# EDGAR Filing Document

**Accession Number:** 0001670061
**File Stem:** 0001641172-25-017947
**Filing Date:** 2025-7
**Character Count:** 2024124
**Document Hash:** 495f6d5079da36ecc880cd2361584195
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001641172-25-017947.hdr.sgml**: 20250707

**ACCESSION NUMBER**: 0001641172-25-017947

**CONFORMED SUBMISSION TYPE**: F-10

**PUBLIC DOCUMENT COUNT**: 115

**FILED AS OF DATE**: 20250707

**DATE AS OF CHANGE**: 20250707

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Almonty Industries Inc.
- **CENTRAL INDEX KEY:** 0001670061
- **STANDARD INDUSTRIAL CLASSIFICATION:** MISCELLANEOUS METAL ORES [1090]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 000000000
- **STATE OF INCORPORATION:** Z4
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** F-10
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-288536
- **FILM NUMBER:** 251107671

**BUSINESS ADDRESS:**
- **STREET 1:** 100 KING STREET WEST
- **STREET 2:** SUITE 5700
- **CITY:** TORONTO
- **STATE:** A6
- **ZIP:** M5X 1C7
- **BUSINESS PHONE:** (647) 438-9766

**MAIL ADDRESS:**
- **STREET 1:** 100 KING STREET WEST
- **STREET 2:** SUITE 5700
- **CITY:** TORONTO
- **STATE:** A6
- **ZIP:** M5X 1C7

**As filed with the Securities and Exchange Commission on July 7, 2025**

**Registration No. 333-**

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

**FORM F-10** 

**REGISTRATION STATEMENT**

***UNDER***

***THE SECURITIES ACT OF 1933***

**ALMONTY INDUSTRIES INC.**

**(Exact name of registrant as specified in its charter)** 

---

| | | |
|:---|:---|:---|
| **Ontario, Canada** | **1061** | **Not Applicable** |
| **(Province or Other Jurisdiction of**<br> **Incorporation or Organization)** | **(Primary Standard Industrial**<br> **Classification Code)** | **(I.R.S. Employer**<br> **Identification No.)** |

---

**100 King Steet West, Suite 5700**

**Toronto, ON, M5X 1C7**

**Tel: (647) 438-9766**

**(Address and telephone number of Registrant's principal executive offices)**

**CT Corporation System**

**28 Liberty Street**

**New York, New York 10005**

**Tel: (212) 894-8940**

**(Name, address (including zip code) and telephone number (including area code) of agent for service in the United States)**

***Copies to:***

---

| | | |
|:---|:---|:---|
| **Lewis Black**<br> **Chief Executive Officer**<br> **100 King Steet West, Suite 5700**<br> **Toronto, ON M5X 1C7**<br> **Canada**<br> **(647) 438-9766** | **Pierre Dagenais**<br> **Norton Rose Fulbright Canada LLP**<br> **222 Bay St Suite 3000**<br> **Toronto, ON M5K 1E7<br> Canada**<br> **(416) 216-4792** | **Brian Fenske**<br> **Norton Rose Fulbright US LLP**<br> **1550 Lamar Street, Suite 2000,**<br> **Houston, TX 77010-4103**<br> **United States**<br> **(713) 651-5151** |
| **Brett D. Nadritch**<br> **Milbank LLP<br> 55 Hudson Yards<br> New York, NY 10001**<br> **United States**<br> **(212) 530-5000** | **Tim Andison** <br> **Blake, Cassels & Graydon LLP** <br> **199 Bay Street, Suite 4000** <br> **Toronto, Ontario M5L 1A9**<br> **Canada**<br> **(416) 863-2400** |  |

---

**Approximate date of commencement of proposed sale of the securities to the public:** From time to time after this Registration Statement becomes effective.

**Ontario** 

**(Principal jurisdiction regulating this offering)**

It is proposed that this filing shall become effective (check appropriate box)

---

| | | | |
|:---|:---|:---|:---|
| A. | ☐ | Upon filing with the Commission, pursuant to Rule 467(a) (if in connection with an offering being made contemporaneously in the United States and Canada). | Upon filing with the Commission, pursuant to Rule 467(a) (if in connection with an offering being made contemporaneously in the United States and Canada). |
| B. | ☒ | At some future date (check the appropriate box below) | At some future date (check the appropriate box below) |
|  | 1. | ☐ | pursuant to Rule 467(b) on (date) at (time) (designate a time not sooner than 7 calendar days after filing). |
|  | 2. | ☐ | pursuant to Rule 467(b) on (date) at (time) (designate a time 7 calendar days or sooner after filing) because the securities regulatory authority in the review jurisdiction has issued a receipt or notification of clearance on (date). |
|  | 3. | ☐ | pursuant to Rule 467(b) as soon as practicable after notification of the Commission by the Registrant or the Canadian securities regulatory authority of the review jurisdiction that a receipt or notification of clearance has been issued with respect hereto. |
|  | 4. | ☒ | after the filing of the next amendment to this Form (if preliminary material is being filed). |

---

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to the home jurisdiction's shelf prospectus offering procedures, check the following box. ☐

**The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registration Statement shall become effective as provided in Rule 467 under the Securities Act or on such date as the Commission, acting pursuant to Section 8(a) of the Securities Act, may determine.** 

**PART I** 

**INFORMATION REQUIRED TO BE DELIVERED TO** 

**OFFEREES OR PURCHASERS** 

 

 

*Information contained herein is subject to completion or amendment. A registration statement on Form F-10 relating to these securities has been filed with the United States Securities and Exchange Commission but is not yet effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This prospectus shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of securities in any U.S. state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such U.S. state.*

 

*This prospectus has been filed under procedures in Ontario that permit certain information about these securities to be determined after the prospectus has become final and that permit the omission of that information from this prospectus. The procedures require the delivery to purchasers of a supplemented short form PREP prospectus containing the omitted information within a specified period of time after agreeing to purchase any of these securities. All of the information contained in the supplemented short form PREP prospectus that is not contained in this prospectus will be incorporated by reference in this prospectus as of the date of the supplemented short form PREP prospectus.*

 

*No securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise. This preliminary prospectus, as amended or supplemented, and each document incorporated or deemed to be incorporated by reference in this preliminary prospectus, constitutes a public offering of securities offered pursuant hereto only in the jurisdictions where they may be lawfully offered for sale and therein only by persons permitted to sell such securities.*

 **

***This prospectus does not constitute an offer to sell or an invitation to subscribe for, or solicitation of an offer to subscribe for or buy, Offered Shares (as defined below) to any person in Australia. This prospectus has not been, and will not be, and no other disclosure document in relation to the Offered Shares will be lodged with the Australian Securities and Investments Commission or any other regulatory authority in Australia and this preliminary short form prospectus is not, and does not purport to be, a document containing disclosure to investors for the purposes of Part 6D.2 or 7.9 of the Corporations Act 2001 (Cth) ("Australian Corporations Act"). It is not intended to be used in connection with any offer for which such disclosure is required and does not contain all the information that would be required by those provisions if they applied. It is not to be provided to any 'retail client' as defined in section 761G of the Australian Corporations Act. The Company is not licensed in Australia to provide financial product advice in respect of the Offered Shares. Australian cooling-off rights do not apply to the acquisition of the Offered Shares.***

 

***Information has been incorporated by reference in this preliminary short form base PREP prospectus from documents filed with securities commissions or similar authorities in Canada.*** *Copies of the documents incorporated herein by reference may be obtained on request without charge from the Corporate Secretary of Almonty Industries Inc. at 100 King Street West, Suite 5700, Toronto, Ontario, M5X 1C7, telephone (647) 438-9766 and are also available electronically at <u>www.sedarplus.com</u>. All disclosure contained in a supplemented PREP prospectus that is not contained in this base PREP prospectus will be incorporated by reference in the base PREP prospectus as of the date of the supplemented PREP prospectus.*

**SUBJECT TO COMPLETION DATED JULY 7, 2025**

**PRELIMINARY SHORT FORM BASE PREP PROSPECTUS**

New Issue

![](image_001.jpg)

**ALMONTY INDUSTRIES INC.**

**US$●**

● **Common Shares**

This is Almonty Industries Inc.'s initial public offering in the United States. We are selling ● common shares. No common shares will be offered under this prospectus in Canada.

This prospectus qualifies the distribution to the public (the "**Offering**") of ● common shares (the "**Offered Shares**") of Almonty Industries Inc. (the "**Company**", "**Almonty**" or "**we**"**)** at a price of US$● per Offered Share (the "**Offering Price**").

The Offering is being made in the United States under the terms of a registration statement on Form F-10 (the "**Registration Statement**") filed with the United States Securities and Exchange Commission (the "**SEC**") under the Securities Act of 1933, as amended (the "**U.S. Securities Act**"). The Offered Shares will be offered through the Underwriters either directly or through their respective U.S. broker-dealer affiliates or agents. See "*Plan of Distribution*".

The issued and outstanding common shares of the Company (the "**Common Shares**") are listed and posted for trading on the Toronto Stock Exchange (the "**TSX**") under the trading symbol "AII" and the Australian Securities Exchange (the "**ASX**") under the trading symbol "AII" (in the form of CHESS Depositary Interests ("**CDIs**"), with each CDI representing a single Common Share), and are trading on the Frankfurt Stock Exchange (the "**FSE**") under the trading symbol "ALI", and the OTCQX market (the "**OTCQX**") under the trading symbol "ALMTF". We have applied to list our Common Shares (including the Common Shares being distributed hereunder) on the NASDAQ Capital Market ("**NASDAQ**") under the symbol "**ALM**". Upon and subject to receipt of all requisite approvals and the commencement of trading of the Common Shares on the NASDAQ, trading of the Common Shares on the OTCQX will cease. We have also applied to list the Offered Shares on the TSX. Listing will be subject to the Company fulfilling all of the listing requirements of the TSX and NASDAQ, as applicable. On ●, 2025, being the last full-trading day prior to the date of this prospectus, the closing price of the Common Shares on the TSX was C$●, and the closing price of the CDIs on the ASX was A$●.

**Price: US$** **●per Offered Share** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Public Offering**<br> **Price** | **Underwriters'**<br> **Fee** <sup>(1)</sup> | **Net Proceeds to the**<br> **Company** <sup>(2)</sup> |
| Per Offered Share | US$● | US$● | US$● |
| Total <sup>(3)</sup> | US$● | US$● | US$● |

---

**<u>Notes:</u>**

(1) The Company has agreed
 to pay the Underwriters a cash commission (the "**Underwriters' Fee** ")
 equal to ● % of the aggregate purchase
 price paid by the Underwriters to the Company for the Offered Shares. See "*Plan of Distribution* ".

(2) After deducting the Underwriters' Fee, but before deducting
 the expenses of the Offering, which are estimated at US$ ● and
 will be paid by the Company from the proceeds of the Offering. The net proceeds payable to the Company will be derived
 from the sale of the Offered Shares.

(3) The Company has granted the Underwriters an over-allotment
 option (the "**Over-Allotment Option** "), exercisable in whole or in part, at any time and from time
 to time, in the sole discretion of the Underwriters, for a period of 30 days from the date of closing of the Offering,
 to purchase up to ● additional Common Shares (the "**Additional Shares**") at the same price as set forth above, to cover overallotments, if any, and for market stabilization
 purposes. See "*Plan of Distribution* ". If the Over-Allotment Option is exercised in full, the
 total public Offering Price, Underwriters' Fee and net proceeds to the Company (after deducting the Underwriters'
 Fee but before deducting the expenses of the Offering) will be US$ ● ,
 US$ ● and US$ ● ,
 respectively.

The following table sets out the number of Additional Shares for which the Over-Allotment Option may be exercised:

---

| | | | |
|:---|:---|:---|:---|
| **Underwriters' Position** | **Maximum Number of**<br> **Offered Shares** | **Exercise Period** | **Exercise Price** |
| Over-Allotment Option | ● Additional Shares | Not later than 30 days after the closing date | US$● per Additional Share |

---

When used herein, unless otherwise indicated or the context otherwise requires, all references to Offered Shares include any Additional Shares issued in connection with any exercise of the Over-Allotment Option.

**In this prospectus, unless otherwise indicated, all dollar amounts and references to "US$" or "USD" are to U.S. dollars, references to "C$" or "$" are to Canadian dollars, references to "€" are to European euros, and references to "A$" are to Australian dollars.**

The Underwriters, as principals, conditionally offer the Offered Shares, subject to prior sale, if, as and when issued by the Company, and accepted by the Underwriters, in accordance with the conditions contained in the Underwriting Agreement described under "*Plan of Distribution*".

Delivery of the Offered Shares will be made on or about ●, 2025 (the "**Closing**").

---

| | |
|:---|:---|
|  | ***Joint Bookrunners*** |
| **Oppenheimer & Co. Cantor** | **Oppenheimer & Co. Cantor** |
|  | ***Lead Manager*** |
|  | **D.A. Davidson & Co.** |
|  | ***Co-Manager*** |
|  | **Scotia bank** |

---

A purchaser who acquires Offered Shares forming part of the Underwriters' over-allocation position acquires those Offered Shares under this prospectus, regardless of whether the over-allocation position is ultimately filled through the exercise of the Over-Allotment Option or secondary market purchases. It is expected that the Company will arrange for the instant deposit of the Offered Shares under the book-based system of registration, to be registered to The Depository Trust Company ("**DTC**") or its nominee and deposited with DTC on Closing, or as may otherwise be agreed to among the Company and the Underwriters. No certificates evidencing the Offered Shares will be issued to purchasers of the Offered Shares. Purchasers of the Offered Shares will receive only a customer confirmation from the Underwriter or other registered dealer from or through whom a beneficial interest in the Offered Shares is purchased. See "*Plan of Distribution*".

**The Underwriters propose to offer the Offered Shares initially at the Offering Price. After the Underwriters have made commercially reasonable efforts to sell all of the Offered Shares qualified by this prospectus at the Offering Price, the Offering Price may be decreased, and further changed from time to time, to an amount not greater than the Offering Price, and the compensation realized by the Underwriters will be decreased by the amount that the aggregate price paid by the purchasers of Offered Shares is less than the gross proceeds to be paid by the Underwriters to the Company. However, in no event will the Company receive less than net proceeds of US$● per Offered Share (before expenses of the Offering).** In connection with the Offering, subject to applicable laws, the Underwriters may over-allot or effect transactions that stabilize or maintain the market price of the Common Shares at levels other than those which otherwise might prevail on the open market. Such transactions, if commenced, may be discontinued at any time. See "*Plan of Distribution*".

**An investment in the Offered Shares is highly speculative and involves a high degree of risk and should only be made by persons who can afford the total loss of their investment. Prospective investors should carefully consider the risk factors described in this prospectus under "*Cautionary Note Regarding Forward-Looking Statements*" and "*Risk Factors*" and the risk factors in the Company's documents which are incorporated by reference herein for a description of risks involved in an investment in the Offered Shares.**

Our head and registered office is located at 100 King Street West, Suite 5700, Toronto, Ontario, M5X 1C7.

Investors should rely only on current information contained in or incorporated by reference in this prospectus as such information is accurate only as of the date of the applicable document. We have not authorized anyone to provide investors with different information. Information contained on our website shall not be deemed to be a part of this prospectus or incorporated by reference herein and should not be relied upon by prospective investors for the purpose of determining whether to invest in the securities. We will not make an offer of these securities in any jurisdiction where the offer or sale is not permitted. Investors should not assume that the information contained in this prospectus is accurate as of any date other than the date on the face page of this prospectus or the date of any documents incorporated by reference herein.

**This Offering is being made by a Canadian issuer that is permitted, under the multijurisdictional disclosure system adopted by Canada and the United States, to prepare this prospectus in accordance with the disclosure requirements of Canada. Prospective investors should be aware that such requirements are different from those of the United States. Financial statements included or incorporated by reference herein have been prepared in accordance with International Financial Reporting Standards, as adopted by the International Accounting Standards Board and as amended from time to time, and are subject to foreign auditing and auditor independence standards, and may not be comparable to financial statements of United States companies that use United States generally accepted accounting principles. Prospective investors should be aware that the acquisition of the Offered Shares may have tax consequences in the United States and in Canada. Such consequences for investors who are resident in, or citizens of, the United States, are not described fully in this prospectus. Investors should read the tax discussion in this prospectus and consult their own tax advisors with respect to their own particular circumstances. See "*Certain United States Federal Income Tax Considerations*", "*Certain Canadian Federal Income Tax Considerations*" and "*Risk Factors*".**

**The enforcement by investors of civil liabilities under federal securities laws of the United States may be affected adversely by the fact that Almonty is incorporated under the federal laws of Canada, that the majority of the Company's officers and directors, and some or all of the experts and Underwriters named in this prospectus, are residents of a country other than the United States, and that a substantial portion of the Company's assets and the assets of those officers, directors and experts are located outside of the United States. See "*Enforceability of Civil Liabilities*".**

**NEITHER THE SEC, NOR ANY STATE SECURITIES REGULATOR, NOR ANY CANADIAN SECURITIES REGULATOR HAS APPROVED OR DISAPPROVED OF THE SECURITIES OFFERED HEREBY, PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS OR DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENCE.**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| [ABOUT THIS PROSPECTUS](#a_001) | 1 |
| [CAUTIONARY NOTE TO UNITED STATES INVESTORS](#a_002) | 2 |
| [CAUTIONARY NOTE TO INVESTORS CONCERNING ESTIMATES OF MINERAL RESOURCES](#a_003) | 2 |
| [MARKET AND INDUSTRY DATA](#a_004) | 2 |
| [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](#a_005) | 3 |
| [PROSPECTUS SUMMARY](#a_006) | 6 |
| [THE OFFERING](#a_007) | 10 |
| [SUMMARY CONSOLIDATED FINANCIAL INFORMATION](#ds_001) | 11 |
| [RISK FACTORS](#a_008) | 12 |
| [INDUSTRY OVERVIEW](#a_009) | 35 |
| [OUR BUSINESS](#a_010) | 42 |
| [MANAGEMENT](#a_011) | 48 |
| [MINERAL PROJECTS](#a_012) | 54 |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#a_013) | 123 |
| [USE OF PROCEEDS](#a_014) | 127 |
| [CONSOLIDATED CAPITALIZATION](#a_015) | 130 |
| [DESCRIPTION OF SHARE CAPITAL](#a_016) | 131 |
| [PRIOR SALES](#a_017) | 132 |
| [EXCHANGE RATE INFORMATION](#a_018) | 135 |
| [MARKET FOR SECURITIES](#a_019) | 136 |
| [CERTAIN UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS](#a_020) | 137 |
| [CERTAIN CANADIAN FEDERAL INCOME TAX CONSIDERATIONS](#a_021) | 146 |
| [PLAN OF DISTRIBUTION](#a_022) | 148 |
| [ENFORCEABILITY OF CIVIL LIABILITIES](#a_023) | 154 |
| [LEGAL MATTERS](#a_024) | 155 |
| [INTEREST OF EXPERTS](#a_025) | 155 |
| [AUDITORS, REGISTRAR AND TRANSFER AGENT](#a_026) | 155 |
| [DOCUMENTS FILED AS PART OF THE REGISTRATION STATEMENT](#a_027) | 155 |
| [DOCUMENTS INCORPORATED BY REFERENCE](#a_028) | 156 |
| [WHERE YOU CAN FIND MORE INFORMATION](#a_029) | 157 |

---

i

**ABOUT THIS PROSPECTUS**

Market data and certain industry forecasts used in this prospectus and the documents incorporated by reference in this prospectus were obtained from market research, publicly available information and industry publications. We believe that these sources are generally reliable, but the accuracy and completeness of this information is not guaranteed. We have not independently verified such information, and we do not make any representation as to the accuracy of such information.

You should read this entire prospectus, including the documents incorporated herein by reference, and consult your professional advisors to assess the income tax, legal, risks and other aspects of an investment in the Offered Shares. The Company has filed the Registration Statement with the SEC under the U.S. Securities Act relating to the Offered Shares being offered hereunder. This prospectus forms a part of the Registration Statement. You should rely only on the information contained or incorporated by reference in this prospectus and on the other information included in the Registration Statement of which this prospectus forms a part.

We have not, nor have the Underwriters, authorized anyone to provide you with different or additional information. If anyone provides you with different or additional information, including information or statements in media articles about the Company, you should not rely on it. The Company and the Underwriters are not making an offer to sell or seeking an offer to buy the Offered Shares in any jurisdiction where the offer or sale is not permitted by law. You should assume that the information contained in this prospectus is accurate only as of the date on the front of those documents and that information contained in any document incorporated by reference is accurate only as of the date of that document, regardless of the time of delivery of this prospectus or of any sale of our securities pursuant thereto. Our business, financial condition, financial performance and prospects may have changed since those dates. No Common Shares are being offered under this prospectus in Canada.

In this prospectus, unless the context otherwise requires, references to "we", "us", "our" or similar terms, as well as references to "Almonty" or the "Company", refer to Almonty Industries Inc., together with our subsidiaries.

Unless indicated otherwise, all information in this prospectus is presented without giving effect to the exercise of the option to purchase additional Common Shares granted to the Underwriters.

On July 3, 2025, we effected a 1.5-to-1 consolidation of our Common Shares (the "**Share Consolidation**"), and it is expected that our Common Shares will commence trading on a post-consolidated basis on July 7, 2025. The Share Consolidation was approved by our shareholders on April 30, 2025 at our annual general and special meeting of shareholders. Except where otherwise noted, all information in this prospectus and the documents incorporated by reference dated on or after the date of the Share Consolidation give pro forma effect to the Share Consolidation. See "*Description of Share Capital—Share Consolidation*".

In this prospectus, unless otherwise indicated, all dollar amounts and references to "US$" or "USD" are to U.S. dollars, references to "C$" or "$" are to Canadian dollars, references to "€" are to European euros, and references to "A$" are to Australian dollars. This prospectus and the documents incorporated by reference contain translations of some Canadian dollar amounts into U.S. dollars solely for your convenience. See "*Exchange Rate Information*".

Neither we nor any of the Underwriters have taken any action to permit a public offering of our Common Shares or the possession or distribution of this prospectus in any jurisdiction where action for that purpose is required, other than the United States. You are required to inform yourselves about and to observe any restrictions relating to this Offering and the distribution of this prospectus.

**Information contained in this prospectus should not be construed as legal, tax or financial advice and readers are urged to consult their own professional advisors in connection therewith.**

**CAUTIONARY NOTE TO UNITED STATES INVESTORS**

We are permitted under a multijurisdictional disclosure system adopted by the securities regulatory authorities in Canada and the United States to prepare this prospectus, including the documents incorporated by reference, in accordance with the requirements of Canadian securities laws, which differ from the requirements of United States securities laws.

Unless otherwise indicated, the technical disclosure regarding our properties included or incorporated by reference herein, including all mineral resource estimates contained in such technical disclosure, has been prepared in accordance with the requirements of National Instrument 43-101 — *Standards of Disclosure for Mineral Projects* ("**NI 43-101**") and the Canadian Institute of Mining, Metallurgy and Petroleum (the "**CIM**") – CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the "**CIM Definition Standards**"). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects.

Canadian standards, including NI 43-101, differ significantly from the disclosure requirements of the SEC under subpart 1300 of Regulation S-K (the "**SEC Modernization Rules**"). The Company is not required to provide disclosure on its mineral properties under the SEC Modernization Rules and provides disclosure under NI 43-101 and the CIM Definition Standards. Accordingly, information contained in this prospectus, or the documents incorporated by reference herein, may differ significantly from the information that would be disclosed had the Company prepared the mineral resource estimates under the standards adopted under the SEC Modernization Rules.

We prepare our financial statements, which are incorporated by reference to this prospectus, in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("**IFRS**"). Consequently, all of the financial statements and financial information of Almonty included or incorporated herein is prepared in accordance with IFRS, which is materially different than financial statements and financial information prepared in accordance with U.S. generally accepted accounting principles.

**CAUTIONARY NOTE TO INVESTORS CONCERNING ESTIMATES OF MINERAL RESOURCES**

Investors are cautioned not to assume that any part, or all, of the mineral deposits categorized as "Inferred Mineral Resources" or "Indicated Mineral Resources" will ever be converted into mineral reserves. "Inferred Mineral Resources" are Mineral Resources for which quantity and grade or quality are estimated based on limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. "Inferred Mineral Resources" are based on limited information and have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility.

Under Canadian rules, estimates of Inferred Mineral Resources are considered too speculative geologically to have the economic considerations applied to them to enable them to be categorized as Mineral Resources and, accordingly, may not form the basis of feasibility or pre-feasibility studies, or economic studies except for a Preliminary Economic Assessment as defined under NI 43-101. Investors are cautioned not to assume that part or all of an Inferred Mineral Resource exists or is economically or legally mineable. Indicated and Inferred Mineral Resources that are not Mineral Resources do not have demonstrated economic viability.

**MARKET AND INDUSTRY DATA**

Market and industry data presented throughout this prospectus and/or the documents incorporated by reference herein or therein was obtained from third-party sources and industry reports and from publications, websites and other publicly available information, as well as industry and other data prepared by us or on our behalf on the basis of our knowledge of the markets in which we operate, including information provided by suppliers, partners, customers and other industry participants. We believe that the market and economic data presented throughout this prospectus and/or the documents incorporated by reference herein or therein is accurate and, with respect to data prepared by us or on our behalf, that our estimates and assumptions are currently appropriate and reasonable, but there can be no assurance as to the accuracy or completeness thereof. The accuracy and completeness of the market and economic data presented throughout this prospectus and/or the documents incorporated by reference herein or therein are not guaranteed and none of us or any of the Underwriters makes any representation as to the accuracy of such data. Actual outcomes may vary materially from those forecast in such reports or publications, and the prospect for material variation can be expected to increase as the length of the forecast period increases. Although we believe it to be reliable, none of us or any of the Underwriters has independently verified any of the data from third-party sources referred to in this prospectus and/or the documents incorporated by reference herein or therein, analyzed or verified the underlying studies or surveys relied upon or referred to by such sources, or ascertained the underlying market, economic and other assumptions relied upon by such sources. Market and economic data is subject to variations and cannot be verified due to limits on the availability and reliability of data inputs, the voluntary nature of the data-gathering process and other limitations and uncertainties inherent in any statistical survey, including those discussed under "*Cautionary Note Regarding Forward-Looking Statements*" and "*Risk Factors*".

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This prospectus and the documents incorporated by reference herein contain "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and United States securities legislation (collectively herein referred to as "**forward-looking statements**"), including the "safe harbour" provisions of provincial securities legislation, the U.S. Private Securities Litigation Reform Act of 1995, Section 21E of the U.S. Securities Exchange Act of 1934, as amended (the "**Exchange Act**"), and Section 27A of the U.S. Securities Act. Forward-looking information may relate to the Company's future financial outlook and anticipated events or results and may include information regarding the Company's business, financial position, results of operations, business strategy, growth plans and strategies, technological development and implementation, budgets, operations, financial results, taxes, dividend policy, plans and objectives. Such forward-looking statements include, but are not limited to:

● the timing and completion of the Offering;

● the listing of the Offered Shares on the TSX and NASDAQ;

● the proposed use of proceeds of the Offering;

● the future price of tungsten and other metals and commodities;

● the estimation of Mineral Resources;

● the Company's expectations regarding future demand for tungsten;

● the Company's expectations regarding the further development and life of mine of its mineral projects, including the Sangdong Mine and the Panasqueira Mine;

● the Company's plans and expectations regarding its Mineral Projects, including the re-opening of the Los Santos Mine and the potential of the molybdenum project;

● estimates of the time and amount of future tungsten production for specific operations;

● estimated future exploration and development expenditures and other expenses for specific operations;

● permitting timelines;

● the Company's expectations regarding impairments of mineral properties;

● the Company's expectations regarding the sufficiency of its capital resources and requirements for additional capital;

● the Company's plans to redomicile to the U.S., including the timing thereof;

● litigation risks;

● currency and interest rate fluctuations;

● environmental risks and reclamation cost; and

● changes to governmental laws and regulations.

When used in this prospectus, any statements that express or involve discussions with respect to predictions, beliefs, plans, projections, objectives, assumptions or future events of performance (often but not always using words or phrases such as "anticipate", "believe", "estimate", "expect", "intend", "plan", "strategy", "goals", "objectives", "project", "potential" or variations thereof or stating that certain actions, events, or results "may", "could", "would", "might" or "will" be taken, occur, or be achieved, or the negative of any of these terms and similar expressions), as they relate to the Company or management, are intended to identify forward-looking statements. Such statements reflect the Company's current views with respect to future events and are subject to certain known and unknown risks, uncertainties and assumptions.

Forward-looking statements are necessarily based upon estimates and assumptions, which are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company's control and many of which, including regarding future business decisions, are subject to change. Assumptions underlying the Company's expectations regarding forward-looking statements contained in this prospectus include, among others:

● our ability to complete the development of Phase I of the Sangdong Mine and to begin production at the Sangdong Mine within the anticipated timeline;

● our ability to manage our growth effectively, both organically and through acquisitions;

● the absence of material adverse changes in our industry or the global economy, including interest rate fluctuations, inflationary pressures, supply chain disruptions, and commodity market volatility;

● trends in our industry and markets, including the competitive environment;

● our ability to maintain our interests in our mineral projects, including with respect to title, access, and permitting matters;

● our ability to manage risks normally incidental to the exploration, development and operation of mineral properties;

● our ability to maintain good business relationships with key stakeholders, including customers, suppliers, lenders, regulators, and local communities;

● our ability to effectively integrate acquisitions and realize anticipated benefits;

● our ability to manage potential uncertainties in the interpretation of geological data, drill results and market data, including data related to pricing trends, demand forecasts, and competitive positioning;

● our ability to manage the possibility that future exploration, development or mining results may not be consistent with our expectations;

● the accuracy of our Mineral Resource and Mineral Reserve estimates and the underlying assumptions, including with respect to cut-off grades, recovery rates, and long-term commodity prices;

● the adequacy and availability of infrastructure (including power, water, roads, and processing capacity) at or near the mineral properties;

● the timely receipt and maintenance of necessary governmental and third-party approvals, permits, licenses, authorizations and regulatory compliance obligations;

● our ability to comply with current and future environmental, health and safety, and other regulatory requirements and to timely obtain and maintain required regulatory approvals, licenses and permits;

● our expectation that our operations will not be significantly disrupted as a result of political instability, pandemics and communicable diseases, nationalization, terrorism, sabotage, social or political activism, breakdown, natural disasters, governmental or political actions, litigation or arbitration proceedings, equipment or infrastructure failure, labour shortages, transportation disruptions or accidents, or other development or exploration risks;

● our ability to execute construction and development activities on schedule and within budget; our ability to recruit, retain and engage qualified personnel and contractors in all required jurisdictions;

● our ability to raise sufficient debt or equity financing to support our continued growth;

● our ability to continue to have sufficient working capital to fund our operations;

● the performance of counterparties under offtake agreements, supply arrangements, financing agreements, and other material contracts;

● that input costs, including energy, labor, equipment, and materials, will not increase materially beyond current expectations;

● that the price of tungsten and other metals and commodities will not decline significantly or for a protracted period of time;

● that the global financial markets and general economic conditions (including trade and monetary policies, currency exchange rates and rates of inflation) will be stable and conducive to business in the future;

● our ability to maintain the security and integrity of our information technology systems and mitigate the impact of any potential cybersecurity threats; and

● our ability to meet increasing expectations regarding environmental, social and governance (ESG) matters from regulators, investors, and other stakeholders.

Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others:

● our ability to continue as a going concern;

● the negative cash flow from our operations;

● the price of metals;

● our economic dependency on few customers;

● fluctuation in foreign currency;

● fluctuation in interest rates;

● inflation;

● tax-related risks;

● the risk of default under any of our credit agreements;

● future financing;

● our liquidity and level of indebtedness;

● risks associated with our business being carried on through foreign subsidiaries;

● risks relating to the development of the Sangdong Mine (as defined herein), including financing risk, construction risk, availability of infrastructure and skilled labour, as well as risk relating to the offtake agreements for the Sangdong Mine;

● our production;

● our Mineral Reserve and Mineral Resource estimates;

● our competition;

● our dependence on key personnel;

● trade risks;

● supply chain disruptions;

● the cost of raw materials;

● energy supply and power grid reliability;

● water supply and management;

● infrastructure and operational risks;

● our impairment of assets;

● risks related to property title;

● laws and regulations;

● licenses and permits;

● mining risks and insurance limitations;

● legal systems;

● Mineral Reserve and Mineral Resource depletion;

● risks related to underground stope stability;

● reputational risks;

● geopolitical risks in key operating regions;

● public allegations, regulatory investigations, or litigation;

● environmental and global climate change risks;

● risks related to costs of land reclamation;

● technological obsolescence;

● management of growth;

● cybersecurity and data protection;

● health and pandemic risks;

● opposition to mining;

● costs and compliance risks as a result of being a public company;

● acquisitions and synergies;

● anti-corruption and anti-bribery laws;

● Canada's Extractive Sector Transparency Measures Act;

● the Ukraine conflict;

● risks related to our proposed redomiciling to the United States, including Canadian corporate tax risk;

● our use of the net proceeds from the Offering;

● that an investment in the Offered Shares may result in the loss of an investor's entire investment;

● that the completion of the Offering and the listing on the NASDAQ remain subject to the completion of binding documentation and satisfaction of conditions;

● volatility in the price of the Common Shares;

● dilution to the Company's shareholders;

● the potential insufficiency of a liquid trading market for the Common Shares in the future;

● risks relating to research and reports published about the Company and its business by securities or industry analysts;

● risks relating to the Company's status as an "emerging growth company";

● risks relating to the Company, its directors, officers and management (with the exception of the Chief Executive Officer and two non-executive directors) and all of the Company's material assets being located outside of the United States, which may make it difficult for U.S. litigants to effect service of process of, or enforce, any judgments obtained against the Company or its officers or directors;

● the history of the Company with respect to not paying dividends recently and anticipation of not paying dividends in the immediate future; and

● risks that the Company could in the future be classified as a 'passive foreign investment company', which could have adverse U.S. federal income tax consequences for U.S. holders of Common Shares.

Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. Forward-looking statements are statements about the future and are inherently uncertain and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including without limitation, those referred to in this prospectus under the heading "*Risk Factors*" and documents incorporated by reference herein. Each of these forward-looking statements speaks only as of the date such statements were made. The Company's forward-looking statements are based on the reasonable beliefs, expectations and opinions of management on the date the statements are made and, other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements if circumstances or management's beliefs, expectations or opinions should change. For the reasons set forth above, investors should not attribute undue certainty to or place undue reliance on forward-looking statements. The forward-looking statements included and incorporated by reference herein are presented for the purpose of assisting investors in understanding our expected financial and operational performance and results as at and for the periods ended on the dates presented in our plans and objectives and may not be appropriate for other purposes.

**PROSPECTUS SUMMARY**

*This summary highlights principal features of the Offering and selected information contained elsewhere in this prospectus. This summary does not contain all the information that you should consider before deciding to invest in our Common Shares. You should read the entire prospectus carefully and the documents incorporated by reference herein, especially the "Risk Factors" and our financial statements and related notes to those financial statements, appearing elsewhere in this prospectus, before making an investment decision. Capitalized terms used but not defined in this prospectus summary are defined elsewhere in this prospectus.*

**Our Business**

We are a leading producer of tungsten concentrate, primarily for the defense industry, with plans to vertically integrate into oxide production, and we hold an additional deposit of molybdenum. Tungsten's extreme hardness, density and high melting point make it critical for armor-piercing ammunition, armor shielding for military vehicles, missile components, radiation shielding and hypersonic weapons, however, global scarcity and processing difficulty makes securing conflict-free supply a challenge. With production of tungsten severely limited outside of China, Russia and North Korea, we believe the operation of our established mine in Portugal, in addition to the construction of our mine in South Korea, positions us as a key supplier for Western defense programs. With a strategic emphasis on advancing vertical integration in the tungsten supply chain, we plan to become one of the only U.S.-based tungsten producers by redomiciling from Canada to the state of Delaware, in the United States. Demand for our products is underscored by a 15-year floor-priced offtake contract with a U.S. defense contractor for our tungsten concentrate as well as a second offtake agreement for tungsten oxide, designated exclusively for U.S. defense applications. In addition, we have secured an offtake agreement with a floor price structure, with SeAH M&S ("**SeAH**") for our potential molybdenum production.

Our flagship asset, the Sangdong Tungsten Mine (the "**Sangdong Mine**") in South Korea, is one of the world's largest tungsten deposits by Inferred Mineral Resource and provides tungsten of superior grade compared with global peers, and is in soft commissioning. Once fully operational, Sangdong is expected to produce a significant portion of the global tungsten supply outside of China, supplying to mission-critical sectors such as defense, aerospace, semiconductors and batteries. As noted above, the Sangdong Mine is supported by a 15-year, floor-priced offtake agreement with a leading U.S. defense contractor for more than 90% of Phase I production at Sangdong, securing anticipated revenue and validating strategic importance. The Company is also party to a US$75.1 million project financing facility provided by KfW IPEX-Bank, the export and project finance arm of German state-owned KfW Group, which is backed by the Federal Republic of Germany. The loan bears interest at SOFR plus 2.3% and provides for principal repayment on a quarterly basis over a 6.25-year term. Almonty also has a molybdenum project with significant Inferred Mineral Resources on a separate property adjacent to the tungsten orebody at the Sangdong Mine. This molybdenum opportunity provides access to another critical material used in aerospace alloys, energy infrastructure and nuclear defense.

We also own and operate the Panasqueira tungsten mine in Covilha, Castelo Branco, Portugal (the "**Panasqueira Mine**")**—**one of the world's longest-producing tungsten mines—which has been operating for over a century and is renowned for its high-grade, low-impurity tungsten concentrate. In addition to its production, the Panasqueira Mine serves as a vital source of technical know-how and operational expertise across our portfolio. Our Spanish assets, including the Valtreixal tungsten mine project located in the province of Zamora, in Western Spain (the "**Valtreixal Mine**") and the Los Santos tungsten mine located near Salamanca, Spain (the "**Los Santos Mine**"), provide us with additional growth opportunities and help diversify our future supply.

Almonty's objective is to build a secure, Western-focused tungsten and molybdenum supply chain capable of displacing reliance on China and meeting the increasing needs of Western defense industries. Given our multi-decade resource visibility, access to high-grade material, our expertise in tungsten processing, our long-term offtake agreements and experienced management team, Almonty is well-positioned to become a leading strategic supplier of "conflict-free" tungsten and molybdenum for defense, aerospace semiconductor, and battery markets.

**Our Industry**

We believe the key drivers of our market include:

●  ***Unique versatility of tungsten.*** Tungsten is a versatile and essential metal used in a wide range of applications due to its unique properties. Specifically, tungsten has a high melting point (heat resistance), extreme durability and hardness, and high density — making it indispensable for a range of applications, including:

○ *Kinetic Warfare*: measuring core of armor-piercer and kinetic armor-piercing bullets. Tungsten is a key component in armor shielding for military vehicles and tank armor;

○ *Next-Generation Weapons Systems:* kinetic energy penetrators, hypersonic glide vehicles, armor-piercing shells, and missile propulsion systems;

○ *Military Electronics and Satellites*: high-density tungsten shielding, which is essential in protecting onboard electronics from radiation and kinetic impact;

○ *Semiconductors*: key material in logic chip interconnects and next-gen transistor fabrication;

○ *Electric Vehicles*: energy-efficient drivetrains; and

○ *Thermonuclear Energy*: nuclear fusion reactor components.

 

●  ***Tungsten as a critical mineral.*** Since the tungsten market is characterized by its critical importance to various defense, high-tech and industrial applications, it is deemed a critical material by the European Union, the United States, Australia, Canada, and South Korea due to its supply risks and economic value.

 ****

●  ***Tungsten production is currently concentrated in three countries.*** The largest producers of tungsten currently include China, Russia and North Korea, which together control a significant majority of global supply (approximately 87%). Since February 2025, China, which contributes over 80% of global supply alone, has imposed export controls of 25 rare metal products, including tungsten and molybdenum. Additionally, the U.S. Department of Defense has banned the mining, refining and production of tungsten and other critical materials in Iran, Russia, North Korea and China for military procurement beginning January 1, 2027. This concentration of supply has led to increased market tension and supply chain vulnerabilities.

●  ***Rising tungsten prices.*** Increasing geopolitical tensions have driven a significant increase in demand for tungsten concentrate, with the average weekly spot price of European ammonium para tungstate ()"**APT**") as quoted on the FastMarkets Metal Bulletin exchange ()"**Fastmarkets MB**") rising to over US$450 per metric tonne unit ()"**MTU**") in Q2-2025, which represents the highest level recorded in over three decades. In response, U.S. executive orders signed in March and April 2025 have aimed to increase domestic critical mineral production and strengthen the supply chain to support national security.

●  ***Molybdenum's use in mission-critical applications.*** Molybdenum is required for high-strength steel alloys, radiation shielding, aerospace systems, and reactors, with increasing demand forecasted for military, clean energy and space applications. Despite rising demand, there are few viable suppliers outside of China, with greater than 50% of global production based in China. The OECD and U.S. Geological Survey cite the lack of diversified production as a critical threat.

**Our Mines and Production**

Given the supply chain vulnerabilities and concentration risk associated with tungsten, the operation of our mines in Western-friendly nations is critical. We currently operate our Panasqueira Mine in Portugal and are in the process of finalizing soft commissioning at our Sangdong Mine in South Korea. We also own our Los Santos and Valtreixal Mines in Spain, which are under maintenance and in development, respectively.

●  ***The Sangdong Mine*** *:* We acquired our flagship project, the Sangdong Mine in South Korea, in 2015. The Sangdong Mine represents one of the largest tungsten deposits in the world by Inferred Mineral Resource. Below are certain highlights of the Sangdong Mine:

○ *Grade:* 0.43% WO₃ (Inferred Mineral Resource)

○ *Ore production and processing capacity:* 640,000 tonnes of ore per year expected for Phase I; with Phase II expansion expected to increase total ore mined to up to 1,200,000 tonnes/year

&nbsp;&nbsp;&nbsp;&nbsp;

●  ***Panasqueira Mine:*** We acquired the Panasqueira Mine in 2016. The Panasqueira Mine is one of the world's longest-producing tungsten mines, with over a century of continuous operation. The mine produces clean, high-grade material with low impurity which has resulted in us receiving offtake contracts with customers. The experience gained at the Panasqueira Mine has provided the Company with deep technical know-how, trade secrets and expertise in the mining, processing and refinement of tungsten oxide, which we believe serves as distinct competitive advantages and provides a blueprint for the design and engineering of our Sangdong Mine. Below are certain highlights of the Panasqueira Mine:

○ *WO<sub>3</sub> Production:* ~58,750 MTUs/year; with an extension expected to increase production to ~124,000 MTUs of WO₃ concentrate

○ *Customers:* located in Japan and Europe

○ *Permit Validity*: Through 2052, with 30-year renewal option

 

●  ***Valtreixal Mine & Los Santos Mine:*** These development-stage projects offer optionality and future growth.

○ *Valtreixal Mine:* Open-pit tungsten project with pre-feasibility advancement

○ *Los Santos Mine:* Objective of tailings reprocessing

○ *Purpose:* Expansion of capacity and diversification of Western supply

**Our Strengths**

●  ***Fully permitted assets with access to high-grade, purity and recovery resources.*** We control large-scale, high-grade tungsten and molybdenum assets in Western-friendly jurisdictions with long-life production potential. Our Sangdong Mine has one of the largest tungsten deposits in the world by Inferred Mineral Resource; the mine contains a Probable Mineral Reserves grade of 0.42%, as well as estimated recovery of 85%. The mine also currently has an estimated life of over 45 years based on the Phase II expansion. Our Panasqueira Mine has tungsten with Proven Mineral Reserve grades of approximately 0.22%, currently mining around 0.12% and a recovery rate of approximately 80%. The tungsten recovery rates at the Panasqueira Mine remained stable from 2022 to the first quarter of 2025, averaging 80%.

 ****

●  ***Decades of tungsten mining and processing expertise.*** The Panasqueira Mine has been in near-continuous production for 129 years, and we have operated it since January 2016 during which time we have perfected and refined the tungsten processing process. The Company has operated gravity-based processing for several decades, providing the opportunity to incrementally improve and optimize recovery performance. As a result, the process achieves consistent tungsten recoveries and also yields additional by-products, including tin and copper. Because tungsten is brittle, the ability to precisely grind material is critical and our expertise in this regard has led to high quality oxide and favorable pricing of our product.

 ****

●  ***Offtake contracts with customers with premium pricing.*** Since the White House signed executive orders in March and April to increase domestic critical mineral production to support national security, the Department of Defense and related defense programs have aimed to secure a more stable source of tungsten for U.S. programs. We are well-positioned to benefit from these policy changes as we have secured several floor-priced tungsten offtake agreements, including a 15-year agreement with Global Tungsten & Powders Corp. ()"**GTP** "), which is part of the Plansee Group, and a second agreement with Metal-Tech Ltd. ()"**Metal-Tech**") to process material for Tungsten Parts Wyoming, Inc. ()"**TPW**") solely for U.S. defense programs. We supply tungsten to metals processors and tungsten product manufacturers for defense applications, as well as for the tooling, electronics and other industrial sectors, with a diversified customer base focused across the U.S., E.U. and Japan.

●  ***Secure and Vertically Integrated Supply Chain*** . All our operations are in NATO or allied nation countries, securing supply agreements for customers in the U.S., Korea, Japan, and the EU. It is anticipated that future vertically integrated production of nano tungsten oxide at the Tungsten Oxide Facility will reduce processing times and transportation costs.

●  ***Structured Development Path.*** The Sangdong Mine provides a clear growth path for the Company, including through a floor-priced offtake agreement with a U.S. defense contractor, and a US$75.1 million government-backed project financing facility provided KfW IPEX-Bank. The project is further supported by a feasibility study prepared in accordance with NI 43-101, validated environmental assessments, and equipment performance guarantees from Metso, the Company's primary plant supplier.

**Our Growth Strategy**

We are building a leading vertically-integrated supply chain for tungsten — serving the strategic needs of Western defense industries, as well as semiconductors, energy and other industrial applications.

Our strategy is centered on growth through production scale, vertical integration, and jurisdictional alignment with U.S. and allied governments. With increasing public and private sector demand for reliable sources of critical minerals, we are executing a phased, capital-efficient roadmap to scale high-purity production, downstream processing, and market penetration.

Major aspects of our growth strategy include:

●  ***Complete Redomiciling to U.S.*** Almonty intends to relocate its corporate domicile to Delaware to benefit from the U.S.'s robust regulatory framework for critical minerals like tungsten and molybdenum and align Almonty's corporate structure with the location of a significant portion of our shareholder base. In February 2025, we announced that the holders of Common Shares voted to approve Almonty's proposed continuance from Canada to the State of Delaware, USA.

●  ***Commencing Production at the Sangdong Mine ("Phase I").*** The Sangdong Mine is fully permitted, and we expect to complete construction in the second half of 2025, leveraging existing infrastructure with long-lead time equipment already delivered. We expect to commence production in the second half of 2025 and have already secured offtake contracts for a significant proportion of the expected production capacity from Phase I. At full scale, Phase I is expected to produce 230,000 MTUs of tungsten trioxide ()"**WO<sub>3</sub>**") concentrate annually.

 ****

●  ***Expanding production at the Sangdong Mine ("Phase II").*** We have the opportunity to significantly increase the throughput capacity at the Sangdong Mine—from 640,000 tonnes to approximately 1.2 million tonnes per annum. This expansion is fully permitted under existing Phase I approvals, and during the development of Phase I, some components have been built which may support a higher throughput or expansion. It is expected that, subject to positive operating results from Phase I and prevailing market conditions, Phase II could be advanced as early as 2026. The Phase II expansion is expected to unlock scale economies and support margin enhancement.

 ****

●  ***Securing offtake contracts with new customers.*** The Company is continuously in the process of seeking additional potential offtake partners and evaluating new opportunities to expand our commercial partnerships. As we increase our production, we expect to sign new offtake contracts with customers with favorable economics. These offtake contracts are anticipated to primarily supply tungsten to customers for defense and military applications.

●  ***Develop Tungsten Oxide Facility*** . Almonty is assessing a potential vertical integration opportunity through the development of a nano tungsten oxide downstream processing plant in South Korea, near the Sangdong Mine (the "**Tungsten Oxide Facility** "), with operations targeted to begin in 2028, to provide high-purity tungsten oxide for defense, semiconductors, and EV applications.

●  ***Additional molybdenum opportunity.*** In addition to tungsten, Almonty also has a molybdenum project with significant Inferred Mineral Resources on a separate property adjacent to the tungsten orebody at the Sangdong Mine. Additionally, Almonty has already secured an offtake agreement for 100% of material with SeAH, which is a major processor of molybdenum products in South Korea and is constructing a $110 million manufacturing facility in Texas.

●  ***Panasqueira Mine Expansion (Portugal)*** . Almonty is planning an extension of the Panasqueira Mine, with the potential to extend the life of the mine and significantly increase production capacity. Key objectives of this extension include increased ore throughput and improved average head grade, while continuing to serve customers who rely on the mine's concentrate.

**Corporate Information**

The Company was incorporated on September 28, 2009 under the *Business Corporations Act* (British Columbia) and is continued under the *Canada Business Corporation Act* effective March 27, 2012. Our principal executive offices are located at 100 King Street West, Suite 5700, Toronto, Ontario M5X 1C7, Canada, and our telephone number is (647) 438-9766. Our website address is www.almonty.com. Information contained on, or that can be accessed through, our website does not constitute a part of this prospectus and is not incorporated by reference herein. We have included our website address in this prospectus solely for informational purposes. Our agent for service of process in the United States is CT Corporation System, and its telephone number is (212) 894-8940.

**THE OFFERING**

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| | |
|:---|:---|
| Size of Offering | US$75,000,000 |
| Common Shares offered | ● Common Shares |
| Common Shares to be outstanding immediately after this Offering | ● Common Shares |
| Offering price | US$● |
| Underwriters' option | We have granted the Underwriters an option for a period of 30 days after the date of this prospectus to purchase up to ● Additional Shares. See "Plan of Distribution". |

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 See "Use of Proceeds".

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| | |
|:---|:---|
| Risk factors | See "Risk Factors" and other information included or incorporated by reference in this prospectus for a discussion of factors you should carefully consider before deciding to invest in our Common Shares. |
| Proposed NASDAQ symbol | We have applied to have our Common Shares listed on the NASDAQ under the symbol "ALM". |
| TSX, ASX, FSE and OTCQX symbols | Our Common Shares are listed and posted for trading on the TSX under the trading symbol "AII" and on the ASX under the trading symbol "AII" (in the form of CDIs, with each CDI representing a single Common Share), and are trading on the FSE under the trading symbol "ALI", and on the OTCQX under the trading symbol "ALMTF." Upon and subject to receipt of all requisite approvals and the commencement of trading of the Common Shares on the NASDAQ, trading of the Common Shares on the OTCQX will cease. |

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The number of Common Shares to be outstanding after the Offering is based on 195,860,805 Common Shares outstanding as of July 4, 2025. Unless otherwise indicated or context otherwise requires, in this prospectus the number of Common Shares to be outstanding after this Offering includes ● Common Shares to be issued and sold by us in this Offering (assuming no exercise of the Underwriters' option to purchase up to ● Additional Shares), but excludes:

● 15,897,956 Common Shares issuable upon the exercise of outstanding Common Share options at a weighted average exercise price of C$1.41 per share;

● 3,366,661 Common Shares issuable upon the exercise of Restricted Share Units at a weighted average exercise price of C$1.63 per share;

● 18,068,716 unallocated Common Shares reserved for future issuance under our Omnibus Equity Incentive Plan dated effective as of April 30, 2025, the Third Amended and Restated Incentive Stock Option Plan or the Restricted Share Unit Plan ;

● 24,648,671 Common Shares issuable upon the exercise of convertible debentures at a weighted average exercise price of C$1.09 per share; and

● 17,789,846 Common Shares issuable upon the exercise of warrants and CDI options at a weighted average exercise price of C$1.33 per share.

Unless otherwise indicated, this prospectus:

● assumes an initial public offering price of US$ ● per Common Share, which was the closing price of the Common Shares on the TSX based on the U.S.-Canadian dollar noon exchange rate of US$1.00 = C$ ● on Jul **y ●**, 2025, as quoted by the Bank of Canada;

● assumes no exercise of the Underwriters' option to purchase up to an additional ● Common Shares; and

● reflects the Share Consolidation .

**SUMMARY CONSOLIDATED FINANCIAL INFORMATION**

 

*The following tables set forth our summary consolidated financial information for the fiscal years ended December 31, 2024 and 2023 and for the three months ended March 31, 2025 and 2024. You should read the following summary consolidated financial information in conjunction with, and it is qualified in its entirety by reference to, our historical consolidated financial information and other information provided in this prospectus, including "Risk Factors", "Consolidated Capitalization", and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and the related notes appearing elsewhere in this prospectus.*

 

*This summary consolidated financial information is derived from our audited consolidated financial statements for the years ended December 31, 2024 and 2023 and our unaudited interim condensed consolidated financial statements for the three months ended March 31, 2025 and 2024, which appear elsewhere in this prospectus and are presented in Canadian dollars. The historical results set forth below are not necessarily indicative of the results to be expected in future periods and our results for the three-month period ended March 31, 2025 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2025 or any other interim periods or any future period. Our consolidated financial statements have been prepared in accordance with IFRS.*

 

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| | | |
|:---|:---|:---|
|  | **Three months ended** | **Three months ended** |
|  | **31-Mar-25**<br>**$'000** | **31-Mar-24**<br>**$'000** |
| Gross Revenue | 7908 | 7824 |
| Mine production costs | 6588 | 6665 |
| Care and maintenance | 280 | 263 |
| Depreciation and amortization | 288 | 290 |
| Income from mining operations | 752 | 606 |
| General and administrative costs | 3406 | 1475 |
| Non-cash compensation costs | 851 | 392 |
| Loss before the under noted items | (3505) | (1261) |
| Interest expense | 1206 | 1423 |
| Loss on valuation of embedded derivative liabilities | 2909 | 81 |
| Foreign exchange loss | 1100 | 903 |
| Tax provision | 92 | 5 |
| **Loss before other item** | **(8812)** | **(3673)** |
| Loss on valuation of warrant liabilities | 25810 | 109 |
| Net loss for the period | (34622) | (3782) |
| Pro forma income (loss) per share - basic <sup>(1)</sup> | $(0.20) | $(0.03) |
| Pro forma income (loss) per share - diluted <sup>(1)</sup> | $(0.20) | $(0.03) |
| Dividends | - | - |
| Cash flows provided by (used in) operating activities | (4401) | (1121) |
| Cash flows provided by (used in) investing activities | (7802) | (7368) |
| Cash flows provided by (used in) financing activities | 21423 | 3144 |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) As
 adjusted figures are adjusted to reflect the Share Consolidation.

 

The table below presents our summary consolidated statement of financial position as at March 31, 2025:

● on an actual basis; and

● on an as adjusted basis to give effect to the issuance and sale of Common Shares by us in this Offering at an assumed initial public offering price of US$ ● per Common Share, after deducting underwriting discounts and commissions and estimated offering expenses payable by us.

The summary unaudited as adjusted consolidated statement of financial position is for information purposes only and does not purport to indicate consolidated statement of financial position information as of any future date.

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| | | |
|:---|:---|:---|
|  | **31-Mar-25**<br>**$'000** | **31-Dec-24**<br>**$'000** |
| Cash | 16985 | 7830 |
| Total assets | 279041 | 256349 |
| Long-term debt | 171612 | 158022 |
| Shareholders' equity | 18102 | 39073 |
| Other |  |  |
| Pro forma outstanding shares ('000) <sup>(1)</sup> | 188521 | 176947 |
| Pro forma weighted average outstanding shares ('000) |  |  |
| &nbsp;&nbsp;&nbsp;Basic <sup>(1)</sup> | 184210 | 169357 |
| &nbsp;&nbsp;&nbsp;Fully diluted <sup>(1)</sup> | 184210 | 169357 |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) As
 adjusted figures are adjusted to reflect the Share Consolidation.

**RISK FACTORS**

 

*The Company operates in the mining industry, which is subject to numerous significant risks that can influence profitability. Investing in our securities involves a high degree of risk. In addition to the other information included or incorporated by reference in this prospectus, potential investors and readers should carefully consider the risk factors set out below which the Company believes to be the most significant and that could have a material impact on its current and future operations. If any of the following risks actually occur, our business, financial condition, financial performance and prospects could materially suffer. As a result, the trading price of our securities, including our Common Shares, could decline, and you might lose all or part of your investment. The risks and uncertainties set out below or elsewhere in this prospectus and the documents incorporated by reference herein are not the only ones facing the Company. Risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially and adversely affect our business, financial condition, financial performance and prospects. You should also refer to the other information set forth or incorporated by reference in this prospectus, including our consolidated financial statements and related notes and the risk factors discussed under the heading "Risk Factors" in the Company's most recently filed annual information form, available on the System for Electronic Data Analysis and Retrieval + ("**SEDAR+**") at <u>www.sedarplus.com</u> and on the SEC's Electronic Data Gathering and Retrieval System ("**EDGAR**") at <u>www.sec.gov</u> as such risk factors may be modified herein. The risks discussed below also contain forward-looking statements, and our actual results may differ materially from those discussed in these forward-looking statements. See "Cautionary Note Regarding Forward-Looking Statements".*

**Financial Risks**

**Ability to Continue as a Going Concern**

The Company faces risks related to its ability to continue as a going concern. The Company's financial stability is contingent upon its ability to manage substantial long-term debt, secure additional financing, and generate sufficient cash flows from its operations. Notably, the Company's operations and development projects, including the Sangdong Mine, are capital-intensive and subject to various risks, including delays, cost overruns, and regulatory challenges. Any adverse developments in these projects could impact the Company's cash flow and ability to meet its financial obligations. While the Company has been actively managing its financial position and securing necessary financing to support its operations and its current forecast indicates that it will have sufficient cash flows from operations and from financings to continue as a going concern and settle obligations as they come due, any changes in these estimates or adverse developments in the Company's operations or financing activities could materially impact its ability to continue as a going concern.

**Negative Cash Flows From Operations**

In its most recently completed financial year, the Company has sustained net losses from operations and has had a negative cash flow from operating activities of $7.498 million. The Company continues to have negative operating cash flow from operations of $4.4 million as at March 31, 2025. It is highly likely the Company may have negative cash flow in any future period and as a result, the Company will need to use available cash, including proceeds to fund any such negative cash flow. The Company believes that, after receiving the proceeds from the Offering, it will have sufficient funds to operate and advance its business objectives and key milestones for a period of at least twelve months. The proceeds from the Offering are expected to fund the Company's development of the Tungsten Oxide Facility. The Company expects that the operations at the Tungsten Oxide Facility could begin in 2028.

The Company anticipates increased cash flow from operating activities once production begins at the Sangdong Mine, meaning any delay would impact our ability to be cash flow positive. The Company may, in the future, seek further financing through long-term debt from financial institutions, debt or equity financing though capital markets, or private placements. The availability of this capital is subject to general economic conditions and lender and investor interest in the Company's projects and there can be no assurance that additional capital or financing will be available if needed or that, if available, the terms of such financings will be acceptable to the Company. Any changes in these estimates or adverse developments in the availability of capital could materially impact the Company's financial performance and results of operations.

**Weaknesses in Disclosure Control and Procedures and Financial Disclosures**

In its assessment of the effectiveness in internal control over financial reporting as of December 31, 2019, the Company determined it had ineffective design and implementation of internal controls over the financial statement close and disclosure process, including regarding assertions about the completeness, existence and accuracy of the financial information. Due to this material weakness, management concluded that ICFR was not effective as of December 31, 2019.

A material weakness is a significant deficiency, or combination of significant deficiencies, that result in more than a remote likelihood that a material misstatement of the annual or interim financial statements will occur and not be detected by management before the financial statements are published. Controls can potentially be circumvented by the individual acts of some persons, by collusion of two or more people or by management override of the control. The design of any system of controls is also based on part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

In light of the aforementioned material weakness, management conducted a thorough review of all significant or non-routine adjustments for the fifteen months ended December 31, 2019, for the year ended December 31, 2020, for the year ended December 31, 2021, for the year ended December 31, 2022, for the year ended December 31, 2023, for the year ended December 31, 2024 and for the three months ended March 31, 2025. As a result of this review, management believes that there were no material inaccuracies or omissions of material fact and, to the best of its knowledge, believes that the consolidated financial statements for the fifteen months ended December 31, 2019, for the year ended December 31, 2020, for the year ended December 31, 2021, for the year ended December 31, 2022, for the year ended December 31, 2023, for the year ended December 31, 2024 and for the three months ended March 31, 2025 fairly present in all material respects and the financial condition and results of operations for the Company in conformity with IFRS.

The Company cannot be certain that all material weaknesses in its disclosure control and procedures and internal control over financial reporting have been identified, and, as such, the Company continues to evaluate and, as necessary, implement additional remediation measures. The Company's current controls and procedures and any new controls and procedures that we develop may also become inadequate because of various factors, including changes in our business and increased complexity resulting from any international expansion. Any failure to develop or maintain effective controls and procedures or any difficulties encountered in their implementation or improvement could result in the Company's inability to produce accurate financial statements on a timely basis, could increase the Company's operating costs and harm our business, could result in the Company's failure to meet our reporting and / or listing obligations, could result in a restatement of the Company's financial statements for prior periods, could undermine investor confidence in us and could adversely affect the trading price of the Company's Common Shares. In addition, investors' perceptions that the Company's internal controls and procedures are inadequate or that we are unable to produce accurate financial statements on a timely basis may harm the Company's stock price. The Company intends to review its disclosure control and procedures and internal control over financial reporting with the assistance of an external consultant in the third quarter of 2025.

**Price of Metals**

The Company's earnings are directly related to commodity prices, as revenues are derived from the sale of tungsten. In common with other commodities, tungsten markets are cyclical and may be volatile.

Almonty's policy is to maintain exposure to commodity price movements at its mining operations. The Company sells WO<sub>3</sub> concentrate that is denominated in US$ per MTU. Every +/- US$10.00 movement in the average price of one (1) MTU of European APT as quoted on the Fastmarkets MB exchange impacts the Company's revenue by +/- approximately US$8.00 per MTU of WO<sub>3</sub> concentrate.

Tungsten prices fluctuate and are affected by factors including demand from industrial sectors such as defense, aerospace, and energy, international economic and political trends, expectations of inflation, expectations of economic activity, the exchange rate of the U.S. dollar to other major currencies, political and economic conditions including international trade disputes and the imposition of tariffs, interest rates, global or regional consumption and demand patterns, speculative activities and increased production due to improved mining and production methods, production costs in major tungsten-producing regions, speculative positions taken by investors or traders in tungsten, wars and other conflicts, changes in supply and changing investor or consumer sentiment (including in connection with the transition to a low-carbon economy, investor interest in cryptocurrencies and other investment alternatives) as well as competition from alternative materials, all of which are beyond the Company's control. Tungsten prices may also be negatively affected by any slowing of the global economy, increases in exports from one market economy countries, notably China, unfavourable shifts in tungsten demand in key markets such as Asia, Europe, and North America, and the release of tungsten concentrate onto the market from the U.S. National Defence Stockpile. The aggregate effect of these factors is impossible to predict with accuracy. There is thus no assurance that a profitable market will continue to exist for the sale of tungsten. Fluctuations in tungsten prices may materially adversely affect the Company's financial performance or results of operations. If the market price of tungsten concentrate falls below the Company's realized or anticipated all-in sustaining costs per MTU of production at one or more of its mines, projects or other properties and remains so for any sustained period, the Company may experience losses and/or may curtail or suspend some or all of its mining, exploration or development activities at such mines, projects or other property or at other mines or projects. A fall in the market price of tungsten concentrate may affect the Company's ability to generate positive cash flow from operations. The Company's current mine plans and mineral reserve and mineral resource estimates for the Sangdong Mine are generally based on an APT price of US$**450** per MTU. If the price of tungsten falls below such level, the Sangdong Mine may be rendered uneconomic and production may be suspended. In addition, lower tungsten prices may require the mine plans to be changed, which may result in reduced production, higher costs than anticipated, or both, and the estimate of mineral reserves for the Sangdong Mine and Mineral Resources may be reduced. Also, increased volatility in the price of tungsten may result in the Company delaying or abandoning some of its growth projects.

From time to time, the Company enters into supply agreements with customers which fix the price of the product its sells for periods of time the Company deems appropriate.

**Economic Dependency**

Although the Company sells its tungsten concentrate to Japanese, European and North American customers, the majority of the revenue earned by the Company's current operations are derived from sales to two customers and their affiliates under short-term supply agreements for the minerals produced at the Panasqueira Mine (the "**Panasqueira Customers**"). Beralt Tin & Wolfram (Portugal), S.A. ("**BTW**"), an indirect wholly-owned subsidiary of the Company, is a party to such agreements, which are typically renewed on an annual basis. The Company has also entered into an amended off-take agreement, originally dated March 12, 2018, (the "**Amended Off-Take Agreement**") with GTP for the tungsten concentrate to be mined and processed at the Sangdong Mine. Almonty is economically dependent on the revenue received from the Panasqueira Customers in order to be able to meet its current obligations, and will be economically dependent on the revenue received from GTP pursuant to the Amended Off-Take Agreement once the Sangdong Mine reaches commercial production. There is no guarantee that Almonty would be able to find alternative customers on terms similarly advantageous in the future should the Panasqueira Customers or GTP cease operations or become unable to pay Almonty.

**Currency Risk**

Fluctuations in foreign currency exchange rates may adversely affect the Company's results of operations.

The Company's operating results and cash flow are significantly affected by changes in exchange rates. BTW operates in Portugal, 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.

**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 $37,608,000 is subject to fixed interest rates. A portion of its floating rate debt totalling $24,110,000 is subject to a fixed spread over the 6- and 12-month Euro Interbank Offered Rate (Euribor) rates. A change of 100 basis points (1%) in the rates would result in a $241 change in annual interest costs. The remaining floating rate debt of $106,876,000 is based on a fixed spread over the 3-month secured overnight financing rate (SOFR). A change of 100 basis point (1%) in the 3-month SOFR rate would result in a $1,069,000 change in annual interest costs. All figures are provided in this risk factor are as at December 31, 2024.

The Company may in the future become a borrower of an additional material amount of funds or repay its existing outstanding long-term debt at any time without penalty. The Company's primary operations are located in South Korea, Spain, and Portugal. The ongoing uncertainty in the financial markets may have a negative impact on both the Company's future borrowing costs and its ability to obtain debt financing.

**Inflation**

The Company is also affected by inflationary pressures. Inflation rates in the jurisdictions in which the Company operates have increased significantly since 2021. A significant portion of the upward pressure on prices has been attributed to the rising costs of labour and energy. These inflationary pressures have affected the Company's labour, commodity and other input costs and such pressures may or may not be transitory. Any continued inflation or increase in the inflation rate for the Company's inputs, including as a result of increased tariffs affecting countries in which the Company operates or that are part of the Company's supply chains may have a material adverse effect on the Company's operating costs, capital expenditures for the development of its projects as well as its financial condition and results of operations.

**Tax-Related Risks**

The Company operates in multiple jurisdictions with varying tax regimes, and its global operations may expose it to changes in tax laws and interpretations that could adversely affect profitability. The effective tax rate may change from year to year based on a multitude of factors. Changes to international, regional, or local tax regulations, including transfer pricing, withholding taxes, and corporate tax rates, may result in higher effective tax rates or unexpected tax liabilities. Furthermore, the classification of income from foreign jurisdictions, such as South Korea, Spain, and Portugal, could impact the Company's cash flow and financial reporting.

The Company also enters into transactions and arrangements in the ordinary course of business in which the tax treatment is not entirely certain. The Company must therefore make estimates and judgments in determining its consolidated tax provision. The final outcome of any audits by taxation authorities may differ from estimates and assumptions used in determining the consolidated tax provisions and accruals. This could result in a material effect on income tax provision, financial position and the net income/loss for the period in which such determinations are made. See "*Risks Related to Almonty's Redomiciling to the United States—Canadian Corporate Tax Risk*."

**Default Risk**

The Company's term loans and convertible debentures include various positive and negative covenants as well as cross-default clauses. Events beyond the Company's control, including changes in general economic and business conditions and global health crisis or pandemics may affect the Company's ability to satisfy these covenants, which could cause several defaults in the event the Company is in default on any of its loan agreements.

In addition, as of the date of this prospectus, the Company has pledged certain of its assets as security in order to obtain additional capital through loans.

Should Almonty fail to comply with its covenants, pay any outstanding amount or remedy an event of default (as defined under the loan agreements), the lender may, among other things, have the right to demand immediate repayment of the outstanding debt or to seize and dispose of the secured assets.

**Future Financing**

The success of exploration programs, development programs and other transactions related to concessions could have a significant impact on the need for capital. If Almonty decides to develop one of its properties, it must ensure that it has access to the required capital. The Company could finance its need for capital by using working capital, by arranging partnerships or other arrangements with other companies, through equity financing, by taking on short-term and/or long-term debt or any combination thereof. To fund its future growth plans, the Company may become dependent on securing the necessary capital through loans or permanent capital. The availability of this capital is subject to general economic conditions and lender and investor interest in the Company's projects and there can be no assurance that additional capital or financing will be available if needed or that, if available, the terms of such financings will be acceptable to the Company. To facilitate the availability of capital, the Company maintains an investor relations program to inform all shareholders and potential investors of the Company's developments.

**Liquidity and Level of Indebtedness**

As of December 31, 2024, Almonty had cash and cash equivalents of approximately $7.8 million (including $2.8 million of restricted cash solely for use on the Sangdong Mine development project) and total liabilities of approximately $217.2 million, including $151.2 million of secured debt and $14.8 million of unsecured convertible debentures. As at March 31, 2025, the Company held cash and receivables of $20.2 million (of which $3.5 million represented cash restricted for use for the development of the Sangdong Mine) and a working capital deficiency of $16.7 million. Although Almonty has been successful in repaying liabilities in the past and issuing new debt securities, there can be no assurance that it can continue to do so. In addition, Almonty may assume additional liability in future periods or reduce its holdings of cash and cash equivalents in connection with funding future acquisitions, existing operations, capital expenditures, dividends or in pursuing other business opportunities.

The Company's level of indebtedness could have important consequences for its operations, including:

● Almonty may need to use a large portion of its cash flow to repay the principal and pay interest on its debt, which will reduce the amount of funds available to finance its operations and other business activities; and

● Almonty's debt level may limit its ability to pursue other business opportunities, borrow money for operations or capital expenditures in the future or implement its business strategy.

As of December 31, 2024, Almonty had approximately $21.8 million in long-term debt maturing by the end of 2025.

In addition to future cash flow from operations, potential divestment and the creation of new joint ventures and partnerships, Almonty's potential other sources of liquidity for the payment of its expenses and principal and interest payable on its debt in 2025 include issuing additional equity or unsecured debt. Almonty's ability to reduce its indebtedness and meet its payment obligations will depend on its future financial performance, which will be impacted by financial, business, economic and other factors. Almonty will not be able to control many of these factors, such as economic conditions in the markets in which it operates. Almonty cannot be certain that its existing capital resources and future cash flow from operations will be sufficient to allow it to pay principal and interest on Almonty's debt and meet its other obligations. If these amounts are insufficient or if there is a contravention of its debt covenants, Almonty may be required to refinance all or part of its existing debt, sell assets, borrow more money or issue additional equity. The ability of Almonty to access the bank, public debt or equity capital markets on an efficient basis may be constrained by a dislocation in the credit markets and/or capital and/or liquidity constraints in the banking, debt and/or equity markets at the time of issuance.

Almonty is also exposed to liquidity and various counterparty risks including, but not limited to: (i) Almonty's lenders and other banking counterparties; (ii) Almonty's insurance providers; (iii) financial institutions that hold Almonty's cash; (iv) companies that have payables to Almonty; and (v) companies that have received deposits from Almonty for the future delivery of equipment.

**Foreign Subsidiaries**

All of Almonty's business is carried on through its foreign subsidiaries. Accordingly, any limitation on the transfer of cash or other assets between the parent corporation and such entities, or among such entities, including restrictions or costs on dividends or repatriation of earnings under applicable local law or any tax obligations, monetary transfer restrictions and foreign currency exchange regulations in the jurisdictions in which the subsidiaries operate or are incorporated, could restrict the Company's ability to fund its operations and projects efficiently and the Company's growth may be inhibited unless it is able to obtain additional equity or debt financing on acceptable terms. In the event of a subsidiary's liquidation, the Company may lose all or a portion of its investment in that subsidiary. Any such limitations, or the perception that such limitations may exist now or in the future, could have an adverse impact on Almonty's valuation and stock price.

**Risks Relating to the Development of the Sangdong Mine**

**Uncertainties and Risks Relating to the Start-Up of the Sangdong Mine**

The Company's ability to maintain current, or achieve forecast, tungsten production levels is dependent on the successful development and potential expansion of the Sangdong Mine. There are many risks and unknowns inherent in all projects. For example, the economic feasibility of projects is based upon many factors, including:

● the accuracy of mineral reserve estimates;

● metallurgical recoveries;

● capital and operating costs of such projects;

● the timetables for the construction, commissioning and ramp-up of such projects and any delays or interruptions;

● the reliability of construction designs and accuracy of engineering;

● changes in scope;

● the ability to manage large-scale construction; and

● the future prices of commodities.

Unforeseen circumstances, including those related to the amount and nature of the mineralization at the development site, technological impediments to extraction and processing, legal requirements, governmental intervention, infrastructure limitations, transport issues, environmental issues, and local community relations or other events, could result in the development of the Sangdong Mine becoming impractical or uneconomic. Further, actual costs and economic returns may differ materially from the Company's estimates, or the Company may fail or be delayed in obtaining the governmental permits and approvals necessary in connection with the project, in which case, the project may not proceed either on its anticipated timing or at all.

Frequently, new and/or expanded mining operations experience unexpected problems during the start-up phase, and delays can often occur prior to production reaching its expected steady state levels. The Company may also experience actual capital and operating costs and operating results that differ materially from those anticipated. In addition, experience from actual mining or processing operations may identify new or unexpected conditions that could reduce production below, or increase capital or operating costs above, current estimates. Accordingly, the Company cannot provide assurance that its activities will result in profitable mining operations at the Sangdong Mine.

**Financing Risk**

The development of the Sangdong Mine is heavily reliant on a US$75.1 million senior secured term loan facility from KfW IPEX-Bank ("**KfW**"), a government-backed lender that operates as part of the German state-owned KfW Group. The loan bears interest at the rate of SOFR plus 2.3%, capitalized quarterly, with repayment of principal quarterly over a 6.25-year period commencing six months subsequent to the commencement of the mine's ramp-up 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.

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 in these costs may be influenced by factors such as fuel prices, labour costs, and regulatory changes. GTP's failure to purchase the tungsten concentrate as agreed may also have a material impact on Almonty's revenue. As a result, there is no guarantee that the Company will realize the revenues contemplated under the terms of the Amended Off-Take Agreement.

**Availability of Infrastructure**

The continued development of the Sangdong Mine will require access to and an ability to maintain adequate and reliable infrastructure, including roads, power sources and water systems. If the required infrastructure is not readily available, it may have to be built, and there is no assurance that it can be built in a timely manner or at all. There is no assurance that the Company can access and maintain the infrastructure needed, or, where necessary, obtain rights of way, government authorizations and permits to construct, or upgrade the same at a reasonable cost, in a timely manner, or at all. Access to infrastructure may also be interrupted by natural causes, such as drought, floods, earthquakes, landslides and other weather phenomena, or man-made causes, such as blockades, sabotage, conflicts, government issues, political events, protests, rationing or competing uses, as well as global pandemics.

Inadequate, inconsistent or costly infrastructure could compromise many aspects of the project's feasibility, viability and profitability, including, but not limited to the construction schedule, capital and operating costs.

**Availability of Skilled Labour**

The continued development of the Sangdong Mine will depend on the availability of a skilled workforce, including, but not limited to, mining and mineral, metallurgical and geological engineers, geologists, environmental and safety specialists, and mining operators to explore and develop the project. Inadequate access to an available skilled workforce could compromise many aspects of the project's feasibility, viability and profitability, including, but not limited to, the construction and production schedules, capital and operating costs.

**Technological and Innovation Risk**

The development and operation of the Sangdong Mine involve advanced technologies, such as the Mine Safety DX technology developed with Korea Telecom (KT). The successful implementation of this technology relies on the integration of advanced communication infrastructure. Any technical issues or delays in installation and operation could hinder communication and monitoring capabilities. This could lead to operational disruptions, increased costs, and production delays, negatively impacting the profitability of the Sangdong Mine.

**Risks Relating to the Tungsten Oxide Facility**

**Project Financing and Capital Cost Overrun Risk**

The Company has not yet secured all of the financing required to construct and commission its projected development of the Tungsten Oxide Facility. While a non-binding letter of intent has been entered into with KfW for up to $50 million in project financing, the finalization of this financing facility and any additional required funding remains subject to various conditions including due diligence, negotiation of definitive agreements and satisfaction of conditions precedent, such as receipt of all necessary permits.

The estimated capital cost of the Tungsten Oxide Facility is based on preliminary engineering studies and may be subject to significant change as the project advances. Unanticipated increases in construction, equipment, labor, or regulatory compliance costs could result in a funding shortfall. There can be no assurance that the Company will be able to secure the necessary project financing on acceptable terms or at all. Failure to obtain sufficient financing or to control capital costs could delay, suspend, or prevent the construction and commissioning of the Tungsten Oxide Facility, which could have a material adverse effect on the Company's growth strategy, financial condition, and results of operations.

**Execution and Construction Risk**

The Tungsten Oxide Facility is a large-scale, technically complex project that remains in the pre-construction stage. The successful completion of the project is subject to numerous risks, including but not limited to: design and engineering challenges, procurement and delivery of specialized equipment, contractor and labor availability, construction delays, cost overruns, and unforeseen technical or environmental issues. Any material delay, technical failure, or increase in costs could adversely affect the project's economics and the Company's financial position. There can be no assurance that the Tungsten Oxide Facility will be completed on schedule, within budget, or at all, or that it will operate as intended.

**Permitting and Regulatory Risk**

The development and operation of the Tungsten Oxide Facility are subject to obtaining and maintaining various permits, licenses, and regulatory approvals from local, regional, and national authorities in South Korea. The permitting process can be lengthy, complex, and subject to change, and there is no guarantee that all necessary approvals will be obtained in a timely manner or at all.

**Operational Risks**

**Production**

Almonty prepares estimates of future production, total cash costs and capital costs of production for particular operations. No assurance can be given that such estimates will be achieved. Failure to achieve production or cost estimates or material increases in costs could have an adverse impact on Almonty's future cash flows, profitability, results of operations and financial condition.

Almonty's actual production and costs may vary from estimates for a variety of reasons, including: actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; short-term operating factors relating to mineral or ore reserves, such as the need for sequential development of ore bodies and the processing of new or different ore grades; revisions to mine plans; unusual or unexpected ore body formations; risks and hazards associated with mining; natural phenomena, such as inclement weather conditions, increased incidence of extreme weather events, water availability, floods, and earthquakes; and unexpected labour shortages or strikes. Production may also be impacted by delays or inefficiencies in the commissioning or operation of the flotation and chemical processing plant at the Sangdong Mine. Costs of production may also be affected by a variety of factors, including: changing waste-to-ore ratios, ore grade metallurgy, labour costs, the cost of commodities, general inflationary pressures and currency exchange rates.

**Accuracy of Mineral Reserve and Mineral Resource Estimates**

The mineral reserves and Mineral Resources published by the Company are estimates and no assurance can be given that the anticipated production will be achieved or that the indicated level of recovery of tungsten will be realized. Because Almonty prepared this prospectus in accordance with the disclosure requirements of Canadian securities laws, it contains resource estimates, which are required by NI 43-101. Mineral reserve and mineral resource estimates are often based on tungsten recoveries in small-scale laboratory tests and may not be indicative of the mineralization in the entire orebody and the Company may not be able to achieve similar results in larger scale tests under on-site conditions or during production. Large-scale continuity and character of the Company's deposits will only be determined once significant additional drilling and sampling have been completed and analyzed. Actual mineralization or formations may be different from those predicted. No assurance can be given that any part or all of Almonty's Mineral Resources constitute or will be converted into reserves. The ore grade actually recovered by the Company may also differ from the estimated grades of the mineral reserves and Mineral Resources.

Reserve and resource estimates are materially dependent on prevailing metal prices and the cost of recovering and processing minerals at the individual mine sites.

Prolonged declines in the market price of tungsten may render mineral reserves containing relatively lower grades of mineralization uneconomical to recover and could materially reduce the Company's mineral reserves. Should such reductions occur, the Company may be required to take a material write-down of its investment in mining properties, reduce the carrying value of one or more of its assets or delay or discontinue production or the development of new projects, resulting in increased net losses and reduced cash flow. The Company estimates the recoverable amount of long-lived assets and goodwill using assumptions and if the carrying value of an asset or goodwill is then determined to be greater than its actual recoverable amount, an impairment would be recognized by reducing the Company's earnings. Market price fluctuations of tungsten, as well as increased production costs or reduced recovery rates, may render mineral reserves containing relatively lower grades of mineralization uneconomical to recover and may ultimately result in a restatement of Mineral Resources. Short-term factors relating to the mineral reserve, such as the need for orderly development of ore bodies or the processing of new or different grades, the technical complexity of orebody, unusual or unexpected orebody formations, ore dilution or varying metallurgical and other ore characteristics may impair the profitability of a mine in any particular period. Failure to obtain or maintain necessary permits or government approvals, or changes to applicable tax and customs regimes or applicable legislation, could also cause the Company to reduce its mineral reserves.

Mineral resource estimates for properties that have not commenced production or at deposits that have not yet been exploited are based, in most instances, on very limited and widely spaced drill hole information, which is not necessarily indicative of conditions between and around the drill holes. Accordingly, such mineral resource estimates may require revision as more drilling information becomes available or as production experience is gained.

The estimated Mineral Resources and mineral reserves described in this prospectus should thus not be interpreted as assurances of commercial viability or potential or of the profitability of any future operations. Investors are cautioned not to place undue reliance on these estimates.

**Competition**

The mineral exploration, development and production industry is intensely competitive in all of its phases and the Company must compete in all aspects of its operations with a substantial number of large established mining companies with greater liquidity, greater access to credit and other financial resources, newer or more efficient equipment, lower-cost structures, more effective risk management policies and procedures and/or greater ability than the Company to withstand losses.

There is also a limited supply of desirable mineral properties available for claim staking, leasing, exploration or acquisition in the areas where the Company contemplates conducting activities. Many companies and individuals are engaged in the mining business and, as a result, the competition for these properties is intense. The Company may be at a competitive disadvantage in acquiring ore, talent or mining properties, as it must compete with these companies and individuals, some of which may have greater financial resources and larger technical staff than the Company or be able to leverage synergies that are not available to the Company.

The Company's competitors may be able to respond more quickly to new laws or regulations or emerging technologies or devote greater resources to the expansion of their operations, than the Company can. In addition, current and potential competitors may make strategic acquisitions or establish cooperative relationships among themselves or with third parties. Accordingly, there can be no assurance that the Company will be able to compete successfully for new mining properties.

As global efforts to reduce dependency on Chinese tungsten increase, competition among non-Chinese producers may also intensify. This could impact pricing dynamics, market share, and long-term profitability. Failure to maintain cost competitiveness or secure strategic partnerships may adversely affect the Company's market position.

**Dependence on Key Personnel and Employees**

The loss of the services of one or more of such key management personnel, including Lewis Black, the Company's Chairman, President and Chief Executive Officer, could have a material adverse effect on the Company. The Company's ability to manage its operating, development, exploration and financing activities will depend in large part on the efforts of these individuals.

The Company believes that it has been successful in recruiting the necessary personnel to meet its corporate objectives but, as the Company's business activity grows, it will require additional key financial, operational, technical, mining and management personnel, as well as additional staff on the operations side. There can be no assurance that the Company will be able to continue to attract and retain such personnel.

**Trade Risks**

Geopolitical tensions and trade disputes, particularly those affecting China, Europe, and the United States, may impact the availability and pricing of tungsten. With China accounting for a significant share of global tungsten supply, any changes in laws and regulations, export restrictions, tariffs, or sanctions could create volatility in the market and limit the Company's ability to source materials or compete effectively.

Since the inauguration of Donald J. Trump as President of the United States of America on January 20, 2025, tariffs have been announced on goods imported to the United States from a lengthy list of countries around the world, including Canada, South Korea, Spain, and Portugal. Almonty has determined that its tungsten ore, concentrates, oxide, and related materials are not subject to these tariffs. The imposition of any tariff on tungsten ore, concentrates, oxide, and related materials produced and sold by the Company and its subsidiaries may adversely affect our business, financial condition and results of operations.

The current US administration has demonstrated a willingness to rapidly and unilaterally alter trade policy, including the imposition, increase, reduction, or removal of tariffs—sometimes at extreme levels and with limited advance notice. This highly dynamic and often unpredictable approach to trade regulation has created significant uncertainty for global markets. The imposition of these tariffs by the US administration, any retaliatory tariffs and the resulting trade disputes between the United States and certain other nations, including China, as well as the effectiveness of the United States-Mexico-Canada Agreement and significant modification or termination of the North American Free Trade Agreement, could have a material adverse effect on international trade, the United States' economy and the global economy and a multi-country trade war against the US may develop. The economic impact of tariffs or a broader trade war on the Canadian economy, the US economy and the global economy could negatively impact capital markets, commodity prices and our ability to raise funds to undertake capital expenditures. A Canada-US or a broader trade war also has the potential to adversely impact global supply chains and make supplies that are required for the conduct of the Company's activities more expensive, harder to obtain or unavailable. Scarcity in the global supply chain would likely increase the cost of supplies required generally, which could impair our ability to operate. The indirect effects of tariffs imposed by the US or by counter tariffs in response are difficult to assess, but the potential for continued tariffs represents a risk and may adversely affect our business, financial condition and results of operations. Further, the recent enactment of the One Big Beautiful Bill Act has eliminated certain tax incentives for critical minerals, including tungsten, which may adversely affect our business, financial condition and results of operation.

**Supply Chain Disruptions**

Natural resource exploration, development, processing and mining activities are dependent on the availability of mining, drilling and related equipment in the particular areas where such activities are conducted. Prolonged disruptions to the procurement of equipment, or the flow of materials, supplies and services to the Company could have an adverse impact on its operating costs, capital expenditures and construction and production schedules. These disruptions may be the result of matters outside of the Company's control or ability to mitigate, such as from natural disasters, trade disputes, imposition of tariffs, transportation disruptions, economic instability, global pandemics or other health emergencies, international sanctions, including those imposed in the context of the invasion of Ukraine 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.

**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 of water rights for any of the Company's mines, in whole or in part, or shortages of water to which the Company has established rights, could impact existing operations or prevent future exploration. Further, laws and regulations may be introduced in the jurisdictions in which the Company operates which could limit its access to sufficient water resources. Additionally, failure to manage water discharge or contamination risks could lead to environmental liabilities and reputational damage.

Any of the foregoing could have a material adverse effect on the Company's results of operations and financial performance.

**Infrastructure and Operational Risks**

The Company's operations depend on the effective maintenance and operation of its mining infrastructure, much of which, in Portugal and Spain, has been in service for many years. Aging infrastructure may result in increased maintenance costs, unexpected equipment failures, or operational disruptions. Additionally, delays or interruptions in the transportation of tungsten concentrate to global markets, whether caused by logistical bottlenecks, weather-related events, or third-party disruptions, could adversely affect operations.

**Impairment of Assets**

The Company conducts annual impairment assessments of goodwill and, at the end of each reporting period, the Company assesses whether there is any indication that long-lived assets (such as mining properties and plant and equipment) may be impaired. If an indicator of impairment exists, the recoverable amount of the asset is calculated in order to determine if any impairment loss is required. Testing for impairment involves a comparison of the recoverable amount of the cash-generating unit to its carrying value. An impairment charge is recognized for any excess of the carrying amount of the asset group or reporting unit over its recoverable amount. For example, during fiscal 2019, the Company completed the mining of the remaining ore and commenced reprocessing the tailings inventory at the Los Santos Mine. During the period in which tailings were reprocessed, the Company achieved WO<sub>3</sub> recovery rates below those previously estimated and, as a result, recorded an impairment of tailings inventory of $5.8 million, representing an adjustment to the lower of cost and net realizable value. As a result of the impairment test performed for fiscal 2019, impairments of $3.3 million and $1 million were recorded to property, plant, and equipment and mineral property acquisition and development, respectively, based on the estimated fair value fewer costs to sell off the remaining property, plant, and equipment at the Los Santos Mine. In addition, as a result of an impairment test performed for fiscal 2021, the Company also recognized an impairment reversal of $4.1 million to tailings inventory related to the Los Santos Mine, based on the estimated lower of cost and net realizable value.

The assessment for impairment is subjective and requires management to make estimates and assumptions for a number of factors including estimates of production levels, mineral reserves and Mineral Resources, operating costs and capital expenditures reflected in the Company's life-of-mine plans, as well as economic factors beyond management's control, such as tungsten prices and observable net asset value multiples. Should management's estimates and assumptions regarding these factors be incorrect, the Company may be required to realize impairment charges, which will reduce the Company's earnings. The timing and amount of such impairment charges is difficult to predict.

**Risks Related to Property Titles**

The acquisition of title to mineral properties is a very precise and time-consuming process. Although the Company has taken reasonable measures to ensure that its property titles are valid, including receiving a title opinion from South Korean counsel with respect to certain mineral rights, there is no certainty that the property titles will not be challenged or questioned. Third parties may have valid claims on underlying portions of the Company's interests, including prior unregistered liens, agreements, transfers or claims, including land claims to the lands immediately adjacent to the Company's leased lands, and title may be affected by, among other things, undetected defects. In addition, the Company may be unable to conduct its operations on one or more of its properties as currently anticipated or permitted or to enforce its rights in respect of its properties.

**Laws and Regulations**

The Company's mining and mineral processing operations, exploration activities and properties are subject to the laws and regulations of federal, provincial, territorial, state and local governments in the jurisdictions in which the Company operates and the receipt of, and compliance with, applicable permits. These laws, regulations and permits are extensive and govern prospecting, exploration, development, production, exports, taxes, labour standards, occupational health and safety, waste disposal and tailings management, toxic substances, environmental protection, mine safety, reporting of payments to governments and other matters. Compliance with such laws, regulations and permits can be extremely time consuming, and may increase the costs of planning, designing, drilling, developing, constructing, operating, managing, closing, reclaiming and rehabilitating mines and other facilities.

Parties engaged in mining operations may be required to compensate those suffering loss or damage by reason of the mining activities and may be liable for civil or criminal fines or penalties imposed for violations of applicable laws or regulations. The Company cannot give any assurances that such notices, notices received in the future or other regulatory actions will not result in material fines or require or otherwise result in the Company taking actions that have a material effect on its business, financial conditions or results of operations.

Amendments to current laws, regulations and permitting requirements, or more stringent application of existing laws, could have a material adverse effect on Almonty and cause increases in capital expenditures or production costs or reductions in levels of production at producing properties or require abandonment or delays in development of properties.

In addition, current laws and regulations are subject to change from time to time. Any change in laws and government regulations or the implementation of new regulations or the modification of existing regulations affecting the tungsten and the mining industry more generally could require significant expenditures, cause a reduction in the levels of production, or reduce demand for tungsten and other minerals and increase Almonty's costs, any of which may have a material adverse effect on Almonty's business, financial condition and results of operations. Changes in these regulations or in their application are beyond the control of Almonty and could adversely affect its operations, business and results of operations.

**Licenses and Permits**

The Company's current and anticipated future operations, including further exploration, development and production activities on the Company's properties, require permits from various national, state/provincial and local governmental authorities. The Company may not be able to obtain all necessary licenses and permits that may be required to carry out exploration, development and mining operations at their projects. In addition, the grant of required licenses and permits may be delayed for reasons outside the Company's control. Failure to obtain such licenses and permits on a timely basis, or failure to comply with the terms of any such licenses and permits that the Company does obtain, may adversely affect their respective business as the Company would be unable to legally conduct their intended exploration, development, production of a commercially viable material, processing facility construction or mining work, which may result in increased costs, delay in activities or the Company losing its interest in its mineral properties.

Mining companies must obtain numerous permits, licenses and approvals that strictly regulate environmental, health, safety, access and other matters in connection with mining. Regulatory authorities exercise considerable discretion in whether or not to issue permits, licenses and approvals and the timing of such issuances. Almonty believes it (or its subsidiaries) presently holds all necessary licenses and permits to carry on the activities at its mineral properties, and that it is presently complying in all material respects with the terms of such licenses and permits. Almonty's properties may be held in the form of permits, licences and leases and working interests in permits, licences and leases. There can be no guarantee, however, that Almonty or its subsidiaries will be able to obtain and maintain, at all times, all necessary licences and permits required in connection with its mineral properties or any exploration or development activity or to place its properties into commercial production and to operate mining facilities thereon. If Almonty or the holder of any such permit, licence or lease fails to meet the specific requirement of such permit, licence or lease, the permit, licence or lease, as applicable, may terminate or expire. There can be no assurance that any of the obligations required to maintain each permit, licence or lease will be met. The termination or expiration of such permits, licences or leases or the working interests relating to a permit, licence or lease may have a material adverse effect on Almonty's results of operations and business.

Private individuals and the public at large often possess rights to comment on and otherwise engage in the permitting, licensing and approval processes, including through intervention in the courts. Accordingly, new permits, licenses and approvals required by Almonty to fully exploit its properties may not be issued, or if issued, may not be issued in a timely fashion, or may contain requirements which restrict Almonty's ability to conduct its mining operations or to do so in a profitable manner.

There is a restoration provision of $3.161 million (December 31, 2023 - $1.205 million) with respect to the Sangdong Mine based on the amount assessed by the relevant local government authorities. Actual costs may exceed the provision amount due to unforeseen circumstances, changes in regulatory requirements, or inaccuracies in the local government authorities' initial assessment.

In addition to authorizations required in connection with its mineral properties, other mines that may be acquired by Almonty will require governmental authorizations and permits before these properties can be developed and brought into production. Access to such lands for mining purposes may be restricted by present or future legislation. Accordingly, there can be no assurance that Almonty will be able to obtain the necessary authorizations to further develop its mineral properties or other resource properties that it may acquire in the future. To the extent such authorizations are required and not obtained, Almonty may be restricted or prohibited from proceeding with planned exploration, development and production activities.

**Mining Risks and Insurance Limitations**

Almonty's exploration, development and mining operations are subject to significant risks beyond the control of management that can delay tungsten mining or delivery, or increase the cost of mining. Such risks include environmental hazards (including relating to regulated substances), industrial accidents, unusual or unexpected rock formations, changes in the regulatory environment, seismicity, cave-ins, rock bursts, rock falls, pit wall failures, flooding and ore losses (from theft or otherwise). Such risks could result in, among other things, damage to, or destruction of, mineral properties or production infrastructures and facilities, personal injury or death, environmental damage, delays in mining, monetary losses and legal liability.

Additionally, risks may arise with respect to the management of tailings and waste rock, mine closure, rehabilitation and management of closed mine sites (whether the Company operated the mine site or acquired it after operations were conducted by others). Additionally, risks may arise with respect to the management of tailings and waste rock, mine closure, rehabilitation and management of closed mine sites (whether the Company operated the mine site or acquired it after operations were conducted by others). While rare, a failure of one of the Company's large tailing storage facilities, which are effectively large dams that must be engineered, constructed and monitored to assure structural stability and avoid leakages or structural collapse, could lead to property damage, environmental harm, or pose safety risks.

In the course of exploration, development, and production of mineral properties, several risks may be encountered, particularly those involving unexpected or unusual geological or operating conditions. It is not always possible to fully insure against such risks, and Almonty may decide not to take out insurance against certain risks due to high premiums or other reasons. Should such liabilities arise, they could reduce or eliminate any future profitability and result in an increase in costs and a decline in the value of Almonty's securities.

While the Company maintains insurance coverage against various risks, including operational and environmental hazards, such coverage may not adequately protect against all potential liabilities. Certain risks, including rock bursts, slides, fires, earthquakes or other adverse environmental occurrences, industrial accidents, labour disputes, political and social instability, technical difficulties due to unusual or unexpected geological formations, failures of pit walls, shafts, head frames, and/or underground workings, flooding and periodic interruptions due to inclement or hazardous weather conditions, and geopolitical events, may not be fully insurable (if at all) or may result in coverage limits being exceeded. In these circumstances, the Company may incur significant costs that could have a material adverse effect on its financial performance and results of operations. Financial assurances may also be required with respect to closure and rehabilitation costs, may increase significantly over time and reserved amounts may not be sufficient to address actual obligations at the time of decommissioning and rehabilitation. Insurance against certain risks may not be available to Almonty at reasonable economic rates or at all. To the extent that Almonty is subject to liabilities that are not economically or otherwise insurable, the payment of such liabilities would reduce the funds available to Almonty.

**Legal Systems**

As civil law jurisdictions, South Korea, Spain, and Portugal have legal systems which are different from the common law jurisdictions of Canada, Australia, and the United States. Standard legal practices in civil law jurisdictions may result in risks such as (i) a higher degree of discretion on the part of governmental authorities; (ii) the lack of judicial or administrative guidance on interpreting applicable rules and regulations, particularly where those rules and regulations are the result of recent legislative changes or have been recently adopted; (iii) inconsistencies or conflicts between and within various laws, regulations, decrees, orders and resolutions; and (iv) relative inexperience of the judiciary and courts in such matters. In the case of foreign entities such as the Company doing business in civil law jurisdictions, effective legal redress in the courts of such jurisdictions, whether in respect of a breach of law or regulation or in an ownership dispute, may be more difficult to obtain. Additionally, legislation and regulations may be susceptible to revision or cancellation and legal redress may be uncertain or delayed. There can be no assurance that joint ventures, licenses, license applications or other legal arrangements will not be adversely affected by changes in governments, the actions of government authorities or others, or the effectiveness and enforcement of such arrangements.

**Reserve and Resource Depletion**

The Company's mineral reserves must be replaced to maintain production levels over the long-term. Mineral reserves can be replaced by expanding known ore bodies, locating new deposits or making acquisitions. Exploration is highly speculative in nature and identifying new ore bodies is difficult. The Company's exploration projects involve many risks and may be unsuccessful. Mineral exploration and development involve substantial expenses and a high degree of risk, which even a combination of experience, knowledge and careful evaluation may not be able to adequately mitigate. There is no assurance that additional commercial quantities of ore will be discovered on any of the Company's properties. There is also no assurance that, even if commercial quantities of ore are discovered, a mineral property will be brought into commercial production. The discovery of mineral deposits is dependent upon a number of factors, not the least of which is the technical skill of the exploration personnel involved. The commercial viability of a mineral deposit, once discovered, is also dependent upon a number of factors, some of which are the particular attributes of the deposit, such as size, grade and proximity to infrastructure, metal prices and government regulations, including regulations relating to royalties, allowable production, importing and exporting of minerals, and environmental protection.

In addition, assuming the discovery of a commercial ore body, depending on the type of mining operation involved, it may take a substantial amount of time from the initial phases of drilling until production is possible, during which time the economic feasibility of production may change. Substantial expenditures are required to establish proven and probable mineral reserves. As a result, there is no assurance that current or future exploration programs will be successful or that new commercially viable deposit or extensions of deposits will be discovered or developed. Depletion of mineral reserves may not be offset by discoveries or acquisitions and divestitures of assets may lead to lower mineral reserves. Reserves estimated in accordance with NI 43-101 may also decrease due to economic factors such as the use of lower metal price assumptions or increased costs assumptions. The Company's future profitability may be affected if mineral reserves are mined without adequate replacement and the Company may not be able to sustain production to or beyond the currently contemplated mine lives based on current production rates.

**Risks Related to Underground Stope Stability**

The stability of underground stopes is a critical factor in ensuring the safety and efficiency of mining operations. Stope collapses or ground failures could lead to operational delays, equipment damage, safety hazards, or loss of access to ore bodies. Factors such as unexpected geological conditions, inadequate ground support systems, or seismic activity may increase the risk of collapse. The occurrence of such events could result in significant operational disruptions and financial losses.

**Reputational Risk**

Damage to the Company's reputation can be the result of its actual or perceived actions or inactions and a variety of events and circumstances, and could result in negative publicity, whether or not true. Occurrences that may have an adverse effect on the Company's reputation include, the Company's handling of matters relating to the environment (including tailings and tailings failures), employee relations, mine safety and security and dealings with local community organizations or individuals.

The Company may not be able to resolve such matters before they become public knowledge or become the subject of legal or regulatory proceedings. The growing use of social media to generate, publish and discuss community news and issues and to connect with others has made it significantly easier, among other things, for individuals and groups to share their opinions of the Company and its activities, whether true or not. The Company does not have direct control over how it is perceived by others. In the future, certain matters may affect the Company's reputation in the view of its stakeholders. Such matters, once publicized, may negatively affect the Company's reputation. Any damage to the Company's reputation could result in, among other things, a decrease to the trading price of the Common Shares, decreased investor confidence, challenges in maintaining positive relationships with the communities in which it operates and other important stakeholders, and increased risks in obtaining permits, financing or social license for our operations, any of which could have a material adverse effect on the Company's earnings, cash flows, financial condition or results of operations.

**Geopolitical Risks in Key Operating Regions**

The Company's operations are subject to political and geopolitical risks that could adversely affect its business, financial condition, and results of operations. These risks include changes in government policies, political instability, civil unrest, trade restrictions, expropriation, and the outbreak of war or other hostilities in the regions where the Company operates, including South Korea, Spain, and Portugal and are beyond the Company's control and may adversely affect our operations. Additionally, shifts in political attitudes or changes in mining or investment policies in these regions could impact the Company's profitability and ability to meet its strategic objectives. This could include disruptions to supply chains, regulatory challenges, or increased costs. In particular, relations between the Republic of Korea and North Korea have been tense throughout Korea's modern history. The level of tension between North and South Korea has fluctuated and may increase or change abruptly because of current and future events. In recent years, there have been heightened security concerns stemming from North Korea's nuclear weapons and long-range missile programs and increased uncertainty regarding North Korea's actions, particularly considering the recent leadership change, and possible responses from the international community. Tensions have escalated on the Korean peninsula, and there can be no assurance that the level of tension will not escalate further in the future. Any further increase in tensions, which may occur, for example, if military hostilities occur or North Korea experiences a leadership or economic crisis, could have a material adverse effect on the Company's operations and the market value of its Common Shares.

Furthermore, there can be no assurance that the political and economic policies of neighbouring countries, including China, Russia and North Korea, in relation to South Korea, will not have adverse economic effects on the development of the Company's mining projects, including its ability to access power, transport (including across borders) and sell its products and access construction labour, supplies and materials.

Failure to comply strictly with applicable laws, regulations, and local practices relating to mineral rights applications and tenure could also result in substantial fines, loss, reduction, or expropriation of entitlements. While we operate in politically stable regions, the mining industry is inherently exposed to these risks, which could impact profitability or delay projects.

**Public Allegations, Regulatory Investigations or Litigation**

The Company at one time conducted exploration and mining operations in a number of jurisdictions and, as a result of such activities and operations or current or future activities and operations, may be subject to governmental or regulatory investigations and claims in or regarding those jurisdictions, including jurisdictions in which it is not currently active. A serious allegation, formal investigation by regulatory authorities or other legal claim (in each case, regardless of the ultimate decision) could have a material adverse impact on the Company, its reputation and its share price.

All industries, including the mining industry, are subject to legal claims, with and without merit. The Company has in the past and may in the future be involved in various legal proceedings. The causes of potential future litigation cannot be known and may arise from, among other things, business activities, environmental laws, volatility in stock price or failure or alleged failure to comply with disclosure obligations. The Company may be required to defend against any such public allegations, regulatory investigations or other claims that are asserted against it, or may deem it necessary or advisable to initiate legal proceedings to protect its rights. The expense and distraction of any such public allegations, regulatory investigations or other claims or proceedings, even with respect to claims that have no merit and whether or not resolved in the Company's favour, could materially and adversely affect its business, operating results, and financial condition. There may also be considerable cost and disruption in responding to allegations, investigations or claims and taking any remedial action. Further, if an investigation, claim or proceeding were resolved against the Company or if it were to settle any such dispute, the Company may be required to pay damages and costs or refrain from certain activities, any of which could have a material adverse impact on the Company's business, operating results, and financial condition.

The results of litigation cannot be predicted with certainty. While the Company is not aware of any possible legal proceeding that could have a material adverse effect on its financial position, future cash flow or results of operations of the Company. If the Company cannot resolve disputes favourably, or if there is significant reputational damage as a result of any real or frivolous claim, the Company may face increased costs or liabilities to third parties, impairment of assets, lost revenues and the Company's activities and operations, financial condition, results of operations, future prospects and share price may be adversely affected.

**Environmental and Global Climate Change Risks**

Almonty's operations are subject to numerous environmental laws and regulations, all of which can impose substantial costs and liabilities on the Company. Violations of environmental requirements or permits may result in fines, sanctions, orders to install pollution control equipment, or even suspension of operations. These regulations, often mandating standards for waste disposal, emissions, and land reclamation, can increase operational costs and complexity. Frequent amendments or new legislation may adversely affect the Company's operations, financial condition, or competitive position. The Company may face costly claims and lawsuits by authorities and third parties relating to environmental matters.

Additionally, the potential impacts of global climate change amplify many of these environmental risks. Various governments have adopted or are considering regulations to mitigate climate change. These regulations may impose stricter emission limits, carbon taxes, or other measures that could require Almonty to incur substantial additional costs. The resulting increase in expenditures for pollution control, monitoring systems, and compliance reporting could harm the Company's cost competitiveness. Inconsistent regulatory frameworks may complicate compliance efforts and impact the Company's financial performance.

Heightened public awareness of climate change may generate more intense scrutiny of Almonty's activities. Even in the absence of formal mandates, stakeholders such as investors, customers, and local communities may expect the Company to demonstrate robust sustainability practices. Failure to meet expectations or negative publicity could harm the Company's reputation, limit financing, or reduce marketability. Physical effects of climate change, such as extreme weather, changing rainfall, water shortages, or wildfires, could disrupt operations, damage equipment, and introduce safety risks. Geographical vulnerabilities at each site compound these uncertainties and may require adaptation measures. Costs for insurance, repairs, shutdowns, and slower production cycles could increase, eroding earnings and investor confidence.

These environmental and climate-related uncertainties, regulations, and compliance efforts could negatively impact the Company's production, operating results, and financial condition. Evolving environmental obligations and climate change challenges may require Almonty to revise strategies, allocate resources to compliance, and adopt new technologies. Inability to anticipate or respond to changes, obtain regulatory approvals, or maintain community support could affect Almonty's access to resources, output levels, and long-term competitiveness.

**Costs of Land Reclamation**

Reclamation is the responsibility of the mine operator and in some cases the Company is responsible for early-stage exploration reclamation. Given the Company's mix of producing, developing, and care-and-maintenance assets in multiple jurisdictions, it is difficult to determine the exact amounts which will be required to complete all land reclamation activities in connection with the properties in which the Company holds an interest. Reclamation bonds and other forms of financial assurance represent only a portion of the total amount of money that will be spent on reclamation activities over the life of a mine. Accordingly, it may be necessary to revise planned expenditures and operating plans in order to fund reclamation activities. Such revisions could be required on a site-specific basis, particularly where operational plans or mine life estimates are modified. Such costs may have a material adverse impact upon the financial condition and results of operations of the Company.

**Technological Obsolescence**

Our ability to remain competitive depends on the adoption of advanced mining and processing technologies. Failure to innovate or integrate new technologies could lead to inefficiencies, higher costs, and diminished competitiveness. The capital-intensive nature of technological upgrades poses additional financial risks, especially if investments do not yield the expected returns.

**Management of Growth**

Almonty may be subject to growth-related risks including capacity constraints and pressure on its internal systems and controls. The ability of Almonty to manage growth effectively will require it to continue to implement and improve its operational and financial systems and to expand, train and manage its employee base. The inability of Almonty to deal with this growth could have a material adverse effect on its business, operations and prospects.

**Cybersecurity and Data Protection**

The Company relies on its information technology systems, including its networks, equipment, hardware, software, telecommunications and other information technology (collectively, "**IT Systems**"), and the IT Systems of its vendors and third-party service providers, to operate its business. IT Systems are subject to an increasing threat of risks from sources including computer viruses, cyber-attacks, ransom ware, malware, security breaches, power loss, system disruptions, natural disasters, defects in design and other manipulation or improper use. These risks are evolving as IT Systems and cybersecurity attacks or breaches become more sophisticated and prevalent. These cyber-attacks are also becoming increasingly sophisticated through the use of artificial intelligence and machine learning tools and tactics and are often well-funded, including in some cases by state sponsors. These disruptions may also occur for non-malicious reasons, such as the widespread server-related outages caused by CrowdStrike's defective software update in July 2024. Any of these occurrences may result in, among other things, unauthorized access or damage to, or temporary or permanent disruption or failure of, one or more of the Company's IT Systems (collectively, "**IT Disruptions**").

The Company's operations depend on the timely maintenance, upgrade and replacement of its IT Systems, as well as expenditures to mitigate cybersecurity risks and the possibility of IT Disruptions. Increasingly, the operating and control systems at the Company's mines and projects rely on IT Systems to monitor and optimize performance, as the Company continues to adopt remotely controlled mining techniques and electrify its equipment. The Company's financial control and accounting systems depend on its IT Systems and its workforce increasingly works remotely, which has further increased the Company's reliance on its IT Systems and associated risks. Adoption of new technology that promotes operational efficiency, such as the use of artificial intelligence, fleet electrification and autonomous vehicles, may further expose the Company's IT Systems to risk. As the Company's use of IT Systems increases and evolves and cybersecurity attacks become more sophisticated or pervasive, the Company may have to incur significant costs to upgrade its IT Systems to protect against IT Disruptions. New or improved IT Systems that the Company procures may have defects, not be installed properly or not integrate with its other IT Systems.

Third-party vendors and service providers (including information technology service providers) may themselves be victims of IT Disruptions which may have an adverse consequential impact on the Company and its operations. For example, in July 2024, many companies experienced significant operational issues as a result of server-related outages caused CrowdStrike's defective software update.

The occurrence of one or more IT Disruptions could have effects, including damage to the Company's equipment, including mining equipment, production downtimes, operational delays, loss or corruption of data, compromise of confidential or otherwise protected information, delay in the delivery of supplies and services, increased health and safety risks, increases in capital expenditures, loss of production, accidental discharge of regulated materials, expensive remediation efforts, distraction of management, damage to the Company's reputation and events of non-compliance, which could lead to regulatory fines or penalties, ransom payments. Any of the foregoing could have a material adverse effect on the Company's results of operations and financial performance. There can be no assurance that the Company will not incur losses related to IT Disruptions in the future.

**Health and Pandemic Risks**

Global health crises, such as pandemics or epidemics, can disrupt the Company's operations by impacting employee availability, supply chains, and demand for end products. Restrictions on movement, mandatory quarantines, or other government-imposed measures may delay project timelines, increase costs, or limit access to critical infrastructure. Additionally, health crises could expose the Company to unforeseen liabilities or require additional expenditures to ensure workplace safety.

In addition, the actual or threatened spread of a pandemic or other health emergency globally, and responses of governments and others to such actual or threatened consequences, could also have a material adverse effect on the global economy, could negatively affect financial markets, including the price of tungsten and the trading price of the Company's shares, could adversely affect the Company's ability to raise capital, and could cause interest rate volatility and movements that could make obtaining financing or refinancing debt obligations more challenging or more expensive. If the price of tungsten declines, the Company's revenues from its operations will also decline. Any of these developments, and others, could have a material adverse effect on the Company's business and results of operations.

**Opposition to Mining**

Almonty's business may be affected by environmental activists who engage in activities intended to disrupt Almonty's business operations. As a result, there could be delays or losses in transportation and deliveries of minerals to Almonty's customers, decreased sales of Almonty's minerals and extension of time for payment of accounts receivable from Almonty's customers, which could have a material adverse effect on Almonty's business, financial condition and results of operations.

**Costs and Compliance Risks as a Result of Being a Public Company**

Legal, accounting and other expenses associated with public company reporting requirements have increased significantly in the past few years. Almonty anticipates that general and administrative costs associated with regulatory compliance will continue to increase with recently adopted or amended corporate governance requirements. The additional demands associated with being a public company may also disrupt regular operations of our business by diverting the attention of some of its senior management team away from revenue producing activities to management and administrative oversight, adversely affecting our ability to attract and complete business opportunities and increasing the difficulty in both retaining professionals and managing and growing our businesses. In addition, failure to comply with any laws or regulations applicable to us as a public company may result in legal proceedings and/or regulatory investigations, and may cause reputational damage. Any of these effects could harm our business, financial condition and results of operations.

As a public company, particularly after the Company is no longer an "emerging growth company" as defined under the JOBS Act, we will incur significant legal, accounting and other expenses that the Company did not incur prior to being listed in the United States. In addition, the Sarbanes-Oxley Act, and rules implemented by the SEC, and the NASDAQ, impose various other requirements on public companies, and the Company will need to spend time and resources to ensure compliance with reporting obligations under Canadian securities laws, Australian securities laws, as well as obligations in the United States.

**Acquisitions and Synergies**

The Company is always actively pursuing the acquisition of exploration, development and production assets consistent with its acquisition and growth strategy. From time to time, it may also acquire securities of, or other interests in, companies with respect to which it may enter into acquisitions or other transactions. Acquisition transactions involve inherent risks, including:

● accurately assessing the value, strengths, weaknesses, contingent and other liabilities and potential profitability of acquisition candidates;

● ability to achieve identified and anticipated operating and financial synergies;

● unanticipated costs;

● diversion of management attention from existing business;

● potential loss of its key employees or the key employees of any business that the Company acquires;

● unanticipated changes in business, industry or general economic conditions that affect the assumptions underlying the acquisition; and

● decline in the value of acquired properties, companies or securities.

Any one or more of these factors or other risks could cause the Company not to realize the benefits anticipated to result from the acquisition of properties or companies and could have a material adverse effect on its ability to grow and on its financial condition.

An important factor in the success of an acquisition is the ability of the acquirer's management in managing the Company's business and that of the acquired company and, if appropriate, integrating all or part of that company's business with that of the acquirer. The integration of two businesses can result in unanticipated operational problems and interruptions, expenses and liabilities, the diversion of management attention and the loss of key employees and their knowledge.

There can be no assurance that a business integration will be successful or that it will not adversely affect the business, results of operations, financial condition or operating results of the acquirer and, as a result, the price of the Company's publicly traded securities. In addition, the Company may incur charges related to the acquisition of the acquired company and related to integrating the two companies. There can be no assurance that the Company, in the case of its recent acquisitions, will not incur additional material charges in the future to reflect additional costs associated with the acquisition or that all of the benefits expected from the acquisitions will be realized.

While the Company continues to seek acquisition opportunities consistent with its acquisition and growth strategy, it cannot be certain that it will be able to identify additional suitable acquisition candidates available for sale at reasonable prices, to consummate any acquisition or to integrate any acquired business into its operations successfully. Acquisitions may involve a number of special risks, circumstances or legal liabilities. These and other risks related to acquiring and to operating acquired properties and companies could have a material adverse effect on results of operations and financial condition. In addition, to acquire properties and companies, the Company may need to use available cash, incur debt, and issue Common Shares or other securities, or a combination of any one or more of these. This could limit its flexibility to raise capital, to operate, explore and develop its properties and to make additional acquisitions, and could further dilute and decrease the trading price of the Common Shares. When evaluating an acquisition opportunity, the Company cannot be certain that it will have correctly identified and managed the risks and costs inherent in the business that it is acquiring.

While at the present time the Company has no binding agreements, it is always actively pursuing potential acquisitions. The Company can provide no assurance that any potential transaction will be successfully completed, and, if completed, that the business acquired will be successfully integrated into its operations. The Company also cannot provide any assurance that if it issues equity securities in connection with an acquisition, such issuance will not be dilutive. If the Company fails to manage its acquisition and growth strategy successfully, it could have a material adverse effect on its business, results of operations and financial condition.

**Anti-Corruption and Anti-Bribery Laws**

The Company's operations are governed by, and involve interactions with, various levels of government in numerous countries. The Company is required to comply with anti-corruption, anti-bribery and sanctions laws, including the *Corruption of Foreign Public Officials Act* (Canada), the *Criminal Code Act* and *Corporations Act* (Australia) and, following the Offering, the *United States' Foreign Corrupt Practices Act*, as well as similar laws in the countries in which the Company or its contractual counterparties conduct their business. There has been a general increase in the frequency of enforcement and the severity of penalties under such laws, resulting in greater scrutiny and punishment of companies convicted of violating these laws. The Company may be found liable for violations by not only its employees, but also by its third-party agents. Measures that the Company has adopted in attempt to mitigate these risks may not be effective in ensuring that the Company, its employees or third-party agents will comply strictly with such laws. If the Company is subject to an enforcement action or is found to be in violation of such laws, this may result in significant penalties, fines and/or sanctions imposed on the Company which could result in a material adverse effect on the Company's reputation, financial performance and results of operations. If the Company chooses to operate in additional foreign jurisdictions in the future, it may become subject to additional anti-corruption, anti-bribery and sanctions laws in such jurisdictions.

**Canada's Extractive Sector Transparency Measures Act**

The Extractive Sector Transparency Measures Act (Canada) ("**ESTMA**") requires public disclosure of certain payments to governments by companies engaged in the commercial development of minerals which are publicly listed in Canada. Mandatory annual reporting is required for extractive companies with respect to payments made to foreign and domestic governments, including aboriginal groups. ESTMA requires reporting on the payments of any taxes, royalties, fees, production entitlements, bonuses, dividends, infrastructure reporting or structuring payments to avoid reporting. If the Company becomes subject to an enforcement action or is in violation of ESTMA, this may result in significant penalties or sanctions which may also have a material adverse effect on the Company's reputation.

**Ukraine Conflict**

The conflict between Russia and Ukraine, which began in early 2022, remains ongoing and has contributed to heightened geopolitical instability and global economic uncertainty. A wide range of sanctions, trade restrictions, and other measures have been imposed on Russia by the international community, and many businesses have withdrawn from the Russian market. The continuation or potential escalation of the conflict may further disrupt global supply chains, impact commodity markets, create inflationary pressures, and affect financial markets.

While the Company does not maintain direct operations in Russia or Ukraine, it may be indirectly affected by broader economic consequences arising from the conflict, including changes in the availability and cost of materials, transportation disruptions, and potential shifts in customer demand. The extent and duration of these impacts remain uncertain.

Management has taken measures intended to support the ongoing sustainability of the Company's operations. However, given the evolving nature of the conflict and the uncertainty regarding future developments, including the potential for further sanctions, regulatory changes, or economic disruption, the conflict could adversely affect the Company's business, financial condition, and results of operations in ways that cannot currently be predicted.

**Risks Related to Almonty's Redomiciling to the United States**

As disclosed previously, Almonty announced its plans to change its jurisdiction of incorporation from Canada to the State of Delaware. There are certain risks related to such redomiciling and the arrangement pursuant to which the redomiciling will be accomplished (the "**Arrangement**").

**Disruptions to Our Business**

If the Company effects its redomiciling from Canada to the United States, we anticipate significant increases in legal, accounting and other expenses. Such redomiciling may require a significant amount of time, cost and focus from management and other employees, which may divert attention from our commercial activities. In addition to shareholder approval, such redomiciling will require approval by the NASDAQ. As a U.S. public company, we would no longer be able to take advantage of Canadian rules and would be subject to additional governance and disclosure requirements, including NASDAQ requirements and the reporting requirements of the Exchange Act and the Sarbanes-Oxley Act. If any reincorporation activities we undertake in the future fail to achieve some or all of the expected benefits therefrom, our business, results of operations and financial condition could be materially and adversely affected.

**Canadian Corporate Tax Risk**

For Canadian tax purposes, on the date of the Arrangement we will be deemed to have a year end and to have disposed of all of our property for proceeds equal to the fair market value of that property. We will also be subject to an additional corporate emigration tax imposed on the amount, if any, by which the fair market value of our property, net of certain liabilities, exceeds the paid-up capital of our issued and outstanding Common Shares.

The quantum of tax payable, if any, by the Company upon the Arrangement will depend upon a number of considerations including whether the Company reorganizes and/or winds up one or more of its subsidiaries prior to the Arrangement becoming effective, the valuation of the Company's assets, the amount of its liabilities, its shareholder composition, as well as certain Canadian tax amounts, accounts and balances of the Company, each as of the time of the Arrangement. There could be material adverse tax consequences that result from the Arrangement or the transactions completed in relation to the Arrangement in Canada. In addition, it is possible that following the Arrangement, the Canada Revenue Agency may disagree with the Company's determination of the fair market value of its properties at the relevant time and/or the Company's determination of any of its tax accounts or tax attributes. As a result, the quantum of Canadian tax payable by the Company may materially exceed the Company's estimates at that time. Any such adverse tax consequences could materially adversely affect the Company and its share price. For additional information on the Canadian federal income tax consequences of the Arrangement, see the section entitled "*Certain Canadian Federal Income Tax Considerations Related To The Arrangement*" of the management information circular of the Company dated January 31, 2025 and filed on February 4, 2025, prepared for the purposes of the special meeting of the shareholders of the Company held on February 27, 2025.

**Risks Related to the Offering and the Company's Securities**

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***The Share Consolidation may not increase the price of our Common Shares over the long-term***

On July 3, 2025, the Company effected the Share Consolidation for the reasons disclosed in the management information circular dated March 21, 2025, including with the view of ensuring the Common Shares meet the minimum stock price standards of NASDAQ. However, the effect of the Share Consolidation on the market price of our Common Shares cannot be predicted with any certainty, and we cannot assure that the Share Consolidation will accomplish this objective for any meaningful period of time, or at all. While we expect that the reduction in the number of outstanding shares of Common Shares will proportionally increase the market price of our Common Shares, we cannot assure investors that the Share Consolidation will increase the market price of our Common Shares by a multiple of any share consolidation ratio, or result in any permanent or sustained increase in the market price of our Common Shares. The market price of our Common Shares may be affected by other factors which may be unrelated to the number of shares outstanding, including our business and financial performance, general market conditions, and prospects for future success.

**Use of Proceeds**

We currently intend to allocate the anticipated net proceeds we will receive from the Offering as described under "*Use of Proceeds*" of this prospectus. However, our management will have discretion in the actual application of the net proceeds, and we may elect to allocate proceeds differently from that described in "*Use of Proceeds*" if management believes it would be in the Company's best interests to do so. Further, the application of the proceeds to various items may not necessarily enhance the value of the Offered Shares. The shareholders of the Company may not agree with the manner in which management chooses to allocate and spend the net proceeds. Our failure to apply the net proceeds as set forth under "*Use of Proceeds*", our failure to achieve our stated business objectives set forth in such section, or the failure of our management to apply these funds effectively could have a material adverse effect on our business.

**Uncertainty of Gains**

An investment in the Offered Shares is speculative and may result in the loss of an investor's entire investment. An investment in the Offered Shares involves a high degree of risk and should be undertaken only by investors whose financial resources are sufficient to enable them to assume such risks and who have no need for immediate liquidity in their investment. Only potential investors who are experienced in high-risk investments and who can afford to lose their entire investment should consider an investment in the Company.

**Offering Closing Conditions**

The completion of the Offering and the listing on the NASDAQ remain subject to the completion of definitive binding documentation and satisfaction of a number of conditions, including receipt of regulatory approvals. There can be no certainty that the Offering and the listing on the NASDAQ will be completed.

**Volatility of Trading Price of the Common Shares**

The trading price of the Common Shares has in the past and will likely continue to fluctuate for several reasons such as production and/or exploration results or operating results and cash flow, exchange rates, available financing, lack of liquidity and several other factors. It is possible that the price of a Common Share may experience significant fluctuations and that such price might be less than the actual price paid by an investor. In addition, publicly quoted securities are subject to a relatively high degree of price volatility. It should be expected that continued fluctuations in price will occur, and no assurances can be made as to whether the price per share will increase or decrease in the future. In recent years, the securities markets in the United States, Canada and Australia have experienced a high level of price and volume volatility, and the market price of many companies have experienced wide fluctuations in price which have not necessarily been related to the operating performance, underlying asset values or prospects of such companies. The factors influencing such volatility include pandemics, events affecting economic circumstances in Canada, the United States, Australia and elsewhere, including inflation, war or other territorial disputes, trends in the mining industry and the markets in which the Company operates, purchases or sales of large blocks of Common Shares or securities convertible into or exchangeable for the Common Shares, and market perceptions of the attractiveness of particular industries. The price of the Common Shares is also likely to be significantly affected by short-term changes in prices for tungsten and other metals and commodities, currency exchange fluctuations and the Company's financial condition or results of operations as reflected in its earnings reports. Other factors unrelated to the performance of the Company that may have an effect on the price of the Common Shares include the following: the extent of analyst coverage available to investors concerning the business of the Company may be limited if investment banks with research capabilities do not follow the Company's securities; lessening in trading volume and general market interest in the Company's securities may affect an investor's ability to trade significant numbers of securities of the Company; the size of the Company's public float may limit the ability of some institutions to invest in the Company's securities; and a substantial decline in the price of the securities of the Company that persists for a significant period of time could cause the Company's securities to be delisted from an exchange on which they are traded, further reducing market liquidity.

Securities class-action litigation often has been brought against companies following periods of volatility in the market price of their securities. The Company may in the future be the target of similar litigation. Securities litigation could result in substantial costs and damages and divert management's attention and resources.

**Dilution to the Company's Shareholders**

The Company may sell equity securities in public offerings (including through the sale of securities convertible into equity securities) and may issue additional equity securities to finance operations, exploration, development, project construction, acquisitions or other projects. The Company cannot predict the size of future issuances of equity securities or the size and terms of future issuances of debt instruments or other securities convertible into equity securities or the effect, if any, that future issuances and sales of the Company's securities will have on the market price of the Common Shares. Any transaction involving the issuance of previously authorized but unissued Common Shares, or securities convertible into Common Shares, would result in dilution, possibly substantial, to security holders. Exercises of presently outstanding convertible securities of the Company may also result in dilution to security holders. See "*Consolidated Capitalization*".

The board of directors of the Company (the "**Board**") has the authority to authorize certain offers and sales of additional securities without the vote of, or prior notice to, shareholders. Based on the need for additional capital to fund expected expenditures and growth, the Company may issue additional securities to provide such capital. Such additional issuances may involve the issuance of a significant number of Common Shares at prices less than the current market price for the Common Shares.

Sales of substantial amounts of the Company's securities, or the availability of such securities for sale, could adversely affect the prevailing market prices for the Company's securities and dilute investors' earnings per share. A decline in the market prices of Company's securities could impair the Company's ability to raise additional capital through the sale of securities should the Company desire to do so.

**Liquidity of the Market for the Common Shares**

Shareholders of the Company may be unable to sell significant quantities of Common Shares into the public trading markets without a significant reduction in the price of their Common Shares, or at all. There can be no assurance that there will be sufficient liquidity of the Common Shares on the trading market, and that the Company will continue to meet the listing requirements of the TSX and ASX, or the trading requirements of the FSE, or achieve listing on any other public listing exchange, including the NASDAQ.

**Securities or Industry Analysts' Research**

The trading market for the Common Shares will depend, in part, on the research and reports that securities or industry analysts publish about us or our business. If one or more of the analysts who cover the Company downgrade our Common Shares or publish inaccurate or unfavourable research about its business, the Common Shares price would likely decline. In addition, if the operating results fail to meet the forecast of analysts, the Common Shares price would likely decline. If one or more of these analysts cease coverage of the Company or fail to publish reports on regularly, demand for the Common Shares could decrease, which might cause the Common Shares price and trading volume to decline.

**Treatment as an "Emerging Growth Company"**

We are an "emerging growth company," as defined in the JOBS Act. For as long as we continue to be an emerging growth company, we may take advantage of exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies, including, but not limited to, (1) not being required to comply with the auditor attestation requirements of Section 404 of the United States Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act, (2) reduced disclosure obligations regarding executive compensation in this prospectus and our periodic reports and proxy statements, as applicable, and (3) exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.

We could be an emerging growth company for up to five years, although circumstances could cause us to lose that status earlier, including if the market value of our Common Shares held by non-affiliates exceeds US$700 million as of any June 30 before that time or if we have total annual gross revenue of US$1.235 billion or more during any fiscal year before that time, in which cases we would no longer be an emerging growth company as of the following December 31 or, if we issue more than US$1.0 billion in non-convertible debt during any three-year period before that time, we would cease to be an emerging growth company immediately. Even after we no longer qualify as an emerging growth company, we may still qualify as a "smaller reporting company" which would allow us to take advantage of many of the same exemptions from disclosure requirements, including not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act and reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, as applicable. We cannot predict if investors will find our Common Shares less attractive because we may rely on these exemptions. If some investors find our Common Shares less attractive as a result, there may be a less active trading market for our Common Shares and our share price may be more volatile.

**Location of the Company, Certain Directors and Officers and the Material Assets**

Substantially all of the Company's assets are located outside of the United States and the Company does not currently maintain a permanent place of business within the United States. In addition, most of the directors and officers are nationals and/or residents of countries other than the United States, and all or a substantial portion of such persons' assets are located outside the United States. As a result, it may be difficult for U.S. litigants to effect service of process or enforce any judgments obtained against the Company or its officers or directors, including judgments predicated upon the civil liability provisions of the securities laws of the United States or any state thereof. In addition, there is uncertainty as to whether the courts of Canada and other jurisdictions would recognize or enforce judgments of United States courts obtained against the Company or its directors and officers predicated upon the civil liability provisions of the securities laws of the United States or any state thereof, or be competent to hear original actions brought in Canada or other jurisdictions against the Company or its directors and officers predicated upon the securities laws of the United States or any state thereof.

**Payment of Dividends**

The Company has not paid any dividends on its Common Shares to date, nor does it contemplate a declaration of payment of dividends until its operations generate sufficient excess cash flow for distribution as it anticipates that it will reinvest the majority of, if not all, future earnings, if any, in the development and growth of its business. Therefore, investors may not receive any funds unless they sell their Common Shares, and investors may be unable to sell their Common Shares on favourable terms or at all. The Company cannot give any assurance of a positive return on investment or that investors will not lose the entire amount of their investment in Common Shares. Prospective investors seeking or needing dividend income or liquidity are discouraged from purchasing Common Shares.

**Treatment as a "Passive Foreign Investment Company" ("PFIC")**

Although the Company has not made a determination in this regard, U.S. investors should be aware that they could be subject to certain adverse U.S. federal income tax consequences in the event that the Company is classified as a PFIC within the meaning of Section 1297 of the United States Internal Revenue Code of 1986, as amended for any year during a U.S. holder's holding period. The determination of whether the Company is a PFIC for a taxable year depends, in part, on the application of complex U.S. federal income tax rules, which are subject to differing interpretations, and the determination will depend on the composition of the Company's income, expenses and assets from time to time and the nature of the activities performed by the Company's officers and employees. In addition, there is limited authority on the application of the relevant PFIC rules to entities such as the Company. Accordingly, even if the Company made a determination regarding its PFIC status, there can be no assurance that the Internal Revenue Service would not challenge the Company's determination. In addition, whether any corporation will be a PFIC for any tax year depends on its assets and income over the course of such tax year, and, as a result, the Company's PFIC status for its current tax year and any future tax year cannot be predicted with certainty. The U.S. Treasury Department has not issued specific guidance on how the income and assets of a non-U.S. corporation such as the Company will be treated under the PFIC rules. Prospective investors should consult their own tax advisers regarding the likelihood and consequences of the Company being treated as a PFIC for U.S. federal income tax purposes, including the advisability of making certain elections that may mitigate certain possible adverse U.S. federal income tax consequences but may result in the recognition of taxable income without receipt of distributions from the Company.

**INDUSTRY OVERVIEW**

Almonty operates within the tungsten mining industry, a sector critical to various high-tech and industrial applications.

Tungsten is a versatile and essential metal used in a wide range of applications due to its unique properties, including its high melting point, density, and extreme hardness, making it critical in applications where high heat resistance, durability, and weight are required, including military technology, aerospace, semiconductors, construction, and advanced industrial manufacturing.

The following list outlines potential end uses, the factors that drive them, and their growth potential.

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| ⮚ | **Defense.** Rising military tensions are driving increased demand for tungsten in next-generation defense systems. Tungsten's extreme hardness, density, and high melting point make it critical for various military applications, including armor-piercing ammunition, missile components, radiation shielding, and hypersonic weapons. Tungsten alloys are preferred for kinetic energy penetrators and armor-piercing munitions due to their ability to penetrate heavy armor effectively. Tungsten is thus widely used in M1 Abrams tank armor, and 155mm shells, and high-density tungsten shielding is essential in protecting onboard electronics from radiation and kinetic impact (The International Institute for Strategic Studies, "*Critical Raw Materials and European Defence*", March 2025 and Office of the Under Secretary of Defense for Acquisition and Sustainment, "*Fiscal Year 2020 Industrial Capabilities",* January 2021). Additionally, tungsten is used in defense aerospace applications (U.S. Department of Defense, *"Department of Defense Makes Investment to Strengthen the Tungsten Supply Chain",* December 13, 2024). Unlike depleted uranium, tungsten armor is not highly regulated and can be exported, allowing U.S. allies to receive tanks with tungsten armor. Emerging technologies, such as hypersonic projectiles that require heat-resistant materials, will further boost tungsten demand in the defense sector. In recognition of its strategic importance, NATO has identified tungsten as one of 12 defense-critical raw materials essential for the production of advanced defense systems and equipment. This designation, part of NATO's 2024 Defence-Critical Supply Chain Security Roadmap, emphasizes the necessity of securing a stable supply of tungsten to maintain technological superiority and operational readiness among member states (North Atlantic Treaty Organization, "*Defence Supply Chain Security Roadmap*", July 2024). Recent industry reports further support the growing role of defense procurement in driving tungsten demand. Global tungsten demand volume is projected to grow at a CAGR of 3.6% from 2025 to 2034, driven by increased demand from semiconductor, electronics and defense applications (Merchant Research & Consulting Ltd., "*Tungsten 2025: World Market Review and Forecast to 2034*," 2025 "**Merchant**"). Tungsten has transitioned from a minor input to a strategic material in defense stockpiles as military agencies respond to geopolitical instability and long-term procurement plans. |

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| ⮚ | **Electric and hybrid vehicles.** Tungsten is becoming increasingly important in the production of hybrid batteries due to its ability to enhance high energy density. The amount of tungsten incorporated into electric vehicles ("**EVs**") is expected to increase, reflecting its growing importance in the advancement of EV technology. Additionally, there is a growing focus on niobium tungsten oxide ("**NWO**") in batteries, which can reduce charge time and increase power density, further driving the demand for tungsten. Additionally, research and early-stage commercialization efforts are focusing on NWO materials as a promising advancement in battery technology. Batteries utilizing NWO as an anode material offer the potential for significantly faster charging times and higher power densities compared to traditional lithium-ion batteries (Guo, Y., Guo, C., Li, P. *et al.* "*Improving the fast-charging capability of NbWO-based Li-ion batteries*", *Nat Commun* 16, 2441 (2025)). Although commercialization of NWO-based batteries remains at an early stage, successful adoption could further increase demand for tungsten in the energy storage sector. There can be no assurance that such technologies will achieve widespread adoption, but their development highlights the growing relevance of tungsten in emerging energy solutions. |

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| ⮚ | **Semiconductor and robotics.** Tungsten hexafluoride (WF<sub>6</sub>) gas is commonly used in the production of logic chip interconnects and next-gen transistor fabrication for semiconductors, a global market that, according to the World Semiconductor Trade Statistics organisation, is expected to grow by 11.2% in 2025, with a projected market valuation of US$697 billion (World Semiconductor Trade Statistics (WSTS), "*Global Semiconductor Market Growth Projections 2024-2025*", December 3, 2024). The research and advisory firm Gartner predicts a somewhat higher growth rate of 12.6%, with global semiconductor revenue expected to hit US$705 billion (Gartner, "*Market Share Analysis: Semiconductors, Worldwide, 2024 (Preliminary)*", February 3, 2025). Furthermore, tungsten is a critical material in the production of robotic arms and other heavy machinery, and the robotics market is projected to grow by more than 9% annually (Statista Market Insights, "*Robotics – Worldwide*"). |

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| ⮚ | **Thermonuclear Energy.** Tungsten heavy alloys are emerging as critical materials for nuclear fusion reactor components due to their exceptional high-temperature resistance, structural durability, and resistance to plasma-induced damage. Research by institutions such as the SLAC National Accelerator Laboratory has demonstrated that thermomechanical processing techniques can enhance tungsten's performance by producing microstructures similar to nacre, or mother-of-pearl, improving toughness while retaining high thermal stability. Alloy formulations containing approximately 90% tungsten, 7% nickel, and 3% iron are considered optimal for reactor-facing components such as divertor plates and plasma-facing components (SLAC National Accelerator Laboratory, "*New research on tungsten unlocks potential for improving fusion materials*," March 13, 2024). |

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Almonty also has a molybdenum project with significant Inferred Mineral Resources on a separate property adjacent to the tungsten orebody at the Sangdong Mine, which presents an opportunity for Almonty in the molybdenum industry. Molybdenum has end-use applications in high-strength steel alloys, military armour, radiation shielding, aerospace systems, electrical contacts, industrial motors and reactors (International Molybdenum Association, "*Applications of Molybdenum Metal and its Alloys",* 2013*)*. End-use demand for molybdenum has reached a record high of over 400,000 tonnes in 2023-2024 (International Molybdenum Association, "*2023-2024 Annual Review*", 2024). Aerospace and defense is an important end-market, accounting for 5% of annual use in 2023, with usage growing 13% over 2022 (International Molybdenum Association, "*2023-2024 Annual Review*", 2024). There is little substitution for molybdenum in its major applications in steels and cast irons. (U.S. Geological Survey, "*Mineral commodity summaries 2025*" (ver. 1.2), March 2025, the "**Mineral Commodity Summaries**"). Despite rising demand, there are few viable suppliers outside of China, with 42% of global production based in China (Mineral Commodity Summaries).

**Global Defense Spending Trends and Implications for Tungsten Demand**

Tungsten's strategic importance has been reinforced by a significant rise in global defense spending, particularly among NATO and allied nations. In response to heightened geopolitical tensions and evolving national security priorities, major economies are accelerating investment in next-generation defense systems—many of which require tungsten-based components due to the metal's exceptional density, hardness, and heat resistance.

The United States remains the world's largest defense spender (International Institute for Strategic Studies, "*Defence Spending and Procurement Trends*", February 12, 2025). In 2023, the Department of Defense requested a budget for munitions of US$30.6 billion, an increase of 230% from the request for the 2014 fiscal budget (Under Secretary of Defense (Comptroller), "*Defense Budget Materials - FY2024*", 2023 and Under Secretary of Defense (Comptroller), "*Program Acquisition Cost by Weapon System*", 2013). The FY2024 *National Defense Authorization Act* authorized US$841.4 billion in defense expenditures (U.S. Department of Defense, "*FY 2024 Defense Budget*", December 14, 2023). The FY2025 presidential budget request proposes US$849.8 billion (U.S. Department of Defense, "*FY2024 Budget Overview*," March 2024), with an additional US$150 billion in funding approved by the House Armed Services Committee in April 2025, bringing projected annual defense spending to nearly US$1 trillion.

Germany, for example, launched a €100 billion special defense fund in 2022 to modernize the Bundeswehr (Die Bundesregierung, *"100 billion euros for a powerful Federal Armed Forces",* June 2022). In March 2025, Germany amended Articles 109 and 115 of its constitution to allow defense-related borrowing beyond the national debt limit (Schuldenbremse) (Deustcher Bunderstag, "*Budget Committee adopts amendments to the Basic Law*", March 2025). Analysts estimate this shift could increase Germany's defense expenditure to as much as 3.5% of GDP by 2027, up from 2.1% in 2024 (Financial Times, "Friedrich Merz's €1tn spending plan wins final approval from Germany's upper house", March 2025).

France enacted the Military Programming Law (*Loi de Programmation Militaire*) 2024–2030 in July 2023, allocating €413.3 billion to defense modernization initiatives. These include next-generation fighter jets, naval vessels, armored vehicles, cyber defense capabilities, and enhanced force readiness. France's defense spending totaled approximately US$61.3 billion in 2023, or 2.1% of GDP, with targets to increase to 3–3.5% of GDP over the current program horizon (Ministère des Armées, "*Présentation du budget de la Défense 2024*" July 2023).

Japan approved a record ¥8.5 trillion (approximately US$58 billion) defense budget for FY2025, with plans to increase military spending to ¥8.9 trillion (approximately US$61 billion) by 2027 (Ministry of Defense, "*Overview of FY2025 Budget*", November 2025, assumes a Yen to US$ exchange rate of 0.0069). This follows a 27.4% increase in FY2023 and a 16.5% rise in FY2024, reflecting Japan's strategic repositioning and East Asia security threats (Ministry of Defense, "*Overview of FY2023 Budget*", March 2023; Ministry of Defense, "*Overview of FY2024 Budget*", June 2024).

The United Kingdom is projected to increase its defense spending from £53.9 billion (approx. US$68.3 billion) in FY2023/24 to £59.8 billion in FY2025/26 (His Majesty's Treasury, "*Autumn Budget 2024*", October 2024). In February 2025, the UK government committed to raising defense expenditures to 2.5% of GDP by 2027, with an ambition to reach 3% in the following Parliament, subject to economic conditions (Prime Minister's Office (UK), "*Speech by Prime Minister Keir Starmer on National Security and Defence*," February 15, 2025).

On June 5, 2025, NATO Defence Ministers agreed on a new set of capability targets forming the basis of an anticipated defence investment plan, which calls for Allied nations to invest 5% of GDP in defence, including 3.5% on core defence spending and 1.5% on broader defence and security-related investment such as infrastructure and resilience (NATO, "*NATO Defence Ministers agree new capability targets to strengthen the Alliance*," June 5, 2025).

This widespread increase in military budgets is expected to bolster demand for tungsten in advanced defense systems (Merchant). Tungsten alloys are essential in hypersonic missile casings, kinetic penetrators, tank armor, aircraft counterweights, and radiation shielding in submarines and armored vehicles. As defense investment becomes a strategic priority, ensuring access to secure and reliable tungsten supply chains has emerged as a shared objective among Western governments. NATO's December 2024 Defence-Critical Supply Chain Security Roadmap formally designated tungsten as one of 12 defense-critical raw materials, further affirming its importance in national and collective security planning (North Atlantic Treaty Organization, "*Defence-Critical Supply Chain Security Roadmap*", July 2024).

**Tungsten Market Dynamics**

Since the tungsten market is characterized by its critical importance to various high-tech and industrial applications, it is deemed a critical material by the European Union, the United States, Australia, Canada, and South Korea due to its supply risks and economic value. According to the United States Geological Survey, global primary tungsten production was expected to be approximately 81,400 metric tonnes in 2024 (Mineral Commodity Summaries).

The global tungsten market is relatively small in volume but highly concentrated in supply, with China dominating over 80% of the market (Mineral Commodity Summaries). Other significant producers include Vietnam, Russia, Bolivia, and a few European countries like Portugal and Spain (U.S. Geological Survey, "*Tungsten Statistics and Information*," 2024). This concentration has led to increased market tension and supply chain vulnerabilities, particularly as geopolitical tensions rise and China limits exports of tungsten. The U.S. supply chain is especially vulnerable, as an estimated 10,400 metric tonnes of tungsten were imported into the United States in 2024, representing around 13% of global primary tungsten production of 81,400 metric tonnes (Mineral Commodity Summaries). Considering that China (82.3%), Russia (2.5%), and North Korea (2.1%) collectively control a significant majority of global supply (approximately 87%), the risk to Western procurement becomes increasingly evident (U.S. Geological Survey, "*Tungsten Statistics and Information*," 2024).

This vulnerability has been formally acknowledged by the U.S. Department of Defense, which announced in May 2024 that, beginning January 1, 2027, it will prohibit the mining, refining, and production of tungsten, tantalum, and certain magnets in Iran, Russia, North Korea, and China for military procurement purposes. The measure aims to reduce reliance on foreign adversaries and reinforce domestic and allied sourcing for defense-critical materials (Defense Federal Acquisition Regulation Supplement 252.225-7052, "*Restriction on the Acquisition of Certain Magnets, Tantalum, and Tungsten*," May 2024).

According to the European Commission's 2023 Study on the Critical Raw Materials for the EU, tungsten ranks as the raw material with the highest economic importance among all 34 materials identified as critical. This classification reflects tungsten's essential role in key EU industrial sectors, including aerospace, defense, and advanced manufacturing. The study also notes that tungsten faces a high level of supply risk due to limited global sources and high import reliance. The combination of economic significance and constrained availability underpins its continued strategic prioritization in EU raw material policy (European Commission, "*Study on the Critical Raw Materials for the EU 2023*," March 16, 2023).

Table: Economic Importance of Selected Critical Raw Materials

![](image_002.jpg)

Source: European Commission, "*Study on the Critical Raw Materials for the EU* ", 2023 (Chart prepared by Company from Annex 2, Overview of the assessment results)

Recent geopolitical developments have further tightened the tungsten market. Since December 2024, China's restrictions on "dual-use" technologies (Ministry of Commerce of the People's Republic of China, "*Notice Concerning Strengthening Controls on Exports of Relevant Dual-Use Items to the United States*", translated by the Georgetown University Center for Security and Emerging Technology, December 3, 2024), have disrupted global supply chains, particularly affecting the United States. Effective February 2025, China's Ministry of Commerce and General Administration of Customs imposed export controls on 25 rare metals, including tungsten and molybdenum, citing national security and non-proliferation considerations (General Administration of Customs of the People's Republic of China, "*Announcement No. 10 [2025] of the Ministry of Commerce and the General Administration of Customs on Announcing the Decision to Impose Export Controls on Items Related to Tungsten, Tellurium, Bismuth, Molybdenum and Indium*", February 7, 2025). These actions have exacerbated concerns about supply availability outside of China.

In Europe, anti-dumping duties on Chinese tungsten carbide imports were extended for an additional five years in 2023 to protect domestic industry (European Commission, "*Commission Implementing Regulation (EU) 2023/1618 of 8 August 2023, imposing a definitive anti-dumping duty on imports of tungsten carbide, fused tungsten carbide, and tungsten carbide simply mixed with metallic powder originating in the People's Republic of China*", Official Journal of the European Union, L 199/48, 9 August 2023).

Additional policy measures further support the drive for independent supply chains. In March 2025, the White House issued an executive order to accelerate U.S. mineral production by fast-tracking permitting processes, reducing regulatory barriers, and expanding financing programs (The White House, "*Executive Order on Immediate Measures to Increase American Mineral Production*", March 20, 2025). This was followed by a further executive order under Section 232 of the Trade Expansion Act in April 2025, directing federal agencies to assess vulnerabilities in critical mineral supply chains, reduce reliance on foreign adversaries, and strengthen domestic production capacities (The White House, "*Fact Sheet: President Donald J. Trump Ensures National Security and Economic Resilience Through Section 232 Actions on Processed Critical Minerals and Derivative Products*", April 15, 2025).

At the international level, NATO published its Defence-Critical Supply Chain Security Roadmap in December 2024, identifying tungsten as a high supply risk material essential for several military applications, including fighter aircraft, battle tanks, missiles, and submarines (The White House, "*Executive Order on Ensuring National Security and Economic Resilience Through Section 232 Actions on Processed Critical Minerals and Derivative Products*", April 15, 2025). NATO's designation further underscores the strategic significance of securing stable and reliable tungsten supplies to support allied defense capabilities.

Tungsten was formally included in the 2025 edition of the Global Critical Minerals Outlook (International Energy Agency (IEA) "*Global Critical Minerals Outlook 2025*, May 2025"), recognizing its growing strategic and economic importance to industrialized economies. The report highlights tungsten as one of the top 20 minerals most exposed to supply risks, noting its concentration of production and limited number of processing facilities outside of China. Tungsten's essential role in defense, aerospace, energy, and industrial tooling applications was a key factor in its classification. Its listing underscores increasing global efforts to secure diversified and resilient supply chains for critical raw materials amid evolving geopolitical and economic pressures.

**Tungsten Price**

The below chart indicates the average weekly spot price<sup>1</sup> of APT in Rotterdam published on the Fastmarkets MB from 2020 to July 4, 2025.

![](image_003.jpg)

Source: Fastmarkets APT Price (Rotterdam)

As of the end of the second quarter of 2025, the average weekly spot price of APT in Rotterdam reached US$462.50 per MTU, based on pricing published by Fastmarkets MB. This represents the highest level recorded in over three decades. Following a period of relative stability throughout 2023 and early 2024, prices began to rise sharply in late 2024, driven by increasing demand and mounting concerns over supply constraints. APT prices have more than doubled since early 2020, with sustained upward momentum in recent months.

<sup>1</sup> The average weekly spot price refers to the arithmetic mean of the high and low price ranges for APT published by Fastmarkets MB for Rotterdam delivery.

**Tungsten Production Overview & End-Use**

![](image_004.jpg)

Source: U.S. Geological Survey, Mineral Commodity Summaries 2025 – Tungsten

According to the U.S. Geological Survey, global tungsten mine production totaled approximately 81,400 tonnes in 2024 (Mineral Commodity Summaries). China remained the dominant producer, accounting for an estimated 67,000 tonnes, or approximately 82.3% of global output. Outside of China, notable producers included Vietnam (4.2%), Russia (2.5%), North Korea (2.1%), Bolivia (2.0%), Rwanda (1.5%), and Portugal (0.6%). Countries such as Portugal continue to contribute meaningfully to non-Chinese supply, while broader efforts to diversify global tungsten production remain ongoing.

Conflict-free regions contribute only 13% of global tungsten production today, and North America alone represents 17% of global demand (International Tungsten Industry Association (ITIA), "*Applications and Markets*", 2021 Industry Data).

![](image_005.jpg)

Source: International Tungsten Industry Association (ITIA), "*Applications and Markets*", 2021 Industry Data.

Critical raw materials play a foundational role across a broad spectrum of industrial and strategic applications. Based on recent industry data, key end markets include transport (26%) and mining and construction (26%), which together represent more than half of total demand. Other significant segments include industrial manufacturing (14%), chemical and petrochemical industries (10%), and consumer durables (9%). Notably, defense (8%), energy (6%), and medical or pharmaceutical applications (1%) account for the remainder, reflecting the diverse and increasingly strategic role of critical materials across both civilian and national security-related sectors.

A regional split based on end-use reveals China as the biggest region with 36% of global tungsten end-use. Europe (20%) and the Americas (17%) are the next biggest tungsten end-use regions, with Japan (8%), Other Asia (8%) and the Rest of the World (11%) being almost equally shared.

Source: International Tungsten Industry Association (ITIA), "*Applications and Markets*", 2021 Industry Data.

**Molybdenum Market Overview**

![](image_006.jpg)

Source: Mineral Commodity Summaries.

Estimated global molybdenum production in 2024 is approximately 260,000 tonnes. China is expected to account for 42% of this total, followed by South America (36%), the United States (13%), and the rest of the world (9%).

**Market Trends and Future Outlook**

The tungsten market is expected to experience robust growth driven by several key factors. Technological advancements are making tungsten's role in emerging technologies such as semiconductors and batteries increasingly significant. The material is essential for the production of tungsten hexafluoride (WF<sub>6</sub>) gas, used for thin film deposition in semiconductor manufacturing, and nano tungsten oxide, used in battery anode and cathode manufacturing (International Tungsten Industry Association, "*Tungsten in Integrated Circuits*", 2024; International Tungsten Industry Association, "*Tungsten Chemicals and their Applications*", 2011). Rising military tensions are also driving increased demand for tungsten in defense systems. The boom in electric and hybrid vehicles is also expected to boost tungsten demand due to its use in hybrid batteries and its emerging role in next-generation battery technologies, such as NWO, which are currently in prototype or early development stages and offer the potential for faster charging and higher power density. Tungsten's ability to enhance high energy density in batteries and improve battery durability is a key driver in this sector.

The tungsten market faces several challenges, including the high dependency on Chinese supply, lack of transparency in production practices, and geopolitical risks. However, these challenges also present opportunities for companies operating in transparent and conflict-free jurisdictions, like Almonty, which is positioning itself as a strategic supplier to the United States and other Western partners. The market's tight supply conditions and the strategic importance of tungsten in critical industries are expected to support sustained price strength over the medium to long term.

A supply deficit of tungsten is expected in the near term, with demand exceeding production by approximately 5,570 tonnes in 2025 and approximately 2,330 tonnes in 2026 ("*Technical Report on the Mineral Resources and Reserves of Sangdong Project*", 2025). Global tungsten demand volume is projected to grow at a CAGR of 3.6% from 2025 to 2034, driven by increased demand from semiconductor, electronics and defense applications (Merchant). Despite the narrowing expected supply gap, supply chain vulnerabilities and concentration risk persist and near-term demand growth for tungsten expected to outpace production (Merchant). The chart below shows the anticipated tungsten supply gap in the next decade.

Source: Merchant Research & Consulting Ltd., "*Tungsten 2025: World Market Review and Forecast to 2034*," 2025.

The Company believes that this supply gap will create an opportunity for future growth.

**OUR BUSINESS**

 

*The following description of the Company does not contain all of the information about the Company and its properties and business that you should consider before investing in the Offered Shares. You should carefully read the entire prospectus, including the sections titled "Risk Factors", as well as the documents incorporated by reference herein before making an investment decision.*

**Overview**

We are a leading producer of tungsten concentrate, primarily for the defense industry, with plans to vertically integrate into oxide production, and we hold an additional deposit of molybdenum. Tungsten's extreme hardness, density and high melting point make it critical for armor-piercing ammunition, armor shielding for military vehicles, missile components, radiation shielding and hypersonic weapons, however, global scarcity and processing difficulty makes securing conflict-free supply a challenge. With production of tungsten severely limited outside of China, Russia and North Korea, we believe the operation of our established mine in Portugal, in addition to the construction of our mine in South Korea, positions us as a key supplier for Western defense programs. With a strategic emphasis on advancing vertical integration in the tungsten supply chain, we plan to become one of the only U.S.-based tungsten producers by redomiciling from Canada to the state of Delaware, in the United States. Demand for our products is underscored by a 15-year floor-priced offtake contract with a U.S. defense contractor for our tungsten concentrate as well as a second offtake agreement for tungsten oxide, designated exclusively for U.S. defense applications. In addition, we have secured an offtake agreement with a floor price structure, with SeAH for our potential molybdenum production.

Our flagship asset, the Sangdong Mine in South Korea, is one of the world's largest tungsten deposits by Inferred Mineral Resource and provides tungsten of superior grade compared with global peers, and is in soft commissioning. Once fully operational, Sangdong is expected to produce a significant portion of the global tungsten supply outside of China, supplying to mission-critical sectors such as defense, aerospace, semiconductors and batteries. As noted above, the Sangdong Mine is supported by a 15-year, floor-priced offtake agreement with a leading U.S. defense contractor for more than 90% of Phase I production at Sangdong, securing anticipated revenue and validating strategic importance. The Company is also party to a US$75.1 million project financing facility provided by KfW, the export and project finance arm of German state-owned KfW Group, which is backed by the Federal Republic of Germany. The loan bears interest at SOFR plus 2.3% and provides for principal repayment on a quarterly basis over a 6.25-year term. Almonty also has a molybdenum project with significant Inferred Mineral Resources on a separate property adjacent to the tungsten orebody at the Sangdong Mine. This molybdenum opportunity provides access to another critical material used in aerospace alloys, energy infrastructure and nuclear defense.

We also own and operate the Panasqueira Mine**—**one of the world's longest-producing tungsten mines—which has been operating for over a century and is renowned for its high-grade, low-impurity tungsten concentrate. In addition to its production, the Panasqueira Mine serves as a vital source of technical know-how and operational expertise across our portfolio. Our Spanish assets, including the Valtreixal Mine and the Los Santos Mine, provide us with additional growth opportunities and help diversify our future supply.

Almonty's objective is to build a secure, Western-focused tungsten and molybdenum supply chain capable of displacing reliance on China and meeting the increasing needs of Western defense industries. Given our multi-decade resource visibility, access to high-grade material, our expertise in tungsten processing, our long-term offtake agreements and experienced management team, Almonty is well-positioned to become a leading strategic supplier of "conflict-free" tungsten and molybdenum for defense, aerospace semiconductor, and battery markets.

Almonty is a corporation continued under the *Canada Business Corporation Act*, and plans to effectuate a redomiciliation from Canada to the State of Delaware. See *"Our Business—Continuation to the United States"*.

**Corporate Structure**

The following illustrates the inter-corporate relationships between the Company and its subsidiaries and sets out the respective jurisdictions of existence of such subsidiaries and the percentage of their voting securities owned, controlled or directed, directly or indirectly, by the Company as at the date hereof.

![](formf-10_01.jpg)

**Production and Principal Markets**

The production of Almonty is concentrated in the Panasqueira Mine. The principal markets for the Company's tungsten concentrates are the United States of America, Western Europe and Japan. These regions represent significant portions of global tungsten consumption, driven by defense, high-tech manufacturing, aerospace and industrial tooling sectors.

**Competitive Conditions**

The Company sells tungsten concentrates at prices determined by world markets over which the Company has no influence or control. These markets are cyclical. The Company's competitive position is determined by its costs compared to those of other producers throughout the world and by the Company's ability to maintain financial strength through the tungsten concentrate price cycle despite currency fluctuations. Costs are governed principally by the location, grade and nature of the ore bodies and mineral deposits, and the Company's cost of labour, power and supplies, and, as well, by operating and management skill. Over the long term, the Company's competitive position is determined by its ability to develop economic ore bodies and replace current production. In this regard, the Company also competes with other mining companies for mineral properties.

At present, there are a limited number of competitors producing tungsten concentrates in the Western world. The world's largest producing country of tungsten concentrates is China. The Company competes specifically with other mining and industrial operations located in the Iberian Peninsula, and the European Union in general, in obtaining skilled labour and mining supplies.

Market demand for tungsten concentrate remained stable during the fourth quarter of fiscal 2023 and throughout fiscal 2024. APT pricing was relatively steady over most of fiscal 2024, with mid-market prices generally ranging between approximately US$330 and US$340 per MTU.

Near the end of fiscal 2024 and into the first quarter of fiscal 2025, APT prices increased significantly, with mid-prices rising from approximately US$330 per MTU in early January 2025 to US$360 per MTU at the end of the first quarter of 2025, based on market quotations. APT prices have shown an upward trend since the fourth quarter of 2024, reaching approximately US$462.5 per MTU as of June 2025. There can be no assurance that this pricing trend will continue in the future.

The average market price was approximately US$324 per MTU for the year ended December 31, 2023, and approximately US$329 per MTU for the year ended December 31, 2024.

Management believes that the limited quantities of spot concentrate available in the market, combined with increasing strategic demand, may support continued strength in pricing over the near to mid-term. The recent pricing environment is reflected in the renewed contracts signed at the Panasqueira Mine.

**Growth Strategy**

Almonty's objective is to build a secure, Western-focused tungsten and molybdenum supply chain capable of displacing reliance on China and meeting the escalating needs of Western industries. Given our multi-decade resource visibility, access to high-grade and recovering material, our expertise in tungsten processing, our long-term offtake agreements and experienced management team, Almonty is well-positioned to become a leading strategic supplier of "conflict-free" tungsten and molybdenum for defense, semiconductor, and battery markets. Almonty aims to expand its global relevance and meet the needs of various industries through strategic growth and ongoing resource development.

The Company's growth strategy is focused on the development of the Sangdong Mine in South Korea and the ongoing operations of the Panasqueira Mine in Portugal. Almonty has implemented a planned closure of Daytal's operations by placing the Los Santos Mine into care and maintenance in February 2020. The Company is planning to re-open the Los Santos Mine to restart production from tailings inventories in early 2026, pending completion of internal planning and certain external processes, including those related to operational readiness and regulatory matters. The project pipeline also includes the Valtreixal Mine, which is under exploration and development. Almonty also has a significant molybdenum resource on a separate property adjacent to the tungsten orebody at the Sangdong Mine. Due to distinct geological and spatial characteristics, the molybdenum and tungsten zones are considered separate, standalone projects.

The current mine and processing plant construction at the Sangdong Mine (Phase I) is expected to begin production in the second half of 2025. Once fully operational, the targeted ore throughput capacity is expected to reach around 640,000 tonnes per year. The Company expects to increase its throughput capacity up to 1.2 million tonnes through the Phase II planned expansion. This expansion is fully permitted under existing Phase I approvals, and during the development of Phase I, some components have been built which may support a higher throughput or expansion. It is expected that, subject to positive operating results from Phase I and prevailing market conditions, Phase II could be advanced as early as 2026. This would involve initiating detailed engineering and permitting activities, followed by potential construction and commissioning. If Phase II is advanced in 2026, it is expected that first ore production under Phase II could commence in 2027. The Phase II expansion is expected to unlock scale economies and support margin enhancement. Advancement to Phase II is contingent upon a formal decision point following the evaluation of Phase I performance. Any additional tungsten concentrate produced as part of the Phase II expansion could be directed to the Tungsten Oxide Facility, which the Company is currently assessing as a potential vertical integration opportunity.

Additionally, Almonty is planning an extension of the Panasqueira Mine, with the potential to extend the life of the mine and significantly increase production capacity. Key objectives of this extension include increased ore throughput and improved average head grade, while continuing to serve customers who rely on the mine's concentrate.

The Company is continuously in the process of seeking additional potential offtake partners and evaluating new opportunities to expand our commercial partnerships. As we increase our production, we expect to sign new offtake contracts with customers with favorable economics. These offtake contracts are anticipated to supply, among others, end-use customers in the defense and military sector.

**Target Operating Model**

Based on an assumed flat APT price of US$350 per MTU and incorporating contributions from current operations at the Panasqueira Mine (including the anticipated Level 4 extension), as well as Phase I of the Sangdong Mine and the potential Phase II expansion, the Company is targeting a gross margin<sup>2</sup> in the range of 50% to 60% and a net income margin<sup>3</sup> in the range of 30% to 40%. To the best of management's knowledge, these targets reflect the current development status and expected performance of the Company's operations. The Level 4 extension at Panasqueira and Phase II at the Sangdong Mine are not yet in production and remain subject to development and financing. These figures are forward-looking, based on management estimates, and subject to the assumptions and risks described under "*Cautionary Note Regarding Forward-Looking Information*" and "*Risk Factors*".

Gross margin and net income margin are supplementary financial measures as defined under National Instrument 52-112 – *Non-GAAP and Other Financial Measures Disclosures*.

**Customers and Contracts**

Our tungsten and future molybdenum products are secured under long-term, floor-priced offtake agreements with customers in national defense, aerospace, and high-technology manufacturing. We supply tungsten to metals processors and tungsten product manufacturers for defense applications, as well as for the tooling, electronics and other industrial sectors, with a diversified customer base focused across the U.S., EU and Japan. With the additional production expected from the Sangdong Mine, we have also secured offtake agreements with several blue-chip customers:

●  ***GTP*:** GTP, a subsidiary of the Plansee Group, is a major global tungsten product manufacturer and a U.S. defense contractor. The 15-year offtake agreement concluded with GTP includes a guaranteed floor price of US$183 per MTU based on an APT reference price of US$235 per MTU with no upside cap. The materials are exclusive to defense-only programs under U.S. Department of Defense ()"**DoD**") guidelines to support munitions, weapons systems and defense-grade manufacturing.

●  ***Metal-Tech*:** Metal-Tech is an Israeli metal processor. The offtake agreement concluded with Metal-Tech is exclusively intended for U.S. defense programs by TPW, a U.S. manufacturer of tungsten products, and includes a guaranteed floor price with no upside cap. We have partnered with Metal-Tech to support its DoD-compliant production systems linked to downstream defense logistics programs.

●  ***SeAH*:** SeAH is a major South Korean metal processor and a major alloy and aerospace supplier who is currently constructing a significant metals facility in Temple, Texas. Almonty's partnership with SeAH ensures access to high-purity, secure molybdenum for high-tech alloys and space/aero systems.

These agreements provide long-term revenue visibility, customer concentration among defense groups, and strategic partnerships. You will find below a non-exhaustive summary of the material agreements to which Almonty is a party, including the agreements with the customers described above.

