Highlights:

- US$9.82 million drawdown of KfW IPEX-Bank (“KfW”) project finance facility completed – third scheduled drawdown;

- Total drawn under KfW IPEX-Bank facility now stands at US$26.7 of total US$75.1 million facility;

- Sangdong mine construction remains on track and when in operation will be the world’s largest tungsten mine outside of China;

- Exploring additional downstream processing opportunities which could see Almonty directly participating in the battery anode and cathode and semi-conductor manufacturing industry in South Korea.

Almonty Industries Inc. (“Almonty” or “the Company”) (TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: ALI), is pleased to announce it has completed its third scheduled drawdown of the total US$75.1 million KfW IPEX-Bank project finance facility for its Sangdong Tungsten Mine (the Loan Facility), and to provide a project update from the Chairman of the Company.

The total amount drawn under the Loan Facility now stands at US$26.7 million. The Company is pleased to report that the drawdowns are being completed on schedule as per the project drawdown agreement.

Almonty’s Chairman, President and CEO Lewis Black commented:

“We are pleased to have received the third drawdown from our financing partners, KfW IPEX-Bank, under the US$75.1 million project financing loan facility which are occurring in-line with the drawdown schedule which is occurring on time as planned.

I was pleased to host representatives from the KfW IPEX-Bank, our offtake partner Plansee/GTP and the independent consultants, Hatch, to the site at the Sangdong Tungsten Mine in October 2022.

In addition to a construction update, the parties further investigated the potential of Almonty to directly participate in the battery anode and cathode and semi-conductor manufacturing industry via the potential development of a 3,000t p.a. vertical nano tungsten oxide plant in South Korea.

Almonty has already signed an LOI with KfW IPEX-Bank in January 2022 to potentially fund up to US$50 million of this downstream processing opportunity which would see Almonty participate in the full supply chain from mine to battery products. We will continue to progress this opportunity in tandem with the construction of the Sangdong Tungsten Mine which is progressing as planned. Further details will follow once engineering design work has been commenced.

I am also pleased to note the strong tungsten price which has risen to circa US$350/MTU which represents a 50% rise over the past year. This strong price, coupled with our unprecedented floor price guarantee in our contract with our offtake partner Plansee GTP of US$235/MTU (with no upside cap) has the potential to generate truly spectacular returns for our shareholders once commissioning has commenced in the second half of 2023.”

KfW Facility Background

The Loan Facility is funded by KfW IPEX-Bank GmbH, a 100% German state-owned development bank, pursuant to which the Company has access to a total US$75.1 million to finance the development and operation of the Sangdong Mine. The terms of the Loan Facility are favourable to the Company and the Sangdong Mine is targeted to be in operation well before the Loan Facility matures and becomes repayable.

This announcement has been approved by Lewis Black, Chairman, President and CEO.

About Almonty Industries Inc. (almonty.com)

The principal business of Toronto, Canada-based Almonty Industries Inc. is the mining, processing and shipping of tungsten concentrate from its Los Santos Mine in western Spain and its Panasqueira mine in Portugal as well as the development of its Sangdong tungsten mine in Gangwon Province, South Korea and the development of the Valtreixal tin/tungsten project in north western Spain. The Los Santos Mine was acquired by Almonty in September 2011 and is located approximately 50 kilometres from Salamanca in western Spain and produces tungsten concentrate. The Panasqueira mine, which has been in production since 1896, is located approximately 260 kilometres northeast of Lisbon, Portugal, was acquired in January 2016 and produces tungsten concentrate. The Sangdong mine, which was historically one of the largest tungsten mines in the world and one of the few long-life, high-grade tungsten deposits outside of China, was acquired in September 2015 through the acquisition of a 100% interest in Woulfe Mining Corp. Almonty owns 100% of the Valtreixal tin-tungsten project in north-western Spain.

Legal Notice

The release, publication or distribution of this announcement in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published or distributed should inform themselves about and observe such restrictions. Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

Disclaimer for Forward-Looking Information

When used in this press release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. These statements and information are based on management’s beliefs, estimates and opinions on the date that statements are made and reflect Almonty’s current expectations.

Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Almonty to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: any specific risks relating to fluctuations in the price of ammonium para tungstate (“APT”) from which the sale price of Almonty’s tungsten concentrate is derived, actual results of mining and exploration activities, environmental, economic and political risks of the jurisdictions in which Almonty’s operations are located and changes in project parameters as plans continue to be refined, forecasts and assessments relating to Almonty’s business, credit and liquidity risks, hedging risk, competition in the mining industry, risks related to the market price of Almonty’s shares, the ability of Almonty to retain key management employees or procure the services of skilled and experienced personnel, risks related to claims and legal proceedings against Almonty and any of its operating mines, risks relating to unknown defects and impairments, risks related to the adequacy of internal control over financial reporting, risks related to governmental regulations, including environmental regulations, risks related to international operations of Almonty, risks relating to exploration, development and operations at Almonty’s tungsten mines, the ability of Almonty to obtain and maintain necessary permits, the ability of Almonty to comply with applicable laws, regulations and permitting requirements, lack of suitable infrastructure and employees to support Almonty’s mining operations, uncertainty in the accuracy of mineral reserves and mineral resources estimates, production estimates from Almonty’s mining operations, inability to replace and expand mineral reserves, uncertainties related to title and indigenous rights with respect to mineral properties owned directly or indirectly by Almonty, the ability of Almonty to obtain adequate financing, the ability of Almonty to complete permitting, construction, development and expansion, challenges related to global financial conditions, risks related to future sales or issuance of equity securities, differences in the interpretation or application of tax laws and regulations or accounting policies and rules and acceptance of the TSX of the listing of Almonty shares on the TSX.

Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to, no material adverse change in the market price of ammonium para tungstate (APT), the continuing ability to fund or obtain funding for outstanding commitments, expectations regarding the resolution of legal and tax matters, no negative change to applicable laws, the ability to secure local contractors, employees and assistance as and when required and on reasonable terms, and such other assumptions and factors as are set out herein. Although Almonty has attempted to identify important factors that could cause actual results, level of activity, performance or achievements to differ materially from those contained in forward-looking statements, there may be other factors that cause results, level of activity, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate and even if events or results described in the forward-looking statements are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Almonty. Accordingly, readers should not place undue reliance on forward-looking statements and are cautioned that actual outcomes may vary.

Investors are cautioned against attributing undue certainty to forward-looking statements. Almonty cautions that the foregoing list of material factors is not exhaustive. When relying on Almonty’s forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events.

Almonty has also assumed that material factors will not cause any forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF ALMONTY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD- LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE ALMONTY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.

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