Almonty Commences Trading on the ASX

Almonty Industries Inc. (ASX:AII) (TSX:AII) (OTCQX:ALMTF) (FWB:ALI.F):

Dear Investors,

On behalf of global leading tungsten producer and developer, Almonty Industries Inc. (“Almonty” or the “Company”) (ASX:AII / TSX: AII / OTCQX: ALMTF / Frankfurt: ALI.F), I am very pleased to announce the successful capital raising of A$15.25m and a dual listing on the ASX on 2nd August 2021.

On behalf of the Board of Directors, I would like to welcome new shareholders to the Almonty share register as we continue construction of the world’s largest tungsten mine outside of China, the Sangdong Tungsten Mine in South Korea (“Sangdong”). Once Sangdong is in production from Q4 2022, Almonty is expected to produce approximately 30% of all tungsten outside of China and approximately 7-10% of global supply.

The ASX IPO is a key milestone for Almonty for several reasons:

• The receipt of >A$15m in new equity is the final condition precedent in order for the Company to drawdown on the US$75.1 million debt package arranged with the German state bank KfW IPEX. The loan has been agreed on compelling terms for Almonty equity holders with all-in costs expected to be circa 2 – 3% per annum. Almonty is now fully funded for construction of Sangdong.
• The ASX listing has granted Almonty access to the deep pool of experienced resource investors found on the ASX which is expected to improve liquidity for the Company.

Funds raised from the IPO will be applied towards planned capital expenditures for the construction of Sangdong, other expenditures relating to Sangdong, refurbishment prior to capital expenditure and for general corporate and administrative expenses and payables reduction. This will sit alongside OeKB (Österreichische Kontrollbank) who has approved the issuance of the final ECA cover for the Sangdong project financing on June 18^th, 2021 to underpin the US$75.1m loan from KfW-IPEX Bank which was executed in December, 2020.

I am pleased to note that Almonty has achieved various construction milestones to date at site. This includes demolition of the old workings, including the old Ammonium Para Tungstate (APT) plant, commencement of the process of land purification and levelling, commencement of the road and drainage diversion, completion of both ore and waste portals, commencement of underground mine development, completion of construction of the administration offices, installation and commissioning of a full testing laboratory, commencement of the civil engineering planning work for surface buildings, ordering and paying the deposits for the long lead time milling equipment, commissioning the onsite Batch plant which is already achieving a rebound rate of 6% and introducing a number of community programs in line with our ESG program. This work was all undertaken prior to financial close to ensure an on-time commissioning.