Financial Analysis

9) Income taxes Income tax expense differs from the amount that would result from applying the Canadian federal and provincial income tax rates to earnings before income taxes. These differences result from the following items: in thousands of dollars November 30, 2025 November 30, 2024 November 30, 2023 $ $ $ Loss before income taxes (42,241) (8,587) (14,951) Federal income tax rate 15.00 % 15.00 % 15.00 % Provincial income tax rate 12.00 % 12.00 % 12.00 % Statutory income tax rate 27.00 % 27.00 % 27.00 % Combined federal and provincial statutory tax rate 27.00 % 27.00 % 27.00 % Income tax (recovery) at statutory rate (11,405) (2,319) (4,037) Difference in foreign tax rates (40) (35) (118) Non-deductible expenditures 8,615 162 239 Change in estimates in respect of prior years (25) (56) 15 Share issuance costs (182) Other (1) 1 Change in valuation allowance 3,038 2,247 3,901 Income tax recovery (expense) Deferred income taxes arise from temporary differences in the recognition of income and expenses for financial reporting and tax purposes. The significant components of deferred income tax assets and liabilities at November 30, 2025 and 2024 are as follows: in thousands of dollars November 30, 2025 November 30, 2024 $ $ Deferred income tax assets Non-capital losses 65,344 63,293 Mineral property interest 4,145 4,538 Mineral property impairment 25 26 Deferred interest 5,819 6,074 Property, plant and equipment 121 152 Lease liability 30 40 Share issuance costs 444 17 Stock-base …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

5) Leases (a) Right-of-use asset in thousands of dollars $ Balance as at November 30, 2023 113 Net amortization for lease ended June 30, 2024 (113) ROU assets recognized for lease commenced July 1, 2024 170 Net amortization for lease commenced July 1, 2024 (15) Balance as at November 30, 2024 155 Net amortization (38) Balance as at November 30, 2025 117 (b) Lease liabilities The Companys lease arrangement consists of an operating lease for the corporate office. On July 1, 2024, the Company entered into a four-year lease for office space expiring in June 2028. The lease has no extension option. The current monthly lease payment is approximately CDN $9,500 consisting of both base rent and variable operating costs. Total lease expense recorded within general and administrative expenses was comprised of the following components: in thousands of dollars Year ended Year ended November 30, 2025 November 30, 2024 $ $ Fixed rent expense 50 134 Variable rent expense 21 112 Total lease expense 71 246 Variable lease costs consist primarily of the Companys 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. For the year ending November 30, 2025, variable lease costs have been reduced by a refund received for adjusted operating costs from the previous lease. As at November 30, 2025, the remaining lease term is 2.6 years. The discount rate used to measure the lease liability …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

New accounting pronouncements Recently Adopted Accounting Standards In fiscal year 2025, we adopted Accounting Standards Update (ASU) 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. Management has evaluated the Companys operations and concluded it has one reportable operating segment. The new standard expands segment disclosure requirements. This standard has not changed the processing, recording, or presentation of financial data, other than providing additional disclosures regarding management oversight for the Companys single operating segment. The additional disclosures required by the standard are included in Note 11. Issued and Not Effective In December 2023, the FASB issued ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 enhances the transparency and decision usefulness of income tax disclosures through changes to the rate reconciliation and income taxes paid information. The standard is effective beginning with the Companys Annual Report on Form 10-K for the fiscal year ended November 30, 2026, and subsequent interim periods, with early adoption permitted. The Company is evaluating the impact of the guidance on the consolidated financial statements. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

11) Segment information The Companys operating segments are reported in a manner consistent with the internal reporting provided to its Chief Operating Decision Makers (CODM). The CODM, who are responsible for allocating resources and assessing the performance of the operating segments, have been identified as the Chief Executive Officer and Chief Financial Officer. The CODM evaluates the Companys performance based on the overall results of the Company, including the performance of its investment Ambler Metals LLC, which holds the Upper Kobuk Mineral Projects in Alaska. The Company uses a single U.S. GAAP-consistent measure of segment profit or loss with no reconciling items or measurement differences. Management has concluded that consolidated net income (loss) is the appropriate measure of segment of profit or loss. The CODM does not regularly receive or review discrete segment-level expense categories separate from those presented in the consolidated statements of operations. Accordingly, no significant segment expenses are separately disclosed, as all expenses are included within the consolidated statement of loss. …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

