---

|                                 
|---------------------------------
|                                 
|                                 
|CONSOLIDATED FINANCIAL STATEMENTS
|                                 
|                                 
|FOR THE YEARS ENDED              
|DECEMBER 31, 2017 AND 2016       
|                                 
|                                 
|                                 
|                                 
|2488 Dunwin Drive                
|Mississauga, Ontario L5L 1J9     
|www.trilliumtherapeutics.com     

---

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Directors of Trillium Therapeutics
Inc.

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated financial
statements of Trillium Therapeutics Inc. (the Company), which comprise
the consolidated statements of financial position as at December 31, 2017 and
December 31, 2016, the consolidated statements of loss and comprehensive loss,
changes in equity and cash flows for the years then ended, and the related
notes, comprising a summary of significant accounting policies and other
explanatory information collectively referred to as the consolidated financial
statements.

In our opinion, the consolidated financial statements present
fairly, in all material respects, the consolidated financial position of the
Company as at December 31, 2017 and December 31, 2016, and its consolidated
financial performance and its consolidated cash flows for the years then ended
in accordance with International Financial Reporting Standards (IFRSs) as issued
by the International Accounting Standards Board.

Basis for Opinion

Managements Responsibility for the Consolidated Financial
Statements

Management is responsible for the preparation and fair
presentation of these consolidated financial statements in accordance with
International Financial Reporting Standards (IFRSs) as issued by the
International Accounting Standards Board, and for such internal control as
management determines is necessary to enable the preparation of consolidated
financial statements that are free from material misstatement, whether due to
fraud or error.

Auditors Responsibility

Our responsibility is to express an opinion on these
consolidated financial statements based on our audits. We conducted our audits
in accordance with Canadian generally accepted auditing standards and the
standards of the Public Company Accounting Oversight Board (United States)
(PCAOB). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the consolidated financial statements are
free from material misstatement, whether due to error or fraud. Those standards
also require that we comply with ethical requirements, including independence.
We are required to be independent with respect to the Company in accordance with
the ethical requirements that are relevant to our audit of the consolidated
financial statements in Canada, the U.S. federal securities laws and the
applicable rules and regulations of the Securities and Exchange Commission and
the PCAOB. We are a public accounting firm registered with the PCAOB.

An audit includes performing procedures to assess the risks of
material misstatements of the consolidated financial statements, whether due to
error or fraud, and performing procedures to respond to those risks. Such
procedures included obtaining and examining, on a test basis, audit evidence
regarding the amounts and disclosures in the consolidated financial statements.
The procedures selected depend on our judgment, including the assessment of the
risks of material misstatement of the consolidatedfinancial statements,
whether due to fraud or error. In making those risk assessments, we consider
internal control relevant to the Companys preparation and fair presentation of
the consolidated financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Companys internal control.The
Company is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Accordingly, we express no such
opinion. An audit also includes evaluating the appropriateness of
accounting policies and principles used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall presentation of
the consolidated financial statements.

We believe that the audit evidence we have obtained in our
audits is sufficient and appropriate to provide a reasonable basis for our audit
opinion.

We have served as the Company's auditor since 2004.

|Toronto, Canada |                                   
|--------------- | ----------------------------------
|March 8, 2018   | Chartered Professional Accountants
|                | Licensed Public Accountants       

---

|TRILLIUM THERAPEUTICS INC.                    
|----------------------------------------------
|Consolidated Statements of Financial Position 
|Amounts in
      thousands of Canadian dollars

|                                         |  |      |  |  | As at             |   |  | As at             |  
|---------------------------------------- |  | ---- |  |  | ----------------- | - |  | ----------------- | -
|                                         |  | Note |  |  | December 31, 2017 |   |  | December 31, 2016 |  
|                                         |  |      |  |  | **$**             |   |  | $                 |  
|                                         |  |      |  |  |                   |   |  |                   |  
|                                         |  |      |  |  |                   |   |  |                   |  
|ASSETS                                   |  |      |  |  |                   |   |  |                   |  
|                                         |  |      |  |  |                   |   |  |                   |  
|Current                                  |  |      |  |  |                   |   |  |                   |  
|Cash and cash equivalents                |  |      |  |  | 28,361            |   |  | 50,473            |  
|Marketable securities                    |  | 3    |  |  | 53,430            |   |  | -                 |  
|Amounts receivable                       |  | 4    |  |  | 669               |   |  | 527               |  
|Prepaid expenses                         |  |      |  |  | 960               |   |  | 402               |  
|                                         |  |      |  |  |                   |   |  |                   |  
|Total current assets                     |  |      |  |  | 83,420            |   |  | 51,402            |  
|                                         |  |      |  |  |                   |   |  |                   |  
|Property and equipment                   |  | 5    |  |  | 2,882             |   |  | 3,260             |  
|Intangible assets                        |  | 6    |  |  | 7,990             |   |  | 11,850            |  
|Other assets                             |  |      |  |  | 111               |   |  | 111               |  
|                                         |  |      |  |  |                   |   |  |                   |  
|Total non-current assets                 |  |      |  |  | 10,983            |   |  | 15,221            |  
|                                         |  |      |  |  |                   |   |  |                   |  
|Total assets                             |  |      |  |  | 94,403            |   |  | 66,623            |  
|                                         |  |      |  |  |                   |   |  |                   |  
|LIABILITIES                              |  |      |  |  |                   |   |  |                   |  
|                                         |  |      |  |  |                   |   |  |                   |  
|Current                                  |  |      |  |  |                   |   |  |                   |  
|Accounts payable and accrued liabilities |  | 7,9  |  |  | 14,092            |   |  | 5,513             |  
|Other current liabilities                |  | 8    |  |  | 428               |   |  | 403               |  
|                                         |  |      |  |  |                   |   |  |                   |  
|Total current liabilities                |  |      |  |  | 14,520            |   |  | 5,916             |  
|                                         |  |      |  |  |                   |   |  |                   |  
|Loan payable                             |  | 8    |  |  | 98                |   |  | 191               |  
|Deferred lease inducement                |  | 8    |  |  | 407               |   |  | 438               |  
|Other liabilities                        |  | 8    |  |  | 801               |   |  | 1,959             |  
|                                         |  |      |  |  |                   |   |  |                   |  
|Total non-current liabilities            |  |      |  |  | 1,306             |   |  | 2,588             |  
|                                         |  |      |  |  |                   |   |  |                   |  
|Total liabilities                        |  |      |  |  | 15,826            |   |  | 8,504             |  
|                                         |  |      |  |  |                   |   |  |                   |  
|EQUITY                                   |  |      |  |  |                   |   |  |                   |  
|Common shares                            |  | 9    |  |  | 145,920           |   |  | 103,819           |  
|Series I preferred shares                |  | 9    |  |  | 7,586             |   |  | 7,716             |  
|Series II preferred shares               |  | 9    |  |  | 45,120            |   |  | 24,369            |  
|Warrants                                 |  | 9    |  |  | 6,871             |   |  | 6,888             |  
|Contributed surplus                      |  |      |  |  | 15,191            |   |  | 12,350            |  
|Deficit                                  |  |      |  |  | (142,111          | ) |  | (97,023           | )
|                                         |  |      |  |  |                   |   |  |                   |  
|Total equity                             |  |      |  |  | 78,577            |   |  | 58,119            |  
|                                         |  |      |  |  |                   |   |  |                   |  
|Total liabilities and equity             |  |      |  |  | 94,403            |   |  | 66,623            |  

Commitments and contingencies[note 13]

Approved by the Board and authorized for issue on March 8,
2018:

|(signed) Luke Beshar, Director | (signed) Henry Friesen, Director
|------------------------------ | --------------------------------

See accompanying notes to the consolidated financial
statements

- 1 -

---

|TRILLIUM THERAPEUTICS INC.                                              
|------------------------------------------------------------------------
|Consolidated Statements of Loss and Comprehensive
      Loss            
|Amounts in
      thousands of Canadian dollars, except per share amounts

|                                             |  |          |  |  | Year ended        |   |  | Year ended        |  
|-------------------------------------------- |  | -------- |  |  | ----------------- | - |  | ----------------- | -
|                                             |  | **Note** |  |  | December 31, 2017 |   |  | December 31, 2016 |  
|                                             |  |          |  |  | **$**             |   |  | $                 |  
|                                             |  |          |  |  |                   |   |  |                   |  
|                                             |  |          |  |  |                   |   |  |                   |  
|EXPENSES                                     |  |          |  |  |                   |   |  |                   |  
|Research and development                     |  | 11       |  |  | 37,135            |   |  | 29,789            |  
|General and administrative                   |  | 12       |  |  | 3,861             |   |  | 3,933             |  
|                                             |  |          |  |  |                   |   |  |                   |  
|Operating expenses                           |  |          |  |  | 40,996            |   |  | 33,722            |  
|                                             |  |          |  |  |                   |   |  |                   |  
|Finance income                               |  |          |  |  | (722              | ) |  | (417              | )
|Finance costs                                |  |          |  |  | 68                |   |  | 82                |  
|Net foreign currency loss                    |  |          |  |  | 4,742             |   |  | 2,027             |  
|                                             |  |          |  |  |                   |   |  |                   |  
|Net finance costs                            |  |          |  |  | 4,088             |   |  | 1,692             |  
|                                             |  |          |  |  |                   |   |  |                   |  
|Net loss before income
      taxes           |  |          |  |  | 45,084            |   |  | 35,414            |  
|                                             |  |          |  |  |                   |   |  |                   |  
|Current income tax expense                   |  | 10       |  |  | 4                 |   |  | 9                 |  
|Deferred income tax recovery                 |  | 10       |  |  | -                 |   |  | (3,690            | )
|Total income tax expense (recovery)          |  |          |  |  | 4                 |   |  | (3,681            | )
|                                             |  |          |  |  |                   |   |  |                   |  
|Net loss and comprehensive loss for the year |  |          |  |  | 45,088            |   |  | 31,733            |  
|                                             |  |          |  |  |                   |   |  |                   |  
|Basic and diluted loss per common share      |  | 9(c)     |  |  | 4.61              |   |  | 4.06              |  

