Almonty Industries and Woulfe Mining Announce Proposed Merger to Create the Leading Tungsten Producer Outside of China - Seite 2

Almonty's principal assets are the Los Santos tungsten mine, producing 1,100 tonnes/year of WO₃, and the Wolfram Camp tungsten and molybdenum mine in Queensland Australia, which produced 700 tonnes of WO₃ in 2013. In addition, Almonty is working towards the commissioning of the Valtreixal tin/tungsten mine in north western Spain with anticipated production in 2017.

Lewis Black, President and CEO of Almonty, commented, "This transaction represents the opportunity to combine one of the world's most promising undeveloped tungsten asset with our significant portfolio of producing assets, to create a truly global tungsten powerhouse. Almonty has already established itself as a leading producer of tungsten outside of China and premier consolidator of global tungsten assets. With the addition of Woulfe's flagship Sangdong mine, we are confident about the combined team's ability to unlock significant value from our collective assets for our combined shareholders."

Commenting on the transaction, Michel Gaucher, President and CEO of Woulfe, said, "By combining Woulfe and Almonty, we are creating the premier tungsten producer outside of China. The complementary expertise of Almonty's and Woulfe's highly experienced technical teams combined with an enhanced access to capital through the merger, will potentially advance the Sangdong project to production on an accelerated timeline. We believe this new company will provide investors with an ideal way to gain broader exposure to the tungsten sector."

TRANSACTION RATIONALE

• Creation of the "go-to" global tungsten producer outside of China
  • Almonty's Los Santos Tungsten Mine in Spain is a fully operational, profitable mine
  • Scale-up of tungsten production currently underway at recently acquired Wolfram Camp mine in Australia
  • Almonty announced a special cash dividend of $0.0272 per share in August 2014 (intends to declare on an annual basis)
• Leverage off Almonty's and Woulfe's disciplined and focused management and technical teams with a proven ability and track record of acquiring, operating and enhancing tungsten assets, and of designing and planning complex mining solutions and processing facilities
  • Almonty acquired Portugal-based Panasqueira in 2005 and successfully refurbished operations and increased the mine life; sold the mine in 2008 at 20x earnings for a 30x return
  • Ongoing operational enhancement and turn around at Los Santos Mine over the past ~36 months including improving recoveries by 40%, decreasing costs by 25% and increasing contained tungsten by ~25%
  • The Woulfe team de-risked Sangdong's Tetratech 2012 Feasibility Study in record time and at a highly reduced costs from those initially budgeted and announced in 2013
• Geographical diversification of resources with robust pipeline of near-term production and longer-term development assets
  • Acquired Wolfram Camp (Australia) in September 2014
  • Updated feasibility study at Sangdong (S. Korea) in Q1 2015
  • Updated resource at Valtreixal Project (Spain) in October 2014
• Potential for significant cost savings and synergies with additional potential for other operating efficiencies
• Enhanced capital markets presence including increased analyst coverage, trading liquidity and broader institutional base
  • Greater critical mass capable of financing at a lower cost of capital
• The combined entity will be an attractive platform for further accretive growth and consolidation in global tungsten sector

BENEFITS TO ALMONTY SHAREHOLDERS