2) Summary of significant accounting policies Basis of presentation These consolidated financial statements have been prepared using accounting principles generally accepted in the United States (U.S. GAAP) and include the accounts of Trilogy and its wholly owned subsidiaries, NovaCopper US Inc. (dba Trilogy Metals US) and 995 Exploration Inc. All intercompany transactions are eliminated on consolidation. For variable interest entities (VIEs) where Trilogy is not the primary beneficiary, we use the equity method of accounting. All figures are in United States dollars unless otherwise noted. References to CDN$ refer to amounts in Canadian dollars. These financial statements were approved by the Companys Board of Directors for issue on February 16, 2026. Cash Cash consists of bank deposits that are held at two large Canadian financial institutions. The majority of cash is uninsured as at November 30, 2025. Investment in affiliates Investments in unconsolidated ventures over which the Company has the ability to exercise significant influence, but does not control, are accounted for under the equity method and include the Companys investment in Ambler Metals LLC (Ambler Metals) . We identified Ambler Metals as a VIE as the entity is dependent on funding from its owners. All funding, ownership, voting rights and power to exercise control is shared equally on a 50/50 basis between the owners of the VIE. Therefore, the Company has determined that it is not the primary beneficiary of …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

7) Share capital Authorized: unlimited common shares, no par value in thousands of dollars, except share amounts Number of shares $ November 30, 2024 161,085,313 190,503 At-the-market offering, net of share issue cost 3,513,495 24,325 Exercise of options 3,664,983 8,355 Shares issued from Restricted Share Units 2,767,851 2,008 Services settled by common shares 38,246 50 November 30, 2025, issued and outstanding 171,069,888 225,241 In October 2025, the Company issued 3,513,495 common shares under its May ATM Program, resulting in gross proceeds of $25.0 million at an average price of $7.12 per share. After deducting commissions, the Company received net proceeds of $24.3 million. The May ATM Program was terminated upon completion of these sales. (a) Stock options The Company has a stock option plan providing for the issuance of options with a rolling maximum number equal to 10% of the issued and outstanding Common Shares at any given time. The Company may grant options to its directors, officers, employees and service providers. The exercise price of each option cannot be lower than the greater of market price or fair market value of the Common Shares (as such terms are defined in the plan) at the date of the option grant. The number of Common Shares optioned to any single optionee may not exceed 10% of the issued and outstanding Common Shares at the date of grant. The options are exercisable for a maximum of five years from the date of grant and may be subject to vesting prov …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

12) Subsequent events On December 1, 2025, pursuant to previous elections, the Board of Directors were granted 19,742 DSUs in settlement of approximately $80,000 of director fees. Subsequent to November 30, 2025, the Company granted 1,340,000 stock options to employees and consultants and 282,500 RSUs for long term incentives to executives with a vesting schedule of one-third vesting immediately on the grant date, one-third to vest on the one year anniversary of the grant date and one-third to vest on the second year anniversary of the grand date. Directors received an annual grant of 315,000 stock options, all vesting immediately. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

7) Fair value accounting Financial instruments measured at fair value are classified into one of three levels in the fair value hierarchy according to the significance of the inputs used in making the measurement. The three levels of the fair value hierarchy are as follows: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). The Companys financial instruments consist of cash and cash equivalents, accounts receivable, deposits, and accounts payable and accrued liabilities and the derivative liability. The fair value of the Companys financial instruments other than derivative liability approximates their carrying value due to the short-term nature of their maturity. The Companys 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 majority of the Companys cash and cash equivalents is held with two Canadian Financial Institutions and is uninsured as at May 31, 2026. The derivative liability …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

5) Leases (a) Right-of-use asset in thousands of dollars $ Balance as at November 30, 2025 117 Net amortization (21) Balance as at May 31, 2026 96 (b) Lease liabilities The Companys lease arrangement consists of an operating lease for the corporate office. On July 1, 2024, the Company entered into a four-year lease for office space expiring in June 2028. The lease has no extension option. The current monthly lease payment is approximately CDN $9,500 consisting of both base rent and variable operating costs. Total lease expense recorded within general and administrative expenses was comprised of the following components: in thousands of dollars Six months ended Six months ended May 31, 2026 May 31, 2025 $ $ Fixed rent expense 25 25 Variable rent expense 17 5 Total lease expense 42 30 Variable lease costs consist primarily of the Companys 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. For the six-month period ended May 31, 2025, variable lease costs have been reduced by a refund received for adjusted operating costs. As at May 31, 2026, the remaining lease term is 2.0 years. The discount rate used to measure the lease liability is 9% . Judgment was used in the determination of the incremental borrowing rate which included estimating the Companys credit rating. Supplemental cash flow information relating to our leases during the six-month period ended May 31 …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