See accompanying notes to the consolidated financial
statements

- 2 -

---

|TRILLIUM THERAPEUTICS INC.                    
|----------------------------------------------
|Consolidated Statements of Changes in Equity  
|Amounts in
      thousands of Canadian dollars

|                                                                             |  | Common
      shares |  |  | Series I
      preferred shares |   |  | Series II
      preferred shares |   |  | Warrants |   |  | Contributed |   |  |         |   |  |         |  
|---------------------------------------------------------------------------- |  | ------------------- |  |  | ------------------------------- | - |  | -------------------------------- | - |  | -------- | - |  | ----------- | - |  | ------- | - |  | ------- | -
|                                                                             |  | Number              |  |  | Amount                          |   |  | Number                           |   |  | Amount   |   |  | Number      |   |  | Amount  |   |  |         |  
|                                                                             |  | #                   |  |  | $                               |   |  | #                                |   |  | $        |   |  | #           |   |  | $       |   |  | $       |  
|                                                                             |  |                     |  |  | (note 9                         | ) |  |                                  |   |  | (note 9  | ) |  |             |   |  | (note 9 | ) |  | (note 9 | )
|                                                                             |  |                     |  |  |                                 |   |  |                                  |   |  |          |   |  |             |   |  |         |   |  |         |  
|Balance, December 31, 2016                                                   |  | 7,845,184           |  |  | 103,819                         |   |  | 53,226,191                       |   |  | 7,716    |   |  | 1,077,605   |   |  | 24,369  |   |  | 6,888   |  
|                                                                             |  |                     |  |  |                                 |   |  |                                  |   |  |          |   |  |             |   |  |         |   |  |         |  
|Net loss and
      comprehensive loss for the year                           |  | -                   |  |  | -                               |   |  | -                                |   |  | -        |   |  | -           |   |  | -       |   |  | -       |  
|                                                                             |  |                     |  |  |                                 |   |  |                                  |   |  |          |   |  |             |   |  |         |   |  |         |  
|Transactions with
      owners of the Company, recognized directly in equity |  |                     |  |  |                                 |   |  |                                  |   |  |          |   |  |             |   |  |         |   |  |         |  
|                                                                             |  |                     |  |  |                                 |   |  |                                  |   |  |          |   |  |             |   |  |         |   |  |         |  
|Shares issued, net of
      issue costs                                      |  | 4,899,674           |  |  | 38,073                          |   |  | -                                |   |  | -        |   |  | 3,650,000   |   |  | 24,473  |   |  | -       |  
|Conversion of DSUs from equity to cash
      settlement                      |  | -                   |  |  | -                               |   |  | -                                |   |  | -        |   |  | -           |   |  | -       |   |  | -       |  
|Exercise of warrants                                                         |  | 13,332              |  |  | 176                             |   |  | -                                |   |  | -        |   |  | -           |   |  | -       |   |  | (17     | )
|Conversion of preferred shares                                               |  | 389,214             |  |  | 3,852                           |   |  | (900,364                         | ) |  | (130     | ) |  | (359,202    | ) |  | (3,722  | ) |  | -       |  
|Share-based compensation                                                     |  | -                   |  |  | -                               |   |  | -                                |   |  | -        |   |  | -           |   |  | -       |   |  | -       |  
|Total transactions with owners of the
      Company                          |  | 5,302,220           |  |  | 42,101                          |   |  | (900,364                         | ) |  | (130     | ) |  | 3,290,798   |   |  | 20,751  |   |  | (17     | )
|Balance, December 31, 2017                                                   |  | 13,147,404          |  |  | 145,920                         |   |  | 52,325,827                       |   |  | 7,586    |   |  | 4,368,403   |   |  | 45,120  |   |  | 6,871   |  

|                                                                             |  | Common
      shares |  |  | Series I
      preferred shares |   |  | Series II
      preferred shares |   |  | Warrants |   |  | Contributed |  |  |         |   |  |         |  
|---------------------------------------------------------------------------- |  | ------------------- |  |  | ------------------------------- | - |  | -------------------------------- | - |  | -------- | - |  | ----------- |  |  | ------- | - |  | ------- | -
|                                                                             |  | Number              |  |  | Amount                          |   |  | Number                           |   |  | Amount   |   |  | Number      |  |  | Amount  |   |  |         |  
|                                                                             |  | #                   |  |  | $                               |   |  | #                                |   |  | $        |   |  | #           |  |  | $       |   |  | $       |  
|                                                                             |  |                     |  |  | (note 9                         | ) |  |                                  |   |  | (note 9  | ) |  |             |  |  | (note 9 | ) |  | (note 9 | )
|                                                                             |  |                     |  |  |                                 |   |  |                                  |   |  |          |   |  |             |  |  |         |   |  |         |  
|Balance, December 31, 2015                                                   |  | 7,796,137           |  |  | 103,340                         |   |  | 53,788,579                       |   |  | 7,798    |   |  | 1,077,605   |  |  | 24,369  |   |  | 6,926   |  
|                                                                             |  |                     |  |  |                                 |   |  |                                  |   |  |          |   |  |             |  |  |         |   |  |         |  
|Net loss and
      comprehensive loss for the year                           |  | -                   |  |  | -                               |   |  | -                                |   |  | -        |   |  | -           |  |  | -       |   |  | -       |  
|                                                                             |  |                     |  |  |                                 |   |  |                                  |   |  |          |   |  |             |  |  |         |   |  |         |  
|Transactions with
      owners of the Company, recognized directly in equity |  |                     |  |  |                                 |   |  |                                  |   |  |          |   |  |             |  |  |         |   |  |         |  
|                                                                             |  |                     |  |  |                                 |   |  |                                  |   |  |          |   |  |             |  |  |         |   |  |         |  
|Exercise of warrants                                                         |  | 30,301              |  |  | 397                             |   |  | -                                |   |  | -        |   |  | -           |  |  | -       |   |  | (38     | )
|Conversion of preferred shares                                               |  | 18,746              |  |  | 82                              |   |  | (562,388                         | ) |  | (82      | ) |  | -           |  |  | -       |   |  | -       |  
|Share-based compensation                                                     |  | -                   |  |  | -                               |   |  | -                                |   |  | -        |   |  | -           |  |  | -       |   |  | -       |  
|Total transactions with owners of the
      Company                          |  | 49,047              |  |  | 479                             |   |  | (562,388                         | ) |  | (82      | ) |  | -           |  |  | -       |   |  | (38     | )
|Balance, December 31, 2016                                                   |  | 7,845,184           |  |  | 103,819                         |   |  | 53,226,191                       |   |  | 7,716    |   |  | 1,077,605   |  |  | 24,369  |   |  | 6,888   |  

See accompanying notes to the consolidated financial
statements

- 3 -

---

|TRILLIUM THERAPEUTICS INC.                    
|----------------------------------------------
|Consolidated Statements of Cash Flows         
|Amounts in
      thousands of Canadian dollars

