Company: ALM
Filing Date: 2025-07-07
Form Type: F-10
Source: 0001641172-25-017947
Chunk: 38

Company: Almonty Industries Inc.
Filing Date: 2025-07-07
Form: F-10
Chunk 38
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 by Russia, and geopolitical
concerns, such as the conflicts in the Middle East and ongoing conflict in Ukraine. Supply chain disruptions may also be manifested as
rising costs or shortages of certain commodities.

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Raw Materials Cost

Unexpected increases
in raw material costs could significantly impair Almonty’s profitability. Almonty’s mining operations use significant amounts
of steel, petroleum products and other raw materials in various pieces of mining equipment, supplies and materials. If the price of steel,
petroleum products or other input materials increase, Almonty’s operational expenses will increase, which could have a significant
negative impact on its profitability.

Energy Supply and Power Grid Reliability

Mining operations
are highly dependent on reliable and cost-effective energy supplies. Disruptions to the power grid, including outages, price volatility,
or infrastructure failures, could significantly impact production timelines and increase operating costs. Additionally, reliance on regional
energy sources may expose the Company to regulatory changes or shortages in energy supply. Any significant disruption to energy availability
or cost increases could adversely affect operational efficiency and profitability.

Water Supply and Management

Water is a critical input to the Company’s
present and planned mining operations, and the amount of water resources in the regions in which the Company operates requires
the Company to consider current and future conditions in its management of water resources. Current and long-term risks include those
that arise as a result of the Company’s operations and events that are out of the Company’s control such as extreme weather
and other physical risks associated with climate change such as changes in rainfall and water availability.

Changes in the quantity of water in regions where
the Company operates, whether excessive or deficient amounts, may affect exploration and development activities, mining and processing
operations, water management and treatment facilities, tailings storage facilities, closure and reclamation efforts, and may increase
levels of dust in dry conditions and land erosion and slope stability in case of prolonged wet conditions.

Water shortages may also result from environmental
and climate events that are out of the Company’s control and ability to manage. For example, inadequate rainfall or the occurrence
of drought may stop operations, which could materially affect production. Conversely, excessive rainfall or flooding may also result
in operational difficulties, including geotechnical instability, increased dewatering demands, and additional water management requirements.
In addition, the Company cannot predict the potential outcome of pending or future legal proceedings or negotiations related to water
rights, claims, contracts and uses, which may impact the Company’s operations. The loss