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|MANAGEMENTS DISCUSSION AND ANALYSIS
|                                    
|FOR THE YEARS ENDED                 
|DECEMBER 31, 2017 AND 2016          
|                                    
|Dated: March 8, 2018                
|                                    
|                                    
|                                    
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|2488 Dunwin Drive                   
|Mississauga, Ontario, L5L 1J9       
|www.trilliumtherapeutics.com        

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|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

ABOUT THIS MANAGEMENTS DISCUSSION AND ANALYSIS

All references in this managements discussion and analysis, or
MD&A to the Company, Trillium, we, us, or our refer to Trillium
Therapeutics Inc. and the subsidiaries through which it conducts its business,
unless otherwise indicated or the context requires otherwise.

The following MD&A is prepared as of March 8, 2018 for
Trillium Therapeutics Inc. for the years ended December 31, 2017 and 2016, and
should be read in conjunction with the audited consolidated financial statements
for the years ended December 31, 2017 and 2016, which have been prepared by
management in accordance with International Financial Reporting Standards, or
IFRS as issued by the International Accounting Standards Board, or IASB. Our
IFRS accounting policies are set out in note 3 of the annual audited
consolidated financial statements for the years ended December 31, 2017 and
2016. All amounts are in thousands of Canadian dollars, except per share amounts
and unless otherwise indicated. References to U.S. $ are to United States
dollars.

CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS

This MD&A contains forward-looking statements within the
meaning of applicable securities laws. All statements contained herein that are
not clearly historical in nature are forward-looking, and the words
anticipate, believe, expect, estimate, may, will, could,
leading, intend, contemplate, shall and similar expressions are
generally intended to identify forward-looking statements. Forward-looking
statements in this MD&A include, but are not limited to, statements with
respect to:

| |  | our expected future loss and accumulated deficit levels;                                                                                                                                                                                                                                   
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | our projected financial position and estimated cash burn
      rate;                                                                                                                                                                                                                       
| |  | our requirements for, and the ability to obtain, future
      funding on favorable terms or at all;                                                                                                                                                                                        
| |  | our projections for the SIRPαFc development plans and
      progress of each of our products and technologies, particularly with
      respect to the timely and successful completion of studies and trials and
      availability of results from such studies and trials;               
| |  | our expectations about our products safety and efficacy;                                                                                                                                                                                                                                  
| |  | our expectations regarding our ability to arrange for and
      scale up the manufacturing of our products and technologies;                                                                                                                                                               
| |  | our expectations regarding the progress, and the
      successful and timely completion, of the various stages of the regulatory
      approval process;                                                                                                                                   
| |  | our expectations about the timing of achieving milestones
      and the cost of our development programs;                                                                                                                                                                                  
| |  | our observations and expectations regarding the relative
      low binding of SIRPαFc to red blood cells, or RBCs compared to anti-CD47
      monoclonal antibodies and proprietary CD47-blocking agents and the
      potential benefits to patients;                                     
| |  | our ability to intensify the dose of TTI-621 with the
      goal of achieving increased blockade of CD47;                                                                                                                                                                                  
| |  | our plans to market, sell and distribute our products and
      technologies;                                                                                                                                                                                                              
| |  | our expectations regarding the acceptance of our products
      and technologies by the market;                                                                                                                                                                                            
| |  | our ability to retain and access appropriate staff,
      management and expert advisers;                                                                                                                                                                                                  
| |  | our expectations about the differentiated nature and
      potential for best-in-class product development programs and discovery
      research capabilities of Fluorinov Pharma Inc., or Fluorinov;                                                                                      
| |  | our ability to generate future product development
      programs with improved pharmacological properties and acceptable safety
      profiles using Fluorinov technology;                                                                                                                
| |  | our expectations about whether various clinical and
      regulatory milestones with an existing Fluorinov compound will be
      achieved;                                                                                                                                                
| |  | our expectations of the final quantum and form of any
      future contingent milestone payments related to the Fluorinov acquisition;                                                                                                                                                     
| |  | our expectations of the ability to secure the requisite
      approvals (including approvals from the Toronto Stock Exchange, or TSX,
      and the NASDAQ Capital Market, or NASDAQ) with respect to the issuance of
      any common shares in satisfaction of future milestone payments;

- 2 -

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|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

| |  | our ability to secure strategic partnerships with larger
      pharmaceutical and biotechnology companies;                                                                                                                                         
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | our strategy to acquire and develop new products and
      technologies and to enhance the safety and efficacy of existing products
      and technologies;                                                                                        
| |  | our expectations with respect to existing and future
      corporate alliances and licensing transactions with third parties, and the
      receipt and timing of any payments to be made by us or to us in respect of
      such arrangements; and
| |  | our strategy with respect to the protection of our
      intellectual property.                                                                                                                                                                    

All forward-looking statements reflect our beliefs and
assumptions based on information available at the time the assumption was made.
These forward-looking statements are not based on historical facts but rather on
managements expectations regarding future activities, results of operations,
performance, future capital and other expenditures (including the amount, nature
and sources of funding thereof), competitive advantages, business prospects and
opportunities.

By its nature, forward-looking information involves numerous
assumptions, inherent risks and uncertainties, both general and specific, known
and unknown, that contribute to the possibility that the predictions, forecasts,
projections or other forward-looking statements will not occur. In evaluating
forward-looking statements, readers should specifically consider various
factors, including the risks outlined under the heading Risk Factors in this
MD&A. Some of these risks and assumptions include, among others:

| |  | substantial fluctuation of losses from quarter to quarter
      and year to year due to numerous external risk factors, and anticipation
      that we will continue to incur significant losses in the future;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | uncertainty as to our ability to raise additional funding
      to support operations;                                                                                                                         
| |  | our ability to generate product revenue to maintain our
      operations without additional funding;                                                                                                           
| |  | the risks associated with the development of our product
      candidates which are at early stages of development;                                                                                            
| |  | reliance on third parties to plan, conduct and monitor
      our preclinical studies and clinical trials;                                                                                                      
| |  | our product candidates may fail to demonstrate safety and
      efficacy to the satisfaction of regulatory authorities or may not
      otherwise produce positive results;                                    
| |  | risks related to filing Investigational New Drug
      applications, or INDs, to commence clinical trials and to continue
      clinical trials if approved;                                                   
| |  | the risks of delays and inability to complete clinical
      trials due to difficulties enrolling patients;                                                                                                    
| |  | competition from other biotechnology and pharmaceutical
      companies;                                                                                                                                       
| |  | our reliance on the capabilities and experience of our
      key executives and scientists and the resulting loss of any of these
      individuals;                                                           
| |  | our ability to fully realize the benefits of
      acquisitions;                                                                                                                                               
| |  | our ability to adequately protect our intellectual
      property and trade secrets;                                                                                                                           
| |  | our ability to source and maintain licenses from
      third-party owners;                                                                                                                                     
| |  | the risk of patent-related litigation; and                                                                                                                                                                     
| |  | our expectations regarding our status as a passive
      foreign investment company, or PFIC,                                                                                                                  

all as further and more fully described under the heading Risk
Factors in this MD&A.

Although the forward-looking statements contained in this
MD&A are based upon what our management believes to be reasonable
assumptions, we cannot assure readers that actual results will be consistent
with these forward-looking statements.

Any forward-looking statements represent our estimates only as
of the date of this MD&A and should not be relied upon as representing our
estimates as of any subsequent date. We undertake no obligation to update any
forward-looking statement or statements to reflect events or circumstances after
the date on which such statement is made or to reflect the occurrence of
unanticipated events, except as may be required by securities legislation.

- 3 -

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|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

BUSINESS

Overview

We are a clinical stage immuno-oncology company developing
innovative therapies for the treatment of cancer. Our lead program, TTI-621, is
a SIRPαFc fusion protein that consists of the extracellular CD47-binding domain
of human signal regulatory protein alpha, or SIRPα, linked to the Fc region of a
human immunoglobulin G1, or IgG1. It is designed to act as a soluble decoy
receptor, preventing CD47 from delivering its inhibitory (do not eat) signal.
Neutralization of the inhibitory CD47 signal enables the activation of
macrophage anti-tumor effects by pro-phagocytic (eat) signals. The IgG1 Fc
region of TTI-621 may also assist in the activation of macrophages by engaging
Fc receptors. Two Phase I clinical trials evaluating TTI-621 are ongoing. We are
also developing a second SIRPαFc fusion protein, TTI-622. TTI-622 consists of
the extracellular CD47-binding domain of human SIRPα linked to a human
immunoglobulin G4, or IgG4 Fc region, which has a decreased ability to engage Fc
receptors than an IgG1 Fc. We plan to initiate a Phase I clinical trial in 2018.
Both SIRPαFc fusion proteins enable CD47 blockade with different levels of Fc
receptor engagement on macrophages and thus may find unique applications.

We also have a proprietary medicinal chemistry platform, using
unique fluorine chemistry, which permits the creation of new chemical entities
with improved pharmacological properties from validated drugs and drug
candidates. Our most advanced preclinical program stemming from this platform is
an epidermal growth factor receptor, or EGFR antagonist with increased uptake
and retention in the brain. In addition, a number of compounds directed at
undisclosed immuno-oncology targets are currently in the discovery phase.

Our Strategy

Our goal is to become a leading innovator in the field of
oncology by targeting immune-regulatory pathways that tumor cells exploit to
evade the host immune system.

| |  | Rapidly advance the clinical development of
      TTI-621. We are enrolling patients with advanced hematologic
      malignancies in the Phase Ib expansion phase of our first-in-human
      clinical trial of TTI-621 administered by intravenous infusion. We are
      also enrolling patients in our second Phase I clinical trial with
      intratumoral injection of TTI-621 in percutaneously accessible solid
      tumors and mycosis fungoides/Sézary syndrome.                                                                                                                                                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |  | Expand our TTI-621 clinical program to include
      additional cancer indications. Because CD47 is highly expressed by multiple
      liquid and solid tumors, and high expression is correlated with worse
      clinical outcomes, we believe SIRPαFc has potential to be effective in a
      variety of cancers. Our clinical development plans include a broad
      approach for the treatment of hematological malignancies, where we hope to
      identify one or more indications where TTI-621 may provide clinical
      benefit and then move rapidly to focused development programs for those
      indications. We have also expanded our trials to include combination
      treatment cohorts. We have employed a more targeted approach with solid
      tumors, focusing on intratumoral injection.
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |  | Maximize value of
      SIRPαFc through advancement of
      TTI-622. We plan to begin testing TTI-622 in a Phase I clinical
      trial this year. We expect to develop TTI-622 for combination therapy
      treatment where we believe it may have an advantage over competing
      IgG4-based antibodies due to its expected lack of RBC binding.                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |  | Build a pipeline of novel oncology products using
      our proprietary medicinal chemistry platform. We have several
      preclinical and discovery stage assets developed using our proprietary
      fluorine chemistry platform. We plan to advance these novel oncology
      products for internal development or out-license.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

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|TRILLIUM THERAPEUTICS INC.                
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|Managements
      Discussion and Analysis

Our Product Candidates



SIRPαFc

Blocking the CD47 do not eat signal using a
SIRPαFc decoy receptor

The immune system is the bodys mechanism to identify and
eliminate pathogens, and can be divided into the innate immune system and the
adaptive immune system. The innate immune system is the bodys first line of
defense to identify and eliminate pathogens and consists of proteins and cells,
such as macrophages, that identify and provide an immediate response to
pathogens. The adaptive immune system is activated by, and adapts to, pathogens,
creating a targeted and durable response. Cancer cells often have the ability to
reduce the immune systems ability to recognize and destroy them.

Macrophages are a type of white blood cell that can ingest and
destroy (phagocytose) other cells. Macrophage activity is controlled by both
positive eat and negative do not eat signals. Recently, a role for
macrophages in the control of tumors has been described. Tumor cells may express
eat signals (e.g., calreticulin) that make themselves visible to macrophages.
To counterbalance this increased visibility the tumor cells often express high
levels of CD47, which transmits a do not eat signal by binding SIRPα on the
surface of macrophages. We believe that the higher expression of CD47 on the
tumor cell helps it evade destruction by the macrophage by overwhelming any
activating eat signals.

Our lead program, TTI-621, is a novel SIRPαFc fusion protein
that harnesses the innate immune system by blocking the activity of CD47.
TTI-621 is a protein that consists of the CD47-binding domain of human SIRPα
linked to the Fc region of IgG1. It is designed to act as a soluble decoy
receptor, preventing CD47 from delivering its inhibitory signal. Neutralization
of the inhibitory CD47 signal enables the activation of macrophage anti-tumor
effects by the pro-phagocytic eat signals. The IgG1 Fc region of TTI-621 may
also assist in the activation of macrophages by engaging Fc receptors. A second
SIRPαFc fusion protein, TTI-622, is entering Phase I in the first half of 2018.
TTI-622 consists of the same CD47-binding domain of human SIRPα and is linked to
the Fc region of IgG4. The IgG4 Fc region of TTI-622 is expected to have a
decreased ability to engage activating Fc receptors compared to an IgG1 Fc.

- 5 -

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|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

In addition to their direct anti-tumor activity, macrophages
can also function as antigen-presenting cells and stimulate antigen-specific T
cells. Thus it is possible that increasing tumor cell phagocytosis after SIRPαFc
exposure may result in enhanced adaptive immunity. In support of this, CD47
antibody blockade has been recently shown to augment antigen presentation and
prime an anti-tumor cytotoxic T cell response in immune-competent mice. In 2016,
we presented data demonstrating that TTI-621 can augment antigen-specific T cell
responses in vitro. CD47 blockade has also been reported to promote
tumor-specific T cell responses through a dendritic cell-based mechanism,
although the effect of SIRPαFc on dendritic cells is currently unknown.

The figure below illustrates how SIRPαFc blocks the CD47 do
not eat signal and engages activating Fc receptors on macrophages, leading to
tumor cell phagocytosis, increased antigen presentation and enhanced T cell
responses.



By inhibiting the CD47 do not eat signal, we believe SIRPαFc
has the ability to promote the macrophage-mediated killing of tumor cells in a
broad variety of cancers both as a monotherapy and in combination with other
immune therapies. Both SIRPαFc fusion proteins enable CD47 blockade with
different levels of Fc receptor engagement on macrophages and thus may find
unique applications.

We believe that SIRPαFc has broad clinical potential in both
hematological and solid tumors. High expression of the CD47 do not eat signal
on tumor cells has been observed in acute myeloid leukemia, or AML,
myelodysplastic syndrome, or MDS, chronic myeloid leukemia, or CML, acute
lymphoblastic leukemia, or ALL, diffuse large B cell lymphoma, or DLBCL, chronic
lymphocytic leukemia, or CLL, follicular lymphoma, mantle cell lymphoma,
marginal zone lymphoma, multiple myeloma and in solid tumors including: bladder,
brain, breast, colon, leiomyosarcoma, liver, melanoma, ovarian and prostate. In
a number of these cancers high CD47 expression was shown to have negative
clinical consequences, correlating with more aggressive disease and poor
survival. In normal karyotype AML patients, for example, high CD47 expression
was correlated with worse event-free survival (6.8 vs. 17.1 months) and worse
overall survival (9.1 vs. 22.1 months) compared to low CD47 expression. These
data are consistent with CD47 providing a survival advantage to tumor cells.