|                                                                   |  |      |         |   | Year ended        |         |   | Year ended        |  
|------------------------------------------------------------------ |  | ---- | ------- | - | ----------------- | ------- | - | ----------------- | -
|                                                                   |  | Note |         |   | December 31, 2017 |         |   | December 31, 2016 |  
|                                                                   |  |      |         |   | **$**             |         |   | $                 |  
|                                                                   |  |      |         |   |                   |         |   |                   |  
|OPERATING ACTIVITIES                                               |  |      |         |   |                   |         |   |                   |  
|Net loss for the year                                              |  |      |         |   | (45,088           | )       |   | (31,733           | )
|Adjustments for items not
      affecting cash                     |  |      |         |   |                   |         |   |                   |  
|Share-based
      compensation                                     |  | 9    |         |   | 3,255             |         |   | 3,690             |  
|Interest accretion                                                 |  | 8    |         |   | 50                |         |   | 65                |  
|Amortization of
      intangible assets                            |  | 6,11 |         |   | 3,860             |         |   | 3,684             |  
|Depreciation of property and equipment                             |  | 5,11 |         |   | 849               |         |   | 604               |  
|Non-cash change in
      deferred lease inducement                 |  | 8    |         |   | 2                 |         |   | 3                 |  
|Change in fair value of contingent consideration                   |  | 8    |         |   | (1,158            | )       |   | 209               |  
|Deferred income
      tax recovery                                 |  |      |         |   | -                 |         |   | (3,690            | )
|Unrealized foreign exchange
      loss                             |  |      |         |   | 3,748             |         |   | 1,249             |  
|                                                                   |  |      |         |   | (34,482           | )       |   | (25,919           | )
|Changes in non-cash working
      capital balances                 |  |      |         |   |                   |         |   |                   |  
|Amounts receivable                                                 |  | 4    |         |   | (142              | )       |   | 485               |  
|Prepaid expenses                                                   |  |      |         |   | (558              | )       |   | 779               |  
|Accounts payable
      and accrued liabilities                     |  | 7    |         |   | 8,165             |         |   | 1,815             |  
|Other current liabilities                                          |  |      |         |   | (21               | )       |   | (23               | )
|Decrease in other assets                                           |  |      |         |   | -                 |         |   | 11                |  
|                                                                   |  |      |         |   |                   |         |   |                   |  
|Cash used in operating activities                                  |  |      |         |   | (27,038           | )       |   | (22,852           | )
|                                                                   |  |      |         |   |                   |         |   |                   |  
|INVESTING ACTIVITIES                                               |  |      |         |   |                   |         |   |                   |  
|Net purchases of marketable
      securities                       |  |      |         |   | (56,994           | )       |   | -                 |  
|Purchase of property and equipment                                 |  | 5    |         |   | (471              | )       |   | (2,966            | )
|Acquisition of Fluorinov, net of cash acquired                     |  |      |         |   | -                 |         |   | (9,575            | )
|                                                                   |  |      |         |   |                   |         |   |                   |  
|Cash used in investing activities                                  |  |      |         |   | (57,465           | )       |   | (12,541           | )
|                                                                   |  |      |         |   |                   |         |   |                   |  
|FINANCING ACTIVITIES                                               |  |      |         |   |                   |         |   |                   |  
|Repayment of loan payable                                          |  | 8    |         |   | (125              | )       |   | (105              | )
|Receipt of deferred lease
      inducement                         |  |      |         |   | -                 |         |   | 90                |  
|Recognition of deferred lease inducement                           |  |      |         |   | (5                | )       |   | -                 |  
|Issuance of share capital, net of issuance costs                   |  | 9    |         |   | 62,705            |         |   | 359               |  
|                                                                   |  |      |         |   |                   |         |   |                   |  
|Cash provided by financing activities                              |  |      |         |   | 62,575            |         |   | 344               |  
|                                                                   |  |      |         |   |                   |         |   |                   |  
|Impact of foreign exchange rate on cash and cash
      equivalents |  |      | (184    | ) |                   | (1,249  | )
|                                                                   |  |      |         |   |                   |         |   |                   |  
|Net decrease in
      cash and cash equivalents during the year    |  |      | (22,112 | ) |                   | (36,298 | )
|                                                                   |  |      |         |   |                   |         |   |                   |  
|Cash and cash equivalents, beginning of year                       |  |      |         |   | 50,473            |         |   | 86,771            |  
|                                                                   |  |      |         |   |                   |         |   |                   |  
|Cash and cash equivalents, end of year                             |  |      |         |   | 28,361            |         |   | 50,473            |  
|                                                                   |  |      |         |   |                   |         |   |                   |  
|Supplemental cash flow
      information                           |  |      |         |   |                   |         |   |                   |  
|                                                                   |  |      |         |   |                   |         |   |                   |  
|Preferred shares converted to common shares (note 9)               |  |      |         |   | 3,852             |         |   | 82                |  

See accompanying notes to the consolidated financial
statements

- 4 -

---

|TRILLIUM THERAPEUTICS INC.                                                              
|----------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                          
|For the years ended December 31, 2017 and 2016                                          
|Amounts in
      thousands of Canadian dollars, except per share amounts and where noted

|1. | Corporate information                                                                                                                                                                                                                                                                                                                                                                                                                                          
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | Trillium Therapeutics Inc. (the Company or Trillium)
      is a clinical-stage immuno-oncology company developing innovative
      therapies for the treatment of cancer. The Company is a corporation
      existing under the laws of the Province of Ontario. The Companys head
      office is located at 2488 Dunwin Drive, Mississauga, Ontario, L5L 1J9, and
      it is listed on the Toronto Stock Exchange and on the NASDAQ Stock
      Market.

|2.  | Basis of presentation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|(a) | **Statement of compliance**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | The consolidated financial statements have been prepared
      in accordance with International Financial Reporting Standards (IFRS) as
      issued by the International Accounting Standards Board (IASB).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | These consolidated financial statements were approved by
      the Companys Board of Directors on March 8, 2018.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|(b) | **Basis of measurement**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | These consolidated financial statements have been
      prepared on the historical cost basis, except for held-for-trading
      financial assets, cash-settled deferred share units (DSUs) and
      contingent consideration, which are measured at fair value.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|(c) | Functional and presentation currency                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | These consolidated financial statements are presented in
      Canadian dollars, which is the Companys functional currency.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|(d) | **Use of significant estimates and
      assumptions**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | 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
      the Companys ability to continue as a going concern. Actual results could
      differ materially from these estimates and assumptions. The Company
      reviews its 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.                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | Management has applied significant estimates and
      assumptions to the following:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | Intangible assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | The Company estimates the useful lives of intangible
      assets from the date they are available for use in the manner intended by
      management and periodically reviews the useful lives to reflect
      managements intent about developing and commercializing the assets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | Impairment of long-lived assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | Long-lived assets are reviewed for impairment upon the
      occurrence of events or changes in circumstances indicating that the
      carrying value of the asset may not be recoverable. For the purpose of
      measuring recoverable amounts, assets are grouped at the lowest levels for
      which there are separately identifiable cash flows (cash-generating
      units). The recoverable amount is the higher of an assets fair value less
      costs to sell and value in use (being the present value of the expected
      future cash flows of the relevant asset or cash-generating unit). An
      impairment loss is recognized for the amount by which the assets carrying
      amount exceeds its recoverable amount. Management evaluates impairment
      losses for potential reversals when events or circumstances warrant such
      consideration.

- 5 -

---

|TRILLIUM THERAPEUTICS INC.                                                              
|----------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                          
|For the years ended December 31, 2017 and 2016                                          
|Amounts in
      thousands of Canadian dollars, except per share amounts and where noted

|2. | Basis of presentation
(continued)
|-- | ---------------------------------

Valuation of contingent
consideration

The fair value of contingent
consideration on the acquisition of Fluorinov was calculated using a discounted
cash flow approach, where a risk-adjusted discount rate was applied to future
cash flows. The discount rates used require significant estimates of
probabilities of future preclinical and clinical success that are inherently
uncertain. The estimate of the potential timing of future events is also
uncertain. Changes in theseestimates affect the fair value estimates of
other liabilities.

Valuation of share-based
compensation and warrants

Management measures the costs for
share-based compensation and warrants using market-based option valuation
techniques. Assumptions are made and estimates are used in applying the
valuation techniques. These include estimating the future volatility of the
share price, expected dividend yield, expected risk-free interest rate, future
employee turnover rates, future exercise behaviours and corporate performance.
Such estimates and assumptions are inherently uncertain. Changes in these
assumptions affect the fair value estimates of share-based compensation and
warrants. The fair value of the cash-settled DSU liability is remeasured at each
reporting date, with the change in liability recognized in general and
administrative expenses.

Functional currency

Management considers the determination
of the functional currency of the Company a significant judgment. Management has
used its judgment to determine the functional currency that most faithfully
represents the economic effects of the underlying transactions, events and
conditions and considered various factors including the currency of historical
and future expenditures and the currency in which funds from financing
activities are generated. A Companys functional currency is only changed when
there is a material change in the underlying transactions, events and
conditions.

|**3.**  | Significant accounting policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|        | The accounting policies set out below have been applied
      consistently to all periods presented in these consolidated financial
      statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|**(a)** | Basis of consolidation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|        | These consolidated financial statements include the
      accounts of the Company and its wholly owned subsidiaries: Fluorinov from
      the date of its acquisition on January 26, 2016 to the date of its
      amalgamation on January 1, 2017, and Trillium Therapeutics USA Inc. from
      its date of incorporation on March 26, 2015.                                                                                                                                                                                                                                                                                                                                                  
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|        | Subsidiaries are fully consolidated from the date at
      which control is determined to have occurred and are deconsolidated from
      the date that the Company no longer controls the entity. The financial
      statements of the subsidiaries are prepared for the same reporting period
      as the Company using consistent accounting policies. Intercompany
      transactions, balances, and gains and losses on transactions between
      subsidiaries are eliminated.                                                                                                                                                                                                          
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|**(b)** | Foreign currency                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|        | Transactions in foreign currencies are translated to the
      functional currency at the rate on the date of the transactions. Monetary
      assets and liabilities denominated in foreign currencies are retranslated
      at the spot rate of exchange as at the reporting date. All differences are
      taken to profit or loss. Non-monetary items that are measured in terms of
      historical cost in a foreign currency are translated using the exchange
      rate as at the date of the initial transaction. Non-monetary items
      measured at fair value in a foreign currency are translated using the
      exchange rate at the date when the fair value was determined.

