or obtain them on favourable terms.

These uncertainties raise substantial doubt about the Company’s ability to continue as a going concern.

These interim consolidated financial statements do not include any adjustments to the amounts and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.

Such adjustments could be material.

2) Summary of significant accounting policies

7 unchanged sentences

References to CDN$ refer to amounts in Canadian dollars.

These unaudited interim consolidated financial statements include all adjustments necessary for the fair presentation of the Company’s financial position as of August 31, 2022 and our results of operations and cash flows for the nine-month period ended August 31, 2022 and August 31, 2021.

The results of operations for the nine-month period ended August 31, 2022 are not necessarily indicative of the results to be expected for the fiscal year ending November 30, 2022.

These interim consolidated financial statements include all adjustments necessary for the fair presentation of the Company’s financial position as of February 28, 2023 and our results of operations and cash flows for the three-month period ended February 28, 2023 and February 28, 2022.

The results of operations for the three-month period ended February 28, 2023 are not necessarily indicative of the results to be expected for the fiscal year ending November 30, 2023.

As these interim consolidated financial statements do not contain all of the disclosures required by U.S.

GAAP for annual financial statements, these unaudited interim consolidated financial statements should be read in conjunction with the annual financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended November 30, 2021, filed with the U.S.

GAAP for annual financial statements, these interim consolidated financial statements should be read in conjunction with the annual financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended November 30, 2022, filed with the U.S.

Securities and Exchange Commission (“SEC”) and Canadian securities regulatory authorities on February 14, 2023.

These interim consolidated financial statements were approved by the Company’s Audit Committee on behalf of the Board of Directors for issue on October 4, 2022.

These interim consolidated financial statements were approved by the Company’s Audit Committee on behalf of the Board of Directors for issue on April 4, 2023.

Use of estimates and measurement uncertainties

1 unchanged sentence

GAAP requires management to make estimates and assumptions of future events that affect the reported amount of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of expenditures during the period.

Significant judgments include the assessment of potential indicators of impairment of mineral properties and investments in affiliates.

Significant estimates include the measurement of the equity method investment, income taxes, and the valuation of stock-based compensation.

Trilogy Metals Inc.

For the Quarter Ended February 28, 2023

Trilogy Metals Inc.

Notes to the Interim Consolidated Financial Statements

judgments include the assessment of potential indicators of equity method investments where key judgement is the delay on the Ambler Access Project is temporary and the delay was considered when assessing indicators of impairment.

Significant estimates include the measurement of income taxes, and the valuation of stock-based compensation.

Actual results could differ materially from those reported.

2 unchanged sentences

Factors that may be indicative of an impairment include a loss in the value of an investment that is not temporary.

Management considers several factors in

Trilogy Metals Inc.

For the Quarter Ended August 31, 2022

Trilogy Metals Inc.

Notes to the Interim Consolidated Financial Statements

considering if an indicator of impairment has occurred, including but not limited to, sustained losses by the investment, the absence of the ability to recover the carrying amount of the investment, significant changes in the legal, business or regulatory environment, significant adverse changes impacting the investee and internal reporting indicating the economic performance of an investment is, or will be, worse than expected.

Management considers several factors in considering if an indicator of impairment has occurred, including but not limited to, sustained losses by the investment, the absence of the ability to recover the carrying amount of the investment, significant changes in the legal, business or regulatory environment, significant adverse changes impacting the investee and internal reporting indicating the economic performance of an investment is, or will be, worse than expected.

These factors are subjective and require consideration at each period end.

7 unchanged sentences

On February 11, 2020, the Company completed the formation of a 50 / 50 joint venture named Ambler Metals LLC (“Ambler Metals”) with South32 Limited (“South32”).

As part of the formation of the joint venture, Trilogy contributed all its assets associated with the UKMP, including the Arctic and Bornite Projects, while South32 contributed cash of US$ 145 million, resulting in each party’s subsidiaries directly owning a 50 % interest in Ambler Metals.

