Company: ALM
Filing Date: 2025-07-07
Form Type: F-10
Source: 0001641172-25-017947
Chunk: 24

Company: Almonty Industries Inc.
Filing Date: 2025-07-07
Form: F-10
Chunk 24
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 agreement, originally dated March 12, 2018, (the “Amended Off-Take Agreement”)
with GTP for the tungsten concentrate to be mined and processed at the Sangdong Mine. Almonty is economically dependent on the revenue
received from the Panasqueira Customers in order to be able to meet its current obligations, and will be economically dependent on the
revenue received from GTP pursuant to the Amended Off-Take Agreement once the Sangdong Mine reaches commercial production. There is no
guarantee that Almonty would be able to find alternative customers on terms similarly advantageous in the future should the Panasqueira
Customers or GTP cease operations or become unable to pay Almonty.

Currency Risk

Fluctuations in foreign currency exchange rates
may adversely affect the Company’s results of operations.

The Company’s operating results and cash
flow are significantly affected by changes in exchange rates. BTW operates in Portugal, which uses Euros (€) as its functional currency.
Its output is a commodity that is primarily priced in U.S. dollars which is different than the functional currency of the Company and
its subsidiaries, and the Company and its subsidiaries may also incur costs or obtain indebtedness in a currency that is different from
their functional currency. Additionally, Daytal Resources Spain, S.L. (“Daytal”)’s current care and maintenance
expenses, as well as any potential future operating costs, are primarily denominated in Euros, which exposes the Company to currency
fluctuations between the Euro and its reporting currency. Almonty’s functional currency is the Canadian dollar but it advances
funds to subsidiaries in the functional currency of the subsidiary to which funds are advanced. As such, the Company’s financial
performance can be significantly affected by movements in various currencies (C$, US$, € and South Korean won (“KRW”)).

The U.S. dollar/Canadian dollar exchange rate
has fluctuated significantly over the last several years. From January 1, 2020 to December 31, 2024, the U.S. dollar/Canadian dollar
exchange rate (as reported by the Bank of Canada) fluctuated from a high of C$1.45 per US$1.00 to a low of C$1.20 per US$1.00.
Historical fluctuations in the U.S. dollar/Canadian dollar exchange rate are not necessarily indicative of future exchange rate fluctuations.

In addition, the majority of the Company’s
operating costs