Company: ALM
Filing Date: 2025-07-07
Form Type: F-10
Source: 0001641172-25-017947
Chunk: 200

Company: Almonty Industries Inc.
Filing Date: 2025-07-07
Form: F-10
Chunk 200
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 Common Shares with a fair market value of $50,000 or
more must either (a) recognize a gain (if any), but not a loss, with respect to the Domestication or, in the alternative, (b) may elect
to recognize the “all earnings and profits amount” attributable to such U.S. Holder.

Unless such U.S. Holder
makes the “all earnings and profits” election, such U.S. Holder generally (subject to the potential application of the PFIC
rules), should recognize a gain (if any), but not a loss, with respect to their Common Shares in an amount equal to the difference between
the fair market value of the New Almonty Shares deemed to be received and such U.S. Holder’s adjusted tax basis in their Common
Shares deemed to be surrendered in exchange therefor pursuant to the Domestication, and such gain would be capital gain, and should be
long-term capital gain if the U.S. Holder’s holding period for the Common Shares at the time of the Domestication is longer than
one year.

U.S. Holders who acquired
different blocks of Common Shares at different times or different prices should consult their own tax advisors as to the determination
of the tax bases and holding periods of the New Almonty Shares deemed to be received in the Domestication.

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In lieu of recognizing
any gain as described above, a U.S. Holder that validly makes the “all earnings and profits” election will be required to
include in income as a deemed dividend the “all earnings and profits amount” (within the meaning of Treasury Regulations
Section 1.367(b)-2(d)) attributable to the Common Shares owned directly by such U.S. Holder. Treasury Regulations under Section 367 provide
that all the earnings and profits amount attributable to a shareholder’s stock is determined according to the principles of Section
1248 of the Code. In general, Section 1248 of the Code and the Treasury Regulations thereunder provide that the amount of earnings and
profits attributable to a block of stock in a foreign corporation is the ratably allocated portion of the foreign corporation’s
earnings and profits generated during the period the shareholder held the block of stock. Accordingly, the “all earnings and profits
amount” attributable to the Common Shares held by a U.S. Holder should generally depend on the Company’s accumulated earnings
and profits (as determined under U.S. federal income tax principles) from the date that the Common Shares were acquired