Almonty, along with its wholly-owned indirect subsidiary, BTW, is party to a distribution agreement (the "**Distribution Agreement**") for a portion of the tungsten concentrate produced at the Panasqueira Mine. The Company has also entered into separate supply agreements with European- and Japan-based customers for the sale of tungsten concentrate produced at the Panasqueira Mine. These agreements support the Company's ongoing sales strategy and reflect continued demand across key international markets. As part of its commercial approach, the Company may prefer shorter-term agreements in order to retain flexibility and control over material flows. Meanwhile, all production not sold under the Distribution Agreement is sold to customers in Europe and North America.

<sup>2</sup> Gross margin is calculated by dividing Almonty's gross profit by its revenue for a given period.

<sup>3</sup> Net income margin is calculated by dividing Almonty's net income by its revenue for a given period.

The Amended Off-Take Agreement concluded with GTP provides for the supply of tungsten concentrate to be mined and processed at the Company's wholly-owned Sangdong Mine in South Korea. Under this agreement, once financial close occurs and is confirmed in writing, the term begins and will continue for fifteen years from the date of first delivery of the material, unless extended to accommodate the repayment of all outstanding amounts under a senior secured facility or to ensure delivery of the total contracted quantities specified in the agreement. Almonty Korea Tungsten Corporation ("**AKTC**") is the seller under the Amended Off-Take Agreement, while GTP acts as the buyer, with GTP's parent company and Almonty jointly serving as obligors. The scheelite ore to be supplied must meet certain specifications relating to tungsten trioxide content, maximum impurities, and overall quality, and the Amended Off-Take Agreement sets forth a minimum monthly delivery volume after a twelve-month ramp-up period, requiring AKTC to supply and GTP to purchase 210,000 MTUs/year, over 90% of the expected 230,000 MTUs/year production capacity of Sangdong Phase I once in commercial production. The Amended Off-Take Agreement also contains a pricing mechanism offering two main options: one, a formula tied to APT prices on published indices, and the other, a fixed price that can be mutually agreed upon for a defined period. Where market prices drop below a certain floor, GTP must pay a support premium to ensure AKTC's pricing does not fall below the baseline of US$183 per MTU of tungsten concentrate payable. This baseline corresponds to an APT reference price of US$235 per MTU.

The Company's exclusive binding offtake agreement with SeAH, provides that SeAH is committed to purchasing all molybdenum produced from the Sangdong Molybdenum Project for the life of the mine, if it ever goes into production. The agreement includes a hard floor price of US$19.00 per pound (prior to treatment charges) and no upside cap, aligning with similar mechanisms in the Company's other long-term supply agreements.

![](image_073.jpg)

Source: Fastmarkets: ferro-molybdenum 65% Mo min, in-whs Rotterdam.

Under the Company's binding offtake agreement with both TPW and Metal-Tech, TPW is committed to purchasing a minimum of 40 metric tonnes of tungsten oxide per month, exclusively for U.S. defense applications in missile, drone, and ordnance systems. Metal-Tech will convert the oxide into tungsten metal powder – in either Israel or the U.S. – with the entire processed output designated solely for TPW's defense programs. As indicated above, the agreement includes a hard floor price that is comparable to the Company's existing minimum pricing mechanisms in other long-term supply agreements.

Redacted copies of the Distribution Agreement and the Amended Off-Take Agreement are filed under Almonty's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**Material Mineral Projects**

As announced on July 3, 2025, the Company has conducted a reassessment of its mining portfolio and has concluded that, on the basis of its current strategy, including management's focus and deployment of resources on the Sangdong Mine and the expected economic importance to the Company of the production at Phase I relative to its other properties, as well as the expected timing and significant potential production increase of Phase II, the Sangdong Mine is the only mineral project on a property that is material to the Company for the purposes of NI 43-101. For further information on this and other mineral projects, see "*Mineral Projects*—*Material Mineral Project*".

The Company is also involved in the operation and development of the smaller mineral projects. For further information on these other mineral projects, see "*Mineral Projects*—*Other Mineral Projects*".

**Continuation to the United States**

On February 27, 2025, the holders of Common Shares of the Company voted in favour of changing the Company's jurisdiction of incorporation from the federal jurisdiction of Canada to the State of Delaware, such that the Company would be governed by the Delaware General Corporation Law (the "**Domestication**"). The Domestication reflects the growing importance of the United States in our strategic positioning. With its robust regulatory framework for critical minerals like tungsten and molybdenum and the evolving global economic landscape, the United States represents a compelling jurisdiction for our incorporation. The Domestication will also align Almonty's corporate structure with the location of a significant portion of our shareholder base. If the Board decides to proceed with the Domestication, the Domestication will be implemented by way of the court-approved Plan of Arrangement under the *Canada Business Corporations Act* (the "**CBCA**") as part of the Arrangement and will be effective on the date set forth in the Certificate of Conversion and Certificate of Incorporation, as filed with the Secretary of State of the State of Delaware. In addition to the issuance of the final order of the Ontario Superior Court of Justice (Commercial List) approving the Arrangement, the Arrangement is subject to the receipt of appropriate consents, approvals, and/or waivers from relevant regulatory authorities and third parties, including the CBCA Director, the TSX, the ASX and the NASDAQ. Pursuant to the resolution approved by the holders of Common Shares of the Company, the Board may, without further notice to or approval of the Company's shareholders, decide not to proceed with the Arrangement. It is notably possible that, if the Board is, among other factors, not satisfied with the anticipated Canadian tax consequences of the Arrangement, it may not proceed with the Arrangement. See *"Risk Factors—Risks Related to Almonty's Redomiciling to the United States"*.

**Recent Developments**

On July 7, 2025, the Company announced the filing by the Company of a voluntary request for trading halt on the ASX following the filing by the Company of the Technical Report (as defined hereunder) related to the Sangdong Mine to allow the preparation and filing in Australia of a version of the Technical Report compliant with the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves (2012). The voluntary trading halt only applies to CDIs traded on the ASX.

On July 3, 2025, the Company announced that, following a reassessment of its mining portfolio conducted by the Company, the Company concluded that, on the basis of its current strategy, including management's focus and the deployment of resources on the Sangdong Mine and the expected economic importance to the Company of the expected production at Phase I relative to its other properties, as well as the expected timing and significant potential production increase of Phase II, the Sangdong Mine is the only mineral project on a property that is material to the Company for the purposes of NI 43-101. In connection with the reassessment, the Company filed the Technical Report (as defined hereunder) related to the Sangdong Mine.

On July 3, 2025, Almonty effected a 1.5-to-1 consolidation of our Common Shares and it is expected that our Common Shares will commence trading on a post-consolidated basis on July 7, 2025. The Share Consolidation was approved by our shareholders on April 30, 2025 at our annual general and special meeting of shareholders. Except where otherwise noted, all information in this prospectus and the documents incorporated by reference dated on or after the date of the Share Consolidation give pro forma effect to the Share Consolidation. See "*Description of Share Capital—Share Consolidation*".

On June 30, 2025, Almonty announced that the Common Shares had been added to the S&P/TSX Global Mining Index, effective as of market open on June 23, 2025. The S&P/TSX Global Mining Index serves as a benchmark for globally traded mining companies. Management believes Almonty's inclusion in the S&P/TSX Global Mining Index reflects the Company's growing profile in the global mining sector and ongoing momentum in the tungsten industry.

On June 2, 2025, Almonty announced it had received bipartisan recognition from the U.S. House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party. The Committee acknowledged Almonty's role in supporting U.S. efforts to strengthen domestic supply chains for critical minerals, highlighting the strategic relevance of the Sangdong Mine and the Company's planned Domestication. The Committee also expressed interest in ongoing engagement and potential collaboration with Almonty to support the U.S. defense industrial base, including supply chain integration with American defense contractors and potential contributions to the U.S. National Defense Stockpile.

On May 30, 2025, Almonty announced it had appointed Alan Estevez to its Board of Directors. Mr. Estevez most recently served as the U.S. Under Secretary of Commerce for Industry and Security. Prior to this, he held senior roles within the U.S. Department of Defense, including Principal Deputy Under Secretary of Defense for Acquisition, Technology, and Logistics. Mr. Estevez brings extensive expertise in national security, defense logistics, and strategic trade matters relevant to the critical minerals sector.

On May 7, 2025, Almonty announced it had entered into a binding Off-take Agreement with TPW and Metal-Tech to supply a minimum of 40 metric tonnes of tungsten oxide per month exclusively for U.S. defense applications. Under this agreement, all tungsten oxide provided by Almonty will be processed into tungsten metal powder for use in U.S. defense production programs, including missile, drone, and ordnance systems. The agreement, which commences upon Almonty's initial production of commercially saleable tungsten oxide from the Tungsten Oxide Facility, has a three-year term with automatic annual renewals and features a hard floor price with no cap on the upside.

On April 17, 2025, Almonty announced it was invited to participate in the U.S. Critical Minerals Forum, a high-level initiative funded by the Defense Advanced Research Projects Agency (DARPA). The Forum brings together key stakeholders from industry, academia, and government to support the development of secure and sustainable supply chains for critical materials. Almonty's participation reflects its role in the responsible sourcing and production of tungsten, a mineral identified as critical to U.S. national defense and innovation objectives.

On April 4, 2025, Almonty confirmed that, based on current information, the recent Executive Order issued by the United States government concerning reciprocal tariffs on specific goods does not impact its tungsten products. Almonty's tungsten ore, concentrates, oxides, and related materials, classified under HTS codes 2611.00.30, 2611.00.60, and 2825.90.30, are specifically excluded from the new tariff measures. The Company believes that this exemption reinforces the strategic importance of tungsten within critical mineral supply chains and supports the stability of Almonty's access to U.S. markets.

On March 20, 2025, Almonty announced it had appointed General Gustave F. Perna (U.S. Army, Retired) to its Board of Directors. General Perna previously served as Commander of the U.S. Army Materiel Command and co-led Operation Warp Speed. His extensive experience in logistics, operational management, and defense supply chains is expected to strengthen the Company's strategic positioning within the critical materials sector, particularly in defense-related markets.

On March 18, 2025, Almonty announced it had entered into a strategic partnership with American Defense International, Inc., a leading U.S.-based government affairs and consulting firm specializing in defense and national security. Through this partnership, Almonty aims to further its engagement with U.S. government agencies and defense sector participants to support its strategic objective of becoming a preferred supplier of critical minerals, including tungsten, for national security and industrial applications.

**MANAGEMENT**

**Executive Officers, Directors and Senior Management**

The following table sets forth the name, age and position of each of our executive officers, directors and senior management as of the date of this prospectus. The business address of our executive officers and directors is our office address at 100 King Street West, Suite 5700, Toronto, Ontario, M5X 1C7.

---

| | | |
|:---|:---|:---|
| **Name** | **Residence** | **Position** |
| Lewis Black | New York, USA | Chairman, President, Chief Executive Officer and Director |
| Mark Gelmon | Vancouver, Canada | Chief Financial Officer |
| Mark Trachuk <sup>(1)(2)</sup> | Toronto, Canada | Lead Director |
| Daniel D'Amato <sup>(2)</sup> | Paris, France | Director |
| Dr. Thomas Gutschlag <sup>(1)(2)</sup> | Mannheim, Germany | Director |
| Andrew Frazer | Dalkeith, Australia | Director |
| David Hanick <sup>(1)</sup> | Toronto, Canada | Director |
| Gustave F. Perna | Crane Hill, USA | Director |
| Alan Estevez | Bethesda, USA | Director |

---

(1) Member of the Audit
 Committee

(2) Member of the Compensation
 and Corporate Governance Committee

**Executive Officers**

 

*Lewis Black* is currently the Chairman, President and Chief Executive Officer of the Company. He is also currently a Partner of Almonty Partners LLC, a privately held company specializing in tungsten mining investments. Mr. Black previously served as Chairman and Chief Executive Officer of Primary Metals Inc., a tungsten mining company formerly listed on the TSX Venture Exchange, from 2005 to 2007. Prior to that he was head of sales and marketing for SC Mining Tungsten Thailand. Mr. Black holds a B.A. (Honours) from Manchester University and is a former Vice President of the International Tungsten Industry Association.

 

*Mark Gelmon* is the Chief Financial Officer of the Company. Prior to that, he was the Chief Financial Officer of the Company's subsidiary, Woulfe Mining Corp. ("**Woulfe**") from early 2010 until September 2015. Mr. Gelmon is a partner of iO Corporate Services Ltd, a company which provides corporate and accounting services to various publicly traded Canadian companies. Mr. Gelmon obtained his Bachelor of Arts degree at the University of British Columbia and subsequently attained his CPA, CA designation in 1995 and is a member of the Chartered Professional Accountants of B.C.

**Directors**

 

*Mark Trachuk* is General Counsel and Corporate Secretary at WildBrain Ltd. (TSX: WILD), a global leader in kids' and family entertainment. Prior to WildBrain, Mark served as counsel at Norton Rose Fulbright Canada LLP, where he practiced corporate and securities law with an emphasis on mergers, acquisitions, strategic alliances and corporate governance. Mr. Trachuk is also a former General Counsel and director of Entertainment One, Ltd. (LSE: ETO), a global entertainment studio that was a constituent member of the FTSE 250. Prior to joining Entertainment One, he was a Senior Partner in the Business Law Group at Osler, Hoskin & Harcourt LLP, a Canadian-based law firm, where he practised from 1989 to 2018. Mr. Trachuk was also previously Lead Director of Thunderbird Entertainment Inc. (TSXV: TBRD) and Chairman of the Board of Playmaker Capital Inc. (TSXV: PMKR). Mr. Trachuk holds a B.A. in Economics from Carleton University, a J.D. from the University of Ottawa and an LL.M. in Corporate Law from the London School of Economics. Mr. Trachuk also holds the ICD.D designation from the Institute of Corporate Directors through the University of Toronto – Rotman School of Management. Mr. Trachuk is called to the bar in the provinces of Ontario and British Columbia and is a qualified solicitor in England and Wales.

 

*Daniel D'Amato* is currently a Partner of Almonty Partners LLC, a privately held company specializing in tungsten mining investments. He has held this position since 2005. Mr. D'Amato previously served on the board of directors of Primary Metals Inc., a tungsten mining company formerly listed on the TSX Venture Exchange, from 2005 to 2007. He began his career on Wall Street with Bear Stearns where over nearly a decade he became Managing Director. Mr. D'Amato holds a B.Sc. from Siena College.

 

*Dr. Thomas Gutschlag* is the Chairman of Deutsche Rohstoff AG, a public company listed on the Frankfurt Stock Exchange which identifies, develops and divests attractive resource projects in North America, Australia and Europe, with a focus is on the development of oil and gas opportunities within the United States, as well as metals such as gold, copper, rare earth elements, tungsten and tin. Dr. Gutschlag co-founded Deutsche Rohstoff AG in 2006 and was its Chief Executive Officer until June 2022, and, prior thereto, its Chief Financial Officer. Dr. Gutschlag currently serves on the board of directors of Saturn Oil & Gas Inc. (TSX: SOIL, OTCQX: OILSF, FSE: SMKA), a Canadian energy company operating light oil weighted assets throughout Saskatchewan and Alberta. Dr. Gutschlag is a qualified economist with a degree in economics from the University of Heidelberg and a doctorate from the University of Mannheim.

 

*Andrew Frazer* is currently a representative of RM Corporate Finance Pty Ltd. Mr. Frazer previously held positions as a consultant at Azure Capital, a stockbroker with Hartley Poynton, Patersons Securities and Morgan Stanley. Mr. Frazer graduated from the University of Western Australia with a Bachelor of Commerce – Honours, Bachelor of Jurisprudence and a Bachelor of Laws. Mr. Frazer also obtained his CFA Charter, along with a Diploma from the Securities Institute of the Australian Securities Exchange.

 

*David Hanick* is a partner of KIN Asset Management Inc. and served as the Chief Operating Officer of Spotlight Development Inc., a real estate developer based in Toronto, Canada and specialized in mixed-use, co-op, multi-residential rental, and condominium projects, until June 2025. Mr. Hanick previously held the position of Chief Legal Officer and member of the Investment Committee at Starlight Investments, a leading global real estate investment and asset management firm. Prior to joining Starlight Investments, David was a corporate partner and co-head of the Mining and Natural Resources Group in the Toronto office of Osler, Hoskin & Harcourt LLP where he focused on public and private mergers and acquisitions as well as capital markets transactions acting for issuers, underwriters and private equity firms. He has more than 20 years of legal, capital markets, mergers and acquisitions and corporate governance expertise. Mr. Hanick has served on the board of directors of Process Fusion Inc., a software and cloud computing organization and as corporate secretary for each of Starlight Western Canada Multi-Family (No. 2) Fund, Starlight U.S. Multi-Family (No. 2) Core Plus Fund (TSXV: SCPT.A / SCPT.U) and Starlight U.S. Residential Fund (TSXV: SURF.A / SURF.U). Mr. Hanick was awarded the 2020 and 2021 Law Department Leader of the Year Excellence Award by Canada Law Awards and was a finalist for the 2021 Canadian General Counsel Awards in the Business Achievement category. Mr. Hanick is a member of the Law Society of Upper Canada and holds a joint Master of Business Administration from the Schulich School of Business and Bachelor of Laws from Osgoode Hall Law School.

 

*General Gustave F. Perna* retired from the United States Army in July 2021 as the Chief Operating Officer of Operation Warp Speed, the U.S. national initiative focused on the rapid research, development, production and distribution of vaccines and therapeutics to combat COVID-19. From 2016 to 2020, General Perna served as Commander of the U.S. Army Materiel Command (AMC), comprising over 190,000 soldiers, civilians, and contractors. General Perna has held several high-ranking positions during his military career, including serving as Deputy Chief of Staff, G-4 (SVP for Logistics) for the Department of the Army (2014–2016), Commanding General (CEO) of the Joint Munitions Command (2010–2012), and Director, J-4, United States Forces – Iraq (2009–2010), overseeing multinational logistics during Operation Iraqi Freedom/New Dawn. He also led as Commanding General (CEO) of the Defense Supply Center – Philadelphia within the Defense Logistics Agency (2008–2009). General Perna holds an Associate Degree in Business Administration from Valley Forge Military Academy and a Bachelor in business management from the University of Maryland and was awarded a master's degree in Logistics Management from the Florida Institute of Technology.

 

*Alan F. Estevez* served as Under Secretary of Commerce for Industry and Security from 2022 to 2025, overseeing U.S. export controls and implementation of national security-related trade measures. From 2013 to 2017, he held the position of Principal Deputy Under Secretary of Defense for Acquisition, Technology and Logistics, following his 2011–2013 tenure as Assistant Secretary of Defense for Logistics and Materiel Readiness—the first career civilian to hold that role. Earlier in his career, Mr. Estevez held multiple leadership roles at the U.S. Department of Defense and Army, focusing on acquisition, supply chain, and logistics operations. He later served as a national security and logistics advisor at Deloitte. Mr. Estevez holds a B.A. in Political Science from Rutgers University and an M.S. in National Resource Strategy from the National Defense University. His public service has been recognized with numerous honors, including three DoD Distinguished Public Service Medals, the Presidential Rank Award, and the Service to America Medal.

**Senior Management**

 

*Ujin Choi* is the Project Managing Director for the Sangdong Mine. He has more than 20 years of global experience in engineering and construction project management. He previously served as Corporate Representative & Chief Technical Officer at Assenagon in Germany and as Corporate Representative & Deputy Managing Director at BHP. Mr. Choi holds a B.S. in Civil Engineering from the University of Wollongong, NSW, Australia.

 

*Arif Priyambodo* is General Manager, Processing Operations – Sangdong. He brings over 28 years of international mining leadership experience, with core expertise in mine-to-mill integration. He previously served as Head of Copper Concentrator and Project Lead at the Motheo Copper Mine (Sandfire Resources, Botswana), and as General Manager of Metallurgy & Process Engineering, New Mine Development at Ma'aden Gold and Base Metals in the Kingdom of Saudi Arabia. Mr. Priyambodo holds an MBA from the Institute of Technology Bandung, Indonesia.

 

*António Corrêa de Sá* is the Chief Executive Officer of BTW, operator of the Panasqueira Mine in Portugal. He has over 50 years of experience in the mining industry, including projects involving tungsten, gold, copper, and diamonds. Mr. Corrêa de Sá previously held executive positions at Anglo American and Rio Tinto and has managed operations in Europe, Africa, and South America. He holds a degree in Geological Engineering from a Portuguese institution.

 

*Manuel de Sousa Pacheco* serves as Technical and Underground Manager at BTW, operator of the Panasqueira Mine in Portugal. He has a degree in Mining Engineering (1997) and a Master's in Mining and Geo-Environmental Engineering (2017). He is a Portuguese Mining Engineer with more than 25 years' experience in mining operations. He has worked in several quarries and mines in Portugal, Angola, and South Korea; including earlier roles with MonteAdriano.

**Corporate Governance**

**Arrangements Concerning Election of Directors; Family Relationships**

We are not a party to, and are not aware of, any voting agreements among our shareholders. There are no family relationships among our executive officers and directors.

**Composition of our Board of Directors**

Our Board is currently comprised of eight members. Our directors are elected at each annual general meeting of our shareholders and serve until the next annual meeting of shareholders or until their successors are elected or appointed, unless their positions are earlier vacated. Our articles provide that the number of directors may be between three and 10. Under the CBCA, at least 25% of our directors must be resident Canadians (unless we have less than four directors, in which case, at least one director must be a resident Canadian).

Mr. Black is currently the Chairman of the Board. Mr. Trachuk is currently the lead director of the Board.

**Director Independence**

The Board has determined that six of the eight members of the Board are "independent," as defined under the NASDAQ rules and for purposes of Canadian securities laws and therefore, a majority of the directors on our Board is independent. For purposes of the NASDAQ rules, an independent director means a person other than an executive officer or employee of the Company or any other individual having a relationship which, in the opinion of the Board, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director, subject to certain additional limitations. A director is considered to be independent for the purposes of Canadian securities laws if the director has no direct or indirect material relationship to the Company. A material relationship is a relationship that could, in the view of the Board, be reasonably expected to interfere with the exercise of a director's independent judgment. Certain individuals, such as our employees and executive officers, are deemed by Canadian securities laws to have material relationships with us.

Mr. Black is not independent of the Company by virtue of his role as Chief Executive Officer of the Company. Mr. D'Amato is not independent by virtue of the fact that he received US$180,000 ($247,482) from the Company for consulting fees for the most recently completed fiscal year ended December 31, 2024.

**Board of Directors' Charter**

The fundamental responsibility of our Board is to appoint a competent executive team and to oversee the management of our business, with a view to the best interests of the Company (including maximizing shareholder value) and ensuring corporate conduct in an ethical and legal manner through an appropriate system of corporate governance and internal control. Our Board has adopted a charter to assist it in supervising the management of our business and affairs.

**Orientation and Continuing Education**

The Nomination, Compensation and Corporate Governance Committee (the "**NCCG Committee**") is responsible for the orientation and continuing education of the Company's directors. Its charter mandates the development and annual review of programs for new director orientation and ongoing education for existing directors. For orientation, the NCCG Committee uses informal programs tailored to the new director's needs and the Board's requirements at the time. These programs ensure new directors are familiar with the Company's business, procedures, corporate structure, recent filings, financial information, governance documents, and important policies. The NCCG Committee ensures that every director has the necessary capabilities, expertise, availability, and knowledge to fulfill their role effectively.

For ongoing education, the NCCG Committee relies on professional advisors to update Board members on changes in relevant policies, laws, or regulations. Directors are expected to communicate with the Company's management and professional advisors and attend industry conferences to stay informed about developments in the Company's industry and legal and regulatory environment. Occasionally, the NCCG Committee may organize on-site tours of the Company's operations to further enhance directors' understanding.

**Ethical Business Conduct**

The Board has adopted a code of business conduct, or Code of Ethics, that applies to all of our directors, officers and employees. Copies of our Code of Ethics may be obtained upon request from our Corporate Secretary at 100 King Street West, Suite 5700, Toronto, Ontario, M5X 1C7, telephone (647) 438-9766.

A copy of our Code of Ethics has been provided to each of our directors, officers and employees, and all of our agents and representatives, including consultants. Each of our officers and directors is required to acknowledge that he or she has read such code and annually disclose any transactions or matters of potential conflict, and our other employees may be required to make similar disclosures from time to time. A copy of our Code of Ethics will be provided to each new director, officer and employee, and each such person will be required to acknowledge that he or she has read such code before commencing activities as a director, officer, or employee, as the case may be.

The NCCG Committee is responsible for conducting periodic reviews of the Code and overseeing management's monitoring of compliance. The Whistleblower Policy requires the Company's directors, executive officers, employees, consultants, and contractors to report any good faith concerns or complaints regarding potential breaches of the Code of Business Conduct, particularly those related to accounting, internal control, or auditing procedures.

We have also adopted an Insider Trading Policy which ensures compliance with securities laws related to insider trading and tipping, prevents improper trading or tipping, and assists the Company's directors, officers, and employees in fulfilling their legal obligations. It outlines general obligations and includes sanctions for non-compliance by any of the Company's directors, executive officers, employees, or consultants.

**Committees of our Board of Directors**

Our Board has established two committees: the Audit Committee and the Compensation and Corporate Governance Committee. All of our committee members are "independent," as defined under the NASDAQ rules and for purposes of Canadian securities laws, with the exception of Mr. D'Amato.

Audit Committee

Our audit committee is currently comprised of three members: Mr. Trachuk (Chairman), Dr. Gutschlag and Mr. Hanick. Each member of our audit committee is a non-employee member of our Board. We have designated Mark Trachuk as our "audit committee financial expert," as defined under Item 407 of Regulation S-K. In addition, each member of our audit committee is financially literate, as required by the NASDAQ rules and Canadian securities laws. All members of our audit committee are "independent" members of our Board, as required by the NASDAQ rules and Canadian securities laws.

Our audit committee is responsible for overseeing our financial reporting processes on behalf of our Board. Our independent auditors report directly to our audit committee. Specific responsibilities of our audit committee include, without limitation:

● identifying and monitoring the management of the principal risks that could impact the financial reporting of the Company;

● monitoring the integrity of the Company's financial reporting process and system of internal controls;

● monitoring the independence and performance of the Company's external auditors;

● dealing directly with the external auditors to approve external audit plans, other services (if any) and fees; and

● providing an avenue of communication among the external auditors, management and the Board.

Each member of the audit committee has experience reviewing financial statements and dealing with related accounting and auditing issues.

The audit committee has the sole authority to pre-approve all non-audit services provided by the independent auditor.

Nomination, Compensation and Corporate Governance Committee

Our NCCG Committee is currently comprised of three members: Mr. Trachuk (Chairman), Dr. Gutschlag and Mr. D'Amato. All of the members of the NCCG Committee are "independent" directors, as defined under the NASDAQ rules and for purposes of Canadian securities laws, other than Mr. D'Amato by virtue of $247,482 received by him in consulting fees for the most recently completed fiscal year ended December 31, 2024.

The principal responsibilities of our NCCG Committee include: (a) assisting the Board in fulfilling its oversight responsibilities in relation to executive compensation, management development and succession planning, board compensation, broadly applicable compensation and benefit programs, corporate governance principles, performance reviews of the Board, committees and directors, nominations to the Board, and structure and composition of Board committees; (b) reviewing and recommending for approval to the Board the Company and its subsidiaries' key human resources policies, compensation and benefits policy and plans, employment agreements of executive officers, and annual compensation packages for executive officers and non-executive staff; and (c) developing and reviewing annually the Company's approach to corporate governance matters, including the Code of Business Conduct, directors and officers insurance policy, management's succession plan, and the effectiveness of the Board, its committees, and individual directors.

With respect to the compensation function, the committee is responsible for all matters pertaining to the appointment, compensation, benefits and termination of members of our executive officers. The committee reviews our goals and objectives relevant to the compensation of our senior management team, as well as any annual salary, bonus, pension, severance and termination arrangements and other benefits, direct and indirect, of our executive officers, and makes recommendations to the Board and/or management, as appropriate.

Specific responsibilities of the committee relating to the compensation function include, without limitation:

● reviewing and recommending for approval to the Board the compensation and benefits policy and plans, including incentive compensation plans for the Company and its subsidiaries, ensuring they align with the Company's strategic goals and objectives;

● evaluating and recommending annual compensation packages for executive officers, together with the Chair of the Board, by assessing the performance of the Chief Executive Officer and other executive officers and recommending their annual compensation packages and performance objectives to the Board;

● determining grants of options to purchase shares of the Company under the Company's stock option plan and recommending these grants to the Board for approval; and

● reviewing the adequacy and form of compensation for directors, ensuring that it realistically reflects the responsibilities and risks involved in being a director.

The NCCG Committee also assists the Board in carrying out its responsibilities by reviewing corporate governance and nomination issues and making recommendations to the Board, as appropriate. The committee is responsible for identifying individuals qualified to become directors, recommending to the Board proposed nominees for election to the Board and overseeing the Board's overall approach to governance, board processes and leadership.

Specific responsibilities of the committee relating to the corporate governance and nominating function include, without limitation:

● developing and reviewing annually the Company's approach to corporate governance matters, including making recommendations to the Board to ensure appropriate and proper corporate governance practices are followed;

● reviewing and recommending for approval to the Board reports and disclosures concerning the Company's corporate governance practices and policies as required by applicable securities laws, rules, or guidelines;

● developing criteria for the selection of directors or appointment of executive officers and procedures to identify possible nominees or candidates, considering factors such as independence, experience, background, and regulatory requirements; and

● assessing the effectiveness of the Board as a whole, the committees of the Board, and the contribution of each individual director, making periodic reports to the Board regarding the same.

**NASDAQ Requirements**

NASDAQ Rule 5615(a)(3) permits a foreign private issuer to follow its home country practice in lieu of certain of the requirements of the Rule 5600 Series. However, a foreign private issuer that follows a home country practice in lieu of one or more provisions of the NASDAQ listing rules is required to disclose in its registration statement related to its initial public offering or first United States listing on NASDAQ, or on its website, each such requirement that it does not follow and describe the home country practice followed by the issuer in lieu of those requirements. Note, however, that if we redomicile in the United States, we will be required to follow the following NASDAQ requirements.

We do not follow the following NASDAQ requirements:

● We do not follow Rule 5605(c), Rule 5605(d) and Rule 5605(e) regarding the elements that must be included in charters for audit, compensation and nomination committees, but instead follow our home country practice.

● We do not follow Rule 5605(d)(2), but instead follow our home country practice. The NASDAQ requirement under Rule 5605(d)(2) is for each member of a compensation committee to be an independent director as defined under Rule 5605(a)(2). Mr. D'Amato is a member of the NCCG Committee and is not an independent director by virtue of $247,482 received by him in consulting fees for the most recently completed fiscal year ended December 31, 2024. The foregoing is consistent with the laws, customs, and practices in Canada.

● We do not follow Rule 5605(e), but instead follow our home country practice. The NASDAQ requirement under Rule 5605(e) is for Director nominees to either be selected, or recommended for the Board's selection, either by independent directors constituting a majority of the Board's independent directors in a vote in which only independent directors participate, or by a nominations committee comprised solely of independent directors. Mr. D'Amato is a member of the NCCG Committee and is not an independent director by virtue of $247,482 received by him in consulting fees for the most recently completed fiscal year ended December 31, 2024. The foregoing is consistent with the laws, customs, and practices in Canada.

● We do not follow Rule 5620(c), but instead follow our home country practice. The NASDAQ minimum quorum requirement under Rule 5620(c) for a meeting of shareholders is 33.33% of the outstanding Common Shares. In addition, Rule 5620(c) requires that an issuer listed on NASDAQ state its quorum requirement in its bylaws. Our bylaws indicate that at any meeting of our shareholders, two persons, being the holders of 25% of the shares entitled to vote at the meeting, present in person or represented by proxy, would constitute a quorum for the transaction of any business of the Company. The foregoing is consistent with the laws, customs, and practices in Canada. Following the Domestication, the quorum requirement be increased to 33.33% of the outstanding Common Shares as new by-laws of the Company will become effective.

**Executive Compensation**

Detailed information concerning the compensation of our executive officers and directors for the fiscal year ended December 31, 2024 is contained in pages 35 to 50 of our Management Information Circular dated March 21, 2025 and filed on March 26, 2025, prepared for the purposes of the annual general and special meeting of the shareholders of the Company held on April 30, 2025, which is incorporated by reference in this prospectus. See "*Documents Incorporated by Reference*".

**MINERAL PROJECTS**

**Material Mineral Project**

The following summarizes the general characteristics of the Sangdong Mine, which are further detailed in the Technical Report (as hereinafter defined). Scientific and technical information contained in this prospectus relating to the Sangdong Mine and the Technical Report is based upon information prepared by or under the supervision of, or approved by, the Qualified Person, and such scientific and technical information is included in this prospectus with the consent of the Qualified Person.

After reassessing its mineral projects in light of its current business strategy, the Company has determined that the Sangdong Mine is currently its only material mineral project for the purposes of NI 43-101. This mineral project is currently the main focus of the Company and the Company anticipates it will devote the majority of its resources on the development of this property in the coming years.

The Company is also involved in the operation and development of smaller mineral projects. See "*Mineral Projects*—*Other Mineral Projects*".

**Sangdong Mine**

Current Technical Report

The most recent technical report on the Sangdong Mine (the "**Technical Report**") is entitled "NI 43-101 Technical Report on the Mineral Resources and Reserves of the Sangdong Project, South Korea", dated June 23, 2025 and effective February 28, 2025, authored by Adam Wheeler, B.Sc, M.Sc, C. Eng. (the "**Qualified Person**"), a "qualified person" within the meaning of NI 43-101, and filed in accordance with NI 43-101. The Technical Report has been filed on SEDAR+ and can be accessed under the Company's profile at <u>www.sedarplus.ca</u>.

All capitalized terms and measurement abbreviations used but not otherwise defined in the summary of the Sangdong Mine below have the meanings given to them in the Technical Report. All references to tables and figures under the heading "*Sangdong Mine*" are to tables and figures in the Technical Report.

Project Description, Location and Access

The Sangdong Mine is located at Sangdong in the south-eastern Korean Peninsula, approximately 170 km east-southeast of Seoul, the capital city of South Korea, 25 km south-west of Taebaek and 55 km south-east of Wonju, in Yeongwol County, Kangwon-Do Province on the eastern side of South Korea (37°08'N latitude and 128°50'E longitude), as shown in Figures 4-1 and 4-2 below. The main adit of the Sangdong Mine is at the head of a short, south-flowing tributary of the Oktong-ch'on river. Sangdong is a small rural village with a population of approximately 600 situated 2 km to the south of the Sangdong Mine.

**Figure 4-1 – Sangdong Project Location Map**

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**Figure 4-2 – Sangdong Mine Area**

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Sangdong is easily reached by paved roads from all directions and is a 3.5-hour drive from Seoul. The Sangdong Mine is well served by the Yeondong Expressway 50 from Seoul, the Jungang Expressway 55 from Wonju, Highway 38 from Jechon to Yeongwol then Highway 31 to Sangdong. A bus journey from Dong Seoul Bus Terminal typically takes 4 hours to Taebaek. Taebaek (population of over 50,000) is located approximately 25 km to the east of Sangdong by paved road and is an established coal mining town with most modern facilities, including good accommodation facilities and some mining equipment support.

The national rail network system services the region. The train journey takes 4.5 hours to Taebaek from Seoul Station. The closest railhead is situated at Yemi, 5 km north of Sangdong.

Access throughout the Sangdong Mine area is generally very good, with sealed roads forming a network throughout the district, together with numerous unsealed farm tracks up the river valleys.

Almonty owns a 100% indirect ownership interest in the Sangdong Mine through its subsidiaries. Almonty's interest in the Sangdong Mine is held by AKTC, which owns a 100% direct interest in the Sangdong Mine. AKTC is a wholly-owned direct subsidiary of Woulfe, itself a wholly-owned direct subsidiary of Almonty.

The Sangdong Mine comprises 12 mining rights with an aggregate area of 3,173 ha, held in the name of AKTC. The mining rights areas are shown in Figure 4-3 below and details of the licenses are indicated in Table 4-1 below.

**Figure 4-3 – Sangdong Project: Mining Rights Areas**

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**Table 4-1 – Sangdong Project – Mining Rights' Details**

![](image_012.jpg)

**Note:**

\* AKTC received a 20-year extension for License No. 74978 on May 13, 2025.

The existing exploration and mining permits cover all the active exploration and mining areas encompassing the Sangdong Mine. The exploration permits provide the right to carry out all contemplated exploration activities with no additional permitting required. Exploration permits are subject to exploration rights usage fees (a fixed annual charge) and applicable taxes. The mining permits give the right to carry out full mining and mineral processing operations in conjunction with safety and environmental certificates.

Approval for installation of mining facilities (Sangdong Portal, Woulfe Portal, Taebaek Portal, Baegun Portal and nearby quartzite mine) have been issued by East Mine Registration Office of the Ministry of Trade, Industry & Energy. Environmental certificates (Temporary Forest Land Use) have been issued by the Department of Environmental Forest of Yeongwol County.

Surface rights for mining purposes are not included in the Sangdong Mine's permits, but AKTC have leased some of the land used for mining and processing plant activities by effecting payment of a purchase fee based on the appraised value of the land. The rest of the necessary lands for mining, waste disposal and processing plant activities (processing plant, offices and accommodations, etc.) were guaranteed by Yeongwol County, through written official documentation. The expiration date of the site leased from Yeongwol County is December 31, 2025, and it is expected to be extended by approximately 3 to 5 years.

South Korea has an established Mining Industry Act which defines the mining rights guaranteed by the government of South Korea.

Except for relatively small areas in the south in the main river valley and a few small areas of vegetable farms, the Sangdong Mine is on government land. On government (i.e., non-private) land, an environmental security bond must be lodged. On private land, access must be negotiated with the individual landowner(s). In the case of mining, there is no formal mediated process for land disturbance, and the purchase or lease of the surface rights would have to be negotiated with the landowner(s).

There are no royalties, overrides, back-in rights, payments or other similar agreements or encumbrances to which the Sangdong Mine is subject.

South Korea applies a 10% value-added tax ("**VAT**") on domestic sales of goods and services, including the sale of concentrates and imports. However, exports of concentrates are zero-rated for VAT purposes, meaning no VAT is charged and input VAT may be recoverable. The standard corporate income tax rate is 21%, with an additional local surtax of 10% on the national tax, resulting in a combined effective rate of approximately 23.1%. In addition, a 0.5% local resource and facility tax is levied on the value of mined minerals and paid to the local government. There is no VAT surtax on sales.

There are no significant factors or risks that might affect access or title to, or the right or ability to perform work on, the Sangdong Mine known at this time.

History

&nbsp;&nbsp;&nbsp;&nbsp;I) Earliest Operations
 (1916–1949)

Tungsten mineralization was discovered on the property comprising the Sangdong Mine in 1916 and mining took place at two locations: the Doyeop Mine and the Sungyeong Mine for several years, but then ceased. Tungsten grades at the Doyeop Mine averaged 3.3% WO<sub>3</sub> and ranged from 0.8% to 5.86% WO<sub>3</sub>. Tungsten grades at the Sungyeong Mine averaged 7.55% WO<sub>3</sub> and ranged from 2.50% to 17.12% WO<sub>3</sub>.Operations at both locations recommenced in 1933 and the main Sangdong deposit was discovered during the period 1939 to 1940. In 1941, the company Kobayashi Mining Corporation ("**Kobayashi**") bought both mines and integrated operations into the overall Sangdong Mine. The Sungyeong Mine owners, in order of succession, were Ogama Fusajiro, Kondo Shinjiro, Shibuya Yoshihide and then Kobayashi. Apart from acquiring the Doyeop Mine and the Sungyeong Mine, Kobayashi also expanded the mining rights area for the Sangdong Mine to include tungsten, bismuth and molybdenite. The smelting plant for Kobayashi was in Seoul.

The Sangdong Mine was operated during the Second World War by Sorim Resources Co. and, during the period 1946 to 1949, under the jurisdiction of the United States military government office. With the end of the Second World War in 1945, all property owned by Japanese nationals in Korea was taken over by the United States Army Military Government in Korea ("**USAMGIK**"), including Kobayashi's mines. Along with 5–6 Japanese employees, Kobayashi's president stayed for some time as an advisor to USAMGIK for tungsten mining development, but soon returned to Japan in October 1945.

In 1946, the U.S. Army restarted the tungsten mining operations for export to the United States. In 1947, Korea's tungsten ore was exported for the first time to the world market, branded with the name of the Republic of Korea. The tungsten concentrate was first exported through exchanges between the Korean and U.S. governments.

On November 1, 1947, the Sangdong Mine suffered a fire caused by an electrical leak at the processing site, which had just begun operation. The processing plant was completely burned down, which seriously hindered production. Despite that, the Sangdong Mine produced 939 tonnes of tungsten during that year. The operation of the processing site at the Sangdong Mine restarted in November 1948.

II) Korea Tungsten Mining Company Ltd. (1949–1994)

In 1948, the USAGMIK control system ended and a governance system of company presidents started, with Kim Hyun Gyung being appointed as the first president of the Korea Tungsten Mining Company.

In 1949, the Korean Tungsten Mining Company, a government agency, assumed control and operated Sangdong Mine until 1951. In 1952, the Korean Tungsten Mining Company changed its name to Korea Tungsten Mining Co. Ltd. ("**KTMC**") and resumed mining, producing tungsten and scheelite, bismuth and molybdenum concentrates. There were various disruptions with the Korean War from 1950–1951, including being occupied for some of that time by North Korea. In 1951, 639 tonnes of tungsten concentrate were produced, with a monthly production rate of approximately 10,000 tonnes of ore, at a grade of 1.2–1.7% WO<sub>3</sub>.

In 1953, mechanized equipment was installed, including slushers, loaders and mining cars. In 1954, mechanization of mine transportation started with tram operations, as well as three underground compressors. In 1957, the mining operations were downsized, going from 1,567 to 400 people at the mine site. A chemical treatment plant was started in 1959 and other significant milestones were achieved over the next 17 years.

The Sangdong Mine operated until 1994, with annual rates of production of up to 750,200 tonnes of ore. By the time of closure, the mine had been developed on 20 levels, between the elevations of 242 and 755 metres above sea level, with a cumulative length of 20 km of workings in addition to six inclines totalling 3.8 km, a ventilation incline and a 450-metre vertical shaft. The mine had tracked haulage ways.

Historical mining employed underground room and pillar methods and concentrated on four main tungsten horizons: the Upper (H1), Main (M1), Lower II (F2) and Lower III (F3) listed in stratigraphic order. Mining occurred mostly on the M1 horizon, with lesser operations on H1 and only very minor workings on F2 and F3.

Production figures over the life of the mine are not available for every year, having either been lost or having never been fully documented. During the period 1952 to 1987, annual production of tungsten concentrate varied between 994 tonnes (1955) and 3,268 tonnes (1961) and total production was 74,911 tonnes. There are indications that in the period between 1987 and 1992, mine production was limited and concentrate production was derived from toll treatment. Various quantities of APT, tungsten metal and tungsten steel were also produced.

Between 1961 and 1987, 2,930 tonnes of bismuth were recovered. Also, 2,725 tonnes of paramolybdate or molybdenum oxide were produced during the period 1967 to 1987. Gold and silver were also recovered, with maximum annual production rates of 37 kg of gold (1987) and 531 kg of silver (1974), apparently from the bismuth concentrate.

Based on tabulated data on longitudinal sections from the beginning of 1981 to the end of 1988, it is evident that the great proportion of the ore-grade mineralization was produced from the 3.5 m to 5 m thick Main horizon: 3.918 Mt. During the same period of time, about 2.041 Mt were mined from the Hangingwall (Upper) horizon in widely spaced stopes as deep as the -8 level. Data suggest that little, if any, production came from the horizon prior to that period.

From 1981 to 1988, about 88,000 tonnes of ore came from the Footwall (Lower) II horizon, mostly in the upper three levels, and 167,000 tonnes of ore from the Footwall (Lower) III horizon, also mostly in the three upper levels of the mine.

Although no statistics are available for production from the various individual horizons, it is evident from the 1989 longitudinal sections that there appear to be only pillars remaining at most levels in the core of the mine area, to at least the -15 level. Most of the remaining resources at that time were in peripheral, and probably lower grade, parts of the deposit and in the Main East orebody.

Statistics for the period from 1987 to the mine's closure in 1992 are unavailable; however, there are indications that mine production was limited and concentrate production was derived from toll treatment. Various quantities of APT, tungsten metal and tungsten steel were also produced.

In 1959, a synthetic scheelite plant began operation, improving the grade and recovery of concentrates. In 1961, a bismuth refining plant was opened, producing 99.9% bismuth metal. The following year, a plant to produce tungsten metal was commissioned and, in 1972, an APT plant was built.

Towards the end of the 1960s, it was clear to KTMC that it was become increasingly difficult to maintain the production of extremely rich (plus 1.5% WO<sub>3</sub>) grades from the Main zone, forcing them to make a number of important changes to the company's operations.

From 1974 to 1987, up to 1,182 tonnes of APT was produced annually, totalling 10,624 tonnes, but between 1978 and 1987, less than 170 tonnes of tungsten metal and steels were produced. The drop in tungsten prices in the mid-1980s caused the mine to reduce production and eventually shut down in 1992. KTMC was finally dissolved in 1998.

Mr. Jae Youl Sim (Se Woo Mining Co. Ltd. ("**Se Woo**")) acquired 23 mining rights over the Sangdong deposit in June 2001.

III) Woulfe Mining Corporation (formerly Oriental Minerals Inc.) (2006–2015)

On October 19, 2006, Oriental Minerals Inc. ("**Oriental**") entered into an agreement with Se Woo, a private company based in Seoul, Republic of Korea, whereby Oriental could earn up to 100% interest in 23 mining rights with a total area of 5,924 ha (59.24 km<sup>2</sup>).

Ownership of the 23 mining rights was transferred to Oriental, a 100%-owned Korean subsidiary of Oriental Hard Metals Korea Co., Ltd. upon closing of the transaction contemplated in the Sangdong Purchase Agreement and acceptance by the TSX Venture Exchange on January 7, 2007.

On the February 25, 2010, Oriental changed its name to Woulfe Mining Corp. Subsequently, the project area was reduced to 12 mining rights with an aggregate area of 3,173 ha. In November 2011, Woulfe gained a 100% interest in the property.

IV) Sangdong Mine Development by AKTC (2015–2024)

Almonty acquired a 100% ownership interest in Woulfe on September 11, 2015 by way of a plan of arrangement. Woulfe, through its wholly owned subsidiary, AKTC, owns a 100% interest in the Sangdong Mine.

A critical milestone in the redevelopment of the Sangdong Mine was securing adequate financing to support construction and operational activities. In 2020, Almonty achieved this by finalizing a US$75.1 million project finance loan with KfW IPEX-Bank, a German financial institution.

Following the approval of project financing in early 2020, Almonty Industries initiated a multi-year, meticulously planned construction and development program at the Sangdong Mine. The program reflects a combination of engineering precision, environmental, social and governance ("**ESG**") aligned project management and a commitment to building the largest non-Chinese source of tungsten globally. Below is a detailed breakdown of the key phases and milestones in the development of the Sangdong Mine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. 2020 – Pre-construction
 and Engineering

● January 2020: Binding commitment for project financing secured for US$75.1 million.

● February 2020: Revised 15-year offtake agreement signed, increasing minimum revenue floor to C$750 million.

● May 2020:

○ Metso Corporation ()"**Metso**") completes delivery of the basic engineering package for the crushing and grinding circuit.

○ Collaboration with the Gangwon Provincial Government and Yeongwol County formalized through a memorandum of understanding, confirming local support, infrastructure provisioning and regulatory facilitation.

● July–September 2020:

○ Backfill plant design and location finalized at 730 m elevation for gravity-based tailings pumping.

○ Long-lead items such as flotation cells and mill components specified for procurement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. 2021 – Formal
 Start of Construction

● Q1 2021: Concrete batch plant completed on site to support all civil works and underground construction.

● Q2 2021:

○ Renovation of the Sangdong town administration office into a local headquarters and community contact point.

○ Major cost optimization achieved by bundling site levelling, road building and drainage diversion.

● May 2021: Groundbreaking ceremony held at the Sangdong Mine, marking the official start of surface construction.

● Q3–Q4 2021: Preparatory works and mobilization continue; underground engineering and design for portals and haulage confirmed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. 2022 – Ramp-up
 of Equipment Procurement and Civil Works

● January–June 2022:

○ Completion of several conditions precedent for the project finance agreement.

○ Memorandum of understanding signed with Korean Mine Rehabilitation and Resource Corp. ()"**KOMIR**") and Hannae For T, Ltd for rare-metal recycling and value-add processing in South Korea.

● Q3 2022:

○ First and second disbursements received to fund civil works and equipment orders.

○ Procurement of semi-autogenous grinding mill, ball mill, protection screens, reclaim feeders and other processing equipment.

○ Basic and detailed engineering finalized for site-wide process layout and backfill plant.

● July–September 2022:

○ Drawings and schematics reviewed and approved.

○ Underground development work begins, focusing on ramp access and portal clearance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. 2023 – Structural
 Construction, Power and Underground Access

● April 2023: Fourth project finance drawdown received; cumulative investment surpasses US$32 million.

● Q2–Q3 2023:

○ Powerline upgrade completed and tied into the national grid.

○ Delivery of ball mill, flotation cells and other critical path equipment to site.

○ Installation of foundations for crushing and grinding building begins.

● July–November 2023:

○ Drawdowns 5 and 6 support above-ground construction and final procurement.

○ Delivery of flotation systems and pastefill support structures.

○ Guest accommodations and logistics base finalized to host rotating personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. 2024–2025 –
 Transition Toward Commissioning

● Q1–Q2 2024:

○ Early earthworks for processing plant commence; steel and mechanical installation begin.

○ Ore development begins underground, initially targeting stope areas validated by prior drilling campaigns.

○ Safety protocols integrated in partnership with KT Telecom, introducing artificial intelligence-based safety monitoring (Mine Safety DX).

● Q3 2024:

○ Surface infrastructure near completion; final installation of mechanical components.

○ Integration of electrical and automation systems begins.

● Q1 2025:

○ Final drawdown received in January 2025, confirming full funding allocation.

○ Substantial progress of underground mine development and advancement of processing plant construction to support production readiness.

&nbsp;&nbsp;&nbsp;&nbsp;V) Historical Resource
 Estimates

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. KTMC Historical Estimates

Two historic tungsten Mineral Resource estimates (see Table 6-3 below) were prepared for the Sangdong Mine, in 1985 and 1989. The 1985 estimate, prepared by the mine staff, contained a total of about 20 Mt at a grade of 0.5% WO<sub>3</sub>. The 1989 estimate, prepared by Korea Resources Corp., contained about 18.8 Mt at an average grade of 0.5% WO<sub>3</sub>.

The second estimate includes about 1.4 Mt attributed to the Sangdong East deposit and therefore the difference between the two estimates does not represent the tonnage mined in the interim. These were polygonal estimates and used a relative density of 2.9. Tungsten mineralization in Sangdong East is lower-grade than in the main mine area. Drillhole data indicated that the Hangingwall (Upper) horizon typically ranges from approximately 1.5–11 m in thickness and contains 0.01–0.24% WO<sub>3</sub> in grade. The partially mined Main horizon is approximately 1 m to 8.8 m in thickness and contains 0.01–0.65% WO<sub>3</sub>. Low-molybdenum, blue-fluorescent scheelite is dominant.

**Table 6-3 – Historic Resource Estimates, Sangdong Mine**

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West (W) Sangdong was estimated to contain 2.3 Mt at an average grade of 0.5% WO<sub>3</sub> but no details of the estimation process or the number of holes employed in the estimate are known. It is unknown on how many drillholes this was based, but because of the wide spacing of the drillholes (200m or more), the Mineral Resource could at best be considered Inferred under currently accepted resource evaluation methodologies.

Drill intercepts in the Main horizon varied from 0.24-0.8% WO<sub>3</sub> across 0.8–2.8m. Other intersections included 0.11–0.28% WO<sub>3</sub> across 2.3–6.8m in the Upper vein; and 0.1–3.0% WO<sub>3</sub> across 0.6–2.0 m in the Lower vein. In drill hole 86-6 in the Hwajeolchi area, a roughly 15 m interval in the Hangingwall (Upper) horizon of interlayered limestone and calc-silicate rock (about 50% each) was intersected, with one 3.5 m interval containing 0.32% WO<sub>3</sub>.

A large molybdenite-quartz vein stockwork deposit located above a granitic intrusion was identified and drilled between 1980 and 1987 (22 vertical holes; 12,390 m core drilling). Up to 1987, all Mineral Resource or Mineral Reserve estimates predate both NI 43-101 and Woulfe's involvement in the Sangdong Mine, and should not be considered to be material.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Woulfe Historical Estimates

Tetra Tech (Wardrop) (2012)

The 2012 global Mineral Resource estimate (see Table 6-4 below) estimated by Tetra Tech ("**TT**") focused on the data acquired from the 2006–2008 drilling programmes, completed by Woulfe, as well as the compilation of historical data for the upper quarter of the known dip length of the mine, i.e., the section from surface to just below the water level.

The historical drilling data used in the TT(Wardrop)/Woulfe April 2010 scoping study was not used for the 2012 estimate, meaning that any down-dip extension of the mineralized zones was not represented as a Mineral Resource. The classification conformed to the CIM Definition Standards. The Mineral Resource was split into two sections by elevation, representing the down-dip potential of the deposit below current waterline.

**Table 6-4 – Sangdong, 2012 Global Resource Estimate**

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The previous estimate in the Wardrop 2010 scoping study was made on a very different basis to the 2012 estimate, the former relying on the holes drilled underground by KTMC and on a coarse geological interpretation of the mineralized zones; the 2010 Mineral Resource was classified as Inferred.

The 2012 estimate relied entirely on the more recent drilling programmes with associated sample quality control; however, it only covered approximately the upper quarter of the known dip length of the mineralized zones, and therefore the comparison of the two estimates would be unreliable.

In order to estimate the down-dip resource potential at the Sangdong Mine (see Table 6-4 above), TT (Wardrop) completed a separate estimation of the down-dip resource using all available samples, including those samples which could not be included in the up-dip "Indicated" Mineral Resource. Due to the unreliability of the historic data described above the Mineral Resource was classified as "Inferred" but was included in order to reconcile the 2010 and 2012 estimates.

AMC Consultants Pty Ltd (2014)

Mineral Resources were estimated using a block modelling approach, with three-dimensional ("**3D**") ordinary kriging and Datamine's™ dynamic anisotropy application being employed.

Table 6-5 below shows the Mineral Resource estimate and metal content for the Sangdong Mine as of September 15, 2014. The cut-off grade of 0.4% WO<sub>3</sub> was provided by WMC and was based on an assumed mining method, production rate, metallurgical recovery and metal prices. AMC Consultants Pty Ltd ("**AMC**") reviewed these assumptions and considered that they met the requirement of reasonable prospects of eventual economic extraction. It appears that AMC used some results from the pre-2006 drilling in the Mineral Resource estimation.

**Table 6-5 – AMC 2014 Mineral Resource Estimate**

![](image_015.jpg)

Changes that occurred between the 2012 and the 2014 Mineral Resource estimates included:

● 11,348 m additional Mineral Resource definition drilling.

● Change in the estimation method from modelling the volume and geometry of mineralization using the underground development surveys (TT), to using the actual drill hole intersections (AMC).

● Change in the estimation method from assigning grades to each mineralization zone using the mineralization coding in the database (TT), to using the spatially referenced drill hole intersections in 3D to estimate grade for each mineralization zone (AMC).

● Change in the estimation method from a single mineralization grade threshold of 0.15% WO<sub>3</sub> (TT), to splitting the mineralization into three grade thresholds and estimating each independently (AMC).

● Using the interpreted faults to constrain the Mineral Resource estimate.

● Significant additional underground mapping carried out and incorporation of these data in the Mineral Resource estimate.

● Change in the definition of the Mineral Resource categories.

Table 6-6 below compares the TT 2012 estimate with the AMC 2014 estimate. Both estimates are reported at 0.15% WO<sub>3</sub> cut-off grade in this table for comparison purposes.

The following observations were made from the comparison table:

● Approximately half of the Indicated tonnes in the previous estimate were converted to Measured Mineral Resources due to the increased drilling and improved understanding of the geology gained through underground mapping.

● Measured plus Indicated tonnes increased by 12% overall, while the Inferred tonnes increased by 5% overall between the two estimates.

● The change in density is not significant.

● Measured plus Indicated grades decreased by 46%, while Inferred grades decreased by between 68% between the two estimates.

● The net result in the Measured plus Indicated categories was a decrease in the contained tungsten metal of 29%.

● The net result in the Inferred category represents a decrease in the contained tungsten metal of 59%.

AMC considered that the decrease in grades was mainly due to the previous method (TT) of creating the mineralization volumes from the underground development surveys, and then estimating grade into those volumes from the coded intersections in the database. The coding in the database is not based on a 3D interpretation but is interpreted on a drill hole-by-drill hole basis.

**Table 6-6 – Comparison of 2012 and 2014 Mineral Resource Estimates**

![](image_016.jpg)

A-Z Mining Professionals Ltd./TT (Wardrop) Feasibility Study (June 2015)

In 2014, AMC was commissioned by Woulfe to develop a resource block model completely independent of the TT geology block models. On an A-Z Mining review of the completed AMC model, A-Z Mining and Woulfe decided not to retain the AMC resource model due to the technical methodology employed.

The Feasibility Study relied on the TT 2015 updated resource block model, which included the 2013 Phase 4 drilling programme (7,200 m of additional definition drilling to significantly increase confidence in the resources).

The Indicated Mineral Resource in the TT phase 4 updated model is shown in Table 6-7 below reported at 0.15% WO<sub>3</sub> cut-off grade above 600 mrl. The resource is only reported above -3 level (600 mrl).

The TT reported resources were limited to the -3 level (594 mRL).

**Table 6-7 – Tetra Tech Sangdong Resources, June 2015**

![](image_017.jpg)

The phase 4 Mineral Resource Estimate update included changes from previous estimates, specifically the 2012 TT Feasibility Estimate:

● The hangingwall ground conditions were better understood up-dip, so a greater proportion of the hangingwall was reclassified in Inferred, rather than just the bottom 3 levels above the current waterline.

● The Halo mineralization surrounding the Footwall Zone had reduced in importance with better definition of the Footwall 2 and Footwall 3 zones from the phase 4 drilling and this is reflected in the resource categories.

● The Indicated Main and Footwall zones' Mineral Resources were largely unchanged from the previous estimate as the Phase 4 infill programme had not changed the results significantly.

The Mineral Reserves (derived from the Mineral Resource block model Measured and Indicated Mineral Resources) were identified as being economically extractable, incorporating mining loses and the addition of mining dilution, by A-Z Consultants. Measured and Indicated Mineral Resources were outlined from the -2 to Taebaek levels as almost all resources below -2 Level Mineral Resources were Inferred. The Measured and Indicated Mineral Resources were further separated into the F2/F3 and Main Zones. The resources in a 50 m surface pillar allowance were subsequently removed.

Using an average processing plant recovery of 81%, a concentrate quality of 65% WO<sub>3</sub> and revenue per tonne of concentrate of US$15,000, a cut-off grade of 0.275% WO<sub>3</sub> was determined.

Mining recoveries of 100% in primary (rock walls, floor and back) stopes and 95% in secondary stopes (backfill on both sides of stope) were assigned, based on industry norms and experience in mining in these types of conditions.

Dilution for the stopes included waste inside the stope outlines in the stopes, and backfill sloughing from primary stopes in the secondary stopes. Backfill dilution was included at 5% at a 0% WO<sub>3</sub> grade. Development ore was not separated from stoping ore in the reserves.

The Proven and Probable Mineral Reserves in the combined F2 and F3 Zones were estimated to be 3.9 Mt with a grade of 0.610% WO<sub>3</sub>. The Proven and Probable Mineral Reserves in the Main Zone were 2.0 Mt at a grade of 0.492% WO<sub>3</sub>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. AKTC Historical Estimates

The A-Z Feasibility Study was updated during 2015, with a NI 43-101 technical report produced by the Qualified Person in December 2015. At a 0.15% WO<sub>3</sub> cut-off grade, Indicated Mineral Resources of 5.18 Mt were reported, along with Inferred Mineral Resources of 52.8 Mt. Mineral Reserves were determined of 4.7 Mt, at a grade of 0.42% WO<sub>3</sub>.

The Qualified Person produced an updated NI 43-101 technical report for the end of July 2016. At a 0.15% WO<sub>3</sub> cutoff grade, Indicated Mineral Resources of 8.0 Mt were reported, at a grade of 0.51% WO<sub>3</sub>, along with Inferred Mineral Resources of 50.7 Mt, at a grade of 0.43% WO<sub>3</sub>. Mineral Reserves were determined of 7.9 Mt, at a grade of 0.45% WO<sub>3</sub>.

The Qualified Person produced a Mineral Resources-only NI 43-101 technical report, related to the Molybdenum Stockwork, for the end of May 2022. At a 0.19% MoS<sub>2</sub> cut-off grade, Inferred Mineral Resources of 21.5 Mt were reported, at a grade of 0.26% MoS<sub>2</sub>.

Geological Setting, Mineralization and Deposit Types

The Korean Peninsula is situated on the eastern margin of the North China-Korea Platform, which corresponds to a craton composed of three blocks: Archean metamorphic rocks, the Nangrim-Pyeongnam Block and the Gyeonggi and the Yeongnam Massifs. These blocks are separated by the northeast-trending Imjingang and Okcheon mobile belts of Phanerozoic age. The Sangdong Mine is located within the northern sector of the Okcheon Fold Belt, occupying the Cambro-Ordovician Joseon Supergroup of the Taebaek Basin.

The Sangdong Mine is situated on the gently dipping southern limb of the east-west orientated Triassic-age Hambaek Syncline. This structure consists of a thick sequence of sedimentary rocks of the Taebaek Series, composed of Cambro-Ordovician interlayered limestones, shales and quartzites of the Joseon System. This sequence is unconformably overlying the Pre-Cambrian schist and gneiss basement of the Yulri Group of the Yeongnam massif. The stratigraphy in the Sangdong area is mainly composed of the basal Jangsan quartzite, Myobong slate and the overlying Pungchon limestone formations with Cambrian age, which belong to the Joseon Supergroup.

The tungsten mineralization of the Sangdong deposit is contained in several tabular, bedding-conformable skarns in the Myobong Shale formation. The ore deposit is strata-bound, with the strike and dip of the hosting formations. These skarns have been interpreted as comprising carbonate-bearing horizons that were hydrothermally altered and mineralized by fluids ascending from the underlying Sangdong Granite.

From uppermost to lowermost, the mineralized horizons are termed as Hangingwall, Main, and Footwall horizons, as shown in Figures 7-4 and 7-5 below. The Footwall and Main horizons have thicknesses that typically range from 1 to 4 m. As well as the main mineralization on these beds, there are often thin calc-silicate layers developed on the upper and lower contacts of the Main and Footwall horizons.

The Hangingwall horizon is located near the upper contact of the Myobong shale and varies in thickness from approximately 5.0 to 30.0 m because of the irregular boundary of the shale with the overlying Pungchon Limestone. This zone has a strike length of about 600 m and a down-dip extent of about 800 m. Above the most highly altered portion of the Main horizon, the Hangingwall horizon is not tabular, but extends steeply and irregularly into the overlying limestone. The base of the Hangingwall horizon is approximately 14 m above the upper contact of the Main horizon.

The Main horizon strikes about 100° and dips northerly between 15° and 30°. The strike length is in excess of 1,300 m and thickness varies from 5.0–6.0 m. Hydrothermal alteration (skarnification) within the Main horizon forms three concentric, roughly circular zones: the inner biotite-muscovite-quartz zone, the intermediate biotite-hornblende-quartz zone and the marginal garnet-diopside zone.

The Footwall horizons comprise multiple layers: Footwall Zone 1 (F1) normally occurs 1 m below the Main horizon and can be approximately 2 m thick; Footwall Zones 2 and 3 (F2, F3) are situated approximately 35 m to 40 m below the Main horizon and average thickness is from 3 m to 4 m. Furthermore, usually smaller, Footwall Zones have been identified beyond F3 and are collectively referred to as F4 and F5, both situated not far from the contact with the underlying Jangsan quartzite formation.

**Figure 7-4 – Schematic Section of the Sangdong Deposit**

![](image_018.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;I) Local Geology

The Sangdong Mine is situated within the northern sector of the Okcheon Fold Belt in South Korea, a region that hosts Cambro-Ordovician sedimentary sequences known as the Joseon Supergroup. The deposit lies along the south-dipping southern limb of the east-west trending Hambaek Syncline and is structurally and stratigraphically controlled. The local stratigraphy consists primarily of the basal Jangsan Quartzite, overlain by the Myobong Slate, and capped by the Pungchon Limestone—units which collectively form the Joseon Supergroup. The tungsten mineralization is hosted within several tabular, bedding-conformable skarn horizons (Hangingwall, Main, and Footwall), developed through metasomatic replacement of carbonate-rich layers in the Myobong Slate and Pungchon Limestone. These zones are characterized by alternating garnet-, pyroxene-, and quartz-bearing assemblages, consistent with classic calc-silicate skarn systems. Structural controls, lithological boundaries, and proximity to the granite source collectively govern the geometry and grade distribution within the deposit.

II) Tungsten Skarns

The Sangdong Mine contains a tungsten skarn deposit. Skarns are contact metasomatic deposits, exploited for tungsten, with accessory molybdenum, copper, tin and zinc. They typically form in continental marginal settings, associated with syn-orogenic plutonnes that intrude and metamorphose deeply buried sequences of carbonate-shale sedimentary sequences. Skarn mineralization is typically hosted by pure and impure limestones, calcareous to carbonaceous pelites.

Due to their contact metamorphic nature, mineralization has a close spatial association with calc-alkaline granitic intrusives (tonalite, granodiorite, quartz monzonite and granites). Skarn deposits form stratiform, tabular and lens-like deposits, which can be continuous for hundreds of metres along intrusive contacts.

Principal and subordinate mineralogy comprises scheelite ± molybdenite ± chalcopyrite ± pyrrhotite ± sphalerite ± arsenopyrite ± pyrite ± powellite. Traces of wolframite, fluorite, cassiterite, galena, marcasite and bornite also occur. Reduced types are characterized by pyrrhotite, magnetite, bismuthinite, native bismuth and high pyrrhotite:pyrite ratios. Variable amounts of quartz-veining (with local molybdenite) can cut both the exo- and endoskarn.

Exoskarns occur at, and outside the granite which produced them, and comprise alterations of wall rocks. Endoskarns, including greisens, form within the granite mass itself, usually late in the intrusive emplacement and consist of cross-cutting stockworks, cooling joints and around the margins and uppermost sections of the granite itself.

Exoskarns display the following alteration zonation: an innermost zone of massive quartz may be present; an inner zone of diopside-hedenbergite ± grossular-andradite ± biotite ± vesuvianite; and an outer barren wollastonite-bearing zone.

There is commonly a late-stage alteration assemblage, comprising spessartine ± almandine ± biotite ± amphibole ± plagioclase ± phlogopite ± epidote ± fluorite ± sphene. Reduced types are characterized by hedenbergitic pyroxene, iron-rich biotite, fluorite, vesuvianite, scapolite and low garnet: pyroxene ratios, whereas oxidized types are characterized by salitic pyroxene, epidote and andraditic garnet and high garnet: pyroxene ratios. The exoskarn envelope can be associated with extensive areas of biotite hornfels.

Endoskarn alteration exhibits the following: pyroxene ± garnet ± biotite ± epidote ± amphibole ± muscovite ± plagioclase ± pyrite ±pyrrhotite ± trace tourmaline and scapolite; and local greisen developed.

The location of mineralization is usually controlled by: the presence of carbonate rocks in extensive thermal aureoles of intrusions; gently-inclined bedding and intrusive contacts; and structural and/or stratigraphic traps in sedimentary rocks and irregular parts of the pluton/country rock contacts.

III) Granite Related Molybdenum

Due to the paucity of information about the molybdenum-mineralized system beneath the Sangdong underground workings, it is difficult to characterize a model for this mineralization. However, important molybdenum mineralization falls into two classes: porphyry-type and granite-related molybdenum-tungsten-tin systems. There is some overlap between the two.

The tungsten mineralization of the Sangdong deposit is contained within a series of tabular skarn horizons within the Myobong Slate. Calcium carbonate horizons within the slate have undergone metasomatic replacement to mineralized skarn by hydrothermal fluids. The source of these fluids is thought to be the underlying Sangdong Granite. K-Ar age determination of phyllites within the Myobong Formation are consistent with the age of the granite below.

Swarms of quartz veins have ascended upward through the Jangsan Quartzite into the Myobong Formation where they can be seen to follow the bedding planes and also crosscut the formation. There is a correlation between the presence of quartz veins and the grade of mineralization.

Although hydrothermal alteration (skarn formation) is widespread in the Sangdong area from Sangdong West to Sangdong East and beyond, there is no evidence of a pervasive porphyry-style alteration system. Country rock above the Sangdong granite is hornfelsed, but not pervasively altered.

Vein- and greisen-type hydrothermal molybdenum-tungsten or tin-tungsten mineralization is connected with shallow-seated, highly differentiated, relatively K-rich granites. Regional zoning of tin, tungsten and molybdenum may be apparent. Where greisen is absent, mineralization may be within a sheeted or stockwork system contained within the apical portion of a granite body, or in overlying country rocks. Veins may vary from subhorizontal to vertical and replacement (skarn) bodies may be present in the wallrocks. Fluorine is an important constituent and bismuth minerals may also be present. There is no recorded alteration system (i.e., greisen) at Sangdong, and therefore the deep molybdenum mineralization is likely to comprise a system of sheeted or stockwork veins.

*Exploration*

It was stated by Klepper (1947) that exploration in 1939 and 1940 led to the discovery of the Sangdong scheelite body, although no further details are available.

Mineral Resource definition drilling is the only form of exploration that has been completed by Woulfe and AKTC at the Sangdong Mine after becoming operators in 2006, and there is no record of exploration other than drilling by previous operators.

An aeromagnetic map of the area was reproduced in a scoping report by Sennitt (2007), but the origin is unknown.

*Drilling*

&nbsp;&nbsp;&nbsp;&nbsp;I) KTMC Drilling

A summary of the different KTMC drilling campaigns is shown in Table 10-1 below. Between 1980 and 1985, 15 holes (8,940 aggregate metres) were drilled to investigate the East Tungsten mineralized zone, now referred to as Sangdong East, approximately 1 km to the east of the main Sangdong Mine and the deposit was further investigated with a drift approximately 1 km long. About 100,000 tonnes of ore were mined here in 1990. No additional work has been completed in this area to date.

**Table 10-1 – KTMC Drillhole Summary**

![](image_020.jpg)

Between 1979 and 1989, 18 holes (16,502 aggregate metres) were drilled in the West Tungsten mineralized zone, now referred to as Sangdong West, approximately 2 km northwest of the Sangdong Mine area. This zone has not been further explored. Between 1980 and 1987, 22 vertical holes (12,390 aggregate metres) were drilled underground from the Sangdong Mine workings to investigate the extent of molybdenum mineralization in the quartzite unit that underlies the main skarn zone. No additional work has been completed in this area to date.

During an unknown period, about 780 holes with an aggregate length of 30,000 m were drilled underground to explore the mineralized zones. These historical holes were used in the 2010 scoping study.

II) Interpretation of Relevant Drilling Results

The drilling completed between 2006 and 2016 confirmed the presence, of the three principal skarn horizons at the Sangdong Mine: the Hangingwall (Upper), Main, and Footwall (Lower) zones. The 2016 Phase 7 underground drilling program, consisting of 20 drillholes totaling over 1,004 metres, was carried out from drill chambers in Level 2 of the underground workings and targeted the Hangingwall zone.

Mineralization in the Main and Hangingwall zones occurs to be skarn hosted in the upper Myobong Formation. The drilling confirmed the continuity in the targeted zones and contained scheelite as the primary tungsten-bearing mineral. Results were validated through extensive quality assurance/quality control, including field duplicates, blank samples, certified reference materials, and laboratory duplicates. These data supported the current Mineral Resource estimate and are considered suitable by the Qualified Person for use in resource modeling.

This data set does not have associated QA/QC information for the assay results, nor is the collar or downhole survey information adequately documented. Comparison of grade values in pre-Woulfe drillholes with nearby Woulfe drillholes showed significant differences that were considered (by AMC in 2014) as unlikely to be a result of natural variability only. Therefore, the results suggested that the pre-Woulfe location information and/or grade values were inaccurate.

AMC used the KTMC drillholes in their Mineral Resource estimate to determine the grade and tonnes below -3 level (594 mRL) only where Woulfe had not completed any drilling. This uncertainty in the location and/or grade below -3 level is reflected in the current Mineral Resource classification.

III) Woulfe Drilling

The exploration work undertaken by Woulfe at the Sangdong Mine was the surface drilling programme completed between November 2006 and July 2008. From June 2010, an underground resource definition drilling programme was designed and the first phase completed

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. 2006–2008 Drilling
 Programme

Woulfe (as Oriental) conducted a drill programme at the Sangdong Mine between November 2006 and July 2008. Ninety HQ/NQ surface core holes were completed, with an aggregate length of 22,800 m. HQ and NQ cores are nominally 63.5 mm and 47.6 mm in diameter, respectively.

The holes were largely drilled within the area of the former underground Sangdong tungsten deposit. Analyses for WO<sub>3</sub>, MoS<sub>2</sub>, bismuth and other minerals were completed and this dataset comprises some 20,355 analyses.

The holes were all drilled in the south-eastern portion of the deposit, where the mineralization occurs near surface or is outcropping, on a bearing of 135°, parallel or nearly so, to geological strike; about 30% were drilled on the opposite bearing of 315°.

The majority were drilled at a dip of 70°, although several were vertical or at a dip of about 80°. The holes were designed to test all three principal horizons of mineralization and, with several accidental exceptions, almost all penetrated well into the Jangsan Quartzite that underlies the host Myobong Formation. Difficulty was often experienced in penetrating the lower horizons due to the mined out areas of the skarn mineralization.

The drill hole collar locations were surveyed by global positioning survey (GPS; sub 0.2 m accuracy) and the down-hole positions of the holes were measured at 50 m intervals when possible. There were some uncertainties with regard to the collar elevations and Woulfe subsequently undertook additional surveying work to resolve the situation and consolidate the survey of the site in general.

Holes drilled on bearings of both 135° and 315° intersected strata and mineralization obliquely, the intersected thickness of mineralization being about a 30% greater than the true thickness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. 2009–2014 Drilling
 Programmes

Once access was gained to the underground workings, Woulfe began a programme of infill and resource definition drilling. The drilling was largely completed from the underground workings supplemented by additional surface holes where underground access was not possible.

Underground drilling was either NQ core from a Sandvik Onram 1000 wireline rig, or BQ core from 3 Kempe pneumatic screwdrive open hole core rigs. Orientations vary based on access and the need to intersect all three ore horizons. Conical drilling patterns are common as a result of fanning out in all directions from the underground drilling platforms. Collar locations were surveyed using a Leica 1203 (total station with sub-decimetre accuracy). Downhole surveys were conducted approximately at the end of hole, as the majority of holes are less than 30 m in length. A Camteq™ multiple shot camera was used, with a stated accuracy of ± 0.5° on azimuth and ± 0.2° on dip. The downhole camera was routinely calibrated to ensure maximum performance, using a purpose designed jig.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. 2016 Drilling Programme

AKTC have completed a Phase 7 underground drilling campaign in 2016. This was focused in improving the resource categorization of the HW Zone (allowing some conversion of Inferred to Indicated Mineral Resources) and consisted of 20 holes, drilling just over a 1,000 m in total.

IV) Drilling Summary

All of the recorded drillholes at Sangdong are summarized in Table 10-2.

**Table 10-2 – Summary of Sangdong Drilling**

**[Date: 2016, Source: A. Wheeler]**

&nbsp;&nbsp;&nbsp;&nbsp;V) Drilling Results

Table 10-3 below summarizes the mineralized intersections from the drilling programmes completed between 2012 and 2014.

**Table 10-3 – Summary of Mineralized Intersections from Drilling 2012 – 2014**

![](image_022.jpg)

Sampling, Analysis and Data Verification

&nbsp;&nbsp;&nbsp;&nbsp;I) Sample Preparation

An overall summary of quality control samples taken during drilling campaigns from 2010 onwards is shown in Table 11-1 below.

**Table 11-1 – Summary of Quality Control Samples**![](image_023.jpg)

Sample preparation from core to pulps for analysis is completed on site. Core is sawed in half, half placed in a plastic sample bag and half replaced in the core box for archival storage. Sample tags are placed in the core box and in the sample bag and the sample number is written on the sample bag as well. Standards are placed into the sample stream at this point in the sampling process, in accordance with a sample list that has been drawn up by the geologist responsible for logging the hole.

Core samples are dried, split, crushed and pulverized on site by Woulfe personnel in a preparation lab that was purchased as a modular unit from Marc Technologies in Perth, Australia. Equipment is cleaned by brushing and the use of compressed air between each sample. Woulfe staff employed in the sample preparation facility have been trained by SGS Australia Pty Ltd. ("**SGS Australia**") in Perth, Australia.

An approximately 50 g split portion of the pulverized sample is sent to SGS Australia in Perth, Australia for analysis. Blanks are inserted one in every 20 samples to ensure there is no contamination.

II) Analyses

From 2006 to 2008, samples were analyzed at the ALS laboratory in Brisbane, Australia, by inductively coupled plasma mass spectrometry (ICP-MS) for 41 elements and for ore grade quantities of specific elements by *aqua regia* or four-acid digestion followed by ICP analysis.

From 2010, molybdenum, tin and tungsten were analyzed at the SGS Australia laboratory in Perth, Australia, by X-ray fluorescence (XRF). The sample is fused in a platinum crucible using lithium metaborate/tetraborate flux and the resultant glass bead is irradiated with X-rays and the elements of interest quantified. All quantities are reported in parts per million (ppm). Both ALS and SGS laboratories are independent of the Company and AKTC.

III) Sample Security and Chain of Custody

The sample preparation facility comprised a fenced area beside the Woulfe accommodation facility. Sample tags are placed in the sample bag and the sample number is written on the sample bag as well. A split portion of the pulp from each sample and coarse rejects is retained in a locked facility at the project site. The pulps are placed in brown paper envelopes by the sample preparation manager, then packed in cardboard boxes, sealed and sent by DHL courier to SGS Australia in Perth by a Woulfe geologist.

IV) Precision, Accuracy and Blank Results

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Precision

Precision is the measure of variability or repeatability of an assay result. Knowing the precision of a set of assays allows for correction to any bias or accuracy problems that may occur. A lack of precision may be the result of the sample collection process, laboratory preparation process and/or the analytical process, influencing negatively the Mineral Resource Estimation.

Internal laboratory duplicates are two split pulps of the same pulverized sample. These laboratory duplicates are considered to demonstrate good precision if the absolute relative paired difference ("**RPD**") is < 10%, 90% of the time. Internal laboratory duplicates quantify the precision of the chain of laboratory sample preparation and analytical procedures.

During the January 2012–September 2014 reporting period, 819 samples were re-assayed. Tungsten internal laboratory duplicate summary statistics are presented in Table 11-4 below. Molybdenum internal laboratory duplicate summary statistics are presented in Table 11-5.

**Table 11-4 – Tungsten Laboratory Duplicate Summary**

![](image_024.jpg)

**Table 11-5 – Molybdenum Laboratory Duplicate Samples**

![](image_025.jpg)

The correlation coefficient for both tungsten and molybdenum shows excellent agreement between the original and duplicate assays. The tungsten RPD results also show excellent agreement between the original and duplicate assays with 98% of samples below the 10% RPD threshold. The molybdenum RPD results show poorer agreement between the original and duplicate assays with 86% of samples below the 10% RPD threshold. This is less than the 90% threshold. The scatterplots show three outliers in the tungsten results and one outlier in the molybdenum results.

TT considered that the outliers were not material to the Mineral Resource Estimation and that the duplicate results demonstrate the precision of the tungsten assay results and that they supported the use of the SGS Australia results in Mineral Resource Estimation.

Independent re-assaying of selected pulps from the primary sample by a second laboratory provided a measure of both precision and accuracy. Woulfe sent 133 samples previously assayed by SGS Australia in Perth, Australia to Bureau Veritas Laboratory ("**BV**") in Perth, Australia, as an external laboratory check. These external laboratory duplicates are considered to demonstrate good precision if the absolute RPD is < 20%, 90% of the time.

Tungsten duplicate summary statistics, for the January 2012–September 2014 reporting period, are presented in Table 11-6 below.

**Table 11-6 – Tungsten External Laboratory Duplicate Summary**

![](image_026.jpg)

The correlation coefficient shows excellent agreement between the two laboratories. The RPD results also show excellent agreement between the two laboratories with 99% of samples below the 20% RPD threshold. The scatterplot shows one outlier.

The outliers are not considered material for the Mineral Resource estimate.

The BV results demonstrate the precision and accuracy of the SGS Australia assay results and that they support the use of the SGS Australia results in Mineral Resource Estimation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Accuracy

Accuracy is the measure of how close the assay is to the actual sample grade. Poor accuracy can be caused by various sampling or analytical problems, including issues with analytical equipment or procedures such as machine calibrations. These situations can occur at any time. Accuracy of the analytical process must be quantified on a batch by batch basis to enable samples to be re-assayed over time periods by inserting assay CRM standards into each batch of samples and monitoring the results.

A CRM is a standard sample that has been manufactured by a certified company and is itself certified. The manufacturing process creates a homogenized sample that has undergone an extensive and rigorous certification process. This process generates an expected value and acceptable limits for all elements in the sample.

Laboratories use CRMs to ensure that their analytical processes are accurate between calibrations of the machines. Where drift is observed, it is normal procedure for a machine to be recalibrated. It is possible for internal laboratory CRM assay results to be altered and it is now industry standard for laboratory clients to submit their own CRM samples, in order to be able to monitor the accuracy of the laboratory.

Four CRMs for tungsten and one for molybdenum are in use by Woulfe. These, along with a blank and a re-split coarse duplicate are inserted routinely at every 20<sup>th</sup> sample interval. The CRMs were produced by CDN Resource Laboratories, Canada. A summary of the CRMs is given in Table 11-7 below. Note that CRM values are reported here as W% or Mo ppm, not WO<sub>3</sub> or MoS<sub>2</sub>%. If a CRM falls outside the 1SD range, re-analyses of 10 samples before and 10 samples after the failed CRM sample are requested from SGS Australia.

**Table 11-7 – CRM Summary**

The CRM results for the reporting period January 30, 2012 to September 15, 2014 demonstrate that: the CRMs show good compliance for the reporting period; CRMs CDN-W1, CDN-W2 and CDN-W3 display a slight high bias in the middle third of the reporting period of up to approximately 5% but still well under 1 standard deviation of the lab mean; no significant bias is observed for the rest of the reporting period or for the other CRMs; and the molybdenum CRM is too close to the detection limit to be a useful CRM for the Sangdong Mine.

TT considered that the bias observed in the CRM plots is not material for the Mineral Resource estimate, but recommended continuous monitoring of CRM performance by batch. The results demonstrated the accuracy of the assay results and support their use in Mineral Resource Estimation.

The Qualified Person, after also checking the Phase 7 results, considers these results to be demonstrating the same accuracy as previously, which therefore supports their use in Mineral Resource Estimation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Blank Results

Blanks are required to be inserted into the sample sequence by both the laboratory and the laboratory client. Laboratory blanks are usually flux or pure silica and are a test for cleanliness within the laboratory, where poor cleaning of equipment may result in sample contamination.

The coarse crystalline feldspar blank material used by Woulfe during the period to test for contamination during the sample preparation was certified to contain no metal. TT considered assays of blank material to be acceptable if they were less than three times the practical detection limit of the laboratory.

The tungsten bank results for the January 2012–September 2024 reporting period show three blank values out of 822 that are above the acceptable limits while the molybdenum results show two blank values out of 822 that are above the acceptable limits. TT considers that the blank value results are acceptable and demonstrate adequate care is taken by Woulfe staff during sample preparation and the lab employs correct cleanliness procedures. There were also no unacceptable blank values for the Phase 6 blank results.

The Qualified Person considers that the sample preparation, security, analytical procedures and supporting QA/QC results that were used to inform the Sangdong Mine block model estimate were collected in line with industry good practice as defined in the CIM Exploration Best Practice Guidelines and the CIM Mineral Resource, Mineral Reserve Best Practice Guidelines (the "**CIM Guidelines**").

&nbsp;&nbsp;&nbsp;&nbsp;V) Quality Assurance/Quality
 Control

The QA/QC protocol included the insertion of the following control samples in the assay batches:

● Pulp duplicates (one in 50, or 2%), consisting of second splits of the pulverized samples that are submitted to the primary laboratory for analysis in the same batches as the original samples, but with different numbers.

● CRMs (three in 50, or 6%).

● Coarse blanks (one in 50, or 2%) and fine blanks (one in 50, or 2%), consisting of coarse (approximately 1" diameter) and pulverized material, respectively, whose blank character was demonstrated by analysis conducted at SGS Australia laboratories in Australia. Initially ground glass was used as blank for Phases #1 to #4 drilling, but was subsequently changed to coarse crystalline feldspar for Phase #5 drilling.

● Check samples (two in 50, or 4%), collected from pulps that were previously assayed at the primary laboratory, are resubmitted to BV in Perth, Australia for external control. The check sample batch includes an appropriate proportion of control samples (pulp duplicates, CRMs and fine blanks).

● In addition, the QA/QC protocol includes independent granulometric checks on crushed and pulverized samples (one in 20 for each type, or 5% each) that are conducted by geological personnel.

VI) Data Verification

The data verification procedures applied by various qualified persons at the Sangdong Mine since 2006 are summarized below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Watts, Griffis and
 McQuat (2006)

The Sangdong Mine underground workings were either inaccessible or, if open, of unknown condition. This restricted Watts, Griffis and McQuat's ("**WGM's**") independent sampling to low-grade outcrops and waste dump material. Given the long-documented record of tungsten production at the mine, the sampling done during WGM's site visit on November 20, 2006 was clearly not intended to be definitive, rather simply to independently confirm that economically significant grades of tungsten, in particular, were present.

All samples were put into bags and closed with uniquely numbered, locking plastic ties; they remained under lock and key or in WGM's possession during their representative's time in South Korea. They were taken as personal baggage to Mississauga, Ontario and shipped by courier to SGS Mineral Services ("**SGS Canada**") in Lakefield, Ontario. Samples were assayed for tungsten (reported as %WO<sub>3</sub>) and molybdenum.

SGS Canada normally inserted one blank per batch of 100 (maximum) samples, one duplicate per 20 samples and one reference standard every 20 samples.

After drying, if necessary, the samples were crushed to 75% passing 9 mesh (2 mm), and riffle split to produce a reject portion and a smaller portion which was pulverized to 85% passing 200 mesh (74 μm). A 0.2g charge of each pulverized sample was roasted for 20 minutes and mixed with 5 g of potassium pyrosulphate. The mixture was then fused, ground and pressed into a disk. Samples were analyzed by the wavelength dispersion X-ray fluorescence (WD-XRF) method having detection limits of 0.05% for each of W and Mo. The XRF method was chosen because normal ICP methods have an upper detection limit of 1% W, and it was suspected that at least two of the Sangdong samples contained appreciably more than this amount of tungsten.

Analytical results for the independent WGM samples, together with location and sample descriptions, are presented in Table 12-1 below.

**Table 12-1 – Analytical Results from Independent WGM Sampling**

![](image_028.jpg)

Significant amounts of blue-white-fluorescing scheelite were observed in two dump samples from the upper and main adit levels (72119 and 72120) and lesser amounts from a third (72121), confirmed upon analysis. All samples were of compact, fine-grained dark green (amphibole-rich) skarn. The coarse character of the scheelite in sample 72120 is noteworthy.

The outcrop sampled near the upper adit portal consists of diopside-garnet skarn with subhorizontal quartz veins. There was a minor amount of local scheelite.

The most surprising result of 0.07% WO<sub>3</sub> was from an 8 m wide, steeply dipping (about -65°) structural zone, with multiple quartz veins, in Myobong Shale on the forestry road. Mineralized quartz veins cutting across skarn-type mineralization are documented in the Sangdong Mine, but apparently at not such a steep inclination. Other similar structural (fault or shear) zones were observed by WGM on the forestry road south of the set-up for drill hole SD-1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Sennitt (2007)

The Sangdong Project database, residing in MS ACCESS database files, includes all drill collar location, assay, quality assurance and geological data, as well as core recovery, visual estimates of key minerals and bulk density data.

The collar, assay, geological (rock type codes only) and core recovery data were extracted and input into the GEMCOM® modelling software system.

As a test of data integrity, checking of 10% of the data was made against original assay certificates. Collar coordinates were checked against the original survey forms. Results from the data checks showed zero error rate. It was concluded that the assay and survey database used for the mineral resource update was sufficiently free of error to be adequate for resource estimation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Tetra Tech/Wardrop
 (2012)

Verification activities conducted during the site visit included:

● Multiple site visits to the Sangdong Mine, the last in October 2011, inspection of the exposed host skarn, veining and associated lithologies.

● Core logging (lithology, mineralization) of selected Sangdong diamond drill holes from the latest drilling programme, at the Sangdong facilities.

● Observation and review of core storage, core logging, core sampling, core cutting and sample preparation procedures, standard reference sample and reject sample storage facilities at the Sangdong facilities.

● Detailed discussion with Woulfe staff was undertaken during the visit to the Sangdong facilities.

Verification activities subsequent to the site visit included the selection of between 5% and 10% of the Sangdong drill holes for verification of handwritten geological logs, original field sample sheets and original ALS assay certificates against corresponding records in the Sangdong database supplied. Copies and scans of original data were supplied by Woulfe in order to carry out the verification exercise off-site.

Very minor discrepancies and errors were encountered during these processes and referred to Woulfe for clarification or correction.

Overall it was concluded by TT/Wardrop that appropriate care and attention in data entry, validation and QA/QC procedures had been applied by Woulfe and that analytical issues were identified and appropriate remedial action taken. A possible exception related to downhole surveys of relatively short drillholes, but otherwise industry standard practices had been followed and the quality of the Sangdong database meets NI 43-101 standards and CIM Guidelines.

TT/Wardrop concluded that the combination of the latest sampling and understanding derived from the wealth of historical mining data provided adequate information for the purpose of their resource estimation and technical report.

TT/Wardrop did not complete any independent exploration work, drill any holes or perform any programme of sampling and assaying on the property. During the field visit (October 2011), Wardrop did not collect any samples from the Sangdong project, but was satisfied from visual inspection of the presence of mineralization at Sangdong.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Tetra Tech/A-Z Mining
 Professionals Ltd. (2013)

From August 17, 2013 to September 1, 2013, inclusive, TT full-time employee and qualified person Mr. Joe Hirst made a personal inspection of the Sangdong Mine and undertook the following data verification steps:

Discussions with site geologists regarding:

● sample collection;

● sample preparation;

● sample storage;

● QA/QC;

● data validation procedures;

● underground mapping procedures;

● survey procedures;

● geological interpretation;

● exploration strategy;

● a review of underground back and wall mapping (drifts and rises);

● an inspection of the core sheds and some recent drill core intersections from the Sangdong Mine; and

● 100 random cross-checks of the mineralized assay results in the database with original assay results from the reporting period.

Tetra-Tech made the following observations: site geologists are appropriately trained and are conscious of the specific sampling requirements of disseminated mineralization with high-grade lenses; and cross-checking the database with the original assay results did not uncover any errors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. AMC (2014)

Between August 5–15, 2014, AMC full-time employee and qualified person Dr. A. P. Fowler visited the Sangdong Mine; the data verification steps and conclusions were identical to those summarized in the TT (2013) section above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Adam Wheeler Site Visits

The Qualified Person visited the Sangdong site during August 24–26, 2015, October 17–28, 2016 as well as from April 1–4, 2025. These visits included discussion with site geologists all aspects of sample collection, preparation and storage, as well as visiting the core storage and sample preparation areas. The updated sample database was also reviewed in 2015 and 2016, and during the resource estimation process, many aspects of the drill hole data were checked by communication with the Sangdong geologists.

In the Qualified Peron's opinion, the geological data used to inform the Sangdong Mine block model estimates were collected in line with industry good practice as defined in the CIM Guidelines and were suitable for use in the estimation of Mineral Resources.

Mineral Processing and Metallurgical Testing

&nbsp;&nbsp;&nbsp;&nbsp;I) Beneficiation of Scheelite
 Ore from the Sangdong Mine (South Korea (U.S. Department of the Interior), 1954)

Extensive metallurgical test work has been conducted on Sangdong scheelite ore over the course of several years to de-risk the processing flowsheet and confirm economic recoverability. The test work included: (i) laboratory-based bulk sulphide flotation and multiple stage cleaning tests, (ii) locked cycle tests conducted at KIGAM to establish recovery and concentrate grade projections, and (iii) pilot plant trials conducted at Laboratório Nacional de Energia e Geologia ("LNEG") in Portugal to confirm the viability of the full processing regime. These programs tested different reagent grades and water sources under various test conditions. Test work results confirmed that the Sangdong ore is amenable to producing high-grade tungsten concentrates using the selected flotation regime, and that recovery levels and product specifications areconsistent with historical results. This test work underpins the process guarantees granted by Metso Outotec. Additional historical and third-party test results are summarized under "Mineral Processing and Metallurgical Testing" in this document.

Several processing factors and potential deleterious elements were identified during the metallurgical test programs on the Sangdong scheelite ore. Scheelite liberation is constrained in coarser fractions, requiring fine grinding (to 80% <65 μm) to ensure efficient flotation recovery. The presence of sulphide minerals such as molybdenite, bismuthinite, and chalcopyrite necessitates bulk sulphide flotation prior to scheelite recovery, as these can impact concentrate quality. Test work also indicated that excessive backfill material in the feed (approaching 10%) can negatively affect sulphide flotation efficiency. Water quality is another factor; flotation with softened mine or river water proved effective, while untreated water may interfere with reagent performance. Lastly, while earlier test work relied on a proprietary Chinese collector, subsequent trials confirmed comparable or superior performance from an alternative South African reagent, reducing sourcing risk. Overall, no critical deleterious element or processing factor has been identified that would prevent the production of market-grade scheelite concentrate, assuming appropriate process controls.

From the test work on the Sangdong scheelite ore, the following conclusions were drawn:

● By crushing and grinding through 28-mesh in equipment selected to produce a minimum of fines, enough scheelite can be liberated to warrant concentration by shaking tables. Removal of the scheelite from the circuit in as coarse a size as possible reduces grinding and subsequent slime loss. Gravity concentration allows direct recovery of approximately 40% of the total tungsten values. Such a gravity concentrate is readily cleaned to market grade, whereas a flotation concentrate (the alternative) is not. The table concentrate can be cleaned simply by sulphide flotation and magnetic separation. It was demonstrated that the sulphur, bismuth, and molybdenum contents of the scheelite table concentrate were effectively removed by sulphide flotation.

● A bismuth-bearing by-product could be made by cleaning the scheelite table concentrate and selectively floating the table tails.

● After proper grinding (90 to 95% minus 200 mesh) a scavenger flotation operation recovered a major portion of the sulphide minerals and the remaining scheelite in two selective concentrates. The tungsten flotation concentrate was of low grade (approximately 14% tungsten trioxide); however, such a concentrate is suitable for beneficiation by hydrometallurgical methods.

● The scheelite in the ore submitted was locked with the gangue to the extent of 50% in the minus 20 mesh plus 200 mesh fraction, and 100% in the plus 20 mesh fraction. The grind for flotation work demonstrated good liberation of scheelite below 200 mesh.

The test work on the Sangdong low-grade scheelite concentrate indicated the feasibility of a soda-ash roast-leach extraction of sodium tungstate to precipitate an artificial scheelite product. The product made from the first part of this calcium chloride precipitation met market specifications in both tungstic oxide content and maximum molybdenum content allowable. The subsequent precipitation products were high in molybdenum, even though the minimum grade for tungstic oxide was met.

Separation of the molybdenum from the tungsten in the pregnant solution was not attempted, as it was beyond the scope of the investigation. However, a process was used by U.S. Vanadium Co. to make this molybdenum tungsten-separation.

A calculated combination of the results of these two beneficiation procedures was made. This calculation was made to demonstrate the results possibly obtainable if a sample of the Sangdong scheelite ore were treated by tabling, flotation, magnetic separation and roasting and leaching of low-grade scheelite concentrates for reprecipitation of artificial scheelite products, as indicated by the test work. The hypothetical results indicated that the following marketable products might be prepared:

● A combined natural and artificial scheelite of 63.4% tungstic oxide and 0.65% molybdenum, accounting for 73.6% of the tungstic oxide.

● A bismuth by-product of 11.1% bismuth and 0.57 and 2.8 oz/t of gold and silver, respectively, with recovery of 46.3%.

● Further detailed beneficiation study probably would improve the overall metallurgical results. This applies particularly to the scavenger flotation circuit where 18.9% of the tungsten was lost in a tailing containing 0.23% tungstic oxide. It is also probable that cleaning of the table concentrate by sulphide flotation would yield a final tungsten product acceptably free of molybdenum, bismuth and sulphides and at the same time increase the bismuth recovery in the bismuth by-product.

Part of the molybdenum should be recoverable from the sulphide flotation concentrates. The portion entering the pregnant solution may be precipitated with sodium sulphide solution and filtered off before tungsten precipitates. Neither of these steps was attempted, since they were not part of existing metallurgical technology; the latter technique has been applied to Korean concentrates, and it was therefore simply assumed that these methods would apply to this ore. These conjectures point to the possibility of better metallurgical results; however, the beneficiation work done has demonstrated that the Sangdong scheelite ore, as approximated by the sample submitted for beneficiation, is amenable to concentration into marketable grade products by a combination of tabling, flotation, magnetic separation, and chemical treatment.

II) Tetra Tech/Woulfe (2010 Scoping Study)

The following is a summary, extracted from the Mineral Resource Estimate (TT/Woulfe 2012), of the mineral processing and metallurgical testing completed during the 2010 Scoping Study.

Mineralogical studies and preliminary metallurgical test work have been conducted on four composite core samples taken from the Sangdong deposit by SGS Mineral Services Europe ("**SGS Europe**"). The samples represented the four historical mineralized horizons, namely A, B, C and D+E combined (although not stated the horizons are assumed to correspond to the Hangingwall, Main and Footwall (F1, F2 and F3) horizons).

The key points arising from SGS Europe test work were:

● The primary economic minerals in the ore are scheelite and molybdenite.

● The sample average head grades were 0.22% WO<sub>3</sub> and 0.03% MoS<sub>2</sub>.

● Fluorite, rhenium, gold, silver, copper and bismuth are present but at sub-economic levels.

● The bond work index was determined as 18.7 kW/h/t and the ore is classified as medium hard.

● Scheelite becomes increasingly liberated below 500 μm with ultimate liberation at approximately 50 μm.

● Scheelite is not associated with molybdenite or bismuthinite. Provided the ore minerals are sufficiently liberated from the host rock silicates then separation should be relatively straightforward.

● The relative density of the ore falls between 2.87 and 3.03 and averages 2.90.

● Preconcentration by gravity has been shown to give recoveries of 63% for tungsten and 55% for molybdenum.

Although theoretical grade and recovery curves were established as part of the quantitative mineralogical programme, process grade and recovery data remained to be established.

III) A-Z Mining Professionals Ltd./Woulfe

Since publication of the TT Feasibility Study in 2012 a pilot plant scale test was completed on a bulk sample from the Sangdong deposit in late 2012. The pilot plant testwork was carried out by the GRINM. The results of this pilot plant testwork are summarized below:

● Though the grade of the sample processed was lower than that used in bench scale testing, comprehensive recovery can still be achieved. All products can be separated into saleable products by processing or hydrometallurgy.

● The strong magnetic minerals in the ore should be removed to prevent adverse effects on scheelite concentrate grade.

● The advised grinding fineness was recommended to be 78–80% -75 μm for the Main Zone and 90% -75 μm for the FW Zone.

● The pilot plant testwork on the Main Zone used a 78.5% -75 μm grind and a molybdenum flotation-sulphide flotation-scheelite rougher flotation. The scheelite concentrate using rougher flotation and heated flotation is produced with a mass yield of 9.13% assaying 65.26% WO<sub>3</sub> with an overall recovery of 81.13%. FW Zone testwork used a 95% -75μm grind and a molybdenum flotation-sulphide flotation-scheelite rougher flotation. The scheelite concentrate using rougher flotation and heated flotation is produced with a mass yield of 8.95% assaying 66.07% WO<sub>3</sub> with an overall recovery of 78.81%.

● Main and FW Zones mineralogy are similar with the same flowsheet recommended for the two ore types.

The overall conclusion from the pilot plant testwork was that the flowsheet proposed by TT in the 2012 Feasibility Study and technological conditions provided by the pilot plant test could be used as the design basis for the processing plant.

IV) Chinese Collector Alternative

In the pilot plant testwork by the GRINM in China, a proprietary Chinese collector, GYWA, was used in the plant. Because of security of supply concerns an alternative to this collector was sourced and tested. The conclusions from testing the R3-3F unit from South Africa were:

● Scouting tests showed each collector capable of producing high grade (circa 20% WO<sub>3</sub>) WO<sub>3</sub> rougher concentrates, albeit at non-optimized recoveries.

● Overall better rougher flotation results were achieved with the R3-3F collector than with GYWA, probably due to the reagent dosages selected.

● Heated cleaner flotation tests had yet to be conducted; however, rougher WO<sub>3</sub> grades are approximately double those achieved in China.

● Mo and Bi recoveries to the Mo and sulphide concentrates (which are independent of the WO<sub>3</sub> collector used) were low at 17.3 to 19.6% Mo and 29.2 to 32.0% Bi recovery. Mo and sulphide flotation requires optimization. Losses of WO<sub>3</sub> to these concentrates were correspondingly low at 0.5 to 0.8% of the WO<sub>3</sub>, although these losses will increase slightly when these circuits are optimized.

● Future work will proceed to optimise the Mo and sulphide circuits ahead of maximising WO<sub>3</sub> recovery into the WO<sub>3</sub> rougher concentrate.

● Heated cleaner flotation will follow to achieve sales grade WO<sub>3</sub> concentrates and confirm this can be achieved with the Chinese collector and the South African collector.

The validity of the TT flowsheet and the projected tungsten recovery were confirmed by the pilot plant and collector alternative testwork, in addition to the original metallurgical testwork presented in the TT report.

The testwork also de-risked the processing plant flowsheet and reagents used.

&nbsp;&nbsp;&nbsp;&nbsp;V) AKTC (2016–Onwards)

Continuing the de-risking strategy from the beginning of 2016, in terms of the plant flowsheet and reagents used, Almonty signed an agreement with the Korean Institute of Geoscience and Mineral Resources ("**KIGAM**") to jointly develop a suitable method to recover the scheelite at the Sangdong Mine. This method should provide results not inferior to those reported in 2012 by the GRINM.

Since this agreement has been signed, a very significant number of metallurgical tests have been done on Sangdong mineralized material, especially on the footwall lodes. Multiple stage cleaning tests have been done in very different conditions: control tests with tap water and laboratory reagents, tests with softened mine water, tests with industrial grade reagents and tests including in the feed a portion of backfill material. To arrive at a metallurgical projection, LCT were made. For the purpose of the process guaranties, granted by Metso Outotec, pilot plant trials have also been completed. In general, all these tests present results that are not inferior to those reported by the GRINM.

Until 2019, laboratory-based tests were done: multiple stage cleaning tests and LCT. KIGAM laboratories were used for this purpose. After 2021, the laboratorial tests were conducted at the Tungsten Technological Centre ("**TTC**"), in Portugal, at Panasqueira Mine. The pilot plant trials, concluded in 2023, took place at the LNEG installations, also in Portugal, in Porto.

The principal metallurgical tests done by Almonty at the Sangdong Mine are described in the following sections.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Bulk Sulphide Flotation

Prior to flotation of scheelite, it is necessary to remove sulphides, also by flotation, into a bulk concentrate. In Table 13-4 and Table 13-5 below, the results of two bulk sulphide flotation tests are given. The rougher sulphide concentrate was cleaned in two stages, in order to reduce the losses in WO3 to the final sulphide concentrate, as demonstrated by the results Table 13-4 below. The conditions selected to float the sulphides ensure good recoveries in Mo, Bi and Cu. The head grades presented in Table 13-4 below are typical of most of the samples that were tested. The much higher head grades presented in Table 13-5 below are an exception. Laboratorial metallurgical tests for the possible recovery of Mo and Bi, and also of Au and Ag, are scheduled for 2025 at the TTC.

**Table 13-4 – Bulk Sulphide Flotation Test – KIGAM (2019)**

**Table 13-5 – Bulk Sulphide Flotation Test – Industrial Grade Reagents – TTC (2025)**

![](image_030.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Multiple Stage Cleaning
 Tests

Presented here are five multiple stage cleaning tests done in different phases of the project development. In Table 13-6 below, a test is presented that was used as preparation for the LCT (see the next section). This achieved 78.6% WO3 in the final scheelite concentrate, confirming that the production of high-grade tungsten concentrates is possible. In Table 13-7 and Table 13-8 below are presented the results of two tests that were done in the context of establishing the compatibility between the flotation process and the lime-soda process for softening water. It can be concluded that both processes are compatible. In this way, groundwater and river water, collected near Sangdong, can be used in flotation after softening. In Table 13-9 and Table 13-10 below are given the results of two tests done in the context of selecting industrial grade reagents to replace the laboratory reagents (sodium carbonate, sodium silicate, etc.). It can be concluded that the chemical industry (outside China) can produce, in quality and quantity, the reagents needed to operate the Sangdong Mine processing plant.

Bearing in mind the main purpose of a multiple stage cleaning test, from the five tests that were presented, it can be concluded that a high-grade tungsten concentrate can be produced with the proposed flotation regime, being the stage recoveries of the cleaning process always very high. Multiple stage cleaning tests were also done to measure the tolerance of sulphide and scheelite flotation to the presence of backfill material in the feed. Tests have been conducted with backfill percentages ranging from a few percent to 10%. For the lower percentages of backfill, it was concluded that neither the sulphide flotation nor the scheelite flotation suffered an impact. Only near to the upper limit was noticed some impact on sulphide flotation, characterized by an increase in mass pull.

The flotation regime applied in the multiple stage cleaning tests, and, in general, applied in the LCT and pilot plant trials, is well-known in the mining industry. It is based on the use of sodium carbonate as pH regulator, sodium silicate as depressor, and TOFA as the main scheelite collector, conducting the flotation in lukewarm water. Grinding to 80% below 65 μm seems suitable for Sangdong ore, independently from its origin in the mine.

**Table 13-6 – Multiple-Stage Cleaning Test – KIGAM (2019)**

![](image_031.jpg)

**Table 13-7 – Multiple-Stage Cleaning Test – Tap Water Control Test – TTC (2021)**

**Table 13-8 – Multiple-Stage Cleaning Test – Softened Mine Water – TTC (2021)**

![](image_033.jpg)

**Table 13-9 – Multiple-Stage Control Test – Laboratory Reagents – TTC (2025)**

![](image_034.jpg)

**Table 13-10 – Multiple-Stage Cleaning Test – Industrial Grade Reagents – TTC (2025)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Locked Cycle Tests

This section presents two LCT, which were made at KIGAM, that allow making a first metallurgical projection, that is, to estimate the value of the recovery and concentrate grade, with all the internal fluxes recycling. For both tests are presented the weights and assays of each product that does not recycle (Table 13-11 and Table 13-15 below), the cycle-by-cycle balance for each complete cycle of the test (Table 13-12 and Table 13-16 below), and, finally, the metallurgical projection, based on the last two cycles of each test, following two different procedures (Table 13-13, Table 13-14, Table 13-17 and Table 13-18 below). Table 13-11 and Table 13-15 below show the assays of other elements: Mo, Cu and P.

As mentioned previously, two different procedures were used in the metallurgical projection. In the first procedure, the two concentrates and the two tailings are projected as the average weights and assays for these products in cycles E and F. The feed for the test is then calculated as the sum of the products. For test no. 1, the first procedure gives a recovery of 83.7% for a final concentrate grade of 73.2% WO<sub>3</sub>. For test no. 2, this first procedure gives a recovery of 85.4% for a final concentrate grade of 62.4% WO<sub>3</sub>.

In the second procedure, the final concentrates are projected in the same way. However, the total tailings are then calculated as the difference between the feed and the final concentrates. In this case, the average feed is computed based on all the products presented in Table 13-11 and Table 13-15 below. For test no. 1 of the second procedure, the recovery is 83.6% for a final concentrate grade of 73.2% WO3. For test no. 2 of the second procedure, the recovery is 85.0% for a final concentrate grade of 62.4% WO<sub>3</sub>. The similarity between the results of both procedures ensures the quality of the projections.

**Table 13-11 – Results of LCT No. 1 – KIGAM (2019)**

**Table 13-12 – Cycle by Cycle Mass Balance for LCT No. 1 – KIGAM (2019)**

**Table 13-13 – Metallurgical Projection – LCT 1/ Procedure 1 – KIGAM (2019)**

**Table 13-14 – Metallurgical Projection – LCT 1/ Procedure 2 – KIGAM (2019)** 

**Table 13-15 – Results of Locked Cycle Test No. 2 – KIGAM (2019)**

![](image_040.jpg)

**Table 13-16 – Cycle by Cycle Mass Balance for LCT No. 2 – KIGAM (2019)**

**Table 13-17 – Metallurgical Projection for LCT No. 2 – Procedure 1**

**Table 13-18 – Metallurgical Projection for LCT No. 2 – Procedure 2**

![](image_043.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Pilot Plant Trials

In order to have a metallurgical projection in conditions more similar to those that will be found in practice in the future plant, and as a demand to get the process guaranties from Metso Outotec, several pilot plant trials were completed at the laboratories of LNEG in Porto, Portugal. For these particular campaigns, the ore was blasted in a development mine gallery in the F3 zone of the footwall of Sangdong Mine. Due to practical constraints, connected with the minimum volume for a pilot plant flotation cell, it was only possible to do four cleaning stages.

This section presents the results of the last pilot plant trials done in LNEG, in September 2023, based on which the process guaranties were granted. These last trials had a duration of four days, operating the pilot plant for a period of approximately 10 hours each day. Timed samples of the feed, sulphide concentrate, scheelite concentrate and tailings were collected on an hourly basis. During the last hour of operation, samples of all internal streams were carefully collected, so as not to disturb the circuit. All these samples were assayed in WO<sub>3</sub> at the TTC (see the list of streams in Table 13-19 below). Based on these assays, and on the flowrates estimated from the timed samples, it was possible, by writing the equations of mass balance, to compute the complete mass balance in terms of total mass and mass of WO3. In Table 13-20 below are given the mass balances for each day of operation. It is clear that during these four days the results here are very similar, with a slight tendency to get better in terms of recovery and concentrate grade, as the days passed. For day 1, the complete mass balance gave a recovery of 81.8% for a concentrate grade of 62.40% WO<sub>3</sub>; for day 2, a recovery of 82.4% and a concentrate grade of 61.70% WO₃; for day 3, a recovery of 82.4% and a concentrate grade of 64.48% WO<sub>3</sub>; and, for day 4, a recovery of 82.5% and a concentrate grade of 67.46% WO<sub>3</sub>.

The pilot plant trial results indicate that the metallurgical projection is slightly worse than that from the locked cycle tests. However, the practical limitations imposed by LNEG's pilot plant must be taken into consideration. Not only was the number of cleaning stages only four instead of five, which limited the final concentrate grade, but the aeration rate of the rougher and scavenger banks was deficient, which limited the recovery. The cells of these banks were old Denver no. 7 cells, of sub-A type, without the possibility of increasing the speed of the rotors. In this way, the metallurgical projection based on the locked cycle tests is considered more accurate and should be used in defining the economic model.

During 2025, as mentioned above, LNEG's pilot plant is scheduled to explore the possibility of producing by-product concentrates of Mo and Bi/Au/Ag. It will also be given continuity to the effort of de-risking, by exploring other collectors recognized as suitable for scheelite flotation.

**Table 13-19 – List of Streams for the Pilot Plant – LNEG (2023)**

**Table 13-20 – Mass Balance for Plant Trials – Days 1 - 4 – LNEF (2023)**

![](image_045.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Conclusion

Considering the results of all tests, it can be concluded that mill recovery will likely range from 83.6% to 85.0% and the final concentrate grade, considering the average between test no. 1 and test no. 2, will be around 67–68% WO<sub>3</sub>.

For the current study, AKTC has decided to assume an overall global mill recovery of 85%, along with a concentrate grade of 65% WO<sub>3</sub>.

Mineral Resource and Mineral Reserve Estimates

The evaluation work with respect to the Mineral Resource and Mineral Reserve estimates was carried out and prepared in compliance with NI 43-101. The Mineral Resources and Mineral Reserves in this estimate were calculated using the CIM Definition Standards prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council on May 19, 2014.

&nbsp;&nbsp;&nbsp;&nbsp;I) Mineral Resource Estimate

The effective date of the Mineral Resource estimate is February 28, 2025.

The quantity, grade and quality of each category of Mineral Resources is indicated in Table 1-1 below.

**Table 1-1 – Sangdong Mine – Mineral Resources**

![](image_046.jpg)

● **CIM Definitions followed for Mineral Resource estimate.** 

● **Rounding may result in apparent summation differences between tonnes, grades and metal content; not considered material.** 

● **Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.** 

The key assumptions, parameters and methods used to estimate the Mineral Resources include:

1. WO₃ and MoS₂ grades were estimated
 using ordinary kriging.

2. The block model is based on a parent block
 size of 10 m x 10 m x 10 m.

3. A minimum mining width of 2.2 m was applied.

4. The applied cut-off grade of 0.15% WO₃
 is based on an ammonium paratungstate (APT) price of US$450/MTU, a processing recovery of
 85%, and a total operating cost of approximately US$45.8 per tonne of ore.

Other than discussed herein, the Qualified Person is not aware of any known environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect the Mineral Resource estimates. There are no known mining, metallurgical, infrastructure, or other factors that materially affect the Mineral Resource estimate, at this time.

II) Mineral Reserve Estimate

The effective date of the Mineral Reserve estimate is February 28, 2025.

To start the mine operations, the blocked-out stopes have enabled a Mineral Reserve evaluation to be made. The quantity and grade of Mineral Reserves is indicated in Table 1-2 below.

![](image_047.jpg)

● **CIM Definitions were followed for Mineral Reserve estimate.** 

● **Rounding may result in apparent summation differences between tonnes, grades and metal content, but the differences are not considered material.** 

The key assumptions, parameters, and methods used to estimate the mineral reserves include:

1. The reserve estimation is based on a full 3D
 design of development and stopes, using a minimum mining thickness of 3 m.

2. The cut-off grades used for mine planning and
 reserve evaluation purposes were as follows:

---

| | |
|:---|:---|
| HW zone stopes | 0.16% WO<sub>3</sub> |
| FW/Main zone stopes | 0.17% WO<sub>3</sub> |
| Development | 0.18% WO<sub>3</sub> |

---

3. Cut-off grades are supported by an APT price
 of US$450/MTU WO<sub>3</sub>, a processing recovery of 85%, and operating costs reflecting
 different orebodies and mining methods.

The updated mine planning calculations have identified Probable Mineral Reserves of 8.6 Mt, which, with an assumed mill capacity of 640 ktpa, will sustain a mining operation for approximately 14 years.

The Mineral Reserves were derived from the Mineral Resource block model described above. The Mineral Reserves are those Indicated Mineral Resources (there are no Measured Resources in the current estimate) that have been identified as being economically extractable and which incorporate mining losses and the addition of mining dilution. The Mineral Reserves form the basis for the mine plan described below.

Reference breakeven cut-off grades were derived, for reference during stope planning, as summarized in Table 15-1 below. The base case reserve price of US$450/MTU WO<sub>3</sub> stems from the information presented below. Different cut-offs were derived for different stope heading sizes and different support requirements. The development cut-off relates to waste development, for headings which need to be mined regardless of whether or not they are economic as ore. The development mining cost is therefore not applied in the development cut-off calculation.

The applied reserve cut-offs are higher than the derived breakeven cut-off grades, due to additional mill feed grade requirements.

**Table 15-1 – Mineral Reserve Cut-off Grades**

![](image_048.jpg)

The Qualified Person is not aware of any known environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect the Mineral Reserve estimate, other than discussed herein. There are no known mining, metallurgical, infrastructure, or other factors that materially affect the Mineral Reserve estimate at this time.

Mining Operations

The current mine plan for the Sangdong Mine is based on the use of two stoping methods, each selected based on the geometry and characteristics of the mineralized zones:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Stepped Drift-and-Fill (DAF): Applied
 to thinner ore zones including the F2, Halo, F3, and Main beds. This method uses external
 stope ramps and stepwise vertical panel lifts of ~2 m to match the ~22° average dip of
 these beds. It supports high mining recoveries, multiple panel access, and adaptability to
 local variations in dip and ore geometry. Paste fill is used between stope lifts, with cement
 content ranging from 1% to 7% depending on stope status.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Post-Pillar Cut-and-Fill (PP-CAF): Applied
 to thicker zones, predominantly in the Hangingwall horizon, where vertical thickness exceeds
 5 m. Mining occurs in 6 m lifts, leaving 5 m x 5 m post-pillars in a regular grid to support
 subsequent operations. This method minimizes internal waste mining and suits the orebody
 geometry while allowing high productivity and efficient backfill placement.

These mining methods were selected and designed following geotechnical assessments and are tailored to ensure high recovery and ground stability across varying bed dips and thicknesses.

&nbsp;&nbsp;&nbsp;&nbsp;I) Stepped Drill and
 Fill

Previous DAF designs made for the FW zones (January 2018) used internal stope ramps, which were developed on apparent dip within each bed. However, this design test work made clear various disadvantages:

● High dilution with the internal stope ramp itself.

● High losses with pillar wall next to stope ramp.

● Very difficult drive intersections with stope ramp, in areas of lower dip.

In the stepped drift-and-fill method, single drift-and-fill headings will be extended along strike, close to horizontal, with inclined shanty backs so as to reduce dilution at the hanging wall contact. DAF headings will be developed with width from 3 m to 6 m. DAF panel lifts will be stepped up in approximately 2 m vertical intervals, which corresponds with the average 22° degree dip of the F2, F3 and Main beds.

The method will use external stope ramps, located on the footwall side of the ore zones, approximately 20 m below the bottom bed. Due to the low orebody dip, this means at any particular elevation, the ramp will be approximately 70 m horizontally to the south of the F3 bed. At the bottom level elevation, a stope crosscut will be developed from the ramp, going northwards until it intersects the first ore horizon (generally the F3). For the F2/F3 area, the stope crosscut can be approximately horizontal, and will then normally be extended on to also intersect the F2 bed. This will often allow four production faces, which can be developed along the F2 and F3 beds at that elevation. The stope drives will need to be of a variable width, from 3m to 6m, so as to have the floor of the next (higher) stope drive located approximately 2 m higher.

In most cases, with the average 22° degree dip of the ore zones, one drive heading of 5 m width can be made at the design elevation, and the next lift will then be 2 m higher. However, there is likely to be local variations in dip. If the orebody dip falls below 18°, then two or more drive headings may be required at the same elevation, before stepping up to the next 2 m lift.

The stope drives will be developed along strike in both the NW and SE directions, to a designed extent, generally approximately a maximum of 100 m, the limit of forced duct ventilation. The total stoping length, with two faces on the same bed and same elevation, will generally be approximately 200 m.

The mined stope drives will then be backfilled with paste fill. This will first require removal of any infrastructure from the mined stope drives and then installation of backfilling piping. Backfilling barricades will then need to be built at the start of each stope drive. This filling operation will need to be tight-filled as much as possible. The planned cement content for different stoping situations is summarized below.

● Old stopes – 1%.

● Active stopes – 3.5%.

● Any undercut stopes – 7%.

The emplaced backfill will need a minimum of four-days' curing time, before mining operations can continue.

The end of the stope access crosscut with then need to be elevated, by a limited slashing of the back leaving enough waste to make a new ramp floor over a small length, so as to provide a new stope access approximately 2 m higher than previously. The next stope drives can then be developed, with one sidewall being ore, and the other sidewall being the backfill from the mining of the previous lift.

For the F2/F3 stoping areas, this stoping cycle will be repeated for generally three lifts from the same stope access crosscut. For the next lift, a new stope access crosscut will be developed from the stope ramp, approximately 35 m along-strike from the previous crosscut. In areas of the south zone, when the Halo zone also occurs between the F2 and F3 zones, this can give up to six available faces on the same stope lift.

For the Main East zone, which has a much more limited strike extent, of approximately 215 m, different stope ramps have been designed to provide stope access crosscuts into the central area of the stoping zone. These stope access crosscuts have often been designed with a downward gradient, to a maximum of 13%. This will allow repetitive roof slashing of the stope ramps, so as to provide more stope access on progressive 2m lifts. Much better recoveries are attainable by using DAF in the Main East zone. The advantages of this DAF mining method include:

● High mining recoveries (minimal loss in ore pillars).

● High productivities, as multiple primary panels can be accessed simultaneously.

● Flexibility, with changes possible in panels due to variations in orebody geometry or faulting.

In some very few localized areas, the bed thickness can be more than 6 m, particularly in the Main East zone, and occasionally up to 8 m. In these parts the first lower part of these panels can be mined out with a 3 m height and then backfilled. Short stope ramps will then be created longitudinally, and upper panels will then be mined out with inclined roofs at top orebody contact.

II) Post-Pillar Cut-and-Fill

This method has been designed in those areas which generally have a vertical thickness greater than 5 m, which is the majority of the HW zone. Broadly, these zones will be mined from the bottom-up in 6 m vertical lifts. Each lift will be mined out according to a regular mine-wide grid of 6 m wide stoping panels, leaving non-recoverable 5 m x 5 m post-pillars. The panels on the bottom-most lift of each stope block will require a higher cement backfill, so as to provide a stable roof when stopes in the future are mined up from below.

Although the HW zone is well-mineralized, there are erratic patches on internal waste. Based on this criteria, and previous studies involving the application of a DAF method, it was decided to apply a PP-CAF method, with relatively large (6 m x 6 m) stope headings, around a regular pattern of 5 m x 5 m non-recoverable post-pillars. This PP-CAF method offers the following advantages:

● Minimal mining of internal waste.

● High productivity with a basic large 6 m x 6 m round size, and many faces available at any time.

● The method is well-suited to the overall dimensions of orebody.

● Improved mining recovery near orebody contacts, with shanty-backs and mining floor adjustments.

● Good overall support provided by post-pillars.

● Backfill placement operations can be done on a much larger scale and with many fewer fill fences.

The 6 m wide rooms and 5 m post-pillar have been recommended by Turner Mining and Geotechnical Pty Ltd.

Access to each stope will be via inclined ramps generally going down from the level galleries in the hanging wall. These ramps will allow access to the lower-most 6 m lift of each stope block. The initial stope panels will then generally be developed from the hanging wall contact to the footwall contact. A number of panel faces may then be started and mined simultaneously, providing many faces for drilling and blasting. Backfill placement operations will be done as logical mined sections can be easily partitioned off.

Once all the PP-CAF panels have been mined and backfilled for an entire lift, the stope ramp access can then be back-slashed, so as to provide access to the next 6 m lift above. This sequence can then be repeated lift-by-lift. Generally, three to four 6 m lifts can be accessed from the same original level crosscut access.

Processing and Recovery Operations

The current process flowsheet and plant design are based on comprehensive basic engineering conducted by Metso Outotec in February 2022. These designs reflect current production goals and operational efficiencies. Extensive testing, simulations and industry best practices have informed these updated configurations.

&nbsp;&nbsp;&nbsp;&nbsp;I) Process Design

The optimized flowsheet for effectively recovering scheelite from Sangdong ore relies on a structured flotation processes. The goal of this process is to produce a high-quality final concentrate containing approximately 65% WO<sub>3</sub>. Pilot plant testing supports an overall average tungsten recovery rate of approximately 85%. The processing facility has been designed to operate at a nominal feed rate of 80 tph, with provisions allowing a design capacity extension up to 100 tph.

The processing plant was designed by Metso, along with AKTC technical personnel and external consultants. Process design criteria stemmed from Metso engineering data.

II) Overall Process Summary

The main process steps for treating the Sangdong ore are primary, secondary and tertiary crushing and stockpiling; grinding; flotation divided into two (2) sub-circuits (sulphide flotation and tungsten flotation); thickening; filtration and packaging section; a waste water treatment facility; and services section. Further details of these sections include:

● Primary crushing and ore stockpiling, ensuring a steady feed to subsequent processes.

● Core (pebble) crushing for semi-autogenous ()"**SAG**") oversize, for +25 mm material.

● Two-stage grinding utilizing SAG and Ball milling (SABC), ensuring precise particle size control.

● A comprehensive flotation section, divided into sulphide flotation for gangue mineral removal and scheelite flotation for tungsten recovery.

● Dedicated scheelite concentrate thickening and filtration facilities.

● Robust tailings thickening management.

● Advanced wastewater treatment facilities.

● Comprehensive reagent preparation, handling, and distribution systems.

● Fully integrated general plant services to support overall plant operations.

III) Crushing and Stockpiling

Run-of-mine ("**ROM**") ore, initially delivered by 15-tonne trucks. Ore will be either directly fed into the primary crushing system or placed onto a blending stockpile, aimed at a consistent feed quality. There is a second ROM stockpile area of 7,000 tonnes capacity about 250 m north of the crushing area, as well as a reinforced stockpile area, also having a capacity of 7,000 tonnes, which is next to the crusher feed and immediately next to the Monty B mine portal. A plan of the different stockpile areas is shown in Figure 17-1 below.

**Figure 17-1 – Plan of Surface Stockpile Areas**

(Date: April 2025; Source: AKTC)

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Ore from the mine will be dumped into a feed hopper. The ore will be extracted from the feed hopper by an apron feeder down to an inclined 600 mm square opening grizzly. A rock breaker will be used to bring the grizzly oversize down to 600 mm. The blended ore, nominally sized at -400 mm, will undergo primary crushing through a jaw crusher.

Scalping through precision vibrating screens will control the crushed size distribution. Crushed ore will be monitored and conveyed underneath magnets and metal detectors, to remove metallic fragments. The crushing plant is designed to process ore at rates of up to 270 dmt/h, producing a product with a nominal P80 of 100 mm. Dust suppression and collection systems will be installed to minimize environmental impact and maintain occupational health standards. Ultimately, crushed ore will be transported via conveyor systems to a covered coarse ore stockpile, with a capacity of 10,000 dmt, for sustained feed to downstream operations.

IV) Grinding

Ore from the coarse stockpile will be reclaimed using variable-speed reclaim feeders and fed into the grinding circuit. There is a two-stage grinding configuration, consisting of SAG mills and ball mills. SAG mill oversize material will be crushed in a cone (pebble) crusher and recirculated. Precision controls will include belt scales and automated water addition. The particle size target will be a P80 of 65 microns to meet the scheelite flotation criteria. Classification systems utilizing cyclones and ultrafine screens are aimed at preventing overgrinding.

&nbsp;&nbsp;&nbsp;&nbsp;V) Flotation

The sulphide flotation circuit consists of a rougher flotation stage followed by two cleaner flotation stages, designed for removal of sulphide. Initially, ground pulp will be conditioned in a dedicated tank for about seven minutes, where Aero 3473 collector and MIBC frother will be introduced to enhance sulphide mineral attachment to bubbles. Subsequently, the pulp will be pumped to a bank of three 30 m³ flotation cells, configured sequentially to improve sulphide recovery. Rougher concentrate from these cells will then be pumped to the first cleaner flotation cells (four OK1.5 cells), where additional purification occurs. The concentrate from the first cleaner will then progress to the second cleaner flotation stage, utilizing four smaller OK0.5 flotation cells. Cleaner concentrate, after this two-stage cleaning process, will be directed to the final tailings pump box. Inline samplers will allow continuous sampling for analytical quality control.

The scheelite rougher flotation circuit will receive conditioned pulp following the sulphide flotation stage. The circuit consists of two sequential conditioning tanks, each designed to provide mixing and contact time of approximately 11 minutes. The first conditioning tank adjusts pulp pH and introduces critical flotation reagents such as sodium carbonate and sodium silicate, while the second tank dilutes pulp density to around 35% solids. Following conditioning, pulp will be transferred to a scheelite rougher flotation bank consisting of four 30 m³ flotation cells. Reagents, specifically TOFA as a primary collector, will be added to promote efficient scheelite mineral attachment. Rougher concentrate will proceed to the cleaner flotation circuit, while rougher tailings will be directed to scavenger flotation cells for further recovery.

Tailings from the scheelite rougher flotation circuit will be pumped to the scavenger circuit, consisting of two separate banks of four 30 m³ flotation cells each. Before entering the scavenger flotation cells, the pulp will undergo additional conditioning where reagents, primarily TOFA, will be reintroduced to improve flotation effectiveness. The scavenger flotation stage is designed to capture scheelite particles that were not recovered in the initial rougher stage, to enhance overall tungsten recovery. Scavenger tailings, after passing through an inline sampler for continuous monitoring, will be considered final tailings and pumped to the tailings thickener for dewatering and disposal. The scavenger circuit is very important in minimizing tungsten losses.

The scheelite cleaning circuit provides a multi-stage flotation process for the final upgrading of scheelite concentrates derived from rougher and scavenger flotation stages. This circuit comprises four sequential cleaning stages. Cleaner stage 1 consists of three 5 m³ flotation cells, while cleaner stage 2 utilizes two OK1.5 flotation cells. The final two cleaning stages (cleaner stages 3 and 4) will each utilize two OK0.5 flotation cells arranged sequentially. Throughout the cleaner stages, sodium silicate will be continually dosed as a depressant to prevent unwanted mineral flotation, to produce high purity scheelite concentrate. Temperature-controlled conditions (approximately 30–32.5°C) will be maintained using a heated water system to assist flotation performance. Concentration from the final cleaner stage, after upgrading, is directed towards concentrate thickening and filtration processes, in order to achieve the required market specifications of approximately 65% WO<sub>3</sub>.

VI) Final Tails Management

The final tailings from the concentrator plant, along with effluent from the paste plant, will be collected into a feedbox, for a 20 m diameter High-Rate Thickener (HRT). The thickener feedwell will be equipped with auto-dilution capabilities to adjust feed slurry density from around 20% solids to an optimum 12%. Overflow from the thickener will be directed to an overflow tank and subsequently pumped to the water treatment plant. The thickener underflow, with approximately 50% solids, will be transferred to a buffer tank. A diaphragm pumping system, with an additional standby set, will move tailings to the paste plant. Coagulants and flocculants will be added into the thickener to enhance settling and clarity of the overflow. Spillage around the thickener area will be collected and pumped back to the thickener feedbox.

VII) Fresh Water Quality

Fresh water will be provided to critical points within the flotation and reagent preparation areas of the plant. Heated fresh water from the water heating system will be provided for reagent mixing, related to flotation and thickener reagents. Unheated fresh water will be provided to the flotation section for analyzer and multiplexer operation, for process monitoring. Service water will also provided for hose-down and cleaning purposes within the flotation and dewatering sections. All water inputs, including fresh water, heated fresh water, and service water, will be centrally controlled and monitored via the plant Distributed Control System (DCS). The heated fresh water supply will support critical processes, maintaining optimal temperatures for flotation and reagent effectiveness.

VIII) Waste Water Treatment

Wastewater from the plant will primarily consist of flotation chemical residues and tailings thickener overflow. This water will be directed to dedicated water treatment facilities designed within Almonty's operational scope. Mechanical aeration processes in constructed lagoons will provide aeration to effectively reduce organic contaminants. The thickener overflow, containing residual reagents and suspended solids, will gravitate to an overflow tank and be subsequently pumped for further treatment.

Water quality will be managed to comply with the environmental discharge standards. Although mechanical aeration will significantly reduce organic compounds, sodium ions introduced by flotation chemicals will remain relatively unchanged. Regular monitoring will be used to ensure the treated water quality meets environmental regulatory requirements before discharge.

Infrastructure, Permitting and Compliance Activities

&nbsp;&nbsp;&nbsp;&nbsp;I) Infrastructure and
 Logistics

KTMC operated the Sangdong Mine from 1949 to 1994. Existing infrastructure from KTMC, as well as other public infrastructure which can still be used, includes the access road to the site; site roads; powerline and stepdown sub-station; potable water supply; and communications and Internet service. It also includes some old KTMC buildings that will be reused and the KTMC slope support at the zone of the plant and water treatment plant.

In the mine, there is an extensive infrastructure that can be reused, which includes:

● **West Ventilation Shaft.** This connects the surface to all mine levels until the -10 level and then through raises down to the -16 level. This shaft has two top openings (one inclined and another vertical) and all of them are ventilating. This shaft was inspected from surface to the -1 level and is in perfect condition.

● **Old Vertical Extraction Shaft.** This concrete lined shaft, of 4 m diameter, is currently being used for ventilation in between the Baegun and -1 levels. It gives access to the water stored in the mine down to the -16 level. This shaft is in very good condition and could be considered for hoisting use in the latter phases of the mine exploitation.

● **Gallery Network.** An extensive network of old base galleries can be used for multiple purposes, which include escape routes, ventilation and drainage.

● **Mined Stopes.** Extensive mined stopes can be used for backfill storage.

● **Drainage system**, on the -1 level.

● **Ramp System.** This connects Sangdong level with the -16 level. Dependent of its conditions below the -1 level, and following mine dewatering, this could allow access to the lower levels for exploration drilling access.

To return the Sangdong Mine to operation, the existing Sangdong infrastructure will be reconfigured and supplemented by new facilities as required. To accommodate the new waste storage facility, the former buildings at the Sangdong portal level were demolished to allow for placement of waste from mine development. New site infrastructure is being built in the valley, on the footprint of old KTMC installations (see Figure 18-1 below). This infrastructure will include a new assay laboratory, warehouse, maintenance shop, recreational facilities for employees, fuel storage and water reticulation system. The mine backfill plant will be placed at Taebaek Terrace, along with a geotechnical laboratory.

A new mine/administration office complex has now already been set up in the centre of the Sangdong village. This is an old post office which has been totally refurbished by AKTC.

![](image_050.jpg)

An on-site explosives magazine is not required, and removes the need for additional guards and security. All mines in South Korea use a daily supply from explosives companies, and this has proven to be reliable. This system has worked very well during the last three years of underground development work at the Sangdong Mine.

The Project will require approximately 40,000 m<sup>3</sup> per year of potable water, which will be supplied from the local town water supply. The site is already connected to the Sangdong town water supply.

II) Environmental Baseline Studies

In 2011, Woulfe initiated environmental baseline studies for the project including water sources and quality, climate, flora and fauna, air quality, noise, heritage, land use and water quality.

As well as providing information for the Feasibility Study, the studies provided the comprehensive environmental information required in preparing the Environmental Impact Assessment (EIA) Report.

The proposed operations (i.e. preferred alternatives) were selected based on technical and economic viability, as well as minimization of potential environmental and social impacts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Surface Water

Several permanent streams run thought the site. These streams drain to Okdong Creek, which flows through the town of Sangdong. The water is generally of good quality, based on the analytical results for "Living Environment" items (pH, biochemical oxygen demand, suspended solids and dissolved oxygen). Water quality is classified as first grade at all sampling points except at one site where results for pH and suspended solids exceed the standards.

However, analytical results for total coliforms (an indicator of potential human and animal waste present in water) were high 10–22,000 total coliforms/100 ml. In accordance with these results, water quality is classified as fourth grade for the "Living Environment" standards. It is assumed that slash-and-burn-fields around the stream contribute substantially to total coliforms concentrations.

Strategies to prevent degradation of the surface waters of the Project site include:

● sediment settling dams to reduce the volume of sediment, derived from mined and disturbed land, from entering the natural river systems of the area;

● storm water will be diverted around mining operations as much as practicable, and where contact occurs with disturbed areas, water will be collected, monitored and treated as appropriate;

● all spills of chemicals or fuels will be cleaned up immediately and contaminated areas remediated in accordance with the relevant guidelines and standards; and

● any potentially acid-forming material will be blended or encapsulated in the waste rock storage facility to prevent possible contamination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Groundwater

Groundwater is expressed as springs where there is contact between the limestone and either skarn or shale. For example, there are three springs, near the old mine buildings where there is a limestone outcrop with a strike of approximately 300° and a dip of 80° north. Elsewhere to the west of the site, springs occur where there is contact between limestone and shale. Flows from the springs are in the order of 2 to 20l/s.

Ground water varied in quality. Total coliforms were above the established quality criteria. Nitrates were also found in concentrations above the South Korean drinking water standards. Exhaustive testing for arsenic in water during 2014 was performed and concentrations were found to be well within those for South Korean drinking water standards. Elevated nitrate concentrations are likely to be a result of the application of nitrogenous fertilisers both for forestry and agriculture, while the heavily mineralized region around Sangdong will lead to elevated concentrations of arsenic in ground waters.

Potential groundwater quality impacts from Sangdong Mine activities may include contamination of groundwater by process water spillage and chemical spills on site. Based upon a review of the water quality of the existing tailings dams, leachate from tails is expected to be of good quality. It should be noted that Sangdong does not own or have any liability for the old tailings dams.

Mitigation strategies to minimize impacts on groundwater include:

● monitoring of groundwater levels and quality at springs/established bores around infrastructure areas and the waste rock storage facility to determine background water quality and any change in quality that may be due to the Project operations;

● clean-up of any process water or chemical spills immediately; and

● all areas will be bunded to prevent any spills within the processing plant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Flora and Fauna

Two flora and fauna surveys were completed in the spring and summer of 2007. One hundred and eighty-three species of fauna were identified. No endangered or endemic species were found. There are no areas requiring special protection or significant natural environmental resources or wildlife habitats in the area surrounding the Sangdong Mine site.

The land affected by the Sangdong Mine is not likely to become part of a protected area estate or subject to any treaty. In making this statement, consideration has been given to national parks, conservation parks, fish habitat areas, wilderness areas, aquatic reserves, national estates, world heritage listings and sites covered by international treaties or agreements, and scientific reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Air Quality

The area surrounding the proposed mine is predominantly forestry and agricultural land. The main sources of ambient dust in the region are likely to be due to grass seeds, pollens and wind erosion of exposed soil surfaces particular during tree harvesting.

Modelling of dust from the site originating from the waste rock storage facility, processing, and truck movements showed that dust increases were minimal in the community and will meet Korean air quality standards.

Air quality issues associated with the Sangdong Mine include:

● dust emissions associated with clearing vegetation, extracting and transporting small quantities of waste rock and ore, blasting and stockpiles;

● dust emissions associated with the transport of ore via conveyor and stockpiling;

● dust emissions associated with the crushing and milling processes at the ore processing plant; and

● windblown dust from erosion of disturbed and cleared areas on the Project site.

Mitigation strategies to minimize impacts of air emissions include:

● truck watering operations;

● minimization of vegetation disturbance; and

● covers over conveyors and dust control as required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Noise

Several households at Sangdong are considered to be sensitive receptors that may be impacted upon by mine operations. Households located adjacent to the road network had noise readings 12 to 15 dBa higher than rural areas during the day and 6 dBa higher at night.

Noise modelling of truck movements and the milling and processing activities showed a small increase in noise at the nearest community receptors, while still meeting Korean noise standards. The mountainous terrain surrounding the mine acts as a significant barrier to noise propagation, assisting in noise reduction from the site.

The following mitigation strategies will be adopted by the Project to minimize noise from operations:

● purchase mining equipment which favours noise reduction in the design;

● mine vehicles to be maintained in good condition to prevent unnecessary noise; and

● maintain diesel generators, lights, and other equipment in proper working order to prevent unnecessary noise being emitted.

The following mitigation strategies will be adopted to minimize impacts from blasting on the Project: (i) blasting will be underground; and (ii) a blasting strategy will be maintained to meet vibration regulatory requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Waste Material

The major sources of waste generation from the Project are waste rock, tailings, process/storm water and solid and liquid wastes (e.g., waste oil, tyres, batteries and plastics).

A waste management plan was developed prior to the commencement of mining. The waste management strategy of the Project follows a four-tiered waste management strategy according to practicalities and available markets, in preferential order: (i) waste minimization; (ii) waste reuse and/or recycling; (iii) waste treatments; and (iv) waste disposal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Waste Rock

Waste rock material will be stacked in two waste rock stockpiles at the site. Over a 12-year period, 950,000 t of waste rock will be produced, the majority of which will be accumulated in the early phase of mining. There may be the opportunity to backfill waste in the historic underground workings and it is expected that a relevant portion may be used as a building material. The remaining waste rock will be stored on site in two waste rock storage facilities: one next to the Sangdong Portal and at the other in a small valley, approximately 300 m to the south.

Some waste material from internal dilution control with UV lamp can be stored inside the mine in neighbouring active stopes and mixed with backfill. The pre-production amount of waste will be approximately 100,000 t, that will be stored in the secondary valley. This zone has a reduced thickness of topsoil and will require the transportation of topsoil from other zones in the final restoration of this area.

68 waste rock samples were collected to determine the potential for acid rock drainage. The samples were sourced from core samples across the ore body and are representative of all profiles of all geological units encountered in the deposit.

Acid-base and net acid generation testing indicated that 61 samples were classified as non-acid forming and 7 of the samples were potentially acid-forming.

The results of the waste rock assessment indicate the proportion of material which will be potentially acid-forming is relatively small at approximately 10% of the total waste volume.

Historically, there has been no acid rock drainage from the existing well-vegetated waste rock storage facility on site, or from the existing tailings dams. This trend is expected to continue. However, during operations continuing assessment of all waste rock will be conducted to confirm if any potentially acid-forming material is present and, if required, this material will be encapsulated to reduce the likelihood of acid rock drainage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Project Permitting
 Requirements and Status of Permit Applications

A number of permits have been granted. These include approvals for:

● Exclusive use of a mountain area. The period of the mountain area temporary use permit and the lease period of the Yeongwol County land have been continuously extended and currently expire at the end of December 2025. AKTC plans to apply for an extension of the mountain area temporary use permit and the lease period of the Yeongwol County land by about three years around the fourth quarter of 2025.

● Temporary use of a mountain area. The term of AKTC's mining plan is related to the temporary use period of a mountain area. AKTC has continuously extended the term of the permit for the temporary use of a mountain area, which currently expires December 31, 2025. AKTC will keep extending the term of the permit for the temporary use of a mountain area as required.

● Approval for construction of an installation for a mining facility, to build the Sangdong adit, on July 9, 2011, by the Eastern Mining Safety Office.

● Approval for construction of an installation for a mining facility, to build the Woulfe adit, on November 13, 2012, by the Eastern Mining Safety Office.

● Approval for construction of and installation for a mining facility, to build Taebaek and Baegun adits, on September 29, 2014, by the Eastern Mining Safety Office.

● Approval for construction of and installation for a mining facility, to build Monty B adit, on July 20 2018, by the Eastern Mining Safety Office and received approval for the change on September 25, 2020.

● Approval for construction of and installation for a mining facility, to install the crushing facilities, on August 7, 2024, by the Eastern Mining Safety Office.

● Approval for construction of and installation for a mining facility, to install the flotation facilities, on August 8, 2024, by the Eastern Mining Safety Office.

The permits/approvals related to construction are summarized in Table 20-3 below.

**Table 20-3 – Summary of Construction Permits**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Cultural Resources

A cultural property survey was conducted during July 2007 by ERM. According to previous investigations undertaken for a cultural property survey, no state designated cultural properties exist in Sangdong-eup area.

Five historical sites were reviewed according to the Cultural Asset Map Book. Of these sites, two were natural caves, one is a historical temple ruin, one is a significant fossil discovery and one is a Monument of Loyalty and Filial Piety.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Social Environment

The town of Sangdong is located 2 km from the mine site. The population of the town is approximately 500 people. Sangdong was once a regional centre for the district's agricultural and mining industries, when the Sangdong Mine was operable, with mining supporting 40,000 inhabitants (thereby acquiring the title Sangdong-eup).

Sangdong has elementary and high schools, supermarkets, shops, a service station, a post office, a police station, a fire station, a bank agency, a snow clearing centre, a community centre, churches, restaurants, and road and transport links. AKTC intends to house 95 full-time employees in the town and the surrounding region. Certain other staff will live in a camp on site.

A community consultation programme was undertaken and included discussions with landholders, government departments, and other stakeholders. There is overwhelming favourable support for the Sangdong Mine from the community.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Economic Environment

The economic flow-on benefits to Sangdong and the towns and cities of the county include increases in the following service industries:

● fuel supply and transport;

● supply and transport services for mining supplies, reagents and machinery;

● light vehicle servicing;

● bus and air services;

● training and personnel management services;

● plant maintenance and fabrication services; and

● hospitality, accommodation, and domestic supplies.

The Sangdong Mine is expected to directly employ up to a maximum of 300 people during the construction phase, reducing to approximately 200 people during operations.

The number of current AKTC employees is shown in Table 20-2. Of these, eight are working in Seoul and 43 in the Sangdong area.

**Table 20-2 – Number of Current AKTC Employees**

The flow-on benefits in terms of employment vary between three to four people for each permanent employee, so the direct employment benefits are in the order of another 600–800 people.

During the initial phase, the Sangdong Mine concentrate product will be transported by road to one of the neighbouring harbours for export to the U.S. and potentially a few years later, to the tungsten oxide plant located 22 km from the mine.

The local county and Sangdong regions have predominantly elderly populations, which in general are declining. The re-opening of the Sangdong Mine will provide a number of employment opportunities for both unskilled and skilled trades, with resulting economic benefits locally, regionally and nationally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. Sangdong Community
 Relations

The relationship between AKTC and the Sangdong community is strong. AKTC has been an active member of the Sangdong community since 2009. Because of these strong local connections, public consultation has been undertaken both informally and formally, particularly with the local Sangdong township and Yeongwol County. Because many members of the workforce are locally based, there is a high degree of awareness and anticipation of the project coming to fruition.

The site manager has strong contacts within the Sangdong community and site visits are encouraged for local community members. There has been widespread support for the Sangdong Mine to date. There has been good local consultation with government staff related to day-to-day issues with the exploration programme at the Sangdong Mine. The relationship with the surrounding land holders is good.

Discussions between AKTC and the town of Sangdong are extremely positive, particularly in view of the fact, that the operation will be community-based and the Sangdong Mine can help support and improve local services. This strategy by AKTC supports the town of Sangdong and Yeongwol County in establishing long-term regional development plans, with a focus on reversing population decline, increasing employment opportunities, revitalizing the local economy and providing appropriate support services.

In order to promote co-prosperity with the local community and implement sustainable ESG management, AKTC is holding regular public information sessions in Sangdong throughout the Sangdong Mine development planning process. These sessions are intended to enhance the local residents' understanding of the project and serve as a channel for continuous communication. To foster long-term relationships, AKTC has signed a memorandum of understanding with high schools in the Yeongwol area to provide employment opportunities for graduates. In addition, AKTC has been actively engaged in various community activities, including providing annual financial support for the Sangdong High School baseball team, which was established to prevent the school's closure. Through these efforts, AKTC continues to build a united and harmonious relationship with the Sangdong community.

Capital and Operating Costs

&nbsp;&nbsp;&nbsp;&nbsp;I) Direct Costs

Direct costs have been allocated as all costs associated with permanent facilities. These include mine development openings, equipment and material costs, as well as construction and installation costs.

Mine infrastructure costs are those associated with maintenance shops, mine dewatering, refuge stations, etc. Wherever possible, equipment and materials' quotes and contractor installation costs have been used.

Other major equipment expenditure estimates are based on quotes obtained from suppliers and installation costs estimated as part of this study.

During the pre-production and sustaining development periods, all materials and equipment pricing have been based on quotes obtained from local South Korean suppliers or European and international suppliers, where South Korean suppliers do not exist. Processing plant equipment pricing is based on the equipment list, specifications and process flow diagrams. Budgetary prices were obtained from vendors of major equipment and in-house data was used from similar projects for items not quoted. Estimated costs for plate work were based on local data, associated with remaining equipment: tanks, bins and chutes. Costs for installation of equipment are based on unit man-hour requirements.

All major equipment expenditures include freight only. Applicable taxes and duties have not been included in the capital expenditure estimates.

Other direct costs are based on actual local costs for earthwork/site work, concrete, structural steel, buildings and architectural, electrical, instrumental and controls, and piping.

Commodity pricing for earthwork, concrete, steel, architectural and piping were provided by local contractors based in South Korea. Labour rates and equipment usage rates used throughout the estimate were provided by the same source as the commodity prices. It was assumed that rock required for site preparation and the tailings will be provided at no cost during the preproduction stage. Only costs for placement have been allowed for in estimates.

Labour rates generally reflect industry-wide South Korean and international levels for the types of work performed, and in some cases adjusted for locally applied rates. The mine labour costs are based on three types of estimates:

● Quoted contractor prices for undertaking the tasks associated with constructing a specific installation;

● Average industry rates a contractor would be expected to charge for performing specific tasks;

● Lateral and raise development rates, developed and based on expected productivity and labour, materials and equipment costs for such an underground development program.

All labour costs include local South Korean government mandated contributions and the costs for the company-provided benefits.

II) Indirect Costs

The indirect costs cover all the costs associated with temporary construction facilities and services, construction support, freight, vendor representatives, spare parts, initial fills and inventory, owner's costs, engineering, procurement and construction management ("**EPCM**"), commissioning and start-up assistance.

The costs for construction facilities include all temporary facilities, services and operation, site office operations, security buildings and services, construction warehousing and material management, construction power and utilities, site transportation, medical facilities and services, garbage collection and disposal, and surveying.

The costs for spare parts have been factored in, based on equipment costs where vendors did not provide cost for spares needed for the first year of operations.

The estimated cost for initial fills of reagents is based on three months of operating requirements. Budget quotations were obtained for reagent pricing.

The freight costs were either provided by vendors or estimated based on weights and typically include for containerized and break-bulk shipping, and each are respectively divided into ocean freight and inland freight. For imported equipment, the cost of freight and export packing, ex-works to a local port, is included with the cost of the equipment. Freight insurance is included in the owner's cost.

The requirement for vendor representatives to supervise the installation of equipment or to conduct a checkout of the equipment prior to start-up of the equipment as deemed necessary for equipment guarantees or warranties has been included in the estimate. Typically, the cost for this item is inclusive of salary and travel.

Taxes and duties have been excluded.

EPCM costs have been calculated based on AKTC project managing development and construction, using consultants for processing plant and some aspects of mining and infrastructure design.

III) Capital Costs

Capital expenditures estimates exclude: sunk costs; taxes and duties; deferred capital; financing and interest during construction; additional exploration drilling; escalation; corporate withholding taxes; legal costs; metallurgical testing costs; and condemnation testing.

The cost estimates are to Feasibility Study level accuracy. All expenditure estimates are in 2025 constant USD. Costs derived from KRW figures have been converted at a rate of US$1 = KRW1,467.

All pre-production capital expenditures, up to the end of August 2025, are summarized in Table 21-1 below. Beyond August 2025, the major capital costs incurred are waste development costs, which have been determined from current contractor rates**.**

**Table 21-1 – Summary of Pre-Production Capital Expenditure**

![](image_053.jpg)

**Note: All figures expressed in '000 USD**

In the current cashflow calculations, a 5% contingency has been added onto all capital expenditure after March 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Mining

All mining development work has been and is being executed by local contractors, with some materials supplied by AKTC. Mine capital expenditures are primarily related to underground infrastructure, stope development and mine services. As existing development can be extensively utilized, the underground development costs are relatively low. The development costs are also lower due to the large number of mining contractors in South Korea and the competition between them. Sangdong Mine capital expenditures do not include closure expenses, as it is not expected for the project to be restricted to the actual reserves. They also do not include the value(s) of existing assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Processing Plant

The processing plant capital expenditures are based on actual costs incurred as well as expected equipment costs from Metso (a major processing equipment supplier), which has provided all major processing equipment except for conveyors and thickeners. These capital estimates cover all remaining aspects of the processing plant building and installations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Infrastructure and
 Support

Major expenditure components are for power distribution, an office/shop/warehouse complex, camp and catering facilities and water supply and treatment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Project Indirect and
 Owners' Costs

Project indirect procurement and construction management and owners' costs also include manpower recruitment and training during the pre-production period and all equivalent general and administration ("**G&A**") costs that have and will be incurred during the construction phase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Working Capital

A working capital allowance, in addition to capital expenditures, of US$2.17 million has been included in the cashflow model. This represents one to two months of operating costs, which would be incurred before the first revenue is realized. The working capital requirement is less than would normally be expected, as payment for the Sangdong Mine product is expected immediately after concentrate has been shipped.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Sustaining Capital

Additional sustaining capital of approximately US$5 million for each of the first three years has also been allowed for in the overall cashflow model. This is for ongoing primary development and continuation of the Sangdong gallery, as well as extension of the mine's underground.

&nbsp;&nbsp;&nbsp;&nbsp;I) Operating Costs

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Basis for Cost Estimation

Project operating costs are based on efficiencies and productivities that have been achieved within actual mine development work as well as using parameters considered generally achievable in South Korea. The overall performance objectives are conservative by European standards.

Project departmental operating costs were divided into two components: consumables/maintenance parts and labour. The consumables component includes all materials and parts needed for mining, processing and surface facilities and the operation and maintenance of equipment for these areas. Costs for consumables were obtained from multiple sources in Korea and Europe as well as from international suppliers. Costs for maintenance parts and consumables are based on prices provided by South Korean-based and international equipment suppliers. The total mine labour force complements and salaries were calculated on a total yearly basis. The labour component was combined with the materials component to produce the yearly departmental operating cost estimates.

The G&A cost components include the materials and supplies used by the administration and surface services groups. These costs comprise office supplies, computer supplies and computer and software upgrades, light vehicle and surface equipment operating and maintenance consumables, camp accommodation operational costs, business travel inside the Republic of Korea and internationally, fees for consultants and communications costs.

Labour costs and salaries for all services labour and mine staff have been estimated on a yearly total cost basis.

Critical operating cost components are based on the following long-term base case costs: (i) the diesel fuel price is assumed to be US$1.011/litre; and (ii) the electrical power cost is assumed to be US$113.8 per MW.

Labour costs for the operating period are based on the manpower schedules presented for each department and the associated labour costs. The costs include a burden component of approximately 35%. Labour rates are based on local rates where available and/or contractor costs in the region and country, for similar types of work. Where costs were not available, costs from other similar projects were used. The rates used include all cost and profit components payable to contractors. All costs are quoted in constant 2025 USD.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Mine Development

The unit mine development cost is summarized in Table 21-2 below.

**Table 21-2 – Mine Development Unit Cost**![](image_054.jpg)

This total development rate corresponds well with the actual costs during the last two months prior to the date of the Technical Report and includes the costs of explosives, reinforcement, fuel, drill steel and other consumables.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Stoping

Individual costs for mining have been estimated for manpower, equipment operating, maintenance and materials consumptions, based on a mining contractor developing and operating the Sangdong Mine. The average stope mining unit cost has been estimated as US$25.36 per tonne of ore, as summarized in Table 21-3 below.

**Table 21-3 – Stope Operating Costs**![](image_055.jpg)

Mine services and overheads costs include all other non-direct stoping costs for the mine. Mine services operating costs are associated with maintaining underground facilities and services (power, water supply, etc.), operating and maintaining ventilations fans, supplies for safety and training, including personal protective equipment and mine, rescue and operating and maintaining all support mobile and track haulage equipment used in the mine.

The DAF stoping method will mostly employ approximately 4.5 m x 4.5 m headings, whereas the PP-CAF stopes in the HW zone will mostly employ 6 m x 6 m headings. The proportions applied in the averaging process reflect the applied stoping methods for the current reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Processing

The total processing plant and tailings operating cost is estimated to be approximately US$15.55 per tonne of ore, as shown in Table 21-4 below. These costs have been derived from the updated processing configuration and corresponding estimates of reagents and power consumption, maintenance and unit costs reflecting 2025 USD.

**Table 21-4 – Processing Plant and Tailings Operating Costs**![](image_056.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. General and Administration
 Costs

The estimates for G&A costs encompass all operating costs associated with operating the offices and providing materials and supplies for staff functions. Administration operating costs include costs and taxes for maintaining the property in good standing, land taxes, and resource usage fees (water, etc.).

The total yearly G&A costs are estimated to be approximately US$3.2 million, as summarized in Table 21-5 below. Employee burdens account for approximately 35% of the total salary for each employee.

Annualized site G&A costs, at an annual production rate of 640,000 tonnes per year of ore, are estimated at US$5.02 per tonne (including environmental costs) of ore.

The mine management and administration components of G&A contemplate the employment of 27 people in this area, most of which would be staff positions. They would be responsible for the management, administration, personnel, accounting, purchasing needs and distribution of material to the operation, site security, health and safety, and environmental issues.

**Table 21-5 – Breakdown of G&A Costs**![](image_057.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Total Operating Costs

The estimated total average operating cost, over the life of the Sangdong Mine, to produce a 65% WO<sub>3</sub> concentrate from the mine, is approximately US$47.51 per tonne of ore, as summarized in Table 21-6 below.

**Table 21-6 – Project Operating Cost Summary**

![](image_058.jpg)

For the purpose of this estimate, value-added taxes and other taxes, along with import duty costs, have not been included. Exploration costs and all costs associated with areas beyond the property limits have also not been included.

II) Economic Analysis

The economic analysis presented below is based on a cashflow forecast on an annual basis using the current mineral reserves and corresponding annual production schedule for the life of the project. A summary of the life of mine plan parameters is shown in Table 22-1 below. The main assumed parameters for the economic analysis are summarized in Table 22-2 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Assumptions

All costs and economic results are reported in USD unless otherwise noted. APT pricing is also reported in USD.

**Table 22-1 – LOM Plan Summary**

![](image_059.jpg)

\*Excluding Year 14

**Table 22-2 – Assumed Parameters for Economic Analysis**

![](image_060.jpg)

Other economic factors used in the economic analysis include the following:

● discount rate of 5% (sensitivity using an 8% discount rate has been calculated);

● no inflation;

● numbers are presented on a 100% ownership basis and do not include management fees or financing costs;

● revenues, costs and taxes are calculated for each period in which they occur rather than actual outgoing/incoming payments;

● exclusion of all pre-development and sunk costs (i.e. exploration and resource definition costs, engineering fieldwork and studies costs, environmental baseline studies, etc.); and

● an exchange rate of KRW1,467 per US$1 has been applied to convert the relevant operating and capital cost items into USD.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Taxes & Royalties

A corporate income tax rate of 21% has been applied, along with a local income tax rate of 2.1%, which gives a total rate of 23.1%. These are applied to the total cashflow. An additional revenue tax has also been applied of 0.5%. AKTC incurred approximately US$15.34 million in capital expenditures in the year prior to production (Year -1). In addition, AKTC has recognized approximately US$4 million in tax loss carry-forwards and anticipates generating an additional US$3 million in tax loss carry-forwards during the 2025 fiscal year, subject to final tax filings and regulatory confirmation.

There are neither Royalties imposed on minerals by government agencies in South Korea nor by third parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Results

The overall results from the financial analysis have been evaluated in the form of net present value ("**NPV**"), internal rate of revenue ("**IRR**") and payback values, as shown in Table 22-3 below. NPVs have also been determined for the whole project, starting from project commencement in 2021, as well for part of the project from 2025 onwards ("**Onwards Only**").

The whole project is economically viable with an after-tax IRR of 49.5% and a net present value at 5% (NPV<sub>5%</sub>) of US$271.37 million. The Onwards-Only scenario is economically viable with a net present value at 5% (NPV<sub>5%</sub>) of US$343.7 million. Figure 22-1 below shows the projected cash flows resulting from the economic analysis. Table 22-3 below shows the detailed results of this evaluation.

**Figure 22-1 – Annual and Cumulative After-Tax Cash Flows; Onwards Only**

![](image_061.jpg)

**Table 22-3 – Summary of Sangdong Project Economic Results**

---

| | | |
|:---|:---|:---|
| Category | Unit | Value |
| Net Revenues | USD Million | 1078.2 |
| Operating Costs | USD Million | 389.5 |
| Cash Flow from Operations\*\*\* | USD Million | 688.7 |
| Cash Costs\*\*\*\* | USD/MTU | 126.8 |
| All-in Sustaining Costs\*\*\*\*\* | USD/MTU | 136.3 |
| Pre-Tax Project Cash Flows\* | USD Million | 643.8 |
| Pre-Tax NPV<sub>5%</sub>\* | USD Million | 447.4 |
| Pre-Tax IRR\*\* | % | 62.5 |
| After-Tax Project Cash Flows\* | USD Million | 493.6 |
| After-Tax NPV<sub>5%</sub>\* | USD Million | 343.7 |
| After-Tax IRR\*\* | % | 49.5 |
| After-Tax Payback\* | Years | 1.77 |

---

\* Onwards Only

\*\* Whole project

\*\*\* Cash Flow from Operations Formula: (Revenue – Operating Costs)

\*\*\*\* Cash Cost Formula: Operating Cost / Recovered MTUs

\*\*\*\*\* All-In Sustaining Cost Formula: (Operating Costs + Sustaining Capex (= Capex Y1-14)) / Recovered MTUs

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Sensitivities

A sensitivity analysis was performed to test the Onwards Only project value drivers on the project's net present value using a 5% discount rate. The result of this analysis is demonstrated in Table 22-4 below and can be visualized in Figure 22-2 below. The project proved to be most sensitive to changes in the APT price, followed by the combined operating expenses ("**Opex**") (mining costs, processing costs as well as G&A costs) followed by the individual Opex costs as well as the capital expenditures.

**Table 22-4 – After-tax NPV<sub>5%</sub> Sensitivity Results (Onward Only)**

![](image_062.jpg)

**Figure 22-2 – After-tax NPV<sub>5%</sub> Sensitivity (Onward Only)**

![](image_063.jpg)

The base case results (stemming from the assumptions shown in Table 22-2 above), as well as sensitivity results for different WO3 prices, of the derived project NPVs, are shown in Table 22-5 below. The lowest price used was US$370/mtu APT and the highest price was US$510/mtu APT.

**Table 22-5 – Sensitivities – NPVs Calculated at Different APT Prices**

![](image_064.jpg)

Key aspects of these results include:

● The results for prices for US$450/mtu APT, as compared to US$370/mtu, show an overall increase in the after-tax NPV<sub>5%</sub> of approximately 60%, and increase in the after-tax IRR from 35 to 49%.

● The results for prices for US$510/mtu APT, as compared to US$450mtu, show an overall increase in the after-tax NPV<sub>5%</sub>of approximately 28%, and increase in the after-IRR from 49 to 60%.

● For base case price of US$450/mtu APT, the post-tax NPV rises by approximately 22% in going from an 8% to a 5% discount rate. The Payback period is approximately 2 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Life-of-Mine Cash Flow
 Summary

The base case APT price used was US$450/mtu. The discounted cashflow analysis has been based on 2025 constant USD values. The production schedule is based on processing approximately 570 kt for Year 1 (effectively 2026), increasing to a steady state rate of 640 ktpa from Year 2 onwards. The economic model results for the base case scenario are shown in Table 22-6 below.

**Table 22-6 – Economic Analysis – Base Case Price US$450/mtu WO<sub>3</sub>**

![](image_065.jpg)

Exploration, Development, and Production

The principal existing and planned pre-production development is shown in Figure 16-29 below. This plan also includes backfill piping, electrical distribution system, water pumping system and ventilation fans.

The pre-production development program is based on starting with two work faces: one developing the ramp between the Sangdong and -1 Levels, and another continuing a new gallery through the Sangdong Level. The Sangdong Level gallery, a principal underground development horizon located at approximately 657m RL, provides access to key stoping zones including the F2, F3, and Main horizons. After finishing the development of the ramp, the new portal can be started on -1 Level from the surface and its connection to the -1 Level.

The Sangdong Level development will continue through a new gallery, to link to the ventilation shaft in the west sector of the mine. Preparation will also start for the stopes that will be accessed from Sangdong Level. One of these stope ramps will also connect up with the new portal on the -1 level. This will link the -1 Level with the Sangdong Level and will provide ventilation for the entire exploitable areas accessible from -1 Level.

Initial mining will focus on F2/F3/Main ore from the -1 Level and Sangdong levels.

Additional planned development includes completion of backfill distribution infrastructure, installation of a water pumping system, and construction of new air ventilation raise-bore holes and fans. Development access drives will be extended across the Main, F3, F2, and Halo horizons for future stoping. In selected areas, test stopes may be initiated to evaluate operational performance and backfill sequencing under full-scale conditions. Some access galleries will also be pre-fitted with services such as electrical distribution lines and dewatering pumps.

