Trilogy Metals — Third Quarter Fiscal 2026 Earnings Summary

Financial Performance

• Reported net income of $0.2 million for the three months ended August 31, 2026, compared to a net loss of $1.7 million in the same period of 2025.
• Reported a net loss of $13.2 million for the nine months ended August 31, 2026, compared to a net loss of $7.5 million for the same period in 2025.
• Cash balance was $31.2 million as of August 31, 2026, with adjusted working capital of $30.3 million.
• Comprehensive loss for the nine-month period was $13.2 million, compared to a loss of $7.5 million in the prior year period.
• Share of loss on equity investment (Ambler Metals) was $9.6 million for the three months ended August 31, 2026, and $13.2 million for the nine months ended August 31, 2026, compared to $0.9 million and $2.2 million respectively in the prior year periods.
• Recognized a gain on derivative carried at fair market value of $11.6 million for the three months ended August 31, 2026, and $7.8 million for the nine months ended August 31, 2026.
• General and administrative expenses were $0.3 million for the three months ended August 31, 2026 (vs. $0.2 million in 2025) and $1.3 million for the nine months ended August 31, 2026 (vs. $0.9 million in 2025).
• Salaries and stock-based compensation expenses were $1.0 million for the three months ended August 31, 2026 (vs. $0.6 million in 2025) and $6.0 million for the nine months ended August 31, 2026 (vs. $3.7 million in 2025).
• Cash used in operating activities was $4.9 million and cash used in investing activities was $17.0 million during the nine months ended August 31, 2026.
• Cash raised in financing activities was $1.4 million during the nine months ended August 31, 2026.

Guidance and Future Outlook

• The coordinated federal and state permitting schedule for the Arctic Project targets a Record of Decision in September 2028.
• The Company has sufficient cash on hand for the next twelve months from the end of the most recent fiscal quarter, including funding its remaining fiscal 2026 corporate budget of $1.1 million.
• The Company's share of Ambler Metals' fiscal 2026 budget is $17.5 million, with $17.0 million funded as of August 31, 2026.
• Future cash requirements may vary materially, and the Company may need to raise additional funds beyond the next twelve months to support operations and administration expenses.
• Future sources of liquidity are expected to be primarily equity financing, though debt financing, convertible debt, option exercises, or the ATM program may be utilized.

Business Segments and Product Lines

• The Company holds a 50% interest in Ambler Metals LLC, which owns the Upper Kobuk Mineral Projects (UKMP) in northwestern Alaska.
• The UKMP hosts polymetallic VMS deposits containing copper, zinc, lead, gold, and silver, as well as carbonate replacement deposits with high-grade copper and cobalt mineralization.
• Exploration focuses on the Arctic VMS deposit and the Bornite copper-cobalt deposit within a land package spanning approximately 190,929 hectares.
• Ambler Metals LLC is advancing exploration and development of the UKMP with funding from the DOW investment and South32.
• The DOW has committed to working in good faith to help facilitate financing for the proposed 211-mile, industrial-use-only Ambler Access Project.

Market and Competitive Landscape

• The Arctic Project is positioned to become a cornerstone of a secure, domestic copper supply chain.
• The Ambler Mining District is described as one of the richest and most prospective known copper-dominant districts in the world.
• The U.S. Army Corps of Engineers (USACE) is confirmed as the lead federal agency for the Arctic Project permitting.
• The permitting schedule integrates State of Alaska permitting under the first statewide FAST-41 Memorandum of Understanding in the nation.

Risks and Challenges

• Forward-looking statements involve risks and uncertainties, including uncertainties regarding permitting outcomes, executive orders, and collaboration among parties.
• Future exercise of Warrants issued to the DOW could result in future dilution of share capital.
• Actual results could differ materially from expectations due to factors disclosed in the Company's Annual Report on Form 10-K for the year ended November 30, 2025.
• The DOW investment does not create a partnership or joint venture and does not obligate the U.S. Government to provide additional funding, assistance, permits, or approvals.

Management Commentary and Tone

• President and CEO Tony Giardini described the third quarter and subsequent weeks as "transformational" for the Company.
• Management highlighted the successful closing of the Department of War investment and the establishment of a transparent, coordinated federal and state permitting schedule.
• Management expressed confidence that the Arctic Project is well-positioned to become a cornerstone of a secure, domestic copper supply chain.

Other Key Points

• On September 11, 2026, the Company closed a strategic equity investment with the U.S. Department of War (DOW) for gross proceeds of approximately $17.8 million.
• The DOW investment consisted of the issuance of 8,215,570 units at $2.17 per unit, with each unit comprising one Common Share and three-quarters of one Warrant.
• The Warrants allow for the acquisition of up to 6,161,678 additional Common Shares at an exercise price of $0.01 per share, with a ten-year term.
• Warrants become exercisable upon the earlier of the completion of Phase 1 of the Ambler Access Project, the achievement of specified usage milestones, or a change of control.
• Following the transaction, the DOW holds approximately 9.1% of the Company's outstanding Common Shares.
• The DOW is entitled to designate one independent third-party nominee for the Board of Directors and appoint a representative to attend Board meetings as an observer.
• The proceeds from the DOW investment are specifically designated to fund an additional cash capital contribution to Ambler Metals, maintaining the Company's 50% ownership interest in the joint venture.
• The settlement of the derivative liability related to the DOW transaction resulted in a non-cash gain of approximately $3.9 million recognized upon closing.
• The Company has an at-the-market equity program allowing for the issuance of up to $200 million of Common Shares.
• A Notice of Intent to prepare an Environmental Impact Statement by the USACE was published in September 2026, formally commencing the NEPA review.