- 6 -

---

|TRILLIUM THERAPEUTICS INC.                                                              
|----------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                          
|For the years ended December 31, 2017 and 2016                                          
|Amounts in
      thousands of Canadian dollars, except per share amounts and where noted

|3. | Significant accounting policies
  (continued)
|-- | ---------------------------------------------

|(c) | Financial instruments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | Financial assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | A financial asset is classified as fair value through
      profit or loss if it is held for trading or is designated as such upon
      initial recognition. Attributable transaction costs are recognized in
      profit or loss as incurred. Financial assets at fair value through profit
      or loss are measured at fair value and changes therein are recognized in
      profit or loss.                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | Cash equivalents include guaranteed investment
      certificates (as at December 31, 2017 and 2016 of $8,800 and $21,529,
      respectively) with a maturity of 90 days or less. The Company has
      classified its cash and cash equivalents as fair value through profit or
      loss.                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | Marketable Securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | Marketable securities consist of guaranteed investment
      certificates with a maturity of greater than 90 days and less than one
      year. The Company has classified its marketable securities as fair value
      through profit or loss.                                                                                                                                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | Loans and receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | Loans and receivables are non-derivative financial assets
      with fixed or determinable payments that are not quoted in an active
      market. Loans and receivables are initially recognized at fair value plus
      transaction costs and subsequently measured at amortized cost using the
      effective interest rate method less any impairment losses. The Company has
      classified its amounts receivable as loans and receivables.                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | Derecognition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    | A financial asset is derecognized when the rights to
      receive cash flows from the asset have expired or when the Company has
      transferred its rights to receive cash flows from the asset.                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | Financial liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | Financial liabilities are recognized initially at fair
      value plus any directly attributable transaction costs, and subsequently
      at amortized cost using the effective interest rate method. The Company
      has classified its accounts payable and accrued liabilities and loan
      payable as financial liabilities.                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | Derecognition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    | A financial liability is derecognized when its
      contractual obligations are discharged, cancelled or expired.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | Common shares, preferred shares and warrants to purchase
      common shares are classified as equity. Incremental costs directly
      attributable to the issue of common shares, preferred shares and warrants
      are recognized as a deduction from equity, net of any tax
  effects.                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|(d) | Property and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | Recognition and measurement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    | Items of property and equipment are measured at cost less
      accumulated depreciation and accumulated impairment losses. Cost includes
      the expenditure that is directly attributable to the acquisition of the
      asset. When parts of an item of property and equipment have different
      useful lives, they are accounted for as separate items of property and
      equipment. Gains and losses on disposal of an item of property and
      equipment are determined by comparing the proceeds from disposal with the
      carrying amount of property and equipment, and are recognized in profit or
      loss.

- 7 -

---

|TRILLIUM THERAPEUTICS INC.                                                              
|----------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                          
|For the years ended December 31, 2017 and 2016                                          
|Amounts in
      thousands of Canadian dollars, except per share amounts and where noted

|3. | Significant accounting policies
  (continued)
|-- | ---------------------------------------------

Depreciation The estimated
useful lives and the methods of depreciation are as follows:

| | Asset              | Basis                                 
| | ------------------ | --------------------------------------
| |                    |                                       
| | Lab equipment      | 20% declining
      balance           
| | Computer equipment | 30% declining balance                 
| | Office equipment   | 20% declining
      balance           
| | Leaseholds         | Straight-line over expected lease term

|    | Estimates for depreciation methods, useful lives and
      residual values are reviewed at each reporting period-end and adjusted if
      appropriate. Depreciation expense is recognized in research and
      development expenses.                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|(e) | Intangible assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    | Research and development                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    | Expenditures on research activities, undertaken with the
      prospect of gaining new scientific or technical knowledge and
      understanding, are recognized in profit or loss as incurred.                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    | Development activities involve a plan or design for the
      production of new or substantially improved products and processes.
      Development expenditures are capitalized only if development costs can be
      measured reliably, the product or process is technically and commercially
      feasible, future economic benefits are probable, and the Company intends
      to complete development and has sufficient resources to complete
      development and to use or sell the asset. Other development expenditures
      are expensed as incurred. No internal development costs have been
      capitalized to date.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    | Research and development expenses include all direct and
      indirect operating expenses supporting the products in development. The
      costs incurred in establishing and maintaining patents are expensed as
      incurred.                                                                                                                                                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    | Intangible assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    | Intangible assets that consist of intellectual property
      are acquired separately and have finite useful lives are measured at cost
      less accumulated amortization and accumulated impairment losses.
      Subsequent expenditures are capitalized only when they increase the future
      economic benefits embodied in the specific asset to which it relates. All
      other expenditures are recognized in profit or loss as incurred.                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    | Amortization is recognized in profit or loss on a
      straight-line basis over the estimated useful lives of intangible assets
      from the date they are available for use in the manner intended by
      management. The Company is amortizing the intangible assets acquired on
      the acquisition of Fluorinov Pharma Inc. (Fluorinov) over four
    years.                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    | The amortization method and amortization period of an
      intangible asset with a finite life is reviewed at least annually. Changes
      in the expected useful life or the expected pattern of consumption of
      future economic benefits embodied in the asset are accounted for by
      changing the amortization period or method, as appropriate, and are
      treated as changes in accounting estimates. The amortization expense on
      intangible assets with finite lives is recognized in research and
      development expenses.                                                                                 

- 8 -

---

|TRILLIUM THERAPEUTICS INC.                                                              
|----------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                          
|For the years ended December 31, 2017 and 2016                                          
|Amounts in
      thousands of Canadian dollars, except per share amounts and where noted

|3. | Significant accounting policies
  (continued)
|-- | ---------------------------------------------

|(f) | Impairment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | Financial assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | A financial asset not carried as fair value through
      profit or loss is assessed at each reporting date to determine whether
      there is objective evidence that it is impaired. A financial asset is
      impaired if objective evidence indicates that a loss event has occurred
      after the initial recognition of the asset, and that the loss event had a
      negative effect on the estimated future cash flows of that asset that can
      be estimated reliably.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | An impairment test is performed, on an individual basis,
      for each material financial asset. Other individually non-material
      financial assets are tested as groups of financial assets with similar
      risk characteristics. Impairment losses are recognized in profit or
      loss.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | An impairment loss in respect of a financial asset
      measured at amortized cost is calculated as the difference between its
      carrying amount and the present value of the estimated future cash flows
      discounted at the asset's original effective interest rate. Losses are
      recognized in profit or loss and reflected in an allowance account against
      the respective financial asset. Interest on the impaired asset continues
      to be recognized through the unwinding of the discount. When a subsequent
      event causes the amount of impairment loss to decrease, the decrease in
      impairment loss is reversed through profit or loss.                                                                                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | Non-financial assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | The carrying amounts of the Company's non-financial
      assets are reviewed at each reporting date to determine whether there is
      any indication of impairment. If such an indication exists, the
      recoverable amount is estimated.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | The recoverable amount of an asset or a cash-generating
      unit is the greater of its value in use and its fair value less costs to
      sell. In assessing value in use, the estimated future cash flows are
      discounted to their present value using a pre-tax discount rate that
      reflects current market assessments of the time value of money and the
      risks specific to the asset or cash- generating unit. For the purpose of
      impairment testing, assets that cannot be tested individually are grouped
      together into the smallest group of assets that generate cash inflows from
      continuing use that are largely independent of cash inflows of other
      assets or cash-generating units. An impairment loss is recognized if the
      carrying amount of an asset or its related cash- generating unit exceeds
      its estimated recoverable amount. Impairment losses for intangible assets
      are recognized in research and development expenses. The Company is
      currently a single cash-generating unit.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | Impairment losses recognized in prior periods are
      assessed at each reporting date for any indications that the loss has
      decreased or no longer exists. An impairment loss is reversed if there has
      been a change in the estimates used to determine the recoverable amount.
      An impairment loss is reversed only to the extent that the asset's
      carrying amount does not exceed the carrying amount that would have been
      determined, net of depreciation or amortization, if no impairment loss had
      been recognized.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|(g) | Provisions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | A provision is recognized if, as a result of a past
      event, the Company has a present legal or constructive obligation that can
      be estimated reliably, and it is probable that an outflow of economic
      benefits will be required to settle the obligation. Provisions are
      assessed by discounting the expected future cash flows at a pre-tax rate
      that reflects current market assessments of the time value of money and the
      risks specific to the liability. The unwinding of the discount on
      provisions is recognized in finance costs.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | A provision for onerous contracts is recognized when the
      unavoidable costs of meeting the obligations under the contract exceed the
      economic benefits expected to be received under it. The provision is
      measured at the present value of the lower of the expected cost of
      terminating the contract and the expected net cost of continuing with the
      contract.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|(h) | Government assistance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | Government assistance relating to research and
      development is recorded as a reduction of expenses when the related
      expenditures are incurred.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