**Figure 16-29 – Principal Mine Development and Infrastructure**

**Other Mineral Projects**

The Sangdong Mine is the only mineral project on a property that is material to the Company for the purposes of NI 43-101. While the Company is also engaged in the operation and development of other mineral properties, including the Panasqueira Mine, Los Santos Mine, the Valtreixal Project, and the Sangdong Molybdenum Project (collectively, the "**Other Mineral Projects**", and with the Sangdong Mine, the "**Mineral Projects**"), none of these are considered material for the purposes of NI 43-101.

**Panasqueira Mine**

The Panasqueira Mine is located in Covilhã, Castelo Branco, Portugal, on the southern edge of the Serra da Estrela, a Portuguese mountain range, approximately 300 km northeast of Lisbon, the capital of Portugal, and 200 km southeast of the port city of Porto, Portugal, as shown in the figure below.

![](image_067.jpg)

The first prospecting license at Panasqueira was granted in 1886 and the first reference to wolframite was two years later. A mining company was founded in 1896 to mine tungsten at Panasqueira, and the underground Panasqueira Mine has been operating more or less continuously since that time, except for a brief period at the end of the Second World War and a second closure in the mid-1990s.

Almonty acquired the Panasqueira Mine in 2016 and owns a 100% indirect ownership interest in the Panasqueira Mine through its subsidiaries. Almonty's interest in the Panasqueira Mine is held by BTW, which owns 100% of the various rights and interests comprising the Panasqueira Mine and operates the mine. BTW is a wholly-owned direct subsidiary of Beralt Ventures Inc. ("**BVI**"), itself a wholly-owned direct subsidiary of Almonty.

The Company currently generates revenue from the Panasqueira Mine through the sale of tungsten, tin and copper concentrate pursuant to a variety of off-take, distribution and supply agreements. In 2024, production at the Panasqueira Mine increased by 9.1% compared to production achieved during the financial year 2023. Mined grades in the first quarter of 2025 for tungsten, copper and tin remained substantially similar to the mined grades during 2024 and the tungsten recovery rates remained stable from 2022 to the first quarter of 2025, averaging 80%.

The first pumping of tailings to the new tailings dam began during fiscal 2021 when the remaining capacity of the old tailings dam was fully consumed. The new tailings dam is designed for the second phase expansion for an additional four years by placing a surrounding 10-meter height retaining wall. A further phase three is now planned to increase capacity by a further 10 years. Thus, a total of 20 years additional capacity is anticipated after the completion of all three phases.

Almonty is also planning an extension of the Panasqueira Mine, the "**L4 Extension**", with the potential to extend the life of the mine and increase production capacity. The L4 Extension is focused on accessing deeper ore zones below the current mining levels, primarily starting from Level 3.

Key objectives of the L4 Extension include:

● **Increased Ore Throughput:** Plans to raise the processing capacity from 600,000 tonnes to 800,000 tonnes.

● **Improved Grade:** An anticipated increase in average head grade to 0.19%, enhancing overall economic output.

● **Exploration Synergies:** Advanced drilling campaigns will upgrade Inferred Mineral Resources, providing a clearer picture of the deposit's potential at depth.

On February 24, 2024, Almonty announced that it had commenced development of Level 4 at the Panasqueira Mine, with initial works focused on accessing deeper ore zones through exploration galleries and new ramps. The Panasqueira mining concession named "Contract of Exploitation No. C-18" is owned and operated by BTW. It covers an irregular, roughly "keyhole" shaped area trending NW-SE and is approximately 7.5 km in length and 1.5 km wide at the south-eastern end and 5.0km at the northwestern end where the mine workings and mill facilities are located. The total area of the Panasqueira concession, Contract of Exploitation No. C-18, is 1913.5983 ha, as shown in the figure below.

![](image_068.jpg)

The exploitation concession grants Almonty the right to exploit the geological resources in the area. The initial period of the concession is 60 years as from the date of signing the contract being December 16, 1992. The term may be extended for two successive periods of up to 30 years per extension.

**Los Santos Mine**

The Los Santos Mine is located approximately 50 km from Salamanca in western Spain, as shown in the figure below, and produces tungsten concentrate. The Los Santos Mine covers an area of 38 mining grids. The Los Santos Mine has been identified with significant underground mine potential and its underground mine potential was exploited in the deepening of the Los Santos Sur pit and Los Santos Sur South-West pit.

![](image_069.jpg)

Almonty has an exploitation concession over the Los Santos Mine which grants it the right to use the resource or resources marked within the perimeter of the Los Santos Mine. Almonty's concession term is for 30 years with an option to extend for another two periods of the same duration, with a maximum total length of over 45 years based on the Phase II expansion.

The Los Santos Mine has been in production since 2008. The mine was opened in June 2008 and commissioned in July 2010 by its former owner. Almonty acquired the Los Santos Mine in September 2011 through its wholly owned subsidiary Daytal.

Almonty owns a 100% indirect ownership interest in the Los Santos Mine through its subsidiaries. Almonty's interest in the Los Santos Mine is held by Daytal, which owns a 100% direct interest in the Los Santos Mine. Daytal is a wholly-owned direct subsidiary of 7887523 Canada Inc., itself a wholly-owned direct subsidiary of Almonty.

In February 2020, as a result of additional testing work, Almonty decided to place the Los Santos Mine into care and maintenance. The Company is planning to re-open operations in the near future once it has finalized plans to modify the plant's infrastructure, through an approximately €1,000,000 capital expenditure, which is expected to result in improved recovery rates from the future processing of its tailings inventory. Modifications to the processing plant to facilitate tailings reprocessing are expected to be implemented early 2026.

**Valtreixal Mine**

The Valtreixal Mine is a potential open pit operation, and is located in the northwest part of the Zamora province, in the Castilla de Leon region of Spain, as shown in the figure below. The Valtreixal Mine is located approximately 250 km from the Los Santos Mine and 185 km from Salamanca, Spain.

The Valtreixal Mine has been explored with underground development since the late 1800s, and limited tin exploitation occurred sporadically in the late 1900s. Between 2006 and 2012, SIEMCALSA conducted extensive underground and surface exploration, trenching, and mineralogical studies at the Valtreixal Mine. From 2013 to 2015, Daytal expanded upon this work through additional drilling, metallurgical testing, and environmental and planning studies. These efforts have been continued to date by Valtreixal Resources Spain S.L. ("**Valtreixal Resources**"), a wholly owned subsidiary of Almonty. The principal potential products are tungsten and tin.

![](image_070.jpg)

Almonty owns a 100% indirect ownership interest in the Valtreixal Mine through its subsidiaries. Almonty's interest in the Valtreixal Mine is held by Valtreixal Resources, which owns a 100% direct interest in the Valtreixal Mine. Valtreixal Resources is a wholly-owned direct subsidiary of 9046739 Canada Inc., itself a wholly-owned direct subsidiary of Almonty.

On June 10, 2020, the Municipality of Pedralba de la Pradería in Spain approved a new land classification for the Valtreixal Mine designating the property as suitable for extraction activities. The official publication of this reclassification appeared in the *Boletín Oficial de Castilla y León* (BOCYL) on September 4, 2020. This new land classification will allow the Company to complete the mining permitting process and to move forward with the completion of an open pit mine plan for the property. It is expected this permitting process to be finished in 2026.

**Sangdong Molybdenum Project**

The Sangdong molybdenum project (the "**Sangdong Molybdenum Project**") is located in Yeongwol County, Gangwon Province, South Korea, approximately 175 km east-southeast of Seoul. The project lies within the same licensed mining concession as the Sangdong Mine and is situated beneath the central tungsten skarn zones. It is focused on molybdenum-bearing quartz veins hosted in the Jangsan Quartzite formation.

Almonty holds a 100% indirect ownership interest in the Sangdong Molybdenum Project through its subsidiary AKTC, which holds the mining rights. AKTC is a wholly owned subsidiary of Woulfe Mining Corp., which is wholly owned by Almonty.

On January 29, 2025, Almonty announced that it had entered into an exclusive offtake agreement with SeAH M&S, the largest processor of molybdenum products in South Korea and one of the largest molybdenum oxide smelters globally. Under the agreement, SeAH has committed to purchase 100% of the molybdenum concentrate produced from the Sangdong Molybdenum Project over the life of the mine. The agreement includes a floor price of US$19.00 per pound of contained molybdenum and is structured as a long-term supply arrangement. The project is fully permitted for both mining and environmental activities. SeAH is also constructing a US$110 million manufacturing facility in Temple, Texas.

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

 

*Each prospective investor should read the following in conjunction with the "Prospectus Summary—Summary Consolidated Financial Information" section of this prospectus, and our audited consolidated financial statements for the years ended December 31, 2024 and 2023 and our unaudited condensed interim consolidated financial statements for the three months ended March 31, 2025, which are contained elsewhere, and are incorporated by reference, in this prospectus. Our consolidated financial statements have been prepared in accordance with IFRS. The forward-looking statements in this discussion regarding our industry, our expectations regarding our future performance, liquidity and capital resources and other non-historical statements in this discussion include numerous risks and uncertainties, as described in the "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" sections of this prospectus. Our actual results may differ materially from those contained in any forward-looking statements. Each prospective investor should read this discussion completely and with the understanding that our actual future results may be materially different from what we expect.*

 

*This Management's Discussion and Analysis of Financial Condition and Results of Operations presents information contained in our documents publicly disclosed in Canada and, in particular, information contained in our amended management's discussion and analysis for the three months ended March 31, 2025, and our management's discussion and analysis for the year ended December 31, 2024, which are incorporated by reference in this prospectus.*

**Overview**

Almonty is a publicly traded company listed on the TSX, under the symbol "AII" and listed on the ASX, under the symbol "AII". The principal business of Almonty is the mining, processing and shipping of tungsten concentrate from the Los Santos Mine, the processing and shipping of tungsten concentrate from the Panasqueira Mine, as well as the development of the Sangdong Mine and the evaluation of the Valtreixal Mine.

The Los Santos Mine was acquired by Almonty in September 2011 and is located approximately 50 kilometres from Salamanca in western Spain and produces tungsten concentrate. The Panasqueira Mine, which has been in production since 1896 and is located approximately 260 kilometres northeast of Lisbon, Portugal, was acquired in January 2016. The Sangdong Mine, which was historically one of the largest tungsten mines in the world and one of the few long-life, high-grade tungsten deposits outside of China, was acquired by Almonty in September 2015. Almonty also owns a 100% interest in the Valtreixal Mine in northwestern Spain, having exercised its option to acquire the remaining ownership in the Valtreixal Mine on December 21, 2016.

On June 4, 2015, Almonty acquired an 8% interest in Woulfe and, through the acquisition of convertible debentures in Woulfe, gained control over Woulfe with the ability to nominate a majority of the board members. On July 7, 2015, Almonty and Woulfe entered into an arrangement agreement in respect of the acquisition by Almonty of all of the issued and outstanding shares of Woulfe that it did not already own by way of a plan of arrangement under the *Business Corporations Act* (British Columbia) (the "**Woulfe Plan of Arrangement**"). On August 21, 2015, Woulfe shareholders approved the Woulfe Plan of Arrangement. On September 10, 2015, Almonty completed the Woulfe Plan of Arrangement and acquired all of the shares of Woulfe that it did not already own, leading to Almonty having a 100% ownership interest in Woulfe. The principal asset of Woulfe is the Sangdong Mine.

On January 6, 2016, Almonty acquired 100% of the issued and outstanding shares of BVI from Sojitz Tungsten Resources Inc. for €1.00. In connection therewith, Almonty acquired and purchased €12,260 in aggregate principal amount of debt owed by BTW, a wholly-owned subsidiary of BVI, to Sojitz Corporation of Japan in exchange for a cash payment of €1,000 on closing and a promissory note issued by Almonty in the principal amount of €500, bearing interest at 4% per annum, which matured December 29, 2017 and was fully paid by the Company. BVI, through its wholly owned subsidiaries, is the 100% owner of the Panasqueira Mine.

On December 21, 2016, Almonty exercised its option to acquire the remaining 49% of the Valtreixal Mine it did not already own for payment of €1.5 million ($2.2 million). Almonty now owns a 100% interest in the Valtreixal Mine.

During February 2020, the Company made the decision to place the Los Santos Mine into care and maintenance so as to allow the Company to focus its efforts on finalizing the proposed project financing for the Sangdong Mine and to assess and complete a restructuring initiative that will involve an approximate €1 million capital expenditure expected to lead to a significant increase in the recovery rate of WO<sub>3</sub> from the processing of the Company's tailings inventory.

During June 2020, the Company received, from the Municipality of Pedralba de la Paraderia in Spain, a new land classification for its Valtreixal Property whereby the property is now deemed to be suitable for extraction activity. The Company's Valtreixal Property is located approximately 250 kilometres from the Company's wholly-owned Los Santos Mine in Spain.

This new land classification will now allow the Company to complete the mining permitting process and to move forward with the completion of an open-pit mine plan for the property.

See "*Summary Consolidated Financial Information*" in this prospectus for summary consolidated financial information for the three month periods ended March 31, 2025 and 2024 and the fiscal years ended December 31, 2024 and 2023.

**Operating Results – Three Months Ended March 31, 2025**

The following financial information is for the three months ended March 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **Three months ended**<br>**31-Mar-25**<br>**$'000** | **Three months ended**<br>**31-Mar-24**<br>**$'000** |
| Gross Revenue | 7908 | 7824 |
| Mine production costs | 6588 | 6665 |
| Care and maintenance | 280 | 263 |
| Depreciation and amortization | 288 | 290 |
| Income from mining operations | 752 | 606 |
| General and administrative costs | 3406 | 1475 |
| Non-cash compensation costs | 851 | 392 |
| Loss before the under noted items | (3505) | (1261) |
| Interest expense | 1206 | 1423 |
| Loss on valuation of embedded derivative liabilities | 2909 | 81 |
| Foreign exchange loss | 1100 | 903 |
| Tax provision | 92 | 5 |
| **Loss before other item** | **(8812)** | **(3673)** |
| Loss on valuation of warrant liabilities | 25810 | 109 |
| Net loss for the period | (34622) | (3782) |
| Pro forma income (loss) per share - basic <sup>(1)</sup> | $(0.20) | $(0.03) |
| Pro forma income (loss) per share - diluted <sup>(1)</sup> | $(0.20) | $(0.03) |
| Dividends | - | - |
| Cash flows provided by (used in) operating activities | (4401) | (1121) |
| Cash flows provided by (used in) investing activities | (7802) | (7368) |
| Cash flows provided by (used in) financing activities | 21423 | 3144 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) As
 adjusted figures are adjusted to reflect the Share Consolidation.

The following table sets forth a summary of the Company's consolidated financial position as of the dates presented:

---

| | | |
|:---|:---|:---|
|  | **31-Mar-25**<br> **$'000** | **31-Dec-24**<br> **$'000** |
| Cash | 16985 | 7830 |
| Total assets | 279041 | 256349 |
| Long-term debt | 171612 | 158022 |
| Shareholders' equity | 18102 | 39073 |
| <u>Other</u> |  |  |
| Pro forma outstanding shares ('000) <sup>(1)</sup> | 188521 | 176947 |
| Pro forma weighted average outstanding shares ('000) |  |  |
| &nbsp;&nbsp;&nbsp;Basic <sup>(1)</sup> | 184210 | 169357 |
| &nbsp;&nbsp;&nbsp;Fully diluted <sup>(1)</sup> | 184210 | 169357 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) As
 adjusted figures are adjusted to reflect the Share Consolidation.

**Operating Results – Fiscal Year Ended December 31, 2024**

The following financial information is for the years ended December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | **Year ended**<br>**31-Dec-24**<br>**$'000** | **Year ended**<br>**31-Dec-23**<br>**$'000** |
| Gross Revenue | 28836 | 22510 |
| Mine production costs | 24679 | 19328 |
| Care and maintenance | 1067 | 1022 |
| Depreciation and amortization | 1120 | 1077 |
| Income from mining operations | 1970 | 1083 |
| General and administrative costs | 6153 | 5816 |
| Non-cash compensation costs | 2734 | 1141 |
| Loss before the under noted items | (6917) | (5874) |
| Interest expense | 4568 | 4305 |
| Financing fees |  | 739 |
| Loss (gain) on valuation of embedded derivative liabilities | 630 | (432) |
| Loss (gain) on valuation of warrant liabilities | 2032 | (1227) |
| Foreign exchange loss (gain) | 1779 | (489) |
| Tax provision | 372 | 67 |
| **Net loss for the period** | (16298) | (8837) |
| Pro forma income (loss) per share - basic <sup>(1)</sup> | $(0.09) | $(0.06) |
| Pro forma income (loss) per share - diluted <sup>(1)</sup> | $(0.09) | $(0.06) |
| Dividends | - | - |
| Cash flows provided by (used in) operating activities | (7498) | (11698) |
| Cash flows provided by (used in) investing activities | (36231) | (17492) |
| Cash flows provided by (used in) financing activities | 29371 | 43371 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) As
 adjusted figures are adjusted to reflect the Share Consolidation.

The following table sets forth a summary of the Company's consolidated financial position as of the dates presented:

---

| | | |
|:---|:---|:---|
|  | **31-Dec-24**<br> **$'000** | **31-Dec-23**<br> **$'000** |
| Cash | 7830 | 22019 |
| Total assets | 256349 | 235334 |
| Long-term debt | 158022 | 130067 |
| Shareholders' equity | 39073 | 48508 |
| Other |  |  |
| Pro forma outstanding shares ('000) <sup>(1)</sup> | 176947 | 155926 |
| Pro forma weighted average outstanding shares ('000) |  |  |
| &nbsp;&nbsp;&nbsp; Basic <sup>(1)</sup> | 169357 | 151113 |
| &nbsp;&nbsp;&nbsp; Fully diluted <sup>(1)</sup> | 169357 | 151113 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) As adjusted figures are
 adjusted to reflect the Share Consolidation.

**Liquidity and Capital Resources**

As at March 31, 2025, the Company held cash and receivables of $20.153 million (December 31, 2024 - $10.757 million) (of which $3.506 million (December 31, 2024 - $2.170 million) represented cash restricted for use for the development of the Sangdong Mine) and a working capital deficiency of $16.7 million (December 31, 2024 - $30.538 million). In addition, in conjunction with the closing of its US$75.1 million project financing with KfW in July 2022, the Company received the first drawdown of US$12.8 million and a second drawdown of US$4.1 million in August 2022, with a third drawdown of US$9.8 million received during November 2022, a fourth drawdown of US$5.6 million received during April 2023, a fifth drawdown of US$9.8 million received during August 2023, a sixth drawdown of US$13.68 million received in November 2023, a seventh drawdown of US$5.01 million received in July 2024, an eighth drawdown of US$5.63 million received in July 2024 and a final drawdown of US$0.906 million received in January 2025.

The Company believes that, based on the current price of APT and its forecast production schedule for fiscal 2025 and into Q1 of 2025, it has the ability to generate sufficient cash flow to meet its current obligations at its producing mine. The current price of APT has reached levels where it is sufficient to cover the Company's cash operating costs on existing production volumes. Should the Company no longer be able to produce tungsten concentrate in sufficient quantity, then the Company may not be able to meet its current and long-term obligations. Outside of abiding by (i) Spanish law requirements on minimum capital adequacy at Valtreixal Resources Spain SL and Daytal, (ii) Korean law requirements on minimum capital adequacy at AKTC, and (iii) Portuguese law requirements on minimum capital adequacy at BTW, there is no legal restriction on Almonty's ability to repatriate capital from its subsidiaries.

The Company has $171.612 million in long-term debt as at March 31, 2025 ($158.022 million as at December 31, 2024), of which $17.711 million is the current portion ($21.894 million as at December 31, 2024), comprised of individual facilities with Spanish domiciled banks, one facility with an Austrian bank, promissory notes owed to a shareholder, convertible loans and drawdowns on the KfW loan facility as at March 31, 2025 (see Note 8 of the Company's Q1-2025 Interim Financial Statements for additional details regarding each component of long-term debt).

**USE OF PROCEEDS**

The net proceeds to the Company from the Offering, after deducting the Underwriters' Fee and the estimated expenses of the Offering (estimated to be approximately US$●) are expected to be approximately US$● million, or approximately US$● million if the Over-Allotment Option is exercised in full.

The proposed use of the net proceeds is described in detail below. **The below noted allocation represents the Company's intentions with respect to its use of proceeds based on current knowledge, planning and expectations of management of the Company. Actual expenditures may differ from the estimates set forth below. There may be circumstances where, for sound business reasons, a reallocation of the net proceeds may be deemed prudent or necessary. The actual amount that the Company spends in connection with each of the intended uses of proceeds may vary significantly from the amounts specified below and will depend on a number of factors, including those listed under the heading "*Risk Factors*" in this prospectus.**

Although the Company expects the Sangdong Mine to generate positive cash flow once in commercial production, the Company is not expecting to receive, directly or indirectly, cash flow from such production (whether by way of dividends or otherwise) until the fourth quarter of 2025, an underlying assumption in the following Use of Proceeds. The Company intends to use the net proceeds of the Offering for the following principal purposes:

---

| | | |
|:---|:---|:---|
|  | **Net Proceeds**<br> **(US$ Millions)** | **Net Proceeds (including the Over-Allotment Option)**<br> **(US$ Millions)** |
| (I) Development of the Tungsten Oxide Facility | ● | ● |
| &nbsp;&nbsp;&nbsp;1. Early-stage development activities | ● | ● |
| &nbsp;&nbsp;&nbsp;2. Development and construction of the Tungsten Oxide Facility | ● | ● |
| (II) Working capital and general corporate purposes <sup>(1)</sup> | ● | ● |
| **Total:** | 75 | 86.25  |

---

(1) Funds included in general
 corporate purposes may be allocated to corporate expenses, business development, potential
 future acquisitions, and to other purposes.

If the Over-Allotment Option is exercised in whole or in part, the Company intends to use the additional net proceeds from such exercise for the development of the Tungsten Oxide Facility (up to US$● million (or up to ●% of the net proceeds)) and for working capital and general corporate purposes (up to US$● million (or up to ●% of the net proceeds)).

**Principal Purposes**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I) Development of the Tungsten
 Oxide Facility

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Early-Stage Development
 Activities

The Company intends to use up to US$● million (or up to ●%) of the net proceeds of the Offering to fund remaining early-stage development activities for the Tungsten Oxide Facility. These activities include advanced engineering, economic assessments, and preparatory work necessary to position the project for construction readiness. The Company intends to pursue project-level debt financing to fund the balance of the Facility's capital costs. The total proceeds allocated to "(I) Development of the Tungsten Oxide Facility" from the Offering are expected to satisfy the equity contribution typically required for such financing. The early-stage development funding is expected to support the project through the period leading up to the execution and availability of the anticipated debt facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Development and Construction
 of the Tungsten Oxide Facility

The Company intends to use up to US$● million (or up to ●%) of the net proceeds of the Offering toward the development of the Tungsten Oxide Facility, a nano tungsten oxide downstream processing plant in South Korea, near the Sangdong Mine. As described below, this amount is expected to represent approximately ●% of the total estimated project cost (including contingency amounts) and is expected to fund (i) the remaining early-stage development activities and (ii) the initial construction and development, with the remainder anticipated costs of construction and development to be funded through a dedicated project financing facility and other financing arrangements. To that end, the Company has notably entered into a firm, non-binding letter of intent with KfW, dated January 12, 2022, for the provision of up to US$50 million in project financing and is expecting to secure the remaining capital requirements through additional financing arrangements, which may include further debt, equity, or strategic partnerships, subject to prevailing market conditions and ongoing evaluation.

Project Status

To date, the Company has completed a Pre-Basic Engineering Study in March 2025 with UTG Universaltechnik GmbH, forming the basis for current design and cost planning (the "**Engineering Study**"). The Tungsten Oxide Facility is to be located in Yeongwol County on a greenfield site, secured under a memorandum of understanding with the local government, as announced on July 11, 2024. The plant will process scheelite and wolframite concentrates into high-purity WO₃, with an initial nameplate production capacity of 4,000 tonnes per year and the option to scale up to 6,000 tonnes per year.

As of the date hereof, the Tungsten Oxide Facility remains in the pre-construction stage and is not yet material to the Company's current operations. No significant capital expenditure has been incurred to date. The Company intends to use a portion of the Offering proceeds (i) to finalize early-stage development activities, including advanced engineering work, economic analysis, and other preparatory steps toward potential future construction and production (approximately US$● million) and (ii) to begin the construction and development of the Tungsten Oxide Facility (approximately US$● million).

Description of the Tungsten Oxide Facility

The Tungsten Oxide Facility will be a vertically integrated nano tungsten oxide downstream processing plant which will process the tungsten oxide from the Sangdong Mine to supply the South Korean battery anode and cathode manufacturing industry, reducing the costs of such processing by avoiding the need to export the tungsten oxide outside of South Korea for processing and reimporting it for sale to local customers.

The Company expects to source feedstock for the Tungsten Oxide Facility from other tungsten producers as well as its existing and future mining operations. This includes the planned Phase II expansion of the Sangdong Mine, which is currently expected to serve as the primary initial source. The Company may also evaluate the use of concentrate from the Panasqueira Mine, whether from current output or potential future expansion, as well as material from other Company-owned assets in Spain, subject to further technical and economic assessment. As of the date hereof, no final sourcing decisions have been made beyond the expected production from Phase II.

Engineering, Procurement, and Construction

The Company anticipates that engineering, procurement, and construction ("**EPC**") activities for the Tungsten Oxide Facility will be carried out in successive, interdependent phases.

The initial phase is expected to comprise detailed engineering, which includes process, electrical, civil, and automation design for all core systems identified in the Engineering Study, such as the digestion and purification systems, extraction and crystallization units, and the WO<sub>3</sub> calcination process. In parallel, the Company plans to conduct formal tender processes for long-lead and critical-path equipment to ensure timely delivery from qualified suppliers, with a strong focus on European-origin equipment and systems. As part of the procurement phase, the Company intends to negotiate framework agreements for major process units, instrumentation, and construction materials. Once delivered, these items will be installed consistent with a project schedule designed to allow systematic handover between engineering, mechanical completion, and commissioning. Mechanical completion will then transition to a staged system verification, where operational readiness checks will be performed the Tungsten Oxide Facility. Once these checks are complete, the Company plans to undertake a comprehensive commissioning program to verify throughput rates, production quality, and environmental management systems, including emissions control and wastewater treatment processes.

Throughout the EPC process, the Company will coordinate with local authorities to satisfy applicable permit requirements and ensure alignment with any region-specific engineering or construction standards. Upon commissioning, the facility is expected to operate 24 hours per day, 310 days per year, at an approximate process efficiency of 98%.

The construction and commissioning period is expected to take approximately two to three years, with operations targeted during 2028, subject to the timely completion of permitting and financing arrangements.

Capital Cost Estimate

Based on the Engineering Study, the estimated capital cost of the Tungsten Oxide Facility is approximately €119.75 million (approximately US$140.3 million<sup>4</sup>), excluding remaining early-stage development activities and contingencies. This base estimate includes site development, core processing equipment, utility systems, control and automation infrastructure, building construction, and detailed project and construction management. A portion of the estimate also reflects allowances for defined but presently unspecified cost items such as localized adaptations or final scope refinements, based on industry-standard engineering practices.

---

| | |
|:---|:---|
| **Category** | **Estimated Costs <br> (€ Millions)** |
| Site & Infrastructure | **13.72** |
| Construction (civil & building shell) | **22.69** |
| Building Technology (HVAC, Electrical/IT) | **10.06** |
| Equipment (process + utility) | **35.15** |
| Process and Utility Piping | **12.36** |
| Automation & Control Systems | **3.33** |
| Sustainability Components | **0.42** |
| Engineering, Project & Construction Management | **20.71** |
| Start-Up Costs | **1.31** |
| **Subtotal** | **119.75** |

---

Approximately 60% of the base cost is supported by supplier quotations or mass-based pricing models. Final capital requirements may vary based on exchange rates, final procurement outcomes, and localized implementation adjustments.

In the event of the exercise of the Over-Allotment Option in full, the Company intends to allocate an additional US$● million towards the development and construction of the Tungsten Oxide Facility.

***II) Working capital, corporate expenses, business development, potential future acquisitions and other purposes***

Up to US$● (or up to ●%) of the net proceeds of the Offering will be used primarily for working capital, corporate expenses, business development, potential future acquisitions and other purposes.

Following completion of the Offering, the Company will have working capital of approximately $●. The Company had negative cash flow from operating activities for the three-month period ended March 31, 2025 of approximately $4.4 million. The Company also had negative operating cash flow for the year ended December 31, 2024. The Company anticipates that it will continue to have negative cash flow from operating activities as it finalizes the development and construction of the Sangdong Mine and achieves commercial production, and a portion of the net proceeds of the Offering may thus be used to fund anticipated negative cash flows in future periods. The Company wants to leverage the net proceeds of the Offering in pursuit of its ongoing general business objective of achieving positive operating cash flows. To that end, a substantial portion of the net proceeds of the Offering are expected to be allocated to the continuing development of the Tungsten Oxide Facility, as discussed above. See "*Risk Factors—Negative Cash Flows From Operations*". In the event of the exercise of the Over-Allotment Option in full, the Company intends to allocate an additional US$● million towards working capital, corporate expenses, business development, potential future acquisitions and other purposes.

**Variations**

The expected use of the net proceeds from the Offering and, if exercised, the Over-Allotment Option, set out above represents our intentions based upon our current plans and business conditions. While the Company believes that the allocation described above is reasonable, management of the Company will retain a degree of discretion in specifically allocating the net proceeds of the Offering, and, if exercised, the Over-Allotment Option, and the Company's actual use of the net proceeds may vary depending on its operating and capital needs as they may evolve or change over time. Management may elect to allocate net proceeds differently from that described herein if they believe it would be in the Company's best interests to do so, and shareholders of the Company will have to rely upon the judgment of management with respect to the use of proceeds.

<sup>4</sup> Figure is provided using the exchange rate of €1.1724 to US$1 published by the Federal Reserve of the United States for June 27, 2025, being the last published rate prior to the filing of this Registration Statement.

**CONSOLIDATED CAPITALIZATION**

Other than as may be described in this prospectus or the documents incorporated herein, since March 31, 2025, there have been no material changes in our consolidated share and loan capital. The following table sets forth our cash and cash equivalents, long-term debt and financial liabilities and capitalization as of March 31, 2025 on an actual basis and after giving effect to the Offering. This table should be read in conjunction with the Q1 Financial Statements and Q1 MD&A, which are incorporated by reference herein.

---

| | | | |
|:---|:---|:---|:---|
|  | **As at March 31,<br> 2025 before giving<br> effect to the <br> Offering** | &nbsp;&nbsp;&nbsp;**As at March 31,<br> 2025 after giving<br> effect to the<br> Offering <sup>(1)(2)</sup>** | &nbsp;&nbsp;&nbsp;**As at March 31,<br> 2025 after giving<br> effect to the<br> Offering <sup>(1)(3)</sup>** |
| Cash and equivalents | &nbsp;&nbsp;C$17.0 million | &nbsp;&nbsp;C$● million | &nbsp;&nbsp;C$● million |
| Long term financial liabilities (lease obligations and reclamation) | &nbsp;&nbsp;C$25.7 million | &nbsp;&nbsp;C$● million | &nbsp;&nbsp;C$● million |
| Debentures | &nbsp;&nbsp;C$27.2 million | &nbsp;&nbsp;C$● million | &nbsp;&nbsp;C$● million |
| Long-term debt | &nbsp;&nbsp;C$153.9 million | &nbsp;&nbsp;C$● million | &nbsp;&nbsp;C$● million |
| Outstanding Common Shares (unlimited authorized) <sup>(4)</sup> | &nbsp;&nbsp; 195860805 |  |  |
| Share capital (unlimited authorized) | &nbsp;&nbsp;C$157.4 million | &nbsp;&nbsp;C$● million | &nbsp;&nbsp;C$● million |

---

(1) After deducting the Underwriters' Fee and
 estimated expenses of each of the Offering payable by the Company.

(2) Assuming no exercise of the Over-Allotment Option.

(3) Assuming full exercise of the Over-Allotment Option.

(4) Adjusted to reflect the Share Consolidation.

The foregoing table excludes:

● 15,897,956 Common Shares issuable upon the exercise of outstanding Common Share options at a weighted average exercise price of C$1.41 per share;

● 3,366,661 Common Shares issuable upon the exercise of outstanding Restricted Share Units at a weighted average exercise price of C$1.63 per share;

● 18,068,716 unallocated Common Shares reserved for future issuance under our Omnibus Equity Incentive Plan dated effective as of April 30, 2025, the Third Amended and Restated Incentive Stock Option Plan or the Restricted Share Unit Plan;

● 24,648,671 Common Shares issuable upon the exercise of convertible debentures at a weighted average exercise price of C$1.09 per share; and

● 17,789,846 Common Shares issuable upon the exercise of warrants and CDI options at a weighted average exercise price of C$1.33 per share.

Certain convertible debentures, warrants, and CDI options carry exercise prices designated in U.S. dollars, Euros, or Australian dollars. To determine the weighted average exercise prices set out above, the respective exercise price of such convertible debentures, warrants, and CDI options were converted into Canadian dollars using the exchange rate published by the Bank of Canada on July 4, 2025.

**DESCRIPTION OF SHARE CAPITAL**

Our authorized share capital consists of an unlimited number of Common Shares. The Common Shares do not have a par value. As of the date of this prospectus, 195,860,805 Common Shares are issued and outstanding.

**Common Shares**

Holders of the Common Shares are entitled to receive notice of and to attend all meetings of the shareholders of the Company. Each Common Share carries one vote. In the event of the liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, or any other distribution of its assets among its shareholders for the purpose of winding up its affairs, the holders of the Common Shares are entitled to receive the remaining property and assets of the Company on a pro rata basis. The shareholders are entitled to receive pro rata such dividends as may be declared by the Board out of funds legally available for such purpose. No Common Shares have been issued subject to call or assessment. There are no pre-emptive or conversion rights, and no provisions for redemption, retraction, purchase or cancellation, surrender, sinking fund or purchase fund.

**Dividend Policy**

The Company has not paid any dividends on the Common Shares for the past three most recently completed fiscal years. Any future determination to pay dividends will be at the discretion of the Board and will depend upon the Company's results of operations, capital requirements and other relevant factors. The Company has no present intention of paying dividends on its Common Shares, as it anticipates that all available funds will be invested to finance the growth of its business for the immediate future.

**Share **Consolidation**

On July 3, 2025, we filed articles of amendment for the purpose of effecting the Share Consolidation on the basis that each one and a half outstanding Common Shares became one post-consolidated Common Share. No fractional Common Shares have been issued in connection with such consolidation and, in the event that a shareholder would otherwise be entitled to a fractional Common Share upon such consolidation, such shareholder had such fractional share cancelled. Except where otherwise noted, all information in this prospectus and the documents incorporated by reference dated on or after the date of the share consolidation gives effect to such share consolidation.

**Principal Shareholders**

To our knowledge, the only persons who beneficially own Common Shares conferring more than 10% of the voting rights attached to our issued and outstanding Common Shares are GTP, which currently beneficially own approximately 25,433,037 Common Shares (on a post-consolidated basis), or 13.59% of our Common Shares (on a post-consolidated basis), and Deutsche Rohstoff AG, which currently beneficially own approximately 20,590,951 Common Shares (on a post-consolidated basis), or 11.00% of our Common Shares (on a post-consolidated basis).

**PRIOR SALES**

The Company issued the following Common Shares and securities convertible into Common Shares during the 12-month period prior to the date hereof.

**Common Shares**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date of Issue** | **Number of Shares Issued <br> Actual** | **Price Per Share <br> Actual** | **Number of Shares Issued <br> As Adjusted <sup>(1)</sup>** | **Price Per Share <br> As Adjusted <sup>(1)</sup>** |
| December 23, 2024 | 2000000 | C$0.82 | 1333333 | C$1.23 |
| December 23, 2024 | 230469 | C$0.7683 | 153646 | C$1.15245 |
| December 30, 2024 | 4,583,334 (underlying CDIs) | A$0.9 | 3,055,556 (underlying CDIs) | A$1.35 |
| January 14, 2025 | 7,500,000 (underlying CDIs) | A$0.9 | 5,000,000 (underlying CDIs) | A$1.35 |
| January 24, 2025 | 100000 | C$0.9 | 66666 | C$1.35 |
| January 31, 2025 | 2527000 | C$0.82 | 1684666 | C$1.23 |
| February 6, 2025 | 3,333,333 (underlying CDIs) | A$0.9 | 2,222,222 (underlying CDIs) | A$1.35 |
| February 10, 2025 | 25000 | C$0.33 | 16666 | C$0.495 |
| February 11, 2025 | 100,000 (underlying CDIs) | A$1.25 | 66,666 (underlying CDIs) | A$1.875 |
| February 18, 2025 | 50000 | C$0.52 | 33333 | C$0.78 |
| February 20, 2025 | 50,000 (underlying CDIs) | A$1.25 | 33,333 (underlying CDIs) | A$1.875 |
| February 28, 2025 | 100,000 (underlying CDIs) | A$1.25 | 66,666 (underlying CDIs) | A$1.875 |
| February 28, 2025 | 100,000 (underlying CDIs) | A$0.84 | 66,666 (underlying CDIs) | A$1.26 |
| March 5, 2025 | 100,000 (underlying CDIs) | A$1.25 | 66,666 (underlying CDIs) | A$1.875 |
| March 5, 2025 | 490,197 (underlying CDIs) | A$0.69 | 326,798 (underlying CDIs) | A$1.035 |
| March 6, 2026 | 222,222 (underlying CDIs) | A$1.25 | 148,148 (underlying CDIs) | A$1.875 |
| March 7, 2025 | 555,555 (underlying CDIs) | A$1.25 | 370,370 (underlying CDIs) | A$1.875 |
| March 24, 2025 | 30000 | C$0.66 | 20000 | C$0.99 |
| March 25, 2025 | 171,000 (underlying CDIs) | A$0.84 | 114,000 (underlying CDIs) | A$1.26 |
| March 25, 2025 | 1,200,000 (underlying CDIs) | A$1.25 | 800,000 (underlying CDIs) | A$1.875 |
| March 26, 2025 | 312024 | C$0.65 | 208016 | C$0.975 |
| March 26, 2025 | 168630 | C$0.69 | 112420 | C$1.035 |
| March 28, 2025 | 225,000 (underlying CDIs) | A$0.84 | 150,000 (underlying CDIs) | A$1.26 |
| April 1, 2025 | 42142 | C$0.33 | 28094 | C$0.495 |
| April 1, 2025 | 150476 | C$0.52 | 100317 | C$0.78 |
| April 1, 2025 | 34047 | C$0.67 | 22698 | C$1.005 |
| April 1, 2025 | 137142 | C$0.66 | 91428 | C$0.99 |
| April 4, 2025 | 75,000 (underlying CDIs) | A$0.84 | 50,000 (underlying CDIs) | A$1.26 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date of Issue** | **Number of Shares Issued <br> Actual** | **Price Per Share <br> Actual** | **Number of Shares Issued <br> As Adjusted <sup>(1)</sup>** | **Price Per Share <br> As Adjusted <sup>(1)</sup>** |
| April 11, 2025 | 1,666,667 (underlying CDIs) | A$1.25 | 1,111,111 (underlying CDIs) | A$1.875 |
| April 16, 2025 | 813400 | C$2.34 | 542266 | C$3.51 |
| April 16, 2025 | 100,000 (underlying CDIs) | A$1.25 | 66,666 (underlying CDIs) | A$1.875 |
| April 29, 2025 | 125,000 (underlying CDIs) | A$0.84 | 83,333 (underlying CDIs) | A$1.26 |
| May 5, 2025 | 1,859,11 (underlying CDIs)3 | A$0.84 | 1,239,408 (underlying CDIs) | A$1.26 |
| May 5, 2025 | 75000 | C$0.7 | 50000 | C$1.05 |
| May 8, 2025 | 150,000 (underlying CDIs) | A$0.84 | 100,000 (underlying CDIs) | A$1.26 |
| May 13, 2025 | 180722 | US$0.83 | 120481 | US$1.245 |
| May 20, 2025 | 125,000 (underlying CDIs) | A$1.25 | 83,333 (underlying CDIs) | A$1.875 |
| May 21, 2025 | 200,000 (underlying CDIs) | A$1.25 | 133,333 (underlying CDIs) | A$1.875 |
| May 27, 2025 | 177,500 (underlying CDIs) | A$1.25 | 118,333 (underlying CDIs) | A$1.875 |
| June 3, 2025 | 67,500 (underlying CDIs) | A$0.84 | 45,000 (underlying CDIs) | A$1.26 |
| June 3, 2025 | 666,667 (underlying CDIs) | A$1.25 | 444,444 (underlying CDIs) | A$1.875 |
| June 4, 2025 | 700,000 (underlying CDIs) | A$1.25 | 466,666 (underlying CDIs) | A$1.875 |
| June 5, 2025 | 1190476 | US$0.84 | 793650 | US$1.26 |
| June 9, 2025 | 133,334 (underlying CDIs) | A$1.25 | 88,889 (underlying CDIs) | A$1.875 |
| June 10, 2025 | 40153 | C$0.64 | 26768 | C$0.96 |
| June 12, 2025 | 111,111 (underlying CDIs) | A$1.25 | 74,074 (underlying CDIs) | A$1.875 |
| June 13, 2025 | 150000 | C$1.14 | 100000 | C$1.71 |
| June 13, 2025 | 10000 | C$0.74 | 6666 | C$1.11 |
| June 13, 2025 | 450,000 (underlying CDIs) | A$1.25 | 300,000 (underlying CDIs) | A$1.875 |
| June 18, 2025 | 200,000 (underlying CDIs) | A$0.84 | 133,333 (underlying CDIs) | A$1.26 |
| June 23, 2025 | 60000 | C$1.14 | 40000 | C$1.71 |
| June 23, 2025 | 40031 | C$0.64 | 26687 | C$0.96 |
| June 25, 2025 | 500,000 (underlying CDIs) | A$1.25 | 333,333 (underlying CDIs) | A$1.875 |
| June 27, 2025 | 650,000 (underlying CDIs) | A$1.25 | 433,333 (underlying CDIs) | A$1.875 |
| June 30, 2025 | 130,000 (underlying CDIs) | A$1.25 | 86,666 (underlying CDIs) | A$1.875 |

---

(1) As
 adjusted figures are adjusted to reflect the Share Consolidation.

**Options granted under the Company's Third Amended and Restated Incentive Stock Option Plan or the Company's Omnibus Equity Incentive Plan**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date of Grant** | **Number of Options Issued<br> Actual** | **Exercise Price <br> Actual <br> (C$)** | **Number of Options Issued<br> As Adjusted <sup>(1)</sup>** | **Exercise Price <br> As Adjusted <sup>(1)</sup><br> (C$)** |
| July 5, 2024 | 3030000 | 0.66 | 2020000 | 0.99 |
| August 16, 2024 | 200000 | 0.685 | 133333 | 1.0275 |
| November 18, 2024 | 200000 | 0.81 | 133333 | 1.215 |
| February 4, 2025 | 250000 | 1.195 | 166666 | 1.7925 |
| February 24, 2025 | 200000 | 1.915 | 133333 | 2.8725 |
| March 7, 2025 | 522000 | 1.89 | 348000 | 2.835 |
| March 14, 2025 | 150000 | 1.62 | 100000 | 2.43 |
| April 23, 2025 | 150000 | 2.57 | 100000 | 3.855 |
| April 30, 2025 | 2275000 | 2.50 | 1516666 | 3.75 |

---

(1) As
 adjusted figures are adjusted to reflect the Share Consolidation.

**Restricted Shares Units granted under the Company's Restricted Share Unit Plan and under the Company's Omnibus Equity Incentive Plan**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date of Grant** | **Number of RSUs Granted<br> Actual** | **Exercise Price <br> Actual <br> (C$)** | **Number of RSUs Granted<br> As Adjusted <sup>(1)</sup>** | **Exercise Price <br> As Adjusted <sup>(1)</sup><br> (C$)** |
| July 5, 2024 | 2100000 | 0.66 | 1400000 | 0.99 |
| March 24, 2025 | 100000 | 2.23 | 66666 | 3.345 |
| March 26, 2025 | 813400 | 2.34 | 542266 | 3.51 |
| April 2, 2025 | 1000000 | 2.18 | 666666 | 3.27 |
| June 9, 2025 | 100000 | 2.99 | 66666 | 4.485 |

---

(1) As
 adjusted figures are adjusted to reflect the Share Consolidation.

**Warrants and CDIs Options** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date of Issue** | **Number of Warrants and CDIs Options Issued <br> Actual** | **Exercise Price<br> Actual** | **Number of Warrants or CDIs Options Issued <br> As Adjusted <sup>(1)</sup>** | **Exercise Price<br> As Adjusted <sup>(1)</sup>** |
| December 23, 2024 | 2000000 | C$1.14 | 1333333 | C$1.71 |
| December 30, 2024 | 4,583,334 <br>(to purchase Common Shares underlying CDIs) | A$1.25 | 3,055,556 <br>(to purchase Common Shares underlying CDIs) | A$1.875 |
| January 14, 2025 | 7,500,000 <br>(to purchase Common Shares underlying CDIs) | A$1.25 | 5,000,000 <br>(to purchase Common Shares underlying CDIs) | A$1.875 |
| January 31, 2025 | 2527000 | C$1.14 | 1684666 | C$1.71 |
| February 7, 2025 | 3,333,333 <br>(to purchase Common Shares underlying CDIs) | A$1.25 | 2,222,222 <br>(to purchase Common Shares underlying CDIs) | A$1.875 |

---

**EXCHANGE RATE INFORMATION**

The following table sets forth for each of the periods indicated: (i) the exchange rates in effect at the end of the period; (ii) the high exchange rate during such period; (iii) the low exchange rate during such period; and (iv) the average exchange rates for such period, for one Canadian dollar, expressed in U.S. dollars, as quoted by the Bank of Canada.

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31, 2023** | **Year ended December 31, 2024** | **3 months ended March 31, 2025** |
| End | 0.7561 | 0.6950 | 0.6956 |
| High | 0.7617 | 0.7510 | 0.7059 |
| Low | 0.7207 | 0.6937 | 0.6848 |
| Average | 0.7410 | 0.7302 | 0.6968 |

---

Except as indicated otherwise herein, U.S. dollar exchange rate information is based on the daily exchange rate of the U.S. dollar on July 4, 2025 as quoted by the Bank of Canada, being C$1.00 = US$0.7350 (US$1.00 = C$1.3605).

The following table sets forth for each of the periods indicated: (i) the exchange rates in effect at the end of the period; (ii) the high exchange rate during such period; (iii) the low exchange rate during such period; and (iv) the average exchange rates for such period, for one Canadian dollar, expressed in Euros, as quoted by the Bank of Canada.

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31, 2023** | **Year ended December 31, 2024** | **3 months ended March 31, 2025** |
| End | 0.6837 | 0.6699 | 0.6435 |
| High | 0.7037 | 0.6901 | 0.6796 |
| Low | 0.6643 | 0.6605 | 0.6335 |
| Average | 0.6852 | 0.6750 | 0.6621 |

---

Except as indicated otherwise herein, Euro exchange rate information is based on the daily exchange rate of the Euro on July 4, 2025 as quoted by the Bank of Canada, being C$1.00 = €0.6241 (€1.00 = C$1.6022).

**MARKET FOR SECURITIES**

On July 3, 2025, we effected a 1.5-to-1 consolidation of our Common Shares and it is expected that our Common Shares will commence trading on a post-consolidated basis on July 7, 2025. The consolidation was approved by our shareholders on April 30, 2025 at our annual general and special meeting of shareholders. Except where otherwise noted, all information in this prospectus and the documents incorporated by reference dated on or after the date of the share consolidation give pro forma effect to such share consolidation. See "*Description of Share Capital—Share Consolidation*".

**TSX (Common Shares)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Actual** | **Actual** | **Actual** | **As Adjusted<sup>(1)</sup>** | **As Adjusted<sup>(1)</sup>** | **As Adjusted<sup>(1)</sup>** |
| <br> **Month** | **High <br> (C$)** | **Low <br> (C$)** | **Volume** | **High <br> (C$)** | **Low <br> (C$)** | **Volume** |
| July 1 to 4, 2025 | 4.70 | 4.06 | 3288989 | 7.05 | 6.09 | 2192658 |
| June 2025 | 4.70 | 2.65 | 16087754 | 7.05 | 3.98 | 10725169 |
| May 2025 | 2.65 | 2.24 | 8181928 | 3.98 | 3.36 | 5454619 |
| April 2025 | 2.69 | 1.85 | 10346658 | 4.04 | 2.78 | 6897772 |
| March 2025 | 2.61 | 1.46 | 12598663 | 3.92 | 2.19 | 8399109 |
| February 2025 | 2.22 | 1.17 | 13626656 | 3.33 | 1.76 | 9084437 |
| January 2025 | 1.29 | 0.91 | 7853549 | 1.94 | 1.37 | 5235699 |
| December 2024 | 0.92 | 0.84 | 4197468 | 1.38 | 1.26 | 2798312 |
| November 2024 | 0.93 | 0.79 | 2492187 | 1.40 | 1.19 | 1661458 |
| October 2024 | 0.97 | 0.76 | 2535974 | 1.46 | 1.14 | 1690649 |
| September 2024 | 0.85 | 0.73 | 2048072 | 1.28 | 1.10 | 1365381 |
| August 2024 | 0.83 | 0.63 | 2680356 | 1.25 | 0.95 | 1786904 |
| July 2024 | 0.69 | 0.61 | 1457702 | 1.04 | 0.92 | 971801 |
| June 2024 | 0.70 | 0.59 | 1944013 | 1.05 | 0.89 | 1296009 |

---

(1) As
 adjusted figures are adjusted to reflect the Share Consolidation.

**ASX (CDIs)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Actual** | **Actual** | **Actual** | **As Adjusted <sup>(1)</sup>** | **As Adjusted <sup>(1)</sup>** | **As Adjusted <sup>(1)</sup>** |
| <br> **Month** | **High <br> (A$)** | **Low <br> (A$)** | **Volume** | **High <br> (A$)** | **Low <br> (A$)** | **Volume** |
| July 1 to 4, 2025 | 5.22 | 4.55 | 446747 | 7.83 | 6.83 | 297831 |
| June 2025 | 4.83 | 2.92 | 2755386 | 7.25 | 4.38 | 1836924 |
| May 2025 | 2.99 | 2.60 | 1386937 | 4.49 | 3.90 | 924, 625 |
| April 2025 | 2.85 | 2.20 | 4558683 | 4.28 | 3.30 | 3039122 |
| March 2025 | 2.56 | 1.67 | 3625649 | 3.84 | 2.51 | 2417099 |
| February 2025 | 2.40 | 1.36 | 3565534 | 3.60 | 2.04 | 2377023 |
| January 2025 | 1.35 | 0.96 | 3272957 | 2.03 | 1.44 | 2181971 |
| December 2024 | 1.00 | 0.88 | 483049 | 1.50 | 1.32 | 322033 |
| November 2024 | 1.02 | 0.90 | 87676 | 1.53 | 1.35 | 58451 |
| October 2024 | 1.01 | 0.80 | 71943 | 1.52 | 1.20 | 47962 |
| September 2024 | 0.90 | 0.87 | 78606 | 1.35 | 1.31 | 52404 |
| August 2024 | 0.90 | 0.70 | 191388 | 1.35 | 1.05 | 127592 |
| July 2024 | 0.74 | 0.62 | 1027510 | 1.11 | 0.93 | 685007 |
| June 2024 | 0.75 | 0.62 | 2159850 | 1.13 | 0.93 | 1439900 |

---

(1) As
 adjusted figures are adjusted to reflect the Share Consolidation.

**CERTAIN UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS**

The following is a discussion of certain U.S. federal income tax considerations associated with the acquisition, ownership and disposition of our Common Shares and of the Domestication that are applicable to U.S. Holders and Non-U.S. Holders, each as defined below, that acquires Common Shares pursuant to this Offering. This discussion is not a complete analysis or listing of all of the possible tax consequences of such transactions and does not address all tax considerations that might be relevant to particular holders in light of their personal circumstances or to persons that are subject to special tax rules. In particular, the information set forth below deals only with holders that will hold Common Shares as capital assets for U.S. federal income tax purposes (generally, property held for investment) and that do not own, and are not treated as owning, at any time during the preceding five years, 5% or more of the total combined voting power or value of all classes of our stock entitled to vote. In addition, this description does not address the tax treatment of special classes of holders, such as:

● financial institutions;

● regulated investment companies;

● real estate investment trusts;

● tax-exempt entities or governmental organizations;

● insurance companies;

● persons holding the Common Shares as part of a hedging, integrated or conversion transaction, constructive sale or "straddle";

● persons who acquired Common Shares through the exercise or cancellation of Options or otherwise as compensation for services;

● U.S. expatriates and former citizens or long-term residents of the United States;

● persons subject to the alternative minimum tax;

● persons that mark their securities to market for U.S. federal income tax purposes;

● brokers, dealers or traders in securities or currencies;

● persons subject to special tax accounting rules as a result of any item of gross income with respect to Common Shares being taken into account in an applicable financial statement;

● tax-qualified retirement plans, individual retirement accounts, pension funds or other tax deferred accounts; or

● holders whose functional currency is not the U.S. dollar.

This summary does not address estate and gift tax or any U.S. federal tax other than income tax (such as Medicare contribution taxes) or tax consequences under any state, local or non-U.S. laws.

For purposes of this section, you are a "**U.S. Holder**" if you are: (1) a citizen or an individual resident alien of the United States as determined for U.S. federal income tax purposes; (2) a corporation (or other entity treated as a corporation for U.S. federal income tax purposes) created or organized under the laws of the United States or any state thereof or the District of Columbia; (3) an estate the income of which is subject to U.S. federal income taxation regardless of its source; or (4) a trust (A) if a court within the United States is able to exercise primary supervision over its administration and one or more U.S. persons have authority to control all substantial decisions of the trust or (B) that has a valid election in effect under applicable Treasury regulations to be treated as a U.S. person.

For purposes of this discussion, a "**Non-U.S. Holder**" means a beneficial owner of Common Shares that is, for U.S. federal income tax purposes, not a U.S. Holder or a partnership or other "pass-through" entity for U.S. federal income tax purposes.

If a partnership (or other entity or arrangement treated as a partnership for U.S. federal income tax purposes) or other pass-through entity is a beneficial owner of our Common Shares, the tax treatment of a partner or other owner or participant will generally depend upon the status of the partner (or other owner or participant) and the activities of the entity (or arrangement). If you are a partner (or other owner of or participant in the partnership or other entity or arrangement treated as a partnership for U.S. federal income tax purposes) of a passthrough entity that acquires Common Shares, you are urged to consult your own tax advisor regarding the tax consequences of acquiring, owning and disposing of Common Shares.

The following discussion is based upon the Internal Revenue Code of 1986, as amended (the "**Code**"), U.S. judicial decisions, published administrative pronouncements, existing and proposed Treasury regulations, all as in effect as of the date hereof. All of the preceding authorities are subject to change, possibly with retroactive effect, so as to result in U.S. federal income tax consequences different from those discussed below. We have not requested, and will not request, a ruling from the U.S. Internal Revenue Service (the "**IRS**") with respect to any of the U.S. federal income tax consequences described below. As a result there can be no assurance that the IRS will not disagree with or challenge any of the conclusions we have reached and describe herein, or that a court would not sustain such a challenge.

The following discussion is for general information only and is not intended to be, nor should it be construed to be, legal or tax advice to any holder or prospective holder of Common Shares and no opinion or representation with respect to the U.S. federal income tax consequences to any such holder or prospective holder is made. Prospective purchasers are urged to consult their tax advisors as to the particular consequences to them under U.S. federal, state and local, and applicable non-U.S. tax laws of the acquisition, ownership and disposition of Common Shares.

**U.S. Federal Income Tax Considerations for U.S. Holders**

**U.S. Federal Income Tax Considerations Prior to the Domestication**

Distributions

Subject to the discussion below under the heading "*Passive Foreign Investment Company Considerations Prior to the Domestication*", the gross amount of any distribution made by us will generally be subject to U.S. federal income tax as dividend income to the extent paid out of our current or accumulated earnings and profits, as determined under U.S. federal income tax principles, without reduction for any Canadian income tax we may be required to withhold from such distributions under Canadian law. Such amount will be includable in a U.S. Holder's gross income on the date that the distribution is actually or constructively received in accordance with the U.S. Holder's regular method of accounting for U.S. federal income tax purposes. The amount of any distribution made by us in property other than cash will be equal to the fair market value of such property on the date of the distribution.

To the extent that a distribution exceeds the amount of our current and accumulated earnings and profits, as determined under U.S. federal income tax principles, it will be treated first as a tax-free return of capital, causing a reduction in a U.S. Holder's adjusted tax basis in its Common Shares (thereby increasing the amount of gain, or decreasing the amount of loss, to be recognized upon a subsequent disposition of Common Shares), with any amount that exceeds the U.S. Holder's adjusted tax basis being taxed as a capital gain recognized on a sale, exchange or other taxable disposition of the Common Shares (as discussed below). However, we do not intend to maintain calculations of our earnings and profits in accordance with U.S. federal income tax principles. Therefore, U.S. Holders should assume that any distribution by us with respect to our Common Shares will be treated as dividends for U.S. federal income tax purposes.

Dividends received by non-corporate U.S. Holders (including individuals) from a "qualified foreign corporation" may be eligible for reduced rates of taxation, provided that certain holding period requirements and other conditions are satisfied. A non-U.S. corporation will be treated as a "qualified foreign corporation" with respect to dividends it pays on shares of its stock that are readily tradable on an established securities market in the United States. U.S. Treasury guidance indicates that shares listed on the NASDAQ will be considered readily tradable on an established securities market in the United States. We have applied to list our Common Shares on the NASDAQ. However, there can be no assurance that such listing will be granted or that the Common Shares will be considered to be readily tradable on an established securities market in future years. We may also be a "qualified foreign corporation" if we are eligible for benefits of a comprehensive U.S. income tax treaty, which Treasury guidance indicates includes the U.S.-Canada income tax treaty. We believe that we are eligible for benefits under the U.S.-Canada income tax treaty, but there can be no assurance that we will continue to be eligible for benefits, in particular if the Domestication is effected.

Non-corporate U.S. holders that do not meet a minimum holding period requirement during which they are not protected from the risk of loss or that elect to treat the dividend income as "investment income" pursuant to Section 163(d)(4) of the Code (dealing with the deduction for investment interest expense) will not be eligible for the reduced rates of taxation regardless of our status as a qualified foreign corporation. In addition, the rate reduction will not apply to dividends if the recipient of a dividend is obligated to make related payments with respect to the positions in substantially similar or related property. This disallowance applies even if the minimum holding period has been met. We will not constitute a qualified foreign corporation for the purposes of these rules if we are a PFIC for the taxable year in which it pays a dividend or for the preceding taxable year. Distributions with respect to our Common Shares will not be eligible for the dividends received deduction generally available to U.S. Holders that are corporations.

If a U.S. Holder is eligible for benefits under the Treaty, the U.S. Holder may be able to claim a reduced rate of Canadian withholding tax. U.S. Holders are urged to consult their own tax advisors about their eligibility for reduction of Canadian withholding tax. A U.S. Holder may be entitled to a foreign tax credit, subject to other applicable limitations, only for tax withheld at the appropriate rate. A U.S. Holder will not be allowed a foreign tax credit for any portion of the withholding tax that could have been avoided by claiming benefits under the Treaty. Alternatively, a U.S. Holder may be able to deduct such foreign taxes in computing taxable income for U.S. federal income tax purposes, provided that, in the case of otherwise creditable taxes, the U.S. Holder has elected to deduct all creditable foreign income taxes paid or accrued for the relevant taxable year. Treasury regulations impose additional requirements that must be met for a foreign tax to be creditable, but IRS notices provide temporary relief from certain of these requirements if the notice is applied consistently to all foreign taxes paid during the relevant taxable year until the date that a notice or other guidance withdrawing or modifying the temporary relief is issued (or any later date specified in such notice or other guidance). Dividends will be treated as having a foreign source for U.S. foreign tax credit purposes. The rules governing the foreign tax credit are complex and involve the application of rules that depend upon a U.S. Holder's particular circumstances. Accordingly, U.S. Holders are urged to consult their own tax advisors regarding the availability of the foreign tax credit under their own particular circumstances.

The gross amount of any distributions paid in any non-U.S. currency will be included by each U.S. Holder in income in a dollar amount calculated by reference to the exchange rate in effect on the day the distribution is actually or constructively received in accordance with the U.S. Holder's regular method of accounting for federal income tax purposes regardless of whether the payment is in fact converted into U.S. dollars. If such non-U.S. currency is converted into U.S. dollars on the date of the payment, the U.S. Holder should not be required to recognize any foreign currency gain or loss with respect to the receipt of non-U.S. currency as distributions. If, instead, such non-U.S. currency is converted at a later date, any currency gains or losses resulting from the conversion of the non-U.S. currency will be treated as U.S. source ordinary income or loss. A U.S. holder should consult its own tax advisors regarding the treatment of any foreign currency gain or loss realized with respect to currency other than U.S. dollars received as a dividend.

Sale, Exchange or Other Taxable Disposition of Common Shares

Subject to the discussion below under the heading "*Passive Foreign Investment Company Considerations Prior to the Domestication*", each U.S. Holder will recognize gain or loss upon the sale, exchange or other taxable disposition of our Common Shares in an amount equal to the difference between (i) the amount realized upon the sale, exchange or other taxable disposition and (ii) the U.S. Holder's adjusted tax basis in the Common Shares that are sold, exchanged or disposed. Subject to the PFIC rules discussed below, such gain or loss generally will be capital gain or loss and will be long-term capital gain or loss if, on the date of the sale, exchange or other taxable disposition, the U.S. Holder has held the Common Shares for more than one year. If the U.S. Holder is an individual, long-term capital gains are subject to taxation at favorable rates. The deductibility of capital losses is subject to limitations under the Code.

If Canadian income tax is withheld on the sale or other disposition of Common Shares, the amount realized by a U.S. Holder will include the gross amount of the proceeds of that sale or other disposition before deduction of Canadian income tax. Gain or loss, if any, realized upon a sale, exchange or other taxable disposition of Common Shares will be treated as having a United States source for U.S. foreign tax credit purposes. Consequently, a U.S. Holder may not be able to use any foreign tax credits arising from any Canadian tax imposed on the sale, exchange or other taxable disposition of Common Shares unless such credit can be applied (subject to applicable limitations) against tax due on other income treated as derived from foreign sources or unless an applicable treaty provides otherwise. Treasury regulations may further limit a U.S. Holder's ability to claim a foreign tax credit, depending on the nature of the non-U.S. tax. U.S. Holders are urged to consult their own tax advisors regarding the availability of the foreign tax credit under their particular circumstances.

The initial tax basis of a U.S. Holder's Common Shares generally will be the U.S. dollar value of the purchase price paid. If the Common Shares are treated as traded on an "established securities market," a cash method U.S. Holder, or, if it elects, an accrual method U.S. Holder, will determine the U.S. dollar value of the cost of such common shares by translating the amount paid at the spot rate of exchange on the settlement date of the purchase. On a sale or other taxable disposition of Common Shares, a U.S. Holder that receives a currency other than U.S. dollars will realize an amount equal to the U.S. dollar value of the currency received at the spot rate on the date of sale or other disposition (or, if the Common Shares are traded on an "established securities market" at such time, in the case of cash basis and electing accrual basis U.S. Holders, the settlement date). A U.S. Holder that does not determine the amount realized using the spot exchange rate on the settlement date will recognize currency gain or loss if the U.S. dollar value of the currency received at the spot rate on the settlement date differs from the amount realized. A U.S. Holder will have a tax basis in the currency received equal to its U.S. dollar value at the spot rate on the settlement date. Any currency gain or loss realized on the settlement date or on a subsequent conversion or other disposition of the non-U.S. currency received for a different U.S. dollar amount generally will be U.S. source ordinary income or loss. If an accrual basis U.S. Holder makes the election described above, it must be applied consistently from year to year and cannot be revoked without the consent of the IRS. A U.S. Holder should consult its own tax advisors regarding the treatment of any foreign currency gain or loss realized with respect to currency other than U.S. dollars received in a sale or other disposition of Common Shares.

Passive Foreign Investment Company Considerations Prior to the Domestication

Special U.S. federal income tax rules apply to U.S. persons owning stock of a PFIC. A foreign corporation will be considered a PFIC for any taxable year in which, after taking into account the income and assets of the corporation and certain subsidiaries pursuant to the applicable "look through" rules, either (1) at least 75 percent of its gross income is "passive" income (the "income test") or (2) at least 50 percent of the average value of its assets is attributable to assets that produce passive income or are held for the production of passive income (the "asset test"). For purposes of determining whether a foreign corporation will be considered a PFIC, such foreign corporation will be treated as holding its proportionate share of the assets and receiving directly its proportionate share of the income of any other corporation in which it owns, directly or indirectly, at least 25 percent (by value) of the stock. For this purpose, passive income generally includes, among other things and subject to various exceptions, dividends, interest, certain rents, royalties and gains from the disposal of passive assets, including income or gain from transactions in commodities that is not derived from the active conduct of a commodities business as a producer, processor, merchant or handler of commodities (within the meaning of applicable regulations). Whether the Company is a PFIC is a factual determination made annually, and the Company's status could change depending on, among other things, changes in the composition and relative value of its gross receipts and assets and the manner in which its business is conducted. Because the market value of the Company's assets (including for this purpose, goodwill) may be measured in large part by the market price of the Common Shares, which is likely to fluctuate, no assurance can be given that the Company will not be a PFIC in the current year or in any future taxable year.

The Company has not made a determination of whether it is or ever has been a PFIC for U.S. federal income tax purposes. Accordingly, it is possible that the Company is or has been a PFIC for U.S. federal income tax purposes, and we may be treated as a PFIC for U.S. federal income tax purposes in subsequent years. If we were to be classified as a PFIC, a U.S. Holder that does not make any of the elections described below would be required to report any gain on the disposition of any of our Common Shares as ordinary income, rather than as capital gain, and to compute the tax liability on the gain and any "Excess Distribution" (as defined below) received with respect to our Common Shares as if such items had been earned rateably over each day in the U.S. Holder's holding period (or a portion thereof) for the shares. The amounts allocated to the taxable year during which the gain is realized or distribution is made would be included in the U.S. Holder's gross income as ordinary income for the taxable year of the gain or distribution. The amount allocated to each other taxable year in which we were a PFIC would be taxed as ordinary income in the taxable year during which the gain is realized or distribution is made at the highest tax rate in effect for the U.S. Holder in that other taxable year and would be subject to an interest charge as if the income tax liabilities had been due with respect to each such prior year. An "Excess Distribution" generally would be any distribution to a U.S. Holder with respect to Common Shares during a single taxable year that is greater than 125% of the average annual distributions received by the U.S. Holder with respect to Common Shares during the three preceding taxable years or, if shorter, during the U.S. Holder's holding period for the Common Shares. In addition, you would generally be subject to similar rules with respect to distributions to us by, and dispositions by us of the stock of, any of our direct or indirect subsidiaries that are also PFICs ("**lower-tier PFICs**").

Mark-to-Market Election

If our Common Shares are treated as "marketable stock" for purposes of the PFIC rules, a U.S. Holder may avoid some of the adverse impacts of the foregoing PFIC rules by making a mark-to-market election. Our Common Shares will be marketable stock if they are regularly traded on a qualifying exchange that is either (i) a national securities exchange which is registered with the SEC or the national market system established pursuant to the Exchange Act, or (ii) any exchange or other market that the United States Treasury Department determines is adequate. The Company believes that the NASDAQ, TSX and ASX meet this test, and accordingly, provided that our Common Shares are regularly traded on such markets, U.S. Holders should be able to make a mark-to-market election with respect to the Offered Shares if the Company is classified as a PFIC. After making such an election, or on an actual sale, a U.S. Holder generally would include as ordinary income at the end of each taxable year during which the election is in effect and during which we are a PFIC the excess, if any, of the fair market value of our Common Shares over the U.S. Holder's adjusted basis in such Common Shares. A U.S. Holder also would be allowed to take an ordinary loss in respect of the excess, if any, of the U.S. Holder's adjusted basis in our Common Shares over the share's fair market value at the end of the taxable year, and for any loss recognized on actual sale, but only to the extent, in each case, of the previously included mark-to-market income not offset by previously deducted decreases in value. Any loss on an actual sale of our Common Shares would be a capital loss to the extent in excess of previously included mark-to market income not offset by previously deducted decreases in value.

Because a mark-to-market election cannot be made for any lower-tier PFICs that we may own, a U.S. Holder would continue to be subject to the PFIC rules with respect to its indirect interest in any investment held by us that is treated as an equity interest in a PFIC for U.S. federal income tax purposes, notwithstanding making a mark-to-market election in respect of our Common Shares. U.S. Holders are urged to consult their own tax advisors concerning the U.S. federal income tax consequences of holding our Common Shares and the availability of any tax elections if we are considered a PFIC in any taxable year.

QEF Election

A U.S. Holder may also be able to avoid some of the adverse impacts of the PFIC tax rules outlined above if such U.S. Holder alternatively elected to treat us as a "qualified electing fund" or "QEF". Under certain circumstances, a U.S. holder may make a "protective" QEF election and file protective information returns with respect to their Common Shares. U.S. Holders are urged to consult their own tax advisors as to the availability and consequences of such an election. Special rules apply for calculating the amount of the foreign tax credit with respect to excess distributions by a PFIC or, in certain cases, QEF inclusions.

If a U.S. Holder was eligible for, and timely made, a QEF election, the U.S. Holder would include in income each year for which we are a PFIC (and be subject to current U.S. federal income tax on) the U.S. Holder's pro rata share of our ordinary earnings, as ordinary income, and net capital gains, as long-term capital gain, for our taxable year that ends with or within the U.S. Holder's taxable year, regardless of whether such amounts are actually distributed. Any such ordinary income would not be eligible for the favorable rates applicable to qualified dividend income. The U.S. Holder's adjusted tax basis in our Common Shares would be increased to reflect taxed but undistributed earnings and profits. Distributions of earnings and profits that had been previously taxed would result in a corresponding reduction in the U.S. Holder's adjusted tax basis in our Common Shares and would not be taxed again. The U.S. Holder would not, however, be entitled to a deduction for its pro rata share of any losses that we incurred with respect to any year. The U.S. Holder would generally recognize capital gain or loss on the sale, exchange or other disposition of our Common Shares. A U.S. Holder would generally make a QEF election with respect to the first year during which we were at any time a PFIC by filing IRS Form 8621 with the U.S. Holder's U.S. federal income tax return. The QEF election is made on a shareholder-by-shareholder basis and can only be revoked with the consent of the IRS.

Notwithstanding any election made with respect to our Common Shares, dividends received with respect to our shares will not constitute "qualified dividend income" if we are a PFIC in either the year of the distribution or the preceding taxable year. Dividends that do not constitute qualified dividend income are not eligible for taxation at the reduced tax rate discussed above in "*Certain United States Federal Income Tax Considerations—Distributions Prior to the Domestication*". Instead, such dividends would be subject to tax at ordinary income rates.

In order to comply with the requirements of a QEF election, a U.S. Holder must receive certain financial information from US. If we determine that we are a PFIC for any taxable year, we do not currently intend to provide the information that a U.S. holder making a QEF election is required to obtain in order to make and maintain a QEF election. Therefore, U.S. Holders are urged to consult their own tax advisors concerning the U.S. federal income tax consequences of holding our Common Shares if we are considered a PFIC in any taxable year and they are not able to make or maintain a QEF election.

Information Reporting and Backup Withholding

In general, information reporting may apply to dividends paid in respect of Common Shares and the proceeds received from the sale, exchange or other disposition of Common Shares within the United States unless a U.S. Holder is an exempt recipient. Backup withholding (currently at a 24% rate) may apply to such payments if a U.S. Holder fails to provide a taxpayer identification number or certification of exempt status or fails to report in full dividend and interest income. Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules may be allowed as a refund or credit against a U.S. Holder's U.S. federal income tax liability, provided that the required information is furnished to the IRS in a timely manner.

Special U.S. income tax reporting requirements are imposed with respect to the holding of certain foreign financial assets, including stock of foreign issuers which is not held in an account maintained by certain financial institutions, if the aggregate value of all of such assets exceeds US$50,000 on the last day of the taxable year or US$75,000 at any time during the taxable year. U.S. Holders holding such foreign financial assets must attach a complete IRS Form 8938, statement of Specified Foreign Financial Assets, with their returns to report their ownership of such 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.

**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 Code (as discussed below), and (ii) the holding period for a New Almonty Share deemed to be received by a U.S. Holder will include such U.S. Holder's holding period for the Common Share deemed to be surrendered in exchange therefor. 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.

If the Domestication does not qualify as an F Reorganization, a U.S. Holder generally would, subject to the potential application of the PFIC rules, recognize gain or loss with respect to its Common Share in an amount equal to the difference between the fair market value of the New Almonty Shares deemed to be received in the Domestication and the U.S. Holder's adjusted tax basis in such holder's Common Shares deemed to be surrendered in the Domestication. In such event, such U.S. Holder's basis in the New Almonty Shares would be equal to the fair market value of such stock on the date of the Domestication, and such U.S. Holder's holding period for the New Almonty Shares would begin on the day following the date of the Domestication.

**Effects of Section 367 on the Domestication**

Section 367 of the Code applies to certain non-recognition transactions involving foreign corporations and has the effect of imposing U.S. income tax on certain U.S. persons in connection with transactions that would otherwise be tax-free. Section 367(b) of the Code would apply to Domestication under the circumstances discussed below if the Domestication otherwise qualifies as an F Reorganization.

U.S. Holders that own Common Shares with a fair market value of less than $50,000

A U.S. Holder who, at the time of the Domestication, beneficially owns Common Shares with a fair market value of less than $50,000 should not be required to recognize any income or gain under Section 367(b) of the Code in connection with the Domestication.

U.S. Holders that own shares of Common Shares with a fair market value of $50,000 or more (but are not 10% U.S. Holders)

A U.S. Holder who, at the time of the Domestication, is not a 10% U.S. Holder and beneficially owns 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.

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 by such U.S. Holder through the Effective Date.

If a U.S. Holder makes the "all earnings and profits" election, the election must comply with strict conditions for making this election under applicable Treasury Regulations. U.S. Holders wishing to make the "all earnings and profits" election should consult their own tax advisors regarding the process for, and effect of, making the election in light of their own circumstances.

10% U.S. Holders

A U.S. Holder who, at the time of the Domestication, beneficially owns (directly, indirectly or by attribution) 10% or more of the total combined voting power or value of all classes of shares of stock of Almonty (a "**10% U.S. Holder**") is subject to special rules that generally require such 10% U.S. Holder to include in income, as a deemed dividend, the "all earnings and profits amount" attributable to the shares of Common Stock owned by such U.S. Holder. **10% U.S. Holders should consult their own tax advisors regarding the effect of the Domestication to them in light of their own circumstances.**

Determination of the "All Earnings and Profits Amount"

The Company is currently in the process of determining its historical earnings and profits and also expects to determine its earnings and profits for 2024 and for the portion of 2025 ending on the effective date of the Domestication. The Company will likely not complete this determination until after completion of the Domestication. As noted above, the "all earnings and profits amount" attributable to Common Shares held by a particular U.S. Holder should generally depend on the Company's accumulated earnings and profits from the date that the Common Shares were acquired by such U.S. Holder through the effective date of the Domestication. The Company intends to provide on its external website (https://almonty.com/investors/financials/), under the heading "Financial Reports", information regarding the Company's earnings and profits once such information is reasonably available. The determination of the Company's earnings and profits is a complex determination and may be impacted by numerous factors. Accordingly, there can be no assurance that the IRS will agree with the Company's determination of such earnings and profits. If the IRS does not agree with such earnings and profits calculations, the earnings and profits of the Company may be greater than reported on the Company's website (as described above). In such case, a U.S. Holder that makes an "all earnings and profits" election or a 10% U.S. Holder could have a positive (or a more positive than anticipated) "all earnings and profits amount" in respect of such U.S. Holder's shares and thereby recognize greater taxable income.

**U.S. HOLDERS ARE STRONGLY URGED TO CONSULT THEIR OWN TAX ADVISORS REGARDING THE U.S. FEDERAL INCOME TAX TREATMENT OF THE DOMESTICATION, WHETHER TO MAKE THE "ALL EARNINGS AND PROFITS" ELECTION DESCRIBED ABOVE AND, IF THE ELECTION IS DETERMINED TO BE ADVISABLE, THE APPROPRIATE FILING REQUIREMENTS WITH RESPECT TO THIS ELECTION.**

PFIC Status

If the Company was a PFIC for any taxable year during which a U.S. Holder has held Common Shares, certain adverse tax consequences could apply to such U.S. Holder in connection with the Domestication. As discussed above, the Company has not made a determination of whether it is or ever has been a PFIC for U.S. federal income tax purposes. Accordingly, it is possible that the Company is or has been a PFIC for U.S. federal income tax purposes. This determination of whether the Company is or has been a PFIC depends on complex factual determinations that are made annually and thus there can be no assurance that the Company is not and has not been a PFIC. If the Company has not been a PFIC at any time during a U.S. Holder's holding period for their Common Shares, the Domestication should not be a taxable event for such U.S. Holder solely as a result of the application of the PFIC rules.

However, if the Company was a PFIC for any taxable year during which a U.S. Holder held Common Shares, certain adverse tax consequences, including recognition of gain and application of an interest charge, could apply to such U.S. Holder as a result of the Domestication, unless an exception under the relevant Treasury Regulations can be relied upon. Section 1291(f) of the Code generally requires that, to the extent provided in the Treasury Regulations, a United States person who disposes of stock of a PFIC recognizes gain notwithstanding any provision of law. No final Treasury Regulations have been promulgated under this statute. Proposed Treasury Regulations were promulgated in 1992 with a retroactive effective date (the "**Proposed PFIC Regulations**"). If finalized in their current form, the Proposed PFIC Regulations would generally require gain recognition by United States persons deemed to exchange Common Shares for New Almonty Shares pursuant to the Domestication, if Almonty were classified as a PFIC at any time during such United States person's holding period in such stock and such person had not made either a QEF election for the first taxable year in which such U.S. Holder owned Common Shares or in which the Company was a PFIC, whichever is later, or a "mark-to-market" election (each as discussed above). The tax on any such gain so recognized would be imposed at the rate applicable to ordinary income and an interest charge would apply based on a complex set of computational rules designed to offset the tax deferral to such stockholders on our undistributed earnings. In addition, the regulations would provide coordinating rules with Section 367(b) of the Code, whereby, if the gain recognition rule of the Proposed PFIC Regulations applied to a disposition of PFIC stock that results from a transfer with respect to which Section 367(b) requires the shareholder to recognize gain or include an amount in income as a distribution under Section 301 of the Code, the gain realized on the transfer is taxable as an excess distribution under Section 1291 of the Code, and the excess, if any, of the amount to be included in income under Section 367(b) over the gain realized under Section 1291 is taxable as provided under Section 367(b). See the discussion above under the section entitled "*– Effects of Section 367 on the Domestication*".

It is difficult to predict whether, in what form and with what effective date, final Treasury Regulations under Section 1291(f) of the Code will be adopted. The PFIC rules are very complex and are affected by various factors in addition to those described above. Accordingly, U.S. Holders are urged to consult their own tax advisors concerning the potential application of the PFIC rules to them under their particular circumstances.

**U.S. Federal Income Tax Considerations Associated with the Domestication for Non-U.S. Holders**

**Certain U.S. Federal Income Tax Consequences of the Domestication to Non-U.S. Holders**

The Domestication is not expected to result in any material U.S. federal income tax consequences to a Non-U.S. Holder that exchanges Common Shares for New Almonty Shares provided that such Non-U.S. Holder (i) has not been engaged in the conduct of a trade or business within the United States (or, if required by an applicable income tax treaty, such Non-U.S. Holder has not maintained a permanent establishment within the United States), and (ii) is not a non-resident alien individual treated as present in the United States for 183 days or more during the taxable year of the Domestication and certain other requirements are met.

Ownership and Disposition of New Almonty Shares After the Domestication

&nbsp;&nbsp;&nbsp;&nbsp;I) Distributions with
 Respect to New Almonty Shares

In general, any distributions made to a Non-U.S. Holder of New Almonty Shares, to the extent paid out of our current or accumulated earnings and profits (as determined under U.S. federal income tax principles), will constitute dividends for U.S. federal income tax purposes and, provided such dividends are not effectively connected with the Non-U.S. Holder's conduct of a trade or business within the United States, will be subject to withholding tax from the gross amount of the dividend at a rate of 30%, unless such Non-U.S. Holder is eligible for a reduced rate of withholding tax under an applicable income tax treaty and provides proper certification of its eligibility for such reduced rate (usually on an IRS Form W-8BEN or W-8BEN-E, as applicable). Non-U.S. Holders should consult their own tax advisors regarding their entitlement to benefits under any applicable income tax treaty and the procedures for claiming such benefits. To the extent that the amount of the distribution exceeds our current and accumulated earnings and profits, such excess will be treated first as a tax-free return of the Non-U.S. Holder's tax basis in the New Almonty Shares, and then, to the extent such excess amount exceeds the Non-U.S. Holder's tax basis in such New Almonty Shares, as capital gain. See the discussion below under the heading "*– Sale or Other Taxable Disposition of New Almonty Shares*".

Dividends paid by the Company to a Non-U.S. Holder that are effectively connected with such Non-U.S. Holder's conduct of a trade or business within the United States (or if a tax treaty applies are attributable to a U.S. permanent establishment or fixed base maintained by the Non-U.S. Holder) will generally not be subject to U.S. withholding tax, provided such Non-U.S. Holder complies with certain certification and disclosure requirements (usually by providing an IRS Form W-8ECI). Instead, such dividends generally will be subject to U.S. federal income tax at the same regular U.S. federal income tax rates applicable to a comparable U.S. Holder and, in the case of a Non-U.S. Holder that is a corporation for U.S. federal income tax purposes, also may be subject to an additional branch profits tax at a 30% rate or a lower applicable tax treaty rate.

The dividend rules are complex. Non-U.S. Holders of New Almonty Shares are urged to consult with their own tax advisors regarding eligibility for benefits under any applicable income tax treaty with respect to dividends paid by the Company after the Domestication and the proper manner for claiming such benefits (including proper certification on an applicable IRS Form W-8).

II) Sale or Other Taxable Disposition of New Almonty Shares

A Non-U.S. Holder generally will not be subject to U.S. federal income tax on gain realized upon the sale or other disposition of its New Almonty Shares unless:

● the gain is effectively connected with the Non-U.S. Holder's conduct of a trade or business within the United States (and, if required by an applicable income tax treaty, such gain is attributable to a permanent establishment maintained by the Non-U.S. Holder in the United States);

● the Non-U.S. Holder is a non-resident alien individual present in the United States for 183 days or more during the taxable year of the disposition and certain other requirements are met; or

● the Company is or has been a U.S. real property holding corporation at any time within the five-year period preceding the disposition or the Non-U.S. Holder's holding period, whichever period is shorter, and either (i) the New Almonty Shares have ceased to be regularly traded on an established securities market or (ii) the Non-U.S. Holder has owned or is deemed to have owned, at any time within the five-year period preceding the disposition or the Non-U.S. Holder's holding period, whichever period is shorter, more than 5% of the New Almonty Shares. The Company does not expect to be classified as a U.S. real property holding corporation immediately after the Domestication.

Gain described in the first bullet point above generally will be subject to U.S. federal income tax on a net income basis at regular graduated tax rates, generally in the same manner as if such Non-U.S. Holder were a United States person. A Non-U.S. Holder that is a corporation may also be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on such effectively connected gain, as adjusted for certain items.

Gain described in the second bullet point above generally would be subject to a flat 30% U.S. federal income tax.

If the third bullet point above applies to a Non-U.S. Holder, gain recognized by such holder on the sale, exchange or other disposition of New Almonty Shares would be subject to tax at generally applicable U.S. federal income tax rates. In addition, a buyer of such stock from a Non-U.S. Holder may be required to withhold U.S. income tax at a rate of 15% of the amount realized upon such disposition. The Company would generally be classified as a U.S. real property holding corporation if the fair market value of its "United States real property interests" equals or exceeds 50% of the sum of the fair market value of its worldwide real property interests plus its other assets used or held for use in a trade or business, as determined for U.S. federal income tax purposes. The Company does not expect to be classified as a U.S. real property holding corporation immediately after the Domestication.

III) Information Reporting and Backup Withholding

A Non-U.S. Holder that holds New Almonty Shares within the U.S. or through certain U.S.-related brokers may be subject to information reporting and possible backup withholding with respect to dividend payments on, and proceeds from the sale, exchange or redemption of, such New Almonty Shares. A Non-U.S. Holder generally may eliminate the requirement for information reporting and backup withholding by providing certification of its foreign status, under penalties of perjury, on a duly executed applicable IRS Form W-8 or by otherwise establishing an exemption.

Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules may be allowed as a refund or a credit against a Non-U.S. Holder's U.S. federal income tax liability, provided the required information is timely furnished to the IRS.

IV) Additional Withholding Tax on Payments Made to Foreign Accounts

Sections 1471 through 1474 of the Code and the Treasury Regulations and administrative guidance promulgated thereunder (commonly referred to as "**FATCA**") generally impose withholding at a rate of 30% in certain circumstances with respect to "withholdable payments" which are held by or through certain non-U.S. financial institutions (including investment funds), as a beneficial owner or as an intermediary, unless any such institution (i) enters into, and complies with, an agreement with the IRS to report, on an annual basis, information with respect to interests in, and accounts maintained by, the institution that are owned be certain U.S. persons and by certain non-U.S. entities that are wholly or partially owned by U.S. persons and to withhold on certain payments, or (ii) if required under an intergovernmental agreement between the United States and an applicable foreign country, reports such information to its local tax authority, which will exchange such information with the U.S. authorities. For this purpose, "withholdable payments" generally include payments of dividends in addition to certain other passive income type amounts. Under the Treasury Regulations, withholdable payments include gross proceeds from any sale or other disposition of securities (including New Almonty Shares). An intergovernmental agreement between the United States and an applicable foreign country may modify these requirements. Accordingly, the entity through which New Almonty Shares are held will affect the determination of whether such withholding is required. Similarly, dividends in respect of New Almonty Shares held by an investor that is a non-financial non-U.S. entity (as a beneficial owner or as an intermediary) that does not qualify under certain exceptions will generally be subject to withholding at a rate of 30%, unless such entity either (i) certifies to the applicable withholding agent that such entity does not have any "substantial United States owners" or (ii) provides certain information regarding the entity's "substantial United States owners", which will in turn be provided to the U.S. Department of Treasury. All holders should consult their tax advisors regarding the possible implications of FATCA on their ownership of New Almonty Shares.

**CERTAIN CANADIAN FEDERAL INCOME TAX CONSIDERATIONS**

The following is, as of the date hereof, a summary of the principal Canadian federal income tax considerations generally applicable under the *Income Tax Act* (Canada) and the regulations promulgated thereunder (the "**Tax Act**"), to a holder who acquires, as beneficial owner, the Common Shares under this Offering, and who, for purposes of the Tax Act and at all relevant times: (i) holds the Common Shares as capital property; (ii) deals at arm's length with, and is not affiliated with, us or the Underwriters; (iii) is not, and is not deemed to be resident in Canada; (iv) has not entered into a "derivative forward agreement" (as defined in the Tax Act) with respect to the Common Shares; and (v) does not use or hold and will not be deemed to use or hold, the Common Shares in the course of carrying on or otherwise in connection with a business carried on in Canada (a "**Non-Resident Holder**"). Generally, our Common Shares will be considered to be capital property to a Non-Resident Holder provided the Non-Resident Holder does not hold our Common Shares in the course of carrying on a business of trading or dealing in securities and has not acquired them in one or more transactions considered to be an adventure or concern in the nature of trade. Special rules, which are not discussed in this summary, may apply to a Non-Resident Holder that is an "authorized foreign bank" as defined in the Tax Act or an insurer that carries on an insurance business in Canada and elsewhere. Such Non-Resident Holders should seek advice from their own tax advisors.

This summary is based upon the provisions of the Tax Act in force as of the date hereof, all specific proposals (the "**Proposed Amendments**"), to amend the Tax Act that have been publicly and officially announced by or on behalf of the Minister of Finance (Canada) prior to the date hereof and counsels' understanding of the current administrative policies and practices of the Canada Revenue Agency ("**CRA**"), published in writing by it prior to the date hereof. This summary assumes the Proposed Amendments will be enacted in the form proposed. However, no assurance can be given that the Proposed Amendments will be enacted in their current form, or at all. This summary is not exhaustive of all possible Canadian federal income tax considerations and, except for the Proposed Amendments, does not take into account or anticipate any changes in the law or any changes in the CRA's administrative policies or practices, whether by legislative, governmental or judicial action or decision, nor does it take into account or anticipate any other federal or any provincial, territorial or foreign tax considerations, which may differ significantly from those discussed herein.

**Non-Resident Holders should consult their own tax advisors with respect to an investment in our Common Shares. This summary is of a general nature only and is not intended to be, nor should it be construed to be, legal or tax advice to any prospective purchaser or holder of our Common Shares, and no representations with respect to the income tax consequences to any prospective purchaser or holder are made. Consequently, prospective purchasers or holders of our Common Shares should consult their own tax advisors with respect to their particular circumstances.**

This summary assumes that the Company is a resident of Canada for purposes of the Tax Act and any applicable tax treaty or convention. For a discussion of the Canadian tax considerations relevant to the Arrangement and the ownership and disposition of Common Shares of the Company following the implementation of the Arrangement, see the section entitled "Certain Canadian Federal Income Tax Considerations Related To The Arrangement" of the management information circular of the Company dated January 31, 2025 and filed on February 4, 2025, prepared for the purposes of the special meeting of the shareholders of the Company held on February 27, 2025.

**Currency Conversion**

Generally, for purposes of the Tax Act, all amounts relating to the acquisition, holding or disposition of our Common Shares must be converted into Canadian dollars based on the exchange rates as determined in accordance with the Tax Act. The amounts subject to withholding tax and any capital gains or capital losses realized by a Non-Resident Holder may be affected by fluctuations in the Canadian-U.S. dollar exchange rate.

**Adjusted Cost Base of Common Shares**

The adjusted cost base to a Non-Resident Holder of a Common Share acquired pursuant to this prospectus will be determined by averaging the cost of that Common Share with the adjusted cost base (determined immediately before the acquisition of the Common Share) of all other Common Shares held as capital property by the Non-Resident Holder immediately prior to such acquisition.

**Receipt of Dividends**

Dividends received or deemed to be received by a Non-Resident Holder on our Common Shares will be subject to Canadian withholding tax under the Tax Act. The statutory rate of withholding tax is 25%, although such rate may be reduced under the provisions of an applicable income tax convention between Canada and the Non-Resident Holder's country of residence. For example, under the Canada-United States Income Tax Convention (1980) as amended (the "**Treaty**"), the rate is generally reduced to 15% (or 5% if the beneficial owner of such dividend is a corporation that owns at least 10% of the voting stock of the Company) where the Non-Resident Holder is a resident of the United States for the purposes of, and is fully entitled to the benefits of, the Treaty. Non-Resident Holders are urged to consult their own tax advisors to determine their entitlement to relief under an applicable income tax treaty or convention.

**Disposition of Common Shares**

A Non-Resident Holder will not generally be subject to tax under the Tax Act on a disposition of a Common Share (other than a disposition of Common Shares to the Company, which may result in a deemed dividend, unless purchased by the Company in the open market in the manner in which Common Shares are normally purchased by any member of the public in the open market, in which case other considerations may arise), unless the Common Share constitutes "taxable Canadian property" (as defined in the Tax Act) of the Non-Resident Holder at the time of disposition and the Non-Resident Holder is not entitled to relief under an applicable income tax treaty or convention.

Provided the Common Shares are listed on a "designated stock exchange", as defined in the Tax Act (which currently includes the TSX and NASDAQ) at the time of disposition, the Common Shares will generally not constitute taxable Canadian property of a Non-Resident Holder at that time, unless at any time during the 60-month period immediately preceding the disposition the following two conditions are satisfied concurrently: (i) (a) the Non-Resident Holder; (b) persons with whom the Non-Resident Holder did not deal at arm's length; (c) partnerships in which the Non-Resident Holder or a person described in (b) holds a membership interest directly or indirectly through one or more partnerships; or (d) any combination of the persons and partnerships described in (a) through (c), owned 25% or more of the issued shares of any class or series of our shares; and (ii) more than 50% of the fair market value of our shares was derived directly or indirectly from one or any combination of: real or immovable property situated in Canada, "Canadian resource properties", "timber resource properties" (each as defined in the Tax Act), and options in respect of, or interests in or for civil law rights in, such properties. Notwithstanding the foregoing, in certain circumstances set out in the Tax Act, the Common Shares could be deemed to be taxable Canadian property. Even if the Common Shares are taxable Canadian property to a Non-Resident Holder, such Non-Resident Holder may be exempt from tax under the Tax Act on the disposition of such Common Shares by virtue of an applicable income tax treaty or convention. A Non-Resident Holder contemplating a disposition of Common Shares that may constitute taxable Canadian property should consult a tax advisor prior to such disposition.

**PLAN OF DISTRIBUTION**

**General**

The Company and Oppenheimer & Co. Inc. (the "**Lead Underwriter**"), as representative of a syndicate of underwriters named therein (together with the Lead Underwriter, the "**Underwriters**"), have entered into an underwriting agreement with respect to the Offered Shares (the "**Underwriting Agreement**").

Pursuant to the Underwriting Agreement, the Company has agreed to sell and the Underwriters have agreed, severally, and not jointly or jointly and severally, to purchase, as principals, the Offered Shares on the Closing date at the Offering Price, payable in cash to the Company against delivery of the Offered Shares. The obligations of the Underwriters under the Underwriting Agreement are subject to compliance with all legal requirements and the conditions contained in the Underwriting Agreement. The Underwriters may terminate their obligations under the Underwriting Agreement at their discretion on the basis of a "material change out", "disaster out", "regulatory out" or similar provision and may also be terminated upon the occurrence of certain other stated events. The Underwriters are, however, obligated to take up and pay for all of the Offered Shares if any of those Offered Shares are purchased under the Underwriting Agreement.

The terms of the Offering, including the Offering Price, were determined by arm's length negotiation between the Company and the Underwriters, with reference to the prevailing market price of the Common Shares on the TSX and prevailing market conditions. Subscriptions for Offered Shares will be received subject to rejection or allotment in whole or in part and the Underwriters reserve the right to close the subscription books at any time without notice.

The Offering is being made only in the United States pursuant to the multijurisdictional disclosure system implemented by the SEC and the securities regulatory authorities in Canada. The Offered Shares and the Additional Shares will only be offered in the United States by the Underwriters either directly or through their respective duly registered U.S. broker-dealer affiliates or agents, as applicable.

**Indemnification**

We have also agreed to indemnify the Underwriters against certain liabilities, including under the U.S. Securities Act, the Exchange Act or other federal or state law or regulation or Canadian law, at common law or otherwise, and to contribute to payments that the Underwriters may be required to make in respect of those liabilities.

**Option to Purchase Additional Common Shares**

In addition, the Company has granted the Underwriters the Over-Allotment Option, which is exercisable in whole or in part for a period of 30 days from and including the Closing and pursuant to which the Underwriters may purchase Additional Shares, being up to an additional 15% the Offering, on the same terms as set forth above to cover over-allotments, if any, and for market stabilization purposes. This prospectus qualifies the grant of the Over-Allotment Option and the issuance of Additional Shares on the exercise of the Over-Allotment Option. A purchaser who acquires Additional Shares forming part of the Underwriters' over-allocation position acquires those Additional Shares under this prospectus

**Commission**

In consideration for the services provided by the Underwriters, the Company has agreed to pay to the Underwriters' Fee equal to 6.50% of the gross proceeds realized on the proceeds of the Offering (including on any exercise of the Over-Allotment Option), provided, however, that a reduced fee of 4.50% shall be paid in respect of that portion of gross proceeds attributable to investors who participate in the Offering that were introduced by the Company or its principals as friends and family (such list of investors to be provided in writing by the Company to the Lead Underwriter from time to time prior to the date of this prospectus). The Company has agreed to reimburse the Underwriters for reasonable fees and expenses and out-of-pocket expenses incurred in connection with the Offering, and, subject to a maximum aggregate amount of US$450,000 , for the fees and disbursements of the Underwriters' legal counsel. In addition, the Company may (in its sole discretion) award up to an additional 0.50% of the gross proceeds of this Offering to one or more of the bookrunners for this Offering as incentive compensation. Underwriters will not receive any other fee or commission from the Company in connection with the completion of the Offering.

**Price Stabilization, Short Positions and Penalty Bids**

Until the distribution of the Common Shares is completed, SEC rules may limit Underwriters and selling group members from bidding for and purchasing our Common Shares. However, the Underwriters may engage in transactions that stabilize the price of the Common Shares, such as bids or purchases to peg, fix or maintain that price. The Underwriters are not, however, required to engage in these activities.

Pursuant to the rules and policy statements of certain Canadian securities regulators, the Underwriters may not, at any time during the period ending on the date the selling process for the Common Shares ends and all stabilization arrangements relating to the Common Shares are terminated, bid for or purchase our securities for their own account or for accounts over which they exercise control or direction. The foregoing restriction is, however, subject to exceptions where the bid or purchase is not made for the purpose of creating actual or apparent active trading in, or raising the price of, the Common Shares. These exceptions include bids or purchases permitted under the rules of applicable regulatory authorities and the TSX, including the Universal Market Integrity Rules for Canadian Marketplaces administered by the Canadian Investment Regulatory Organization, relating to market stabilization and passive market-making activities and a bid or purchase made for and on behalf of a customer where the order was not solicited during the period of distribution.

The Underwriters may also impose a penalty bid. This occurs when a particular Underwriter repays to the Underwriters a portion of the underwriting discount received by it because the Lead Underwriter has repurchased Common Shares sold by or for the account of such Underwriter in stabilizing or short covering transactions.

Similar to other purchase transactions, the Underwriters' purchases to cover the syndicate short sales may have the effect of raising or maintaining the market price of our Common Shares or preventing or retarding a decline in the market price of our Common Shares. As a result, the price of our Common Shares may be higher than the price that might otherwise exist in the open market. Subject to applicable rules, the Underwriters may conduct these transactions on the NASDAQ or the TSX, in the over-the-counter market or otherwise. The Underwriters may engage in market stabilization or market balancing activities on the TSX where the bid for or purchase of our securities is for the purpose of maintaining a fair and orderly market in such securities, subject to price limitations applicable to such bids or purchases. Such transactions, if commenced, may be discontinued at any time.

Neither we nor any of the Underwriters make any representation or prediction as to the direction or magnitude of any effect that the transactions described above may have on the price of our Common Shares. In addition, neither we nor any of the Underwriters make any representation that the Lead Underwriter will engage in these transactions or that these transactions, once commenced, will not be discontinued without notice.

**Electronic Distribution**

This prospectus may be made available in electronic format on websites or through other online services maintained by the Underwriters or by its affiliates (in accordance with Rule 172 under the U.S. Securities Act). In those cases, prospective investors may view offering terms online and prospective investors may be allowed to place orders online. Other than this prospectus in electronic format, the information on the Underwriters' websites or our website and any information contained in any other websites maintained by the Underwriters or by us is not part of this prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed by us or the Underwriters in their capacity as the Underwriters, and should not be relied upon by investors.

**Listing**

Our Common Shares are currently listed and posted for trading on the TSX and the ASX under the trading symbol "AII", and are traded on the FSE under the trading symbol "ALI", and the OTCQX under the trading symbol "ALMTF". We have applied to list our Common Shares (including the Common Shares being distributed hereunder) on the NASDAQ under the symbol "**ALM**". Upon and subject to receipt of all requisite approvals and the commencement of trading of the Common Shares on the NASDAQ, trading of the Common Shares on the OTCQX will cease. We have also applied to list the Common Shares being distributed hereunder on the TSX. Listing on the NASDAQ and the TSX will be subject to our fulfillment of all of the listing requirements of the NASDAQ and the TSX, respectively.

An active trading market for our Common Shares in the United States may not develop. It is also possible that after the Offering the Common Shares will not trade in the public market at or above the public offering price.

**No Sales of Similar Securities**

The Company has agreed for a period of 120 days from the date of this prospectus that the Company will not, without the prior written consent of the Lead Underwriter, (i) directly or indirectly, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase or otherwise transfer or dispose of any Common Shares or any securities convertible into or exercisable or exchangeable for Common Shares or file any registration statement under the U.S. Securities Act with respect to any of the foregoing or (ii) enter into any swap or any other agreement or any transaction that transfers, in whole or in part, directly or indirectly, the economic consequence of ownership of the Common Shares, whether any such swap or transaction described in clause (i) or (ii) above is to be settled by delivery of Common Shares or other securities, in cash or otherwise, subject to certain limited exceptions. The Company has agreed to cause each of the directors and officers of the Company to enter into lock-up agreements, in form and content acceptable to the Underwriters and their counsel, acting reasonably, in favour of the Underwriters, evidencing their agreement not to directly or indirectly sell or agree to sell (or announce any intention to do so), any Common Shares or securities exchangeable or convertible into Common Shares for a period of 120 days from Closing without the Underwriters' prior written consent, subject to certain limited exceptions.

**Other Relationships**

In addition, in the ordinary course of their business activities, the Underwriters and their affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for their own account and for the accounts of their customers. Such investments and securities activities may involve securities and/or instruments of ours or our affiliates. The Underwriters and their affiliates may also make investment recommendations and/or publish or express independent research views in respect of such securities or financial instruments and may hold, or recommend to clients that they acquire, long and/or short positions in such securities and instruments.

**Settlement**

It is expected that the Company will arrange for the instant deposit of the Offered Shares by the Underwriters under the book-based system of registration, to be registered to DTC or its nominee and deposited with DTC on Closing, or as otherwise may be agreed to among the Company and the Underwriters. No certificates evidencing the Offered Shares will be issued to purchasers of the Offered Shares. Purchasers of the Offered Shares will receive only a customer confirmation from the Underwriter or other registered dealer from or through whom a beneficial interest in the Offered Shares is purchased. It is also expected that delivery of the Offered Shares will be made against payment therefor on or about the date of Closing, which will not be one business day following the date of the final prospectus (this settlement cycle being referred to as "**T+1**"). Under Rule 15c6-1 of the Exchange Act, trades in the secondary market are generally required to settle in one business day, unless the parties to any such trade expressly agree otherwise. Accordingly, purchasers who wish to trade their Offered Shares prior to the date of Closing will be required, by virtue of the fact that the Offered Shares will not settle in T+1, to specify an alternate settlement cycle at the time of any such trade to prevent a failed settlement. Purchasers of Offered Shares who wish to trade their Offered Shares prior to the date of Closing should consult their own advisors.

**Selling Restrictions Outside of the United States**

This prospectus forms part of a registration statement on Form F-10 filed with the SEC and with the Ontario Securities Commission to register the Common Shares offered hereby under the Securities Act. This prospectus does not qualify the distribution of the Common Shares offered hereby in any province or territory of Canada. No action has been taken by the Company that would permit a public offering of the Offered Shares in any jurisdiction outside the United States where action for that purpose is required. The Offered Shares may not be offered or sold, directly or indirectly, nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such Offered Shares be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and to observe any restrictions relating to the Offering and the distribution of this prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any Offered Shares in any jurisdiction in which such an offer or a solicitation is unlawful.

 **

**Disclaimers About Non-U.S. Jurisdictions**

 

***Canada***

The common shares may be sold only to purchasers purchasing, or deemed to be purchasing, as principal that are accredited investors, as defined in National Instrument 45-106 Prospectus Exemptions or subsection 73.3(1) of the Securities Act (Ontario), and are permitted clients, as defined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. Any resale of the common shares must be made in accordance with an exemption from, or in a transaction not subject to, the prospectus requirements of applicable securities laws. Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for rescission or damages if this prospectus (including any amendment thereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province or territory for particulars of these rights or consult with a legal advisor. Pursuant to section 3A.3 (or, in the case of securities issued or guaranteed by the government of a non-Canadian jurisdiction, section 3A.4) of National Instrument 33-105 Underwriting Conflicts (NI 33-105), the Underwriters are not required to comply with the disclosure requirements of NI 33-105 regarding Underwriter conflicts of interest in connection with this Offering.

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***European Economic Area***

In relation to each Member State of the European Economic Area (each, a "**Member State**"), no offer of shares may be made to the public in that Member State other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to any legal entity which is a qualified investor as defined in the Prospectus Regulation (as defined below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to fewer than 150 natural or legal persons (other than qualified investors as defined in the Prospectus Regulation), subject to obtaining the prior consent of the representatives; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in any other circumstances falling within Article 1(4) of the Prospectus Regulation, provided that no such offer of shares of common stock shall require us or any of our representatives to publish a prospectus pursuant to Article 3 of the Prospectus Regulation or supplement a prospectus pursuant to Article 23 of the Prospectus Regulation and each person who initially acquires any shares or to whom any offer is made will be deemed to have represented, acknowledged and agreed to and with each of the representatives and us that it is a "qualified investor" as defined in the Prospectus Regulation.

In the case of any shares of common stock being offered to a financial intermediary as that term is used in Article 5 of the Prospectus Regulation, each such financial intermediary will be deemed to have represented, acknowledged and agreed that the shares acquired by it in the offer have not been acquired on a nondiscretionary basis on behalf of, nor have they been acquired with a view to their offer or resale to, persons in circumstances which may give rise to an offer of any shares of common stock to the public other than their offer or resale in a Member State to qualified investors as so defined or in circumstances in which the prior consent of the representatives has been obtained to each such proposed offer or resale.

For the purposes of this provision, the expression an "offer of shares of common stock to the public" in relation to any shares of common stock in any Member State means the communication in any form and by means of sufficient information on the terms of the offer and the shares of common stock to be offered so as to enable an investor to decide to purchase shares of common stock, and the expression "Prospectus Regulation" means Regulation (EU) 2017/1129 (as amended).

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***United Kingdom***

No shares of common stock have been offered or will be offered pursuant to the Offering to the public in the United Kingdom prior to the publication of a prospectus in relation to the shares of common stock which has been approved by the Financial Conduct Authority, except that the shares of common stock may be offered to the public in the United Kingdom at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to any legal entity which is a qualified investor as defined under Article 2 of the UK Prospectus Regulation (as defined below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to fewer than 150 natural or legal persons (other than qualified investors as defined under Article 2 of the UK Prospectus Regulation), subject to obtaining the prior consent of any underwriter for any such offer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in any other circumstances falling within Section 86 of the Financial Services and Markets Act 2000 ("**FSMA**");

 

*provided* that no such offer of the shares of common stock shall require any underwriter to publish a prospectus pursuant to Section 85 of the FSMA or supplement a prospectus pursuant to Article 23 of the UK Prospectus Regulation.

For the purposes of this provision, the expression an "offer to the public" in relation to the shares in the United Kingdom means the communication in any form and by any means of sufficient information on the terms of the offer and any shares to be offered so as to enable an investor to decide to purchase or subscribe for any shares and the expression "UK Prospectus Regulation" means Regulation (EU) 2017/1129 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 and each person who initially acquires any shares of common stock or to whom any offer is made will be deemed to have represented, warranted and agreed to and with each of the international placement agents and the Company that it is a qualified investor within the meaning of Article 2(e) of the UK Prospectus Regulation.

Each person in the UK who receives any communication in respect of, or who acquires any of our shares of common stock under, the offers to the public contemplated in this prospectus, or to whom our shares of common stock are otherwise made available, will be deemed to have represented, warranted, acknowledged and agreed to and with each international placement agent, the Company and the underwriters that it and any person on whose behalf it acquires our shares of common stock is: (i) a qualified investor within the meaning of Article 2(e) of the UK Prospectus Regulation; and (ii) in the case of any of our shares of common stock by it as a financial intermediary, as that term is used in Article 5(1) of the UK Prospectus Regulation, (A) our shares of common stock acquired by it in the offer have not been acquired on behalf of, nor have they been acquired with a view to their offer or resale to, persons in the UK other than qualified investors, as that term is defined in the UK Prospectus Regulation, or in circumstances in which the prior consent of the international placement agents has been given to the offer or resale; or (B) where our shares of common stock have been acquired by it on behalf of persons in the UK other than qualified investors, the offer of those shares of common stock fall within one of the exemptions listed in points (b) and (d) to Article 1(4) of the UK Prospectus Regulation.

In this section, the expression an "offer" of shares of common stock to the public in relation to any shares of common stock means the communication in any form and by any means of sufficient information on the terms of the offer and the shares of common stock to be offered so as to enable an investor to decide to purchase or subscribe for the shares of common stock.

This prospectus is only for distribution to and directed at: (i) in the United Kingdom, persons having professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the "**Order**") and high net worth entities falling within Article 49(2)(a) to (d) of the Order; (ii) are persons falling within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations etc.") of the Financial Promotion Order; (iii) persons who are outside the United Kingdom; and (iv) persons to whom an invitation or inducement to engage in investment activity (within the meaning of Section 21 of the FSMA) in connection with the issue or sale of any securities may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as "**Relevant Persons**"). The shares of common stock will only be available to, and any invitation, offer or agreement to subscribe for, purchase or otherwise acquire such shares will be engaged only with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this prospectus or any of its contents.

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***Switzerland***

We have not and will not register with the Swiss Financial Market Supervisory Authority ("**FINMA**") as a foreign collective investment scheme pursuant to Article 119 of the Federal Act on Collective Investment Scheme of 23 June 2006, as amended ("**CISA**") and accordingly the shares of common stock being offered pursuant to this prospectus have not and will not be approved, and may not be licensable, with FINMA. Therefore, the shares of common stock have not been authorized for distribution by FINMA as a foreign collective investment scheme pursuant to Article 119 CISA and the shares of common stock offered hereby may not be offered to the public (as this term is defined in Article 3 CISA) in or from Switzerland. The shares of common stock may solely be offered to "qualified investors", as this term is defined in Article 10 CISA, and in the circumstances set out in Article 3 of the Ordinance on Collective Investment Scheme of 22 November 2006, as amended, or the "CISO", such that there is no public offer. Investors, however, do not benefit from protection under CISA or CISO or supervision by FINMA. This prospectus and any other materials relating to the shares of common stock are strictly personal and confidential to each offeree and do not constitute an offer to any other person. This prospectus may only be used by those qualified investors to whom it has been handed out in connection with the offer described herein and may neither directly or indirectly be distributed or made available to any person or entity other than its recipients. It may not be used in connection with any other offer and will in particular not be copied or distributed to the public in Switzerland or from Switzerland. This prospectus does not constitute an issue prospectus as that term is understood pursuant to Article 652a or 1156 of the Swiss Federal Code of Obligations. We have not applied for a listing of the shares of common stock on the SIX Swiss Exchange or any other regulated securities market in Switzerland, and consequently, the information presented in this prospectus does not necessarily comply with the information standards set out in the listing rules of the SIX Swiss Exchange and corresponding prospectus schemes annexed to the listing rules of the SIX Swiss Exchange.

Neither this prospectus nor any other offering or marketing material relating to the Offering, the Company, or the shares of common stock have been or will be filed with or approved by any Swiss regulatory authority. In particular, this prospectus will not be filed with, and the offer of shares of common stock will not be supervised by, FINMA, and the offer of shares of common stock has not been and will not be authorized under CISA. The investor protection afforded to acquirers of interests in collective investment schemes under the CISA does not extend to acquirers of shares of common stock.

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***Hong Kong***

The shares of common stock have not been offered or sold and will not be offered or sold in Hong Kong, by means of any document, other than (a) to "professional investors" as defined in the Securities and Futures Ordinance (Cap. 571) of Hong Kong and any rules made under that Ordinance; or (b) in other circumstances which do not result in the document being a "prospectus" as defined in the Companies Ordinance (Cap. 32) of Hong Kong or which do not constitute an offer to the public within the meaning of that Ordinance. No advertisement, invitation or document relating to the shares of common stock has been or may be issued or has been or may be in the possession of any person for the purposes of issue, whether in Hong Kong or elsewhere, which is directed at, or the contents of which are likely to be accessed or read by, the public of Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to shares of common stock which are or are intended to be disposed of only to persons outside Hong Kong or only to "professional investors" as defined in the Securities and Futures Ordinance and any rules made under that Ordinance.

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***Israel***

In the State of Israel this prospectus shall not be regarded as an offer to the public to purchase shares of common stock under the Israeli Securities Law, 5728—1968, which requires a prospectus to be published and authorized by the Israel Securities Authority, if it complies with certain provisions of Section 15 of the Israeli Securities Law, 5728–1968, including, inter alia, if: (i) the offer is made, distributed or directed to not more than 35 investors, subject to certain conditions (the "**Addressed Investors**"), or (ii) the offer is made, distributed or directed to certain qualified investors defined in the First Addendum of the Israeli Securities Law, 5728—1968, subject to certain conditions (the "**Qualified Investors**"). The Qualified Investors shall not be taken into account in the count of the Addressed Investors and may be offered to purchase securities in addition to the 35 Addressed Investors. We have not and will not take any action that would require it to publish a prospectus in accordance with and subject to the Israeli Securities Law, 5728—1968. We have not and will not distribute this prospectus or make, distribute or direct an offer to subscribe for our common stock to any person within the State of Israel, other than to Qualified Investors and up to 35 Addressed Investors.

Qualified Investors may have to submit written evidence that they meet the definitions set out in of the First Addendum to the Israeli Securities Law, 5728—1968. In particular, we may request, as a condition to be offered common stock, that Qualified Investors will each represent, warrant and certify to us and/or to anyone acting on our behalf: (i) that it is an investor falling within one of the categories listed in the First Addendum to the Israeli Securities Law, 5728—1968; (ii) which of the categories listed in the First Addendum to the Israeli Securities Law, 5728—1968 regarding Qualified Investors is applicable to it; (iii) that it will abide by all provisions set forth in the Israeli Securities Law, 5728—1968 and the regulations promulgated thereunder in connection with the offer to be issued common stock; (iv) that the shares of common stock that it will be issued are, subject to exemptions available under the Israeli Securities Law, 5728—1968: (a) for its own account; (b) for investment purposes only; and (c) not issued with a view to resale within the State of Israel, other than in accordance with the provisions of the Israeli Securities Law, 5728—1968; and (v) that it is willing to provide further evidence of its Qualified Investor status. Addressed Investors may have to submit written evidence in respect of their identity and may have to sign and submit a declaration containing, inter alia, the Addressed Investor's name, address and passport number or Israeli identification number.

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***Australia***

No placement document, prospectus, product disclosure statement, or other disclosure document has been lodged with the Australian Securities and Investments Commission in relation to this Offering. This prospectus does not constitute a prospectus, product disclosure statement, or other disclosure document under the Corporations Act 2001, or the Corporations Act, and does not purport to include the information required for a prospectus, product disclosure statement, or other disclosure document under the Corporations Act.

Any offer in Australia of the shares may only be made to persons, or the Exempt Investors, who are "sophisticated investors" (within the meaning of section 708(8) of the Corporations Act), "professional investors" (within the meaning of section 708(11) of the Corporations Act), or otherwise pursuant to one or more exemptions contained in section 708 of the Corporations Act so that it is lawful to offer the shares without disclosure to investors under Chapter 6D of the Corporations Act.

The shares applied for by Exempt Investors in Australia must not be offered for sale in Australia in the period of 12 months after the date of allotment under the Offering, except in circumstances where disclosure to investors under Chapter 6D of the Corporations Act would not be required pursuant to an exemption under section 708 of the Corporations Act or otherwise or where the offer is pursuant to a disclosure document which complies with Chapter 6D of the Corporations Act. Any person acquiring shares must observe such Australian on-sale restrictions.

This prospectus contains general information only and does not take account of the investment objectives, financial situation, or particular needs of any particular person. It does not contain any securities recommendations or financial product advice. Before making an investment decision, investors need to consider whether the information in this prospectus is appropriate to their needs, objectives and circumstances, and, if necessary, seek expert advice on those matters.

**ENFORCEABILITY OF CIVIL LIABILITIES**

We are a company incorporated under the *Canada Business Corporations Act*, and it is not certain that the Company will proceed with the Domestication. Most of our directors and officers, and some or all of the experts and Underwriters named in this prospectus, are residents of Canada or otherwise reside outside the United States, and all or a substantial portion of their assets may be, and a substantial portion of the Company's assets are, located outside the United States. We have appointed an agent for service of process in the United States (as set forth below), but it may be difficult for holders of securities who reside in the United States to effect service within the United States upon those directors, officers and experts who are not residents of the United States. It may also be difficult for holders of securities who reside in the United States to realize in the United States upon judgments of courts of the United States predicated upon our civil liability and the civil liability of our directors, officers and experts under the United States federal securities laws.

We filed with the SEC, concurrently with our Registration Statement on Form F-10 of which this prospectus is a part, an appointment of agent for service of process on Form F-X. Under the Form F-X, we appointed CT Corporation System, 28 Liberty Street, New York, New York 10005 as our agent for service of process in the United States in connection with any investigation or administrative proceeding conducted by the SEC, and any civil suit or action brought against or involving us in a U.S. court arising out of or related to or concerning the offering of securities under this prospectus.

**LEGAL MATTERS**

Certain legal matters in connection with the Offering will be passed upon on behalf of the Company by Norton Rose Fulbright Canada LLP with respect to Canadian legal matters and by Norton Rose Fulbright US LLP with respect to U.S. legal matters, and on behalf of the Underwriters by Blake, Cassels & Graydon LLP, with respect to Canadian legal matters, and by Milbank LLP with respect to U.S. legal matters. The partners and associates of Norton Rose Fulbright Canada LLP as a group beneficially own, directly or indirectly, less than 1% of the outstanding securities of the Company. The partners and associates of Blake, Cassels & Graydon LLP as a group beneficially own, directly or indirectly, less than one percent of the outstanding securities of the Company.

**INTEREST OF EXPERTS**

The technical information contained or incorporated by reference in this prospectus has been included or incorporated by reference in reliance on the report, valuation, statement or opinion of the persons described below.

Mr. Wheeler, a qualified person pursuant to NI 43-101, reviewed, prepared or supervised the preparation of information upon which scientific and technical information relating to the Company's Mineral Projects contained or incorporated by reference in this Prospectus is based. He did not, at the time he prepared or certified any such statement, report or valuation, receive after such time, nor will he receive, any registered or beneficial interest, direct or indirect, in any securities or other property of the Company or one of the Company's associates or affiliates in connection with the preparation of such technical reports or estimates. As of the date hereof, such person owns beneficially, directly or indirectly, less than 1% of any outstanding class of securities of the Company.

Please see "*Auditors, Registrar and Transfer Agent*" for a discussion of the interests of Zeifmans LLP and please see "*Legal Matters*" for a discussion of the interests of the legal experts involved in preparing this prospectus.

**AUDITORS, REGISTRAR AND TRANSFER AGENT**

The auditors of the Company are Zeifmans LLP at 201 Bridgeland Avenue, Toronto, ON, M6A 1Y7.

The transfer agent and registrar for the Common Shares in Canada is Computershare Investor Services Inc. at its principal offices at 3rd Floor – 510 Burrard Street, Vancouver, BC V6C 3B9, and in the United States is Computershare Trust Company N.A., at its principal office at 150 Royall Street, Canton, MA 02021.

Zeifmans LLP have issued their Independent Auditor's Report dated March 18, 2025 in respect of the Company's consolidated financial statements for the years ended December 31, 2024 and 2023. Zeifmans LLP is independent with respect to the Company in accordance with the ethical requirements that are relevant to its audits of the consolidated financial statements in Canada, and within the meaning of the U.S. Securities Act and the applicable rules and regulations thereunder adopted by the SEC and the Public Company Accounting Oversight Board (United States).

**DOCUMENTS FILED AS PART OF THE REGISTRATION STATEMENT**

In addition to the documents specified in this prospectus under the heading "*Documents Incorporated by Reference*", the following documents have been or will be filed with the SEC as part of the Registration Statement of which this prospectus forms a part: (i) the Underwriting Agreement described under the heading "*Plan of Distribution*"; (ii) powers of attorney from our directors and officers, as applicable; (iii) the consent of Zeifmans LLP; (iv) the consent of each "qualified person" for the purposes of NI 43-101 listed on the Exhibit Index of the Registration Statement; and (v) the consents of Norton Rose Fulbright Canada LLP, as Canadian legal counsel, and of Norton Rose Fulbright US LLP, as U.S. legal counsel.

**DOCUMENTS INCORPORATED BY REFERENCE**

Copies of the documents incorporated herein by reference may be obtained on request without charge from the Corporate Secretary of the Company at 100 King Street West, Suite 5700, Toronto, Ontario, M5X 1C7, telephone (647) 438-9766 and are also available electronically under the Company's profile on SEDAR+ at <u>www.sedarplus.com</u> and on EDGAR, at <u>www.sec.gov</u>.

The following documents, filed with the securities commissions or similar regulatory authorities in certain provinces of Canada and filed with, or furnished to, the SEC are specifically incorporated by reference in, and form an integral part of, this prospectus:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. unaudited interim condensed
 consolidated financial statements of the Company filed on May 15, 2025 for the three months
 ended March 31, 2025 and 2024;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. amended management's
 discussion and analysis of the Company dated May 15, 2025 and filed on June 27, 2025 for
 the three months ended March 31, 2025 and 2024;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. the annual information
 form of the Company dated March 20, 2025 and filed on March 21, 2025 for the year ended December
 31, 2024 (the "**Annual Information Form** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. audited annual consolidated
 financial statements of the Company dated March 18, 2025 and filed on March 21, 2025 for
 the years ended December 31, 2024 and 2023, together with the notes thereto and the independent
 auditor's report thereon;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. management's
 discussion and analysis of the Company dated March 20, 2025 and filed on March 21, 2025 for
 the years ended December 31, 2024 and 2023;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. management information
 circular of the Company dated March 21, 2025 and filed on March 26, 2025, prepared for the
 purposes of the annual general and special meeting of the shareholders of the Company held
 on April 30, 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. management information
 circular of the Company dated January 31, 2025 and filed on February 4, 2025, prepared for
 the purposes of the special meeting of the shareholders of the Company held on February 27,
 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. the
material change report of the Company dated as of, and filed on, February 10, 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. the material change
 report of the Company dated as of, and filed on, March 24, 2025; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. the material change
 report of the Company dated as of, and filed on, June 6, 2025.

Any documents of the type required by section 11.1 of Form 44-101F1 – *Short Form Prospectus* to be incorporated by reference in a short form prospectus, including those types of documents referred to above and press releases issued by the Company referencing incorporation by reference in this prospectus, if filed by Almonty with the securities commissions or similar authorities in Canada after the date of this prospectus and prior to the completion or termination of the Offering, shall be deemed incorporated by reference in the prospectus for the purposes of the Offering. Documents referenced in any of the documents incorporated by reference in this prospectus but not expressly incorporated by reference therein or herein and not otherwise required to be incorporated by reference therein or in this prospectus are not incorporated by reference in this prospectus. These documents are available through the internet on SEDAR+ which can be accessed at <u>www.sedarplus.com</u>. In addition, to the extent that any document or information incorporated by reference in this prospectus is filed with, or furnished to, the SEC pursuant to the Exchange Act after the date of this prospectus and prior to the completion or termination of the Offering, such document or information will be deemed to be incorporated by reference as an exhibit to the Registration Statement of which this prospectus forms a part (in the case of a report on Form 6-K, if and to the extent expressly provided therein). These documents are available through the internet on EDGAR which can be accessed at <u>www.sec.gov</u>.

Documents referenced in any of the documents incorporated by reference in this prospectus but not expressly incorporated by reference therein or herein and not otherwise required to be incorporated by reference therein or in this prospectus are not incorporated by reference in this prospectus.

**Any statement contained in this prospectus or in any document incorporated or deemed to be incorporated by reference in this prospectus for the purpose of this Offering shall be deemed to be modified or superseded, for purposes of this prospectus, to the extent that a statement contained herein or in any other subsequently filed document which also is or is deemed to be incorporated by reference herein modifies or supersedes such prior statement. The modifying or superseding statement need not state that it has modified or superseded a prior statement or include any other information set forth in the document which it modifies or supersedes. The making of such a modifying or superseding statement shall not be deemed an admission for any purposes that the modified or superseded statement, when made, constituted a misrepresentation, an untrue statement of a material fact or an omission to state a material fact that is required to be stated or that is necessary to make a statement not misleading in light of the circumstances in which it was made. Any statement so modified or superseded shall not constitute a part of this prospectus, except as so modified or superseded.**

**Without limiting the generality of the foregoing, and for greater certainty, the disclosure appearing in this prospectus related to the Mineral Projects and the disclosure appearing in this prospectus under the headings "Our Business", "Mineral Projects", "Management", and "Risk Factors" modifies and supersedes the disclosure found in the Annual Information Form related to these subject matters, including under the headings "Risk Factors", "Mining Projects", and "Description Of Business" of the Annual Information Form.**

References to our website in any documents that are incorporated by reference in this prospectus do not incorporate by reference the information on such website into this prospectus and we disclaim any such incorporation by reference.

**WHERE YOU CAN FIND MORE INFORMATION**

We are required to file with the securities commission or authority in each of the applicable provinces of Canada annual and quarterly reports, material change reports and other information. We are not currently subject to the informational requirements of the Exchange Act. Upon completion of this Offering, we will be subject to the information reporting requirements of the Exchange Act, and will file reports with the SEC under those requirements. Those other reports or other information may be inspected without charge at the locations described above. Under the multijurisdictional disclosure system adopted by the United States and Canada, these reports and other information (including financial information) may be prepared in accordance with the disclosure requirements of the securities regulatory authorities of Canada, which differ in certain respects from those in the United States. As a foreign private issuer, we are exempt from the rules under the Exchange Act prescribing the furnishing and content of proxy statements, and our officers, directors and principal shareholders are exempt from the reporting and short-swing profit recovery provisions contained in Section 16 of the Exchange Act. In addition, we are not required to publish financial statements as promptly as U.S. companies.

You may read any document we file with or furnish to the securities commissions and authorities of certain provinces of Canada through SEDAR+ at <u>www.sedarplus.com</u>. Certain of our filings are also electronically available on EDGAR and may be accessed at <u>www.sec.gov</u>.

**PART II**

**INFORMATION NOT REQUIRED TO BE DELIVERED TO OFFEREES OR PURCHASERS** 

**Limitations on Liability and Indemnification of Directors and Officers.**

Under the Canada Business Corporations Act (the "**CBCA**"), we may indemnify our current or former directors or officers or another individual who acts or acted at our request as a director or officer, or an individual acting in a similar capacity, of another entity, against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred by the individual in respect of any civil, criminal, administrative, investigative or other proceeding in which the individual is involved because of his or her association with us or another entity. The CBCA also provides that we may advance moneys to a director, officer or other individual for costs, charges and expenses reasonably incurred in connection with such a proceeding; provided that such individual shall repay the moneys if the individual does not fulfill the conditions described below.

However, indemnification is prohibited under the CBCA unless the individual:

● acted honestly and in good faith with a view to our best interests, or, as the case may be, to the best interests of the other entity for which the individual acted as director or officer or in a similar capacity at our request; and

● in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, the individual had reasonable grounds for believing that his or her conduct was lawful.

Our by-laws require us to indemnify to the fullest extent permitted by the CBCA each of our current or former directors or officers and each individual who acts or acted at our request as a director or officer, or an individual acting in a similar capacity, of another entity, against all costs, charges and expenses, including, without limitation, an amount paid to settle an action or satisfy a judgment, reasonably incurred by the individual in respect of any civil, criminal, administrative, investigative or other proceeding in which the individual is involved because of his or her association with us or another entity.

Our by-laws authorize us to purchase and maintain insurance for the benefit of each of our current or former directors or officers and each person who acts or acted at our request as a director or officer, or an individual acting in a similar capacity, of another entity.

We have entered into indemnity agreements with our directors and certain officers which provide, among other things, that we will indemnify him or her to the fullest extent permitted by law from and against all liabilities, costs, charges and expenses incurred as a result of his or her actions in the exercise of his or her duties as a director or officer.

We maintain insurance policies relating to certain liabilities that our directors and officers may incur in such capacity.

**Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers or persons controlling the Registrant pursuant to the foregoing provisions, the Registrant has been informed that in the opinion of the U.S. Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.**

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit**<br> **Number** | **Description** |
| 4.1 | [Annual Information Form of the Registrant for the fiscal year ended December 31, 2024, dated as of March 20, 2025.](ex4-1.htm) |
| 4.2 | [Audited Annual Condensed Consolidated Financial Statements of the Registrant for the fiscal years ended December 31, 2024 and 2023, together with the notes thereto and the independent auditor's report of Zeifmans LLP thereon.](ex4-2.htm) |
| 4.3 | [Management's Discussion and Analysis of the Registrant dated March 20, 2025 for the fiscal years ended December 31, 2024 and 2023.](ex4-3.htm) |
| 4.4 | [Unaudited Interim Condensed Consolidated Financial Statements of the Registrant dated May 13 and filed on May 15, 2025 for the three months ended March 31, 2025 and 2024.](ex4-4.htm) |
| 4.5 | [Amended Management's Discussion and Analysis of the Registrant dated May 15, 2025 and filed on June 27, 2025 for the three months ended March 31, 2025 and 2024.](ex4-5.htm) |
| 4.6 | [Management Information Circular of the Registrant, dated March 21, 2025, relating to the Registrant's annual general and special meeting of shareholders held on April 30, 2025.](ex4-6.htm) |
| 4.7 | [Management Information Circular of the Registrant, dated January 31, 2025, relating to the Registrant's special meeting of shareholders held on February 27, 2025.](ex4-7.htm) |
| 4.8 | [Material Change Report of the Registrant, dated February 10, 2025.](ex4-8.htm) |
| 4.9 | [Material Change Report of the Registrant, dated March 24, 2025.](ex4-9.htm) |
| 4.10 | [Material Change Report of the Registrant, dated June 6, 2025.](ex4-10.htm) |
| 5.1 | [Consent of Zeifmans LLP.](ex5-1.htm) |
| 5.2 | [Consent of Norton Rose Fulbright Canada LLP.](ex5-2.htm) |
| 5.3 | [Consent of Norton Rose Fulbright US LLP.](ex5-3.htm) |
| 6.1 | [Powers of Attorney (included in Part III of this Registration Statement).](#a_030) |
| 107 | [Calculation of Filing Fee Tables](ex107.htm) |

---

+ To be filed by amendment.

**PART III** 

**UNDERTAKING AND CONSENT TO SERVICE OF PROCESS** 

**Item 1. Undertaking** 

The Registrant undertakes to make available, in person or by telephone, representatives to respond to inquiries made by the Commission staff, and to furnish promptly, when requested to do so by the Commission staff, information relating to the securities registered pursuant to Form F-10 or to transactions in said securities.

**Item 2. Consent to Service of Process** 

Concurrently with the filing of this Registration Statement on Form F-10, the Registrant will file with the Commission a written irrevocable consent and power of attorney on Form F-X.

Any change to the name or address of the agent for service of the Registrant shall be communicated promptly to the Commission by amendment of the Form F-X referencing the file number of this Registration Statement.

**SIGNATURES**

Pursuant to the requirements of the Securities Act, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form F-10 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the city of New York, New York, United States on July 7, 2025.

---

| | |
|:---|:---|
| **ALMONTY INDUSTRIES INC.** | **ALMONTY INDUSTRIES INC.** |
| By: | */s/ Lewis Black*  |
| Name: | Lewis Black |
| Title: | Chairman, President, Chief Executive Officer and Director |

---

**POWER OF ATTORNEY** 

KNOW ALL PERSONS BY THESE PRESENTS, that each individual whose signature appears below hereby constitutes and appoints Lewis Black and Mark Gelmon, his or her true and lawful agent, proxy and attorney-in-fact, with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign any and all amendments, including post effective amendments, and supplements to this Registration Statement on Form F-10, and registration statements filed pursuant to Rule 429 under the Securities Act, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents or his or her substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act, this registration statement has been signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| */s/ Lewis Black* | Chairman, President, Chief Executive Officer and Director | July 7, 2025 |
| Lewis Black | (Principal Executive Officer) |  |
| */s/ Mark Gelmon* | Chief Financial Officer | July 7, 2025 |
| Mark Gelmon | (Principal Financial and Accounting Officer) |  |
| */s/ Mark Trachuk* | Lead Director | July 7, 2025 |
| Mark Trachuk |  |  |
| */s/ Daniel D'Amato* | Director | July 7, 2025 |
| Daniel D'Amato |  |  |
| */s/ Dr. Thomas Gutschlag* | Director | July 7, 2025 |
| Dr. Thomas Gutschlag |  |  |
| */s/ Andrew Frazer* | Director | July 7, 2025 |
| Andrew Frazer |  |  |
| */s/ David Hanick* | Director | July 7, 2025 |
| David Hanick |  |  |
| */s/ Gustave F. Perna* | Director | July 7, 2025 |
| Gustave F. Perna |  |  |
| */s/ Alan Estevez* | Director | July 7, 2025 |
| Alan Estevez |  |  |

---

**AUTHORIZED REPRESENTATIVE** 

Pursuant to the requirements of the Securities Act, this Registration Statement on Form F-10 has been signed by the undersigned, solely in its capacity as the duly authorized representative of the Registrant in the United States, on July 7, 2025.

---

| | |
|:---|:---|
|  | */s/ Lewis Black*  |
| Name: | Lewis Black |
| Title: | Chairman, President, Chief Executive Officer and Director |

---

## Exhibit 4.1

**Exhibit 4.1**

**ANNUAL INFORMATION FORM**

**ALMONTY INDUSTRIES INC.**

100 King Street West, Suite 5700

Toronto, Ontario M5X 1C7

Canada

Tel: +1 647 438-9766

Fax: +1 416 628-2516

E-mail: <u>info@almonty.com</u>

**FOR THE YEAR ENDED DECEMBER 31, 2024**

**March 20, 2025**

---

| | |
|:---|:---|
| **Table of Contents** |  |
| **CORPORATE STRUCTURE** | **1** |
| **GENERAL DEVELOPMENT OF THE BUSINESS** | **3** |
| **DESCRIPTION OF BUSINESS** | **19** |
| **GENERAL** | **19** |
| **RISK FACTORS** | **25** |
| **MINING PROJECTS** | **39** |
| **DIVIDENDS** | **67** |
| **DESCRIPTION OF SHARE CAPITAL** | **67** |
| **DIRECTORS AND OFFICERS** | **71** |
| **CONFLICTS OF INTEREST** | **78** |
| **LEGAL PROCEEDINGS** | **78** |
| **INTERESTS OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS** | **78** |
| **TRANSFER AGENT AND REGISTRAR** | **80** |
| **MATERIAL CONTRACTS** | **81** |
| **INTERESTS OF EXPERTS** | **81** |
| **ADDITIONAL INFORMATION** | **81** |

---

---

| | |
|:---|:---|
| **CHARTER FOR THE AUDIT COMMITTEE** | **SCHEDULE A**-ERROR! BOOKMARK NOT DEFINED.** |

---

**PRESENTATION OF INFORMATION AND FORWARD-LOOKING STATEMENTS**

*Except where the context otherwise requires, all references in this Annual Information Form ("**AIF**") to the "Company", "Almonty", "we", "us", "our" or similar are to Almonty Industries Inc. and its subsidiaries, taken together.*

 

*Unless otherwise indicated, all dollar amounts are expressed in Canadian dollars.*

 

*This AIF contains forward-looking statements that reflect management's expectations, estimates and projections concerning future events in relation to the Company's business and the economic environment in which it operates. Forward-looking statements may include, but are not limited to, statements with respect to possible acquisitions, demand for tungsten, tungsten prices, tungsten recovery and production, reductions in operating costs, improvements in efficiencies or reduction in dilution, future remediation and reclamation activities, future mineral exploration, the estimation of mineral reserves and mineral resources, the realization of mineral reserve and mineral resource estimates, the timing of activities and the amount of estimated revenues and expenses, the success of exploration activities, permitting time lines, the success of mine development and construction activities, the success of future mine operations, the success of other future business operations, requirements for additional capital and sources and uses of funds. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "anticipates", "plans", "estimates", "intends", "strategy", "goals", "objectives" or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be "forward-looking statements".*

 

*Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events, results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward- looking statements. Such factors include, but are not limited to, the inability of the Company to maintain its interest in its mineral projects or to obtain or comply with all required permits and licences, risks normally incidental to exploration and development of mineral properties, uncertainties in the interpretation of drill results, the possibility that future exploration, development or mining results will not be consistent with expectations, changes in governmental regulation adverse to the Company, lack of adequate infrastructure at the mineral properties, economic uncertainties, the inability of the Company to obtain additional financing when and as needed, competition from other mining businesses, the future price of tungsten and other metals and commodities, fluctuation in currency exchange rates, title defects and other related matters. See Risks Factors in this AIF for a further discussion of factors that could cause the Company's actual results, performance or achievements to be materially different from any anticipated results, performance or achievements expressed or implied by forward-looking statements. The forward-looking statements in this AIF represent the expectations of management as of the date hereof and, accordingly, are subject to change after such date. Readers should not place undue importance on forward-looking statements and should not rely upon these statements as of any other date. The Company does not undertake to update any forward-looking information, except as, and to the extent, required by applicable laws. The forward-looking statements contained herein are expressly qualified by this cautionary statement*

 

**CORPORATE STRUCTURE**

Almonty is a corporation continued under the *Canada Business Corporation Act* (the "**CBCA**").

Almonty was incorporated on September 28, 2009 under the *Business Corporations Act* (British Columbia) under the name RCG Capital Inc. as a Capital Pool Company. On September 23, 2011, the Company completed its qualifying transaction (the "**Qualifying Transaction**"), whereby all of the issued and outstanding securities of 7887523 Canada Inc. ("**Almonty Sub**") were acquired in exchange for securities of the Company on a one-for-one basis and the Company changed its name to "Almonty Industries Inc.".

On March 27, 2012, Almonty filed articles of continuance and was continued from British Columbia to the CBCA. Almonty's common shares (the "**Common Shares**") trade on the Toronto Stock Exchange (the "**TSX**") and on the Australian Securities Exchange ("ASX"), both under the symbol "AII". Almonty's head and registered office is 100 King Street West, Suite 5700, Toronto Ontario, M5X 1C7.

In connection with the Qualifying Transaction and immediately prior to its completion, Almonty Sub acquired all of the issued and outstanding shares of Daytal Resources Spain, S.L. ("**Daytal**") from Heemskirk Europe PLC and Heemskirk Consolidated Limited. Daytal is the owner of a 100% interest in the Los Santos tungsten project located near Salamanca, Spain (the "**Los Santos Mine**").

Valtreixal Resources Spain S.L. ("**Valtreixal Resources**"), an indirect wholly-owned subsidiary of the Company, owns a 100% interest in the Valtreixal tin and tungsten mine project located in Western Spain (the "**Valtreixal Mine**"). The principal business of Valtreixal Resources is the exploration of the Valtreixal Mine.

On September 22, 2014, Almonty acquired 100% of the share capital of Wolfram Camp Mining Pty Ltd. ("**WCM**") and Tropical Metals Pty Ltd. ("**TM**") (which collectively own a 100% interest in the Wolfram Camp tungsten, wolframite and molybdenum mine located about 130 km from Cairns, Queensland, Australia, near the town of Dimbulah (the "**Wolfram Camp Mine**")) from Deutsche Rohstoff AG ("**DRAG**"). The principal business of each of WCM and TM is the advancement of exploration, development and production activities at the Wolfram Camp Mine.

However, during December 2018, the Board of Directors determined that it was in the best interests of the Company to cease expending further funds towards refurbishment and, consequently, the Company caused WCM and TM to be placed into voluntary liquidation with all requisite approvals received and was completed during fiscal 2023.

On June 4, 2015, Almonty acquired an 8% interest in Woulfe Mining Corp. ("**Woulfe**") and, through the acquisition of convertible debentures in Woulfe, gained control over the Woulfe board of directors with the ability to nominate a majority of the board members. On July 7, 2015, Almonty and Woulfe entered into an arrangement agreement in respect of the acquisition by Almonty of all of the issued and outstanding shares of Woulfe that it did not already own by way of a plan of arrangement under the *Business Corporations Act* (British Columbia) (the "**Plan of Arrangement**"). On August 21, 2015, Woulfe shareholders approved the Plan of Arrangement. On September 10, 2015, Almonty closed the Plan of Arrangement and acquired all of the shares of Woulfe that it did not already own, leading to Almonty having a 100% ownership interest in Woulfe. The principal asset of Woulfe is the Sangdong tungsten mine project located in Gangwon Province, Republic of Korea (the "**Sangdong Mine**").

On January 6, 2016, Almonty acquired 100% of the issued and outstanding shares of Beralt Ventures Inc. ("**BVI**") from Sojitz Tungsten Resources Inc. for €1.00. In connection therewith, Almonty acquired and purchased €12,260,000 in aggregate principal amount of debt that was owed by Beralt Tin & Wolfram (Portugal), S.A ("**BTW**"), a wholly-owned subsidiary of BVI, to Sojitz Corporation of Japan in exchange for a cash payment of €1,000,000 on closing and a promissory note issued by Almonty in the principal amount of €500,000, bearing interest at 4% per annum, maturing December 29, 2017. BVI, through its wholly-owned subsidiaries, is the 100% owner of the various rights and interests comprising the Panasqueira tungsten mine in Covilha, Castelo Branco, Portugal (the "**Panasqueira Mine**"). The Panasqueira Mine has been in production since 1896, and is located approximately 260 km northeast of Lisbon, Portugal.

**Inter-corporate Relationships**

The following illustrates the inter-corporate relationships between the Company and its subsidiaries and sets out the respective jurisdictions of existence of such subsidiaries and the percentage of their voting securities owned, controlled or directed, directly or indirectly, by the Company as at the date hereof.

![](ex4-1_002.jpg)

**GENERAL DEVELOPMENT OF THE BUSINESS**

**Three Year History**

Since its inception in 2012, Almonty has focused on the acquisition, development, and operation of tungsten mining projects, recognizing tungsten as a critical material with increasing demand across industrial and high-tech sectors. The company produces and processes tungsten for sale to global partners and has built a diversified portfolio of assets in key regions, including South Korea, Portugal, and Spain. Through strategic growth and ongoing resource development, Almonty aims to expand its global relevance and meet the needs of various industries.

Currently, Almonty is focusing on the development of the **Sangdong Mine** in South Korea and the ongoing operations of the **Panasqueira Mine** in Portugal. The Company also plans to restart production from tailings at the **Los Santos Mine** in Spain. The project pipeline also includes the **Valtreixal Mine** in Spain, which is under exploration and development.

Global presence through the following subsidiaries, including:

● **Woulfe Mining Corp.**, the owner of the Sangdong Mine in South Korea.

● **Beralt Tin & Wolfram (Portugal), S.A.**, which owns and operates the Panasqueira Mine.

● **Daytal Resources Spain S.L.**, the owner of the Los Santos Mine.

● **Valtreixal Resources Spain S.L.**, the owner of the Valtreixal tin and tungsten project.

The principal business of Toronto, Canada-based Almonty Industries Inc. is the mining, processing and shipping of tungsten concentrate from its Los Santos Mine in western Spain and its Panasqueira Mine in Portugal, the development of its Sangdong Mine in Gangwon Province, South Korea and the development of its Valtreixal Mine (tin/tungsten project) in north western Spain. The Los Santos Mine was acquired by Almonty in September 2011 and is located approximately 50 km from Salamanca in western Spain and produces tungsten concentrate. The Los Santos Mine was put on care and maintenance in February 2020 pending capital expenditure required to process its tailings inventory. The Panasqueira Mine, which has been in production since 1896, is located approximately 260 km northeast of Lisbon, Portugal, was acquired in January 2016 and produces tungsten concentrate. The Sangdong Mine, which was historically one of the largest tungsten mines in the world and one of the few long-life, high-grade tungsten deposits outside of China, was acquired in September 2015 through the acquisition of a 100% interest in Woulfe. Almonty owns 100% of the Valtreixal tin- tungsten project in north-western Spain. Additional discussion of Almonty's activities may be found at www.almonty.com and under Almonty's profile at <u>www.sedarplus.ca</u>.

**The Sangdong Mine**

The Sangdong Mine is an underground past producing mine located in Gangwon Province, South Korea, approximately 200km southeast of Seoul. The mine was formerly owned by Korea Tungsten Co. and was closed in 1990. The property was then acquired by Woulfe in 2006 and Almonty began the process of carrying out planning and engineering work with the goal of bringing the mine back into production in the near-term.

On September 10, 2015, Almonty completed the acquisition of all of the outstanding shares of Woulfe that it did not already own pursuant to the Plan of Arrangement, pursuant to which each issued and outstanding Woulfe common share (except for those Woulfe shares owned by Almonty) was exchanged for 0.1029 of one Common Share. Almonty issued an aggregate of 34,806,205 Common Shares in connection with the Plan of Arrangement.

During January 2020, the Company received a binding commitment letter for US$75.1 million from KfW IPEX-Bank ("**KfW**") for the proposed project financing for the development and operation of the Company's Sangdong Mine located in South Korea (the "**KfW Facility**").

The general terms of the binding commitment approved by the credit committee of KfW include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The
 principal amount of senior project finance loan to be US$75.1-million;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Interest
 rate – three-month London interbank offered rate (SOFR), plus 2.3 per cent, and borrower
 expects this to reduce on issuance of the ECA cover;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Term
 of 6.25 years with an initial principal repayment holiday during construction and quarterly
 instalment repayments of principal commencing after the second anniversary of the initial
 drawdown;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Oesterreichische
 Kontrollbank AG (OeKB) is committed to providing an import credit scheme cover guarantee
 based on the long-term offtake agreement, discussed above.

Almonty worked closely with the Independent Engineer at the Sangdong Mine during 2020 to ensure sustainable development outcomes and the integration of environmental, safety and social considerations into the project development procedures, meeting the stringent international standards and guidelines.

Almonty also announced the mechanical completion and the commencement of commissioning of the government-subsidized pilot plant at the site.

On February 10, 2020, Almonty announced that it successfully renegotiated and subsequently amended its off-take agreement, originally dated March 12, 2018, (the "**Amended Off-Take Agreement**") with an existing customer (the "**Customer**") for the tungsten concentrate to be mined and processed at the Company's wholly-owned Sangdong Mine in South Korea. As announced in news releases dated March 13, 2018 and March 15, 2018, the original agreement had a term of 10 years that called for floor price revenues for the Company in a minimum amount of 500,000,000 CAD.

The Amended Off-Take Agreement, based on updated pricing models and subject to the terms and conditions of the amended agreement, increases the term from 10 years to 15 years and now calls for floor price revenues for the Company in a minimum amount of CAD750,000,000.

The realization of the benefits of the off-take agreement are subject to risk factors typical of an off-take agreement of this nature, including if the Company is unable to meet its obligations to deliver tungsten concentrate in accordance with the terms of the off-take agreement, variable costs of shipping and production over the term of the contract, the customer's ability to purchase the tungsten concentrate produced by Almonty at the mine, and the continued economic viability of the customer or its successors for the life of the off-take agreement. Finally, given these risks, there is no guarantee that the Company will realize the revenues contemplated under the terms of the off-take agreement.

On February 24, 2020, Almonty announced that it received notification that the preliminary ECA cover has been issued by OeKB (Oesterreichische Kontrollbank AG), which is underpinning the KfW Facility.

On May 11, 2020, Almonty announced the execution of a memorandum of understanding ("**MOU"**) amongst Gangwon Provincial Government, Yeongwol County Government and AKT. The MOU was signed in the Office of the Gangwon Provincial Government by Governor MoonSoon Choi, Mayor Myeong-Seo Choi of Yeongwol County and Mr. Lewis Black, President & CEO of AKT. The MOU stipulates that, in recognition of the importance of tungsten and the development of the Sangdong Mine to the national economy and competitiveness, both municipal governments shall cooperate as much as possible for administrative and financial support including the granting of permits, and the provision of certain subsidies and tax exemptions. It also states that the municipal governments shall fully cooperate and support in providing required infrastructure for the successful development of the Sangdong Mine.

On May 19, 2020, Almonty announced the completion and delivery of the basic engineering work by Metso for the crushing and grinding units of the processing plant for the Sangdong Mine.

The overall process flowsheet with process mass balance, equipment list, plant layout drawings, process control philosophy, control diagrams and general technical information were provided after five months of extensive work by Metso, the world's leading manufacturer of mining equipment, in collaboration with Almonty's technical team.

Ore characterization tests on drop weight, bond mill work index, abrasion and crushability were conducted at the Metso laboratories during 2019 and 2020 in order to determine the physical properties, mineral liberation and comminution indices of the ore, which were used as the basis for the design criteria of the equipment for the Sangdong processing plant.

On May 27, 2020, Almonty announced the finalization of the plant layout and configuration upon the fixing of the location of the backfill plant at the site of the Sangdong Mine.

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 location of the backfill plant of approximately 1,300 m2 is determined at a 730-meter altitude
 near the Baegun adit, sitting atop of Taebaek Level (680-meter altitude) and Sangdong Level
 (656-meter altitude), where mining activities for initial years will be focused. The higher
 altitude is designed to enable reduced operational expenses through gravity pumping of tailings
 and a simplified and cost-effective backfilling reticulation system.

&nbsp;&nbsp;&nbsp;&nbsp;2. This
 location is also closer to the additional deposit identified as upside potential by Korea
 Tungsten and the Korea Resource Corporation, ensuring the effectiveness of backfilling not
 only the targeted stopes of the Company's NI 43-101 indicated and inferred resources
 already defined, but also the future stopes of the continued deposit in the western direction
 which was identified through drilling campaigns in 1980s.

&nbsp;&nbsp;&nbsp;&nbsp;3. The
 Sangdong backfill plant has been prepared and designed by Upgrade Mining Solutions (Europe),
 a specialist engineering firm in tailings paste fill.

On August 26, 2020, Almonty reported that it finalized the completion agreement with KfW with respect to the KfW Facility.

On September 8, 2020, Almonty reported that it had finalized the facility agreement (loan agreement) with KfW.

On October 21, 2020, Almonty reported that it received, from the South Korean government, an extension of its Extraction Rights permit to July 1, 2031. In addition, once the Company finalizes the KfW Facility, the extraction permit will automatically be extended to July 1, 2041 and, once production commences, this extraction permit can be extended to July 1, 2061. The Company also reported that it had finalized its contract with Metso for the build-out of Sangdong, for the long-lead-time equipment for the crushing circuit.

On February 3, 2021, the Company announced the expansion of its current Environmental, Social and Governance (ESG) program at the Sangdong Mine. At Sangdong, a third-party report will be concluded, analyzing the carbon footprint and how best to minimize that footprint. Given the energy from the grid supplied to the Sangdong project is 100% renewable, the Company has a unique opportunity to push towards carbon neutrality at our Korean site.

In April 2021, the Company completed the concrete batch plant at the Sangdong Mine. The plant will provide service to all underground mine development and to the surface construction. The renovation of the administration office in the town of Sangdong also was completed. Electing to renovate the old Sangdong post office instead of building a new construction on the mine site saved the Company over US$500,000 and complied better with its ESG program in having an actual presence in the town which allows more direct access to the Company for the local community. The site levelling, road and drainage diversion could be completed having all permits in place. Originally, the Company had intended to conduct the road and drainage diversion in April but, upon further cost analysis, it was established that by also including the site leveling, the Company would save a further US$300,000 by utilizing the same company to do all three items at the same time rather than incurring mobilization and demobilization costs twice.

On May 28, 2021, the Company conducted a ground-breaking ceremony at its Sangdong Mine site.

On October 27, 2021, the Company provided an update of its progress at the Sangdong site advising that renovations to the Guest House next to the main office were complete and that it has capacity for up to 24 visiting personnel from our Panasqueira and Los Santos mines. The report also advised that its Seoul office was its main administration and Government liaison center and is open and fully staffed.

On February 7, 2022, Almonty advised that it was in receipt of the completion of conditions precedent letter from KfW and that Almonty had satisfied all of the 110 conditions precedent.

The Company further advised that once the balance of the equity has been transferred to the loan account held in Korea by Almonty Korea Tungsten Corporation ("**AKTC**") and the payment of various financing fees is completed, which are customary to project finance lending, the bank can then move to issuing the drawdown letter and the first drawdown will commence.

On March 28, 2022, Almonty advised that it signed a MOU with Korean Mine Rehabilitation and Resource Corporation ("**KOMIR**") and Hannae For T, Ltd ("**Hannae**") to strengthen the South Korean domestic supply chain through the joint promotion of recycling of rare metals (such as Tungsten and Molybdenum) using scrap resources and tungsten concentrates to downstream to nano Tungsten Oxide and other essential products for Korean domestic consumption in the semiconductor and battery sectors.

KOMIR is the Korean Government Agency responsible for national resource security, including developing overseas mining and processing capacity to supply the Korean market. One of KOMIR's strategic objectives is to upgrade the country's access to critical minerals.

Hannae is one of the global leaders in rare metal recycling, who has developed proprietary technology to extract metals such as Tungsten, Vanadium, and Titanium from wasted SCR catalysts. The parties have agreed to jointly, in good faith, investigate and undertake a feasibility study on the 'public-private joint rare metal recycling project'.

The MOU will remain in effect for two years and can be extended by agreement between the 'parties' before the expiration**.** The agreement can be terminated by notifying the other party.

On March 30, 2022, Almonty announced that it was investigating the construction of a vertically integrated nano tungsten oxide downstream processing plant (the "**Sangdong Downstream Extension Project"**) to supply the South Korean battery anode manufacturing industry and the execution of a letter of intent ("**LOI"**) for the funding of the Sangdong Downstream Extension Project with KfW. Almonty also reported that KfW signed an LOI to provide a further US$50m of debt funding for the Sangdong Downstream Extension Project.

On May 11, 2022, Almonty reported that it executed a Conditions Precedent Letter with Plansee Holding AG ("**Plansee**") and Global Tungsten & Powders Corp. ("**GTP**") whereby both parties agreed that Almonty satisfied the conditions precedents required by Plansee/GTP to enable financial closing of the KfW Facility. The key terms of the Conditions Precedent Letter were:

&nbsp;&nbsp;&nbsp;&nbsp;1. Payment
 of obligations due to GTP of US$3.0 million which was paid in cash from the proceeds of a
 private placement that closed on May 11, 2022 (see "Developments During Fiscal Year
 Ended December 2022" below); and

&nbsp;&nbsp;&nbsp;&nbsp;2. Within
 120 calendar days of the financial closing of the project financing, Almonty remitting the
 outstanding balance owing of approximately US$1.8 million. In the event that the outstanding
 balance is not paid within 120 calendar days of the financial closing of the KfW Facility,
 Almonty will satisfy any remaining portion of such outstanding balance by issuing common
 shares in Almonty to Plansee/GTP, at a price per share equal to the closing market price
 of Almonty's common shares on the trading day prior to issuance, subject to any regulatory
 or stock exchange approvals.

On July 5, 2022, the Company announced that it has received from KfW the fully executed utilization request for the first drawdown of US$12,818,081 from the KfW Facility. The mortgage registration was commenced in South Korea to facilitate the first drawdown of funds to AKTC.

On July 18, 2022, the Company announced a maiden JORC 2012-compliant Inferred Mineral Resource Estimate ("**MRE"**) of 21.48Mt @ 0.26% MoS2 at the 0.19% MoS2 reporting cut-off for the Almonty Korea Moly Project ("**AKM Project"**), which is located on the existing Sangdong Mine.

The MRE was independently estimated by Adam Wheeler, an independent mining consultant, and was prepared according to the guidelines of the JORC Code dated 2012 and has also been prepared in accordance with the 2015 edition of the Australasian Code for Public Reporting of Technical Assessments and Valuations of Mineral Assets.

The resource estimate was based on a drillhole database stemming from underground drilling, and some surface drilling, completed prior to 1992 by the Korea Tungsten Mining Company Ltd.

("**KTMC"**), as well by Oriental Minerals OTL during 2006-2008. The KTMC drilling covers 14,300m over 27 holes.

Almonty notes that, based on a review of historical drilling, the molybdenum zone may continue to the northeast and northwest, where significant MoS2 was intersected in historical exploration drilling.

The molybdenum deposit of the AKM Project is located adjacent to the Sangdong Mine and appears to be hydrothermal and with two different mineralisation stages.

Further, it was noted that sections with zones of higher grade do occur, but insufficient drilling has been carried out to properly assess the grade distribution. The company will further assess both the full size and scale and higher-grade zones in future exploration work.

On July 28, 2022, the Company announced receipt of the first drawdown of US$12,818,081 on the KfW Facility.

On August 24, 2022, the Company advised that the second drawdown from the KfW Facility of US$4.1 million was received and that drawdowns are occurring in line with the project drawdown schedule.

On September 21, 2022, the Company announced an update in relation to the proposed nano tungsten oxide downstream processing plant. As announced on March 30, 2022, Almonty was investigating the construction of a vertically integrated nano tungsten oxide downstream processing plant to supply the South Korean battery anode and cathode manufacturing industry. As also announced, the funding for the Sangdong Downstream Extension Project is expected to be sourced from KfW, pursuant to the LOI for up to US$50 million of additional funding for this purpose. Almonty also advised that it is consulting with IAF Holding GmbH, a process engineering firm that specialises in the design and construction of specialist processing facilities, to design and construct the Sangdong Downstream Extension Project processing facility and it has been determined that the Sangdong Downstream Extension Project processing facility should be located at the Seok Moon Industrial Complex in South Korea. This site has been selected due to its excellent existing infrastructure, i.e. access to sufficient water, electricity, communications and gas as well as existing environmental permitting.

On November 15, 2022, the Company announced it completed its third scheduled drawdown of US$9.8 million of the KfW Facility. At such date, the drawdowns had been completed on schedule as per the project drawdown agreement.

On April 4, 2023 the Company announced that it has completed its fourth scheduled drawdown of the total US$75.1 million KfW IPEX-Bank, increasing the total amount drawdown to US$32.3 million.

On May 1, 2023, Almonty provided a construction and financing update in relation to its Sangdong Mine. As announced on April 3, 2023, Almonty advised that construction works continue to progress in accordance with its construction schedule and the total amount drawn under the KfW Facility at that time was US$32.3 million. Also, in April 2023, Almonty advised that engineering staff from the Sangdong Mine team and members of the EPC consortium made a field trip to Almonty's tungsten mines and processing plants in Portugal and Spain to better implement ideas and philosophy in the design and engineering of the main processing plant and pastefill plant at the Sangdong Mine. As national demand for the reinforcement and implementation of regulations and promotion of safety awareness has increased, the Company conducted HSE training and realigned the organization to focus on special safety personnel. This is aimed at exceeding national standards and enhancing the HSE standards at the mine and at the site of the Sangdong Mine. Almonty also advise that the installation of the new 4 MW power system, replacing the temporary 950kw system, for the mine infrastructure, was completed successfully in March 2023, without incident. The Korea Electrical Safety Corporation performed the pre-use inspection and issued the use certificate for the 4 MW power system. The power supply expansion is expected to provide stable power to the Sangdong Mine's surface and underground infrastructure, thereby improving work efficiency and production. Delivery of all long lead time equipment from Metso Outotec in Europe to South Korea was nearing completion. All engineering plans have been finalized, and surface scalping has begun for essential pre-work to prepare the site for civil construction.

On July 11, 2023, Almonty announced the collaboration between AKTC and Korea Telecom ("KT") which is introducing cutting-edge Mine Safety DX technology. Developed in partnership with KT, this innovative solution aims to enhance worker safety and promote efficient mining practices which is indicative of AKTC's strong commitment to ESG compliance. The communication infrastructure established by KT and AKTC at the Sangdong Mine is based on Long Term Evolution technology. This infrastructure offers superior coverage and simultaneous access, surpassing the capabilities of Wi-Fi and radios traditionally used in mine communication. By utilizing "leaky coaxial cables" and "mining designated line amplifiers," seamless communication is possible even in deep underground sections of the mine, ensuring communication and monitoring capabilities. In addition to improving safety standards, the Mine Safety DX technology also contributes to the efficient functioning of mining operations. By establishing a robust communication infrastructure, AKTC aims to enhance mining efficiency and productivity. The collaboration between AKTC and KT aligns with the South Korean Ministry of Trade, Industry and Energy's Comprehensive Mine Safety Plan and supports the government's goal of providing long-distance wide-area communication capabilities by 2027.

On July 31, 2023, the Company provided a construction and financing update in relation to its Sangdong Mine. Almonty received a further US$9.8 million in conjunction with the fifth drawdown on the US$75.1 million KfW IPEX-Bank ("KfW") loan facility related to the construction of the Sangdong Mine. The fifth drawdown brings the total drawn to US$40.2 million. Additionally, further equipment arrived in South Korea and at site at Sangdong including Protection screen and reclaim feeders shipments. Scalping works at the processing plant site are now complete and are currently in the verification stage.

On November 21, 2023, Almonty announced receipt of a fully executed Utilization Request for US$13.7 million in conjunction with the sixth drawdown on the US$75.1 million KfW IPEX-Bank ("KfW") loan facility related to the construction of the Company's Sangdong Mine in South Korea.

On July 11, 2024, Almonty announced that AKTC signed a memorandum of understanding with the Yeongwol County Office in South Korea to secure the location of the Sangdong Downstream Tungsten Oxide Plant. Yeongwol is located approximately 30 kms from the Sangdong Tungsten Mine and will be a hub for high-tech industries utilizing local mineral resources. Key terms of the MOU include that AKTC proposes to establish a factory of about 60,000 square meters within the Yeongwol County Opportunity Development Special Zone to produce refined and smelted tungsten, and tungsten alloys. Yeongwol County announced that it will provide full legal and institutional support to Almonty. During the process, AKTC proposes to invest approximately100 billion won (approximately US$72 million) in the construction of the downstream tungsten oxide plant, and an additional 40 billion won (approximately US$29 million) in processing plant facility upgrades required to increase tungsten concentrate production at the Sangdong Tungsten Mine. As a result, Yeongwol-gun will serve as an outpost for Korea's core industrial belt after facing a new era of regional economic development and job creation according to the mining and plant construction sectors.

On July 17, 2024, Almonty announced that it has received a fully executed Utilization Request for US$10.6 million in conjunction with the seventh and eighth drawdowns on the US$75.1 million KfW project loan facility related to the construction of the Company's Sangdong Tungsten Mine in South Korea.

On August 2, 2024, Almonty announced welcoming its first customer on the 1st of August, 2024 after a new refurbishment of the local gas station that has been acquired in May 2024.

On August 28, 2024, the Company announced that the U.S. government researchers recently visited Sangdong, the South Korean mine to assess progress towards boosting supply of a critical metal called tungsten from areas outside China

On September 6, 2024, the Company announced that, on September 2, 2024, renowned geologists from around the world visited the Company's <u>Sangdong Tungsten Mine</u> in Yeongwol, Gangwon Province, South Korea. These geologists are visiting South Korea to attend the <u>2024 International Geological Congress</u> ("IGC"), hosted by the International Union of Geological Sciences ("IUGS") in Busan, South Korea.

On September 11, 2024, Almonty announced the successful completion of its pilot plant trial production, which marks the final stage of flotation processing technology development ahead of processing plant equipment installation at the Company's Sangdong Mine in South Korea. In Portugal, the pilot plant mirrored most of the future industrial plant in Sangdong. The feed grade was around 0.45% WO₃, and the concentrates consistently exceeded 60% of contained WO₃, achieving recoveries around 82%.

In Sangdong, although equipment limitations and lower-grade ore (below the 0.15% WO₃ cutoff) presented challenges, a recovery of 86.3% was achieved thanks to an improved flotation process and optimized reagent adjustment. In particular, during the sulfide flotation stage, which removes impurities, the tungsten grade improved. This indicates that the concentration of sulfide impurities, which are typical contaminants in tungsten concentrate, can be reduced, ensuring the future stability of 60% to 65% WO₃ grades in concentrate production.

Based on these results, the Company and its equipment supplier Metso Outotec are now comfortable to sign off on the processing having met all the design performance parameters. Additionally, the tests at Sangdong Mine confirmed the potential to reduce reagent usage while maximizing efficiency.

On November 18, 2024, the Company announced the appointment of Mr. Fernando Vitorino as Chief Operating Officer (COO) of AKTC as well as the designation of the Yeongwol County as an opportunity development special zone to enhance Sangdong Mine expansion.

On November 21, 2024, Almonty announced a significant milestone in the development of its Sangdong tungsten mine and processing plant with the arrival and installation of cutting-edge grinding equipment from Metso Corporation. This development brings the Sangdong project one step closer to full operations, marking a pivotal moment in the effort to supply an enormous new source of tungsten from outside of China.