- 6 -

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|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

In vitro studies with primary tumor samples obtained from AML,
MDS, multiple myeloma, B cell-ALL and T cell-ALL demonstrated that SIRPαFc
frequently triggered significant macrophage-mediated tumor cell phagocytosis
compared to control treatment. Similar results were observed with tumor cell
lines established from patients with B cell lymphoma and CML.

In vivo studies have demonstrated that TTI-621 exhibits
anti-tumor activity in xenograft models of AML, Burkitt lymphoma and DLBCL.
These results are supported by numerous studies demonstrating that antibody
blockade of CD47 has activity against a range of tumor xenografts.

SIRPαFc Key Attributes

| |  | Potential efficacy in a broad range of
      cancers. SIRPαFc blocks the tumors ability to transmit a do not
      eat signal allowing macrophages to destroy tumor cells; a mechanism that
      we believe could have broad applicability.      
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                      
| |  | Potential for use as a monotherapy and in
      combination with other therapies. We intend to develop our
      products as monotherapies as well as potentially for use in combination
      with other cancer immuno- therapies.                  
| |   |                                                                                                                                                                                                                                                      
| |  | May enhance both innate and adaptive immune
      response. SIRPαFc may enhance stimulation of tumor attacking T
      cells since macrophages, in addition to their role in phagocytosis, can
      also prime T cells through antigen presentation.

SIRPαFc Clinical Development
 TTI-621

We are enrolling patients with advanced hematologic
malignancies in a Phase Ib clinical trial. This two-part clinical trial was
designed as a multi-center, open-label Phase Ia/Ib trial, evaluating TTI-621 as
a single agent in patients with relapsed or refractory hematologic malignancies.
During the dose escalation phase the safety, tolerability, pharmacokinetics and
pharmacodynamics were characterized to determine the optimal dose for subsequent
enrollment in the expansion phase. To characterize potential changes in
hematologic parameters that might occur with blockade of CD47, the dose
escalation portion of the Phase I trial included lymphoma patients with
relatively normal hematologic parameters and acceptable marrow function. In
November 2016, a reasonably well-tolerated dose and schedule of SIRPαFc was
established in the dose escalation phase, and now, safety and antitumor activity
are being examined in expansion cohorts with advanced hematologic malignancies
including indolent B cell lymphoma, aggressive B cell lymphoma, T cell lymphoma,
Hodgkin lymphoma, CLL, multiple myeloma, AML, B cell-ALL, T cell-ALL, MDS and
myeloproliferative neoplasms. We also have a solid tumor cohort of small cell
lung cancer patients being treated with monotherapy. In two combination drug
cohorts, TTI-621 is being administered in combination with rituximab for
patients with CD20-positive lymphomas, and in combination with the PD-1
checkpoint inhibitor nivolumab in patients with Hodgkin lymphoma.

Data from the ongoing expansion phase were reported at the
American Society of Hematology 59th Annual Meeting in December 2017.
Weekly infusions of TTI-621 were shown to be well tolerated, and notably,
transient thrombocytopenia was attenuated after the first dose. These data,
combined with the previously reported results from the dose escalation phase,
demonstrate a favorable safety profile of intravenous TTI-621 in over 100
patients. Intravenous administration of TTI-621, particularly in combination
with rituximab, resulted in objective responses in 5 out of 18 evaluable
patients with heavily pre-treated, relapsed/refractory DLBCL, and several others
experienced prolonged progression-free intervals. Furthermore, preliminary
experience indicates that patients can be safely dose intensified beyond 0.2
mg/kg.

In our second multi-center, open-label Phase I trial, TTI-621
is being delivered by intratumoral injection in patients with relapsed and
refractory, percutaneously-accessible cancers. In the escalation phase, patients
were enrolled in sequential dose cohorts to receive intratumoral injections of
TTI-621 that increase in dose and dosing frequency to characterize safety,
pharmacokinetics, pharmacodynamics and preliminary evidence of antitumor
activity. In addition, detailed evaluation of serial, on-treatment tumor
biopsies of both injected and non-injected cancer lesions will help characterize
tumor microenvironment changes anticipated with CD47 blockade. Preliminary data
from the escalation phase were reported the American Society of
Hematology 59th Annual Meeting in December 2017. Intratumoral
injection was well tolerated, with no dose-limiting toxicity observed. A rapid
reduction in CAILS scores, which measures local lesion responses, was observed
in 9 out of 10 mycosis fungoides patients and a reduction in circulating
leukemic Sézary cells was observed in 3 out of 3 patients. Several patient
profiles were presented which demonstrate clinical responses in disfiguring
lesions, in some cases after a single dose of TTI-621. Collectively, the data
demonstrate that cutaneous T-cell lymphoma (CTCL) appears biologically
responsive to intratumoral injections of TTI-621. Patients are currently being
enrolled in the expansion phase of the trial in which they receive 10 mg TTI-621
three times per week for two weeks followed by weekly dosing, to further
characterize safety and efficacy. In addition, patients may receive intratumoral
TTI-621 in combination with other anti-cancer therapies (anti-PD-1 or
anti-PD-L1, pegylated interferon α2a, talimogene laherparepvec or
radiation).

- 7 -

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|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

SIRPαFc Clinical Development
 TTI-622

A second SIRPαFc fusion protein, TTI-622, is in preclinical
  development. TTI-622 consists of the same extracellular CD47-binding domain of
  human SIRPα as TTI-621 but has a different Fc region (IgG4 Fc instead of IgG1
  Fc) and is thus anticipated to have a different pharmacologic profile and enable
  greater exposures in patients than TTI-621. TTI-622 does not bind RBCs, like
  TTI-621, and we believe that this property could give TTI-622 best-in-class
  status among IgG4-based blocking agents currently in development. We plan to
  begin recruiting patients into a Phase I clinical trial in the first half of
  2018, with the goal of rapidly advancing this agent into combination studies.

SIRPαFc
Competition

There are a number of companies developing blocking agents to
the CD47-SIRPα axis, which can be broadly classified into four groups:

| |  | CD47-specific antibodies: Forty-Seven Inc.
      (Phase I), Celgene Corporation (Phase I), Surface Oncology (preclinical),
      and Arch Oncology (preclinical)
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | CD47 bispecific antibodies: Novimmune SA
      (CD47/CD19 bispecific antibody, preclinical) and Hummingbird BioSciences
      (preclinical)                     
| |  | Mutated high affinity
      SIRPαFc: Alexo Therapeutics (Phase I)                                                                                               
| |  | SIRPα-specific
      antibody: OSE Immunotherapeutics (preclinical)                                                                                             

We believe that our SIRPαFc fusion proteins have several
advantages over competitor products, which are summarized in the table
below.

- 8 -

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|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

Competitor Class
    Potential Advantages of Trilliums
      SIRPαFcsCD47-specific antibody
    Trilliums SIRPαFcs do not bind RBCs.
      IgG1 isotype of TTI-621 may confer greater potency than IgG4-based
      antibodies.CD47 bispecific antibody
    Bispecific is limited to tumors that express
      both target antigens. SIRPαFc may have more broad applicability.Mutated high affinity SIRPαFc (inactive Fc)
    Our SIRPαFcs do not bind RBCs.
      Our SIRPαFc fusion proteins, which are based on wild type sequences,
      are less likely to be immunogenic than mutated SIRPα.
      IgG1 isotype of TTI-621 and IgG4 isotype of TTI-622 may confer greater
      potency than mutated SIRPα linked to an inactive Fc.SIRPα-specific antibody
    SIRPα-specific antibodies bind macrophages and
      generally do not bind tumors. We believe that targeting the tumor cell
      directly using SIRPαFc is more likely to generate effective anti-tumor
      responses.


We have demonstrated that our SIRPαFc fusion proteins exhibit
minimal binding to RBCs in contrast to CD47-specific antibodies and a mutated
high affinity SIRPαFc. We believe that this property confers several possible
advantages including avoidance of drug-induced anemia, avoidance of the antigen
sink effect (i.e., removal of drug from circulation by RBCs) and
non-interference with laboratory blood typing tests. It should be noted that
TTI-622 shares the same CD47-binding domain as TTI-621 and preclinical studies
have shown that it also exhibits minimal binding to human RBCs. Thus, we
anticipate that TTI-622, like TTI-621, will not induce anemia in patients.

Combination Therapy

We believe that SIRPαFc enhancement of macrophage activity, and
possibly T cell responses, could be synergistic with other immune-mediated
therapies. Published studies conducted by third parties provide evidence that
SIRPαFc may be useful in combination with approved anti-cancer antibodies (e.g.
Rituxan®, Herceptin®, Campath®, and Erbitux®). Since many cancer antibodies work
at least in part by activating cells of the innate immune system, it may be
possible to enhance the potency of these agents by blocking the negative do not
eat CD47 signal that tumor cells deliver to macrophages. We hypothesize that
SIRPαFc may act synergistically with other immunological agents, including T
cell checkpoint inhibitors (e.g. pembrolizumab and nivolumab), cancer vaccines,
oncolytic viruses or chimeric antigen receptor, or CAR T cells.

Fluorine Chemistry Platform

Our medicinal chemistry platform uses proprietary
fluorine-based chemistry to modify specific properties of validated drug
candidates to yield new chemical entities. We believe the potency and/or safety
of both existing pharmacophores and historically inaccessible chemical
structures may be enhanced using our technology. This chemistry platform has
been utilized to establish two preclinical programs, an EGFR inhibitor and a
bromodomain and extra-terminal, or BET bromodomain inhibitor, and a number of
compounds directed at undisclosed immuno-oncology targets are currently in the
discovery phase.

- 9 -

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|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

EGFR Inhibitor (TTI-2341)

A combination of molecular design, novel fluorine-based
chemical synthesis, and extensive biological testing led to the identification
of TTI-2341, a novel brain-penetrant, second generation, covalent EGFR
inhibitor. EGFR is a validated drug target in oncology but the use of EGFR
inhibitors has been limited by two factors. First, toxicities can arise from
indiscriminate reactivity with off-target proteins. Second, the low central
nervous system, or CNS penetration of existing EGFR inhibitors limits their use
for CNS indications such as glioblastoma multiforme and brain metastasis from
lung cancer. The incorporation of fluorine into small molecules is known to
minimize the formation of highly reactive metabolites and improve blood brain
barrier, or BBB penetration and thus this strategy has the potential to overcome
the major limitations of existing EGFR inhibitors.

We have benchmarked TTI-2341 against a second- and
third-generation EGFR inhibitor (both approved for the treatment of non-small
cell lung cancer). This comparison included measurements of BBB penetration, as
well as retention and the ratio of free to bound drug in the brain. We are
currently evaluating different options for TTI-2341 development, including
possible partnerships.

BET Bromodomain Inhibitor (TTI-281)

Bromodomains recognize and bind to DNA-associated proteins that
have been epigenetically modified. These epigenetic readers act as scaffolds
for the recruitment of proteins involved in the initiation of gene expression.
Bromodomain-containing proteins regulate genes that play roles in proliferation,
cell cycle progression and apoptosis. Members of the BET subfamily have been
implicated in controlling the transcription of c-Myc, a proto-oncogene that
contributes to the pathogenesis of many cancers but has proven to be difficult
to target pharmacologically.

TTI-281 selectively binds the BET proteins BRD2, BRD3 and BRD4
and is two- to six-fold more potent than a leading bromodomain inhibitor. It is
strongly cytotoxic to AML cells but not to normal hematopoietic cells, and
reversibly suppresses the expression of c-Myc. TTI-281 has demonstrated oral
efficacy in xenograft models of human leukemia and myeloma. We have completed
our planned preclinical development program for TTI-281. We believe that TTI-281
represents a unique opportunity to reduce the expression of c-Myc, and are
seeking a partner for further development of TTI-281.

Other Developments

Acquisition of Fluorinov

On January 26, 2016, we acquired all the outstanding shares of
Fluorinov, a privately-held oncology company that has developed a proprietary
medicinal chemistry platform using unique fluorine chemistry, which permits the
creation of new chemical entities from validated drugs and drug candidates with
improved pharmacological properties, potentially leading to increased safety and
efficacy. We expect Fluorinovs fluorine-based chemistry platform will provide
us with an internal drug discovery engine. Fluorinovs preclinical pipeline of
oncology assets included potent, orally-available, bromodomain and proteasome
inhibitors, and EGFR antagonists with increased uptake in the brain.

We anticipate that future cancer treatments will be dominated
by combination therapies that may often involve combining biologics and small
molecules. The acquisition of our own small molecule platform with opportunity
for oral drug delivery may provide us with new drug candidates that we may
either develop in-house or out-license. According to Wang et al. Chem Rev. 2014,
114 (4), approximately 25% of all marketed drugs contain fluorine. The benefits
of fluorine include blocking sites of metabolism to increase drug half-life and
reduce toxicity, lipophilicity that improves oral absorption and BBB
penetration, and electronegativity that alters chemical properties to improve
binding and potency. We believe that the Fluorinov acquisition reduces the risks
to which we are subject and diversifies us for the longer term.

- 10 -

---

|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

The upfront consideration for Fluorinov was $10,000 less the
working capital deficiency of $134. We may also incur up to $35,000 of future
payments contingent on us achieving certain clinical and regulatory milestones
with an existing Fluorinov compound. The amount of contingent consideration
recognized by us as of the acquisition date was $1,750 and has been classified
as other liabilities on the consolidated statement of financial position. The
fair value of the contingent consideration was calculated using a discounted
cash flow approach, where a risk-adjusted discount rate was applied to future
cash flows. We also have an obligation to pay royalty payments on future sales
of such compounds.

At our discretion, up to 50% of the future contingent payments
can be satisfied through the issuance of our common shares, provided that the
aggregate number of common shares issuable under such payments will not exceed
1,558,447 common shares unless shareholder approval has first been obtained. In
addition, any such future share issuance remains subject to final approval from
our board of directors and receipt of any requisite approvals under the
applicable rules of the TSX and NASDAQ. We have also committed to use
commercially reasonable efforts to monetize Fluorinovs CNS assets and share 50%
of the net proceeds with Fluorinov shareholders.

The acquisition of Fluorinov was considered a related party
transaction as two of our directors were determined to be related parties of
Fluorinov. One director was a director of Fluorinov and had an ownership
position in Fluorinov at the time of acquisition of less than 2%, and the second
director was a director of an entity that was a beneficiary of a trust that was
a shareholder and debenture holder of Fluorinov. The two directors declared
their conflict of interest and abstained from all discussions and decisions
concerning the Fluorinov acquisition. Accordingly, we determined that the
consideration paid on the acquisition was made on terms equivalent to those that
prevail in arms length transactions.

Collaboration with University Health Network and the
Hospital for Sick Children

We entered into a collaboration agreement with University
Health Network, or UHN, and the Hospital for Sick Children, or HSC, to fund and
undertake a research program entitled SIRPαFc: Translating Genomics Research
Into a Novel Cancer Immunotherapy. This project was approved for funding by
Genome Canada under the Genomic Applications Partnership Program. In addition,
The Ontario Ministry of Research and Innovation is supporting the project with a
grant matching Genome Canadas contribution, providing the collaboration with a
3-year budget of approximately $3,400. This matching funding is allowing us to
expand our translational research efforts, focusing primarily on AML. Our
contribution to the overall budget of this program is $886 in cash and $478 in
kind over three years.

Plan of Operations

Our primary focus is the advancement of our Phase I clinical
trial of SIRPαFc in patients with advanced hematologic malignancies and our
Phase I clinical trial in patients with relapsed and refractory,
percutaneously-accessible cancers to identify one or more cohorts of patients
that respond to TTI-621 treatment. We plan further focused  clinical
development of promising indications. We continue to advance our combination
treatment strategy incorporating combination treatment cohorts in our TTI-621
clinical trials and our TTI-622 Phase I trial is on track to begin recruiting
patients in the first half of 2018.

We continue to advance our small molecule program in internal
development and pursue partnering activities.

Legal Proceedings

To our knowledge, there have not been any legal or arbitration
proceedings, including those relating to bankruptcy, receivership or similar
proceedings, those involving any third party, and governmental proceedings
pending or known to be contemplated, which may have, or have had in the recent
past, significant effect on our financial position or profitability.

- 11 -

---

|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

Also, to our knowledge, there have been no material proceedings
in which any director, any member of senior management, or any of our affiliates
is either a party adverse to us or any of our subsidiaries or has a material
interest adverse to us or any of our subsidiaries.

RESULTS OF OPERATIONS

For the three months and years ended December 31, 2017 and
2016

Overview

Since inception, we have incurred losses while advancing the
research and development of our products. Net loss for the year ended December
31, 2017 of $45,088 was higher than the loss of $31,733 for the year ended
December 31, 2016. The net loss was higher due mainly to higher research and
development expenses of $7,346 in 2017 with two active TTI-621 phase I trials
and manufacturing expenses for TTI-622, the recognition of a deferred tax
recovery in the year ended December 31, 2016 related to the acquisition of
Fluorinov of $3,690, and a higher net foreign currency loss of $2,715 in 2017.

Net loss for the three months ended December 31, 2017 of
$10,658 was higher than the loss of $9,024 for the three months ended December
31, 2016 due mainly to higher research and development expenses of $549 with two
active phase I trials for TTI-621, and a higher net foreign currency loss of
$896.

Research and Development

Research and development expenses by program for the three
months and years ended December 31, 2017 and 2016 were as follows:

|                        |  | Three months |  |  | Three months |  |  |              |  |  |              | 
|----------------------- |  | ------------ |  |  | ------------ |  |  | ------------ |  |  | ------------ | 
|                        |  | ended        |  |  | ended        |  |  | Year ended   |  |  | Year ended   | 
|                        |  | December 31, |  |  | December 31, |  |  | December 31, |  |  | December 31, | 
|                        |  | 2017         |  |  | 2016         |  |  | 2017         |  |  | 2016         | 
|                        |  | **$**        |  |  | $            |  |  | **$**        |  |  | $            | 
|                        |  |              |  |  |              |  |  |              |  |  |              | 
|SIRPαFc                 |  | 9,003        |  |  | 7,212        |  |  | 31,052       |  |  | 22,412       | 
|Small molecule programs |  | 805          |  |  | 2,040        |  |  | 6,041        |  |  | 7,334        | 
|Other                   |  | 3            |  |  | 10           |  |  | 42           |  |  | 43           | 
|Total(1)                |  | 9,811        |  |  | 9,262        |  |  | 37,135       |  |  | 29,789       | 

Note:

|(1) | Research and development expenditures in the above table
      include all direct and indirect costs for the programs, personnel costs,
      intellectual property, amortization, share-based compensation and research
      and development overhead, and is net of government assistance. Research
      and development overhead costs have been allocated to the programs based
      mainly on personnel time spent on the programs.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

During 2017 and 2016, most of our resources were focused on the
development of our SIRPαFc program. For the year ended December 31, 2017,
SIRPαFc research and development costs were higher than the same period in the
prior year due mainly to costs related to the two phase I clinical trials and
higher staffing. Small molecule program expenses were lower than the prior year
as we completed most of our targeted preclinical development studies for the
bromodomain and EGFR inhibitors in the first half of 2017. Included in the small
molecule program expenses for the years ended December 31, 2017 and 2016 was
amortization of intangible assets acquired of $3,860 and $3,684, respectively.

- 12 -

---

|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

Components of research and development expenses for the three
months ended December 31, 2017 and 2016 were as follows:

|                                                                  |  | 2017   |   |  | 2016  |  
|----------------------------------------------------------------- |  | ------ | - |  | ----- | -
|                                                                  |  | **$**  |   |  | $     |  
|                                                                  |  |        |   |  |       |  
|Research and development
      programs excluding the below items |  | 6,241  |   |  | 5,243 |  
|Salaries, fees and short-term benefits                            |  | 2,675  |   |  | 1,784 |  
|Share-based compensation                                          |  | 713    |   |  | 940   |  
|Amortization of intangible assets                                 |  | 965    |   |  | 965   |  
|Change in fair value of
      contingent consideration            |  | (1,012 | ) |  | 209   |  
|Depreciation of property and equipment                            |  | 243    |   |  | 195   |  
|Tax credits                                                       |  | (14    | ) |  | (74   | )
|                                                                  |  | 9,811  |   |  | 9,262 |  

Components of research and development expenses for the years
ended December 31, 2017 and 2016 were as follows:

|                                                                  |  | 2017   |   |  | 2016   |  
|----------------------------------------------------------------- |  | ------ | - |  | ------ | -
|                                                                  |  | **$**  |   |  | $      |  
|                                                                  |  |        |   |  |        |  
|Research and development
      programs excluding the below items |  | 22,831 |   |  | 16,084 |  
|Salaries, fees and short-term benefits                            |  | 7,969  |   |  | 6,256  |  
|Share-based compensation                                          |  | 2,911  |   |  | 3,192  |  
|Amortization of intangible assets                                 |  | 3,860  |   |  | 3,684  |  
|Change in fair value of
      contingent consideration            |  | (1,158 | ) |  | 209    |  
|Depreciation of property and equipment                            |  | 849    |   |  | 604    |  
|Tax credits                                                       |  | (127   | ) |  | (240   | )
|                                                                  |  | 37,135 |   |  | 29,789 |  

The increase in research and development program expenses for
the three months ended December 31, 2017 compared to the same period last year
was due mainly to an increase in SIRPαFc clinical trial costs of $2,475, which
was partially offset by lower SIRPαFc manufacturing costs of $808 and lower
spending related to the bromodomain inhibitor and EGFR inhibitor programs of
$426. Salaries, fees and short-term benefits increased in the three months ended
December 31, 2017 due to higher staffing and salaries compared to the same
period in 2016. Share-based compensation costs and amortization of intangible
assets and depreciation of property and equipment were comparable to the prior
year period. The fair value measurement of contingent consideration decreased
due mainly to the lessened probability of reaching the potential milestones.

The increase in research and development program expenses for
the year ended December 31, 2017 over the prior year was due mainly to an
increase in SIRPαFc clinical trial costs of $8,379, partially offset by lower
bromodomain inhibitor and EGFR inhibitor program expenses of $1,393. Salaries,
fees and short-term benefits increased in the year ended December 31, 2017 due
to higher staffing and salaries compared to 2016. Share-based compensation and
amortization of intangible assets were comparable to the prior year. The fair
value measurement of contingent consideration decreased due mainly to the
lessened probability of reaching the potential milestones and resulted in an
expense reversal of $1,158 for the year ended December 31, 2017. Depreciation of
property and equipment increased in the year ended December 31, 2017 due mainly
to leasehold improvements and lab equipment purchased in 2016 and 2017 for our
new leased facility.

- 13 -

---

|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

General and Administrative

Components of general and administrative expenses for the three
months ended December 31, 2017 and 2016 were as follows:

|                                                                    |  | 2017  |  |  | 2016 |  
|------------------------------------------------------------------- |  | ----- |  |  | ---- | -
|                                                                    |  | **$** |  |  | $    |  
|                                                                    |  |       |  |  |      |  
|General and administrative
      expenses excluding the below items |  | 407   |  |  | 429  |  
|Salaries, fees and short-term benefits                              |  | 603   |  |  | 524  |  
|Change in fair value of
      deferred share units                  |  | 154   |  |  | (178 | )
|Share-based compensation                                            |  | 90    |  |  | 142  |  
|                                                                    |  | 1,254 |  |  | 917  |  

Components of general and administrative expenses for the years
ended December 31, 2017 and 2016 were as follows:

|                                                                    |  | 2017  |  |  | 2016  |  
|------------------------------------------------------------------- |  | ----- |  |  | ----- | -
|                                                                    |  | **$** |  |  | $     |  
|                                                                    |  |       |  |  |       |  
|General and administrative
      expenses excluding the below items |  | 1,469 |  |  | 1,790 |  
|Salaries, fees and short-term benefits                              |  | 2,038 |  |  | 1,824 |  
|Change in fair value of
      deferred share units                  |  | 10    |  |  | (178  | )
|Share-based compensation                                            |  | 344   |  |  | 497   |  
|                                                                    |  | 3,861 |  |  | 3,933 |  

General and administrative expenses for the three months ended
December 31, 2017 of $407 were comparable to the prior year. Salaries, fees and
short-term benefits increased mainly due to higher staffing levels. The change
in the fair value of deferred share units, or DSUs, for the fourth quarter of
2017 reflected a higher common share price at December 31, 2017 relative to the
beginning of the quarter.

General and administrative expenses for the years ended
December 31, 2017 of $1,469 were lower due mainly to higher professional fees
incurred in 2016 relating the acquisition of Fluorinov. Salaries, fees and
short-term benefits increased in the year ended December 31, 2017 due mainly to
higher administrative staffing.

Finance income and costs, foreign exchange gains and
losses, and income taxes

Finance income for the three months and year ended December 31,
2017 were higher than the prior year comparable periods due mainly to higher
cash and marketable security balances, and higher investment yields.

Finance costs for the three months and year ended December 31,
2017 were comparable to the prior year periods.

The net foreign currency gain for the three months ended
December 31, 2017 of $167 was lower than the net foreign exchange gain in the
comparable prior year quarter. The net foreign currency loss for each of the
years ended December 31, 2017 and 2016 of  $4,742 and $2,027, respectively, reflected a strengthening of the Canadian
dollar versus the U.S. dollar while holding net U.S. dollar denominated
assets.

We recorded a deferred tax recovery in the year ended December
31, 2016 related to the acquisition of Fluorinov of $3,690. There was no
comparable amount in 2017.

- 14 -

---

|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

Liquidity and Capital Resources

Cash, working capital, and debt

Since inception, we have financed our operations primarily from
sales of equity, proceeds from the exercise of warrants and stock options and
from interest income on funds available for investment. Our primary capital
needs are for funds to support our scientific research and development
activities including staffing, facilities, manufacturing, preclinical studies
and clinical trials, administrative costs and for working capital.

We have experienced operating losses and cash outflows from
operations since incorporation, will require ongoing financing in order to
continue our research and development activities and we have not earned
significant revenue or reached successful commercialization of our products. Our
future operations are dependent upon our ability to finance our cash
requirements which will allow us to continue our research and development
activities and the commercialization of our products. There can be no assurance
that we will be successful in continuing to finance our operations.

In June 2017, we completed an underwritten public offering of
common shares and non-voting convertible preferred shares in the United States.
In the offering, we sold 2,949,674 common shares and 3,250,000 Series II
Non-Voting Convertible First Preferred Shares at a price of U.S. $5.00 per
share. The gross proceeds from this offering were $41,847 (U.S. $30,998) before
deducting offering expenses of $2,856.

The Series II Non-Voting Convertible First Preferred Shares
sold in the offering are non-voting and are convertible into common shares, on a
one-for-one basis (subject to adjustment), at any time at the option of the
holder, subject to certain restrictions on conversion. Holders may not convert
Series II Non-Voting Convertible First Preferred Shares into common shares if,
after giving effect to the exercise of conversion, the holder and its joint
actors would have beneficial ownership or direction or control over common
shares in excess of 4.99% of the then outstanding common shares. This limit may
be raised at the option of the holder on 61 days prior written notice: (i) up
to 9.99%, (ii) up to 19.99%, subject to clearance of a personal information form
submitted by the holder to the TSX, and (iii) above 19.99%, subject to approval
by the TSX and shareholder approval.

In connection with the acquisition of Series II First Preferred
Shares in this offering at the public offering price by an existing
institutional shareholder, we entered into an investment agreement with such
shareholder. The investment agreement provides this shareholder the right, but
not the obligation, for so long as it beneficially owns at least 10% of the
adjusted share capital of the Company, calculated on a fully-diluted basis, to
nominate one person for election to our board of directors, subject to meeting
applicable legal and stock exchange requirements and we have the obligation to
appoint such director, whose term will run until the next annual meeting of
shareholders. Thereafter, we are required to nominate such director to be a
director at any meeting of shareholders called for the purposes of electing
directors and to use commercially reasonable efforts to ensure that such
director is elected to the board of directors, including soliciting proxies in
support of his or her election and taking the same actions taken by us to ensure
the election of the other nominees selected by the board of directors for
election to the board of directors. In addition, until such time as the existing
shareholder exercises its right to nominate a member of our board of directors,
and so long as the existing shareholders nominee is not an employee, officer,
director or limited partner of such shareholder, then such shareholder shall
have the right, but not the obligation, to appoint an observer to our board of
directors, who must be an employee, officer or director of such shareholder. The
observer will have the right to receive notice of and attend the meetings of the
board of directors, and will have the right to address the board of directors at
any of its meetings, but will not have any right to vote at any meeting of the
board of directors. In addition, we have agreed to provide this existing
shareholder with certain registration rights in the event that such shareholder
and its joint actors are deemed to be affiliates for purposes of applicable
U.S. securities laws.

In December 2017, the Company completed a non-brokered private
placement financing and sold 1,950,000 common shares and 400,000 Series II
Non-Voting Convertible Preferred Shares at a price of U.S. $8.50 per share
yielding gross proceeds of $25,338 (U.S. $19,975) before deducting offering
expenses of $1,784.

- 15 -

---

|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

Our cash and cash equivalents and marketable securities, and
working capital at December 31, 2017 were $81,791 and $68,900, respectively
compared to $50,473 and $45,486, respectively at December 31, 2016. The increase
in cash and cash equivalents and marketable securities, and working capital was
due mainly to the June and December 2017 financings raising net proceeds of
$62,526 partially offset by cash used in operations of approximately $27,038 and
an unrealized foreign exchange loss of $3,748. Accounts payable and accrued
liabilities as at December 31, 2017 of $14,092 were higher than the balance of
$5,513 at December 31, 2016 due mainly to timing of payments related to our
clinical trials.

We are indebted to the Federal Economic Development Agency for
Southern Ontario, or FedDev, under a non-interest bearing contribution agreement
and are making monthly repayments of $10 through November 2019. As at December
31, 2017 and 2016, the balance repayable was $211 and $335 respectively. The
loan payable was discounted using an estimated market interest rate of 15%.
Interest expense accretes on the discounted loan amount until it reaches its
face value at maturity.

As at December 31, 2017 and 2016, we had a deferred lease
inducement of $407 and $438, respectively, for our facility lease. The
inducement benefit is being recognized over the expected term of the lease.

As at December 31, 2017 and 2016, we had a long-term liability
of $801 and $1,959, respectively, related to contingent consideration on the
acquisition of Fluorinov. For the year ended December 31, 2017, the
remeasurement of the fair value of the contingent consideration recognized an
increase in the time estimate and increased risk of reaching the potential
milestones, resulting in an expense reversal of $1,158 which is included in
  research and development expenses.

Cash flows from operating activities

Cash used in operating activities increased to $27,038 for the
year ended December 31, 2017, compared to $22,852 for the year ended December
31, 2016, due mainly to higher research and development expenses, partially
offset by a higher accounts payable balance.

