Trilogy Metals Reports Significant Copper and Zinc Drill Result for the Arctic Deposit and Plans for an Ore Sorting Study

VANCOUVER, Jan. 16, 2018

The 2017 Arctic field program included 785.2 meters of diamond drilling to collect representative sample material to conduct bulk ore sorting studies for the Arctic deposit. An additional 273.8 meters of sonic drilling was completed to collect geotechnical, hydrological, geothermal, and hydrogeological information for the tailings management facilities and waste rock dump for the project in support of the upcoming Pre-Feasibility Study ("PFS"). The PFS results are anticipated to be released in Q1 2018.

Highlights from the Drill Program

Based on a cut-off grade of 0.5% CuEq, significant zones of high grade copper, zinc, lead, gold, and silver mineralization were intersected – including:

• AR17-0159 intersected four mineralized intervals, including 31.11 meters of 1.58% copper, 2.84% zinc, 0.69% lead, 0.38 g/t gold, and 30.79 g/t silver, and 15.25 meters of 2.91% copper, 4.34% zinc, 0.96% lead, 0.66 g/t gold, and 44.27 g/t silver;
  
  
• AR17-0160 intersected four mineralized intervals, including 25.95 meters of 2.43% copper, 1.19% zinc, 0.16% lead, 0.59 g/t gold, and 46.31 g/t silver, and 17.23 meters of 4.42% copper, 5.32% zinc, 1.37% lead, 0.13 g/t gold, and 43.92 g/t silver;
  
  
• AR17-0161 intersected two mineralized intervals, including 17.60 meters of 2.69% copper, 5.50% zinc, 1.14% lead, 0.66 g/t gold, and 54.47 g/t silver, and 4.40 meters of 3.01% copper, 3.80% zinc, 0.95% lead, 0.54 g/t gold, and 50.90 g/t silver;
  
  
• AR17-0162 intersected one mineralized interval, 6.75 meters of 2.35% copper, 6.00% zinc, 1.57% lead, 0.71 g/t gold, and 43.27 g/t silver; and
  
  
• AR17-0163 intersected one mineralized interval, 6.48 meters of 2.95% copper, 6.33% zinc, 1.40% lead, 0.84 g/t gold, and 44.23 g/t silver.

"These results from large diameter drill holes continue to demonstrate that Arctic is an exceptional copper-zinc rich deposit. Further engineering and environmental work completed this summer will support completion of the Arctic Pre-feasibility Study by the end of Q1, 2018. We expect this study will demonstrate that Arctic is one of the highest grade, open pitable copper deposits in the world. And it is located in a mining friendly jurisdiction in the United States where both our shareholders and stakeholders will be able to reap the benefits of our efforts. Meanwhile, the Alaska Industrial and Export Authority ("AIDEA") continues to advance permitting of the Ambler Mining District Industrial Access Project with the scoping process set to be finalized by the end of January", stated Rick Van Nieuwenhuyse, President and CEO of Trilogy Metals.  

Trilogy Metals completed five PQ diamond drill holes for a total of 785.2 meters of core (see Figure 1). This drill program was designed to collect 2 tons of representative mill-feed material for bulk ore sorting test work at the Steinert facility in Kentucky, USA, an independent facility. The core was quartered for geochemical analysis, and the remaining core shipped to ALS Minerals, in North Vancouver, B.C., Canada, an independent laboratory for coarse crushing and chemical analysis.  The core will be sent to the Steinert facility in early 2018 for subsequent bulk ore sorting testing.  The ore sorting studies will be carried out after the PFS is released and if determined to be advantageous to overall project, will be incorporated in subsequent studies.

The Company is pleased to announce that all five holes encountered mineralized intervals consistent with previous drilling conducted within the resource area on the property. Significant mineralized intervals of high-grade mineralization at a cutoff of 0.5% CuEq are reported in Table 1. These drill results, along with ongoing engineering and environmental studies described below, will be used to support the PFS on the Arctic deposit.