Also in November 2024, Almonty announced that the Company's Sangdong Mine has been recognized as a priority site to attract large-scale corporate investment.

On November 29, 2024, the Company announced that over 100 employees from Almonty Korea Tungsten Corporation (AKTC) and its partner companies – Dongbu Plant Co. Ltd. SMH, and ABR General Construction Co. Ltd. participated in a comprehensive health checkup held at AKTC's lobby and first-floor offices. The initiative provided mandatory health screenings and specialized examinations designed to meet the unique needs of employees in the mining and construction sectors. To ease the burden of traveling to urban hospitals, mobile medical units were deployed on-site, offering services including routine health checks, X-rays, blood tests, and electrocardiograms. Employees expressed high satisfaction with the convenience and accessibility of the setup. From a corporate standpoint, this health checkup demonstrates AKTC's commitment to complying with the Industrial Safety and Health Act, ensuring that employees in high-risk sectors receive the necessary health assessments for their roles. Beyond regulatory compliance, the program reflects AKTC's dedication to creating a healthy, supportive workplace that promotes employee well-being and operational sustainability

On December 16, 2024, the Company announced that Almonty Korea Tungsten Corp. (AKTC) CEO Lewis Black was honored with the Yeongwol County Governor's Award at the first-anniversary celebration and year-end event of the Yeongwol County Management Association (YWCMA), held at The Bliss Workation Center in Yeongwol. The award was received on behalf of the CEO by Chief Operating Officer Fernando Vitorino, according to AKTC.

On December 17, 2024, Almonty announced that women are now 20% of the workforce of Almonty Korea Tungsten Corp. (AKTC), a subsidiary of Almonty Industries, the largest tungsten mining company in the world outside of China. Female employment by AKTC is well above the World Bank estimate of 15 percent female employment in global mining industry.

**The Panasqueira Mine**

The Panasqueira Mine is an underground operation and has been in operation since 1896 and, apart from a brief period at the end of World War II, the mine has more or less been in continuous operation.

On January 6, 2016, Almonty acquired a 100% ownership interest in BVI from Sojitz Tungsten Resources, Inc. BVI, through its wholly-owned subsidiaries, is the 100% owner of the various rights and interests comprising the Panasqueira Mine. Almonty acquired 100% of the shares of BVI from Sojitz Tungsten Resources, Inc. for €1.00. In connection therewith, Almonty acquired and purchased

€12,260,000 in aggregate principal amount of debt owed by BTW, a wholly-owned subsidiary of BVI, to Sojitz Corporation of Japan in exchange for a cash payment of €1,000,000 on closing and a promissory note issued by Almonty in the principal amount of €500,000, bearing interest at 4% per annum, maturing December 29, 2017.

Almonty carried out an analysis of historical drilling and exploration data as part of its acquisition due diligence. This analysis was completed on November 15, 2015 and resulted in the Company filing a technical report on February 23, 2016, prepared pursuant to National Instrument 43-101 – *Standards of Disclosure for Mineral Projects* ("**NI 43-101**") entitled "Technical Report on the mineral reserves and resources of the Panasqueira Mine, Portugal" on SEDAR (the "**Panasqueira Technical Report**"). The Panasqueira Technical Report is available for review under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u> and is incorporated by reference herein.

Almonty continued its focus on cost reduction and all-in-production costs at Panasqueira continued to decrease. Mined grades continued to improve throughout Fiscal 2021 as expected under the revised mine plan implemented by Almonty since its acquisition in January 2016. Mined grades in Fiscal 2022, Fiscal 2023 and Fiscal 2024 also continued to show consistency in the content of by-product payable metals as well (copper and tin) which are improving the overall cash flow profile of the mining operation. Panasqueira is a poly metallic wolframite deposit as opposed to a skarn deposit scheelite mine like Los Santos. Tungsten recovery rates for wolframite deposits are typically higher than for scheelite deposits. The Panasqueira Mine has some of the highest tungsten recovery rates in the industry, consistently averaging 80%.

Since fiscal 2017, Almonty entered into several one-year fixed price off-take agreements with its existing customers in respect of production from the Panasqueria Mine. During fiscal 2020, Almonty entered into a series of revised fixed price contracts with this same customer group that were effective as of February 7, 2020 to December 31, 2020. The net price received under these contracts was US$276 per MTU of contained WO3, equating to an effective price of US$354 per MTU of APT (assuming an industry standard discount of 22% to the price of APT when pricing MTUs of WO3). These contracts were renewed for fiscal 2024 and 2025.

On September 4, 2019, the Company announced that the second tailings dam has been completed and is ready for operation. The completion of the second tailings dam (phase one) will enable Panasqueira to process and store tailings for another 6 years at the rate of 800,000 ton mining per annum. All the pumping and piping systems connecting the processing plant and the new tailings dam have been installed and have completed a trial operation.

Almonty is planning an extension of its mine, the L-4 Extension, with the potential to extend the life of the mine and increase production capacity. The L-4 project is focused on accessing deeper ore zones below the current mining levels, primarily starting from Level 3.

Key objectives of the L4 Extension include:

● **Increased Ore Throughput:** Plans to raise the processing capacity from 600,000 tons to 800,000 tons.

● **Improved Grade:** An anticipated increase in average head grade to 0.19%, enhancing overall economic output.

● **Exploration Synergies:** Advanced drilling campaigns will upgrade inferred resources, providing a clearer picture of the deposit's potential at depth.

Development of the L4 Extension began in early 2024, with initial works focused on accessing deeper ore zones through exploration galleries and new ramps.

The first pumping of tailings to the new tailings dam began during fiscal 2020 when the remaining capacity of the old tailings dam was fully consumed. The new tailings dam has been designed in compliance with the environmental and safety regulations of Portugal and the EU. In addition to the application of stringent safety standards in the engineering, the new tailings dam is designed for the second phase expansion for an additional 4 years by placing a surrounding 10-meter height retaining wall. A further phase three is now planned to increase capacity by a further 10 years. Thus, a total of 20 years additional capacity is anticipated after the completion of all three phases.

On February 24, 2024, Almonty announced that it had commenced development of Level 4 ("L4") at the Panasqueira Mine. The development of L4 represents a planned extension of existing underground operations and is expected to provide continued access to mineralized material and has the potential to enhance the contribution of the mine to the Company's operations with its potential and low-risk profile. A comprehensive scoping study has paved the way for this ambitious project, positioning it for advancement pending ore resources confirmation and financing completion. Scheduled to commence as early as Q1/2025, the groundwork for the L4 opening is a testament to Almonty Industries' commitment to operational efficiency and timely execution. By capitalizing on existing surface infrastructure and focusing on underground development, the L4 opening is poised to significantly enhance production capacity, projecting an increase on the annual output plus the extension of the life of the mine.

**The Los Santos Mine**

The Los Santos Mine commenced production in 2008 and produces tungsten concentrate products. The mine was opened in June 2008 and commissioned in July 2010 by its former owner.

An exploration campaign at the Los Santos Mine completed in June 2015 resulted in an updated technical report being completed as at October 31, 2015 prepared pursuant to NI 43-101 entitled "Technical Report on the Mineral Resources and Reserves of the Los Santos Mine Project, Spain" (the "**Los Santos Technical Report**"), which is available for review under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u> and is incorporated by reference herein.

Almonty continued its work with third party consultants in evaluating its tailings reprocessing methodology, running bulk samples through the existing plant as well as continued sampling through a testing circuit. The tailings recovery rate contained in the Los Santos Technical Report assumed no additional modifications will be carried out in the mill processing circuit and assumes a tungsten recovery rate of 46%. However, based on additional testing work carried out by Almonty, the Company decided in February 2020 to implement a planned closure of Daytal's operations by placing the Los Santos Mine into care and maintenance. The Company is planning to re-open operations in the near future once it has finalized plans to modify the plant's infrastructure, through an approximately €1,000,000 capital expenditure, which is expected to result in improved recovery rates from the future processing of its tailings inventory. Modifications to the processing plant to facilitate tailings reprocessing are expected to be implemented early 2026.

**The Valtreixal Project**

The Valtreixal Mine is a potential open pit operation and is located in the northwest part of the Zamora province, in the Castilla de Leon region of Spain. The principal potential products are tungsten and tin.

On March 21, 2013, the Company announced that it had entered into an option agreement to acquire a 51% interest in, and be the project operator of, the Valtreixal Mine in Northwestern Spain (approximately 250km from the Los Santos Mine) for total consideration of €1,400,000. Almonty made the first installment payment of €100,000 in June 2013. The second installment of €300,000 was originally due in June 2014 but was rescheduled to December 2014 so that Almonty could finish its current evaluation of the project during the fourth quarter of fiscal 2014. The balance of funds originally due in June 2015, were also rescheduled to December 2015. Almonty has begun its evaluation of the historical data and has carried out exploration drilling on the site.

On January 5, 2015, Almonty announced that it made the third installment payment of €300,000 on the Valtreixal Mine (bringing instalment payments to date to €700,000), which resulted in Almonty owning a 25% interest in the Valtreixal Mine and having an option to acquire the remaining 75% ownership interest for €1,700,000 in additional installment payments over the subsequent 18 months.

During the fourth quarter of fiscal 2015, Almonty finalized its negotiations with Sociedad de Invencion y Exploracion Minera de Castilla y leon, S.A. ("**SIEMCALSA**") for payment of €700,000 that would take the Company's ownership in the Valtreixal Mine to 51%, pursuant to which Almonty and SIEMCALSA agreed to a €100,000 payment on December 19, 2015 (which was paid on that date), a further €50,000 per month starting January 2016 and ending in May 2016 followed by a final payment of €350,000 in June 2016. These payments were made as scheduled and Almonty owned a 51% interest in the Valtreixal Mine as of June 30, 2016.

On December 21, 2016 Almonty exercised its option to acquire the remaining 49% interest in the project for a payment of €1.5 million, a reduction of €750,000 from the previously agreed installment payment plan resulting in a much-needed savings of capital on the acquisition of the remaining 49% interest in the project. The Company is continuing to carry out work on the project and is working towards a final decision on proceeding with the development of the project. The Company intends to decide on filing for the necessary permits and is fine tuning its planning and budgeting for the potential build-out and commissioning of the Valtreixal Mine.

On June 11, 2020, Almonty announced that it has received, from the Municipality of Pedralba de la Paraderia in Spain, a new land classification for its Valtreixal Property whereby the property is now deemed to be suitable for extraction activity. The Company's Valtreixal Property is located approximately 250 km from the Company's wholly-owned Los Santos Mine in Spain and 185 km from Salamanca. This new land classification will now allow the Company to complete the mining permitting process and to move forward with the completion of an open-pit mine plan for the property. It is expected this permitting process to be finished late2025.

Almonty also completed its analysis of the exploration campaign of the Valtreixal Mine that was completed in Q3 2015. This led to Almonty filing an updated technical report on the Valtreixal Mine as at October 31, 2015 prepared pursuant to NI 43-101 entitled "Technical Report on the Mineral Resources and Reserves of the Valtreixal Project, Spain" (the "**Valtreixal Technical Report**").

The Valtreixal Technical Report is available for review under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u> and is incorporated by reference herein.

The Company is continuing to evaluate the Valtreixal Mine with a view to making a decision on filing for the necessary permits and is fine tuning its planning and budgeting for the potential build-out and commissioning of the Valtreixal Mine.

**Other Developments**

<u>Developments During Fiscal Year Ended December 31, 2022</u>

On May 11, 2022, Almonty announced the closing of a private placement to the directors of Almonty, existing shareholders and other insiders of 2,852,251 common shares at CDN$0.94 per share and 1,428,571 Units at US$0.70 per Unit to raise gross proceeds of approximately US$3.3 million. Each Unit of the 1,428,571 units was comprised of one common share and one-half share purchase warrant with each whole warrant being exercisable at a price of US$0.84 for 24 months from closing. The proceeds of this placement were used to pay fees due to Plansee/GTP.

On June 7, 2022, Amonty announced the closing of a private placement of 2,494,118 Chess Depository Interests ("**CDIs**") at A$0.85 per CDI to raise gross proceeds of A$2.12 million with the Company's third largest shareholder Deutsche Rohstoff. The use of proceeds of this placement were for general working capital and to accelerate ongoing growth strategies being pursued. Lazarus acted as Lead Manager to the placement and was paid a total fee of 6% of the gross proceeds raised in the Placement. Current Almonty Director Mr. Andrew Frazer was at such time also the managing director of Lazarus, the Lead Manager for the Placement.

On June 30, 2022, the Company held its annual general meeting at which meeting, it re-elected Lewis Black, Daniel D'Amato, Thomas Gutschlag, Michael Costa, Mark Trachuk and Andrew Frazer as directors of the Company, Zeifmans LLP were appointed auditor of the Company, amendments to the Company's by-laws were approved and the reservation of unallocated options under the Company's stock option plan was also approved.

<u>Developments During Fiscal Year Ended December 31, 2023</u>

On January 31, 2023, Almonty completed a non-brokered private placement of 2,500,000 CDIs at a price of A$0.80 per CDI pursuant to which 2,500,000 CDIs were issued. Each placee received one (1) unlisted option for every one (1) CDI issued, which option is exercisable at a price of A$1.25 with an expiry date of December 31, 2024. Pursuant to a Mandate Letter dated July 22, 2021, between the Company and Lazarus, the Company engaged Lazarus as Lead Manager in connection with the Offer at the rate of 6% of the funds raised.

In February 2023, Almonty sought approval to the extension of 700,000 share purchase warrants held by insiders of the Company. In May 2023, the TSX provided conditional approval to the extension, subject to shareholder approval. In June 2023, Almonty received shareholder approval to the extension of the warrants and as a result, the expiration date of the warrants was extended from February 19, 2023, to February 19, 2024.

On March 28, 2023, Almonty completed a non-brokered private placement of 4,861,111 CDIs at a price of A$0.72 per CDI. Each placement participant received one (1) unlisted option for every one (1) CDI issued, which option is exercisable at a price of A$1.25 with an expiry date of December 31, 2024. Pursuant to a Mandate Letter dated July 22, 2021, between the Company and Lazarus, the Company engaged Lazarus as Lead Manager in connection with the placement at the rate of 6% of the funds raised.

On April 3, 2023, Almonty announced that it completed its fourth scheduled drawdown of the KfW Facility for its Sangdong Mine.

On June 26, 2023, the Company held its annual general meeting at which meeting, it elected Lewis Black, Daniel D'Amato, Thomas Gutschlag, Mark Trachuk, Andrew Frazer and David Hanick as directors of the Company; Zeifmans LLP were appointed auditor of the Company; and approval to an extension of certain warrants were approved at the meeting.

During October and November, 2023, Almonty raised gross proceeds of C$950,000, US$733,333 and A$550,000 via the issuance of 4,333,333 units comprising common shares and warrants ("**Placement Units**") and 1,078,433 units comprising CDIs and options ("**CDI Units**") at C$0.45 per Placement Unit, US$0.33 per Placement Unit and A0.51 per CDI Unit. Each participant was issued one Common Shares and one warrant for every Placement Unit issued and one CDI and one free unlisted option for every CDI Unit issued, exercisable at C$0.60, US$0.45 and A$0.69, respectively, with an expiry date of 36 months from the date of closing. RM Corporate Finance Pty Ltd acted as lead manager to the issuance of the CDI Units and was paid a total fee of 6% of the gross proceeds raised from the CDI Units.

During November 2023, Almonty entered into an agreement with one of its creditors to restructure its outstanding debt instruments by consolidating four such debt instruments into one debt instrument. As a result, Almonty issued a new convertible bond in the principal amount of €7,900,000, which amount represented the previous outstanding principal together with accrued and unpaid interest and a restructuring fee. The maturity date for the new bond is September 15, 2025 and shall accrue interest on the principal outstanding from time to time at the rate of 9.0% per annum, payable quarterly in arears on December 15, March 15, June 15 and September 15 of each year until the maturity date. The Lender may elect to convert the principal amount of the new bond into Common Shares, subject to certain limitations, at a price of €0.35 per Common Share and any accrued and unpaid interest on the new bond on the date of conversion will be convertible into Shares at a price being the greater of (a) €0.35 per Common Share and (b) the volume weighted average price of the Common Shares on the TSX, or such other stock exchange where the majority of the trading volume and value of the Common Shares occurs, for the five trading days immediately preceding the date of conversion, converted into Euros at the noon rate published by the Bank of Canada on the date of conversion.

Also during November 2023, Almonty granted in the aggregate 2,600,000 stock options to certain directors, officers, employees and/or consultants, which options are exercisable until November 16, 2028, at a price of $0.52 per Common Share. Almonty also issued in the aggregate 450,000 Restricted Share Units to certain directors and/or officers.

During December 2023, Almonty amended certain outstanding convertible debentures by extending the maturity date from October 31, 2024, to October 31, 2025. In consideration of the extension of the maturity date, the conversion price on one of the debentures was reduced.

Also during December 2023, Almonty entered into a Debt Settlement Agreement with Plansee Holding AG whereby US$1,042,750 of debt was extinguished through the issuance of 2,583,316 Common Shares.

<u>Developments During Fiscal Year Ended December 31, 2024</u>

In January 2024, 10,249,605 Common Shares were issued in connection with the conversion of an outstanding convertible debenture plus related accrued interest in the aggregate amount of $9,265,000.

On January 9, 2024, Almonty granted 1,000,000 stock options to a director of the Company, which options are exercisable until January 9, 2029, at a price of $0.56 per Common Share.

In February 2024, Almonty settled an outstanding debt in the amount of US$1,042,750 with Plansee through the issuance of 2,583,316 shares at a deemed price of $0.54 per share.

In March 2024, Almonty completed a non-brokered private placement through the sale of 4,035,863 units at a price of $0.55 per unit raising gross proceeds of $2,219,725. Each such unit is comprised of one common share and one share purchase warrant with each share purchase warrant being exercisable into one additional common share at a price of $0.74 per share for a period of 24 months from closing.

Also in March 2024, Almonty completed a private placement raising gross proceeds of A$945,500 through the issuance of 1,525,000 Placement Chess Depository Interests Units at a price of A$0.62 per unit. Each such unit will be comprised of one CDI, with an underlying common share, and one unlisted option exercisable at A$0.84, for a period of 24 months from the date of closing. RM Corporate Finance Pty Ltd acted as lead manager to the issuance of the CDI units and was paid a total fee of 6% of the gross proceeds raised from the CDI units. Current Almonty Director, Mr. Andrew Frazer, is also the managing director of RM Corporate Finance Pty Ltd, the Lead Manager for the Placement.

In March 2024, Almonty negotiated the refinancing of the Unicredit Bank US$15,650,000 term loan with the KfW IPEX-Bank ("KfW"), thus extending the maturity date of this loan from March 31, 2024 to March 31, 2027.

On April 30, 2024, Almonty granted 1,000,000 stock options to an officer of the Company, which options are exercisable until April 30, 2029, at a price of $0.63 per Common Share.

In May 2024, Almonty announced that it planned to extend, in the aggregate, the term of 700,000 outstanding share purchase warrants (the "**Insider Warrants**") that were due to expire on February 19, 2024, by one year. On February 13, 2024, the Board of Directors of the Company approved to extend the Insider Warrants held by Lewis Black and Dr. Thomas Gutschlag to February 19, 2025, subject to TSX and shareholder approval. Lewis Black and Dr. Thomas Gutschlag are insiders of the Company. The extension of such warrants was approved by Shareholders at Almonty's annual general and special meeting of shareholders held on June 28, 2024.

Additionally, the Company extended the term of 714,285 outstanding share purchase warrants held by one individual due to expire on May 11, 2024, to May 12, 2025. The extension of such warrants was subject to TSX approval, the approval of the Australian Securities Exchange and shareholder approval. Such shareholder approval was obtained at Almonty's annual general and special meeting of Shareholders held on June 28, 2024.

On May 10, 2024, Almonty announced that it had received firm commitments to raise further gross proceeds of A$1,860,000 via the issuance of 3,000,000 Placement CDI units at A$0.62 per CDI unit. Each participant was to be issued one free unlisted option for every one CDI issued, exercisable at A$0.84 with an expiry date of 24 months from the date of closing. RM Corporate Finance Pty Ltd acted as Lead Manager to the placement and was paid a total fee of 6% of the gross proceeds. This tranche of private placement closed on May 21, 2024

On May 17, 2024, Almonty granted 275,000 stock options to consultants of the Company, which options are exercisable until May 14, 2029, with various exercise prices between $0.63 to $0.72 per Common Share.

On May 21, 2024, Almonty announced the closing of the aforementioned tranche of placement and a further scheduled closing of on an additional 1,090,909 units at Cdn$0.55 per unit on May 23, 2024 with each such unit comprising one common share and one share purchase warrant with each share purchase warrant exercisable into one additional common share at a price of $0.74 per share for a period of 24 months from closing..

In addition, Almonty announced firm commitments to raise further gross proceeds of A$1,194,500.06 pursuant to the issuance of 1,926,613 CDI units at A$0.62 per CDI unit, forming the final tranche of the placement initiated in March 2024. Each such placement participant was issued one free unlisted option for every one CDI issued, exercisable at A$0.84 with an expiry date of 24 months from the date of closing. RM Corporate Finance Pty Ltd acted as Lead Manager to the placement and was paid a total fee of 6% of the gross proceeds from the sale of CDI units.

On July 5, 2024, Almonty granted 3,030,000 stock options to various officers, directors, employees and consultants, which are exercisable until July 4, 2029, at a price of $0.66 per Common Share. Almonty also issued in the aggregate 2,100,000 Restricted Share Units to certain officers and/or directors.

On August 16, 2024, Almonty granted 200,000 stock options to an employee of the Company, which options are exercisable until August 15, 2029, at a price of $0.685 per Common Share.

On November 18, 2024, Almonty granted 200,000 stock options to an employee or consultant of the Company, which options are exercisable until November 17, 2029, at a price of $0.81 per Common Share.

On December 23, 2024, the Company issued 230,469 shares at a deemed price of $0.7683 to settle its remaining debt obligation to one of its creditors.

In December 2024, Almonty completed a private placement raising gross proceeds of the equivalent of A$5.95 million via the issuance of 2.0 million Canadian units and 4.56 million Placement CDI units at C$0.82 per Canadian unit and A$0.90 per CDI unit, respectively. Each Canadian unit and CDI unit participant will be issued with one warrant for every common share issued and one free unlisted option for every one CDI issued, exercisable at C$1.14 and A$1.25, respectively, with an expiry date of three years from the date of closing. RM Corporate Finance Pty Ltd acted as Lead Manager to the placement and was paid a 6% fee on a portion of the Placement..

<u>Developments Subsequent to Fiscal Year Ended December 31, 2024</u>

On January 9, 2025, Almonty announced that it received its final drawdown of US$906,000 of the US$75.1 million KfW IPEX-Bank ("KfW") project loan facility related to the construction of the Company's Sangdong Tungsten Mine in South Korea. This milestone marks the culmination of a strong and collaborative partnership with KfW, which has consistently demonstrated unwavering support for Almonty since the financing was granted.

On January 20, 2025, Almonty announced its plans to change its jurisdiction of incorporation from Canada to the State of Delaware while maintaining its listings for now on the Toronto Stock Exchange and the Australian Securities Exchange. The redomiciling reflects the growing importance of the United States in Almonty's strategic positioning. With its robust regulatory framework for critical materials like tungsten and molybdenum and the evolving global economic landscape, the United States presents a compelling jurisdiction for Almonty. The State of Delaware, in particular, was chosen as Almonty's new domicile because the Delaware General Corporation Law expressly accommodates continuances under Section 192 of the *Canada Business Corporations Act* and is recognized for its extensive body of corporate law. Supported by decades of case law in Delaware courts, Delaware corporate law provides well-defined guidance on the duties and obligations of directors and officers, offering legal clarity that is expected to benefit both the Company and its shareholders. The US domestication was approved by shareholders at a special meeting held on February 27, 2025 and remains pending as of the date of this AIF.

On January 29, 2025 Almonty announced that it entered into an exclusive offtake agreement with SeAH <u>M&S</u> ("SeAH"), the largest processor of molybdenum products in South Korea and the second largest Molybdenum oxide smelter in the world, pursuant to which SeAH has agreed to purchase 100% of the material produced from the Sangdong Molybdenum Project (the "Sangdong Molybdenum Project") for life of mine. The Sangdong Molybdenum Project, which is being developed by Almonty's wholly owned subsidiary, Almonty Korea Moly Corp., is already fully permitted (Mining and Environmental) and is expected to begin producing by the end of 2026 with an anticipated life of mine of 60 years based on historical Korean Government data. When operating at full capacity, the mine will produce approximately 5,600 tons of molybdenum annually. SeAH is building a US$110 million metals and fabrication facility in Temple, Texas, that is slated to provide fabricated metal products to Space Exploration Technologies Corp. and to the U.S. defense and civilian aerospace sectors.

During the months of January and February 2025, Almonty completed a private placement raising gross proceeds of the equivalent of CAD$10.847 million via the issuance of 2.527 million Canadian units and 10.833 million CDI units at C$0.82 per Canadian unit and A$0.90 per CDI Unit, respectively. Each Canadian unit and CDI unit participant will be issued with one warrant for every common share issued and one free unlisted option for every one CDI issued, exercisable at C$1.14 and A$1.25, respectively, with an expiry date of three years from the date of closing. RM Corporate Finance Pty Ltd acted as Lead Manager to the placement and was paid a 6% fee on the CDI portion of the placement.

On February 14, 2025, Almonty announced that, subject to shareholder and TSX approval, it plans to extend, in the aggregate, the term of 700,000 outstanding share purchase warrants (the "Insider Warrants") that were due to expire on February 19, 2025, by one year.

On March 20, 2025, General Gustave F. Perna was appointed to the Board of Directors.

**DESCRIPTION OF BUSINESS**

**GENERAL**

The Company is a natural resource company engaged in the acquisition, exploration, development, mining, and milling of tungsten ores and related minerals. The Company's business is presently focused in the Iberian Peninsula and South Korea.

The principal business of Almonty is the mining, processing and shipping of tungsten concentrate from the Los Santos tungsten mine located near Salamanca, Spain, the Panasqueira tin and tungsten mine in Covilha, Castelo Branco, Portugal, as well as the development of the Sangdong Mine located in Gangwon Province, Republic of Korea and the Valtreixal tin and tungsten project located in Western Spain in the province of Zamora.

**Production, Principal Markets and Distribution Methods**

Almonty refines tungsten ore in its milling circuits using a combination of gravity separation (spiral banks, shaking tables etc.) after the ore is crushed in a primary crusher. The milling circuit refines the tungsten ore into a primary grade product of 65% or greater WO3 concentrate or higher and also a secondary product with a grade of WO3 concentrate between 45% and 65%.

The principal markets for the Company's tungsten concentrates are the United States of America, Western Europe and Japan. Currently, most of the revenue earned by the Company's operations is sold to the Customer in accordance with the Supply Agreements (as defined below). The Customer is located in the United States of America. Contract terms for Almonty's sale of WO3 in concentrate (WO3 concentrate) allow for a price adjustment based on final assay results of the WO3 concentrate by the Customer to determine the final content. Recognition of sales revenue for WO3 concentrate is based on the most recently determined estimate of WO3 concentrate (based on initial assay results carried out by Almonty) and the contract price at the date of shipment, with a subsequent adjustment made upon final determination between Almonty and the Customer after receipt of the WO3 concentrate. If the Customer disputes the invoiced amount based on a difference of assayed values of WO3 concentrate, then the dispute is settled by an independent third-party assaying service whose findings are binding on both parties.

The terms of WO3 concentrate sales contracts with third parties contain provisional pricing arrangements for all material not subject to a fixed price contract, whereby the selling price for WO3 concentrate is calculated based on the adjusted prevailing monthly average price per MTU of APT as published by London Metal Bulletin on the date of shipment to the Customer.

All WO3 concentrate produced by the Panasqueira Mine is loaded into one-tonne bags and stored on site until a minimum of 20 bags has been accumulated. Once 20 bags have accumulated on site, Almonty then arranges for an independent logistics company to procure a 20 tonne shipping container to site where 20 one-tonne bags are then immediately loaded into the container and the container is sealed by logistics company personnel and transported by truck to the nearest port. The container is held in a bonded location in the port while awaiting shipping via ocean freighter to the destination port of the Customer. Almonty has a distribution agreement in place with certain customers in Japan, whereby Almonty ships material to customers in Japan and is paid within 5 days of shipping.

**Revenues**

Gross revenue for the year ended December 31, 2024 totalled $28,836,000 ($22,510,000 for the year ended December 31, 2023).

BTW is party to a Supply Agreement with a Customer who participates in the global tungsten business. Currently the majority of the revenue earned by the Company's operations is sold to this Customer. Almonty is economically dependent on the revenue received from the Customer in order to be able to meet its current obligations and is subject to the pricing terms set out in the Supply Agreements. See *Description of the Business - General – Contracts* below.

**Competitive Conditions**

The Company sells tungsten concentrates and upgraded tungsten products at prices determined by world markets over which the Company has no influence or control. These markets are cyclical. The Company's competitive position is determined by its costs compared to those of other producers throughout the world and by the Company's ability to maintain financial strength through the tungsten concentrate price cycle despite currency fluctuations. Costs are governed principally by the location, grade and nature of the ore bodies and mineral deposits, and the Company's cost of labour, power and supplies, and, as well, by operating and management skill. Over the long term, the Company's competitive position is determined by its ability to develop economic ore bodies and replace current production. In this regard, the Company also competes with other mining companies for mineral properties.

At present, there are a limited number of competitors producing tungsten concentrates in the Western world. The world's largest producer of tungsten concentrates is China, which is now an importer of tungsten concentrates. The Company competes specifically with other mining and industrial operations located in the Iberian Peninsula, and the European Union in general, in obtaining skilled labour and mining supplies.

Market demand for tungsten concentrate continued to be stable during the fourth quarter of fiscal 2023 and throughout fiscal 2024. Furthermore, APT pricing commenced a significant increase near the end of fiscal 2022 and into the first quarter of fiscal 2025 with prices at US$350/MTU of APT.

The average market price was US$324/MTU of APT for the year ended December 31, 2023 and US$329/MTU of APT for the year ended December 31, 2024, increasing to US$350/MTU of APT during Q1-2025. Management expects that the limited quantities of "spot" concentrate available in the market will help with expected price improvement in the near to mid-term (between now and the end of calendar 2024) with several forecasting services projecting prices to exceed US$310 per MTU of APT by December 31, 2024. This expected improving pricing environment is evidenced by the renewed fixed price contracts signed at the Company's Panasqueira mine.

The average of the high and low weekly quoted price for European APT according to the Metal Bulletin ("**MB**") European weekly quotation for APT (from which Almonty's concentrate prices are derived by varying formulae under its Supply Agreements) averaged the following:

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| | | | |
|:---|:---|:---|:---|
| **Three Months ended** | **Tungsten APT European Average High-Low <br>US$/MTU** | **Year ended** | **Tungsten APT European Average High - Low <br>US$/MTU** |
| 31-Dec-19 | $242 | 31-Dec-19 | $253 |
| 31-Mar-20 | $236 |  |  |
| 30-Jun-20 | $224 |  |  |
| 30-Sep-20 | $213 |  |  |
| 31-Dec-20 | $228 | 31-Dec-20 | 225 |
| 31-Mar-21 | $274 |  |  |
| 30-Jun-21 | $275 |  |  |
| 30-Sep-21 | $306 |  |  |
| 31-Dec-21 | $322 | 31-Dec-21 | 294 |
| 31-Mar-22 | $340 |  |  |
| 30-Jun-22 | $349 |  |  |
| 30-Sep-22 | $340 |  |  |
| 31-Dec-22 | $323 | 31-Dec-22 | 338 |
| 31-Mar-23 | $335 |  |  |
| 30-Jun-23 | $328 |  |  |
| 30-Sep-23 | $315 |  |  |
| 31-Dec-23 | $314 |  | $323 |
| 31-Mar-24 | $316 |  |  |
| 30-Jun-24 | $348 |  |  |
| 30-Sep-24 | $335 |  |  |
| 31-Dec-24 | $333 | 31-Dec-22 | $333 |
| 18-Mar-25 | $350 |  |  |

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Source: Metal Bulletin, ammonium para tungstate (APT), European (US$/MTU).

Almonty prices its tungsten concentrate product (on volumes of material that are not subject to a fixed price contract) in relation to the prior month's average weekly quoted price for APT on the MB European quotation service and the Metal Pages pricing service.

Almonty prices all of the tungsten concentrate that it produces that is not subject to fixed price contracts in relation to the prior month's average quoted weekly average of the High-Low price quotation for an MTU of APT on the MB European quotation service.

In the short-term, the Company anticipates that prices will continue to remain at current levels, with limited downside to the current price.

**Growth Strategy**

Almonty implemented a planned closure of Daytal's operations by placing it into care and maintenance in February 2020. The Company is planning to re-open operations in early 2026 once it has finalized plans to modify the plant's infrastructure and finalize any adjustments to the milling circuit that will be necessary once the Company begins to process its stockpile of long-term tailings inventory.

**Seasonality**

There is no seasonality to the Company's mining operations. The Company sells tungsten concentrates and upgraded tungsten products at prices determined by world markets over which the Company has no influence or control. These markets are cyclical. See *Competitive Conditions* for additional information on the cyclicality of the APT commodity price.

**Contracts**

Almonty, along with Daytal and Beralt, are parties to long term supply agreements dated September 23, 2011 and September 22, 2014 (each as subsequently amended), respectively, with the Customer (together, the "**Supply Agreements**"). The Supply Agreements provide for the supply of a minimum amount of tungsten concentrate to the Customer in accordance with certain specifications of the Customer. Pricing is based on a formula derived from the prior month's average of the high and low price for European APT per MTU as quoted on the MB. The Supply Agreements run for a term of five years with an automatic renewal for an additional two years (unless either party provides at least three months' notice of its intention not to renew). Almonty implemented a planned closure of Daytal's operations by placing it into care and maintenance in February 2020, therefore, Almonty is not supplying material to the supply partners.

Almonty, along with its wholly-owned indirect subsidiary, BTW, is party to a distribution agreement (the "**Distribution Agreement**") for a portion of the tungsten concentrate produced at the Panasqueira Mine. This agreement covers sales to Japanese-based customers. Almonty negotiated a new long-term supply agreement, commencing January 1, 2019, for a certain amount of tungsten concentrate produced at the Panasqueira Mine (amended and extended effective February 7, 2020). Meanwhile, all production not sold under the Distribution Agreement is sold to customers in Europe and North America.

Almonty also is a party to the Amended Off-Take Agreement with the Customer for the tungsten concentrate to be mined and processed at the Company's wholly-owned Sangdong Mine in South Korea as described above under "*General Development of the Business – Three Year History – The Sangdong Mine*".

Redacted copies of the Supply Agreements, the Distribution Agreement and the Amended Off-Take Agreement are filed under Almonty's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**Employees**

As at December 31, 2024, the Company had 10 non-unionized full-time employees at the Los Santos Mine; 138 unionized full-time employees and 109 full time employees at the Panasqueira Mine; 1 full- time, non-unionized employee and 8 full-time consultants and 1 part-time consultant working at the corporate office (1 consultant in Canada, 1 consultant in France, 2 consultants in Portugal, 1 consultant in the United States of America, 3 consultants in Spain and 1 consultant in Korea); 48 full-time employees at the Sangdong Mine in Korea; and 1 part-time consultant at the Valtreixal Mine in Spain.

**Foreign Operations**

Almonty's wholly-owned subsidiaries, Daytal and Beralt, operate in Spain and Portugal, respectively, both of which use Euros(€) as their functional currency. Their output is a commodity that is primarily priced in United States dollars (US$) which is different than the functional currency of the Company and its subsidiaries and the Company and its subsidiaries may also incur costs or obtain indebtedness in a currency that is different from their functional currency. Almonty's functional currency is the Canadian dollar (CAD$) but it advances funds to subsidiaries in the functional currency of the subsidiary to which funds are advanced. As such, Almonty's consolidated balance sheet and profit or loss can be significantly affected by movements in various currencies (CAD$, US$, KRW and €).

As at December 31, 2024 the Company had the following financial instruments denominated in foreign currencies, in 000's:

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| | | |
|:---|:---|:---|
|  | **Currency**<br>**  | **Carrying**<br> **Value ($)** |
| Cash and cash equivalents | US$ | 48 |
| Accounts payable and accrued liabilities | US$ | 8149 |
| Accounts payable and accrued liabilities | AUS$ | 378 |
| Accounts payable and accrued liabilities | KRW | 7770 |
| Long-term debt | US$ | 123637 |
| Long-term debt | EURO € | 33898 |

---

A 5% change in the value of the CAD$ relative to the above currencies would have an impact on net loss for the year ended December 31, 2024 of approximately $8,674.

The Company's Euro functional currency businesses have the following financial instruments denominated in foreign currencies, in 000's:

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| | | |
|:---|:---|:---|
|  | **Currency** | **Carrying**<br> **Value ($)** |
| Cash and cash equivalents | US$ | 330 |
| Trade receivables | US$ | 522 |

---

A 5% change in the value of the Euro relative to the above currencies would have an impact on net loss for the year ended December 31, 2024 of approximately $43.

The Company's Korean Won functional currency businesses have the following financial instruments denominated in foreign currencies, in 000s:

---

| | | |
|:---|:---|:---|
|  | **Currency** | **Carrying**<br> **Value ($)** |
| Accounts payable and accrued liabilities | US$ | 1849 |
| Long-term debt | US$ | 106876 |

---

A 5% change in the value of the Korean Won relative to the above currencies would change net income for the year ended December 31, 2024 by approximately $5,436.

**Social or Environmental Policies**

The Company is committed to maintaining high standards of environmental protection and care in the conduct of all aspects of its business. The Company's mining, exploration and development activities are subject to various levels of Spanish, Portugal and South Korean federal, provincial and territorial laws and regulations relating to the protection of the environment, including requirements for closure and reclamation of mining properties

The Company's approach to environmental management includes maintaining compliance with all applicable legislation, regulations and authorizations, implementing proactive strategies for environmental protection, achieving continuous improvement in performance and encouraging open communications with governments, the general public and stakeholders. See disclosure regarding environmental matters under the respective descriptions of the Company's mineral projects herein for further details.

Almonty is committed to the promotion of environmental awareness and stewardship amongst employees and contractors at its mining and exploration sites by providing accurate information and responsible environmental management that ensures safety, due diligence and compliance.

Responsible environmental management is key to Almonty's success. The Company ensures that cost- effective, best management practices are utilized in assessing, planning, constructing and operating its facilities in compliance with all applicable legislation and regulations. The Company works together with various government agencies and the public to enhance communications and understanding of Almonty's operations and its environmental stewardship.

Almonty's guiding environmental principles are built into the management of its daily activities and its philosophy is included in all work procedures and protocols. These principles are being put into practise as Almonty develops the Sangdong Mine as discussed under "General Development of the Business".

Every employee is committed to, and responsible for, the integrity of Almonty's environmental management.

**RISK FACTORS**

*The Company operates in the mining industry, which is subject to numerous significant risks that can influence profitability. In addition to all of the other information set out in this AIF, potential investors and readers should carefully consider the risk factors set out below which the Company believes to be the most significant and that could have a material impact on its current and future operations. Other risks may exist that are not indicated below and which may currently exist or arise at a future date regarding the Company and its operations.*

 

*The risks and uncertainties set out below or elsewhere in this AIF are not the only ones facing the Company. Additional risks and uncertainties not presently known to the Company or that the Company currently considers immaterial may also impair its business operations and cause the price of the Common Shares to decline. If any of the following risks actually occur, the Company's business may be harmed and its financial condition and results of operations may suffer significantly. In that event, the trading price of its Common Shares could decline, and an investor may lose all or part of his, her or its investment.*

 

 

**Financial Risks**

**Price of Metals and Foreign Exchange Rates**

The Company's profitability is exposed to commercial risks, notably those linked to the price of tungsten and foreign exchange rates.

Almonty's policy is to maintain exposure to commodity price movements at its mining operations. The Company sells WO3 concentrate that is denominated in US$ per MTU. Every +/- US$10.00 movement in the average price of one (1) MTU of European APT as quoted on the MB exchange impacts the Company's revenue by +/- US$9.00 per MTU of WO3. The price of tungsten varies considerably and is based on factors outside the control of the Company. Should the market price of tungsten concentrate fall below the Company's cash operating costs, Almonty would cease to generate positive cash flow from operations. From time to time, the Company enters into contracts to fix the price of the product its sells for periods of time it deems appropriate.

**Fluctuation in Interest Rates**

Almonty's exposure to the risk of changes in market interest rates relates to cash at banks, bank indebtedness and long-term debt with floating 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 the long-term debt, $130,986 is subject to floating interest rates and $37,608 is subject to fixed interest rates. A portion of the floating rate debt totaling $24,110 is subject to a fixed spread over the 6- and 12-month Euro Interbank Offered Rate ("Euribor") rates. A change of 100 basis points (1%) in the rates would result in a $241 change in annual interest costs. The remaining floating rate debt of $106,876 is based on a fixed spread over the 3-month SOFR rate. A change of 100 basis point (1.0%) in the 3-month SOFR rate would result in a $1,069 change in annual interest costs.

The Company may in the future become a borrower of an additional material amount of funds or repay its existing outstanding long-term debt at any time without penalty. The Company's primary operations are located in Spain, Korea and Portugal. The ongoing uncertainty in the financial markets may have a negative impact on both the Company's future borrowing costs and its ability to obtain debt financing.

**Tax-Related Risks**

The Company operates in multiple jurisdictions with varying tax regimes, and its global operations may expose it to changes in tax laws and interpretations that could adversely affect profitability. Changes to international, regional, or local tax regulations, including transfer pricing, withholding taxes, and corporate tax rates, may result in higher effective tax rates or unexpected tax liabilities. Furthermore, the classification of income from foreign jurisdictions, such as South Korea, Spain, and Portugal, could impact the Company's cash flow and financial reporting.

**Pledge of Assets as Security**

As of the date of this AIF, the Company has pledged certain of its assets as security in order to obtain additional capital through loans. Should Almonty fail to pay or remedy an event of default (as defined under the loan agreements) the holder of the security would then be able to seize and dispose of the secured assets.

**Access to Capital Markets**

To fund its future growth plans, the Company may become dependent on securing the necessary capital through loans or permanent capital. The availability of this capital is subject to general economic conditions and lender and investor interest in the Company's projects. To facilitate the availability of capital, the Company maintains an investor relations program in order to inform all shareholders and potential investors of the Company's developments.

**Future Financing, Credit and Liquidity Risk**

The success of exploration programs, development programs and other transactions related to concessions could have a significant impact on the need for capital. If Almonty decides to develop one of its properties, it must ensure that it has access to the required capital. The Company could finance its need for capital by using working capital, by arranging partnerships or other arrangements with other companies, through equity financing, by taking on long-term debt or any combination thereof.

Almonty's maximum exposure to credit risk, excluding the value of any collateral or other security, is the creditworthiness of its customer that is operating as counterparty to Almonty's supplier financing program. All invoices submitted to the customer under the Supply Agreements are subject to a supplier finance program and a factoring fee that varies with a fixed spread to the 6-month LIBOR/SOFR rate. Almonty is exposed to fluctuations in the 6-month LIBOR/SOFR rate up to a maximum of movement of 250 basis points. For every 100 basis point movement in the 6-month LIBOR/SOFR rate would impact the Company's cash flow by +/- US$1.00 for each US$100.00 in revenue. Almonty assigns all trade receivables that are subject to the supplier finance program to a third party bank and receives prepayment from the bank on the invoices assigned. The availability of this program rests solely on the ability of Almonty's customer to continually pay down the supplier financing facility as it comes due in order to ensure Almonty has access to draw on the facility when it ships WO3 concentrate to the customer under the Supply Agreements. If the 6-month LIBOR/SOFR rate were to exceed the maximum amount or if Almonty were to no longer have access to the supplier financing program it would revert to normal trade terms with its customer.

**Economic Dependency**

Daytal and Beralt, together with Almonty, are parties to the Supply Agreements with one Customer. Currently the majority of the revenue earned by the Company's operation in Portugal is sold to the Customer. Almonty is economically dependent on the revenue received from the Customer in order to be able to meet its current obligations and is subject to the pricing terms set out in the Supply Agreements. There is no guarantee that Almonty would be able to find an alternative customer or customers on terms similar to its existing Supply Agreements should the Customer cease operations or become unable to pay Almonty under the Supply Agreements.

**Tungsten Market**

There is no assurance that a profitable market will continue to exist for the sale of tungsten. Tungsten prices have experienced significant movement over short periods of time and are affected by numerous factors beyond the Company's control, such as international economic and political trends, expectations of inflation, currency exchange fluctuations, interest rates, global or regional consumption and demand patters, speculative activities and increased production due to improved mining and production methods. Tungsten prices may be negatively affected by any slowing of the global economy, increases in exports from one market economy countries, notably China, and the release of tungsten concentrate onto the market from the U.S. National Defence Stockpile.

**Rising Competition in Non-Chinese Tungsten Supply**

As global efforts to reduce dependency on Chinese tungsten increase, competition among non-Chinese producers may intensify. This could impact pricing dynamics, market share, and long-term profitability. Failure to maintain cost competitiveness or secure strategic partnerships may adversely affect our market position.

**Industry-Specific Commodity Risks**

The Company's profitability is highly dependent on the global tungsten market, which is influenced by various factors beyond the Company's control, including demand from industrial sectors such as aerospace, energy, and defense, as well as competition from alternative materials. A significant decline in demand for tungsten, due to technological advancements or substitution by other materials, could negatively affect the Company's revenue. Additionally, the Company's revenue is subject to regional market dynamics, and any unfavorable shifts in tungsten demand in key markets such as Asia, Europe, and North America may adversely impact profitability.

**Operational Risks**

**Production**

Daytal's contract with Movimentos de Tierras Y Excavaciones, S.L.U. ("**MOVITEX**"), under which MOVITEX carries out contract mining activities for Daytal at the Los Santos Mine, was entered into for the life of the Los Santos Mine with an effective date of January 15, 2014. Daytal did not have any mining capabilities of its own and relied on MOVITEX for all mining activity, including waste rock removal, pit development and delivery of ore to Daytal's crushing and processing plant. During fiscal 2020, Daytal has not required the services of MOVITEX as a result of a change of mine plan initiated during Q3-2019. Although Daytal has moved from ore extraction to tailings processing, Daytal is investigating additional sources of ore and, if determined to be economical, may re-engage the services of MOVITEX.

**Competition**

The mining industry is very competitive and the Company has to compete with other companies related to the acquisition of attractive mineral properties and the retention of skilled labour. Many competitors possess greater financial, technical and other resources than the Company. As a result, the Company may be faced with a shortage or no supply of ore or employees, as well as not being able to maintain or acquire mineral properties on reasonable terms or at all.

**Risks Related to Property Title**

Although the Company leases all of the land of the Los Santos Mine from third party property owners as well as the two closest municipalities to the Los Santos Mine and the Company has obtained legal opinions on the titles to all of its properties, and although it has taken reasonable measures to ensure that all property titles are valid, there is no certainty that the property titles will not be challenged or questioned. Third parties could have valid claims to the lands occupied by the Company or immediately adjacent to the Company's leased lands.

**Dependence on Key Personnel**

The Company is dependent on a relatively small number of key employees, of which the loss of any could have an adverse effect on its operations.

**Laws and Regulations**

The Company's exploration and development projects are subject to laws and regulations, including those concerning mining as well as environmental and health and safety matters. The laws and regulations in place are susceptible to change and the impact of any modification is difficult to measure. The Company's policy is to maintain safe working conditions in compliance with applicable health and safety rules.

**Licenses and Permits**

There can be no guarantees that the Company will be able to obtain or maintain all the necessary licenses and permits to extract and process minerals, explore, develop, or maintain its continued operations, or that the Company will be able to comply with all the conditions imposed. The current operating permits and plant capacity limitations at the Los Santos Mine allows Almonty to process up to 740,000 tonnes of ore per annum. Any increase in available ore or significant increase in the concentration of tungsten contained in the ore may require the Company to expand its production and processing capabilities. The current operating permits and plant capacity limitations at the Panasqueira Mine allow Almonty to process up to 865,000 tonnes of ore per annum.

The mining license for the Los Santos Mine was granted in September 2002, for a period of 30 years and is extendable for 90 years. Daytal has to pay annual land taxes (approximately €2,000 per year) to the Spanish government. This amount is related to the surface covered and not to the production of minerals. There are no other royalty payments.

The Company files applications in the ordinary course to renew the permits associated with its mining license that it deems necessary and/or advisable for the continued operation of its business. Certain of the Company's permits to operate that are associated with the mining license are currently under application for renewal. There is no guarantee that Almonty will be able to renew the necessary permits in order to continue operating.

As at December 31, 2024, Almonty has recognized a restoration provision of $1,008 (December 31, 2023 - $988) with respect to Daytal's future obligation to restore and reclaim the mine once it has ceased to mine tungsten ore from the Los Santos Mine. The restoration provision represents the present value of rehabilitation costs relating to the mine site which are expected to be incurred in 2027 after the Los Santos Mine after Daytal ceases processing operations. This provision has been created based on Almonty's internal estimates. Assumptions based on the current economic environment have been made, which management believes are a reasonable basis upon which to estimate the future liability. These estimates are reviewed regularly to take into account any material changes to the assumptions. Actual rehabilitation costs will ultimately depend upon future market prices for the necessary decommissioning works required which will reflect current market conditions at that time. The timing of the rehabilitation is likely to depend on when the Los Santos Mine ceases to produce at economically viable rates. This in turn will depend on Almonty's ability to extend the mine life years through additional exploration and also on the future price of WO3 concentrate. The Company has had its mine plan approved by the local mining and environmental authorities in the Province Salamanca and is currently awaiting approval of the regional mining authority in Castilla y Leon. Almonty's current mine plan entails ongoing reclamation work of the site as part of the pit optimization work (several small pits that have been fully mined are filled in and reclaimed as part of the regular waste rock movement and stripping work carried on other pits that are in production, as opposed to hauling the waste rock to the waste dump). The current mine plan under review by the relevant authorities entails the reclamation of the majority of the site as part of on-going operations and waste rock movement. The restoration provision currently recognized by the Company is estimated to be sufficient to cover any remedial restoration and reclamation work needed upon completion of the tailings reprocessing operation. Upon completion of open pit mining operations, during the period when the Company will process the bulk of its inventory stockpile of mineralized tailings, Almonty estimates that the current restoration provision will be sufficient to complete all reclamation work required under its mine plan. The relevant Spanish authorities may determine, upon final review, that the amount required to be posted for future reclamation work be increased. Upon approval of the mine plan the Company intends to arrange an insurance policy to cover any increase in the assessed reclamation requirements. The Company continues to work with the relevant authorities in Spain with respect to obtaining approval of its mine plan and is also engaged in active discussions with several insurance brokers to renew the insurance policy to cover the life of mine. The Company had posted an insurance policy to cover the anticipated reclamation costs when it originally filed its updated mine plan in February 2015. This policy expired in July 2016 and will be renewed upon final approval of the mine plan as filed. The relevant Spanish authorities are aware of the lapse in insurance coverage and are continuing their review of the mine plan as filed.

Banco Popular has posted a bank warranty of €180 ($269) on behalf of Daytal with the Region of Castilla y Leon, Trade and Industry Department as a form of deposit to cover the expected costs of restoring the Los Santos Mine as required by Daytal's Environmental Impact Statement that forms a part of its mining and exploitation license on the Los Santos Mine provision. The bank warranty cannot be cancelled unless such cancellation is approved by the government of Castilla y Leon upon approval of the completion of the restoration work. The bank warranty is undrawn and carries a quarterly stand- by fee of approximately €1 per quarter.

There is a restoration provision of $3,161 (December 31, 2023 - $1,205) with respect to the Sangdong Mine based on the amount assessed by the relevant local government authorities.

As at December 31, 2024, there is a restoration provision of $20,122 (December 31, 2023 - $20,627) with respect to the Panasqueira Mine's future obligation to restore and reclaim the mine once it has ceased to mine ore, currently estimated to be in the year 2045. The restoration provision represents the present value of rehabilitation costs relating to the mine site which are expected to be incurred subsequent to 2045. Total rehabilitation costs relating to the mine site are estimated to be $38,694 and are expected to be incurred after the mine ceases production. Assumptions based on the current economic environment have been made, which management believes are a reasonable basis upon which to estimate the future liability. These estimates are reviewed regularly to take into account any material changes to the assumptions. Actual rehabilitation costs will ultimately depend upon future market prices for the necessary decommissioning works required which will reflect current market conditions at that time. The timing of the rehabilitation is likely to depend on when the mine ceases to produce at economically viable rates. This in turn will depend on Almonty's ability to extend the mine life years through additional exploration and also on the future price of WO3 concentrate.

A summary of the Company's restoration provision is presented below in CAD$000's:

---

| | |
|:---|:---|
| Balance at December 31, 2022 | 38289 |
| Revisions in estimated cash flows and changes in assumptions | (16230) |
| Accretion expense | 496 |
| Translation adjustment | 266 |
| Balance at December 31, 2023 | 22821 |
| **Revisions in estimated cash flows and changes in assumptions** | **579** |
| **Accretion expense** | **495** |
| **Translation adjustment** | **396** |
| **Balance at December 31, 2024** | **24291** |

---

**The Company may not consummate or integrate acquisitions successfully, which could adversely affect its financial condition and future performance**

The Company is always actively pursuing the acquisition of exploration, development and production assets consistent with its acquisition and growth strategy. From time to time, it may also acquire securities of, or other interests in, companies with respect to which it may enter into acquisitions or other transactions. Acquisition transactions involve inherent risks, including:

● accurately assessing the value, strengths, weaknesses, contingent and other liabilities and potential profitability of acquisition candidates;

● ability to achieve identified and anticipated operating and financial synergies;

● unanticipated costs;

● diversion of management attention from existing business;

● potential loss of its key employees or the key employees of any business that the Company acquires;

● unanticipated changes in business, industry or general economic conditions that affect the assumptions underlying the acquisition; and

● decline in the value of acquired properties, companies or securities.

Any one or more of these factors or other risks could cause the Company not to realize the benefits anticipated to result from the acquisition of properties or companies and could have a material adverse effect on its ability to grow and on its financial condition.

Acquisitions by the Company, such as the acquisitions of Woulfe and BVI, involve the integration of companies that previously operated independently. An important factor in the success of an acquisition is the ability of the acquirer's management in managing the Company's business and that of the acquired company and, if appropriate, integrating all or part of that company's business with that of the acquirer. The integration of two businesses can result in unanticipated operational problems and interruptions, expenses and liabilities, the diversion of management attention and the loss of key employees and their knowledge.

There can be no assurance that a business integration will be successful or that it will not adversely affect the business, results of operations, financial condition or operating results of the acquirer and, as a result, the price of the Company's publicly traded securities. In addition, the Company may incur charges related to the acquisition of the acquired company and related to integrating the two companies. There can be no assurance that the Company, in the case of its recent acquisitions, will not incur additional material charges in the future to reflect additional costs associated with the acquisition or that all of the benefits expected from the acquisitions will be realized.

While the Company continues to seek acquisition opportunities consistent with its acquisition and growth strategy, it cannot be certain that it will be able to identify additional suitable acquisition candidates available for sale at reasonable prices, to consummate any acquisition or to integrate any acquired business into its operations successfully. Acquisitions may involve a number of special risks, circumstances or legal liabilities. These and other risks related to acquiring and to operating acquired properties and companies could have a material adverse effect on results of operations and financial condition. In addition, to acquire properties and companies, the Company may need to use available cash, incur debt, and issue Common Shares or other securities, or a combination of any one or more of these. This could limit its flexibility to raise capital, to operate, explore and develop its properties and to make additional acquisitions, and could further dilute and decrease the trading price of the Common Shares. When evaluating an acquisition opportunity, the Company cannot be certain that it will have correctly identified and managed the risks and costs inherent in the business that it is acquiring.

While at the present time the Company has no binding agreements, it is always actively pursuing potential acquisitions. The Company can provide no assurance that any potential transaction will be successfully completed, and, if completed, that the business acquired will be successfully integrated into its operations. The Company also cannot provide any assurance that if it issues equity securities in connection with an acquisition, such issuance will not be dilutive. If the Company fails to manage its acquisition and growth strategy successfully, it could have a material adverse effect on its business, results of operations and financial condition.

**Political Risk**

The Spanish, Portuguese and South Korean governments currently support the development of their natural resources by foreign and domestic companies. However, there is no assurance the government will not adopt different policies regarding foreign ownership of mineral resources, taxation, exchange rates, environmental protection, labour relations, repatriation of income or expropriation in the future.

**Geopolitical Risks in Key Operating Regions**

Geopolitical instability in regions where we operate, including potential shifts in government policies, civil unrest, trade restrictions, or expropriation, may adversely affect our operations. This could include disruptions to supply chains, regulatory challenges, or increased costs. While we operate in politically stable regions, the mining industry is inherently exposed to these risks, which could impact profitability or delay projects.

**Health and Pandemic Risks**

Global health crises, such as pandemics or epidemics, can disrupt the Company's operations by impacting employee availability, supply chains, and demand for end products. Restrictions on movement, mandatory quarantines, or other government-imposed measures may delay project timelines, increase costs, or limit access to critical infrastructure. Additionally, health crises could expose the Company to unforeseen liabilities or require additional expenditures to ensure workplace safety.

**Litigation**

All industries, including the mining industry, are subject to legal claims, with and without merit. The Company has in the past and may in the future be involved in various legal proceedings. While the Company is not aware of any possible legal proceeding that could have a material adverse effect on its financial position, future cash flow or results of operations of the Company, due to the inherent uncertainty of the litigation process and the defence costs which may have to be incurred, even with respect to claims that have not merit, there can be no assurance that the resolution of any particular legal proceeding will not have a material adverse effect on the Company.

**Risks Linked to Common Shares**

The price of the Common Shares may fluctuate for several reasons such as production and/or exploration results or operating results and cash flow, exchange rates, available financing, lack of liquidity and several other factors. It is possible that the price of a Common Share may experience significant fluctuations and that such price might be less than the actual price paid by an investor.

**Geopolitical and Trade Risks**

Geopolitical tensions and trade disputes, particularly those affecting China, Europe, and the United States, may impact the availability and pricing of tungsten. With China accounting for a significant share of global tungsten supply, any export restrictions, tariffs, or sanctions could create volatility in the market and limit the Company's ability to source materials or compete effectively.

**Regulatory**

Mining operations, development and exploration activities are subject to extensive laws and regulations governing prospecting, development, production, exports, taxes, labour standards, occupational health, waste disposal, environmental protection and remediation, protection of endangered and protected species, mine safety, toxic substances and other matters. Changes in these regulations or in their application are beyond the control of Almonty and could adversely affect its operations, business and results of operations.

Failure to comply with applicable laws, regulations and permitting requirements may result in enforcement actions thereunder, including orders issued by regulatory or judicial authorities causing operations to cease or be curtailed, and may include corrective measures requiring capital expenditures, installation of additional equipment, or remedial actions. Parties engaged in mining operations may be required to compensate those suffering loss or damage by reason of the mining activities and may be liable for civil or criminal fines or penalties imposed for violations of applicable laws or regulations. Amendments to current laws, regulations and permitting requirements, or more stringent application of existing laws, could have a material adverse effect on Almonty and cause increases in capital expenditures or production costs or reductions in levels of production at producing properties or require abandonment or delays in development of properties.

Almonty may also acquire properties located in other countries where mineral exploration activities may be affected by varying degrees of political and haphazard changes in government regulations. There can be no assurance that Almonty will be able to obtain all of the licenses and permits that may be required to conduct the operations that it may wish to undertake. Any changes in regulations or shifts in political conditions would be beyond the control of Almonty and may adversely affect its business.

The implementation of new regulations or the modification of existing regulations affecting the tungsten and the mining industry more generally could reduce demand for tungsten and other minerals and increase Almonty's costs, any of which may have a material adverse effect on Almonty's business, financial condition and results of operations.

**Cross-Border Regulatory Risks**

Given Almonty's operations across multiple countries, changes in cross-border regulations, including trade tariffs, export restrictions, and jurisdiction-specific mining laws, could disrupt its operations and supply chain. Unforeseen regulatory requirements or delays in obtaining permits in foreign jurisdictions may negatively impact the Company's ability to meet its strategic objectives.

**Permits and Permitting Process**

Mining companies must obtain numerous permits, licenses and approvals that strictly regulate environmental, health, safety, access and other matters in connection with mining. Regulatory authorities exercise considerable discretion in whether or not to issue permits, licenses and approvals and the timing of such issuances.

Also, private individuals and the public at large often possess rights to comment on and otherwise engage in the permitting, licensing and approval processes, including through intervention in the courts. Accordingly, new permits, licenses and approvals required by Almonty to fully exploit its properties may not be issued, or if issued, may not be issued in a timely fashion, or may contain requirements which restrict Almonty's ability to conduct its mining operations or to do so in a profitable manner.

In addition to authorizations required in connection with its mineral properties, other mines that may be acquired by Almonty will require governmental authorizations and permits before these properties can be developed and brought into production. Access to such lands for mining purposes may be restricted by present or future legislation. Accordingly, there can be no assurance that Almonty will be able to obtain the necessary authorizations to further develop its mineral properties or other resource properties that it may acquire in the future. To the extent such authorizations are required and not obtained, Almonty may be restricted or prohibited from proceeding with planned exploration, development and production activities.

Almonty believes it (or its subsidiaries) presently holds all necessary licenses and permits to carry on the activities at its mineral properties, and that it is presently complying in all material respects with the terms of such licenses and permits. There can be no guarantee, however, that Almonty or its subsidiaries will be able to obtain and maintain, at all times, all necessary licences and permits required in connection with its mineral properties or any exploration or development activity or to place its properties into commercial production and to operate mining facilities thereon.

**Disruptions in Production**

Factors affecting the production and sale of minerals that could result in decreases in profitability include:

● expiration or termination of, or sales price re-determinations or suspension of deliveries under, mineral supply agreements;

● future litigation;

● the timing and amount of insurance recoveries; work stoppages or other labour difficulties;

● mine worker vacation schedules;

● mining and processing equipment failures and unexpected maintenance problems;

● a disruption in the supply of commodities used in mining, such as steel, copper, rubber products, ammonium nitrate/fuel oil, and liquid fuels; and

● changes in the market for certain mineral and general economic conditions.

Adverse weather conditions such as heavy rain and flooding, equipment replacement or repair, fires, amounts of rock and other natural materials and other geological conditions can also have a significant impact on operating results of Almonty.

**Infrastructure and Operational Risks**

The Company's operations depend on the effective maintenance and operation of its mining infrastructure, much of which has been in service for many years. Aging infrastructure may result in increased maintenance costs, unexpected equipment failures, or operational disruptions. Additionally, delays or interruptions in the transportation of tungsten concentrate to global markets, whether caused by logistical bottlenecks, weather-related events, or third-party disruptions, could adversely affect operations.

**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.

**Supply Chain Disruptions**

Global supply chain challenges, including limited availability of key materials, shipping delays, or cost inflation, could affect the Company's ability to procure essential equipment or maintain production schedules. Additionally, dependency on specialized suppliers for mining equipment increases exposure to disruptions, potentially impacting operational timelines and costs.

**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.

**Mining Risks and Insurance**

Almonty's exploration, development and mining operations are subject to significant risks beyond the control of management that can delay tungsten mining or delivery, or increase the cost of mining. Such risks include natural disasters, unexpected equipment repairs or replacements, environmental hazards, industrial accidents, and inclement or hazardous weather conditions. Such risks could result in damage to, or destruction of, mineral properties or production facilities, personal injury or death, environmental damage, delays in mining, monetary losses and legal liability. In this regard, insurance is maintained to protect against risks that are typical in the mining industry. However, there is no guarantee that such insurance coverage will be adequate in all cases.

In the course of exploration, development and production of mineral properties, several risks may be encountered; in particular, risks involving unexpected or unusual geological or operating conditions. It is not always possible to fully insure against such risks, and Almonty may decide not to take out insurance against such risks as a result of high premiums or other reasons. Should such liabilities arise they could reduce or eliminate any future profitability and result in an increase in costs and a decline in value of the securities of Almonty.

Insurance against certain risks may not be available to Almonty at reasonable economic rates or at all. To the extent that Almonty is subject to liabilities that are not economically or otherwise insurable, the payment of such liabilities would reduce the funds available to Almonty.

**Reserve and Resource Depletion**

The long-term viability of the Company depends on its ability to replace and expand reserves through exploration, acquisitions, or technological advancements. There can be no assurance that future exploration or resource delineation activities will yield economically viable results. If reserves are depleted faster than anticipated or not replaced in a timely manner, the Company's production levels, revenues, and profitability may be adversely affected.

**Risks Related to Underground Stope Stability**

The stability of underground stopes is a critical factor in ensuring the safety and efficiency of mining operations. Stope collapses or ground failures could lead to operational delays, equipment damage, safety hazards, or loss of access to ore bodies. Factors such as unexpected geological conditions, inadequate ground support systems, or seismic activity may increase the risk of collapse. The occurrence of such events could result in significant operational disruptions and financial losses.

**Technological Obsolescence**

Our ability to remain competitive depends on the adoption of advanced mining and processing technologies. Failure to innovate or integrate new technologies could lead to inefficiencies, higher costs, and diminished competitiveness. The capital-intensive nature of technological upgrades poses additional financial risks, especially if investments do not yield the expected returns.

**Expiration of Licences and Leases**

Almonty's properties may be held in the form of permits, licences and leases and working interests in permits, licences and leases. If Almonty or the holder of any such permit, licence or lease fails to meet the specific requirement of such permit, licence or lease, the permit, licence or lease, as applicable, may terminate or expire. There can be no assurance that any of the obligations required to maintain each permit, licence or lease will be met. The termination or expiration of such permits, licences or leases or the working interests relating to a permit, licence or lease may have a material adverse effect on Almonty's results of operations and business.

**Management of Growth**

Almonty may be subject to growth-related risks including capacity constraints and pressure on its internal systems and controls. The ability of Almonty to manage growth effectively will require it to continue to implement and improve its operational and financial systems and to expand, train and manage its employee base. The inability of Almonty to deal with this growth could have a material adverse effect on its business, operations and prospects.

**Insurance Limitations**

While the Company maintains insurance coverage against various risks, including operational and environmental hazards, such coverage may not adequately protect against all potential liabilities. Certain risks, such as catastrophic environmental damage or geopolitical events, may not be fully insurable or may result in coverage limits being exceeded. In such cases, the Company may be required to cover these costs, which could adversely affect its financial condition.

**Cybersecurity and Data Protection**

As reliance on digital systems increases, the risk of cybersecurity breaches becomes more significant. Unauthorized access to operational, financial, or sensitive stakeholder data could disrupt operations, lead to financial losses, regulatory penalties, and reputational damage. The mining industry is increasingly targeted by cyber threats due to its critical infrastructure role. While we have implemented safeguards, no system is entirely secure, and future incidents could materially impact our business.

**Enhanced Environmental and Climate Risks**

Environmental legislation is evolving globally, particularly in jurisdictions where the Company operates. Stricter environmental standards, emissions controls, or water usage regulations could increase compliance costs or restrict the Company's operations. Additionally, heightened awareness and policy changes related to climate change could reduce demand for tungsten in specific industries, further impacting the Company's revenue and growth prospects.

**Environmental Matters**

All of Almonty's operations are subject to environmental regulations, which can make operations expensive or prohibit them altogether. If Almonty violates any of the laws and regulations relating to the protection of the environment, Almonty may be subject to substantial fines, criminal sanctions and/or third-party lawsuits and may be required to install costly pollution control equipment or, in some extreme cases, curtail operations. Almonty will generally be required to obtain permits under applicable environmental laws and regulations. Compliance with environmental laws and regulations, as well as with any requisite environmental permits, may increase costs. Almonty may also face exposure to actual or potential claims and lawsuits involving environmental matters.

Changes in environmental laws and regulations occur frequently, and any changes may have a material adverse effect on Almonty's results of operations, financial condition and/or competitive position. New legislation or regulatory programs could have an adverse effect on Almonty's operations.

**Climate Change Regulations**

Increasing global focus on climate change and carbon emissions could lead to stricter environmental regulations and compliance costs for mining operations. These changes may include carbon taxes, mandatory emissions reductions, or stricter operational standards. Failure to adapt to these regulations may result in fines, operational restrictions, or loss of competitive positioning. Furthermore, evolving stakeholder expectations for sustainability practices could impact access to financing and marketability of our products.

**Water Supply and Management**

Mining operations require significant quantities of water for ore processing, dust suppression, and other operational needs. Water availability can be affected by regulatory restrictions, climate change, or competition with other water users. A lack of sufficient water supply or the imposition of restrictions on water use could disrupt operations and increase costs. Additionally, failure to manage water discharge or contamination risks could lead to environmental liabilities and reputational damage.

**Opposition to Mining**

Almonty's business may be affected by environmental activists who engage in activities intended to disrupt Almonty's business operations. As a result, there could be delays or losses in transportation and deliveries of minerals to Almonty's customers, decreased sales of Almonty's minerals and extension of time for payment of accounts receivable from Almonty's customers, which could have a material adverse effect on Almonty's business, financial condition and results of operations.

**Increased Costs and Compliance Risks as a Result of Being a Public Company**

Legal, accounting and other expenses associated with public company reporting requirements have increased significantly in the past few years. Almonty anticipates that general and administrative costs associated with regulatory compliance will continue to increase with recently adopted or amended corporate governance requirements.

**Legal Systems**

As civil law jurisdictions, Spain, Portugal and South Korea have legal systems which are different from the common law jurisdictions of Canada and Australia. There can be no assurance that joint ventures, licenses, license applications or other legal arrangements will not be adversely affected by changes in governments, the actions of government authorities or others, or the effectiveness and enforcement of such arrangements.

**Enforcement of Civil Liabilities**

Certain of the directors of Almonty reside outside of Canada. It may not be possible for investors to effect service of process within Canada upon the directors not residing in Canada. It may also not be possible to enforce against Almonty and certain of its directors named herein judgements obtained in Canadian courts predicated upon the civil liability provisions of applicable securities laws in Canada.

**Ukraine Conflict**

It is unclear whether the Company's future operations may be affected by the outbreak of war between Russia and Ukraine or other miliary conflicts, the variety of sanctions implemented by the international community on Russia or the resulting withdrawal of products and services from Russia.

While management believes that it is taking appropriate measures to support the sustainability of the Company's business in the current circumstances, a continuation of the current business environment could negatively affect the Company's results and financial position in a manner not currently determinable. These consolidated financial statements reflect management's current assessment of the Ukraine conflict. However, the future business environment may differ from management's assessment.

**Risks Related to Almonty's Redomiciling to the United States**

As disclosed previously, Almonty announced its plans to change its jurisdiction of incorporation from Canada to the State of Delaware. There are certain risks related to such redomiciling and the arrangement pursuant to which the redomiciling will be accomplished. For a description of these risk factors, please refer to the Management Information Circular sent to shareholders in connection with the Special Meeting of Almonty shareholders held on February 27, 2025 under the heading "Certain Risk Factors Related to the Arrangement".

**MINING PROJECTS**

The following summary information regarding the Los Santos Mine, the Panasqueira Mine, the Valtreixal Mine and the Sangdong Mine are taken from and based entirely on the Technical Reports as filed under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>. The Technical Reports are incorporated by reference into this AIF.

The Technical Reports were each prepared by Adam Wheeler, a Qualified Person in accordance with NI 43-101.

Almonty has four projects across Spain, Portugal and Korea. An overview of the location and stage of Almonty's various projects are detailed below.

Almonty's projects range from being in the development, exploration, exploitation and mining stage with interests in tungsten, tin and other metals. Further details on Almonty's projects are set out below.

**LOS SANTOS MINE SUMMARY**

**Introduction and Overview**

&nbsp;&nbsp;&nbsp;&nbsp;(i) *History of operations* 

 

The Los Santos Mine has been in production since 2008 and produces tungsten concentrate products. The mine was opened in June 2008 and commissioned in July 2010 by its former owner. Almonty acquired the Los Santos Mine in September 2011 through its wholly owned subsidiary Daytal.

Since the start-up of the mine in 2006, Daytal completed additional diamond drilling and reverse- circulation drilling. Up until the end of mining in 2019, the current combined sample database used for resource modelling contains data for 495 drillholes and 255 trenches, for a total of 6,779 samples. The total drilled length is 41,924m.

The 2015 exploration campaign at the Los Santos Mine was completed in June 2015. Pit production stopped in April 2019. Tailings were then re-processed from April 2019 to January 2020, when the processing operations were temporarily suspended.

In February 2020, as a result of additional testing work, Almonty decided to place the Los Santos Mine into care and maintenance. The Company plans to re-open operations for tailings reprocessing in 2026.

&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Regional geology* 

 

The Los Santos Mine is located approximately 50 km from Salamanca in western Spain and produces tungsten concentrate. The Los Santos Mine covers an area of 38 mining grids. The Los Santos Mine has been identified with significant underground mine potential and its underground mine potential was exploited in the deepening of the Los Santos Sur pit and Los Santos Sur South-West pit.

&nbsp;&nbsp;&nbsp;&nbsp;(iii) *Present operations* 

 

Almonty has an exploitation concession over the Los Santos Mine which grants it the right to use the resource or resources marked within the perimeter of the Los Santos mine. Almonty's concession term is for 30 years with an option to extend for another two periods of the same duration, with a maximum total length of 90 years.

The principal product of the Los Santos Mine is tungsten concentrate. Almonty has been focused on utilising its expertise in order to optimise operations, reduce costs and improve the tungsten recovery rate of the Los Santos Mine. To date, Almonty has achieved an approximate 50% recovery rate of WO3 from its tailings retreatment as a result of continuing tests and trials. Some of the tailings have already been re-processed, in the period from April 2019 to January 2020.

The Company continues to improve and increase its knowledge in the area of tailings reprocessing which further demonstrates Almonty's commitment to invest in tungsten technologies.

&nbsp;&nbsp;&nbsp;&nbsp;(iv) *Exploration* 

 

To verify and test the extension of certain skarn beds, Daytal completed exploration drilling campaigns in each year from 2009 to 2015. This has comprised a total of 156 diamond drillholes and 111 reverse circulation holes.

The Los Santos Technical Report was prepared to provide a technical report compliant with the provisions of NI 43-101 by way of a review and summary of resource and reserve estimations for the Los Santos Mine, up to the end of June 2015. This current estimate was completed during August- October, 2015. The Los Santos Mine is currently an open pit operation, and is located in the Province of Salamanca in Spain. The principal product of the Los Santos Mine is a tungsten concentrate. The Los Santos Mine started open pit ore production during 2008, and the mill was commissioned during the same year. The Company decided in February 2020 to implement a planned closure of Daytal's operations by placing the Los Santos Mine into care and maintenance.

The Los Santos Technical Report was prepared by Adam Wheeler, Mining Consultant (an independent Qualified Person ("**QP**") for the purposes of NI 43-101), at the request of Mr. N. Alves, Director of Mine Development, for Almonty. Assistance and technical detail were supplied by the technical personnel at Los Santos. Mr. Wheeler has been involved with resource and reserve estimation at the Los Santos Mine since 2006, and has visited the Los Santos Mine many times. In connection with the latest resource and reserve estimate, and with the preparation of the Los Santos Technical Report, Mr. Wheeler visited the site from September 21-24, 2015.

The following is a direct reproduction of the summary section of the Los Santos Technical Report. Notwithstanding how certain terms have otherwise been defined in this AIF, terms defined in this Section have the meanings ascribed thereto in the Los Santos Technical Report. This Section is qualified in its entirety by the full text of the Los Santos Technical Report.

**Ownership**

Daytal is a wholly owned Spanish subsidiary of Almonty, a corporation governed by the CBCA. Almonty trades on the TSX under the symbol "AII". The Los Santos mine is 100% owned by Daytal.

**Geology and Mineralization**

Los Santos lies within Lower Palaeozoic sediments in the Central Iberian Tectonic Zone, which forms part of a Europe-wide, Variscan age orogenic belt. The stratigraphy comprises a thick sequence of clastic metasediments, ortho- and para-gneisses, with volcanic and carbonate formations.

This stratigraphy was intruded by Hercynian (274 Ma old) granitoids in a series of plutons, with numerous, crosscutting granite and aplite dykes, sills and irregular pods intruding the metasediments up to 0.5km from the regional granite contact.

The Los Santos deposit is a typical skarn-hosted scheelite deposit, where intrusion of granitoids into carbonate-rich sedimentary rocks has resulted in their replacement by calc-silicate or siliceous minerals, together with mineralisation. It forms from impure Fe-rich carbonates and contains pyroxene, scheelite, plagioclase and locally magnetite. The scheelite is generally fine grained, minus 1mm in size, but individual crystals may exceed 1cm.

In particular areas sulphide-rich skarns also occur. They are up to 5m thick and several metres in strike length, and comprise massive or semi-massive sulphide horizons with scheelite mineralisation. Sulphides comprise pyrite, arsenopyrite (lollingite), pyrrhotite and chalcopyrite as principal minerals.

The four main rock types present at Los Santos are skarn, granite, calc-silicates and corneanas, a word applied to mean all other metamorphic rocks (mostly hornfels) at the site.

The tungsten occurs mainly as scheelite within massive pyroxene skarn. The skarn bodies are generally narrow steeply dipping structures. The deposit is made up of a number of discrete zones, six of which have been modelled for the current resource estimate. The strike length varies for each zone, but zone dips are fairly uniform across the deposit, varying between 60<sup>o</sup> to 90<sup>o</sup>. Within each zone, the skarn mineralisation is located within a number of individual beds, separated by barren lithologies. The major skarn beds vary between 2m and 20m in width; there are, however, numerous thinner bands measuring tens of centimetres.

**Database and Resource Estimation**

Subsequent to the original discovery in 1980, Billiton completed an exploration campaign which included 249 trenches and 231 diamond drillholes. In addition, in one of the zones, Los Santos Sur, an underground ramp and level access at the 945m elevation was developed, which totalled 825m of development. The level development provided bulk samples as well as underground drilling access.

Since start-up of the mine in 2006, Daytal have also done some additional diamond drilling and reverse- circulation drilling. The current combined sample database used for resource modelling contains data for 495 drillholes and 255 trenches, for a total of 6,779 samples. The total drilled length is 41,924m.

The resource estimation has been completed using a computerised three-dimensional block modelling approach, using the Datamine mining software system. For each of the zones being evaluated, skarn bed interpretations have been built up into wireframe models. Other wireframe models have been defined for the boundaries of the principal lithologies. Volumetric block models were then built up to reflect the lithologies and skarn beds. The principal parent block size used was 10m x 10m x 10m, but with sub-blocks within the skarn beds measuring 5m along-strike and down-dip, and 2.5m across-strike. The model structure was also rotated at an angle of approximately 22<sup>o</sup>, so that blocks were more logically oriented with the majority of skarn structures.

The skarn bed wireframe models were used to select separate sample sets within each bed. These selected samples were then converted into approximately 2.5m composites. The composite WO3 grade values were used to interpolate grades into the block model, according to the parent skarn beds to which they belonged. Geostatistical analysis was used to assist in the selection of interpolation parameters, as well with subsequent resource classification. An oxidised layer has also been defined down to 10m underneath the topography.

The final block models were used as the basis of resource estimation, pit optimisation, pit planning and subsequent reserve estimation. The block models contain fields which include the lithology, skarn bed identification, rock density and WO3 grade.

**Mine Planning**

The resource block models for each zone have been used for pit optimisation. The pit slope parameters were derived from the geotechnical studies. Overall slope angles, allowing for road intersections and bench configurations, of approximately of 55<sup>o</sup> (North) and 48<sup>o</sup> (South) have been applied. For the top 10m of superficial material, a lower overall slope of 45<sup>o</sup> was applied.

The resultant optimised pit models were used as the basis for final pit designs. Since mine start-up in 2006, open pit mining had started in five zones – Los Santos Sur, Las Cortinas, Sector Central, Capa Este, and Los Santos Sur SW. The pits have 10m benches, although within the skarn ore zones this is reduced to 5m sub-benches. All material is drilled and blasted, using Tamrock CHA1100 drills making 3.5in diameter blastholes. Pre-split lines are used for final pit walls. The haul roads are 10m wide with a 10% gradient, and Komatsu HD465 trucks are used, which carry approximately 55 tonnes.

In or near ore, all blasthole cuttings are sampled. This data is used to build up short-term planning block models, from which all ore and waste outlines are blocked out. As well as demarcating the ore boundaries in the pit with ribbons, a geological technician is present at all times during production in the pits, to assist with ore/waste definition during mucking. Komatsu and Cat crawler-excavators are used for both ore and waste excavation.

All mining work was carried out using Spanish mining contractors, Movitex and Perforaciones Noroeste. There are two main separate waste dumping areas, and waste used where possible to backfill mined-out pits. Ore is split into different grade categories, and deposited in separate areas on the run- of-mine pad or on a separate low grade stockpile.

In the reserve estimation, a small amount of underground ore has also been blocked out from small narrow bed extensions beneath the 'Day 1' pit to the west of Los Santos Sur. These parts can be reached by adit access from the pit or by access from the existing underground ramp. A 3m minimum mining width has been used blocking out these underground reserves, and assumes an overhand cut-and-fill stoping method.

The Company decided in February 2020 to implement a planned closure of Daytal's operations by placing the Los Santos Mine into care and maintenance.

**Mineral Processing**

The process plant is primarily based on gravimetric separation, aimed at recovering a high grade scheelite concentrate.

The primary crushing circuit employs a jaw crusher, with a nominal 100tph capacity, followed by two cone crushers, generating a minus 12 mm size material in a conical open stockpile ahead of the main process plant. A conveyor feeds this material at 65 tph rate into a rod mill which produces a ground product. This ground ore is then wet-screened at 1000 µm, with the oversize being reground in a regrind ball mill and the minus 1,000 µm undersize product being the raw feed to the gravity circuits.

Two banks of hydrocyclones then split the gravity circuit feed material into 1,000/150 µm and 150/30 µm size fractions. Both size fractions go through low intensity magnetic separation to remove mill steel and pyrrhotite ahead of gravity separation.

The non-magnetics streams from the two size fractions then go to their respective banks of rougher spirals. Middlings are recycled via middlings-cleaners spirals, and the rough spiral tails exit as waste. In both circuits, rougher concentrates are cleaned in a bank of cleaner spirals before going forward to shaking tables. Concentrates from the coarse and fines spirals are fed to a hydrosizer which feeds four separate tabling circuits. Tailings from the cleaner step of all tabling circuits are recycled back to the hydrosizer,

The coarse tailings are dewatered by thickening cyclones and a high frequency screen. Fine tailings are dewatered in a thickener and filter press. In both cases, the final tailings product is dry enough to be trucked and disposed of on the mine waste dump. The thickener overflow is recycled as process water and the plant operates with a zero discharge.

The combined gravity concentrates are batch-processed through two 3m3 flotation cells to float off sulphides. The non-floating material, principally scheelite, is discharged into a dewatering cone, and then goes through a rotary kiln dryer, followed by three-stage high intensity magnetic separation, to remove any remaining mill steel and pyrrhotite and any para-magnetics (mainly pyroxene). A final high grade scheelite concentrate constitutes the final saleable product, and typically has a grade of approximately 65% WO3.

The currently predicted overall recovery of WO3 for the reprocessing of tailings is 46%. Raising this tailings recovery to 50-55% levels is one of the targets of on-going metallurgical test work.

**Mineral Resource and Reserve Estimates**

The current resource estimation is shown in Table 1 and Table 2. The evaluation work was carried out and prepared according to the guidelines of the JORC Code (2012).

**Table 0. Los Santos – Mineral Resources Estimate At 31<sup>st</sup> December, 2020**

---

| | | | |
|:---|:---|:---|:---|
|  | **Tailings**<br>**Material** | **Tonnes**<br>**Kt** | **WO<sub>3</sub>**% |
| ***Indicated Resources*** | **Coarse** | 3234 | 0.12 |
|  | **Fine** | 533 | 0.22 |
|  | **Total** | **3767** | **0.13** |

---

---

| | |
|:---|:---|
| **Notes** |  |
|  | **. Cut-off = 0.07% WO<sub>3</sub>** |
|  | **based on price of $350/mtu WO<sub>3</sub>** |
|  | **. Resources shown are inclusive of Reserves** |

---

It is considered that all these tailings resources are available and economically viable to process, and so all of these resources included in the ore reserves, without any modifying factors. This is based on a cut-off of 0.07%WO3, which has been derived on assumed price of $350/mtu WO3, a processing cost of $6.50/t ore and a G&A cost of 2.51/t ore. These reserves are therefore summarised in Table 0.

**Table 0. Los Santos – Probable Ore Reserves At 31<sup>st</sup> December, 2020**

---

| | | | |
|:---|:---|:---|:---|
|  | **Tailings**<br>**Material** | **Tonnes**<br>**Kt** | **WO3**% |
| **Probable Reserves** | **Coarse** | 3234 | 0.12 |
|  | **Fine** | 533 | 0.22 |
|  | **Total** | **3767** | **0.13** |

---

---

| | |
|:---|:---|
| **Notes** |  |
|  | **. Cut-off = 0.07% WO<sub>3</sub>** |
|  | **based on price of $350/mtu WO<sub>3</sub>** |

---

At an annual ore production rate of 500 ktpa, and this reserve base, a processing period of approximately 7 years is suggested.

**PANASQUEIRA MINE SUMMARY**

**Introduction and Overview**

A report was prepared to provide a Technical Report compliant with the provisions of NI 43-101, and comprises a Resource and Reserve Estimation for the Panasqueira Mine, as of the end of September 2016. The Panasqueira mine is located in central Portugal, in the Distrito de Castelo Branco, on the southern edge of the Serra da Estrela, a Portuguese mountain range approximately 300 km north-east of the Portuguese capital city of Lisbon and 200 km southeast of the port city of Porto.

The first prospecting licence at Panasqueira was granted in 1886 and the first reference to wolframite was two years later. A mining company was founded in 1896 to mine tungsten at Panasqueira, and the underground mine has been operating more or less continuously since that time, except for a brief period at the end of World War II and a second closure in the mid-1990s.

During the period 1937-2016, a total of approximately 40 million tonnes of rock has been mined which has produced approximately 128,000 tonnes of tungsten concentrate, 6,600 tonnes of tin concentrate and 32,000 tonnes of copper concentrate.

This report was prepared by Adam Wheeler, at the request of Almonty Industries Inc. ("Almonty"). Assistance and technical detail were supplied by the technical personnel of BTW, a company incorporated and existing under the laws of Portugal. In connection with the preparation of this report, Adam Wheeler visited the Panasqueira site from November 23rd - 25th, 2016.

The following is a direct reproduction of the summary section of the Panasqueira Mine Technical Report. Notwithstanding how certain terms have otherwise been defined in this AIF, terms defined in this Section have the meanings ascribed thereto in the Panasqueira Mine Technical Report. This Section is qualified in its entirety by the full text of the Panasqueira Mine Technical Report.

**Ownership**

Almonty currently owns 100% of BVI, a body corporate pursuant to the laws of British Columbia, Canada. BVI owns 100% of BTW, which in turn is the 100% owner of the various rights and interests comprising the Panasqueira Mine in Covilhã, Castelo Branco, Portugal.

**Geology and Mineralisation**

Panasqueira is a vein type deposit located in the Center Iberian Zone of Portugal, where several tungsten mines have been worked during the 20th century. These are generally accompanied by granite outcrops intruding schist and slates. There are different kind of tungsten-host structures, but the more frequent are sub-vertical quartz veins close the contacts with granites, or even inside them. At the current time, the Panasqueira mine is the only active tungsten mine in Portugal. There are however, several active Sn and WO3 exploration licenses (DGEG internet site: www.dgeg.pt).

The Panasqueira deposit consists of a series of stacked, sub-horizontal, hydrothermal quartz veins intruding into the Beira schists containing wolframite mineralisation, which occurs as very large nugget-like crystals of large crystal aggregates, usually concentrated towards the margins of the quartz veins or, occasionally, closer to the central portion of the veins. The overall mineralized zone has dimensions of approximately 2,500m in length; 400m to 2,200m in width and at least 500 m in depth.

Historically, mining has progressed from the upper levels to lower levels, which are spaced 60 – 90m apart. Typically seven or eight flat dipping veins occur from one level to the next, with an average thickness of 0.3 m (range 0.1-1.0m). These host the economic mineralization over continuous strike lengths of 40 - 100 m. These mineralized quartz veins located throughout all mine levels, typically pinch out and later re-occur. Resources occur over five levels – Level 0 to Level 4.

Even though the mine has been in operation for more than 100 years, very little primary exploration has been done outside the active or past mine workings. The hills surrounding the mine contain many old pits and shafts left from old small tungsten vein hand mining operations. A regional stream sediment geochemical survey carried out between 1982-1984, some exploration drillholes and a lithogeochemical survey over selected areas in and adjacent to the Panasqueira returned areas of tin and tungsten anomalies.

Exploration drilling for additional resources and reserves, in advance of production, continues as the normal course of mine activities. To date, more than 80 diamond drillholes have been completed from surface, but these holes commonly flatten considerably as they deepen and are therefore limited for assistance with vein location. Underground drilling has now covered over 4,000 drillholes, mostly of 46mm diameter. A combination of a historic fire and core dumping has left the operation with a relatively small collection of core available for review. The company, through its past experience, considers quartz veins exceeding 18cm in width to be significant and so future underground development is generally based on those intercepts.

**Database and Resource Estimation**

Two main types of samples are taken for resource and reserve estimation purposes: diamond drillhole samples and face mapping of wolframite crystals. Diamond drillhole core is left intact, but is logged by a geologist and all quartz vein intersections have a width measurement and a qualitative index recorded for up to 24 different minerals. An internally developed empirical (D9) formula is also used to convert the measured quartz vein thickness into a %WO3 grade figure. These data are used for the estimation of indicated resources, which stem from at least two drillhole intersections, and inferred resources if there are isolated individual drillhole intersections. This resource estimation involves blocking out plan areas around drillhole quartz intersections, greater than 18cm thickness, and utilises mining recovery factors and confidence factors that have been developed at the mine over many years. This 18cm thickness criteria, based on the mine's empirical factors, is equivalent to a resource cut-off of 10.8kg/m2 or 0.13% WO3.

The current drillhole database contains data from 3,870 diamond drillholes, over a total drilled length of approximately 156,900 m. The majority of the data for resource estimation comes from underground drillhole data, which are generally either level to level vertical holes, 120m holes drilled down from the deepest available levels, or much shorter 13m holes drilled vertically up and down from current stope workings. These underground holes generally produce 47.6mm (NQ) core.

Face sampling involves measuring the area of wolframite crystals exposed on quartz veins. The areas of wolframite are accumulated for a specific length of exposed vein. Another internally developed empirical (Pintas) formula is then used to convert these crystal areas into wolframite grades in units of kg/m2. Another formula is then applied to convert these grades into %WO3 grades, which are effectively diluted according to the minimum stope height of 2.2m. These data are plotted on Autocad plans for each identified vein. Measured resources are then blocked out according to these measurements, using prescribed extension distances and aligned with the mine's planning grid system (80m x 100m on Level 3 and 100m x 100m on Level 0 to Level 2) and the mine's room and pillar block system (11m x 11m). The current cut-off applied in these resource calculations is 10kg/m2, which is equivalent to approximately 0.12 %WO3. These resources are calculated from these block definitions, along with an 84% mining recovery, representing the end of exploitation with remnant 3m x 3m stope pillars to support the roof. The resources assigned as either 'Pillar' resources if they have been developed, and therefore sampled, on at least three or four sides, or 'Virgin' resources, if they are extrapolated from one or two sets of face samples, and not yet developed into 11m x 11m pillars. All of the 'measured resources' blocked out at the mine are converted into reserves. There are no measured resources which are external to the reported reserves.

With 100 years of operating experience in a statistically difficult orebody, Beralt has derived a method of resource and reserves estimation that appears to be effective.

**Mine Planning**

Mining at the Panasqueira mine has evolved from labour intensive hand operations in the early 1900's through mechanized longwall methods to the mechanized room and pillar operation currently used. This mining method is possible in part due to the very competent host rock, and underground rock support is rare.

Blocks of ore are laid out initially in 100m by 100m sections by driving 5 m wide galleries, 2.2 m in height. The planned height of the stopes is nominally 2.2m, but increased slightly in areas where ore bearing veins are more variable in their dip, strike or thickness. A major emphasis in the stoping operation is to strive towards the 2.2m mining height in all working areas.

Indicated and inferred resources are initially picked up from drillhole intersections. Potential ore/vein intersections are categories according to approximately 10m vertical slices between each main level. Stope development ramps are then driven from level to level, and approximately horizontal sub- development is used to access the highest ore intersection. When the ore intersections have been found by lateral development, and verified by face samples, 5m wide galleries are driven to create roughly 11m by 11m pillars. This development is laterally aligned to the mine grid system, but vertically the development is inclined up or down so as to follow changes in ore dip. Faults, divisions and other string variations in the ore intersections sometimes necessitate additional in-stope diamond drilling. Following yet more face samples, further ore extraction is achieved with more development, to ultimately leave 3m by 3m pillars, which corresponds to an overall extraction rate of 84%.

Between each main level, within large overall mining blocks, veins are stoped out from top to bottom. A minimum of 3m is also required for the sub-horizontal pillars which are left between stope excavations vertically. The room and pillar grid system is regular over the whole mine, so all ultimate 3m x 3m pillars precisely line up vertically. Additional barrier pillars are left to preserve the main drives and panels on each main level.

The final 3m x 3m pillars generally collapse approximately 4-5 months after stope completion. Control points in each stoping area are monitored once a month. This monitoring data, together with observations of pillar conditions, are used in demarcating locally bad ground areas, so as to stop further stoping in these regions.

The mine has two main haulage levels (Level 2 at 560 mRL and Level 3 at 470 mRL) currently in use, with rail haulage of ore from 1.8 m diameter bored raises in the stopes to either the vertical rock hoisting shaft, connecting Level 3 to Level 2 and designed to transport the 6-ton wagons (4 t net weight), or the orepass where all ore from the mine is stored prior to being crushed and transported along the 1,203m long, 17% inclination, Santa Barbara conveyor belt. This belt discharges into 4 large coarse ore bins, 3 located under the main office and another in front of the office. In 2014 the mine produced 775 kt of underground ore (ROM) plus waste.

**Mineral Processing**

The underground jaw crusher delivers minus 100mm Run-of-Mine (ROM), to the conveyor to the crushing, washing and screening (CWS) plant at a rate of about 160 tph. Plus 0.8mm material is fed to the Heavy Media Separation (HMS) section, which generally accounts for approximately 80% of the original ore feed. The fines material (approximately 20% of the original ore feed) from the CWS plant passes on to the sand and slimes shaking tables. The reject material is conveyed out to the waste dump area, where it is either dumped or sold as gravel.

The HMS concentrate, is crushed in twin roll crushers. One of the roll crushers is dedicated to +3 –5 mm material from the HMS concentrate and this material is re-circulated to the HMS plant. The minus 3mm material is hydrosized prior to concentration by gravity shaking tables. The table concentration eliminates all the gangue minerals, particularly quartz and silicates. The sand tables' concentrate, referred to as Pre- Concentrate, contains all the dense minerals, which besides wolframite, includes sulphides, cassiterite and siderite.

The pre-concentrate produced by the sand tables is then screened and the two different fractions are passed over individual shaking tables, where sulphides are removed - assisted by flotation. These table tailings then become feed for a copper circuit. The table concentrates, without sulphides, are dried and screened to prepare three sized fractions for dry high-intensity cross-belt magnetic separators. This produces a high grade wolframite concentrate, and a non-magnetic cassiterite concentrate, which goes onto a tin circuit.

The overall WO3 plant recovery averages 81%, producing over 90% of the recovered MTUs in a high grade concentrate averaging over 75% WO3, and the remainder in another high grade concentrate of 74% WO3. In 2016, approximately 69,000 MTUs of WO3 were produced, along with 384 tonnes of copper concentrates and 69 tonnes of tin concentrates.

The mine is in the process of currently planning two metallurgical pilot studies for re-processing purposes:

● Using an XRF ore sorter for the processing of HMS rejects. It is anticipated that the sortable material will represent approximately 40% of the ROM feeding the HMS (size 10-25mm), with an average grade of approximately 0.025% WO3.

● Re-processing of tailings material. The resources associated with accumulated tailings material have been estimated in the current report.

**Mineral Resource and Reserve Estimates**

The evaluation work was carried out and prepared in compliance with NI 43-101, and the mineral resources in this estimate were calculated using CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council May 2014. The current in-situ resource estimation for measured and indicated resources is shown in Table 1-1, and inferred resources are shown in Table 1-2 and Table 1-3. These resources are inclusive of the reported reserves. There are no measured resources external to reserves, as all resources classified as measured have been converted into proven or probable reserves. There has also been an evaluation of inferred resources within two tailings areas, as there is a potential for re- processing this material.

**Table 0-1. Panasqueira Mine –Measured and Indicated Mineral Resources**

**As of 30<sup>th</sup> September 2016 (INCLUSIVE OF RESERVES)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **LEVEL** | ***Measured*** | ***Measured*** | ***Measured*** | ***Indicated*** | ***Indicated*** | ***Indicated*** | ***Measured + Indicated*** | ***Measured + Indicated*** | ***Measured + Indicated*** |
|  | **Tonnes**<br>***Kt*** | **WO<sub>3</sub>**<br>*%*** | **WO3**<br>***MTU x1000*** | **Tonnes**<br>***Kt*** | **WO<sub>3</sub>**<br>*%*** | **WO<sub>3</sub>**<br>***MTU x1000*** | **Tonnes**<br>***Kt*** | **WO<sub>3</sub>**<br>*%*** | **WO<sub>3</sub>**<br>***MTU x1000*** |
| **L0** | 51 | 0.18 | 9 | 1038 | 0.23 | 236 | 1089 | 0.22 | 245 |
| **L1** | 706 | 0.20 | 139 | 1314 | 0.21 | 272 | 2020 | 0.20 | 411 |
| **L2** | 468 | 0.20 | 92 | 2984 | 0.24 | 726 | 3452 | 0.24 | 818 |
| **L3** | 727 | 0.21 | 153 | 2396 | 0.25 | 610 | 3123 | 0.24 | 763 |
| **L4** |  |  |  | 343 | 0.22 | 76 | 343 | 0.22 | 76 |
| **Total** | **1951** | **0.20** | **393** | **8076** | **0.24** | **1920** | **10027** | **0.23** | **2313** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> Notes<br>. Resources shown are inclusive of reserves<br> . Minimum thickness = 2.2m<br> . Mining recovery = 84%<br>*<u>Measured Resources</u>*<br>. Cut-off = 0.12% WO<sub>3</sub> (Equivalent to 10 kg/m<sup>2</sup>)<br> . Evaluation based on:<br>- Face mapping of wolframite exposed areas<br> - Areas converted to grade using Pinta's formula<br> - Blocks laid out on mine planning grid system<br>*<u>Indicated Resources</u>*<br>. Cut-off = 0.13% WO<sub>3</sub> (Equivalent to 10.8 kg/m<sup>2</sup>)<br> . Evaluation based on:<br>- Drillhole quartz intersections<br> - Conversion to grade using D9 formula<br> - Blocks based on atleast 2 drillhole intersections<br>. Additional factor applied:<br>- Confidence factor = 60%<br>

**Table 0-2. Panasqueira Mine – Inferred Mineral Resources**

**As of 30<sup>th</sup> September, 2016**

---

| | | |
|:---|:---|:---|
| **Mine Region** | &nbsp;&nbsp;**Tonnes**<br> **Mt** | &nbsp;&nbsp;**WO <sub>3</sub>%** |
| **Panasqueira Deep** | 0.18 | 0.22 |
| **North** | 2.73 | 0.23 |
| **South** | 2.25 | 0.20 |
| **Total** | **5.16** | **0.22** |

---

**Notes**

**. Resources shown are exclusive of reserves**

**. Cut-off = 0.13% WO<sub>3</sub>(Equivalent to 10.8 kg/m<sup>2</sup>)**

**. Evaluation based on:**

**- Drillhole quartz intersections**

**- Conversion to grade using D9formula**

**- Blocks can be based on single drillhole intersections**

**. Additional factors applied:**

**- Minimum thickness = 2.2m**

**- Mining recovery = 84%**

**- Confidence factor = 40**

**Table 1-3. Overall Property – Inferred Mineral Resources As of 30<sup>th</sup> September, 2016**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **CATEGORY** |  | ***Tonnes**<br> ***Kt**** | **WO<sub>3</sub>%** | ***WO<sub>3</sub>**<br> ***MTU x1000**** | **Cu%** | **Sn%** |
| **Mine** |  | 5158 | 0.22 | 1110 |  |  |
| **Tailings Areas** | BL1 \* | 1817 | 0.29 | 521 | 0.30 | 0.027 |
|  | BL2A \* | 3347 | 0.24 | 802 | 0.21 | 0.022 |
| **Total** |  | **10322** | **0.24** | **2433** |  |  |

---

**Notes**

**. Inferred Mine resources based on a cut-off of 0.13% WO <sub>3</sub>**

**\* Tailings resources have no cut-off applied**

**. Resources shown are exclusive of reserves**

Mineral Reserves have been determined. These reserves are part of the reported Mineral Resources. The reserves are based on face samples and have been blocked out as part of the mine's on-going stope planning process. The areas blocked out as 'Pillar resources' have been sampled on all four sides, and have been classified by CIM guidelines as Proven Reserves. The areas blocked out as 'Virgin resources' have been extrapolated from one to three sets of face samples, and have been classified by CIM guidelines as Probable Reserves. These reserves are summarised in Table 1-.

**Table 1-4. Panasqueira Mine–Mineral Reserves**

**As of 30<sup>th</sup> September, 2016**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | ***Proven Reserves*** | ***Proven Reserves*** | ***Probable Reserves*** | ***Probable Reserves*** | ***Total Reserves*** | ***Total Reserves*** |
| <br>**Level** | **Tonnes**<br> **Kt** | **WO<sub>3</sub>%** | **Tonnes**<br> **Kt** | **WO<sub>3</sub>%** | **Tonnes**<br> **Kt** | &nbsp;&nbsp;&nbsp;&nbsp;**WO<sub>3</sub>%** |
| **0** | 25 | 0.19 | 26 | 0.17 | 51 | 0.18 |
| **1** | 238 | 0.22 | 468 | 0.18 | 706 | 0.20 |
| **2** | 216 | 0.21 | 251 | 0.19 | 468 | 0.20 |
| **3** | 297 | 0.24 | 431 | 0.19 | 727 | 0.21 |
| **Total** | **775** | **0.22** | **1176** | **0.19** | **1951** | **0.20** |

---

**Notes**

**. Cut-off = 0.12% WO (Equivalent to 10kg/m<sup>2</sup>)**

**. Evaluation based on:**

**- Face mapping of wolframite exposed areas**

**- Areas converted to grade using Pinta's formula**

**- Blocks laid out with stope planning process**

**. Additional factors applied:**

**- Minimum thickness = 2.2m**

---

| | | | |
|:---|:---|:---|:---|
|  | **Virgin** | **11mx11m** | **11mx3m** |
| **Mining Recoveries** | **Areas** | **Pillars** | **Pillars** |
|  | **84%** | **67.3%** | **45%** |

---

---

| | |
|:---|:---|
| **.** | **Proven reserves are within (11 or 3m) pillars which have been sampled on at least 3 sides** |
| **.** | **Probable reserves are within virgin areas which have been sampled on 1-2 sides** |

---

**Conclusions**

**In the opinion of the QP, the following conclusions have been reached:**

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 empirical formulae developed at the mine, for evaluation purposes, have been used for decades
 and are supported by a very large amount of reconciliation data. The QP considers that these
 formulae, along with the other parameters and guidelines applied, do provide reliable methods
 of resource and reserve estimation.

&nbsp;&nbsp;&nbsp;&nbsp;2. The
 current resource and reserve estimations shown in this report have been reviewed by the QP.
 In the opinion of the QP, this review supports the estimation results presented.

&nbsp;&nbsp;&nbsp;&nbsp;3. The
 same resource/reserve cut-off grades have been in use since 2011. Since that time, the total
 reserve quantity has been maintained, although the overall total resource base has generally
 declined. This means that the mine's on-going stope development has elevated resource
 categories as planned, although drilling levels have declined, which has led to a reduction
 in overall resources.

&nbsp;&nbsp;&nbsp;&nbsp;4. The
 most important areas of the mine which offer the most scope for overall resource expansion
 are the Panasqueira deep area and Level 4 (below 470mRL).

&nbsp;&nbsp;&nbsp;&nbsp;5. The
 tailings dump BL2A resources have currently been classified with an Inferred resource category.
 The principal reason for this classification if chiefly the lack of assay data covering a
 major part of the area. But when the remaining assay data from all of the 2016 tailings-drilling
 samples becomes available, some areas within the BL2A should be able to be classified as
 Indicated resources.

Similarly, re-processing of tailings presents another important opportunity for potential recovery of WO3 product, as well as some copper and tin. Testwork connected with tailings re-processing is currently being done in both Spain (at the National Energy and Geology Laboratory in Porto) as well as CRONMET in South Africa.

**VALTREIXAL MINE SUMMARY**

**Introduction and Overview**

The Valtreixal Technical Report was prepared to provide a technical report compliant with the provisions of NI 43-101 and comprises a resource and reserve estimation for the Valtreixal Mine as of the end of October 2015. The Valtreixal Mine is a potential open pit operation, and is located in the Northwest part of the Zamora province, in the Castilla de Leon region of Spain. The Valtreixal Mine has been explored with underground development since the late 1800s, and limited tin exploitation occurred sporadically in the late 1900s. The principal potential products are tungsten and tin.

The Valtreixal Technical Report was prepared by Adam Wheeler, at the request of Mr. N. Alves, Director of Mine Development, for Almonty. Assistance and technical detail were supplied by the technical personnel of Daytal. Adam Wheeler visited the Valtreixal Mine most recently on June 15 and 16, 2015.

The following is a direct reproduction of the summary section of the Valtreixal Technical Report. Notwithstanding how certain terms have otherwise been defined in this AIF, terms defined in this Section have the meanings ascribed thereto in the Valtreixal Technical Report. This Section is qualified in its entirety by the full text of the Valtreixal Technical Report.

**Ownership**

In March 2013, Almonty announced the acquiring of an option for 51% interest in the Valtreixal tin- tungsten project for 1.4M Euros, plus an option to acquire the balance for after 24 months for 2M Euros. On December 21, 2016 Almonty exercised its option to acquire the remaining 49% interest in the project for a payment of €1.5 million, a reduction of €750,000 from the previously agreed installment payment plan resulting in a much-needed savings of capital on the acquisition of the remaining 49% interest in the project. Almonty have also created a wholly owned Spanish subsidiary Valtreixal Resources Spain S.L. ("**Valtreixal Resources**").

Valtreixal Resources have obtained investigation and exploitation permits for the area called C.E. (Concesion de Explotacion) No. 1352, Alto de Repilados, which is an old but valid exploitation licence. Valtreixal Resources have also obtained an exploration licence for P.I. (Permiso de Investigacion) No.1906 Valtreixal. These two licence areas cover the whole project area and known resources. Ongoing studies of the Valtreixal deposit have now been presented to the authorities (el Director Facultativo), in order for both areas to get C.E. (Concesion de Explotacion) status.

**Geology and Mineralisation**

It is generally considered that the northward movement of the ancient continent Gondwana, and its collision with Laurentia to form the super-continent Pangea, resulted in the Hercynian orogeny. This orogeny was pivotal in the formation of tin/tungsten deposits in this type of setting. As Gondwana advanced, overriding and pushing down, subducting the thin oceanic basaltic crust, there developed a geo-shear zone which dipped back under the continental frontal mountains. This geo-shear would have penetrated through the oceanic crust into the upper mantle where serpentinisation takes place. Serpentinite development is highly exothermic and may circulate accessory calcium and additional heat into the hydrothermal system. At greater depths the geo-shear may penetrate continental, denser cratonic rocks with entrained primordial undifferentiated crust having higher amounts of heavy elements.

The mineralisation at Valtreixal can be classified as a complex vein deposit. Much of the mineralisation, especially scheelite, is situated away from the quartz veins and appears to be stratabound in origin. Tin, in the form of cassiterite, occurs in and around the quartz veins. The linear mineralised zones appear, in a general sense, to be confined to specific stratigraphic intervals and there appears to be a degree of separation into tin and tungsten zones. Although a sedimentary, syngenitic origin for the tungsten mineralisation has been considered, it is unlikely to have eventuated at Valtreixal, because the scheelite hosting shale is of Ordovician age, 488 Ma to 444 Ma, and thus predates by a considerable margin the Hercynian, at 330 Ma to 230 Ma, tin/tungsten mineralisation episodes, with hydrothermal remobilisation and alteration of the mineralised schists.

The local Valtreixal stratigraphy in the Valtreixal area is dominated by 3 main formations, all of which broadly strike SW-NE, and dip at approximately 80<sup>o</sup> to the south-east:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Schists
 - Capas de los Montes. Cambrian/ordovician. Very stratified and transformed by regional metamorphism,
 with intercalated quartzites, and marked at the base by conglomerates. Thickness approximately
 1,000m.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Quartzites
 - Peña Goda/Culebra. Ordovician. Alternating with a variety of types and colours of
 intercalated schists. Thickness approximately 50-70m.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Slates
 – Pizarras de Luarca. Ordovician. Pelitic series of siliceous slates, phyllites and
 schists. This formation hosts most of the mineralisation at Valtreixal. High frequency of
 segregated quartz veins and schist bands sometimes rich in sulphur. Overall thickness approximately
 300-600m.

**Database and Resource Estimation**

Three types of samples are available for resource estimation: underground channel samples, surface trench samples and diamond drillhole samples. Underground channel samples have been taken in old underground galleries, either by ENADIMSA (pre-1986) or SIEMCALSA in the period from 2008- 2011. For the current work, only samples from two galleries have been included, owing to the status of survey data. ENADIMSA also completed 10 trench lines over 850m, producing 170 samples. They also drilled 3 diamond drillholes.

Data from 26 surface trenches, covering 3.7 km, have been included from SIEMCALSA's 2008-2011 exploration campaigns. Data from 18 surface trenches, covering 2.7 km, have been generated during Daytal's 2013 exploration campaign. One additional surface trench was also taken in an old surface stockpile.

SIEMCALSA 2008-11 exploration campaigns included 6 diamond drillholes, with a total length of 1,227m. Daytal's 2013-15 exploration campaign completed 59 diamond drillholes, with a total length of 10,716 m.

All of the data described above were collated by Daytal in an Excel database, and from there were imported into the CAE Datamine mining software system, for subsequent use in resource estimation. This resource estimation work stemmed from updated interpretation of mineralised structures by Daytal geologists. As well as logged lithological differences, cut-off grades of 0.07% Sn and 0.07% WO3 were used in the interpretation process. There are 4 main mineralised structures, extending over a strike length of 1.5 km.

These interpretations were used to create a 3D block model, based on a parent block size of 10m x 10m x 10m, with sub-blocks generated down to a resolution of 1m. In addition, sub-blocks were extrapolated a maximum distance of 50m from all selected samples, from mineralized intersections, so vein material could also be modelled outside the structurally modelled zones. Dynamic anisotropy was also applied, to allow for varying dip and strike orientations.

The samples selected inside the interpretations were converted into 2m composites, to which top-cut levels of 1.27% Sn and 1.1% WO3 were applied. These composited grades were used to estimate Sn and WO3 grades into the volumetric block model, primarily using an ordinary kriging method of interpolation. For validation purposes, alternative grades were also estimated using a nearest neighbour method. Density values were estimated from core density measurements.

The western part of the deposit, which has now been drilled off with a 30m drilling grid, has generally classified as indicated resources; the remainder of the deposit being classified as inferred.

**Mine Planning**

The current study is at a pre-feasibility ("**PFS**") level. The resource block model has been used as the basis for an open pit optimisation. Optimisation parameters were derived by reference to the Los Santos open pit operating parameters, which is also owned by Almonty, and operating with mining contractors. The parameters were modified to reflect that mining at the Valtreixal Mine will not require drilling and blasting. Processing parameters were derived from metallurgical test work on Valtreixal material. No physical constraints were applied during the optimisation process. Slope angles applied were derived from measured face angles measured in cuttings in and around the deposit area. Following on from the base case optimisation, additional optimisation runs with inferred material enabled demonstrate that additional exploration work will justify a much bigger open pit, advanced over a much longer strike direction.

The pit shell produced by the base case optimisation was used as a reference for the generation of a detailed pit design, which is cut into the west sloping existing hillside. A 10m wide haul road was put into the design, with the exit point at the extreme west end, at an elevation of approximately 870m. Access to the eastern, and higher, part of the pit will be gained from temporary access roads from the existing surface on higher benches. Berms of 4m have been incorporated into the design every 20m vertically. For the extended highwall of the pit up to 1015mRL on the southern and eastern sides of the pit, additional 14m safety berms were put in every 60m vertically.

The overall pit design is approximately 700m in length along strike, and 300m wide at its widest point. Grades of WO3 and Sn were used to create an WO3-equivalent grade, which was referenced against the breakeven cut-off grade of 0.08% WO3 to indicate ore or waste. For the pit design this gave approximately 2.5Mt of probable ore, with an overall strip ratio of 8.3:1. This pit envelope also contained 2.2Mt of inferred resources at economic grades.

Based on the reserves defined within the pit design, a life-of-mine plan was developed, aimed at producing 500Ktpa of ore, thus producing approximately a 5-year mine life. For scheduling purposes, the pit was divided into two principal pushbacks, approximately dividing the pit into western and eastern halves. Mining will start in the western (lower) pushback, and then as mining progresses deeper in this pushback, mining will also start on the upper benches of the eastern pushback. The general sequencing strategy is to excavate the pit areas from west to east, with dumping of mine waste from the active east advancing benches into the previously excavated western pit areas.

**Mineral Processing**

A review and conceptual study, for the Valtreixal deposit, was completed by Saint Barbara LLP ("**StB**"), in May 2014. This study included a review of mineralogical studies by SIEMCALSA, petrological studies from samples taken from 2013 diamond drill intersections and trenches, heavy liquid separation and QEMSCAN testing completed during 2012 by Wardell-Armstrong, as well as scheelite flotation testing by AGQ Labs during 2013. The AGQ testing was done on a sample of schist taken for the ENADIMSA gallery.

Based on the mineralogical and metallurgical information reviewed by StB, a conceptual plant design was developed to encompass crushing, grinding and gravity separation of scheelite and cassiterite into a bulk concentrate; removal of sulphides from the bulk concentrate by flotation; and drying and electrostatic separation of the bulk concentrate into separate scheelite and cassiterite concentrates. A metallurgical performance was estimated of 65% tin recovery, allowing a 50% Sn concentrate, and a 55% tungsten recovery, allowing a 65% WO3 concentrate,

Pilot plant studies have also been completed by the company ADVANCED MINERAL PROCESSING, SL and concentration tests were performed by the technical personnel working in mine-Fuenterroble Los Santos (Salamanca) laboratory. All of this testwork has been used by Daytal in the design of an ore beneficiation process for Valtreixal.

StB considered that the likely pit geometries, along with the natural topography, lend to an eventual dry disposal of tailings in initial mined out pits. A dry tailings treatment plant has therefore been incorporated into the overall mill design. Initial tailings disposal and waste rock dumps would take place, subject to negotiation, in the government owned forestry area immediately to the south of the open pits. Thereafter, StB propose the backfilling of worked out sections of the open pits. Future mining schedules will take this pit-backfilling requirement into account.

**Mineral Resource and Reserve Estimates**

The evaluation work was carried out and prepared in compliance with NI 43-101, and the mineral resources in this estimate were calculated using CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council May, 2014. The current in-situ resource estimation for indicated resources is shown in Table 7. There are no measured resources. Inferred resources are shown in Table 8.

Table 7 - Valtreixal – Indicated Mineral Resources

As of October 31, 2015

**In-Situ Resource Estimation**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **CLASS** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Tonnes**<br> **Kt** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Sn%** | &nbsp;&nbsp;&nbsp;&nbsp;**WO<sub>3</sub>%**  | &nbsp;&nbsp;**WO<sub>3</sub>_Eq%**  |
| ***Indicated*** | 2828 | 0.13 | 0.25 | 0.34 |

---

**Notes**

**. Cut-off applied of 0.05% WO<sub>3</sub>_Eq**

**. WO<sub>3</sub>_Eq = WO<sub>3</sub> + (Sn x 0.74), based on:**

---

| | | |
|:---|:---|:---|
|  | **<u>Price</u>** | **<u>Recovery</u>** |
| **WO<sub>3</sub>** | **$37,000/t** | **55%** |
| **Sn** | **$23,150/t** | **65%** |

---

**. Maximum extrapolation = 50m**

**. Density values estimated from measurements**

**. Resources shown are inclusive of reserves**

**Table 8 - Valtreixal – Inferred Mineral Resources**

As of October 31, 2015

---

| | | | | |
|:---|:---|:---|:---|:---|
| **CLASS** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Tonnes**<br> **Kt** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Sn%** | &nbsp;&nbsp;&nbsp;&nbsp;**WO<sub>3</sub>%** | &nbsp;&nbsp;**WO<sub>3</sub>_Eq%** |
| ***Inferred*** | 15419 | 0.12 | 0.08 | 0.17 |

---

**Notes**

**. Cut-off applied of 0.05% WO<sub>3</sub>_Eq**

Mineral Reserves have been determined, as part of the PFS study described in this report. These reserves are those indicated resources which are inside the current final pit design. These reserves are summarised in Table 9.

**Table 9 - Valtreixal – Mineral Reserves**

As of October 31, 2015

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Reserve Category** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Tonnes**<br> **Kt** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Sn%** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**WO<sub>3</sub>%**  | **WO<sub>3_</sub>Equiv%** |
| **Probable Reserves** | **2549** | **0.12** | **0.25** | **0.34** |

---

**Notes**

**. WO<sub>3</sub>_Eq = WO<sub>3</sub> + (Sn x 0.74), based on:**

---

| | | |
|:---|:---|:---|
|  | **<u>Price</u>** | **<u>Recovery</u>** |
| **WO<sub>3</sub>** | **$37,000/t** | **55%** |
| **Sn** | **$23,150/t** | **65%** |

---

**. Cut-off applied to WO3_Equiv**

**Breakeven Cut-off = 0.08 WO<sub>3</sub>**

**. Mining factors applied:**

**Dilution = 5%**

**Losses = 5%**

**. Pit design also contains 2.2 Mt of inferred resources at economic grade**.

In the opinion of the QP, the following conclusions have been reached:

**Conclusions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Valtreixal Mine is a viable open project. An open pit has been designed with 2.5Mt of ore, which suggest a 5-year mine life, based
 on a mill throughput of 500Ktpa. An economic analysis indicates an NPV (at a 10% discount rate) of $12.5M, and an internal rate of
 return of 21%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. There
 are significant amounts of inferred resources, which suggest significant pit expansion both with depth and laterally along strike.
 Pit optimisations, with inferred resources also activated, suggest over 10Mt of potential ore.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Exploration
 drilling completed by Daytal over the last 3 years have confirmed and extended the originally previously delineated resource base.
 In particular, the occurrence of scheelite mineralisation outside of quartz veins, has provided much wider mineralised zones than
 were previously interpreted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The
 current open pit design is one coherent excavation. It appears that with more drilling to enhance the resource category of current
 inferred resources, the resultant pit elongation along strike will offer a very good opportunity for sequential pit extraction from
 west to east, with concurrent backfilling of excavated volumes with mined waste.

**SANGDONG SUMMARY**

**Introduction and Overview**

The Sangdong Technical Report was prepared to provide a technical report compliant with the provisions of NI 43-101 and comprises a review and summary of a resource and reserve estimation for the Sangdong Mine as of the end of July 2016. The Sangdong Mine is considered as a potential underground operation, and is located in the Gangwon Region of South Korea. Previous underground mining at the Sangdong Mine place at various times since the original discovery in 1916. The last main operation of the Sangdong Mine was from 1952 to closure in 1992. The principal potential products are tungsten and molybdenum.

The Sangdong Technical Report was prepared by Adam Wheeler, at the request of Mr. N. Alves, Director of Mine Development, for Almonty. Assistance and technical detail were supplied by the technical personnel of Sangdong Mining Corp. Adam Wheeler visited the Sangdong Mine on August 24- 26, 2015 along with other Almonty technical personnel.

A Feasibility Study was completed for the Sangdong Mine by Adam Wheeler and Andrew Wells, Partner, Saint Barbara LLP in January 2016.

The following is a direct reproduction of the summary section of the Sangdong Technical Report. Notwithstanding how certain terms have otherwise been defined in this AIF, terms defined in this Section have the meanings ascribed thereto in the Sangdong Technical Report. This Section is qualified in its entirety by the full text of the Sangdong Technical Report.

The property is under advanced development, with construction activities including underground mine development and the installation of processing facilities. As per current estimate, the mine is expected to commence production in 2025, enhancing Almonty's ability to serve global markets.

The Sangdong underground mine began ore extraction in September 2024. Two tunnels have been completed to facilitate access to high-grade tungsten ore using state-of-the-art mining methods.

During the second half of 2024 and the first quarter of 2025, construction of key surface facilities progressed significantly, including:

● Building A (Crushing Tower)

● Building B (Ore Shed)

● Building C (Grinding Area)

● Building D (Flotation Area)

**Ownership**

Almonty acquired a 100% ownership interest in Woulfe on September 10, 2015 by way of a Plan of Arrangement. Woulfe, through its wholly owned subsidiary, AKT, owns a 100% interest in the Sangdong mine.

**Geology and Mineralisation**

The Korean Peninsula is situated on the eastern margin of the North China– Korea Platform, a craton composed of three blocks of Archean age, the Nangrim- Pyeongnam Block and the Gyeonggi and Yeongnam Massifs that are separated by the northeast-trending Imjingang and Okcheon mobile belts of Phanerozoic age. The Property is located within the Okcheon Belt.

The Sangdong Mine is situated on the southern limb of the east-west orientated Triassic age Hambaek Syncline. Cambro-Ordovician limestone, shale, and quartzite of the Chosun System unconformably overlie the Pre-Cambrian Taebaeksan schist and gneiss.

The tungsten mineralisation of the Sangdong deposit is contained in several tabular, bedding- conformable skarns in the Myobong Shale; these skarns have been interpreted as comprising carbonate-bearing horizons that were altered and mineralised by fluids ascending from the underlying Sangdong Granite. From uppermost to lowermost, these horizons are termed the Hangingwall, Main, and Footwall horizons. Calc-silicate layers from 0.50-1.0m in thickness have developed on the upper and lower contacts of the Main and Footwall horizons.

The Hangingwall horizon is located near the upper contact of the Myobong shale and varies in thickness from approximately 5.0-30.0m because of the irregular boundary of the shale with the overlying Pungchon Limestone. This zone has a strike length of about 600m and a down-dip extent of about 800m. Above the most highly-altered portion of the Main horizon, the Hangingwall horizon is not tabular, but extends steeply and irregularly into the overlying limestone. The base of the Hangingwall horizon is approximately 14m above the upper contact of the Main horizon.

The Main horizon strikes about 100° and dips northerly between 15° and 30°. The strike length is in excess of 1,300m and thickness varies from 5.0 – 6.0m. Alteration (skarnification) within the Main horizon forms three concentric, roughly circular zones.

The Footwall horizons comprise multiple layers: Footwall Zone 1 ("**F1**") normally occurs 1m below the Main horizon and is approximately 2m thick; Footwall Zones 2 and 3 ("**F2**", "**F3**") are situated approximately 35.0 to 40.0m below the Main horizon and are less than 1m thick. Further Footwall Zones have been identified beyond F3 and are collectively referred to as F4.

The Oriental Minerals ownership period started in 2006. The total number of drillholes (surface and underground) and total metres drilled at Sangdong before and after 2006 comprise 870/84,014m and 507/42,730m respectively.

**Database and Resource Estimation**

The sample database, in the form of an Excel spreadsheet, is comprised of data from all available surface and underground drillholes, over recent and historical drilling campaigns. This database has separate tables for drillhole collars, survey data, assay data, RQD, lithology data, drillhole recovery, geotechnical logging, density measurements, structural orientation and mineralised intersections.

The resultant spacing of samples with these different historical campaigns has ended up being fairly sporadic, with sections spaced at distances from 30m-100m. Most of the surface holes are vertical, as are the very deep underground holes. Most of the underground holes are angled up or down so as to give good intersections with the overall mineralised structures, which generally dip at approximately 25<sup>o</sup>.

The database also included physical string and wireframe data, for previous interpretations, mined- out limits, surface and underground topography. This data was also augmented by information from the different resource estimation studies over the last four years: primarily from the Tetra-Tech and AMC consultancy companies.

An updated mineral resource estimation was completed, during August-December 2015, by the Qualified Person. This estimation employed a three-dimensional block modelling approach, using CAE Datamine software. Two main resource blocks models were developed. The relatively thick hanging wall ("**HW**") zone was modelled using a conventional block model structure. All of the other skarn zones were modelled using the initial generation of 3D digital terrain models for the zone centre- points, onto which thicknesses and grade-accumulations were estimated, using ordinary kriging. This enabled a 3D block model of all these zones to be developed – with columnar sub-blocks representing the vertical in-situ thickness of the mineralised skarn bodies. Density values were also estimated from sample measurements.

The models generated were derived from the interpretation of skarn zones, as generated by SMC geologists, with additional intersection checks and refinements by the QP. The defined skarn intersections have been based on a lithological skarn identification, as well as 0.1% WO3 cut-off grade. Additional mined-out limits for the principal skarn structures were applied, as well as a 50m remnant surface pillar below the surface topography.

In the resource estimation, a minimum thickness of 2.2m was applied, such that thinner blocks were diluted to 2.2m.

Resource class categories were set, such that indicated resources only used assay data from drillholes after 2006, along with drilling grid criteria.

**Mine Planning**

The majority of the ore zones to be mined are relatively shallow dipping, with dips between 20° and 30°, so ore will not naturally flow by gravity on the footwall. In the A-Z Feasibility Study, the methods proposed were inclined panel mining, to be applied in thick orebody areas, with panels that would be mined in different sections; and up-dip panel mining, which would be applied in narrow areas with slushers and hand-held drilling equipment.

For this present study, it was decided not to rely on hand-held drilling equipment and slushers. Instead, methods applied would be planned for the use of mechanized mobile diesel-powered mining equipment in all areas. Based on this requirement and the latest understanding of the orebody geometry and mining areas, and evaluation of the resources, including in-situ thickness variations, it was decided to apply two proposed mining methods, as summarised below:

&nbsp;&nbsp;&nbsp;&nbsp;● Mechanized
 Inclined Panel mining ()"**MIP**") – areas where the thickness less than 3 metres.

&nbsp;&nbsp;&nbsp;&nbsp;● Cut-and-Fill
 ()"**CAF**") – for areas where the thickness is greater than 3 metres.

A mine plan was developed, based on the application of these stoping methods. Stope blocks were laid out as plan perimeters, bounded by horizontal parts on each level, where the football contact of each zone cut through level's reference elevation. In general, most stope blocks were limited to a maximum of 100m along strike. Stope blocks were only laid out in those parts of each zone predominantly demarcated as containing indicated resources. Any inferred resource blocks within stope outlines were treated as planned dilution with mineralized waste, with any grades greater than 0.2% WO3 set to 0.2%.

Mining will use almost exclusively mobile diesel-powered equipment. All newly stoped areas will be backfilled with paste backfill.

In the evaluation of stope blocks, additional unplanned mining factors of 5% dilution and 5% losses were also applied. Maps of maximum span distances have previously been prepared in a geotechnical study by Turner Mining and Geotechnical Pty Ltd in 2014. These maximum span properties were superimposed onto the laid-out stopes in each skarn zone, so that higher cut-offs were applied to those zones requiring higher support costs. The applicable cut-offs varied from 0.23% - 0.36% WO3.

Additional level development has been laid out so as to enable access to the identified reserve areas, and to allow truck haulage from these new stoping areas. Main access to the underground mine will use the old entry portals on the Sangdong and Taebak levels as well as a new portal on the -1 level, that will enable ore haulage out from the mine directly into the valley, on approximately the same elevation as the intended mill position.

**Mineral Processing**

Processing will utilize crushing, grinding (rod and ball mills) and flotation for scheelite concentration. The processing plant will treat theROM ore from underground at a nominal feed rate of 1,920 tpd. A new processing plant will be constructed, based on the valley, to the south of the Sangdong adit entrance.

A marketable tungsten concentrate grade of 65% WO3 will be produced. Processing plant recoveries, based on metallurgical testwork, are estimated to average 81%. The main process steps for treating the Sangdong ore are primary, secondary and tertiary crushing and stockpiling; grinding; flotation divided into two (2) sub-circuits (sulphide flotation and tungsten flotation); thickening; filtration and packaging section; a waste water treatment facility; and services section

The processing plant will require a manpower complement of 36 personnel of which 8 are management, technical staff and supervision.

The plant design will encompass crushing, grinding and flotation for scheelite concentration. In the future, test work will also investigate the recovery of molybdenum into a sulphide flotation concentrate, ahead of the scheelite flotation circuit.

The mine is under advanced development, with ore extraction initiated in September 2024 and commercial production expected by mid-2025. Once operational, it is projected to process 640,000 tons of ore annually at an average WO₃ head grade of 0.45%.

**Infrastructure**

Existing infrastructure to be used includes the access road to site; site roads; powerline and stepdown substation, potable water supply and communications and internet service. It also includes some old KTMC buildings that will be reused and the KTMC slope support at the zone of the plant and water treatment plant.

To return the mine to operation the existing Sangdong infrastructure will be reconfigured and supplemented by new facilities as required. To accommodate the new waste storage facility, the existing buildings at the Sangdong portal level will be demolished to allow for placement of waste from mine development. New site infrastructure will be built in the valley, on the footprint of old KTMC installations. It will include a new mine/administration building, assay laboratory, warehouse, maintenance shop, recreational facilities for employees, fuel storage, potable and process water supply and water and sewage treatment facilities. The mine backfill plant will be placed at Sangdong Terrace.

The surface services and general administration manpower complement will total 42 personnel.

**Mineral Resource and Reserve Estimates**

The evaluation work was carried out and prepared in compliance with NI 43-101, and the mineral resources in this estimate were calculated using CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council May, 2014. The current in-situ resource estimation is shown in Table 1-1.

**Table 0-3. Sangdong – Mineral Resources**

**As of 31<sup>st</sup> July, 2016**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **WO<sub>3</sub>**<br> **Cut-Off** | **Resource**<br> **Class** | **Tonnes**<br> **Kt** | **WO<sub>3</sub>%** | **MoS<sub>2</sub>%** |
| **0.15%** | **Indicated** | 8029 | 0.51 | 0.06 |
|  | **Inferred** | 50686 | 0.43 | 0.05 |
| **0.20%** | **Indicated** | 7864 | 0.51 | 0.06 |
|  | **Inferred** | 47630 | 0.44 | 0.05 |
| **0.30%** | **Indicated** | 7316 | 0.53 | 0.06 |
|  | **Inferred** | 36466 | 0.50 | 0.06 |

---

**Notes**

**. Bed models diluted to a minimum thickness of 2.2m**

**. Resources shown are inclusive of reserves**

**. 50m surface pillar material removed**

**. Indicated HW material based on all samples, with a maximum search of 35m x 50m (along-strike x down-dip)**

**. Indicated material in all other beds are based on only PO-P6 samples, with a maximum search of 50m, and sample grid required**

**. Inferred material based on all samples, up to a maximum search of :**

**105m x 150m in HW**

**100m x 100m in all other beds**

These resources have been used in the development of a mine plan. To start the mine operations, the blocked-out stopes have enabled a reserve evaluation to be made, as summarised in the table below.

**Table 0-4. Sangdong – Mineral Reserves**

**As of 31<sup>st</sup> July, 2016**

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;***Probable Reserves*** | &nbsp;&nbsp;***Probable Reserves*** |
|  | &nbsp;&nbsp;&nbsp;&nbsp;**Tonnes**<br> **Kt** | &nbsp;&nbsp;&nbsp;&nbsp;**WO<sub>3</sub>%** |
| **HW** | 3759 | 0.47 |
| **MAIN/F1** | 1328 | 0.34 |
| **F2** | 1495 | 0.48 |
| **F3** | 1249 | 0.46 |
| **F4** | 65 | 0.33 |
| **TOTAL** | **7896** | **0.45** |

---

**Notes**

**. All reserves have a probable category**

**. WO<sub>3</sub> Cut-offs applied:**

**0.36% Max Spans <=3m**

**0.28% Max Spans >3m <=6m**

**0.23% Max Spans +6m**

**. Level restrictions:**

**. Down to -1 level (633m) for the non-HW zones**

**. Mining Factors applied**

**. Minimum thickness = 2.2m**

**. Unplanned dilution = 5%**

**. Unplanned losses = 5%**

**Conclusions**

The following conclusions have been reached:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Phase 7 drilling completed in 2016, which was focussed on the HW zone, has helped to verify the old KTMC data available in the HW
 zone. This has helped to support the use of both KTMC and Phase 0 – Phase 7 drillhole data for the estimation of indicated
 HW resources.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The
 updated Feasibility Study calculations have identified Probable Reserves of 7.9 Mt, which with an assumed mill capacity of 640 ktpa,
 will sustain a mining operation for approximately 12 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based
 on the forecast operating parameters and capital and operating costs estimates for the Sangdong project, the returns from the project
 are very positive and the project economics are extremely
robust to potential reasonably expected variances from the base case assumptions. The mine will employ 170 people, including mine contractors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The
 very large inferred resource base represents a very large source of potential future reserves, as more exploration drilling can be
 completed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. There
 are more areas of the deposit down-dip and north-east which have not been currently evaluated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Most
 of the deposit has not yet been delineated off at depth.

**DIVIDENDS**

The Company has not paid any dividends on the Common Shares for the past three most recently completed fiscal years. Any future determination to pay dividends will be at the discretion of the Board and will depend upon the Company's results of operations, capital requirements and other relevant factors.

**DESCRIPTION OF SHARE CAPITAL**

**Authorized and Issued Share Capital**

Almonty is authorized to issue an unlimited number of Common Shares without par value. Holders of the Common Shares are entitled to receive notice of and to attend all meetings of the shareholders of the Company. Each Common Share carries one vote. In the event of the liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, or any other distribution of its assets among its shareholders for the purpose of winding up its affairs, the holders of the Common Shares are entitled to receive the remaining property and assets of the Company on a pro rata basis.

As of the date of this AIF, the Company had 280,674,131 Common Shares issued and outstanding.

In addition to the Common Shares outstanding, as at the date of this AIF, the Company has 22,827,000 incentive stock options outstanding, 38,383,295 share purchase warrants outstanding, 3,850,000 restricted share units outstanding and common shares issuable on the conversion of convertible debentures as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 4,137,931
 Common Shares issuable on the conversion of a $6,000,000 convertible debenture at $1.45 per Common Share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 3,184713
 Common Shares issuable on the conversion of a $2,000,000 convertible debenture at $0.628 per Common Share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) 4,000,000
 Common Shares issuable on the conversion of a US$2,000,000 convertible debenture at US$0.50 per Common Share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) 1,176,470Common
 Shares issuable on the conversion of a US$1,000,000 convertible debenture at US$0.85 per Common Share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) 142,171
 Common Shares issuable on the conversion of a €100,000 convertible debenture at $1.05 per Common Share (based on an exchange
 ratio of CAD$1.495 for each €1.00);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) 180,723
 Common Shares issuable on the conversion of US$150,000 convertible debenture at US$0.83 per Common Share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) 3,028,780
 Common Shares issuable on the conversion of US$1,500,000 convertible debenture plus accrued interest thereon at US$0.50 per Common
 Share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) 1,190,476
 Common Shares issuable on the conversion of US$1,000,000 convertible debenture at US$0.84 per Common Share; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 22,571,428
 Common Shares issuable on the conversion of the principal amount of a €7,900,000
convertible debenture at €0.35 per Common Share plus up to 507,857 Common Shares on the conversion of interest accrued thereon at
a price per Common Share equal to the greater of (i) €0.35 per Common Share, and (ii) the volume weighted average price of the Common
Shares on the TSX, or such other stock exchange where the majority of the trading volume and value of the Common Shares occurs, for the
five trading days immediately preceding the conversion, converted into Euros at the noon rate published by the Bank of Canada.

**MARKET FOR SECURITIES**

The Common Shares are publicly traded on the TSX and the ASX under the symbol "AII". Trading of the Common Share on the TSX commenced on June 1, 2018. Prior to trading on the TSX, the Company traded on the TSXV from June 30, 2010 until May 31, 2018. The following table sets forth the high and low sale prices and volumes traded on the TSX as reported by such exchange for the fiscal year ended December 31, 2024:

---

| | | | |
|:---|:---|:---|:---|
| Month | High ($) | Low ($) | Volume |
| January 2024 | 0.72 | 0.54 | 1310077 |
| February 2024 | 0.70 | 0.58 | 1876836 |
| March 2024 | 0.63 | 0.58 | 1572897 |
| April 2024 | 0.67 | 0.58 | 2232855 |
| May 2024 | 0.74 | 0.62 | 4892287 |
| June 2024 | 0.70 | 0.59 | 1944013 |
| July 2024 | 0.69 | 0.61 | 1457702 |
| August 2024 | 0.83 | 0.63 | 2680356 |
| September 2024 | 0.85 | 0.73 | 2048072 |
| October 2024 | 0.97 | 0.76 | 2535974 |
| November 2024 | 0.93 | 0.79 | 2492187 |
| December 2024 | 0.92 | 0.84 | 4197468 |

---

**Prior Sales**

The following table summarizes details of the securities issued by the Company during the fiscal year ended December 31, 2024:

---

| | | | |
|:---|:---|:---|:---|
| Date | Description of Transaction | Price per Security | Number and Type of Securities Issued |
| January 26, 2024 | Conversion of debt | $0.90 | 10,249,605 Common Shares |
| January 26, 2024 | Debt Settlement | $0.90 | 79,646 Common Shares |
| February 16,<br> 2024 | Debt Settlement | $0.54 | 2,583,316 Common Shares |
| March 15, 2024 | Private Placement | $0.55 | 2,668,000 Common Shares |
| March 15, 2024 | Private Placement | $0.74 | 2,668,000 Warrants |
| March 27, 2024 | Private Placement | A$0.62 | 1,525,000 Common Shares underlying Chess Depositary Interests |
| March 27, 2024 | Private Placement | A$0.84 | 1,525,000 Options to purchase Common Shares underlying Chess Depositary Interests |
| March 28, 2024 | Private Placement | $0.55 | 1,367,863 Common Shares |
| March 28, 2024 | Private Placement | $0.74 | 1,367,863 Warrants |
| April 19, 2024 | Private Placement | $0.55 | 227,400 Common Shares |
| April 19, 2024 | Private Placement | $0.74 | 227,400 Warrants |
| May 16, 2024 | Private Placement | A$0.62 | 3,000,000 Common Shares underlying Chess Depositary Interests |
| May 16, 2024 | Private Placement | A$0.84 | 3,000,000 Options to purchase Common Shares underlying Chess Depositary Interests |

---

---

| | | | |
|:---|:---|:---|:---|
| May 23, 2024 | Private Placement | $0.55 | 1,090,909 Common Shares |
| May 23, 2024 | Private Placement | $0.74 | 1,090,909 Warrants |
| May 31, 2024 | Private Placement | A$0.62 | 1,926,613 Common Shares underlying Chess Depositary Interests |
| May 31, 2024 | Private Placement | A$0.84 | 1,926,613 Options to purchase Common Shares underlying Chess Depositary Interests |
| December 23,<br> 2024 | Private Placement | $0.82 | 2,000,000 Common Shares |
| December 23,<br> 2024 | Private Placement | $1.14 | 2,000,000 Warrants |
| December 23,<br> 2024 | Debt Settlement | $0.7683 | 230,469 Common Shares |
| December 30,<br> 2024 | Private Placement | A$0.90 | 4,583,334 Common Shares underlying Chess Depositary Interests |
| December 30,<br> 2024 | Private Placement | A$1.25 | 4,583,334 Options to purchase Common Shares underlying Chess Depositary Interests |

---

**DIRECTORS AND OFFICERS**

**Name, Occupation and Security Holdings**

The following table sets out, as at the date of this AIF, for each of the directors and executive officers of the Company, the person's name, province and country of residence, their respective positions and offices held, the date on which the person became a director, his or her principal occupation and previously held positions for the last five years, and the number and percentage of Common Shares beneficially owned, controlled or directed, directly or indirectly (based on information furnished by the directors and executive officers and from insider reports available under the Company's SEDI profile at <u>www.sedi.com</u>).

---

| | |
|:---|:---|
| **Name, residence, office(s) held and date first became a director** | **Current Principal occupation, business or employment and for last five years, and education** |
| **Lewis Black**<br> New York, USA<br> Chairman, President, Chief Executive Officer and Director<br> Director since September 23, 2011 | Mr. Black is currently the Chairman, President and Chief Executive Officer of the Company. He is also currently a Partner of Almonty Partners LLC, a privately held company specializing in tungsten mining investments.<br> Mr. Black previously served as Chairman and Chief Executive Officer of Primary Metals Inc., a tungsten mining company formerly listed on the Exchange, from 2005 to 2007. Prior to that he was head of sales and marketing for SC Mining Tungsten Thailand. Mr. Black holds a B.A. (Honours) from Manchester University and is a former Vice President of the International Tungsten Industry Association.<br>25944670<sup>(1)(2)</sup> |
| **Daniel D'Amato**<br> Paris, France<br> Director | Mr. D'Amato is currently a Partner of Almonty Partners LLC, a privately-held company specializing in tungsten mining investments. He has held this position since 2005.17301275<sup>(1) (2)</sup> |
| Compensation and Corporate Governance Committee<br> Director since September 23, 2011 | Mr. D'Amato previously served on the board of directors of Primary Metals Inc., a tungsten mining company formerly listed on the Exchange, from 2005 to 2007. He began his career on Wall Street with Bear Stearns where over nearly a decade he became Managing Director. Mr. D'Amato holds a B.Sc. from Siena College and holds several securities and insurance licenses. |

---

---

| | | |
|:---|:---|:---|
| **Name, residence, office(s) held and date first became a director** | **Current Principal occupation, business or employment and for last five years, and education** | **Shares beneficially owned, or controlled or directed, directly**<br> **or indirectly** |
| **Mark Trachuk**<br> Toronto, Ontario, Canada Lead Director<br> Audit Committee (Chair) Compensation and Corporate Governance Committee (Chair)<br> Director since September 23, 2011 | Mr. Trachuk currently serves as Counsel at Norton Rose Fulbright, a leading global law firm, where he practices corporate and securities law with an emphasis on mergers, acquisitions and strategic alliances. Mr.<br> Trachuk is a former General Counsel and director of Entertainment One, Ltd. (LSE:ETO), a global entertainment studio that was a constituent member of the FTSE 250. Prior to joining Entertainment One, he was a Senior Partner in the Business Law Group at Osler, Hoskin & Harcourt LLP, a Canadian-based law firm, where he practised from 1989 to 2018. Mr. Trachuk holds a B.A. in Economics from Carleton University, a<br> J.D. from the University of Ottawa and an LL.M. in Corporate Law from the London School of Economics. Mr. Trachuk also holds the ICD.D designation from the Institute of Corporate Directors through the University of Toronto – Rotman School of Management. Mr. Trachuk is called to the bar in the provinces of Ontario and British Columbia and is a qualified solicitor in England and Wales. | &nbsp;&nbsp;1400000 |
| **Dr. Thomas Gutschlag**<br> Heidelberg, Germany Director<br> Audit Committee, Compensation and Corporate Governance Committee<br> Director since September 15, 2015 | Dr. Gutschlag is a former Chairman and Chief Executive Officer of DRAG, a public company listed on the Frankfurt Stock Exchange which identifies, develops and divests attractive resource projects in North America, Australia and Europe, with a focus is on the development of oil and gas opportunities within the United States, as well as metals such as gold, copper, rare earth elements, tungsten and tin. Dr. Gutschlag co-founded DRAG in 2006 and has been its Chief Executive Officer until June 2022, and, prior thereto, its Chief Financial Officer. | &nbsp;&nbsp;1007500 |
|  | Dr. Gutschlag is a qualified economist with a degree in economics from the University of Heidelberg and a doctorate from the University of Mannheim. |  |

---

---

| | |
|:---|:---|
| **Name, residence, office(s) held and date first became a director** | &nbsp;&nbsp;&nbsp;&nbsp;**Current Principal occupation, business or employment and for last five years, and education** |
| **Andrew Frazer**<br> Dalkeith, WA Australia<br>Director since May 28, 2021 | Mr. Frazer is currently a representative of RM Corporate Finance Pty Ltd. Mr. Frazer previously held positions as a consultant at Azure Capital, a stockbroker with Hartley Poynton, Patersons Securities and Morgan Stanley. Mr. Frazer graduated from the University of Western Australia with a Bachelor of Commerce – Honours, Bachelor of Jurisprudence and a Bachelor of Laws. Mr. Frazer also obtained his CFA<br> Charter, along with a Diploma from the Securities Institute of the Australian Securities Exchange.<br> &nbsp;&nbsp;Nil |
| **David Hanick**<br> Toronto, ON Canada<br>Director since June 26, 2023 | Mr. Hanick currently serves as the Chief Legal Officer and is a member of the Investment Committee at Starlight Investments, a leading global real estate investment and asset management firm. Prior to joining Starlight Investments, David was a corporate partner and co-head of the Mining and Natural Resources Group in the Toronto office of Osler, Hoskin & Harcourt LLP where he focused on public and private mergers and acquisitions as well as capital markets transactions acting for issuers, underwriters and private equity firms. He has more than 20 years of legal, capital markets, mergers and acquisitions and corporate governance expertise. Mr. Hanick currently serves on the board of directors of Process Fusion Inc., a software and cloud computing organization and as corporate secretary for each of Starlight Western Canada Multi-Family (No. 2) Fund, Starlight U.S. Multi-Family (No. 2) Core Plus Fund (TSXV: SCPT.A / SCPT.U) and Starlight U.S. Residential Fund (TSXV: SURF.A / SURF.U). Mr. Hanick was awarded the 2020 and 2021 Law Department Leader of the Year Excellence Award by Canada Law Awards and was a finalist for the 2021 Canadian General Counsel Awards in the Business Achievement category. Mr. Hanick is a member of the Law Society of Upper Canada and holds a joint Master of Business Administration from the Schulich School of Business and Bachelor of Laws from Osgoode Hall Law School. &nbsp;&nbsp;Nil |

---

---

| | | |
|:---|:---|:---|
| <br> **Name, residence, office(s) held and date first became a director** | **Current Principal occupation, business or employment and for last five years, and education** | **Shares beneficially owned, or controlled or directed, directly**<br> **or indirectly** |
| **Gustave F. Perna**<br> Crane Hill, AL United States<br>Director since March 20, 2025 | General Perna retired from the United States Army in July 2021 as the Chief Operating Officer of Operation Warp Speed, the<br> U.S. national initiative focused on the rapid research, development, production and distribution of vaccines and therapeutics to combat COVID-19. From 2016 to 2020, General Perna served as Commander of the U.S. Army Materiel (AMC) Command, comprising over 190,000 Soldiers, civilians, and contractors. General Perna has held several high- ranking positions during his military career, including serving as Deputy Chief of Staff, G-4 (SVP for Logistics) for the Department of the Army (2014–2016), Commanding General (CEO) of the Joint Munitions Command (2010–2012), and Director, J-4, United States Forces – Iraq (2009–2010), overseeing multinational logistics during Operation Iraqi Freedom/New Dawn. He also led as Commanding General (CEO) of the Defense Supply Center – Philadelphia within the Defense Logistics Agency (2008–2009). General Perna holds an Associate Degree in Business Administration from Valley Forge Military Academy and a Bachelor Degree in Business Management from the University of Maryland and was awarded a Master's Degree in Logistics Management from the Florida Institute of Technology**.** | Nil |
| **Mark Gelmon** Vancouver, BC Canada<br>Chief Financial Officer since March 14, 2017 | Mr. Gelmon is the Chief Financial Officer of the Company. Prior to that, he was the Chief Financial Officer of the Company's subsidiary, Woulfe Mining Corp. from early 2010 until September 2015. Mr. Gelmon is a partner of iO Corporate Services Ltd, a company which provides corporate and accounting services to various publicly-traded Canadian companies. | 10000 |
|  | Mr. Gelmon obtained his Bachelor of Arts degree at the University of British Columbia and subsequently attained his CPA, CA designation in 1995 and is a member of the Chartered Professional Accountants of B.C. |  |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Almonty
 Partners LLC, a privately-held company specializing in tungsten mining investments, holds 13,893,920 Common Shares or approximately
 5.08% of the issued and outstanding Common Shares as of the date hereof. Lewis Black and Daniel D'Amato are each partners of
 Almonty Partners LLC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Daniel
 D'Amato individually owns an additional 3,407,355 Common Shares, and Lewis Black individually owns 12,050,750 Common Shares

Each of Almonty's directors hold office until the end of the next annual meeting of shareholders or until his successor is duly elected or appointed, unless his office earlier becomes vacant by resignation, death, removal or other cause.

**Board and Executive Officer Aggregate Ownership of Common Shares**

Our directors and executive officers, as a group, beneficially own, or control or direct, directly or indirectly, a total of 31,769,525 Common Shares, representing 11.64% of the total outstanding Common Shares as of the date of this AIF.

**AUDIT COMMITTEE**

 ****

***Audit Committee Charter***

The audit committee of the Board (the "**Audit Committee**") operates under a written charter that outlines its role and objectives, composition, meeting requirements, and duties and responsibilities. The full text of the charter is set out in Schedule A of this AIF.

 ****

***Composition of the Audit Committee***

The Audit Committee is currently comprised of Mark Trachuk (Chair), Dr. Thomas Gutschlag and David Hanick, all of whom are considered independent as such term is defined in National Instrument 52-110 *– Audit Committees* ("**NI 52-110**").

 ****

***Relevant Education and Experience***

All three current members of the Audit Committee are "financially literate", as that term is defined in NI 52-110. Each has the ability to read and understand financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the Company's financial statements.

For a description regarding the relevant education and experience of Mr. Trachuk, Dr. Gutschlag and David Hanick, see the table under "*Directors and Officers – Name, Occupation and Security Holdings*", above.

As a result of their education and experience, each current member of the Audit Committee has the education or experience necessary to provide each with:

● an understanding of the accounting principles used by the Company to prepare its financial statements;

● the ability to assess the general application of such accounting principles in connection with the accounting for estimates, accruals and reserves;

● experience preparing, auditing, analyzing or evaluating financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the Company's financial statements, or experience actively supervising one or more individuals engaged in such activities; and

● an understanding of internal controls and procedures for financial reporting.

***Pre-Approval Policies and Procedures***

The Audit Committee's charter requires it to pre-approve all non-audit services to be provided to the Company by its external auditors. However, the Audit Committee has not adopted any specific procedures for assessing whether or not such pre-approval should be granted in any particular case. The Audit Committee does, however, consider on an *ad hoc* basis the potential impact of any such non-audit services on the independence of the Company's external auditors in light of the circumstances as they exist at that time.

 ****

***External Auditor's Fees***

As set out in the Audit Committee's charter (attached as Schedule A to this AIF), the Audit Committee is responsible for pre-approving all non-audit services to be provided to the Company by its external auditor and has pre-approved the non-audit services as set out below.

The table below sets out the aggregate fees billed by the Company's external auditors for the fiscal year ended December 31, 2024:

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,**<br> **2024**<br> **($)** | **Year ended December 31,**<br> **2023**<br> **($)** |
| Audit Fees<sup>(1)</sup> | 337500 | 330000 |
| Audit-Related Fees<sup>(2)</sup> | Nil | Nil |
| Tax Fees<sup>(3)</sup> | 32000 | 26000 |
| All Other Fees<sup>(4)</sup> | - | - |
| **Total** | **369500** | **356000** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) "Audit
 Fees" include fees necessary to perform the annual audit and quarterly reviews of the Company's financial statements.
 Audit Fees include fees for review of tax provisions and for accounting consultations on matters reflected in the financial statements.
 Audit Fees also include audit or other attest services required by legislation or regulation, such as comfort letters, consents,
 reviews of securities filings and statutory audits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) "Audit-Related
 Fees" include services that are traditionally performed by the auditor. These audit-related services include employee benefit
 audits, due diligence assistance, accounting consultations on proposed transactions, internal control reviews and audit or attest
 services not required by legislation or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) "Tax
 Fees" include fees for all tax services other than those included in "Audit Fees" and "Audit-Related Fees".
 This category includes fees for tax compliance, tax planning and tax advice. Tax planning and tax advice includes assistance with
 tax audits and appeals, tax advice related to mergers and acquisitions, and requests for rulings or technical advice from tax authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) "All
 Other Fees" includes all other non-audit services.

**CONFLICTS OF INTEREST**

Certain directors and officers of the Company are, and may continue to be, involved in the mining and mineral business through their direct and indirect participation in corporations, partnerships, or joint ventures, which are potential competitors of the Company. Situations may arise in connection with potential acquisitions in investments where the other interests of these directors and officers may conflict with the interests of the Company. Directors and officers of the Company with conflicts of interest will be subject to and will follow the procedures set out in applicable corporate and securities legislation, regulations, rules and policies.

**LEGAL PROCEEDINGS**

The Company is involved in certain claims and litigation arising out of the ordinary course and conduct of business. Management assesses such claims and, if considered likely to result in a loss and, when the amount of the loss is quantifiable, provisions for loss are made, based on management's assessment of the most likely outcome. Management does not provide claims for which the outcome is not determinable or claims where the amount of the loss cannot be reasonably estimated. Any settlements or awards under such claims are provided for when reasonably determinable. The Company is not currently a party to, or has any of its property as the subject of, legal proceedings which would be material to the Company's financial condition or results of operations.

**INTERESTS OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS**

Except as noted below, no director or executive officer of the Company, or any person or company that beneficially owns or controls or directs, directly or indirectly, more than 10% of the Common Shares had any material interest, direct or indirect, in any transaction within the three most recently completed fiscal years or during the current fiscal year that has materially affected or is reasonably expected to materially affect the Company other than the following:

Subsequent to the financial year ended December 31, 2024:

1) Issued 75,000 common shares in conjunction with the exercise of stock options for proceeds totaling $34;

During the financial year ended December 31, 2024

the Company granted 1,000,000 stock options to a director of the Company. The options are exercisable at a price of $0.56 and expire on January 9, 2029;

the Company completed a Unit Private Placement of which 750,000 Units were purchased by directors and/or officers of the Company. The subscription price of the Unit was $0.55 per Unit and each Unit consisted of one Common Share of the Company and one Share Purchase Warrant with each Warrant being exercisable at a price of $0.74 expiring on March 28, 2026;

the Company entered into a debt settlement agreement with Plansee Holding AG, parent company to Global Tungsten & Powders Corporation, an insider of the Company by virtue of holding 10 percent or more of the Company's issued and outstanding shares. Pursuant to the debt settlement, the Company issued to Plansee, 2,583,316 shares at a deemed price of $0.54 per share.

the Company completed a Unit Private Placement of which 227,400 Units were purchased by directors and/or officers of the Company. The subscription price of the Unit was $0.55 per Unit and each Unit consisted of one Common Share of the Company and one Share Purchase Warrant with each Warrant being exercisable at a price of $0.74 expiring on April 19, 2026;

the Company granted 1,000,000 stock options to an officer of the Company. The options are exercisable at a price of $0.63 and expire on April 30, 2029;

the Company granted a total of 1,500,000 RSUs to Lewis Black, CEO of the Company, and 600,000 RSUs to Daniel D'Amato, a Director of the Company;

the Company granted 2,780,000 stock options to directors and officers of the Company. The options are exercisable at a price of $0.66 and expire on July 29, 2029;

During the financial year ended December 31, 2023:

the Company paid or accrued compensation to key management personnel, which includes officers and directors, in accordance with the terms of their compensation arrangements of $1,318 (year ended December 31, 2022 - $1,719).

the Company granted a total of 400,000 RSUs to Lewis Black, CEO of the Company, and 50,000 RSUs to Daniel D'Amato, a Director of the Company;

the Company completed a Unit Private Placement of which 2,222,222 Units were purchased by directors and/or officers of the Company. The subscription price of the Unit was US$0.33 per Unit and each Unit consisted of one Common Share of the Company and one Share Purchase Warrant with each Warrant being exercisable at a price of US$0.45 expiring on October 27, 2026;

the Company granted, in the aggregate, 2,600,000 stock options to its directors and officers of the Company. The options are exercisable at a price of $0.52 and expire on November 16, 2028;

the Company entered into a debt settlement agreement with Plansee Holding AG ("Plansee"), parent company to Global Tungsten & Powders Corporation, an insider of the Company by virtue of holding 10 percent or more of the Company's issued and outstanding shares. Pursuant to the debt settlement, the Company issued to Plansee, 3,649,006 shares at a deemed price of $0.70 per share and 852,834 shares at a deemed price of $0.86 per share; and

- the Company extended, in the aggregate, 700,000 share purchase warrants held by insiders of the Company, from February 19, 2023, to February 19, 2024.

the Company completed a CDI Unit private placement of which 138,888 CDI Units were purchased by a corporation that, at the time of purchase, had an officer of Almonty was an executive officer of the corporation. The subscription price of the CDI Unit was A$0.72 per CDI Unit and each CDI Unit consisted of one Common Share of the Company and one Option with each Option being exercisable at a price of A$1.25 expiring on December 31, 2024;

During the financial year ended December 31, 2022:

the Company issued 1,000 common shares pursuant to the exercise of stock options for proceeds totaling $750.00;

the Company issued, in the aggregate, 6,450,000 stock options to its directors and officers of the Company. The options are exercisable at a price of $0.87 and expire on July 21, 2027;

the Company issued 2,852,251 common shares in the capital of the Company at a subscription price of CDN$0.94 per common share for gross proceeds of CDN$2,681,116 pursuant to one or more subscription agreements between the Company and the subscribers thereto;

the Company issued 2,494,118 CDI's to DRAG, receiving gross proceeds of A$2,120,000 in conjunction with a non-brokered private placement;

during December 2022, the Company renegotiated the extension of the maturity dates of the DRAG debt totaling US$15,250 ($20655) plus accrued interest of US$3,193 ($4325) from October 22, 2023 to September 30, 2024.

The Company has long-term debt owing to DRAG, a company that owns, controls or directs more than 10% of the issued and outstanding Common Shares. In addition to the transactions disclosed in notes 8(b) and 8(c) of the Company's consolidated financial statements for the fiscal year ended December 31, 2022, interest of $939 was accrued on the DRAG loans during the year ended December 31, 2022 (year ended December 31, 2021 - $723). As of December 31, 2022, there is $3,463 (December 31, 2021 - $2,524) of unpaid interest on these loans included in accounts payable and accrued liabilities.

**TRANSFER AGENT AND REGISTRAR**

The transfer agent and registrar for the Common Shares in Canada is Computershare Investor Services Inc. at its principal offices at 3<sup>rd</sup> Floor – 510 Burrard Street, Vancouver, BC V6C 3B9.

**MATERIAL CONTRACTS**

Other than contracts entered into in the normal course of business or contracts disclosed elsewhere in this annual information form, the Corporation has not entered into any material contracts during the year ended December 31, 2024, or before such year but which remain in effect.

All material contracts of the Company have been filed on SEDAR+ and are available at <u>www.sedarplus.ca</u>. Certain contracts which have been entered into in the ordinary course of business and which relate to the operations of the Company are described earlier in this AIF.

**INTERESTS OF EXPERTS**

The consolidated financial statements of the Company for the year ended December 31, 2024 filed under National Instrument 51-102—*Continuous Disclosure Obligations* have been audited by Zeifmans LLP and can be found under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

The auditors of the Company, ZeifmansLLP, report that they are independent of the Company in accordance with the rules of professional conduct under the professional standards of the Institute of Chartered Professional Accountants of Ontario.

The Technical Reports were prepared by Adam Wheeler, a Qualified Person in accordance with NI 43-101. The Technical Reports can be found under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>. Mr. Wheeler does not own any securities of the Company nor does he otherwise have any interest in the Company.

**ADDITIONAL INFORMATION**

Copies of this AIF and such other information and documentation relating to the Company that we make available via SEDAR+ can be found at <u>www.sedarplus.ca</u>. Additional financial information is available in the Company's audited consolidated financial statements for the twelve month fiscal year ended December 31, 2024.

The information referred to in this AIF may also be obtained from <u>www.almonty.com</u> or as follows:

Almonty Industries Inc.

100 King Street West, Suite 5700 Toronto, Ontario

M5X 1C7

Phone: (647) 438-9766

**SCHEDULE A**

**ALMONTY INDUSTRIES INC.**

**AUDIT AND RISK MANAGEMENT COMMITTEE CHARTER**

**May 28, 2021**

**Policy Statement**

It is the policy of Almonty Industries Inc. (the "Corporation") to establish and maintain an Audit and Risk Management Committee to assist the Board of Directors of the Corporation (the "Board") in carrying out their oversight responsibility for the Corporation's internal controls, financial reporting and risk management processes. The Committee will be provided with resources commensurate with the duties and responsibilities assigned to it by the Board including administrative support. If determined necessary by the Committee, it will have the discretion to institute investigations of improprieties, or suspected improprieties, within the scope of its responsibilities, including the standing authority to retain special counsel or experts.

**Composition of the Committee**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Committee shall consist of at least three directors, each of whom shall be "independent" (determined in accordance with
 National Instrument 52-110 *Audit Committees* of the Canadian Securities Administrators or under the requirements or guidelines
 established under the applicable rules of any stock exchange on which the Corporation's securities are listed for trading).
 The Board shall appoint the members of the Committee annually and each member of the Committee shall remain on the Committee until
 the next annual meeting of shareholders of the Corporation after his or her appointment or until his or her successor shall be duly
 appointed and qualified. The Board shall appoint one member of the Committee to be the Chair of the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Each
 member of the Committee shall be "financially literate". In order to be financially literate, a director must have the
 ability to read and understand a set of financial statements that present a breadth and level of complexity of accounting issues
 that are generally comparable to the breadth and complexity of issues that can be reasonably expected to be raised by the Corporation's
 financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. A
 director appointed by the Board to the Committee shall be a member of the Committee until replaced by the Board at any time or until
 his or her resignation. A member of the Committee shall automatically cease to be a member of the Committee upon ceasing to be a
 director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The
 Board may fill vacancies on the Committee by appointing another director to the Committee. The Board shall fill any vacancy if the
 membership of the Committee is less than three directors. Whenever there is a vacancy on the Committee, the remaining members may
 exercise all of the Committee's powers as long as a quorum remains in office.

**Meetings of the Committee**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Committee shall convene a minimum of four times each year at such times and places as may be designated by the Chair of the Committee
 and whenever a meeting is requested by the Board, a member of the Committee, the external auditors, or a senior officer of the Corporation.
 Meetings of the Committee shall correspond with the review of the quarterly financial statements of the Corporation and management's
 discussion and analysis thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Notice
 of each meeting of the Committee shall be given to each member of the Committee and to the external auditors of the Corporation,
 who shall be entitled to attend each meeting of the Committee and shall attend whenever requested to do so by a member of the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Notice
 of a meeting of the Committee shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) be
 in writing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) state
 the nature of the business to be transacted at the meeting in reasonable detail;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to
 the extent practicable, be accompanied by copies of the documentation to be considered at the meeting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) be
 given at least two business days prior to the time stipulated for the meeting or such shorter period as the members of the Committee
 may permit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. A
 quorum for the transaction of business at a meeting of the Committee shall be the majority of the members of the Committee. However,
 it shall be the practice of the Committee to require review, and, if necessary, approval of certain important matters by all members
 of the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. A
 member or members of the Committee may participate in a meeting of the Committee by means of such telephonic, electronic or other
 communication facilities as permits all persons participating in the meeting to communicate adequately with each other. A member
 participating in such a meeting by any such means is deemed to be present at the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. In
 the absence of the Chair of the Committee, the members of the Committee shall choose one of the members present to be Chair of the
 meeting. In addition, the members of the Committee shall choose one of the persons present to be the Secretary of the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The
 Chair of the Board, senior management of the Corporation and other parties may attend meetings of the Committee; however the Committee
 (i) shall meet with the external auditors independent of management as necessary, in the sole discretion of the Committee, and (ii)
 may meet separately with management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The
 Committee shall provide the Board with a summary of all meetings together with a copy of the minutes from such meetings. Where minutes
 have not yet been prepared, the Chair of the Committee shall provide the Board with oral reports on the activities of the Committee.
 All information reviewed and discussed by the Committee at any meeting shall be retained and made available for examination by the
 Board upon request to the Chair of the Committee. Minutes of the proceedings of the Committee shall be kept in a minute book provided
 for that purpose. The minutes of the Committee meetings shall accurately record the discussions of and decisions made by the Committee,
 including all recommendations to be made by the Committee to the Board and shall be distributed to all Committee members.

