Company: ALM
Filing Date: 2025-07-07
Form Type: F-10
Source: 0001641172-25-017947
Chunk: 198

Company: Almonty Industries Inc.
Filing Date: 2025-07-07
Form: F-10
Chunk 198
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 assets. U.S. Holders are urged to consult their tax advisors regarding the application of the information reporting rules to the acquisition and ownership Common Shares in light of their own circumstances.

During any taxable year in which we or any of our subsidiaries is treated as a PFIC, U.S. Holders may be required to file an annual report with the IRS on Form 8621. Failure to file such report could result in the imposition of penalties. U.S. Holders are urged to consult their own tax advisors concerning the PFIC annual filing requirements to them in light of their own circumstances.

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U.S. Federal
Income Tax Considerations Associated with the Domestication For U.S. Holders

Pursuant to the Domestication,
the Company will change its jurisdiction of incorporation from Canada to Delaware. We believe that the Domestication should qualify as
a “reorganization” within the meaning of Section 368(a)(1)(F) of the Code (an “F Reorganization”). However,
there is no U.S. federal income tax authority directly addressing the tax consequences of the Domestication and, accordingly, this tax
treatment is not free from doubt. Assuming the Domestication qualifies as an F Reorganization, U.S. Holders generally should not recognize
gain or loss on the Domestication for U.S. federal income tax purposes, except as provided below under the caption headings “– Effects of Section 367 on the Domestication” and “– PFIC Status”. The Domestication should be treated,
for U.S. federal income tax purposes, as if the Company (prior to the continuance) (i) transferred all of its assets and liabilities
to Almonty Industries Inc., a Delaware corporation, as of the effective time of the Domestication (“New Almonty”)
in exchange for all of the outstanding common stock of New Almonty (the “New Almonty Shares”) and (ii) then distributed
the New Almonty Shares to the shareholders of the Company in liquidation of Almonty. Assuming the Domestication qualifies as an F Reorganization,
and subject to the discussion below, (i) the tax basis of a New Almonty Share deemed to be received by a U.S. Holder in the Domestication
will equal the U.S. Holder’s adjusted tax basis in the Common Share deemed to be surrendered in exchange therefor, increased by
any amount included in the income of such U.S. Holder as a result of Section 367 of the