Cash flows from investing activities

Cash used in investing activities totaled $57,465 for the year
ended December 31, 2017, compared to $12,541 for the year ended December 31,
2016. The increase was due to the purchase of marketable securities in 2017.
Cash used for investment activities in 2016 related mainly to the purchase of
Fluorinov.

Cash flows from financing activities

Cash provided by financing activities totaled $62,575 for the
year ended December 31, 2017, compared to cash provided by financing activities
of $344 for the year ended December 31, 2016. The increase was due mainly to the
cash proceeds raised in the June 2017 and December 2017 financings.

Contractual Obligations and Contingencies

We enter into research, development and license agreements in
the ordinary course of business where we receive research services and rights to
proprietary technologies. Milestone and royalty payments that may become due
under various agreements are dependent on, among other factors, clinical trials,
regulatory approvals and ultimately the successful development of a new drug,
the outcome and timing of which is uncertain.

Under the license agreement for SIRPαFc, we have future
contingent milestones payable of $25 related to successful patent grants, $200
and $300 on the first patient dosed in Phase II and III clinical trials
respectively, and regulatory milestones on their first achievement totaling
$5,000. We are also required to pay 20% of any sublicensing revenues to the
licensors on the first $50,000 of sublicensing revenues, and pay 15% of any
sublicensing revenues to the licensors after the first $50,000 of sublicensing
revenue received.

- 16 -

---

|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

Under two agreements with Catalent pursuant to which we
acquired the right to use a proprietary expression system for the manufacture of
two SIRPαFc constructs, we have future contingent milestones on pre-marketing
approval of up to U.S. $875 and aggregate sales milestone payments of up to U.S.
$28,750 for each agreement.

In connection with our acquisition of all the outstanding
shares of Fluorinov, we are obligated to pay up to $35,000 of additional future
payments that are contingent on us achieving certain clinical and regulatory
milestones with an existing Fluorinov compound. We will also have an obligation
to pay royalty payments on future sales of such compounds.

We periodically enter into research and license agreements with
third parties that include indemnification provisions customary in the industry.
These guarantees generally require us to compensate the other party for certain
damages and costs incurred as a result of claims arising from research and
development activities undertaken by or on our behalf. In some cases, the
maximum potential amount of future payments that could be required under these
indemnification provisions could be unlimited. These indemnification provisions
generally survive termination of the underlying agreement. The nature of the
indemnification obligations prevents us from making a reasonable estimate of the
maximum potential amount we could be required to pay. Historically, we have not
made any indemnification payments under such agreements and no amount has been
accrued in our consolidated financial statements with respect to these
indemnification obligations.

Other than as disclosed below, we did not have any contractual
obligations relating to long-term debt obligations, capital (finance) lease
obligations, operating lease obligations, purchase obligations or other
long-term liabilities reflected on our balance sheet as at December 31, 2017:

|                                                                    |   | Payment due by period | 
|------------------------------------------------------------------- | - | --------------------- | 
|                                                                    |   |                       | 
|Contractual Obligations(1)(2)                                       |   | Total                 | 
|Long-Term Debt
      Obligations(3)                                 | $ | 211                   | 
|Operating Lease Obligations(4)                                      |   | 2,048                 | 
|Purchase
      Obligations(5)                                       |   | 9,584                 | 
|Other Long-Term Liabilities Reflected on our
      Balance Sheet(6) |   | 1,115                 | 
|                                                                    | $ | 12,958                | 

Notes:

| | (1) | Contractual obligations in the above table do not include
      amounts in accounts payable and accrued liabilities on our balance sheet
      as at December 31, 2017. Annual technology license fees currently
      approximating $50 are not included in the above table.                                                              
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (2) | Contingent milestones under the UHN license agreement and
      the Catalent expression system agreements are not included in the above
      table.                                                                                                                                                                                       
| | (3) | Amounts due to FedDev repayable in equal monthly
      installments of $10 through November 2019.                                                                                                                                                                                                                                          
| | (4) | Includes operating lease obligations for laboratory and
      office facilities.                                                                                                                                                                                                                                                           
| | (5) | Purchase obligations include all non-cancellable
      contracts, and all cancellable contracts with $100 or greater remaining
      committed at the period end including agreements related to the conduct of
      our TTI- 621 Phase I clinical trials, TTI-622 studies, preclinical
      collaborations and manufacturing activities.
| | (6) | Includes $801 of contingent consideration related to
      potential future payments of up to $35,000 based on the achievement of
      clinical and regulatory milestones with an existing Fluorinov
    compound.                                                                                                                        

- 17 -

---

|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

Description of Share Capital

The continuity of the number of our issued and outstanding
common and preferred shares for the years ended December 31, 2016 and 2017, and
to the date of this MD&A is presented below:

|                                                       |  | Number of Series I  |   |  | Number of Series II |   |  | Number of     | 
|------------------------------------------------------ |  | ------------------- | - |  | ------------------- | - |  | ------------- | 
|                                                       |  | Preferred Shares(1) |   |  | Preferred Shares(2) |   |  | Common Shares | 
|                                                       |  |                     |   |  |                     |   |  |               | 
|Balance at December 31, 2015                           |  | 53,788,579          |   |  | 1,077,605           |   |  | 7,796,137     | 
|Issued on exercise of warrants                         |  | -                   |   |  | -                   |   |  | 30,301        | 
|Preferred shares converted to common shares            |  | (562,388            | ) |  | -                   |   |  | 18,746        | 
|Balance at December 31, 2016                           |  | 53,226,191          |   |  | 1,077,605           |   |  | 7,845,184     | 
|Issued in public offering                              |  | -                   |   |  | 3,250,000           |   |  | 2,949,674     | 
|Issued in private placement                            |  | -                   |   |  | 400,000             |   |  | 1,950,000     | 
|Issued on exercise of
      warrants                   |  | -                   |   |  | -                   |   |  | 13,332        | 
|Preferred shares converted to common shares            |  | (900,364            | ) |  | (359,202            | ) |  | 389,214       | 
|Balance at December 31, 2017 and the date of this MD&A |  | 52,325,827          |   |  | 4,368,403           |   |  | 13,147,404    | 

Notes:

| | (1) | Convertible at a ratio of 30 Series I Preferred Shares
      for one common share. 
| | --- | -----------------------------------------------------------------------------------
| | (2) | Convertible at a ratio of one Series II Preferred Share
      for one common share.

Share capital issued  for the year ended December 31,
2017

In June 2017, we completed an underwritten public offering of
common shares and non-voting convertible preferred shares in the United States.
In the offering, we sold 2,949,674 common shares and 3,250,000 Series II
Non-Voting Convertible First Preferred Shares at a price of U.S. $5.00 per
share. The gross proceeds from this offering were $41,847 (U.S. $30,998) before
deducting offering expenses of $2,856.

Concurrently with the closing of the offering, we amended the
terms of certain common share purchase warrants held by an existing
institutional investor. The warrants were previously exercisable to acquire up
to 1,190,476 common shares at an exercise price of $8.40 per common share until
December 13, 2018 (in each case after giving effect to the 30:1 consolidation
previously effected by us). Pursuant to the amendment, each warrant, or
Preferred Warrant, will now be exercisable, at the discretion of the holder, to
acquire either one common share or one Series II Non-Voting Convertible First
Preferred Share. All other terms of the Preferred Warrants (including the
aggregate number of shares issuable on exercise of the Preferred Warrants, the
exercise price and the expiry date) remain unchanged.

In December 2017, the Company completed a non-brokered private
placement financing and sold 1,950,000 common shares and 400,000 Series II
Non-Voting Convertible Preferred Shares at a price of U.S. $8.50 per share
yielding gross proceeds of $25,338 (U.S. $19,975) before deducting offering
expenses of $1,784.

During the year ended December 31, 2017, 13,332 common shares
were issued on the exercise of 399,980 warrants for proceeds of $159; 900,364
Series I First Preferred Shares were converted into 30,012 common shares; and
359,202 Series II First Preferred Shares were converted into 359,202 common
shares.

Share capital issued for the year
ended December 31, 2016

During the year ended December 31, 2016, 30,301 common shares
were issued on the exercise of 909,059 common share purchase warrants for
proceeds of $359; and 562,388 Series I First Preferred Shares were converted
into 18,746 common shares.

- 18 -

---

|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

Warrants

The continuity of the number of issued and outstanding warrants
for the years ended December 31, 2016 and 2017, and to the date of this MD&A
is presented below:

|                                                       |  | Preferred   |  |  | Common Share |  
|------------------------------------------------------ |  | ----------- |  |  | ------------ | -
|                                                       |  | Warrants(1) |  |  | Warrants(2)  |  
|                                                       |  |             |  |  |              |  
|Balance at December 31, 2015                           |  | -           |  |  | 106,096,356  |  
|Exercised                                              |  | -           |  |  | (909,059     | )
|Balance at December 31, 2016                           |  | -           |  |  | 105,187,297  |  
|Warrant amendment                                      |  | 1,190,476   |  |  | (35,714,286  | )
|Exercised                                              |  | -           |  |  | (399,980     | )
|Balance at December 31, 2017 and the date of this MD&A |  | 1,190,476   |  |  | 69,073,031   |  

Notes:

| | (1) | Preferred Warrants are exercisable at $8.40 per warrant
      for one common share or one Series II Preferred Share.
| | --- | --------------------------------------------------------------------------------------------------------------------
| | (2) | These warrants are exercisable at a ratio of 30 warrants
      for one common share.                                

The following table shows the number of common share purchase
warrants outstanding, the exercise prices and the number of common shares
issuable on exercise of the warrants and the exercise price per common share for
30 warrants at December 31, 2017:

|              |  |            |  |  |          |  |  | Number of     |  |  | Exercise     |  
|------------- |  | ---------- |  |  | -------- |  |  | ------------- |  |  | ------------ | -
|              |  |            |  |  |          |  |  | Common Shares |  |  | Price per    |  
|              |  | Number of  |  |  | Exercise |  |  | Issuable      |  |  | Common Share |  
|Expiry dates  |  | Warrants   |  |  | Price    |  |  | on Exercise   |  |  | (30 Warrants | )
|              |  |            |  |  |          |  |  |               |  |  |              |  
|March 2018    |  | 8,240,455  |  |  | $0.40    |  |  | 274,682       |  |  | $12.00       |  
|December 2018 |  | 60,832,576 |  |  | $0.28    |  |  | 2,027,753     |  |  | $8.40        |  
|              |  | 69,073,031 |  |  |          |  |  | 2,302,435     |  |  |              |  

The following table shows the number of Preferred Warrants
outstanding and their exercise price to acquire either one common share or one
Series II Preferred Share at the option of the holder at December 31, 2017:

|              |  | Number of |  |  |          | 
|------------- |  | --------- |  |  | -------- | 
|              |  | Preferred |  |  | Exercise | 
|Expiry date   |  | Warrants  |  |  | Price    | 
|              |  |           |  |  |          | 
|December 2018 |  | 1,190,476 |  |  | $8.40    | 
|              |  | 1,190,476 |  |  |          | 

- 19 -

---

|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

Stock Options

The 2016 Stock Option Plan was approved by our shareholders at
the annual meeting held on May 27, 2016. Options granted are equity-settled,
have a vesting period of four years and have a maximum term of ten years. The
total number of common shares available for issuance under the 2016 Stock Option
Plan is 1,894,501. As at December 31, 2017, we were entitled to issue an
additional 147,519 stock options under the 2016 Stock Option Plan.

The continuity of the number of issued and outstanding stock
options for the years ended December 31, 2016 and 2017, and to the date of this
MD&A is presented below:

|                                 |  | Number of |   |  | Weighted Average | 
|-------------------------------- |  | --------- | - |  | ---------------- | 
|                                 |  | Options   |   |  | Exercise Price   | 
|                                 |  |           |   |  |                  | 
|Balance at December 31, 2015     |  | 927,834   |   |  | $14.07           | 
|Granted                          |  | 470,321   |   |  | 12.60            | 
|Forfeited                        |  | (12,500   | ) |  | 28.52            | 
|Expired                          |  | (5,418    | ) |  | 30.00            | 
|Balance at December 31, 2016     |  | 1,380,237 |   |  | 13.38            | 
|Granted                          |  | 377,078   |   |  | 11.00            | 
|Forfeited                        |  | (10,000   | ) |  | 12.01            | 
|Expired                          |  | (333      | ) |  | 30.00            | 
|Balance at December 31, 2017     |  | 1,746,982 |   |  | $12.87           | 
|Granted                          |  | 6,000     |   |  | 9.10             | 
|Forfeited                        |  | (883      | ) |  | 13.38            | 
|Balance at the date of this MD&A |  | 1,752,099 |   |  | $12.86           | 

Deferred Share Unit Plan

Our shareholders approved the 2014 Deferred Share Unit Plan, or
the 2014 DSU Plan, on May 27, 2014 and the reservation for issuance of up to
66,667 common shares under the plan. DSUs granted under the 2014 DSU Plan were
equity-settled. There were no DSUs issued during the year ended December 31,
2016. A total of 51,788 DSUs were outstanding under this plan as at December 31,
2016 and March 8, 2017.

The board of directors approved a new cash-settled DSU plan, or
the Cash-Settled DSU Plan, on November 9, 2016 and granted 47,614 DSUs for the
payment of directors fees that will ultimately be cash-settled. On March 9,
2017 the board of directors amended the terms of all outstanding equity-settled
DSUs to be settled in cash. The 2014 DSU Plan was subsequently terminated
resulting in a reclassification of $414 from contributed surplus to accrued
liabilities and the Cash-Settled DSU Plan continues as our only DSU plan. On
November 9, 2017, 46,187 DSUs were granted for payment of directors fees. The
fair values of DSUs under this plan as at December 31, 2017 and 2016 were $1,349
and $362, respectively. As at December 31, 2017, there were 145,589 DSUs
outstanding under this plan.

- 20 -

---

|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

Fully Diluted Share Capital

The number of issued and outstanding common shares, Series I
First Preferred Shares, Series II First Preferred Shares, common share purchase
warrants, Preferred Warrants, and stock options on a fully converted basis as at
December 31, 2017 was as follows:

|                                                                                       |  | Number of Common  | 
|-------------------------------------------------------------------------------------- |  | ----------------- | 
|                                                                                       |  | Share Equivalents | 
|                                                                                       |  |                   | 
|Common shares                                                                          |  | 13,147,404        | 
|Series I First Preferred Shares                                                        |  | 1,744,194         | 
|Series II First Preferred
      Shares                                                 |  | 4,368,403         | 
|Warrants (exercisable for common shares)                                               |  | 2,302,434         | 
|Preferred Warrants
      (exercisable for common shares or Series II Preferred Shares) |  | 1,190,476         | 
|Stock options                                                                          |  | 1,746,982         | 
|Total                                                                                  |  | 24,499,893        | 

Trend Information

Historical patterns of expenditures cannot be taken as an
indication of future expenditures. The amount and timing of expenditures and
therefore liquidity and capital resources vary substantially from period to
period depending on the number of research and development programs being
undertaken at any one time, the stage of the development programs, the timing of
significant expenditures for manufacturing, toxicology and pharmacology studies
and clinical trials, and the availability of funding from investors and
prospective commercial partners.