New accounting pronouncements Issued and Not Effective In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09). ASU 2023-09 enhances the transparency and decision usefulness of income tax disclosures through changes to the rate reconciliation and income taxes paid information. The standard is effective beginning with the Companys Annual Report on Form 10-K for the fiscal year ended November 30, 2026, and subsequent interim periods, with early adoption permitted. The Company is evaluating the impact of ASU 2023-09 on its disclosures in the annual consolidated financial statements. In December 2025, the FASB issued ASU 2025-11 Interim Reporting (Topic 270): Narrow Scope Improvements (ASU 2025-11), to improve the guidance for interim reporting and clarify when that guidance is applicable. ASU 2025-11 provides a comprehensive list of required disclosures and also requires entities to disclose events since the last annual reporting period that have a material impact on the entity. ASU 2025-11 is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. For the Company, the guidance becomes effective in the first interim reporting period of the fiscal period of the fiscal year ended November 30, 2029. Early adoption is permitted. Management is currently evaluating ASU 2025-11 to determine its impac …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

10) Segment Information The Companys operating segments are reported in a manner consistent with the internal reporting provided to its Chief Operating Decision Makers (CODM). The CODM, who are responsible for allocating resources and assessing the performance of the operating segments, have been identified as the Chief Executive Officer and Chief Financial Officer. The CODM evaluates the Companys performance based on the overall results of the Company, including the performance of its investment Ambler Metals, which holds the Upper Kobuk Mineral Projects in Alaska. The Company uses a single U.S. GAAP-consistent measure of segment profit or loss with no reconciling items or measurement differences. Management has concluded that consolidated net income (loss) is the appropriate measure of segment of profit or loss. The CODM does not regularly receive or review discrete segment-level expense categories separate from those presented in the consolidated statements of operations. Accordingly, no significant segment expenses are separately disclosed, as all expenses are included within the consolidated statement of loss. …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

2) Summary of significant accounting policies Investment in Ambler Metals LLC The Company accounts for its investment in Ambler Metals as an investment in associate. For a variable interest entity (VIE) where Trilogy is not the primary beneficiary, we use the equity method of accounting. Management assesses the possibility of impairment in the carrying value of its equity method investment in Ambler Metals whenever events or circumstances indicate that the carrying amount of the investment may not be recoverable. Ambler Metals is a non-publicly traded equity investment owning exploration and development projects. Significant judgments are made in assessing the possibility of impairment. The Company assesses whether there has been a potential triggering event for other-than-temporary impairment by assessing the underlying assets of Ambler Metals for recoverability and assessing whether there has been a change in the development plan or strategy for the projects. If the Company concludes there is sufficient evidence of an other-than-temporary impairment, an assessment of fair value is performed. If the underlying assets are not recoverable, the Company will record an impairment charge equal to the difference between the carrying amount of the equity investment and its fair value. This assessment is subjective and requires consideration at each period end. Fair value measurement of derivative liability On October 6, 2025, the Company entered into a binding letter of intent with …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

6) Share capital Authorized: unlimited common shares, no par value in thousands of dollars, except share amounts Number of shares $ November 30, 2025 171,069,888 225,241 At-the-market offering, net of share issue costs 174,410 1,164 Exercise of options 253,334 404 Shares issued from restricted share units 1,248,007 1,210 May 31, 2026, issued and outstanding 172,745,639 228,019 On November 7, 2025, the Company entered into an equity distribution agreement with Cantor Fitzgerald & Co. and BMO Capital Markets Corp., as lead agents (the Lead Agents), and Canaccord Genuity LLC, National Bank of Canada Financial Inc. and Raymond James (USA) Ltd. (together with the Lead Agents, the Agents), for an at-the-market equity program pursuant to which the Company may offer and issue up to $200 million of common shares of the Company from time to time through the Agents (the Nov ATM Program). The offering is being made in the United States under the terms of the Companys registration statement on Form S-3 filed with the SEC (November Prospectus Supplement). No sales of common shares under this November Prospectus Supplement will be made in Canada, to anyone known by the Agents to be a resident of Canada or over or through the facilities of the TSX or any other exchange or market in Canada. During the three-month period ended February 28, 2026, the Company issued 174,410 common shares under its Nov ATM Program, resulting in gross proceeds of $1.19 million at an average price of $6.83 per …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing