Company: ALM
Filing Date: 2025-07-07
Form Type: F-10
Source: 0001641172-25-017947
Chunk: 40

Company: Almonty Industries Inc.
Filing Date: 2025-07-07
Form: F-10
Chunk 40
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 of an impairment test performed for fiscal 2021, the Company also recognized
an impairment reversal of $4.1 million to tailings inventory related to the Los Santos Mine, based on the estimated lower of cost and
net realizable value.

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The assessment for impairment is subjective and
requires management to make estimates and assumptions for a number of factors including estimates of production levels, mineral reserves
and Mineral Resources, operating costs and capital expenditures reflected in the Company’s life-of-mine plans, as well as economic
factors beyond management’s control, such as tungsten prices and observable net asset value multiples. Should management’s
estimates and assumptions regarding these factors be incorrect, the Company may be required to realize impairment charges, which will
reduce the Company’s earnings. The timing and amount of such impairment charges is difficult to predict.

Risks Related to Property Titles

The acquisition
of title to mineral properties is a very precise and time-consuming process. Although the Company has taken reasonable measures to ensure
that its property titles are valid, including receiving a title opinion from South Korean counsel with respect to certain mineral rights,
there is no certainty that the property titles will not be challenged or questioned. Third parties may have valid claims on underlying
portions of the Company’s interests, including prior unregistered liens, agreements, transfers or claims, including land claims
to the lands immediately adjacent to the Company’s leased lands, and title may be affected by, among other things, undetected defects.
In addition, the Company may be unable to conduct its operations on one or more of its properties as currently anticipated or permitted
or to enforce its rights in respect of its properties.

Laws and Regulations

The Company’s mining and mineral processing
operations, exploration activities and properties are subject to the laws and regulations of federal, provincial, territorial, state
and local governments in the jurisdictions in which the Company operates and the receipt of, and compliance with, applicable permits.
These laws, regulations and permits are extensive and govern prospecting, exploration, development, production, exports, taxes, labour
standards, occupational health and safety, waste disposal and tailings management, toxic substances, environmental protection, mine safety,
reporting of payments to governments and other matters. Compliance with such laws, regulations and permits can be extremely time consuming,
and may increase the costs of planning, designing, drilling, developing, constructing, operating, managing, closing, reclaiming and rehabilitating
mines and other facilities.

Parties engaged