Trilogy Metals has executed definitive agreements with the U.S. Department of War for a strategic equity investment totaling approximately US$35.6 million to advance exploration and development of the Upper Kobuk Mineral Projects in northwestern Alaska. The transaction comprises about US$17.8 million invested directly in Trilogy for 8,215,570 units priced at US$2.17 each, plus about US$17.8 million paid to South32 for the same number of Trilogy shares and a 10-year option to buy another 6,161,678 shares at US$0.01 each. Upon closing, the Department of War would own about 10% of Trilogy on a non-diluted basis. Trilogy expects the transaction to close in September 2026, subject to customary conditions. The funds will be reinvested in Ambler Metals, the company’s 50/50 joint venture with South32, which holds the projects. The agreement also provides the U.S. government with board representation, observer, consent and limited veto rights, while Trilogy accepts a temporary covenant limiting third-party borrowing above US$1 billion without approval. The required FOCI (foreign ownership, control or influence) review and relevant U.S. congressional authorizations have been completed.