As part of the formation of the joint venture, Trilogy contributed all its assets associated with the UKMP, including the Arctic and Bornite Projects, while South32 contributed cash of $ 145 million, resulting in each party’s subsidiaries directly owning a 50 % interest in Ambler Metals.

Ambler Metals is an independently operated company jointly controlled by Trilogy and South32 through a four -member board, of which two members are appointed by Trilogy based on its 50 % equity interest.

4 unchanged sentences

Our investment in Ambler Metals was initially measured at its fair value of $ 176 million upon recognition.

Our maximum exposure to loss in this entity is limited to the carrying amount of our investment in Ambler Metals, which, as at August 31, 2022, totaled $ 146.8 million.

Our maximum exposure to loss in this entity is limited to the carrying amount of our investment in Ambler Metals, which, as at February 28, 2023, totaled $ 141.4 million.

Carrying value of equity method investment

Trilogy recognized, based on its 50 % ownership interest in Ambler Metals, an equity loss equivalent to its pro rata share of Ambler Metals’ comprehensive loss of $ 17.9 million for the three-month period ending August 31, 2022 (2021 - $ 12.1 million) and $ 26.6 million for the nine-month period ending August 31, 2022 (2021 - $ 17.8 million).

During the nine-month period ending August 31, 2022, Trilogy made a $ 51,000 equity contribution to Ambler Metals through the issuance of 31,469 common shares of the Company as part of the long-term incentive compensation for an Ambler Metals executive.

Likewise, South32 made an equivalent equity contribution to Ambler Metals for $ 51,000 in cash for their 50 % share.

The carrying value of Trilogy’s 50 % investment in Ambler Metals as at August 31, 2022 is summarized on the following table.

Trilogy Metals Inc.

For the Quarter Ended August 31, 2022

For the Quarter Ended February 28, 2023

Trilogy Metals Inc.

Notes to the Interim Consolidated Financial Statements

Trilogy recognized, based on its 50 % ownership interest in Ambler Metals, an equity loss equivalent to its pro rata share of Ambler Metals’ comprehensive loss of $ 3.0 million for the three-month period ending February 28, 2023 (2022 - $ 3.8 million).

During the three-month period ending February 28, 2023, Trilogy made a $ 111,000 equity contribution to Ambler Metals through the issuance of 143,505 common shares of the Company as part of the long-term incentive compensation for Ambler Metals executives.

Likewise, South32 made an equivalent equity contribution to Ambler Metals for $ 111,000 in cash for their 50 % share.

The carrying value of Trilogy’s 50 % investment in Ambler Metals as at February 28, 2023 is summarized on the following table.

in thousands of dollars

1 unchanged sentence

Joint venture equity contribution

Share of loss on equity investment for the nine-month period ending August 31, 2022

August 31, 2022, Investment in Ambler Metals

The following table summarizes Ambler Metals’ Balance Sheet as at August 31, 2022.

Share of loss on equity investment for the three month period ending February 28, 2023

February 28, 2023, Investment in Ambler Metals

The following table summarizes Ambler Metals’ Balance Sheet as at February 28, 2023.

in thousands of dollars

August 31, 2022

February 28, 2023

November 30, 2022

Loan receivable from South32 (current and long-term)

Mineral properties

2 unchanged sentences

Members' equity (total assets less total liabilities)

South32 fully repaid the remaining loan balance on June 21, 2022.

(d) The following table summarizes Ambler Metals' loss for the three and nine-month period ending August 31, 2022.

Members’ cash is held at one bank, the majority of cash is uninsured as at February 28, 2023.

(d) The following table summarizes Ambler Metals' loss for the three-month period ending February 28, 2023.

in thousands of dollars

Three months ended

Nine months ended

August 31, 2022

August 31, 2021

August 31, 2022

August 31, 2021

For the three months ended

February 28, 2023

February 28, 2022

Corporate salaries and wages

5 unchanged sentences

Comprehensive loss

Related party transactions

During the three-month period ended August 31, 2022, the Company transferred a mineral claim to Ambler Metals and received net proceeds of approximately $ 140,000 .

