Company: ALM
Filing Date: 2025-07-07
Form Type: F-10
Source: 0001641172-25-017947
Chunk: 30

Company: Almonty Industries Inc.
Filing Date: 2025-07-07
Form: F-10
Chunk 30
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 expected steady
state levels. The Company may also experience actual capital and operating costs and operating results that differ materially from those
anticipated. In addition, experience from actual mining or processing operations may identify new or unexpected conditions that could
reduce production below, or increase capital or operating costs above, current estimates. Accordingly, the Company cannot provide assurance
that its activities will result in profitable mining operations at the Sangdong Mine.

Financing Risk

The development of the Sangdong Mine is heavily
reliant on a US$75.1 million senior secured term loan facility from KfW IPEX-Bank (“KfW”), a government-backed lender
that operates as part of the German state-owned KfW Group. The loan bears interest at the rate of SOFR plus 2.3%, capitalized quarterly,
with repayment of principal quarterly over a 6.25-year period commencing six months subsequent to the commencement of the mine’s
ramp-up period.

Any delays in the achievement of production at
the Sangdong Mine could impact the Company’s ability to comply with its repayment obligations under the KfW loan facility. The
Company may also be unable to comply with its repayment obligations in the event of lower-than-expected metallurgical recoveries or future
commodity prices.

Construction Risks

As a result of the substantial expenditures involved
in development projects, developments are prone to material cost overruns versus budget. The capital expenditures and time required to
develop new mines are considerable and changes in cost or construction schedules can significantly increase both the time and capital
required to build the project.

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Construction costs and timelines can be impacted
by a wide variety of factors, many of which are beyond the control of the Company. It is common in new mining operations to experience
such unexpected costs, problems and delays during construction, development and mine start-up. These include, but are not limited to,
weather conditions, ground conditions, performance of the mining fleet, availability of appropriate material required for construction,
availability and performance of contractors and suppliers, delivery and installation of equipment, design changes, accuracy of estimates
and availability of accommodations for the workforce.

Project development schedules are also dependent
on obtaining the governmental approvals necessary for the operation of a project. The timeline to obtain these government approvals is
often beyond the control of the Company. A delay in start-up or commercial production would increase capital costs and delay receipt
of revenues.

Off-Take Agreement

The Company has entered into the Amended Off-Take