**Duties and Responsibilities of the Committee**

*Audit and Financial Reporting*

 

The Committee's primary duties and responsibilities with respect to oversight of audit and financial reporting are to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) identify
 and monitor the management of the principal risks that could impact the financial reporting of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) monitor
 the integrity of the Corporation's financial reporting process and system of internal controls regarding financial reporting
 and accounting compliance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) monitor
 the independence and performance of the Corporation's external auditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) deal
 directly with the external auditors to approve external audit plans, other services (if any) and fees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) directly
 oversee the external audit process and results and resolve any disagreements between management and the external auditor regarding
 financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) provide
 an avenue of communication among the external auditors, management and the Board; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) establish
 a Whistleblower Policy for the Corporation to ensure that an effective "whistle blowing" procedure exists to permit stakeholders
 to express any concerns regarding accounting or financial matters to an appropriately independent individual.

*Risk Management:*

 

The Committee's primary duties and responsibilities with respect to risk management are to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) reviewing
 and making recommendations to the Board in relation to the adequacy of the Corporation's processes for managing risks, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in
 relation to any incident involving fraud or other deficiency of the Corporation's internal controls;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in
relation to the Corporation's insurance program, having regard to the Corporation's business and the insurable risks associated,
review the amount and terms of any insurance to be obtained or maintained by the Corporation with respect to risks inherent in its operations
and potential liabilities incurred by the directors or officers in the discharge of their duties and responsibilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) ensuring
 the development of an appropriate risk management policy framework that will provide guidance to the senior executives in implementing
 appropriate risk management practices throughout the Corporation's operations, practices and systems and overseeing this framework;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) defining
 and periodically reviewing risk management as it applies to the Corporation and clearly identifying all stakeholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) reviewing
 how the Corporation communicates it's risk management philosophy, policies and strategies to Directors, senior executives,
 employees, consultants, contractors and appropriate stakeholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) ensuring
 that the Board and Management establish a risk aware culture which reflects the Corporation's risk policies and philosophies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) reviewing
 methods of identifying broad areas of risk and setting parameters or guidelines for business risk reviews;

*Other Duties of the Committee*

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. The
 Committee shall have the authority to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) inspect
 any and all of the books and records of the Corporation, its subsidiaries and affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) discuss
 with the management and senior staff of the Corporation, its subsidiaries and affiliates, any affected party and the external auditors,
 such accounts, records and other matters as any member of the Committee considers necessary and appropriate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) engage
 independent counsel and other advisors as it determines necessary to carry out its duties; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) set
 and pay the compensation for any advisors employed by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. The
 Committee shall, at the earliest opportunity after each meeting, report to the Board the results of its activities and any reviews
 undertaken and make recommendations to the Board as deemed appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. The
 Committee shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) evaluate
 the independence and performance of the external auditors and annually recommend to the Board the appointment of the external auditor
 and the compensation of the external auditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) consider
 the recommendations of management in respect of the appointment of the external auditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) review
 the audit plan with the Corporation's external auditors and with management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) discuss
 with management and the external auditors any proposed changes in major accounting policies or principles, the presentation and impact
 of significant risks and uncertainties and key estimates and judgments of management that may be material to financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) review
 with management and with the external auditors significant financial reporting issues arising during the most recent fiscal period
 and the resolution or proposed resolution of such issues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) review
 and resolve any problems experienced or concerns expressed by the external auditors in performing an audit, including any restrictions
 imposed by management or significant accounting issues on which there was a disagreement with management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) review
 with senior management the process of identifying, monitoring and reporting the principal risks affecting financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) consider
 and review with management, the internal control memorandum or management letter containing the recommendations of the external auditors
 and management's response, if any, including an evaluation of the adequacy and effectiveness of the internal financial controls
 of the Corporation and subsequent follow-up to any identified weaknesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) review
 and recommend for approval by the Board, the audited annual financial statements, management's discussion and analysis and
 related documents in conjunction with the report of the external auditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) review
 and recommend for approval by the Board, the quarterly unaudited financial statements, management's discussion and analysis
 and related documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) before
 release, review and recommend for approval by the Board, all public disclosure documents containing audited or unaudited financial
 information, including annual and quarterly financial statements, management's discussion and analysis, annual reports, annual
 information forms and press releases;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) oversee
 any of the financial affairs of the Corporation, its subsidiaries and affiliates, and, if deemed appropriate, make recommendations
 to the Board, external auditors or management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) pre-approve
 all non-audit services to be provided to the Corporation, its subsidiaries and affiliates by the external auditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) approve
 the engagement letter for non-audit services to be provided by the external auditors or affiliates, together with estimated fees,
 and considering the potential impact of such services on the independence of the external auditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) when
 there is to be a change of external auditors, review all issues and provide documentation related to the change, including the information
 to be included in the Change of Auditors Notice and documentation required pursuant to National Instrument 51-102 – *Continuous Disclosure Obligations* (or any successor legislation) and the planned steps for an orderly transition period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) review
 all reportable events, including disagreements, unresolved issues and consultations, as defined by applicable securities laws, on
 a routine basis, whether or not there is to be a change of external auditors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) review
 with management at least annually, the financing strategy and plans of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. The
 Committee shall review the appointments of the Chief Financial Officer and any key financial managers who are involved in the financial
 reporting process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. The
 Committee shall enquire into and determine the appropriate resolution of any conflict of interest in respect of audit or financial
 matters, which are directed to the Committee by any member of the Board, a securityholder of the Corporation, the external auditors,
 or senior management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. The
 Committee shall periodically review with management the need for an internal audit function.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. The
 Committee shall review the Corporation's accounting and reporting of environmental costs, liabilities and contingencies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. The
 Committee shall establish and maintain procedures for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 receipt, retention and treatment of complaints received by the Corporation regarding accounting controls, or auditing matters; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 confidential, anonymous submission by employees of the Corporation of concerns regarding questionable accounting or auditing matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. The
 Committee shall review and approve the Corporation's hiring policies regarding employees and former employees of the present
 and former external auditors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. The
 Committee shall review with the Corporation's legal counsel as required, but at least annually, any legal matter that could
 have a significant impact on the Corporation's financial statements and any enquiries received from regulators or government
 agencies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. The
 Committee shall assess, on an annual basis, the adequacy of this Charter and the performance of the Committee.

Last Update: May 28, 2021

Approved by: Audit and Risk Management Committee and Board of Directors

## Exhibit 4.2

**Exhibit 4.2**

![](ex4-2_001.jpg)

**Consolidated Financial Statements**

**For the Years Ended December 31, 2024 and 2023**

**Presented in Canadian dollars**

![](ex4-2_002.jpg)

**<u>INDEPENDENT AUDITOR'S REPORT</u>**

To the Shareholders of Almonty Industries Inc.

**Opinion**

We have audited the consolidated financial statements of Almonty Industries Inc. and its subsidiaries (the "Company"), which comprise the consolidated statements of financial position as at December 31, 2024 and 2023, and the consolidated statements of operations and comprehensive loss, changes in shareholders' equity and cash flows for the years then ended, and notes to the consolidated financial statements, including material accounting policy information.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as at December 31, 2024 and 2023, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board ("IASB").

**Basis for Opinion**

We conducted our audits in accordance with Canadian generally accepted auditing standards ("GAAS"). Our responsibilities under those standards are further described in the *Auditor's Responsibilities for the Audits of the Consolidated Financial Statements* section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audits of the consolidated financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

**Key Audit Matters**

Key audit matters are those that, in our professional judgement, were of most significance in our audit of the consolidated financial statements. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

![](ex4-2_003.jpg)

![](ex4-2_002.jpg)

**Key audit matter description**

**Valuation of Mining Assets**

*(Refer to note 5 in the consolidated financial statements)*

 

The Company has mining assets with a carrying value of $201,866,000 as of December 31, 2024. These represent 79% of the Company's total assets on its consolidated statement of financial position at that date.

The tungsten market is volatile, and any price decrease could result in an impairment. The Company's analysis of its ability to monetize these assets for the purposes of considering whether there are indicators of impairment involves complex estimates, significant uncertainty and subjectivity. The forecasts are forward-looking over the medium term, increasing the risk of inaccurate forecasting. The valuations of mining assets are sensitive to small changes in these assumptions.

We determined that the impairment assessment for mining assets is a key audit matter because this amount is material as well as the significant judgement required from management.

**How our audit addressed the key audit matter**

Our procedures included, amongst others:

● We examined and challenged management's assessment of whether indicators of possible impairment of the mining assets were present that would require impairment testing;

● We assessed if any impairment indicators (internal and external) exist to mining assets, including the assessment of:

● indicators of the decline in forecasted tungsten sales prices;

● the assumptions used by management ensuring the assumptions are still valid and there are no adverse changes to market or economic factors impacting the carrying value of mining assets;

● significant changes with an adverse effect on the Company's cost structure during the year, or any that are expected to take place in the near future, in the extent to which, or manner in which, the mining assets are used or expected to be used;

● changes in interest rates, foreign currency rates or market rates of return and their impact on the valuation models used; and

● the Company's market capitalization in relation to its net assets at the reporting date.

● We reviewed the Company's disclosures in this area in the consolidated financial statements for compliance with IFRS Accounting Standards.

**Asset Retirement Obligation ("ARO")**

*(Refer to note 9 in the consolidated financial statements)*

As of December 31, 2024, the Company has an aggregate provision of $24,291,000 for ARO with respect to the Panasqueira, Los Santos and Woulfe mines.

The determination of this provision requires judgment in estimating the total cost, the estimate of when these costs will likely be incurred and the determination of an appropriate discount rate to calculate the present value of these costs.

Our procedures included, amongst others:

● We reviewed management's memoranda in support of the ARO amount;

● We confirmed that the Company considered and updated the ARO provision in the consolidated financial statements;

● We considered the timing of the Company's proposed restoration activities for consistency with the Company's legal and constructive obligations and the useful lives of the associated mining operations;

![](ex4-2_002.jpg)

This matter is a key audit matter because the amount is material and estimating the costs associated with ARO requires judgement and estimation for factors such as the timing of when ARO works will take place, the extent of ARO activities that will be required and the inflation and discount rates pertinent to the rehabilitation work.

**Convertible Debentures**

*(Refer to note 8 in the consolidated financial statements)*

 

As of December 31, 2024, the Company had $27,872,000 of convertible debentures. These convertible debentures are denominated in Euros and US dollars.

The accounting treatment for these convertible notes requires judgement in estimating the fair values of the liability and the derivative components.

This matter is a key audit matter because the amount is material and estimating the fair value of the debentures and the embedded derivates involves a valuation model that incorporates interest rates, Company share prices and volatility.

**Going Concern**

*(Refer to note 1 in the consolidated financial statements)*

As described in Note 1 to the consolidated financial statements, the Company had a working capital deficiency of $30,538,000 as at December 31, 2024. For the year ended December 31, 2024, the Company incurred a comprehensive loss of $32,465,000 and cash flows used in operating activities of $7,498,000. Further, as at December 31, 2024, the Company held long-term debt of $158,022,000 of which $21,894,000 is to mature within one year. The above factors increased the risk that the Company would be unable to continue as a going concern. The above described uncertainties related to going concern were mitigated by the subsequent events, which are described in Note 18 of the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

● We assessed the mathematical accuracy of the calculations and the appropriateness of the inflation and discount rates used; and

● We assessed whether the Company's disclosures appropriately describe the significant degree of inherent imprecision in the estimates and the potential impact on financial reporting of future periods of revisions to these estimates.

Our procedures included, amongst others:

● We obtained and reviewed the agreements and the Company's assessment of the accounting treatment for the convertible debentures;

● We assessed the mathematical accuracy of the calculations and the appropriateness of the assumptions used by management for interest rates, share prices and volatility;

● We assessed the reasonableness of the Company's accounting treatment for the convertible debentures and their related embedded derivates in accordance with IFRS 9; and

● We assessed management's accounting treatment and disclosure of the convertible debentures and related embedded derivatives in accordance with IFRS 9.

Our procedures included, amongst others:

● Understanding the key controls over management's and the board of directors' review and approval of the management's cash forecast and the consolidated financial statements, including assessments of the disclosure required with respect to the Company's ability to continue as a going concern;

● Evaluating the reasonability of management's and the board of directors' assumptions within their cash forecast for the ensuing year from the date of the issuance of the consolidated financial statements, and considering their consistency with: (i) external market and industry data for commodity prices and foreign exchange rates; and (ii) recent results of operations, including revenues, operating costs and capital expenditures incurred (iii) the impact of the Company's existing financial arrangements and conditions. We corroborated the upcoming required payments regarding the Company's long-term debt to executed amending agreements to extend the maturity dates beyond March, 2026; and

![](ex4-2_002.jpg)

The Company's use of the going concern assumption is a key audit matter due to the high level of judgment required. ● Evaluating the Company's disclosures in the consolidated financial statements in this area for compliance with IFRS Accounting Standards.

**Other Information**

Management is responsible for the other information. The other information comprises the information included in the Management's Discussion and Analysis ("MD&A") but does not include the consolidated financial statements and our auditor's report thereon.

Our opinion on the consolidated financial statements does not cover the MD&A and we do not express any form of assurance conclusion thereon.

In connection with our audits of the consolidated financial statements, our responsibility is to read MD&A identified above and, in doing so, consider whether MD&A is materially inconsistent with the consolidated financial statements, or our knowledge obtained in the audits, or otherwise appears to be misstated.

We obtained the MD&A prior to the date of this auditor's report. If based on the work we have performed on this MD&A, we conclude that there is a material misstatement of this MD&A, we are required to report that fact in this auditor's report. We have nothing to report in this regard.

**Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements**

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS Accounting Standards as issued by the IASB, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's financial reporting process.

![](ex4-2_002.jpg)

**Auditor's Responsibilities for the Audit of the Consolidated Financial Statements**

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with GAAS, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

● Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or override of internal control.

● Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.

● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

● Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosure is inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

● Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

● Plan and perform the group audits to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Company as a basis for forming an opinion on the consolidated financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audits. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audits and significant audit findings, including any significant deficiencies in internal control that we identify during our audits.

![](ex4-2_002.jpg)

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determined those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We described these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public benefits of such communication.

The engagement partner on the audits resulting in this independent auditor's report is Ahmad Aslam, CPA, CA.

---

| | |
|:---|:---|
|  | ![](ex4-2_004.jpg) |
| Toronto, Ontario | Chartered Professional Accountants |
| March 18, 2025 | Licensed Public Accountants |

---

**Management's Responsibility for Financial Reporting**

The accompanying consolidated financial statements for Almonty Industries Inc. ("Almonty") (with its subsidiaries, the "Company") were prepared by management in accordance with International Financial Reporting Standards ("IFRS"). Management acknowledges responsibility for the preparation and presentation of the consolidated financial statements, including responsibility for significant accounting judgments and estimates and the choice of accounting principles and methods that are appropriate to the Company's circumstances. The significant accounting policies of the Company are summarized in Note 3 to the consolidated financial statements.

Management has established processes, which are in place to provide them sufficient knowledge to support management representations that they have exercised reasonable diligence that (i) the consolidated financial statements do not contain any untrue statement of material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it is made, as of the date of and for the periods presented by the consolidated financial statements and (ii) the consolidated financial statements fairly present in all material respects the financial condition, results of operations and cash flows of the Company, as of the date of and for the periods then ended presented by the consolidated financial statements.

The Board of Directors is responsible for reviewing and approving the consolidated financial statements together with other financial information of the Company and for ensuring that management fulfills its financial reporting responsibilities. The Audit Committee assists the Board of Directors in fulfilling this responsibility. The Audit Committee meets with management to review the financial reporting process and the consolidated financial statements together with other financial information of the Company. The Audit Committee reports its findings to the Board of Directors for its consideration in approving the consolidated financial statements together with other financial information of the Company for issuance to the shareholders.

Management recognizes its responsibility for conducting the Company's affairs in compliance with established financial standards, and applicable laws and regulations, and for maintaining proper standards of conduct for its activities.

 

---

| | | |
|:---|:---|:---|
| *"Lewis Black"* | | *"Mark Gelmon"* |
| Lewis Black |  | Mark Gelmon |
| Director, President & CEO |  | Chief Financial Officer |

---

March 18, 2025

Toronto, Ontario

**Almonty Industries Inc.**

**Consolidated Statements of Financial Position**

(in 000's of Canadian dollars unless otherwise noted)

---

| | | | |
|:---|:---|:---|:---|
|  | <br>**Note** | **December 31,**<br>**2024** | **December 31,**<br>**2023** |
| **Assets** |  |  |  |
| **Current Assets** |  |  |  |
| Cash |  | 7830 | 22019 |
| Trade receivables |  | 2927 | 2679 |
| Taxes recoverable |  | 573 | 661 |
| Inventories | 4 | 6738 | 7832 |
| Prepaid expenses and other current assets |  | 2508 | 3049 |
| **Total Current Assets** |  | **20576** | **36240** |
| Mining assets | 5 | 201866 | 165681 |
| Tailings inventory | 4 | 30982 | 30355 |
| Deferred tax assets | 11 | 2364 | 2551 |
| Other assets |  | 561 | 507 |
|  |  | **235773** | **199094** |
| **Total Assets** |  | **256349** | **235334** |
| **Liabilities** |  |  |  |
| **Current Liabilities** |  |  |  |
| Accounts payable and accrued liabilities | 7 | 29146 | 31469 |
| Deferred revenue |  | 74 | 1062 |
| Current portion of long-term debt | 8 | 21894 | 34167 |
| **Total Current Liabilities** |  | **51114** | **66698** |
| Warrant liabilities | 8 & 10 | 5154 | 958 |
| Long-term debt | 8 | 136128 | 95900 |
| Restoration provision and other liabilities | 9 | 24866 | 23256 |
| Deferred tax liabilities | 11 | 14 | 14 |
|  |  | **166162** | **120128** |
| **Total Liabilities** |  | **217276** | **186826** |
| **Share holders' Equity** |  |  |  |
| Share capital | 10 | 146516 | 127359 |
| Subscriptions received | 10 | 103 |  |
| Equity portion of convertible debentures |  | 1241 | 1241 |
| Contributed surplus |  | 16072 | 12302 |
| Accumulated other comprehensive income |  | (4638) | 11529 |
| Deficit |  | (120221) | (103923) |
| **Total Share holders' Equity** |  | **39073** | **48508** |
| **Total Liabilities and Share holders' Equity** |  | **256349** | **235334** |

---

Nature of operations (Note 1) \| Commitments and contingent liabilities (Note 16) \| Subsequent Events (Note 18)

 

*The accompanying notes are an integral part of these consolidated financial statements.*

 

**Signed on behalf of the Board:**

 ****

---

| | |
|:---|:---|
| ***/s/*** *Lewis Black* | ***/s/*** *Mark Trachuk* |
| **Lewis Black** | **Mark Trachuk** |
| Director | Director |

---

**Almonty Industries Inc.**

**Consolidated Statements of Operations and Comprehensive Loss**

(in 000's of Canadian dollars except share and per share amounts)

---

| | | | |
|:---|:---|:---|:---|
|  | | **Year ended December 31,** | **Year ended December 31,** |
|  | <br>**Note** | **2024** | **2023** |
| **Revenue** |  | **28836** | 22510 |
| **Cost of sales** |  |  |  |
| Production costs |  | **24679** | 19328 |
| Care and maintenance costs |  | **1067** | 1022 |
| Depreciation and amortization |  | **1120** | 1077 |
| **Income from mining operations** |  | **1970** | 1083 |
| **Expenses** |  |  |  |
| General and administrative |  | **6153** | 5816 |
| Share-based compensation | 10 | **2734** | 1141 |
| **Loss before other items and income taxes** |  | **(6917)** | (5874) |
| **Other (income) expenses** |  |  |  |
| Interest expense |  | **4568** | 4305 |
| Financing fees |  | **-** | 739 |
| Loss (gain) on valuation of embedded derivative liabilities | 8(c) | **630** | (432) |
| Loss (gain) on valuation of warrant liabilities | 8 & 10 | **2032** | (1227) |
| Foreign exchange loss (gain) |  | **1779** | (489) |
| **Loss before income taxes** |  | **(15926)** | (8770) |
| Income tax expense |  |  |  |
| &nbsp;&nbsp;&nbsp;Current | <br>11 | 133 | 67 |
| &nbsp;&nbsp;&nbsp;Deferred | 11 | **239** | - |
|  |  | **372** | 67 |
| **Net loss for the year** |  | **(16298)** | (8837) |
| **Other comprehensive loss not through profit and loss** |  |  |  |
| Net loss for the year |  | **(16298)** | (8837) |
| *Items that may be reclassified subsequently to profit/loss* |  |  |  |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustment |  | **(16167)** | 8138 |
| **Comprehensive loss for the year** |  | **(32465)** | (699) |
| <br>**Loss per common share - basic and diluted** |  | $(0.06) | $(0.04) |
| <br>**Weighted average number of shares outstanding - basic and diluted** |  | 254035469 | 226670766 |

---

*The accompanying notes are an integral part of these consolidated financial statements.*

 

 

**Almonty Industries Inc.**

**Consolidated Statements of Changes in Shareholders' Equity**

Years ended December 31, 2024 and 2023

(in 000's of Canadian dollars unless otherwise noted)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | <br>**Note** |<br>**Share**<br>**Capital** |<br>**Subscriptions**<br>**Received** | **Equity**<br>&nbsp;&nbsp;&nbsp;&nbsp;**Portion of**<br>**Convertible**<br>**Debentures** |<br>**Contributed**<br>**Surplus** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**Income (Loss)** |<br><br>**Deficit** |<br>**Total**<br>**Equity** |
| **Balance at December 31, 2022** |  | **119383** | **-** | **1241** | **10821** | **3391** | **(95086)** | **39750** |
| Issuance of common shares and warrants for cash | 10 | 5388 | 347 |  |  | 5735 |  |  |
| Share issuance costs | 10 | (371) |  |  |  |  |  | (371) |
| Shares issued on exercise of warrants | 10 | 42 |  |  | (7) |  |  | 35 |
| Shares issued to settle convertible debt | 10 | 2917 |  |  |  |  |  | 2917 |
| Share-based compensation | 10 |  |  |  | 1141 |  |  | 1141 |
| Net loss and comprehensive loss for the year |  | - | - | - | - | 8138 | (8837) | (699) |
| **Balance at December 31, 2023** |  | **127359** | **-** | **1241** | **12302** | **11529** | **(103923)** | **48508** |
| Issuance of common shares and warrants for cash | 10 | 8609 |  |  | 1036 |  |  | 9645 |
| Share issuance costs | 10 | (289) |  |  |  |  |  | (289) |
| Shares issued for settlement of debt | 10 | 1572 |  |  |  |  |  | 1572 |
| Shares issued for conversion of debt | 10 | 9265 |  |  |  |  |  | 9265 |
| Subscriptions received | 10 |  | 103 |  |  |  |  | 103 |
| Share-based compensation | 10 |  |  |  | 2734 |  |  | 2734 |
| Net loss and comprehensive loss for the year |  | - | - | - | - | (16167) | (16298) | (32465) |
| **Balance at December 31, 2024** |  | **146516** | **103** | **1241** | **16072** | **(4638)** | **(120221)** | **39073** |

---

*The accompanying notes are an integral part of these consolidated financial statements.*

 

 

**Almonty Industries Inc.**

**Consolidated Statements of Cash Flows**

(in 000's of Canadian dollars unless otherwise noted)

 

---

| | | | |
|:---|:---|:---|:---|
|  | | **Year ended December 31,** | **Year ended December 31,** |
|  | <br>**Note** | **2024** | **2023** |
| **Operating activities** |  |  |  |
| Net loss for the year |  | (16298) | (8837) |
| Add (deduct) non-cash items: |  |  |  |
| &nbsp;&nbsp;&nbsp;Share-based compensation | 10 | 2734 | 1141 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization |  | 1120 | 1077 |
| &nbsp;&nbsp;&nbsp;Interest expense |  | 4568 | 4305 |
| &nbsp;&nbsp;&nbsp;Financing fees |  |  | 739 |
| &nbsp;&nbsp;&nbsp;Income tax expense |  | 133 | 67 |
| &nbsp;&nbsp;&nbsp;Deferred income taxes |  | 239 |  |
| &nbsp;&nbsp;&nbsp;Loss (gain) on valuation of embedded derivative liabilities | 8(c) | 630 | (432) |
| &nbsp;&nbsp;&nbsp;Loss (gain) on valuation of warrant liabilities |  | 2032 | (1227) |
| &nbsp;&nbsp;&nbsp;Unrealized foreign exchange loss (gain) |  | 1779 | (489) |
|  |  | (3063) | (3656) |
| Changes in non-cash working capital |  |  |  |
| &nbsp;&nbsp;&nbsp;Trade receivables |  | (248) | (467) |
| &nbsp;&nbsp;&nbsp;Taxes recoverable |  | 88 | (165) |
| &nbsp;&nbsp;&nbsp;Inventories |  | 1094 | (2047) |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets |  | 541 | 937 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities |  | (5404) | (7124) |
| &nbsp;&nbsp;&nbsp;Deferred revenues |  | (988) | 430 |
| Net change in non-cash working capital |  | (4917) | (8436) |
| Other assets |  | 482 | 394 |
| **Cash flow used in operating activities** |  | **(7498)** | **(11698)** |
| **Investing activities**<br>|  |  |  |
| Additions to mining assets |  | (36231) | (17492) |
| **Cash flow used in investing activities** |  | **(36231)** | **(17492)** |
| **Financing activities** |  |  |  |
| Issuance of common shares | 10 | 11810 | 7504 |
| Share subscriptions received in advance |  | 103 |  |
| Share issuance costs paid | 18 | (289) | (371) |
| Issuance of long-term debt | 8 | 43643 | 42508 |
| Repayment of long-term debt |  | (23608) | (3735) |
| Interest paid |  | (2288) | (2535) |
| **Cash flow provided by financing activities** |  | **29371** | **43371** |
| Effect of foreign currency translation on cash |  | **169** | **(604)** |
| **Net increase (decrease) in cash for the year** |  | **(14189)** | **13577** |
| Cash at beginning of year |  | 22019 | 8442 |
| **Cash at end of year <sup>(1)</sup>** |  | **7830** | **22019** |

---

 

*<sup>(1)</sup>* *Cash includes $2,170 (December 31, 2024 - $21,354) of restricted cash solely for use on the Sangdong Project.*

---

| | | |
|:---|:---|:---|
| **Supplemental disclosure with respect to cash flows:** |  |  |
| Non-cash investing and financing activites: |  |  |
| &nbsp;&nbsp;&nbsp;Additions to mining assets included in accounts payable | 5640 | 4957 |
| &nbsp;&nbsp;&nbsp;Revision in estimate in restoration provision | 579 | (16230) |
| &nbsp;&nbsp;&nbsp;Shares issued to settle convertible debt | 5963 | - |

---

*The accompanying notes are an integral part of these consolidated financial statements.*

 

 

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

1. Nature of operations

Almonty Industries Inc. ("Almonty") (with its subsidiaries, the "Company") is incorporated in Canada. The Company's shares are listed on the Toronto Stock Exchange ("TSX"), trading under the symbol AII. The Company's shares are also listed on the Australia Securities Exchange ("ASX"), under the symbol AII, and on the OTCQX Best Markets under the symbol ALMTF.

The head office of the Company is located at 100 King Street West, Suite 5700, Toronto, Ontario, M5X 1C7. The principal business of the Company is the mining, processing and shipping of tungsten concentrate from the Los Santos tungsten mine located near Salamanca, Spain (the "Los Santos Mine") and the Panasqueira tin and tungsten mine in Covilha, Castelo Branco, Portugal (the "Panasqueira Mine") as well as the development of the Sangdong tungsten project located in Gangwon Province, Republic of Korea, (the "Sangdong Project") and the exploration and evaluation of the Valtreixal tin and tungsten project, located in the province of Zamora in Western Spain (the "Valtreixal Project").

Although the Company has taken steps to verify the title to the properties on which it is conducting its exploration, development and mining activities, these procedures do not guarantee the Company's title. Property title may be subject to government licensing requirements or regulations, unrestricted prior agreements, unregistered claims, aboriginal land claims and non-compliance with regulatory and environmental requirements. The Company's mining and exploration activities are subject to laws and regulations relating to the environment, which are continually changing, and generally becoming more restrictive. The Company believes its operations are materially in compliance with all applicable laws and regulations. The Company has made, and expects to make in the future, expenditures to remain in compliance.

These consolidated financial statements have been prepared on a going concern basis which assumes that the Company will continue operating for the foreseeable future and will be able to realize a return on its assets and discharge its liabilities and commitments in the ordinary course of its business.

Management assesses the Company's ability to continue as a going concern at each reporting date, using quantitative and qualitative information available. As at December 31, 2024, the Company had a working capital deficiency of $30,538 (December 31, 2023 - $30,458). During the year ended December 31, 2024, the Company secured additional financings totaling $8,320. In addition, during July, 2022, the Company closed its US$75.1 million project financing with the KfW IPEX-Bank ("KfW"). During the year ended December 31, 2024, the Company received its seventh and eighth drawdowns totaling US$10,640 (previous years: US$55,780).

Additionally, during the year ended December 31, 2024, the Company negotiated the extension of the maturity date of various debt instruments totaling $29,072 (Notes 8(b), 8(i), 8(iii), 8(iv), 8(vii) and 8(ix)) to October 31, 2026. Also, in late fiscal 2023, the Company restructured certain long-term debt instruments totaling EUR 7,900 whereby four debt instruments were consolidated into one new debt instrument with the maturity date of the new loan extended to September 15, 2025 (Note 8(c)(xi).

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

During the year ended December 31, 2024, the Company issued 10,249,605 common shares of the Company in conjunction with the conversion of long-term debt totaling $9,225 and issued 2,583,316 common shares of the Company to settle certain accounts payable.

During April, 2024, the Company refinanced the Unicredit US$15,650 term loan with the KfW IPEX-Bank with a new maturity date of March 31, 2027 (Note 8(b)).

Finally, subsequent to December 31, 2024 (Note 18), the Company secured additional financings totaling $10,847.

The Company's current forecast indicates that it will have sufficient cash flows from operations and from financings outlined above for at least the next year to continue as a going concern and settle obligations as they come due. The assessment of the Company's ability to continue as a going concern, by its nature, relies on estimates of future cash flows and other future events, whose subsequent changes would materially impact the validity of such an assessment.

2. Basis of Preparation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Statement of compliance

These consolidated financial statements of the Company have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").

These consolidated financial statements have been prepared on a historical cost basis, except for fair- value through-profit-or-loss financial assets and liabilities and derivative financial instruments, which are measured at fair value.

These consolidated financial statements were authorized for issuance by the Company's Board of Directors on March 18, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Basis of preparation and principles of consolidation

Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Company obtains control, and continue to be consolidated until the date when such control ceases. The Company controls an investee if the Company has:

● power over the investee;

● exposure, or rights, to variable returns from its involvement with the investee; and

● the ability to use its power over the investee to affect its returns.

When the Company has less than a majority of the voting or similar rights of an investee, the Company considers all relevant facts and circumstances in assessing whether it has power over an investee, including but not limited to:

● the contractual arrangement with the other vote holders of the investee;

● rights arising from other contractual arrangements; and

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

● the Company's potential voting rights.

The Company re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Assets, liabilities, income and expenses of a subsidiary are included in the consolidated balance sheet and statement of operations and comprehensive income (loss) from the date that the Company gains control until the date that the Company ceases to control the subsidiary.

These consolidated financial statements include the accounts of the Company and its 100%-owned subsidiaries, Daytal Resources Spain S.L. ("Daytal"), Beralt Ventures Inc. ("BVI"), Beralt Tin and Wolfram (Portugal) SA ("BTW"), 7887523 Canada Inc. ("Almonty Sub"), Valtreixal Resources Spain ("VRS"), and Woulfe Mining Corp. ("Woulfe") and its four wholly-owned subsidiaries ("Woulfe Subs").

All intercompany balances, transactions, unrealized gains and losses resulting from intercompany transactions and dividends have been eliminated on consolidation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Economic dependence

Almonty's wholly-owned subsidiaries, Daytal and BTW, participate in the global tungsten business. Currently, the majority of the output of Almonty's operations is sold to two customers (2023 - two), one of which is a shareholder of the Company. There is no guarantee that Almonty would be able to find an alternative customer or customers on market terms to replace this revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Foreign currency translation

These financial statements are presented in Canadian dollars. The functional currency of Almonty is the Canadian dollar. Daytal, BVI, BTW and VRS's functional currency is the Euro ("€") and AKTC's functional currency is the Korean Won ("KRW").

Transactions denominated in a currency other than the functional currency of Almonty or its respective subsidiaries, including revenues of Daytal and BTW which are denominated in US$, are translated into their respective functional currencies using the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate in effect at the reporting date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the historical exchange rate. Exchange gains and losses are recognized in profit or loss in the period in which they arise.

For the purpose of presenting these consolidated financial statements, the assets and liabilities of the foreign operations are translated into Canadian dollars using exchange rates prevailing at the end of the reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuated significantly during that period, in which case the exchange rates at the dates of the transactions are used. Currency translation gains and losses arising from translation are recognized as a separate component of equity and as a foreign currency translation adjustment in other comprehensive income (loss).

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Critical judgments and estimates

The preparation of consolidated financial statements requires management to make judgments, estimates and form assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities at the date of the financial statements and reported amount of revenues and expenses for the reporting period. Actual results may differ from those estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis.

**Critical judgments**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)** **Functional currency** 

The functional currency of the Company and each of its subsidiaries is the currency of the primary economic environment in which the respective entities operate. Assessment of functional currency involves certain judgments to determine the primary economic environment and the Company reconsiders the functional currency of its entities if there is a change in events and conditions which determined the primary economic environment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)** **Stage of exploration and development** 

Upon achieving technical feasibility and when commercial viability is demonstrated, capitalized exploration and evaluation assets are transferred to mineral properties and plant and equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)** **Tailings inventory** 

The valuation of tailings inventory at the Los Santos Mine requires management to make judgements regarding the ability to reprocess the tailings inventory and the recoverability of the tungsten contained in the tailings inventory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv)** **Going concern** 

The preparation of these consolidated financial statements requires management to make judgments regarding its ability to continue as a going concern as discussed in Note 1.

**Key sources of estimation uncertainty**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)** **Ore reserves and mineral resources estimates** 

Ore reserves are estimates of the amount of ore that can be economically and legally extracted from the Company's mining properties. The Company estimates its ore reserves and mineral resources based on information compiled by appropriately qualified persons relating to the geological data on the size, depth and shape of the ore body, and requires complex geological judgments to interpret the data. The estimation of recoverable reserves is based upon factors such as estimates of foreign exchange rates, commodity prices, future capital requirements, and production costs along with geological assumptions and judgments made in estimating the size and grade of the ore body. Changes in the ore reserve or mineral resource estimates may impact upon the carrying value of exploration and evaluation assets, mineral property, plant and equipment, provision for rehabilitation, recognition of deferred tax assets, and depreciation and amortization charges.

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)** **Mine rehabilitation and restoration provision** 

The Company assesses its mine rehabilitation provision annually. Significant estimates and assumptions are made in determining the provision for mine rehabilitation as there are numerous factors that may affect the ultimate liability payable. These factors include estimates of the extent and costs of rehabilitation activities, technological changes, regulatory changes, cost increases as compared to the inflation rates, and changes in discount rates. These uncertainties may result in future actual expenditures differing from the amounts currently provided.

The provision at the reporting date represents management's best estimate of the present value of the future rehabilitation costs required. Changes to estimated future costs are recognized in the consolidated balance sheet by either increasing or decreasing the rehabilitation asset and liability. Significant assumptions related to mine rehabilitation and restoration provisions are disclosed in Note 9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)** **Impairment of mineral property, plant and equipment and exploration and evaluation assets** The Company evaluates each asset or cash generating unit every year to determine whether there are any indications of impairment or impairment reversals. If any such indication exists, which is often judgmental, a formal estimate of the recoverable amount is performed and an impairment loss or recovery is recognized to the extent that the carrying amount exceeds the recoverable amount. The recoverable amount of an asset or cash generating group of assets is measured at the higher of fair value less costs to sell and value in use. The evaluation of asset carrying values for indications of impairment includes consideration of both external and internal sources of information, including such factors as market and economic conditions, production budgets and forecasts, and life-of-mine estimates.

When required, the determination of fair value and value in use requires management to make estimates and assumptions about expected production, sales volumes, commodity prices, mineral resources, operating costs, and future capital expenditures. The estimates and assumptions are subject to risk and uncertainty; hence, there is the possibility that changes in circumstances will alter these projections, which may impact the recoverable amount of the assets. In such circumstances, some or all of the carrying value of the assets may be further impaired or the impairment charge reduced with the impact recorded in profit or loss. Significant assumptions used in the Company's impairment analysis are disclosed in Note 6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv)** **Inventory** 

The net recoverable value of ore stock piles, tungsten tri-oxide ("WO<sub>3</sub>") in concentrate and tailings inventory is based on the quantity of recoverable metal in inventory which is an estimate based on the tonnes of ore or WO<sub>3</sub> in concentrate, contained WO<sub>3</sub> based on assay data, and the estimated recovery percentage based on the expected processing method. Changes in these estimates could affect the net realizable value of inventory and could result in an impairment of inventory. The net realizable value of long-term tailings inventory also requires estimates related to future sales prices.

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v)** **Deferred stripping** 

The calculation of the life-of-mine stripping ratio requires the use of judgments and estimates such as estimates of tonnes of waste to be removed over the life of the mining area and economically recoverable reserves to be extracted as a result. Changes in a mine's life and design may result in changes to the expected stripping ratio (waste to mineral reserves ratio) and amounts that are capitalized or included in production costs. Should the estimate of the stripping ratio change over time as a result of a change/optimization in the design of the open pits, then the Company will revise the deferral and amortization rates related to its deferred stripping expenditures. Such changes are accounted for prospectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vi)** **Valuation of right-of-use asset and lease liabilities** 

The application of IFRS 16 Leases requires the Company to make judgments that affect the valuation of the right-of-use assets and the valuation of lease liabilities. These include assessing lease agreements to determine the contract term and interest rate used for discounting of future cash flows.

The lease term determined by the Company is comprised of the non-cancellable period of lease agreements, periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option.

The present value of the lease payment is determined using a discount rate representing the rate of a commercial mortgage rate, observed in the period when the lease agreement commences or is modified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vii)** **Income taxes** 

The determination of the Company's tax expense for the period and deferred tax assets and liabilities involves significant estimation and judgment by management. In determining these amounts, management interprets tax legislation in a variety of jurisdictions and makes estimates of the expected timing of the reversal of deferred tax assets and liabilities. Management also makes estimates of future earnings, which affect the extent to which potential future tax benefits may be used.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) Pending Accounting Standards

Other accounting standards or amendments to existing accounting standards that have been issued but have future effective dates have now been assessed by the Company and are not expected to have any impact on the Company's consolidated financial statements. The Company has not early adopted these standards.

3. Significant Accounting Policies

**Cash and cash equivalents**

Cash and cash equivalents comprise cash at banks and on hand, and short-term deposits with a maturity of three months or less at the date of acquisition that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. The Company currently does not have any cash equivalents.

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

**Inventories**

Inventories are valued at the lower of cost and net realizable value. Net realizable value represents the estimated future sales price of the product based on prevailing metal prices at the reporting date, less estimated costs to complete production and bring the product to sale.

The cost of stores and fuel inventory is determined on a weighted average acquisition cost basis.

Cost of ore stockpiles is determined on a weighted average cost basis and includes the costs of mining the ore including the cost of stores and fuel inventory used in the mining process, direct labor, depreciation and amortization and an appropriate portion of variable and fixed overheads. Stockpiles are measured by estimating the number of tonnes added and removed from the stockpile, the amount of contained WO<sub>3</sub> based on assay data, and the estimated recovery percentage based on the expected processing method. Stockpile tonnages are verified by periodic surveys.

WO<sub>3</sub> in concentrate ("WO<sub>3</sub> Concentrate") and WO<sub>3</sub> in circuit are physically measured or estimated. Cost of WO<sub>3</sub> Concentrate and WO<sub>3</sub> in circuit is determined on a weighted average production cost basis and comprises cost of stock-piled ore processed, processing costs including the cost of stores and fuel inventory used, direct labor, and an appropriate portion of fixed and variable overhead costs, including depreciation and amortization, incurred in converting ore into finished concentrate.

Tailings inventory represents stockpiles of low-grade tailings that have been mined and processed and are available for reprocessing. As not all tailings inventory will be reprocessed within one year of the date of these consolidated financial statements, a portion of the carrying amount related to the tailings inventory has been classified as a non-current asset in the consolidated balance sheets. The allocation of costs to WO<sub>3</sub> Concentrate inventory and tailings inventory is determined based on the relative amounts of recoverable WO<sub>3</sub> contained in the concentrate and tailings produced.

**Mining assets**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Mineral property, plant and equipment** **:** 

Mineral property, plant and equipment are stated at cost, less accumulated depreciation and accumulated impairment losses.

The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into operation, the initial estimate of the rehabilitation obligation and, for qualifying assets, borrowing costs. The capitalization of certain mine construction costs ceases when a mine construction project moves into the production stage. When parts of mineral property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of mineral property, plant and equipment.

The cost of replacing plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the item will flow to the Company and its cost can be measured reliably. The carrying amount of the replaced item is derecognized. The costs of the day-to-day servicing of plant and equipment are expensed.

Accumulated mine development costs and property plant and equipment that are directly related to the production of WO<sub>3</sub> Concentrate and that has a useful life that is equal to or in excess of the estimated life-of-mine, are depreciated on a unit-of-production basis over the economically recoverable resources of the mine ("ROM"). The unit of account for the ROM costs are tonnes of ore whereas the unit of account for post-ROM costs are recoverable metric ton units ("MTUs") of WO<sub>3</sub>. Rights and concessions are depleted on the unit-of-production basis over the total resources. The unit-of-production rate for the depreciation of mine development costs takes into account expenditures incurred to date.

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

Other plant and equipment such as mobile mine equipment is generally depreciated on a straight- line basis over their estimated useful lives of three to ten years. Leasehold improvements are amortized over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Exploration and evaluation assets** 

Exploration and evaluation costs relate to the initial search for a mineral deposit, the cost of acquisition of a mineral property interest or exploration rights and the subsequent evaluation to determine the economic potential of the mineral deposit. The exploration and evaluation stage commences when the Company obtains the legal right or license to begin exploration and subsequently exploration and evaluation expenses are capitalized as exploration and evaluation assets. Costs incurred prior to the Company obtaining the legal rights are expensed.

When the exploration and evaluation of a mineral property indicates that development of the mineral property is technically and commercially feasible, the future economic benefits are probable, and the Company has the intention and sufficient resources to complete the development and use or sell the asset, the related costs are first assessed for impairment and then transferred from exploration and evaluation assets to mineral property, plant and equipment.

Management reviews the carrying value of capitalized exploration costs for indicators that the carrying value is impaired in each reporting period. The review is based on the Company's intentions for further exploration and development of the undeveloped property, results of drilling, commodity prices and other economic and geological factors. Subsequent recovery of the resulting carrying value depends on successful development or sale of the undeveloped project. If a property does not prove viable, all non-recoverable costs associated with the project, net of any previous impairment provisions, are written off.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Deferred stripping expenditures** 

Pre-production costs of removing overburden to access ore in open pit mines and developing access headings in underground mines are capitalized as pre-production stripping or development costs respectively and are included within mineral property, plant and equipment.

Advanced stripping costs incurred during the production stage of operations are deferred as part of mining assets and amortized on a unit-of-production basis over the life of the related ore body components. Stripping costs are capitalized only if: (1) it is probable that the future economic benefit associated with the activity will flow to the Company; (2) the Company can estimate the mineral reserve of the ore body for which access has been improved; and (3) the costs relating to the activity associated with that mineral reserve can be measured reliably. Stripping costs are capitalized if the strip ratio in the reporting period exceeds the average life of mine strip ratio based on the ratio of the actual strip ratio for the period relative to the average life of mine strip ratio.

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

**Mine rehabilitation and restoration provisions**

The Company records the present value of estimated costs of legal and constructive obligations related to mine rehabilitation and restoration in the period in which the obligation occurs. Mine rehabilitation and restoration activities include: facility decommissioning and dismantling; removal and treatment of waste materials; site and land rehabilitation, including compliance with and monitoring of environmental regulations; and related costs required to perform this work and/or operate equipment designed to reduce or eliminate environmental effects. The provision is adjusted each period for new disturbances, and changes in regulatory requirements, the estimated amount of future cash flows required to discharge the obligation, the timing of such cash flows and the pre-tax discount rate specific to the liability. The unwinding of the discount is recognized in profit or loss as interest expense.

When the provision is initially recognized, the corresponding cost is capitalized by increasing the carrying amount of the related asset, and is amortized to profit or loss on a unit-of-production basis. Changes to estimated future costs are recognized in the consolidated balance sheet by either increasing or decreasing the rehabilitation asset and liability. Any reduction in the rehabilitation liability and therefore any deduction from the rehabilitation asset may not exceed the carrying amount of that asset. If it does, any excess over the carrying value is taken immediately to income.

**Other provisions**

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation as at the balance sheet date. If the effect of the time value of money is material, provisions are discounted using a current discount rate that reflects the time value of money and the risks specific to the liability.

**Leases**

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company assesses whether the contract involves the use of an identified asset, whether the right to obtain substantially all of the economic benefits from use of the asset during the term of the arrangement exists, and if the Company has the right to direct the use of the asset. At inception or on reassessment of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of their relative standalone prices.

As a lessee, the Company recognizes a right-of-use asset and a lease liability at the commencement date of a lease. The right of-use asset is initially measured at cost, which is comprised of the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any decommissioning and restoration costs, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the lease term, or the end of the useful life of the asset. In addition, the right-of-use asset may be reduced due to impairment losses, if any, and adjusted for certain re-measurements of the lease liability.

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

A lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by the interest rate implicit in the lease, or if that rate cannot be readily determined, the incremental borrowing rate. Lease payments included in the measurement of the lease liability are comprised of:

● fixed payments, including in-substance fixed payments, less any lease incentives receivable;

● variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

● amounts expected to be payable under a residual value guarantee;

● exercise prices of purchase options if the Company is reasonably certain to exercise that option; and

● payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, or if there is a change in the estimate or assessment of the expected amount payable under a residual value guarantee, purchase, extension or termination option. Variable lease payments not included in the initial measurement of the lease liability are charged directly to profit or loss.

The Company has elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The lease payments associated with these leases are charged directly to profit or loss on a straight-line basis over the lease term.

**Financial instruments**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Financial assets** 

Financial assets are initially recorded at fair value and after initial recognition are either measured at amortized cost or at fair value, as fair value through profit or loss ("FVTPL") or at fair value through other comprehensive income ("FVOCI") as either certain debt instruments or certain equity instruments. Financial assets classified as FVTPL are measured at fair value with unrealized gains and losses recognized through operations.

Financial assets are classified and subsequently measured at amortized cost based on meeting the following criteria of (i) hold to collect business model test – the asset being held within a business model whose objective is to hold the financial asset in order to collect contractual cash flows and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) solely payments of principal and interest ("SPPI") contractual cash flow characteristics test – the contractual terms of the financial asset give rise to cash flow that are SPPI on the principal amount outstanding on a specified date.

Transactions costs associated with FVTPL financial assets are expensed as incurred, while transaction costs associated with all other financial assets are included in the initial carrying amount of the asset.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Financial liabilities** 

All financial liabilities are initially recorded at fair value and designated upon inception as either at amortized cost or at FVTPL. Financial liabilities are measured at amortized cost unless either the financial liability is held for trading and is therefore measured at FVTPL, or the Company elects to measure the financial liability at FVTPL.

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Classification** 

The Company has classified financial assets and liabilities as follows:

---

| | |
|:---|:---|
| **Asset/Liability** | **Category/Measurement** |
| <br>Cash | Amortized cost |
| Trade receivables | Amortized cost |
| <br>Trade receivables related to provisional pricing | FVTPL |
| Recoverable taxes receivable | Amortized cost |
| Prepaid expenses and other current assets | Amortized cost |
| Amortized cost Accounts payable and accrued liabilities | Amortized cost |
| <br> Long-term debt | Amortized cost |
| Derivative liabilities related to long-term debt | FVTPL |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** **Compound Financial Instruments** 

The Company evaluates the terms of its financial instruments to determine whether they are compound financial instruments containing a liability and equity component. Such components are classified separately by their nature as either financial liabilities or equity instruments. The initial carrying amounts of the financial liability component of a compound financial instrument is recognized at the fair value of a similar financial liability that does not have an equity component and the residual value is allocated to equity component. Transaction costs related to compound financial instruments are allocated between liability and equity components in proportion to their initial carrying amounts. Liability components are subsequently measured at amortized cost using the effective interest method. Equity components are not re-measured subsequent to initial recognition. On conversion or expiry, the equity component is transferred to share capital or contributed surplus as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)** **Derivative financial instruments** 

From time to time, the Company holds derivative financial instruments to mitigate risks related to changes in commodity prices or to change the interest rates of its loans and borrowings. Embedded derivatives are separated from the host contract and accounted for separately if certain criteria are met.

Derivatives are initially recognized at their fair value and the attributable transaction costs are recognized in profit or loss when incurred. After initial recognition, derivatives are measured at fair value and their changes are recorded in profit or loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)** **Embedded derivatives** 

Derivatives may be embedded in other financial instruments (the "host instrument"). Embedded derivatives are treated as separate derivatives when their economic characteristics and risks are not clearly and closely related to those of the host instrument, the terms of the embedded derivative are the same as those of a stand-alone derivative, and the combined contract is not held for trading or designated at fair value. These embedded derivatives are measured at fair value with subsequent changes recognized in gains or losses on derivative instruments in the statement of operations and comprehensive loss.

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

**Impairment of assets**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Financial assets** 

The Company recognizes an allowance for expected credit losses ("ECLs") for financial instruments not held at fair value through profit or loss. Expected losses are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognized in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a "12-month ECL"). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a "lifetime ECL").

For trade receivables (not subject to provisional pricing) and other receivables due in less than 12 months, the Company applies the simplified approach in calculating expected credit losses, as permitted by IFRS 9 Financial Instruments. Therefore, the Company does not track changes in credit risk, but instead, recognizes a loss allowance based on the financial asset's lifetime expected credit loss at each reporting date.

The Company considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, the Company may also consider a financial asset to be in default when internal or external information indicates that the Company is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Company. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows and usually occurs when past due for more than one year and not subject to enforcement activity.

At each reporting date, the Company assesses whether financial assets carried at amortized cost are credit-impaired. A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Non-financial assets** 

At each reporting date, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is an indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). For purposes of impairment testing, assets are grouped at the lowest levels that generate cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the "cash-generating unit").

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Fair value less costs to sell is the amount obtainable from the sale of the asset in an arm's length transaction between knowledgeable and willing parties, less the costs of disposal.

If the recoverable amount of an asset (or cash-generating unit ("CGU")) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss.

Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment charge is reversed through profit or loss only to the extent that the asset or cash generating unit's carrying amount does not exceed the carrying amount that would have been determined, net of any applicable depreciation, if no impairment loss had been recognized.

**Share capital**

Common shares are classified as shareholders' equity. Incremental costs directly attributable to the issuance of common shares are recognized as a deduction from equity. Common shares issued for consideration other than cash, are valued based on their market value at the date the shares are issued.

The Company uses the "fixed for fixed" criteria per International Accounting Standard ("IAS") *32 Financial Instruments: Presentation* with respect to the measurement of shares and warrants issued as private placement units ("Units"). Units issued that pass the "fixed for "fixed" criteria are accounted for as an equity instrument using relative value and those that do not are accounted for as a derivative financial liability per IAS 32.

The Company issues Chess Depository Interests ("CDIs") on the ASX. Each CDI represents a unit of beneficial interest which can be exchanged for one common share of the Company any time.

The common shares and the Company's Common Share purchase warrants, incentive stock options, RSUs and CDIs are classified as equity instruments.

**Revenue recognition**

The Company is principally engaged in the business of producing WO<sub>3</sub> Concentrate.

Revenue from contracts with customers is recognized when control of the goods or services is transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.

The Company has concluded that it is the principal in its revenue contracts because it typically controls the goods or services before transferring them to the customer.

For most WO<sub>3</sub> Concentrate sales, the enforceable contract is a long-term supply agreement. For the remaining W0<sub>3</sub> Concentrate sales, the enforceable contract is each purchase order, which is an individual, short-term contract.

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

Revenue from the sale of WO<sub>3</sub> Concentrate is recognized when control has been transferred to the purchaser. The significant risks and rewards of ownership are deemed to be transferred to the purchaser generally when product is physically transferred onto a third-party vessel, train, ship or other delivery mechanism, depending on the mode of transport, and the Company has paid all costs of shipping, freight and insurance to the destination specified by the purchaser.

**Income taxes**

Current income tax assets and liabilities are estimated as the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date in the countries where Almonty and its subsidiaries operate and generates taxable income. Current income tax is recognized in profit or loss except for income taxes relating to items recognized directly in other comprehensive income or equity, in which case the related current tax is also recognized in other comprehensive income or equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions, where appropriate.

Deferred income tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred income tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the tax laws that have been enacted or substantively enacted by the reporting date. Deferred income tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity. Deferred income tax is not recognized for the initial recognition of assets or liabilities in a transaction that is not a business combination and that effects neither accounting nor taxable income or loss, differences related to investments in subsidiaries to the extent that it is probable that they will not reverse in the foreseeable future and taxable differences arising from the initial recognition of goodwill.

A deferred income tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred income tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

**Income (loss) per share**

Income (loss) per share is based on the weighted average number of common shares outstanding for the period.

Diluted income (loss) per common share is calculated by adjusting the weighted average number of common shares outstanding for the effect of conversion of all potentially dilutive common share equivalents, such as stock options and warrants, and assumes that the receipt of proceeds upon exercise of the options are used to repurchase common shares at the average market price during the period. The net effect of the common shares issued less the common shares assumed to be repurchased is added to the basic weighted average common shares outstanding. For convertible instruments, the common shares to be included in the diluted per common share calculation assumes that the instrument is converted at the beginning of the period (or the issue date if later). The profit or loss attributable to common shareholders is adjusted to eliminate related interest costs recognized in profit or loss for the period.

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

In a period when the Company reports a loss, the effect of potential issuances of common shares under options and warrants outstanding would be anti-dilutive and, therefore basic and diluted loss and comprehensive per common share are the same.

**Employee Benefits**

Short-term employee benefit obligations are recognized as personnel expenses as the corresponding service is provided. Liabilities are recognized at the amount that is expected to be paid if the Company has a present legal or constructive obligation to pay that amount based on past services rendered by the employee, and the obligation can be estimated reliably.

**Share-based payment transactions**

Employees, directors and service providers of the Company may receive a portion of their compensation in the form of share-based payments.

Share-based payments to non-employees are recognized based on the fair value of the services received. If the fair value of the goods or services received cannot be reliably estimated, share-based payments are measured based on the fair value of the equity instruments. Share-based payments to employees are recognized based on the fair value of the equity instruments issued.

The cost of share-based payments is measured by reference to the fair value of the equity instrument at the date on which they are granted and are recognized, together with a corresponding increase in contributed surplus, over the period in which the performance and/or service conditions are fulfilled which typically is the date on which the relevant employees become fully entitled to the award (vesting period). The cumulative expense recognized reflects the Company's best estimate of the number of equity instruments that will ultimately vest. No expense is recognized for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition, which are treated as vesting irrespective of whether or not the market condition is satisfied provided that all other performance or service conditions are satisfied.

**Restricted share unit transactions**

Restricted share units ("RSU's") entitle certain employees to receive common shares of the Company at the end of the applicable vesting period, which is usually three years in length. The fair value of the RSUs granted is measured based on the market value at the grant date.

**Acquisitions, business combinations and goodwill**

At the time of acquisition, the Company determines whether what is acquired meets the definition of a business, in which case, the transaction is considered a business combination, and otherwise it is recorded as an asset acquisition.

For an asset acquisition, the fair value of the consideration paid is allocated to the net identifiable assets and liabilities acquired based on their relative fair values at the acquisition date. Acquisition related costs are included in the consideration paid and capitalized. No goodwill is recorded and no deferred tax asset or liability arising from the assets acquired or liabilities assumed are recognized upon the acquisition of the assets.

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at the acquisition date fair value, and the amount of any non-controlling interest acquired. The Company measures the non-controlling interest in the acquiree either at fair value or at the proportionate share of the acquiree's identifiable net assets which is determined on a transaction-by-transaction basis. Acquisition costs incurred are expensed and included in general and administrative expenses.

Any contingent consideration is recognized at fair value at the acquisition date. If an obligation to pay contingent consideration that meets the definition of a financial instrument is classified as equity, then it is not re-measured and settlement is accounted for within equity. Otherwise, other contingent consideration is re-measured at fair value at each reporting date and changes in the fair value of the contingent consideration are recognized in profit or loss.

Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interest over the fair value of the net identifiable assets acquired and liabilities assumed. If this consideration is lower than the fair value of the net identifiable assets of the subsidiary acquired, the difference is recognized in profit or loss.

4. Inventories

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br> **2024** | **December 31,**<br> **2023** |
| Stores and fuel | **5613** | 4841 |
| Ore and in-processore | **996** | 2455 |
| Finished goods - WO<sub>3</sub> concentrate | **129** | 536 |
| **Current inventories** | **6738** | 7832 |
| Tailings | **30982** | 30355 |
| **Total inventories** | **37720** | 38187 |

---

Changes in inventories and impairment charges and reversal of impairment charges are recognized in mine operating costs. As at December 31, 2024, tailings inventories are classified as long term as these inventories may not be processed within the next year.

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

5. Mining assets

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | | **Exploration and** | |
|  | | | **Evaluation** | |
|  |<br>**Plant and**<br>**Equipment** | **Mineral Property**<br>**Acquisition and**<br>**Development**<br>**Costs** | **Projects** | **Total** |
| **Cost** |  |  |  |  |
| Balance at December 31, 2022 | 45906 | 133201 | 8123 | 187230 |
| Additions | 19761 | 24063 | 77 | 43901 |
| Change in restoration provisions |  | (9836) |  | (9836) |
| Asset disposals | (4745) |  |  | (4745) |
| Translation adjustment | (696) | (4201) | 94 | (4803) |
| Balance at December 31, 2023 | 60226 | 143227 | 8294 | 211747 |
| **Additions** | **20033** | **22291** | **126** | **42450** |
| **Change in restoration provisions** | **-** | **579** | **-** | **579** |
| **Asset disposals** | **(2723)** | **-** | **-** | **(2723)** |
| **Translation adjustment** | **(1247)** | **(4140)** | **172** | **(5215)** |
| **Balance at December 31, 2024** | **76289** | **161957** | **8592** | **246838** |
| **Accumulated Amortization** |  |  |  |  |
| Balance at December 31, 2022 | 12227 | 36292 |  | 48519 |
| Amortization | 1396 |  |  | 1396 |
| Asset disposals | (3402) |  |  | (3402) |
| Translation adjustment | 22 | (469) | - | (447) |
| Balance at December 31, 2023 | 10243 | 35823 |  | 46066 |
| **Amortization** | **1498** | **(9)** | **-** | **1489** |
| **Asset disposals** | **(1649)** | **-** | **-** | **(1649)** |
| **Translation adjustment** | **98** | **(1032)** | **-** | **(934)** |
| **Balance at December 31, 2024** | **10190** | **34782** | **-** | **44972** |
| **Carrying Value** |  |  |  |  |
| Balance at December 31, 2023 | 49983 | 107404 | 8294 | 165681 |
| **Balance at December 31, 2024** | **66099** | **127175** | **8592** | **201866** |

---

6. Impairment Loss on Mining Assets

 

*Los Santos mine*

No indicators of impairment or reversal of impairment existed as at December 31, 2024 (December 31, 2023 – none).

*Sangdong mine*

No indicators of impairment or reversal of impairment existed as at December 31, 2024 (December 31, 2023 – none).

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

7. Accounts Payable and Accrued Liabilities

The balance as of December 31, 2024 includes $18,469 (December 31, 2023 - $19,667) of trade accounts payable and $10,677 (December 31, 2023 - $11,802) of accrued liabilities.

8. Long-Term Debt

---

| | | |
|:---|:---|:---|
| | **December 31,**<br>**2024** | **December 31,**<br>**2023** |
| Term and other loans - Euro (a) | **24486** | 4323 |
| Term and other loans - US dollar (b) | **8634** | 28634 |
| Promissory Note (b) | **250** | 250 |
| Convertible debentures (c) | **27872** | 32620 |
| Lease liabilities (d) | **210** | 117 |
| Mine Construction Facility (e) | **106876** | 77051 |
|  | **168328** | 142995 |
| Less: Current portion | **(21894)** | (34167) |
|  | **146434** | 108828 |
| Fair value of derivative liabilities (c) | **1121** | 491 |
| Deferred financing costs | **(11427)** | (13419) |
|  | **136128** | 95900 |

---

&nbsp;&nbsp;&nbsp;&nbsp;a) Term and other loans – EURO

The Company's wholly-owned Spanish subsidiary, Daytal, has Euro-denominated term loan facilities totaling $1,807 (December 31, 2023 - $2,738). The loans are unsecured, have a maturity date of July 2028 (December 31, 2023 – July 2025) and require monthly payments of principal and interest. Of the loans, $60 (December 31, 2023 - $349) have fixed interest rates with a weighted average interest rate as at December 31, 2024 of 1.50% (December 31, 2023 – 4.44%). The remaining $1,747 (December 31, 2023 - $2,388) have floating interest rates, based on varying spreads from Euribor rates. As of December 31, 2024, the weighted average interest rate on these loans was 6.30% (December 31, 2023 – 5.07%).

VRS has a Euro-denominated term loan with a balance of $758 as of December 31, 2024 (December 31, 2023 - $1,150). The loan is unsecured, bears interest at 3.75% (December 31, 2023 - 3.75%), with monthly payments of principal and interest until it matures in July 2025 (December 31, 2023 - in July 2025).

&nbsp;&nbsp;&nbsp;&nbsp;b) Term and other loans – US dollar

During September 2019, the Company restructured its debt with the UniCredit Bank AG such that the then-existing term and revolving loans, with a total principal amount of approximately US$13,716, was rolled into a new restated term loan with a principal amount of $19,841 (US$15,650). The restated term loan bore interest at the prevailing LIBOR rate plus 1.5% per annum, with interest payable quarterly and with principal repayable at maturity. The maturity date for the restated term loan was October 31, 2021 (extended to March 31, 2024 during the year ended December 31, 2023).

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

During April, 2024, the Company refinanced the Unicredit loan with the KfW IPEX-Bank, with a total principal amount of EUR$14,662. This new loan bears interest at the prevailing EURIBOR rate plus 1.9% per annum, with interest payable quarterly and with principal repayable at the maturity date of March 31, 2027.

The Company has issued two US$1,000 secured promissory notes in 2017 to Deutsche Rohstoff AG ("DRAG"), an existing shareholder of the Company, both of which had a maturity date of September 30, 2025 (extended to October 31, 2026 during fiscal 2024). The notes bear interest at 6.0% per annum, with the accrued interest due on the maturity date. The loans are secured by a pledge of the shares of Woulfe. As at December 31, 2024, the outstanding loan balance was $2,878 (US$2,000) (December 31, 2023 - $2,645 (US$2,000)).

During December 2019, the Company received $250 from DRAG pursuant to a promissory loan which bears interest at the rate of 6% per annum which had a maturity date of September 30, 2025 (extended to October 31, 2026 during fiscal 2024).

During January 2020, the Company received $1,320 (US$1,000) from DRAG pursuant to a promissory loan (increased to $3,960 (US$3,000) during fiscal 2022) which bears interest at the rate of 6% per annum and matures during September 2025 (extended to October 31, 2026 during fiscal 2024).

During December 2021, the Company received $1,270 (US$1,000) from DRAG pursuant to a promissory loan which bears interest at the rate of 5% per annum with and which had a maturity date of September 30, 2025 (extended to October 31, 2026 during fiscal 2024).

&nbsp;&nbsp;&nbsp;&nbsp;c) Convertible Debentures

The following convertible debentures are outstanding as of December 31, 2024:

Changes in the balances of the convertible debentures for the year ended December 31, 2024 and 2023 are summarized as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2024** | **Decembe 31, <br>2023** |
| Balance, beginning of year | **32620** | 33211 |
| Debentures issued, liability component | **-** | 11577 |
| Debentures settled for shares | **(5963**) |  |
| Debentures refinanced | **-** | (8894) |
| Debentures repaid, including interest | **-** | (2975) |
| Debentures revalued, warrant liability component | **-** | (474) |
| Interest accrued | **240** | 230 |
| Translation adjustment | **975** | (55) |
| Balance, end of year | **27872** | 32620 |

---

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) On December 18, 2018, the Company completed a non-brokered private
placement of an unsecured convertible debenture with a principal amount of $2,000, which debenture was acquired by DRAG. The debenture
had a maturity date of September 30, 2025 (extended to October 31, 2026 during fiscal 2024) and bears interest at a rate of 6.0% per
annum, payable at maturity. The Company may elect to convert the debenture into common shares upon the availability to the Company of
full funding for the Sangdong Project at a conversion price equal to the higher of the price per common share in any equity financing
completed by the Company after the date of issuance of the debenture and prior to the conversion or the maturity date of the debentures
for purposes of financing the Sangdong Project and $0.628. However, the Company may not convert the debenture if at any time the Company's
common shares trade below $0.628 per common share or if such conversion would result in DRAG holding more than 19.9% of the Company's
issued and outstanding common shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) On January 30, 2018, the Company issued a convertible debenture
as part of a debt restructuring with a principal amount of $5,963, with a maturity date of October 31, 2024. The debenture was convertible
into common shares of Almonty at $0.90 per common share. The debenture bears interest at a rate of 6.0% per annum, compounding quarterly,
payable on the earlier of the maturity date or the date of conversion. The debenture was subject to covenants customary for such facilities
and the lender had nominated a member of the Board of Directors. During the year ended December 31, 2024, this debenture, plus related
accrued interest, was converted into 10,249,605 common shares of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company has a $6,000 (December 31, 2022 - $6,000) unsecured
convertible debenture outstanding with DRAG, which bears interest at 4.0% per annum, payable at maturity. The debenture (including any
accrued and unpaid interest) may be converted by the holder, at its option, into common shares of the Company at an exercise price of
$1.45 per share. The maturity date of the loan was September 30, 2024, which was extended to October 31, 2026 during fiscal 2024, with
all other terms remaining unchanged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) During March 2020, the Company received $2,680 (US$2,000) pursuant
to the issuance of a convertible debenture which bears interest at the rate of 7%, is convertible at US$0.50 per common share with a
maturity date of October 31, 2025 (extended to October 31, 2026 during the year ended December 31, 2024). As the convertible debenture
is denominated in USD, the instrument contains an embedded derivative liability. The total liability (principal and embedded derivative)
is capped at the face value of the instruments that were issued. The embedded derivative liability, as at December 31, 2024, was valued
using the Black-Scholes Option Pricing Model assuming an expected life of 1.83 years, expected dividend yield of 0%, a risk-free interest
rate of 2.93% and an expected volatility of 53.23%. Accordingly, the Company recognized a loss on valuation of the derivative liability
in the amount of $106 for the year ended December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) During July 2020, the Company completed a non-brokered private
placement of a secured convertible bond in the principal amount of $4,592 (EUR3.0 million). This secured convertible bond matured
on July 13, 2023, and bore interest at a rate of 10% per annum, payable semi- annually, in cash. (see refinancing details in Note 8(c)(xi)).

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) During February, 2021, the Company completed a non-brokered
private placement of an unsecured convertible bond in the principal amount of $2,288 (EUR1,500). This unsecured convertible bond matured
on February 8, 2024, and bore interest at a rate of 10% per annum, payable semi-annually, in cash. (see refinancing details in Note 8(c)(xi)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) During June 2021, the Company completed a non-brokered private
placement of an unsecured convertible bond in the principal amount of $3,088 (EUR2,100). This unsecured convertible bond matured on March
31, 2023, and bore interest at a rate of 5% per annum, payable semi-annually, in cash. This convertible debenture was repaid during March
2023. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) During November 2021, the Company completed a non-brokered private
placement of four unsecured convertible bonds in the principal amounts of $2,302 (EUR1,600) (see refinancing details in Note 8(c)(xi)),
$1,268 (US$1,000), $144 (EUR100), and $190 (US$150), respectively. These unsecured convertible bonds matured on October 31, 2024 (subsequently
extended to October 31, 2025 during fiscal 2024), and bear interest at a rate of 5% per annum, payable semi- annually, in cash. The outstanding
principal amount of the bonds plus any related unpaid accrued interest is convertible into common shares of the Company at the option
of the holder at the fixed conversion price of EUR0.70 per share, US$0.85 per share, $1.05 per share and US$0.83 per share, respectively,
for the principal and at the conversion price of the greater of i) EUR0.70 (equivalent to $1.05) and ii) the EURO equivalent of the volume
weighted average price of the common shares of the Company on the TSX for the five trading days immediately preceding the date of conversion
for related accrued interest. As the convertible debentures are denominated in EURO and USD, the instruments contain embedded derivative
liabilities. The total liability (principal and embedded derivative) is capped at the face value of the instruments that were issued.
The embedded derivative liability, as at December 31, 2024, was valued using the Black- Scholes Option Pricing Model assuming an expected
life of 1.83 years, expected dividend yield of 0%, a risk-free interest rate of 2.93% and an expected volatility of 53.23%. Accordingly,
the Company recognized a loss on valuation of the derivative liabilities in the amount of $31 for the year ended December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) During February 2022, the Company received $1,900 (US$1,500)
pursuant to the issuance of a convertible debenture which bears interest at the rate of 5% (amended to 7% during fiscal 2024), is convertible
at US$0.83 per share (amended to US$0.50 per share during fiscal 2024) and matured October 31, 2024 (extended to October 31, 2026 during
fiscal 2024). As the convertible debenture is denominated in USD, the instrument contains an embedded derivative liability. The total
liability (principal and embedded derivative) is capped at the face value of the instruments that were issued. The embedded derivative
liability, as at December 31, 2024, was valued using the Black-Scholes Option Pricing Model assuming an expected life of 1.83 years,
expected dividend yield of 0%, a risk-free interest rate of 2.93% and an expected volatility of 53.23%. The total liability (principal
and embedded derivative) is capped at the face value of the instruments that were issued. Accordingly, the
Company recognized a loss on valuation of the derivative liability in the amount of $30 for the year ended December 31, 2024.

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) During June 2022, the Company received $1,288 (US$1,000) pursuant
to the issuance of a convertible debenture which bears interest at the rate of 7%, is convertible at US$0.84 per share and matures June
7, 2025. As the convertible debenture is denominated in USD, the instrument contains an embedded derivative liability. The embedded derivative
liability, as at December 31, 2024, was valued using the Black-Scholes Option Pricing Model assuming an expected life of 0.43 years,
expected dividend yield of 0%, a risk-free interest rate of 2.93% and an expected volatility of 53.23%. The total liability (principal
and embedded derivative) is capped at the face value of the instruments that were issued. Accordingly, the Company recognized a gain
on valuation of the derivative liability in the amount of $3 for the year ended December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) During September 2023, the Company completed the restructuring
of three convertible loans with a total principal balance of EUR6,100 (Notes 8(c)(v), 8(c)(vi) and 8(c)(viii), plus one bond with a principal
balance of EUR 1,377 (Note 8(a)), with maturity dates ranging between July 2023 and June, 2025, into one new convertible debenture totaling
EUR7,900, This new debenture is convertible into common shares of the Company at EUR0.35 per share, bears interest at the rate of 9%
per annum (payable quarterly), and maturing September 15, 2025. As this convertible debenture is denominated in EURO, the instrument
contains an embedded derivative liability. As a result, the Company allocated $11,180 to the liability component and $477 to the derivative
liability on issuance. The embedded derivative liability, on issuance, was valued using the Black- Scholes Option Pricing Model assuming
an expected life of 1.85 years, expected dividend yield of 0%, a risk-free interest rate of 4.56% and an expected volatility of 69.51%.
The embedded derivative liability, as at December 31, 2024, was valued using the Black-Scholes Option Pricing Model assuming an expected
life of 0.71 years, expected dividend yield of 0%, a risk-free interest rate of 2.93% and an expected volatility of 53.23%. The total
liability (principal and embedded derivative) is capped at the face value of the instruments that were issued. Accordingly, the Company
recognized a loss on valuation of the derivative liability in the amount of $476 for the year ended December 31, 2024.

The Company's term loans and convertible debentures include various positive and negative covenants as well as cross-default clauses which could cause several defaults in the event the Company is in default on any of its loan agreements. As of December 31, 2024, the Company was in compliance with all covenants under its term loans and convertible debentures.

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

d) Lease Liabilities

The capital leases relate to certain equipment and vehicles. The leases carry implied interest rates of between 4.06% and 6.46% (December 31, 2023 – 2.69% and 7.63%).

e) Mine Construction Loan Facility

During July 2022, the Company completed a US$75.1 million senior secured term loan facility with KfW for the financing and construction of the Sangdong Project and received US$10,640 during July 2024 (Previous years: US$55,780) in conjunction with the seventh and eighth drawdowns on this loan facility. The loan bears interest at the rate of SOFR plus 2.3%, capitalized quarterly, with repayment of principal quarterly over a 6.25-year period commencing six months subsequent to commencement of the mine's ramp-up period.

Payments are due under the terms of the Company's loans and leases for each of the following years ending December 31:

---

| | |
|:---|:---|
| 2025 | 22092 |
| 2026 | 44979 |
| 2027 | 41400 |
| 2028 | 18530 |
| 2029 | 41528 |
|  | 168529 |
| Less: Unamortized discount | (176) |
| Less: Imputed interest on capital lease obligations | (25) |
|  | 168328 |

---

**Debt Continuity**

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br> **2024** | **December 31,**<br> **2023** |
| Balance, beginning of year | **142995** | 105871 |
| Cash flows  |  |  |
| &nbsp;&nbsp;&nbsp;Issuance of debt | **43643** | 54085 |
| &nbsp;&nbsp;&nbsp;Scheduled debt repayments | **(23608)** | (3735) |
| Non-cash changes  |  |  |
| &nbsp;&nbsp;&nbsp;Refinancing | **-** | (10449) |
| &nbsp;&nbsp;&nbsp;Conversion of debt with shares | **(5963)** |  |
| &nbsp;&nbsp;&nbsp;Accrued interest | **326** | 303 |
| &nbsp;&nbsp;&nbsp;Amount reclassified to warrant liability | **-** | (474) |
| &nbsp;&nbsp;&nbsp;Translation adjustment and other | **10935** | (2606) |
| Balance, end of year | **168328** | 142995 |
| Fair value of derivative liability | **1121** | 491 |
|  | **169449** | 143486 |

---

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

9. Restoration Provision and Other Liabilities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Included in other long-term liabilities are provisions for the
future restoration of the Company's mining properties, in accordance with local requirements, as follows:

---

| | |
|:---|:---|
| Balance at December 31, 2022 | 38289 |
| Revisions in estimated cash flows and changes in assumptions | (16230) |
| Accretion expense | 496 |
| Translation adjustment | 266 |
| Balance at December 31, 2023 | 22821 |
| **Revisions in estimated cash flows and changes in assumptions** | **579** |
| **Accretion expense** | **495** |
| **Translation adjustment** | **396** |
| **Balance at December 31, 2024** | **24291** |

---

As at December 31, 2024, there is a restoration provision of $20,122 (December 31, 2023 - $20,627) with respect to the Panasqueira Mine, representing management's estimate of the present value of the rehabilitation costs relating to the mine site which are estimated to total $23,694 and are to be incurred after the mine ceases production subsequent to 2045. BTW has assumed an inflation rate of 2.0% per year in calculating its estimates and a discount rate of 0.35%.

There is a restoration provision of $1,008 (December 31, 2023 - $988) with respect to Daytal's future obligation to restore and reclaim the mine once it has ceased the processing of tungsten from the Los Santos Mine. The restoration provision represents management's estimate of the present value of the rehabilitation costs relating to the mine site which are estimated to total $982 and are to be incurred beginning in 2027 after Daytal ceases processing operations. Daytal has used a 5.5% discount rate and assumes an inflation rate of 2% per year in calculating its estimates. The Company has filed, and is awaiting final approval of its mine plan and restoration provision by the relevant authorities in Spain. Banco Popular has posted a bank warranty of $269 (€180) on behalf of Daytal with the Region of Castilla y Leon, Trade and Industry Department as a form of deposit to cover the expected costs of restoring the mining property as required by Daytal's Environmental Impact Statement that forms a part of its mining and exploitation license on the Los Santos Mine.

There is a restoration provision of $3,161 (December 31, 2023 - $1,205) with respect to the Woulfe properties. The provision was determined based on a levy imposed by the relevant local government authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Included in other long-term liabilities is $575 (December 31,
2023 - $436) related to employee benefit obligations in respect of government mandated pension plans in Woulfe's Korean subsidiary
and in BTW.

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

10. Share Capital

**Common Shares**

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Number of**<br> **Shares** | **Amount**<br> **$** |
| **Authorized - Unlimited number of common shares** |  |  |  |
| **Issued and outstanding** |  |  |  |
| <br> Outstanding at December 31, 2022 |  | 215980494 | 119383 |
| Shares issued for cash |  | 13217321 | 5051 |
| Shares issued on conversion of long-term debt |  | 4643609 | 2917 |
| Shares issued on exercise of warrants |  | 47244 | 8 |
| Outstanding at December 31, 2023 |  | 233888668 | 127359 |
| **Shares issued for cash** |  | **18389119** | **8320** |
| **Shares issued for settlement of debt** |  | **2813785** | **1572** |
| **Shares issued for conversion of debt** | &nbsp;&nbsp;**Note 8(c)(ii)** | **10329251** | **9265** |
| **Outstanding at December 31, 2024** |  | **265420823** | **146516** |

---

During January 2023, the Company issued 2,500,000 CDI's, for proceeds totaling $1,820 (AUD $2,000), in conjunction with the closing of a non-brokered private placement. Each unit is comprised of one CDI and one warrant, with each warrant enabling the holder to acquire one additional common share with an exercise price of AUD $1.25, expiring December 31, 2024. The warrants were initially valued at $568 and subsequently revalued at December 31, 2024 at $617 (December 31, 2023 - $80).

During March 2023, the Company issued 4,861,111 CDI's for proceeds totaling $3,185 (AUD $3,500), in conjunction with the closing of a non-brokered private placement. Each unit is comprised of one CDI and one warrant, with each warrant enabling the holder to acquire one additional common share with an exercise price of AUD $1.25, and expired December 31, 2024. The warrants were initially value at $578 and subsequently revalued at December 31, 2024 at $1,201 (December 31, 2023 $156).

During November 2023, the Company received $2,645 in conjunction with the closing of an unbrokered financing through the issuance of 4,777,777 placement units and 1,078,433 placement Chess depository interest units at Cdn$0.45 per placement unit, US$0.33 per placement unit and AUD0.51 per CDI unit. Each placement unit participant will be issued one warrant for every common share issued and one free unlisted option for every one CDI issued, exercisable at Cdn$0.60, US$0.45 and AUD0.69, respectively, with an expiry date of 36 months from the date of closing.

During January 2024, the Company issued 10,329,251 common shares as settlement of a debt of $9,265.

During February 2024, the Company issued 2,583,316 common shares as settlement of a debt of $1,395.

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

During March to May 2024, the Company issued 5,354,172 common share units for proceeds totalling $2,945 in conjunction with the closing of a non-brokered private placement. Each unit is comprised of one common share and one warrant, with each warrant enabling the holder to acquire one additional common share with an exercise price of $0.74, expiring two years from the date of issuance. The warrants were valued at $651 using the weighted average fair value. The fair value of the warrants was determined using the Black-Scholes Option Pricing Model using the following assumptions: Risk-free rate – 4.17% - 4.25%; expected volatility – 57.00% - 58.15%; expected life – 2 years; dividend rate – nil.

During March to May 2024, the Company issued 6,451,613 CDI units for proceeds totaling $3,548 in conjunction with the closing of a non-brokered private placement. Each unit is comprised of one CDI and one warrant, with each warrant enabling the holder to acquire one additional common share with an exercise price of AUD $0.84, expiring two years from date of issuance. The warrants were valued at $1,024 using the weighted average fair value. The fair value of the warrants was determined using the Black-Scholes Option Pricing Model using the following assumptions: Risk-free rate – 4.17% - 4.23%; expected volatility – 57.03% - 61.66%; expected life – 2 years; dividend rate – nil.

During December 2024, the Company issued 2,000,000 common share units for proceeds totalling $1,640 in conjunction with the closing of a non-brokered private placement. Each unit is comprised of one common share and one warrant, with each warrant enabling the holder to acquire one additional common share with an exercise price of $1.14, expiring three years from the date of issuance. The warrants were valued at $386 using the weighted average fair value. The fair value of the warrants was determined using the Black-Scholes Option Pricing Model using the following assumptions: Risk-free rate – 2.97%; expected volatility – 53.65%; expected life – 3 years; dividend rate – nil.

During December 2024, the Company issued 4,583,334 CDI units for proceeds totalling $3,677 in conjunction with the closing of a non-brokered private placement. Each unit is comprised of one CDI and one warrant, with each warrant enabling the holder to acquire one additional common share with an exercise price of AUD $1.25, expiring three years from the date of issuance. The warrants were valued at $1,140 using the weighted average fair value. The fair value of the warrants was determined using the Black-Scholes Option Pricing Model using the following assumptions: Risk-free rate – 2.90%; expected volatility – 53.38%; expected life – 3 years; dividend rate – nil.

During December 2024, the Company issued 230,469 common shares as settlement of a debt of $177.

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

**Warrants**

As at December 31, 2024, the outstanding warrants, all of which are exercisable, are summarized as follows:

---

| | |
|:---|:---|
|  | **Number of Warrants** |
| Warrants outstanding at December 31, 2022 | 3257137 |
| Warrants issued | 13217321 |
| Warrants exercised | (47244) |
| Warrants outstanding at December 31, 2023 | 16427214 |
| **Warrants issued** | **18389119** |
| **Warrants expired** | **(8075396)** |
| **Warrants outstanding at December 31, 2024** | **26740937** |

---

---

| | | | |
|:---|:---|:---|:---|
| <br>**Exercise Prices** |<br>**Number**<br>**Outstanding** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Weighted**<br> **Average**<br>&nbsp;&nbsp;&nbsp;&nbsp;**Remaining**<br> **Contractual**<br>**Life** | <br>**Weighted**<br>**Average**<br> **Exercise**<br>**Price** |
| $0.45 - $0.69 | 5856210 | 1.83 | $0.56 |
| $0.70 - $0.99 | 12505785 | 1.24 | $0.75 |
| $1.00 - $1.21 | 8378942 | 2.44 | $1.12 |
|  | **26740937** | **1.75** | $**0.82** |

---

**Incentive Stock Options**

Under Almonty's stock option plan, the Company can grant options to directors, officers, employees and consultants for up to 10% of the issued and outstanding common shares of the Company. Under the plan, the exercise price of an option may not be less than the closing market price during the trading day immediately preceding the date of the grant of the option, less any applicable discount allowed by the TSX. Options can be granted for a maximum term of ten years and vest at the discretion of the Company's Board of Directors. The existing plan was re-approved by Almonty's shareholders at its Annual and Special Meeting of Shareholders held on June 30, 2022.

As of December 31, 2024, the outstanding options, all of which are exercisable, are summarized as follows:

---

| | |
|:---|:---|
|  | **Number of <br> Share Options** |
| Options outstanding at December 31, 2022 | 14775000 |
| Options granted | 2600000 |
| Options expired | (300000) |
| Options outstanding at December 31, 2023 | 17075000 |
| **Options granted** | **5705000** |
| **Options forfeited** | **(1000000)** |
| **Options outstanding at December 31, 2024** | **21780000** |

---

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

---

| | | | |
|:---|:---|:---|:---|
| <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>**Range of Exercise Prices** |<br>**Number**<br> **Outstanding** | **Weighted Average**<br>**Remaining**<br> **Contractual Life** | **Weighted Average**<br>**Exercise**<br> **Price** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$0.33 - $0.59 | 5825000 | 3.65 | $0.47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$0.60 - $0.79 | 5980000 | 4.04 | $0.66 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$0.80 - $1.23 | 9975000 | 2.45 | $0.87 |
|  | **21780000** | **3.21** | $**0.71** |

---

During November 2023, the Company granted 2,600,000 share options to directors, officers, employees and consultants of the Company pursuant to the Company's stock option plan. The options vested immediately and are exercisable for a period of five years from the grant date at $0.52 per common share. The grant resulted in the recording of share-based compensation expense of $774. The value of the stock options granted was determined using the Black-Scholes option pricing model using a risk-free interest rate of 3.81%, volatility of 64.34% based on historical volatility, expected life of 5 years, and no expected dividend yield.

During January 2024, the Company granted 1,000,000 share options to employees and consultants of the Company pursuant to the Company's stock option plan. The Options vested immediately and are exercisable for a period of five years from the grant date at $0.56 per common share. The grant resulted in the recording of share-based compensation expense of $312. The value of the stock options granted was determined using the Black-Scholes option pricing model using a risk-free interest rate of 3.32%, volatility of 62.99% based on historical volatility, expected life of 5 years, and no expected dividend yield.

During May 2024, the Company granted 1,275,000 share options to employees and consultants of the Company pursuant to the Company's stock option plan. The Options vested immediately and are exercisable for a period of five years from the grant date at $0.56 per common share. The grant resulted in the recording of share-based compensation expense of $312. The value of the stock options granted was determined using the Black-Scholes option pricing model using a risk-free interest rate of 3.32%, volatility of 62.99% based on historical volatility, expected life of 5 years, and no expected dividend yield.

During July 2024, the Company granted 3,030,000 share options to employees and consultants of the Company pursuant to the Company's stock option plan. The Options vested immediately and are exercisable for a period of five years from the grant date at $0.66 per common share. The grant resulting in the recording of share-based compensation expense of $1,104. The value of the stock options granted was determined using the Black-Scholes option pricing model using a risk-free interest rate of 3.49%, volatility of 61.75% based on historical volatility, expected life of 5 years, and no expected dividend yield.

During August 2024, the Company granted 200,000 share options to employees and consultants of the Company pursuant to the Company's stock option plan. The Options vested immediately and are exercisable for a period of five years from the grant date at $0.685 per common share. The grant resulting in the recording of share-based compensation expense of $86. The value of the stock options granted was determined using the Black-Scholes option pricing model using a risk-free interest rate of 2.98%, volatility of 61.38% based on historical volatility, expected life of 5 years, and no expected dividend yield.

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

During November 2024, the Company granted 200,000 share options to employees and consultants of the Company pursuant to the Company's stock option plan. The Options vested immediately and are exercisable for a period of five years from the grant date at $0.81 per common share. The grant resulting in the recording of share-based compensation expense of $98. The value of the stock options granted was determined using the Black-Scholes option pricing model using a risk-free interest rate of 3.10%, volatility of 61.51% based on historical volatility, expected life of 5 years, and no expected dividend yield.

**Restricted Share Units**

RSUs granted under the Company's RSU Plan to employees vest in thirds at the end of each year from the date of grant and are convertible into shares on a 1:1 basis. RSU's issued were valued based on the value of the underlying shares at the date of issuance.

---

| | |
|:---|:---|
| Transactions related to RSUs are summarized as follows: |  |
|  | **Number of RSUs** |
| Units, December 31, 2022 | 1300000 |
| Units granted | 450000 |
| **Units outstanding at December 31, 2023** | **1750000** |
| **Units granted** | **2100000** |
| **Units outstanding at December 31, 2024** | **3850000** |

---

During November 2023, the Company granted 450,000 RSU's to directors of the Company pursuant to the Company's RSU plan. The value of the RSU's granted was based on the value of the underlying shares at the date of issuance. The grant resulted in the recording of share-based compensation expense of $133 for the year ended December 31, 2024.

During July 2024, the Company granted 2,100,000 RSU's to directors of the Company pursuant to the Company's RSU plan. The value of the RSU's granted was based on the value of the underlying shares at the date of issuance. The grant resulted in the recording of share-based compensation of $415 during the year ended December 31, 2024.

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

11. Income Taxes

The major components of income tax expense for the year ended December 31, 2024 and 2023 are:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2023** | **2023** |
| Tax expense applicable to:  |  |  |  |  |
| Current |  | 133 |  | 67 |
| Deferred | | 239 | | - |
| Income tax expense | | 372 | | 67 |

---

A reconciliation between income tax recovery and the product of accounting loss multiplied by the Company's domestic tax rates for the year ended December 31, 2024 and 2023 are as follows:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| **Loss before income taxes** | (15926) | (8770) |
| Combined federal and provincial income tax rates | 27% | 27% |
| Expected income tax recovery at statutory rates | (4300) | (2368) |
| Permanent differences and other | 3008 | 764 |
| Changes in temporary differences not recognized | 976 | 733 |
| Foreign tax rate differential | 688 | 938 |
| Income tax expense | 372 | 67 |

---

The enacted or substantively enacted tax rates for the Company are 27% in Canada (2023 – 27%), 20% in Spain (2023 – 21%), 22% in Portugal (2023 – 22%) and 21% in Korea (2023 – 22%). The rates applied in the tax provision are based on where the Company's principal subsidiaries operate.

---

| | | |
|:---|:---|:---|
| Recognized deferred income tax assets and liabilities relate to the following: | Recognized deferred income tax assets and liabilities relate to the following: | Recognized deferred income tax assets and liabilities relate to the following: |
|  | **2024** | **2023** |
| Non-capital losses (Portugal) | 2204 | 2384 |
| Other assets (Portugal) | 160 | 167 |
| Other (Spain) | (14) | (14) |
|  | 2350 | 2537 |
| **Opening balance** | 2537 | 2501 |
| Tax expense during period recognized in net income after tax | (239) |  |
| Impact of change in currency exchange rates | 52 | 36 |
| **Closing balance** | 2350 | 2537 |

---

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

Deferred tax assets for the following temporary differences have not been recognized in the consolidated financial statements:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2023** | **2023** |
| Inventory |  | 2225 |  | 2180 |
| Restoration provision |  | 11797 |  | 8507 |
| Capital losses |  | 36633 |  | 36633 |
| Non-capital losses |  | 129189 |  | 109026 |
| Other | | 1,614 | | 1,534 |
|  | | 181,458 | | 157,880 |

---

Based on the Company's estimates for future taxable income and available taxable temporary differences, the Company concluded that it is not probable that all of the benefits of the above unrecognized temporary differences will be realized. Accordingly, the related deferred tax assets have not been recognized.

The Company has the following non-capital tax losses that expire in the years indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Canada | Spain | Portugal | Korea |
|  | **CAD** | **EUR** | **EUR** | **CAD** |
| 2025 | 2092 |  |  |  |
| 2026 | 3625 |  |  |  |
| 2027 | 2260 |  |  |  |
| 2028 | 1974 |  |  | 39 |
| 2029 |  | 286 |  | 24 |
| 2030 | 16 |  |  | 1790 |
| 2031 | 473 |  |  | 1772 |
| 2032 or later | 57974 | 18341 | 7384 | 29344 |
| Non-Capital losses in local currency | 68413 | 18627 | 7384 | 32969 |
| **Non-Capital losses in CAD** | **68413** | **27806** | **11023** | **32969** |
| **Total Non-Capital losses in CAD** |  |  |  | **140211** |

---

12. Employee Compensation

The Company incurred costs of $25,354 with respect to the costs of employee compensation and benefits for the year ended December 31, 2024 (year ended December 31, 2023 - $15,963).

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

13. Segment Information

The Company's operations are segmented on a regional basis and are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker who is responsible for allocating resources and assessing performance of the operating segments has been defined as the Chief Executive Officer.

Management monitors the business of the Company as a single commodity segment, whose operations relate to the exploration and mining of tungsten across three geographical locations; the Iberian Peninsula (Spain and Portugal), Australia (2018), and the Republic of Korea.

For management reporting purposes, the Company is organized into business units based on its products and activities, and has four reportable operating segments, as follows:

● The Los Santos Mine located in Spain whose operations relate to the exploration and mining of tungsten that is ultimately sold as tungsten concentrate;

● The Panasqueira Mine located in Covilha Castelo Branco, Portugal whose operations relate to the exploration and mining of tungsten which is ultimately sold as tungsten concentrate, as well as the production of copper and tin concentrate by-products that are sold as concentrate;

● The Valtreixal Project located in Spain whose operations relate to the exploration and evaluation activities of the Valtreixal tin/tungsten project; and

● Woulfe, whose properties are located in Gangwon Province, Republic of Korea, and whose operations relate primarily to the development of the Sangdong Project.

The Company monitors the operating results of its operating segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on income (losses) from mining operations and is measured consistently with income (losses) from mining operations in the consolidated financial statements.

The accounting policies used by the Company in reporting segments internally are the same as those contained in Note 3.

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

Segmented information for the year ended December 31, 2024 and 2023 is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Year ended December, 31, 2024** | **Los Santos** | **Valtreixal** | **Woulfe** | **Panasquiera** | **Corporate** | **Consolidated** |
| Revenue |  |  | 26 | 28810 |  | 28836 |
| Production costs |  |  |  | 24679 |  | 24679 |
| Care and maintenance costs | 1067 |  |  |  |  | 1067 |
| Depreciation and amortization | 21 | - | - | 1099 | - | 1120 |
| **(Loss) earnings from mining operations** | (1088) |  | 26 | 3032 |  | 1970 |
| **Expenses** |  |  |  |  |  |  |
| General and administrative | 927 | 22 | 14 | 2060 | 3130 | 6153 |
| Share-based compensation |  |  |  |  | 2734 | 2734 |
| Interest expense  | 88 | 8 |  |  | 4472 | 4568 |
| Loss on valuation of embedded derivative liabilities |  |  |  |  | 630 | 630 |
| Loss on valuation of warrant liabilities |  |  |  |  | 2032 | 2032 |
| Foreign exchange (gain) loss | (27) | 9 | (756) | (195) | 2748 | 1779 |
| **(Loss) income before income taxes** | (2076) | (39) | 768 | 1167 | (15746) | (15926) |
| **Capital expenditures** | - | 126 | 44033 | 1572 | - | 45731 |
| **As at December 31, 2024** |  |  |  |  |  |  |
| **Assets** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Current | 1101 | 117 | 6111 | 7976 | 5271 | 20576 |
| &nbsp;&nbsp;&nbsp;Non-current | 31397 | 8592 | 168942 | 26842 | - | 235773 |
| **Total Assets** | 32498 | 8710 | 175052 | 34818 | 5271 | 256349 |
| **Total Liabilities** | 3845 | 1728 | 107209 | 26799 | 77695 | 217276 |
| **As at December 31, 2023** |  |  |  |  |  |  |
| **Assets** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Current | 1171 | 47 | 24888 | 9655 | 479 | 36240 |
| &nbsp;&nbsp;&nbsp;Non-current | 30782 | 8294 | 131577 | 28441 | - | 199094 |
| **Total Assets** | 31953 | 8341 | 156466 | 38096 | 479 | 235334 |
| **Total Liabilities** | 4992 | 2086 | 74610 | 27800 | 77338 | 186826 |

---

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Year ended December, 31, 2023** | **Los Santos** | **Valtreixal** | **Woulfe** | **Panasquiera** | **Corporate** | **Consolidated** |
| Revenue |  |  |  | 22510 |  | 22510 |
| Production costs |  |  |  | 19328 |  | 19328 |
| Care and maintenance costs | 1022 |  |  |  |  | 1022 |
| Depreciation and amortization | 19 | - | - | 1058 | - | 1077 |
| **Earnings (loss) from mining operations** | (1041) |  |  | 2124 |  | 1083 |
| **Expenses** |  |  |  |  |  |  |
| General and administrative | 672 | 6 | (8) | 2183 | 2963 | 5816 |
| Share-based compensation |  |  |  |  | 1141 | 1141 |
| Interest expense | 179 |  |  |  | 4126 | 4305 |
| Financing fees |  |  |  |  | 739 | 739 |
| Gain on valuation of embedded derivative liabilities |  |  |  |  | (432) | (432) |
| Gain on valuation of warrant liabilities |  |  |  |  | (1227) | (1227) |
| Foreign exchange loss (gain) | (10) | 4 | (425) | 609 | (667) | (489) |
| **Income (loss) before income taxes** | (1882) | (10) | 433 | (668) | (6643) | (8770) |
| **Capital expenditures** | 8 | 77 | 36965 | 2069 | - | 39119 |

---

Information by geographical region is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Revenue** | **Revenue** | **Non-current Assets** | **Non-current Assets** |
| <br>**Country** | **Year ended December 31,**<br>**2024** | **Year ended December 31,**<br>**2023** | **December 31,**<br>**2024** | **December 31,**<br>**2023** |
| &nbsp;&nbsp;&nbsp;Portugal | 28810 | 22510 | 27359 | 28441 |
| &nbsp;&nbsp;&nbsp;Spain |  |  | 39989 | 39076 |
| &nbsp;&nbsp;&nbsp;South Korea | 26 | - | 168942 | 131577 |
| **Total** | 28836 | 22510 | 236290 | 199094 |

---

14. Financial Instruments, and Financial Risk Management Objectives
and Policies

Fair Value Hierarchical Levels

Fair value hierarchical levels are directly determined by the amount of subjectivity associated with the valuation inputs of these assets and liabilities, and are as follows:

---

| | |
|:---|:---|
| Level 1 - | &nbsp;&nbsp; Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. |
| Level 2 - | &nbsp;&nbsp; Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument's anticipated life. |

---

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

 

Level 3 - Inputs reflect management's best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to determining the estimate.

The carrying value of cash, trade receivables and accounts payable and accrued liabilities approximates their fair value due to their short terms to maturity. The accounts receivable associated with provisional pricing arrangements are a level 2 fair value estimate and are valued based upon observable WO<sub>3</sub> forward prices as of the reporting date. The fair value of long-term debt is a level 2 fair value estimate and is not materially different from the carrying value based on current market rates of interest, or interest rates set at relatively short time intervals.

Financial Risk Management Objectives and Policies

The Company's principal financial instruments comprise cash deposits and long-term debt.

The main purpose of these instruments is to provide cash flow funding for the operations of Almonty and its subsidiaries. The Company has various other financial assets and liabilities such as trade receivables and trade payables, which arise directly from operations.

The main risks arising from the Company's financial instruments are interest rate risk, foreign currency risk, credit risk and liquidity risk.

 

*Interest rate risk*

The Company'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 the long-term debt, $130,986 is subject to floating interest rates and $37,608 is subject to fixed interest rates. A portion of the floating rate debt totaling $24,110 is subject to a fixed spread over the 6- and 12-month Euro Interbank Offered Rate ("Euribor") rates. A change of 100 basis points (1%) in the rates would result in a $241 change in annual interest costs. The remaining floating rate debt of $106,876 is based on a fixed spread over the 3-month SOFR rate. A change of 100 basis point (1.0%) in the 3-month SOFR rate would result in a $1,069 change in annual interest costs.

 

*Foreign currency risk*

 

Daytal and BTW, operate in Spain and Portugal, respectively, both of which use Euros (€) as their functional currency. Their output is a commodity that is primarily priced in United States 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. Almonty's functional currency is the Canadian dollars but it advances funds to subsidiaries in the functional currency of the subsidiary to which funds are advanced. As such, the Company's consolidated balance sheet and profit or loss can be significantly affected by movements in various currencies (CAD$, US$, € and KRW).

The Company's Canadian dollar functional currency businesses have the following financial instruments denominated in foreign currencies:

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

 

---

| | | |
|:---|:---|:---|
|  | **Currency** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Carrying**<br> **Value ($)** |
| Cash and cash equivalents | US $| 48 |
| Accounts payable and accrued liabilities | US $| 8149 |
| Accounts payable and accrued liabilities | AUS $| 378 |
| Accounts payable and accrued liabilities | KRW | 7770 |
| Long-term debt | US $| 123637 |
| Long-term debt | EURO € | 33898 |

---

A 5% change in the value of the CAD$ relative to the above currencies would change net income for the year ended December 31, 2024 by approximately $8,674.

The Company's Euro functional currency businesses have the following financial instruments denominated in foreign currencies:

---

| | | |
|:---|:---|:---|
|  | **Currency** | &nbsp;&nbsp;&nbsp;&nbsp;**Carrying**<br> **Value ($)** |
| Cash and cash equivalents | US$ | 330 |
| Trade receivables | US$ | 522 |

---

A 5% change in the value of the Euro relative to the above currencies would change net income for the year ended December, 2024 by approximately $43.

The Company's Korean Won functional currency businesses have the following financial instruments denominated in foreign currencies:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Currency** | &nbsp;&nbsp;&nbsp;&nbsp;**Carrying**<br> **Value ($)** |
| Accounts payable and accrued liabilities | US$ |  | 1849 |
| Long-term debt | US$ |  | 106876 |

---

A 5% change in the value of the Korean Won relative to the above currencies would change net income for the year ended December 31, 2024 by approximately $5,436.

*Credit risk*

 

The Company deposits surplus cash with major banks of high-quality credit standing, in interest bearing accounts that earn interest at floating rates. Trade receivables represent amounts receivable related to delivery of concentrate that have not been settled and are with the Company's customers, all of whom have good credit ratings and the Company has not experienced any credit issues with any of its customers. Other assets are deposits. The carrying value of the cash and cash equivalents, trade receivables and deposits totals $11,129 and represents the Company's maximum exposure to credit risk.

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

*Liquidity risk*

The Company's objective is to use cash and cash equivalents, finance leases, and third party short and long-term loans (see Note 8 for debt maturities) and equity in order to maintain liquidity. The Company's policy is to maximize liquidity in order to enable the continued development of the mines and operations of the plants and to enable the development of its projects. All financial liabilities with a contractual term of 12 months or less are classified as current. The Company is currently pursuing debt and equity financing opportunities to increase its liquidity. In addition to the items presented below, the Company has a mine reclamation liability of $23,625 payable at the end of mining activities. Contractual undiscounted cash flow requirement for financial liabilities as at December 31, 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Less than**<br> **1 year** | **1-2 years** | **3-4 years** | **After**<br> **5 years** | **Total** |
| Accounts payable and accrued liabilities | 29146 |  |  |  | 29146 |
| Term and other loans - Euro | 591 | 23659 | 501 |  | 24751 |
| Term and other loans - US dollar |  | 8883 |  |  | 8883 |
| Convertible debentures | 13597 | 14475 |  |  | 28072 |
| Lease liabilities | 52 | 113 | 45 |  | 210 |
| Mine Construction Facility | 7852 | 39513 | 34734 | 24777 | 106876 |

---

15. Capital Management

The primary objective of the Company's capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value. The Company manages its capital structure (composed of shareholders' equity and net debt) and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, Almonty may initiate dividend payments to shareholders, return capital to shareholders, repurchase issued shares or issue new shares. Almonty is not exposed to any externally imposed capital requirements.

16. Commitments and Contingent Liabilities

Daytal owns the Los Santos Mine, near the town of Los Santos, Salamanca in western Spain. Daytal rents the land where the Los Santos Mine is located from local property owners and municipalities. The leases range from 10 to 25 years and have expiry dates in 2032. On all leases greater than 10 years, Daytal has the right to terminate the leases under certain circumstances without penalty. Annual lease commitments total approximately $393 payable throughout the year on the anniversary dates of the individual leases.

The mining license for the Los Santos Mine was granted in September 2002 for a period of 30 years and is extendable for 90 years. Daytal pays minimal land taxes and there are no other royalty payments associated with the license. The Company files applications in the ordinary course to renew the permits associated with its mining license that it deems necessary and/or advisable for the continued operation of its business. Certain of the Company's permits to operate that are associated with the mining license are currently under application for renewal.

**Almonty Industries Inc.**

**Notes to the Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

(In 000's of Canadian dollars, unless otherwise noted)

The Company's operations are subject to other claims and lawsuits from time to time, including any claims related to suppliers, employees or other parties. However, these are not expected to result in a material impact on the financial statements.

17. Related Party Transactions

For the year ended December 31, 2024, the Company paid or accrued compensation to key management personnel, which includes the Company's Chief Executive Office, Chief Financial Officer and members of the Company's Board of Directors totaling $1,354 (2023 - $1,318).

The Company has long-term debt owing to DRAG, a company that is an existing shareholder of Almonty, and whose former CEO is a member of the Board of Directors of the Company. In addition to the transactions disclosed in notes 8(b) and 8(c), interest of $856 was accrued on the DRAG loans during the year ended December 31, 2024 (2023 - $820). As of December 31, 2024, there is $5,139 (December 31, 2023 - $4,283) of unpaid interest on these loans included in accounts payable and accrued liabilities.

18. Subsequent Events

Subsequent to December 31, 2024, the Company entered into the following transactions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Issued 1,852,000 common share units and 10,833,333 CDI units
for proceeds totaling $10,847.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Issued 75,000 common shares in conjunction with the exercise of stock options for proceeds totaling $34.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Issued 1,717,975 CDIs in conjunction with the exercise of CDI Options for proceeds totaling $1,660.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Received $1,299 (US$906) in conjunction with the ninth drawdown on the KfW IPEX- Bank loan facility (Note
8(e)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Issued 100,000 common shares of the Company for settlement of debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) Granted stock options enabling the holders to acquire up to 1,122,000 common shares with exercise prices
ranging from $1.195 to $1.915 per share, expiring five years from issuance.

## Exhibit 4.3

**Exhibit 4.3**

Management's Discussion and Analysis

Years Ended December 31, 2024 and 2023

REPORT DATED: March 20, 2025

![](ex4-3_002.jpg)

Management's Discussion and Analysis

Year Ended December 31, 2024

Dated: March 20, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

1. Introduction

This management's discussion and analysis ("**MD&A**"), dated March 20, 2025, provides a review of, and discusses the financial position and results of operations of, Almonty Industries Inc. (TSX: AII) and (ASX:AII) ("**Almonty**" or the "**Company**") for the year ended December 31, 2024. It should be read in conjunction with the audited annual consolidated financial statements of the Company and notes thereto for the year ended December 31, 2024 (the "**2024 Annual Financial Statements**").

**Dual Listing**

On August 2, 2021, the Company, by way of an Initial Public Offering, received gross proceeds totaling AUD 15.25 million in conjunction with a listing on the Australian Securities Exchange ("ASX").

**KfW IPEX-Bank — Sangdong Mine Project Financing**

During July 2022, the Company completed the US$75.1 million Project Financing Facility with the KfW IPEX-Bank ("KfW"). During August 2022, the Company received the first drawdown of US$12.8 million from KfW with a second drawdown of US$4.1 million having been received during August, 2022, a third drawdown of US$9.8 million received during November, 2022, a fourth drawdown of $US$5.6 million received during April, 2023, a fifth drawdown of US$9.8 million received during August 2023, a sixth drawdown of US$13.68 million received in November 2023, a seventh drawdown of US$5.01 million received in July 2024, an eighth drawdown of US$5.63 million received in July 2024 and a final drawdown of US$906 received in January 2025.

**Highlights**

*During the year ended December 31, 2024, the following transactions occurred:*

 

1) the Company received $6,493 in conjunction with the closing of an unbrokered financing through the issuance of 5,354,172 placement units and 6,451,613 placement Chess depository interest units at Cdn$0.55 per placement unit and AUD0.62 per CDI unit Each placement unit participant will be issued one warrant for every common share issued and one free unlisted option for every one CDI issued, exercisable at Cdn$0.74 and AUD0.84, respectively, with an expiry date of 24 months from the date of closing;

2) the Company issued 10,249,605 common shares in conjunction with the conversion of a convertible debenture, plus related accrued interest, totaling $9,225 with a conversion price of Cdn$0.90 per share;

3) the Company issued 2,583,316 common shares of the Company to settle debt of $1,395;

Page **\|** 2

![](ex4-3_002.jpg)

Management's Discussion and Analysis

Year Ended December 31, 2024

Dated: March 20, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

4) the Company made application to extend the expiry date of 700,000 share purchase warrants, which received both TSX and shareholder approvals;

5) the Company negotiated the extension of the maturity dates of two convertible loans totaling $4,640 from October 31, 2024 to October 31, 2025;

6) the Company granted stock options enabling the holder to acquire up to 1,000,000 common shares with an exercise price of $0.56 per share, expiring January 9, 2029;

7) the Company completed the refinancing of the Unicredit Bank US$15,650 term loan with a term loan in the amount of EUR14,661 with the KfW IPEX-Bank ("KfW"), thus extending the maturity date of this loan from March 31, 2024 to March 31, 2027;

8) the Company granted stock options enabling the holder to acquire up to 1,000,000 common shares with an exercise price of $0.63 per share, expiring April 30, 2029;

9) the Company received US$10.64 million in conjunction with the seventh and eighth drawdowns on the KfW loan facility;

10) the Company granted 3,030,000 stock options with an exercise price of $0.66 per share, expiring July 4, 2029 and granted 1,700,000 RSUs at $0.66 per share; and

11) the Company received $5,317 in conjunction with the closing of an unbrokered financing through the issuance of 2,000,000 placement units and 4,583,334 placement Chess depository interest units at Cdn$0.82 per placement unit and AUD0.90 per CDI unit. Each placement unit participant will be issued one warrant for every common share issued and one free unlisted option for every one CDI issued, exercisable at Cdn$1.14 and AUD1.25, respectively, with an expiry date of 36 months from the date of closing;

*Subsequent to December 31, 2024, the Company entered into the following transactions:*

1) Issued 1,852,000 common share units and 10,833,333 CDI units for proceeds totaling $10,847;

2) Issued 75,000 common shares in conjunction with the exercise of stock options for proceeds totaling $34;

3) Issued 1,717,975 CDIs in conjunction with the exercise of CDI Options for proceeds totaling $1,660;

Page **\|** 3

![](ex4-3_002.jpg)

Management's Discussion and Analysis

Year Ended December 31, 2024

Dated: March 20, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

4) Received $1,299 (US$906) in conjunction with the ninth drawdown on the KfW IPEX- Bank loan facility (Note 8(e));

5) Issued 100,000 common shares of the Company for settlement of debt; and

6) Granted stock options enabling the holders to acquire up to 1,122,000 common shares with exercise prices ranging from $1.195 to $1.915 per share, expiring five years from issuance.

The Company's management is responsible for the preparation of the Company's consolidated financial statements as well as other information contained in this MD&A. The board of directors of Almonty (the "**Board of Directors**") is required to ensure that management assumes its responsibility in regard to the preparation of the Company's financial statements. To facilitate this process, the Board of Directors has created an audit committee (the "**Audit Committee**"). The Audit Committee meets with members of the management team to discuss the operating results and the financial results of the Company, before making their recommendations and submitting the 2024 Annual Financial Statements and MD&A to the Board of Directors for review and approval. Following the recommendation of the Audit Committee, the Company's Board of Directors approved the 2024 Annual Financial Statements and this MD&A on March 15, 2025.

The 2024 Annual Financial Statements have been prepared in accordance with International Financial Reporting Standards ("**IFRS**").

All currency figures in this MD&A appear in thousands of Canadian dollars, except per share amounts, unless otherwise stated.

Additional information about the Company, including the 2024 Annual Financial Statements, is available on the Company's website at www.almonty.com and on SEDAR (www.sedarplus.ca) under Almonty's profile.

**Forward-Looking Information**

This MD&A contains forward-looking statements that reflect management's expectations, estimates and projections concerning future events in relation to the Company's business and the economic environment in which it operates. Forward-looking statements may include, but are not limited to, statements with respect to possible acquisitions, demand for tungsten, tungsten prices, tungsten recovery and production, reductions in operating and unit production costs, improvements in efficiencies or reduction in dilution, future remediation and reclamation activities, future mineral exploration, the estimation of mineral reserves and mineral resources, the realization of mineral reserve and mineral resource estimates, the timing of activities and the amount of estimated revenues and expenses, the success of exploration activities, permitting time lines, the success of mine development and construction activities, the success of future mine operations, the success of other future business operations, requirements for additional capital and sources and uses of funds. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "anticipates", "plans", "estimates", "intends", "strategy", "goals", "objectives" or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be "forward-looking statements".

Page **\|** 4

![](ex4-3_002.jpg)

Management's Discussion and Analysis

Year Ended December 31, 2024

Dated: March 20, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events, results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the inability of the Company to maintain its interest in its mineral projects or to obtain or comply with all required permits and licenses, risks normally incidental to exploration and development of mineral properties, uncertainties in the interpretation of drill results, the possibility that future exploration, development or mining results will not be consistent with expectations, changes in governmental regulation adverse to the Company, lack of adequate infrastructure at the mineral properties, economic uncertainties, the inability of the Company to obtain additional financing when and as needed, competition from other mining businesses, the future price of tungsten and other metals and commodities, fluctuation in currency exchange rates, title defects and other related matters. See Section 7 in this MD&A and under the heading "Risk Factors" in the Company's Annual Information Form dated March 30, 2022 for a further discussion of factors that could cause the Company's actual results, performance or achievements to be materially different from any anticipated results, performance or achievements expressed or implied by forward-looking statements. The forward-looking statements in this MD&A represent the expectations of management as of the date hereof and accordingly, are subject to change after such date. Readers should not place undue importance on forward-looking statements and should not rely upon these statements as of any other date. The Company does not undertake to update any forward-looking information, except as, and to the extent, required by applicable laws. The forward- looking statements contained herein are expressly qualified by this cautionary statement.

A glossary of terms is affixed to the last page of this MD&A. Capitalized terms used but not otherwise defined herein have their respective meanings ascribed thereto in the glossary of terms.

2. Overview

Almonty is a publicly traded company listed on the Toronto Stock Exchange (the "**TSX**"), under the symbol "AII" and listed on the Australian Securities Exchange (the "ASX"), under the symbol "AII". The principal business of Almonty is the mining, processing and shipping of tungsten concentrate from the Los Santos tungsten mine located near Salamanca, Spain (the "**Los Santos Mine**"), the processing and shipping of tungsten concentrate from the Panasqueira tin and tungsten mine in Covilha, Castelo Branco, Portugal (the "**Panasqueira Mine**"), as well as the development of the Sangdong tungsten mine project located in Gangwon Province, Republic of Korea (the "**Sangdong Mine**") and the evaluation of the Valtreixal tin and tungsten mine project located in Western Spain in the province of Zamora (the "**Valtreixal Mine**").

The Los Santos Mine was acquired by Almonty in September 2011 and is located approximately 50 kilometers from Salamanca in western Spain and produces tungsten concentrate. The Panasqueira Mine, which has been in production since 1896 and is located approximately 260 kilometers northeast of Lisbon, Portugal, was acquired in January 2016. The Sangdong Mine, which was historically one of the largest tungsten mines in the world and one of the few long-life, high-grade tungsten deposits outside of China, was acquired by Almonty in September 2015. Almonty also owns a 100% interest in the Valtreixal Mine in northwestern Spain, having exercised its option to acquire the remaining ownership in the Valtreixal Mine on December 21, 2016.

Page **\|** 5

![](ex4-3_002.jpg)

Management's Discussion and Analysis

Year Ended December 31, 2024

Dated: March 20, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

During February 2020, the Company made the decision to put the Los Santos Mine on care and maintenance so as to allow the Company to focus its efforts on finalizing the proposed project financing for the Sangdong Mine and to assess and complete a restructuring initiative that will involve an approximate EUR 1 million capital expenditure expected to lead to a significant increase in the recovery rate of WO3 from the processing of the Company's tailings inventory.

On June 4, 2015, Almonty acquired an 8% interest in Woulfe Mining Corp. ("**Woulfe**") and, through the acquisition of convertible debentures in Woulfe, gained control over Woulfe with the ability to nominate a majority of the board members. On July 7, 2015, Almonty and Woulfe entered into an arrangement agreement (the "**Arrangement Agreement**") in respect of the acquisition by Almonty of all of the issued and outstanding shares of Woulfe that it did not already own by way of a plan of arrangement under the *Business Corporations Act* (British Columbia) (the "**Plan of Arrangement**"). On August 21, 2015, Woulfe shareholders approved the Plan of Arrangement. On September 10, 2015, Almonty completed the Plan of Arrangement and acquired all of the shares of Woulfe that it did not already own, leading to Almonty having a 100% ownership interest in Woulfe. The principal asset of Woulfe is the Sangdong Mine.

On January 6, 2016, Almonty acquired 100% of the issued and outstanding shares of Beralt Ventures Inc. ("**BVI**") from Sojitz Tungsten Resources Inc. for €1.00. In connection therewith, Almonty acquired and purchased €12,260 in aggregate principal amount of debt owed by Beralt Tin & Wolfram (Portugal), S.A. ("**Beralt"**), a wholly-owned subsidiary of BVI, to Sojitz Corporation of Japan in exchange for a cash payment of €1,000 on closing and a promissory note issued by Almonty in the principal amount of €500, bearing interest at 4% per annum, maturing December 29, 2017 (paid) (the "**January 2016 Note**"). BVI, through its wholly owned subsidiaries, is the 100% owner of the Panasqueira Mine.

On December 21, 2016, Almonty exercised its option to acquire the remaining 49% of the Valtreixal Mine it did not already own for payment of €1.5 million ($2.2 million). Almonty now owns a 100% interest in the Valtreixal Mine.

During June 2020, the Company received, from the Municipality of Pedralba de la Paraderia in Spain, a new land classification for its Valtreixal Property whereby the property is now deemed to be suitable for extraction activity. The Company's Valtreixal Property is located approximately 250 kilometers from the Company's wholly-owned Los Santos Mine in Spain.

This new land classification will now allow the Company to complete the mining permitting process and to move forward with the completion of an open-pit mine plan for the property.

Further information about the Company's activities may be found at www.almonty.com and under the Company's profile at <u>www.sedar.com</u>

Page **\|** 6

![](ex4-3_002.jpg)

Management's Discussion and Analysis

Year Ended December 31, 2024

Dated: March 20, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

**Market for Tungsten Concentrate**

Market demand for tungsten concentrate continued to be stable from the first quarter of fiscal 2023 and through to Q4-2024. The current average Spot APT price is approximately US$352 per MTU which falls in line with several forecasting services having already projected prices to reach or exceed US$310 per MTU of APT by Q4-2024. Management expects that the limited quantities of "spot" concentrate available in the market will help with continued price improvement in the near to mid-term.

The average of the high and low weekly quoted price for European APT according to the Metal Bulletin ("**MB**") European weekly quotation for APT (from which Almonty's concentrate prices are derived by the formulae under its Supply Agreements) averaged the following:

---

| | | | |
|:---|:---|:---|:---|
| Three Months ended | Tungsten APT European <br>Average High - Low <br>US$/MTU | Year ended | Tungsten APT European <br>Average High - Low <br>US$/MTU |
| 31-Dec-19 | $242 | 31-Dec-19 | $253 |
| 31-Mar-20 | $236 |  |  |
| 30-Jun-20 | $224 |  |  |
| 30-Sep-20 | $213 |  |  |
| 31-Dec-20 | $228 | 31-Dec-20 | 225 |
| 31-Mar-21 | $274 |  |  |
| 30-Jun-21 | $275 |  |  |
| 30-Sep-21 | $306 |  |  |
| 31-Dec-21 | $322 | 31-Dec-21 | 294 |
| 31-Mar-22 | $340 |  |  |
| 30-Jun-22 | $349 |  |  |
| 30-Sep-22 | $340 |  |  |
| 31-Dec-22 | $323 | 31-Dec-22 | 338 |
| 31-Mar-23 | $335 |  |  |
| 30-Jun-23 | $328 |  |  |
| 30-Sep-23 | $315 |  |  |
| 31-Dec-23 | $314 |  | $323 |
| 31-Mar-24 | $316 |  |  |
| 30-Jun-24 | $348 |  |  |
| 30-Sep-24 | $335 |  |  |
| 31-Dec-24 | $333 | 31-Dec-22 | $333 |
| 18-Mar-25 | $350 |  |  |

---

Source: Metal Bulletin, ammonium para tungstate (APT), European (US$/MTU).

Almonty prices its tungsten concentrate product (on volumes of material that are not subject to a fixed price contract) in relation to the prior month's average weekly quoted price for APT on the MB European quotation service and the Metal Pages pricing service.

Page **\|** 7

![](ex4-3_002.jpg)

Management's Discussion and Analysis

Year Ended December 31, 2024

Dated: March 20, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

**Los Santos Mine, Spain**

The Company changed its mine plan at Los Santos, whereby it ceased further mining of ore and commenced processing of its tailing during Q3 of the 2019 fiscal year.

During February 2020, management implemented a planned closure of Los Santos' operations by placing it into care and maintenance. This was done for two main reasons: 1) The Company is planning to re-open operations in early-2025 once it has finalized plans to modify the plant's infrastructure, through a EUR one million capital expenditure, which is expected to result in significantly higher recovery rates from the future processing of its tailings inventory; and 2) the Company intends to use the short-term freed-up capital to assist with finalizing the Sangdong Mine's project financing.

**Panasqueira Mine, Portugal**

Almonty acquired the Panasqueira Mine on January 6, 2016.

Between Q3 2019 and Q2 2021, management at Panasqueira determined that it would mine certain ore with a lower grade so as to enable work to be done to ensure that access to ore with the usual higher grade will be accessible into the future. The tungsten recovery rate continued to improve during Q 2021 to Q3 2024 when compared to Q4 2020 and is now in line with the expected average tungsten recovery rate for the life of mine.

Almonty continued its focus on cost reduction and all-in production costs at Panasqueira continued to decrease. Mined grades continued to improve throughout Fiscal 2021 and into Q3 2024 as expected under the revised mine plan implemented by Almonty since its acquisition in January 2016. Mined grades in Q3 2024 continued to show improvement in the content of by-product payable metals as well (copper and tin) which are improving the overall cash flow profile of the mining operation.

Panasqueira is a poly-metallic wolframite deposit as opposed to a skarn deposit scheelite mine like Los Santos. Tungsten recovery rates for wolframite deposits are typically higher than for scheelite deposits. The Panasqueira Mine has some of the highest tungsten recovery rates in the industry, consistently averaging 80%.

Almonty anticipates that the grades of ore mined will continue trending towards the long-term average of the remaining life of mine of 0.185% (see NI 43-101 technical report on the Panasqueira Mine dated December 31, 2016 filed on SEDAR under Almonty's profile, also available on the Company's website <u>www.almonty.com</u>) through the refinement of the life of mine plan. The expected increased grades are continuing to have an impact on the level of production currently being experienced and the increase in contained tungsten is also having a positive impact on unit costs as at the date of this MD&A.

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Management's Discussion and Analysis

Year Ended December 31, 2024

Dated: March 20, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

**Valtreixal Project, Spain**

During Q1 2017, Almonty exercised its option to acquire the remaining 49% interest in the project for a payment of €1.5 million ($2.2 million) in December 2016, a reduction of €0.75 million ($1.1 million) from the previously agreed price, resulting in a much-needed saving of capital on the acquisition. The Company is continuing to carry out work on the project and is working towards a final decision on proceeding with the development of the project. The Company continues to fine-tune its planning and budgeting for the potential build-out and commissioning of the Valtreixal Mine.

During June 2020, the Company received, from the Municipality of Pedralba de la Paraderia in Spain, a new land classification for its Valtreixal Property whereby the property is now deemed to be suitable for extraction activity. The Company's Valtreixal Property is located approximately 250 kilometers from the Company's wholly-owned Los Santos Mine in Spain.

This new land classification will now allow the Company to complete the mining permitting process and to move forward with the completion of an open-pit mine plan for the property.

**Sangdong Mine, South Korea**

On August 29, 2016, Almonty completed an updated technical report prepared pursuant to NI 43-101 entitled "Technical Report on the Mineral Resources and Reserves of the Sangdong Project, South Korea" (the "**Sangdong Technical Report**") that is available under Almonty's profile on SEDAR (<u>www.sedar.com</u>) and on the Company's website (<u>www.almonty.com</u>).

Almonty has entered into an engineering, procurement and construction ("**EPC**") contract with S – Material Handling Co., Ltd. ("SMH") for the development work at the Sangdong Mine.

The EPC contract is a turnkey based contract for the development and construction of primary facilities for processing tungsten ore mined out of the Sangdong Mine. Under the EPC contract, SMH is responsible for not only engineering, civil & architectural, machinery & electrical works of processing plant and auxiliary facilities, but also commissioning of such facilities. The EPC contract has a net contract price of KRW40.3 billion (approx. US$37.3 million) and, including the value of primary equipment which will be erected and installed by SMH, the EPC price reaches KRW54.0 billion (approx. US$50.0 million) which accounts for 65% of the total capital expenditure budgeted for the Sangdong Project. The remaining 35% will be spent for the development of underground transportation galleries and accesses to tungsten veins, mine infrastructure, backfill plant, owner's cost, and other expenses. The primary facilities of the processing plant will be built for 900,000 to 1.2 million tonnes per annum capacity while the initial years of operation targets 640,000 tonnes per annum. The EPC contract stipulates a construction period of 18 months and commissioning period of 6 months. Following general rules of EPC contracts, cost overrun, and project delay will be the responsibility of the EPC Contractor.

On March 12, 2018, Almonty entered into a new off-take agreement with an existing customer for the tungsten concentrate to be mined and processed at the Sangdong Mine. The agreement has a term of 10 years and, based upon current pricing models and subject to the terms and conditions of the agreement, the agreement calls for revenues for the Company for a minimum of $500-million over a 10-year period (subsequently amended to increase the term to 15 years for a minimum of $750-million over a 15-year period.

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Management's Discussion and Analysis

Year Ended December 31, 2024

Dated: March 20, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

The realization of the benefits of the off-take agreement are subject to risk factors typical of a supply agreement of this nature, including if the Company is unable to meet its obligations to deliver tungsten concentrate in accordance with the terms of the off-take agreement, variable costs of shipping and production over the term of the contract, the customer's ability to purchase the tungsten concentrate produced by Almonty at the mine, and the continued economic viability of the customer or its successors for the life of the off-take agreement. Finally, given these risks, there is no guarantee that the Company will realize the revenues contemplated under the terms of the off-take agreement.

Almonty announced that it had obtained the clearance and acceptance by the Lending Bank, **KfW IPEX- Bank ("KfW")**, of the final technical due diligence report on the Sangdong Mine Development Project submitted by the Independent Engineer. The final acceptance of the Independent Engineer's report signified the clearance of certain pending issues related to compliance with the Equator Principles.

During December 2020, the Company finalized the definitive facility agreement (loan agreement) with KfW.

The facility agreement was the final piece prior to close, which completed in July 2022, with the first drawdown of US$12.8 million having been received by the Company during August 2022 and the second drawdown of US$4.1 million having been received on August 11, 2022, with a 3<sup>rd</sup> drawdown of US$9.8 million having been received mid-November, 2022, a 4<sup>th</sup> drawdown of US$5.6 million having been received during April 2023, a 5<sup>th</sup> drawdown of US$9.8 million having been received during August 2023, a 6<sup>th</sup> drawdown of US$13.7 million having been received during November 2023 and a 7<sup>th</sup> and 8<sup>th</sup> drawdown totaling US$10.6 million having been received during July 2024. Subsequent to December 31, 2025, the Company received the 9<sup>th</sup> and final drawdown of US$906,000.

The general terms of the loan facility approved by the credit committee of KfW include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The
 principal amount of senior project finance loan to be US$75.1 million;

2. Interest
 rate — three-month SOFR rate, plus 2.3 per cent, and borrower expects this to reduce
 on issuance of the ECA cover;

3. Term
 of 6.25 years with an initial principal repayment holiday during construction and quarterly
 instalment repayments of principal commencing after the completion of construction;

4. Oesterreichische
 Kontrollbank AG (OeKB) is committed to providing an import credit scheme cover guarantee
 based on the previously announced long-term offtake agreement, which was issued in February
 2020.

Almonty has worked closely with the Independent Engineer in the past several months to ensure sustainable development outcomes and the integration of environmental, safety and social considerations into the project development procedures, meeting the stringent international standards and guidelines.

Almonty also announced the mechanical completion and the commencement of commissioning of the government-subsidized pilot plant at the site.

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Management's Discussion and Analysis

Year Ended December 31, 2024

Dated: March 20, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

Meanwhile, work is continuing at the Sangdong site to ensure the timely commissioning as requested by Almonty's customer under the previously announced off-take agreement for the Sangdong Mine.

During July 2022, upon the completion of the KfW US$75.1 million project financing, the Company determined that it now has sufficient resources to complete the development of its Sangdong mine. As a result, capitalized exploration and evaluation assets totaling $60,501 were transferred to Mineral property, plant and equipment from exploration and evaluation costs during Q3-2022.

**Financial Highlights**

The following financial information is for the years ended December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | **Year ended** | **Year ended** |
|  | **31-Dec-24**<br>**$'000** | **31-Dec-23**<br>**$'000** |
| Gross Revenue | 28836 | 22510 |
| Mine production costs | 24679 | 19328 |
| Care and maintenance | 1067 | 1022 |
| Depreciation and amortization | 1120 | 1077 |
| Income from mining operations | 1970 | 1083 |
| General and administrative costs | 6153 | 5816 |
| Non-cash compensation costs | 2734 | 1141 |
| Loss before the under noted items | (6917) | (5874) |
| Interest expense | 4568 | 4305 |
| Financing fees |  | 739 |
| Loss (gain) on valuation of embedded derivative liabilities | 630 | (432) |
| Loss (gain) on valuation of warrant liabilities | 2032 | (1227) |
| Foreign exchange loss (gain) | 1779 | (489) |
| Tax provision | 372 | 67 |
| **Net loss for the period** | (16298) | (8837) |
| Income (loss) per share - basic | $(0.06) | $(0.04) |
| Income (loss) per share - diluted | $(0.06) | $(0.04) |
| Dividends | - | - |
| Cash flows provided by (used in) operating activities | (7498) | (11698) |
| Cash flows provided by (used in) investing activities | (36231) | (17492) |
| Cash flows provided by (used in) financing activities | 29371 | 43371 |

---

The following table sets forth a summary of the Company's consolidated financial position as of the dates presented:

---

| | | |
|:---|:---|:---|
|  | **31-Dec-24**<br> **S'000** | **31-Dec-23**<br> **S'000** |
| Cash | 7830 | 22019 |
| Total assets | 256349 | 235334 |
| Long-term debt | 158022 | 130067 |
| Shareholders' equity | 39073 | 48508 |
| Other |  |  |
| Outstanding shares ('000) | 265421 | 233889 |
| Weighted average outstanding shares ('000) |  |  |
| &nbsp;&nbsp;&nbsp; Basic | 254035 | 213144 |
| &nbsp;&nbsp;&nbsp; Fully diluted | 254035 | 213144 |
| Closing share price | $0.91 | $0.68 |

---

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Management's Discussion and Analysis

Year Ended December 31, 2024

Dated: March 20, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

**Three Months Ended December 31, 2024 ("Q4-2024") Compared to the Three Months Ended December 31, 2023, ("Q4-2023")**

Gross revenue for Q4-2024 was $6,280 ($5,421 for Q4-2023). Production ceased during Q2-2020 at the Los Santos mine and decreased by 6.6% at the Company's Panasqueira mine compared to production during Q4-2023. Decreased overall production at the Los Santos mine was a result of the fact that, during February 2020, the Company made the decision to put the Los Santos Mine on care and maintenance so as to allow the Company to focus its efforts on finalizing the proposed project financing for the Sangdong Mine and to assess and complete a restructuring initiative that will involve an approximate EUR 1 million capital expenditure expected to lead to a significant increase in the recovery rate of WO3 from the processing of the Company's tailings inventory. Decreased overall production at the Panasqueira mine of 6.6% was a result of a lower amount of ore mined and processed during Q4-2024 when compared to Q4-2023. Shipment volumes at Panasqueira increased by 4.6% overall in Q4-2024 when compared to Q3-2023. Overall revenue at Panasqueira increased by $859 or 15.8% in Q4-2024 when compared to Q4-2023. As at December 31, 2024, the Company recorded deferred revenue of $74 (December 31, 2023: $1,062) relating to shipments of concentrate that occurred during the first week of January 2025. As a result, this amount will be included in revenue for Q1-2025.

Mine production costs for Q4-2024 (including direct mining costs, milling costs, tailings costs and waste rock stripping costs associated with current production) was $6,238, compared to $4,743 for Q4-2023.

The Company carries out a quarterly assessment of its ore and in-process ore and finished goods inventory as well as its stockpiles of long-term tailings inventory to ensure that the carrying is recorded at the lower of cost and net realizable value. Any adjustments to the carrying value of ore, in-process ore and finished goods inventory are included in costs of goods sold (mine production costs). No write-downs of finished goods inventory were recognized during Q4-2024 or Q4-2023. Any adjustment to long-term tailings inventory that is recognized as an impairment amount is expensed through the statement of operations as an addition to Mine production costs. Conversely, any adjustment to long-term tailings inventory that is recognized as a reversal of prior period impairment charges is recorded as a reduction in Mine production costs. Reversals may occur in future periods as a result of continued increases in the expected price of an MTU of APT in future periods.

Income (loss) from mining operations during Q4-2024 was ($503), compared to income from mining operations in Q4-2023 of $140.

General and administrative costs of $1,806 incurred during Q4-2024 were 10.9% higher than the $1,628 recorded during Q4-2023. General and administrative costs include employee salaries and employment- related expenses of all non-mining/processing personnel as well as corporate overhead costs, business development and corporate development costs, listing and transfer agent fees, accounting, legal and other professional fees and travel.

A foreign exchange gain (loss) on the revaluation of interest-bearing long-term debt and non-interest- bearing trade payables denominated in United States dollars of $220 was recorded during Q4-2024 due to the appreciation of the Canadian dollar versus the United Sates dollar. This compared to a foreign exchange gain of $227 recorded in Q4-2023.

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Management's Discussion and Analysis

Year Ended December 31, 2024

Dated: March 20, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

A gain (loss) on valuation of embedded derivative liabilities of ($294) (Q4-2023 – gain of $52) was recorded during Q4-2024 in conjunction with various convertible debentures (See Note 8 in the Company's 2024 annual financial statements for further details).

Net loss for Q4-2024 was ($5,404) or ($0.02) loss per common share. This compares to net loss of ($3,156), or ($0.01) per common share, for Q4-2023.

**Year Ended December 31, 2024 ("F-2024") Compared to the Year Ended December 31, 2023, ("F- 2023")**

Gross revenue for F-2024 was $28,836 ($22,510 for F-2022). Production ceased during F-2020 at the Los Santos mine and increased by 11.2% at the Company's Panasqueira mine compared to production during F-2023. Decreased overall production at the Los Santos mine was a result of the fact that, during February 2020, the Company made the decision to put the Los Santos Mine on care and maintenance so as to allow the Company to focus its efforts on finalizing the proposed project financing for the Sangdong Mine and to assess and complete a restructuring initiative that will involve an approximate EUR 1 million capital expenditure expected to lead to a significant increase in the recovery rate of WO3 from the processing of the Company's tailings inventory. Increased overall production at the Panasqueira mine of 11.2% was a result of a higher amount of ore mined and processed during F-2024 when compared to F-2023. Shipment volumes at Panasqueira increased by 35.8% overall in F-2024 when compared to F-2023. Overall revenue at Panasqueira increased by $6,326 or 28.1% in F-2024 when compared to F-2023. As at December 31, 2024, the Company recorded deferred revenue of $74 (December 31, 2023: $1,062) relating to shipments of concentrate that occurred during the first week of January 2025. As a result, this amount will be included in revenue for Q1-2025.

Mine production costs for F-2024 (including direct mining costs, milling costs, tailings costs and waste rock stripping costs associated with current production) were $24,679, compared to $19,328 for F-2023.

The Company carries out a quarterly assessment of its ore and in-process ore and finished goods inventory as well as its stockpiles of long-term tailings inventory to ensure that the carrying is recorded at the lower of cost and net realizable value. Any adjustments to the carrying value of ore, in-process ore and finished goods inventory are included in costs of goods sold (mine production costs). No write-downs of finished goods inventory were recognized during F-2024 or F-2023. Any adjustment to long-term tailings inventory that is recognized as an impairment amount is expensed through the statement of operations as an addition to Mine production costs. Conversely, any adjustment to long-term tailings inventory that is recognized as a reversal of prior period impairment charges is recorded as a reduction in Mine production costs. Reversals may occur in future periods as a result of continued increases in the expected price of an MTU of APT in future periods.

Income from mining operations during F-2024 was $1,970, compared to income from mining operations in F-2023 of $1,083.

General and administrative costs of $6,153 incurred during F-2024 were 5.8% higher than the $5,816 recorded during F-2023. General and administrative costs include employee salaries and employment- related expenses of all non-mining/processing personnel as well as corporate overhead costs, business development and corporate development costs, listing and transfer agent fees, accounting, legal and other professional fees and travel.

Page **\|** 13

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Management's Discussion and Analysis

Year Ended December 31, 2024

Dated: March 20, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

A foreign exchange gain (loss) on the revaluation of interest-bearing long-term debt and non-interest- bearing trade payables denominated in United States dollars of ($1,779) was recorded during F-2024 due to the depreciation of the Canadian dollar versus the United Sates dollar. This compared to a foreign exchange gain of $489 recorded in F-2023.

A gain (loss) on valuation of embedded derivative liabilities of ($630) (F-2023 – gain of $432) was recorded during F-2024 in conjunction with various convertible debentures (See Note 8 in the Company's 2024 annual financial statements for further details).

Net loss for F-2024 was ($16,298) or ($0.06) loss per common share. This compares to net loss of ($8,837), or ($0.04) per common share, for F-2023.

**Liquidity and Capital Resources**

As at December 31, 2024, the Company held cash and receivables of $10,757 (December 31, 2023 - $24,698) (of which $2,170 (December 31, 2023 - $21,354) represented cash restricted for use for the Sangdong Project) and a working capital deficiency of $30,538 (December 31, 2023 - $30,458). In addition, in conjunction with the closing of its US$75.1 million project financing with the KfW IPEX-Bank during July 2022, the Company received the first and second drawdowns on this facility totaling US$16.9 million during August 2022, received the 3<sup>rd</sup> drawdown of US$9.8 million during November, 2022, received the 4<sup>th</sup> drawdown of US$5.6 million during April 2023, received the 5<sup>th</sup> drawdown of US$9.8 million during August 2023, received the 6<sup>th</sup> drawdown of US$13.7 million during November 2023, received the 7<sup>th</sup> and 8<sup>th</sup> drawdowns, totaling US$10.6 million, during July 2024 and the 9<sup>th</sup> and final drawdown of US$906,000 during January 2025.

During November 2024, the Company negotiated the extension of the maturity dates of the DRAG debt totaling $29,072 including accrued interest of $5,139 from September 30, 2025 to October 31, 2026.

During the year ended December 31, 2024, the Company secured additional financings totaling $8,320. Also, during the year ended December 31, 2024, the Company issued 10,249,605 common shares in conjunction with the conversion of long-term debt, plus related accrued interest, totaling $9,225 and issued 2,583,316 common shares to settle certain accounts payable.

Subsequent to December 31, 2024, the Company issued 1,852,000 common share units and 10,833,333 CDI units for proceeds totaling $10,847 and issued 1,717,975 CDIs in conjunction with the exercise of CDI Options for proceeds totaling $1,660.

Page **\|** 14

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Management's Discussion and Analysis

Year Ended December 31, 2024

Dated: March 20, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

The Company believes that, based on the current price of APT and its forecast production schedule for fiscal 2025 and into H1 of 2026, it has the ability to generate sufficient cash flow to meet its current obligations at its producing mine. The current price of APT has reached levels where it is sufficient to cover the Company's cash operating costs on existing production volumes. Should the Company no longer be able to produce tungsten concentrate in sufficient quantity, then the Company may not be able to meet its current and long-term obligations. Outside of abiding by (i) Spanish law requirements on minimum capital adequacy at Valtreixal Resources Spain SL and Daytal Resources Spain SL, (ii) Korean law requirements on minimum capital adequacy at Almonty Korea Tungsten, and (iii) Portuguese law requirements on minimum capital adequacy at Beralt Tin and Wolfram (Portugal) SA, there is no legal restriction on Almonty's ability to repatriate capital from its subsidiaries.

The Company has $158,022 in long-term debt as at December 31, 2024 ($130,067 as at December 31, 2023), of which $21,894 is the current portion ($34,167 as at December 31, 2023), comprised of individual facilities with Spanish domiciled banks, one facility with an Austrian bank, promissory notes owed to a shareholder, convertible loans and drawdowns on the KfW loan facility as at December 31, 2024. (See Note 8 in the Company's 2024 Annual Consoliated Financial Statements for the year ended December 31, 2024 and 2023 for additional details regarding each component of long-term debt.)

**Summary of Long-term Debt**

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2024** | **December 31,**<br>**2023** |
| Term and other loans - Euro | **24486** | 4323 |
| Term and other loans - US dollar | **8634** | 28634 |
| Promissory Note | **250** | 250 |
| Convertible debentures | **27872** | 32620 |
| Lease liabilities | **210** | 117 |
| Mine Construction Facility | **106876** | 77051 |
|  | **168328** | 142995 |
| Less: Current portion | **(21894)** | (34167) |
|  | **146434** | 108828 |
| Fair value of derivative liabilities | **1121** | 491 |
| Deferred financing costs | **(11427)** | (13419) |
|  | **136128** | 95900 |

---

**Summary of Contractual Obligations**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Payments Due by Period** | **Payments Due by Period** | **Payments Due by Period** | **Payments Due by Period** | **Payments Due by Period** |
| <br>**Contractual Obligations** | **Less than**<br>**1 year** |<br>**1-2 years** |<br>**3-4 years** | **After**<br>**5 years** |<br>**Total** |
| Debt | 22040 | 86266 | 60013 |  | 168319 |
| Capital Lease Obligations | 52 | 113 | 45 |  | 210 |
|  |  |  |  |  | - |
| **Total Contractual obligations** | **22092** | **86379** | **60058** |  | **168529** |

---

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Management's Discussion and Analysis

Year Ended December 31, 2024

Dated: March 20, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

US Domestication

On January 20, 2025, Almonty announced its plans to change its jurisdiction of incorporation from Canada to the State of Delaware (the "US domestication") while maintaining its listings for now on the Toronto Stock Exchange and the Australian Securities Exchange. The US domestication reflects the growing importance of the United States in Almonty's strategic positioning. With its robust regulatory framework for critical materials like tungsten and molybdenum and the evolving global economic landscape, the United States presents a compelling jurisdiction for our incorporation. The State of Delaware, in particular, was chosen as our new domicile because the Delaware General Corporation Law ("**DGCL**") expressly accommodates continuances under Section 192 of the *Canada Business Corporations Act* and is recognized for its extensive body of corporate law. Supported by decades of case law in Delaware courts, the DGCL provides well- defined guidance on the duties and obligations of directors and officers, offering legal clarity that is expected to benefit both the Company and its shareholders. The US domestication was approved by shareholders at a special meeting held on February 27, 2025 and remains pending as of the date of this MD&A.

**Outstanding Share Data**

As of the date of this MD&A, there were 280,674,131 common shares and CDIs outstanding, 22,827,000 stock options outstanding, with each option entitling the holder thereof to acquire one common share of Almonty at a weighted average price of $0.71 per share, and 38,383,295 share purchase warrants enabling the holders to acquire one common share at prices between Cdn$0.60 and AUD1.25 per share, expiring between June 7, 2025 and February 7, 2028.

As at December 31, 2024, the Company had the following Common Shares outstanding:

---

| | | |
|:---|:---|:---|
|  | **Number of <br>Shares** | **Amount <br>$** |
| **Authorized - Unlimited number of common shares** |  |  |
| **Issued and outstanding** |  |  |
| Outstanding at December 31, 2022 | 215980494 | 119383 |
| Shares issued for cash | 13217321 | 5051 |
| Shares issued on conversion of long-term debt | 4643609 | 2917 |
| Shares issued on exercise of warrants | 47244 | 8 |
| Outstanding at December 31, 2023 | 233888668 | 127359 |
| **Shares issued for cash** | **18389119** | **8320** |
| **Shares issued on conversion of long-term debt** | **13143036** | **10837** |
| **Outstanding at December 31, 2024** | **265420823** | **146516** |

---

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Management's Discussion and Analysis

Year Ended December 31, 2024

Dated: March 20, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

Outstanding stock options as at December 31, 2024:

The Company has established a stock option plan for its directors, officers, employees and technical consultants under which the Company may grant options to acquire a maximum number of common shares equal to 10% of the total issued and outstanding common shares of the Company.

During the three months ended March 31, 2024, the Company granted 1,000,000 share options to a director of the Company. The options vested immediately and are exercisable for a period of five years from the grant date at $0.56 per common share. The grant resulted in the recording of share-based compensation expense of $312. The value of the stock options granted was determined using the Black-Scholes option pricing model using a risk-free interest rate of 3.32%, volatility of 62.99% based on historical volatility, expected life of 5 years, and no expected dividend yield.

During June 2024, the Company granted 1,275,000 stock options. The options vested immediately and are exercisable for a period of five years from the grant date at $0.63 per common share.

During July 2024, the Company granted 3,030,000 stock options. The options vested immediately and are exercisable for a period of five years from the grant date at $0.66 per common share.

During August 2024, the Company granted 200,000 stock options. The options vested immediately and are exercisable for a period of five years from the grant date at $0.685 per common share.

During November 2024, the Company granted 200,000 stock options. The options vested immediately and are exercisable for a period of five years from the grant date at $0.81 per common share.

Subsequent to December 31, 2024, the Company granted stock options enabling the holders to acquire up to 1,122,000 common shares with exercise prices ranging from $1.195 to $1.915 per share, expiring five years from issuance.

As of the date of this MD&A, there are 22,827,000 options outstanding, all of which are under this stock option plan, which was last approved by the Company's shareholders at the Company's Annual and Special Meeting of Shareholders held on June 26, 2023. All of the outstanding options are fully vested.

---

| | |
|:---|:---|
|  | **Number of** <br> **Share Options**  |
| Options outstanding at December 31, 2022 | 14775000 |
| Options granted | 2600000 |
| Options expired | (300000) |
| Options outstanding at December 31, 2023 | 17075000 |
| **Options granted** | **5705000** |
| **Options cancelled** | **(1000000)** |
| **Options outstanding at December 31, 2024** | **21780000** |

---

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Management's Discussion and Analysis

Year Ended December 31, 2024

Dated: March 20, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

As of December 31, 2024, the outstanding options, all of which are exercisable, are summarized as follows:

---

| | | | |
|:---|:---|:---|:---|
| <br> **Range of Exercise Prices** | **Number**<br> **Outstanding** | **Weighted Average Remaining**<br> **Contractual Life** | **Weighted Average Exercise**<br> **Price** |
| $0.33-$0.59 | 5825000 | 3.65 | $0.47 |
| $0.60-$0.79 | 5980000 | 4.04 | $0.66 |
| $0.80-$1.23 | 9975000 | 2.45 | $0.87 |
|  | **21780000** | **3.21** | $**0.71** |

---

**Warrants**

Outstanding share purchase warrants as at December 31, 2024:

---

| | |
|:---|:---|
|  | **Number of**<br> **Warrants** |
| Warrants outstanding at December 31, 2022 | 3257137 |
| Warrants issued | 13217321 |
| Warrants exercised | (47344) |
| Warrants outstanding at December 31, 2023 | 16427214 |
| **Warrants issued** | **18389119** |
| **Warrants expired** | **(8075396)** |
| **Warrants outstanding at December 31, 2024** | **26740937** |

---

---

| | | | |
|:---|:---|:---|:---|
| **Exercise Prices** | **Number <br>Outstanding** | **Weighted <br>Average <br>Remaining <br>Contractual <br>Life** | **Weighted <br>Average <br>Exercise <br>Price** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $0.45 - $0.69 | 5856210 | 1.83 | $0.56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $0.70-$0.99 | 12505785 | 1.24 | $0.75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $1.00-$1.21 | 8378942 | 2.44 | $1.12 |
|  | **26740937** | **1.75** | $**0.82** |

---

Page **\|** 18

![](ex4-3_002.jpg)

Management's Discussion and Analysis

Year Ended December 31, 2024

Dated: March 20, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

**Restricted Share Units**

RSUs granted under the Company's RSU Plan to employees vest in thirds at the end of each year from the date of grant. Transactions related to RSUs are summarized as follows:

---

| | | |
|:---|:---|:---|
|  | **Number of RSUs** | **Number of RSUs** |
| Units, December 31, 2022 |  | 1300000 |
| Units granted | | 450,000 |
| **Units outstanding at December 31, 2023** |  | **1,750,000** |
| **Units granted** | | **2,100,000** |
| **Units outstanding at December 31, 2024** | | **3,850,000** |

---

During the year ended December 31, 2024, the Company granted 2,100,000 RSUs at $0.66 per share to two directors of the Company.

3. Quarterly Earnings and Cash Flow

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **4<sup>th</sup> Quarter (2024)** | **3<sup>rd</sup> Quarter (2024)** | **2<sup>nd</sup> Quarter (2024)** | **1<sup>st</sup> Quarter (2024)** |
| <br>**Period Ended** | **December 31,**<br> **2024**<br> **$'000** | **Sept 30,**<br> **2024**<br> **$'000** | **June 30,**<br> **2024**<br> **$'000** | **March 31,**<br> **2024**<br> **$'000** |
| Total Revenue | 6280 | 6794 | 7938 | 7824 |
| Net income (loss) | (5404) | (5319) | (1793) | (3782) |
| Basic earnings (loss) per share | $(0.02) | $(0.02) | $(0.01) | $(0.01) |
| Diluted earnings (loss) per share | $(0.02) | $(0.02) | $(0.01) | $(0.01) |
| Total assets | 256349 | 255280 | 231163 | 233638 |
| Total long-term debt | 158022 | 149748 | 132779 | 128576 |
| Dividends |  |  |  |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **4<sup>th</sup> Quarter (2023)** | **3<sup>rd</sup> Quarter (2023)** | **2<sup>nd</sup> Quarter (2023)** | **1<sup>st</sup> Quarter (2023)** |
| <br>**Period Ended** | **December 31,**<br> **2023**<br> **$'000** | **Sept 30,**<br> **2023**<br> **$'000** | **June 30,**<br> **2023**<br> **$'000** | **March 31,**<br> **2023**<br> **$'000** |
| Total Revenue | 5421 | 4459 | 5533 | 7097 |
| Net income (loss) | (3156) | (1870) | (1395) | (2416) |
| Basic earnings (loss) per share | $(0.01) | $(0.01) | $(0.01) | $(0.01) |
| Diluted earnings (loss) per share | $(0.01) | $(0.01) | $(0.01) | $(0.01) |
| Total assets | 235334 | 192151 | 180411 | 174294 |
| Total long-term debt | 130067 | 110513 | 95047 | 87270 |
| Dividends |  |  |  |  |

---

Page **\|** 19

![](ex4-3_002.jpg)

Management's Discussion and Analysis

Year Ended December 31, 2024

Dated: March 20, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

4. Critical Accounting Estimates

The preparation of Almonty's consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities and contingent liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Estimates and assumptions are continuously evaluated and are based on management's experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. However, actual outcomes can differ from these estimates. In particular, information about significant areas of estimation uncertainty considered by management in preparing the consolidated financial statements is described in more detail in Note 2 and Note 8 of the Company's 2024 Annual Consolidated Financial Statements.

5. New and Pending Accounting Standards

Other accounting standards or amendments to existing accounting standards that have been issued but have future effective dates have now been assessed by the Company and are not expected to have any impact on the Company's consolidated financial statements. The Company has not early adopted these standards.

**Off Balance Sheet Arrangements**

The Company has no off-Balance Sheet arrangements as at the date of this MD&A.

**Proposed Transactions**

The Company has not entered into any undisclosed proposed transactions as at the date of this MD&A.

6. Related Party Transactions

For the nine months ended September 30, 2024, the Company paid or accrued compensation to key management personnel, which includes the Company's Chief Executive Office, Chief Financial Officer and members of the Company's Board of Directors totaling $1,354 (2023 - $1,318).

The Company has long-term debt owing to DRAG, a company that is an existing shareholder of Almonty, and whose former CEO is a member of the Board of Directors of the Company. In addition to the transactions disclosed in notes 8(b) and 8(c) of the Company's 2024 Annual Financial Statements, interest of $856 was accrued on the DRAG loans during the year ended December 31, 2024 (2023 - $820). As at December 31, 2024, there is $5,139 (December 31, 2023 - $4,283) of unpaid interest on these loans included in accounts payable and accrued liabilities.

Page **\|** 20

![](ex4-3_002.jpg)

Management's Discussion and Analysis

Year Ended December 31, 2024

Dated: March 20, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

7. General

**Risks and Uncertainties**

The Company operates in the mining industry, which is subject to numerous significant risks that can influence profitability. The Company has disclosed several risks below which it believes to be the most significant and that could have a material impact on its current and future operations. Other risks may exist or may arise at a future date. For additional, and more detailed, risk factors, please see the Company's Annual Information Form dated March 31, 2024, under the heading "Risk Factors".

**Interest rate risk**

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 the long-term debt, $130,986 is subject to floating interest rates and $37,608 is subject to fixed interest rates. A portion of the floating rate debt totaling $24,110 is subject to a fixed spread over the 6- and 12-month Euro Interbank Offered Rate ("Euribor") rates. A change of 100 basis points (1%) in the rates would result in a $241 change in annual interest costs. The remaining floating rate debt of $106,876 is based on a fixed spread over the 3-month Libor rate. A change of 100 basis point (1.0%) in the 3-month Libor rate would result in a $1,069 change in annual interest costs.

The Company may in the future become a borrower of an additional material amount of funds or repay its existing outstanding long-term debt at any time without penalty. The Company's primary operations are located in Spain, Korea and Portugal. The ongoing uncertainty in the financial markets may have a negative impact on both the Company's future borrowing costs and its ability to obtain debt financing.

**Foreign currency risk**

Almonty's wholly owned subsidiaries, Daytal and BTW, operate in Spain and Portugal, respectively, both of which use Euros (€) as their functional currency. Their output is a commodity that is primarily priced in United States dollars (US$) which is different than the functional currency of the Company and its subsidiaries, and the Company and its subsidiaries may also incur costs or obtain indebtedness in a currency that is different from their functional currency. Almonty's functional currency is the Canadian dollar (CAD$) but it advances funds to subsidiaries in the functional currency of the subsidiary to which funds are advanced. As such, the Company's interim condensed consolidated balance sheet and profit or loss can be significantly affected by movements in various currencies (CAD$, US$, AUD, KRW and €).

Page **\|** 21

![](ex4-3_002.jpg)

Management's Discussion and Analysis

Year Ended December 31, 2024

Dated: March 20, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

The Company's Canadian dollar functional currency businesses have the following financial instruments denominated in foreign currencies:

---

| | | |
|:---|:---|:---|
|  | **Currency** | **Carrying <br>Value($)** |
| Cash and cash equivalents | US$ | 48 |
| Accounts payable and accrued liabilities | US$ | 8149 |
| Accounts payable and accrued liabilities | AUS$ | 378 |
| Accounts payable and accrued liabilities | **KRW** | 7770 |
| Long-term debt | US$ | 123637 |
| Long-term debt | EURO € | 33898 |

---

A 5% change in the value of the CAD$ relative to the above currencies would change net income for the year ended December 31, 2024 by approximately $8,674.

The Company's Euro functional currency businesses have the following financial instruments denominated in foreign currencies:

---

| | | |
|:---|:---|:---|
|  | **Currency** | **Carrying Value ($)** |
| Cash and cash equivalents | US$ | 330 |
| Trade receivables | US$ | 522 |

---

A 5% change in the value of the Euro relative to the above currencies would change net income for the year ended December 31, 2024 by approximately $43.

The Company's Korean Won functional currency businesses have the following financial instruments denominated in foreign currencies:

---

| | | |
|:---|:---|:---|
|  | **Currency** | **Carrying Value ($)** |
| Accounts payable and accrued liabilities | US$ | 1849 |
| Long-term debt | US$ | 106876 |

---

A 5% change in the value of the Korean Won relative to the above currencies would change net income for the year ended December 31, 2024 by approximately 5,436.

Page **\|** 22

![](ex4-3_002.jpg)

Management's Discussion and Analysis

Year Ended December 31, 2024

Dated: March 20, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

**Credit risk**

The Company deposits surplus cash with major banks of high quality credit standing, in interest bearing accounts that earn interest at floating rates, Trade receivables represents amounts receivable related to delivery of concentrate that have not been settled and are with the Company's customers, all of whom have good credit ratings and the Company has not experienced any credit issues with any of its customers. Other assets include a non-interest-bearing promissory note and deposits. The carrying value of the cash and cash equivalents, trade receivables, restricted cash, promissory notes and deposits totaling $11,129 represents Almonty's maximum exposure to credit risk.

**Liquidity risk**

The Company's objective is to use cash and cash equivalents, finance leases, and third party short and long- term loans (see Note 8 of the Company's 2024 Annual Financial Statements for debt maturities) and equity in order to maintain liquidity. Almonty's policy is to maximize liquidity in order to enable the continued development of the mines and operations of the plants and to enable the development of its projects. All financial liabilities with a contractual term of 12 months or less are classified as current. The Company is currently pursuing debt and equity financing opportunities to increase its liquidity.

As at December 31, 2024, Almonty has recognized a restoration provision of $1,008 (December 31, 2023 - $988) with respect to Daytal's future obligation to restore and reclaim the mine once it has ceased to mine tungsten ore from the Los Santos Mine. The restoration provision represents the present value of rehabilitation costs of $982 relating to the mine site which are expected to be incurred beginning in 2027 after the Los Santos Mine ceases to mine ore based on the current estimate of economically recoverable ore resources. This provision has been created based on Almonty's internal estimates. Assumptions based on the current economic environment have been made, which management believes are a reasonable basis upon which to estimate the future liability. These estimates are reviewed regularly to take into account any material changes to the assumptions. Actual rehabilitation costs will ultimately depend upon future market prices for the necessary decommissioning works required which will reflect current market conditions at that time. The timing of the rehabilitation is likely to depend on when the Los Santos Mine ceases to produce at economically viable rates. This in turn will depend on Almonty's ability to extend the mine life years through additional exploration and also on the future price of WO<sub>3</sub> concentrate. The Company has had its mine plan approved by the local mining and environmental authorities in the Province Salamanca and is currently awaiting approval of the regional mining authority in Castilla y Leon. Almonty's current mine plan entails ongoing reclamation work of the site as part of the pit optimization work (several small pits that have been fully mined are filled in and reclaimed as part of the regular waste rock movement and stripping work carried on other pits that are in production, as opposed to hauling the waste rock to the waste dump). The current mine plan under review by the relevant authorities entails the reclamation of the majority of the site as part of on-going operations and waste rock movement. The restoration provision currently recognized by the Company is estimated to be sufficient to cover any remedial restoration and reclamation work needed upon completion of the tailings reprocessing operation. Upon completion of open pit mining operations, during the period when the Company will process the bulk of its inventory stockpile of mineralized tailings, Almonty estimates that the current restoration provision will be sufficient to complete all reclamation work required under its mine plan. The relevant Spanish authorities may determine, upon final review, that the amount required to be posted for future reclamation work be increased. Upon approval of the mine plan, the Company intends to arrange an insurance policy to cover any increase in the assessed reclamation requirements. The Company anticipates that it will receive approval of its mine plan for the Los Santos Mine in calendar 2025 (the updated plan was originally filed in February 2015). The Company continues to work with the relevant authorities in Spain with respect to obtaining approval of its mine plan and is also engaged in active discussions with several insurance brokers to renew the insurance policy to cover the life of mine. The Company had posted an insurance policy to cover the anticipated reclamation costs when it originally filed its updated mine plan in February 2015. This policy expired in July 2016 and will be renewed upon final approval of the mine plan as filed. The relevant Spanish authorities are aware of the lapse in insurance coverage and are continuing their review of the mine plan as filed.

Page **\|** 23

![](ex4-3_002.jpg)

Management's Discussion and Analysis

Year Ended December 31, 2024

Dated: March 20, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

Banco Popular has posted a bank warranty of €180 ($269) on behalf of Daytal with the Region of Castilla y Leon, Trade and Industry Department as a form of deposit to cover the expected costs of restoring the Los Santos Mine as required by Daytal's Environmental Impact Statement that forms a part of its mining and exploitation license on the Los Santos Mine provision. The bank warranty cannot be cancelled unless such cancellation is approved by the government of Castilla y Leon upon approval of the completion of the restoration work. The bank warranty is undrawn and carries a quarterly stand-by fee of approximately €1 per quarter.

As at December 31, 2024, there is a restoration provision of $3,161 (December 31, 2023 - $1,205) with respect to the Sangdong Mine based on the amount assessed by the relevant local government authorities.

As at December 31, 2024, there is a restoration provision of $20,122 (December 31, 2023 - $20,627) with respect to the Panasqueira Mine's future obligation to restore and reclaim the mine once it has ceased to mine ore, currently estimated to be in the year 2045. The restoration provision represents the present value of rehabilitation costs relating to the mine site which are expected to be incurred subsequent to 2045. Total rehabilitation costs relating to the mine site are estimated to be $23,694 and are expected to be incurred after the mine ceases production. Assumptions based on the current economic environment have been made, which management believes are a reasonable basis upon which to estimate the future liability. These estimates are reviewed regularly to take into account any material changes to the assumptions. Actual rehabilitation costs will ultimately depend upon future market prices for the necessary decommissioning works required which will reflect current market conditions at that time. The timing of the rehabilitation is likely to depend on when the mine ceases to produce at economically viable rates. This in turn will depend on Almonty's ability to extend the mine life years through additional exploration and also on the future price of WO<sub>3</sub> concentrate.

Page **\|** 24

![](ex4-3_002.jpg)

Management's Discussion and Analysis

Year Ended December 31, 2024

Dated: March 20, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

A summary of the Company's restoration provision is presented below:

---

| | |
|:---|:---|
| Balance at December 31, 2022 | 38289 |
| Revisions in estimated cash flows and changes in assumptions | (16230) |
| Accretion expense | 496 |
| Translation adjustment | 266 |
| Balance at December 31, 2023 | 22821 |
| **Revisions in estimated cash flows and changes in assumptions** | **579** |
| **Accretion expense** | **495** |
| **Translation adjustment** | **396** |
| **Balance at December 31, 2024** | **24291** |

---

8. Disclosure
 Control and Procedures and Internal Control of Financial Reporting

The Company's management, under the supervision of the Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), has designed disclosure controls and procedures ("DC&P") and internal control over financial reporting ("ICFR"), as defined in National Instrument 52-109, *Certification of Disclosure in Issuers' Annual and Interim Filings*, based on the *Internal Control – Integrated Framework* (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

DC&P are designed to provide reasonable assurance that material information relating to the Company is made known to the CEO and CFO during the reporting period and the information required to be disclosed by the Company is recorded, processed, summarized and reported in a timely and appropriate manner. ICFR is designed to provide reasonable assurance regarding the reliability of financial reporting for external purposes in accordance with international financial reporting standards. Due to the inherent limitations associated with any such controls and procedures, management recognizes that, no matter how well designed and operated, they may not prevent or detect misstatements on a timely basis.

The Company's management, under the supervision of the CEO and CFO, has evaluated both the design and operating effectiveness of its DC&P and ICFR and concluded that, as of December 31, 2024 and December 31, 2023, they were not effective in providing reasonable assurance regarding required disclosures and the reliability of external financial reporting as a result of the following material weakness:

A material weakness is a significant deficiency, or combination of significant deficiencies, that result in more than a remote likelihood that a material misstatement of the annual or interim financial statements will occur and not be detected by management before the financial statements are published. Controls can potentially be circumvented by the individual acts of some persons, by collusion of two or more people or by management override of the control. The design of any system of controls also is based on part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

Page **\|** 25

![](ex4-3_002.jpg)

Management's Discussion and Analysis

Year Ended December 31, 2024

Dated: March 20, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

Over time, control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

In its assessment of the effectiveness in internal control over financial reporting as of December 31, 2019, the Company determined it had ineffective design and implementation of internal controls over the financial statement close and disclosure process, including regarding assertions about the completeness, existence and accuracy of the financial information. Due to this material weakness, management concluded that ICFR was not effective as of December 31, 2019.