Trilogy Metals Inc.

For the Quarter Ended August 31, 2022

For the Quarter Ended February 28, 2023

Trilogy Metals Inc.

2 unchanged sentences

in thousands of dollars

August 31, 2022

February 28, 2023

November 30, 2022

3 unchanged sentences

Accounts payable and accrued liabilities

Included in accrued salaries and vacation approximately $ 155,000 was settled, subsequent to the end of the first quarter, on March 1, 2023 through the issuance of common shares of the Company.

(a) Right-of-use asset

2 unchanged sentences

Net amortization

Balance as at August 31, 2022

Balance as at February 28, 2023

(b) Lease liabilities

3 unchanged sentences

in thousands of dollars

Nine months ended

August 31, 2022

August 31, 2021

Three months ended

February 28, 2023

February 28, 2022

Operating lease costs

2 unchanged sentences

Variable lease costs consist primarily of the Company’s portion of operating costs associated with the office space lease as the Company elected to apply the practical expedient not to separate lease and non-lease components.

As of August 31, 2022, the weighted-average remaining lease term is 1.8 years and the weighted-average discount rate is 8 % .

As of February 28, 2023, the weighted-average remaining lease term is 1.2 years and the weighted-average discount rate is 8 % .

Significant judgment was used in the determination of the incremental borrowing rate which included estimating the Company’s credit rating.

Supplemental cash and non-cash information relating to our leases during the nine-month period ending August 31, 2022 are as follows:

● Cash paid for amounts included in the measurement of lease liabilities was $ 153,097 .

Trilogy Metals Inc.

For the Quarter Ended August 31, 2022

For the Quarter Ended February 28, 2023

Trilogy Metals Inc.

Notes to the Interim Consolidated Financial Statements

Future minimum payments relating to the lease recognized in our balance sheet as of August 31, 2022 are as follows:

Supplemental cash and non-cash information relating to our leases during the three-month period ending February 28, 2023 are as follows:

● Cash paid for amounts included in the measurement of lease liabilities was $ 49,310 .

Future minimum payments relating to the lease recognized in our balance sheet as of February 28, 2023 are as follows:

in thousands of dollars

August 31, 2022

February 28, 2023

Total undiscounted lease payments

7 unchanged sentences

November 30, 2022

Exercise of options

Restricted Share Units

Services settled by common shares

Joint venture equity contribution (note 4(b))

August 31, 2022, issued and outstanding

February 28, 2023, issued and outstanding

On April 30, 2012, under the NovaGold Arrangement, Trilogy committed to issue common shares to satisfy holders of NovaGold deferred share units (“NovaGold DSUs”), once vested, on record as of the close of business April 27, 2012.

When vested, Trilogy committed to deliver one common share to the holder for every six shares of NovaGold the holder is entitled to receive, rounded down to the nearest whole number.

As of February 28, 2023, a total of 9,293 NovaGold DSUs remain outstanding representing a right to receive 1,549 Common Shares in Trilogy, which will settle upon certain directors retiring from NovaGold’s board.

Stock options

During the nine-month period ended August 31, 2022, the Company granted 1,734,500 stock options (2021 - 3,374,150 stock options) at an exercise price of CDN$ 2.21 (2021 - CDN$ 2.52 ) to employees, consultants and directors exercisable for a period of five years with various vesting terms from immediate vesting to vesting over a two-year period.

During the three-month period ended February 28, 2023, the Company granted 3,230,000 stock options (2022 - 1,734,500 stock options) at an exercise price of CDN$ 0.78 (2022 - CDN$ 2.21 ) to employees, consultants and directors exercisable for a period of five years with various vesting terms from immediate vesting to vesting over a two-year period.

The fair value attributable to options granted in the period was CDN$ 0.37 (2022 - CDN$ 0.90 ).

No stock options were granted during the second and third quarters.

For the nine-month period ended August 31, 2022, Trilogy recognized a stock-based compensation charge of $ 1.4 million (2021 - $ 2.98 million) for options granted to directors, employees and service providers, net of estimated forfeitures.

