Trilogy Metals Inc.

Red flags

• The company generates no mining operating revenue and states it has limited financial resources, so continued exploration and development require external financing.
• The proposed DOW equity and warrant transaction is conditional on events outside the company's control and expires March 31, 2026 if conditions are unmet; the warrants could add up to 12.3 million shares at $0.01.
• Shares outstanding rose from 161.1 million to 171.1 million in 2025, and the company has authorization to issue up to $200 million of additional ATM shares.
• The DOW-related derivative liability increased by $22.6 million in 2025, producing a corresponding loss, highlighting material valuation and transaction-accounting volatility.
• Electrum has significant influence over shareholder matters, which can delay a change of control and limit other shareholders' ability to realize a transaction premium.