In light of the aforementioned material weakness, management conducted a thorough review of all significant or non-routine adjustments for the fifteen months ended December 31, 2019, for the year ended December 31, 2020, for the year ended December 31, 2021, for the year ended December 31, 2022, for the year ended December 31, 2023 and for the year ended December 31, 2024. As a result of this review, management believes that there were no material inaccuracies or omissions of material fact and, to the best of its knowledge, believes that the consolidated financial statements for the fifteen months ended December 31, 2019, for the year ended December 31, 2020, for the year ended December 31, 2021, for the year ended December 31, 2022, for the year ended December 31, 2023 and for the year ended December 31, 2024 fairly present in all material respects and the financial condition and results of operations for the Company in conformity with international financial reporting standards.

**Remediation Plan for Material Weakness in Internal Control over Financial Reporting**

The Company is developing and will implement a remediation plan to address the material weakness described above. Specifically, the Company plans to increase the depth and timeliness of management's review procedures over the financial close process and related ICFR.

**Changes in ICFR**

National Instrument 52-109 also requires Canadian public companies to disclose any changes in ICFR during the most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, ICFR. With the exception of remediation of material weaknesses in ICFR that were identified and disclosed in relation to the fifteen months ended December 31, 2019, no changes were made to the Company's ICFR during the year ended December 31, 2021, the year ended December 31, 2022, the year ended December 31, 2023 or the year ended December 31, 2024 which have materially affected, or are reasonably likely to materially affect, ICFR.

Page **\|** 26

![](ex4-3_002.jpg)

Management's Discussion and Analysis

Year Ended December 31, 2024

Dated: March 20, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

9. Management's
 Responsibility for Financial Statements

The information provided in this report, including the Company's financial statements, is the responsibility of management. In the preparation of these statements, estimates are sometimes necessary to make a determination of future values for certain assets or liabilities. Management believes such estimates have been based on careful judgements and have been properly reflected in the accompanying financial statements.

March 20, 2025

On behalf of Management and the Board of Directors,

<u>*"Lewis Black"*</u> <br> Chairman, President and Chief Executive Officer

Glossary of Terms

---

| | |
|:---|:---|
| APT | ammonium para tungstate is an intermediate product which is one of the principal chemical forms in which tungsten is traded<br>|
| Concentrates | the valuable fraction of an ore that is left after waste material is removed in processing |
| € | Euros |
| KRW | Korean Won |
| MB | Metal Bulletin of London |
| MTU | metric tonne unit, equal to 1 percent of a metric tonne or 10 kg (22.046 pounds) of contained WO3 |
| NI 43-101 | National Instrument 43-101 – *Standards of Disclosure for Mineral Projects* |
| Scheelite | a brown tetragonal mineral, CaWO<sub>4</sub>. It is found in pneumatolytic veins associated with quartz and fluoresces to show a blue color. Scheelite is a mineral of tungsten |
| Tonne | a metric unit equal to 1,000kg (2,204.6 pounds) |
| Tungsten concentrates | concentrates generally containing between 40 and 75 percent WO<sub>3</sub> |
| US$ | United States dollars |
| W | the elemental symbol for tungsten |
| WO<sub>3</sub> | tungsten tri-oxide, a compound of tungsten and oxygen |

---

Page **\|** 27

## Exhibit 4.4

**Exhibit 4.4**

![](ex4-4_001.jpg)

**Unaudited Interim Condensed Consolidated Financial Statements**

**For the Three Months Ended March 31, 2025 and 2024**

**Presented in Canadian dollars**

**Management's Responsibility for Financial Reporting**

The accompanying unaudited interim condensed consolidated financial statements for Almonty Industries Inc. ("Almonty") (with its subsidiaries, the "Company") were prepared by management in accordance with International Financial Reporting Standards ("IFRS"). Management acknowledges responsibility for the preparation and presentation of the unaudited interim condensed consolidated financial statements, including responsibility for significant accounting judgments and estimates and the choice of accounting principles and methods that are appropriate to the Company's circumstances. The significant accounting policies of the Company are summarized in Note 3 to the audited annual consolidated financial statements.

Management has established processes, which are in place to provide them sufficient knowledge to support management representations that they have exercised reasonable diligence that (i) the unaudited interim condensed consolidated financial statements do not contain any untrue statement of material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it is made, as of the date of and for the periods presented by the unaudited interim condensed consolidated financial statements and (ii) the unaudited interim condensed consolidated financial statements fairly present in all material respects the financial condition, results of operations and cash flows of the Company, as of the date of and for the periods then ended presented by the unaudited interim condensed consolidated financial statements.

The Board of Directors is responsible for reviewing and approving the unaudited interim condensed consolidated financial statements together with other financial information of the Company and for ensuring that management fulfills its financial reporting responsibilities. The Audit Committee assists the Board of Directors in fulfilling this responsibility. The Audit Committee meets with management to review the financial reporting process and the unaudited interim condensed consolidated financial statements together with other financial information of the Company. The Audit Committee reports its findings to the Board of Directors for its consideration in approving the unaudited interim condensed consolidated financial statements together with other financial information of the Company for issuance to the shareholders.

Management recognizes its responsibility for conducting the Company's affairs in compliance with established financial standards, and applicable laws and regulations, and for maintaining proper standards of conduct for its activities.

<u>*"Lewis Black"*</u> <u>*"Mark Gelmon"*</u> <br> Lewis Black Mark Gelmon <br> Director, President & CEO Chief Financial Officer

May 13, 2025

Toronto, Ontario

**Almonty Industries Inc.**

**Unaudited Interim Condensed Consolidated Statements of Financial Position**

(in 000's of Canadian dollars unless otherwise noted)

---

| | | | |
|:---|:---|:---|:---|
|  | **Note** | **March 31,**<br> **2025** | **December 31,**<br> **2024** |
| **Assets** |  |  |  |
| Current Assets |  |  |  |
| <br>Cash |  | 16985 | 7830 |
| Trade receivables |  | 3168 | 2927 |
| Taxes recoverable |  | 427 | 573 |
| Inventories | 4 | 7077 | 6738 |
| Prepaid expenses and other current assets |  | 3445 | 2508 |
| **Total Current Assets** |  | **31102** | **20576** |
| Mining assets | 5 | 212579 | 201866 |
| Tailings inventory | 4 | 32252 | 30982 |
| Deferred tax assets |  | 2461 | 2364 |
| Other assets |  | 647 | 561 |
|  |  | **247939** | **235773** |
| **Total Assets** |  | **279041** | **256349** |
| **Liabilities** |  |  |  |
| **Current Liabilities** |  |  |  |
| <br>Accounts payable and accrued liabilities | 7 | 30015 | 29146 |
| Deferred revenue |  | 76 | 74 |
| Current portion of long-term debt | 8 | 17711 | 21894 |
| **Total Current Liabilities** |  | **47802** | **51114** |
| Warrant liabilities | 10 & 11 | 33465 | 5154 |
| Long-term debt | 8 | 153901 | 136128 |
| Restoration provision and other liabilities | 9 | 25756 | 24866 |
| Deferred tax liabilities |  | 15 | 14 |
|  |  | **213137** | **166162** |
| **Total Liabilities** |  | **260939** | **217276** |
| **Share holders' Equity** |  |  |  |
| <br> Share capital | 10 | 157398 | 146516 |
| Subscriptions received | 10 | 82 | 103 |
| Equity portion of convertible debentures |  | 1241 | 1241 |
| Contributed surplus |  | 17365 | 16072 |
| Accumulated other comprehensive income |  | (3141) | (4638) |
| Deficit |  | (154843) | (120221) |
| **Total Share holders' Equity** |  | **18102** | **39073** |
| **Total Liabilities and Shareholders' Equity** |  | **279041** | **256349** |

---

Nature of operations (Note 1) <br>Commitments and contingent liabilities (Note 17)

Subsequent Events (Note 19)

**Signed on behalf of the Board:**

---

| | |
|:---|:---|
| /s/ Lewis Black | /s/ Mark Trachuk |
| **Lewis Black** | **Mark Trachuk** |
| Director | Director |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

**Almonty Industries Inc.**

**Unaudited Interim Condensed Consolidated Statements of Operations and Comprehensive Loss**

(in 000's of Canadian dollars except share and per share amounts)

---

| | | | |
|:---|:---|:---|:---|
|  | | **Three months ended March 31,** | **Three months ended March 31,** |
|  | <br>**Note** | **2025** | **2024** |
| **Revenues** |  | **7908** | 7824 |
| **Cost of sales** |  |  |  |
| Production costs |  | **6588** | 6665 |
| Care and maintenance costs |  | **280** | 263 |
| Depreciation and amortization |  | **288** | 290 |
|  |  | **7156** | **7218** |
| **Income from mining operations** |  | **752** | 606 |
| **Expenses** |  |  |  |
| General and administrative |  | **3406** | 1475 |
| Interest expense |  | **1206** | 1423 |
| Share-based compensation | 10 | **851** | 392 |
| Foreign exchange loss |  | **1100** | 903 |
| Loss on valuation of embedded derivative liabilities | 8(c) | **2909** | 81 |
|  |  | **9472** | 4274 |
| <br>**Loss before other expense and income taxes** |  | (8720) | (3668) |
| **Other expense** |  |  |  |
| Loss on valuation of warrant liabilities | 11 | **25810** | 109 |
| **Net loss before income taxes** |  | **(34530)** | (3777) |
| Income tax expense | 12 | **(92)** | (5) |
| **Net loss for the period** |  | **(34622)** | (3782) |
| **Other comprehensive income (loss)** |  |  |  |
| Items that may be reclassified subsequently to profit/loss |  |  |  |
| &nbsp;&nbsp;&nbsp;Unrealized gain (loss) on foreign currency translation |  | **1497** | (3521) |
| **Comprehensive loss for the period** |  | **(33125)** | (7303) |
| <br>**Loss per common share - basic and diluted** |  | $(0.13) | $(0.02) |
| <br>**Weighted average number of shares outstanding - basic and diluted** |  | 276315159 | 243300011 |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

**Almonty Industries Inc.**

**Unaudited Interim Condensed Consolidated Statements of Changes in Shareholders' Equity**

**Three Months ended March 31, 2025 and 2024**

**(in 000's of Canadian dollars unless otherwise noted)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |<br>**Note** |<br>**Share**<br> **Capital** |<br>**Subscriptions**<br> **Received** | **Equity**<br> **Portion of**<br>**Convertible Debentures** |<br>**Contributed**<br> **Surplus** | **Accumulated Other**<br>**Comprehensive Income (Loss)** |<br>**Deficit** |<br>**Total**<br> **Equity** |
| **Balance at December 31, 2023** |  | **127359** |  | **-1241** | **12302** | **11529** | **(103923)** | **48508** |
| Issuance of common shares and warrants for cash | 10 | 2326 |  |  | 475 |  |  | 2801 |
| Share issuance costs | 10 | (60) |  |  |  |  |  | (60) |
| Shares issued for settlement of debt | 10 | 10660 |  |  |  |  |  | 10660 |
| Share-based compensation | 10 |  |  |  | 392 |  |  | 392 |
| Net loss and comprehensive loss for the period |  | - | - | - | - | (3521) | (3782) | (7303) |
| **Balance at March 31, 2024** |  | **140285** | **-** | **1241** | **13169** | **8008** | **(107705)** | **54998** |
| Issuance of common shares and warrants for cash | 10 | 6283 |  |  | 561 |  |  | 6844 |
| Share issuance costs | 10 | (229) |  |  |  |  |  | (229) |
| Shares issued for settlement of debt | 10 | (9088) |  |  |  |  |  | (9088) |
| Shares issued for conversion of debt | 10 | 9265 |  |  |  |  |  | 9265 |
| Subscriptions received | 10 |  | 103 |  |  |  |  | 103 |
| Share-based compensation | 10 |  |  |  | 2342 |  |  | 2342 |
| Net loss and comprehensive loss for the period |  | - | - | - | - | (12646) | (12516) | (25162) |
| **Balance at December 31, 2024** |  | **146516** | **103** | **1241** | **16072** | **(4638)** | **(120221)** | **39073** |
| Issuance of common shares and warrants for<br> cash | 10 | 8061 | (21) |  | 585 |  |  | 8625 |
| Share issuance costs | 10 | (772) |  |  |  |  |  | (772) |
| Shares issued on exercise of options | 10 | 197 |  |  | (143) |  |  | 54 |
| Shares issued on exercise of warrants | 10 | 3306 |  |  |  |  |  | 3306 |
| Shares issued for settlement of debt | 10 | 90 |  |  |  |  |  | 90 |
| Share-based compensation | 10 |  |  |  | 851 |  |  | 851 |
| Net loss and comprehensive loss for the period |  | - | - | - | - | 1497 | (34622) | (33125) |
| **Balance at March 31, 2025** |  | **157398** | **82** | **1241** | **17365** | **(3141)** | **(154843)** | **18102** |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

**Almonty Industries Inc.**

**Unaudited Interim Condensed Consolidated Statements of Cash Flows**

(in 000's of Canadian dollars unless otherwise noted)

---

| | | | |
|:---|:---|:---|:---|
|  | | **Three months ended March 31,** | **Three months ended March 31,** |
|  | <br>**Note** | **2025** | **2024** |
| **Operating activities** |  |  |  |
| Net loss for the period |  | (34622) | (3782) |
| Add (deduct) non-cash items: |  |  |  |
| &nbsp;&nbsp;&nbsp;Share-based compensation | 10 | 851 | 392 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization |  | 288 | 290 |
| &nbsp;&nbsp;&nbsp;Interest expense |  | 1206 | 1423 |
| &nbsp;&nbsp;&nbsp;Income tax expense |  | 92 | 5 |
| &nbsp;&nbsp;&nbsp;Loss on valuation of embedded derivative liabilities | 8(c) | 2909 | 81 |
| &nbsp;&nbsp;&nbsp;Loss on valuation of warrant liabilities |  | 25810 | 109 |
| &nbsp;&nbsp;&nbsp;Unrealized foreign exchange loss |  | 1100 | 903 |
|  |  | (2366) | (579) |
| Changes in non-cash working capital |  |  |  |
| &nbsp;&nbsp;&nbsp;Trade receivables |  | (241) | 812 |
| &nbsp;&nbsp;&nbsp;Taxes recoverable |  | 146 | 195 |
| &nbsp;&nbsp;&nbsp;Inventories |  | (339) | 1147 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets |  | (937) |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities |  | (577) | (1505) |
| &nbsp;&nbsp;&nbsp;Deferred revenues |  | - | (987) |
| Net change in non-cash working capital |  | (1948) | (338) |
| Other assets |  | (87) | (204) |
| **Cash flow used in operating activities** |  | **(4401)** | **(1121)** |
| **Investing activities** |  |  |  |
| Additions to mining assets |  | (7802) | (7368) |
| **Cash flow used in investing activities** |  | **(7802)** | **(7368)** |
| **Financing activities** |  |  |  |
| Issuance of common shares | 10 | 11125 | 3057 |
| Share issuance costs paid | 18 | (772) | (60) |
| Exercise of options |  | 54 |  |
| Exercise of warrants |  | 3306 |  |
| Issuance of long-term debt | 8 | 8996 | 2017 |
| Repayment of long-term debt |  | (135) | (1179) |
| Interest paid |  | (1151) | (691) |
| **Cash flow provided by financing activities** |  | **21423** | **3144** |
| <br>Effect of foreign currency translation on cash |  | (65) | (136) |
| **Net increase (decrease) in cash for the period** |  | 9155 | (5481) |
| Cash at beginning of period |  | 7830 | 22019 |
| **Cash at end of period <sup>(1)</sup>** |  | **16985** | **16538** |
| **Supplemental disclosure with respect to cash flows:** |  |  |  |
| Non-cash investing and financing activites: |  |  |  |
| &nbsp;&nbsp;&nbsp;Additions to mining assets included in accounts payable |  | 2345 | 2117 |
| &nbsp;&nbsp;&nbsp;Shares issued for conversion of debt |  |  | 10660 |
| &nbsp;&nbsp;&nbsp;Shares issued for settlement of debt |  | 90 |  |
| &nbsp;&nbsp;&nbsp;Options exercised on a cashless basis |  | 110 | - |

---

*<sup>(1)</sup> Cash includes $3,506 (December 31, 2024 - $2,170) of restricted cash solely for use on the Sangdong Project.*

 

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

 

 

**Almonty Industries Inc.**

**Notes to the Unaudited Interim Condensed Consolidated Financial Statements**

**Three Months Ended March 31, 2025 and 2024**

(In 000's of Canadian dollars, unless otherwise noted)

 

1. Nature
 of operations

Almonty Industries Inc. ("Almonty") (with its subsidiaries, the "Company") is incorporated in Canada. The Company's shares are listed on the Toronto Stock Exchange ("TSX"), trading under the symbol AII. The Company's shares are also listed on the Australia Securities Exchange ("ASX"), under the symbol AII, and on the OTCQX Best Markets under the symbol ALMTF.

The head office of the Company is located at 100 King Street West, Suite 5700, Toronto, Ontario, M5X 1C7. The principal business of the Company is the mining, processing and shipping of tungsten concentrate from the Los Santos tungsten mine located near Salamanca, Spain (the "Los Santos Mine") and the Panasqueira tin and tungsten mine in Covilha, Castelo Branco, Portugal (the "Panasqueira Mine") as well as the development of the Sangdong tungsten project located in Gangwon Province, Republic of Korea, (the "Sangdong Project") and the exploration and evaluation of the Valtreixal tin and tungsten project, located in the province of Zamora in Western Spain (the "Valtreixal Project").

Although the Company has taken steps to verify the title to the properties on which it is conducting its exploration, development and mining activities, these procedures do not guarantee the Company's title. Property title may be subject to government licensing requirements or regulations, unrestricted prior agreements, unregistered claims, aboriginal land claims and non-compliance with regulatory and environmental requirements. The Company's mining and exploration activities are subject to laws and regulations relating to the environment, which are continually changing, and generally becoming more restrictive. The Company believes its operations are materially in compliance with all applicable laws and regulations. The Company has made, and expects to make in the future, expenditures to remain in compliance.

These unaudited interim condensed consolidated financial statements have been prepared on a going concern basis which assumes that the Company will continue operating for the foreseeable future and will be able to realize a return on its assets and discharge its liabilities and commitments in the ordinary course of its business.

Management assesses the Company's ability to continue as a going concern at each reporting date, using quantitative and qualitative information available. As at March 31, 2025, the Company had a working capital deficiency of $16,700 (December 31, 2024 - $30,538). During the three months ended March 31, 2025, the Company secured additional financings totaling $8,625.

In addition, during July, 2022, the Company closed its US$75.1 million project financing with the KfW IPEX-Bank ("KfW"). During the three months ended March 31, 2025, the Company received its ninth and final drawdown of US$906 (previous years: US$66,420).

During the year ended December 31, 2024, the Company negotiated the extension of the maturity date of various debt instruments totaling $29,072 (Notes 8(b), 8(i), 8(iii), 8(iv), 8(vii) and 8(ix)) to October 31, 2026.

During the year ended December 31, 2024, the Company issued 10,249,605 common shares of the Company in conjunction with the conversion of long-term debt totaling $9,225 and issued 2,583,316 common shares of the Company to settle certain accounts payable.

During April, 2024, the Company refinanced the Unicredit US$15,650 term loan with the KfW IPEX-Bank with a new maturity date of March 31, 2027 (Note 8(b)).

Finally, subsequent to March 31, 2025, the Company received $3,698 in conjunction with the exercise of share purchase warrants and stock options

The Company's current forecast indicates that it will have sufficient cash flows from operations and from financings outlined above for at least the next year to continue as a going concern and settle obligations as they come due. The assessment of the Company's ability to continue as a going concern, by its nature, relies on estimates of future cash flows and other future events, whose subsequent changes would materially impact the validity of such an assessment.

**Almonty Industries Inc.**

**Notes to the Unaudited Interim Condensed Consolidated Financial Statements**

**Three Months Ended March 31, 2025 and 2024**

(In 000's of Canadian dollars, unless otherwise noted)

2. Statement
 of compliance

These unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting.

These unaudited interim condensed consolidated financial statements were authorized for issuance by the Company's Board of Directors on May 13, 2025.

3. Basis
 of preparation and material accounting policies

The basis of presentation and accounting policies and methods of their application in these unaudited condensed interim consolidated financial statements, including comparatives, are consistent with those used in the Company's audited consolidated financial statements for the year ended December 31, 2024 and should be read in conjunction with those statements.

**Critical judgements**

The preparation of unaudited interim condensed consolidated financial statements requires the Company's management to make judgments, estimates and assumptions about the carrying amount of its assets and liabilities that are not readily apparent from other sources. These estimates and assumptions are disclosed in note 2(e) of the Company's audited annual consolidated financial statements for the year ended December 31, 2024. There have been no significant changes to the areas of estimation and judgment during the three months ended March 31, 2025.

**Material accounting policies**

These unaudited condensed interim consolidated financial statements, including comparatives, have been prepared following the same accounting policies and methods of computation as the audited annual financial statements for the year ended December 31, 2024 as disclosed in Note 2 and Note 3.

**Comparative figures**

Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations.

4. Inventories

---

| | | |
|:---|:---|:---|
|  | **March 31,**<br> **2025** | December 31, <br>2024 |
| Stores and fuel | **5971** | 5613 |
| Ore and in-process ore | **959** | 996 |
| Finished goods - WO<sub>3</sub> concentrate | **147** | 129 |
| **Current inventories** | **7077** | 6738 |
| Tailings | **32252** | 30982 |
| **Total inventories** | **39329** | 37720 |

---

As at March 31, 2025, tailings inventories are classified as long term as these inventories may not be processed within the next year.

**Almonty Industries Inc.**

**Notes to the Unaudited Interim Condensed Consolidated Financial Statements**

**Three Months Ended March 31, 2025 and 2024**

(In 000's of Canadian dollars, unless otherwise noted)

5. Mining assets

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |<br>**Plant and**<br>**Equipment** | **Mineral Property**<br>**Acquisition and**<br>**Development**<br>**Costs** |<br>**Exploration and**<br>**Evaluation**<br>**Projects** |<br><br>**Total** |
| **Cost** |  |  |  |  |
| Balance at December 31, 2023 | 60226 | 143227 | 8294 | 211747 |
| Additions | 20033 | 22291 | 126 | 42450 |
| Change in restoration provisions |  | 579 |  | 579 |
| Asset disposals | (2723) |  |  | (2723) |
| Translation adjustment | (1247) | (4140) | 172 | (5215) |
| Balance at December 31, 2024 | 76289 | 161957 | 8592 | 246838 |
| **Additions** | **4168** | **5971** | **8** | **10147** |
| **Translation adjustment** | **1158** | **(229)** | **352** | **1281** |
| **Balance at March 31, 2025** | **81615** | **167699** | **8952** | **258266** |
| **Accumulated Amortization** |  |  |  |  |
| Balance at December 31, 2023 | 10243 | 35823 |  | 46066 |
| Amortization | 1498 | (9) |  | 1489 |
| Asset disposals | (1649) |  |  | (1649) |
| Translation adjustment | 98 | (1032) | - | (934) |
| Balance at December 31, 2024 | 10190 | 34782 |  | 44972 |
| **Amortization** | **409** | **(3)** | **-** | **406** |
| **Translation adjustment** | **394** | **(85)** | **-** | **309** |
| **Balance at March 31, 2025** | **10993** | **34694** | **-** | **45687** |
| **Carrying Value** |  |  |  |  |
| Balance at December 31, 2024 | 66099 | 127175 | 8592 | 201866 |
| **Balance at March 31, 2025** | **70622** | **133005** | **8952** | **212579** |

---

6. Impairment
 Loss on Mining Assets

 

*Los Santos mine*

No indicators of impairment or reversal of impairment existed as at March 31, 2025 (December 31, 2024 – none).

*Sangdong mine*

No indicators of impairment or reversal of impairment existed as at March 31, 2025 (December 31, 2024 – none).

**Almonty Industries Inc.**

**Notes to the Unaudited Interim Condensed Consolidated Financial Statements**

**Three Months Ended March 31, 2025 and 2024**

(In 000's of Canadian dollars, unless otherwise noted)

7. Accounts Payable and Accrued Liabilities

---

| | | |
|:---|:---|:---|
|  | **March 31,**<br>**2025** | December 31,<br>2024 |
| Accounts payable | **18690** | 18469 |
| Accrued liabilities | **11325** | 10677 |
| **Total** | **30015** | 29146 |

---

8. Long-Term Debt

---

| | | |
|:---|:---|:---|
|  | **March 31,**<br>**2025** | **December 31,**<br>**2024** |
| Term and other loans - Euro (a) | **25514** | 24486 |
| Term and other loans - US dollar (b) | **8626** | 8634 |
| Promissory Note (b) | **250** | 250 |
| Convertible debentures (c) | **27297** | 27872 |
| Lease liabilities (d) | **508** | 210 |
| Mine Construction Facility (e) | **115067** | 106876 |
|  | **177262** | 168328 |
| Less: Current portion | **(17711)** | (21894) |
|  | **159551** | 146434 |
| Fair value of derivative liabilities (c) | **5288** | 1121 |
| Deferred financing costs | **(10938)** | (11427) |
|  | **153901** | 136128 |

---

&nbsp;&nbsp;&nbsp;&nbsp;a) Term
 and other loans – EURO

The Company's wholly-owned Spanish subsidiary, Daytal, has Euro-denominated term loan facilities totaling $1,764 (December 31, 2024 - $1,807). The loans are unsecured, have a maturity date of July 2028 (December 31, 2023 – July 2025) and require monthly payments of principal and interest. Of the loans, $58 (December 31, 2024 - $60) have fixed interest rates with a weighted average interest rate as at March 31, 2024 of 1.50% (December 31, 2024 – 1.50%). The remaining $1,706 (December 31, 2024 - $1,747) have floating interest rates, based on varying spreads from Euribor rates. As of March 31, 2025, the weighted average interest rate on these loans was 6.30% (December 31, 2024 – 6.30%).

VRS has a Euro-denominated term loan with a balance of $778 as of March 31, 2025 (December 31, 2024 - $758). The loan is unsecured, bears interest at 3.75% (December 31, 2024 - 3.75%), with monthly payments of principal and interest until it matures in July 2028 (December 31, 2024 - in July 2028).

**Almonty Industries Inc.**

**Notes to the Unaudited Interim Condensed Consolidated Financial Statements**

**Three Months Ended March 31, 2025 and 2024**

(In 000's of Canadian dollars, unless otherwise noted)

&nbsp;&nbsp;&nbsp;&nbsp;b) Term
 and other loans – US dollar

During April, 2024, the Company refinanced the Unicredit loan with the KfW IPEX-Bank, with a total principal amount of EUR$14,662. This new loan bears interest at the prevailing SOFR rate plus 1.9% per annum, with interest payable quarterly and with principal repayable at the maturity date of March 31, 2027.

The Company has issued two US$1,000 secured promissory notes in 2017 to Deutsche Rohstoff AG ("DRAG"), an existing shareholder of the Company, both of which had a maturity date of September 30, 2025 (extended to October 31, 2026 during fiscal 2024). The notes bear interest at 6.0% per annum, with the accrued interest due on the maturity date. The loans are secured by a pledge of the shares of Woulfe. As at March 31, 2025, the outstanding loan balance was $2,875 (US$2,000) (December 31, 2024 - $2,878 (US$2,000)).

During December 2019, the Company received $250 from DRAG pursuant to a promissory loan which bears interest at the rate of 6% per annum which had a maturity date of September 30, 2025 (extended to October 31, 2026 during fiscal 2024).

During January 2020, the Company received $1,320 (US$1,000) from DRAG pursuant to a promissory loan (increased to $3,960 (US$3,000) during fiscal 2022) which bears interest at the rate of 6% per annum and matured during September 2025 (extended to October 31, 2026 during fiscal 2024).

During December 2021, the Company received $1,270 (US$1,000) from DRAG pursuant to a promissory loan which bears interest at the rate of 5% per annum with and which had a maturity date of September 30, 2025 (extended to October 31, 2026 during fiscal 2024).

&nbsp;&nbsp;&nbsp;&nbsp;c) Convertible
 Debentures

Changes in the balances of the convertible debentures for the three months ended March 31, 2025 and the year ended December 31, 2024 are summarized as follows:

---

| | | |
|:---|:---|:---|
|  | **March 31,**<br> **2025** | December 31,<br> 2024 |
| Balance, beginning of period | **27872** | 32620 |
| Debentures settled for shares | **-** | (5963) |
| Debentures revalued, derivative liability component | **(1258)** |  |
| Interest accrued | **208** | 240 |
| Translation adjustment | 475 | 975 |
| Balance, end of period | 27297 | 27872 |

---

**Almonty Industries Inc.**

**Notes to the Unaudited Interim Condensed Consolidated Financial Statements**

**Three Months Ended March 31, 2025 and 2024**

(In 000's of Canadian dollars, unless otherwise noted)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) On
 December 18, 2018, the Company completed a non-brokered private placement of an unsecured
 convertible debenture with a principal amount of $2,000, which debenture was acquired by
 DRAG. The debenture had a maturity date of September 30, 2025 (extended to October 31, 2026
 during fiscal 2024) and bears interest at a rate of 6.0% per annum, payable at maturity.
 The Company may elect to convert the debenture into common shares upon the availability to
 the Company of full funding for the Sangdong Project at a conversion price equal to the higher
 of the price per common share in any equity financing completed by the Company after the
 date of issuance of the debenture and prior to the conversion or the maturity date of the
 debentures for purposes of financing the Sangdong Project and $0.628. However, the Company
 may not convert the debenture if at any time the Company's common shares trade below
 $0.628 per common share or if such conversion would result in DRAG holding more than 19.9%
 of the Company's issued and outstanding common shares.

(ii) On
 January 30, 2018, the Company issued a convertible debenture as part of a debt restructuring
 with a principal amount of $5,963, with a maturity date of October 31, 2024. The debenture
 was convertible into common shares of Almonty at $0.90 per common share. The debenture bears
 interest at a rate of 6.0% per annum, compounding quarterly, payable on the earlier of the
 maturity date or the date of conversion. The debenture was subject to covenants customary
 for such facilities and the lender had nominated a member of the Board of Directors. During
 the year ended December 31, 2024, this debenture, plus related accrued interest, was converted
 into 10,249,605 common shares of the Company.

(iii) The
 Company has a $6,000 (December 31, 2024 - $6,000) unsecured convertible debenture outstanding
 with DRAG, which bears interest at 4.0% per annum, payable at maturity. The debenture (including
 any accrued and unpaid interest) may be converted by the holder, at its option, into common
 shares of the Company at an exercise price of $1.45 per share. The maturity date of the loan
 was September 30, 2024, which was extended to October 31, 2026 during fiscal 2024, with all
 other terms remaining unchanged.

(iv) During
 March 2020, the Company received $2,680 (US$2,000) pursuant to the issuance of a convertible
 debenture which bears interest at the rate of 7%, is convertible at US$0.50 per common share
 with a maturity date of October 31, 2025 (extended to October 31, 2026 during the year ended
 December 31, 2024). As the convertible debenture is denominated in USD, the instrument contains
 an embedded derivative liability. The total liability (principal and embedded derivative)
 is capped at the face value of the instruments that were issued. The embedded derivative
 liability, as at March 31, 2024, was valued using the Black-Scholes Option Pricing Model
 assuming an expected life of 1.58 years, expected dividend yield of 0%, a risk-free interest
 rate of 2.93% and an expected volatility of 53.23%. Accordingly, the Company recognized a
 loss on valuation of the derivative liability in the amount of $495 for the three months
 ended March 31, 2025.

(v) During
 July 2020, the Company completed a non-brokered private placement of a secured convertible
 bond in the principal amount of $4,592 (EUR3.0 million). This secured convertible bond matured
 on July 13, 2023, and bore interest at a rate of 10% per annum, payable semi- annually, in
 cash. (see refinancing details in Note 8(c)(x)).

(vi) During
 February, 2021, the Company completed a non-brokered private placement of an unsecured convertible
 bond in the principal amount of $2,288 (EUR1,500). This unsecured convertible bond matured
 on February 8, 2024, and bore interest at a rate of 10% per annum, payable semi-annually,
 in cash. (see refinancing details in Note 8(c)(x)).

**Almonty Industries Inc.**

**Notes to the Unaudited Interim Condensed Consolidated Financial Statements**

**Three Months Ended March 31, 2025 and 2024**

(In 000's of Canadian dollars, unless otherwise noted)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) During
 November 2021, the Company completed a non-brokered private placement of four unsecured convertible
 bonds in the principal amounts of $2,302 (EUR1,600) (see refinancing details in Note 8(c)(x)),
 $1,268 (US$1,000), $144 (EUR100), and $190 (US$150), respectively. These unsecured convertible
 bonds matured on October 31, 2024 (subsequently extended to October 31, 2026 during fiscal
 2024), and bear interest at a rate of 5% per annum, payable semi- annually, in cash. The
 outstanding principal amount of the bonds plus any related unpaid accrued interest is convertible
 into common shares of the Company at the option of the holder at the fixed conversion price
 of EUR0.70 per share, US$0.85 per share, $1.05 per share and US$0.83 per share, respectively,
 for the principal and at the conversion price of the greater of i) EUR0.70 (equivalent to
 $1.05) and ii) the EURO equivalent of the volume weighted average price of the common shares
 of the Company on the TSX for the five trading days immediately preceding the date of conversion
 for related accrued interest. As the convertible debentures are denominated in EURO and USD,
 the instruments contain embedded derivative liabilities. The total liability (principal and
 embedded derivative) is capped at the face value of the instruments that were issued. The
 embedded derivative liability, as at March 31, 2025, was valued using the Black- Scholes
 Option Pricing Model assuming an expected life of 1.58 years, expected dividend yield of
 0%, a risk-free interest rate of 2.93% and an expected volatility of 53.23%. Accordingly,
 the Company recognized a loss on valuation of the derivative liabilities in the amount of
 $159 for the three months ended March 31, 2025.

(viii) During
 February 2022, the Company received $1,900 (US$1,500) pursuant to the issuance of a convertible
 debenture which bears interest at the rate of 5% (amended to 7% during fiscal 2024), is convertible
 at US$0.83 per share (amended to US$0.50 per share during fiscal 2024) and matured October
 31, 2024 (extended to October 31, 2026 during fiscal 2024). As the convertible debenture
 is denominated in USD, the instrument contains an embedded derivative liability. The total
 liability (principal and embedded derivative) is capped at the face value of the instruments
 that were issued. The embedded derivative liability, as at March 31, 2025, was valued using
 the Black-Scholes Option Pricing Model assuming an expected life of 1.58 years, expected
 dividend yield of 0%, a risk-free interest rate of 2.93% and an expected volatility of 53.23%.
 The total liability (principal and embedded derivative) is capped at the face value of the
 instruments that were issued. Accordingly, the Company recognized a loss on valuation of
 the derivative liability in the amount of $444 for the three months ended March 31, 2025.

(ix) During
 June 2022, the Company received $1,288 (US$1,000) pursuant to the issuance of a convertible
 debenture which bears interest at the rate of 7%, is convertible at US$0.84 per share and
 matures June 7, 2025. As the convertible debenture is denominated in USD, the instrument
 contains an embedded derivative liability. The embedded derivative liability, as at March
 31, 2025, was valued using the Black-Scholes Option Pricing Model assuming an expected life
 of 0.25 years, expected dividend yield of 0%, a risk-free interest rate of 2.93% and an expected
 volatility of 53.23%. The total liability (principal and embedded derivative) is capped at
 the face value of the instruments that were issued. Accordingly, the Company recognized a
 gain on valuation of the derivative liability in the amount of $121 for the three months
 ended March 31, 2025.

**Almonty Industries Inc.**

**Notes to the Unaudited Interim Condensed Consolidated Financial Statements**

**Three Months Ended March 31, 2025 and 2024**

(In 000's of Canadian dollars, unless otherwise noted)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) During
 September 2023, the Company completed the restructuring of three convertible loans with a
 total principal balance of EUR6,100 (Notes 8(c)(v), 8(c)(vi) and 8(c)(viii), plus one bond
 with a principal balance of EUR 1,377 (Note 8(a)), with maturity dates ranging between July
 2023 and June, 2025, into one new convertible debenture totaling EUR7,900, This new debenture
 is convertible into common shares of the Company at EUR0.35 per share, bears interest at
 the rate of 9% per annum (payable quarterly), and matures September 15, 2025. As this convertible
 debenture is denominated in EURO, the instrument contains an embedded derivative liability.
 As a result, the Company allocated $11,180 to the liability component and $477 to the derivative
 liability on issuance. The embedded derivative liability, on issuance, was valued using the
 Black-Scholes Option Pricing Model assuming an expected life of 1.85 years, expected dividend
 yield of 0%, a risk-free interest rate of 4.56% and an expected volatility of 69.51%. The
 embedded derivative liability, as at March 31, 2025, was valued using the Black-Scholes Option
 Pricing Model assuming an expected life of 0.46 years, expected dividend yield of 0%, a risk-free
 interest rate of 2.93% and an expected volatility of 53.23%. The total liability (principal
 and embedded derivative) is capped at the face value of the instruments that were issued.
 Accordingly, the Company recognized a loss on valuation of the derivative liability in the
 amount of $2,948 for the three months ended March 31, 2025.

(xi) The
 Company's term loans and convertible debentures include various positive and negative
 covenants as well as cross-default clauses which could cause several defaults in the event
 the Company is in default on any of its loan agreements. As of March 31, 2025, the Company
 was in compliance with all covenants under its term loans and convertible debentures.

&nbsp;&nbsp;&nbsp;&nbsp;d) Lease
 Liabilities

The capital leases relate to certain equipment and vehicles. The leases carry implied interest rates of between 3.64% and 6.04% (December 31, 2024 – 4.06% and 6.46%).

&nbsp;&nbsp;&nbsp;&nbsp;e) Mine
 Construction Loan Facility

During July 2022, the Company completed a US$75.1 million senior secured term loan facility with KfW for the financing and construction of the Sangdong Project and received US$906 during July 2024 (Previous years: US$74,194) in conjunction with the ninth and final drawdown on this loan facility. The loan bears interest at the rate of SOFR plus 2.3%, capitalized quarterly, with repayment of principal quarterly over a 6.25-year period commencing six months subsequent to commencement of the mine's ramp-up period.

**Almonty Industries Inc.**

**Notes to the Unaudited Interim Condensed Consolidated Financial Statements**

**Three Months Ended March 31, 2025 and 2024**

(In 000's of Canadian dollars, unless otherwise noted)

&nbsp;&nbsp;&nbsp;&nbsp;f) Payments are due under the
 terms of the Company's loans and leases for each of the following years ending March 31:

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;2026 | 17851 |
| &nbsp;&nbsp;&nbsp;2027 | 45512 |
| &nbsp;&nbsp;&nbsp;2028 | 42374 |
| &nbsp;&nbsp;&nbsp;2029 | 18649 |
| &nbsp;&nbsp;&nbsp;2030 | 54133 |
|  | 178519 |
| &nbsp;&nbsp;&nbsp;Less: Unamortized discount | (1231) |
| &nbsp;&nbsp;&nbsp;Less: Imputed interest on capital lease obligations | (26) |
|  | 177262 |

---

&nbsp;&nbsp;&nbsp;&nbsp;g) Debt Continuity

---

| | | |
|:---|:---|:---|
|  | **March 31,**<br> **2025** | December 31, <br>2024 |
| Balance, beginning of period | **168328** | 142995 |
| Cash flows |  |  |
| &nbsp;&nbsp;&nbsp;Issuance of debt | **8996** | 43643 |
| &nbsp;&nbsp;&nbsp;Scheduled debt repayments | **(135)** | (23608) |
| Non-cash changes |  |  |
| &nbsp;&nbsp;&nbsp;Conversion of debt with shares | **-** | (5963) |
| &nbsp;&nbsp;&nbsp;Accrued interest | **209** | 326 |
| &nbsp;&nbsp;&nbsp;Amount reclassified to derivative liability | (1258) |  |
| &nbsp;&nbsp;&nbsp;Translation adjustment and other | **1122** | 10935 |
| Balance, end of period | **177262** | 168328 |
| Fair value of derivative liability | **5288** | **1121** |
|  | **182550** | 169449 |

---

**Almonty Industries Inc.**

**Notes to the Unaudited Interim Condensed Consolidated Financial Statements**

**Three Months Ended March 31, 2025 and 2024**

(In 000's of Canadian dollars, unless otherwise noted)

9. Restoration
 Provision and Other Liabilities

&nbsp;&nbsp;&nbsp;&nbsp;a) Included
 in other long-term liabilities are provisions for the future restoration of the Company's
 mining properties, in accordance with local requirements, as follows:

---

| | |
|:---|:---|
| Balance at December 31, 2023 | 22820 |
| Revisions in estimated cash flows and changes in assumptions | 579 |
| Accretion expense | 495 |
| Translation adjustment | 396 |
| Balance at December 31, 2024 | 24290 |
| **Accretion expense** | **21** |
| **Translation adjustment** | **871** |
| **Balance at March 31, 2025** | **25182** |

---

As at March 31, 2025, there is a restoration provision of $21,082 (December 31, 2024 - $20,122) with respect to the Panasqueira Mine, representing management's estimate of the present value of the rehabilitation costs relating to the mine site which are estimated to total $23,694 and are to be incurred after the mine ceases production subsequent to 2045. BTW has assumed an inflation rate of 2.0% per year in calculating its estimates and a discount rate of 0.35%.

There is a restoration provision of $1,030 (December 31, 2024 - $1,008) with respect to Daytal's future obligation to restore and reclaim the mine once it has ceased the processing of tungsten from the Los Santos Mine. The restoration provision represents management's estimate of the present value of the rehabilitation costs relating to the mine site which are estimated to total $982 and are to be incurred beginning in 2027 after Daytal ceases processing operations. Daytal has used a 5.5% discount rate and assumes an inflation rate of 2% per year in calculating its estimates. The Company has filed, and is awaiting final approval of its mine plan and restoration provision by the relevant authorities in Spain. Banco Popular has posted a bank warranty of $280 (€180) on behalf of Daytal with the Region of Castilla y Leon, Trade and Industry Department as a form of deposit to cover the expected costs of restoring the mining property as required by Daytal's Environmental Impact Statement that forms a part of its mining and exploitation license on the Los Santos Mine.

There is a restoration provision of $3,070 (December 31, 2024 - $3,161) with respect to the Woulfe properties. The provision was determined based on a levy imposed by the relevant local government authority.

&nbsp;&nbsp;&nbsp;&nbsp;b) Included
 in other long-term liabilities is $574 (December 31, 2024 - $575) related to employee benefit obligations in respect of government
 mandated pension plans in Woulfe's Korean subsidiary and in BTW.

**Almonty Industries Inc.**

**Notes to the Unaudited Interim Condensed Consolidated Financial Statements**

**Three Months Ended March 31, 2025 and 2024**

(In 000's of Canadian dollars, unless otherwise noted)

10. Share Capital

**Common Shares**

---

| | | |
|:---|:---|:---|
|  | **Number of**<br> **Shares** | **Amount**<br> **$** |
| **Authorized - Unlimited number of common shares** |  |  |
| **Issued and outstanding** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>Outstanding at December 31, 2023 | 233888668 | 127359 |
| Shares issued for cash | 18389119 | 8320 |
| Shares issued on conversion of long-term debt | 2813785 | 1572 |
| Shares issued on exercise of warrants | 10329251 | 9265 |
| Outstanding at December 31, 2024 | 265420823 | 146516 |
| **Shares issued for cash** | **13360333** | **7288** |
| **Shares issued on exercise of options** | **585654** | **197** |
| **Shares issued on exercise of warrants** | **3313975** | **3307** |
| **Shares issued for settlement of debt** | 100000 | 90 |
| **Outstanding at March 31, 2025** | 282780785 | 157398 |

---

During January 2024, the Company issued 10,329,251 common shares as settlement of a debt of $9,265.

During February 2024, the Company issued 2,583,316 common shares as settlement of a debt of $1,395.

During March to May 2024, the Company issued 5,354,172 common share units for proceeds totalling $2,945 in conjunction with the closing of a non-brokered private placement. Each unit is comprised of one common share and one warrant, with each warrant enabling the holder to acquire one additional common share with an exercise price of $0.74, expiring two years from the date of issuance. The warrants were valued at $651 using the weighted average fair value. The fair value of the warrants was determined using the Black-Scholes Option Pricing Model using the following assumptions: Risk-free rate – 4.17% - 4.25%; expected volatility – 57.00% - 58.15%; expected life – 2 years; dividend rate – nil.

During March to May 2024, the Company issued 6,451,613 CDI units for proceeds totaling $3,548 in conjunction with the closing of a non-brokered private placement. Each unit is comprised of one CDI and one warrant, with each warrant enabling the holder to acquire one additional common share with an exercise price of AUD $0.84, expiring two years from date of issuance. The warrants were valued at $1,024 using the weighted average fair value. The fair value of the warrants was determined using the Black-Scholes Option Pricing Model using the following assumptions: Risk-free rate – 4.17% - 4.23%; expected volatility – 57.03% - 61.66%; expected life – 2 years; dividend rate – nil.

**Almonty Industries Inc.**

**Notes to the Unaudited Interim Condensed Consolidated Financial Statements**

**Three Months Ended March 31, 2025 and 2024**

(In 000's of Canadian dollars, unless otherwise noted)

During December 2024, the Company issued 2,000,000 common share units for proceeds totalling $1,640 in conjunction with the closing of a non-brokered private placement. Each unit is comprised of one common share and one warrant, with each warrant enabling the holder to acquire one additional common share with an exercise price of $1.14, expiring three years from the date of issuance. The warrants were valued at $386 using the weighted average fair value. The fair value of the warrants was determined using the Black-Scholes Option Pricing Model using the following assumptions: Risk-free rate – 2.97%; expected volatility – 53.65%; expected life – 3 years; dividend rate – nil.

During December 2024, the Company issued 4,583,334 CDI units for proceeds totalling $3,677 (AUD$4,125) in conjunction with the closing of a non-brokered private placement. Each unit is comprised of one CDI and one warrant, with each warrant enabling the holder to acquire one additional common share with an exercise price of AUD $1.25, expiring three years from the date of issuance. The warrants were valued at $1,140 using the weighted average fair value. The fair value of the warrants was determined using the Black-Scholes Option Pricing Model using the following assumptions: Risk-free rate – 2.90%; expected volatility – 53.38%; expected life – 3 years; dividend rate – nil.

During December 2024, the Company issued 230,469 common shares as settlement of a debt of $177.

During January 2025, the Company issued 7,500,000 CDI units, for proceeds totaling $6,075 (AUD $6,750), in conjunction with the closing of a non-brokered private placement. Each unit is comprised of one CDI and one warrant, with each warrant enabling the holder to acquire one additional common share with an exercise price of AUD $1.25, expiring January 14, 2028. The warrants were initially valued at $1,528 and subsequently revalued at March 31, 2025 at $8,174 (December 31, 2024 - $0).

During January 2025, the Company issued 2,527,000 common share units for proceeds totalling $2,072 in conjunction with the closing of a non-brokered private placement. Each unit is comprised of one common share and one warrant, with each warrant enabling the holder to acquire one additional common share with an exercise price of $1.14, expiring three years from the date of issuance. The warrants were valued at $585 using the weighted average fair value. The fair value of the warrants was determined using the Black-Scholes Option Pricing Model using the following assumptions: Risk-free rate – 2.64%; expected volatility – 54.08%; expected life – 3 years; dividend rate – nil.

During February 2025, the Company issued 3,333,333 CDI units, for proceeds totaling $2,700 (AUD $3,000), in conjunction with the closing of a non-brokered private placement. Each unit is comprised of one CDI and one warrant, with each warrant enabling the holder to acquire one additional common share with an exercise price of AUD $1.25, expiring February 7, 2028. The warrants were initially valued at $972 and subsequently revalued at March 31, 2025 at $3,982 (December 31, 2024 - $nil).

During January 2025, the Company issued 100,000 common shares as settlement of a debt of $90.

**Almonty Industries Inc.**

**Notes to the Unaudited Interim Condensed Consolidated Financial Statements**

**Three Months Ended March 31, 2025 and 2024**

(In 000's of Canadian dollars, unless otherwise noted)

**Warrants**

As at March 31, 2025, the outstanding warrants, all of which are exercisable, are summarized as follows:

---

| | |
|:---|:---|
|  | **Number of**<br> **Warrants** |
| Warrants outstanding at December 31, 2023 | 16427214 |
| Warrants issued | 18389119 |
| Warrants expired | (8075396) |
| Warrants outstanding at December 31, 2024 | 26740937 |
| **Warrants issued** | **13360333** |
| **Warrants exercised** | **(3313975)** |
| **Warrants outstanding at March 31, 2025** | **36787295** |

---

---

| | | | |
|:---|:---|:---|:---|
| **Exercise Prices** | **Number Outstanding**<br> **Exercisable** | **Weighted Average**<br> **Remaining**<br> **Contractual Life** | **Weighted Average**<br> **Exercise Price** |
| $0.45 - $0.69 | 5366013 | 1.59 | $0.55 |
| $0.70 - $0.99 | 12009785 | 1.00 | $0.75 |
| $1.00 - $1.21 | 19411497 | 2.55 | $1.13 |
|  | **36787295** | **1.90** | $**0.92** |

---

**Incentive Stock Options**

Under Almonty's stock option plan and newly approved Omnibus Share Incentive Plan, the Company can grant options to directors, officers, employees and consultants for up to 56,000,000 common shares of the Company. Under the plan, the exercise price of an option may not be less than the closing market price during the trading day immediately preceding the date of the grant of the option, less any applicable discount allowed by the TSX. Options can be granted for a maximum term of fifteen years and vest at the discretion of the Company's Board of Directors. The existing plans were approved by Almonty's shareholders at its Annual and Special Meeting of Shareholders held on April 30, 2025.

**Almonty Industries Inc.**

**Notes to the Unaudited Interim Condensed Consolidated Financial Statements**

**Three Months Ended March 31, 2025 and 2024**

(In 000's of Canadian dollars, unless otherwise noted)

As of March 31, 2025, the outstanding options, are summarized as follows:

---

| | |
|:---|:---|
|  | **Number of**<br>**Share Options** |
| Options outstanding at December 31, 2023 | 17075000 |
| Options granted | 5705000 |
| Options expired | (1000000) |
| Options outstanding at December 31, 2024 | 21780000 |
| **Options granted** | **1122000** |
| **Options exercised** | **(585654)** |
| **Options expired** | **(219346)** |
| **Options outstanding at March 31, 2025** | **22097000** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Range of Exercise Prices** | **Number Outstanding** | **Number Exercisable** | **Weighted Average**<br> **Remaining**<br> **Contractual Life** | **Weighted Average <br>Exercise Price** |
| $0.33 - $0.59 | 5750000 | 5750000 | 3.41 | $0.47 |
| $0.60 - $0.79 | 5250000 | 5250000 | 4.32 | $0.66 |
| $0.80 - $1.23 | 11097000 | 10647242 | 2.48 | $0.96 |
|  | **22097000** | **21647242** | **3.16** | $**0.76** |

---

During January 2024, the Company granted 1,000,000 share options to employees and consultants of the Company pursuant to the Company's stock option plan. The Options vested immediately and are exercisable for a period of five years from the grant date at $0.56 per common share. The grant resulted in the recording of share-based compensation expense of $312. The value of the stock options granted was determined using the Black-Scholes option pricing model using a risk-free interest rate of 3.32%, volatility of 62.99% based on historical volatility, expected life of 5 years, and no expected dividend yield.

During May 2024, the Company granted 1,275,000 share options to employees and consultants of the Company pursuant to the Company's stock option plan. The Options vested immediately and are exercisable for a period of five years from the grant date at $0.56 per common share. The grant resulted in the recording of share-based compensation expense of $312. The value of the stock options granted was determined using the Black-Scholes option pricing model using a risk-free interest rate of 3.32%, volatility of 62.99% based on historical volatility, expected life of 5 years, and no expected dividend yield.

During July 2024, the Company granted 3,030,000 share options to employees and consultants of the Company pursuant to the Company's stock option plan. The Options vested immediately and are exercisable for a period of five years from the grant date at $0.66 per common share. The grant resulting in the recording of share-based compensation expense of $1,104. The value of the stock options granted was determined using the Black-Scholes option pricing model using a risk-free interest rate of 3.49%, volatility of 61.75% based on historical volatility, expected life of 5 years, and no expected dividend yield.

**Almonty Industries Inc.**

**Notes to the Unaudited Interim Condensed Consolidated Financial Statements**

**Three Months Ended March 31, 2025 and 2024**

(In 000's of Canadian dollars, unless otherwise noted)

During August 2024, the Company granted 200,000 share options to employees and consultants of the Company pursuant to the Company's stock option plan. The Options vested immediately and are exercisable for a period of five years from the grant date at $0.685 per common share. The grant resulting in the recording of share-based compensation expense of $86. The value of the stock options granted was determined using the Black-Scholes option pricing model using a risk-free interest rate of 2.98%, volatility of 61.38% based on historical volatility, expected life of 5 years, and no expected dividend yield.

During November 2024, the Company granted 200,000 share options to employees and consultants of the Company pursuant to the Company's stock option plan. The Options vested immediately and are exercisable for a period of five years from the grant date at $0.81 per common share. The grant resulting in the recording of share-based compensation expense of $98. The value of the stock options granted was determined using the Black-Scholes option pricing model using a risk-free interest rate of 3.10%, volatility of 61.51% based on historical volatility, expected life of 5 years, and no expected dividend yield.

During February 2025, the Company granted 250,000 share options to employees and consultants of the Company pursuant to the Company's stock option plan. The Options vested immediately and are exercisable for a period of five years from the grant date at $1.195 per common share. The grant resulting in the recording of share-based compensation expense of $204. The value of the stock options granted was determined using the Black-Scholes option pricing model using a risk-free interest rate of 2.66%, volatility of 60.54% based on historical volatility, expected life of 5 years, and no expected dividend yield.

During February 2025, the Company granted 200,000 share options to employees and consultants of the Company pursuant to the Company's stock option plan. The Options vested immediately and are exercisable for a period of five years from the grant date at $1.915 per common share. The grant resulting in the recording of share-based compensation expense of $206. The value of the stock options granted was determined using the Black-Scholes option pricing model using a risk-free interest rate of 2.76%, volatility of 61.48% based on historical volatility, expected life of 5 years, and no expected dividend yield.

During March 2025, the Company granted 522,000 share options to employees and consultants of the Company pursuant to the Company's stock option plan. The Options vest over 3 years and are exercisable for a period of five years from the grant date at $1.89 per common share. The grant resulting in the recording of share-based compensation expense of $71. The value of the stock options granted was determined using the Black-Scholes option pricing model using a risk-free interest rate of 2.69%, volatility of 60.34% based on historical volatility, expected life of 5 years, and no expected dividend yield.

**Almonty Industries Inc.**

**Notes to the Unaudited Interim Condensed Consolidated Financial Statements**

**Three Months Ended March 31, 2025 and 2024**

(In 000's of Canadian dollars, unless otherwise noted)

During March 2025, the Company granted 150,000 share options to employees and consultants of the Company pursuant to the Company's stock option plan. The Options vest immediately and are exercisable for a period of five years from the grant date at $1.62 per common share. The grant resulting in the recording of share-based compensation expense of $120. The value of the stock options granted was determined using the Black-Scholes option pricing model using a risk-free interest rate of 2.72%, volatility of 60.20% based on historical volatility, expected life of 5 years, and no expected dividend yield.

**Restricted Share Units**

RSUs granted under the Company's RSU Plan to employees vest in thirds at the end of each year from the date of grant and are convertible into shares on a 1:1 basis. RSU's issued were valued based on the value of the underlying shares at the date of issuance.

As of March 31, 2025, the outstanding RSU's, are summarized as follows:

---

| | | |
|:---|:---|:---|
|  | **Number of** | **Number of** |
|  | **RSUs** | **RSUs** |
| Units, December 31, 2023 |  | 1750000 |
| Units granted | | 2,100,000 |
| **Units outstanding at December 31, 2024** |  | **3,850,000** |
| **Units granted** | | **913,400** |
| **Units outstanding at March 31, 2025** | | **4,763,400** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Range of Exercise Prices** | **Number Outstanding** | **Number Exercisable** | **Weighted Average**<br> **Remaining**<br> **Contractual Life** | **Weighted Average <br>Exercise Price** |
| $0.52 - $0.66 | 2550000 | 791340 | 2.15 | $0.64 |
| $0.87 - $0.92 | 1300000 | 1252030 | 0.07 | $0.91 |
| $2.23 - $2.34 | 913400 | 17175 | 2.99 | $2.33 |
|  | **4763400** | **2060545** | **1.74** | $**1.04** |

---

During the three months ended March 31, 2025, the Company granted 913,400 RSU's to directors of the Company pursuant to the Company's RSU plan. The value of the RSU's granted was based on the value of the underlying shares at the date of issuance. The grant resulted in the recording of share-based compensation of $17 during the three months ended March 31, 2025.

**Almonty Industries Inc.**

**Notes to the Unaudited Interim Condensed Consolidated Financial Statements**

**Three Months Ended March 31, 2025 and 2024**

(In 000's of Canadian dollars, unless otherwise noted)

11. Warrant
 Liabilities

Under IFRS, certain warrants are treated as a derivative liability because these were denominated in currencies other than the Company's functional currency of Canadian dollars and, accordingly, the Company was not able to demonstrate that it met the "fixed for fixed" criterion per International Accounting Standard ("IAS") *32 Financial Instruments: Presentation* . As a result, at the balance sheet date, these warrants issued as part of a unit private placement must be recorded at their fair value.

The Company uses the Black-Scholes option pricing model to measure the fair value of warrant liabilities, wherein the Company's trading price is the main driver for calculating the resulting amount. The revaluation of this derivative liability arising from an increase in share price from Cdn$0.91 per share at December 31, 2024, to Cdn$2.25 per share at March 31, 2025, has resulted in the recognition of loss of $25,810 (2024 - $109) in the statements of operations and comprehensive loss for the three months ended March 31, 2025.

Changes in the balance of the warrant liabilities for the three months ended March 31, 2025 and year ended December 31, 2024 are summarized as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31,**<br> **2025** | **March 31,**<br> **2025** | December 31, <br>2024 | December 31, <br>2024 |
| Balance, beginning of period |  | **5,154** |  | 958 |
| Warrants issued |  | **2,501** |  | 2165 |
| Fair Value revaluation | | **25,810** | | 2,031 |
| Balance, end of period | | **33,465** | | 5,154 |

---

The fair value of the warrants outstanding was estimated using the Black-Scholes option pricing model with the following weighted average assumptions:

---

| | | |
|:---|:---|:---|
|  | **2025** | 2024 |
| Stock Price | $**2.25** | $0.91 |
| Exercise Price | $**0.88** | $0.72 |
| Expected life | **2.18 years** | 1.99 years |
| Risk-free interest rate | **2.46%** | 2.93% |
| Expected volatility | **65.97%** | 53.23% |
| Expected dividends | **nil** | nil |

---

**Almonty Industries Inc.**

**Notes to the Unaudited Interim Condensed Consolidated Financial Statements**

**Three Months Ended March 31, 2025 and 2024**

(In 000's of Canadian dollars, unless otherwise noted)

12. Income
 Taxes

The major components of income tax expense for the three months ended March 31, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, <br>2025** | **March 31, <br>2025** | March 31, <br>2024 | March 31, <br>2024 |
| Tax expense applicable to: |  |  |  |  |
| Current | | 92 | | 5 |
| Income tax expense | | 92 | | 5 |

---

The Company has the following non-capital tax losses that expire in the years indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Canada | Spain | Portugal | Korea |
|  | **CAD** | **EUR** | **EUR** | **CAD** |
| 2025 | 2092 |  |  |  |
| 2026 | 3625 |  |  |  |
| 2027 | 2260 |  |  |  |
| 2028 | 1974 |  |  | 39 |
| 2029 |  | 286 |  | 24 |
| 2030 | 16 |  |  | 1790 |
| 2031 | 473 |  |  | 1772 |
| 2032 or later | 57974 | 18341 | 7384 | 29344 |
| Non-Capital losses in local currency | 68414 | 18627 | 7384 | 32969 |
| **Non-Capital losses in CAD** | **68414** | **28946** | **11475** | **32969** |
| **Total Non-Capital losses in CAD** |  |  |  | **141804** |

---

13. Employee
 Compensation

The Company incurred costs of $5,322 with respect to the costs of employee compensation and benefits for the three months ended March 31, 2025 (three months ended March 31, 2024 - $4,674).

14. Segment
 Information

The Company's operations are segmented on a regional basis and are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker who is responsible for allocating resources and assessing performance of the operating segments has been defined as the Chief Executive Officer.

**Almonty Industries Inc.**

**Notes to the Unaudited Interim Condensed Consolidated Financial Statements**

**Three Months Ended March 31, 2025 and 2024**

(In 000's of Canadian dollars, unless otherwise noted)

Management monitors the business of the Company as a single commodity segment, whose operations relate to the exploration and mining of tungsten across three geographical locations; the Iberian Peninsula (Spain and Portugal), Australia (2018), and the Republic of Korea.

For management reporting purposes, the Company is organized into business units based on its products and activities, and has four reportable operating segments, as follows:

● The Los Santos Mine located in Spain whose operations relate to the exploration and mining of tungsten that is ultimately sold as tungsten concentrate;

● The Panasqueira Mine located in Covilha Castelo Branco, Portugal whose operations relate to the exploration and mining of tungsten which is ultimately sold as tungsten concentrate, as well as the production of copper and tin concentrate by-products that are sold as concentrate;

● The Valtreixal Project located in Spain whose operations relate to the exploration and evaluation activities of the Valtreixal tin/tungsten project; and

● Woulfe, whose properties are located in Gangwon Province, Republic of Korea, and whose operations relate primarily to the development of the Sangdong Project.

The Company monitors the operating results of its operating segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on income (losses) from mining operations and is measured consistently with income (losses) from mining operations in the consolidated financial statements.

The accounting policies used by the Company in reporting segments internally are the same as those contained in Note 3.

Segmented information for the three months ended March 31, 2025 and 2024 is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Three months ended March, 31, 2025** | **Los Santos** | **Valtreixal** | **Woulfe** | **Panasquiera** | **Corporate** | **Consolidated** |
| Revenue |  |  | 15 | 7893 |  | 7908 |
| Production costs |  |  |  | 6588 |  | 6588 |
| Care and maintenance costs | 280 |  |  |  |  | 280 |
| Depreciation and amortization | 5 | - | - | 283 | - | 288 |
| **(Loss) earnings from mining operations** | (285) |  | 15 | 1022 |  | 752 |
| **Expenses** |  |  |  |  |  |  |
| General and administrative | 148 | 1 | (116) | 579 | 2794 | 3406 |
| Share-based compensation |  |  |  |  | 851 | 851 |
| Interest expense | 25 |  |  |  | 1181 | 1206 |
| Loss on valuation of embedded derivative liabilities |  |  |  |  | 2909 | 2909 |
| Loss on valuation of warrant liabilities |  |  |  |  | 25810 | 25810 |
| Foreign exchange (gain) loss | (1) | 2 | - | 59 | 1040 | 1100 |
| **(Loss) income before income taxes** | (457) | (3) | 131 | 384 | (34585) | (34530) |
| **Capital expenditures** | - | 7 | 10339 | 511 | - | 10857 |

---

**Almonty Industries Inc.**

**Notes to the Unaudited Interim Condensed Consolidated Financial Statements**

**Three Months Ended March 31, 2025 and 2024**

(In 000's of Canadian dollars, unless otherwise noted)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **As at March 31, 2025** | | | | | | |
| **Assets** | | | | | | |
| &nbsp;&nbsp;&nbsp;Current | 1067 | 32 | 7786 | 8839 | 13378 | 31102 |
| &nbsp;&nbsp;&nbsp;Non-current | 32680 | 8952 | 178186 | 28121 | - | 247939 |
| **Total Assets** | 33747 | 8984 | 185972 | 36960 | 13378 | 279041 |
| **Total Liabilities** | 3680 | 1720 | 115260 | 28430 | 111849 | 260939 |
| **As at December 31, 2024** |  |  |  |  |  |  |
| **Assets** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Current | 1101 | 117 | 6111 | 7976 | 5271 | 20576 |
| &nbsp;&nbsp;&nbsp;Non-current | 31397 | 8592 | 168942 | 26842 | - | 235773 |
| **Total Assets** | 32498 | 8710 | 175052 | 34818 | 5271 | 256349 |
| **Total Liabilities** | 3845 | 1728 | 107209 | 26799 | 77695 | 217276 |
| **Three months ended March, 31, 2025** | **Los Santos** | **Valtreixal** | **Woulfe** | **Panasquiera** | **Corporate** | **Consolidated** |
| Revenue |  |  |  | 7824 |  | 7824 |
| Production costs |  |  |  | 6665 |  | 6665 |
| Care and maintenance costs | 263 |  |  |  |  | 263 |
| Depreciation and amortization | 6 | - | - | 284 | - | 290 |
| **Earnings (loss) from mining operations** | (269) |  |  | 875 |  | 606 |
| **Expenses** |  |  |  |  |  |  |
| General and administrative | 259 | 5 | (34) | 562 | 683 | 1475 |
| Share-based compensation |  |  |  |  | 392 | 392 |
| Interest expense | (1) | 8 |  |  | 1416 | 1423 |
| Loss (gain) on valuation of embedded derivative liabilities |  |  |  |  | 81 | 81 |
| Loss (gain) on valuation of warrant liabilities |  |  |  |  | 109 | 109 |
| Foreign exchange loss | 9 | 4 | 2707 | (2796) | 979 | 903 |
| **Income (loss) before income taxes** | (536) | (17) | (2673) | 3109 | (3660) | (3777) |
| **Capital expenditures** | 1 | 39 | 9226 | 102 | - | 9368 |

---

Information by geographical region is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Revenue** | **Revenue** | **Non-current Assets** | **Non-current Assets** |
| <br>**Country** | **Three months**<br> **ended March 31,**<br> **2025** | **Three months**<br> **ended March 31,**<br> **2024** | **March 31,**<br> **2025** | **December 31,**<br> **2024** |
| &nbsp;&nbsp;&nbsp;Portugal | 7893 | 7824 | 28121 | 26842 |
| &nbsp;&nbsp;&nbsp;Spain |  |  | 41632 | 39989 |
| &nbsp;&nbsp;&nbsp;South Korea | 15 | - | 178186 | 168942 |
| **Total** | 7908 | 7824 | 247939 | 235773 |

---

**Almonty Industries Inc.**

**Notes to the Unaudited Interim Condensed Consolidated Financial Statements**

**Three Months Ended March 31, 2025 and 2024**

(In 000's of Canadian dollars, unless otherwise noted)

15. Financial
 Instruments, and Financial Risk Management Objectives and Policies

Fair Value Hierarchical Levels

Fair value hierarchical levels are directly determined by the amount of subjectivity associated with the valuation inputs of these assets and liabilities, and are as follows:

---

| | |
|:---|:---|
| Level 1 - | Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. |
| Level 2 - | Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument's anticipated life. |
| Level 3 - | Inputs reflect management's best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to determining the estimate. |

---

The carrying value of cash, trade receivables and accounts payable and accrued liabilities approximates their fair value due to their short terms to maturity. The accounts receivable associated with provisional pricing arrangements are a level 2 fair value estimate and are valued based upon observable WO3 forward prices as of the reporting date. The fair value of long-term debt is a level 2 fair value estimate and is not materially different from the carrying value based on current market rates of interest, or interest rates set at relatively short time intervals.

Financial Risk Management Objectives and Policies

The Company's principal financial instruments comprise cash deposits and long-term debt.

The main purpose of these instruments is to provide cash flow funding for the operations of Almonty and its subsidiaries. The Company has various other financial assets and liabilities such as trade receivables and trade payables, which arise directly from operations.

The main risks arising from the Company's financial instruments are interest rate risk, foreign currency risk, credit risk and liquidity risk.

**Interest rate risk**

The Company'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 the long-term debt, $140,221 is subject to floating interest rates and $37,040 is subject to fixed interest rates. A portion of the floating rate debt totaling $25,100 is subject to a fixed spread over the 3- and 12-month Euro Interbank Offered Rate ("Euribor") rates. A change of 100 basis points (1%) in the rates would result in a $251 change in annual interest costs. The remaining floating rate debt of $115,067 is based on a fixed spread over the 3-month SOFR rate. A change of 100 basis point (1.0%) in the 3-month SOFR rate would result in a $1,150 change in annual interest costs.

**Almonty Industries Inc.**

**Notes to the Unaudited Interim Condensed Consolidated Financial Statements**

**Three Months Ended March 31, 2025 and 2024**

(In 000's of Canadian dollars, unless otherwise noted)

**Foreign currency risk**

Daytal and BTW, operate in Spain and Portugal, respectively, both of which use Euros (€) as their functional currency. Their output is a commodity that is primarily priced in United States 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. Almonty's functional currency is the Canadian dollars but it advances funds to subsidiaries in the functional currency of the subsidiary to which funds are advanced. As such, the Company's consolidated balance sheet and profit or loss can be significantly affected by movements in various currencies (CAD$, US$, € and KRW).

The Company's Canadian dollar functional currency businesses have the following financial instruments denominated in foreign currencies:

---

| | | |
|:---|:---|:---|
|  | **Currency** | **Carrying**<br> **Value ($)** |
| Cash and cash equivalents | US $| 367 |
| Cash and cash equivalents | AUS $| 2733 |
| Cash and cash equivalents | EURO € | 9451 |
| Accounts payable and accrued liabilities | US $| 5987 |
| Accounts payable and accrued liabilities | AUS $| 378 |
| Accounts payable and accrued liabilities | KRW | 7232 |
| Long-term debt | US $| 130698 |
| Long-term debt | EURO € | 35077 |

---

A 5% change in the value of the CAD$ relative to the above currencies would change net income for the three months ended March 31, 2025 by approximately $8,478.

The Company's Euro functional currency businesses have the following financial instruments denominated in foreign currencies:

---

| | | |
|:---|:---|:---|
|  | **Currency** | **Carrying**<br> **Value ($)** |
| Cash and cash equivalents | US$ | 329 |
| Trade receivables | US$ | 1247 |

---

A 5% change in the value of the Euro relative to the above currencies would change net income for the three months ended March 31, 2025 by approximately $79.

**Almonty Industries Inc.**

**Notes to the Unaudited Interim Condensed Consolidated Financial Statements**

**Three Months Ended March 31, 2025 and 2024**

(In 000's of Canadian dollars, unless otherwise noted)

The Company's Korean Won functional currency businesses have the following financial instruments denominated in foreign currencies:

---

| | | |
|:---|:---|:---|
|  | **Currency** | **Carrying**<br> **Value ($)** |
| Accounts payable and accrued liabilities | US$ | 214 |
| Long-term debt | US$ | 115068 |

---

A 5% change in the value of the Korean Won relative to the above currencies would change net income for the three months ended March 31, 2025 by approximately $5,764.

*Credit risk*

 

The Company deposits surplus cash with major banks of high-quality credit standing, in interest bearing accounts that earn interest at floating rates. Trade receivables represent amounts receivable related to delivery of concentrate that have not been settled and are with the Company's customers, all of whom have good credit ratings and the Company has not experienced any credit issues with any of its customers. Other assets are deposits. The carrying value of the cash and cash equivalents, trade receivables and deposits totals $20,204 and represents the Company's maximum exposure to credit risk.

*Liquidity risk*

 

The Company's objective is to use cash and cash equivalents, finance leases, and third party short and long-term loans (see Note 8 for debt maturities) and equity in order to maintain liquidity. The Company's policy is to maximize liquidity in order to enable the continued development of the mines and operations of the plants and to enable the development of its projects. All financial liabilities with a contractual term of 12 months or less are classified as current. The Company is currently pursuing debt and equity financing opportunities to increase its liquidity. In addition to the items presented below, the Company has a mine reclamation liability of $25,182 payable at the end of mining activities. Contractual undiscounted cash flow requirement for financial liabilities as at March 31, 2025 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Less than**<br> **1 year** | **1-2 years** | **3-4 years** | **After**<br> **5 years** | **Total** |
| Accounts payable and accrued liabilities | 30015 |  |  |  | 30015 |
| Term and other loans - Euro | 798 | 24388 | 328 |  | 25514 |
| Term and other loans - US dollar |  | 8626 |  |  | 8626 |
| Promissory note |  | 250 |  |  | 250 |
| Convertible debentures | 14085 | 14469 |  |  | 28554 |
| Lease liabilities | 130 | 260 | 119 |  | 509 |
| Mine Construction Facility | 2838 | 39894 | 35348 | 36987 | 115067 |

---

**Almonty Industries Inc.**

**Notes to the Unaudited Interim Condensed Consolidated Financial Statements**

**Three Months Ended March 31, 2025 and 2024**

(In 000's of Canadian dollars, unless otherwise noted)

16. Capital
 Management

The primary objective of the Company's capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value. The Company manages its capital structure (composed of shareholders' equity and net debt) and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, Almonty may initiate dividend payments to shareholders, return capital to shareholders, repurchase issued shares or issue new shares. Almonty is not exposed to any externally imposed capital requirements.

17. Commitments
 and Contingent Liabilities

Daytal owns the Los Santos Mine, near the town of Los Santos, Salamanca in western Spain. Daytal rents the land where the Los Santos Mine is located from local property owners and municipalities. The leases range from 10 to 25 years and have expiry dates in 2032. On all leases greater than 10 years, Daytal has the right to terminate the leases under certain circumstances without penalty. Annual lease commitments total approximately $393 payable throughout the year on the anniversary dates of the individual leases.

The mining license for the Los Santos Mine was granted in September 2002 for a period of 30 years and is extendable for 90 years. Daytal pays minimal land taxes and there are no other royalty payments associated with the license. The Company files applications in the ordinary course to renew the permits associated with its mining license that it deems necessary and/or advisable for the continued operation of its business. Certain of the Company's permits to operate that are associated with the mining license are currently under application for renewal.

The Company's operations are subject to other claims and lawsuits from time to time, including any claims related to suppliers, employees or other parties. However, these are not expected to result in a material impact on the financial statements.

18. Related
 Party Transactions

For the three months ended March 31, 2025, the Company paid or accrued compensation to key management personnel, which includes the Company's Chief Executive Office, Chief Financial Officer and members of the Company's Board of Directors totaling $357 (2024 - $301).

The Company has long-term debt owing to DRAG, a company that is an existing shareholder of Almonty, and whose former CEO is a member of the Board of Directors of the Company. In addition to the transactions disclosed in notes 8(b) and 8(c), interest of $215 was accrued on the DRAG loans during the three months ended March 31, 2025 (2024 - $217). As of March 31, 2025, there is $5,354 (December 31, 2024 - $5,139) of unpaid interest on these loans included in accounts payable and accrued liabilities.

**Almonty Industries Inc.**

**Notes to the Unaudited Interim Condensed Consolidated Financial Statements**

**Three Months Ended March 31, 2025 and 2024**

(In 000's of Canadian dollars, unless otherwise noted)

19. Subsequent
 Events

Subsequent to March 31, 2025, the Company entered into the following transactions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Issued
 3,975,780 CDI's in conjunction with the exercise of warrants for proceeds totaling
 $3,646;

b) Issued
 75,000 common shares in conjunction with the exercise of stock options for proceeds totaling
 $52;

c) Granted
 stock options enabling the holders to acquire up to 2,425,000 common shares of the Company
 with an exercise price of $2.50, expiring April 30, 2030;

d) Granted
 RSUs a director of the Company enabling the holder to acquire up to 1,000,000 common shares
 of the Company at a value of $2.18 per share: and

e) Issued
 180,722 common shares upon conversion of long-term debt totalling US$150.

## Exhibit 4.5

**Exhibit 4.5**

![](ex4-5_001.jpg)

Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

REPORT DATED: May 15, 2025

**Notice to Reader**

This amended Management's Discussion and Analysis ("MD&A") of Almonty Industries Inc. ("Almonty" or the "Company") is being refiled to address minor errors and inconsistencies identified in the Company's original filing, notably with the financial information for the relevant period, in (i) the "Highlights" section of the introduction at page 2 of the amended MD&A, (ii) the table outlining the Quarterly Earnings and Cash Flow at page 19 of the amended MD&A, (iii) the "Interest Rate Risks" section at page 21 of the amended MD&A and (iv) the "Foreign Currency Risks" section at page 22 of the MD&A. The Company has taken steps to ensure that this amended MD&A is consistent with the appropriate financial information for the relevant period. This amended MD&A does not reflect events occurring after the date of the original filing and has not been updated for subsequent events or developments. This amended MD&A supersedes the original version filed and should be read in conjunction with the financial statements for the relevant period.

![](ex4-5_002.jpg)

Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

1. Introduction

This management's discussion and analysis ("**MD&A**"), dated May 15, 2025, provides a review of, and discusses the financial position and results of operations of, Almonty Industries Inc. (TSX: AII) and (ASX: AII) ("**Almonty**" or the "**Company**") for the three months ended March 31, 2025. It should be read in conjunction with the unaudited interim condensed consolidated financial statements of the Company and notes thereto for the three months ended March 31, 2025 (the "**Q1-2025 Interim Financial Statements**").

**Dual Listing**

On August 2, 2021, the Company, by way of an Initial Public Offering, received gross proceeds totalling A$15.25 million in conjunction with a listing on the Australian Securities Exchange ("**ASX**").

**KfW IPEX-Bank — Sangdong Mine Project Financing**

During July 2022, the Company completed the US$75.1 million Project Financing Facility with the KfW IPEX-Bank ("**KfW**"). During August 2022, the Company received the first drawdown of US$12.8 million from KfW and a second drawdown of US$4.1 million, with a third drawdown of US$9.8 million received during November 2022, a fourth drawdown of US$5.6 million received during April 2023, a fifth drawdown of US$9.8 million received during August 2023, a sixth drawdown of US$13.68 million received in November 2023, a seventh drawdown of US$5.01 million received in July 2024, an eighth drawdown of US$5.63 million received in July 2024 and a final drawdown of US$906 received in January 2025.

**US Domestication**

On January 20, 2025, Almonty announced its plans to change its jurisdiction of incorporation from Canada to the State of Delaware (the "**US Domestication**") while maintaining its listings on the Toronto Stock Exchange (the "**TSX**") and the ASX. The US Domestication reflects the growing importance of the United States in Almonty's strategic positioning. With its robust regulatory framework for critical materials like tungsten and molybdenum and the evolving global economic landscape, the United States presents a compelling jurisdiction for our incorporation. The State of Delaware, in particular, was chosen as our new domicile because the Delaware General Corporation Law ("**DGCL**") expressly accommodates continuances under Section 192 of the *Canada Business Corporations Act* and is recognized for its extensive body of corporate law. Supported by decades of case law in Delaware courts, the DGCL provides well-defined guidance on the duties and obligations of directors and officers, offering legal clarity that is expected to benefit both the Company and its shareholders. The US Domestication was approved by shareholders at a special meeting held on February 27, 2025 and remains pending as of the date of this MD&A.

Page \| 2

![](ex4-5_002.jpg)

Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

**Highlights**

*During the three months ended March 31, 2025, the following transactions and events occurred:*

 

1) the Company received $10,847 in conjunction with the closing of an unbrokered financing through the issuance of 2,527,000 placement units and 10,833,333 placement Chess depository interest ("**CDI**") units at C$0.82 per placement unit and A$0.90 per CDI unit. Each placement unit participant will be issued one warrant for every common share issued and one free unlisted option for every one CDI issued, exercisable at C$1.14 and A$1.25, respectively, with an expiry date of 36 months from the date of closing;

2) the Company received $3,306 in conjunction with the exercise of 3,313,975 CDI options (warrants);

3) the Company received $54 in conjunction with the exercise of stock options;

4) the Company issued 100,000 common shares of the Company to settle debt of $90;

5) the Company made an application to extend the expiry date of 700,000 share purchase warrants, which received both TSX and shareholder approvals;

6) the Company granted stock options enabling the holders to acquire up to 1,122,000 common shares with exercise prices ranging from C$1.195 to C$1.915 per share, expiring between February 4 and March 14, 2030;

7) the Company received US$906,000 in conjunction with the ninth and final drawdown on the KfW loan facility;

*Subsequent to March 31, 2025, the Company entered into the following transactions:*

 

1) Issued 75,000 common shares in conjunction with the exercise of stock options for proceeds totalling $52;

2) Issued 3,975,780 CDIs in conjunction with the exercise of CDI Options for proceeds totalling $3,646;

3) Issued 180,722 common shares upon conversion of long-term debt totalling US$150.

4) Granted stock options enabling the holders to acquire up to 2,425,000 common shares with an exercise price of $2.50 per share, expiring five years from the date of issuance; and

Page \| 3

![](ex4-5_002.jpg)

Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

5) Granted RSUs to a director of the Company enabling the holder to acquire up to 1,000,000 common shares of the Company at a value of $2.18 per share.

The Company's management is responsible for the preparation of the Company's consolidated financial statements as well as other information contained in this MD&A. The board of directors of Almonty (the "**Board of Directors**") is required to ensure that management assumes its responsibility in regard to the preparation of the Company's financial statements. To facilitate this process, the Board of Directors has created an audit committee (the "**Audit Committee**"). The Audit Committee meets with members of the management team to discuss the operating results and the financial results of the Company, before making their recommendations and submitting the Q1-2025 Interim Financial Statements and MD&A to the Board of Directors for review and approval. Following the recommendation of the Audit Committee, the Company's Board of Directors approved the Q1-2025 Interim Financial Statements and this MD&A on May 15, 2025.

The Q1-2025 Interim Financial Statements have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting". All currency figures in this MD&A appear in thousands of Canadian dollars, except per share amounts, unless otherwise stated.

Additional information about the Company, including the Q1-2025 Interim Financial Statements, is available on the Company's website at www.almonty.com and on SEDAR+ (www.sedarplus.ca) under Almonty's profile.

**Forward-Looking Information**

This MD&A contains forward-looking statements that reflect management's expectations, estimates and projections concerning future events in relation to the Company's business and the economic environment in which it operates. Forward-looking statements may include, but are not limited to, statements with respect to demand for tungsten, tungsten prices, tungsten recovery and production, reductions in operating and unit production costs, improvements in efficiencies or reduction in dilution, future remediation and reclamation activities, future mineral exploration, the estimation of mineral reserves and mineral resources, the realization of mineral reserve and mineral resource estimates, the timing of activities and the amount of estimated revenues and expenses, the success of exploration activities, permitting time lines, the success of mine development and construction activities, the success of future mine operations, the success of other future business operations, requirements for additional capital and sources and uses of funds. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "anticipates", "plans", "estimates", "intends", "strategy", "goals", "objectives" or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be "forward-looking statements".

Page \| 4

![](ex4-5_002.jpg)

Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events, results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the inability of the Company to maintain its interest in its mineral projects or to obtain or comply with all required permits and licenses, risks normally incidental to exploration and development of mineral properties, uncertainties in the interpretation of drill results, the possibility that future exploration, development or mining results will not be consistent with expectations, changes in governmental regulation adverse to the Company, lack of adequate infrastructure at the mineral properties, economic uncertainties, the inability of the Company to obtain additional financing when and as needed, competition from other mining businesses, the future price of tungsten and other metals and commodities, fluctuation in currency exchange rates, title defects and other related matters. See Section 7 in this MD&A and under the heading "Risk Factors" in the Company's Annual Information Form dated March 20, 2025 for a further discussion of factors that could cause the Company's actual results, performance or achievements to be materially different from any anticipated results, performance or achievements expressed or implied by forward-looking statements. The forward-looking statements in this MD&A represent the expectations of management as of the date hereof and accordingly, are subject to change after such date. Readers should not place undue importance on forward-looking statements and should not rely upon these statements as of any other date. The Company does not undertake to update any forward-looking information, except as, and to the extent, required by applicable laws. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

A glossary of terms is affixed to the last page of this MD&A. Capitalized terms used but not otherwise defined herein have their respective meanings ascribed thereto in the glossary of terms.

2. Overview

Almonty is a publicly traded company listed on the TSX, under the symbol "AII" and listed on the ASX, under the symbol "AII". The principal business of Almonty is the mining, processing and shipping of tungsten concentrate from the Los Santos tungsten mine located near Salamanca, Spain (the "**Los Santos Mine**"), the processing and shipping of tungsten concentrate from the Panasqueira tin and tungsten mine in Covilha, Castelo Branco, Portugal (the "**Panasqueira Mine**"), as well as the development of the Sangdong tungsten mine project located in Gangwon Province, Republic of Korea (the "**Sangdong Mine**") and the evaluation of the Valtreixal tin and tungsten mine project located in Western Spain in the province of Zamora (the "**Valtreixal Mine**").

The Los Santos Mine was acquired by Almonty in September 2011 and is located approximately 50 kilometres from Salamanca in western Spain and produces tungsten concentrate. The Panasqueira Mine, which has been in production since 1896 and is located approximately 260 kilometres northeast of Lisbon, Portugal, was acquired in January 2016. The Sangdong Mine, which was historically one of the largest tungsten mines in the world and one of the few long-life, high-grade tungsten deposits outside of China, was acquired by Almonty in September 2015. Almonty also owns a 100% interest in the Valtreixal Mine in northwestern Spain, having exercised its option to acquire the remaining ownership in the Valtreixal Mine on December 21, 2016.

On June 4, 2015, Almonty acquired an 8% interest in Woulfe Mining Corp. ("**Woulfe**") and, through the acquisition of convertible debentures in Woulfe, gained control over Woulfe with the ability to nominate a majority of the board members. On July 7, 2015, Almonty and Woulfe entered into an arrangement agreement in respect of the acquisition by Almonty of all of the issued and outstanding shares of Woulfe that it did not already own by way of a plan of arrangement under the *Business Corporations Act* (British Columbia) (the "**Plan of Arrangement**"). On August 21, 2015, Woulfe shareholders approved the Plan of Arrangement. On September 10, 2015, Almonty completed the Plan of Arrangement and acquired all of the shares of Woulfe that it did not already own, leading to Almonty having a 100% ownership interest in Woulfe. The principal asset of Woulfe is the Sangdong Mine.

Page \| 5

![](ex4-5_002.jpg)

Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

On January 6, 2016, Almonty acquired 100% of the issued and outstanding shares of Beralt Ventures Inc. ("**BVI**") from Sojitz Tungsten Resources Inc. for €1.00. In connection therewith, Almonty acquired and purchased €12,260 in aggregate principal amount of debt owed by Beralt Tin & Wolfram (Portugal), S.A. ("**BTW"**), a wholly-owned subsidiary of BVI, to Sojitz Corporation of Japan in exchange for a cash payment of €1,000 on closing and a promissory note issued by Almonty in the principal amount of €500, bearing interest at 4% per annum, which matured December 29, 2017 and was fully paid by the Company. BVI, through its wholly owned subsidiaries, is the 100% owner of the Panasqueira Mine.

On December 21, 2016, Almonty exercised its option to acquire the remaining 49% of the Valtreixal Mine it did not already own for payment of €1.5 million ($2.2 million). Almonty now owns a 100% interest in the Valtreixal Mine.

During February 2020, the Company made the decision to place the Los Santos Mine into care and maintenance so as to allow the Company to focus its efforts on finalizing the proposed project financing for the Sangdong Mine and to assess and complete a restructuring initiative that will involve an approximate €1 million capital expenditure expected to lead to a significant increase in the recovery rate of tungsten trioxide ("**WO<sub>3</sub>**") from the processing of the Company's tailings inventory.

During June 2020, the Company received, from the Municipality of Pedralba de la Paraderia in Spain, a new land classification for its Valtreixal Property whereby the property is now deemed to be suitable for extraction activity. The Company's Valtreixal Property is located approximately 250 kilometres from the Company's wholly-owned Los Santos Mine in Spain.

This new land classification will now allow the Company to complete the mining permitting process and to move forward with the completion of an open-pit mine plan for the property.

Further information about the Company's activities may be found on the Company's website at <u>www.almonty.com</u> and on SEDAR+ (<u>www.sedarplus.ca</u>) under Almonty's profile.

**Market for Tungsten Concentrate**

Market demand for tungsten concentrate continued to be stable from the first quarter of fiscal 2023 and through to Q1-2025. The current average Spot ammonium para tungstate ("**APT**") price is approximately US$395 per metric tonne unit ("**MTU**") which significantly exceeds several forecasting services having already projected prices to reach or exceed US$310 per MTU of APT by Q4-2024. Management expects that the limited quantities of "spot" concentrate available in the market will help with continued price improvement in the near to mid-term.

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Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

The average of the high and low weekly quoted price for European APT according to the Metal Bulletin ("**MB**") European weekly quotation for APT (from which Almonty's concentrate prices are derived by the formulae under its supply agreements) averaged the following:

---

| | | | |
|:---|:---|:---|:---|
| Three Months ended | Tungsten APT European<br> Average High - Low<br> US$/MTU | Year ended | Tungsten APT European<br> Average High - Low<br> US$/MTU |
| 31-Dec-19 | $242 | 31-Dec-19 | $253 |
| 31-Mar-20 | $236 |  |  |
| 30-Jun-20 | $224 |  |  |
| 30-Sep-20 | $213 |  |  |
| 31-Dec-20 | $228 | 31-Dec-20 | 225 |
| 31-Mar-21 | $274 |  |  |
| 30-Jun-21 | $275 |  |  |
| 30-Sep-21 | $306 |  |  |
| 31-Dec-21 | $322 | 31-Dec-21 | 294 |
| 31-Mar-22 | $340 |  |  |
| 30-Jun-22 | $349 |  |  |
| 30-Sep-22 | $340 |  |  |
| 31-Dec-22 | $323 | 31-Dec-22 | 338 |
| 31-Mar-23 | $335 |  |  |
| 30-Jun-23 | $328 |  |  |
| 30-Sep-23 | $315 |  |  |
| 31-Dec-23 | $314 | 31-Dec-23 | $323 |
| 31-Mar-24 | $316 |  |  |
| 30-Jun-24 | $348 |  |  |
| 30-Sep-24 | $335 |  |  |
| 31-Dec-24 | $333 | 31-Dec-24 | $333 |
| 31-Mar-25 | $360 |  |  |
| 09-May-25 | $395 |  |  |

---

Source: Metal Bulletin, ammonium para tungstate (APT), European (US$/MTU).

Almonty prices its tungsten concentrate product (on volumes of material that are not subject to a fixed-price contract) in relation to the prior month's average weekly quoted price for APT on the MB European quotation service and the Metal Pages pricing service.

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Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

**Los Santos Mine, Spain**

The Company changed its mine plan at Los Santos, whereby it ceased further mining of ore and commenced processing of its tailing during Q3 of the 2019 fiscal year.

During February 2020, management implemented a planned closure of Los Santos' operations by placing it into care and maintenance. The Company is planning to re-open operations in early-2026 once it has finalized plans to modify the plant's infrastructure, through a €1 million capital expenditure, which is expected to result in significantly higher recovery rates from the future processing of its tailings inventory.

**Panasqueira Mine, Portugal**

Almonty acquired the Panasqueira Mine on January 6, 2016.

Between Q3 2019 and Q2 2021, management at Panasqueira determined that it would mine certain ore with a lower grade so as to enable work to be done to ensure that access to ore with the usual higher grade will be accessible into the future. The tungsten recovery rate continued to improve during Q1 2021 to Q1 2025 and is now in line with the expected average tungsten recovery rate for the life of mine.

Almonty continued its focus on cost reduction and all-in production costs at Panasqueira continued to decrease. Mined grades continued to improve throughout Fiscal 2021 and into Q1 2025 as expected under the revised mine plan implemented by Almonty since its acquisition in January 2016. Mined grades in Q1 2025 continued to show improvement in the content of by-product payable metals as well (copper and tin) which are improving the overall cash flow profile of the mining operation.

Panasqueira is a poly-metallic wolframite deposit as opposed to a skarn deposit scheelite mine like Los Santos. Tungsten recovery rates for wolframite deposits are typically higher than for scheelite deposits. The Panasqueira Mine has some of the highest tungsten recovery rates in the industry, consistently averaging 80%.

Almonty anticipates that the grades of ore mined will continue trending towards the long-term average of the remaining life of mine of 0.185% (see NI 43-101 technical report on the Panasqueira Mine dated December 31, 2016 available on the Company's website at <u>www.almonty.com</u> and on SEDAR+ (<u>www.sedarplus.ca</u>) under Almonty's profile) through the refinement of the life of mine plan. The expected increased grades are continuing to have an impact on the level of production currently being experienced and the increase in contained tungsten is also having a positive impact on unit costs as at the date of this MD&A.

**Valtreixal Project, Spain**

During Q1 2017, Almonty exercised its option to acquire the remaining 49% interest in the project for a payment of €1.5 million ($2.2 million) in December 2016, a reduction of €0.75 million ($1.1 million) from the previously agreed price, resulting in a much-needed saving of capital on the acquisition. The Company is continuing to carry out work on the project and is working towards a final decision on proceeding with the development of the project. The Company continues to fine-tune its planning and budgeting for the potential build-out and commissioning of the Valtreixal Mine.

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Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

During June 2020, the Company received, from the Municipality of Pedralba de la Paraderia in Spain, a new land classification for its Valtreixal Property whereby the property is now deemed to be suitable for extraction activity. The Company's Valtreixal Property is located approximately 250 kilometres from the Company's wholly-owned Los Santos Mine in Spain.

This new land classification will now allow the Company to complete the mining permitting process and to move forward with the completion of an open-pit mine plan for the property.

**Sangdong Mine, Republic of Korea**

On August 29, 2016, Almonty completed an updated technical report prepared pursuant to NI 43-101 entitled "Technical Report on the Mineral Resources and Reserves of the Sangdong Project, South Korea" that is available on the Company's website at <u>www.almonty.com</u> and on SEDAR+ (<u>www.sedarplus.ca</u>) under Almonty's profile.

Almonty entered into an engineering, procurement and construction ("**EPC**") contract with S – Material Handling Co., Ltd. ("**SMH**") for the development work at the Sangdong Mine.

The EPC contract is a turnkey based contract for the development and construction of primary facilities for processing tungsten ore mined out of the Sangdong Mine. Under the EPC contract, SMH is responsible for not only engineering, civil & architectural, machinery & electrical works of processing plant and auxiliary facilities, but also commissioning of such facilities. The EPC contract has a net contract price of KRW40.3 billion (approx. US$37.3 million) and, including the value of primary equipment which will be erected and installed by SMH, the EPC price reaches KRW54.0 billion (approx. US$50.0 million) which accounts for 65% of the total capital expenditure budgeted for the development of the Sangdong Mine. The remaining 35% will be spent on the development of underground transportation galleries and accesses to tungsten veins, mine infrastructure, backfill plant, owner's cost, and other expenses. The primary facilities of the processing plant will be built for 900,000 to 1.2 million tonnes per annum capacity while the initial years of operation targets 640,000 tonnes per annum. The EPC contract stipulates a construction period of 18 months and commissioning period of 6 months. Following general rules of EPC contracts, cost overrun, and project delay will be the responsibility of the EPC contractor.

On March 12, 2018, Almonty entered into a new off-take agreement with an existing customer for the tungsten concentrate to be mined and processed at the Sangdong Mine. The agreement has a term of 10 years and, based upon current pricing models and subject to the terms and conditions of the agreement, the agreement calls for revenues for the Company for a minimum of $500 million over a 10-year period (subsequently amended to increase the term to 15 years for a minimum of $750 million over a 15-year period).

The realization of the benefits of the off-take agreement are subject to risk factors typical of a supply agreement of this nature, including if the Company is unable to meet its obligations to deliver tungsten concentrate in accordance with the terms of the off-take agreement, variable costs of shipping and production over the term of the contract, the customer's ability to purchase the tungsten concentrate produced by Almonty at the Sangdong Mine, and the continued economic viability of the customer or its successors for the life of the off-take agreement. Finally, given these risks, there is no guarantee that the Company will realize the revenues contemplated under the terms of the off-take agreement.

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Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

Almonty announced that it had obtained clearance and acceptance by KfW of the final technical due diligence report on the Sangdong Mine development project submitted by the Independent Engineer. The final acceptance of the Independent Engineer's report signified the clearance of certain pending issues related to compliance with the Equator Principles.

During December 2020, the Company finalized the definitive facility agreement (loan agreement) with KfW. The conclusion of the facility agreement allowed the Company to complete the Project Financing Facility in July 2022. During August 2022, the Company received the first drawdown of US$12.8 million from KfW and a second drawdown of US$4.1 million, with a third drawdown of US$9.8 million received during November 2022, a fourth drawdown of US$5.6 million received during April 2023, a fifth drawdown of US$9.8 million received during August 2023, a sixth drawdown of US$13.68 million received in November 2023, a seventh drawdown of US$5.01 million received in July 2024, an eighth drawdown of US$5.63 million received in July 2024 and a final drawdown of US$906 received in January 2025.

The general terms of the loan facility approved by the credit committee of KfW include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The
 principal amount of senior project finance loan to be US$75.1 million;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Interest
 rate — three-month secured overnight financing rate ()"**SOFR** "), plus
 2.3 per cent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Term
 of 6.25 years with an initial principal repayment holiday during construction and quarterly
 instalment repayments of principal commencing after the completion of construction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Oesterreichische
 Kontrollbank AG (OeKB) is committed to providing an import credit scheme cover guarantee
 based on the previously announced long-term off-take agreement, which was issued in February
 2020.

Almonty has worked closely with the Independent Engineer in the past several months to ensure sustainable development outcomes and the integration of environmental, safety and social considerations into the project development procedures, meeting the stringent international standards and guidelines.

Almonty also announced the mechanical completion and the commencement of commissioning of the government-subsidized pilot plant at the site.

Meanwhile, work is continuing at the Sangdong site to ensure the timely commissioning as requested by Almonty's customer under the previously announced off-take agreement for the Sangdong Mine.

During July 2022, upon the completion of the KfW US$75.1 million project financing, the Company determined that it now has sufficient resources to complete the development of the Sangdong Mine. As a result, capitalized exploration and evaluation assets totalling $60,501 were transferred to Mineral property, plant and equipment from exploration and evaluation costs during Q3-2022.

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Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

**Financial Highlights**

The following financial information is for the three months ended March 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **Three months ended** | **Three months ended** |
|  | **31-Mar-25**<br>**$'000** | **31-Mar-24**<br>**$'000** |
| Gross Revenue | 7908 | 7824 |
| Mine production costs | 6588 | 6665 |
| Care and maintenance | 280 | 263 |
| Depreciation and amortization | 288 | 290 |
| Income from mining operations | 752 | 606 |
| General and administrative costs | 3406 | 1475 |
| Non-cash compensation costs | 851 | 392 |
| Loss before the under noted items | (3505) | (1261) |
| Interest expense | 1206 | 1423 |
| Loss on valuation of embedded derivative liabilities | 2909 | 81 |
| Foreign exchange loss | 1100 | 903 |
| Tax provision | 92 | 5 |
| **Loss before other item** | **(8812)** | **(3673)** |
| Loss on valuation of warrant liabilities | 25810 | 109 |
| Net loss for the period | (34622) | (3782) |
| Income (loss) per share - basic | $(0.13) | $(0.02) |
| Income (loss) per share - diluted | $(0.13) | $(0.02) |
| Dividends | - | - |
| Cash flows provided by (used in) operating activities | (4401) | (1121) |
| Cash flows provided by (used in) investing activities | (7802) | (7368) |
| Cash flows provided by (used in) financing activities | 21423 | 3144 |

---

The following table sets forth a summary of the Company's consolidated financial position as of the dates presented:

---

| | | |
|:---|:---|:---|
|  | **31-Mar-25**<br>**$'000** | **31-Dec-24**<br>**$'000** |
| Cash | 16985 | 7830 |
| Total assets | 279041 | 256349 |
| Long-term debt | 171612 | 158022 |
| Shareholders' equity | 18102 | 39073 |
| <u>Other</u> |  |  |
| Outstanding shares ('000) | 282781 | 265421 |
| Weighted average outstanding shares ('000) |  |  |
| &nbsp;&nbsp;&nbsp; <br>Basic | 276315 | 254035 |
| &nbsp;&nbsp;&nbsp;Fully diluted | 276315 | 254035 |
| Closing share price | $2.25 | $0.91 |

---

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Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

**Three Months Ended March 31, 2025 ("Q1-2025") Compared to the Three Months Ended March 31, 2024, ("Q1-2024")**

Gross revenue for Q1-2025 was $7,908 ($7,824 for Q1-2024). Production ceased during Q2-2020 at the Los Santos Mine and decreased by 1.7% at the Company's Panasqueira mine compared to production during Q1-2024. Decreased overall production at the Los Santos Mine was a result of the fact that, during February 2020, the Company made the decision to place the Los Santos Mine into care and maintenance so as to allow the Company to focus its efforts on finalizing the proposed project financing for the Sangdong Mine and to assess and complete a restructuring initiative that will involve an approximate €1 million capital expenditure expected to lead to a significant increase in the recovery rate of WO<sub>3</sub> from the processing of the Company's tailings inventory. Decreased overall production at the Panasqueira mine of 1.7% was a result of a slightly lower amount of ore mined and processed during Q1-2025 when compared to Q1-2024. Shipment volumes at Panasqueira decreased by 22.6% overall in Q1-2025 when compared to Q1-2024. Overall revenue at Panasqueira increased by $84 or 1.1% in Q1-2025 when compared to Q1-2024. As at December 31, 2024, the Company recorded deferred revenue of $74 (December 31, 2023: $1,062) relating to shipments of concentrate that occurred during the first week of January 2025. As a result, this amount will be included in revenue for Q2-2025.

Mine production costs for Q1-2025 (including direct mining costs, milling costs, tailings costs and waste rock stripping costs associated with current production) was $6,588 (or 83.3% of revenue), compared to $6,665 (or 85.2%) for Q1-2024.

The Company carries out a quarterly assessment of its ore and in-process ore and finished goods inventory as well as its stockpiles of long-term tailings inventory to ensure that the carrying is recorded at the lower of cost and net realizable value. Any adjustments to the carrying value of ore, in-process ore and finished goods inventory are included in costs of goods sold (mine production costs). No write-downs of finished goods inventory were recognized during Q1-2025 or Q1-2024. Any adjustment to long-term tailings inventory that is recognized as an impairment amount is expensed through the statement of operations as an addition to Mine production costs. Conversely, any adjustment to long-term tailings inventory that is recognized as a reversal of prior period impairment charges is recorded as a reduction in Mine production costs. Reversals may occur in future periods as a result of continued increases in the expected price of an MTU of APT in future periods.

Income from mining operations during Q1-2025 was $752, compared to income from mining operations in Q1-2024 of $606.

General and administrative costs of $3,406 incurred during Q1-2025 were significantly higher than the $1,475 recorded during Q1-2024 resulting in additional legal fees and shareholder communication costs incurred relating to the US Domestication. General and administrative costs include employee salaries and employment-related expenses of all non-mining/processing personnel as well as corporate overhead costs, business development and corporate development costs, listing and transfer agent fees, accounting, legal and other professional fees and travel.

A foreign exchange gain on the revaluation of interest-bearing long-term debt and non-interest-bearing trade payables denominated in United States dollars, and in Euro, of $1,100 was recorded during Q1-2025 due to the appreciation of the Canadian dollar versus the United States dollar and Euro. This compared to a foreign exchange loss of $903 recorded in Q1-2024.

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Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

A loss on valuation of embedded derivative liabilities of $2,909 (Q1-2024 – $81) was recorded during Q1- 2025 in conjunction with various convertible debentures (See Note 8 of the Company's Q1-2025 Interim Financial Statements for further details).

A loss on valuation of warrant liabilities of $25,810 (Q1-24 - $109) was recorded during Q1-2025. The Company uses the Black-Scholes option pricing model to measure the fair value of warrant liabilities, wherein the Company's trading price is the main driver for calculating the resulting amount. The revaluation of this derivative liability, arising from an increase in share price from Cdn$0.91 per share at December 31, 2024, to Cdn$2.25 per share at March 31, 2025, has resulted in the recognition of a non-cash loss of $25,810 (2024 - $109) in the statements of operations and comprehensive loss in Q1-2025. (see loss on valuation of warrant liabilities section below).

Net loss for Q1-2025 was ($34,622) or ($0.13) loss per common share. This compares to net loss of ($3,782), or ($0.02) per common share, for Q1-2024.

**Liquidity and Capital Resources**

As at March 31, 2025, the Company held cash and receivables of $20,153 (December 31, 2024 - $10,757) (of which $3,506 (December 31, 2024 - $2,170) represented cash restricted for use for the development of the Sangdong Mine) and a working capital deficiency of $16,699 (December 31, 2023 - $30,458). In addition, in conjunction with the closing of its US$75.1 million project financing with KfW in July 2022, the Company received the first drawdown of US$12.8 million and a second drawdown of US$4.1 million in August 2022, with a third drawdown of US$9.8 million received during November 2022, a fourth drawdown of US$5.6 million received during April 2023, a fifth drawdown of US$9.8 million received during August 2023, a sixth drawdown of US$13.68 million received in November 2023, a seventh drawdown of US$5.01 million received in July 2024, an eighth drawdown of US$5.63 million received in July 2024 and a final drawdown of US$906 received in January 2025.

During November 2024, the Company negotiated the extension of the maturity dates of the debt owed to Deutsche Rohstoff AG ("**DRAG**") totalling $29,072 including accrued interest of $5,139 from September 30, 2025 to October 31, 2026.

During the year ended December 31, 2024, the Company secured additional financings totalling $8,320. Also, during the year ended December 31, 2024, the Company issued 10,249,605 common shares in conjunction with the conversion of long-term debt, plus related accrued interest, totalling $9,225 and issued 2,583,316 common shares to settle certain accounts payable.

Subsequent to March 31, 2025, the Company issued 3,975,780 CDIs in conjunction with the exercise of CDI Options for proceeds totalling $3,646.

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Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

The Company believes that, based on the current price of APT and its forecast production schedule for fiscal 2025 and into Q1 of 2026, it has the ability to generate sufficient cash flow to meet its current obligations at its producing mine. The current price of APT has reached levels where it is sufficient to cover the Company's cash operating costs on existing production volumes. Should the Company no longer be able to produce tungsten concentrate in sufficient quantity, then the Company may not be able to meet its current and long-term obligations. Outside of abiding by (i) Spanish law requirements on minimum capital adequacy at Valtreixal Resources Spain SL and Daytal Resources Spain SL ("**Daytal**"), (ii) Korean law requirements on minimum capital adequacy at Almonty Korea Tungsten, and (iii) Portuguese law requirements on minimum capital adequacy at BTW, there is no legal restriction on Almonty's ability to repatriate capital from its subsidiaries.

The Company has $171,612 in long-term debt as at March 31, 2025 ($158,022 as at December 31, 2024), of which $17,711 is the current portion ($21,894 as at December 31, 2024), comprised of individual facilities with Spanish domiciled banks, one facility with an Austrian bank, promissory notes owed to a shareholder, convertible loans and drawdowns on the KfW loan facility as at March 31, 2025. (See Note 8 of the Company's Q1-2025 Interim Financial Statements for additional details regarding each component of long-term debt.)

**Summary of Long-Term Debt**

---

| | | |
|:---|:---|:---|
|  | **March 31,**<br>**2025** | **December 31,**<br>**2024** |
| Term and other loans - Euro | **25514** | 24486 |
| Term and other loans - US dollar | **8626** | 8634 |
| Promissory Note | **250** | 250 |
| Convertible debentures | **27297** | 27872 |
| Lease liabilities | **508** | 210 |
| Mine Construction Facility | **115067** | 106876 |
|  | **177262** | 168328 |
| Less: Current portion | **(17711)** | (21894) |
|  | **159551** | 146434 |
| Fair value of derivative liabilities | **5288** | 1121 |
| Deferred financing costs | **(10938)** | (11427) |
|  | **153901** | 136128 |

---

**Summary of Contractual Obligations**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Payments Due by Period** | **Payments Due by Period** | **Payments Due by Period** | **Payments Due by Period** | **Payments Due by Period** |
| **Contractual Obligations** | **Less than 1 year** | **1-2 years** | **3-4 years** | **After 5 years** | **Total** |
| Debt | 22040 | 86266 | 60013 |  | 168319 |
| Capital Lease Obligations | 52 | 113 | 45 | - | 210- |
| **Total Contractual obligations** | **22092** | **86379** | **60058** | **-** | **168529** |

---

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Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

**Outstanding Share Data**

*Common shares*

 

As of the date of this MD&A, there were 288,189,494 common shares and CDIs outstanding, 23,947,000 stock options outstanding, with each option entitling the holder thereof to acquire one common share of Almonty at a weighted average price of $0.76 per share, and 32,811,515 share purchase warrants (which includes CDI Options) enabling the holders to acquire one common share at prices between C$0.60 and A$1.25 per share, expiring between June 7, 2025 and February 7, 2028.

As at March 31, 2025, the Company had common shares outstanding as follows:

---

| | | |
|:---|:---|:---|
|  | **Number of<br> Shares** | **Amount<br> $** |
| **Authorized - Unlimited number of common shares** |  |  |
| **Issued and outstanding** |  |  |
| Outstanding at December 31 2023 | 233888668 | 127359 |
| Shares issued for cash | 18389119 | 8320 |
| Shares issued on conversion of long-term debt | 2813 785 | 1572 |
| Shares issued on exercise of warrants | 10329.251 | 9265 |
| Outstanding at December 31 2024 | 265420823 | 146516 |
| **Shares issued for cash** | **13360333** | **7288** |
| **Shares issued on exercise of options** | **585654** | **197** |
| **Shares issued on exercise of warrants** | **3313975** | **3307** |
| **Shares issued for settlement of debt** | **100000** | **90** |
| **Outstanding at March 31, 2025** | **282780785** | **157398** |

---

*Stock options*

 

The Company has established a stock option plan for its directors, officers, employees and technical consultants under which the Company may grant options to acquire a maximum number of common shares equal to 10% of the total issued and outstanding common shares of the Company.

During the three months ended March 31, 2024, the Company granted 1,000,000 share options to a director of the Company. The options vested immediately and are exercisable for a period of five years from the grant date at $0.56 per common share. The grant resulted in the recording of share-based compensation expense of $312. The value of the stock options granted was determined using the Black-Scholes option pricing model using a risk-free interest rate of 3.32%, volatility of 62.99% based on historical volatility, expected life of 5 years, and no expected dividend yield.

During June 2024, the Company granted 1,275,000 stock options. The options vested immediately and are exercisable for a period of five years from the grant date at $0.63 per common share.

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Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

During July 2024, the Company granted 3,030,000 stock options. The options vested immediately and are exercisable for a period of five years from the grant date at $0.66 per common share.

During August 2024, the Company granted 200,000 stock options. The options vested immediately and are exercisable for a period of five years from the grant date at $0.685 per common share.

During November 2024, the Company granted 200,000 stock options. The options vested immediately and are exercisable for a period of five years from the grant date at $0.81 per common share.

During the three months ended March 31, 2025, the Company granted stock options enabling the holders to acquire up to 1,122,000 common shares with exercise prices ranging from $1.195 to $1.915 per share, expiring five years from issuance.

As of the date of this MD&A, there are 23,947,000 options outstanding, all of which were granted under the Company's previous stock option plan or the Company's Omnibus Equity Incentive Plan (the "**Omnibus Plan**"), which was approved by the Company's shareholders at the Company's Annual and Special Meeting of Shareholders held on April 30, 2025. All of the outstanding options are fully vested.

Between December 31, 2023 and March 31, 2025, the Company had options outstanding as follows:

---

| | |
|:---|:---|
|  | **Number of**<br>**Share Options** |
| Options outstanding at December 31, 2023 | 17075000 |
| Options granted | 5705000 |
| Options expired | (1000000) |
| Options outstanding at December 31. 2024 | 21780000 |
| **Options granted** | **1122000** |
| **Options exercised** | **(585654)** |
| **Options expired** | **(219346)** |
| **Options outstanding at March 31, 2025** | **22097000** |

---

As at March 31, 2025, the Company had outstanding options, all of which are exercisable, as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Range of Exercise Prices** | **Number Outstanding** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Weighted Average Remaining**<br> **Contractual Life** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Weighted Average Exercise**<br> **Price** |
| $0.33 - $0.59 | 5750000 | 3.41 | $0.47 |
| $0.60 - $0.79 | 5250 000 | 4.32 | $0.66 |
| $0.80 - $1.23 | 11097000 | 2.48 | $0.96 |
|  | **22097000** | **3.16** | $**0.76** |

---

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Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

*Warrants*

 

Between December 31, 2023 and March 31, 2025, the Company had share purchase warrants outstanding as follows:

---

| | |
|:---|:---|
|  | **Number of <br>Warrants** |
| Warrants outstanding at December 31. 2023 | 16.427214 |
| Warrants issued | 18389.119 |
| Warrants expired | (80 5396) |
| Warrants outstanding at December 31, 2024 | 26, 40.937 |
| **Warrants issued** | **13 360 333** |
| **Warrants exercised** | **(3 313 975)** |
| **Wanants outstanding at March 31, 2025** | **36787295** |

---

As at March 31, 2025, the Company had share purchase warrants outstanding as follows:

---

| | | | |
|:---|:---|:---|:---|
| <br>**Exercise Prices** |<br><br>**Number Outstanding** | **Weighted**<br>**Average**<br>**Remaining**<br>**Contractual**<br> **Life** |<br>**Weighted**<br>**Average**<br>**Exercise <br>Price** |
| $0.45 - $0.69 | 5366013 | 1.59 | $0.55 |
| $0.70 - $0.99 | 12009785 | 1.00 | $0.75 |
| $1.00 - $1.21 | 19411497 | 2.55 | $1.13 |
|  | **36787295** | **1.90** | $**0.92** |

---

*Restricted Share Units*

 

Restricted Share Units ("**RSUs**") granted to employees under the Company's Restricted Share Unit Plan vest in thirds at the end of each year from the date of the grant. Between December 31, 2023 and March 31, 2025, the Company had RSUs outstanding as follows:

---

| | | |
|:---|:---|:---|
|  | **Number of <br> RSUs** | **Number of <br> RSUs** |
| Units, December 31, 2023 |  | 1750000 |
| Units granted | | 2,100,000 |
| **Units outstanding at December 31, 2024** |  | **3,850,000** |
| **Units granted** | | **913,400** |
| **Units outstanding at March 31, 2025** | | **4,763,400** |

---

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Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

During the three months ended March 31, 2025, the Company granted 913,400 RSUs under the Omnibus Plan at $2.34 per share to two directors of the Company.

*Loss on Valuation of Warrant Liabilities*

 

The Company uses the "fixed for fixed" criteria per International Accounting Standard ("IAS") *32 Financial Instruments: Presentation* with respect to the measurement of warrants issued as part of a unit private placement. The Company's functional currency is the Canadian dollar and, if warrants that are issued have an exercise price denominated in a currency other than the Canadian dollar, these warrants do not pass the "fixed for "fixed" criteria and, as a result, are accounted for as a derivative financial liability per IAS 32. As a result, at the balance sheet date, warrant liabilities must be recorded at their fair value.

The Company uses the Black-Scholes option pricing model to measure the fair value of warrant liabilities wherein the Company's trading price is the main driver for the calculation of the resulting amount.

Given the fact that the Company's trading price increased from Cdn$0.91 per share at December 31, 2024 to Cdn$2.25 per share at March 31, 2025, the Company recognized a loss on valuation of warrant liabilities of $25,810 (2024 - $109) for the three months ended March 31, 2025.

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Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

3. Quarterly
 Earnings and Cash Flow

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **1<sup>st</sup> Quarter (2025)** | **4<sup>th</sup> Quarter (2024)** | **3<sup>rd</sup> Quarter (2024)** | **2<sup>nd</sup> Quarter (2024)** |
| **Period Ended** | **March 31,**<br>**2025**<br>**$'000** | **December 31,**<br> **2024**<br> **$'000** | **Sept 30,**<br>**2024**<br>**$'000** | **June 30,**<br>**2024**<br>**$'000** |
| Total Revenue | 7908 | 6280 | 6794 | 7938 |
| Net income (loss) | (34622) | (5404) | (5319) | (1793) |
| Basic earnings (loss) per share | $(0.13) | $(0.02) | $(0.02) | $(0.02) |
| Diluted earnings (loss) per share | $(0.13) | $(0.02) | $(0.02) | $(0.01) |
| Total assets | 279041 | 256349 | 255280 | 231163 |
| Total long-term debt | 171612 | 158022 | 149748 | 132779 |
| Dividends |  |  |  |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1<sup>st</sup> Quarter (2024)** | **4<sup>th</sup> Quarter (2023)** | **3<sup>rd</sup> Quarter (2023)** | **2<sup>nd</sup> Quarter (2023)** |
| <br>**Period Ended** | **March 31,**<br>**2024**<br>**$'000** | **December 31,**<br>**2023**<br>**$'000** | **Sept 30,**<br>**2023**<br>**$'000** | **June 30,**<br>**2023**<br>**$'000** |
| Total Revenue | 7824 | 5421 | 4459 | 5533 |
| Net income (loss) | (3782) | (3156) | (1870) | (1395) |
| Basic earnings (loss) per share | $(0.01) | $(0.01) | $(0.01) | $(0.01) |
| Diluted earnings (loss) per share | $(0.01) | $(0.01) | $(0.01) | $(0.01) |
| Total assets | 233638 | 235334 | 192151 | 180411 |
| Total long-term debt | 128576 | 130067 | 110513 | 95047 |
| Dividends |  |  |  |  |

---

4. Critical
 Accounting Estimates

The preparation of Almonty's consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities and contingent liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Estimates and assumptions are continuously evaluated and are based on management's experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. However, actual outcomes can differ from these estimates. In particular, information about significant areas of estimation uncertainty considered by management in preparing the consolidated financial statements is described in more detail in Note 2 and Note 8 of the Company's 2024 Annual Consolidated Financial Statements.

5. New
 and Pending Accounting Standards

Other accounting standards or amendments to existing accounting standards that have been issued but have future effective dates have now been assessed by the Company and are not expected to have any impact on the Company's consolidated financial statements. The Company has not early adopted these standards.

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Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

**Off Balance Sheet Arrangements**

The Company has no off-Balance Sheet arrangements as at the date of this MD&A.

**Proposed Transactions**

The Company has not entered into any undisclosed proposed transactions as at the date of this MD&A.

6. Related
 Party Transactions

For the three months ended March 31, 2025, the Company paid or accrued compensation to key management personnel, which includes the Company's Chief Executive Officer, Chief Financial Officer and members of the Board of Directors totalling $357 (2024 - $301).

The Company has long-term debt owing to DRAG, a company that is an existing shareholder of Almonty, and whose former Chief Executive Officer is a member of the Board of Directors of the Company. In addition to the transactions disclosed in Notes 8(b) and 8(c) of the Company's Q1-2025 Interim Financial Statements, interest of $215 was accrued on the DRAG loans during the three months ended March 31, 2025 (2024 - $217). As at March 31, 2025, there is $5,354 (December 31, 2024 - $5,139) of unpaid interest on these loans included in accounts payable and accrued liabilities.

7. General

**Risks and Uncertainties**

The Company operates in the mining industry, which is subject to numerous significant risks that can influence profitability. The Company has disclosed several risks below which it believes to be the most significant and that could have a material impact on its current and future operations. Other risks may exist or may arise at a future date. For additional, and more detailed, risk factors, please see the Company's Annual Information Form dated March 20, 2025, under the heading "Risk Factors".

**Ability to Continue as a Going Concern**

The Company faces risks related to its ability to continue as a going concern. The Company's financial stability is contingent upon its ability to manage substantial long-term debt, secure additional financing, and generate sufficient cash flows from its operations. Notably, the Company's operations and development projects, including the Sangdong Mine, are capital-intensive and subject to various risks, including delays, cost overruns, and regulatory challenges. Any adverse developments in these projects could impact the Company's cash flow and ability to meet its financial obligations. While the Company has been actively managing its financial position and securing necessary financing to support its operations and its current forecast indicates that it will have sufficient cash flows from operations and from financings to continue as a going concern and settle obligations as they come due, any changes in these estimates or adverse developments in the Company's operations or financing activities could materially impact its ability to continue as a going concern.

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Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

**Negative Cash Flows From Operations**

The Company anticipates increased cash flow from operating activities once production begins at the Sangdong Mine, which is expected to occur by the end of 2025. The Company may, in the future, seek further financing through long-term debt from financial institutions, debt or equity financing through capital markets, or private placements. The availability of this capital is subject to general economic conditions and lender and investor interest in the Company's projects and there can be no assurance that additional capital or financing will be available if needed or that, if available, the terms of such financings will be acceptable to the Company.

**Interest Rate Risk**

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 the long-term debt, $140,221 is subject to floating interest rates and $37,040 is subject to fixed interest rates. A portion of the floating-rate debt totalling $25,100 is subject to a fixed spread over the 6- and 12-month Euro Interbank Offered Rate ("**EURIBOR**")**.** A change of 100 basis points (1%) in the EURIBOR would result in a $251 change in annual interest costs. The remaining floating rate debt of $115,067 is based on a fixed spread over the 3-month SOFR. A change of 100 basis point (1.0%) in the 3-month SOFR would result in a $1,150 change in annual interest costs.

The Company may in the future become a borrower of an additional material amount of funds or repay its existing outstanding long-term debt at any time without penalty. The Company's primary operations are located in Spain, the Republic of Korea and Portugal. The ongoing uncertainty in the financial markets may have a negative impact on both the Company's future borrowing costs and its ability to obtain debt financing.

**Foreign Currency Risk**

Almonty's wholly owned subsidiary, BTW, operates in Portugal, which uses Euros (€) as its functional currency. Its output is a commodity that is primarily priced in United States dollars (US$) which is different than the functional currency of the Company and its subsidiaries, and the Company and its subsidiaries may also incur costs or obtain indebtedness in a currency that is different from their functional currency. Additionally, Daytal's current care and maintenance expenses, as well as any potential future operating costs, are primarily denominated in Euros, which exposes the Company to currency fluctuations between the Euro and its reporting currency. Almonty's functional currency is the Canadian dollar but it advances funds to subsidiaries in the functional currency of the subsidiary to which funds are advanced. As such, the Company's interim condensed consolidated balance sheet and profit or loss can be significantly affected by movements in various currencies (US$, A$, KRW and €).

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Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

The Company's Canadian dollar functional currency businesses have the following financial instruments denominated in foreign currencies:

---

| | | |
|:---|:---|:---|
|  | <br>**Currency** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Carrying**<br> **Value ($)** |
| Cash and cash equivalents | US$ | 367 |
| Cash and cash equivalents | AUS$ | 2733 |
| Cash and cash equivalents | EURO€ | 9451 |
| Accounts payable and accrued liabilities | US$ | 5987 |
| Accounts payable and accrued liabilities | AUS$ | 378 |
| Accounts payable and accrued liabilities | KRW | 7232 |
| Long-term debt | US$ | 130698 |
| Long-term debt | EURO€ | 35077 |

---

A 5% change in the value of the Canadian dollar relative to the above currencies would change net income for the three months ended March 31, 2025 by approximately $8,478 The Company's Euro functional currency businesses have the following financial instruments denominated in foreign currencies:

---

| | | |
|:---|:---|:---|
|  | **Currency** | **Carrying<br> Value ($)** |
| Cash and cash equivalents | US$ | 329 |
| Trade receivables | US$ | 1247 |

---

A 5% change in the value of the Euro relative to the above currencies would change net income for the three months ended March 31, 2025 by approximately $79.

The Company's Korean Won functional currency businesses have the following financial instruments denominated in foreign currencies:

---

| | | |
|:---|:---|:---|
|  | <br>**Currency**  | &nbsp;&nbsp;**Carrying**<br> **Value (S)** |
| Accounts payable and accrued liabilities | US$ | 214 |
| Long-term debt | US$ | 115068 |

---

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Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

A 5% change in the value of the Korean Won relative to the above currencies would change net income for the three months ended March 31, 2025 by approximately 5,764.

**Credit risk**

The Company deposits surplus cash with major banks of high quality credit standing, in interest-bearing accounts that earn interest at floating rates. Trade receivables represent amounts receivable related to delivery of concentrate that have not been settled and are with the Company's customers, all of whom have good credit ratings and the Company has not experienced any credit issues with any of its customers. Other assets include a non-interest-bearing promissory note and deposits. The carrying value of the cash and cash equivalents, trade receivables, restricted cash, promissory notes and deposits totalling $18,454 represents Almonty's maximum exposure to credit risk.

**Liquidity Risk**

The Company's objective is to use cash and cash equivalents, finance leases, and third party short- and long-term loans (see Note 8 of the Company's Q1-2025 Interim Financial Statements for debt maturities) and equity in order to maintain liquidity. Almonty's policy is to maximize liquidity in order to enable the continued development of the mines and operations of the plants and to enable the development of its projects. All financial liabilities with a contractual term of 12 months or less are classified as current. The Company is currently pursuing debt and equity financing opportunities to increase its liquidity.

**Price of Metals**

The Company's earnings are directly related to commodity prices, as revenues are derived from the sale of tungsten. In common with other commodities, tungsten markets are cyclical and may be volatile.

Almonty's policy is to maintain exposure to commodity price movements at its mining operations. The Company sells WO<sub>3</sub> concentrate that is denominated in US$ per MTU. Every +/- US$10.00 movement in the average price of one MTU of European APT as quoted on the MB impacts the Company's revenue by +/- approximately US$8.00 per MTU of WO<sub>3</sub> concentrate.

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Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

Tungsten prices fluctuate and are affected by factors including demand from industrial sectors such as aerospace, energy, and defence, international economic and political trends, expectations of inflation, expectations of economic activity, the exchange rate of the U.S. dollar to other major currencies, political and economic conditions including international trade disputes and the imposition of tariffs, interest rates, global or regional consumption and demand patterns, speculative activities and increased production due to improved mining and production methods, production costs in major tungsten-producing regions, speculative positions taken by investors or traders in tungsten, wars and other conflicts, changes in supply and changing investor or consumer sentiment (including in connection with the transition to a low-carbon economy, investor interest in cryptocurrencies and other investment alternatives) as well as competition from alternative materials, all of which are beyond the Company's control. Tungsten prices may also be negatively affected by any slowing of the global economy, increases in exports from one market economy countries, notably China, unfavourable shifts in tungsten demand in key markets such as Asia, Europe, and North America, and the release of tungsten concentrate onto the market from the U.S. National Defense Stockpile. The aggregate effect of these factors is impossible to predict with accuracy. There is thus no assurance that a profitable market will continue to exist for the sale of tungsten. Fluctuations in tungsten prices may materially adversely affect the Company's financial performance or results of operations. If the market price of tungsten concentrate falls below the Company's realized or anticipated all-in sustaining costs per MTU of production at one or more of its mines, projects or other properties and remains so for any sustained period, the Company may experience losses and/or may curtail or suspend some or all of its mining, exploration or development activities at such mines, projects or other property or at other mines or projects. A fall in the market price of tungsten concentrate may affect the Company's ability to generate positive cash flow from operations. In addition, such fluctuations may require changes to the Company's mine plans. The Company's current mine plans and mineral reserve and mineral resource estimates are generally based on a tungsten price of $450 per MTU for mineral reserves and for mineral resources. In addition, lower tungsten prices may require the mine plans to be changed, which may result in reduced production, higher costs than anticipated, or both, and estimates of mineral reserves and mineral resources may be reduced. Also, increased volatility in the price of tungsten may result in the Company delaying or abandoning some of its growth projects.

**Uncertainties and Risks Relating to the Start-Up of the Sangdong Mine**

The Company's ability to maintain current, or achieve forecast, tungsten production levels is dependent on the successful development and potential expansion of the Sangdong Mine. There are many risks and unknowns inherent in all projects. For example, the economic feasibility of projects is based upon many factors, including:

● the accuracy of reserve estimates;

● metallurgical recoveries;

● capital and operating costs of such projects;

● the timetables for the construction, commissioning and ramp-up of such projects and any delays or interruptions;

● the reliability of construction designs and accuracy of engineering;

● changes in scope;

● the ability to manage large-scale construction; and

● the future prices of commodities.

Unforeseen circumstances, including those related to the amount and nature of the mineralization at the development site, technological impediments to extraction and processing, legal requirements, governmental intervention, infrastructure limitations, transport issues, environmental issues, local community relations or other events, could result in the development of the Sangdong Mine becoming impractical or uneconomic. Further, actual costs and economic returns may differ materially from the Company's estimates, or the Company may fail or be delayed in obtaining the governmental permits and approvals necessary in connection with the project, in which case, the project may not proceed either on its anticipated timing or at all.

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Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

Frequently, new and/or expanded mining operations experience unexpected problems during the start-up phase, and delays can often occur prior to production reaching its expected steady state levels. The Company may also experience actual capital and operating costs and operating results that differ materially from those anticipated. In addition, experience from actual mining or processing operations may identify new or unexpected conditions that could reduce production below, or increase capital or operating costs above, current estimates. Accordingly, the Company cannot provide assurance that its activities will result in profitable mining operations at the Sangdong Mine.

**Canadian Corporate Tax Risk**

For Canadian tax purposes, on the date of the US Domestication we will be deemed to have a year end and to have disposed of all of our property for proceeds equal to the fair market value of that property. We will also be subject to an additional corporate emigration tax imposed on the amount, if any, by which the fair market value of our property, net of certain liabilities, exceeds the paid-up capital of our issued and outstanding common shares.

The quantum of tax payable, if any, by the Company upon the US Domestication will depend upon a number of considerations including whether the Company reorganizes and/or winds up one or more of its subsidiaries prior to the US Domestication becoming effective, the valuation of the Company's assets, the amount of its liabilities, its shareholder composition, as well as certain Canadian tax amounts, accounts and balances of the Company, each as of the time of the US Domestication. There can be no assurances that material adverse tax consequences will not result from the US Domestication or the transactions completed in relation to the US Domestication in Canada. In addition, it is possible that following the US Domestication, the Canada Revenue Agency may disagree with the Company's determination of the fair market value of its properties at the relevant time and/or the Company's determination of any of its tax accounts or tax attributes. As a result, the quantum of Canadian tax payable by the Company may materially exceed the Company's estimates. Any such adverse tax consequences could materially adversely affect the Company. For additional information on the Canadian federal income tax consequences of the US Domestication, see the section entitled "*Certain Canadian Federal Income Tax Considerations Related To The Arrangement*" of the management information circular of the Company dated January 31, 2025 and filed on February 4, 2025, prepared for the purposes of the special meeting of the shareholders of the Company held on February 27, 2025.

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Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

**Restoration Provision**

As at March 31, 2025, Almonty has recognized a restoration provision of $1,030 (December 31, 2024 -

$1,008) with respect to Daytal's future obligation to restore and reclaim the mine once it has ceased to mine tungsten ore from the Los Santos Mine. The restoration provision represents the present value of rehabilitation costs of $982 relating to the mine site which are expected to be incurred beginning in 2027 after the Los Santos Mine ceases to mine ore based on the current estimate of economically recoverable ore resources. This provision has been created based on Almonty's internal estimates. Assumptions based on the current economic environment have been made, which management believes are a reasonable basis upon which to estimate the future liability. These estimates are reviewed regularly to take into account any material changes to the assumptions. Actual rehabilitation costs will ultimately depend upon future market prices for the necessary decommissioning works required which will reflect current market conditions at that time. The timing of the rehabilitation is likely to depend on when the Los Santos Mine ceases to produce at economically viable rates. This in turn will depend on Almonty's ability to extend the mine life years through additional exploration and also on the future price of WO<sub>3</sub> concentrate. The Company has had its mine plan approved by the local mining and environmental authorities in the Province of Salamanca and is currently awaiting approval of the regional mining authority in Castilla y Leon. Almonty's current mine plan entails ongoing reclamation work of the site as part of the pit optimization work (several small pits that have been fully mined are filled in and reclaimed as part of the regular waste rock movement and stripping work carried on other pits that are in production, as opposed to hauling the waste rock to the waste dump). The current mine plan under review by the relevant authorities entails the reclamation of the majority of the site as part of on-going operations and waste rock movement. The restoration provision currently recognized by the Company is estimated to be sufficient to cover any remedial restoration and reclamation work needed upon completion of the tailings reprocessing operation. Upon completion of open- pit mining operations, during the period when the Company will process the bulk of its inventory stockpile of mineralized tailings, Almonty estimates that the current restoration provision will be sufficient to complete all reclamation work required under its mine plan. The relevant Spanish authorities may determine, upon final review, that the amount required to be posted for future reclamation work be increased. Upon approval of the mine plan, the Company intends to arrange an insurance policy to cover any increase in the assessed reclamation requirements. The Company anticipates that it will receive approval of its mine plan for the Los Santos Mine in calendar 2025 (the updated plan was originally filed in February 2015). The Company continues to work with the relevant authorities in Spain with respect to obtaining approval of its mine plan and is also engaged in active discussions with several insurance brokers to renew the insurance policy to cover the life of mine. The Company had posted an insurance policy to cover the anticipated reclamation costs when it originally filed its updated mine plan in February 2015. This policy expired in July 2016 and will be renewed upon final approval of the mine plan as filed. The relevant Spanish authorities are aware of the lapse in insurance coverage and are continuing their review of the mine plan as filed.

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Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

Banco Popular has posted a bank warranty of €180 ($279) on behalf of Daytal with the Region of Castilla y Leon, Trade and Industry Department as a form of deposit to cover the expected costs of restoring the Los Santos Mine as required by Daytal's Environmental Impact Statement that forms a part of its mining and exploitation license on the Los Santos Mine provision. The bank warranty cannot be cancelled unless such cancellation is approved by the government of Castilla y Leon upon approval of the completion of the restoration work. The bank warranty is undrawn and carries a quarterly stand-by fee of approximately €1 per quarter.

As at March 31, 2025, there is a restoration provision of $3,070 (December 31, 2024 - $3,161) with respect to the Sangdong Mine based on the amount assessed by the relevant local government authorities.

As at March 31, 2025, there is a restoration provision of $21,082 (December 31, 2024 - $20,122) with respect to the Panasqueira Mine's future obligation to restore and reclaim the mine once it has ceased to mine ore, currently estimated to be in the year 2045. The restoration provision represents the present value of rehabilitation costs relating to the mine site which are expected to be incurred subsequent to 2045. Total rehabilitation costs relating to the mine site are estimated to be $23,694 and are expected to be incurred after the mine ceases production. Assumptions based on the current economic environment have been made, which management believes are a reasonable basis upon which to estimate the future liability. These estimates are reviewed regularly to take into account any material changes to the assumptions. Actual rehabilitation costs will ultimately depend upon future market prices for the necessary decommissioning works required which will reflect current market conditions at that time. The timing of the rehabilitation is likely to depend on when the mine ceases to produce at economically viable rates. This in turn will depend on Almonty's ability to extend the mine life years through additional exploration and also on the future price of WO<sub>3</sub> concentrate.

A summary of the Company's restoration provision is presented below:

---

| | |
|:---|:---|
| Balance at December 31, 2023 | 22820 |
| Revisions in estimated cash flows and changes in assumptions | 579 |
| Accretion expense | 495 |
| Translation adjustment | 396 |
| Balance at December 31, 2024 | 24290 |
| **Accretion expense** | **21** |
| **Translation adjustment** | **871** |
| **Balance at March 31, 2025** | **25182** |

---

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Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

8. Disclosure
 Control and Procedures and Internal Control of Financial Reporting

The Company's management, under the supervision of the Chief Executive Officer ("**CEO**") and Chief Financial Officer ("**CFO**"), has designed disclosure controls and procedures ("**DC&P**") and internal control over financial reporting ("**ICFR**"), as defined in National Instrument 52-109, *Certification of Disclosure in Issuers' Annual and Interim Filings*, based on the *Internal Control – Integrated Framework* (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

DC&P are designed to provide reasonable assurance that material information relating to the Company is made known to the CEO and CFO during the reporting period and the information required to be disclosed by the Company is recorded, processed, summarized and reported in a timely and appropriate manner. ICFR is designed to provide reasonable assurance regarding the reliability of financial reporting for external purposes in accordance with international financial reporting standards. Due to the inherent limitations associated with any such controls and procedures, management recognizes that, no matter how well designed and operated, they may not prevent or detect misstatements on a timely basis.

The Company's management, under the supervision of the CEO and CFO, has evaluated both the design and operating effectiveness of its DC&P and ICFR and concluded that, as of March 31, 2025 and December 31, 2024, they were not effective in providing reasonable assurance regarding required disclosures and the reliability of external financial reporting as a result of the following material weakness:

● In its assessment of the effectiveness in internal control over financial reporting as of December 31, 2019, the Company determined it had ineffective design and implementation of internal controls over the financial statement close and disclosure process, including regarding assertions about the completeness, existence and accuracy of the financial information. Due to this material weakness, management concluded that ICFR was not effective as of December 31, 2019.

A material weakness is a significant deficiency, or combination of significant deficiencies, that result in more than a remote likelihood that a material misstatement of the annual or interim financial statements will occur and not be detected by management before the financial statements are published. Controls can potentially be circumvented by the individual acts of some persons, by collusion of two or more people or by management override of the control. The design of any system of controls is also based on part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

Page \| 28

![](ex4-5_002.jpg)

Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

In light of the aforementioned material weakness, management conducted a thorough review of all significant or non-routine adjustments for the fifteen months ended December 31, 2019, for the year ended December 31, 2020, for the year ended December 31, 2021, for the year ended December 31, 2022, for the year ended December 31, 2023, for the year ended December 31, 2024 and for the three months ended March 31, 2025. As a result of this review, management believes that there were no material inaccuracies or omissions of material fact and, to the best of its knowledge, believes that the consolidated financial statements for the fifteen months ended December 31, 2019, for the year ended December 31, 2020, for the year ended December 31, 2021, for the year ended December 31, 2022, for the year ended December 31, 2023, for the year ended December 31, 2024 and for the three months ended March 31, 2025 fairly present in all material respects and the financial condition and results of operations for the Company in conformity with international financial reporting standards.

**Remediation Plan for Material Weakness in Internal Control Over Financial Reporting**

The Company is developing and will implement a remediation plan to address the material weakness described above. Specifically, the Company plans to increase the depth and timeliness of management's review procedures over the financial close process and related ICFR.

**Changes in ICFR**

National Instrument 52-109 also requires Canadian public companies to disclose any changes in ICFR during the most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, ICFR. With the exception of remediation of material weaknesses in ICFR that were identified and disclosed in relation to the fifteen months ended December 31, 2019, no changes were made to the Company's ICFR during the year ended December 31, 2021, the year ended December 31, 2022, the year ended December 31, 2023, the year ended December 31, 2024 or the three months ended March 31, 2025 which have materially affected, or are reasonably likely to materially affect, ICFR.

9. Management's
 Responsibility for Financial Statements

The information provided in this report, including the Company's financial statements, is the responsibility of management. In the preparation of these statements, estimates are sometimes necessary to make a determination of future values for certain assets or liabilities. Management believes such estimates have been based on careful judgements and have been properly reflected in the accompanying financial statements.

---

| |
|:---|
| May 15, 2025 |
| On behalf of the Company's management and the Board of Directors, |
| *"Lewis Black"* |
| Chairman, President and Chief Executive Officer |

---

Page \| 29

![](ex4-5_002.jpg)

Amended Management's Discussion and Analysis

Three Months Ended March 31, 2025

Dated: May 15, 2025

(in 000's of Canadian Dollars, unless otherwise noted)

Glossary of Terms

---

| | |
|:---|:---|
| A$ | Australian dollars |
| APT | ammonium para tungstate is an intermediate product which is one of the principal chemical forms in which tungsten is traded |
| C$ | Canadian dollars |
| Concentrates | the valuable fraction of an ore that is left after waste material is removed in processing |
| € | Euros |
| KRW | Korean Won |
| MB | Metal Bulletin of London |
| MTU | metric tonne unit, equal to 1 percent of a metric tonne or 10 kg (22.046 pounds) of contained WO3 |
| NI 43-101 | National Instrument 43-101 – *Standards of Disclosure for Mineral Projects* |
| Scheelite | a brown tetragonal mineral, CaWO<sub>4</sub>. It is found in pneumatolytic veins associated with quartz and fluoresces to show a blue colour. Scheelite is a mineral of tungsten |
| Tonne | a metric unit equal to 1,000 kg (2,204.6 pounds) |
| Tungsten concentrates | concentrates generally containing between 40 and 75 percent WO<sub>3</sub> |
| US$ | United States dollars |
| W | the elemental symbol for tungsten |
| WO<sub>3</sub> | tungsten tri-oxide, a compound of tungsten and oxygen |

---

Page \| 30

## Exhibit 4.6

**Exhibit 4.6**

![](ex4-6_001.jpg)

NOTICE OF ANNUAL GENERAL AND SPECIAL

MEETING OF SHAREHOLDERS

TO BE HELD ON APRIL 30, 2025

AND

MANAGEMENT INFORMATION CIRCULAR

**ALMONTY INDUSTRIES INC.**

**NOTICE OF ANNUAL GENERAL AND SPECIAL MEETING OF SHAREHOLDERS**

**TO BE HELD ON APRIL 30, 2025**

**NOTICE IS HEREBY GIVEN** that the Annual General and Special Meeting of the holders of common shares (the "**Shares**", and holders thereof, the "**Shareholders**") of Almonty Industries Inc. (the "**Company**") will be held in the North Boardroom at the offices of Suite 300 – 1055 W. Hastings Street, Vancouver, British Columbia on Wednesday, April 30, 2025, at 10:00 a.m. (Vancouver time) (together with any adjournment or postponement thereof, the "**Meeting**").

The following business of the Company will be transacted at the Meeting:

1. to
 receive and consider the audited annual consolidated financial statements of the Company
 for the fiscal year ended December 31, 2024, together with the auditor's report thereon;

2. to
 elect directors to serve for the ensuing year;

3. to
 confirm the appointment of the auditor of the Company by the board of directors of the Company
 (the "**Board**") and to appoint the auditor of the Company for the ensuing
 year and to authorize the Board to fix such auditor's remuneration;

4. to
 consider, and if thought fit, to approve, by way of disinterested Shareholder approval, the
 extension of the term of 700,000 share purchase warrants originally due to expire on February
 19, 2025 to February 19, 2026;

5. to
 consider and, if thought fit, to pass a special resolution, the full text of which is set
 out in the management information circular (the "**Circular**") accompanying
 this Notice of Annual General and Special Meeting of Shareholders, approving an amendment
 to the articles of the Company, if and when the Board shall deem appropriate to do so, but
 in any event no later than April 30, 2026, to consolidate the Shares, issued and unissued,
 on the basis of a consolidation ratio to be determined by the Board of up to five (5) pre-consolidation
 Shares for one (1) post-consolidation Share, and authorizing the Board to determine the final
 consolidation ratio in its sole discretion, as more particularly described in the Circular;

6. to
 consider and, if thought fit, to pass an ordinary resolution (the "**New EIP Resolution** "),
 the full text of which is set out in the accompanying Circular, to approve the adoption of
 a new omnibus equity incentive plan of the Company, substantially in the form appended as
 Schedule "B" to the Circular;

7. if
 the New EIP Resolution is not approved by Shareholders, to consider, and if thought fit,
 to pass an ordinary resolution approving unallocated stock options under the Company's
 Third Amended and Restated Incentive Stock Option Plan until April 30, 2028, as more particularly
 described in the accompanying Circular; and

8. to
 transact such other business as may properly come before the Meeting.

**<u>NOTICE-AND-ACCESS</u>**

The Company has elected to use the notice-and-access provisions ("**Notice-and-Access**") under National Instrument 54-101 – *Communications with Beneficial Owners of Securities of a Reporting Issuer* and National Instrument 51-102 – *Continuous Disclosure Obligations* to distribute the proxy-related materials pertaining to the Meeting, including the Notice of Meeting and accompanying Circular to Shareholders. Notice-and-Access allows the Company to post electronic versions of the Meeting materials on SEDAR+ and on the Company's website, rather than mailing paper copies to Shareholders. This alternative means of distribution of the Company's proxy-related materials in respect of the Meeting is more environmentally friendly by reducing paper use, and also reduces printing and mailing costs of the Company. Note that Shareholders still have the right to request paper copies of the Meeting materials posted online by the Company under Notice-and-Access if they so choose. The Company will not use procedures known as "stratification" in relation to its use of the Notice-and-Access provisions in relation to the Meeting. Stratification occurs when a reporting issuer using Notice-and-Access provides a paper copy of the relevant circular to some, but not all, Shareholders with the notice package in relation to the relevant meeting.

**Accessing Meeting Materials Online**

 ****

The Meeting materials are available under the Company's profile on SEDAR+ at <u>www.sedarplus.ca</u> and on the Company's website at <u>https://almonty.com/investors/agm</u>.

**Requesting Printed Meeting Materials**

 ****

Registered holders may request paper copies of the Circular and/or audited annual consolidated financial statements for the fiscal year ended December 31, 2024 and related management's discussion and analysis to be sent to them by postal delivery at no cost to them. In order to receive a paper copy of the Circular and/or audited annual consolidated financial statements for the fiscal year ended December 31, 2024 and related management's discussion and analysis, please call the Company's transfer agent, Computershare Investor Services Inc. ("**Computershare**") toll free at 1-866-962-0498 (within North America) or direct (1-514-982-8716) from outside North America and enter your control number as indicated on your Proxy or Voting Instruction Form.

Beneficial holders who wish to receive a paper copy of the Circular and/or audited annual consolidated financial statements for the fiscal year ended December 31, 2024 and related management's discussion and analysis should contact Broadridge Investor Communications Solutions, Canada at 1-877-907-7643 or outside North America at 303-562-9305.

Shareholders who wish to receive a paper copy of the Circular and/or audited annual consolidated financial statements for the fiscal year ended December 31, 2024 and related management's discussion and analysis in advance of the Meeting should make such request to the Company by no later than April 25, 2025, in order to allow reasonable time to receive and review the Circular prior to the proxy deadline of 10:00 a.m. (Vancouver time) on April 28, 2025. The Circular will be sent to Shareholders within three (3) business days of their request if such request is made prior to the date of the Meeting. Following the Meeting, the Circular will be sent to such Shareholders within 10 days of their request.

To obtain additional information about the Notice-and-Access process, a Shareholder may contact the Company's transfer agent, Computershare, toll free at 1-866-962-0492.

Shareholders may also request a copy of the Circular and/or audited annual consolidated financial statements for the fiscal year ended December 31, 2024 and related management's discussion and analysis up to the date of the Meeting by emailing the Company's Corporate Secretary at <u>mcgrath@iocorporate.com</u>.

**Proxies**

 ****

Shareholders are requested to complete, date and sign the form of proxy contained in the notice package they receive (the "**Notice Package**") (in the return envelope provided for that purpose), or, alternatively, to vote over the internet, in each case in accordance with the instructions set out in the Notice Package. The completed proxy form must be deposited at the office of Computershare Investor Services Inc. ("**Computershare**"), 100 University Avenue 8th Floor, Toronto, Ontario, M5J 2Y1, Attn: Proxy Department, by mail, by fax at 1-416-263-9524 or toll free at 1-866-249-7775, or online at <u>www.investorvote.com</u>, or the proxy must otherwise be registered in accordance with the instructions set forth in the Notice Package. Non-registered Shareholders who receive the proxy-related materials through their broker or other intermediary should complete and send the form of proxy or voting instruction form delivered in the Notice Package in accordance with the instructions provided by their broker or intermediary.

To be effective, a proxy must be received by Computershare not later than 10:00 a.m. (Vancouver time) on April 28, 2025, or in the case of any postponement or adjournment of the Meeting, not less than 48 hours, excluding Saturdays, Sundays and holidays, prior to the time of the postponed or adjourned meeting. **Late proxies may be accepted or rejected by the Chairperson of the Meeting in his or her discretion. The Chairperson is under no obligation to accept or reject any particular late proxy.**

As set out in the notes to the proxy, the enclosed proxy is solicited by management, but you may amend it, if you so desire, by striking out the names listed therein and inserting in the space provided, the name of the person you wish to represent you at the Meeting.

The record date for determining the Shareholders entitled to receive notice of and vote at the Meeting is the close of business on March 14, 2025 (the "**Record Date**"). Only Shareholders whose names have been entered in the register of Shareholders as of the close of business on the Record Date are entitled to receive notice of and to vote at the Meeting.

All non-registered Shareholders who plan to attend the Meeting must follow the instructions set out in the voting instruction form and in the Circular to ensure that such Shareholders' Shares will be voted at the Meeting. If you hold your Shares in a brokerage account, you are not a registered Shareholder.

---

| | |
|:---|:---|
|  | BY ORDER OF THE BOARD OF DIRECTORS |
| Toronto, Ontario | *(signed) "Lewis Black"* |
| March 21, 2025 | Lewis Black |
|  | Chairman of the Board of Directors, President and Chief Executive Officer |

---

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| **General Proxy Information** | **General Proxy Information** | **2** |
| A. | Solicitation of Proxies | 2 |
| B. | How to Vote Your Shares | 2 |
| C. | Appointment of Proxyholder | 4 |
| D. | Revocation of Proxies | 5 |
| E. | Notice to Shareholders in the United States | 5 |
| **Notice-and-Access** | **Notice-and-Access** | **6** |
| **Voting Shares and Principal Holders of Voting Shares** | **Voting Shares and Principal Holders of Voting Shares** | **7** |
| A. | Description of Share Capital | 7 |
| B. | Quorum | 7 |
| C. | Record Date | 7 |
| D. | Ownership of Shares | 7 |
| **Interest of Certain Persons or Companies in Matters to be Acted Upon** | **Interest of Certain Persons or Companies in Matters to be Acted Upon** | **7** |
| **Business to be Conducted at the Meeting** | **Business to be Conducted at the Meeting** | **8** |
| A. | Presentation of Financial Statements | 8 |
| B. | Election of Directors | 8 |
| C. | Appointment of Auditors | 13 |
| D. | Amendment of Share Purchase Warrants | 13 |
| E. | Approval of Share Consolidation | 15 |
| F. | Approval of Omnibus Equity Incentive Plan | 23 |
| G. | Approval of Unallocated Options under the Company's Stock Option Plan | 33 |
| H. | Other Business | 34 |
| **Securities Authorized for Issuance under Security-Based Compensation Arrangements** | **Securities Authorized for Issuance under Security-Based Compensation Arrangements** | **34** |
| **Executive Compensation** | **Executive Compensation** | **35** |
| A. | Compensation Discussion and Analysis | 35 |
| B. | Performance Graph | 44 |
| C. | Summary Compensation Table | 45 |
| D. | Incentive Plan Awards | 45 |
| E. | Employment, Consulting and Management Agreements | 47 |
| F. | Pension Plan Benefits | 48 |
| **Director Compensation** | **Director Compensation** | **48** |
| A. | Director Compensation Table | 48 |
| B. | Incentive Plan Awards | 48 |
| **Corporate Governance** | **Corporate Governance** | 50 |
| A. | Board of Directors | 51 |
| B. | Audit Committee | 53 |
| C. | Compensation and Corporate Governance Committee | 53 |
| D. | Ethical Business Conduct | 55 |
| E. | Other Committees | 55 |
| **General Matters** | **General Matters** | **56** |
| A. | Indebtedness of Directors and Officers | 56 |
| B. | Interest of Informed Persons in Material Transactions | 56 |
| C. | External Management Companies | 56 |
| D. | Receipt of Shareholder Proposals for the Next Annual Meeting | 56 |
| E. | Auditors and Transfer Agent | 56 |
| F. | Additional Information | 57 |
| G. | Approval | 58 |
| **Schedule "A" - Mandate of the Board of Directors** | **Schedule "A" - Mandate of the Board of Directors** | **A-1** |
| **Schedule "B"- Omnibus Equity Incentive Plan** | **Schedule "B"- Omnibus Equity Incentive Plan** | **B-1** |
| **Schedule "C" - Third Amended and Restated Incentive Stock Option Plan** | **Schedule "C" - Third Amended and Restated Incentive Stock Option Plan** | **C-1** |

---

**ALMONTY INDUSTRIES INC. MANAGEMENT INFORMATION CIRCULAR**

**FOR THE ANNUAL GENERAL AND SPECIAL MEETING OF SHAREHOLDERS**

**TO BE HELD ON APRIL 30, 2025**

This Management Information Circular (the "**Circular**") is furnished in connection with the solicitation of proxies by the management of Almonty Industries Inc. (the "**Company**"), a corporation governed by the *Canada Business Corporations Act* (the "**CBCA**"), for use at the Annual General and Special Meeting of the holders of common shares of the Company (the "**Shares**", and holders thereof, the "**Shareholders**") to be held in the North Boardroom at the offices of Suite 300 – 1055 W. Hastings Street, Vancouver, British Columbia on Wednesday, April 30, 2025, at **10:00 a.m.** (Vancouver time) (together with any adjournment or postponement thereof, the "**Meeting**") for the purposes set out in the accompanying Notice of Annual General and Special Meeting of Shareholders (the "**Notice of Meeting**").

Unless otherwise indicated, information contained in this Circular is given as at March 14, 2025, and all dollar amounts are stated in Canadian dollars.

**<u>GENERAL PROXY INFORMATION</u>**

**A.** **SOLICITATION OF PROXIES** 

**The accompanying proxy is being solicited by or on behalf of the management of the Company and the cost of such solicitation will be borne by the Company.** It is expected that the solicitation of proxies will be primarily by mail, though proxies may also be solicited, without special compensation, in person or by telephone, fax, email, or other means of communication by directors, officers or regular employees of the Company. The Company may pay investment dealers or other persons holding Shares in their own names or in the names of nominees (collectively, "**intermediaries**") for their reasonable expenses incurred in sending this Circular, the accompanying Notice of Meeting, and a form of proxy or voting instruction form, to non-registered, beneficial owners of Shares.

A notice regarding the use of Notice-and-Access (as hereinafter defined) and a form of proxy or voting instruction form ("**VIF**"), as applicable, are being sent to both Registered Shareholders (as hereinafter defined) and Beneficial Shareholders (as hereinafter defined). If you are a Beneficial Shareholder and the Company or its agent has sent these materials directly to you, your name and address and information about your holdings of Shares have been obtained in accordance with applicable securities regulatory requirements from the intermediary who holds your Shares on your behalf.

**B.** **HOW TO VOTE YOUR SHARES** 

**Registered Shareholders**

 ****

A registered Shareholder ("**Registered Shareholder**") is a Shareholder whose share certificate bears the name of that Shareholder. Registered Shareholders are entitled to vote their Shares in person at the Meeting or by proxy, and such Shareholders may be able to vote their proxies over the internet, by telephone or by mail in accordance with the instructions set out in the accompanying form of proxy.

If you are a Registered Shareholder and wish to vote in person at the Meeting, you should not complete or return the accompanying form of proxy, as your vote will be taken and counted at the Meeting. Shareholders wishing to vote in person must register their attendance with the scrutineer upon arrival at the Meeting.

If you are a Registered Shareholder and do not wish to attend the Meeting or to vote in person, you may vote by proxy by properly completing, signing and depositing the accompanying form of proxy with the Company's transfer agent, Computershare Investor Services Inc. (the "**Transfer Agent**"). Registered Shareholders who elect to submit a proxy may do so online at <u>www.investorvote.com</u>, by telephone at 1- 866-732-VOTE (8683) (for Shareholders within North America) or 1-312-588-4290 (for Shareholders outside North America), or by mail to 100 University Avenue, 8th Floor, Toronto, Ontario, M5J 2Y1, in all cases in accordance with the instructions provided by the Transfer Agent in the accompanying form of proxy and ensuring that the proxy is received not later than 48 hours prior to the commencement of the Meeting, excluding Saturdays, Sundays and holidays.

 **

**Beneficial Shareholders**

 **

If your Shares are registered in the name of an intermediary, rather than in your own name, you are a beneficial Shareholder (a "**Beneficial Shareholder**"). Beneficial Shareholders should note that the only proxies that can be recognized and acted upon at the Meeting are those deposited by Registered Shareholders (those whose names appear on the records of the Company as the registered holders of Shares) or as set out in the following disclosure.

If Shares are listed in an account statement provided to a Shareholder by a broker, then in almost all cases those Shares will not be registered in the Shareholder's name on the records of the Company. Such Shares will more likely be registered under the names of the Shareholder's broker or an agent of that broker. In Canada, the vast majority of such Shares are registered under the name of CDS & Co. (the registration name for The Canadian Depository for Securities Limited, which acts as nominee for many Canadian brokerage firms), and in the United States under the name of Cede & Co. as nominee for The Depository Trust Company (which acts as depositary for many United States brokerage firms and custodian banks).

Intermediaries are required to seek voting instructions from Beneficial Shareholders in advance of Shareholders' meetings. Every intermediary has its own mailing procedures and provides its own return instructions to clients.

There are two kinds of Beneficial Shareholders: those who object to their name being made known to the issuers of securities which they own (referred to as "**OBOs**" for objecting beneficial owners) and those who do not object to the issuers of the securities they own knowing who they are (referred to as "**NOBOs**" for non-objecting beneficial owners).

<u>Non-Objecting Beneficial Owners</u>

The Company is taking advantage of those provisions of National Instrument 54-101 – *Communication with Beneficial Owners of Securities of a Reporting Issuer* of the Canadian Securities Administrators ("**NI 54- 101**"), which permit the Company to deliver proxy-related materials directly to its NOBOs. As a result, NOBOs can expect to receive a scannable VIF. These VIFs are to be completed and returned to the Transfer Agent online at <u>www.investorvote.com</u>, by telephone at 1-866-734-VOTE (8683) (for Shareholders within North America) or 1-312-588-4291 (for Shareholders outside North America), or by mail to 100 University Avenue, 8th Floor, Toronto, Ontario, M5J 2Y1, in all cases in accordance with the instructions provided in the VIF. The Transfer Agent will tabulate the results of the VIFs received from NOBOs and will provide appropriate instructions at the Meeting with respect to the Shares represented by the VIFs it receives.

By choosing to send these materials to you directly, the Company (and not the intermediary holding your Shares on your behalf) has assumed responsibility for (i) delivering these materials to you, and (ii) executing your proper voting instructions. Please return your VIF as specified in the request for voting instructions that you receive.

NOBOs who wish to attend and vote in person at the Meeting must insert their own name in the space provided on the VIF to appoint the NOBO (or the name of another person the NOBO wishes to attend the Meeting and vote on the NOBO's behalf) as proxyholder and otherwise follow the instructions on the VIF. Beneficial Shareholders who appoint themselves as proxyholders should present themselves at the Meeting to a representative of the Transfer Agent. Beneficial Shareholders wishing to attend and vote in person at the Meeting should not otherwise complete the VIF.

<u>Objecting Beneficial Owners</u>

Management of the Company does not intend to pay for intermediaries to deliver proxy-related materials to OBOs under NI 54-101. OBOs will not receive the proxy-related materials in respect of the Meeting unless the intermediary holding Shares on behalf of the OBO assumes the cost of delivery.

Beneficial Shareholders who are OBOs and receive proxy-related materials in respect of the Meeting from their intermediaries should carefully follow the instructions of their broker or intermediary in order to ensure that their Shares are voted at the Meeting.

The form of proxy that will be supplied by your broker will be similar to the proxy provided to Registered Shareholders by the Company. However, its purpose is limited to instructing the intermediary how to vote your Shares on your behalf. Most brokers delegate responsibility for obtaining instructions from clients to Broadridge Financial Solutions, Inc. ("**Broadridge**"). Broadridge will mail a VIF in lieu of a proxy provided by the Company. The VIF will name the same persons as the Company's proxy to represent your Shares at the Meeting. You have the right to appoint a person (who need not be a Beneficial Shareholder) other than any of the persons designated in the VIF to represent your Shares at the Meeting and that person may be you. To exercise this right, you should insert the name of your desired representative (which may be yourself) in the blank space provided in the VIF. The completed VIF must then be returned to Broadridge in accordance with Broadridge's instructions. Broadridge then tabulates the results of all instructions received and provides appropriate instructions respecting the voting of Shares to be represented at the Meeting and the appointment of any Shareholder's representative. **If you receive a VIF from Broadridge, the VIF must be returned to Broadridge, in accordance with its instructions, well in advance of the Meeting in order to have your Shares voted at the Meeting, or to have an alternative representative duly appointed to attend and to vote your Shares at the Meeting**.

**Voting by Proxyholder**

 ****

If voting instructions are given on your form of proxy or request for voting instructions, then your proxyholder must vote, or withhold from voting, your Shares in accordance with your instructions. If no voting instructions are given, then your proxyholder may vote your Shares or withhold from voting as he, she or it sees fit. **If you appoint the proxyholders named on the accompanying form of proxy, and do not provide instructions as to how they should vote your Shares, your Shares will be voted "FOR" each of the matters set out in the form of proxy**.

As of the date of this Circular, none of the directors or officers of the Company are aware of any amendments or variations to the matters set out in the Notice of Meeting, nor of any other matter to be presented at the Meeting. However, if any amendment, variation or other business is properly brought before the Meeting, the accompanying form of proxy confers discretion on the persons named thereon to vote on any amendment or variation of the matters set out in the Notice of Meeting or any such other business in accordance with their best judgment.

**C.** **APPOINTMENT OF PROXYHOLDER** 

The persons named in the form of proxy accompanying this Circular have been selected by the board of directors of the Company (the "**Board**") and have indicated their willingness to represent as proxyholders the Shareholders who appoint them. **A Shareholder has the right to appoint as his, her or its proxyholder a person or company (who need not be a Shareholder) other than the persons designated in the accompanying form of proxy to attend and act on that Shareholder's behalf at the Meeting**. As a Shareholder, you may exercise this right by inserting the name of such person or company in the blank space provided in the form of proxy and striking out the other names or by properly completing and signing another proper form of proxy and, in either case, depositing such form of proxy with the Transfer Agent at the location and within the time limits set out above.

If you appoint some other person to represent you, it is your responsibility as a Shareholder to inform that other person or company that he, she or it has been so appointed and to ensure that your proxy has been signed by you or your attorney authorized in writing (or, if the Shareholder is a corporation, under its corporate seal and signed by a director, officer or attorney thereof, duly authorized).

**D.** **REVOCATION OF PROXIES** 

If you are a Registered Shareholder and you have submitted a proxy and later wish to revoke it, you can do so by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) completing
 and signing a form of proxy bearing a later date and depositing it with the Transfer Agent
 at the location and within the time limits set out above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) depositing
 an instrument in writing signed by you or your attorney authorized in writing (or, for Shareholders
 that are corporations, under such Shareholder's corporate seal and signed by a director,
 officer or attorney thereof, duly authorized), with either: (i) the Transfer Agent, at the
 address noted above, or at the registered office of the Company at any time up to and including
 the last business day preceding the day of the Meeting at which the proxy is to be used;
 or (ii) the Chairperson of the Meeting prior to the commencement of the Meeting on the day
 of the Meeting, or any adjournment or postponement thereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) following
 any other manner permitted by law.

Any Registered Shareholder attending the Meeting has the right to vote in person and, if you, as a Registered Shareholder, elect to do so, your proxy will be nullified with respect to any matters upon which you vote, and in respect of any subsequent matters to be voted upon at the Meeting.

Beneficial Shareholders should note that **only Registered Shareholders have the right to revoke a proxy. Beneficial Shareholders who wish to change their vote must make appropriate arrangements with their respective intermediaries**. Beneficial Shareholders should also be aware that intermediaries may set deadlines earlier than those set out in this Circular or otherwise for the receipt of requests for voting instructions or proxies from Beneficial Shareholders, and are not required to act on any revocation that is not received by the intermediary prior to the deadlines set by that intermediary. As such, Beneficial Shareholders who wish to revoke their VIF or proxy and to vote should contact their intermediary as soon as possible, and in any event well in advance of the Meeting.

**E.** **NOTICE TO SHAREHOLDERS IN THE UNITED STATES** 

This solicitation of proxies involves securities of an issuer located in Canada and is being effected in accordance with the corporate laws of Canada and the securities laws of the provinces of Canada. The proxy solicitation rules under the United States Securities Exchange Act of 1934, as amended, are not applicable to the Company or this solicitation, and this solicitation has been prepared in accordance with the disclosure requirements of the securities laws of the provinces of Canada. Shareholders should be aware that disclosure requirements under the securities laws of the provinces of Canada differ from the disclosure requirements under United States securities laws.

The enforcement by Shareholders of civil liabilities under United States federal securities laws may be affected adversely by the fact that the Company is governed by the CBCA, certain of its directors and officers are residents of Canada and countries other than the United States, and all of the assets of the Company and a substantial portion of the assets of such persons are located outside the United States. Shareholders may not be able to sue a foreign company or its officers or directors in a foreign court for violations of United States federal securities laws. It may be difficult to compel a foreign company and its officers and directors to subject themselves to a judgment by a United States court.

**<u>NOTICE-AND-ACCESS</u>**

The Company is using the notice-and-access system under NI 54-101 and National Instrument 51-102 – *Continuous Disclosure Obligations* (collectively, "**Notice-and-Access**") to distribute its proxy-related materials to Shareholders.