The fair value of the stock options recognized in the period has been estimated using the Black-Scholes option pricing model.

For the three-month period ended February 28, 2023, Trilogy recognized a stock-based compensation charge of $ 0.5 million (2022 - $ 0.86 million) for options granted to directors, employees and service providers, net of estimated forfeitures.

Trilogy Metals Inc.

For the Quarter Ended August 31, 2022

For the Quarter Ended February 28, 2023

Trilogy Metals Inc.

Notes to the Interim Consolidated Financial Statements

Assumptions used in the pricing model for the nine-month period ended August 31, 2022 are as provided below.

August 31, 2022

The fair value of the stock options recognized in the period has been estimated using the Black-Scholes option pricing model.

Assumptions used in the pricing model for the three-month period ended February 28, 2023 are as provided below.

February 28, 2023

Risk-free interest rates

3 unchanged sentences

Expected dividends

As of August 31, 2022, there were 1,779,504 non-vested options outstanding with a weighted average exercise price of CDN$ 2.37 ;

As of February 28, 2023, there were 2,148,424 non-vested options outstanding with a weighted average exercise price of CDN$ 1.03 ;

the non-vested stock option expense not yet recognized was $ 0.47 million.

This expense is expected to be recognized over the next twelve months.

A summary of the Company’s stock option plan and changes during the nine-month period ended August 31, 2022 is as follows:

August 31, 2022

This expense is expected to be recognized over the 22 months .

A summary of the Company’s stock option plan and changes during the three-month period ended February 28, 2023 is as follows:

February 28, 2023

Weighted average

1 unchanged sentence

Number of options

Balance – beginning of the fiscal year

Balance – beginning of the period

Balance – end of the period

During the six-month period ended May 31, 2022, the Company received net proceeds of $ 54,295 upon the exercise of 81,674 options.

There were no stock options exercised during the third quarter.

The following table summarizes information about the stock options outstanding at August 31, 2022.

There were no stock options exercised during the first quarter 2023.

The following table summarizes information about the stock options outstanding at February 28, 2023.

average years

6 unchanged sentences

$3.01 to $3.41

The aggregate intrinsic value of vested stock options (the market value less the exercise price) at August 31, 2022 was $Nil (2021 - $ 2.2 million) and the aggregate intrinsic value of exercised options for the nine-month period ending August 31, 2022 was $ 0.05 million (2021 - $ 0.63 million).

The aggregate intrinsic value of vested stock options (the market value less the exercise price) at February 28, 2023 was $ 0.02 million (2022 - $ 0.15 million) and the aggregate intrinsic value of exercised options for the three-month period ending February 28, 2023 was $Nil million (2022 - $ 0.03 million).

Restricted Share Units and Deferred Share Units

2 unchanged sentences

Trilogy Metals Inc.

For the Quarter Ended August 31, 2022

For the Quarter Ended February 28, 2023

Trilogy Metals Inc.

2 unchanged sentences

All units are accounted for as equity-settled awards.

A summary of the Company’s unit plans and changes during the nine-month period ending August 31, 2022 is as follows:

A summary of the Company’s unit plans and changes during the three-month period ending February 28, 2023 is as follows:

Number of RSUs

Number of DSUs

Balance – beginning of the fiscal year

Balance – beginning of the period

( 2,345,927 )

Balance – end of the period

For the nine-month period ending August 31 2022, Trilogy recognized a combined RSU and DSU stock-based compensation charge of $ 1.6 million (2021 - $ 0.10 million), net of estimated forfeitures.

For the three-month period ending February 28, 2023, Trilogy recognized a combined RSU and DSU stock-based compensation charge of $ 1.1 million (2022 - $ 1.0 million), net of estimated forfeitures.

7) Financial instruments

1 unchanged sentence

These risks and management’s objectives, policies and procedures for managing these risks are disclosed as follows.

The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, deposits, and accounts payable and accrued liabilities.

