Development Funding Agreement With Alaska Industrial Development And Export Authority

VANCOUVER - Trilogy Metals Inc. has provided approval for Ambler Metals LLC, the joint venture operating company equally owned by Trilogy and South32 Limited, to enter into an Ambler Access Development Agreement with the Alaska Industrial Development and Export Authority (AIDEA). The Ambler Access Development Agreement defines how AIDEA and Ambler Metals will work cooperatively together on the pre-development work for the Ambler Access Project to address funding and oversight of the project's feasibility and permitting activities until the parties reach a decision on the construction of the project by the end of 2024 at the latest. The cost of the pre-development work and activities will be paid 50% by AIDEA and 50% by Ambler Metals based on an annually agreed program and budget.

Under the Ambler Access Development Agreement, Ambler Metals and AIDEA agree to contribute up to $35 million each for pre-development costs of the Ambler Access Project through December 31, 2024. This proposed Development Agreement follows upon and is consistent with both the Interim Funding Agreement agreed to by AIDEA and Ambler Metals for pre-development work done on the project in 2020 and with the Memorandum of Understanding (MOU) between the parties.

In January, AIDEA signed agreements for Right-of-Ways for the Ambler Access Project with the United States Bureau of Land Management (BLM) and the National Park Service (NPS). The agreements grant a 50-year right-of-way on federally owned and managed land by the federal agencies for the future development of the Ambler Access Project.

July 2020, the BLM issued the Joint Record of Decision (JROD) for the Ambler Access Project that authorizes a right-of-way across federally managed lands to AIDEA. The northern or "A" route, which is being considered for a 211-mile-long controlled industrial access road in the southern Brooks Range foothills to the Ambler Mining District, was selected as part of the decision. Along with the JROD, a Section 404 Permit, which is governed by the Clean Water Act (CWA), was issued by the United States Army Corps of Engineers (USACE) to AIDEA.

Tony Giardini, President and CEO, said, "I would again like to commend the leadership of AIDEA and Ambler Metals for the incredibly hard work that they have invested in moving the Ambler Access Project forward. I am also extremely pleased at the commitment by the State of Alaska and AIDEA in their determined effort in making this road a reality. The completion of this agreement marks another step to the eventual construction of this road which will have a significant benefit to the people of Alaska."