Company: ALM
Filing Date: 2025-07-07
Form Type: F-10
Source: 0001641172-25-017947
Chunk: 72

Company: Almonty Industries Inc.
Filing Date: 2025-07-07
Form: F-10
Chunk 72
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The tungsten market
faces several challenges, including the high dependency on Chinese supply, lack of transparency in production practices, and geopolitical
risks. However, these challenges also present opportunities for companies operating in transparent and conflict-free jurisdictions, like
Almonty, which is positioning itself as a strategic supplier to the United States and other Western partners. The market’s tight
supply conditions and the strategic importance of tungsten in critical industries are expected to support sustained price strength over
the medium to long term.

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A supply deficit
of tungsten is expected in the near term, with demand exceeding production by approximately 5,570 tonnes in 2025 and approximately
2,330 tonnes in 2026 (“Technical Report on the Mineral Resources and Reserves of Sangdong Project”, 2025). Global
tungsten demand volume is projected to grow at a CAGR of 3.6% from 2025 to 2034, driven by increased demand from semiconductor, electronics
and defense applications (Merchant). Despite the narrowing expected supply gap, supply chain vulnerabilities and concentration risk persist
and near-term demand growth for tungsten expected to outpace production (Merchant). The chart below shows the anticipated tungsten supply
gap in the next decade.

<div align='center'>Source: Merchant Research & Consulting Ltd., “ Tungsten 2025: World Market Review and Forecast to 2034,” 2025.</div>

The Company believes
that this supply gap will create an opportunity for future growth.

<div align='center'>OUR BUSINESS</div>

The following description of the Company does not contain all of the information about the Company and its properties and business that you should consider before investing in the Offered Shares. You should carefully read the entire prospectus, including the sections titled “Risk Factors”, as well as the documents incorporated by reference herein before making an investment decision.

Overview

We are a leading
producer of tungsten concentrate, primarily for the defense industry, with plans to vertically integrate into oxide production,
and we hold an additional deposit of molybdenum. Tungsten’s extreme hardness, density and high melting point make
it critical for armor-piercing ammunition, armor shielding for military vehicles, missile components, radiation shielding and hypersonic
weapons, however, global scarcity and processing difficulty makes securing conflict-free supply a challenge. With production of
tungsten severely limited outside of China, Russia and North Korea, we believe the operation of our established mine in Portugal, in