- 9 -

---

|TRILLIUM THERAPEUTICS INC.                                                              
|----------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                          
|For the years ended December 31, 2017 and 2016                                          
|Amounts in
      thousands of Canadian dollars, except per share amounts and where noted

|3. | Significant accounting policies
  (continued)
|-- | ---------------------------------------------

|(i)     | Share-based compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|        | The grant-date fair value of share-based payment awards
      granted to employees is recognized as personnel costs, with a
      corresponding increase in contributed surplus, over the period that the
      employees unconditionally become entitled to the awards. The amount
      recognized as an expense is adjusted to reflect the number of awards for
      which the related service and non-market vesting conditions are expected
      to be met, such that the amount ultimately recognized as an expense is
      based on the number of awards that met the related service and non-market
      performance conditions at the vesting date.                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|        | For equity-settled share-based payment transactions, the
      Company measures the goods or services received, and the corresponding
      increase in contributed surplus, at the fair value of the goods or
      services received, unless that fair value cannot be estimated reliably. If
      the Company cannot estimate reliably the fair value of the goods or
      services received, it measures their value by reference to the fair value
      of the equity instruments granted. Transactions measured by reference to
      the fair value of the equity instruments granted have their fair values
      remeasured at each vesting and reporting date until fully
vested.                                                                                                                                                                                                                                                                                                                                                                                                                                              
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|(j)     | Income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|        | Deferred tax is recognized in respect of temporary
      differences between the carrying amounts of assets and liabilities for
      financial reporting purposes and the amounts used for taxation purposes.
      Deferred tax is not recognized for temporary differences on the initial
      recognition of assets or liabilities in a transaction that is not a
      business combination and that affects neither accounting nor taxable
      income or loss.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|        | Deferred tax assets and liabilities are offset if there
      is a legally enforceable right to offset current tax assets and
      liabilities, and they relate to income taxes levied by the same tax
      authority on the same taxable entity.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|        | Deferred tax is measured at the tax rates that are
      expected to be applied to temporary differences when they reverse, based
      on the laws that have been enacted or substantively enacted at the
      reporting date. A deferred tax asset is recognized for unused tax losses,
      tax credits and deductible temporary differences, to the extent that it is
      probable that future taxable profits will be available against which they
      can be utilized.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|        | Investment tax credits earned from scientific research
      and development expenditures are recorded when collectability is
      reasonably assured.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|(k)     | Loss per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|        | Basic loss per share is computed by dividing the net loss
      available to common shareholders by the weighted average number of shares
      outstanding during the reporting period. Diluted loss per share is
      computed similar to basic loss per share except that the weighted average
      number of shares outstanding are increased to include additional shares
      for the assumed exercise of stock options, warrants, and conversion of
      preferred shares, if dilutive. The number of additional shares is
      calculated by assuming that outstanding preferred shares would convert to
      common shares and that outstanding stock options and warrants were
      exercised and that the proceeds from such exercises were used to acquire
      common stock at the average market price during the reporting period. The
      inclusion of the Company's stock options, warrants and preferred shares in
      the computation of diluted loss per share has an antidilutive effect on
      the loss per share and have therefore been excluded from the calculation
      of diluted loss per share.
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|**(l)** | Business combinations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|        | Business combinations are accounted for using the
      acquisition method. The cost of an acquisition is measured as the
      aggregate of the consideration transferred measured at the acquisition
      date fair value. Acquisition costs incurred are expensed and included in
      general and administrative expenses in the consolidated statements of
      loss. When the Company acquires a business, it assesses the assets
      acquired and liabilities assumed for appropriate classification and
      designation in accordance with the contractual terms, economic
      circumstances and pertinent conditions at the acquisition date. Any
      contingent consideration to be transferred by the acquirer will be
      recognized at fair value at the acquisition date. Subsequent changes to
      the fair value of the contingent consideration that is deemed to be an
      asset or liability will be recognized in accordance with IAS 39
      Financial Instruments: Recognition and Measurementin the
      consolidated statements of loss.                                                         

- 10 -

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|TRILLIUM THERAPEUTICS INC.                                                              
|----------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                          
|For the years ended December 31, 2017 and 2016                                          
|Amounts in
      thousands of Canadian dollars, except per share amounts and where noted

|3. | Significant accounting policies
  (continued)
|-- | ---------------------------------------------

Goodwill is initially measured at cost,
being the excess of the aggregate of the consideration transferred and the
amount recognized for non-controlling interests, and any previous interest held,
over the net identifiable assets acquired and liabilities assumed. If the fair
value of the net assets acquired is in excess of the aggregate consideration
transferred, the Company re-assesses whether it has correctly identified all of
the assets acquired and all of the liabilities assumed and reviews the
procedures used to measure the amounts to be recognized at the acquisition date.
If the reassessment still results in an excess of the fair value of net assets
acquired over the aggregate consideration transferred, then the gain is
recognized in the consolidated statements of loss.

|(m) | 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(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 the Companys consolidated financial
      statements.                                                                                                                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|(n) | New standards and interpretations not yet
      effective                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | IFRS 9, Financial Instruments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | In October 2010 the IASB published amendments to IFRS 9
      Financial Instruments(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. The Company believes that the adoption of
      this standard will not have a material impact in the measurement and
      classification of financial instruments 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(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. The Company has
      determined that the adoption of this standard will not have an impact on
      the consolidated financial statements.                                                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | IFRS 16, Leases                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | In January 2016 the IASB issued IFRS 16 Leases(IFRS 16) which 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. The
      Company has not yet determined the impact of this standard on its
      consolidated financial statements.                                                                                                                                                                                                                                                                                                         

- 11 -

---

|TRILLIUM THERAPEUTICS INC.                                                              
|----------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                          
|For the years ended December 31, 2017 and 2016                                          
|Amounts in
      thousands of Canadian dollars, except per share amounts and where noted

|4. | Amounts receivable
|-- | ------------------

| |                       |  | December 31,                      |  |  | December 31, | 
| | --------------------- |  | --------------------------------- |  |  | ------------ | 
| |                       |  | 2017                              |  |  | 2016         | 
| |                       |  | ****************$**************** |  |  | $            | 
| |                       |  |                                   |  |  |              | 
| | Government receivable |  | 412                               |  |  | 503          | 
| | Interest receivable   |  | 257                               |  |  | 24           | 
| |                       |  | 669                               |  |  | 527          | 

|5. | Property and equipment
|-- | ----------------------

| |                            |  |           |  |  |           |  |  | Office        |   |  |       |  
| | -------------------------- |  | --------- |  |  | --------- |  |  | ------------- | - |  | ----- | -
| |                            |  | Lab       |  |  | Computer  |  |  | equipment and |   |  |       |  
| |                            |  | equipment |  |  | equipment |  |  | leaseholds    |   |  | Total |  
| |                            |  | $         |  |  | $         |  |  | $             |   |  | $     |  
| |                            |  |           |  |  |           |  |  |               |   |  |       |  
| | Cost                       |  |           |  |  |           |  |  |               |   |  |       |  
| | Balance, December 31, 2015 |  | 710       |  |  | 97        |  |  | 285           |   |  | 1,092 |  
| | Additions                  |  | 834       |  |  | 148       |  |  | 1,984         |   |  | 2,966 |  
| | Disposals                  |  | -         |  |  | -         |  |  | (9            | ) |  | (9    | )
| | Balance, December 31, 2016 |  | 1,544     |  |  | 245       |  |  | 2,260         |   |  | 4,049 |  
| | Additions                  |  | 356       |  |  | 41        |  |  | 74            |   |  | 471   |  
| | Balance, December 31, 2017 |  | 1,900     |  |  | 286       |  |  | 2,334         |   |  | 4,520 |  
| |                            |  |           |  |  |           |  |  |               |   |  |       |  
| | Accumulated depreciation   |  |           |  |  |           |  |  |               |   |  |       |  
| | Balance, December 31, 2015 |  | 135       |  |  | 50        |  |  | 10            |   |  | 195   |  
| | Depreciation               |  | 198       |  |  | 47        |  |  | 358           |   |  | 603   |  
| | Disposals                  |  | -         |  |  | -         |  |  | (9            | ) |  | (9    | )
| | Balance, December 31, 2016 |  | 333       |  |  | 97        |  |  | 359           |   |  | 789   |  
| | Depreciation               |  | 278       |  |  | 61        |  |  | 510           |   |  | 849   |  
| | Balance December 31, 2017  |  | 611       |  |  | 158       |  |  | 869           |   |  | 1,638 |  
| |                            |  |           |  |  |           |  |  |               |   |  |       |  
| | Net carrying amounts       |  |           |  |  |           |  |  |               |   |  |       |  
| | December 31, 2016          |  | 1,211     |  |  | 148       |  |  | 1,901         |   |  | 3,260 |  
| | December 31, 2017          |  | 1,289     |  |  | 128       |  |  | 1,465         |   |  | 2,882 |  

- 12 -

---

|TRILLIUM THERAPEUTICS INC.                                                              
|----------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                          
|For the years ended December 31, 2017 and 2016                                          
|Amounts in
      thousands of Canadian dollars, except per share amounts and where noted

|6. | Intangible assets
|-- | -----------------

| |                                     |  | Total  | 
| | ----------------------------------- |  | ------ | 
| |                                     |  | $      | 
| |                                     |  |        | 
| | Cost                                |  |        | 
| | Balance, December 31, 2015          |  | 1,018  | 
| | Fluorinov acquisition               |  | 15,440 | 
| | Balance, December 31, 2016 and 2017 |  | 16,458 | 
| |                                     |  |        | 
| | Accumulated amortization            |  |        | 
| | Balance, December 31, 2015          |  | 924    | 
| | Amortization                        |  | 3,684  | 
| | Balance, December 31, 2016          |  | 4,608  | 
| | Amortization                        |  | 3,860  | 
| | Balance, December 31, 2017          |  | 8,468  | 
| |                                     |  |        | 
| | Net carrying amounts                |  |        | 
| | December 31, 2016                   |  | 11,850 | 
| | December 31, 2017                   |  | 7,990  | 

On January 26, 2016, Trillium purchased
all the issued and outstanding shares of Fluorinov, a private oncology company,
to access its proprietary medicinal chemistry platform. The acquisition date
fair value of consideration transferred and the fair value of identifiable
assets acquired and liabilities assumed were as follows:

| |                                          |  | $      |  
| | ---------------------------------------- |  | ------ | -
| | Fair value of consideration
      paid:  |  |        |  
| | Cash                                     |  | 10,000 |  
| | Working capital deficiency               |  | (134   | )
| | Contingent consideration                 |  | 1,750  |  
| |                                          |  | 11,616 |  
| |                                          |  |        |  
| | Assets acquired:                         |  |        |  
| | Cash                                     |  | 291    |  
| | Amount due from Fluorinov shareholders   |  | 37     |  
| | Acquired
      technology                |  | 15,440 |  
| |                                          |  | 15,768 |  
| |                                          |  |        |  
| | Liabilities assumed:                     |  |        |  
| | Accounts payable and accrued liabilities |  | 462    |  
| | Deferred tax liabilities                 |  | 3,690  |  
| |                                          |  | 4,152  |  
| | Net identifiable assets acquired         |  | 11,616 |  

The upfront consideration for Fluorinov
was $10,000 less the working capital deficiency of $134. The Company may also
incur up to $35,000 of future payments contingent on Trillium achieving certain
clinical and regulatory milestones with an existing Fluorinov compound. The
amount of contingent consideration recognized by the Company 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. Trillium also has
an obligation to pay royalty payments on future sales of such compounds.