Selected Quarterly Financial Information

2017
    Q4-2017 $
    Q3-2017 $
    Q2-2017 $
    Q1-2017 $Revenue
    -
    -
    -
    -Research and development expenses
    9,811
    8,275
    8,851
    10,199General and administrative expenses
    1,254
    969
    684
    954Net loss for the period
    10,658
    11,337
    11,641
    11,452Basic and diluted net loss per share
    0.91
    1.05
    1.33
    1.46Cash and cash equivalents and marketable securities
    81,791
    64,297
    72,618
    41,347


2016
    Q4-2016 $
    Q3-2016 $
    Q2-2016 $
    Q1-2016 $Revenue
    -
    -
    -
    -Research and development expenses
    9,262
    7,720
    6,429
    6,379General and administrative expenses
    917
    1,031
    947
    1,038Net loss for the period
    9,023
    7,902
    7,603
    7,205Basic and diluted net loss per share
    1.15
    1.01
    0.97
    0.92Cash and cash equivalents
    50,473
    55,550
    60,070
    65,844


- 21 -

---

|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

Research and development expenses increased each quarter
throughout 2016 due to the costs of initiating and advancing two Phase I trials
and the addition of Fluorinov product development. The net loss increased in the
fourth quarter of 2016 and the first quarter of 2017 due to higher personnel
costs, SIRPαFc clinical trial costs, and preclinical work on the bromodomain
inhibitor and EGFR inhibitor programs. The net loss for the third and fourth
quarters of 2017 reflected continued focus on the SIRPαFc development program,
and lower small molecule expenses relative to the first and second quarters of
2017.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have, or
are reasonably likely to have, a current or future effect on our financial
condition, revenues or expenses, results of operations, liquidity, capital
expenditures or capital resources that are material to investors.

Implications of Being an Emerging Growth Company

We are an emerging growth company under the U.S. Jumpstart
Our Business Startups Act of 2012, or the JOBS Act, and will continue to qualify
as an emerging growth company until the earliest to occur of: (a) the last day
of the fiscal year during which we have total annual gross revenues of
$1,000,000 (as such amount is indexed for inflation every 5 years by the U.S.
Securities and Exchange Commission, or SEC) or more; (b) the last day of our
fiscal year following the fifth anniversary of the date of the first sale of our
common shares pursuant to an effective registration statement under the U.S
Securities Act of 1933; (c) the date on which we have, during the previous
3-year period, issued more than $1,000,000 in non-convertible debt; or (d) the
date on which we are deemed to be a large accelerated filer, as defined in
Rule 12b2 of the U.S. Securities Exchange Act of 1934, or the Exchange Act.

Generally, a company that registers any class of its securities
under Section 12 of the Exchange Act is required to include in the second and
all subsequent annual reports filed by it under the Exchange Act, a management
report on internal control over financial reporting and, subject to an exemption
available to companies that meet the definition of a smaller reporting company
in Rule 12b-2 under the Exchange Act, an auditor attestation report on
managements assessment of the companys internal control over financial
reporting. However, for so long as we continue to qualify as an emerging growth
company, we will be exempt from the requirement to include an auditor
attestation report in our annual reports filed under the Exchange Act, even if
we do not qualify as a smaller reporting company. In addition, Section
103(a)(3) of the Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act, has been
amended by the JOBS Act to provide that, among other things, auditors of an
emerging growth company are exempt from any rules of the Public Company
Accounting Oversight Board requiring mandatory audit firm rotation or a
supplement to the auditors report in which the auditor would be required to
provide additional information about the audit and the financial statements of
the company.

Any U.S. domestic issuer that is an emerging growth company is
able to avail itself of the reduced disclosure obligations regarding executive
compensation in periodic reports and proxy statements, and to not present to its
shareholders a non-binding advisory vote on executive compensation, obtain
approval of any golden parachute payments not previously approved, or present
the relationship between executive compensation actually paid and our financial
performance. So long as we are a foreign private issuer, we are not subject to
such requirements, and will not become subject to such requirements even if we
were to cease to be an emerging growth company.

As a reporting issuer under the securities legislation of the
Canadian provinces of Ontario, British Columbia, Manitoba, Nova Scotia and
Alberta, we are required to comply with all new or revised accounting standards
that apply to Canadian public companies. Pursuant to Section 107(b) of the JOBS
Act, an emerging growth company may elect to utilize an extended transition period for
complying with new or revised accounting standards for public companies until
such standards apply to private companies. We have elected not to utilize this
extended transition period.

- 22 -

---

|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

Critical Accounting Estimates

The preparation of financial statements in conformity with IFRS
  requires management to make judgments, estimates and assumptions that affect the
  application of accounting policies and the reported amounts of assets and
  liabilities, revenue and expenses, related disclosures of contingent assets and
  liabilities and the determination of our ability to continue as a going concern.
  Actual results could differ materially from these estimates and assumptions. We
  review our estimates and underlying assumptions on an ongoing basis. Revisions
  are recognized in the period in which the estimates are revised and may impact
future periods.

The areas involving a higher degree of judgment or complexity,
or areas where assumptions and estimates are significant to the financial
statements have been set out in note 2 of our annual audited consolidated
financial statements for the year ended December 31, 2017.

Accounting Policies

Our significant accounting policies are outlined in our annual
audited consolidated financial statements for the year ended December 31, 2017.
This MD&A should be read in conjunction with the annual audited consolidated
financial statements for the year ended December 31, 2017.

New standards, amendments and interpretations adopted
during 2017

IAS 7, Statement of Cash Flows

In February 2016 the IASB issued amendments to IAS 7
Statement of Cash Flows, or IAS 7 which requires entities to provide
disclosures that enable investors to evaluate changes in liabilities arising
from financing activities, including changes arising from cash flows and
non-cash changes. The IAS 7 amendments are effective for annual periods
beginning on or after January 1, 2017. The adoption of this amendment had no
impact on our consolidated financial statements.

New standards and interpretations not yet
effective

IFRS 9, Financial Instruments

In October 2010 the IASB published amendments to IFRS 9
Financial Instruments, or IFRS 9 which provides added guidance on the
classification and measurement of financial assets and liabilities. In July
2014, the IASB issued its final version of IFRS 9, which completes the
classification and measurement, impairment and hedge accounting phases of the
IASBs project to replace IAS 39 Financial Instruments: Recognition and
Measurement. The final standard is mandatorily effective for annual periods
beginning on or after January 1, 2018, with earlier application permitted. We
believe that the adoption of this standard will not have a material impact on
the consolidated financial statements.

IFRS 15, Revenue from Contracts with Customers

In May 2014 the IASB issued IFRS 15 Revenue from Contracts
with Customers, or IFRS 15 which covers principles for reporting about the
nature, amount, timing and uncertainty of revenue and cash flows arising from
contracts with customers. IFRS 15 is effective for annual periods beginning on
or after January 1, 2018. We have determined that the adoption of this standard
will not have an impact on the consolidated financial statements.

- 23 -

---

|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

IFRS 16, Leases

In January 2016 the IASB issued IFRS 16 Leases, or IFRS
16, its new leases standard that requires lessees to recognize assets and
liabilities for most leases on their balance sheets. Lessees applying IFRS 16
will have a single accounting model for all leases, with certain exemptions. The
new standard will be effective for annual periods beginning on or after January
1, 2019 with limited early application permitted. We have not yet determined the
impact of this standard on the consolidated financial statements.

Other accounting standards or amendments to existing accounting
standards that have been issued, but have future effective dates, are either not
applicable or are not expected to have a significant impact on our consolidated
financial statements.

RISK FACTORS

The following information sets forth material risks and
uncertainties that may affect our business, including our future financing and
operating results and could cause our actual results to differ materially from
those contained in forward-looking statements we have made in this MD&A. The
risks and uncertainties below are not the only ones we face. Additional risks
and uncertainties not presently known to us or that we believe to be immaterial
may also adversely affect our business. Further, if we fail to meet the
expectations of the public market in any given period, the market price of our
common shares could decline. We operate in a highly competitive environment that
involves significant risks and uncertainties, some of which are outside of our
control.

Risks Related to Our Financial Position and Need for
Additional Capital

We expect to incur future losses and we may never become
profitable.

We have incurred losses of $45,088, $31,733 and $14,734 for the
years ended December 31, 2017, 2016, and 2015, respectively, and expect to incur
an operating loss for the year ending December 31, 2018. We have an accumulated
deficit since inception through December 31, 2017 of $142,111. We believe that
operating losses will continue as we are planning to incur significant costs
associated with the clinical development of SIRPαFc. Our net losses have had and
will continue to have an adverse effect on, among other things, our
shareholders equity, total assets and working capital. We expect that losses
will fluctuate from quarter to quarter and year to year, and that such
fluctuations may be substantial. We cannot predict when we will become
profitable, if at all.

We will require additional capital to finance our
operations, which may not be available to us on acceptable terms, or at all. As
a result, we may not complete the development and commercialization of our
product candidates or develop new product candidates.

As a research and development company, our operations have
consumed substantial amounts of cash since inception. We expect to spend
substantial funds to continue the research, development and testing of our
product candidates and to prepare to commercialize products subject to approval
of the U.S. Food and Drug Administration, or FDA, in the U.S. and similar
approvals in other jurisdictions. We will also require significant additional
funds if we expand the scope of our current clinical plans or if we were to
acquire any new assets and advance their development. Therefore, for the
foreseeable future, we will have to fund all of our operations and development
expenditures from cash on hand, equity or debt financings, through
collaborations with other biotechnology or pharmaceutical companies or through
financings from other sources. We expect that our existing cash and cash
equivalents and marketable securities at December 31, 2017 of $81,791 will
enable us to fund our current operating plan requirements for at least the next
twelve months. Additional financing will be required to meet our long term
liquidity needs. If we do not succeed in raising additional funds on acceptable
terms, we might not be able to complete planned preclinical studies and clinical
trials or pursue and obtain approval of any product candidates from the FDA and
other regulatory authorities. It is possible that future financing will not be
available or, if available, may not be on favorable terms. The availability of
financing will be affected by the achievement of our corporate goals, the
results of scientific and clinical research, the ability to obtain regulatory
approvals, the state of the capital markets generally and with particular
reference to drug development companies, the status of strategic alliance
agreements and other relevant commercial considerations. If adequate funding is
not available, we may be required to delay, reduce or eliminate one or more of
our product development programs, or obtain funds through corporate partners or
others who may require us to relinquish significant rights to product candidates
or obtain funds on less favorable terms than we would otherwise accept. To the extent
that external sources of capital become limited or unavailable or available on
onerous terms, our intangible assets and our ability to continue our clinical
development plans may become impaired, and our assets, liabilities, business,
financial condition and results of operations may be materially or adversely
affected.

- 24 -

---

|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

We currently have no product revenue and will not be able
to maintain our operations and research and development without additional
funding.

To date, we have generated no product revenue and cannot
  predict when and if we will generate product revenue. Our ability to generate
  product revenue and ultimately become profitable depends upon our ability, alone
  or with partners, to successfully develop our product candidates, obtain
  regulatory approval, and commercialize products, including any of our current
  product candidates, or other product candidates that we may develop, in-license
  or acquire in the future. We do not anticipate generating revenue from the sale
  of products for the foreseeable future. We expect our research and development
  expenses to increase in connection with our ongoing activities, particularly as
we advance our product candidates through clinical trials.

We are exposed to the financial risk related to the
fluctuation of foreign exchange rates and the degrees of volatility of those
rates.

We may be adversely affected by foreign currency fluctuations.
To date, we have been primarily funded through issuances of equity, proceeds
from the exercise of warrants and stock options and from interest income on
funds available for investment, which are all denominated both in Canadian and
U.S. dollars. Also, a significant portion of our expenditures are in U.S.
dollars, and we are therefore subject to foreign currency fluctuations which
may, from time to time, impact our financial position and results of
operations.

Risks Related to Our Business and Our Industry

Our prospects depend on the success of our product
candidates which are at early stages of development, and we may not generate
revenue for several years, if at all, from these products.

Given the early stage of our product development, we can make
no assurance that our research and development programs will result in
regulatory approval or commercially viable products. To achieve profitable
operations, we, alone or with others, must successfully develop, gain regulatory
approval, and market our future products. We currently have no products that
have been approved by the FDA, Health Canada, or HC, or any similar regulatory
authority. To obtain regulatory approvals for our product candidates being
developed and to achieve commercial success, clinical trials must demonstrate
that the product candidates are safe for human use and that they demonstrate
efficacy. While we have commenced Phase I trials for SIRPαFc, we have not yet
completed a Phase I clinical trial or subsequent required clinical trials for
any of our product candidates.

Many product candidates never reach the stage of clinical
testing and even those that do have only a small chance of successfully
completing clinical development and gaining regulatory approval. Product
candidates may fail for a number of reasons, including, but not limited to,
being unsafe for human use or due to the failure to provide therapeutic benefits
equal to or better than the standard of treatment at the time of testing.
Unsatisfactory results obtained from a particular study relating to a research
and development program may cause us or our collaborators to abandon commitments
to that program. Positive results of early preclinical research may not be
indicative of the results that will be obtained in later stages of preclinical
or clinical research. Similarly, positive results from early-stage clinical
trials may not be indicative of favorable outcomes in later-stage clinical
trials. We can make no assurance that any future studies, if undertaken, will
yield favorable results.

We acquired several preclinical and discovery research programs
in our acquisition of Fluorinov, including certain assets relating to the
treatment of CNS disorders. While we conducted extensive due diligence before
making this acquisition, our assessment of the Fluorinov technologies may not be
accurate. Therefore, our expectations about whether various clinical and
regulatory milestones with an existing Fluorinov compound or development of a
future program on the Fluorinov development platform will be achieved may not be
borne out fully or at all. We have made a commitment to use commercially
reasonable efforts to monetize the Fluorinov CNS assets and, if successful, to share the net proceeds with the Fluorinov vendors. As this
is not our core competency, our efforts to monetize these assets or any other
Fluorinov assets may not be successful. We can make no assurances that
toxicology, or other preclinical, studies will yield results that will allow us
to proceed with clinical trials in humans.

- 25 -

---

|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

The early stage of our product development makes it
particularly uncertain whether any of our product development efforts will prove
to be successful and meet applicable regulatory requirements, and whether any of
our product candidates will receive the requisite regulatory approvals, be
capable of being manufactured at a reasonable cost or be successfully marketed.
If we are successful in developing our current and future product candidates
into approved products, we will still experience many potential obstacles such
as the need to develop or obtain manufacturing, marketing and distribution
capabilities. If we are unable to successfully commercialize any of our
products, our financial condition and results of operations may be materially
and adversely affected.

We rely and will continue to rely on third parties to
  plan, conduct and monitor our preclinical studies and clinical trials, and their
  failure to perform as required could cause substantial harm to our
business.

We rely and will continue to rely on third parties to conduct a
significant portion of our preclinical and clinical development activities.
Preclinical activities include in vivo studies providing access to specific
disease models, pharmacology and toxicology studies, and assay development.
Clinical development activities include trial design, regulatory submissions,
clinical patient recruitment, clinical trial monitoring, clinical data
management and analysis, safety monitoring and project management. If there is
any dispute or disruption in our relationship with third parties, or if they are
unable to provide quality services in a timely manner and at a feasible cost,
our active development programs will face delays. Further, if any of these third
parties fails to perform as we expect or if their work fails to meet regulatory
requirements, our testing could be delayed, cancelled or rendered
ineffective.

We rely on contract manufacturers over whom we have
limited control. If we are subject to quality, cost or delivery issues with the
preclinical and clinical grade materials supplied by contract manufacturers, our
business operations could suffer significant harm.