Under Notice-and-Access, rather than the Company mailing paper copies of the proxy-related materials to Shareholders, the materials can be accessed online under the Company's profile on SEDAR+ at <u>www.sedarplus.ca</u> or on the Company's website at <u>https://almonty.com/investors/agm</u>. The Company has adopted this alternative means of delivery for its proxy-related materials in order to reduce paper use and printing and mailing costs.

Shareholders will receive a Notice Package by prepaid mail, which will contain, among other things, information on Notice-and-Access and how Shareholders may access an electronic copy of the proxy- related materials, and how they may request a paper copy of the Circular, if they so choose, in advance of the Meeting and for a full year following the Meeting.

Shareholders will not receive a paper copy of the Circular unless they contact the Company by email at <u>mcgrath@iocorporate.com</u>. For Shareholders who wish to receive a paper copy of the Circular in advance of the voting deadline for the Meeting, requests must be received no later than April 25, 2025.

Shareholders with questions about Notice-and-Access may contact Computershare at 1-866-962-0492.

**<u>VOTING SHARES AND PRINCIPAL HOLDERS OF VOTING SHARES</u>**

**A.** **DESCRIPTION OF SHARE CAPITAL** 

The Company is authorized to issue an unlimited number of Shares. As of the close of business on March 14, 2025, there were 280,674,131 Shares issued and outstanding. Each Share carries the right to one vote. The Shares are the only class of securities entitled to vote at the Meeting. No group of Shareholders has the right to elect a specified number of directors, nor are there cumulative or similar voting rights attached to the Shares. As of the date hereof, the Shares are listed for trading on the Toronto Stock Exchange (the "**TSX**") under the symbol "AII" and the Australian Securities Exchange ("**ASX**") (in the form of CHESS Depositary Interests ("**CDIs**")) under the symbol "AII".

**B.** **QUORUM** 

The quorum necessary for the Meeting is holders of 25% of the Shares entitled to vote at the Meeting being present in person or represented by proxy, provided that a quorum shall not be less than two persons. A quorum need not be present throughout the Meeting provided that a quorum is present at the opening of the Meeting.

**C.** **RECORD DATE** 

The Board has fixed March 14, 2025 as the record date (the "**Record Date**") for determining those Shareholders entitled to receive notice of, and vote at, the Meeting. Only Shareholders of record at the close of business on the Record Date who either attend the Meeting personally or complete, sign and deliver a form of proxy in the manner and subject to the provisions described above will be entitled to vote or to have their Shares voted at the Meeting.

**D.** **OWNERSHIP OF SHARES** 

To the knowledge of the directors and officers of the Company, the only persons or companies that beneficially owned, directly or indirectly, or exercised control or direction over, securities carrying more than 10% of the voting rights attached to any class of voting securities of the Company as at the Record Date are:

---

| | | | |
|:---|:---|:---|:---|
| **Name of Shareholder** | **Type of Ownership** | **Number of Shares Controlled** | **Percentage of Issued Shares <sup>(3)</sup>** |
| Global Tungsten & Powders Corp. (1) | Direct | 38149556 | 13.59% |
| Deutsche Rohstoff AG (2) | Direct | 30886426 | 11.00% |

---

Notes:

(1) Global
 Tungsten & Powders Corp. develops, manufactures and markets refractory metal powders
 and specialty products such as semi-finished parts for the aerospace and defense industry.

(2) Deutsche
 Rohstoff AG is a public company listed on the Frankfurt Stock Exchange which identifies,
 develops and divests attractive resource projects in North America, Australia and Europe.
 Dr. Thomas Gutschlag, a director of the Company, is the former Chief Executive Officer of
 Deutsche Rohstoff AG.

(3) Based
 on 280,674,131 Shares outstanding as at the Record Date.

**<u>INTEREST OF CERTAIN PERSONS OR COMPANIES IN MATTERS TO BE ACTED UPON</u>**

Except as otherwise disclosed herein under the heading "Election of Directors", "Amendment of Share Purchase Warrants", "Approval of Omnibus Equity Incentive Plan" or "Approval of Unallocated Options under the Company's Stock Option Plan", no director or officer of the Company, nor any person who has held such a position since the beginning of the most recently completed fiscal year of the Company, nor any proposed nominee for election as a director of the Company, nor any associate or affiliate of the foregoing persons, has any substantial or material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, in any matter to be acted upon.

**<u>BUSINESS TO BE CONDUCTED AT THE MEETING</u>**

**A.** **PRESENTATION OF FINANCIAL STATEMENTS** 

The audited annual consolidated financial statements of the Company for the fiscal year ended December 31, 2024, together with the auditor's report thereon, have been approved by the Board. A copy of the financial statements is available for review on the Company's profile on SEDAR+ at www.sedarplus.ca. No vote of the Shareholders is required with respect to this item of business.

**B.** **ELECTION OF DIRECTORS** 

The term of office for each of the present directors of the Company expires at the Meeting. It is proposed that the persons named below will be nominated at the Meeting. Each director elected will hold office until the next annual meeting of Shareholders or until his successor is duly elected or appointed pursuant to the Articles of the Company, unless his office is earlier vacated in accordance with the Articles of the Company and the provisions of the CBCA.

**Unless authority to do so is withheld, proxies given pursuant to this solicitation by the management of the Company will be voted "FOR" the election of each of the nominees named below (the "Management Nominees").** If any of the Management Nominees should, for any reason, become unable to serve as a director of the Company prior to the Meeting, the persons named in the enclosed form of proxy reserve the right to nominate and vote for another nominee in their sole discretion.

The following disclosure sets out: (i) the names of the Management Nominees; (ii) their major offices and positions with the Company (if any); (iii) their place of residence; (iv) the committees of the Board on which each currently sits (if any); (v) the period of time during which each has been a director of the Company;

(vi) their principal occupation, business or employment for the preceding five years; and (vii) the number of Shares beneficially owned, or controlled or directed, directly or indirectly, by each as at the Record Date.

---

| | |
|:---|:---|
| **Name, residence, office(s) held and date first became a director** | **Principal occupation, business or employment** |
| **Lewis Black**<br> New York, USA<br>Chairman, President and Chief Executive Officer | Mr. Black is currently the President and Chief Executive Officer of the Company. He is also currently a partner of Almonty Partners LLC, a privately held company specializing in tungsten<br> mining investments.<br>25944670 <sup>(2)(3)</sup> |
| Director since September 23, 2011 | Mr. Black previously served as Chairman and Chief Executive Officer of Primary Metals Inc., a tungsten mining company formerly listed on the TSX Venture Exchange, from 2005 to 2007. Prior to that he was head of sales and marketing for SC Mining Tungsten Thailand. Mr. Black holds a B.A. (Honours) from Manchester University and is a former Vice President of the International Tungsten Industry Association. |

---

---

| | | |
|:---|:---|:---|
| **Name, residence, office(s) held and date first became a director** | **Principal occupation, business or employment** | **Shares beneficially owned, or controlled or directed, directly or indirectly<sup>(1)</sup>** |
| **Daniel D'Amato**<br> Paris, France<br> Director | Mr. D'Amato is currently a Partner of Almonty Partners LLC, a privately held company specializing in tungsten mining investments. He has held this position since 2005. | 17301275 <sup>(2)(4)</sup> |
| Compensation and Corporate Governance Committee<br>Director since September 23, 2011 | Mr. D'Amato previously served on the board of directors of Primary Metals Inc., a tungsten mining company formerly listed on the TSX Venture Exchange, from 2005 to 2007. He began his career on Wall Street with Bear Stearns where he worked for nearly a decade and became Managing Director. Mr. D'Amato holds a B.Sc. from Siena College and holds several securities and insurance licenses. |  |
| **Dr. Thomas Gutschlag**<br> Mannheim, Germany Director<br>Audit Committee<br>Compensation and Corporate Governance Committee<br>Director since September 15, 2015 | Dr. Gutschlag is a former Chairman and Chief Executive Officer of Deutsche Rohstoff AG ("DRAG"), a public company listed on the Frankfurt Stock Exchange which identifies, develops and divests attractive resource projects in North America, Australia and Europe, with a focus is on the development of oil and gas opportunities within the United States, as well as metals such as gold, copper, rare earth elements, tungsten and tin. Dr. Gutschlag co-founded DRAG in 2006 and was its Chief Financial Officer until 2015 when he became its Chief Executive Officer until June 2022, when he retired. | 1007500 <sup>(5)</sup> |
|  | Dr. Gutschlag is a qualified economist with a degree in economics from the University of Heidelberg and a doctorate from the University of Mannheim. |  |
| **Mark Trachuk**<br> Toronto, Ontario, Canada<br>Lead Director<br>Audit Committee (Chair)<br>Compensation and Corporate Governance Committee (Chair)<br>Director since September 23, 2011 | Mr. Trachuk currently serves as General Counsel at WildBrain Ltd. (TSX:WILD) a global media, animation studio, production, and brand licensing company. Prior to joining WildBrain, Mr. Trachuk was Counsel at Norton Rose Fulbright, a leading global law firm, where he practiced corporate and securities law with an emphasis on mergers, acquisitions and strategic alliances. Mr. Trachuk is a former General Counsel and director of Entertainment One, Ltd. (LSE:ETO), a global entertainment studio that was a constituent member of the FTSE 250. Prior to joining Entertainment One, he was a Senior Partner in the Business Law Group at Osler, Hoskin & Harcourt LLP, a Canadian-based law firm, where he practised from 1989 to 2018. Mr. Trachuk previously served on the board of directors of Playmaker Capital, Inc. (TSXV: PMKR), a digital sports media company, where he served as Chair of the Board and Thunderbird Entertainment Group Inc. (TSXV: TBRD), a film and television production and distribution company, where he served as Lead Director and Chair of the Strategic Advisory Committee. Mr. Trachuk holds a B.A. in Economics from Carleton University, a J.D. from the University of Ottawa and an LL.M. in Corporate Law from the London School of Economics. Mr. Trachuk also received the ICD.D designation from the Institute of Corporate Directors through the University of Toronto – Rotman School of Management. Mr. Trachuk is called to the bar in the provinces of Ontario and British Columbia and is a qualified solicitor in England and Wales.<br>| 1400000 |

---

---

| | | |
|:---|:---|:---|
| **Name, residence, office(s) held and date first became a director** | **Principal occupation, business or employment** | **Shares beneficially owned, or controlled or directed, directly or indirectly<sup>(1)</sup>** |
| **Andrew Frazer**<br> Dalkeith, WA, Australia Director<br> Director since May 28, 2021 | Mr. Frazer is currently a representative of RM Corporate Finance Pty Ltd. Mr. Frazer previously held positions as a consultant at Azure Capital, a stockbroker with Hartley Poynton, Patersons Securities and Morgan Stanley. Mr. Frazer graduated from the University of Western Australia with a Bachelor of Commerce – Honours, Bachelor of Jurisprudence and a Bachelor of Laws. Mr. Frazer also obtained his CFA Charter, along with a Diploma from the Securities Institute of the Australian Securities Exchange. | 106000 |
| **David Hanick**<br> Toronto, Ontario, Canada Director<br> Audit Committee<br> Director since June 26, 2023 | Mr. Hanick currently serves as the Chief Operating Officer of Spotlight Development Inc., a leading Canadian multi-residential affordable housing and traditional condominiums with over CDN$4 Billion in assets and 10,000 plus suites in development across Canada. Previously, Mr. Hanick served as the Chief Legal Officer and is a member of the Investment Committee and Chair of Impact Day at Starlight Investments Inc., a leading global real estate investment and asset management firm with over 65,000 multi-residential suites and over 7 million square feet of commercial property space totaling more than CDN$30B in AUM. Prior to joining Starlight Investments, Mr. Hanick was a corporate partner and co-head of the Mining and Natural Resources Group in the Toronto office of Osler, Hoskin & Harcourt LLP where he focused on public and private mergers and acquisitions as well as capital markets transactions acting for issuers, underwriters and private equity firms. He has more than 20 years of legal, capital markets, mergers and acquisitions and corporate governance expertise, and has participated in transactions totaling more than $50B. Mr. Hanick was awarded the 2020 and 2021 Law Department Leader of the Year Excellence Award by Canada Law Awards and was a finalist for the 2021 Canadian General Counsel Awards in the Business Achievement category. Mr. Hanick is called to the bar in the province of Ontario and holds a joint Master of Business Administration from the Schulich School of Business and Bachelor of Laws from Osgoode Hall Law School. | Nil |

---

---

| | |
|:---|:---|
| **Name, residence, office(s) held and date first became a director** | **Principal occupation, business or employment** |
| **Gustave F. Perna**<br> Alabama, United States<br> Director<br>Director since March 20, 2025 | General Perna retired from the United States Army in July 2021 as the Chief Operating Officer of Operation Warp Speed, the U.S. national initiative focused on the rapid research, development, production and distribution of vaccines and therapeutics to combat COVID-19. From 2016 to 2020, General Perna served as Commander of the U.S. Army Materiel (AMC) Command, comprising over 190,000 Soldiers, civilians, and contractors. General Perna has held several high-ranking positions during his military career, including serving as Deputy Chief of Staff, G-4 (SVP for Logistics) for the Department of the Army (2014– 2016), Commanding General (CEO) of the Joint Munitions Command (2010–2012), and Director, J- 4, United States Forces – Iraq (2009–2010), overseeing multinational logistics during Operation Iraqi Freedom/New Dawn. He also led as Commanding General (CEO) of the Defense Supply Center – Philadelphia within the Defense Logistics Agency (2008–2009). General Perna holds an Associate Degree in Business Administration from Valley Forge Military Academy and a Bachelor Degree in Business Management from the University of Maryland and was awarded a Master's Degree in Logistics Management from the Florida Institute of Technology. Nil |

---

Notes:

(1) The
 number of shares beneficially owned, or controlled or directed, directly or indirectly, by
 each Management Nominee is based on information furnished by the nominees and from insider
 reports available under the Company's profile on SEDI at <u>www.sedi.ca</u>.

(2) Almonty
 Partners LLC, a privately-held company specializing in tungsten mining investments, holds
 13,893,920 Shares or approximately 4.95% of the issued and outstanding Shares as of the Record
 Date. Lewis Black and Daniel D'Amato are each partners of Almonty Partners LLC.

(3) Lewis
 Black owns 12,050,750 Shares directly or approximately 4.29 **%** of the issued and outstanding
 Shares as of the Record Date.

(4) Daniel
 D'Amato owns 3,407,355 Shares directly or approximately 1.21% of the issued and outstanding
 Shares as of the Record Date.

(5) Dr.
 Gutschlag owns 965,000 Shares directly and 42,500 indirectly through Kooiker Investment GmbH,
 or collectively, approximately 0.36% of the issued and outstanding Shares as of the Record
 Date.

Each of the Management Nominees are, in the opinion of management, qualified to direct the activities of the Company until the next annual meeting of Shareholders and all nominees have indicated their willingness to stand for election.

**Majority Voting for Election of Directors**

 ****

The election of directors at the Meeting will be governed by the majority voting requirements under the CBCA, which require that, in an uncontested election of directors, such as the one planned for the Meeting, each nominee will be elected as a director of the Company only if the number of votes cast "for" the election of the nominee represents a majority of the total votes cast "for" and "against" them. However, the CBCA provides that an incumbent director that is not elected by a majority of votes cast may continue in office until the earlier of (i) the 90th day after the shareholder meeting; and (ii) the day on which their successor is appointed or elected.

Given the amendment of the CBCA to include such majority voting requirements, the Board unanimously resolved to repeal the Company's former majority voting policy, and accordingly such policy will not apply in respect of the Meeting. If and when the Company completes the previously announced re-domestication to the State of Delaware (the "**Domestication**") and is no longer subject to the majority voting requirements under the CBCA, the Company intends to re-adopt a majority voting policy if necessary to comply with the requirements of the TSX.

**Orders, Bankruptcies, Penalties or Sanctions**

 ****

To the Company's knowledge, none of the Management Nominees:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) is,
 as at the date of this Circular, nor has been within ten (10) years before the date of this
 Circular, a director, chief executive officer or chief financial officer of any company (including
 the Company) that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) was
 subject to a cease trade order, an order similar to a cease trade order, or an order that
 denied the relevant company access to any exemption under securities legislation, that was
 in effect for a period of more than 30 consecutive days (an "**Order**") that
 was issued while the proposed director was acting in the capacity as director, chief executive
 officer or chief financial officer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) was
 subject to an Order that was issued after the proposed director ceased to be a director,
 chief executive officer or chief financial officer and which resulted from an event that
 occurred while that person was acting in the capacity as director, chief executive officer
 or chief financial officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) is,
 as at the date of this Circular, nor has been within ten (10) years before the date of this
 Circular, a director or executive officer of any company (including the Company) that, while
 that person was acting in that capacity, or within a year of that person ceasing to act in
 that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy
 or insolvency or was subject to or instituted any proceedings, arrangement or compromise
 with creditors or had a receiver, receiver manager or trustee appointed to hold its assets;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) has,
 within ten years before the date of this Circular, become bankrupt, made a proposal under
 any legislation relating to bankruptcy or insolvency, or become subject to or instituted
 any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager
 or trustee appointed to hold any of their respective assets.

To the Company's knowledge, none of the Management Nominees has:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) been
 subject to any penalties or sanctions imposed by a court relating to securities legislation
 or by a securities regulatory authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) entered
 into a settlement agreement with a securities regulatory authority; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) been
 subject to any other penalties or sanctions imposed by a court or regulatory body that would
 likely be considered important to a reasonable securityholder in deciding whether to vote
 for such proposed director.

**C.** **APPOINTMENT OF AUDITORS** 

Shareholders are being asked to confirm the appointment of Zeifmans LLP, Chartered Professional Accountants and to re-appoint Zeifmans LLP, Chartered Professional Accountants, as auditor of the Company to hold office until the next annual meeting of Shareholders. **Unless authority to do so is withheld, proxies given pursuant to this solicitation by the management of the Company will be voted "FOR" the appointment of Zeifmans LLP as auditor of the Company to hold office until the close of the next annual meeting of Shareholders, at a remuneration to be fixed by the Board**.

**D.** **AMENDMENT OF SHARE PURCHASE WARRANTS** 

**Amendment of 700,000 Insider Warrants**

 ****

During December 2019 through February 2020, the Company conducted a private placement whereby it closed, in three tranches, 2,047,244 units which consisted of 2,047,244 Shares and 2,047,244 share purchase warrants, exercisable at a price of $0.75 per Share with a three-year term. Of the 2,047,244 warrants issued, 1,020,000 expired, 327,244 were exercised, and 700,000 remain outstanding (the "**Insider Warrants**"), which were due to expire on February 19, 2023. During 2023, the Company received TSX approval and Shareholder approval at its annual general and special meeting held on June 26, 2023, to extend the expiry date of the Insider Warrants to February 19, 2024. Additionally, during 2024, the Company received TSX approval and Shareholder approval at its annual general and special meeting held on June 28, 2024, to extend the expiry date of the Insider Warrants to February 19, 2025. On February 7, 2025, prior to the expiry date of the Insider Warrants, the Board, with Lewis Black and Dr. Thomas Gutschlag (the "**Insider Warrantholders**") abstaining from voting, approved the extension of the Insider Warrants and the Company has entered into agreements with the Insider Warrantholders to extend the expiry date of the Insider Warrants to February 19, 2026. Other than the extension of the expiry date for the Insider Warrants, all other terms and conditions of the Insider Warrants remain unchanged.

The 700,000 Insider Warrants are held by insiders of the Company as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name** | **Title** | **Number of Insider Warrants** | **Number of Shares Held, Controlled or Directed and Percentage** | &nbsp;&nbsp;***Number of Shares Held, Controlled or Directed and Percentage**<br> ***Assuming exercise of the Insider Warrants**** | &nbsp;&nbsp;***Number of Shares Held, Controlled or Directed and Percentage**<br> ***Assuming exercise of all securities convertible into Shares**** |
| Lewis Black | CEO, President | 550000 | 25944670 | 26494670 | 40255781 |
|  | and Chair |  | 9.24% | 9.42% | 13.65% |
| Dr. Thomas | Director | 150000 | 1007500 | 1157500 | 2557500 |
| Gutschlag |  |  | 0.36% | 0.41% | 0.91% |

---

As indicated above and because the Insider Warrants are instruments that were already outstanding, the extension of the expiry dates of the Insider Warrants does not have any effect on control of the Company.

As of the Record Date, the 700,000 Shares underlying the Insider Warrants, if issued, would represent 0.25% of the issued and outstanding Shares of the Company. The Insider Warrants are exercisable at a price of $0.75, representing a 49.6% discount to the volume weighted average trading price of the Shares on the TSX over the five trading days immediately preceding the Board's approval of the extension of the Insider Warrants.

Since the outstanding 700,000 Insider Warrants are held by insiders of the Company and are in-the-money, the extension of the expiry date of the Insider Warrants is subject to approval of the TSX and, as required by Section 608(a) of the TSX Company Manual, the Company's Shareholders on a disinterested basis. The Insider Warrants may not be exercised by the Insider Warrantholders until such approvals are obtained. If Shareholders do not approve the extension of the Insider Warrants, the Insider Warrants will terminate.

The amendment of the Insider Warrants may be considered a related party transaction within the meaning of Multilateral Instrument 61-101 – *Protection of Minority Security Holders in Special Transactions* ("**MI 61- 101**"). As such, the Company would rely on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(1)(a) of MI 61-101 on the basis that the value of the Warrants held by insiders being amended will not exceed 25% of the fair market value of the Company's market capitalization.

**Resolution for the Amendment of 700,000 Insider Warrants**

 ****

Shareholders (excluding the Insider Warrantholders) will be asked to consider, and, if thought advisable, to pass, with or without variation, a resolution ratifying the entering into of agreements that amended the expiry date of the Insider Warrants from February 19, 2025 to February 19, 2026. The full text of the resolution is as follows:

"**BE IT RESOLVED**, as an ordinary resolution of the disinterested holders of common shares of Almonty Industries Inc. (the "**Company**"), that:

1. The
 entering into by the Company of amending agreements with insiders of the Company to extend
 the expiry date of 700,000 common share purchase warrants issued to such insiders to February
 19, 2026, is hereby ratified, confirmed and consented to; and

2. Any
 officer or director of the Company is hereby authorized and directed for on behalf of the
 Company to execute and deliver all such documents and to do all such other acts and things
 as he or she may determine to be necessary or advisable to give effect to this resolution,
 the execution of any such document or the doing of any such other act or thing being conclusive
 evidence of such determination."

To be effective, the resolution must be approved by a majority of the Shareholders of the Company. Pursuant to the requirements of the TSX, the Insider Warrantholders will be excluded from voting on the resolution. Therefore, in the aggregate, 26,952,170 Shares represented at the Meeting by the Insider Warrantholders noted above, being 9.6% of the issued and outstanding Shares of the Company as of the Record Date, will be excluded on the vote regarding the extension of the 700,000 Insider Warrants.

The Board has determined that the extension of the expiry date of the Insider Warrants is in the best interests of the Company as the potential for further equity ownership by insiders is expected to have the effect of further aligning the interests of Shareholders and such insiders. **Having determined that the extension of the expiry date of the Insider Warrants is in the best interests of the Company, the Board recommends that Shareholders vote in favour of the foregoing resolution.**

**Shares represented by proxies in favour of the Management Nominees will be voted <u>FOR</u> approving the resolution to ratify the entering into of amending agreements to extend the expiry date of the Insider Warrants to February 19, 2026, unless a Shareholder has specified in their proxy that their Shares are to be voted against such resolution.**

**E.** **APPROVAL OF SHARE CONSOLIDATION** 

At the Meeting, Shareholders will be asked to consider and, if thought fit, pass a special resolution (the "**Share Consolidation Resolution**") authorizing a consolidation (or reverse split) of the Company's issued and unissued Shares into a lesser number of Shares (the "**Share Consolidation**"). The Share Consolidation Resolution will authorize the Board, in its discretion, to:

● select a Share Consolidation ratio of up to five (5) pre-consolidation Shares for one (1) post- consolidation Share; and

● direct the Company to file articles of amendment (the "**Articles of Amendment**") to amend the Company's articles to give effect to the Share Consolidation at such time as the Board deems appropriate, but in any event not later than April 30, 2026, subject to the Board's authority to decide not to proceed with the Share Consolidation.

The Board believes that it is in the best interests of the Company to authorize the Board to determine the timing and consolidation ratio for the Share Consolidation, in order to provide flexibility to implement the Share Consolidation in a manner, and at the time, that will maximize the anticipated benefits to the Company and Shareholders.

**Background to and Reasons for the Share Consolidation**

 ****

The Board believes that the potential benefits of the Share Consolidation include:

●  ***Potential U.S. Listing.*** The Company may consider the possibility of a future listing on a major U.S. stock exchange. The higher anticipated price of the post-consolidation Shares may help make the Company eligible for such a listing.

●  ***Increased Investor Interest.*** The Share Consolidation may have the effect of raising, on a proportionate basis, the price of the Shares, which could appeal to certain investors that find shares valued above certain prices to be more attractive from an investment perspective.

●  ***Reduced Volatility.*** The higher anticipated price of the post-consolidation Shares may result in less volatility as a result of small changes in the share price of the Shares. For example, a nominal price movement will result in a less significant change (in percentage terms) in the market capitalization of the Company.

The Share Consolidation is subject to certain conditions, including the approval of the Shareholders and approval by the TSX and ASX. If the requisite approvals are obtained and the Board elects to proceed with the Share Consolidation, the Share Consolidation will take place at a time to be determined by the Board, subject to the CBCA and applicable stock exchange requirements. No further action on the part of Shareholders would be required in order for the Board to implement the Share Consolidation. If the Board determines to implement the Share Consolidation, Shareholders will be notified of the timetable for the Share Consolidation and registered Shareholders will receive a letter of transmittal containing instructions for the exchange of certificates or other evidence representing their Shares. The Share Consolidation Resolution will authorize the Board to elect not to proceed with, and abandon, the Share Consolidation at any time if it determines, in its sole discretion, to do so.

**Share Consolidation Resolution**

 ****

The text of the Share Consolidation Resolution that the Company intends to place before the Meeting, with or without modification, is substantially as follows:

"**BE IT RESOLVED**, as a special resolution of the holders of common shares ("**Shareholders**") of Almonty Industries Inc. (the "**Company**"), that:

1. the
 Company be and it is hereby authorized to file articles of amendment (the "**Articles of Amendment**") under Section 173 of the *Canada Business Corporations Act* (the
 "**CBCA**") to amend its articles of continuance to change the number of issued
 and unissued common shares of the Company (the "**Shares**") by consolidating
 the issued and unissued Shares on the basis of a ratio to be selected by the board of directors
 of the Company (the "**Board** "), in its sole discretion, of up to five (5)
 pre-consolidation Shares for one (1) new post-consolidation Share (the "**Share Consolidation** "),
 with such amendment to become effective at a date in the future to be determined by the Board,
 in its sole discretion, if and when the Board considers it to be in the best interests of
 the Company to implement such Share Consolidation, but in any event not later than one year
 after the date on which this special resolution is approved, subject to all necessary stock
 exchange approvals;

2. the
 Articles of Amendment giving effect to the Share Consolidation will provide that no fractional
 Shares will be issued in connection with the Share Consolidation and that the number of Shares
 to be received by a Shareholder shall be rounded down to the nearest whole Share in the event
 that such Shareholder would otherwise be entitled to receive a fractional Share;

3. upon
 completion of the Share Consolidation, all stock options, warrants and other rights to purchase
 or otherwise acquire Shares shall be adjusted to reflect the Share Consolidation in accordance
 with the terms and conditions of such instruments or agreements governing such convertible
 securities;

4. notwithstanding
 that this special resolution has been duly adopted by the Shareholders, the Board be and
 it is hereby authorized, in its sole discretion, to revoke this special resolution in whole
 or in part at any time prior to its being given effect without further notice to, or approval
 of, the Shareholders; and

5. any
 one director or officer of the Company be, and each of them is, hereby authorized and directed
 for and in the name of and on behalf of the Company, to execute or cause to be executed,
 whether under corporate seal of the Company or otherwise, and to deliver or cause to be delivered
 all such documents, and to do or cause to be done all such acts and things, as in the opinion
 of such director or officer may be necessary or desirable in order to carry out the terms
 of this special resolution, such determination to be conclusively evidenced by the execution
 and delivery of such documents or the doing of any such act or thing."

To be effective, the Share Consolidation Resolution must be passed by special resolution, being the affirmative vote of at least two-thirds (66 2/3%) of the votes cast by Shareholders in respect of such resolution.

The Board has determined that passing the Share Consolidation Resolution is in the best interests of the Company given, among other things, the potential for the Share Consolidation to facilitate a potential U.S. listing, the possibility of increased investor interest associated with the Share Consolidation, and the possibility of reduced volatility stemming from the Share Consolidation. **Having determined that the Share Consolidation Resolution is in the best interests of the Company, the Board recommends that Shareholders vote in favour of the foregoing resolution.**

**Shares represented by proxies in favour of the Management Nominees will be voted <u>FOR</u> approving the Share Consolidation Resolution, unless a Shareholder has specified in their proxy that their Shares are to be voted against such resolution.**

 **

**Effects of the Share Consolidation**

 **

<u>General</u>

If the Share Consolidation is implemented, its principal effect will be to proportionately decrease the number of issued and outstanding Shares by a factor equal to the consolidation ratio selected by the Board. At the close of business on the Record Date, there were 280,674,131 Shares issued and outstanding. For illustrative purposes only, the following table sets forth, based on the number of Shares issued and outstanding as of the Record Date, the number of Shares that would be issued and outstanding (disregarding any resulting fractional Shares and subject to any issuances occurring after the Record Date) following the implementation of the Share Consolidation, at various consolidation ratios:

---

| | |
|:---|:---|
| **Share Consolidation Ratio** | **Shares Outstanding** |
| Two (2) pre-consolidation Shares for one (1) post-consolidation Share | 140337065 |
| Three (3) pre-consolidation Shares for one (1) post-consolidation Share | 93558043 |
| Four (4) pre-consolidation Shares for one (1) post-consolidation Share | 70168532 |
| Five (5) pre-consolidation Shares for one (1) post-consolidation Share | 56134826 |

---

The indicative impact of the Share Consolidation on the Company's capital structure, assuming a consolidation ratio of five (5) pre-consolidation Shares for one (1) post-consolidation Shares, including the impact on CDIs and Convertible Securities, is set out below.

---

| | | |
|:---|:---|:---|
| **Security** | **Pre-Consolidation** | **Post-Consolidation<sup>(1)</sup>** |
| **Shares** | *Outstanding*<br>| *Outstanding*<br>|
|  | 280674131 | 56134826 |
| **CDIs** | *Outstanding*<br>| *Outstanding*<br>|
|  | 22409522 | 4481904 |
| **RSUs** | *Outstanding*<br>| *Outstanding*<br>|
|  | 3850000 | 770000 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Options** | *Outstanding* | *Exercise Price* | *Outstanding* | *Exercise Price* |
|  | 450000 | $0.65 | 90000 | $3.25 |
|  | 250000 | $0.69 | 50000 | $3.45 |
|  | 100000 | $0.64 | 20000 | $3.20 |
|  | 900000 | $0.80 | 180000 | $4.00 |
|  | 1650000 | $0.33 | 330000 | $1.65 |
|  | 1225000 | $0.87 | 245000 | $4.35 |
|  | 500000 | $0.49 | 100000 | $2.45 |
|  | 675000 | $0.70 | 135000 | $3.50 |
|  | 850000 | $0.94 | 170000 | $4.70 |
|  | 400000 | $0.98 | 80000 | $4.90 |
|  | 6450000 | $0.87 | 1290000 | $4.35 |
|  | 2550000 | $0.52 | 510000 | $2.60 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | 1000000 | | 200000 | |
|  | 1000000 | | 200000 | |
|  | 25000 | | 5000 | |
|  | 200000 | | 40000 | |
|  | 50000 | | 10000 | |
|  | 3030000 | | 606000 | |
|  | 200000 | | 40000 | |
|  | 200000 | | 40000 | |
|  | 250000 | | 50000 | |
|  | 200000 | | 40000 | |
|  | 522000 | | 104400 | |
|  | 150000 | $0.56<br>$0.63<br>$0.72<br>$0.63<br>$0.67<br>$0.66<br>$0.685<br>$0.81<br>$1.195<br>$1.915<br>$1.89<br>$1.62 | 30000 | $2.80<br>$3.15<br>$3.60<br>$3.15<br>$3.35<br>$3.30<br>$3.425<br>$4.05<br>$5.975<br>$9.575<br>$9.45<br>$8.10 |
| **CDI Options** | *Outstanding* | *Exercise Price* | *Outstanding* | *Exercise Price* |
|  | 588236 | A$0.69 | 117647 | A$3.45 |
|  | 6351613 | A$0.84 | 1270322 | A$4.20 |
|  | 14288889 | A$1.25 | 2857777 | A$6.25 |
| **Warrants** | *Outstanding* | *Exercise Price* | *Outstanding* | *Exercise Price* |
|  | 700000 | $0.75 | 140000 | $3.75 |
|  | 1795608 | €0.767 | 359121 | €3.835 |
|  | 1555555 | $0.60 | 311111 | $3.00 |
|  | 2222222 | US$0.45 | 444444 | US$2.25 |
|  | 1000000 | $0.60 | 200000 | $3.00 |
|  | 5354172 | $0.74 | 1070834 | $3.70 |
|  | 4527000 | $1.14 | 905400 | $5.70 |
| **Convertible Debentures** | *Number of Shares on Conversion* | *Conversion Price* | *Number of Shares on Conversion* | *Conversion Price* |
|  | 4137931 | $1.45 | 827586 | $7.25 |
|  | 3184713 | $0.628 | 636942 | $3.14 |
|  | 4640068 | US$0.50 | 928013 | US$2.50 |
|  | 1176470 | US$0.85 | 235294 | US$4.25 |
|  | 95238 | $1.05 | 19047 | $5.25 |
|  | 180723 | US$0.83 | 36144 | US$4.15 |
|  | 3000000 | US$0.50 | 600000 | US$2.50 |
|  | 1190476 | US$0.84 | 238095 | US$4.20 |
|  | 23079285 | €0.35 | 4615857 | €1.75 |

---

Notes:

(1) Post-Consolidation figures are rounded down to the nearest whole number. See "*No Fractional Shares*" below.

The Company does not expect the Share Consolidation itself to have any economic effect on holders of Shares or securities convertible into or exercisable to acquire Shares, except to the extent the Share Consolidation will result in fractional Shares. See "*No Fractional Shares*" below.

The Share Consolidation will not affect the listing of the Shares on the TSX nor the listing of the Shares (in the form of CDIs) on the ASX. Following the Share Consolidation, it is expected that the Shares will continue to be listed on the TSX and on the ASX (in the form of CDIs), in each case under the symbol "AII". Following the Share Consolidation, the Shares will be assigned new CUSIP and ISIN numbers.

Voting rights and other rights of Shareholders prior to the implementation of the Share Consolidation will not be affected by the Share Consolidation, other than as a result of the creation and disposition of fractional Shares as described below. For example, a holder of 2% of the voting power attached to the outstanding Shares immediately prior to the implementation of the Share Consolidation will generally continue to hold 2% of the voting power attached to the Shares immediately after the implementation of such Share Consolidation. The number of Registered Shareholders is not expected to be affected by the Share Consolidation (except to the extent resulting from the elimination of post-consolidation fractional Shares). For example, if the selected consolidation ratio for the Share Consolidation is five (5) pre-consolidation Shares per one (1) post-consolidation Share, then a Registered Shareholder that holds fewer than five (5) pre-consolidation Shares may cease to hold any Shares following such consolidation.

<u>Effect on Beneficial Shareholders</u>

Beneficial Shareholders holding Shares through an intermediary (a securities broker, dealer, bank or financial institution) should be aware that the intermediary may have different procedures for processing a consolidation than those that will be put in place by the Company for Registered Shareholders, which may impact the number of Shares beneficially owned following the Share Consolidation. If Shareholders hold their Shares through an intermediary and they have questions in this regard, they are encouraged to contact their intermediaries.

<u>Effect on Convertible Securities</u>

The exercise or conversion price and/or the number of Shares issuable under any outstanding convertible securities of the Company, including under outstanding stock options ("**Options**"), share purchase warrants, restricted share units ("**RSUs**"), and any other similar securities will be proportionately adjusted upon the implementation of any Share Consolidation, in accordance with the terms of such securities, based on the Share Consolidation ratio.

<u>Effect on Share Certificates</u>

If the Share Consolidation is implemented, in connection with the Share Consolidation, those Registered Shareholders who will hold at least one post-consolidation Share will be required to exchange their share certificates representing pre-consolidation Shares for share certificates representing post-consolidation Shares following the consolidation or, alternatively, a Direct Registration System ("**DRS**") Advice/Statement representing the number of post-consolidation Shares they hold following such consolidation. The DRS is an electronic registration system which allows Shareholders to hold Shares in their name in book-based form, as evidenced by a DRS Advice/Statement, rather than a physical share certificate.

If the Share Consolidation is implemented, the Company (or the Transfer Agent) will mail to each Registered Shareholder a letter of transmittal in connection with the Share Consolidation. Each Registered Shareholder must complete and sign a letter of transmittal after the Share Consolidation takes effect. The letter of transmittal will contain instructions on how to surrender to the Transfer Agent the certificate(s) or other evidence representing the Registered Shareholder's pre-consolidation Shares. The Transfer Agent will send to each Registered Shareholder who follows the instructions provided in the letter of transmittal a share certificate or DRS Advice/Statement representing the number of post-consolidation Shares to which the Registered Shareholder is entitled rounded down to the nearest whole number. Beneficial Shareholders who hold their Shares through intermediaries (securities brokers, dealers, banks, financial institutions, etc.) and who have questions regarding how the Share Consolidation will be processed should contact their intermediaries with respect to the Share Consolidation. See "*Effect on Beneficial Shareholders*" above.

Until surrendered to the Transfer Agent, each share certificate or other evidence representing pre- consolidation Shares will be deemed for all purposes to represent the number of post-consolidation Shares to which the registered Shareholder is entitled as a result of the Share Consolidation. Until Registered Shareholders have returned their properly completed and duly executed letter of transmittal and surrendered for exchange their share certificate(s) or other evidence representing pre-consolidation Shares, such Registered Shareholders will not be entitled to receive any distributions, if any, that may be declared and payable to holders of record following the Share Consolidation.

Any Registered Shareholder whose old certificate(s) have been lost, destroyed or stolen will be entitled to a replacement share certificate only after complying with the requirements that the Company and the Transfer Agent customarily apply in connection with lost, stolen or destroyed certificates.

The method chosen for delivery of share certificates and letters of transmittal to the Transfer Agent is the responsibility of the Registered Shareholder and neither the Transfer Agent nor the Company will have any liability in respect of share certificates and/or letters of transmittal which are not actually received by the Transfer Agent.

**REGISTERED SHAREHOLDERS SHOULD NEITHER DESTROY NOR SUBMIT ANY SHARE CERTIFICATE UNTIL HAVING RECEIVED A LETTER OF TRANSMITTAL.**

**No Fractional Shares**

 ****

No fractional Shares will be issued in connection with the Share Consolidation and no cash will be paid in lieu of fractional post-consolidation Shares. In the event that a Shareholder would otherwise be entitled to receive a fractional Share upon the occurrence of the Share Consolidation, such fraction will be rounded down to the nearest whole number. For example, if the selected consolidation ratio for the Share Consolidation is five (5) pre-consolidation Shares per one (1) post-consolidation Share, then a Shareholder that holds fewer than five (5) pre-consolidation Shares may cease to hold any Shares following such consolidation. In calculating such fractional interest, all post-Consolidation Shares held by a beneficial holder shall be aggregated.

**No Dissent Rights**

 ****

Shareholders are not entitled to exercise any statutory dissent rights with respect to the Share Consolidation.

**Accounting Consequences**

 ****

If the Share Consolidation is implemented, net income or loss per Share, and other per Share amounts, will be increased because there will be fewer Shares issued and outstanding. In future financial statements, net income or loss per Share and other per Share amounts for periods ending before the Share Consolidation took effect would be recast to give retroactive effect to the Share Consolidation.

**Stock Exchange Approval**

 ****

Assuming Shareholder approval is received at the Meeting, and assuming that the Board determines to proceed with the Share Consolidation, the Share Consolidation will be subject to approval by the TSX and ASX, and confirmation that, on a post-consolidation basis, the Company would meet all of the TSX's and ASX's applicable continuous listing requirements. If the TSX or ASX do not approve the Share Consolidation, the Company will not proceed with the Share Consolidation.

 **

**Risks Associated with the Share Consolidation**

 **

Reducing the number of issued and outstanding Shares through the Share Consolidation is intended, absent other factors, to increase the per Share market price of the Shares. However, the market price of the Shares will also be affected by the Company's financial and operational results, its financial position, including its liquidity and capital resources, the development of its operations, industry conditions, the market's perception of the Company's business, if and when the Company completes the Domestication, any tax ramifications of the Domestication and other factors, which are unrelated to the number of Shares outstanding.

The market price of the Shares immediately following the implementation of the Share Consolidation is expected to be approximately equal to the market price of the Shares prior to the implementation of the Share Consolidation multiplied by the applicable consolidation ratio, but there is no assurance that the anticipated market price immediately following the implementation of the Share Consolidation will be realized or, if realized, will be sustained or will increase. There is a risk that the total market capitalization of the Shares (the market price of the Shares multiplied by the number of Shares outstanding) after the implementation of the Share Consolidation may be lower than the total market capitalization of the Shares prior to the implementation of the Share Consolidation.

Although the Company believes that establishing a higher market price for the Shares could increase investment interest for the Shares in equity capital markets by potentially broadening the pool of investors that may consider investing in the Company, including investors whose internal investment policies prohibit or discourage them from purchasing stocks trading below a certain minimum price, there is no assurance that implementing the Share Consolidation will achieve this result.

If the Share Consolidation is implemented and the market price of the Shares (adjusted to reflect the applicable consolidation ratio) declines, the percentage decline as an absolute number and as a percentage of the Company's overall market capitalization may be greater than would have occurred if the Share Consolidation had not been implemented. Both the total market capitalization of a company and the adjusted market price of such company's shares following a consolidation may be lower than they were before the consolidation took effect. The reduced number of Shares that would be outstanding after the Share Consolidation is implemented could also adversely affect the liquidity of the Shares.

The Share Consolidation may result in some Shareholders owning "odd lots" of fewer than 100 Shares on a post-consolidation basis. Odd lot Shares may be more difficult to sell, or may attract greater transaction costs per Share to sell, and brokerage commissions and other costs of transactions in odd lots may be higher than the costs of transactions in "round lots" of even multiples of 100 Shares.

***Tax Considerations***

 ****

**SHAREHOLDERS SHOULD CONSULT THEIR TAX ADVISORS REGARDING THE TAX CONSEQUENCES OF THE SHARE CONSOLIDATION TO THEM, INCLUDING THE EFFECTS OF ANY CANADIAN, AUSTRALIAN OR U.S. FEDERAL, PROVINCIAL, STATE, LOCAL, FOREIGN AND/OR OTHER TAX LAWS.**

**ASX Requirements**

 ****

<u>ASX Listing Rules</u>

ASX Listing Rule 7.20 provides that where an entity proposes to reorganise its capital, it must tell equity security holders:

● the effect of the consolidation on the number of securities and the amount paid (if any) on them (see "*Effects of the Share Consolidation*" above and "*Effect on Capital Structure*" below);

● the proposed treatment of any fractional entitlements (See "*No Fractional Shares*" above); and

● the proposed treatment of any convertible securities (See "*Effect on Convertible Securities*" above).

Listing Rule 7.21 provides that a listed entity which has convertible securities (other than options) on issue may only reorganise its capital if, in respect of the convertible securities, the number of its convertible securities or the conversion price, or both, is reorganized so that the holder of the convertible securities will not receive a benefit that holders of ordinary securities do not receive (See "*Effect on Convertible Securities*" above and "*Effect on Capital Structure*" below).

Listing Rule 7.22.1 requires that when a listed entity undertakes a consolidation of capital, the number of its options must be consolidated in the same ratio as the ordinary capital and the exercise price must be amended in inverse proportion to that ratio See "*Effect on Convertible Securities*" above and the example in "*Holder Interests*" below.

<u>Holding Statements for Holders of CDIs and Convertible Securities Exercisable into CDIs</u>

From the date of the Consolidation, all holding statements for CDIs and Convertible Securities exercisable into CDIs will cease to have any effect, except as evidence of entitlement to a certain number of securities on a post-consolidation basis. After the Share Consolidation becomes effective, the Company will arrange for new holding statements for CDIs and Convertible Securities exercisable into CDIs to be issued to holders of those securities. It is the responsibility of each holder of CDIs and Convertible Securities exercisable into CDIs to check the number of CDIs and Convertible Securities exercisable into CDIs held prior to disposal or exercise (as the case may be).

<u>Holder Interests</u>

The Share Consolidation applies equally (or analogously) to all holders of Shares/CDIs and Convertible Securities, subject only to the rounding of fractions as described above. The Share Consolidation will therefore not have a material impact on the percentage interests of Shareholders and holders of other Equity Securities (as that term is defined in the ASX Listing Rules).

For example, assuming a consolidation ratio of five (5) pre-consolidation Shares for one (1) post- consolidation Share, a holder of 100 CDI Options exercisable at A$1.25 before the Share Consolidation will have that holding reduced to 20 Options (i.e. 5 times less), with the exercise price of each Option increased to $6.25 (i.e. 5 times greater).

<u>Market Price</u>

Theoretically, the market price of each Share/CDI following the Share Consolidation should, assuming a consolidation ratio of five (5) pre-consolidation Shares for one (1) post-consolidation Share, increase by five (5) times its current value. Practically, the actual effect on the market price of each Share/CDI will be dependent upon a number of factors which will not be within the control of the Company. Therefore, this may result in the market price of each Share/CDI following the Share Consolidation being higher or lower than the theoretical post-consolidation price.

<u>Effect on Capital Structure</u>

See "*Effects of the Share Consolidation – General*" above for details regarding the anticipated impact of the Share Consolidation on the Company's capital structure.

<u>Timetable</u>

For the purposes of ASX Listing Rule requirements, the indicative timetable for the Share Consolidation (as it applies to CDIs) is set out below. This indicative timetable is limited to the anticipated timeline for the Share Consolidation as it applies to the CDIs and does not necessarily reflect the timeline on which the Shares will commence trading on the TSX on a post-consolidation basis.

---

| | |
|:---|:---|
| **Event** | **Date<sup>(1)</sup>** |
| Company announces Share Consolidation using an Appendix 3A.3 and sends out Notice of Meeting | On dispatch of the Notice of Meeting |
| Date of Meeting | 30 April 2025 |
| Effective Date of Share Consolidation | To Be Determined(2) |
| Last day for trading of CDIs on pre-consolidation basis | Effective Date + 1 Business Day |
| Trading in post-consolidation CDIs commences on a deferred settlement basis | Effective Date + 2 Business Days |
| &nbsp;&nbsp;Record Date<br> Last day to register transfers on pre-consolidation basis | Effective Date + 3 Business Days |
| First day to update register and send post-consolidation holding statements | Record Date + 1 Business Day |
| Last day to update register, send post-consolidation holding statements to holders of CDIs and Convertible Securities exercisable into CDIs | Record Date + 5 Business Days |
| First day for normal trading of CDIs on post-consolidation basis | Record Date + 5 Business Days |

---

Notes:

(1) This
 timetable is subject to change in accordance with ASX Listing Rules and applicable laws.
 The Share Consolidation is subject to ASX requirements, including requirements under Appendix
 7A of the ASX Listing Rules.

(2) The
 Share Consolidation Resolution authorizes the Board to give effect to the Share Consolidation
 at such time as the Board deems appropriate, but in any event not later than April 30, 2026,
 subject to the Board's authority to decide not to proceed with the Share Consolidation.

**F.** **APPROVAL OF OMNIBUS EQUITY INCENTIVE PLAN** 

At the Meeting, Shareholders will be asked to consider and, if thought advisable, pass an ordinary resolution (the "**New EIP Resolution**") approving a new omnibus equity incentive plan of the Company in the form set out as Schedule "B" to this Circular (the "**New EIP**").

If the New EIP Resolution is approved at the Meeting, the New EIP will supersede and replace the Company's Third Amended and Restated Incentive Stock Option Plan (the "**Stock Option Plan**") and Restricted Share Unit Plan (the "**RSU Plan**" and together with the Stock Option Plan, the "**Existing Plans**") in respect of future awards, and no new awards will be available for grant under or be granted under the Existing Plans. The Existing Plans will continue to exist only for the purpose of governing the terms of outstanding awards that have already been issued under the Existing Plans until such awards are exercised, settled, expire or are otherwise terminated or cancelled.

In the event that the New EIP Resolution does not receive the required Shareholder approval at the Meeting, the Existing Plans will remain in full force and effect and the Company will seek Shareholder approval for all unallocated Options under the Stock Option Plan. See "*Business of the Meeting – Approval of Unallocated Options under the Company's Stock Option Plan*".

**Background**

 ****

On March 21, 2025, the Board approved, subject to the receipt of Shareholder approval, the adoption of the New EIP, which is designed to provide flexibility to the Company to grant equity-based incentive awards in the form of Options, share units ("**Share Units**") and deferred share units ("**DSUs**" and together with Options and Share Units, "**Awards**").

 **

**Purpose**

 **

The purpose of the New EIP is to permit the Company to grant Awards to Eligible Participants (as hereinafter defined), for the following purposes: (a) to increase the interest in the Company's welfare of those Eligible Participants, who share responsibility for the management, growth and protection of the business of the Company and its subsidiaries; (b) to provide an incentive to such Eligible Participants to continue their services for the Company or any of its subsidiaries and to encourage such Eligible Participants whose skills, performance and loyalty to the objectives and interests of the Company and its subsidiaries are necessary or essential to its success, image, reputation or activities; (c) to reward any Eligible Participant that is granted one or more Awards under the New EIP (each, a "**New EIP Participant**") for their performance of services while working for the Company or its subsidiaries; and (d) to provide a means through which the Company or its subsidiaries may attract and retain able persons to enter their employment or service.

A summary of the key terms of the New EIP is set out below, which is qualified in its entirety by the full text of the New EIP. A copy of the New EIP is attached as Schedule "B" hereto.

**Summary of the New EIP**

 ****

<u>Administration of the New EIP</u>

The New EIP is administered and interpreted by the Board, which may delegate its authority to a committee or plan administrator appointed by the Board. Subject to the terms of the New EIP, the Board determines which directors, officers, consultants and employees are eligible to receive Awards under the New EIP, the time or times at which Awards may be granted, the conditions under which Awards may be granted or forfeited to the Company, the number of Shares to be covered by any Award, the exercise price of any Award, whether restrictions or limitations are to be imposed on the Shares issuable pursuant to grants of any Award, and the nature of any such restrictions or limitations, any acceleration of exercisability or vesting, or waiver of termination regarding any Award, based on such factors as the Board may determine.

In addition, the Board interprets the New EIP and may, in accordance with the terms of the New EIP, adopt, amend and rescind rules and regulations relating to the New EIP, and make all other determinations and take all other actions necessary or advisable for the implementation and administration of the New EIP.

<u>Eligibility</u>

The following individuals (collectively, "**Eligible Participants**") are eligible to participate in the New EIP: (i) in respect of a grant of Options or Share Units, any director, executive officer, employee or consultant of the Company or any of its subsidiaries; and (ii) in respect of a grant of DSUs, any director who is not otherwise an employee or executive officer of the Company or any of its subsidiaries (a "**Non-Employee Director**"). The extent to which any Eligible Participant is entitled to receive a grant of an Award pursuant to the New EIP will be determined in the sole and absolute discretion of the Board.

<u>Shares Subject to the New EIP</u>

Under the New EIP, the maximum number of Shares reserved for issuance, in the aggregate, is 56,000,000, less any Shares underlying securities granted under any other security-based compensation arrangements of the Company (including the Existing Plans and any other stock option, stock option plan, employee stock purchase plan, long-term incentive plan or other compensation or incentive mechanism involving the issuance or potential issuance of Shares from treasury, including a Share purchase from treasury by a full- time employee, director, officer, insider, or consultant which is financially assisted by the Company or a subsidiary by way of a loan, guarantee or otherwise), if any. No Award under the New EIP may be granted if such grant would have the effect of causing the total number of Shares reserved for issuance under the New EIP to exceed the maximum number of Shares reserved for issuance under the New EIP as described in the preceding sentence.

Awards that remain outstanding under the Existing Plans when the New EIP becomes effective will count against the number of Shares reserved for issuance under the New EIP and will not again become available under the New EIP. For example, as of the date of this Circular, the Company had 22,827,000 Options and 3,850,000 RSUs outstanding, representing an aggregate total of 26,677,000 Shares underlying outstanding awards. Assuming the same number of awards are outstanding under the Existing Plans on the date the New EIP becomes effective and supersedes and replaces the Existing Plans, the maximum number of Shares that could be reserved for issuance under the New EIP would be 29,323,000, being the difference between 56,000,000 and 26,677,000. The maximum number of Shares reserved for issuance under the New EIP would not subsequently increase when awards granted under the Existing Plans are exercised, settled, expire or are otherwise terminated or cancelled.

<u>Insider Participation Limit, Individual Limit</u>

The New EIP provides that, as long as the Common Shares are listed on the TSX, the maximum number of Shares: (a) issuable to insiders at any time; and (b) issued to insiders within any one-year period, under the New EIP, or when combined with all of the Company's other security-based compensation arrangements, cannot exceed 10% of the Company's issued and outstanding securities.

The New EIP does not provide for a maximum number of Shares which may be issued to an individual pursuant to the New EIP and any other security-based compensation arrangement (expressed as a percentage or otherwise).

<u>Types of Awards</u>

The New EIP provides for the grant of Options, Share Units and DSUs. Each of the Awards described below are subject to the conditions, limitations, restrictions, exercise price, vesting, settlement and forfeiture provisions determined by the Board, in its sole discretion, subject to such limitations provided in the New EIP, and will generally be evidenced by a Grant Agreement (as defined in the New EIP). In addition, subject to the limitations provided in the New EIP and in accordance with applicable law, the Board may accelerate or defer the vesting or payment of Awards, modify outstanding Awards, and waive any condition imposed with respect to Awards or Shares issued pursuant to Awards.

*Stock Options*

 

An Option entitles a holder thereof to purchase a prescribed number of Shares from treasury at an exercise price set at the time of the grant. The Board will establish the exercise price at the time each Option is granted, which exercise price shall be not less than the closing price of the Shares on the last trading day prior to the date of grant (the "**Market Value of a Share**"). Subject to the provisions set forth in the New EIP and any Shareholder or regulatory approval which may be required, the Board will, from time to time, in its sole discretion: (i) designate the Eligible Participants who may receive Options under the New EIP; (ii) fix the number of Options, if any, to be granted to each Eligible Participant and the date or dates on which such Options will be granted; and (iii) determine the relevant vesting provisions (including performance criteria, if applicable) and the Option term, which cannot be more than fifteen (15) years from the date the Option is granted. Options issued under the New EIP will comply with any applicable stock exchange requirements.

The Board may, at any time (including at the time of receipt by the Company of a notice to exercise Options from a New EIP Participant) and on such terms as it may in its discretion determine, grant to such New EIP Participant who is entitled to exercise an Option the alternative right (the "**Cashless Exercise Right**") to deal with such Option on a "cashless exercise" basis. Without limitation, the Board may determine in its discretion that such Cashless Exercise Right, if any, granted to a New EIP Participant in respect of any Options, entitles the New EIP Participant the right to surrender such Options, in whole or in part, to the Company upon giving notice in writing to the Company of the New EIP Participant's intention to exercise such Cashless Exercise Right and the number of Options in respect of which such Cashless Exercise Right is being exercised, and, upon such surrender, to receive, as consideration for the surrender of such Options as are specified in the notice, that number of Shares, disregarding fractions, equal to the quotient obtained by: (a) subtracting the applicable Option price from the Market Value of a Share (determined as of the date such notice of cashless exercise is received by the Company), and multiplying the remainder by the number of Options specified in such notice; (b) subtracting from the amount obtained under subsection (a) the amount of any applicable withholding taxes as determined by the Company in its sole discretion (unless such amounts are paid in cash by the New EIP Participant at the time of exercise); and (c) dividing the net amount obtained under subsection (b) by the Market Value of a Share determined as of the date such notice of cashless exercise is received by the Company.

*Share Units*

 

A Share Unit is an Award that is a bonus for services rendered in the year of grant that, upon settlement, entitles the recipient to receive a cash payment equal to the Market Value of a Share (or, at the sole discretion of the Company, a Share), and subject to such restrictions and conditions on vesting as the Board may determine at the time of grant, unless such Share Unit expires prior to being settled. Restrictions and conditions on vesting of the Share Units, may, without limitation, be based on the passage of time during continued employment or other service relationship (referred to as a "**Restricted Share Unit**"), the achievement of specified performance criteria (referred to as a "**Performance Share Unit**"), or both.

The Board will, from time to time, in its sole discretion: (i) designate the Eligible Participants who may receive Share Units under the New EIP; (ii) fix the number of Share Units, if any, to be granted to each Eligible Participant and the date or dates on which such Share Units will be granted; (iii) determine the relevant conditions, vesting provisions (including the applicable performance period and performance criteria, if any) and the period between the date of grant of such Share Units and the latest Vesting Date (as defined in the New EIP) in respect of any portion of such Share Units (the "**Restriction Period**"); and

(iv) determine any other terms and conditions applicable to the granted Share Units.

Subject to the vesting and other conditions and provisions in the New EIP and in the applicable Grant Agreement, each Share Unit entitles the holder thereof to receive, on settlement, a cash payment equal to the Market Value of a Share, or at the discretion of the Company, one Share or any combination of cash and Shares as the Company in its sole discretion may determine, in each case less any applicable withholding taxes. Subject to the terms of the New EIP, a New EIP Participant's vested Share Units will be redeemed in consideration for a cash payment on the date that is the earliest of: (i) the 15th day following the applicable Vesting Date for such vested Share Units (or, if such day is not a business day, on the immediately following business day); (ii) December 15 of the third calendar year following the end of the calendar year in respect of which such Share Unit is granted; and (iii) in the case of a New EIP Participant who is a U.S. Taxpayer (as defined in the New EIP), March 15 of the year following the year in which such Share Units are not, or are no longer, subject to a substantial risk of forfeiture (as interpreted under applicable law).

*DSUs*

 

A DSU is an Award for services rendered, or for future services to be rendered, and that, upon settlement, entitles the recipient New EIP Participant to receive cash or acquire Shares, as determined by the Company in its sole discretion, unless such DSU expires prior to being settled.

Subject to the provisions of the New EIP and certain legal requirements, the Board may, from time to time, in its sole discretion: (i) designate the Non-Employee Directors who may receive DSUs under the New EIP; (ii) fix the number of DSUs, if any, to be granted to any Non-Employee Director and the date or dates on which such DSUs will be granted; and (iii) determine any other terms and conditions applicable to the granted DSUs. In addition, each Non-Employee Director is given the right, subject to the terms and conditions of the New EIP, to elect to receive all or a portion of any director fees that are otherwise intended to be paid in cash in the form of DSUs in lieu of cash.

Subject to the vesting and other conditions and provisions in the New EIP and in any Grant Agreement, each DSU awarded to a New EIP Participant will entitle the New EIP Participant to receive on settlement a cash payment equal to the Market Value of a Share, or at the discretion of the Company, one Share or any combination of cash and Shares as the Company in its sole discretion may determine. Except as otherwise provided in the New EIP: (i) DSUs of a New EIP Participant who is a U.S. Taxpayer will be redeemed and settled by the Company as soon as reasonably practicable following the New EIP Participant's Separation from Service (as defined in the New EIP); and (ii) DSUs of a New EIP Participant who is a Canadian New EIP Participant (or who is neither a U.S Taxpayer nor a Canadian New EIP Participant) will be redeemed and settled by the Company as soon as reasonably practicable following the New EIP Participant's Termination Date (as defined in the New EIP), but in any event not later than, and any payment (whether in cash or in Shares) in respect of the settlement of such DSUs will be made no later than, December 15 of the first calendar year commencing immediately after the New EIP Participant's Termination Date.

*Dividend Equivalents*

 

Dividend equivalents may, as determined by the Board in its sole discretion, be awarded in respect of unvested Share Units in a New EIP Participant's account on the same basis as cash dividends declared and paid on Shares as if the New EIP Participant was a Shareholder of record on the relevant record date. Dividend equivalents, if any, will be credited to the New EIP Participant's account in additional Share Units, the number of which will be equal to a fraction where the numerator is the product of: (i) the number of Share Units in such New EIP Participant's account as of the record date for payment of the dividend multiplied by (ii) the dividend paid per Share and the denominator of which is the Market Value of a Share calculated as of the date that dividends are paid. Any additional Share Units credited to a New EIP Participant's account as a dividend equivalent shall be subject to the same terms and conditions (including vesting and Restriction Periods) as the Share Units in respect of which such additional Share Units are credited and shall be deemed to have been awarded on the same date and subject to the same expiry date as the Share Units in respect of which such additional Share Units are credited.

<u>Blackout Periods</u>

If an Option would expire, or a Share Unit would otherwise vest, during a trading blackout period imposed by the Company to restrict trades in the Company's securities, or within nine (9) business days after the expiry of such a blackout period, then, subject to certain exceptions, the Option will expire on, or the Vesting Date of such Share Unit will be deemed to be, the date that is ten (10) business days after the expiration of such blackout period.

<u>Expiry Date of Awards</u>

While the New EIP does not stipulate a specific term for Awards granted thereunder, subject to the terms of the New EIP: (a) the expiry date of an Option may not be more than 15 years from its date of grant; and (b) the expiry date of a Share Unit may not be later than December 15 of the third year from its date of grant. All Awards must vest and settle in accordance with the provisions of the New EIP and any applicable Grant Agreement, which Grant Agreement may include an expiry date for a specific Award.

<u>Termination of Employment or Services</u>

The following table describes the impact of certain events upon the New EIP Participants, including resignation, termination for cause, termination without cause, disability, death, retirement or voluntary leave of absence, subject, in each case, to the terms of such New EIP Participant's applicable Grant Agreement or other written agreement:

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| | | |
|:---|:---|:---|
| **Event** | **Option Provisions** | **Share Unit Provisions** |
| *Resignation* | Each unvested Option granted to such New EIP Participant will terminate and become void immediately upon the New EIP Participant's Termination Date.<br>Each vested Option held by such New EIP Participant will cease to be exercisable on the earlier of: (A) seven (7) days after the New EIP Participant's Termination Date; and (B) the expiry date of such Option as set forth in the applicable Grant Agreement, after which such vested Option will expire. | The New EIP Participant's participation in the New EIP will be terminated immediately upon the New EIP Participant's Termination Date, all Share Units credited to such New EIP Participant's account that have not vested as of the New EIP Participant's Termination Date will be forfeited and cancelled, and the New EIP Participant's rights that relate to such New EIP Participant's unvested Share Units will be forfeited and cancelled on the Termination Date. |
| *Termination for Cause* | Any vested or unvested Option granted to such Participant will terminate immediately upon the Participant's Termination Date. | The New EIP Participant's participation in the New EIP will be terminated immediately upon the New EIP Participant's Termination Date, all Share Units credited to such New EIP Participant's account that have not vested as of the New EIP Participant's Termination Date will be forfeited and cancelled, and the New EIP Participant's rights that relate to such New EIP Participant's unvested Share Units will be forfeited and cancelled on the Termination Date. |
| *Termination without Cause* | Each unvested Option granted to such New EIP Participant will expire and become void immediately upon the New EIP Participant's Termination Date.<br> Each vested Option held by such New EIP Participant will cease to be exercisable on the earlier of: (A) seven (7) days after the New EIP Participant's Termination Date (or such later date as the Board may, in its sole discretion, determine); and (B) the expiry date of such Option as set forth in the applicable Grant Agreement, after which such vested Option will expire. | Subject to certain exceptions, all unvested Share Units in the New EIP Participant's account as of the New EIP Participant's Termination Date relating to a Restriction Period in progress will be forfeited and cancelled. |
| *Disability* | Each unvested Option granted to such New EIP Participant will terminate and become void immediately upon the New EIP Participant's Termination Date.<br> Each vested Option held by such New EIP Participant will cease to be exercisable on the earlier of: (A) seven (7) days after the New EIP Participant's Termination Date; and (B) the expiry date of such Option as set forth in the applicable Grant Agreement, after which such vested Option will expire. | Subject to certain exceptions, all unvested Share Units in the New EIP Participant's account as of the date of his or her employment or service relationship with the Company or any of its subsidiaries being terminated by reason of injury or disability relating to a Restriction Period in progress will be forfeited and cancelled. |

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| | | |
|:---|:---|:---|
| **Event** | **Option Provisions** | **Share Unit Provisions** |
| *Death* | Each unvested Option granted to such New EIP Participant will terminate and become void effective immediately prior to the New EIP Participant's time of death.<br>Each vested Option held by such New EIP Participant at the time of death may be exercised by the legal representative of the New EIP Participant, provided that any such vested Option will cease to be exercisable on the earlier of (A) the date that is one year after the New EIP Participant's death; or (B) the expiry date of such Option as set forth in the applicable Grant Agreement, after which such vested Option will expire. | Subject to certain exceptions, all unvested Share Units in the New EIP Participant's account as of the date of death of such New EIP Participant relating to a Restriction Period in progress will be forfeited and cancelled. |
| *Retirement* | Each unvested Option granted to such New EIP Participant will terminate and become void immediately upon the New EIP Participant's Termination Date.<br>Each vested Option held by such New EIP Participant will cease to be exercisable on the earlier of: (A) seven (7) days after the New EIP Participant's Termination Date; and (B) the expiry date of such Option as set forth in the applicable Grant Agreement, after which such vested Option will expire. | Subject to certain exceptions, all unvested Share Units in the New EIP Participant's account as of the date of retirement of such New EIP Participant relating to a Restriction Period in progress will be forfeited and cancelled. |
| *Leave of Absence*<br> *(more than 12 months)* | The Board may determine, at its sole discretion but subject to applicable laws, that such New EIP Participant's participation in the New EIP will be terminated, provided that all vested Options will remain outstanding and in effect until the applicable exercise date, or an earlier date determined by the Board at its sole discretion. | Subject to certain exceptions, all unvested Share Units in the New EIP Participant's account as of the date on which a New EIP Participant elects a voluntary leave of absence of more than 12 months relating to a Restriction Period in progress will be forfeited and cancelled. |

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**Change of Control**

 ****

Under the New EIP, in the event of a potential Change of Control (as hereinafter defined), the Board may exercise its sole discretion to: (i) accelerate the vesting of Options to assist the New EIP Participants to tender into a takeover bid or participate in any other transaction leading to a Change of Control; or (ii) accelerate the vesting of, or waive the performance criteria or other vesting conditions applicable to, outstanding Share Units, and the date of such action will be the Vesting Date of such Share Units.

If the Company completes a transaction constituting a Change of Control and within 12 months following the Change of Control a New EIP Participant who was also an officer or employee of, or consultant to, the Company prior to the Change of Control has their employment agreement or consulting agreement terminated, then: (i) all unvested Options granted to such New EIP Participant will immediately vest and become exercisable, and remain open for exercise until the earlier of (A) their expiry date as set out in the applicable Grant Agreement, and (B) the date that is 90 days after such termination or dismissal; and (ii) all unvested Share Units will become vested, and the date of such New EIP Participant's Termination Date will be deemed to be the Vesting Date.

Under the New EIP, a "**Change of Control**" includes, unless the Board determines otherwise, the happening, in a single transaction or in a series of related transactions, of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any
 transaction (other than a transaction described in clause (c) below) pursuant to which any
 person or group of persons acting jointly or in concert acquires the direct or indirect beneficial
 ownership of securities of the Company representing 50% or more of the aggregate voting power
 of all of the Company's then-issued and outstanding securities entitled to vote in
 the election of directors of the Company, other than any such acquisition that occurs upon
 the exercise or settlement of options or other securities granted by the Company under any
 of the Company's equity incentive plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) there
 is consummated an arrangement, amalgamation, merger, consolidation or similar transaction
 involving (directly or indirectly) the Company and, immediately after the consummation of
 such arrangement, amalgamation, merger, consolidation or similar transaction, the Shareholders
 immediately prior thereto do not beneficially own, directly or indirectly, either (A) outstanding
 voting securities representing more than 50% of the combined outstanding voting power of
 the surviving or resulting entity in such amalgamation, merger, consolidation or similar
 transaction or (B) more than 50% of the combined outstanding voting power of the parent of
 the surviving or resulting entity in such arrangement, amalgamation, merger, consolidation
 or similar transaction, in each case in substantially the same proportions as their beneficial
 ownership of the outstanding voting securities of the Company immediately prior to such transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 sale, lease, exchange, license or other disposition, in a single transaction or a series
 of related transactions, of assets, rights or properties of the Company or any of its subsidiaries
 which have an aggregate book value greater than 50% of the book value of the assets, rights
 and properties of the Company and its subsidiaries on a consolidated basis to any other person
 or entity, other than a disposition to a wholly-owned subsidiary of the Company in the course
 of a reorganization of the assets of the Company and its wholly-owned subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 passing of a resolution by the Board or Shareholders to substantially liquidate the assets
 of the Company or wind up the Company's business or significantly rearrange its affairs
 in one or more transactions or series of transactions or the commencement of proceedings
 for such a liquidation, winding-up or re-arrangement (except where such re- arrangement is
 part of a bona fide reorganization of the Company in circumstances where the business of
 the Company is continued and the shareholdings remain substantially the same following the
 re-arrangement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) individuals
 who, immediately prior to a particular time, are members of the Board (the "**Incumbent Board**") cease for any reason to constitute at least a majority of the members of
 the Board immediately following such time; provided, however, that if the appointment or
 election (or nomination for election) of any new Board member was approved or recommended
 by a majority vote of the members of the Incumbent Board then still in office, such new member
 will, for purposes of the New EIP, be considered as a member of the Incumbent Board; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the
 Board adopts a resolution to the effect that a Change of Control as defined in the New EIP
 has occurred or is imminent.

<u>Non-Transferability of Awards</u>

Except as specifically provided in a Grant Agreement approved by the Board, each Award granted under the New EIP is not assignable or transferable by a New EIP Participant, whether voluntarily or by operation of law, except by will or by the laws of succession of the domicile of a deceased New EIP Participant. No Award granted under the New EIP will be pledged, hypothecated, charged, transferred, assigned or otherwise encumbered or disposed of on pain of nullity.

<u>Amendments to the New EIP</u>

The Board may, subject to obtaining any required consent of the applicable stock exchange(s) on which its Shares are listed, at any time amend, modify or terminate the New EIP without Shareholder approval if and when it is advisable in the discretion of the Board, provided however, Shareholder approval will be required in respect of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any
 amendments to the maximum number of Shares reserved for issuance under the New EIP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any
 amendment which reduces the exercise price of an Option that is held by an insider of the
 Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any
 amendment extending the term of an Award held by an insider of the Company beyond its original
 expiry date except as otherwise permitted by the New EIP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any
 amendment which increases the limit on grants of Awards to insiders of the Company under
 the New EIP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the
 inclusion in the New EIP of amendment provisions granting additional powers to the Board
 to amend the New EIP or Awards granted thereunder without Shareholder approval; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) amendments
 required to be approved by Shareholders under applicable law (including, without limitation,
 policies of applicable stock exchange(s) and applicable securities laws).

Where Shareholder approval is sought for amendments under subsections (b), (c) or (d) above, the votes attached to Shares held directly or indirectly by insiders of the Company benefiting from the amendment will be excluded.

Other than as specified above, the Board may approve all other amendments to the New EIP or Awards granted thereunder without Shareholder approval. Without limiting the generality of the foregoing, the following types of amendments would not require Shareholder approval:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) amendments
 of a "housekeeping" or ministerial nature, including any amendment for the purpose
 of curing any ambiguity, error or omission in the New EIP or to correct or supplement any
 provision of the New EIP that is inconsistent with any other provision of the New EIP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) amendments
 necessary to comply with the provisions of applicable law (including, without limitation,
 policies of applicable stock exchange(s) and applicable securities laws);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 addition or modification of a cashless exercise feature, payable in securities or cash of
 the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) amendments
 respecting administration of the New EIP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any
 amendment to the vesting provisions of the New EIP or any Award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any
 amendment to the early termination provisions of the New EIP or any Award, whether or not
 such Award is held by an insider of the Company, provided such amendment does not entail
 an extension beyond the original expiry date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) amendments
 necessary to suspend or terminate the New EIP; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any
 other amendment, whether fundamental or otherwise, not requiring Shareholder approval under
 applicable law (including, without limitation, policies of applicable stock exchange(s) and
 applicable securities laws).

<u>Financial Assistance</u>

Unless otherwise determined by the Board, the Company will not offer financial assistance to any New EIP Participant in regards to the exercise of any Award granted under the New EIP.

**Shareholder Approval of the New EIP**

 ****

In order to be effective, the New EIP Resolution requires approval by a majority of the votes cast by Shareholders for such resolution. If Shareholders do not approve the New EIP, the Existing Plans will remain in full force and effect as the Company's only equity compensation plans and the Company will seek Shareholder approval for the unallocated Options under the Stock Option Plan. See "*Business of the Meeting – Approval of Unallocated Options under the Company's Stock Option Plan*".

The text of the New EIP Resolution that the Company intends to place before the Meeting, with or without modification, is substantially as follows:

"**BE IT RESOLVED**, as an ordinary resolution of the holders of common shares of Almonty Industries Inc. (the "**Company**") that:

1. the
 omnibus equity incentive plan adopted by the board of directors of the Company (the "**Board** ")
 on March 21, 2025 (the "**New EIP** "), substantially in the form attached
 as Schedule "B" to the management information circular of the Company dated March
 21, 2025, is hereby confirmed, ratified and approved;

2. the
 Board is hereby authorized to make such amendments to the New EIP from time to time, as may
 be required by the applicable regulatory authorities, or as may be considered appropriate
 by the Board, in its sole discretion, provided always that such amendments be subject to
 the approval of the regulatory authorities, if applicable, and in certain cases, in accordance
 with the terms of the New EIP, the approval of the shareholders of the Company; and

3. any
 one director or officer of the Company is hereby authorized and directed, acting for, in
 the name of and on behalf of the Company, to execute or cause to be executed, under the seal
 of the Company or otherwise and to deliver or to cause to be delivered, all such other deeds,
 documents, instruments and assurances and to do or cause to be done all such other acts as,
 in the opinion of such director or officer of the Company, may be necessary or desirable
 to carry out the terms of the foregoing resolutions."

To be effective, the New EIP Resolution must be approved by the majority of the votes cast on the resolution by Shareholders, present in person or by proxy at the Meeting.

The Board has determined that passing the New EIP Resolution is in the best interests of the Company as the potential for equity ownership by directors, officers, employees and consultants is expected to have the effect of further aligning the interests of Shareholders and such persons. **Having determined that the New EIP Resolution is in the best interests of the Company, the Board recommends that Shareholders vote in favour of the foregoing resolution.**

**Shares represented by proxies in favour of the Management Nominees will be voted <u>FOR</u> approving the New EIP Resolution, unless a Shareholder has specified in their proxy that their Shares are to be voted against such resolution.**

**G.** **APPROVAL OF UNALLOCATED OPTIONS UNDER THE COMPANY'S STOCK OPTION PLAN** 

If the New EIP Resolution is not approved by Shareholders at the Meeting, the Shareholders will be asked to consider, and if thought fit, to pass an ordinary resolution approving all unallocated Options under the Stock Option Plan (the "**Unallocated Option Resolution**"), as more particularly described below. If the New EIP Resolution is approved by Shareholders at the Meeting, Shareholders will not be asked to approve the Unallocated Option Resolution at the Meeting.

The Company has established its Stock Option Plan to provide long-term incentives to eligible directors, officers, employees and consultants. The TSX Company Manual requires that all unallocated options, rights or other entitlements under a security-based compensation arrangement that does not provide for a fixed maximum number of securities issuable thereunder, such as the Stock Option Plan, be re-approved every three (3) years. Accordingly, as the unallocated Options under the Stock Option Plan were last approved by the Shareholders on June 30, 2022, Shareholders will be asked at the Meeting to consider and, if thought appropriate, ratify and approve by ordinary resolution the unallocated Options under the Stock Option Plan.

The maximum number of Shares that may be issued under the Stock Option Plan, collectively with Shares issued under the Company's RSU Plan, cannot exceed 10% of the total number of Shares issued and outstanding from time to time. As at December 31, 2024, there were 265,420,823 Shares issued and outstanding. Accordingly, there were 26,542,082 Shares available for grant under the Existing Plans as at December 31, 2024, representing 10% of the then-issued and outstanding Shares. As of the date of this Circular, there are 28,067,413 Shares available for grant under the Existing Plans, representing 10% of the issued and outstanding Shares.

As of December 31, 2024, the Company had 21,780,000 Options outstanding and 3,850,000 RSUs outstanding, which represented 8.21% and 1.45% respectively, and 9.66% collectively, of the issued and outstanding Shares. As of December 31, 2024, a total of 912,082 Shares remained available for grant, or 0.34% of the issued and outstanding Shares. As at the date of this Circular, the Company has 22,827,000 Options outstanding and 3,850,000 RSUs outstanding, which represent 8.13% and 1.37% respectively, and 9.50% collectively, of the issued and outstanding Shares.

A copy of the Stock Option Plan is attached hereto as Schedule "C". For more information about the Stock Option Plan, including a description of recent amendments that were not subject to Shareholder approval, see the sections "*Executive Compensation – Compensation Discussion and Analysis – Stock Option Plan – Summary of the Stock Option Plan*" below.

**Resolution for the Approval of Unallocated Options under the Stock Option Plan**

 ****

The text of the Unallocated Option Resolution that, in the event that Shareholders do not approve the New EIP Resolution, the Company intends to place before the Meeting, with or without modification, is substantially as follows:

"**BE IT RESOLVED**, as an ordinary resolution of the holders of common shares of Almonty Industries Inc. (the "**Company**"), that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. all unallocated options under the Company's Third Amended and Restated Incentive Stock Option Plan (the "**Stock Option Plan**") be and are hereby approved;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. the Company shall have the ability to continue granting options under the Stock Option Plan until April 30, 2028, which is the date that is three (3) years from the date of the shareholder meeting at which shareholder approval is being sought; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. any director or officer of the Company be and is hereby authorized to do such things and to sign, execute and deliver all documents that such director and officer may, in their discretion, determine to be necessary or desirable in order to give full effect to the intent and purpose of this resolution."

To be effective, the unallocated options under the Stock Option Plan must be approved by the majority of the votes cast on the resolution by Shareholders, present in person or by proxy at the Meeting.

The Board has determined that, in the event that Shareholders do not approve the New EIP Resolution, the re-approval of the Stock Option Plan is in the best interests of the Company as the potential for further equity ownership by directors, officers, employees and consultants is expected to have the effect of further aligning the interests of Shareholders and such persons. **Having determined that, in the event that Shareholders do not approve the New EIP Resolution, the re-approval of the Stock Option Plan is in the best interests of the Company, the Board recommends that Shareholders vote in favour of the foregoing resolution.**

**Shares represented by proxies in favour of the Management Nominees will be voted <u>FOR</u> approving the Unallocated Option Resolution, if such resolution is placed before the Meeting, unless a Shareholder has specified in their proxy that their Shares are to be voted against such resolution.**

**H.** **OTHER BUSINESS** 

As of the date of this Circular, none of the directors or officers of the Company are aware of any amendments or variations to the matters set out in the Notice of Meeting, nor of any other matter to be presented at the Meeting. However, if any amendment, variation or other business is properly brought before the Meeting, the accompanying form of proxy confers discretion on the persons named therein to vote on any amendment or variation of the matters set out in the Notice of Meeting or any such other business in accordance with their best judgment.

**<u>SECURITIES AUTHORIZED FOR ISSUANCE UNDER SECURITY-BASED COMPENSATION ARRANGEMENTS</u>**

The following table sets forth, as of December 31, 2024, the number of securities issuable upon exercise of outstanding Options, RSUs and other entitlements, the weighted exercise price of such outstanding Options, RSUs and other entitlements and the number of securities remaining available for future issuance under all security-based compensation arrangements previously approved by the Shareholders.

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| | | | |
|:---|:---|:---|:---|
| **Plan Category** | **Number of securities to be issued upon exercise of outstanding Options, RSUs and warrants** | **Weighted-average exercise price of outstanding Options, RSUs and warrants ($)** | **Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in the first column)** |
| Equity compensation plans approved by securityholders | 25630000 | $0.73 | 912082 |

---

**<u>EXECUTIVE COMPENSATION</u>**

**A.** **COMPENSATION DISCUSSION AND ANALYSIS** 

The purpose of this compensation discussion and analysis portion of the Circular is to provide information about the Company's executive compensation philosophy, objectives and processes and to discuss compensation decisions relating to the Company's executive officers, including its "named executive officers". Pursuant to applicable securities regulations, a "named executive officer" means (a) the Chief Executive Officer, (b) the Chief Financial Officer, (c) each of the three most highly compensated executive officers of the Company, including any of its subsidiaries, or the three most highly compensated individuals acting in a similar capacity, other than the CEO and CFO, at the end of the most recently completed financial year whose total compensation was, individually, more than $150,000 for that financial year, and (d) each individual who would be a named executive officer under paragraph (c) but for the fact that the individual was neither an executive officer of the Company or its subsidiaries, nor acting in a similar capacity, at the end of that financial year.

For the most recently completed fiscal year ended December 31, 2024, the only named executive officers of the Company were Lewis Black, Chief Executive Officer and Mark Gelmon, Chief Financial Officer (together, the "**Named Executive Officers**").

**Compensation Governance**

 ****

<u>Compensation and Corporate Governance Committee</u>

The Board has established the Compensation and Corporate Governance Committee (the "**CCG Committee**") to assist the Board in fulfilling its oversight responsibilities in relation to, among other things, executive compensation, Board compensation, broadly applicable compensation and benefit programs, and performance reviews of the Board, its committees and individual directors. The CCG Committee is currently comprised of Daniel D'Amato, Dr. Thomas Gutschlag, and Mark Trachuk (Chair), all of whom have been determined by the Board to be independent under section 1.4 of National Instrument 52-110 – *Audit Committees* ("**NI 52-110**"), other than Mr. D'Amato by virtue of $247,482 received by him in consulting fees for the most recently completed fiscal year ended December 31, 2024. All members of the CCG Committee have experience in matters of executive compensation that is relevant to their responsibilities as members of such committee by virtue of their respective professions and long-standing involvement with public companies. In addition, each member of the CCG Committee strives to keep abreast of trends and developments affecting executive compensation.

The Board has a written charter for the CCG Committee outlining its role and objectives, composition, meeting requirements and responsibilities. Pursuant to such charter, the specific duties and responsibilities of the CCG Committee include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) reviewing
 and recommending to the Board the compensation and benefits policies and plans (including
 incentive compensation plans) for the Company and its subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) annually
 evaluating the performance of the Chief Executive Officer of the Company and recommending
 to the Board his or her annual compensation package;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) annually
 reviewing and recommending to the Board the compensation packages for the other executive
 officers of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) reviewing
 and recommending to the Board any employment agreements with executive officers of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) annually
 reviewing and recommending to the Board the compensation of the directors of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) determining
 grants of Options under the Company's Stock Option Plan and recommending the same to
 the Board for approval; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) reviewing
 public disclosure of executive and director compensation.

The Board relies on the knowledge and experience of the members of the CCG Committee in carrying out its responsibilities and to recommend appropriate levels of compensation for the Company's executive officers. Under its Charter, the CCG Committee may also engage any external professional advisors, which it deems necessary to carry out its duties. However, to date, the CCG Committee has not retained any compensation consultant or advisor to assist the CCG Committee or the Board in determining compensation for the company's directors or executive officers.

A complete copy of the CCG Committee charter is available on the Company's website at <u>www.almonty.com</u>. Additional information with respect to the Board and the CCG Committee can be found in the sections entitled "*Corporate Governance – Board of Directors*" and "*Corporate Governance – Compensation and Corporate Governance Committee*", below.

<u>Executive Compensation Program Design and Philosophy</u>

The Company's executive compensation program is based on a pay-for-performance philosophy and is designed to deliver consistently strong performance for Shareholders. The Company's program is intended to achieve the following key objectives:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) aligning
 the interests of the Company's executive officers and directors with those of its Shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) attracting
 and retaining highly trained, experienced and committed executive officers and directors,
 whose performance will directly affect the Company's ongoing financial performance;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) motivating
 and rewarding executive officers and directors by linking incentive compensation to Shareholder
 value, the achievement of general business objectives, and financial and operational results.

The Company's compensation program is comprised of base salary, short-term incentive compensation and long-term incentive compensation. These components are discussed in more detail below. In setting the value of each of these components, the CCG Committee considers the performance of both the Company, as well as the individual performances of its executive officers for the period in question. The CCG Committee does not generally set specific performance objectives and so relies on its experience and judgment in determining compensation. However, the CCG Committee will generally have regard to, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Company's performance relative to its general goals and objectives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Company's performance relative to the mining industry as a whole, which, the Board,
 from time to time, determines on the basis of the size, scope and complexity of the other
 firms' businesses and operations compared to those of the Company, with regard to factors
 including the relative stage of development, production levels, past exploration and development
 success, revenue levels, total assets, free cash flow and capital expenditures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 relative competitiveness of the Company's compensation program when compared with the
 similar companies in the same industry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The
 Company's Share price and market capitalization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Developments
 in, and the stability of, the financial markets more generally.

The CCG Committee has not conducted a formal evaluation of the implications of the risks associated with the Company's compensation policies. Risk management is a general consideration of the CCG Committee when implementing the Company's compensation policies and the CCG Committee does not believe that the Company's compensation policies result in unnecessary or inappropriate risk taking, including risks that are likely to have a material adverse effect on the Company.

The Company maintains an Insider Trading Policy that prohibits insiders from engaging in short sales of securities of the Company, buying or selling puts, calls or other derivatives in respect of securities of the Company, or purchasing the Company's securities on margin as held in a margin account.

**Elements of the Company's Executive Compensation Program**

 ****

<u>Base Salaries</u>

Base salaries are considered to be an essential element in attracting and retaining highly qualified executive officers who are critical to the Company's success. An executive officer's base salary is intended to provide a fixed level of pay that reflects each executive officer's experience, primary duties and responsibilities. It also provides a foundation upon which performance based incentive compensation elements are assessed. Base salaries are established by taking into account individual performance, experience, level of responsibility and pay practices in the mining industry generally. Base salaries of all executive officers are reviewed annually by the CCG Committee and approved by the Board.

<u>Short-Term Incentive Compensation</u>

The Company may pay discretionary cash bonuses, which are intended to reward individual contribution to corporate performance over the course of the Company's most recently completed fiscal year ended December 31, 2024. Bonuses are paid at the discretion of the Board, on the recommendation of the CCG Committee, and neither the CCG Committee nor the Board has established any particular trigger or formula for determining when an award will be made under this plan, nor the quantum of any award that is made. Instead, the CCG Committee and the Board will generally consider all aspects of an individual executive's personal contribution to corporate performance and general objectives when making a determination.

<u>Long-Term Incentive Compensation – Security-Based Awards</u>

The Company's long-term incentive awards consist of awards under the Existing Plans, which provide a variable element of compensation that allows the Company to incentivize and retain its executive officers for their sustained contributions to the Company. These incentive awards reward performance and continued employment by an executive officer and provide executive officers with a strong link to long-term corporate performance and the creation of Shareholder value. The CCG Committee determines the amount and terms of any additional long-term incentive awards to be recommended to the Board.

**Stock Option Plan**

 ****

The Company has established the Stock Option Plan to provide long-term incentives to eligible directors, officers, employees and consultants. The Stock Option Plan was initially adopted by the Company on February 10, 2010 when the Company was a Capital Pool Company (as defined in the TSX Venture Exchange's Corporate Finance Manual), an amended and restated Stock Option Plan was initially approved by Shareholders at the Company's annual meeting of Shareholders on March 26, 2013, and a further amended and restated Stock Option Plan was approved by the Shareholders at the annual meeting of Shareholders held on March 22, 2016. As part of the Company's listing on the TSX, the Stock Option Plan was amended to bring certain provisions of the Stock Option Plan in-line with the requirements of the TSX, and to remove certain provisions that were required when the Shares were listed on the TSX Venture Exchange and to make certain other corresponding amendments. At an annual and special meeting of Shareholders held on June 30, 2022, Shareholders approved such amendments as well as all unallocated options, rights or other entitlements under the Stock Option Plan through to June 30, 2025. Pursuant to the requirements of the TSX, the unallocated options, rights or other entitlements under the Stock Option Plan are subject to re-approval by the Shareholders at the Meeting. Additional information with respect to the Stock Option Plan and the proposed re-approval at the Meeting can be found in the section "*Business to be Conducted at the Meeting – Approval of Unallocated Options under the Company's Stock Option Plan*" above.

Further, on March 7, 2025, the Board approved an additional amendment to the Stock Option Plan (and the plan was at such time renamed from the "Second Amended and Restated Incentive Stock Option Plan" to the "Third Amended and Restated Incentive Stock Option Plan") in order to: (i) provide a cashless exercise mechanism for holders of Options and make consequential amendments to effect same; (ii) reduce the amount of time during which a holder of an Option may exercise vested Options following the date on which such holder ceases to be engaged by the Company (for reasons other than death or just cause) from 30 days to seven (7) days; (iii) change the definition of "Consultant" to include individuals that will provide future services for a period of at least 12 continuous months; and (iv) make necessary housekeeping changes in connection with the foregoing. These amendments were made pursuant to the amendment provisions of the Stock Option Plan and were not subject to Shareholder approval.

The cashless exercise provision permits the Board, in its discretion, to grant to a holder of an Option who has the right to exercise such Option the alternative right (the "**Cashless Exercise Right**") to deal with such Option on a "cashless exercise" basis. Without limitation, the Board may determine in its discretion that such Cashless Exercise Right, if any, granted to a holder of Options in respect of any Options, entitles such holder to the right to surrender such Options, in whole or in part, to the Company upon giving notice in writing to the Company of the holder's intention to exercise such Cashless Exercise Right and the number of Options in respect of which such Cashless Exercise Right is being exercised, and, upon such surrender, to receive, as consideration for the surrender of such Options as are specified in the notice, that number of Shares, disregarding fractions, equal to the quotient obtained by: (a) subtracting the applicable exercise price of the Options from the Market Price (as defined in the Stock Option Plan), and multiplying the remainder by the number of Options specified in such notice; (b) subtracting from the amount obtained under clause (a) the amount of any applicable withholding taxes and other source deductions as determined by the Company in its sole discretion (unless such amounts are paid in cash by the holder of the Option at the time of exercise); and (c) dividing the net amount obtained under clause (b) by the Market Price.

The Board, on the recommendation of the CCG Committee, has the authority to grant Options to officers, directors, employees or consultants (or a corporation employing or wholly-owned by such persons), including consultants that provide investor relations activities to the Company, on such terms, limitations, conditions and restrictions as the Board deems necessary or advisable.

The Stock Option Plan is intended to advance the interests of the Company by encouraging the officers, directors, employees and consultants of the Company, and of its subsidiaries, to acquire Shares, thereby increasing their proprietary interest in the Company, encouraging them to remain associated with the Company and furnishing them with additional incentive in their efforts on behalf of the Company in the conduct of its affairs.

Ownership of Shares is intended to align the interests of the Company's executive officers, directors and other stakeholders with those of the Shareholders, as participation in the Stock Option Plan rewards overall corporate performance, as measured through the price of the Shares. The Stock Option Plan is also intended to assist in the recruitment and retention of key personnel. As with many similar companies within the same industry of the Company, the granting of Options forms an integral component of the Company's overall executive compensation package. The Stock Option Plan enables executive officers to develop and maintain an ownership interest in the Company.

Options are normally awarded upon the commencement of an executive officer's employment with the Company, with the size of the award determined by the level of the executive officer's responsibility within the Company. The Board, on the recommendation of the CCG Committee, has authority to make additional grants from time to time, and such awards are intended to ensure that the number of Options granted to any particular individual is commensurate with the individual's level of ongoing responsibility within the Company. The Board and CCG Committee also have regard to other factors when determining whether to make an additional award of Options to an individual under the Stock Option Plan, including the number of outstanding Options already granted to that individual, the value of such Options and the total number of Options available for grant under the Stock Option Plan. See the section "*Executive Compensation – Compensation Discussion and Analysis – Summary of the Stock Option Plan*" below for further information regarding the Stock Option Plan.

If the New EIP Resolution is approved at the Meeting: (a) the New EIP will supersede and replace the Stock Option Plan in respect of future awards, and no new awards will be available for grant under or granted under the Stock Option Plan; and (b) the Stock Option Plan will continue to exist only for the purpose of governing the terms of outstanding awards that have already been issued thereunder until such awards are exercised, settled, expire or are otherwise terminated or cancelled.

<u>Summary of the Stock Option Plan</u>

The below provides a summary of the terms of the Stock Option Plan and Options granted thereunder.

The Stock Option Plan is designed to provide additional flexibility to the Board and CCG Committee in implementing their compensation objectives.

Under the Stock Option Plan for eligible directors, officers, consultants and employees, the Company may grant Options to purchase Shares to such eligible directors, officers, consultants and employees as the Board deems advisable. The Stock Option Plan provides that the maximum number of Shares issuable upon the exercise of Options under the Stock Option Plan, together with all of the Company's other previously established or proposed stock options, stock option plans, employee stock purchase plans or any other compensation or incentive mechanisms involving the issuance or potential issuance of Shares, shall not exceed 10% of the issued and outstanding Shares (on a non-diluted basis) as at the date of grant of any Option under the Stock Option Plan. As a result, should the Company issue additional Shares in the future, provided that the Stock Option Plan has not been superseded and replaced by the New EIP, the number of Shares issuable under the Stock Option Plan will increase accordingly. As of the date of this Circular and pursuant to the Stock Option Plan, the maximum number of Shares issuable upon exercise of outstanding Options is 22,827,000 and 1,390,413 further Options remain issuable under the Stock Option Plan.

The Stock Option Plan is considered an "evergreen" plan, since the Shares covered by Options which have been exercised shall be available for subsequent grants under the Stock Option Plan and the number of Options available to grant increases as the number of issued and outstanding Shares increases. The exercise price shall be set by the Board and shall not be less than the market price of the Shares at the time of grant of the Option. The Board sets the terms of the Options, provided that such term shall not exceed ten (10) years. The Board also approves the vesting period or periods of Options granted under the Stock Option Plan. Under the rules of the TSX, unallocated option entitlements under a stock option plan that does not provide for a fixed number of shares for issuance, such as the Company's Stock Option Plan, must be specifically approved every three years by Shareholders (and is being put forth at the Meeting for such approval, provided the New EIP Resolution is not approved by Shareholders – see "*Business to be Conducted at the Meeting – Approval of Unallocated Options under the Company's Stock Option Plan*" above). The Company does not provide financial assistance to participants under the Stock Option Plan to facilitate payment of the exercise price of Options.

As at the date hereof, Options to acquire 22,827,000 Shares (representing 8.13% of the currently issued and outstanding Shares) have been granted and are outstanding pursuant to the Stock Option Plan, and 276,000 Shares have been issued upon exercise of Options previously granted under the Stock Option Plan. Options to acquire Shares were granted under the Stock Option Plan during the most recently completed fiscal year ended December 31, 2024 to: (i) the Named Executive Officers (2,050,000 Options on April 30, 2024 (as to 1,000,000 Options) and July 5, 2024 (as to 1,050,000 Options)); (ii) directors (2,700,000 Options on January 9, 2024 (as to 1,000,000 Options) and July 5, 2024 (as to 1,700,000 Options)); and (iii) other key employees/consultants (955,000 Options on May 17, 2024 (as to 275,000 Options), July 5, 2024 (as to 280,000 Options), August 16, 2024 (as to 200,000 Options) and November 18, 2024 (as to 200,000 Options)). Subsequent to the fiscal year ended December 31, 2024, Options to acquire Shares were granted under the Stock Option Plan to: (i) Named Executive Officers (Nil); (ii) directors (Nil); and (iii) other key employees/consultants (1,122,000 Options on February 4, 2025 (as to 250,000 Options), February 24, 2025 (as to 200,000 options), March 7, 2025 (as to 522,000 Options) and March 14,

2025 (as to 150,000 Options)).

The annual burn rate of Options in respect of: (i) the most recently completed fiscal year ended December 31, 2024 was 2.25%; (ii) fiscal 2023 was 1.15%; and (iii) fiscal 2022 was 3.03%. "Annual burn rate" is the number of Options granted under the Stock Option Plan during the applicable fiscal year divided by the weighted average number of Shares outstanding for the applicable fiscal year, as required to be calculated and disclosed pursuant to Sections 613(p) and 613(d)(iii) of the TSX Company Manual.

The Stock Option Plan also has the following terms, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. the
 exercise price for each Option granted (following the listing of the Shares on the TSX on
 June 1, 2018) shall be the "market price" on the date the Option is granted.
 The "market price" is equal to (i) the volume weighted average price at which
 the Shares have traded on the TSX for the five trading days immediately preceding the date
 on which the Option is approved by the Board; or (ii) for the purpose of determining the
 number of Shares issuable upon exercise of Options, including a cashless exercise, the closing
 price of the Shares on the TSX on the date a notice of exercise is received by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. the
 Board fixes the vesting terms it deems appropriate when granting Options;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. the
 Stock Option Plan does not provide for a maximum number of Shares which may be issued to
 an individual pursuant to the Stock Option Plan and any other security-based compensation
 arrangement (expressed as a percentage or otherwise) except with respect to insiders as described
 below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Options
 terminate within a period of time following an optionee ceasing to be a director, officer,
 consultant or employee of the Company or of a subsidiary of the Company, being the earlier
 of the original expiry date and (i) the date of termination, in the case of termination for
 just cause; (ii) one year in the case of death; and (iii) seven (7) days in all other cases,
 subject to the discretion of the Board. Any Option not vested at the date of such termination
 shall be immediately cancelled;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. the
 number of Shares issuable to insiders of the Company at any time pursuant to all of the Company's
 security-based compensation arrangements shall not exceed 10% of the outstanding Shares on
 a non-diluted basis and the number of Shares issued to insiders of the Company, within any
 one year period, pursuant to all of the Company's security-based compensation arrangements,
 shall not exceed 10% of the outstanding Shares on a non- diluted basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Options
 are not transferable otherwise than by will or by the laws of descent and distribution, and
 Options are exercisable, during the holder's lifetime, only by the holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. if
 the date on which an Option expires occurs during or within nine (9) business days after
 the last day of a trading black-out period imposed pursuant to the Company's insider
 trading policy, then the expiry date of such Option shall be the date that is ten (10) business
 days following the date of expiry of the trading black-out period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. accelerated
 vesting of Options under the Stock Option Plan at the Board's discretion in the event
 of: (i) a Take-Over Bid or Issuer Bid (as such terms are defined in the Stock Option Plan)
 (other than a "normal course" Issuer Bid) made for all or any of the issued and
 outstanding Shares; or (ii) a Change of Control (as defined in the Stock Option Plan) of
 the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. schedules
 for the form of agreement for Options issued, as well as a form for optionees to use to exercise
 Options.

The Board may, with TSX approval, at any time amend, modify or terminate the Stock Option Plan if and when it is advisable in the discretion of the Board, except that Shareholder approval is required in respect of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any
 amendments to the maximum number of Shares reserved for issuance under the Stock Option Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any
 amendment which reduces the exercise price of an Option that is held by an insider of the
 Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any
 amendment extending the term of an Option held by an insider of the Company beyond its original
 expiry date except as otherwise permitted by the Stock Option Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any
 amendment which increases the limit on grants of Options to insiders of the Company under
 the Stock Option Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the
 inclusion in the Stock Option Plan of amendment provisions granting additional powers to
 the Board to amend the Stock Option Plan or Option entitlements thereunder without Shareholder
 approval; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) amendments
 required to be approved by Shareholders under applicable law (including, without limitation,
 TSX policies and securities laws).

Where Shareholder approval is sought for amendments under subsections (b), (c) or (d) above, the votes attached to Shares held directly or indirectly by insiders of the Company benefiting from the amendment must be excluded.

Other than as specified above, the Board may approve all other amendments to the Stock Option Plan or Options granted under the Stock Option Plan. Without limiting the generality of the foregoing, the following types of amendments would not require Shareholder approval:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) amendments
 of a "housekeeping" or ministerial nature, including any amendment for the purpose
 of curing any ambiguity, error or omission in the Stock Option Plan or to correct or supplement
 any provision of the Stock Option Plan that is inconsistent with any other provision of the
 Stock Option Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) amendments
 necessary to comply with the provisions of applicable law (including, without limitation,
 TSX policies and securities laws);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 addition or modification of a cashless exercise feature, payable in securities or cash of
 the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) amendments
 respecting administration of the Stock Option Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any
 amendment to the vesting provisions of the Stock Option Plan or any Option;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any
 amendment to the early termination provisions of the Stock Option Plan or any Option, whether
 or not such Option is held by an insider of the Company, provided such amendment does not
 entail an extension beyond the original expiry date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) amendments
 necessary to suspend or terminate the Stock Option Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any
 other amendment, whether fundamental or otherwise, not requiring Shareholder approval under
 applicable law (including, without limitation, TSX policies and securities laws).

**Summary of the 2020 Restricted Share Unit Plan**

 ****

The Company adopted the RSU Plan in 2020, a copy of which is attached to the Company's management information circular filed on the Company's profile on SEDAR+ at <u>www.sedarplus.ca</u> on May 23, 2024. On June 28, 2024, Shareholders approved the unallocated entitlements under the Company's RSU Plan through to June 28, 2027. The purpose of the RSU Plan is to enhance the Company's ability to attract and retain talented employees, to promote an alignment of interests between such employees and the Shareholders of the Company and to facilitate Share ownership in the Company by its employees.

The annual burn rate of RSUs in respect of: (i) the most recently completed fiscal year ended December 31, 2024 was 0.83%; (ii) fiscal 2023 was 0.198%; and (iii) fiscal 2022 was 0.141%. "Annual burn rate" is the number of RSUs granted under the RSU Plan during the applicable fiscal year divided by the weighted average number of Shares outstanding for the applicable fiscal year, as required to be calculated and disclosed pursuant to Sections 613(p) and 613(d)(iii) of the TSX Company Manual.

If the New EIP Resolution is approved at the Meeting: (a) the New EIP will supersede and replace the RSU Plan in respect of future awards, and no new awards will be available for grant under or granted under the RSU Plan; and (b) the RSU Plan will continue to exist only for the purpose of governing the terms of outstanding awards that have already been issued thereunder until such awards are exercised, settled, expire or are otherwise terminated or cancelled.

<u>Award of RSUs</u>

Pursuant to the RSU Plan, the CCG Committee, or such other committee or persons designated by the Board for purposes of the RSU Plan may from time to award RSUs to Eligible Directors or Eligible Employees (collectively, "**Participants**"). "**Eligible Directors**" are the directors of the Company or any affiliate of the Company, and "**Eligible Employees**" are employees (including employees who are officers or directors) of the Company or any affiliate of the Company, whether or not they have a written employment contract with the Company, determined by the Board, upon recommendation of the CCG Committee, as employees eligible for participation in the RSU Plan. Eligible Employees may also include Service Providers eligible for participation in the RSU Plan as determined by the Board. For purposes of the RSU Plan, "**Service Provider**" means any person or company engaged by the Company or an affiliate to provide services for an initial, renewable or extended period of 12 months or more.

In respect of each award of RSUs, the CCG Committee will designate, in is sole discretion, if the RSUs are to be settled in cash or Shares (or in part Shares or cash). RSUs settled in cash are hereinafter referred to as "**Cash Units**" and RSUs settled in Shares are referred to as "**Share Units**".

<u>Number of Common Shares Available for Issuance</u>

Under the RSU Plan, the aggregate number of Shares that may be reserved for issuance under the RSU Plan on the award of RSUs, together with any other security-based compensation arrangements, at any particular time shall not exceed 10% of the issued and outstanding Shares. If a Participant forfeits his or her RSUs, the applicable underlying Shares in respect of such forfeited RSUs become available for re- issuance under the RSU Plan.

The aggregate number of Shares issued to insiders of the Company within any 12-month period, or issuable to insiders of the Company at any time, under the RSU Plan or when combined with any other security- based compensation arrangements of the Company, may not exceed 10% of the total number of issued and outstanding Shares at such time.

<u>Rights and Restrictions Attached to Restricted Share Units</u>

Participants do not have any rights as a shareholder of the Company in respect of the RSUs. Accordingly, Participants are not entitled to vote the Shares underlying Share Units. RSUs are not assignable by a Participant.

<u>Resignation or Other Cessation of Employment</u>

If the employment of a Participant is terminated for any reason other than death or disability, the Participant forfeits all right, title and interest with respect to any unvested RSUs awarded to the Participant under the RSU Plan and such RSUs will immediately expire and be cancelled on such termination date, unless otherwise determined by the CCG Committee. Any vested RSUs will continue to be governed by the RSU Plan (see "*Settlement*" below). If a Participant dies or becomes disabled, his or her RSUs will vest immediately.

<u>Vesting and Maximum Term</u>

RSUs will vest in accordance with the terms set by the CCG Committee at the time RSUs are awarded.

The maximum term of the RSUs (the "**Latest Settlement Date**") shall be a date in the calendar year in which the third anniversary date of an award date occurs, as determined and specified by the CCG Committee, provided that the Latest Settlement Date specified shall be no later than November 30th of such calendar year, provided further that the CCG Committee may in its discretion extend the Latest Settlement Date to a date later than November 30th but no later than December 31st in such calendar year.

<u>Change in Control</u>

In the event there is a change of control of the Company (as defined in the RSU Plan) and the employment of a Participant is terminated without cause within 12 months after the change of control, the Participant's RSUs will vest on the date of termination of employment.

<u>Settlement</u>

For Share Units, the number of Shares received by a Participant upon vesting shall be equal to the number of such RSUs vested on the settlement date. Also, at any time prior to the settlement date, a Participant may request that his or her Share Units be settled in cash, and the CCG Committee may, in its absolute discretion, agree to settle such RSUs in cash.

For the purpose of settling Cash Units, the amount of cash payable shall be determined by multiplying the number of such RSUs by the Fair Market Value (as hereinafter defined) on the date a determination is required, namely the earliest of: (a) the date of the Participant's death or disability; (b) the last day of employment of the Participant; (c) the settlement date(s) set out in any grant instrument; or (d) the Latest Settlement Date. The value will be paid to a Participant net of all applicable taxes and other amounts required to be withheld determined in the sole discretion of the Company, within 30 days of the date the Fair Market Value of the applicable RSUs was determined.

<u>Dividend Equivalents</u>

In the event a dividend becomes payable on the Shares, on the payment date for such dividend, each Participant's account shall be credited with a number of RSUs (including fractional RSUs) equal to: (a) the amount of the dividend paid per Share multiplied by the number of RSUs credited to the Participant's account as of the record date for payment of the dividend, divided by (b) the weighted average trading price for the Shares on the TSX on the five (5) trading days prior to that date (the "**Fair Market Value**") as of the date for payment of the dividend. Subject to the RSU Plan, RSUs credited to a Participant's account will generally vest at the same time as the related RSUs vest and will generally be settled in the same form, in cash or Shares, as the related RSUs.

<u>Amendment of the RSU Plan and RSUs awarded under the RSU Plan</u>

The Board may amend or terminate the RSU Plan, or any RSUs awarded under the RSU Plan, at any time and in such manner and to such extent as it deems advisable. Any amendments shall be contingent on approval of the Shareholders to the extent required by the RSU Plan, or as required by applicable law or by any stock exchange on which Shares are listed. Shareholder approval is required for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an
 increase in the maximum number of Shares reserved for issuance under the RSU Plan or a change
 from a fixed maximum number of Shares to a fixed percentage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any
 amendment to the amendment provisions of the RSU Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any
 amendment to remove or exceed the insider participation limit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any
 amendment extending the term of any award beyond its Latest Settlement Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any
 amendment to the assignment provisions.

The Board will not require Shareholder approval to make other amendments to the RSU Plan, or any RSUs awarded under the RSU Plan, including (i) amendments of a "housekeeping" nature such as correcting typographical or clerical errors or adding clarifying statements to ensure the intent and meaning of the RSU Plan, or of a grant under the RSU Plan, is properly expressed; (ii) amendments to satisfy changes in applicable tax law; (iii) amendments to outstanding RSUs in the event of certain corporate transactions; and (iv) the addition of covenants for the protection of Participants.

**B.** **PERFORMANCE GRAPH** 

The following graph compares the yearly percentage change in the cumulative total return on the Shares with the cumulative total return of the S&P/TSX Capped Composite Index. The graph indicates the relative values for each of the past five fiscal years, assuming that $100 was invested on the first day of the five- year period, being January 1, 2020 taking into consideration that the Company changed its fiscal year end from September to December in 2020.

![](ex4-6_003.jpg)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **January 1,**<br> **2020** | **Dec 2020** | **Dec 2021** | **Dec 2022** | **Dec 2023** | **Dec 2024** |
| Almonty Industries Inc. | 100 | 152.38 | 211.90 | 161.90 | 128.57 | 216.67 |
| S&P/ TSX Capped Composite Index | 100 | 105.60 | 132.10 | 124.38 | 138.99 | 169.09 |

---

The trend shown by the above performance graph does not directly correlate to the compensation received by the Company's named executive officers over the relevant period. The Company's cumulative total return reflects both operational and financial performance within the Company's control as well as the impact of economic, industry, and market factors that are beyond the Company's control. The CCG Committee and the Board evaluate performance by several factors, and short-term changes in the market price of the Common Shares are only one consideration.

**C.** **SUMMARY COMPENSATION TABLE** 

The following table sets forth the compensation earned for each of the Company's three most recently completed financial years ended December 31, 2024, December 31, 2023 and December 31, 2022 by the Company's Named Executive Officers.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and principal position** | **Year ended** | **Salary ($)** | **Share- based awards**<br> **(1)**<br> **($)** | **Option- based awards**<br> **(1)**<br> **($)** | **Pension value ($)** | **All other compensation ($)** | **Total compensation ($)** |
| **Lewis Black** | Dec. 31, 2024 | 866645 | 392595 | 714055 Nil | N/A | Nil | 1973295 |
| President & Chief Executive Officer, Director | Dec. 31, 2023 | 835500 | 329782 | 223182 Nil | N/A | Nil | 1438464 |
|  | Dec. 31, 2022 | 516667 | 453743 | 2802868 Nil | N/A | 531667 | 4304945 |
| **Mark Gelmon<sup>(2)</sup>** | Dec. 31, 2024 | 240000 | Nil | 18222 Nil | N/A | Nil | 258222 |
| Chief Financial Officer, Former Director | Dec. 31, 2023 | 240000 | Nil | 29757 Nil | N/A | Nil | 269757 |
|  | Dec. 31, 2022 | 240000 | Nil | 25480 Nil | N/A | Nil | 265480 |

---

Notes:

(1) The
 Company accounts for Options and RSUs using the fair value based method and the fair value
 of the award on the grant date has been determined using the Black-Scholes fair value option
 pricing model and the following assumptions for the fiscal year ended December 31, 2024:
 (i) weighted average fair value per Option: $0.36; (ii) weighted average share price: $0.66;
 (iii) weighted average exercise price: $0.66; (iv) expected volatility: 61.75%; (v) dividend
 yield: Nil%; (vi) risk free interest rate: 3.49%; and (vii) weighted average expected life
 in years: 5.

(2) Mr.
 Gelmon does not receive any compensation directly from the Company. All compensation paid
 by the Company in connection with the services of Mr. Gelmon is paid to iO Corporate Services
 Ltd., a Company which provides secretarial and accounting services.

**D.** **INCENTIVE PLAN AWARDS** 

**Outstanding Option-Based Awards and other Compensation Securities**

 ****

The following table sets forth all compensation securities outstanding at the end of the most recently completed fiscal year ended December 31, 2024 for each of the Named Executive Officers.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Option-based Awards** | **Option-based Awards** | **Option-based Awards** | **Option-based Awards** | **Share-based Awards** | **Share-based Awards** | **Share-based Awards** |
| <br>**Name** | <br>**Number of Shares underlying unexercised Options (#)**  | <br>**Option exercise price ($)**  | **Option expiration date** | <br>**Value of unexercised in-the-money Options ($)<sup>(1)</sup>**  | **Number of Shares or units that have not vested (#)** | <br>**Market or payout value of Share- based awards that have not vested ($)**  | **Market or payout value of vested Share- based awards not paid out or distributed ($)** |
| **Lewis Black** | 100000 | 0.65 | Mar 28, 2025 | 26000 | N/A | N/A | 920000 |
| President & | 300000 | 0.80 | Dec 23, 2025 | 33000 | N/A | N/A | 208000 |
| Chief Executive <br>Officer, | 250000 | 0.94 | Aug 18, 2026 | Nil | 1,000,000 <br>RSUs | 660000 | 330000 |
| Director | 5500000 | 0.87 | Jul 21, 2027 | 220000 | N/A | N/A | N/A |
|  | 500000 | 0.33 | Aug 17, 2027 | 290000 | N/A | N/A | N/A |
|  | 100000 | 0.87 | Jun 28, 2028 | 4000 | N/A | N/A | N/A |
|  | 750000 | 0.52 | Nov 16, 2028 | 292500 | N/A | N/A | N/A |
|  | 1000000 | 0.63 | Apr 30, 2029 | 280000 | N/A | N/A | N/A |
|  | 1000000 | 0.66 | Jul 4, 2029 | 250000 | N/A | N/A | N/A |
| **Mark Gelmon** | 50000 | 0.87 | Jul 21, 2027 | 2000 | N/A | N/A | N/A |
| Chief Financial | 50000 | 0.33 | Aug 17, 2027 | 29000 | N/A | N/A | N/A |
| Officer, <br>Former | 50000 | 0.87 | Jun 28, 2028 | 2000 | N/A | N/A | N/A |
| Director | 100000 | 0.52 | Nov 16, 2028 | 39000 | N/A | N/A | N/A |
|  | 50000 | 0.66 | Jul 4, 2029 | 12500 | N/A | N/A | N/A |

---

Notes:

(1) The
 value at December 31, 2024 is calculated by determining the difference between the closing
 price on the TSX of the Shares at December 31, 2024 ($0.91 per Share) and the exercise price
 of the Options.

**Incentive Plan Awards – Value Vested or Earned During the Fiscal Year Ended December 31, 2024**

 ****

The following table sets out the aggregate dollar value of Options vested that would have been realized if the Options were exercised on the date vested or earned. The value is based on the difference between the Option exercise price and the market price of the underlying security of the date of vesting during the most recently completed fiscal year ended December 31, 2024 for each of the Named Executive Officers.

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Option-based awards – Value vested during the year ($)** | **Share-based awards – Value vested during the year ($)** | **Non-equity incentive plan compensation – Value earned during the year ($)** |
| **Lewis Black**<br> President & Chief Executive Officer, Director | $**Nil(2)(3)** | $**392595** | $<br>**Nil**  |
| **Mark Gelmon**<br> Chief Financial Officer, Former Director | $&nbsp;&nbsp;**Nil<sup>(3)</sup>**  | $<br>**Nil**  | $<br>**Nil**  |

---

Notes:

(1) See
 "*Summary of the Stock Option Plan*" and "*Summary of the 2020 Restricted Share Unit Plan*" above for more information concerning the Company's Existing
 Plans and the terms of Options, rights and entitlements granted thereunder.

(2) The
 vesting date of the Options noted above was the date of grant, being April 30, 2024. The
 market price on the TSX of the Shares on the date of grant was $0.63 per Share.

(3) The
 vesting date of the Options noted above was the date of grant, being July 5, 2024. The market
 price on the TSX of the Shares on the date of grant was $0.66 per Share.

**E.** **EMPLOYMENT, CONSULTING AND MANAGEMENT AGREEMENTS** 

Other than as described below, as of the date of this Circular, the Company does not have any employment contracts, agreements or arrangements with the Named Executive Officers to compensate them in the event of their resignation, retirement, termination or in the event of a change of control of the Company.

**Lewis Black, Chairman, President and Chief Executive Officer**

 ****

Effective January 1, 2023, the Company entered into an employment agreement with Mr. Black, as President and Chief Executive Officer of the Company. Under this agreement, Mr. Black is entitled to (i) an annual salary of US$600,000 per year, increasing annually by US$25,000 on January 1, 2024 and January 1, 2025, as may be adjusted by the Board from time to time (the "**Base Salary**"), (ii) standard benefits made available by the Company to its executives, and (iii) participation in the Stock Option Plan. The agreement also contains certain confidentiality and non-competition provisions for the benefit of the Company.

If Mr. Black's employment is terminated for cause, by resignation or death, Mr. Black will receive his unpaid Base Salary and any other benefits earned through the termination date. If Mr. Black's employment is terminated without cause, then Mr. Black will be entitled to receive (i) his unpaid Base Salary and any other benefits earned through the termination date; (ii) a separation package of 12 months of Mr. Black's current Base Salary; and (iii) continuation of the benefits plan for 12 months following the termination date. Mr. Black's termination entitlements under the Company's Stock Option Plan and any grant documents shall be governed fully by the terms and conditions of such Stock Option Plan and any grant documents.

For the purposes of Mr. Black's employment agreement, a change of control shall be considered a termination without cause and without prior notice entitling Mr. Black to a separation package and continuation of certain benefits. The separation package provides 12 months of Mr. Black's current base salary payable in one lump sum within 5 business days of the termination date and also entitling Mr. Black to a continuation of the benefits plan for 12 months following the termination date.

**Estimated Payments for Named Executive Officers upon Termination of Employment or Change of Control**

 ****

The following table sets out the incremental payments (but excluding any statutory benefits) that would be made to each Named Executive Officer, at, following, or in connection with each of the termination scenarios below as if the triggering event had occurred on December 31, 2024.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Type of Payment** | **Termination without cause ($)** | **Termination without cause ($)** | **Resignation ($)** | **Death ($)** | **Change of Control ($)** |
| **Lewis Black** President and Chief Executive Officer | Cash Severance Nil | US$ | 650000<sup>(1)</sup> | Nil | Nil | 650000<sup>(1)</sup> |
|  | Options<sup>(2)</sup> Nil |  | Nil | $120000 | $120000 | $120000 |

---

Notes:

(1) Severance
 is governed by the respective Named Executive Officer's employment agreement.

(2) The
 values shown represent the in-the-money amount of Options for which vesting would be accelerated.
 The closing price of the Shares on the TSX on December 31, 2024 was $0.91.

**F.** **PENSION PLAN BENEFITS** 

The Company does not have a pension plan or similar benefit program.

**<u>DIRECTOR COMPENSATION</u>**

**A.** **DIRECTOR COMPENSATION TABLE** 

During the most recently completed fiscal year ended December 31, 2024, the directors earned compensation for serving as members of the Board as set out in the following table.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name<sup>(1)</sup>** | **Share- based awards <br> ($)** | **Option- based awards<br> ($)<sup>(2)</sup>** | **Pension value <br> ($)** | **All other compensation<br> ($)** |  | **Total <br> ($)** |
| **Daniel D'Amato** Nil | 140155 | 145782 Nil | N/A | 247482 | <sup>(3)</sup> | 533419 |
| **Mark Trachuk** Nil | 17778 | 182228 Nil | N/A | N/A |  | 200006 |
| **Dr. Thomas Gutschlag** Nil | 17778 | 91114 Nil | N/A | N/A |  | 108892 |
| **Andrew Frazer** Nil | Nil | 458382 Nil | N/A | 283045 | (4) | 741427 |
| **David Hanick** Nil | Nil | 54668 Nil | N/A | N/A |  | 54668 |
| **Gustave F. Perna<sup>(5)</sup>** Nil | Nil | Nil | Nil | Nil |  | Nil |
| **Total ($)** Nil | 175711 | 932174 Nil | N/A | 530527 |  | 1638412 |

---

Notes:

(1) Information
 regarding compensation to Lewis Black is disclosed under "*Executive Compensation – Summary Compensation Table*" and "*Executive Compensation – Incentive Plan Awards* ", above. Mr. Black does not and will not receive additional
 compensation for serving as Chair of the Board.

(2) The
 Company accounts for Options and RSUs using the fair value based method and the fair value
 of the award on the grant date has been determined using the Black-Scholes fair value option
 pricing model and the following assumptions for the fiscal year ended December 31, 2024:
 (i) weighted average fair value per option: $0.36 (ii) weighted average share price: $0.66;
 (iii) weighted average exercise price: $0.66; (iv) expected volatility: 61.75%; (v) dividend
 yield: Nil%; (vi) risk free interest rate: 3.49%; and (vii) weighted average expected life
 in years: 5.

(3) Represents
 consulting fees paid to Mr. D'Amato.

(4) IPO
 and private placement finder fees paid to RM Corporate Finance Pty Ltd., a Company of which
 Mr. Frazer is the founder and managing director.

(5) General
 Perna was appointed as a director on March 20, 2025.

**B.** **INCENTIVE PLAN AWARDS** 

**Outstanding Option-Based Awards and other Compensation Securities**

 ****

The following table sets forth all compensation securities outstanding at the end of the most recently completed fiscal year ended December 31, 2024 for each of the Company's directors.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Option-based Awards** | **Option-based Awards** | **Option-based Awards** | **Option-based Awards** | **Share-based Awards** | **Share-based Awards** | **Share-based Awards** |
| <br>**Name** |<br><br><br>**Number of**<br>**Shares**<br>**underlying**<br>**unexercised**<br>**Options (#)** |<br><br><br><br>**Option**<br>**exercise**<br>**price ($)** |<br><br><br><br>**Option**<br>**expiration**<br>**date** |<br><br><br>**Value of**<br>**unexercised**<br>**in-the-**<br>**money**<br>**Options ($)** | <br>**Number of**<br>**Shares or**<br>**units that**<br>**have not**<br>**vested (#)** | <br>**Market or**<br>**payout**<br>**value of**<br>**Share-**<br>**based**<br>**awards**<br>**that have**<br>**not vested**<br>**($)** | **Market or**<br>**payout**<br>**value of**<br>**vested**<br>**Share-**<br>**based**<br>**awards not**<br>**paid out or**<br>**distributed**<br>**($)** |
| **Daniel** | 100000 | 0.65 | Mar 28, 2025 | 26000 | N/A | N/A | 87000 |
| **D'Amato** | 500000 | 0.80 | Dec 23, 2025 | 55000 | N/A | N/A | 26000 |
| Director | 100000 | 0.94 | Aug 18, 2026 | Nil | 400,000 <br>RSUs | 264000 | 132000 |
|  | 100000 | 0.98 | Aug 24, 2026 | Nil | N/A | N/A | N/A |
|  | 100000 | 0.87 | Jul 21, 2027 | 4000 | N/A | N/A | N/A |
|  | 200000 | 0.33 | Aug 17, 2027 | 116000 | N/A | N/A | N/A |
|  | 100000 | 0.87 | Jun 28, 2028 | 4000 | N/A | N/A | N/A |
|  | 150000 | 0.52 | Nov 16, 2028 | 58500 | N/A | N/A | N/A |
|  | 400000 | 0.66 | Jul 4, 2029 | 100000 | N/A | N/A | N/A |
|  | 100000 | 0.70 | Oct 27, 2030 | 21000 | N/A | N/A | N/A |
| **Mark** | 100000 | 0.65 | Mar 28, 2025 | 26000 | N/A | N/A | 87000 |
| **Trachuk** | 100000 | 0.94 | Aug 18, 2026 | Nil | N/A | N/A | N/A |
| Director | 100000 | 0.98 | Aug 24, 2026 | Nil | N/A | N/A | N/A |
|  | 350000 | 0.87 | Jul 21, 2027 | 14000 | N/A | N/A | N/A |
|  | 200000 | 0.33 | Aug 17, 2027 | 116000 | N/A | N/A | N/A |
|  | 100000 | 0.87 | Jun 28, 2028 | 4000 | N/A | N/A | N/A |
|  | 550000 | 0.52 | Nov 16, 2028 | 214500 | N/A | N/A | N/A |
|  | 500000 | 0.66 | Jul 4, 2029 | 125000 | N/A | N/A | N/A |
|  | 100000 | 0.70 | Oct 27, 2030 | 21000 | N/A | N/A | N/A |
| **Dr.** | 100000 | 0.80 | Dec 23, 2025 | 11000 | N/A | N/A | 87000 |
| **Thomas Gutschlag**<br> Director | 100000 | 0.98 | Aug 24, 2026 | Nil | N/A | N/A | N/A |
|  | 150000 | 0.87 | Jul 21, 2027 | 6000 | N/A | N/A | N/A |
|  | 200000 | 0.33 | Aug 17, 2027 | 116000 | N/A | N/A | N/A |
|  | 100000 | 0.87 | Jun 28, 2028 | 4000 | N/A | N/A | N/A |
|  | 200000 | 0.52 | Nov 16, 2028 | 78000 | N/A | N/A | N/A |
|  | 250000 | 0.66 | Jul 4, 2029 | 62500 | N/A | N/A | N/A |
|  | 100000 | 0.70 | Oct 27, 2030 | 21000 | N/A | N/A | N/A |
| **Andrew** | 200000 | 0.94 | Aug 18, 2026 | Nil | N/A | N/A | N/A |
| **Frazer** | 175000 | 0.87 | Jul 21, 2027 | 7000 | N/A | N/A | N/A |
| Director | 400000 | 0.52 | Nov 16, 2028 | 156000 | N/A | N/A | N/A |
|  | 1000000 | 0.56 | Jan 9, 2029 | 350000 | N/A | N/A | N/A |
|  | 400000 | 0.66 | Jul 4, 2029 | 100000 | N/A | N/A | N/A |
| **David** | 200000 | 0.52 | Nov 16, 2028 | 78000 | N/A | N/A | N/A |
| **Hanick** | 150000 | 0.66 | Jul 4, 2029 | 37500 | N/A | N/A | N/A |
| Director | 200000 | 0.87 | Jun 26, 2025 | 8000 | N/A | N/A | N/A |
|  | 100000 | 0.70 | Jun 26, 2025 | 21000 | N/A | N/A | N/A |
| **Gustave F. Perna<sup>(3)</sup>** | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Director |  |  |  |  |  |  |  |

---

Notes:

(1) Information
 regarding Option- and Share-based awards to Lewis Black is disclosed under "*Executive Compensation – Summary Compensation Table*" and "*Executive Compensation – Incentive Plan Awards* ", above. Mr. Black does not and will not receive
 additional compensation for serving as Chair of the Board.

(2) The
 value at December 31, 2024 is calculated by determining the difference between the closing
 price on the TSX of the Shares at December 31, 2024 ($0.91 per Share) and the exercise price
 of the Options or RSUs.

(3) General
 Perna was appointed as a director on March 20, 2025.

**Incentive Plan Awards – Value Vested or Earned During the Year Ended December 31, 2024**

 ****

The following table sets out the aggregate dollar value of Options vested that would have been realized if the Options were exercised on the date vested or earned. The value is based on the difference between the Option exercise price and the market price of the underlying security of the date of vesting during the most recently completed fiscal year ended December 31, 2024 for each of the directors.

---

| | |
|:---|:---|
| **Name** | **Share-based awards – Value vested during the year ($)** |
| **Daniel D'Amato** Nil<sup>(3)</sup> | 140155 Nil |
| **Mark Trachuk** Nil<sup>(3)</sup> | 17778 Nil |
| **Dr. Thomas Gutschlag** Nil<sup>(3)</sup> | 17778 Nil |
| **Andrew Frazer** Nil<sup>(2)(3)</sup> | Nil |
| **David Hanick** Nil<sup>(3)</sup> | Nil |
| **Gustave F. Perna<sup>(4)</sup>** Nil | Nil |

---

Notes:

(1) Information
 regarding Option- and Share-based awards to Lewis Black is disclosed under "*Executive Compensation – Summary Compensation Table*" and "*Executive Compensation – Incentive Plan Awards* ", above. Mr. Black does not and will not receive
 additional compensation for serving as Chair of the Board.

(2) The
 vesting date of the Options noted above was the date of grant, being January 9, 2024. The
 market price on the TSX of the Shares on the date of grant was $0.56 per Share.

(3) The
 vesting date of the Options noted above was the date of grant, being July 5, 2024. The market
 price on the TSX of the Shares on the date of grant was $0.66 per Share.

(4) General
 Perna was appointed as a director on March 20, 2025.

**Directors' and Officers' Insurance**

 ****

During the most recently completed fiscal year ended December 31, 2024, the Company participated in directors' and officers' liability insurance coverage of $10,000,000 for the benefit of all the directors and officers of the Company in such capacity and as a group. The premium cost paid by the Company for directors' and officers' liability insurance for this period was $99,000. The coverage contains a deductible of $500,000, payable by the Company for any loss.

**<u>CORPORATE GOVERNANCE</u>**

The following discussion of the Company's corporate governance policies and practices is provided pursuant to the disclosure requirements applicable to it as set out in applicable securities laws and the policies of the TSX. The Company is not a "venture issuer" for purposes of these laws and policies and it is required to provide this disclosure relating to its corporate governance policies and practices annually.

National Policy 58-201 – *Corporate Governance Guidelines* ("**NP 58-201**") sets out guidelines for effective corporate governance. These guidelines deal with matters such as the constitution and independence of corporate boards, their functions, the effectiveness and education of board members and other items dealing with sound corporate governance. National Instrument 58-101 – *Disclosure of Corporate Governance Practices* ("**NI 58-101**") requires that if management of an issuer solicits proxies from its securityholders for the purpose of electing directors, specified disclosure of the corporate governance practices must be included in its management information circular.

The Company and the Board recognize the importance of corporate governance to the effective management of the Company and to the protection of its employees and Shareholders. The Company's approach to significant issues of corporate governance is designed with a view to ensuring that the business and affairs of the Company are effectively managed so as to enhance Shareholder value. The Company's corporate governance practices are in compliance with applicable Canadian requirements. The Company continues to monitor developments in Canada with a view to further revising its governance policies and practices, as appropriate.

The Board has considered the guidelines set out in NP 58-201 and believes that its approach to corporate governance is appropriate and works effectively for the Company and its Shareholders, given its size.

Cognizant of these regulatory requirements and the evolution of best practices, the Board has been, and will continue to be, proactive in reviewing and amending the Company's governance practices.

**A.** **BOARD OF DIRECTORS** 

**Mandate of the Board of Directors**

 ****

On January 23, 2012, the Board approved a written Mandate of the Board to assist it in the better execution of its responsibilities, the text of which is attached hereto as Schedule "A". The mandate provides certain guidelines for Board composition and conduct, and highlights particular areas of the conduct of the Company's affairs for which the Board assumes specific responsibility.

**Composition and Independence**

 ****

The Board facilitates its exercise of independent supervision over management by ensuring representation on the Board by directors who are independent of management and by promoting frequent interaction and feedback.

Applicable securities laws, including NP 58-201, recommend that boards of directors of non-venture issuers such as the Company be comprised of a majority of independent directors, as that term is defined under applicable securities laws. Directors are considered to be independent if they have no direct or indirect material relationship with the Company. A "**material relationship**" is a relationship which could, in the view of the Board, be reasonably expected to interfere with the exercise of a director's independent judgment.

The Board has reviewed the relationship between each current director that is standing for re-election and the Company with a view to determining independence. Based on that review, five (5) of the Company's seven (7) existing directors submitted for proposed re-election at the Meeting are independent.

The independent directors are:

● Dr. Thomas Gutschlag;

● Mark Trachuk;

● Andrew Frazer;

● David Hanick; and

● Gustave F. Perna.

The non-independent directors are:

● Lewis Black; and

● Daniel D'Amato.

Mr. Black is not independent of the Company by virtue of his role as Chief Executive Officer of the Company. Mr. D'Amato is not independent by virtue of the fact that he received $247,482 from the Company for consulting fees for the most recently completed fiscal year ended December 31, 2024.

The Board has overall responsibility for the governance of the Company, including the exercise of independent supervision of the Company's management. The Board considers that management is, and has been, effectively supervised by the independent directors on an informal basis, as these independent directors are, and have been, actively and regularly engaged in reviewing the operations and activities of the Company, and have full and regular access to management of the Company. Though the current Chairman is not independent, the independent directors have sufficient breadth of experience to operate without necessarily needing to rely on the leadership of the Chairman.

**Directorships of Other Reporting Issuers**

 ****

None of the current directors of the Company presently serve on the board of directors of any other reporting issuers (or the equivalent) in a Canadian jurisdiction or a foreign jurisdiction, other than as set out below.

---

| | | |
|:---|:---|:---|
| **Name of Director** | **Name of Reporting Issuer (or the Equivalent)** | **Name of Exchange** |
| Dr. Thomas Gutschlag | Saturn Oil & Gas Inc.<br>Deutsche Rohstoff AG | Toronto Stock Exchange<br>Frankfurt Stock Exchange |
| Gustave F. Perna | Allison Transmission Holdings Inc. | New York Stock Exchange |

---

**Board Meetings and Attendance**

 ****

Meetings of the non-management directors at which members of management (including the President and Chief Executive Officer) are not in attendance are generally held immediately after regularly scheduled Board meetings. In addition, the Company's Board committees operate under approved charters and chair mandates, and can and do meet and operate independently of non-independent directors and management in fulfilling their mandates and making recommendations to the Board.

The following is a summary of the meetings of the Board and the meetings of the Audit Committee (as hereinafter defined) and CCG Committee held during fiscal 2024 and the attendance at these meetings by the directors:

---

| | | | |
|:---|:---|:---|:---|
| **Name of Director** | **Board Meetings Attended** | **Audit Committee Meetings Attended** | **Compensation and Corporate Governance Committee**<br> **Meetings Attended** |
| **Lewis Black** | 4 of 4 | N/A | N/A |
| **Daniel D'Amato** | 4 of 4 | N/A | 1 of 1 |
| **Mark Trachuk** | 4 of 4 | 4 of 4 | 1 of 1 |
| **Dr. Thomas Gutschlag** | 4 of 4 | 4 of 4 | 1 of 1 |
| **Andrew Frazer** | 4 of 4 | N/A | N/A |
| **David Hanick** | 4 of 4 | 4 of 4 | N/A |
| **Gustave F. Perna<sup>(1)</sup>** | N/A | N/A | N/A |

---

Notes:

(1) General
 Perna was appointed as a director on March 20, 2025.

**B.** **AUDIT COMMITTEE** 

The audit committee of the Board (the "**Audit Committee**") is currently comprised of Mark Trachuk (Chair), Dr. Thomas Gutschlag, and David Hanick, all of whom are financially literate and independent within the meaning of NI 52-110. The Company complies with the composition requirements for audit committees under NI 52-110 which requires that all the members of the Audit Committee be independent.

Further information regarding the Audit Committee, including a copy of the charter of the Audit Committee, can be found in the Company's annual information form dated March 20, 2025, a copy of which is available for review under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>, in the section entitled "Audit Committee" and in "Schedule A" thereof.

**C.** **COMPENSATION AND CORPORATE GOVERNANCE COMMITTEE** 

The CCG Committee is comprised of Mark Trachuk (Chair), Daniel D'Amato, and Dr. Thomas Gutschlag, all of whom have been determined by the Board to be independent under NI 58-101, other than Mr. D'Amato for the reasons described above. The CCG Committee assists the Board in fulfilling its oversight responsibilities with respect to each of the areas discussed below.

**Compensation**

 ****

As discussed above, responsibility for matters relating to the overall compensation philosophy and guidelines for the directors and officers of the Company lies with the CCG Committee. The CCG Committee annually reviews and recommends to the Board, the adequacy and form of compensation of the directors of the Company in light of the responsibilities and risks involved in being such a director. The CCG Committee is also responsible for annually evaluating the performance of the Chief Executive Officer of the Company and recommending to the Board his or her annual compensation package. A detailed discussion and analysis of the Board's and the CCG Committee's approach to the determination of compensation is provided in the section "*Executive Compensation – Compensation Discussion and Analysis*", above.

**Nomination of Directors**

 ****

In addition to its oversight mandate with respect to compensation matters, responsibility for matters relating to the identification and nomination of directors lies with the CCG Committee. The CCG Committee is responsible for reviewing and reporting to the Board on matters relating to the identification, nomination and review of directors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) developing
 criteria for selection of directors and procedures to identify possible nominees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) reviewing
 and assessing qualifications of director nominees including potential conflicts of interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) submitting
 to the Board for consideration and decision, names of the nominees to be brought forward
 to the next annual meeting of Shareholders or to be appointed to fill vacancies between such
 meetings; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) determining
 if any Board member's qualifications or credentials since appointment have changed,
 or other circumstances arisen, so as to warrant a recommendation that such member resigns.

The CCG Committee does not currently have a written procedure for identifying new candidates for Board membership. In the normal course, the CCG Committee makes use of the formal and informal networks of the members of the Board and carries out formal searches for candidates when so directed by the Board.

**Orientation and Continuing Education**

 ****

Responsibility for orientation and continuing education of the Company's directors lies with the CCG Committee. The CCG Committee's charter provides it with a specific mandate to develop and review annually programs for the orientation of new directors and the ongoing education of existing directors. With respect to orientation, the CCG Committee relies on informal orientation programs that are tailored to the particular needs and experience of the new director in question and to the needs of the Board at that time. The CCG Committee will provide such information to new members of the Board so as to ensure that such directors are familiar with the Company's business and procedures of the Board. Information may include the Company's corporate and organizational structure, recent filings and financial information, governance documents and important policies and procedures. The CCG Committee also ensures that every director possesses the capabilities, expertise, availability and knowledge required to fill his or her position adequately. With respect to ongoing education, the CCG Committee relies on its professional advisors to provide updates to the various members of the Board regarding changes in relevant policies, laws or regulations, and on a cultural expectation that directors communicate with the Company's management and professional advisors, as well as attend relevant industry conferences, in order to remain abreast of developments in the Company's industry and legal and regulatory environment. From time to time, the CCG Committee may arrange on-site tours of the Company's operations.

**Assessments**

 ****

Primary responsibility for assessing the performance of the Board, its committees and individual members lies with the CCG Committee. Pursuant to the CCG Committee's charter, the committee's responsibilities in this regard include the conduct of annual reviews of various aspects of the Company's corporate governance policies and practices, and in particular to conduct an annual review, together with the Chairman of the Board, of the effectiveness of the Board as a whole, the committees of the Board, and the contribution of each individual director, and to make periodic reports to the Board on these matters. The CCG Committee is also responsible for reviewing and making recommendations to the Board with respect to the establishment or abolition of committees of the Board, their respective terms of reference, and the size and composition of the various committees of the Board.

**Director Term Limits**

 ****

The Company has not adopted term limits for directors on the Board or other mechanisms of board renewal as the Board is of the view that it is in the Company's best interests to retain experienced board members who are familiar with the Company's business and can provide continuity to its management. Instead, the Board currently assesses the performance of directors based on their ability to continue to make a meaningful contribution.

**Diversity on the Board of Directors and among Executive Officers**

 ****

The Company does not currently have a formal diversity policy in place regarding gender representation on the Board or in executive officer positions. The Company believes in retaining the most qualified candidate for any position irrespective of gender, and recruitment efforts will continue to be governed by the principles set forth below.

However, informally, in identifying and selecting director or executive officer nominees, the Company values diversity, including, without limitation, diversity of experience, perspective, education, race, gender and national and ethnic origin, religion, sexual orientation, political belief and disability, as among the many factors taken into consideration during the search process. The Company also considers, among other things, the qualifications, personal qualities, business background and relevant experience of individual candidates as well as the overall composition of the Board or executive officers with a view to identifying and selecting the best and most complementary candidates. The CCG Committee and the Board intend to consider whether the Company should adopt specific policies and practices regarding the representation of members of designated groups on the Board and in executive office positions, including the setting of targets for such representation.

As at the date hereof, none of the members of the Board nor any executive officers self-identify as members of any designated group.

**D.** **ETHICAL BUSINESS CONDUCT** 

As a responsible corporate citizen, the Company is committed to conducting its affairs with integrity, honesty, fairness and professionalism. On January 23, 2012, the Board approved a series of formal, written policies intended in part to promote ethical business conduct by the Company and its directors, executive officers and employees. In addition to the Board being subject to the written mandate of the Board, as discussed above, and to the general requirement that the Company and its directors, executive officers, employees and consultants act in accordance with all applicable laws, these formal policies include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Code of Business Conduct*: Intended to promote the fundamental values of integrity, honesty,
 fair dealing and transparency, the code imposes certain and specific obligations on the directors,
 executive officers and employees of the Company to achieve this objective and provides for
 certain sanctions in the event of non-compliance. Responsibility for conducting periodic
 reviews of this Code of Business Conduct and overseeing management's monitoring of
 compliance with the Code of Business Conduct lies with the CCG Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Whistleblower Policy*: This policy imposes a general obligation on the Company's directors, executive
 officers, employees, consultants and contractors to submit all good faith concerns and complaints
 in respect of any matter that may constitute a breach of the Company's Code of Business
 Conduct, and in particular with respect to concerns about the Company's accounting,
 internal control or auditing procedures, to the Chair of the Audit Committee. Responsibility
 for administering this policy lies with the Audit Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Insider Trading Policy*: Intended to ensure compliance with applicable securities laws relating
 to insider trading and tipping, as well as avoiding the occurrence or appearance of improper
 trading or tipping and assisting the Company's directors, officers and employees to
 comply with their obligations under such laws. This policy outlines certain general obligations
 and provides for certain sanctions in the event of non-compliance with its terms by any of
 the Company's directors, executive officers, employees or consultants.

Further information and complete copies of the Company's codes and policies are available on the Company's website at <u>www.almonty.com</u>.

**E.** **OTHER COMMITTEES** 

As of the date of this Circular, there are no additional committees of the Board.

**<u>GENERAL MATTERS</u>**

**A.** **INDEBTEDNESS OF DIRECTORS AND OFFICERS** 

No director, nominee for election as a director, executive officer, employee or former director, executive officer or employee of the Company or any of its subsidiaries, or any of their associates or other member of management of the Company, was indebted to the Company at any time since the beginning of the most recently completed fiscal year ended December 31, 2024 of the Company or as at the date hereof, other than "routine indebtedness" as defined in applicable securities laws.

**B.** **INTEREST OF INFORMED PERSONS IN MATERIAL TRANSACTIONS** 

Except as disclosed in the Company's annual information form dated March 20, 2025, to the knowledge of management of the Company, no informed person or nominee for election as a director of the Company or any associate or affiliate of any informed person or proposed director had any material interest, direct or indirect, in any transaction since the beginning of the Company's most recently completed fiscal year ended December 31, 2024, or in any proposed transaction which has materially affected or would materially affect the Company or any of its subsidiaries, except as disclosed in this Circular or in a previous information circular of the Company.

For the above purposes, an "**informed person**" means (i) a director or executive officer of the Company,

(ii) a director or executive officer of a person or company that is itself an informed person or subsidiary of the Company, (iii) any person or company who beneficially owns, or controls or directs, directly or indirectly, voting securities of the Company or a combination of both carrying more than 10% of the voting rights, attached to all outstanding voting securities of the Company other than voting securities held by the person or company as underwriter in the course of a distribution, and (iv) the Company after having purchased, redeemed or otherwise acquired any of its securities, for so long as it holds any of its securities.

**C.** **EXTERNAL MANAGEMENT COMPANIES** 

None of the management functions of the Company or any of its subsidiaries are to any substantial degree performed other than by the directors or executive officers of the Company or a subsidiary.

**D.** **RECEIPT OF SHAREHOLDER PROPOSALS FOR THE NEXT ANNUAL MEETING** 

A registered holder or beneficial owner of Shares may (a) submit to the Company, Attention: Corporate Secretary at 100 King Street West, Suite 5700, Toronto, Ontario, M5X 1C7 a notice of any matter that the person proposes to raise at the next annual meeting of Shareholders (a "**proposal**"); and (b) discuss at the meeting any matter in respect of which the person would have been entitled to submit a proposal, subject to the requirements under section 137 of the *Canada Business Corporations Act*. The Company shall set out such proposal and the accompanying supporting statement, if any, in the management information circular for the next annual meeting of Shareholders, provided that the proposal is submitted to the Company at least 90 days before the anniversary date of the notice of meeting that was sent to Shareholders in connection with the previous annual meeting of Shareholders.

**E.** **AUDITORS AND TRANSFER AGENT** 

The Company's auditor is Zeifmans LLP, 201 Bridgeland Avenue, Toronto, ON, M6A 1Y7. Zeifmans LLP was first appointed as the Company's auditor effective October 1, 2021.

The Transfer Agent and registrar of the Company is Computershare Investor Services Inc. through its principal offices in Vancouver, British Columbia.

**F.** **ADDITIONAL INFORMATION** 

Additional information with respect to the Company is available on the Company's profile on SEDAR+ at <u>www.sedarplus.ca</u>. Financial information with respect to the Company is provided in the Company's financial statements and management discussion and analysis for its most recently completed fiscal year ended December 31, 2024. Shareholders can access this information on SEDAR+ under the Company's profile or by request to the Corporate Secretary of the Company at the following address:

Almonty Industries Inc. 100 King Street West Suite 5700

Toronto, Ontario M5X 1C7

Phone: (647) 438-9766

**G.** **APPROVAL** 

The contents and the sending of this Circular have been approved by the Board.

---

| |
|:---|
| March 21, 2025 |
| *(signed) "Lewis Black"* |
| Lewis Black |
| Chairman of the Board of Directors |

---

**SCHEDULE "A" - MANDATE OF THE BOARD OF DIRECTORS**

![](ex4-6_002.jpg)

**<u>MANDATE OF THE BOARD OF DIRECTORS</u>**

**May 28, 2021**

The Board of Directors (the "**Board**") of Almonty Industries Inc. (the "**Corporation**") believes that the appropriate mix of skills, experience, age and gender will help to enhance its performance. The Board's composition should reflect business experience compatible with the Corporation's business objectives.

**Fiduciary Duty and Duty of Care**

The Board's fundamental relationship with the Corporation is guided by a fiduciary principle that requires each director to act honestly and in good faith with a view to the best interests of the Corporation. In exercising their powers and discharging their duties, every director must exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. These principles require a director to put the Corporation's interests first, avoid conflicts of interest and avoid exploiting business opportunities of the Corporation for self-interested purposes. This mandate is not intended to expand upon the standards of conduct prescribed under statutory or regulatory requirements for directors of a corporation.

The Board may designate the officers of the Corporation, specify their duties and delegate to them powers to manage the day to day business and affairs of the Corporation. In addition, the Board discharges its responsibilities through standing committees such as the Audit and Risk Management Committee and the Nomination, Compensation and Corporate Governance Committee and may also periodically form special committees to address specific issues of a more short-term nature. The duties and responsibilities delegated to standing committees of the board are prescribed in the charters for such standing committees.

Additionally, absent actual knowledge to the contrary, the Board shall be entitled to rely on (i) the integrity of those persons or organizations within or outside the Corporation from which it receives information, (ii) the accuracy of the financial and other information provided by such persons or organizations, and (iii) representations made by management and such persons or organizations in relation to any services provided by such persons or organizations to the Corporation and its subsidiaries.

**Meetings**

The Board shall meet at least four times annually, or more frequently, as circumstances dictate. In addition, the Board shall hold separate, regularly scheduled meetings of independent directors at which members of management are not present.

**Independent Directors**

An independent director is a non-executive director who is free of any interest, position, association or relationship that might influence, or could reasonably be perceived to influence, in a material respect his or her capacity to bring independent judgment to bear on issues before the Board and to act in the best interests of the entity and its security holders generally.

Where a director is in a position that might cause doubts or raise issues about the independence of a director, the Board should rule the director not to be independent unless it is clear that the interest, position or relationship in question is not material and will not interfere with the director's ability to bring an independent mind to issues or to act in the Company's best interests as a whole.

Family ties and cross directorships which may relate to the Company or its business may be relevant in considering interests and relationships which may compromise independence, and should be disclosed by Directors to the Board. The Board will:

● regularly review the independence of each Director in light of interests disclosed and will disclose any change to ASX, as required by the ASX Listing Rules and the TSX Company Manual and applicable Canadian securities laws; and

● review the independence of any director who has served in that position for more than 10 years to confirm that their independent status can be maintained.

**Senior manager**

A senior manager is a manager who is a member of the key management personnel of the Company, including an executive director but not including a non-executive director.

The senior management team will usually be responsible for implementing the entity's strategic objectives and instilling and reinforcing its values, all while operating within the values, code of conduct, budget and risk appetite set by the Board.

The senior management team will also usually be responsible for providing the Board with accurate, timely and clear information on the entity's operations to enable the Board to perform its responsibilities. This is not just limited to information about the financial performance of the Company, but also its compliance with material legal and regulatory requirements and any conduct that is materially inconsistent with the values or code of conduct of the entity.

**Position Descriptions**

The Board has developed position descriptions for the Chair of the Board, the Chief Executive Officer ("CEO"), Chief Financial Officer ("CFO") and the Corporate Secretary. The Board shall review such position descriptions from time to time, as required.

*Chair of the Board*

 

The Chair is responsible for overseeing the operations and affairs of the Board. In fulfilling his or her duties, the Chair will be responsible for:

● providing leadership to foster the effectiveness of the Board;

● ensuring there is an effective relationship between the Board and senior management, including by acting as a liaison between the Board and senior management;

● acting as an advisor to senior management in matters concerning the interests of the Corporation;

● ensuring that the appropriate committee structure is in place and assisting the Nomination, Compensation and Corporate Governance Committee in making recommendations for appointment to such committees;

● in consultation with the other members of the Board and the CEO, preparing the agenda for each meeting of the Board;

● ensuring that the directors receive the information required for the proper performance of their duties, including information relevant to each meeting of the Board;

● chairing Board meetings and sessions of independent directors, including stimulating debate, providing adequate time for discussion of issues, facilitating consensus, encouraging full participation and discussion by individual directors and confirming that decisions are reached and accurately recorded;

● chairing all shareholder meetings;

● together with the Nomination, Compensation and Corporate Governance Committee, ensuring that an appropriate system is in place to evaluate the performance of the Board as a whole, the Board's committees and individual directors with a view to ensuring that they are fulfilling their respective responsibilities and duties, and making recommendations to the Nomination, Compensation and Corporate Governance Committee for changes when appropriate and undertaking such an evaluation no less frequently than annually;

● consulting with the Nomination, Compensation and Corporate Governance Committee on candidates for nomination or appointment to the Board;

● monitoring shareholder communication and continuous disclosure generally and for compliance with the Disclosure Policy and Communication Policy;

● working with the CEO to ensure that the Board is provided with the resources to permit it to carry out its responsibilities and bringing to the attention of the CEO any issues that are preventing the Board from being able to carry out its responsibilities; and

● providing additional services required by the Board.

*Chief Executive Officer*

 

The CEO is primarily responsible for the overall management of the business and affairs of the Corporation. In this capacity, the CEO shall establish the strategic and operational priorities of the Corporation and provide leadership for the effective overall management of the Corporation. In fulfilling these duties, the CEO will be responsible for:

● implementing the policies and strategy set by the Board;

● developing annual business plans and budgets for the Board's approval that support the Corporation's long-term strategy;

● consistently striving to achieve the Corporation's short and long-term financial and operating goals and objectives;

● providing leadership and vision, and maintaining a high level of employee morale and motivation, with a view to ensuring the implementation of the Corporation's strategy;

● fostering a corporate culture that promotes integrity and ethical values throughout the organization, including setting the tone by meeting the highest ethical standards;

● developing and motivating the executive officers of the Corporation and providing overall management to ensure the effectiveness of the leadership team;

● serving as the Corporation's chief spokesperson and ambassador;

● ensuring compliance by the Corporation with all applicable laws, rules and regulations, as well as the Corporation's Code of Business Conduct, corporate governance policies and any other policies adopted by the Board from time to time; and

● ensuring that the Board remains fully informed through direct communication with the Chair for all significant matters, and dealing with the Board in a manner that ensures that the Board is able to provide the best counsel and advice possible.

In carrying out those responsibilities, the CEO must report to the Board in a timely manner and ensure all reports to the Board present a true and fair view of the Corporation's financial condition and operational results.

*Chief Financial Officer*

 

The CFO is primarily responsible for the planning, implementation, managing and running of the financial activities of the company. The specific responsibilities the CFO has carriage over include:

● analyzing, advising, developing, formulating, communicating and overseeing the Corporation's financial policies, including in the Company's tax, capital and liquidity policies;

● reporting on the Corporation's financial performance;

● overseeing and ensuring the integrity of the Corporation's internal and external financial reporting;

● ensuring timely and adequate provision of information to the Board about the financial state of affairs of the Corporation; and

● overseeing and evaluating, together with the CEO (if appropriate), the processes for maintaining the integrity of the Corporation with regard to the financial statements and other public disclosures and certifying their effectiveness as required in reports and documents that the Corporation files with, or submits to, the relevant securities regulators.

In carrying out these responsibilities, the CFO must, where appropriate, liaise with and report to the Board in a timely manner and ensure all reports to the Board present a true and fair view of the Corporation's financial condition.

*Corporate Secretary*

 

The role of the Corporate Secretary is to support the effectiveness of the Board and the committees. In carrying out these responsibilities, the Corporate Secretary is accountable directly to the Board in the performance of this role which includes without limitation:

● advising the Board and the committees of governance matters;

● monitoring compliance with Board and committee policy and procedures;

● coordinating the timely completion and delivery of Board and committee papers; and

● assisting generally with the proper functioning of the Board.

**Responsibilities**

The Board is elected by the shareholders and represents all shareholders' interests in continuously creating shareholder value. The responsibilities of the Board include the following:

● Advocate and support the best interests of the Corporation.

● Review and approve strategic, business and capital plans for the Corporation and monitor management's execution of such plans.

● Review whether specific and relevant corporate measurements are developed and adequate controls and information systems are in place with regard to business performance.

● Review the principal risks of the Corporation's business and pursue the implementation by management of appropriate systems to manage such risks.

● Monitor progress and efficiency of strategic, business and capital plans and require appropriate action to be taken when performance falls short of goals.

● Review measures implemented and maintained by the Corporation to ensure compliance with statutory and regulatory requirements.

● Select, evaluate and compensate the CEO.

● Annually review appropriate senior management compensation programs.

● Monitor the practices of management against the Corporation's disclosure policy to ensure appropriate and timely communication to shareholders of material information concerning the Corporation.

● Monitor safety and environmental programs.

● Monitor the development and implementation of programs for management succession and development.

● Approve selection criteria for new candidates for directorship.

● Provide new directors with a comprehensive orientation and provide all directors with continuing education opportunities.

● Assure shareholders of conformity with applicable statutes, regulations and standards (for example, environmental risks and liabilities and conformity with financial reporting requirements).

● Establish the necessary committees to monitor the Corporation.

● Regularly conduct assessments of the effectiveness of the Board, as well as the effectiveness and contribution of each Board committee and of each individual director.

● Provide advice to and act as a sounding board for the CEO.

● Discharge such other duties as may be required in the good stewardship of the Corporation.

The Board shall also develop or approve the corporate goals and objectives that the CEO is responsible for meeting.

The Board also assumes responsibility for the following approvals:

*Financial Approvals:*

 

● Strategic plan

● Annual business and capital plans

● Annual financial statements and auditors' report,together with management's discussion and analysis and press release

● Quarterly financial statements, together with management's discussion and analysis and press release

● Budgeted capital expenditures

● Unbudgeted capital expenditures in excess of $50,000

● Acquisitions/divestitures

● Significant financing or refinancing opportunities

● Dividend policy

● Share re-purchase programs

● Individual operating, real property or capital leases having total commitment in excess of $100,000

*Human Resources Approvals:*

 

● Appointment/succession/dismissal of CEO\*

● Compensation of CEO\*

● Executive compensation arrangements and incentive plans\*

*Administration and Compliance Approvals:*

 

● Appointment of members to the committees of the Board and the chairs of such committees

● Nomination of directors

● Recommendation of auditors to the shareholders\*

● Management information circular and related materials

● Appointment of the Chair of the Board

● Major policies\*

**Review of Charter**

The Board will review and reassess this Mandate at least annually and, if required, make any amendments to the Mandate.

\* Board may delegate to committees

Last Update: May 28, 2021 <br>Approved by: Board of Directors

**SCHEDULE "B"- OMNIBUS EQUITY INCENTIVE PLAN**

**ALMONTY INDUSTRIES INC.** 

**(THE "CORPORATION")**

**OMNIBUS EQUITY INCENTIVE PLAN**

**Adopted with effect from [●], 2025**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| **ARTICLE 1 INTERPRETATION** | **ARTICLE 1 INTERPRETATION** | **1** |
| 1.1 | Definitions | 1 |
| 1.2 | Interpretation | 6 |
| **ARTICLE 2 PURPOSE AND ADMINISTRATION OF THE PLAN; GRANTING OF AWARDS** | **ARTICLE 2 PURPOSE AND ADMINISTRATION OF THE PLAN; GRANTING OF AWARDS** | **7** |
| 2.1 | Purpose of the Plan | 7 |
| 2.2 | Implementation and Administration of the Plan | 7 |
| 2.3 | Participation in this Plan | 8 |
| 2.4 | Shares Subject to the Plan | 9 |
| 2.5 | Limits with Respect to Insiders, Individual Limits, Annual Grant Limits and Non-Employee Director Limits | 9 |
| 2.6 | Granting of Awards | 10 |
| **ARTICLE 3 OPTIONS** | **ARTICLE 3 OPTIONS** | **10** |
| 3.1 | Nature of Options | 10 |
| 3.2 | Option Awards | 10 |
| 3.3 | Option Price | 10 |
| 3.4 | Option Term | 10 |
| 3.5 | Exercise of Options | 11 |
| 3.6 | Method of Exercise and Payment of Purchase Price | 11 |
| 3.7 | Option Agreements | 12 |
| **ARTICLE 4 RESTRICTED AND PERFORMANCE SHARE UNITS** | **ARTICLE 4 RESTRICTED AND PERFORMANCE SHARE UNITS** | **12** |
| 4.1 | Nature of Share Units | 12 |
| 4.2 | Share Unit Awards | 13 |
| 4.3 | Share Unit Agreements | 13 |
| 4.4 | Vesting of Share Units | 14 |
| 4.5 | Redemption / Settlement of Share Units | 14 |
| 4.6 | Award of Dividend Equivalents | 16 |
| **ARTICLE 5 DEFERRED SHARE UNITS** | **ARTICLE 5 DEFERRED SHARE UNITS** | **16** |
| 5.1 | Nature of Deferred Share Units | 16 |
| 5.2 | Market Fluctuation | 17 |
| 5.3 | DSU Awards | 17 |
| 5.4 | DSU Agreements | 18 |
| 5.5 | Redemption / Settlement of DSUs | 18 |
| **ARTICLE 6 GENERAL CONDITIONS** | **ARTICLE 6 GENERAL CONDITIONS** | **20** |
| 6.1 | General Conditions Applicable to Awards | 20 |
| 6.2 | General Conditions Applicable to Options | 22 |
| 6.3 | General Conditions Applicable to Share Units | 23 |
| **ARTICLE 7 ADJUSTMENTS AND AMENDMENTS** | **ARTICLE 7 ADJUSTMENTS AND AMENDMENTS** | **24** |
| 7.1 | Adjustment to Shares Subject to Outstanding Awards | 24 |
| 7.2 | Change of Control | 24 |
| 7.3 | Amendments | 25 |

---

---

| | | |
|:---|:---|:---|
| **ARTICLE 8 MISCELLANEOUS** | **ARTICLE 8 MISCELLANEOUS** | 26 |
| 8.1 | Use of an Administrative Agent | 26 |
| 8.2 | Tax Withholding | 26 |
| 8.3 | Clawback | 26 |
| 8.4 | Securities Law Compliance | 27 |
| 8.5 | Reorganization of the Corporation | 28 |
| 8.6 | Quotation of Shares | 28 |
| 8.7 | Fractional Shares | 28 |
| 8.8 | Governing Laws | 28 |
| 8.9 | Severability | 28 |
| **ARTICLE 9 U.S. TAXPAYERS** | **ARTICLE 9 U.S. TAXPAYERS** | **29** |
| 9.1 | Provisions for U.S. Taxpayers | 29 |
| 9.2 | Certain Defined Terms | 29 |
| 9.3 | ISOs | 29 |
| 9.4 | ISO Grants to 10% Shareholders | 29 |
| 9.5 | $100,000 Per Year Limitation for ISOs | 30 |
| 9.6 | Disqualifying Dispositions | 30 |
| 9.7 | Code Section 409A | 30 |
| 9.8 | Section 83(b) Election | 31 |
| 9.9 | Application of Article 9 to U.S. Taxpayers | 31 |

---

**ALMONTY INDUSTRIES INC. OMNIBUS EQUITY INCENTIVE PLAN**

Almonty Industries Inc. (the "**Corporation**") hereby establishes an omnibus equity incentive plan for certain qualified directors, executive officers, employees or Consultants (as defined herein) of the Corporation or any of its Subsidiaries (as defined herein).

