Company: ALM
Filing Date: 2025-07-07
Form Type: F-10
Source: 0001641172-25-017947
Chunk: 159

Company: Almonty Industries Inc.
Filing Date: 2025-07-07
Form: F-10
Chunk 159
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 mining development
work has been and is being executed by local contractors, with some materials supplied by AKTC. Mine capital expenditures are primarily
related to underground infrastructure, stope development and mine services. As existing development can be extensively utilized, the
underground development costs are relatively low. The development costs are also lower due to the large number of mining contractors
in South Korea and the competition between them. Sangdong Mine capital expenditures do not include closure expenses, as it is not expected
for the project to be restricted to the actual reserves. They also do not include the value(s) of existing assets.

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| 2. | Processing Plant |

The processing plant
capital expenditures are based on actual costs incurred as well as expected equipment costs from Metso (a major processing equipment
supplier), which has provided all major processing equipment except for conveyors and thickeners. These capital estimates cover all remaining
aspects of the processing plant building and installations.

| 3. | Infrastructure and 
 Support            |

Major expenditure components
are for power distribution, an office/shop/warehouse complex, camp and catering facilities and water supply and treatment.

| 4. | Project Indirect and 
 Owners’ Costs        |

Project indirect
procurement and construction management and owners’ costs also include manpower recruitment and training during the pre-production
period and all equivalent general and administration (“G&A”) costs that have and will be incurred during the construction
phase.

| 5. | Working Capital |

A working capital allowance,
in addition to capital expenditures, of US$2.17 million has been included in the cashflow model. This represents one to two months of
operating costs, which would be incurred before the first revenue is realized. The working capital requirement is less than would normally
be expected, as payment for the Sangdong Mine product is expected immediately after concentrate has been shipped.

| 6. | Sustaining Capital |

Additional sustaining
capital of approximately US$5 million for each of the first three years has also been allowed for in the overall cashflow model. This
is for ongoing primary development and continuation of the Sangdong gallery, as well as extension of the mine’s underground.

| I) | Operating Costs |

| 1. | Basis for Cost Estimation |

Project operating
costs are based on efficiencies and productivities that have been achieved within actual mine development work as well as using parameters
considered generally achievable in South Korea. The overall performance objectives are conservative by European standards.

Project