We have limited manufacturing experience and rely on contract
manufacturing organizations, or CMOs to manufacture our product candidates for
larger preclinical studies and clinical trials. We produce small quantities of
our product candidates at bench scale in our laboratory facilities for use in
smaller preclinical studies. We rely on CMOs for manufacturing, filling,
packaging, storing and shipping of drug product in compliance with current Good
Manufacturing Practice, or cGMP, regulations applicable to our products. The FDA
ensures the quality of drug products by carefully monitoring drug manufacturers
compliance with cGMP regulations. The cGMP regulations for drugs contain minimum
requirements for the methods, facilities and controls used in manufacturing,
processing and packing of a drug product.

We contracted with Catalent for the manufacture of the SIRPαFc
protein to supply drug substance for our Phase I clinical trials. The
manufacture of recombinant proteins uses well established processes including a
protein expression system. Catalent is producing SIRPαFc using their proprietary
GPEx® expression system. We believe that Catalent has the capacity, the systems,
and the experience to supply SIRPαFc for our Phase I clinical trials and we may
consider using Catalent for manufacturing for later clinical trials. However,
since the Catalent manufacturing facility where SIRPαFc is being produced was
only recently established and does not support commercial manufacturing, it has
not yet been inspected by the FDA. Any manufacturing failures or delays or
compliance issues could cause delays in the conduct of SIRPαFc preclinical
studies and clinical trials.

- 26 -

---

|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

There can be no assurances that CMOs will be able to meet our
timetable and requirements. We have not contracted with alternate suppliers for
SIRPαFc drug substance production in the event Catalent is unable to scale up
production, or if Catalent otherwise experiences any other significant problems.
If we are unable to arrange for alternative third-party manufacturing sources on
commercially reasonable terms or in a timely manner, we may be delayed in the
development of our product candidates. Further, CMOs must operate in compliance
with cGMP and failure to do so could result in, among other things, the
disruption of product supplies. Our dependence upon third parties for the
manufacture of our products may adversely affect our profit margins and our
ability to develop and deliver products on a timely and competitive basis.

If clinical trials of our product candidates fail to
demonstrate safety and efficacy to the satisfaction of regulatory authorities or
do not otherwise produce positive results, we would incur additional costs or
experience delays in completing, or ultimately be unable to complete, the
development and commercialization of our product candidates.

Before obtaining marketing approval from regulatory authorities
for the sale of our product candidates, we must conduct preclinical studies in
animals and extensive clinical trials in humans to demonstrate the safety and
efficacy of the product candidates. Clinical testing is expensive and difficult
to design and implement, can take many years to complete and has uncertain
outcomes. The outcome of preclinical studies and early clinical trials may not
predict the success of later clinical trials, and interim results of a clinical
trial do not necessarily predict final results. A number of companies in the
pharmaceutical and biotechnology industries have suffered significant setbacks
in advanced clinical trials due to lack of efficacy or unacceptable safety
profiles, notwithstanding promising results in earlier trials. We do not know
whether the clinical trials we may conduct will demonstrate adequate efficacy
and safety to result in regulatory approval to market any of our product
candidates in any jurisdiction. A product candidate may fail for safety or
efficacy reasons at any stage of the testing process. A major risk we face is
the possibility that none of our product candidates under development will
successfully gain market approval from the FDA or other regulatory authorities,
resulting in us being unable to derive any commercial revenue from them after
investing significant amounts of capital in multiple stages of preclinical and
clinical testing.

If we experience delays in clinical testing, we will be
delayed in commercializing our product candidates, and our business may be
substantially harmed.

We cannot predict whether any clinical trials will begin as
planned, will need to be restructured, or will be completed on schedule, or at
all. Our product development costs will increase if we experience delays in
clinical testing. Significant clinical trial delays could shorten any periods
during which we may have the exclusive right to commercialize our product
candidates or allow our competitors to bring products to market before us, which
would impair our ability to successfully commercialize our product candidates
and may harm our financial condition, results of operations and prospects. The
commencement and completion of clinical trials for our products may be delayed
for a number of reasons, including delays related, but not limited, to:

| |  | failure by regulatory authorities to grant permission to
      proceed or placing the clinical trial on hold;                                                                            
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | patients failing to enroll or remain in our trials at the
      rate we expect;                                                                                                          
| |  | suspension or termination of clinical trials by
      regulators for many reasons, including concerns about patient safety or
      failure of our CMOs to comply with cGMP requirements;
| |  | any changes to our manufacturing process that may be
      necessary or desired;                                                                                                         
| |  | delays or failure to obtain clinical supply from CMOs of
      our products necessary to conduct clinical trials;                                                                        
| |  | product candidates demonstrating a lack of safety or
      efficacy during clinical trials;                                                                                              
| |  | patients choosing an alternative treatment for the
      indications for which we are developing any of our product candidates or
      participating in competing clinical trials;      
| |  | patients failing to complete clinical trials due to
      dissatisfaction with the treatment, side effects or other reasons;                                                             
| |  | reports of clinical testing on similar technologies and
      products raising safety and/or efficacy concerns;                                                                          
| |  | competing clinical trials and scheduling conflicts with
      participating clinicians;                                                                                                  

- 27 -

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|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

| |  | clinical investigators not performing our clinical trials
      on their anticipated schedule, dropping out of a trial, or employing
      methods not consistent with the clinical trial protocol, regulatory
      requirements or other third parties not performing data collection and
      analysis in a timely or accurate manner;             
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | failure of our contract research organizations, or CROs,
      to satisfy their contractual duties or meet expected deadlines;                                                                                                                                                                                                                         
| |  | inspections of clinical trial sites by regulatory
      authorities or Institutional Review Boards, or IRBs, or ethics committees
      finding regulatory violations that require us to undertake corrective
      action, resulting in suspension or termination of one or more sites or the
      imposition of a clinical hold on the entire study;
| |  | one or more IRBs or ethics committees rejecting,
      suspending or terminating the study at an investigational site, precluding
      enrollment of additional subjects, or withdrawing its approval of the
      trial; or                                                                                                                          
| |  | failure to reach agreement on acceptable terms with
      prospective clinical trial sites.                                                                                                                                                                                                                                                            

Our product development costs will increase if we experience
delays in testing or approval or if we need to perform more or larger clinical
trials than planned. Additionally, changes in regulatory requirements and
policies may occur, and we may need to amend study protocols to reflect these
changes. Amendments may require us to resubmit our study protocols to regulatory
authorities or IRBs or ethics committees for re-examination, which may impact
the cost, timing or successful completion of that trial. Delays or increased
product development costs may have a material adverse effect on our business,
financial condition and prospects.

We may not be able to file INDs to commence additional
clinical trials on the timelines we expect, and even if we are able to, the FDA
may not permit us to proceed in a timely manner, or at all.

Prior to commencing clinical trials in the United States for
any of our product candidates, we may be required to have an allowed IND for
each product candidate and to file additional INDs prior to initiating any
additional clinical trials for SIRPαFc. We believe that the data from previous
preclinical studies will support the filing of additional INDs, to enable us to
undertake additional clinical studies as we have planned. However, submission of
an IND may not result in the FDA allowing further clinical trials to begin and,
once begun, issues may arise that will require us to suspend or terminate such
clinical trials. Additionally, even if relevant regulatory authorities agree
with the design and implementation of the clinical trials set forth in an IND,
these regulatory authorities may change their requirements in the future.
Failure to submit or have effective INDs and commence clinical programs will
significantly limit our opportunity to generate revenue.

If we have difficulty enrolling patients in clinical
trials, the completion of the trials may be delayed or cancelled.

As our product candidates advance from preclinical testing to
clinical testing, and then through progressively larger and more complex
clinical trials, we will need to enroll an increasing number of patients that
meet our eligibility criteria. There is significant competition for recruiting
cancer patients in clinical trials, and we may be unable to enroll the patients
we need to complete clinical trials on a timely basis or at all. The factors
that affect our ability to enroll patients are largely uncontrollable and
include, but are not limited to, the following:

| |  | size and nature of the patient population;                                         
| | - | -----------------------------------------------------------------------------------
| |  | eligibility and exclusion criteria for the
      trial;                            
| |  | design of the study protocol;                                                      
| |  | competition with other companies for clinical
      sites or patients;             
| |  | the perceived risks and benefits of the product
      candidate under study;       
| |  | the patient referral practices of physicians;
      and                            
| |  | the number, availability, location and
      accessibility of clinical trial sites.

- 28 -

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|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

If we are unable to successfully develop companion
diagnostics for our therapeutic product candidates, or experience significant
delays in doing so, we may not achieve marketing approval or realize the full
commercial potential of our therapeutic product candidates.

We may develop companion diagnostics for our therapeutic
product candidates. We expect that, at least in some cases, regulatory
authorities may require the development and regulatory approval of a companion
diagnostic as a condition to approving our therapeutic product candidates. We
have limited experience and capabilities in developing or commercializing
diagnostics and plan to rely in large part on third parties to perform these
functions. We have not begun to develop companion diagnostics for any of our
therapeutic product candidates.

Companion diagnostics are subject to regulation by the FDA, HC,
and comparable foreign regulatory authorities as medical devices and may require
separate regulatory approval or clearance prior to commercialization. If we, or
any third parties that we engage to assist us, are unable to successfully
develop companion diagnostics for our therapeutic product candidates, or
experience delays in doing so, our business may be substantially harmed.

Regulatory approval processes are lengthy, expensive and
inherently unpredictable. Our inability to obtain regulatory approval for our
product candidates would substantially harm our business.

Our development and commercialization activities and product
candidates are significantly regulated by a number of governmental entities,
including the FDA, HC, and comparable authorities in other countries. Regulatory
approvals are required prior to each clinical trial and we may fail to obtain
the necessary approvals to commence or continue clinical testing. We must comply
with regulations concerning the manufacture, testing, safety, effectiveness,
labeling, documentation, advertising, and sale of products and product
candidates and ultimately must obtain regulatory approval before we can
commercialize a product candidate. The time required to obtain approval by such
regulatory authorities is unpredictable but typically takes many years following
the commencement of preclinical studies and clinical trials. Any analysis of
data from clinical activities we perform is subject to confirmation and
interpretation by regulatory authorities, which could delay, limit or prevent
regulatory approval. Even if we believe results from our clinical trials are
favorable to support the marketing of our product candidates, the FDA or other
regulatory authorities may disagree. In addition, approval policies,
regulations, or the type and amount of clinical data necessary to gain approval
may change during the course of a product candidates clinical development and
may vary among jurisdictions. We have not obtained regulatory approval for any
product candidate and it is possible that none of our existing product
candidates or any future product candidates will ever obtain regulatory
approval.

We could fail to receive regulatory approval for our product
candidates for many reasons, including, but not limited to:

| |  | disagreement with the design or implementation of our
      clinical trials;                                                                                                                                                           
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | failure to demonstrate that a product candidate is safe
      and effective for its proposed indication;                                                                                                                               
| |  | failure of clinical trials to meet the level of
      statistical significance required for approval;                                                                                                                                  
| |  | failure to demonstrate that a product candidates
      clinical and other benefits outweigh its safety risks;                                                                                                                         
| |  | disagreement with our interpretation of data from
      preclinical studies or clinical trials;                                                                                                                                        
| |  | the insufficiency of data collected from clinical trials
      of our product candidates to support the submission and filing of a
      biologic license application, or BLA, or other submission to obtain
      regulatory approval;
| |  | deficiencies in the manufacturing processes or the
      failure of facilities of CMOs with whom we contract for clinical and
      commercial supplies to pass a pre-approval inspection; or                                          
| |  | changes in the approval policies or regulations that
      render our preclinical and clinical data insufficient for approval.                                                                                                         

A regulatory authority may require more information, including
additional preclinical or clinical data to support approval, which may delay or
prevent approval and our commercialization plans, or we may decide to abandon
the development program. If we were to obtain approval, regulatory authorities
may approve any of our product candidates for fewer or more limited indications
than we request, may grant approval contingent on the performance of costly
post-marketing clinical trials, or may approve a product candidate with a label
that does not include the labeling claims necessary or desirable for the
successful commercialization of that product candidate. Moreover, depending on
any safety issues associated with our product candidates that garner approval,
the FDA may impose a risk evaluation and mitigation strategy, thereby imposing
certain restrictions on the sale and marketability of such products.

- 29 -

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|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

We may not achieve our publicly announced milestones
according to schedule, or at all.

From time to time, we may announce the timing of certain events
we expect to occur, such as the anticipated timing of results from our clinical
trials. These statements are forward-looking and are based on the best estimates
of management at the time relating to the occurrence of such events. However,
the actual timing of such events may differ from what has been publicly
disclosed. The timing of events such as initiation or completion of a clinical
trial, filing of an application to obtain regulatory approval, or announcement
of additional clinical trials for a product candidate may ultimately vary from
what is publicly disclosed. These variations in timing may occur as a result of
different events, including the nature of the results obtained during a clinical
trial or during a research phase, problems with a CMO or a CRO or any other
event having the effect of delaying the publicly announced timeline. We
undertake no obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise, except as
otherwise required by law. Any variation in the timing of previously announced
milestones could have a material adverse effect on our business plan, financial
condition or operating results and the trading price of common shares.

We face competition from other biotechnology and
pharmaceutical companies and our financial condition and operations will suffer
if we fail to effectively compete.

The biotechnology and pharmaceutical industries are intensely
competitive and subject to rapid and significant technological change. Our
competitors include large, well-established pharmaceutical companies,
biotechnology companies, and academic and research institutions developing
cancer therapeutics for the same indications we are targeting and competitors
with existing marketed therapies. Many other companies are developing or
commercializing therapies to treat the same diseases or indications for which
our product candidates may be useful. Although there are no approved therapies
that specifically target the CD47 pathway, some competitors use therapeutic
approaches that may compete directly with our product candidates. For example,
SIRPαFc is in direct competition with CD47 blocking antibodies from Forty Seven
Inc., Celgene Corporation, Novimmune SA and others.

Many of our competitors have substantially greater financial,
technical and human resources than we do and have significantly greater
experience than us in conducting preclinical testing and human clinical trials
of product candidates, scaling up manufacturing operations and obtaining
regulatory approvals of products. Accordingly, our competitors may succeed in
obtaining regulatory approval for products more rapidly than we do. Our ability
to compete successfully will largely depend on:

| |  | the efficacy and safety profile of our product candidates
      relative to marketed products and other product candidates in development;       
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------
| |  | our ability to develop and maintain a competitive
      position in the product categories and technologies on which we focus;                   
| |  | the time it takes for our product candidates to complete
      clinical development and receive marketing approval;                              
| |  | our ability to obtain required regulatory approvals;                                                                                             
| |  | our ability to commercialize any of our product
      candidates that receive regulatory approval;                                               
| |  | our ability to establish, maintain and protect
      intellectual property rights related to our product candidates; and                         
| |  | acceptance of any of our product candidates that receive
      regulatory approval by physicians and other healthcare providers and
      payers.

Competitors have developed and may develop technologies that
could be the basis for products that challenge the differentiated nature and
potential for best-in-class product development programs and discovery research
capabilities of Fluorinov. Some of those products may have an entirely different
approach or means of accomplishing the desired therapeutic effect than our
product candidates and may be more effective or less costly than our product
candidates. The success of our competitors and their products and technologies
relative to our technological capabilities and competitiveness could have a
material adverse effect on the future preclinical studies and clinical trials of
our product candidates, including our ability to obtain the necessary regulatory
approvals for the conduct of such clinical trials. This may further negatively
impact our ability to generate future product development programs using
Fluorinov technology.