At Trilliums discretion, up to 50% of
the future contingent payments can be satisfied through the issuance of common
shares of Trillium 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 Trilliums board of directors
and receipt of any requisite approvals under the applicable rules of the Toronto
Stock Exchange and the NASDAQ Stock Market. Trillium has also committed to use
commercially reasonable efforts to monetize Fluorinovs central nervous system
assets and share 50% of the net proceeds with Fluorinov shareholders.

- 13 -

---

|TRILLIUM THERAPEUTICS INC.                                                              
|----------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                          
|For the years ended December 31, 2017 and 2016                                          
|Amounts in
      thousands of Canadian dollars, except per share amounts and where noted

|6. | Intangible assets
(continued)
|-- | -----------------------------

Cash used in the acquisition was
determined as follows:

| |                          |  | $     | 
| | ------------------------ |  | ----- | 
| | Cash consideration       |  | 9,866 | 
| | Less
      cash acquired |  | 291   | 
| |                          |  | 9,575 | 

Acquisition costs incurred by the
Company and included in general and administrative expenses for the year ended
December 31, 2016, was $107.

In connection with the acquisition, the
Company established deferred tax liabilities related to the acquired
identifiable intangible assets and determined that these deferred tax
liabilities exceeded the acquired deferred tax assets. This allowed the Company
to realize a deferred tax benefit of $3,690 by releasing the valuation allowance
associated with the Companys overall deferred tax assets.

The acquisition of Fluorinov was
considered a related party transaction as two Company directors were determined
to be related parties of Fluorinov. One Company 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, the
Company determined that the consideration paid on the acquisition was made on
terms equivalent to those that prevail in arms-length transactions.

|7. | Accounts payable and accrued
  liabilities
|-- | ------------------------------------------

| |                          |  | December 31, |  |  | December 31, | 
| | ------------------------ |  | ------------ |  |  | ------------ | 
| |                          |  | 2017         |  |  | 2016         | 
| |                          |  | **$**        |  |  | $            | 
| |                          |  |              |  |  |              | 
| | Trade and other payables |  | 2,335        |  |  | 1,086        | 
| | Accrued liabilities      |  | 10,363       |  |  | 3,978        | 
| | Due to related parties   |  | 1,394        |  |  | 449          | 
| |                          |  | 14,092       |  |  | 5,513        | 

Amounts due to related parties include
expense reimbursements, and cash-settled Deferred Share Units.

|**8.**  | Non-current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|**(a)** | Trillium is indebted to the Federal Economic Development
      Agency for Southern Ontario under a non-interest bearing contribution
      agreement and is 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.
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|**(b)** | As at December 31, 2017 and 2016, the Company had a
      deferred lease inducement of $407 and $438 respectively, for a facility
      lease. The inducement benefit is being recognized over the expected term
      of the lease.                                                                                                                                                                                                                                                                                     

- 14 -

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|TRILLIUM THERAPEUTICS INC.                                                              
|----------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                          
|For the years ended December 31, 2017 and 2016                                          
|Amounts in
      thousands of Canadian dollars, except per share amounts and where noted

|8. | Non-current liabilities
  (continued)
|-- | -------------------------------------

|(c) | As at December 31, 2017 and 2016, the Company 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 a net expense reduction of $1,158 which is included in
research and development expenses.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The current portions of the loan
payable and deferred lease inducement are included in other current liabilities
in the condensed consolidated statements of financial position.

|**9.**  | Share capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|**(a)** | Authorized                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|        | The authorized share capital of the Company consists of
      an unlimited number of common shares, Class B shares and First Preferred
      Shares, in each case without nominal or par value. Common shares are
      voting and may receive dividends as declared at the discretion of the
      board of directors. Class B shares are non-voting and convertible to
      common shares at the holders discretion, on a one-for-one basis. Upon
      dissolution or wind-up of the Company, Class B shares participate rateably
      with the common shares in the distribution of the Companys assets. First
      Preferred Shares have voting rights as decided upon by the board of
      directors at the time of grant. Upon dissolution or wind-up of the
      Company, First Preferred Shares are entitled to priority over common and
      Class B shares.                         
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|        | The Company has Series I First Preferred Shares that are
      non-voting, may receive dividends as declared at the discretion of the
      board of directors, and are convertible to common shares at the holders
      discretion, on the basis of 30 Series I First Preferred Shares for one
      common share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|        | The Company has Series II First Preferred Shares that are
      non-voting, may receive dividends as declared at the discretion of the
      board of directors, and are convertible to common shares at the holders
      discretion, on the basis of one Series II First Preferred Share for one
      common share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|        | Holders may not convert Series I or Series II First
      Preferred Shares into common shares if, after giving effect to the
      exercise of conversion, the holder 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 Toronto Stock Exchange, and (iii) above 19.99%, subject
      to approval by the Toronto Stock Exchange and shareholder approval.                                                                                                                                                                                                               
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|**(b)** | Share capital issued  year ended December 31,
      2017                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|        | In June 2017, the Company completed an underwritten
      public offering of common shares and non-voting convertible preferred
      shares in the United States. In the offering, the Company 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, the
      Company 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 the
      Company). Pursuant to the amendment, each warrant (the Preferred
      Warrants) 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 warrants (including the
      aggregate number of shares issuable on exercise of the 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

- 15 -

---

|TRILLIUM THERAPEUTICS INC.                                                              
|----------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                          
|For the years ended December 31, 2017 and 2016                                          
|Amounts in
      thousands of Canadian dollars, except per share amounts and where noted

|9. | Share capital
(continued)
|-- | -------------------------

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  year ended December 31,
      2016                                                                                                                                                                                                                                                                                               
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                         
|    | During the year ended December 31, 2016, 30,301 common
      shares were issued on the exercise of 909,059 warrants for proceeds of
      $359; and 562,388 Series I First Preferred Shares were converted into
      18,746 common shares.                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                         
|(c) | Weighted average number of common shares                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                         
|    | The weighted average number of common shares outstanding
      for the years ended December 31, 2017 and 2016 were 9,771,021 and
      7,820,196, respectively. The Company has not adjusted its weighted average
      number of common shares outstanding in the calculation of diluted loss per
      share, as any adjustment would be antidilutive.
|    |                                                                                                                                                                                                                                                                                                                                                         
|(d) | Warrants                                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                         
|    | The following table shows the number of common share
      purchase warrants outstanding, the exercise prices, the number of common
      shares issuable on exercise of the warrants and the exercise price per
      common share for 30 warrants as 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     |  |  |              |  

Changes in the number of outstanding
warrants that are exercisable into common shares during the years ended December
31 were as follows:

| |                            |  | 2017        |   |  | 2016     | 
| | -------------------------- |  | ----------- | - |  | -------- | 
| |                            |  |             |   |  |          | 
| |                            |  |             |   |  | Weighted | 
| |                            |  |             |   |  | average  | 
| |                            |  | Number of   |   |  | exercise | 
| |                            |  | warrants    |   |  | price    | 
| |                            |  |             |   |  |          | 
| | Balance, beginning of year |  | 105,187,297 |   |  | $ 0.29   | 
| | Warrant amendment          |  | (35,714,286 | ) |  | 0.28     | 
| | Exercised                  |  | (399,980    | ) |  | 0.40     | 
| | Balance, end of year       |  | 69,073,031  |   |  | $ 0.29   | 

- 16 -

---

|TRILLIUM THERAPEUTICS INC.                                                              
|----------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                          
|For the years ended December 31, 2017 and 2016                                          
|Amounts in
      thousands of Canadian dollars, except per share amounts and where noted

|9. | Share capital
(continued)
|-- | -------------------------

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 warrant
holder as at December 31, 2017:

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

|(e) | Stock option plan                                                                                                                                                                                                                                                                                                                                                                                   
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                     
|    | Stock 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 Companys 2016
      Stock Option Plan is 1,894,501. As at December 31, 2017, the Company was
      entitled to issue an additional 147,519 stock options under the 2016 Stock
      Option Plan.
|    |                                                                                                                                                                                                                                                                                                                                                                                                     
|    | Changes in the number of options outstanding during the
      years ended December 31 were as follows:                                                                                                                                                                                                                                                                                              

| |                                  |  | 2017      |   |  | 2016     | 
| | -------------------------------- |  | --------- | - |  | -------- | 
| |                                  |  |           |   |  |          | 
| |                                  |  |           |   |  | Weighted | 
| |                                  |  |           |   |  | average  | 
| |                                  |  | Number of |   |  | exercise | 
| |                                  |  | options   |   |  | price    | 
| |                                  |  |           |   |  |          | 
| | Balance, beginning of year       |  | 1,380,237 |   |  | $ 13.38  | 
| | Granted                          |  | 377,078   |   |  | 11.00    | 
| | Forfeited                        |  | (10,000   | ) |  | 12.01    | 
| | Expired                          |  | (333      | ) |  | 30.00    | 
| |                                  |  |           |   |  |          | 
| | Balance, end of year             |  | 1,746,982 |   |  | $ 12.87  | 
| |                                  |  |           |   |  |          | 
| | Options exercisable, end of year |  | 845,336   |   |  | $ 12.80  | 

The following table reflects stock
options outstanding as at December 31, 2017:

| | Stock options outstanding | Stock options
      exercisable
| | ------------------------- | -------------------------------
| |                           |                                
| |                           |                                
| |                           |                                
| |                           | Number                         
| | Exercise prices           | outstanding                    
| |                           |                                
| | $6.36 - $9.89             | 547,961                        
| | $10.35 - $12.22           | 526,705                        
| | $13.98 - $15.30           | 311,125                        
| | $17.00 - $23.44           | 332,191                        
| | $28.05                    | 29,000                         
| |                           |                                
| |                           | 1,746,982                      

- 17 -

---

|TRILLIUM THERAPEUTICS INC.                                                              
|----------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                          
|For the years ended December 31, 2017 and 2016                                          
|Amounts in
      thousands of Canadian dollars, except per share amounts and where noted

|9. | Share capital (continued)
|-- | -------------------------

Share-based compensation expense was
determined based on the fair value of the options at the date of measurement
using the Black-Scholes option pricing model with the weighted average
assumptions for the years ended December 31 as follows:

| |                         |  | 2017    |  |  | 2016    | 
| | ----------------------- |  | ------- |  |  | ------- | 
| | Expected option life    |  | 6 years |  |  | 6 years | 
| | Risk-free interest rate |  | 1.6%    |  |  | 0.7%    | 
| | Dividend yield          |  | 0%      |  |  | 0%      | 
| | Expected volatility     |  | 87%     |  |  | 84%     | 

The Black-Scholes option pricing model
was developed to estimate the fair value of freely tradable, fully transferable
options without vesting restrictions, which significantly differs from the
Company's stock option awards. This model also requires highly subjective
assumptions, including future stock price volatility and average option life,
which significantly affect the calculated values.

|    | The risk-free interest rate is based on the implied yield
      on a Government of Canada zero-coupon issue with a remaining term equal to
      the expected term of the option. Expected volatility was determined using
      a combination of historical volatilities of a peer group of biotechnology
      companies and the Companys own historical volatility. The life of the
      options is estimated considering the vesting period at the grant date, the
      life of the option and the average length of time similar grants have
      remained outstanding in the past. The forfeiture rate is an estimate based
      on historical evidence and future expectations. The dividend yield was
      excluded from the calculation since it is the present policy of the
      Company to retain all earnings to finance operations and future
    growth.                        
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | For the years ended December 31, 2017 and 2016, the
      Company issued 377,078 and 470,321 stock options with a fair value of
      $3,030 and $4,163 and a weighted average grant date fair value of $8.03
      and $8.85, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|(f) | Deferred Share Unit Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | The shareholders of the Company approved the 2014
      Deferred Share Unit Plan (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 (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 the only DSU plan of the Company. 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.

|**10.** | Income taxes                                                                                                                                                                                                                                                                                        
|------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|        |                                                                                                                                                                                                                                                                                                     
|        | Income taxes recoverable have not been recognized in the
      consolidated statements of loss, as the Company has been incurring losses
      since inception, and it is not probable that future taxable profits will
      be available against which the accumulated tax losses can be utilized.
|        |                                                                                                                                                                                                                                                                                                     

- 18 -

---

|TRILLIUM THERAPEUTICS INC.                                                              
|----------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                          
|For the years ended December 31, 2017 and 2016                                          
|Amounts in
      thousands of Canadian dollars, except per share amounts and where noted

|10. | Income taxes (continued)
|--- | ------------------------

|        |                                                                                                                          
|------- | -------------------------------------------------------------------------------------------------------------------------
|**(a)** | Unrecognized deferred tax assets                                                                                         
|        |                                                                                                                          
|        | As at December 31, 2017 and 2016, deferred tax
      assets have not been recognized with respect to the following items:

| |                                                                                               |  | 2017   |  |  | 2016   |  
| | --------------------------------------------------------------------------------------------- |  | ------ |  |  | ------ | -
| |                                                                                               |  | $      |  |  | $      |  
| |                                                                                               |  |        |  |  |        |  
| | Non-capital losses carried
      forward                                                      |  | 25,078 |  |  | 17,604 |  
| | Tax credits carried forward                                                                   |  | 5,908  |  |  | 4,318  |  
| | Accounting basis of property
      and equipment and intangible assets in excess of tax basis |  | 48     |  |  | (1,288 | )
| | Scientific research and experimental
      development expenditures                           |  | 9,441  |  |  | 7,353  |  
| | Share issue costs and other                                                                   |  | 1,182  |  |  | 346    |  
| |                                                                                               |  | 41,657 |  |  | 28,333 |  

|**(b)** | As at December 31, 2017 and 2016, the Company had
      available research and development expenditures of approximately $35,628
      and $27,746, respectively, for income tax purposes, which may be carried
      forward indefinitely to reduce future years taxable income. As at
      December 31, 2017 and 2016, the Company also had unclaimed Canadian
      scientific research and development tax credits of 7,483 and $5,458,
      respectively, which are available to reduce future taxes payable with
      expiries from 2018 through 2037. The benefit of these expenditures and tax
      credits has not been recorded in the accounts.
|------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|(c)     | As at December 31, 2017, the Company has accumulated
      non-capital losses for federal and provincial income tax purposes in
      Canada that are available for application against future taxable income.
      The benefit of these losses has not been recorded in the
accounts.                                                                                                                                                                                                                                                                                                                                                                        

The non-capital tax losses expire as
follows:

| |      |  | Federal | 
| | ---- |  | ------- | 
| |      |  | $       | 
| |      |  |         | 
| | 2025 |  | 3,213   | 
| | 2026 |  | 6,457   | 
| | 2027 |  | 4,659   | 
| | 2028 |  | 4,169   | 
| | 2029 |  | 3,784   | 
| | 2030 |  | 1,905   | 
| | 2031 |  | 1,624   | 
| | 2032 |  | 2,883   | 
| | 2033 |  | 2,132   | 
| | 2034 |  | 5,708   | 
| | 2035 |  | 9,172   | 
| | 2036 |  | 20,724  | 
| | 2037 |  | 28,203  | 
| |      |  | 94,633  | 

- 19 -

---

|TRILLIUM THERAPEUTICS INC.                                                              
|----------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                          
|For the years ended December 31, 2017 and 2016                                          
|Amounts in
      thousands of Canadian dollars, except per share amounts and where noted

|10. | Income taxes (continued)
|--- | ------------------------

|        |                                                                                                                                                       
|------- | ------------------------------------------------------------------------------------------------------------------------------------------------------
|**(d)** | The reconciliation of the Canadian statutory income tax
      rate applied to the net loss for the year to the income tax expense is as
      follows:

| |                                                              |  | **2017** |   |  | 2016   |  
| | ------------------------------------------------------------ |  | -------- | - |  | ------ | -
| |                                                              |  | **$**    |   |  | $      |  
| |                                                              |  |          |   |  |        |  
| | Statutory income
      tax rate                              |  | 26.5%    |   |  | 26.5%  |  
| |                                                              |  |          |   |  |        |  
| | Income tax
      recovery based on statutory income tax rate |  | (11,966  | ) |  | (9,388 | )
| | Investment tax credits                                       |  | (1,567   | ) |  | (1,204 | )
| | Share-based
      compensation and other                     |  | 213      |   |  | 4,705  |  
| | Change in unrecognized tax assets                            |  | 13,324   |   |  | 2,206  |  
| |                                                              |  |          |   |  |        |  
| | Income tax expense                                           |  | 4        |   |  | (3,681 | )

|11. | Research and development                                                                              
|--- | ------------------------------------------------------------------------------------------------------
|    |                                                                                                       
|    | Components of research and development expenses for the
      years ended December 31 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 |  

|12. | General and administrative                                                                              
|--- | --------------------------------------------------------------------------------------------------------
|    |                                                                                                         
|    | Components of general and administrative expenses for the
      years ended December 31 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 |  

|13. | Commitments and contingencies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    | As at December 31, 2017, the Company had obligations to
      make future payments, representing significant research and development
      contracts and other commitments that are known and committed in the amount
      of approximately $9,709. These commitments include agreements related to
      the conduct of the Phase I clinical trials, sponsored research,
      manufacturing and preclinical studies. The Company also has minimum lease
      payments for operating lease commitments, primarily for its office and
      laboratory lease, in the amount of $257 over the next 12 months, $1,021
      from 12 to 60 months, and $770 thereafter. The facility lease contains options for
early termination and for lease extension.

