VANCOUVER, Dec. 19, 2017 /CNW/ - Trilogy Metals Inc.
(TSX/NYSE American: TMQ) ("Trilogy Metals" or "the Company") announces that a wholly-owned subsidiary of South32
Limited (ASX/JSE/LSE: S32) ("South32") has become a new significant shareholder of the Company owning approximately
6.5 million common shares of the Company or approximately 6% of the outstanding common shares. Rick
Van Nieuwenhuyse, the Company's Chief Executive Officer has also increased his shareholdings of Trilogy Metals by
approximately 1.7 million shares, owning approximately 2.8 million common shares of the Company or approximately 2.6%.
South32 and Mr. Van Nieuwenhuyse have purchased shares from a previous shareholder.
Concurrently, Trilogy Metals has given South32 participation rights in future financings to participate at a minimum of 20% to
a maximum of 40% in future financings, private or public, to a maximum ownership of 19.9% in the Company. This right
expires if South32 does not participate for the lesser of 20%, or that number of shares that would not put them past a 19.9%
ownership interest in the Company, in any particular financing.
"We are excited to have South32 as a significant shareholder and joining our other large shareholders: Electrum, Paulson and
Baupost. Together with our strong supportive shareholders the Company expects to advance development of the Arctic and Bornite
projects in the Ambler mining district. It is an exciting time to be a Trilogy shareholder and I am pleased to personally
be ALL-IN on Ambler!", comments Rick Van Nieuwenhuyse, President and CEO of Trilogy Metals.
About Trilogy Metals
Trilogy Metals Inc. is a metals exploration company focused on exploring and developing the Ambler mining district located in
northwestern Alaska. It is one of the richest and most-prospective known copper-dominant
districts located in one of the safest geopolitical jurisdictions in the world. It hosts world-class polymetallic VMS deposits
that contain copper, zinc, lead, gold and silver, and carbonate replacement deposits which have been found to host high grade
copper mineralization. Exploration efforts have been focused on two deposits in the Ambler mining district - the Arctic VMS
deposit and the Bornite carbonate replacement deposit. Both deposits are located within the Company's land package that spans
approximately 143,000 hectares. The Company has an agreement with NANA Regional Corporation, Inc., a Regional Alaska Native
Corporation that provides a framework for the exploration and potential development of the Ambler mining district in cooperation
with local communities. Our vision is to develop the Ambler mining district into a premier North American copper producer.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain "forward-looking information" and "forward-looking statements" (collectively
"forward-looking statements") within the meaning of applicable Canadian and United States
securities legislation including the United States Private Securities Litigation Reform Act of 1995. All statements, other than
statements of historical fact, included herein, including, without limitation, the development of the Arctic and Bornite projects
in the Ambler mining district, are forward-looking statements. Forward-looking statements are frequently, but not always,
identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar
expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved.
Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to
be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important
factors that could cause actual results to differ materially from the Company's expectations include the uncertainties involving
the need for additional financing to explore and develop properties and availability of financing in the debt and capital
markets; uncertainties involved in the interpretation of drilling results and geological tests and the estimation of reserves and
resources; the need for cooperation of government agencies and native groups in the development and operation of properties as
well as the construction of the access road; the need to obtain permits and governmental approvals; risks of construction and
mining projects such as accidents, equipment breakdowns, bad weather, non-compliance with environmental and permit requirements,
unanticipated variation in geological structures, metal grades or recovery rates; unexpected cost increases, which could include
significant increases in estimated capital and operating costs; fluctuations in metal prices and currency exchange rates; and
other risks and uncertainties disclosed in the Company's Annual Report on Form 10-K for the year ended November 30, 2016 filed with Canadian securities regulatory authorities and with the United States Securities
and Exchange Commission and in other Company reports and documents filed with applicable securities regulatory authorities from
time to time. The Company's forward-looking statements reflect the beliefs, opinions and projections on the date the statements
are made. The Company assumes no obligation to update the forward-looking statements or beliefs, opinions, projections, or other
factors, should they change, except as required by law.
SOURCE Trilogy Metals Inc.
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