Successful Placement of CDI’s Raises A$3.5 Million

Almonty Industries Inc. (“Almonty” or the “Company”) (TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: ALI) is pleased to announce that the Company has received firm commitments, primarily from existing Australian institutional investors, to raise gross proceeds of A$3.5 million via the issue of 4,861,111 million Chess Depository Interests (“CDIs”) at A$0.72 per CDI (“Placement”).

Each Placement participant will be issued with one (1) free unlisted option for every one (1) CDI issued, exercisable at A$1.25 with an expiry date of 31 December 2024 (“Options”).

Proceeds from the Placement will be applied towards repayment of a convertible note (for which the lender was not able to extend the debt instrument due to previous commitments), general working capital and offer costs.

The issue price of A$0.72 is equal to the last price of Almonty on 17 March 2023 of A$0.72.

The Placement CDI’s and Options are expected to settle on or about Monday 27 March 2023. The Placement CDI’s issued will rank equally with existing CDI’s and common shares of the Company (“Common Shares”) on issue.

The closing of the Placement is subject to receipt of all necessary regulatory approvals, including the acceptance by the TSX and ASX.

RM Corporate Finance Pty Ltd acted as Lead Manager to the Placement and will be paid a total fee of 6% of the gross proceeds raised in the Placement.

Additionally, the Company announces that it has received conditional approval from the TSX to settle the fees linked to various guarantees provided in respect of Company debt obligations in stock rather than cash at the request of Plansee Holding AG (“Plansee”). The amount due to Plansee of US$2,455,371.28 (CAD$3,287,742.14) was settled through the issuance of 4,501,840 Common Shares. The average price of the stock issuance is $0.73 per share representing a 6 % premium to current market price.

Plansee, through the holdings of its subsidiary, Global Tungsten & Powders Ltd., is an insider of the Company by virtue of holding 10% or more of the Company’s issued and outstanding Common Shares. As such, issuance of Common Shares to Plansee Holdings AG in satisfaction of obligations owed thereto constitutes a related party transaction as defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions. However, the Company considers such transaction would be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as the fair market value of the Common Shares issued to Plansee and the dollar value of the obligations owed thereto, would not exceed 25 percent of the Company's market capitalization.