The Company’s financial instruments consist of cash, accounts receivable, deposits, and accounts payable and accrued liabilities.

The fair value of the Company’s financial instruments approximates their carrying value due to the short-term nature of their maturity.

The Company’s financial instruments initially measured at fair value and then held at amortized cost include cash and cash equivalents, accounts receivable, deposits, and accounts payable and accrued liabilities.

The Company’s financial instruments initially measured at fair value and then held at amortized cost include cash, accounts receivable, deposits, and accounts payable and accrued liabilities.

Financial risk management

3 unchanged sentences

The Company operates in the United States and Canada.

The Company’s exposure to currency risk at August 31, 2022 is limited to the Canadian dollar balances consisting of cash of approximately CDN$ 54,000 , accounts receivable of approximately CDN$ 14,000 and accounts payable of approximately CDN$ 320,000 .

The Company’s exposure to currency risk at February 28, 2023 is limited to the Canadian dollar balances consisting of cash of approximately CDN$ 71,000 , accounts receivable of approximately CDN$ 35,000 and accounts payable of approximately CDN$ 320,000 .

Based on a 10 % change in the US-Canadian exchange rate, assuming all other variables remain constant, the Company’s net loss would change by approximately $ 35,000 .

Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations.

The Company holds cash and cash equivalents with Canadian Chartered financial institutions.

The Company’s accounts receivable consists of Canadian Goods and Services Tax receivable from the Federal Government of Canada and other receivables for recoverable expenses.

The Company’s exposure to credit risk is equal to the balance of cash and cash equivalents and accounts receivable as recorded in the financial statements.

The Company holds cash with a Canadian chartered financial institution of which the majority is uninsured as at February 28, 2023.

The Company’s only significant exposure to credit risk is equal to the balance of cash as recorded in the financial statements.

Liquidity risk

3 unchanged sentences

Trilogy Metals Inc.

For the Quarter Ended August 31, 2022

For the Quarter Ended February 28, 2023

Trilogy Metals Inc.

Notes to the Interim Consolidated Financial Statements

Contractually obligated undiscounted cash flow requirements as at August 31, 2022 are as follows:

Contractually obligated undiscounted cash flow requirements as at February 28, 2023 are as follows:

in thousands of dollars

Accounts payable and accrued liabilities

Included in accounts payable and accrued liabilities is $ 207,000 for accrued salaries and director fees that were settled, subsequent to the end of the third quarter, on September 1, 2022 through the issuance of common shares of the Company (note 9).

Included in accounts payable and accrued liabilities approximately $ 155,000 is for accrued salaries that were settled, subsequent to the end of the first quarter, on March 1, 2023 through the issuance of common shares of the Company (note 9).

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The Company is exposed to interest rate risk with respect to interest earned on cash and cash equivalents.

Based on balances as at August 31, 2022, a 1 % change in interest rates would result in a negligible change in net loss, assuming all other variables remain constant.

The Company is exposed to interest rate risk with respect to interest earned on cash.

Based on balances as at February 28, 2023, a 1 % change in interest rates would result in a negligible change in net loss, assuming all other variables remain constant.

As we are currently in the exploration phase none of our financial instruments are exposed to commodity price risk;

3 unchanged sentences

9) Subsequent event

On September 1, 2022 the Board of Directors and senior management were granted 344,323 RSUs in settlement of approximately $ 207,000 in accrued salaries and director fees, all vesting immediately.

The grants were in support of an effort to preserve cash and increase share ownership by settling the cash component of director fees and a portion of senior management salaries in shares of the Company.

On March 1, 2023 the Board of Directors and senior management were granted 213,463 RSUs and 162,469 DSUs in settlement of approximately $ 247,000 of director fees and accrued salaries, all vesting immediately.

The grants were in support of an effort to preserve cash and increase share ownership by settling director fees and a portion of senior management salaries in shares of the Company.

Trilogy Metals Inc.

For the Quarter Ended August 31, 2022

For the Quarter Ended February 28, 2023

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-Q

Item 1. Financial Statements