Company: ALM
Filing Date: 2025-07-07
Form Type: F-10
Source: 0001641172-25-017947
Chunk: 55

Company: Almonty Industries Inc.
Filing Date: 2025-07-07
Form: F-10
Chunk 55
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Canada’s Extractive Sector
Transparency Measures Act

The Extractive Sector
Transparency Measures Act (Canada) (“ESTMA”) requires public disclosure of certain payments to governments by companies
engaged in the commercial development of minerals which are publicly listed in Canada. Mandatory annual reporting is required for extractive
companies with respect to payments made to foreign and domestic governments, including aboriginal groups. ESTMA requires reporting on
the payments of any taxes, royalties, fees, production entitlements, bonuses, dividends, infrastructure reporting or structuring payments
to avoid reporting. If the Company becomes subject to an enforcement action or is in violation of ESTMA, this may result in significant
penalties or sanctions which may also have a material adverse effect on the Company’s reputation.

Ukraine Conflict

The conflict between Russia and Ukraine, which
began in early 2022, remains ongoing and has contributed to heightened geopolitical instability and global economic uncertainty. A wide
range of sanctions, trade restrictions, and other measures have been imposed on Russia by the international community, and many businesses
have withdrawn from the Russian market. The continuation or potential escalation of the conflict may further disrupt global supply chains,
impact commodity markets, create inflationary pressures, and affect financial markets.

While the Company does not maintain direct operations
in Russia or Ukraine, it may be indirectly affected by broader economic consequences arising from the conflict, including changes in
the availability and cost of materials, transportation disruptions, and potential shifts in customer demand. The extent and duration
of these impacts remain uncertain.

Management has taken
measures intended to support the ongoing sustainability of the Company’s operations. However, given the evolving nature of the
conflict and the uncertainty regarding future developments, including the potential for further sanctions, regulatory changes, or economic
disruption, the conflict could adversely affect the Company’s business, financial condition, and results of operations in ways
that cannot currently be predicted.

Risks Related to Almonty’s Redomiciling to the United States

As disclosed previously,
Almonty announced its plans to change its jurisdiction of incorporation from Canada to the State of Delaware. There are certain risks
related to such redomiciling and the arrangement pursuant to which the redomiciling will be accomplished (the “Arrangement”).

Disruptions to Our Business

If the Company effects
its redomiciling from Canada to the United States, we anticipate significant increases in legal, accounting and other expenses. Such
redomiciling may require a significant amount of time, cost