Sangdong Construction Timeline Update

Almonty Industries Inc. (“Almonty” or the “Company”) (TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: ALI) is pleased to announce the closing of its private placement to Directors of Almonty, existing shareholders and other insiders of 2,852,251 common shares at CDN$0.94 per share and 1,428,571 Units at US$0.70 per Unit to raise gross proceeds of approximately US$3.3 million (“Placement”). Each Unit of the 1,428,571 units will be comprised of one common share and one-half share purchase warrant with each whole warrant being exercisable at a price of US$0.84 for 24 months from closing.

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UPDATED SANGTON TUNGSTEN MINE TIMELINE (Graphic: Business Wire)

The use of proceeds of this Placement will be to pay the Plansee/GTP fees, of which the upfront cash portion of US$3.0 million has now been paid.

PLANSEE/GTP SATISFACTION OF CONDITIONS PRECEDENT

The Company is pleased to advise that it has executed a Conditions Precedent Letter with Plansee/GTP whereby both parties have agreed that Almonty has satisfied the conditions precedents required by Plansee/GTP to enable financial closing of the KfW US$75.1 million finance facility. They key terms of the Conditions Precedent Letter are:

1. Payment of GTP Obligations of US$3.0 million– paid in cash from the proceeds of the Placement.
2. Within 120 calendar days of the financial closing of the project financing, Almonty remitting the Outstanding Balance owing of approximately US$1.8 million. In the event that the Outstanding Balance is not paid within 120 calendar days of the financial closing of the Project Financing, Almonty will satisfy any remaining portion of the Outstanding Balance by issuing common shares in Almonty to Plansee/GTP, at a price per share equal to the closing market price of Almonty’s common shares on the trading day prior to issuance.

Now that Plansee/GTP have signed the satisfaction of Conditions Precedent letter, KfW IPEX–Bank will now move to internal sign off. Almonty expects by Friday May 21st that KfW IPEX–Bank will confirm financial close at which point the drawdown of the US$75.1 million will begin.

SANGDONG AND COMPANY UPDATE

Almonty President and CEO, Mr Lewis Black, said:

“The Company would like to take the opportunity of updating the shareholders on the current status at site in Korea and the Tungsten market generally. What is important is to highlight that the Company placed orders for all of the long lead time equipment, both milling and flotation last year in 2021, prior to the drawdown. This enabled us to capture pricing and delivery times on significantly more favourable terms than if ordered today.

However, delivery dates have been extended by 2 months with global shipping delays being the main issue, but it will not delay work at the site as we have merely adjusted our schedule to bring forward areas that are manufactured or planned in South Korea and pushed installation of imported items not yet in country to compensate for the shipping delays. On the back of this, we have updated our commissioning date toward the end of Q2 2023. Given our continuing push to save costs to counter ongoing inflation on certain consumable/building items and the delays in shipping, the Company feels this delay is warranted and justified.

On our latest analysis of total cost escalation has resulted in a maximum of 5% price increase which is comfortably absorbed by our 15% contingency built into the project cost. Currently this increase stands at 4.75%. We intend to reduce that by looking at areas where we can save further money. I would also like to add that energy costs in South Korea have risen approximately 8% but is not expected to rise further as prices are set by the State through KEPCO. Nuclear and renewables account for more than 35% of South Korea’s energy platform.

As for energy costs in Portugal at our Panasquiera mine, we have fixed our forward price for the next 2 years at which is now at a reduction on our 2021 price and saves the mine approx. EUR560,000 per year. This is approximately 60% below current Portuguese energy market prices. Production continues to be stable in Portugal. We are now ready for drawdown as we enter the accelerated construction phase in South Korea.”

UPDATED SANGTON TUNGSTEN MINE TIMELINE

DIRECTOR SHARE SALE

The Company advises that on April 14, 2022, Mr Lewis Black sold 300,000 common shares in Almonty to cover a capital gains tax liability. The common shares were crossed to an existing long term holder of Almonty. After the sale, Mr Lewis Black remains one of the largest shareholders in the Company with 11,032,895 common shares (direct) and 13,893,920 common shares (indirect) which represents approximately 11.91% of the Company, and confirms that there are no further sales planned at this time.

For and on behalf of the board of

Almonty Industries Inc.

About Almonty

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. Further information about Almonty’s activities may be found at www.almonty.com and under Almonty’s profile at www.sedar.com.

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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