Company: ALM
Filing Date: 2025-07-11
Form Type: F-10/A
Source: 0001641172-25-018741
Chunk: 31

Company: Almonty Industries Inc.
Filing Date: 2025-07-11
Form: F-10/A
Chunk 31
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 period.

Any delays in the achievement of production at
the Sangdong Mine could impact the Company’s ability to comply with its repayment obligations under the KfW loan facility. The
Company may also be unable to comply with its repayment obligations in the event of lower-than-expected metallurgical recoveries or future
commodity prices.

Construction Risks

As a result of the substantial expenditures involved
in development projects, developments are prone to material cost overruns versus budget. The capital expenditures and time required to
develop new mines are considerable and changes in cost or construction schedules can significantly increase both the time and capital
required to build the project.

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Construction costs and timelines can be impacted
by a wide variety of factors, many of which are beyond the control of the Company. It is common in new mining operations to experience
such unexpected costs, problems and delays during construction, development and mine start-up. These include, but are not limited to,
weather conditions, ground conditions, performance of the mining fleet, availability of appropriate material required for construction,
availability and performance of contractors and suppliers, delivery and installation of equipment, design changes, accuracy of estimates
and availability of accommodations for the workforce.

Project development schedules are also dependent
on obtaining the governmental approvals necessary for the operation of a project. The timeline to obtain these government approvals is
often beyond the control of the Company. A delay in start-up or commercial production would increase capital costs and delay receipt
of revenues.

Off-Take Agreement

The Company has entered into the Amended Off-Take
Agreement with GTP for the tungsten concentrate to be mined and processed at the Sangdong Mine. The Amended Off-Take Agreement has a
term of 10 years and, based upon current pricing models and subject to the terms and conditions of the agreement, the Amended Off-Take
Agreement could provide more than US$575 million in revenues over a 15-year period. The realization of the benefits of the Amended
Off-Take Agreement is contingent upon Almonty’s ability to meet its obligations to deliver tungsten concentrate in accordance with
the terms of the agreement. Any failure to comply with the obligations under the Amended Off-Take Agreement, including failure
to deliver the required quantities or quality of tungsten concentrate, could result in penalties, reduced revenues, or the termination
of the agreement. The variable costs of shipping and production over the term of the contract may also affect the profitability of the
agreement. Fluctuations