- 30 -

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|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

If we are not able to compete effectively against our current
and future competitors, our business will not grow and our financial condition
and operations will substantially suffer.

We heavily rely on the capabilities and experience of our
  key executives and scientists and the loss of any of them could affect our
ability to develop our products.

The loss of Dr. Niclas Stiernholm, our President and Chief
Executive Officer, or other key members of our staff, could harm us. We have
employment agreements with Drs. Stiernholm and other key members of our staff,
although such employment agreements do not guarantee their retention. We also
depend on our scientific and clinical collaborators and advisors, all of whom
have outside commitments that may limit their availability to us. In addition,
we believe that our future success will depend in large part upon our ability to
attract and retain highly skilled scientific, managerial, medical, clinical and
regulatory personnel, particularly as we expand our activities and seek
regulatory approvals for clinical trials. We enter into agreements with our
scientific and clinical collaborators and advisors, key opinion leaders and
academic partners in the ordinary course of our business. We also enter into
agreements with physicians and institutions who will recruit patients into our
clinical trials on our behalf in the ordinary course of our business.
Notwithstanding these arrangements, we face significant competition for these
types of personnel from other companies, research and academic institutions,
government entities and other organizations. We cannot predict our success in
hiring or retaining the personnel we require for continued growth. The loss of
the services of any of our executive officers or other key personnel could
potentially harm our business, operating results or financial condition.

Our employees may engage in misconduct or other improper
activities, including noncompliance with regulatory standards and requirements,
which could have a material adverse effect on our business.

We are exposed to the risk of employee fraud or other
misconduct. Misconduct by employees could include failures to comply with FDA
regulations, provide accurate information to the FDA, comply with manufacturing
standards we have established, comply with federal and state healthcare fraud
and abuse laws and regulations, report financial information or data accurately
or disclose unauthorized activities to us. In particular, sales, marketing and
business arrangements in the healthcare industry are subject to extensive laws
and regulations intended to prevent fraud, kickbacks, self-dealing, and other
abusive practices. These laws and regulations may restrict or prohibit a wide
range of pricing, discounting, marketing and promotion, sales commission,
customer incentive programs and other business arrangements. Employee misconduct
could also involve the improper use of information obtained in the course of
clinical trials, which could result in regulatory sanctions and serious harm to
our reputation. If any such actions are instituted against us, and we are not
successful in defending ourselves or asserting our rights, those actions could
have a substantial impact on our business and results of operations, including
the imposition of substantial fines or other sanctions.

The failure to fully realize the benefits of our
acquisition of Fluorinov may adversely affect our future results.

In
January 2016, we acquired all of the outstanding capital stock of Fluorinov, a
small molecule medicinal chemistry company with preclinical oncology assets and
a potential discovery platform. The success of our acquisition of Fluorinov will
depend, in part, on our ability to fully realize the anticipated benefits from
combining our business with Fluorinovs business. However, to realize these
anticipated benefits, we must continue the research and development activities
previously undertaken by Fluorinov as a stand-alone company. If we are unable to
achieve these objectives, the anticipated benefits of our acquisition of
Fluorinov may not be realized fully or at all or may take longer to realize than
expected.

- 31 -

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|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

We may expand our business through the acquisition of
companies or businesses or by entering into collaborations or by in-licensing
product candidates, each of which could disrupt our business and harm our
financial condition.

We have in the past and may in the future seek to expand our
pipeline and capabilities by acquiring one or more companies or businesses,
entering into collaborations, or in-licensing one or more product candidates.
Acquisitions, collaborations and in-licenses involve numerous risks, including,
but not limited to:

| |  | substantial cash expenditures;                                                                                                                 
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------
| |  | technology development risks;                                                                                                                  
| |  | potentially dilutive issuances of equity
      securities;                                                                                     
| |  | incurrence of debt and contingent liabilities, some of
      which may be difficult or impossible to identify at the time of
      acquisition;
| |  | difficulties in assimilating the operations of
      the acquired companies;                                                                   
| |  | potential disputes regarding contingent
      consideration;                                                                                   
| |  | diverting our managements attention away from
      other business concerns;                                                                  
| |  | entering markets in which we have limited or no
      direct experience; and                                                                   
| |  | potential loss of our key employees or key
      employees of the acquired companies or businesses.                                            

We have experience in making acquisitions, entering
collaborations, and in-licensing product candidates, however, we cannot provide
assurance that any acquisition, collaboration or in-license will result in
short-term or long-term benefits to us. We may incorrectly judge the value or
worth of an acquired company or business or in-licensed product candidate. In
addition, our future success would depend in part on our ability to manage the
rapid growth associated with some of these acquisitions, collaborations and
in-licenses. We cannot provide assurance that we would be able to successfully
combine our business with that of acquired businesses, manage a collaboration or
integrate in-licensed product candidates. Furthermore, the development or
expansion of our business may require a substantial capital investment by
us.

Negative results from clinical trials or studies of
others and adverse safety events involving the targets of our products may have
an adverse impact on our future commercialization efforts.

From time to time, studies or clinical trials on various
aspects of biopharmaceutical products are conducted by academic researchers,
competitors or others. The results of these studies or trials, when published,
may have a significant effect on the market for the biopharmaceutical product
that is the subject of the study. The publication of negative results of studies
or clinical trials or adverse safety events related to our product candidates,
or the therapeutic areas in which our product candidates compete, could
adversely affect our share price and our ability to finance future development
of our product candidates, and our business and financial results could be
materially and adversely affected.

We face the risk of product liability claims, which could
exceed our insurance coverage and produce recalls, each of which could deplete
our cash resources.

We are exposed to the risk of product liability claims alleging
that use of our product candidates caused an injury or harm. These claims can
arise at any point in the development, testing, manufacture, marketing or sale
of our product candidates and may be made directly by patients involved in
clinical trials of our product candidates, by consumers or healthcare providers
or by individuals, organizations or companies selling our products. Product
liability claims can be expensive to defend, even if the product or product
candidate did not actually cause the alleged injury or harm.

Insurance covering product liability claims becomes
increasingly expensive as a product candidate moves through the development
pipeline to commercialization. We currently maintain clinical trial liability
insurance coverage of $10,000. However, there can be no assurance that such
insurance coverage is or will continue to be adequate or available to us at a
cost acceptable to us or at all. We may choose or find it necessary under our
collaborative agreements to increase our insurance coverage in the future. We
may not be able to secure greater or broader product liability insurance
coverage on acceptable terms or at reasonable costs when needed. Any liability
for damages resulting from a product liability claim could exceed the amount of
our coverage, require us to pay a substantial monetary award from our own cash
resources and have a material adverse effect on our business, financial
condition and results of operations. Moreover, a product recall, if required,
could generate substantial negative publicity about our products and business, inhibit or
prevent commercialization of other products and product candidates or negatively
impact existing or future collaborations.

- 32 -

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|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

If we are unable to maintain product liability insurance
required by our third parties, the corresponding agreements would be subject to
termination, which could have a material adverse impact on our
operations.

Some of our licensing and other agreements with third parties
  require or might require us to maintain product liability insurance. If we
  cannot maintain acceptable amounts of coverage on commercially reasonable terms
  in accordance with the terms set forth in these agreements, the corresponding
  agreements would be subject to termination, which could have a material adverse
impact on our operations.

Risks Related to Intellectual Property

If we are unable to adequately protect and enforce our
intellectual property, our competitors may take advantage of our development
efforts or acquired technology and compromise our prospects of marketing and
selling our key products.

We control two patent families relating to SIRPα. One family
relates to the use of SIRPα to treat cancer. The other family relates to our
drug as a composition of matter, SIRPαFc. We have also recently filed for patent
protection covering additional inventions relating to SIRPα, including
anti-cancer drug combination therapies that utilize SIRPαFc.

Our small molecule portfolio embraces patent filings that cover
numerous different inventions. With the exception of one process scheme, these
patent filings each claim a family of small molecule drugs as compositions of
matter, together with claims for their production and their medical uses. These
drugs target cancer for the most part, and some related medical end-uses.

Our success will depend in part upon our ability to protect our
intellectual property and proprietary technologies and upon the nature and scope
of the intellectual property protection we receive. For example, some of our
patent portfolio covers primarily methods of medical use but not compositions of
matter. The ability to compete effectively and to achieve partnerships will
depend on our ability to develop and maintain proprietary aspects of our
technology and to operate without infringing on the proprietary rights of
others. The presence of such proprietary rights of others could severely limit
our ability to develop and commercialize our products, to conduct our existing
research and could require financial resources to defend litigation, which may
be in excess of our ability to raise such funds. There is no assurance that our
pending patent applications or those that we intend to acquire will be approved
in a form that will be sufficient to protect our proprietary technology and gain
or keep any competitive advantage that we may have or, once approved, will be
upheld in any post-grant proceedings brought by any third parties.

The patent positions of pharmaceutical companies can be highly
uncertain and involve complex legal, scientific and factual questions for which
important legal principles remain unresolved. Patents issued to us or our
respective licensors may be challenged, invalidated or circumvented. To the
extent our intellectual property, including licensed intellectual property,
offers inadequate protection, or is found to be invalid or unenforceable, we are
exposed to a greater risk of direct competition. If our intellectual property
does not provide adequate protection against our competitors products, our
competitive position could be adversely affected, as could our business,
financial condition and results of operations. Both the patent application
process and the process of managing patent disputes can be time consuming and
expensive, and the laws of some foreign countries may not protect our
intellectual property rights to the same extent as do the laws of Canada and the
United States.

- 33 -

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|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

We will be able to protect our intellectual property from
unauthorized use by third parties only to the extent that our proprietary
technologies, key products, and any future products are covered by valid and
enforceable intellectual property rights including patents or are effectively
maintained as trade secrets, and provided we have the funds to enforce our
rights, if necessary.

If we lose our licenses from third-party owners we may be
unable to continue a substantial part of our business.

We are party to licenses that give us rights to intellectual
property that is necessary or useful for a substantial part of our business.
Pursuant to our exclusive license agreement with UHN and HSC under which we
license certain patent rights for our key products and their uses, we are
required to use commercially reasonable efforts to commercialize products based
on the licensed rights and pay certain royalties and sublicensing revenue to UHN
and HSC. These licenses require that we pay development milestone payments,
regulatory milestone payments, royalties on net sales, and sublicensing
revenues, as well as annual maintenance fees.

We have also entered into agreements allowing us to manufacture
SIRPαFc using Catalents proprietary GPEx® expression system. The consideration
includes payments at the time we successfully reach a series of development and
sales milestones. We may also enter into licenses in the future to access
additional third-party intellectual property.

If we fail to pay annual maintenance fees, development and
sales milestones, or it is determined that we did not use commercially
reasonable efforts to commercialize licensed products, we could lose our
licenses which could have a material adverse effect on our business and
financial condition.

We may require additional third-party licenses to
effectively develop and manufacture our key products and are currently unable to
predict the availability or cost of such licenses.

A substantial number of patents have already been issued to
other biotechnology and pharmaceutical companies. To the extent that valid
third-party patent rights cover our products or services, we or our strategic
collaborators would be required to seek licenses from the holders of these
patents in order to manufacture, use or sell these products and services, and
payments under them would reduce our profits from these products and services.
We are currently unable to predict the extent to which we may wish or be
required to acquire rights under such patents, the availability and cost of
acquiring such rights, and whether a license to such patents will be available
on acceptable terms or at all. There may be patents in the U.S. or in foreign
countries or patents issued in the future that are unavailable to license on
acceptable terms. Our inability to obtain such licenses may hinder or eliminate
our ability to manufacture and market our products.

Changes in patent law and its interpretation could
diminish the value of patents in general, thereby impairing our ability to
protect our product candidates.

As is the case with other biotechnology and pharmaceutical
companies, our success is heavily dependent on intellectual property rights,
particularly patents. Obtaining and enforcing patents in the biopharmaceutical
industry involves technological and legal complexity, and obtaining and
enforcing biopharmaceutical patents is costly, time-consuming and inherently
uncertain. The U.S. Supreme Court has ruled on several patent cases in recent
years, either narrowing the scope of patent protection available in certain
circumstances or weakening the rights of patent owners in certain situations. In
addition to increasing uncertainty with regard to our and our licensors or
collaborators ability to obtain patents in the future, this combination of
events has created uncertainty with respect to the value of patents, once
obtained. Depending on decisions by the U.S. Congress, the federal courts, and
the U.S. Patent and Trademark Office, or USPTO, the laws and regulations
governing patents could change in unpredictable ways that would weaken our and
our licensors or collaborators ability to obtain new patents or to enforce
existing patents and patents we and our licensors or collaborators may obtain in
the future.

Recent patent reform legislation could increase the
uncertainties and costs surrounding the prosecution of our and our licensors or
collaborators patent applications and the enforcement or defense of our or our
licensors or collaborators issued patents. On September 16, 2011, the
Leahy-Smith America Invents Act, or the Leahy-Smith Act, was signed into law.
The Leahy-Smith Act includes a number of significant changes to U.S. patent law.
These include provisions that affect the way patent applications are
prosecuted and may also affect patent litigation. The USPTO recently developed
new regulations and procedures to govern administration of the Leahy-Smith Act,
and many of the substantive changes to patent law associated with the
Leahy-Smith Act, and in particular, the first to file provisions, only became
effective on March 16, 2013. Accordingly, it is not clear what, if any, impact
the Leahy-Smith Act will have on the operation of our business. However, the
Leahy-Smith Act and its implementation could increase the uncertainties and
costs surrounding the prosecution of our or our licensors or collaborators
patent applications and the enforcement or defense of our or our licensors or
collaborators issued patents, all of which could have a material adverse effect
on our business and financial condition.

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|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

Litigation regarding patents, patent applications, and
other proprietary rights may be expensive, time consuming and cause delays in
the development and manufacturing of our key products.

Our success will depend in part on our ability to operate
  without infringing the proprietary rights of third parties. The pharmaceutical
  industry is characterized by extensive patent litigation. Other parties may
  have, or obtain in the future, patents and allege that the use of our
  technologies infringes these patent claims or that we are employing their
proprietary technology without authorization.

In addition, third parties may challenge or infringe upon our
existing or future patents. Proceedings involving our patents or patent
applications or those of others could result in adverse decisions regarding:

| |  | the patentability of our inventions relating to
      our key products; and/or                                 
| | - | ---------------------------------------------------------------------------------------------------------------
| |  | the enforceability, validity, or scope of
      protection offered by our patents relating to our key products.

If we are unable to avoid infringing the patent rights of
others, we may be required to seek a license, defend an infringement action, or
challenge the validity of the patents in court. Regardless of the outcome,
patent litigation is costly and time consuming. In some cases, we may not have
sufficient resources to bring these actions to a successful conclusion. In
addition, if we do not obtain a license, develop or obtain non-infringing
technology, fail to defend an infringement action successfully or have infringed
patents declared invalid, we may:

| |  | incur substantial monetary damages;                                                                                                  
| | - | -------------------------------------------------------------------------------------------------------------------------------------
| |  | encounter significant delays in bringing our
      key products to market; and/or                                                    
| |  | be precluded from participating in the manufacture, use
      or sale of our key products or methods of treatment requiring licenses.

Even if we are successful in these proceedings, we may incur
substantial costs and divert management time and attention in pursuing these
proceedings, which could have a material adverse effect on us.

Our reliance on third parties requires us to share our
trade secrets, which increases the possibility that a competitor will discover
them.

