Company: ALM
Filing Date: 2025-07-11
Form Type: F-10/A
Source: 0001641172-25-018741
Chunk: 25

Company: Almonty Industries Inc.
Filing Date: 2025-07-11
Form: F-10/A
Chunk 25
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 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 at the Panasqueira Mine as well as the care and maintenance costs at the Los Santos Mine are incurred in euros, and a
significant portion of development costs at the Sangdong Mine are incurred in Korean won. Each of these currencies has also fluctuated
significantly against the U.S. dollar over the past several years. The Company may engage in mitigating transactions to limit its exposure
to such risks, but there can be no assurance that any mitigating strategy will, if entered into, be successful. There can be no assurance
that foreign exchange fluctuations will not materially adversely affect the Company’s financial performance and results of operations.

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Fluctuation in Interest Rates

Almonty’s
exposure to the risk of changes in market interest rates relates to cash at banks and long-term debt with a floating interest rate. Of
its long-term debt, $130,986,000 is subject to floating interest rates and $37,608,