Leases

3 Months Ended

Feb. 28, 2026

5) Leases

(a)

Right-of-use asset


		in thousands of dollars
		$
Balance as at November 30, 2025		117
Net amortization		(11)
Balance as at February 28, 2026		106

(b)	Lease liabilities

The Company’s 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
		Three months ended	Three months ended
		February 28, 2026	February 28, 2025
		$	$
Fixed rent expense		13	13
Variable rent expense		8	8
Total lease expense		21	21

Variable lease costs consist primarily of the Company’s 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.

As at February 28, 2026, the remaining lease term is 2.3 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 Company’s credit rating.

Supplemental cash flow information relating to our leases during the three-month period ended February 28, 2026, is as follows:

●

Cash paid for base rent included in the measurement of lease liabilities was approximately $12,000

Future minimum payments relating to the lease recognized in our balance sheet as of February 28, 2026 are as follows:


	* *	in thousands of dollars
		February 28, 2026
Fiscal year		$
2026		38
2027		51
2028		25
Total undiscounted lease payments		114
Effect of discounting		(11)
Present value of lease payments recognized as lease liability		103
Less: current portion of lease liability		(43)
Long-term portion of lease liability		60

Trilogy Metals Inc. 10-Q