- 20 -

---

|TRILLIUM THERAPEUTICS INC.                                                              
|----------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                          
|For the years ended December 31, 2017 and 2016                                          
|Amounts in
      thousands of Canadian dollars, except per share amounts and where noted

|13. | Commitments and contingencies
  (continued)
|--- | -------------------------------------------

The Company enters into research,
development and license agreements in the ordinary course of business where the
Company receives 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 are uncertain. Under the license agreement for SIRPαFc, the Company has
future contingent milestones payable of $25 related to successful patent grants,
$200 and $300 on the first patient dosed in phase II and III trials
respectively, and regulatory milestones on their first achievement totalling
$5,000.

In connection with the acquisition of
Fluorinov, the Company is obligated to pay up to $35,000 of additional future
payments that are contingent upon achieving certain clinical and regulatory
milestones with an existing Fluorinov compound. The Company also has an
obligation to pay royalty payments on future sales of such compounds. At
Trilliums discretion, up to 50% of the future contingent payments can be
satisfied through the issuance of common shares of Trillium 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 approvalfrom Trilliums board of directors and receipt of any requisite approvals
under the applicable rules of the Toronto Stock Exchange and the NASDAQ Stock
Market. Trillium has also committed to use commercially reasonable efforts to
monetize Fluorinovs central nervous system
assets and share 50% of the net proceeds with Fluorinov shareholders.

The acquisition of Fluorinov was
  considered a related party transaction as two Company directors were determined
  to be related parties of Fluorinov. One Company 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, the
  Company determined that the consideration paid on the acquisition was made on
terms equivalent to those that prevail in arms length transactions.

The Company has two agreements with
Catalent Pharma Solutions pursuant to which Trillium acquired the right to use a
proprietary expression system for the manufacture of two SIRPαFc constructs.
Consideration for each license includes potential pre-marketing approval
milestones of up to U.S. $875 and aggregate sales milestone payments of up to
U.S. $28,750.

The Company periodically enters into
research and license agreements with third parties that include indemnification
provisions customary in the industry. These guarantees generally require the
Company 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 behalf of the Company. 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 the Company from making a reasonable estimate of the
maximum potential amount it could be required to pay. Historically, the Company
has not made any indemnification payments under such agreements and no amount
has been accrued in the consolidated financial statements with respect to these
indemnification obligations.

|14. | Related parties                                                                                                                                                                                                                                                          
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                          
|    | For the years ended December 31, 2017 and 2016, the key
      management personnel of the Company were the Board of Directors, Chief
      Executive Officer, Chief Medical Officer, Chief Scientific Officer, Chief
Financial Officer and the Chief Development Officer.

- 21 -

---

|TRILLIUM THERAPEUTICS INC.                                                              
|----------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                          
|For the years ended December 31, 2017 and 2016                                          
|Amounts in
      thousands of Canadian dollars, except per share amounts and where noted

|14. | Related parties (continued)
|--- | ---------------------------
|    |                            

| | Compensation for key management personnel of the Company
      for the years ended December 31 was as
      follows:
| | --------------------------------------------------------------------------------------------------------------------

| |                                              |  | **2017** |  |  | 2016  | 
| | -------------------------------------------- |  | -------- |  |  | ----- | 
| |                                              |  | **$**    |  |  | $     | 
| | Salaries, fees and short-term
      benefits |  | 3,805    |  |  | 3,108 | 
| | Share-based compensation                     |  | 2,595    |  |  | 3,512 | 
| | Total                                        |  | 6,400    |  |  | 6,620 | 

Executive officers and directors
participate in the 2014 Stock Option Plan, the 2014 DSU Plan and the
Cash-Settled DSU Plan, and officers participate in the Companys benefit plans.
Directors receive annual fees for their services. As at December 31, 2017, the
key management personnel controlled approximately 1% of the voting shares of the
Company.

Outstanding balances with related
parties at year-end are unsecured, interest free and settlement occurs in cash.
There have been no guarantees provided or received for any related party
receivables or payables.

|15. | Operating segment                                                                                                                                                                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                 
|    | The Company has a single operating segment, the research
      and development therapies for the treatment of cancer. Substantially all
      of the Companys operations, assets and employees are in
  Canada.

|16. | Management of capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    | The Company defines its capital as share capital,
      warrants and contributed surplus. The Companys objectives when managing
      capital are to ensure there are sufficient funds available to carry out
      its research and development programs. To date, these programs have been
      funded primarily through the sale of equity securities and the exercise of
      common share purchase warrants. The Company also sources non-dilutive
      funding by accessing grants, government assistance and tax incentives, and
      through partnerships with corporations and research institutions. The
      Company uses budgets and purchasing controls to manage its costs. The
      Company is not exposed to any externally imposed capital
    requirements.

|17. | Financial instruments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | Fair value                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | IFRS 13 Fair Value Measurementprovides a
      hierarchy of valuation techniques based on whether the inputs to those
      valuation techniques are observable or unobservable. Observable inputs are
      those that reflect market data obtained from independent sources, while
      unobservable inputs reflect the Companys assumptions with respect to how
      market participants would price an asset or liability. These two inputs
      used to measure fair value fall into the following three different levels
      of the fair value hierarchy:

| | Level 1 | Quoted prices in active markets for identical
      instruments that are observable.                                                                                                
| | ------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Level 2 | Quoted prices in active markets for similar instruments;
      inputs other than quoted prices that are observable and derived from or
      corroborated by observable market data.
| | Level 3 | Valuations derived from valuation techniques in
      which one or more significant inputs are unobservable.                                                                        

The hierarchy requires the use of
observable market data when available.

The Company has classified cash and
cash equivalents as Level 1. The marketable securities and loan payable has been
classified as Level 2.

Cash and cash equivalents, amounts
receivable, accounts payable and accrued liabilities, and other current
liabilities, due within one year, are all short-term in nature and, as such,
their carrying values approximate fair values. Marketable securities, which
primarily include guaranteed investment certificates held by the Company, are
valued at fair value. The fair value of the non-current loan payable is
estimated by discounting the expected future cash flows at the cost of money to
the Company, which is equal to its carrying value.

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|TRILLIUM THERAPEUTICS INC.                                                              
|----------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                          
|For the years ended December 31, 2017 and 2016                                          
|Amounts in
      thousands of Canadian dollars, except per share amounts and where noted

|17. | Financial instruments
(continued)
|--- | ---------------------------------

|    | Risks                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    | The Company has exposure to credit risk, liquidity risk,
      interest rate risk and currency risk. The Companys board of directors has
      overall responsibility for the establishment and oversight of the
      Companys risk management framework. The Audit Committee of the board of
      directors is responsible for reviewing the Companys risk management
      policies.                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|(a) | Credit risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    | Credit risk is the risk of financial loss to the Company
      if a counterparty to a financial instrument fails to meet its contractual
      obligations, and arises principally from the Companys cash and cash
      equivalents, marketable securities and amounts receivable. The carrying
      amount of these financial assets represents the maximum credit exposure.
      The Company follows an investment policy to mitigate against the
      deterioration of principal and to enhance the Companys ability to meet
      its liquidity needs. Cash is on deposit with major Canadian chartered
      banks and the Company invests in high grade short-term instruments.
      Amounts receivable are primarily comprised of amounts due from the federal
      government.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|(b) | Liquidity risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    | Liquidity risk is the risk that the Company will not be
      able to meet its financial obligations as they fall due. The Company is a
      development stage company and is reliant on external fundraising to
      support its operations. Once funds have been raised, the Company manages
      its liquidity risk by investing in cash and short-term instruments to
      provide regular cash flow for current operations. It also manages
      liquidity risk by continuously monitoring actual and projected cash flows.
      The board of directors reviews and approves the Companys operating and
      capital budgets, as well as any material transactions not in the ordinary
      course of business.                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|(c) | Interest rate risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    | Interest rate risk is the risk that the fair value or
      future cash flows of a financial instrument will fluctuate because of
      changes in market interest rates. The Company holds its cash in bank
      accounts or high interest savings accounts that have a variable rate of
      interest. The Company manages its interest rate risk by holding highly
      liquid short-term instruments and by holding its investments to maturity,
      where possible. For the year ended December 31, 2017, the Company earned
      interest income of $722. Therefore, a 100 basis points change in the
      average interest rate for the year would have a net impact on finance
      income of $7.                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|(d) | Currency risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    | The Company is exposed to currency risk related to the
      fluctuation of foreign exchange rates and the degree of volatility of
      those rates. Currency risk is limited to the portion of the Companys
      business transactions denominated in currencies other than the Canadian
      dollar, which are primarily expenses in U.S. dollars. As at December 31,
      2017, the Company held U.S. dollar cash and cash equivalents and
      marketable securities in the amount of U.S. $58,627, and had U.S. dollar
      denominated accounts payable and accrued liabilities in the amount of U.S.
      $6,778. Therefore, a 1% change in the foreign exchange rate would have a
      net impact on finance costs as at December 31, 2017 of $673.                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    | U.S. dollar expenses for the years ended December 31,
      2017 was approximately U.S. $15,040. Varying the U.S. exchange rate for
      the year ended December 31, 2017 to reflect a 1% strengthening of the
      Canadian dollar would have decreased the net loss by approximately $195
      assuming that all other variables remained
constant.                                                                                                                                                                                                                                                                                                                                                                                                                                      

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