Update On Project Activities At Upper Kobuk Mineral Projects

VANCOUVER - Trilogy Metals Inc. reported on the summer field activities currently being managed by Ambler Metals LLC, the joint venture operating company equally owned by Trilogy and South32 Limited at the Upper Kobuk Mineral Projects (UKMP) located in Northwestern Alaska. The exploration camp opened in May in preparation for the start-up of drilling in June at the Arctic Project. The drilling contractor deployed three diamond drill rigs in June to focus on a total of 7,600 meters of planned drilling at Arctic with most of the drilling targeting infill areas to improve the confidence of the Mineral Resources, and geotechnical and metallurgical drill holes to further de-risk the project. An additional 7,000 meters of exploration drilling was planned at targets near the Arctic deposit and elsewhere in the Ambler Mining District.

Drilling productivity at the project is behind schedule due to adverse weather conditions in the district and challenges in fully staffing the exploration program.  As a result, Ambler Metals is unlikely to achieve the drill meters planned at Arctic for this field season. Notwithstanding, the lower-than-expected drilling productivity, Ambler Metals has recovered sufficient mineralized material to complete the planned metallurgical program at Arctic. Also, all the planned geotechnical drilling was completed at the Arctic Project. The Company does not expect the shortfall in the drilling program to influence the permitting and development timeline of the Arctic Project.

In consultation with joint-venture owners Trilogy and South32, Ambler Metals will keep the camp open longer than originally planned to complete as much of the regional drilling program as possible. Timing of camp closure this season will be weather dependent.

In response to the slower drilling this season, Ambler Metals has also redeployed some of the geological staff at site to focus on regional mapping and soil sampling around satellite deposits near the Arctic Project and at the Bornite Project. Information gathered during this season will assist with future exploration activities including identifying drill targets for next year's field season.

Tony Giardini, President and CEO, said, "We are pleased that we are able to achieve our primary objectives which include the completion of the metallurgical drilling program at Arctic and the advancement of the pre-permitting activities for Arctic. We are now well into our regional drilling program with two drills following up on targets within the Ambler Belt and the greater Bornite area. We are looking forward to seeing the regional drilling results which should be available within the next couple of months and in commencing mine permitting once we have completed the permitting preparedness review."