Because we rely on third parties to develop our products, we
must share trade secrets with them. We seek to protect our proprietary
technology in part by entering into confidentiality agreements and, if
applicable, material transfer agreements, collaborative research agreements,
consulting agreements or other similar agreements with our collaborators,
advisors, employees and consultants prior to beginning research or disclosing
proprietary information. These agreements typically restrict the ability of our
collaborators, advisors, employees and consultants to publish data potentially
relating to our trade secrets. Our academic and clinical collaborators typically
have rights to publish data, provided that we are notified in advance and may
delay publication for a specified time in order to secure our intellectual
property rights arising from the collaboration. In other cases, publication
rights are controlled exclusively by us, although in some cases we may share
these rights with other parties. We also conduct joint research and development
programs which may require us to share trade secrets under the terms of research
and development collaboration or similar agreements. Despite our efforts to
protect our trade secrets, our competitors may discover our trade secrets,
either through breach of these agreements, independent development or
publication of information including our trade secrets in cases where we do not
have proprietary or otherwise protected rights at the time of publication. A
competitors discovery of our trade secrets may impair our competitive position
and could have a material adverse effect on our business and financial
condition.

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|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

Risks Related to Our Common Shares

Our common share price has been volatile in recent years,
and may continue to be volatile.

The market prices for securities of biopharmaceutical
companies, including ours, have historically been volatile. In the year ended
December 31, 2017, our common shares traded on the TSX at a high of  $15.68 and a
low of  $5.26 per share and on the NASDAQ at a high of U.S. $13.30 and a low of U.S. $4.15
per share. In the year ended December 31, 2016, our common shares traded on the TSX at a high of $23.48 and a low of $7.12 per share and on the NASDAQ at a high
of U.S. $17.70 and a low of U.S. $5.25 per share. A number of factors could influence the
volatility in the trading price of our common shares, including changes in the
economy or in the financial markets, industry related developments, the results
of product development and commercialization, changes in government regulations,
and developments concerning proprietary rights, litigation and cash flow. Our
quarterly losses may vary because of the timing of costs for manufacturing,
preclinical studies and clinical trials. Also, the reporting of adverse safety
events involving our products and public rumors about such events could cause
our share price to decline or experience periods of volatility. Each of these
factors could lead to increased volatility in the market price of our common
shares. In addition, changes in the market prices of the securities of our
competitors may also lead to fluctuations in the trading price of our common
shares.

We have never paid dividends and do not expect to do so
in the foreseeable future.

We have not declared or paid any cash dividends on our common
or preferred shares to date. The payment of dividends in the future will be
dependent on our earnings and financial condition in addition to such other
factors as our board of directors considers appropriate. Unless and until we pay
dividends, shareholders may not receive a return on their shares. There is no
present intention by our board of directors to pay dividends on our shares.

We may issue additional common shares to the former
shareholders of Fluorinov as a result of our satisfaction of certain milestones,
resulting in share ownership dilution.

Under the terms of our agreements with Fluorinov and its former
shareholders, at our discretion up to 50% of any future contingent payments can
be satisfied through the issuance of our common shares, provided that the
aggregate number of common shares issuable under such payments will not exceed
1,558,447 common shares, which amount represented 19.99% of the outstanding
common shares at the time of execution of the acquisition, unless shareholder
approval has first been obtained.

Issuing additional common shares to the former shareholders of
Fluorinov in satisfaction of contingent consideration dilutes the ownership
interests of holders of our common shares on the dates of such issuances. If we
are unable to realize the strategic, operational and financial benefits
anticipated from our acquisition of Fluorinov, our shareholders may experience
dilution of their ownership interests in our company upon any such future
issuances of our common shares without receiving any commensurate benefit.

Future sales or issuances of equity securities and the
conversion of outstanding securities to common shares could decrease the value
of the common shares, dilute investors voting power, and reduce our earnings
per share.

We may sell additional equity securities in future offerings,
including through the sale of securities convertible into equity securities, to
finance operations, acquisitions or projects, and issue additional common shares
if outstanding warrants or stock options are exercised, or preferred shares are
converted to common shares, which may result in dilution. See the information in
the section of this MD&A entitled Description of Share Capital for details
of our outstanding securities convertible into common shares. Subject to receipt
of any required regulatory approvals, subscribers of the December 2013 private
placement who purchased a minimum of 10% of the securities sold under the
offering received rights to purchase our securities in future financings to
enable each such shareholder to maintain their percentage holding in our common
shares for so long as the subscriber holds at least 10% of the outstanding common shares on a fully-diluted basis.
Shareholders who do not have this future financing participation right may be
disadvantaged in participating in such financings.

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|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

Our board of directors has the authority to authorize certain
offers and sales of additional securities without the vote of, or prior notice
to, shareholders. Based on the need for additional capital to fund expected
expenditures and growth, it is likely that we will issue additional securities
to provide such capital. Such additional issuances may involve the issuance of a
significant number of common shares at prices less than the current market price
for our common shares.

Sales of substantial amounts of our securities, or the
  availability of such securities for sale, as well as the issuance of substantial
  amounts of our common shares upon conversion of outstanding convertible equity
  securities, could adversely affect the prevailing market prices for our
  securities and dilute investors earnings per share. A decline in the market
  prices of our securities could impair our ability to raise additional capital
through the sale of securities should we desire to do so.

U.S. holders of 10% or more of the voting power of our
common shares may be subject to U.S. federal income taxation at ordinary income
tax rates on undistributed earnings and profits.

There is a risk that we will be classified as a controlled
foreign corporation, or CFC, for U.S. federal income tax purposes. We will
generally be classified as a CFC if more than 50% of our outstanding shares,
measured by reference to voting power or value, are owned (directly, indirectly
or by attribution) by U.S. Shareholders. For this purpose, a U.S.
Shareholder is any U.S. person that owns directly, indirectly or by
attribution, 10% or more of the voting power of our outstanding shares. If we
are classified as a CFC, a U.S. Shareholder may be subject to U.S. income
taxation at ordinary income tax rates on all or a portion of our undistributed
earnings and profits attributable to subpart F income and may also be subject
to tax at ordinary income tax rates on any gain realized on a sale of common
shares, to the extent of our current and accumulated earnings and profits
attributable to such shares. The CFC rules are complex and U.S. Shareholders of
our common shares are urged to consult their own tax advisors regarding the
possible application of the CFC rules to them in their particular circumstances.

We are likely a passive foreign investment company,
which may have adverse U.S. federal income tax consequences for U.S.
shareholders.

U.S. investors should be aware that we believe we were
classified as a PFIC during the tax years ended December 31, 2017 and 2016, and
based on current business plans and financial expectations, we believe that we
will be a PFIC for the current tax year and may be a PFIC in future tax years.
If we are a PFIC for any year during a U.S. shareholders holding period of our
common shares, then such U.S. shareholder generally will be required to treat
any gain realized upon a disposition of our common shares, or any so-called
excess distribution received on our common shares, as ordinary income, and to
pay an interest charge on a portion of such gain or distributions, unless the
shareholder makes a timely and effective qualified electing fund election, or
QEFElection, or a mark-to-market election with respect to our shares.
A U.S. shareholder who makes a QEF Election generally must report on a current
basis its share of our net capital gain and ordinary earnings for any year in
which we are a PFIC, whether or not we distribute any amounts to our
shareholders. A U.S. shareholder who makes the mark-to-market election generally
must include as ordinary income each year the excess of the fair market value of
the common shares over the shareholders adjusted tax basis therein. Each U.S.
shareholder should consult its own tax advisors regarding the PFIC rules and the
U.S. federal income tax consequences of the acquisition, ownership and
disposition of our common shares.

The effect of comprehensive U.S. tax reform legislation
on the Company is uncertain.

On December 22, 2017, the U.S. government enacted H.R. 1, An
Act to provide for reconciliation pursuant to titles II and V of the concurrent
resolution on the budget for fiscal year 2018 (informally titled the Tax Cuts
and Jobs Act). Among a number of significant changes to the U.S. federal income
tax rules, the Tax Cuts and Jobs Act reduces the marginal U.S. corporate income
tax rate from 35% to 21%, limits the deduction for net interest expense, shifts
the United States toward a more territorial tax system, and imposes new taxes to
combat erosion of the U.S. federal income tax base, such as a one-time tax on
earnings of certain foreign subsidiaries that were previously tax deferred and a new minimum tax on foreign earnings. The effects
of the Tax Cuts and Jobs Act on our company, whether adverse or favorable, are
uncertain, and may not become evident for some period of time, but could have a
material adverse effect on our business, financial position or results from
operations.

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|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

It may be difficult for non-Canadian investors to obtain
and enforce judgments against us because of our Canadian incorporation and
presence.

We are a corporation existing under the laws of the Province of
  Ontario, Canada. Several of our directors and officers, and several of the
  experts are residents of Canada, and all or a substantial portion of their
  assets, and a substantial portion of our assets, are located outside the United
  States. Consequently, although we have appointed an agent for service of process
  in the United States, it may be difficult for holders of our securities who
  reside in the United States to effect service within the United States upon
  those directors and officers, and the experts who are not residents of the
  United States. It may also be difficult for holders of our securities who reside
  in the United States to realize in the United States upon judgments of courts of
  the United States predicated upon our civil liability and the civil liability of
  our directors, officers and experts under the United States federal securities
  laws. Investors should not assume that Canadian courts (i) would enforce
  judgments of United States courts obtained in actions against us or such
  directors, officers or experts predicated upon the civil liability provisions of
  the United States federal securities laws or the securities or blue sky laws
  of any state or jurisdiction of the United States or (ii) would enforce, in
  original actions, liabilities against us or such directors, officers or experts
  predicated upon the United States federal securities laws or any securities or
  blue sky laws of any state or jurisdiction of the United States. In addition,
  the protections afforded by Canadian securities laws may not be available to
investors in the United States.

If there are substantial sales of our common shares, the
market price of our common shares could decline.

Sales of substantial numbers of our common shares could cause a
decline in the market price of our common shares. Any sales by existing
shareholders or holders who exercise their warrants or stock options may have an
adverse effect on our ability to raise capital and may adversely affect the
market price of our common shares.

We are an emerging growth company, and we cannot be
certain if the reduced reporting requirements applicable to emerging growth
companies will make our common shares less attractive to investors.

We are an emerging growth company, as defined in the JOBS
Act. For as long as we continue to be an emerging growth company, we may take
advantage of exemptions from various reporting requirements that are applicable
to other public companies that are not emerging growth companies, including not
being required to comply with the auditor attestation requirements of Section
404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding
executive compensation in our periodic reports and exemptions from the
requirements of holding a nonbinding advisory vote on executive compensation and
shareholder approval of any golden parachute payments not previously approved.
We could be an emerging growth company for up to five years, although
circumstances could cause us to lose that status earlier. We cannot predict if
investors will find our common shares less attractive because we may rely on
these exemptions. If some investors find our common shares less attractive as a
result, there may be a less active trading market for our common shares and our
share price may be more volatile.

Any failure to maintain an effective system of internal
controls may result in material misstatements of our consolidated financial
statements or cause us to fail to meet our reporting obligations or fail to
prevent fraud; and in that case, our shareholders could lose confidence in our
financial reporting, which would harm our business and could negatively impact
the price of our common shares.

Effective internal controls are necessary for us to provide
reliable financial reports and prevent fraud. If we fail to maintain an
effective system of internal controls, we might not be able to report our
financial results accurately or prevent fraud; and in that case, our
shareholders could lose confidence in our financial reporting, which would harm
our business and could negatively impact the price of our common shares. While
we believe that we have sufficient personnel and review procedures to allow us
to maintain an effective system of internal controls, we cannot provide
assurance that we will not experience potential material weaknesses in our
internal control. Even if we conclude that our internal control over financial
reporting provides reasonable assurance regarding the reliability of financial
reporting and the preparation of consolidated financial statements for external
purposes in accordance with IFRS as issued by the IASB, because of its inherent limitations,
internal control over financial reporting may not prevent or detect fraud or
misstatements. Failure to implement required new or improved controls, or
difficulties encountered in their implementation, could harm our results of
operations or cause us to fail to meet our future reporting obligations.

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|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

If we fail to timely achieve and maintain the adequacy of our
internal control over financial reporting, we may not be able to produce
reliable financial reports or help prevent fraud. Our failure to achieve and
maintain effective internal control over financial reporting could prevent us
from complying with our reporting obligations on a timely basis, which could
result in the loss of investor confidence in the reliability of our consolidated
financial statements, harm our business and negatively impact the trading price
of our common shares.

As a foreign private issuer, we are not subject to
  certain United States securities law disclosure requirements that apply to a
  domestic United States issuer, which may limit the information which would be
publicly available to our shareholders.

As a foreign private issuer, we are not required to comply with
all the periodic disclosure requirements of the Exchange Act, and therefore,
there may be less publicly available information about us than if we were a
United States domestic issuer. For example, we are not subject to the proxy
rules in the United States and disclosure with respect to our annual meetings
will be governed by Canadian requirements.

Our charter documents and certain Canadian legislation
could delay or deter a change of control, limit attempts by our shareholders to
replace or remove our current management and limit the market price of our
common shares.

Our authorized preferred shares are available for issuance from
time to time at the discretion of our board of directors, without shareholder
approval. Our articles grant our board of directors the authority to determine
the special rights and restrictions granted to or imposed on any unissued series
of preferred shares, and those rights may be superior to those of our common
shares. Further, the Investment Canada Act subjects any acquisition of control
of a company by a non-Canadian to government review if the value of the assets
as calculated pursuant to the legislation exceeds a threshold amount or in other
circumstances determined at the discretion of the Canadian government. A
reviewable acquisition may not proceed unless the relevant minister is satisfied
that the investment is likely to be of net benefit to Canada and the Canadian
government is satisfied that no other important concerns arise from the
acquisition of control. Any of the foregoing could prevent or delay a change of
control and may deprive or limit strategic opportunities to our shareholders to
sell their shares.

DISCLOSURE CONTROLS AND INTERNAL CONTROLS OVER FINANCIAL
REPORTING

We have implemented a system of internal controls that we
believe adequately protects our assets and is appropriate for the nature of our
business and the size of our operations. Our internal control system was
designed to provide reasonable assurance that all transactions are accurately
recorded, that transactions are recorded as necessary to permit preparation of
financial statements in accordance with IFRS, and that our assets are
safeguarded.

These internal controls include disclosure controls and
procedures designed to ensure that information required to be disclosed by us is
accumulated and communicated as appropriate to allow timely decisions regarding
required disclosure.

Internal control over financial reporting means a process
designed by or under the supervision of the Chief Executive Officer and the
Chief Financial Officer to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with IFRS as issued by the IASB. The
internal controls are not expected to prevent and detect all misstatements due
to error or fraud.

There were no changes in our internal control over financial
reporting that occurred during the three months ended December 31, 2017 that
have materially affected, or are reasonably likely to materially affect, our
internal control over financial reporting. As at December 31, 2017, we have
assessed the effectiveness of our internal control over financial reporting and
disclosure controls and procedures using the Committee of Sponsoring
Organizations of the Treadway Commissions 2013 framework. Based on their
evaluation, the Chief Executive Officer and the Chief Financial Officer have
concluded that these controls and procedures are effective.

- 39 -

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|TRILLIUM THERAPEUTICS INC.                
|------------------------------------------
|Managements
      Discussion and Analysis

ADDITIONAL INFORMATION

Additional information regarding our company can be found on
SEDAR at www.sedar.com, and on EDGAR at www.sec.gov/edgar.shtml.

- 40 -

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