**ARTICLE 1**

**INTERPRETATION**

**1.1** **Definitions** 

Where used herein or in any amendments hereto or in any communication required or permitted to be given hereunder, the following terms shall have the following meanings, respectively, unless the context otherwise requires:

"**Account**" means a notional account maintained for each Participant on the books of the Corporation which will be credited with Share Units or DSUs, as applicable, in accordance with the terms of this Plan;

"**Associate**", where used to indicate a relationship with a Participant, means (i) any domestic partner of that Participant and (ii) the spouse of that Participant and that Participant's children, as well as that Participant's relatives and that Participant's spouse's relatives, if they share that Participant's residence;

"**Award**" means any of an Option, Share Unit or DSU granted pursuant to, or otherwise governed by, the Plan;

"**Blackout Period**" means the period during which Participants cannot trade securities of the Corporation pursuant to the Corporation's policy respecting restrictions on trading which is in effect at that time (which, for greater certainty, does not include the period during which a cease trade order is in effect to which the Corporation or in respect of an insider, that insider, is subject);

"**Blackout Period Expiry Date**" means the date on which a Blackout Period expires;

"**Board**" has the meaning ascribed thereto in Section 2.2(1) hereof;

"**Business Day**" means a day other than a Saturday, Sunday or statutory holiday, when banks are generally open for business in Toronto, Ontario for the transaction of banking business;

"**Canadian Exchange**" means the TSX or such other national securities exchange or trading system in Canada on which the Shares are listed or posted for trading;

"**Canadian Participant**" means a Participant who is a resident of Canada and/or who is granted an Award in respect of, or by virtue of, employment services rendered in Canada, provided that, for greater certainty, a Participant may be both a Canadian Participant and a U.S. Taxpayer;

"**Cash Fees**" has the meaning set forth in Subsection 5.3(2);

"**Cashless Exercise Right**" has the meaning ascribed thereto in Section 3.6(3) hereof;

"**Cause**" has the meaning ascribed thereto in Section 6.2(1) hereof;

"**Change of Control**" means, unless the Board determines otherwise, the happening, in a single transaction or in a series of related transactions, of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any
 transaction (other than a transaction described in clause (c) below) pursuant to which any
 Person or group of Persons acting jointly or in concert acquires the direct or indirect beneficial
 ownership of securities of the Corporation representing 50% or more of the aggregate voting
 power of all of the Corporation's then issued and outstanding securities entitled to
 vote in the election of directors of the Corporation, other than any such acquisition that
 occurs upon the exercise or settlement of options or other securities granted by the Corporation
 under any of the Corporation's equity incentive plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) there
 is consummated an arrangement, amalgamation, merger, consolidation or similar transaction
 involving (directly or indirectly) the Corporation and, immediately after the consummation
 of such arrangement, amalgamation, merger, consolidation or similar transaction, the shareholders
 of the Corporation immediately prior thereto do not beneficially own, directly or indirectly,
 either (A) outstanding voting securities representing more than 50% of the combined outstanding
 voting power of the surviving or resulting entity in such amalgamation, merger, consolidation
 or similar transaction or (B) more than 50% of the combined outstanding voting power of the
 parent of the surviving or resulting entity in such arrangement, amalgamation, merger, consolidation
 or similar transaction, in each case in substantially the same proportions as their beneficial
 ownership of the outstanding voting securities of the Corporation immediately prior to such
 transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 sale, lease, exchange, license or other disposition, in a single transaction or a series
 of related transactions, of assets, rights or properties of the Corporation or any of its
 Subsidiaries which have an aggregate book value greater than 50% of the book value of the
 assets, rights and properties of the Corporation and its Subsidiaries on a consolidated basis
 to any other person or entity, other than a disposition to a wholly-owned Subsidiary of the
 Corporation in the course of a reorganization of the assets of the Corporation and its wholly-owned
 Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 passing of a resolution by the Board or shareholders of the Corporation to substantially
 liquidate the assets of the Corporation or wind up the Corporation's business or significantly
 rearrange its affairs in one or more transactions or series of transactions or the commencement
 of proceedings for such a liquidation, winding-up or re-arrangement (except where such re-arrangement
 is part of a bona fide reorganization of the Corporation in circumstances where the business
 of the Corporation is continued and the shareholdings remain substantially the same following
 the re-arrangement); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) individuals
 who, immediately prior to a particular time, are members of the Board (the "**Incumbent Board**") cease for any reason to constitute at least a majority of the members of
 the Board immediately following such time; provided, however, that if the appointment or
 election (or nomination for election) of any new Board member was approved or recommended
 by a majority vote of the members of the Incumbent Board then still in office, such new member
 will, for purposes of this Plan, be considered as a member of the Incumbent Board; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the
 Board adopts a resolution to the effect that a Change of Control as defined herein has occurred
 or is imminent;

"**Code**" means the United States *Internal Revenue Code of 1986*, as amended;

"**Code Section 409A**" means Section 409A of the Code and applicable regulations and guidance issued thereunder;

"**Consultant**" means a person, other than an employee, executive officer or director of the Company or a Subsidiary, that provides ongoing services to the Company, and includes for an individual Consultant, a corporation of which the individual Consultant is an employee or shareholder, or a partnership of which the individual Consultant is an employee or partner;

"**Consulting Agreement**" means any written consulting agreement between the Corporation or a Subsidiary and a Participant who is a Consultant;

"**Corporation**" means Almonty Industries Inc., a corporation existing under the *Canada Business Corporations Act*;

"**Designated Broker**" means a broker who is independent (pursuant to the rules and policies of the TSX) of, and deals at arm's length with, the Corporation and its Subsidiaries and is designated by the Corporation or its Subsidiaries;

"**Director Fees**" means the total compensation (including annual retainer and meeting fees, if any) paid by the Corporation to a Non-Employee Director in a calendar year for service on the Board;

"**Dividend Equivalent**" means additional Share Units credited to a Participant's Account as a dividend equivalent pursuant to Section 4.6;

"**DSU**" has the meaning ascribed thereto in Section 5.1 hereof;

"**DSU Agreement**" means a written agreement between the Corporation and a Participant evidencing the grant of DSUs and the terms and conditions thereof, a form of which is attached hereto as Exhibit "D";

"**DSU Redemption Date**" means, with respect to a particular DSU, the date on which such DSU is redeemed by the Corporation in accordance with the provisions of this Plan;

"**Effective Date**" means the effective date of this Plan, being **[**●**]**, 2025;

"**Electing Person**" means a Participant who is, on the applicable Election Date, a Non-Employee Director;

"**Election Date**" means the date on which the Electing Person files an Election Notice in accordance with Subsection 5.3(3);

"**Election Notice**" has the meaning set forth in Subsection 5.3(3);

"**Eligible Participant**" means: (i) in respect of a grant of Options or Share Units, any director, executive officer, employee or Consultant of the Corporation or any of its Subsidiaries, and (ii) in respect of a grant of DSUs, any Non-Employee Director;

"**Employment Agreement**" means, with respect to any Participant, any written employment agreement between the Corporation or a Subsidiary and such Participant;

"**ESA"** means the *Employment Standards Act, 2000* (Ontario), as amended from time to time, or any other similar employment standards legislation of a province in Canada as may be applicable to a Participant;

"**Exercise Notice**" means a notice in writing signed by a Participant and stating the Participant's intention to exercise a particular Option, if applicable;

"**Grant Agreement**" means a written agreement evidencing the grant to a Participant of an Award or otherwise setting out the terms of an Award, including, without limitation, an Option Agreement, a Share Unit Agreement, a DSU Agreement, an Employment Agreement or a Consulting Agreement;

"**Insider**" means a "reporting insider" as defined in National Instrument 55-104 – *Insider Reporting Requirements and Exemptions* and includes Associates and affiliates (as such term is defined in Part 1 of the TSX Corporation Manual) of such "reporting insider";

"**ISO**" has the meaning ascribed thereto in Section 9.1 hereof;

"**ITA**" means the *Income Tax Act* (Canada), as amended from time to time;

"**ITA Regulations**" means the regulations promulgated under the ITA, as amended from time to time;

"**Market Value of a Share**" means, with respect to any particular date as of which the Market Value of a Share is required to be determined:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if
 the Shares are listed on both a Canadian Exchange and a U.S. Exchange, (i) with respect to
 Options, at any date when the market value of the Shares is to be determined, the closing
 price of the Shares on the trading day prior to the date of grant, by reference to the price
 on the Canadian Exchange where value is determined in Canadian dollars, and by reference
 to the price on the U.S. Exchange where value is determined in U.S. dollars; (ii) with respect
 to Share Units, the volume weighted average trading price of the Shares for the five trading
 days preceding the date on which the Market Value of a Share is to be determined, by reference
 to the price on the Canadian Exchange where value is determined in Canadian dollars, and
 by reference to the price on the U.S. Exchange where value is determined in U.S. dollars;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if
 the Shares are not listed on both a Canadian Exchange and a U.S. Exchange, then as calculated
 in prong (a) by reference to the price on the Stock Exchange on which the Shares are listed
 (if more than one, then using the Stock Exchange on which a majority of the Shares are traded
 during the relevant period preceding the date of determination); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if
 the Shares are not then listed on any Stock Exchange, the value as is determined solely by
 the Board, acting reasonably and in good faith, and such determination shall be conclusive
 and binding on all Persons;

"**Non-Employee Director**" means a member of the Board who is not otherwise an employee or executive officer of the Corporation or a Subsidiary;

"**Option**" means an option granted by the Corporation to a Participant entitling such Participant to acquire a designated number of Shares from treasury at the Option Price;

"**Option Agreement**" means a written agreement between the Corporation and a Participant evidencing the grant of Options and the terms and conditions thereof, a form of which is attached hereto as Exhibit "A";

"**Option Price**" has the meaning ascribed thereto in Section 3.2 hereof;

"**Option Term**" has the meaning ascribed thereto in Section 3.4 hereof;

"**Outstanding Issue**" means the number of Shares that are outstanding as at a specified time, on a non- diluted basis;

"**Participant**" means any Eligible Participant that is granted one or more Awards under the Plan;

"**Performance Criteria**" means specified criteria, other than the mere continuation of employment or the mere passage of time, the satisfaction of which is a condition for the grant, exercisability, vesting or full enjoyment of an Option or Share Unit;

"**Performance Period**" means the period determined by the Board at the time any Option or Share Unit is granted or at any time thereafter during which any Performance Criteria and any other vesting conditions specified by the Board with respect to such Options or Share Unit are to be measured;

"**Person**" means an individual, corporation, Corporation, cooperative, partnership, trust, unincorporated association, entity with juridical personality or governmental authority or body, and pronouns which refer to a Person shall have a similarly extended meaning;

"**Plan**" means this Almonty Industries Inc. Omnibus Equity Incentive Plan, including the exhibits hereto and any amendments or supplements hereto made after the effective date hereof;

"**Redemption Date**" has the meaning ascribed thereto in Section 4.5(1) hereof;

"**Restriction Period**" means, with respect to a particular grant of Share Units, the period between the date of grant of such Share Units and the latest Vesting Date in respect of any portion of such Share Units;

"**SEC**" has the meaning ascribed thereto in Section 8.4(5) hereof;

"**Separation from Service**" has the meaning ascribed to it under Code Section 409A;

"**Share Compensation Arrangement**" means any stock option, stock option plan, employee stock purchase plan, long-term incentive plan or other compensation or incentive mechanism involving the issuance or potential issuance of Shares from treasury, including a share purchase from treasury by a full- time employee, director, officer, Insider, or Consultant which is financially assisted by the Corporation or a Subsidiary by way of a loan, guarantee or otherwise;

"**Share Unit**" means a right awarded to a Participant to receive a payment, in cash or Shares (as determined by the Corporation in its sole discretion), as provided in Article 4 hereof and subject to the terms and conditions of this Plan;

"**Share Unit Agreement**" means a written agreement between the Corporation and a Participant evidencing the grant of Share Units and the terms and conditions thereof, a form of which is attached hereto as Exhibit "C";

"**Share Unit Outside Expiry Date**" has the meaning ascribed thereto in Section 4.5(4) hereof;

"**Shares**" means the common shares in the share capital of the Corporation;

"**Stock Exchange**" means a Canadian Exchange, U.S. Exchange or any other stock exchange on which the Shares are listed or posted for trading;

"**Subsidiary**" means a corporation that is controlled, directly or indirectly, by the Corporation or a partnership of which the Corporation or a Subsidiary owns the majority of the equity interests and is a general partner;

"**Termination Date**" means the earliest of the following, as applicable (i) in the event of a Participant's resignation or retirement, the date on which such Participant ceases to be a director, executive officer, employee or Consultant of the Corporation or one of its Subsidiaries, (ii) in the event of the termination of the Participant's employment, or position as director, executive or officer of the Corporation or a Subsidiary, or Consultant, the later of (A) the effective date of the termination as specified in the notice of termination provided to the Participant by the Corporation or the Subsidiary, as the case may be, and (B) for any Participant who is an employee the Corporation or any of its Subsidiaries and whose employment is subject to the ESA and is terminated not for Cause, the minimum period of statutory notice of termination of employment required to be provided under the ESA, but excluding any additional period of contractual or reasonable notice of termination (whether such period is agreed or adjudicated) that is not actually worked by the Participant, and (iii) in the event of a Participant's death, on the date of death; provided that, in all cases, in applying the provisions of this Plan to DSUs granted to a Canadian Participant, the "Termination Date" shall be the latest date on which the Participant is neither a director, employee, executive or officer of the Corporation or of any affiliate of the Corporation (where "affiliate" has the meaning ascribed thereto by the Canada Revenue Agency for the purposes of paragraph 6801(d) of the ITA Regulations);

"**Termination of Service**" means that a Participant has ceased to be an Eligible Participant;

"**TSX**" means the Toronto Stock Exchange;

"**U.S.**" means the United States of America;

"**U.S. Exchange**" means such national securities exchange or trading system in the United States on which the Shares are listed or posted for trading;

"**U.S. Securities Act**" means the United States *Securities Act of 1933*, as amended;

"**U.S. Share Unit Outside Expiry Date**" has the meaning ascribed thereto in Section 4.1 hereof;

"**U.S. Taxpayer**" means a Participant who is a U.S. citizen, a U.S. permanent resident or other person who is subject to taxation on their income or in respect of Awards under the Code, provided that, for greater certainty, a Participant may be both a Canadian Participant and a U.S. Taxpayer; and

"**Vesting Date**" has the meaning ascribed thereto in Section 4.4 hereof.

**1.2** **Interpretation** 

(1) Whenever
 the Board is to exercise discretion or authority in the administration of the terms and conditions
 of this Plan, the term "discretion" or "authority" means the sole
 and absolute discretion of the Board.

(2) The
 provision of a table of contents, the division of this Plan into Articles, Sections and other
 subdivisions and the insertion of headings are for convenient reference only and do not affect
 the interpretation of this Plan.

(3) In
 this Plan, words importing the singular shall include the plural, and vice versa and words
 importing any gender include any other gender.

(4) The
 words "including", "includes" and "include" and any derivatives
 of such words mean "including (or includes or include) without limitation". As
 used herein, the expressions "Article", "Section" and other subdivision
 followed by a number, mean and refer to the specified Article, Section or other subdivision
 of this Plan, respectively.

(5) Unless
 otherwise specified in the Participant's Grant Agreement, all references to money amounts
 are to Canadian currency, and where any amount is required to be converted to or from a currency
 other than Canadian currency, such conversion shall be based on the exchange rate quoted
 by the Bank of Canada on the particular date.

(6) For
 purposes of this Plan, the legal representatives of a Participant shall only include the
 legal representative of the Participant's estate or will.

(7) If
 any action may be taken within, or any right or obligation is to expire at the end of, a
 period of days under this Plan, then the first day of the period is not counted, but the
 day of its expiry is counted.

**ARTICLE 2**

**PURPOSE AND ADMINISTRATION OF THE PLAN; GRANTING OF AWARDS**

**2.1** **Purpose of the Plan** 

The purpose of the Plan is to permit the Corporation to grant Awards to Eligible Participants, subject to certain conditions as hereinafter set forth, for the following purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to
 increase the interest in the Corporation's welfare of those Eligible Participants,
 who share responsibility for the management, growth and protection of the business of the
 Corporation or a Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to
 provide an incentive to such Eligible Participants to continue their services for the Corporation
 or a Subsidiary and to encourage such Eligible Participants whose skills, performance and
 loyalty to the objectives and interests of the Corporation or a Subsidiary are necessary
 or essential to its success, image, reputation or activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to
 reward Participants for their performance of services while working for the Corporation or
 a Subsidiary; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to
 provide a means through which the Corporation or a Subsidiary may attract and retain able
 Persons to enter its employment or service.

**2.2** **Implementation and Administration of the Plan** 

(1) The
 Plan shall be administered and interpreted by the board of directors of the Corporation (the
 "**Board**") or, if the Board by resolution so decides, by a committee or
 plan administrator appointed by the Board. If such committee or plan administrator is appointed
 for this purpose, all references to the "Board" herein will be deemed references
 to such committee or plan administrator. Nothing contained herein shall prevent the Board
 from adopting other or additional Share Compensation Arrangements or other compensation arrangements,
 subject to any required approvals.

(2) Subject
 to Article 7 and any applicable rules of a Stock Exchange, the Board may, from time to time,
 as it may deem expedient, adopt, amend and rescind rules and regulations or vary the terms
 of this Plan and/or any Award hereunder for carrying out the provisions and purposes of the
 Plan and/or to address tax or other requirements of any applicable jurisdiction.

(3) Subject
 to the provisions of this Plan, the Board is authorized, in its sole discretion, to make
 such determinations under, and such interpretations of, and take such steps and actions in
 connection with, the proper administration and operations of the Plan as it may deem necessary
 or advisable. The Board may delegate to officers or managers of the Corporation, or committees
 thereof, the authority, subject to such terms as the Board shall determine, to perform such
 functions, in whole or in part. Any such delegation by the Board may be revoked at any time
 at the Board's sole discretion. The interpretation, administration, construction and
 application of the Plan and any provisions hereof made by the Board, or by any officer, manager,
 committee or any other Person to which the Board delegated authority to perform such functions,
 shall be final and binding on the Corporation, its Subsidiaries and all Eligible Participants.

(4) No
 member of the Board or any Person acting pursuant to authority delegated by the Board hereunder
 shall be liable for any action or determination taken or made in good faith in the administration,
 interpretation, construction or application of the Plan or any Award granted hereunder. Members
 of the Board and any person acting at the direction or on behalf of the Board, shall, to
 the extent permitted by law, be fully indemnified and protected by the Corporation with respect
 to any such action or determination.

(5) The
 Plan shall not in any way fetter, limit, obligate, restrict or constrain the Board with regard
 to the allotment or issuance of any Shares or any other securities in the capital of the
 Corporation. For greater clarity, the Corporation shall not by virtue of this Plan be in
 any way restricted from declaring and paying stock dividends, repurchasing Shares or varying
 or amending its share capital or corporate structure.

**2.3** **Participation in this Plan** 

(1) The
 Corporation makes no representation or warranty as to the future market value of the Shares
 or with respect to any income tax matters affecting any Participant resulting from the grant,
 vesting, exercise or settlement of an Award, or transactions in the Shares, or otherwise
 in respect of participation under the Plan. Neither the Corporation, nor any of its directors,
 officers, employees, shareholders or agents shall be liable for anything done or omitted
 to be done by such Person or any other Person with respect to the price, time, quantity or
 other conditions and circumstances of the issuance of Shares hereunder, or in any other manner
 related to the Plan. For greater certainty, no amount will be paid to, or in respect of,
 a Participant under the Plan or pursuant to any other arrangement, and no additional Awards
 will be granted to such Participant to compensate for a downward fluctuation in the price
 of the Shares, nor will any other form of benefit be conferred upon, or in respect of, a
 Participant for such purpose. The Corporation and its Subsidiaries do not assume and shall
 not have responsibility for the income or other tax consequences resulting to any Participant
 and each Participant is advised to consult with his or her own tax advisors.

(2) Participants
 (and their legal representatives) shall have no legal or equitable right, claim, or interest
 in any specific property or asset of the Corporation or any of its Subsidiaries. No asset
 of the Corporation or any of its Subsidiaries shall be held in any way as collateral security
 for the fulfillment of the obligations of the Corporation or any of its Subsidiaries under
 this Plan. Unless otherwise determined by the Board, this Plan shall be unfunded. To the
 extent any Participant or his or her estate holds any rights by virtue of a grant of Awards
 under this Plan, such rights (unless otherwise determined by the Board) shall be no greater
 than the rights of an unsecured creditor of the Corporation.

(3) Unless
 otherwise determined by the Board, the Corporation shall not offer financial assistance to
 any Participant in regards to the exercise of any Award granted under this Plan.

**2.4** **Shares Subject to the Plan** 

(1) Subject
 to adjustment pursuant to Article 7 hereof, the securities that may be acquired by Participants
 pursuant to Awards under this Plan shall consist of authorized but unissued Shares, provided
 that, in the case of Share Units the Corporation (or applicable Subsidiary) may, at its sole
 discretion, elect to settle such Share Units and DSUs in cash or in Shares acquired in the
 open market by a Designated Broker for the benefit of a Participant.

(2) The
 maximum number of Shares reserved for issuance, in the aggregate, under this Plan shall be
 56,000,000, less any Shares underlying securities granted under any other Share Compensation
 Arrangement of the Corporation, if any. For the purposes of calculating the number of Shares
 reserved for issuance under this Plan, (i) each Option shall be counted as reserving one
 Share under the Plan and (ii) notwithstanding that the settlement of any Share Unit or DSU
 in Shares shall be at the sole discretion of the Corporation as provided herein, for purposes
 of the foregoing each Share Unit and each DSU shall, in each case, be counted as reserving
 one Share under the Plan. All of the Shares reserved for issuance under the Plan may (but
 not need be) issued pursuant to the exercise of ISOs.

(3) No
 Award may be granted if such grant would have the effect of causing the total number of Shares
 reserved for issuance under this Plan to exceed the maximum number of Shares reserved for
 issuance under this Plan as set out above.

(4) If
 (i) an outstanding Award (or portion thereof) expires or is forfeited, surrendered, cancelled
 or otherwise terminated for any reason without having been exercised, (ii) an outstanding
 Award (or portion thereof) is settled in cash or in the form of Shares acquired in the open
 market, or (iii) Shares acquired pursuant to an Award subject to forfeiture are forfeited,
 then in each such case the Shares reserved for issuance in respect of such Award (or portion
 thereof) will again be available for issuance under the Plan.

2.5 Limits
 with Respect to Insiders, Individual Limits, Annual Grant Limits and Non-Employee Director
 Limits

As long as the Shares are listed on the TSX:

(1) the
 maximum number of the Corporation's securities issuable to Insiders, at any time under
 the Plan, or when combined with all of the Corporation's other Share Compensation Arrangements,
 shall not exceed ten percent (10%) of the Corporation's total issued and outstanding
 securities;

(2) the
 maximum number of the Corporation's securities issued to Insiders, within any one-year
 period, under the Plan, or when combined with all of the Corporation's other Share
 Compensation Arrangements, shall not exceed ten percent (10%) of the Corporation's
 total issued and outstanding securities; and

(3) any
 Award granted pursuant to the Plan, or securities issued under any other Share Compensation
 Arrangement, prior to a Participant becoming an Insider, shall be excluded from the purposes
 of the limits set out in Section 2.5(1) and Section 2.5(2).

**2.6** **Granting of Awards** 

Any Award granted under or otherwise governed by the Plan shall be subject to the requirement that, if at any time counsel to the Corporation shall determine that the listing, registration or qualification of the Shares upon any stock exchange or under any law or regulation of any jurisdiction, or the consent or approval of any stock exchange or any governmental or regulatory body, is necessary as a condition of, or in connection with, the grant or settlement of such Award or the exercise of any Option or the issuance or purchase of Shares thereunder, as applicable, such Award may not be granted, settled or exercised, as applicable, in whole or in part unless such listing, registration, qualification, consent or approval shall have been effected or obtained on conditions acceptable to the Board. Nothing herein shall be deemed to require the Corporation to apply for or to obtain such listing, registration, qualification, consent or approval.

**ARTICLE 3**

**OPTIONS**

**3.1** **Nature of Options** 

An Option is an option granted by the Corporation to a Participant entitling such Participant to acquire a designated number of Shares from treasury at the Option Price, but subject to the provisions hereof. For greater certainty, the Corporation is obligated to issue and deliver the designated number of Shares on the exercise of an Option and shall have no independent discretion to settle an Option in cash or other property other than Shares issued from treasury. For the avoidance of doubt, no Dividend Equivalents shall be granted in connection with an Option.

**3.2** **Option Awards** 

Subject to the provisions set forth in this Plan and any shareholder or regulatory approval which may be required, the Board shall, from time to time by resolution, in its sole discretion, (i) designate the Eligible Participants who may receive Options under the Plan, (ii) fix the number of Options, if any, to be granted to each Eligible Participant and the date or dates on which such Options shall be granted (which shall not be prior to the date of the resolution of the Board), (iii) subject to Section 3.3, determine the price per Share to be payable upon the exercise of each such Option (the "**Option Price**") and the relevant vesting provisions (including Performance Criteria, if applicable) and the Option Term, the whole subject to the terms and conditions prescribed in this Plan or in any Option Agreement, and any applicable rules of a Stock Exchange.

**3.3** **Option Price** 

The Option Price in respect of any Option shall be determined and approved by the Board when such Option is granted, but shall not be less than the Market Value of a Share as of the date of the grant.

**3.4** **Option Term** 

The Board shall determine, at the time of granting the particular Option, the period during which the Option is exercisable, which shall not be more than fifteen (15) years from the date the Option is granted ("**Option Term**"). Unless otherwise determined by the Board, all unexercised Options shall be cancelled, without any compensation, at the expiry of such Options. Notwithstanding the expiration provisions hereof, if the date on which an Option Term expires falls within a Blackout Period or within nine Business Days after a Blackout Period Expiry Date, the expiration date of the Option will be the date that is ten Business Days after the Blackout Period Expiry Date. Notwithstanding anything else herein contained, the ten Business Day period referred to in this section may not be further extended by the Board.

**3.5** **Exercise of Options** 

Prior to its expiration or earlier termination in accordance with the Plan, each Option shall be exercisable at such time or times and/or pursuant to the achievement of such Performance Criteria and/or other vesting conditions as the Board, at the time of granting the particular Option, may determine in its sole discretion. For greater certainty, any exercise of Options by a Participant shall be made in compliance with the Corporation's insider trading policy.

**3.6** **Method of Exercise and Payment of Purchase Price** 

(1) Subject
 to the provisions of the Plan, an Option granted under the Plan shall be exercisable (from
 time to time as provided in Section 3.5 hereof) by the Participant (or by the legal representative
 of the Participant) by delivering a fully completed Exercise Notice, a form of which is attached
 hereto as Exhibit "B", to the Corporation at its registered office to the attention
 of the Chief Financial Officer of the Corporation (or the individual that the Chief Financial
 Officer of the Corporation may from time to time designate) or by giving notice in such other
 manner as the Corporation may from time to time designate, which notice shall specify the
 number of Shares in respect of which the Option is being exercised and shall be accompanied
 by payment, in full, of (i) the Option Price multiplied by the number of Shares specified
 in such notice, and (ii) such amount in respect of withholding taxes as the Corporation may
 require under Section 8.2. Such payment shall be in the form of cash, certified cheque, bank
 draft or any other form of payment deemed acceptable by the Board.

(2) Upon
 exercise of an Option, the Corporation shall, as soon as practicable after such exercise
 and receipt of all payments required to be made by the Participant to the Corporation in
 connection with such exercise, but no later than ten (10) Business Days following such exercise
 and payment, forthwith cause the transfer agent and registrar of the Shares either to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) deliver
 to the Participant (or to the legal representative of the Participant) a certificate or direct
 registration statement in the name of the Participant representing in the aggregate such
 number of Shares as the Participant (or to the legal representative of the Participant) shall
 have then paid for and as are specified in such Exercise Notice; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in
 the case of Shares issued in uncertificated form, cause the issuance of the aggregate number
 of Shares as the Participant (or the legal representative of the Participant) shall have
 then paid for and as are specified in such Exercise Notice, which Shares shall be evidenced
 by a book position on the register of the shareholders of the Corporation to be maintained
 by the transfer agent and registrar of the Shares.

(3) The
 Board may, at any time (including at the time of receipt by the Corporation of a notice to
 exercise Options from a Participant) and on such terms as it may in its discretion determine,
 grant to a Participant who is entitled to exercise an Option the alternative right (the "**Cashless Exercise Right**") to deal with such Option on a "cashless exercise"
 basis. Without limitation, the Board may determine in its discretion that such Cashless Exercise
 Right, if any, granted to a Participant in respect of any Options, entitles the Participant
 the right to surrender such Options, in whole or in part, to the Corporation upon giving
 notice in writing to the Corporation of the Participant's intention to exercise such
 Cashless Exercise Right and the number of Options in respect of which such Cashless Exercise
 Right is being exercised, and, upon such surrender, to receive, as consideration for the
 surrender of such Options as are specified in the notice, that number of Shares, disregarding
 fractions, equal to the quotient obtained by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) subtracting
 the applicable Option Price from the Market Value of a Share (determined as of the date such
 notice of cashless exercise is received by the Corporation), and multiplying the remainder
 by the number of Options specified in such notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) subtracting
 from the amount obtained under Section 3.6(3)(a) the amount of any applicable withholding
 taxes and other source deductions as determined by the Corporation in its sole discretion
 (unless such amounts are paid in cash by the Participant at the time of exercise); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) dividing
 the net amount obtained under subsection 3.6(3)(b) by the Market Value of a Share determined
 as of the date such notice of cashless exercise is received by the Corporation.

**3.7** **Option Agreements** 

Options shall be evidenced by an Option Agreement, in such form not inconsistent with the Plan as the Board may from time to time determine with reference to the form attached as Exhibit "A". The Option Agreement shall contain such terms that may be considered necessary in order that the Option will comply with any provisions respecting options in the income tax (including, in respect of Canadian Participants, such terms and conditions so as to ensure that the Option shall be continuously governed by section 7 of the ITA) or other laws in force in any country or jurisdiction of which the Participant may from time to time be a resident or citizen or provide services in or the rules of any regulatory body having jurisdiction over the Corporation.

**ARTICLE 4**

**RESTRICTED AND PERFORMANCE SHARE UNITS**

**4.1** **Nature of Share Units** 

A Share Unit is an Award that is a bonus for services rendered in the year of grant, that, upon settlement, entitles the recipient Participant to receive a cash payment equal to the Market Value of a Share (or, at the sole discretion of the Corporation, a Share), and subject to such restrictions and conditions on vesting as the Board may determine at the time of grant, unless such Share Unit expires prior to being settled. Restrictions and conditions on vesting conditions may, without limitation, be based on the passage of time during continued employment or other service relationship (sometimes referred to as a "Restricted Share Unit") the achievement of specified Performance Criteria (sometimes referred to as a "Performance Share Unit"), or both.

Unless otherwise provided in the applicable Share Unit Agreement, it is intended Share Units awarded to U.S. Taxpayers will be exempt from Code Section 409A under U.S. Treasury Regulation section 1.409A- 1(b)(4), and accordingly such Share Units will be settled/redeemed by March 15<sup>th</sup> of the year following the year in which such Share Units are not, or are no longer, subject to a substantial risk of forfeiture (as such term is interpreted under Code Section 409A). For greater certainty, upon the satisfaction or waiver or deemed satisfaction of all Performance Criteria and other vesting conditions, the Share Units of U.S. Taxpayers will no longer be subject to a substantial risk of forfeiture, and will be settled/redeemed by March 15<sup>th</sup> of the following year (the "**U.S. Share Unit Outside Expiry Date**").

It is intended that, in respect of Share Units granted to Canadian Participants as a bonus for services rendered in the year of grant, neither the Plan nor any Share Units granted hereunder will constitute a "salary deferral arrangement" as defined in subsection 248(1) of the ITA, by reason of the exemption in paragraph (k) thereof. All Share Units granted hereunder shall be in addition to, and not in substitution for or in lieu of, ordinary salary and wages received or receivable by any Canadian Participant in respect of his or her services to the Corporation or a Subsidiary, as applicable.

**4.2** **Share Unit Awards** 

(1) The
 Board shall, from time to time by resolution, in its sole discretion, (i) designate the Eligible
 Participants who may receive Share Units under the Plan, (ii) fix the number of Share Units,
 if any, to be granted to each Eligible Participant and the date or dates on which such Share
 Units shall be granted, (iii) determine the relevant conditions, vesting provisions (including
 the applicable Performance Period and Performance Criteria, if any) and Restriction Period
 of such Share Units, and (iv) any other terms and conditions applicable to the granted Share
 Units, which need not be identical and which, without limitation, may include non-competition
 provisions, subject to the terms and conditions prescribed in this Plan and in any Share
 Unit Agreement.

(2) Subject
 to the vesting and other conditions and provisions in this Plan and in the applicable Share
 Unit Agreement, each Share Unit awarded to a Participant shall entitle the Participant to
 receive, on settlement, a cash payment equal to the Market Value of a Share, or at the discretion
 of the Corporation (or applicable Subsidiary), one Share or any combination of cash and Shares
 as the Corporation (or applicable Subsidiary) in its sole discretion may determine, in each
 case less any applicable withholding taxes or other source deductions.

(3) For
 greater certainty, no Participant shall have any right to demand to be paid in, or receive,
 Shares in respect of any Share Unit, and, notwithstanding any discretion exercised by the
 Corporation (or applicable Subsidiary) to settle any Share Unit, or portion thereof, in the
 form of Shares, the Corporation (and each Subsidiary) reserves the right to change such form
 of payment at any time until payment is actually made.

**4.3** **Share Unit Agreements** 

(1) The
 grant of a Share Unit by the Board shall be evidenced by a Share Unit Agreement in such form
 not inconsistent with the Plan as the Board may from time to time determine with reference
 to the form attached as Exhibit "C". Such Share Unit Agreement shall be subject
 to all applicable terms and conditions of this Plan and may be subject to any other terms
 and conditions (including without limitation any recoupment, reimbursement or claw-back compensation
 policy as may be adopted by the Board from time to time) which are not inconsistent with
 this Plan and which the Board deems appropriate for inclusion in a Share Unit Agreement.
 The provisions of the various Share Unit Agreements issued under this Plan need not be identical.

(2) The
 Share Unit Agreement shall contain such terms that the Corporation considers necessary in
 order that the Share Unit will comply, for U.S. Taxpayers, with Code Section 409A and any
 provisions respecting restricted share units in the income tax laws (including, in respect
 of Canadian Participants, such terms and conditions so as to ensure that the Share Units
 shall not constitute a "salary deferral arrangement" as defined in subsection
 248(1) of the ITA, by reason of the exemption in paragraph (k) thereof) or other laws in
 force in any country or jurisdiction of which the Participant may from time to time be a
 resident or citizen or provide services in or the rules of any regulatory body having jurisdiction
 over the Corporation.

**4.4** **Vesting of Share Units** 

The Board shall have sole discretion to (i) determine if any vesting conditions with respect to a Share Unit, including any Performance Criteria or other vesting conditions contained in the applicable Share Unit Agreement, have been met, (ii) waive the vesting conditions applicable to Share Units (or deem them to be satisfied), and (iii) extend the Restriction Period with respect to any grant of Share Units, provided that (A) any such extension shall not result in the Restriction Period for such Shares Units extending beyond the Share Unit Outside Expiry Date, and (B) with respect to any grant of Share Units to a U.S. Taxpayer, such extension constitutes a substantial risk of forfeiture and such Share Units will continue to be exempt from (or otherwise comply with) Code Section 409A. The Corporation shall communicate to a Participant, as soon as reasonably practicable, the date on which all such applicable vesting conditions in respect of a grant of Share Units to the Participant have been satisfied, waived, or deemed satisfied and such Share Units have vested (the "**Vesting Date**"). Notwithstanding the foregoing, if the date on which any Share Units would otherwise vest falls within a Blackout Period or within nine Business Days after a Blackout Period Expiry Date, the Vesting Date of such Share Units will be deemed to be the date that is the earlier of (i) ten Business Days after the Blackout Period Expiry Date (which ten Business Day period may not be further extended by the Board) and (ii) the Share Unit Outside Expiry Date in respect of such Share Units, provided that in no event will the redemption and settlement of any Share Units of a Participant who is a U.S. Taxpayer be delayed beyond March 15<sup>th</sup> of the calendar year immediately following the year in which such Share Units are not, or are no longer, subject to a substantial risk of forfeiture (as such term is interpreted under Code Section 409A).

**4.5** **Redemption / Settlement of Share Units** 

(1) Subject
 to the provisions of this Section 4.5, a Participant's vested Share Units shall be
 redeemed in consideration for a cash payment on the date (the "**Redemption Date** ")
 that is the earliest of (i) the 15<sup>th</sup> day following the applicable Vesting Date
 for such vested Share Units (or, if such day is not a Business Day, on the immediately following
 Business Day), (ii) the Share Unit Outside Expiry Date, and (iii) in the case of a Participant
 who is a U.S. Taxpayer, the U.S. Share Unit Outside Expiry Date.

(2) Subject
 to the provisions of this Section 4.5, prior to the Redemption Date in respect of a Participant's
 vested Share Units, the Corporation (or any Subsidiary that is party to an Employment Agreement
 or Consulting Agreement with the Participant whose vested Share Units are to be redeemed)
 shall, at its sole discretion, be entitled to elect to settle all or any portion of the cash
 payment obligation otherwise arising in respect of the Participant's vested Share Units
 either (i) by the issuance of Shares to the Participant (or the legal representative of the
 Participant, if applicable) on the Redemption Date, or (ii) by paying all or a portion of
 such cash payment obligation to the Designated Broker, who shall use the funds received to
 purchase Shares in the open market, which Shares shall be registered in the name of the Designated
 Broker in a separate account for the Participant's benefit.

(3) Settlement
 of a Participant's vested Share Units shall take place on the Redemption Date as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) where
 the Corporation (or applicable Subsidiary) has elected to settle all or a portion of the
 Participant's vested Share Units in Shares issued from treasury:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in
 the case of Shares issued in certificated form, by delivery to the Participant (or to the
 legal representative of the Participant, if applicable) of a direct registration statement
 or share certificate in the name of the Participant (or the legal representative of the Participant,
 if applicable) representing the aggregate number of Shares that the Participant is entitled
 to receive, subject to satisfaction of any applicable withholding in accordance with Section
 8.2; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in
 the case of Shares issued in uncertificated form, by the issuance to the Participant (or
 to the legal representative of the Participant, if applicable) of the aggregate number of
 Shares that the Participant is entitled to receive, subject to satisfaction of any applicable
 withholding tax under Section 8.2, which Shares shall be evidenced by a book position on
 the register of the shareholders of the Corporation to be maintained by the transfer agent
 and registrar of the Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) where
 the Corporation or a Subsidiary has elected to settle all or a portion of the Participant's
 vested Share Units in Shares purchased in the open market, by delivery to the Designated
 Broker of readily available funds in an amount equal to the Market Value of a Share as of
 the Redemption Date multiplied by the number of vested Share Units to be settled in Shares
 purchased in the open market, less the amount of any applicable withholding tax under Section
 8.2, along with directions instructing the Designated Broker to use such funds to purchase
 Shares in the open market for the benefit of the Participant and to be evidenced by a confirmation
 from the Designated Broker of such purchase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any
 cash payment to which the Participant is entitled (excluding, for the avoidance of doubt,
 any amount payable in respect of the Participant's Share Units that the Corporation
 or a Subsidiary has elected to settle in Shares) shall, subject to satisfaction of any applicable
 withholding tax under Section 8.2, be paid to the Participant (or to the legal representative
 of the Participant, if applicable) by the Corporation or Subsidiary of which the Participant
 is a director, employee, executive officer or Consultant, in cash, by cheque or by such other
 payment method as the Corporation and Participant may agree;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 cash payment obligation arising in respect of the redemption and settlement of a vested Share
 Unit pursuant to this Section 4.5 shall be equal to the Market Value of a Share as of the
 applicable Redemption Date. For the avoidance of doubt, the aggregate cash amount to be paid
 to a Participant (or the legal representative of the Participant, if applicable) in respect
 of a particular redemption of the Participant's vested Share Units shall, subject to
 any adjustments in accordance with Section 7.1 and any withholding required pursuant to Section
 8.2, be equal to the Market Value of a Share as of the Redemption Date for such vested Share
 Units multiplied by the number of vested Share Units in the Participant's Account at
 the commencement of the Redemption Date (after deducting any such vested Share Units in the
 Participant's Account in respect of which the Corporation (or applicable Subsidiary)
 makes an election under Section 4.5(2) to settle such vested Share Units in Shares);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) where
 the Corporation or a Subsidiary has elected to settle a portion, but not all, of the Participant's
 vested Share Units in Shares, the Participant shall be deemed to have instructed the Corporation
 or Subsidiary, as applicable, to withhold from the cash portion of the payment to which the
 Participant is otherwise entitled such amount as may be required in accordance with Section
 8.2 and to remit such withheld amount to the applicable taxation authorities on account of
 any withholding tax obligations, and the Corporation or Subsidiary, as applicable, shall
 deliver any remaining cash payable, after making any such remittance, to the Participant
 (or to the legal representative of the Participant, if applicable) as soon as reasonable
 practicable. In the event that the cash portion payable to settle a Participant's Share
 Units in the foregoing circumstances is not sufficient to satisfy the withholding obligations
 of the Corporation or a Subsidiary pursuant to Section 8.2, the Corporation or Subsidiary,
 as applicable, shall be entitled to satisfy any remaining withholding obligation by any other
 mechanism as may be required or determined by the Corporation or Subsidiary as appropriate;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Where,
 as a result of any adjustment in accordance with Section 7.1 and/or any withholding required
 pursuant to Section 8.2, the aggregate number of Shares to be received by a Participant upon
 an election by the Corporation (or applicable Subsidiary) to settle all or a portion of the
 Participant's vested Share Units in Shares includes a fractional Share, the aggregate
 number of Shares to be received by the Participant shall be rounded down to the nearest whole
 number of Shares.

(4) Notwithstanding
 any other provision in this Article 4, no payment, whether in cash or in Shares, shall be
 made in respect of the settlement of any Share Units later than December 15 of the third
 (3<sup>rd</sup>) calendar year following the end of the calendar year in respect of which
 such Share Unit is granted (the "**Share Unit Outside Expiry Date** ").

**4.6** **Award of Dividend Equivalents** 

Dividend Equivalents may, as determined by the Board in its sole discretion, be awarded as a bonus for services in the year of the dividend, in respect of unvested Share Units in a Participant's Account on the same basis as cash dividends declared and paid on Shares as if the Participant was a shareholder of record of Shares on the relevant record date. Dividend Equivalents, if any, will be credited to the Participant's Account in additional Share Units, the number of which shall be equal to a fraction where the numerator is the product of (i) the number of Share Units in such Participant's Account as of the record date for payment of the dividend multiplied by (ii) the dividend paid per Share and the denominator of which is the Market Value of one Share calculated as of the date that dividends are paid. Any additional Share Units credited to a Participant's Account as a Dividend Equivalent shall be subject to the same terms and conditions (including vesting and Restriction Periods) as the Share Units in respect of which such additional Share Units are credited and shall be deemed to have been awarded on the same date and subject to the same expiry date as the Share Units in respect of which such additional Share Units are credited.

In the event that the Participant's applicable Share Units do not vest, all Dividend Equivalents, if any, associated with such Share Units will be forfeited by the Participant.

**ARTICLE 5**

**DEFERRED SHARE UNITS**

**5.1** **Nature of Deferred Share Units** 

A deferred share unit ("**DSU**") is an Award for services rendered, or for future services to be rendered, and that, upon settlement, entitles the recipient Participant to receive cash or acquire Shares, as determined by the Corporation in its sole discretion, unless such DSU expires prior to being settled.

For greater certainty, the aggregate of all amounts which may be received in respect of a DSU shall depend, at all times, on the fair market value of shares of the capital stock of the Corporation or any corporation related (within the meaning of the ITA) thereto within the period that commences one year prior to the Participant's Termination Date and ends at the time the amount is received.

**5.2** **Market Fluctuation** 

For greater certainty, no amount will be paid or benefit provided to, or in respect of, a Participant, or to any person who does not deal at arm's length with a Participant for the purposes of the ITA, under the Plan or pursuant to any other arrangement, and no additional Awards will be granted to such Participant for the purpose of reducing the impact, in whole or in part, of any reduction in the fair market value of the shares of the Corporation or any corporation related (within the meaning of the ITA) thereto.

**5.3** **DSU Awards** 

(1) Subject
 to the provisions of this Plan and the requirements of paragraph 6801(d) of the ITA Regulations
 and Code Section 409A, the Board may, from time to time by resolution, in its sole discretion,
 (i) designate the Non-Employee Directors who may receive DSUs under the Plan, (ii) fix the
 number of DSUs, if any, to be granted to any Non-Employee Director and the date or dates
 on which such DSUs shall be granted, and (iii) determine any other terms and conditions applicable
 to the granted DSUs.

(2) Notwithstanding
 Section 5.3(1), each Electing Person is given, subject to the conditions stated herein, the
 right to elect in accordance with Section 5.3(3), to participate in the grant of additional
 DSUs pursuant to this Article 5. An Electing Person who elects to participate in the grant
 of additional DSUs pursuant to this Article 5 shall receive their Elected Amount (as that
 term is defined below) in the form of DSUs in lieu of cash. The "**Elected Amount** "
 shall be an amount, as elected by the Director, in accordance with applicable tax law, between
 0% and 100% of any Director Fees that are otherwise intended to be paid in cash (the "**Cash Fees** ").

(3) Each
 Electing Person who elects to receive their Elected Amount in the form of DSUs in lieu of
 cash will be required to file a notice of election in the form of Exhibit "E"
 hereto (the "**Election Notice**") with the Chief Financial Officer of the
 Corporation: (i) in the case of an existing Electing Person, by December 31<sup>st</sup>
 in the year prior to the year to which such election is to apply (other than for Director
 Fees payable for the 2025 financial year, in which case any Electing Person who is not a
 U.S. Taxpayer as of the date of this Plan shall file the Election Notice by the date that
 is 30 days from the effective date of the Plan with respect to compensation paid for services
 to be performed after such date); and (ii) in the case of a newly appointed Electing Person
 who is not a U.S. Taxpayer, within 30 days of such appointment with respect to compensation
 paid for services to be performed after such date. In the case of an existing Electing Person
 who is a U.S. Taxpayer as of the Effective Date of this Plan, an initial Election Notice
 may be filed by the date that is 30 days from the Effective Date only with respect to compensation
 paid for services to be performed after the Election Date; and, in the case of a newly appointed
 Electing Person who is a U.S. Taxpayer, an Election Notice may be filed within 30 days of
 such appointment only with respect to compensation paid for services to be performed after
 the Election Date. If no election is made within the foregoing time frames, the Electing
 Person shall be deemed to have elected to be paid the entire amount of his or her Cash Fees
 in cash.

(4) Subject
 to Subsection 5.3(5), the election of an Electing Person under Subsection 5.3(3) shall be
 deemed to apply to all Cash Fees that would be paid subsequent to the filing of the Election
 Notice, and such Electing Person is not required to file another Election Notice for subsequent
 calendar years.

(5) An
 election by an Electing Person to receive the Elected Amount in DSUs in lieu of cash for
 any calendar year is irrevocable for that calendar year after the expiration of the election
 period for that year and any termination of the election will not take effect until the first
 day of the calendar year following the calendar year in which the termination notice in the
 form of Exhibit "F" is delivered.

(6) Subject
 to the vesting and other conditions and provisions in this Plan and in any DSU Agreement,
 each DSU awarded to a Participant shall entitle the Participant to receive on settlement
 a cash payment equal to the Market Value of a Share, or at the discretion of the Corporation,
 one Share or any combination of cash and Shares as the Corporation in its sole discretion
 may determine. For greater certainty, no Participant shall have any right to demand to be
 paid in, or receive, Shares in respect of any DSU, and, notwithstanding any discretion exercised
 by the Corporation to settle any DSU, or portion thereof, in the form of Shares, the Corporation
 reserves the right to change such form of payment at any time until payment is actually made.

**5.4** **DSU Agreements** 

(1) The
 grant of a DSU by the Board shall be evidenced by a DSU Agreement in such form not inconsistent
 with the Plan as the Board may from time to time determine with reference to the form attached
 as Exhibit "D". Such DSU Agreement shall be subject to all applicable terms and
 conditions of this Plan and may be subject to any other terms and conditions (including without
 limitation any recoupment, reimbursement or claw-back compensation policy as may be adopted
 by the Board from time to time) which are not inconsistent with this Plan and which the Board
 deems appropriate for inclusion in a DSU Agreement. The provisions of the various DSU Agreements
 issued under this Plan need not be identical.

(2) Each
 DSU Agreement shall contain such terms that the Corporation considers necessary in order
 that the DSUs granted thereunder to U.S. Taxpayers will comply with Code Section 409A and
 any provisions respecting restricted share units in the income tax (including, in respect
 of Canadian Participants, such terms and conditions so as to ensure that the DSUs shall not
 constitute a "salary deferral arrangement" as defined in subsection 248(1) of
 the ITA by reason of the exemption in paragraph 6801(d) of the ITA Regulations) or other
 laws in force in any country or jurisdiction of which the Participant may from time to time
 be a resident or citizen or provide services in or the rules of any regulatory body having
 jurisdiction over the Corporation.

**5.5** **Redemption / Settlement of DSUs** 

(1) Except
 as otherwise provided in this Section 5.5 or Section 9.7 of this Plan, (i) DSUs of a Participant
 who is a U.S. Taxpayer shall be redeemed and settled by the Corporation as soon as reasonably
 practicable following the Participant's Separation from Service, and (ii) DSUs of a
 Participant who is a Canadian Participant (or who is neither a U.S Taxpayer nor a Canadian
 Participant) shall be redeemed and settled by the Corporation as soon as reasonably practicable
 following the Participant's Termination Date, but in any event not later than, and
 any payment (whether in cash or in Shares) in respect of the settlement of such DSUs shall
 be made no later than, December 15 of the first (1<sup>st</sup>) calendar year commencing
 immediately after the Participant's Termination Date. Notwithstanding the foregoing,
 if a payment in settlement of DSUs of a Participant who is both a U.S. Taxpayer and a Canadian
 Participant:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) is
 required as a result of his or her Separation from Service in accordance with clause (i)
 above, but such payment would result in such DSUs failing to satisfy the requirements of
 paragraph 6801(d) of the ITA Regulations, and the Board determines that it is not practical
 to make such payment in some other manner or at some other time that complies with both Code
 Section 409A and paragraph 6801(d) of the ITA Regulations, then such payment will be made
 to a trustee to be held in trust for the benefit of the Participant in a manner that causes
 the payment to be included in the Participant's income under the Code but does not
 contravene the requirements of paragraph 6801(d) of the ITA Regulations, and the amount shall
 thereafter be paid out of the trust at such time and in such manner as complies with the
 requirements of paragraph 6801(d) of the ITA Regulations; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) is
 required pursuant to clause (ii) above, but such payment would result in such DSUs failing
 to satisfy the requirements of Code Section 409A because the Participant has not experienced
 a Separation from Service, and if the Board determines that it is not practical to make such
 payment in some other manner or at some other time that satisfies the requirements of both
 Code Section 409A and paragraph 6801(d) of the ITA Regulations, then the Participant shall
 forfeit such DSUs without compensation therefore.

(2) The
 Corporation will have, at its sole discretion, the ability to elect to settle all or any
 portion of the cash payment obligation arising in respect of the redemption and settlement
 of a Participant's DSUs by either (i) the issuance of Shares to the Participant (or
 the legal representative of the Participant, if applicable) on the DSU Redemption Date, or
 (ii) by paying all or a portion of such cash payment obligation to the Designated Broker,
 who shall use the funds received to purchase Shares in the open market, which Shares shall
 be registered in the name of the Designated Broker in a separate account for the Participant's
 benefit. For greater certainty, the Corporation shall not pay any cash or issue any Shares
 to a Participant in satisfaction of the redemption of a Participant's DSUs prior to
 the Corporation being satisfied, in its sole discretion, that all applicable withholding
 taxes under Section 8.2 will be timely withheld or received and remitted to the appropriate
 taxation authorities in respect of any particular Participant and any particular DSUs.

(3) The
 redemption and settlement of a Participant's DSUs shall occur on the applicable DSU
 Redemption Date as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) where
 the Corporation has elected to settle all or a portion of the Participant's DSUs in
 Shares issued from treasury,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in
 the case of Shares issued in certificated form, delivery to the Participant (or to the legal
 representative of the Participant, if applicable) of a direct registration statement or share
 certificate in the name of the Participant (or the legal representative of the Participant,
 if applicable) representing the aggregate number of Shares that the Participant is entitled
 to receive, subject to satisfaction of any applicable withholding in accordance with Section
 8.2; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in
 the case of Shares issued in uncertificated form, issuance to the Participant (or to the
 legal representative of the Participant, if applicable) of the aggregate number of Shares
 that the Participant is entitled to receive, subject to satisfaction of any applicable withholding
 tax under Section 8.2, which Shares shall be evidenced by a book position on the register
 of the shareholders of the Corporation to be maintained by the transfer agent and registrar
 of the Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) where
 the Corporation or a Subsidiary has elected to settle all or a portion of the Participant's
 DSUs in Shares purchased in the open market, by delivery to the Designated Broker of readily
 available funds in an amount equal to the Market Value of a Share as of the DSU Redemption
 Date multiplied by the number of DSUs being redeemed to be settled in Shares purchased in
 the open market, less the amount of any applicable withholding tax under Section 8.2, along
 with directions instructing the Designated Broker to use such funds to purchase Shares in
 the open market for the benefit of the Participant and to be evidenced by a confirmation
 from the Designated Broker of such purchase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any
 cash payment to which the Participant is entitled (excluding, for the avoidance of doubt,
 any amount payable in respect of the Participant's DSUs that the Corporation has elected
 to pay in Shares) shall, subject to satisfaction of any applicable withholding tax under
 Section 8.2, be paid to the Participant (or to the legal representative of the Participant,
 if applicable) by the Corporation in cash, by cheque or by such other payment method as the
 Corporation and Participant may agree;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 cash payment obligation by the Corporation in respect of the redemption and settlement of
 a DSU pursuant to this Section 5.5 shall be equal to the Market Value of a Share as of the
 applicable DSU Redemption Date. For the avoidance of doubt, the aggregate cash amount to
 be paid to a Participant (or the legal representative of the Participant, if applicable)
 in respect of a particular redemption of the Participant's DSUs shall, subject to any
 adjustment in accordance with Section 7.1 and any withholding required pursuant to Section
 8.2, be equal to the Market Value of a Share as of the DSU Redemption Date for such DSUs
 multiplied by the number of DSUs being redeemed (after deducting any such DSUs in respect
 of which the Corporation makes an election under Section 5.5(2) to settle such DSUs in Shares);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) where,
 as a result of any adjustment in accordance with Section 7.1 and/or any withholding required
 pursuant to Section 8.2, the aggregate number of Shares to be received by a Participant upon
 an election by the Corporation to settle all or a portion of the Participant's DSUs
 includes a fractional Share, the aggregate number of Shares to be received by the Participant
 shall be rounded down to the nearest whole number of Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) where
 the Corporation has elected to settle a portion, but not all, of the Participant's
 DSUs in Shares, the Participant shall be deemed to have instructed the Corporation to withhold
 from the cash portion of the payment to which the Participant is otherwise entitled such
 amount as may be required in accordance with Section 8.2 and to remit such withheld amount
 to the applicable taxation authorities on account of any withholding obligations of the Corporation,
 and the Corporation shall deliver any remaining cash payable, after making any such remittance,
 to the Participant (or to the legal representative of the Participant, if applicable) as
 soon as reasonable practicable. In the event that the cash portion elected by the Corporation
 to settle the Participant's Share Units is not sufficient to satisfy the withholding
 obligations of the Corporation pursuant to Section 8.2, any remaining amounts shall be satisfied
 by the Corporation by any other mechanism as may be required or determined by the Corporation
 as appropriate.

**ARTICLE 6**

**GENERAL CONDITIONS**

**6.1** **General Conditions Applicable to Awards** 

Each Award shall be subject to the following conditions:

(1) **Vesting Period**. Each Award granted hereunder shall vest in accordance with the terms of this
 Plan and the Grant Agreement entered into in respect of such Award. The Board has the right,
 in its sole discretion, to waive any vesting conditions or accelerate the vesting of any
 Award, or to deem any Performance Criteria or other vesting conditions to be satisfied, notwithstanding
 the vesting schedule set forth for such Award, provided that the settlement of a DSU shall
 not be accelerated.

(2) **Employment**.
 Notwithstanding any express or implied term of this Plan to the contrary, the granting of
 an Award pursuant to the Plan shall in no way be construed as a guarantee by the Corporation
 or a Subsidiary to the Participant of employment or another service relationship with the
 Corporation or a Subsidiary. The granting of an Award to a Participant shall not impose upon
 the Corporation or a Subsidiary any obligation to retain the Participant in its employ or
 service in any capacity. Nothing contained in this Plan or in any Award granted under this
 Plan shall interfere in any way with the rights of the Corporation or any of its Subsidiaries
 in connection with the employment, retention or termination of any such Participant. The
 loss of existing or potential profit in Shares underlying Awards granted under this Plan
 shall not constitute an element of damages in the event of termination of a Participant's
 employment or service in any office or otherwise.

(3) **Grant of Awards**. Eligibility to participate in this Plan does not confer upon any Eligible
 Participant any right to be granted Awards pursuant to this Plan. Granting Awards to any
 Eligible Participant does not confer upon any Eligible Participant the right to receive nor
 preclude such Eligible Participant from receiving any additional Awards at any time. The
 extent to which any Eligible Participant is entitled to be granted Awards pursuant to this
 Plan will be determined in the sole discretion of the Board. Participation in the Plan shall
 be entirely voluntary and any decision not to participate shall not affect an Eligible Participant's
 relationship or employment with the Corporation or any Subsidiary.

(4) **Rights as a Shareholder**. Neither the Participant nor such Participant's personal representatives
 or legatees shall have any rights whatsoever as shareholder in respect of any Shares covered
 by such Participant's Awards by reason of the grant of such Award until such Award
 has been duly exercised or settled, as applicable, and, if determined by the Corporation,
 Shares have been issued in respect thereof. Without in any way limiting the generality of
 the foregoing and except as provided under this Plan, no adjustment shall be made for dividends
 or other rights for which the record date is prior to the date such Shares have been issued.

(5) **Conformity to Plan**. In the event that an Award is granted or a Grant Agreement is executed which
 does not conform in all particulars with the provisions of the Plan, or purports to grant
 Awards on terms different from those set out in the Plan, the Award or the grant of such
 Award shall not be in any way void or invalidated, but the Award so granted will be adjusted
 to become, in all respects, in conformity with the Plan.

(6) **Non-Transferrable Awards**. Except as specifically provided in a Grant Agreement approved by the Board, each
 Award granted under the Plan is personal to the Participant and shall not be assignable or
 transferable by the Participant, whether voluntarily or by operation of law, except by will
 or by the laws of succession of the domicile of the deceased Participant. No Award granted
 hereunder shall be pledged, hypothecated, charged, transferred, assigned or otherwise encumbered
 or disposed of on pain of nullity.

(7) **Participant's Entitlement**. Except as otherwise provided in this Plan (including, without limiting the
 generality of the foregoing, pursuant to Section 6.2), or unless the Board permits otherwise,
 or unless required by legislation applicable to the Participant (i) upon any Subsidiary of
 the Corporation ceasing to be a Subsidiary of the Corporation, Awards previously granted
 under this Plan that, at the time of such change, are held by a Person who is a director,
 executive officer, employee or Consultant of such Subsidiary of the Corporation and not of
 the Corporation itself, whether or not then exercisable, shall automatically terminate on
 the date of such change, and (ii) no Participant who ceases to be employed due to resignation,
 retirement, death or termination shall have any entitlement under this Plan after the Participant's
 Termination Date, and no damages or compensation shall be payable due to the cessation of
 the Participant's employment, regardless of the reason for such termination, which
 party initiates it, and whether lawful or unlawful, voluntary or involuntary, and whether
 notice is or is not given. For certainty, this Plan displaces any and all common law rights
 that a Participant may have or claim to have in respect of the Plan.

**6.2** **General Conditions Applicable to Options** 

Each Option shall be subject to the following conditions:

(1) **Termination for Cause**. Unless otherwise provided in a Grant Agreement, upon a Participant ceasing
 to be an Eligible Participant for Cause, any vested or unvested Option granted to such Participant
 shall terminate immediately upon the Participant's Termination Date. For the purposes
 of the Plan, the determination by the Corporation that the Participant was discharged for
 Cause shall be binding on the Participant.

(2) **Termination not for Cause**. Unless otherwise provided in a Grant Agreement, upon a Participant ceasing
 to be an Eligible Participant as a result of his or her employment or service relationship
 with the Corporation or a Subsidiary being terminated without Cause (including, for the avoidance
 of doubt, as a result of any Subsidiary of the Corporation ceasing to be a Subsidiary of
 the Corporation, as contemplated by Section 6.1(7)), (i) each unvested Option granted to
 such Participant shall expire and become void immediately upon the Participant's Termination
 Date, and (ii) each vested Option held by such Participant shall cease to be exercisable
 on the earlier of (A) seven (7) days after the Participant's Termination Date (or such
 later date as the Board may, in its sole discretion, determine); and (B) the expiry date
 of such Option as set forth in the applicable Grant Agreement, after which such vested Option
 will expire.

(3) **Resignation**.
 Unless otherwise provided in a Grant Agreement, upon a Participant ceasing to be an Eligible
 Participant as a result of his or her resignation from the Corporation or a Subsidiary, (i)
 each unvested Option granted to such Participant shall terminate and become void immediately
 upon the Participant's Termination Date, and (ii) each vested Option held by such Participant
 shall cease to be exercisable on the earlier of (A) seven (7) days after the Participant's
 Termination Date; and (B) the expiry date of such Option as set forth in the applicable Grant
 Agreement, after which such vested Option will expire.

(4) **Permanent Disability/Retirement**. Unless otherwise provided in a Grant Agreement, upon a Participant
 ceasing to be an Eligible Participant by reason of retirement or permanent disability, (i)
 each unvested Option granted to such Participant shall terminate and become void immediately
 upon the Participant's Termination Date, and (ii) each vested Option held by such Participant
 shall cease to be exercisable on the earlier of (A) seven (7) days after the Participant's
 Termination Date; and (B) the expiry date of such Option as set forth in the applicable Grant
 Agreement, after which such vested Option will expire.

(5) **Death**.
 Unless otherwise provided in a Grant Agreement, upon a Participant ceasing to be an Eligible
 Participant by reason of death, (i) each unvested Option granted to such Participant shall
 terminate and become void effective immediately prior to the Eligible Participant's
 time of death, and (ii) each vested Option held by such Participant at the time of death
 may be exercised by the legal representative of the Participant, provided that any such vested
 Option shall cease to be exercisable on the earlier of (A) the date that is one year after
 the Participant's death or (B) the expiry date of such Option as set forth in the applicable
 Grant Agreement, after which such vested Option will expire.

(6) **Leave of Absence**. Unless otherwise provided in a Grant Agreement, upon a Participant electing
 a voluntary leave of absence of more than twelve (12) months, including maternity and paternity
 leaves, the Board may determine, at its sole discretion but subject to applicable laws, that
 such Participant's participation in the Plan shall be terminated, provided that all
 vested Options shall remain outstanding and in effect until the applicable exercise date,
 or an earlier date determined by the Board at its sole discretion.

**6.3** **General Conditions Applicable to Share Units** 

Each Share Unit shall be subject to the following conditions:

(1) **Termination for Cause and Resignation**. Unless otherwise provided in a Grant Agreement, upon a Participant
 ceasing to be an Eligible Participant for Cause or as a result of his or her resignation
 from the Corporation or a Subsidiary, the Participant's participation in the Plan shall
 be terminated immediately upon the Participant's Termination Date, all Share Units
 credited to such Participant's Account that have not vested as of the Participant's
 Termination Date shall be forfeited and cancelled, and the Participant's rights that
 relate to such Participant's unvested Share Units shall be forfeited and cancelled
 on the Termination Date.

(2) **Death, Leave of Absence or Termination of Service**. Unless otherwise provided in a Grant Agreement,
 except as otherwise determined by the Board from time to time, at its sole discretion, upon
 a Participant electing a voluntary leave of absence of more than twelve (12) months, including
 maternity and paternity leaves, or upon a Participant ceasing to be Eligible Participant
 as a result of (i) death, (ii) retirement, (iii) Termination of Service for reasons other
 than for Cause, (iv) his or her employment or service relationship with the Corporation or
 a Subsidiary being terminated by reason of injury or disability, all unvested Share Units
 in the Participant's Account as of such date relating to a Restriction Period in progress
 shall be forfeited and cancelled. Notwithstanding the foregoing, if the Board, in its sole
 discretion, instead accelerates the vesting or waives vesting conditions with respect to
 all or some portion of outstanding unvested Share Units, the date of such action is the Vesting
 Date.

(3) **General**.
 For greater certainty, where (i) a Participant's employment or service relationship
 with the Corporation or a Subsidiary is terminated pursuant to Section 6.3(1) or Section
 6.3(2) hereof or (ii) a Participant elects for a voluntary leave of absence pursuant to Section
 6.3(2) hereof following the satisfaction of all vesting conditions in respect of particular
 Share Units but before receipt of the corresponding distribution or payment in respect of
 such Share Units, the Participant shall remain entitled to such distribution or payment.

**ARTICLE 7**

**ADJUSTMENTS AND AMENDMENTS**

**7.1** **Adjustment to Shares Subject to Outstanding Awards** 

At any time after the grant of an Award to a Participant and prior to the expiration of the term of such Award or the forfeiture or cancellation of such Award, in the event of (i) any subdivision of the Shares into a greater number of Shares, (ii) any consolidation of Shares into a lesser number of Shares, (iii) any reclassification, reorganization or other change affecting the Shares, (iv) any merger, amalgamation or consolidation of the Corporation with or into another corporation, or (v) any distribution to all holders of Shares or other securities in the capital of the Corporation, of cash, evidences of indebtedness or other assets of the Corporation (excluding an ordinary course dividend in cash or shares, but including for greater certainty shares or equity interests in a subsidiary or business unit of the Corporation or one of its subsidiaries or cash proceeds of the disposition of such a subsidiary or business unit) or any transaction or change having a similar effect, then the Board shall in its sole discretion, subject to the required approval of any Stock Exchange, determine the appropriate adjustments or substitutions to be made in such circumstances in order to maintain the economic rights of the Participant in respect of such Award in connection with such occurrence or change, including, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) adjustments
 to the exercise price of such Award without any change in the total price applicable to the
 unexercised portion of the Award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) adjustments
 to the number of Shares or the computation of the cash payment to which the Participant is
 entitled upon exercise or settlement of such Award; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) adjustments
 to the number or kind of shares reserved for issuance pursuant to the Plan.

**7.2** **Change of Control** 

(1) In
 the event of a potential Change of Control, the Board shall have the power, in its sole discretion,
 to accelerate the vesting of Options to assist the Participants to tender into a takeover
 bid or participating in any other transaction leading to a Change of Control. For greater
 certainty, in the event of a take-over bid or any other transaction leading to a Change of
 Control, the Board shall have the power, in its sole discretion, to (i) provide that any
 or all Options shall thereupon terminate, provided that any such outstanding Options that
 have vested shall remain exercisable until the consummation of such Change of Control, and
 (ii) permit Participants to conditionally exercise their vested Options immediately prior
 to the consummation of the take-over bid and the Shares issuable under such Options to be
 tendered to such bid, such conditional exercise to be conditional upon the take-up by such
 offeror of the Shares or other securities tendered to such take-over bid in accordance with
 the terms of such take-over bid (or the effectiveness of such other transaction leading to
 a Change of Control). If, however, the potential Change of Control referred to in this Section
 7.2 is not completed within the time specified therein (as the same may be extended), then
 notwithstanding this Section 7.2 or the definition of "Change of Control": (i)
 any conditional exercise of vested Options shall be deemed to be null, void and of no effect,
 and such conditionally exercised Options shall for all purposes be deemed not to have been
 exercised, (ii) Shares which were issued pursuant to the exercise of Options which vested
 pursuant to this Section 7.2 shall be returned by the Participant to the Corporation and
 reinstated as authorized but unissued Shares, and (iii) the original terms applicable
 to Options which vested pursuant to this Section 7.2 shall be reinstated. In the event of
 a Change of Control, the Board may exercise its discretion to accelerate the vesting of,
 or waive the Performance Criteria or other Vesting Conditions applicable to, outstanding
 Share Units, and the date of the such action shall be the Vesting Date of such Share Units.

(2) If
 the Corporation completes a transaction constituting a Change of Control and within twelve
 (12) months following the Change of Control a Participant who was also an officer or employee
 of, or Consultant to, the Corporation prior to the Change of Control has their Employment
 Agreement or Consulting Agreement terminated, then: (i) all unvested Options granted to such
 Participant shall immediately vest and become exercisable, and remain open for exercise until
 the earlier of (A) their expiry date as set out in the applicable Grant Agreement, and (B)
 the date that is 90 days after such termination or dismissal; and (ii) all unvested Share
 Units shall become vested, and the date of such Participant's Termination Date shall
 be deemed to be the Vesting Date.

(3) For
 greater certainty, Section 7.2(1) and Section 7.2(2) are subject in each case to the terms
 of individual Grant Agreements.

**7.3** **Amendments** 

(1) The
 Board may, subject to obtaining any required consent of any Stock Exchange, at any time amend,
 modify or terminate this Plan without shareholder approval if and when it is advisable in
 the discretion of the Board, provided however, shareholder approval shall be required in
 respect of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any
 amendments to the maximum number of Shares reserved for issuance under the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any
 amendment which reduces the exercise price of an option that is held by an insider of the
 Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any
 amendment extending the term of an Award held by an insider of the Company beyond its original
 expiry date except as otherwise permitted by the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any
 amendment which increases the limit on grants of Awards to insiders of the Company under
 the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the
 inclusion in the Plan of amendment provisions granting additional powers to the Board to
 amend the Plan or Awards granted thereunder without shareholder approval; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) amendments
 required to be approved by shareholders under applicable law (including, without limitation,
 Policies of any Stock Exchange and applicable securities laws).

(2) Where
 shareholder approval is sought for amendments under subsections (b) (c) or (d) above, the
 votes attached to Shares held directly or indirectly by insiders of the Company benefiting
 from the amendment will be excluded.

(3) Other
 than as specified above, the Board may approve all other amendments to the Plan or Awards
 granted under the Plan without shareholder approval. Without limiting the generality of the
 foregoing, the following types of amendments would not require shareholder approval:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) amendments
 of a "housekeeping" or ministerial nature, including any amendment for the purpose
 of curing any ambiguity, error or omission in the Plan or to correct or supplement any provision
 of the Plan that is inconsistent with any other provision of the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) amendments
 necessary to comply with the provisions of applicable law (including, without limitation,
 including, without limitation, Policies of any Stock Exchange and applicable securities laws);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 addition or modification of a cashless exercise feature, payable in securities or cash of
 the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) amendments
 respecting administration of the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any
 amendment to the vesting provisions of the Plan or any Award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any
 amendment to the early termination provisions of the Plan or any Award, whether or not such
 Award is held by an insider of the Company, provided such amendment does not entail an extension
 beyond the original expiry date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) amendments
 necessary to suspend or terminate the Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any
 other amendment, whether fundamental or otherwise, not requiring shareholder approval under
 applicable law (including, without limitation, without limitation, Policies of any Stock
 Exchange and applicable securities laws).

**ARTICLE 8**

**MISCELLANEOUS**

**8.1** **Use of an Administrative Agent** 

The Board may in its sole discretion appoint from time to time one or more entities to act as administrative agent to administer the Awards granted under the Plan and to hold and administer the assets that may be held in respect of Awards granted under the Plan, the whole in accordance with the terms and conditions determined by the Board in its sole discretion. The Corporation and the administrative agent will maintain records showing the number of Awards granted to each Participant under the Plan.

**8.2** **Tax Withholding** 

Notwithstanding any other provision of this Plan, all distributions, delivery of Shares or payments to a Participant (or to the legal representative of the Participant) under this Plan shall be made net of any applicable withholdings, including in respect of applicable withholding taxes required to be withheld at source and other source deductions, as the Corporation determines. If the event giving rise to the withholding obligation involves an issuance or delivery of Shares, then, the withholding may be satisfied in such manner as the Corporation determines, including (a) by the sale of a portion of such Shares by the Corporation, the Corporation's transfer agent and registrar or any trustee appointed by the Corporation pursuant to Section 8.1, on behalf of and as agent for the Participant, as soon as permissible and practicable, with the proceeds of such sale being used to satisfy any withholding and remittance obligations of the Corporation (and any remaining proceeds, following such withholding and remittance, to be paid to the Participant), (b) by requiring the Participant, as a condition of receiving such Shares, to pay to the Corporation or applicable Subsidiary an amount in cash sufficient to satisfy such withholding, or (c) any other mechanism as may be required or determined by the Corporation as appropriate.

**8.3** **Clawback** 

Notwithstanding any other provisions in this Plan, any Award which is subject to recovery under any law, government regulation or stock exchange listing requirement, will be subject to such deductions and clawback as may be required to be made pursuant to such law, government regulation or stock exchange listing requirement (or any policy adopted by the Corporation pursuant to any such law, government regulation or stock exchange listing requirement) or any policy adopted by the Corporation. Without limiting the generality of the foregoing, the Board may provide in any case that outstanding Awards (whether or not vested or exercisable) and the proceeds from the exercise or disposition of Awards or Shares acquired under Awards will be subject to forfeiture and disgorgement to the Corporation, with interest and other related earnings, if the Participant to whom the Award was granted violates (i) a non-competition, non- solicitation, confidentiality or other restrictive covenant by which he or she is bound, or (ii) any policy adopted by the Corporation applicable to the Participant that provides for forfeiture or disgorgement with respect to incentive compensation that includes Awards under the Plan. In addition, the Board may require forfeiture and disgorgement to the Corporation of outstanding Awards and the proceeds from the exercise or disposition of Awards or Shares acquired under Awards, with interest and other related earnings, to the extent required by law or applicable stock exchange listing standards, including any related policy adopted by the Corporation. Each Participant, by accepting or being deemed to have accepted an Award under the Plan, agrees to cooperate fully with the Board, and to cause any and all permitted transferees of the Participant to cooperate fully with the Board, to effectuate any forfeiture or disgorgement required hereunder. Neither the Board nor the Corporation nor any other person, other than the Participant and his or her permitted transferees, if any, will be responsible for any adverse tax or other consequences to a Participant or his or her permitted transferees, if any, that may arise in connection with this Section 8.3.

**8.4** **Securities Law Compliance** 

(1) The
 Plan (including any amendments to it), the terms of the grant of any Award under the Plan,
 the grant of any Award, the exercise of any Option, the delivery of any Shares upon exercise
 of any Option, or the Corporation's election to deliver Shares in settlement of any
 Share Units or DSUs, shall be subject to all applicable federal, provincial, state and foreign
 laws, rules and regulations, the rules and regulations of applicable Stock Exchanges and
 to such approvals by any regulatory or governmental agency as may, as determined by the Corporation,
 be required. The Corporation shall not be obliged by any provision of the Plan or the grant
 of any Award or exercise of any Option hereunder to issue, sell or deliver Shares in violation
 of such laws, rules and regulations or any condition of such approvals.

(2) No
 Awards shall be granted, and no Shares shall be issued, sold or delivered hereunder, where
 such grant, issue, sale or delivery would require registration of the Plan or of the Shares
 under the securities laws of any jurisdiction or the filing of any prospectus for the qualification
 of same thereunder, and any purported grant of any Award or purported issue or sale of Shares
 hereunder in violation of this provision shall be void.

(3) The
 Corporation shall have no obligation to issue any Shares pursuant to this Plan unless upon
 official notice of issuance such Shares shall have been duly listed with a Stock Exchange.
 Shares issued, sold or delivered to Participants under the Plan may be subject to limitations
 on sale or resale under applicable securities laws.

(4) If
 Shares cannot be issued to a Participant upon the exercise of an Option due to legal or regulatory
 restrictions, the obligation of the Corporation to issue such Shares shall terminate and
 any funds paid to the Corporation in connection with the exercise of such Option will be
 returned to the applicable Participant as soon as practicable.

(5) With
 respect to Awards granted in the United States or to U.S. Persons (as defined under Regulation
 S under the U.S. Securities Act) or at such time as the Corporation ceases to be a "foreign
 private issuer" (as defined under the U.S. Securities Act), unless the Shares which
 may be issued upon the exercise or settlement of such Awards are registered under the U.S.
 Securities Act, the Awards granted hereunder and any Shares that may be issuable upon the
 exercise or settlement of such Awards will be considered "restricted securities"
 (as such term is defined in Rule 144(a)(3) under the U.S. Securities Act). Accordingly, any
 such Awards or Shares issued prior to an effective registration statement filed with the
 United States Securities and Exchange Commission (the "**SEC**") may not be
 transferred, sold, assigned, pledged, hypothecated or otherwise disposed by the Participant,
 directly or indirectly, without registration under the U.S. Securities Act and applicable
 state securities laws or unless in compliance with an available exemption therefrom. Certificate(s)
 representing the Awards and any Shares issued upon the exercise of settlement of such Awards
 prior to an effective registration statement filed with the SEC, and all certificate(s) issued
 in exchange therefor or in substitution thereof, will be endorsed with the following or a
 similar legend until such time as it is no longer required under the applicable requirements
 of the U.S. Securities Act:

"THE SECURITIES REPRESENTED HEREBY [for Awards add: AND ANY SECURITIES ISSUABLE UPON EXERCISE HEREOF] HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR UNDER ANY OTHER APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND MAY NOT BE TRANSFERRED, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED EXCEPT (A) PURSUANT TO A REGISTRATION STATEMENT EFFECTIVE UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, OR (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION THEREUNDER. HEDGING TRANSACTIONS INVOLVING SUCH SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE U.S. SECURITIES ACT."

**8.5** **Reorganization of the Corporation** 

The existence of any Awards shall not affect in any way the right or power of the Corporation or its shareholders to make or authorize any adjustment, reclassification, recapitalization, reorganization or other change in the Corporation's capital structure or its business, or any amalgamation, combination, merger or consolidation involving the Corporation or to create or issue any bonds, debentures, shares or other securities of the Corporation or the rights and conditions attaching thereto or to affect the dissolution or legal representative of the Corporation or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar nature or otherwise.

**8.6** **Quotation of Shares** 

So long as the Shares are listed on one or more Stock Exchanges, the Corporation must apply to such Stock Exchange or Stock Exchanges for the listing or quotation, as applicable, of the Shares underlying the Awards granted under the Plan, however, the Corporation cannot guarantee that such Shares will be listed or quoted on any Stock Exchange.

**8.7** **Fractional Shares** 

If, upon the concurrent exercise of one or more Options by a Participant, the aggregate number of Shares that the Participant would otherwise be entitled to receive includes a fractional Share, then the aggregate number of Shares to be issued to the Participant upon such exercise shall be rounded down to the nearest lowest whole number of Shares, and no payment or other adjustment will be made with respect to the fractional interest so disregarded.

**8.8** **Governing Laws** 

The Plan and all matters to which reference is made herein shall be governed by and interpreted in accordance with the laws of the Province of Ontario and the laws of Canada applicable therein.

**8.9** **Severability** 

The invalidity or unenforceability of any provision of the Plan shall not affect the validity or enforceability of any other provision and any invalid or unenforceable provision shall be severed from the Plan.

**ARTICLE 9**

**U.S. TAXPAYERS**

**9.1** **Provisions for U.S. Taxpayers** 

Options granted under this Plan to U.S. Taxpayers may be non-qualified stock options or incentive stock options qualifying under Section 422 of the Code ("ISOs"). Each Option shall be designated in the Option Agreement as either an ISO or a non-qualified stock option. If an Option Agreement fails to designate an Option as either an ISO or non-qualified stock option, the Option will be a non-qualified stock option. Further, to the extent that an Option is designated as an ISO in the applicable Option Agreement but, for any reason, fails to qualify as an ISO under Section 422 of the Code and the Treasury Regulations promulgated thereunder, such Option will be a non-qualified stock option. The Corporation shall not be liable to any Participant or to any other Person if it is determined that an Option intended to be an ISO does not qualify as an ISO. Non-qualified stock options will be granted to a U.S. Taxpayer only if (i) such U.S. Taxpayer performs services for the Corporation or any corporation or other entity in which the Corporation has a direct or indirect controlling interest or otherwise has a significant ownership interest, as determined under Section 409A, such that the Option will constitute an option to acquire "service recipient stock" within the meaning of Section 409A, or (ii) such Option otherwise is exempt from Section 409A.

**9.2** **Certain Defined Terms** 

For the purposes of this Article 9:

(1) "employee"
 means any person who is considered an employee of the Corporation or any parent corporation
 or subsidiary of the Corporation for purposes of Treasury Regulation Section 1.421- 1(h);

(2) "parent
 corporation" has the meaning ascribed thereto in Sections 424(e) of the Code; and

(3) "subsidiary
 corporation" has the meaning ascribed thereto in Sections 424(f) of the Code.

**9.3** **ISOs** 

Subject to any limitations in Section 3.6, the aggregate number of Shares reserved for issuance in respect of granted ISOs shall not exceed 56,000,000, less any Shares underlying securities granted under any other Share Compensation Arrangement of the Corporation, if any, and the terms and conditions of any ISOs granted to a U.S. Taxpayer on the date of grant of the ISO, including the eligible recipients of ISOs, shall be subject to the provisions of Section 422 of the Code, and the terms, conditions, limitations and administrative procedures established by the Board from time to time in accordance with this Plan. ISOs may be granted at the discretion of the Board, provided that ISOs may only be granted to an individual who is an employee of the Corporation or of a parent corporation or subsidiary corporation of the Corporation. No ISO may be granted more than ten years after the earlier of (i) the date on which the Plan is adopted by the Board or (ii) the date on which the Plan is approved by the shareholders. No ISO may have an Option Term that exceeds ten (10) years from the date of grant of the ISO.

**9.4** **ISO Grants to 10% Shareholders** 

Notwithstanding anything to the contrary in this Plan, if an ISO is granted to a person who owns shares representing more than 10% of the voting power of all classes of shares of the Corporation or of a parent corporation or subsidiary corporation on the date of grant of the ISO, the term of the Option shall not exceed five years from the time of grant of such Option and the Option Price shall be at least 110% of the Market Value of a Share subject to the Option.

**9.5** **$100,000 Per Year Limitation for ISOs** 

To the extent the aggregate fair market value as at the date of grant of the ISO of the Shares for which ISOs are exercisable for the first time by any person during any calendar year (under all plans of the Corporation and any parent corporation or subsidiary corporation) exceeds US$100,000, such excess ISOs shall be treated as non-qualified stock options.

**9.6** **Disqualifying Dispositions** 

Each person awarded an ISO under this Plan shall notify the Corporation in writing immediately after the date the person makes a disposition or transfer of any Shares acquired pursuant to the exercise of such ISO if such disposition or transfer is made (a) within two years from the date of grant of the ISO or (b) within one year after the date such person acquired the Shares. Such notice shall specify the date of such disposition or other transfer and the amount realized, in cash, other property, assumption of indebtedness or other consideration, by the person in such disposition or other transfer. The Corporation may, if determined by the Board and in accordance with procedures established by it, retain possession of any Shares acquired pursuant to the exercise of an ISO as agent for the applicable person until the end of the later of the periods described in (a) or (b) above, subject to complying with any instructions from such person as to the sale of such Shares.

**9.7** **Code Section 409A** 

It is intended that any payments under the Plan to U.S. Taxpayers shall be exempt from or comply with Code Section 409A, and all provisions of the Plan shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes and penalties under Code Section 409A. Solely to the extent that Awards of a U.S. Taxpayer are determined to be subject to Code Section 409A, the following will apply with respect to the rights and benefits of U.S. Taxpayers under the Plan:

(1) Except
 as permitted under Code Section 409A, any deferred compensation (within the meaning of Code
 Section 409A) payable to or for the benefit of a U.S. Taxpayer may not be reduced by, or
 offset against, any amount owing by the U.S. Taxpayer to the Corporation or any of its Affiliates.

(2) If
 a U.S. Taxpayer becomes entitled to receive payment in respect of any DSUs, or any Share
 Units that are subject to Code Section 409A, as a result of his or her Separation from Service
 and the U.S. Taxpayer is a "specified employee" (within the meaning of Code Section
 409A) at the time of his or her Separation from Service, and the Board makes a good faith
 determination that (i) all or a portion of the Share Units or DSUs constitute "deferred
 compensation" (within the meaning of Code Section 409A) and (ii) any such deferred
 compensation that would otherwise be payable during the six-month period following such Separation
 from Service is required to be delayed pursuant to the six-month delay rule set forth in
 Code Section 409A in order to avoid taxes or penalties under Code Section 409A, then payment
 of such "deferred compensation" shall not be made to the U.S. Taxpayer before
 the date which is six months after the date of his or her Separation from Service (and shall
 be paid in a single lump sum on the first day of the seventh month following the date of
 such Separation from Service) or, if earlier, the U.S. Taxpayer's date of death.

(3) A
 U.S. Taxpayer's status as a "specified employee" (within the meaning of
 Code Section 409A) shall be determined by the Corporation as required by Code Section 409A
 on a basis consistent with Code Section 409A and such basis for determination will be consistently
 applied to all plans, programs, contracts, agreements, etc. maintained by the Corporation
 that are subject to Code Section 409A.

(4) Although
 the Corporation intends that Share Units will be exempt from Code Section 409A or will comply
 with Code Section 409A, and that DSUs will comply with Code Section 409A, the Corporation
 makes no assurances that the Share Units will be exempt from Code Section 409A or will comply
 with it. Each U.S. Taxpayer, any beneficiary or the U.S. Taxpayer's estate, as the
 case may be, is solely responsible and liable for the satisfaction of all taxes and penalties
 that may be imposed on or for the account of such U.S. Taxpayer in connection with this Plan
 (including any taxes and penalties under Code Section 409A), and neither the Corporation
 nor any Subsidiary shall have any obligation to indemnify or otherwise hold such U.S. Taxpayer
 or beneficiary or the U.S. Taxpayer's estate harmless from any or all of such taxes
 or penalties.

(5) In
 the event that the Board determines that any amounts payable hereunder will be taxable to
 a Participant under Code Section 409A prior to payment to such Participant of such amount,
 the Corporation may (i) adopt such amendments to the Plan and Share Units and appropriate
 policies and procedures, including amendments and policies with retroactive effect, that
 the Board determines necessary or appropriate to preserve the intended tax treatment of the
 benefits provided by the Plan and Share Units hereunder and/or (ii) take such other actions
 as the Board determines necessary or appropriate to avoid or limit the imposition of an additional
 tax under Code Section 409A.

(6) In
 the event the Corporation amends, suspends or terminates the Plan or Share Units as permitted
 under the Plan, such amendment, suspension or termination will be undertaken in a manner
 that does not result in adverse tax consequences under Code Section 409A.

**9.8** **Section 83(b) Election** 

If a Participant makes an election pursuant to Section 83(b) of the Code with respect to an Award of Shares subject to vesting or other forfeiture conditions, the Participant shall be required to promptly file a copy of such election with the Corporation.

**9.9** **Application of Article 9 to U.S. Taxpayers** 

For greater certainty, the provisions of this Article 9 shall only apply to U.S. Taxpayers.

**EXHIBIT "A"**

**TO OMNIBUS EQUITY INCENTIVE PLAN OF ALMONTY INDUSTRIES INC.**

<u>**FORM OF OPTION AGREEMENT**</u>

This Option Agreement is entered into between Almonty Industries Inc. (the "**Corporation**") and the Participant named below, pursuant to the Corporation's Omnibus Equity Incentive Plan (the "**Plan**"), a copy of which is attached hereto, and confirms that on:

1. (the
 "**Grant Date** "),

2. (the
 "**Participant** ")

3. was
 granted _____________ options ()"**Options**") to purchase common shares of
 the Corporation (each, a "**Share** "), in accordance with the terms of the
 Plan, which Options will bear the following terms:

(a) <u>Exercise Price and Expiry</u>. Subject to the vesting conditions specified below, the Options will be exercisable by the Participant at a price of [CAD/USD]$[●] per Share (the "**Option Price**") at any time prior to expiry on [●] (the "**Expiration Date** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Vesting; Time of Exercise</u>. Subject to the terms of the Plan, the Options shall vest and become
 exercisable as follows:

---

| | |
|:---|:---|
| **Number of Options** | **Vested On** |

---

If the aggregate number of Shares vesting in a tranche set forth above includes a fractional Share, aggregate number of Shares will be rounded down to the nearest whole number of Shares. Notwithstanding anything to the contrary herein, the Options shall expire on the Expiration Date set forth above and must be exercised, if at all, on or before the Expiration Date. Options are denominated in [Canadian/United States] dollars ([CAD/USD]$).

4. <u>Type of Option (for U.S. Taxpayers)</u>. The Options are intended to be [Incentive Stock Options/Nonqualified
 Stock Options] for purposes of the Code. If designated as Incentive Stock Options ()"**ISOs** "),
 the Options are intended to qualify as ISOs as defined in Section 422 of the Code. Nevertheless,
 to the extent that it exceeds the $100,000 rule of Code Section 422(d), the Options shall
 be treated as Nonqualified Stock Option ()"**NSOs** "). Further, if for any
 reason the Options (or portion thereof) shall not qualify as ISOs, then, to the extent of
 such non-qualification, such Options (or portion thereof) shall be regarded as NSOs granted
 under the Plan. In no event shall the Board, the Corporation or any parent corporation or
 subsidiary corporation or any of their respective employees or directors have any liability
 to the Participant (or any other person) due to the failure of the Options to qualify for
 any reason as ISOs.The Options shall be exercisable only by delivery to the Corporation of
 a duly completed and executed notice in the form attached to this Option Agreement (the "**Exercise Notice** "), together with (i) payment of the Option Price for each Share covered
 by the Exercise Notice, and (ii) payment of any withholding taxes as required in accordance
 with the terms of the Exercise Notice. Any such payment to the Corporation shall be made
 by certified cheque or wire transfer in readily available funds.

5. Subject
 to the terms of the Plan, the Options specified in an Exercise Notice shall be deemed to
 be exercised upon receipt by the Corporation of such written Exercise Notice, together with
 the payment of all amounts required to be paid by the Participant to the Corporation pursuant
 to paragraph 4 of this Option Agreement.

6. To
 the extent the Participant is entitled to a Cashless Exercise Right in respect of all or
 any portion of the Options granted pursuant to this Option Agreement, such Cashless Exercise
 Right shall be exercisable only by delivery to the Corporation of a duly completed and executed
 Exercise Notice specifying the Participant's intention to surrender such Options to
 the Corporation pursuant to such Cashless Exercise Right, together with payment of any withholding
 taxes as required by the Corporation. Any such payment to the Corporation shall be made by
 certified cheque or wire transfer in readily available funds.

7. The
 Participant hereby represents and warrants (on the date of this Option Agreement and upon
 each exercise or surrender of Options) that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Participant has not received any offering memorandum, or any other documents (other than
 annual financial statements, interim financial statements or any other document the content
 of which is prescribed by statute or regulation, other than an offering memorandum) describing
 the business and affairs of the Corporation that has been prepared for delivery to, and review
 by, a prospective purchaser in order to assist it in making an investment decision in respect
 of the Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Participant is acquiring the Shares without the requirement for the delivery of a prospectus
 or offering memorandum, pursuant to an exemption under applicable securities legislation
 and, as a consequence, is restricted from relying upon the civil remedies otherwise available
 under applicable securities legislation and may not receive information that would otherwise
 be required to be provided to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 Participant has such knowledge and experience in financial and business matters that it is
 capable of evaluating the merits and risks of an investment in the Corporation and does not
 desire to utilize a registrant in connection with evaluating such merits and risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 Participant acknowledges that an investment in the Shares involves a high degree of risk,
 and represents that it understands the economic risks of such investment and is able to bear
 the economic risks of this investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the
 Participant acknowledges that he or she is responsible for paying any applicable taxes and
 withholding taxes arising from the exercise (or termination upon exercise of the Cashless
 Exercise Right) of any Options, as provided in Section 8.2 of the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) this
 Option Agreement constitutes a legal, valid and binding obligation of the Participant, enforceable
 against him in accordance with its terms; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the
 execution and delivery of this Option Agreement and the performance of the obligations of
 the Participant hereunder will not result in the creation or imposition of any lien, charge
 or encumbrance upon the Shares.

The Participant acknowledges that the Corporation is relying upon such representations and warranties in granting the Options and issuing any Shares upon exercise thereof.

8. The
 Participant acknowledges and represents that: (a) the Participant fully understands and agrees
 to be bound by the terms and provisions of this Option Agreement and the Plan; (b) agrees
 and acknowledges that the Participant has received a copy of the Plan and that the terms
 of the Plan form part of this Option Agreement, and (c) hereby accepts these Options subject
 to all of the terms and provisions hereof and of the Plan. To the extent of any inconsistency
 between the terms of this Option Agreement and those of the Plan, the terms of the Plan shall
 govern. The Participant has reviewed this Option Agreement and the Plan, and has had an opportunity
 to obtain the advice of counsel prior to executing this Option Agreement.

9. This
 Option Agreement and the terms of the Plan incorporated herein (with the Exercise Notice,
 if the Option is exercised or surrendered to the Corporation pursuant to a Cashless Exercise
 Right) constitutes the entire agreement of the Corporation and the Participant (collectively
 the "**Parties**") with respect to the Options and supersedes in its entirety
 all prior undertakings and agreements of the Parties with respect to the subject matter hereof,
 and may not be modified adversely to the Participant's interest except by means of
 a writing signed by the Parties. This Option Agreement and the terms of the Plan incorporated
 herein are to be construed in accordance with and governed by the laws of the Province of
 Ontario. Should any provision of this Option Agreement or the Plan be determined by a court
 of law to be illegal or unenforceable, such provision shall be enforced to the fullest extent
 allowed by law and the other provisions shall nevertheless remain effective and shall remain
 enforceable.

10. In
 accordance with Section 8.4(5) of the Plan, if the Options and the underlying Shares are
 not registered under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act** "), or any state securities laws, the Options may not be exercised
 in the "United States" or by "U.S. Persons" (each as defined in Rule
 902 of Regulation S under the U.S. Securities Act) unless an exemption from the registration
 requirements of the U.S. Securities Act is available. Any Shares issued to Option holders
 in the United States that have not been registered under the U.S. Securities Act will be
 deemed "restricted securities" (as defined in Rule 144(a)(3) of the U.S. Securities
 Act) and bear a restrictive legend to such effect.

All capitalized terms used but not otherwise defined herein shall have the meaning ascribed to them in the Plan.

**[Remainder of page left intentionally blank]**

**IN WITNESS WHEREOF** the Corporation and the Participant have executed this Option Agreement as of ____________________, 20__.

 **ALMONTY INDUSTRIES INC.**

**Note to Plan Participants**

This Agreement must be signed where indicated and returned to the Corporation within 30 days of receipt. Failure to acknowledge acceptance of this grant will result in the cancellation of your Options.

**EXHIBIT "B"**

**TO OMNIBUS EQUITY INCENTIVE PLAN OF ALMONTY INDUSTRIES INC.**

<u>**FORM OF OPTION EXERCISE NOTICE**</u>

**TO: ALMONTY INDUSTRIES INC.**

This Exercise Notice is made in reference to stock options ("**Options**") granted under the Omnibus Equity Incentive Plan (the "**Plan**") of Almonty Industries Inc. (the "**Corporation**").

The undersigned (the "**Participant**") holds options ("**Options**") under the Plan to purchase **[●]** common shares of the Corporation (each, a "**Share**") at a price per Share of CAD$**[●]** (the "**Option Price**") pursuant to the terms and conditions set out in that certain option agreement between the Participant and the Corporation dated **[●]** (the "**Option Agreement**"). The Participant confirms the representations and warranties contained in the Option Agreement.

The Participant hereby:

---

| | |
|:---|:---|
|  | irrevocably gives notice of the exercise of __ Options held by the Participant pursuant to the Option Agreement at the Option Price, for an aggregate exercise price of CAD$<u>_________</u> (the "**Aggregate Option Price**"), on the terms specified in the Option Agreement and encloses herewith a certified cheque payable to the Corporation or evidence of wire transfer to the Corporation in full satisfaction of the Aggregate Option Price. |
| ☐ | The Participant acknowledges and agrees that: (i) in addition to the Aggregate Option Price, the Corporation may require the Participant to also provide the Corporation with a certified cheque or evidence of wire transfer equal to the amount of any applicable withholding taxes associated with the exercise of such Options, before the Corporation will issue any Shares to the Participant in settlement of the Options; and (ii) the Corporation shall have the sole discretion to determine the amount of any applicable withholding taxes associated with the exercise of such Options, and shall inform the Participant of such amount as soon as reasonably practicable upon receipt of this completed Exercise Notice. |

---

- or –

---

| | |
|:---|:---|
|  | irrevocably gives notice of the Participant's intention to surrender to the Corporation Options held by the Participant pursuant to the Option Agreement in accordance with the Cashless Exercise Right (as defined in the Plan) granted in respect of such Options, and agrees to receive, in consideration for the surrender of such Options to the Corporation, that number of Shares equal to the following: |
|  | <u>((A – B) x C) - D</u><br> A |
| ☐ | where: A is the Market Value (as defined in the Plan) of a Share on determined as of the date this Exercise Notice is received by the Corporation; B is the Option Price; C is the number of Options in respect of which such Cashless Exercise Right is being exercised; and D is the amount of any applicable withholding taxes associated with the exercise of such Options, as determined by the Corporation in its sole discretion. |
|  | For greater certainty, where a Participant elects to surrender Options to the Corporation pursuant to his/her Cashless Exercise Right, the amount of any applicable withholding taxes determined pursuant to the above formula will be deemed to have been paid in cash by the Corporation to the Participant as partial consideration for the surrender and termination of the Options, which cash will be withheld by the Corporation and remitted to the applicable taxation authorities as may be required. |

---

**Registration:**

The Shares issued pursuant to this Exercise Notice are to be registered in the name of the undersigned and are to be delivered, as directed below:

Name:   <br>Address:  

---

| | |
|:---|:---|
| Date | Name of Participant |
| Date | |
|  | Signature of Participant |

---

**EXHIBIT "C"**

**TO OMNIBUS EQUITY INCENTIVE PLAN OF ALMONTY INDUSTRIES INC.**

<u>**FORM OF SHARE UNIT AGREEMENT**</u>

This Share Unit Agreement is entered into between Almonty Industries Inc. (the "**Corporation**") and the Participant named below, pursuant to the Corporation's Omnibus Equity Incentive Plan (the "**Plan**"), a copy of which is attached hereto, and confirms that on:

1. (the
 "**Grant Date** "),

2. (the
 "**Participant** ")

3. was
 granted ______________ Share Units ()"**Share Units** "), in accordance with
 the terms of the Plan, which Share Units will vest as follows:

---

| | | |
|:---|:---|:---|
| **Number of Share Units** | **Time Vesting Conditions** | **Performance Vesting Conditions** |

---

all on the terms and subject to the conditions set out in the Plan.

4. Subject
 to the terms and conditions of the Plan, including provisions governing the vesting of Awards
 while the Corporation is in a Blackout Period, the performance period for any performance-
 based Share Units granted hereunder commences on the Grant Date and ends at the close of
 business on [●] (the "**Performance Period** "), while the restriction
 period for any time-based Share Units granted hereunder commences on the Grant Date and ends
 at the close of business on **[●]** (the "**Restriction Period** ").
 Subject to the terms and conditions of the Plan, Share Units will be redeemed and settled
 fifteen days after the applicable Vesting Date, all in accordance with the terms of the Plan.

5. By
 signing this Share Unit Agreement, the Participant:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) acknowledges
 that he or she has read and understands the Plan and agrees with the terms and conditions
 thereof, which terms and conditions shall be deemed to be incorporated into and form part
 of this Share Unit Agreement (subject to any specific variations contained in this Share
 Unit Agreement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) acknowledges
 that, subject to the vesting and other conditions and provisions in this Share Unit Agreement,
 each Share Unit awarded to the Participant shall entitle the Participant to receive on settlement
 an aggregate cash payment equal to Market Value of a Share or, at the election of the Corporation
 and in its sole discretion, one Share of the Corporation. For greater certainty, no Participant
 shall have any right to demand to be paid in, or receive, Shares in respect of any Share
 Unit, and, notwithstanding any discretion exercised by the Corporation to settle any Share
 Unit, or portion thereof, in the form of Shares, the Corporation reserves the right to change
 such form of payment at any time until payment is actually made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) acknowledges
 that he or she is responsible for paying any applicable taxes and withholding taxes arising
 from the vesting and redemption of any Share Unit, as determined by the Corporation in its
 sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) agrees
 that a Share Unit does not carry any voting rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) acknowledges
 that the value of the Share Units granted herein is denominated in Canadian dollars (CAD$),
 and such value is not guaranteed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) recognizes
 that, at the sole discretion of the Corporation, the Plan can be administered by a designee
 of the Corporation by virtue of Section 2.2 of the Plan and any communication from or to
 the designee shall be deemed to be from or to the Corporation.

6. The
 Participant acknowledges and represents that: (a) the Participant fully understands and agrees
 to be bound by the terms and provisions of this Share Unit Agreement and the Plan; (b) agrees
 and acknowledges that the Participant has received a copy of the Plan and that the terms
 of the Plan form part of this Share Unit Agreement, and (c) hereby accepts these Share Units
 subject to all of the terms and provisions hereof and of the Plan. To the extent of any inconsistency
 between the terms of this Share Unit Agreement and those of the Plan, the terms of the Plan
 shall govern. The Participant has reviewed this Share Unit Agreement and the Plan, and has
 had an opportunity to obtain the advice of counsel prior to executing this Share Unit Agreement.

7. This
 Share Unit Agreement and the terms of the Plan incorporated herein constitutes the entire
 agreement of the Corporation and the Participant (collectively the "**Parties** ")
 with respect to the Share Units and supersedes in its entirety all prior undertakings and
 agreements of the Parties with respect to the subject matter hereof, and may not be modified
 adversely to the Participant's interest except by means of a writing signed by the
 Parties. This Share Unit Agreement and the terms of the Plan incorporated herein are to be
 construed in accordance with and governed by the laws of the Province of Ontario. Should
 any provision of this Share Unit Agreement or the Plan be determined by a court of law to
 be illegal or unenforceable, such provision shall be enforced to the fullest extent allowed
 by law and the other provisions shall nevertheless remain effective and shall remain enforceable.

8. In
 accordance with Section 8.4(5) of the Plan, unless the Shares that may be issued upon the
 settlement of vested Share Units granted pursuant to this Share Unit Agreement are registered
 under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act** "), and any applicable state securities laws, such Shares may not be issued
 in the "United States" or to "U.S. Persons" (each as defined in Rule
 902 of Regulation S under the U.S. Securities Act) unless an exemption from the registration
 requirements of the U.S. Securities Act is available. Any Shares issued to a Participant
 in the United States that have not been registered under the U.S. Securities Act will be
 deemed "restricted securities" (as defined in Rule 144(a)(3) of the U.S. Securities
 Act) and bear a restrictive legend to such effect.

All capitalized terms used but not otherwise defined herein shall have the meaning ascribed to them in the Plan.

**[Remainder of page left intentionally blank]**

**IN WITNESS WHEREOF** the Corporation and the Participant have executed this Share Unit Agreement as of __________________, 20__.

 **ALMONTY INDUSTRIES INC.**

**Note to Plan Participants**

This Agreement must be signed where indicated and returned to the Corporation within 30 days of receipt. Failure to acknowledge acceptance of this grant will result in the cancellation of your Share Units.

**EXHIBIT "D"**

**TO OMNIBUS EQUITY INCENTIVE PLAN OF ALMONTY INDUSTRIES INC.**

<u>**FORM OF DSU AGREEMENT**</u>

This DSU Agreement is entered into between Almonty Industries Inc. (the "**Corporation**") and the Participant named below, pursuant to the Corporation's Omnibus Equity Incentive Plan (the "**Plan**"), a copy of which is attached hereto, and confirms that on:

1. ____________
 (the "**Grant Date** "),

2. ____________
 (the "**Participant** ")

3. was
 granted _________ deferred share units ()"**DSUs** "), in accordance with the
 terms of the Plan.

4. The
 DSUs subject to this DSU Agreement [are fully vested] [will become vested as follows:

________________].

5. Subject
 to the terms of the Plan, the settlement of the DSUs, in cash (or, at the election of the
 Corporation, in Shares or a combination of cash and Shares), shall be payable to you, net
 of any applicable withholding taxes in accordance with the Plan, not later than December
 15 of the first (1st) calendar year commencing immediately after the Termination Date, provided
 that if you are a U.S. Taxpayer, the settlement will be as soon as administratively feasible
 following your Separation from Service. If the Participant is both a U.S. Taxpayer and a
 Canadian Participant, the settlement of the DSUs will be subject to the provisions of Section
 5.5(1) of the Plan.

6. By
 signing this agreement, the Participant:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) acknowledges
 that he or she has read and understands the Plan and agrees with the terms and conditions
 thereof, which terms and conditions shall be deemed to be incorporated into and form part
 of this DSU Agreement (subject to any specific variations contained in this DSU Agreement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) acknowledges
 that he or she is responsible for paying any applicable taxes and withholding taxes arising
 from the vesting and redemption of any DSU, as determined by the Corporation in its sole
 discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) agrees
 that a DSU does not carry any voting rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) acknowledges
 that the value of the DSUs granted herein is denominated in Canadian dollars (CAD$), and
 such value is not guaranteed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) recognizes
 that, at the sole discretion of the Corporation, the Plan can be administered by a designee
 of the Corporation by virtue of Section 2.2 of the Plan and any communication from or to
 the designee shall be deemed to be from or to the Corporation.

7. The
 Participant acknowledges and represents that: (a) the Participant fully understands and agrees
 to be bound by the terms and provisions of this DSU Agreement and the Plan; (b) agrees and
 acknowledges that the Participant has received a copy of the Plan and that the terms of the
 Plan form part of this DSU Agreement, and (c) hereby accepts these DSUs subject to all of
 the terms and provisions hereof and of the Plan. To the extent of any inconsistency between
 the terms of this DSU Agreement and those of the Plan, the terms of the Plan shall govern.
 The Participant has reviewed this DSU Agreement and the Plan, and has had an opportunity
 to obtain the advice of counsel prior to executing this DSU Agreement.

8. This
 DSU Agreement and the terms of the Plan incorporated herein constitutes the entire agreement
 of the Corporation and the Participant (collectively the "**Parties**") with
 respect to the DSUs and supersedes in its entirety all prior undertakings and agreements
 of the Parties with respect to the subject matter hereof, and may not be modified adversely
 to the Participant's interest except by means of a writing signed by the Parties. This
 DSU Agreement and the terms of the Plan incorporated herein are to be construed in accordance
 with and governed by the laws of the Province of Ontario. Should any provision of this DSU
 Agreement or the Plan be determined by a court of law to be illegal or unenforceable, such
 provision shall be enforced to the fullest extent allowed by law and the other provisions
 shall nevertheless remain effective and shall remain enforceable.

9. In
 accordance with Section 8.4(5) of the Plan, unless the Shares that may be issued upon the
 settlement of the DSU are registered under the United States Securities Act of 1933, as amended
 (the "**U.S. Securities Act** "), and any applicable state securities laws,
 such Shares may not be issued in the "United States" or to "U.S. Persons"
 (each as defined in Rule 902 of Regulation S under the U.S. Securities Act) unless an exemption
 from the registration requirements of the U.S. Securities Act is available. Any Shares issued
 to a Participant in the United States that have not been registered under the U.S. Securities
 Act will be deemed "restricted securities" (as defined in Rule 144(a)(3) of the
 U.S. Securities Act) and bear a restrictive legend to such effect.

All capitalized terms used but not otherwise defined herein shall have the meaning ascribed to them in the Plan.

**[Remainder of page left intentionally blank]**

**IN WITNESS WHEREOF** the Corporation and the Participant have executed this DSU Agreement as of ___________________, 20__.

 **ALMONTY INDUSTRIES INC.**

**Note to Plan Participants**

This Agreement must be signed where indicated and returned to the Corporation within 30 days of receipt. Failure to acknowledge acceptance of this grant will result in the cancellation of your DSUs.

**EXHIBIT "E"**

**TO OMNIBUS EQUITY INCENTIVE PLAN OF ALMONTY INDUSTRIES INC.**

 ****

<u>**ELECTION NOTICE**</u>

All capitalized terms used herein but not otherwise defined shall have the meanings ascribed to them in the Plan.

Pursuant to the Plan, I hereby elect to participate in the grant of DSUs pursuant to Article 5 of the Plan and to receive ________% of my Cash Fees in the form of DSUs in lieu of cash.

I confirm that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) I
 have received and reviewed a copy of the terms of the Plan and agreed to be bound by them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) I
 recognize that when DSUs credited pursuant to this election are redeemed in accordance with
 the terms of the Plan, income tax and other withholdings as required will arise at that time.
 Upon redemption of the DSUs, the Corporation will make all appropriate withholdings as required
 by law at that time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 value of DSUs is based on the value of the Shares of the Corporation and therefore is not
 guaranteed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To
 the extent I am a U.S. taxpayer, I understand that this election is irrevocable for the calendar
 year to which it applies and that any revocation or termination of this election after the
 expiration of the election period will not take effect until the first day of the calendar
 year following the year in which I file the revocation or termination notice with the Corporation.

The foregoing is only a brief outline of certain key provisions of the Plan. For more complete information, reference should be made to the Plan's text.

---

| | |
|:---|:---|
| Date: __________________ | |
|  | (Name of Participant) |
|  | (Signature of Participant) |

---

**EXHIBIT "F"**

**TO OMNIBUS EQUITY INCENTIVE PLAN OF ALMONTY INDUSTRIES INC.**

 ****

<u>**ELECTION TO TERMINATE RECEIPT OF ADDITIONAL DSUs**</u>

All capitalized terms used herein but not otherwise defined shall have the meanings ascribed to them in the Plan.

Notwithstanding my previous election in the form of Exhibit "E" to the Plan, I hereby elect that no portion of the Cash Fees accrued after the effective date of this termination notice shall be paid in DSUs in accordance with Article 5 of the Plan.

I understand that this election to terminate receipt of additional DSUs will not take effect until the first day of the calendar year following the year in which I file this termination notice with the Corporation.

I understand that the DSUs already granted under the Plan cannot be redeemed except in accordance with the Plan.

I confirm that I have received and reviewed a copy of the terms of the Plan and agree to be bound by them.

---

| | |
|:---|:---|
| Date: __________________ | |
|  | (Name of Participant) |
|  | (Signature of Participant) |

---

---

| | |
|:---|:---|
| **Note**: | An election to terminate receipt of additional DSUs can only be made by a Participant once in a calendar year. |

---

**SCHEDULE "C" - THIRD AMENDED AND RESTATED INCENTIVE STOCK OPTION PLAN**

**ALMONTY INDUSTRIES INC.**

**THIRD AMENDED AND RESTATED INCENTIVE STOCK OPTION PLAN**

**PART 1**

**INTERPRETATION**

1.1 **Definitions**. In this Plan the following words and phrases shall have the following meanings, namely:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Board** "
 means the board of directors of the Company and includes any committee of directors appointed
 by the directors as contemplated by Section 3.1 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Black-Out Option Expiry Date**" has the meaning ascribed thereto in Section 5.2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Cashless Exercise Right**" has the meaning ascribed thereto in Section 5.11;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Change of Control**" means the acquisition by any person or by any person and a Joint Actor,
 whether directly or indirectly, of voting securities of the Company, which, when added to
 all other voting securities of the Company at the time held by such person or by such person
 and a Joint Actor, totals for the first time not less than fifty percent (50%) of the outstanding
 voting securities of the Company or the votes attached to those securities are sufficient,
 if exercised, to elect a majority of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Company** "
 means Almonty Industries Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Consultant** "
 means an individual, other than an Employee or Director of the Company, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is
 engaged to provide on an ongoing bona fide basis, consulting, technical, management or other
 services to the Company or to an affiliate of the Company, other than services provided in
 relation to a distribution of securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) will
 provide services to the Company or an affiliate for a period of at least twelve (12) months,
 on a continuous basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) provides
 the services under a written contract between the Company or the affiliate, and the individual;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in
 the reasonable opinion of the Company, spends or will spend a significant amount of time
 and attention on the affairs and business of the Company or an affiliate of the Company;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) has
 a relationship with the Company or an affiliate of the Company that enables the individual
 to be knowledgeable about the business and affairs of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Director** "
 means any director of the Company or of any of its subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Eligible Person**" means bona fide Employees, Consultants, Officers or Directors, or corporations
 employing or wholly owned by such Employees, Consultants, Officers or Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Employee** "
 means any individual in the employment of the Company or any of its subsidiaries or of a
 company providing management or administrative services to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Exchange** "
 means the Toronto Stock Exchange and any other stock exchange on which the Shares are listed
 for trading;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Exchange Policies**" means, collectively, the policies, bylaws, rules and regulations of the
 Exchange governing the granting of options by the Company, as amended from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Expiry Date**" means not later than ten years from the date of grant of the option;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**Insider** "
 has the meaning ascribed thereto in Exchange Policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Issuer Bid**" has the meaning ascribed thereto in the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Joint Actor**" means a person acting "jointly or in concert with" another person
 as that phrase is interpreted in accordance with Securities Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Market Price**" shall mean (i) the volume weighted average price at which the Shares have
 traded on the Exchange for the five trading days immediately preceding the date on which
 the Option is approved by the Board for the purposes of Section 5.1, and (ii) the closing
 price of the Shares on the TSX on the date a notice of exercise is received by the Corporation,
 including in respect of which the Optionee has elected to use the Cashless Exercise Right
 for the purposes of Section 5.11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**Offer** "
 has the meaning ascribed thereto in Section 6.3;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "**Officer** "
 means any senior officer of the Company or of any of its subsidiaries as defined in the Securities
 Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "**Optionee** "
 or "**Optionees**" means the recipient of an incentive stock option under
 this Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "**Option Share**" has the meaning ascribed thereto in Section 6.3;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "**Plan** "
 means this third amended and restated incentive stock option plan as from time to time further
 amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "**Securities Act**" means the *Securities Act* (Ontario), as amended, from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "**Securities Laws**" means the act, policies, bylaws, rules and regulations of the securities
 commissions governing the granting of options by the Company, as amended from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "**Shares** "
 means the common shares of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "**Take-over Bid**" has the meaning ascribed thereto in the Securities Act.

1.2 **Governing Law.** The validity and construction of the Plan shall be governed by and construed in accordance with the laws of the Province of Ontario, and the federal laws of Canada applicable therein.

1.3 **Gender.** Throughout this Plan, words importing the masculine gender shall be interpreted as including all genders.

**PART 2**

**PURPOSE OF PLAN**

2.1 **Purpose**. The purpose of this Plan is to attract and retain Employees, Consultants, Officers or Directors to the Company and to motivate them to advance the interests of the Company by affording them with the opportunity to acquire an equity interest in the Company through options granted under this Plan to purchase Shares.

**PART 3**

**GRANTING OF OPTIONS**

3.1 **Administration**. This Plan shall be administered by the Board or, if the Board so elects, by a committee (which may consist of only one person) appointed by the Board from its members.

3.2 **Committee's Recommendations**. The Board may accept all or any part of recommendations of the committee or may refer all or any part thereof back to the committee for further consideration and recommendation.

3.3 **Board Authority**. Subject to the limitations of the Plan, the Board shall have the authority to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) grant
 options to purchase Shares to Eligible Persons;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) determine
 the terms, limitations, restrictions and conditions respecting such grants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) interpret
 the Plan and adopt, amend and rescind such administrative guidelines and other rules and
 regulations relating to the Plan as it shall from time to time deem advisable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) make
 all other determinations and take all other actions in connection with the implementation
 and administration of the Plan including without limitation for the purpose of ensuring compliance
 with Section 7.1 hereof as it may deem necessary or advisable.

3.4 **Grant of Option**. A resolution of the Board shall specify the number of Shares that should be placed under option to each Eligible Person; the exercise price to be paid for such Shares upon the exercise of each such option; any applicable hold period; and the period, including any applicable vesting periods required by Exchange Policies or by the Board, during which such option may be exercised.

3.5 **Written Agreement**. Every option granted under this Plan shall be evidenced by a written agreement substantially in the form attached hereto as Schedule "A", containing such terms and conditions as are required by Exchange Policies and Securities Laws, between the Company and the Optionee and, where not expressly set out in the agreement, the provisions of such agreement shall conform to and be governed by this Plan. In the event of any inconsistency between the terms of the agreement and the Plan, the terms of the Plan shall govern.

3.6 **Tax and Other Statutory Obligations**. To the extent the exercise of an option hereunder gives rise to any tax or other statutory withholding obligation (including, without limitation, income and payroll withholding taxes imposed by any jurisdiction), the Board may implement appropriate procedures to ensure that the tax withholding obligations are met. These procedures may include, without limitation, increased withholding from an Optionee's regular compensation, cash payments by an Optionee, or the sale of a portion of the Shares acquired pursuant to the exercise of an option, which sale may be required and initiated by the Board. Unless otherwise determined by the Board, any such procedure, including offering choices among procedures, will be applied consistently with respect to all similarly situated Optionees, except to the extent any procedure may not be permitted under the laws of the applicable jurisdiction.

**PART 4**

**RESERVE OF SHARES FOR OPTIONS**

4.1 **Sufficient Authorized Shares to be Reserved**. Whenever the Articles of the Company limit the number of authorized Shares, a sufficient number of Shares shall be reserved by the Board to satisfy the exercise of options granted under this Plan. Shares that were the subject of options that have lapsed or terminated shall thereupon no longer be in reserve and may once again be subject to an option granted under this Plan.

4.2 **Maximum Number of Shares Reserved**. Unless authorized by shareholders of the Company, this Plan, together with all of the Company's other previously established or proposed stock options, stock option plans, employee stock purchase plans or any other compensation or incentive mechanisms involving the issuance or potential issuance of Shares, shall not result, at any time, in the number of Shares reserved for issuance pursuant to stock options exceeding 10% of the issued and outstanding Shares of the Company (on a non-diluted basis) as at the date of grant of any stock option under the Plan.

4.3 **Limits with Respect to Insiders.** Unless authorized by the disinterested shareholders of the Company, the number of Shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) issued
 to insiders of the Company within any one-year period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) issuable
 to insiders of the Company, at any time,

under the Plan, or when combined with all of the Company's other security based compensation arrangements, cannot exceed 10% of the total issued and outstanding Shares, respectively.

**PART 5**

**CONDITIONS GOVERNING THE GRANTING AND EXERCISING OF OPTIONS**

5.1 **Exercise Price.** The purchase price for Shares under each option shall not be less than the Market Price at the time of grant.

5.2 **Expiry Date**. Each option shall, unless sooner terminated, expire on a date to be determined by the Board which will not be later than the Expiry Date. Notwithstanding anything to the contrary herein, if the date on which an option expires occurs during or within nine business days after the last day of a trading black-out period imposed pursuant to the Company's insider trading policy (as may be amended from time to time), then the expiry date of such option shall be the date (a "**Black-Out Option Expiry Date**") that is 10 business days following the date of expiry of the trading black-out period. If a new trading black-out is imposed prior to the Black-Out Option Expiry Date, the Black-Out Option Expiry Date shall be the date that is 10 business days following the expiry of the new trading black-out period.

5.3 **Different Exercise Periods, Prices and Number**. The Board may, in its absolute discretion, upon granting an option under this Plan and subject to the provisions of Sections 5.1 and 6.3 hereof, specify a particular time period or periods following the date of granting the option during which the Optionee may exercise his option to purchase Shares and may designate the exercise price and the number of Shares in respect of which such Optionee may exercise his option during each such time period.

5.4 **Termination of Employment/Director**. If a Director, Officer, Consultant or Employee ceases to be so engaged by the Company for just cause (as determined by the Board, in its sole discretion) before the expiry date of such Optionee's option, the option granted to such Optionee shall thereupon cease and terminate and be of no further force or effect whatsoever. If a Director, Officer, Consultant or Employee ceases to be so engaged by the Company for any reason, other than just cause or death, before the expiry date of such Optionee's option, such Director, Officer, Consultant or Employee shall have the right to exercise any vested option not exercised prior to such termination within a period of seven days after the date of termination, or such shorter period as may be set out in the Optionee's Option Agreement. For greater certainty, any option not vested at the date of such termination shall be immediately cancelled. For greater certainty, all options to purchase Shares granted prior to March 26, 2013 shall be deemed to have been amended so as to be subject to this Section 5.4 upon a Director, Officer, Consultant or Employee ceasing to be so engaged by the Company for any reason other than death.

5.5 **Death of Optionee**. If an Optionee dies prior to the expiry of his option, his heirs or administrators may within one year from the date of the Optionee's death exercise any vested option not exercised prior to the date of the Optionee's death. For greater certainty, any option not vested at the date of the Optionee's death shall be immediately cancelled.

5.6 **Assignment**. No option granted under the Plan or any right thereunder or in respect thereof shall be transferable or assignable otherwise than by provided for in Section 5.5.

5.7 **Notice**. Options shall be exercised only in accordance with the terms and conditions of the agreements under which they are respectively granted and shall be exercisable only by notice in writing to the Company substantially in the form set out in Schedule "B" hereto.

5.8 **Payment**. Once vested, options may be exercised in whole or in part at any time prior to their lapse or termination. Shares purchased by an Optionee on exercise of an option shall be paid for in full in cash at the time of their purchase.

5.9 **Conditions Precedent**. The Company's obligation to issue and deliver Shares under any option is subject to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) completion
 of such registration or other qualification of such shares or obtaining approval of such
 government authority as the Company shall determine to be necessary or advisable in connection
 with the authorization, issuance or sale thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 admission of such shares to listing on any stock exchange on which the Company's shares
 may then be listed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 receipt from the Optionee of such representations, agreements and undertakings as to future
 dealings in such Shares as the Company determines to be necessary or advisable in order to
 safeguard against the violation of the securities laws of any jurisdiction.

5.10 **Options to Employees or Consultants**. In the case of options granted to Employees or Consultants, the Optionee must be a bona-fide Employee or Consultant, as the case may be, of the Company or its subsidiary.

5.11 **Cashless Exercise Right**. The Board may, at any time (including at the time of receipt by the Corporation of a notice to exercise Options from a Optionee) and on such terms as it may in its discretion determine, grant to an Optionee who is entitled to exercise an Option the alternative right (the "**Cashless Exercise Right**") to deal with such Option on a "cashless exercise" basis. Without limitation, the Board may determine in its discretion that such Cashless Exercise Right, if any, granted to an Optionee in respect of any Options, entitles the Optionee the right to surrender such Options, in whole or in part, to the Corporation upon giving notice in writing to the Corporation of the Optionee's intention to exercise such Cashless Exercise Right and the number of Options in respect of which such Cashless Exercise Right is being exercised, and, upon such surrender, to receive, as consideration for the surrender of such Options as are specified in the notice, that number of Shares, disregarding fractions, equal to the quotient obtained by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) subtracting
 the applicable exercise price of the Options from the Market Price, and multiplying the remainder
 by the number of Options specified in such notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) subtracting
 from the amount obtained under Section 5.11(a) the amount of any applicable withholding taxes
 and other source deductions as determined by the Corporation in its sole discretion (unless
 such amounts are paid in cash by the Optionee at the time of exercise); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) dividing
 the net amount obtained under subsection 5.11(b) by the Market Price.

**PART 6**

**CHANGES IN OPTIONS**

6.1 **Adjustment in Shares and Exercise Price**. In the event that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) there
 is any change in the Shares through subdivisions or consolidations of the share capital of
 the Company, or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Company declares a dividend out of the ordinary course on the Shares payable in Shares or
 securities convertible into or exchangeable for Shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 Company issues Shares, or securities convertible into or exchangeable for Shares, in respect
 of, in lieu of, or in exchange for, existing Shares,

the number of Shares available for option, the Shares subject to any option, and the option exercise price thereof, shall be adjusted appropriately by the Board and such adjustment shall be effective and binding for all purposes of this Plan, subject to the prior consent of the Exchange (if such consent is required under the Exchange Policies).

6.2 **Merger, Amalgamation, Etc**. If there is a merger, statutory amalgamation or arrangement of the Company with or into another corporation, a separation of the business of the Company into two or more entities or a transfer of all substantially all of the assets of the Company to another entity, upon the exercise of an option under this Plan, the holder thereof shall be entitled to receive the securities, property or cash which the holder would have received upon such merger, amalgamation, arrangement, separation or transfer if the holder had exercised the option immediately prior to such event, unless the directors of the Company otherwise determine the basis upon which such option shall be exercisable.

6.3 **Effect of a Take-Over Bid**. If there is a Take-over Bid or Issuer Bid (other than a "normal course" Issuer Bid) made for all or any of the issued and outstanding Shares (an "**Offer**"), then the Board may, by resolution, permit all options outstanding, vested and unvested, under the Plan to become immediately exercisable (subject to any limitations the Board may impose) in order to permit Shares issuable under such options to be tendered to such bid (such Shares, the "**Option Shares**").

6.4 **Acceleration of Expiry Date**. If an Offer is made, the Board may, upon notifying the Optionees of full particulars of the Offer, declare that the expiry date for the exercise of all unexercised options granted under the Plan is accelerated so that all options will either be exercised or will expire prior to the date upon which Shares must be tendered pursuant to the Offer.

6.5 **Effect of a Change of Control**. If a Change of Control occurs, the Board may, by resolution, permit all Option Shares subject to each outstanding option to become vested, whereupon such option may be exercised in whole or in part by the Optionee.

**PART 7**

**SECURITIES LAWS AND EXCHANGE POLICIES**

7.1 **Securities Laws and Exchange Policies Apply**. This Plan and the granting and exercise of any options hereunder are also subject to such other terms and conditions as are set out from time to time in the Securities Laws and Exchange Policies and such rules and policies shall be deemed to be incorporated into and become a part of this Plan. In the event of an inconsistency between the provisions of such rules and policies and of this Plan, the provisions of such rules and policies shall govern. In the event that the Company's listing changes from one tier to another tier on the Exchange or the Company's Shares are listed on a new stock exchange, the granting of options shall be governed by the rules and policies of such new tier or new stock exchange and unless inconsistent with the terms of this Plan, the Company shall be able to grant options pursuant to the rules and policies of such new tier or new stock exchange without requiring shareholder approval.

**PART 8**

**AMENDMENT OF PLAN**

8.1 **Amendments.** The Board may, subject to obtaining any required consent of the Exchange, at any time amend, modify or terminate this Plan if and when it is advisable in the discretion of the Board, provided however, shareholder approval shall be required in respect of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any
 amendments to the maximum number of Shares reserved for issuance under the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any
 amendment which reduces the exercise price of an option that is held by an insider of the
 Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any
 amendment extending the term of an option held by an insider of the Company beyond its original
 expiry date except as otherwise permitted by the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any
 amendment which increases the limit on grants of options to insiders of the Company under
 the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the
 inclusion in the Plan of amendment provisions granting additional powers to the Board to
 amend the Plan or option entitlements thereunder without shareholder approval; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) amendments
 required to be approved by shareholders under applicable law (including, without limitation,
 Exchange Policies and Securities Laws).

Where shareholder approval is sought for amendments under subsections (b) (c) or (d) above, the votes attached to Shares held directly or indirectly by insiders of the Company benefiting from the amendment will be excluded.

Other than as specified above, the Board may approve all other amendments to the Plan or Options granted under the Plan. Without limiting the generality of the foregoing, the following types of amendments would not require shareholder approval:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) amendments
 of a "housekeeping" or ministerial nature, including any amendment for the purpose
 of curing any ambiguity, error or omission in the Plan or to correct or supplement any provision
 of the Plan that is inconsistent with any other provision of the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) amendments
 necessary to comply with the provisions of applicable law (including, without limitation,
 including, without limitation, Exchange Policies and Securities Laws);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 addition or modification of a cashless exercise feature, payable in securities or cash of
 the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) amendments
 respecting administration of the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any
 amendment to the vesting provisions of the Plan or any option;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any
 amendment to the early termination provisions of the Plan or any option, whether or not such
 option is held by an insider of the Company, provided such amendment does not entail an extension
 beyond the original expiry date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) amendments
 necessary to suspend or terminate the Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any
 other amendment, whether fundamental or otherwise, not requiring shareholder approval under
 applicable law (including, without limitation, without limitation, Exchange Policies and
 Securities Laws).

**PART 9**

**EFFECT OF PLAN ON OTHER COMPENSATION OPTIONS**

9.1 **Other Options Not Affected**. This Plan is in addition to any other existing stock options granted prior to and outstanding as at the date of the Plan and shall not in any way affect the policies or decisions of the Board in relation to the remuneration of Directors, Officers, Consultants and Employees.

**PART 10**

**OPTIONEE'S RIGHTS AS A SHAREHOLDER**

10.1 **No Rights Until Option Exercised**. An Optionee shall be entitled to the rights pertaining to share ownership, such as to dividends, only with respect to Shares that have been fully paid for and issued to the Optionee upon exercise of an option.

**PART 11**

**EFFECTIVE DATE OF PLAN**

11.1 **Effective Date**. The Plan shall become effective upon the later of the date of acceptance for filing of the Plan by the Exchange or the approval of the Plan by the shareholders of the Company, however, options may be granted under the Plan prior to the receipt of approval by shareholders and acceptance from the Exchange.

**SCHEDULE "A"**

**ALMONTY INDUSTRIES INC.** 

**INCENTIVE STOCK OPTION AGREEMENT**

**INCENTIVE STOCK OPTION AGREEMENT** dated ________________, between Almonty Industries Inc. (the "**Company**") and ________________ (the "**Optionee**").

WHEREAS

A. In order to attract and retain employees, consultants, officers and directors of the Company and to motivate them to advance the interests of the Company, the Company has created an incentive stock option plan (the "**Plan**"); and

B. pursuant to the Plan, the Company has agreed to issue options under the Plan to the Optionee.

In consideration of the foregoing and the mutual agreements contained herein (the receipt and adequacy of which are acknowledged), the parties agree as follows:

1. **Grant of Options.** Pursuant to the Plan, the Company hereby grants to the Optionee who accepts _____________ options (the "**Options**") to acquire common shares in the capital of the Company (the "**Shares**") at an exercise price of $______________ per share upon the following terms and conditions.

2. **Vesting.** The Options will vest on __________________.

3. **Expiry.** The Options will expire _____________ years ***[maximum of ten years]*** after the date of the grant of the Options.

4. **Termination of Employment.** If the Optionee is a Director, Officer, Consultant or Employee (as defined in the Plan) and ceases to be so engaged by the Company for just cause (as determined by the Board, in its sole discretion) before the expiry date of such Optionee's option, the option granted to such Optionee shall thereupon cease and terminate and be of no further force or effect whatsoever. If a Director, Officer, Consultant or Employee ceases to be so engaged by the Company for any reason, other than just cause or death, before the expiry date of such Optionee's option, such Director, Officer, Consultant or Employee shall have the right to exercise any vested option not exercised prior to such termination within a period of seven days after the date of termination, or such shorter period as may be set out in the Optionee's Option Agreement. For greater certainty, any option not vested at the date of such termination shall be immediately cancelled.

5. **Death of Optionee**. If the Optionee dies prior to the expiry of his Option, his heirs or administrators may within one year from the date of the Optionee's death exercise any vested option not exercised prior to the date of the Optionee's death.

6. **Assignment**. No option granted under the Plan or any right thereunder or in respect thereof shall be transferable or assignable otherwise than by provided for in Section 5.

7. **Notice**. Options shall be exercised only in accordance with the terms and conditions of the agreements under which they are respectively granted and shall be exercisable only by notice in writing to the Company substantially in the form set out in Schedule "B" of the Plan. To the extent the Optionee is entitled to a Cashless Exercise Right in respect of all or any portion of the Options granted pursuant to this Option Agreement as determined by the Board of the Corporation in its sole discretion, such Cashless Exercise Right shall be exercisable only by delivery to the Corporation of a duly completed and executed Exercise Notice specifying the Optionee's intention to surrender such Options to the Corporation pursuant to such Cashless Exercise Right, together with payment of any withholding taxes as required by the Corporation.

8. **Payment**. Once vested, options may be exercised in whole or in part at any time prior to their lapse or termination. Shares purchased by the Optionee on exercise of an Option shall be paid for in full in cash at the time of their purchase.

9. **Conditions Precedent**. The Company's obligation to issue and deliver Shares under any option is subject to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) completion
 of such registration or other qualification of such shares or obtaining approval of such
 government authority as the Company shall determine to be necessary or advisable in connection
 with the authorization, issuance or sale thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 admission of such shares to listing on any stock exchange on which the Company's shares
 may then be listed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 receipt from the Optionee of such representations, agreements and undertakings as to future
 dealings in such Shares as the Company determines to be necessary or advisable in order to
 safeguard against the violation of the securities laws of any jurisdiction.

10. **Adjustment in Shares and Exercise Price**. In the event that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) there
 is any change in the Shares through subdivisions or consolidations of the share capital of
 the Company, or otherwise, the options (and the Shares available for each option) will be
 adjusted in accordance with the ASX Listing Rules and the TSX Company Manual;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Company makes a pro rata issue of Shares to existing holders of Shares generally by way of
 a rights issue or entitlement offer, Optionee's can only participate if they exercise
 their Options before the record date of the pro rata offer;

11. **Merger, Amalgamation, Etc**. If there is a merger, statutory amalgamation or arrangement of the Company with or into another corporation, a separation of the business of the Company into two or more entities or a transfer of all substantially all of the assets of the Company to another entity, upon the exercise of an option under this Plan, the holder thereof shall be entitled to receive the securities, property or cash which the holder would have received upon such merger, amalgamation, arrangement, separation or transfer if the holder had exercised the option immediately prior to such event, unless the directors of the Company otherwise determine the basis upon which such option shall be exercisable.

12. **Effect of a Take-Over Bid**. If there is a Take-over Bid or Issuer Bid (other than a "normal course" Issuer Bid) made for all or any of the issued and outstanding Shares (an "**Offer**"), then the Board may, by resolution, permit all options outstanding, vested and unvested, under the Plan to become immediately exercisable (subject to any limitations the Board may impose) in order to permit Shares issuable under such options to be tendered to such bid (such Shares, the "**Option Shares**").

13. **Acceleration of Expiry Date**. If an Offer is made, the Board may, upon notifying the Optionees of full particulars of the Offer, declare that the expiry date for the exercise of all unexercised options granted under the Plan is accelerated so that all options will either be exercised or will expire prior to the date upon which Shares must be tendered pursuant to the Offer.

14. **Effect of a Change of Control**. If a Change of Control occurs, the Board may, by resolution, permit all Option Shares subject to each outstanding option to become vested, whereupon such option may be exercised in whole or in part by the Optionee.

15. **Certificate Subject to Terms of Plan.** The Optionee acknowledges that the terms and conditions of this Agreement are subject to the provisions of the Plan and Exchange Policies and Securities Laws as amended from time to time, which provisions are incorporated by reference into this Agreement. In the event of an inconsistency between the provisions of the Plan and this Agreement, the provisions of the Plan shall prevail. The Plan shall be available for review by the Optionee at the Company's records office.

All capitalized terms not defined in this Agreement have the meaning ascribed thereto in the Plan.

 

*[signature page follows]*

IN WITNESS WHEREOF, the Company and Optionee have caused this Agreement to be duly executed. This Option is granted on the date first stated above.

---

| | |
|:---|:---|
| **ALMONTY INDUSTRIES INC.** | **ALMONTY INDUSTRIES INC.** |
| By: |  |
|  | Authorized Signatory |
| **OPTIONEE** | **OPTIONEE** |
| Signature of Optionee | Signature of Optionee |

---

**SCHEDULE "B"**

**EXERCISE NOTICE**

**ALMONTY INDUSTRIES INC.**

The undersigned Optionee hereby subscribes for _________ common shares in the capital of Almonty Industries Inc. (the "**Company**") at a price of $________ per share, pursuant to the provisions of the Incentive Stock Option Agreement entered into between the undersigned and the Company on ______________. The undersigned encloses cash in the amount of $________________ in full payment for the shares purchased herein.

☐ To the extent approved by the Company's Board of Directors, the undersigned wishes for the options to be exercised on a "cashless basis" pursuant to Section 5.11 of the Company' Stock Option Plan. *[check the box if applicable]*

 

Dated this ____ day of ____________, 20__.

---

| |
|:---|
| Signature of Optionee |
| Name of Optionee |
| Address of Optionee |

---

THIS PAGE INTENTIONALLY LEFT BLANK

## Exhibit 4.7

**Exhibit 4.7**

![](ex4-7_001.jpg)

NOTICE OF SPECIAL MEETING OF SHAREHOLDERS

TO BE HELD ON FEBRUARY 27, 2025

AND

MANAGEMENT INFORMATION CIRCULAR

**ALMONTY INDUSTRIES INC.**

**PROPOSED DOMESTICATION – YOUR VOTE IS VERY IMPORTANT**

Dear Shareholders:

We are furnishing the accompanying management information circular to shareholders ("**Shareholders**") of Almonty Industries Inc. ("**Almonty**" or the "**Company**") in connection with the solicitation of proxies by our management for use at a special meeting of Shareholders to be held in the North Boardroom at the offices of Suite 300 – 1055 W. Hastings Street, Vancouver, British Columbia on February 27, 2025 at 10:00 a.m. (Vancouver time) (the "**Meeting**").

The purpose of the Meeting is to obtain Shareholder approval to change Almonty's jurisdiction of incorporation from the federal jurisdiction of Canada to the State of Delaware in the United States of America (the "**Domestication**") through a court approved plan of arrangement (the "**Plan of Arrangement**") under Section 192 of the *Canada Business Corporations Act* (the "**CBCA**").

The Domestication reflects the growing importance of the United States in our strategic positioning, particularly given its strong regulatory framework for critical materials such as tungsten and molybdenum. It will also align our corporate structure with the location of a significant portion of our Shareholder base and is expected to enhance Almonty's long-term competitiveness in light of global geopolitical tensions and policies in key economies shifting to encourage domestic sourcing of critical raw materials.

The State of Delaware in particular was chosen as our new domicile because it expressly accommodates continuances under Section 192 of the CBCA and is recognized for its comprehensive body of corporate law. Supported by decades of case law in Delaware courts, the Delaware General Corporation Law provides well-defined guidance on the duties and obligations of directors and officers, offering legal clarity that is expected to benefit both the Company and the Shareholders.

If we complete the Domestication, we will continue our legal existence in Delaware as if we had originally been incorporated under Delaware law. In addition, each outstanding common share of the Company ("**Common Shares**") as a Canadian corporation will then represent one share of common stock (each a "**New Almonty Share**") of the continued Delaware corporation. Our Common Shares are currently traded on the Toronto Stock Exchange (the "**TSX**") and the Australian Securities Exchange (the "**ASX**") (in the form of CHESS Depositary Interests ("**CDIs**")), both under the symbol "All". Upon the completion of our Domestication, the New Almonty Shares will continue to be listed on the TSX under the symbol "All" and will be listed on the ASX (in the form of CDIs) under a symbol that remains to be determined and will be announced at a later date. Further, our management will be comprised of the same directors and executive officers who served in such capacities immediately prior to the Domestication.

The record date for the determination of Shareholders entitled to receive notice of, and to vote at, the Meeting is January 28, 2025. At such date, 273,020,823 Common Shares were outstanding. The holders of at least two-thirds of our Common Shares present at the Meeting in person or by proxy (and assuming a quorum of our outstanding Common Shares are represented at the Meeting in person or by proxy) must vote to approve the Domestication. If the Domestication is completed, dissenting Shareholders have the right to be paid the fair value of their Common Shares under Section 190 of the CBCA as modified by the Plan of Arrangement and the interim order of the Ontario Superior Court of Justice (Commercial List) in respect of the Plan of Arrangement. If approved by Shareholders, the Domestication is expected to become effective as soon as practicable after the Meeting.

Your existing certificates representing your Common Shares will represent the same number of New Almonty Shares after the Domestication without any action on your part. You will not need to exchange any share certificates. We will issue new certificates to you representing New Almonty Shares upon a transfer of the shares by you or at your request.

The accompanying management information circular (the "**Circular**") provides a detailed description of our proposed Domestication and other information to assist you in considering the proposal on which you are asked to vote. We urge you to review this information carefully and, if you require assistance, to consult with your financial, tax or other professional advisers.

Almonty's board of directors has carefully considered the benefits of the Domestication and unanimously recommends that you vote **<u>FOR</u>** approval of the Domestication by voting **<u>FOR</u>** the Arrangement Resolution (as defined in the Circular).

Your vote is very important. Whether or not you plan to attend the Meeting, we ask that you indicate the manner in which you wish your Common Shares to be voted and sign and return your proxy as promptly as possible in the enclosed envelope so that your vote may be recorded. If your Common Shares are registered in your name, you may vote in person if you attend the Meeting, even if you send in your proxy.

We appreciate your continued interest in Almonty. Very truly yours,

*(signed) "Lewis Black"*

 

Lewis Black

Chairman of the Board of Directors, President and Chief Executive Officer

**ALMONTY INDUSTRIES INC.**

**NOTICE OF SPECIAL MEETING OF SHAREHOLDERS TO BE HELD ON FEBRUARY 27, 2025**

**NOTICE IS HEREBY GIVEN** that the special meeting of the holders of common shares (the "**Common Shares**", and holders thereof, the "**Shareholders**") of Almonty Industries Inc. (the "**Company**") will be held in the North Boardroom at the offices of Suite 300 – 1055 W. Hastings Street, Vancouver, British Columbia on February 27, 2025 at 10:00 a.m. (Vancouver time) (together with any adjournment or postponement thereof, the "**Meeting**").

The following business of the Company will be transacted at the Meeting:

&nbsp;&nbsp;&nbsp;&nbsp;1. in
 accordance with the interim order of the Ontario Superior Court of Justice (Commercial List)
 (the "**Court**") dated January 31, 2025 (the "**Interim Order** "),
 to consider and, if deemed advisable, to pass, with or without variation, a special resolution
 approving an arrangement (the "**Arrangement**") under Section 192 of the *Canada Business Corporations Act* (the "**Arrangement Resolution** ")
 in order to effect the continuance and domestication of the Company as a Delaware corporation;
 and

&nbsp;&nbsp;&nbsp;&nbsp;2. to
 transact such other business as may properly come before the Meeting.

The specific details of the matters to be put before the Meeting are set forth in the accompanying management information circular (the "**Circular**"), including the Arrangement Resolution and the plan of arrangement (the "**Plan of Arrangement**"), which sets forth the details of the Arrangement. This Notice is also accompanied by a form of proxy or voting instruction form.

The record date for determining the Shareholders entitled to receive notice of and vote at the Meeting is the close of business on January 28, 2025 (the "**Record Date**"). Only Shareholders whose names have been entered in the register of Shareholders as of the close of business on the Record Date are entitled to receive notice of and to vote at the Meeting. All non-registered Shareholders who plan to attend the Meeting must follow the instructions set out in the voting instruction form and in the Circular to ensure that such Shareholders' Common Shares will be voted at the Meeting. If you hold your Common Shares in a brokerage account, you are not a registered Shareholder.

Registered Shareholders are entitled to vote at the Meeting either in person or by proxy. Regardless of whether a registered Shareholder plans to attend the Meeting in person, please complete, date and sign the enclosed form of proxy and deliver it in accordance with the instructions set out in the form of proxy and in the Circular. To be effective, a proxy must be received by the Company's transfer agent, Computershare Investor Services Inc., by no later than 10:00 a.m. (Vancouver time) on February 25, 2025, or in the case of any postponement or adjournment of the Meeting, not less than 48 hours, excluding Saturdays, Sundays and holidays, prior to the time of the postponed or adjourned meeting. **Late proxies may be accepted or rejected by the Chairperson of the Meeting in his or her discretion. The Chairperson is under no obligation to accept or reject any particular late proxy.**

As set out in the notes to the form of proxy, the enclosed proxy is solicited by management, but you may amend it, if you so desire, by striking out the names listed therein and inserting in the space provided, the name of the person you wish to represent you at the Meeting.

**Pursuant to the Interim Order, registered Shareholders have the right to dissent in respect of the Arrangement Resolution and, if the Arrangement becomes effective, to be paid an amount equal to the fair value of their Common Shares in accordance with Section 190 of the *Canada Business Corporations Act* (the "CBCA"), as modified by the Plan of Arrangement and the Interim Order. This dissent right and the dissent procedures are described in the Circular. The dissent procedures require that a registered Shareholder who wishes to dissent send a written notice of objection to the Arrangement Resolution to the Company, which written objection in respect of their Common Shares must be received by the Company by not later than 5:00 p.m. (Vancouver time) on the** **business day that is two (2) business days immediately preceding the Meeting (or any adjournment or postponement thereof), and such dissenting Shareholder must otherwise comply with Section 190 of the CBCA, as modified and supplemented by the Plan of Arrangement and the Interim Order. These dissent rights are further described in the accompanying Circular and in the text of Section 190 of the CBCA, which is included as Exhibit I to the Circular. Failure to strictly comply with the requirements of that section, as modified by the Plan of Arrangement and the Interim Order, and to adhere to the procedures established therein may result in the loss of all rights thereunder.**

**A non-registered Shareholder desiring to exercise the right of dissent must make arrangements for such Common Shares beneficially owned to be registered in such holder's name prior to the time the written objection to the Arrangement Resolution is required or, alternatively, make arrangements for the registered holder of such Common Shares to dissent on such holder's behalf. A registered Shareholder, such as a broker, who holds Common Shares as nominee for non- registered Shareholders, some of whom wish to dissent, must exercise dissent rights on behalf of such non-registered Shareholders with respect to the Common Shares held for such non-registered Shareholders. In such case, the demand for dissent should set forth the number of Common Shares covered by such demand.**

**In the event that holders of the Common Shares entitled to vote at the Meeting have exercised rights of dissent in respect of the Arrangement Resolution, the Board may, in its sole discretion, decide not to proceed with the Arrangement.**

---

| | |
|:---|:---|
|  | **BY ORDER OF THE BOARD OF DIRECTORS** |
| <br> Toronto, Ontario | <br> (signed) "Lewis Black"<br>|
| January 31, 2025 | Lewis Black |
|  | Chairman of the Board of Directors, President and Chief Executive Officer |

---

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| **IMPORTANT NOTES** | **2** |
| **FORWARD-LOOKING STATEMENTS** | **2** |
| **MANAGEMENT SOLICITATION OF PROXIES** | **3** |
| **SUMMARY** | **3** |
| **CERTAIN RISK FACTORS RELATING TO THE ARRANGEMENT** | **7** |
| **THE MEETING** | **9** |
| **VOTING SECURITIES AND PRINCIPAL HOLDERS THEREOF** | **14** |
| **BUSINESS OF THE MEETING: APPROVAL OF THE ARRANGEMENT** | <br> **14** |
| &nbsp;&nbsp;&nbsp;General | 14 |
| &nbsp;&nbsp;&nbsp;Principal Reasons for the Domestication | 15 |
| &nbsp;&nbsp;&nbsp;Recommendation of the Board | 16 |
| &nbsp;&nbsp;&nbsp;Effects of the Domestication | 17 |
| &nbsp;&nbsp;&nbsp;Regulatory and Other Approvals | 18 |
| &nbsp;&nbsp;&nbsp;Comparison of Shareholder Rights | 19 |
| &nbsp;&nbsp;&nbsp;Procedure for the Arrangement to Become Effective | 19 |
| &nbsp;&nbsp;&nbsp;Proposed Certificate of Incorporation and By-Laws of New Almonty | 22 |
| &nbsp;&nbsp;&nbsp;Dissent Rights of Shareholders | 22 |
| &nbsp;&nbsp;&nbsp;Accounting Treatment of the Domestication | 25 |
| **CERTAIN CANADIAN FEDERAL INCOME TAX CONSIDERATIONS RELATED TO THE ARRANGEMENT** | **25** |
| **CERTAIN UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS RELATED TO THE DOMESTICATION** | **30** |
| **DESCRIPTION OF CAPITAL STOCK** | **39** |
| **INTERESTS OF CERTAIN PERSONS IN MATTERS TO BE ACTED UPON** | **40** |
| **INTERESTS OF INFORMED PERSONS IN MATERIAL TRANSACTIONS** | **40** |
| **INDEBTEDNESS OF DIRECTORS, EXECUTIVE OFFICERS AND SENIOR OFFICERS** | **40** |
| **AUDITOR** | **41** |
| **ADDITIONAL INFORMATION** | **41** |
| **SHAREHOLDER PROPOSALS** | **41** |
| **DIRECTORS' APPROVAL** | **42** |
| **Exhibit A Arrangement Resolution** | **A-1** |
| **Exhibit B Plan of Arrangement** | **B-1** |
| **Exhibit C Interim Order** | **C-1** |
| **Exhibit D Notice of Application** | **D-1** |
| **Exhibit E Form of Certificate of Conversion** | **E-1** |
| **Exhibit F Form of Certificate of Incorporation of New Almonty** | **F-1** |
| **Exhibit G Form of By-Laws of New Almonty** | **G-1** |
| **Exhibit H Comparison of Shareholder Rights under Canadian Law and Delaware Law** | **H-1** |
| **Exhibit I Section 190 of the *Canada Business Corporations Act*** | **I-1** |

---

**ALMONTY INDUSTRIES INC.**

**MANAGEMENT INFORMATION CIRCULAR**

**IN CONNECTION WITH THE SPECIAL MEETING OF SHAREHOLDERS TO BE HELD ON FEBRUARY 27, 2025**

**IMPORTANT NOTES**

The New Almonty (as defined below) securities offered (within the meaning of applicable U.S. securities laws) in exchange for existing securities of the Company (as defined below) in connection with the Arrangement (as defined below) have not been and will not be registered under the U.S. Securities Act (as defined below). Such securities will instead be offered in reliance upon the exemption from registration provided by Section 3(a)(10) of the U.S. Securities Act and applicable exemptions under state securities laws. Securities offered in connection with the Arrangement will be freely transferable under U.S. federal securities laws, except for securities held by persons who are deemed to be "affiliates" of Almonty (as defined below) for U.S. purposes, or who are deemed to have been "affiliates" of the Company within ninety (90) days prior to the date of completion of the Arrangement. Such securities held by "affiliates" or those deemed to have been "affiliates" of the Company within ninety (90) days prior to the date of completion of the Arrangement may be resold by them only in compliance with the resale provisions of Rule 144 promulgated under the U.S. Securities Act or as otherwise permitted under applicable securities laws.

THE NEW ALMONTY SHARES (AS DEFINED HEREIN) HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE U.S. SECURITIES AND EXCHANGE COMMISSION, OR SECURITIES REGULATORY AUTHORITIES OF ANY STATE OF THE UNITED STATES, OR PROVINCE OR TERRITORY OF CANADA, NOR HAS THE U.S. SECURITIES AND EXCHANGE COMMISSION OR ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE OF THE UNITED STATES OR PROVINCE OR TERRITORY OF CANADA PASSED ON THE ADEQUACY OR ACCURACY OF THIS MANAGEMENT INFORMATION CIRCULAR. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

In deciding how to vote on the Arrangement Resolution (as defined below), Shareholders (as defined below) should rely only on the information contained in this management information circular (this "**Circular**"). Almonty has not authorized any person to provide Shareholders with any information that is different from such information. The information contained in this Circular speaks only as of the date of this Circular, unless otherwise specified.

**FORWARD-LOOKING STATEMENTS**

Certain statements contained in this Circular may constitute forward-looking information under the meaning of applicable securities laws, which are based on the opinions, estimates and assumptions of Almonty's management and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Forward-looking information may include matters relating to whether the Arrangement will be completed, the potential benefits of the Arrangement, the timing of the Arrangement, the satisfaction of conditions to the completion of the Arrangement, relevant governmental regulatory regimes and anticipated changes thereto, and other expectations of Almonty. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "anticipates", "plans", "estimates", "intends", "strategy", "goals", "objectives" or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be "forward-looking statements".

Such statements reflect the current views of Almonty's management, as the case may be, with respect to future events and are based on information currently available to Almonty, as the case may be, and are subject to certain risks, uncertainties and assumptions, including those discussed below. Many factors could cause the actual results, performance or achievements of Almonty to differ materially from any future results, performance or achievements that may be expressed or implied by such forward-looking information. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.

These risks and uncertainties include, but are not limited to, possible failure to complete the Arrangement, potential tax liabilities (which may be material) associated with the Arrangement for the Shareholders and/or Almonty (including as a result of disagreements with tax authorities regarding Almonty's estimates of value), change in the rights of Shareholders who become Stockholders (as defined below) as a result of the Arrangement, the absence of any event, change or other circumstances that could give rise to not proceeding with the Arrangement, the delay in or increase in cost of completing the Arrangement or the failure to complete the Arrangement for any other reason.

**MANAGEMENT SOLICITATION OF PROXIES**

This Circular is furnished in connection with the solicitation of proxies by the management of Almonty Industries Inc. ("**Almonty**" or the "**Company**"), a corporation governed by the *Canada Business Corporations Act* (the "**CBCA**"), for use at the special meeting (the "**Meeting**") of the holders of common shares of the Company (the "**Common Shares**", and holders thereof, the "**Shareholders**") to be held in the North Boardroom at the offices of Suite 300 – 1055 W. Hastings Street, Vancouver, British Columbia on February 27, 2025, at 10:00 a.m. (Vancouver time) for the purposes set out in the accompanying Notice of Special Meeting of Shareholders (the "**Notice of Meeting**"). You should read this Circular in its entirety.

Unless otherwise provided in this Circular, references to the "Company," "Almonty," "we," "us" and "our" refer to Almonty Industries Inc., a Canadian corporation, prior to the change of jurisdiction. References to "**New Almonty**" refer to Almonty Industries Inc., a Delaware corporation, as of the effective time of the change in jurisdiction.

Unless otherwise indicated, information contained in this Circular is given as at January 31, 2025, and all dollar amounts are stated in Canadian dollars.

**SUMMARY**

**The Arrangement Proposal**

Almonty currently exists under the federal laws of Canada pursuant to the CBCA. Pursuant to a plan of arrangement under section 192 of the CBCA (the full text of which is appended to this Circular as Exhibit B, the "**Plan of Arrangement**"), Almonty's board of directors (the "**Board**") is proposing to change our jurisdiction of incorporation from the federal jurisdiction of Canada to the State of Delaware such that the Company will be governed by the Delaware General Corporation Law (the "**DGCL**") (collectively, the "**Arrangement**"). We refer to this change of jurisdiction as the "**Domestication**" throughout this Circular.

Under the DGCL, a corporation may become domesticated in Delaware by filing a certificate of conversion from a non-Delaware corporation to a Delaware corporation pursuant to Section 265 of the DGCL, and a certificate of incorporation with the Secretary of State of the State of Delaware. Copies of the form of certificate of conversion from a non-Delaware corporation to a Delaware corporation pursuant to Section 265 of the DGCL (the "**Certificate of Conversion**") and the form of certificate of incorporation (the "**Certificate of Incorporation**") proposed to be filed with the Secretary of State of the State of Delaware in respect of New Almonty are attached as Exhibit E and Exhibit F, respectively. The domesticated corporation, which will be called Almonty Industries Inc., will become subject to the DGCL on the date of the Domestication, but will be deemed for the purposes of the DGCL to have commenced its existence in Delaware on the date it originally commenced existence in Canada. The Board has unanimously approved the Arrangement, believes it to be in the best interests of Almonty and the Shareholders participating in the Arrangement, and unanimously recommends approval of the Arrangement by the Shareholders.

The Domestication reflects the growing importance of the United States in our strategic positioning. With its robust regulatory framework for critical minerals like tungsten and molybdenum and the evolving global economic landscape, the United States represents a compelling jurisdiction for our incorporation. The Domestication will also align Almonty's corporate structure with the location of a significant portion of our Shareholder base.

We have observed ongoing global geopolitical tensions, including export restrictions in China, import duties by the United States and restrictions on tungsten from China, Russia, Iran and North Korea by the US Department of Defense. In light of those evolving tensions and policies in key economies shifting to encourage domestic sourcing of critical raw materials, the Board and management carefully evaluated various scenarios and concluded that the Domestication is the most strategic course of action. See the section entitled "*Business of the Meeting: Approval of the Arrangement – Principal Reasons for the Domestication*" for more details.

The State of Delaware in particular was chosen as our new domicile because the DGCL expressly accommodates continuances under Section 192 of the CBCA and is recognized for its comprehensive body of corporate law. Supported by decades of case law in Delaware courts, the DGCL provides well-defined guidance on the duties and obligations of directors and officers, offering legal clarity that is expected to benefit both the Company and its Shareholders.

The Domestication will change the corporate laws that apply to our Shareholders from the federal jurisdiction of Canada to the State of Delaware. There are material differences between the CBCA and the DGCL. Our Shareholders may have more or fewer rights under Delaware law depending on the specific set of circumstances. A more detailed description of certain material differences between the rights of Canadian shareholders and Delaware stockholders is set out in Exhibit H.

We plan to complete the proposed Domestication as soon as possible following approval of the Arrangement by our Shareholders. The Domestication will be implemented by way of the court-approved Plan of Arrangement under the CBCA as part of the Arrangement and will be effective on the date set forth in the Certificate of Conversion and Certificate of Incorporation, as filed with the Secretary of State of the State of Delaware. Thereafter, New Almonty will be subject to the Certificate of Incorporation filed in Delaware. We will be discontinued in Canada as of the date shown on the certificate of arrangement (the "**Certificate of Arrangement**") issued by the Director appointed under the CBCA (the "**CBCA Director**"), which is expected to be the same date as the date of the filing of the Certificate of Conversion and Certificate of Incorporation in Delaware. In connection with the Domestication, the Company may also reorganize and/or wind up one or more of its subsidiaries. The Arrangement Resolution permits the Board not to proceed with the Arrangement at any time prior to the Arrangement becoming effective pursuant to the CBCA, and, if it is approved by Shareholders at the Meeting, the Board may revoke the Arrangement Resolution without further approval of the Shareholders. The Board has not considered any alternative action if the Arrangement is not approved or if it decides to abandon the Arrangement.

The Arrangement will not interrupt our corporate existence, our operations, our outstanding agreements and obligations, or the trading markets of our Common Shares. Each outstanding Common Share at the time of the Arrangement will become and remain a share of common stock of New Almonty (each a "**New Almonty Share**", and holders thereof being "**Stockholders**") after our corporate existence is continued from Canada under the CBCA and domesticated in Delaware under the DGCL. Our Common Shares are currently traded on the Toronto Stock Exchange (the "**TSX**") and (in the form of CHESS Depositary Interests ("**CDIs**")) on the Australian Securities Exchange (the "**ASX**"), both under the symbol "All". Following the completion of the Arrangement, the New Almonty Shares will continue to be listed on the TSX under the symbol "All" and will be listed on the ASX (in the form of CDIs) under a symbol that remains to be determined and will be announced at a later date.

**Regulatory and Other Approvals**

In addition to the approval of the Shareholders and the issuance of the final order of the Ontario Superior Court of Justice (Commercial List) approving the Arrangement, the Arrangement is subject to the receipt of appropriate consents, approvals, and/or waivers from relevant regulatory authorities and third parties, including the CBCA Director, the TSX and the ASX (the "**Key Regulatory Approvals**").

The CBCA Director is empowered to authorize the change of jurisdiction if, among other things, the CBCA Director is satisfied that the change of jurisdiction will not adversely affect our creditors or Shareholders.

The completion of the Arrangement is also subject to the acceptance of the TSX (subject to customary conditions), including approval of the final Certificate of Conversion, Certificate of Incorporation and Delaware by-laws of New Almonty (a form of which is attached as Exhibit G to this Circular, the "**By-Laws**"). Following the completion of the Arrangement, the New Almonty Shares will be listed on the TSX.

The ASX has previously granted a number of waivers to the Company to provide relief from certain Listing Rules and policies of the ASX. As the Arrangement includes, among other things, a change to our governing law and our constating documents, the Company intends to apply for new and/or amended waivers to facilitate the Arrangement and provide relief from certain Listing Rules and policies of the ASX that may apply once the Company becomes a Delaware corporation. Following the completion of the Arrangement, the New Almonty Shares will be traded on the ASX (in the form of CDIs).

There is no certainty that all conditions precedent to the completion of the Arrangement will be satisfied or waived, or as to the timing of their satisfaction or waiver. In particular, the completion of the Arrangement is subject to the satisfaction or waiver of the Key Regulatory Approvals. If the Company cannot obtain the Key Regulatory Approvals to the satisfaction of the Board, the Arrangement will not occur. In addition, any delay in fulfilling these conditions may also delay the completion of the Arrangement.

**Certain Tax Consequences of the Arrangement**

*Certain Canadian Federal Income Tax Consequences of the Domestication*

 

Under the Canadian Tax Act (as defined below), the change in our jurisdiction from Canada to the State of Delaware will cause our tax year to end immediately before the Arrangement. Furthermore, we will be deemed to have disposed of all of our property immediately before the Arrangement for proceeds of disposition equal to the fair market value of the property at that time. We will be subject to a separate corporate emigration tax imposed equal to the amount by which the fair market value of all of our property immediately before the Arrangement exceeds the aggregate of our liabilities at that time (other than dividends payable and taxes payable in connection with the emigration tax) and the amount of paid-up capital on all of our outstanding Common Shares.

The quantum of tax payable, if any, by the Company upon the Arrangement will depend upon a number of considerations including whether the Company reorganizes and/or winds up one or more of its subsidiaries prior to the Arrangement becoming effective, valuation of the Company's assets, the amount of its liabilities, its shareholder composition, as well as certain Canadian tax amounts, accounts and balances of the Company, each as of the time of the Arrangement. While Almonty believes that the quantum of any taxes payable will not be material at Almonty's current estimates of fair market value, it is possible that following the Arrangement, the Canada Revenue Agency may disagree with the Company's determination of the fair market value of its properties at the relevant time and/or the Company's determination of any of its tax accounts or tax attributes.

Stockholders who hold New Almonty Shares after the Arrangement will not be considered to have disposed of their shares by reason only of the Arrangement. Accordingly, the Arrangement will not cause Canadian resident Shareholders to realize a capital gain or loss on their Common Shares and there will be no effect on the adjusted cost base of their Common Shares.

The foregoing is a brief summary of the principal income tax considerations only and is qualified in its entirety by the more detailed description of income tax considerations in the section entitled "*Certain Canadian Federal Income Tax Consequences of the Arrangement*" in this Circular, which Shareholders are urged to read. This summary does not discuss all aspects of Canadian tax consequences that may apply in connection with the Arrangement. Shareholders should consult their own tax advisors as to the tax consequences of the Arrangement applicable to them.

*Certain U.S. Federal Income Tax Consequences of 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 U.S. Tax Code (an "**F Reorganization**"). Assuming that is the case, subject to the potential application of the PFIC rules, the U.S. federal income tax treatment of a U.S. Holder (defined below) in connection with the Domestication should be as follows:

● A U.S. Holder that owns Common Shares with a fair market value of less than $50,000 at the time of the Domestication should not recognize gain or loss on its receipt of New Almonty Shares as a result of the Domestication.

● A U.S. Holder that owns Common Shares with a fair market value of $50,000 or more (but who is not a 10% U.S. Holder (as defined below)) at the time of the Domestication should, unless such holder validly makes the "all earnings and profits" election described below, be required to recognize gain, but not a loss, with respect to their Common Shares in connection with the Domestication. In lieu of recognizing such taxable gain, 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" (as defined under applicable Treasury Regulations (as defined below)) that is attributable, under U.S. tax principles, to such holder's Common Shares. In general, the "all earnings and profits amount" attributable to Common Shares held by a U.S. Holder should depend on Almonty's accumulated earnings and profits (as determined under U.S. federal income tax principles) from the date that Common Shares were acquired by such U.S. Holder through the Effective Date (as defined below). A U.S. Holder that wishes to make an "all earnings and profits" election must comply with strict conditions for making this election under applicable Treasury Regulations.

● A 10% U.S. Holder is subject to special rules that generally require such 10% U.S. Holder to include in income, as a deemed dividend, the "all earnings and profits amount" attributable to the Common Shares owned by such U.S. Holder.

We are currently in the process of determining our historical earnings and profits and also expect to determine our earnings and profits for 2024 and for the portion of 2025 ending with the Effective Date. We will not complete this determination until after completion of the Domestication. Almonty intends to provide on its external website (https://almonty.com/investors/financials/), under the heading "Financial Reports", information regarding its earnings and profits once such information is reasonably available.

If Almonty has been a PFIC (defined below) for any taxable year during which a U.S. Holder has held Common Shares, certain adverse tax consequences could apply to such U.S. Holder in connection with the transaction described above.

**U.S. Holders are strongly urged to consult their own tax advisors regarding the U.S. federal income tax consequences of the Domestication to them in their particular circumstances, including whether to make the "all earnings and profits" election where applicable, and the appropriate filing requirements with respect to this election.**

The brief U.S. tax summary provided above is qualified in its entirety by the section "*Certain United States Federal Income Tax Considerations Related To The Domestication*" below, which provides a summary of certain U.S. federal income tax considerations generally applicable to (a) U.S. Holders of participating in the Domestication, and (b) Non-U.S. Holders of participating in the Domestication and of the ownership and disposition of New Almonty Shares received by Non-U.S. Holders pursuant to the Domestication. Shareholders are urged to consult with and rely on their own tax advisors to determine the particular tax consequences to them of the Domestication as well as the tax consequences of the ownership and disposition of New Almonty Shares received pursuant to the Domestication.

**Accounting Treatment of the Domestication**

Our Domestication as a Delaware corporation represents a transaction between entities under common control. Assets and liabilities transferred between entities under common control are accounted for at carrying value. Accordingly, the assets and liabilities of New Almonty will be reflected at their carrying value to us. Any of our Common Shares that we acquire from Dissenting Shareholders (as defined below) will be treated as an acquisition of treasury stock at the amount paid for the Common Shares.

**Dissent Rights of Shareholders**

Registered Shareholders (as defined below) are entitled to exercise dissent rights by sending a written objection to the Arrangement Resolution to the Company not later than 5:00 p.m. (Vancouver time) on the business day that is two (2) business days immediately preceding the Meeting (or any adjournment or postponement thereof) in the manner described under "*Dissent Rights of Shareholders*" in this Circular. **Failure to strictly comply with the dissent procedures set out in Section 190 of the CBCA, as modified by the Plan of Arrangement and the Interim Order (as defined below), may result in the loss of dissent rights.** If a Registered Shareholder dissents, and the Arrangement is completed, Almonty will acquire such Dissenting Shareholder's Common Shares in exchange for the obligation to pay such Dissenting Shareholder the "fair value" of his, her or its Common Shares as of the close of business on the last business day before the day the Arrangement Resolution is approved by Shareholders. **Only Registered Shareholders are entitled to dissent and, accordingly, a non-registered Shareholder desiring to exercise the right of dissent must make arrangements for such Common Shares beneficially owned to be registered in such holder's name prior to the time the written objection to the Arrangement Resolution is required or, alternatively, make arrangements for the registered holder of such Common Shares to dissent on such holder's behalf.** Shareholders should carefully read the section in this Circular entitled "*Business of the Meeting: Approval of the Arrangement* – *Dissent Rights of Shareholders*" if they wish to exercise dissent rights.

Section 190 of the CBCA is reproduced in its entirety as Exhibit I to this Circular.

**Comparison of Shareholder Rights**

Upon completion of the Arrangement, our Shareholders will become holders of New Almonty Shares (i.e. Stockholders), and their rights will be governed by the DGCL as well as New Almonty's Certificate of Incorporation and By-Laws, forms of which are attached as Exhibit F and Exhibit G, respectively. Shareholders should be aware that the rights they currently have under the CBCA may, with respect to certain matters, be different than the rights they will have as Stockholders under the DGCL. For example, under the CBCA, a company has the authority to issue an unlimited number of shares whereas, under the DGCL, a Delaware corporation may only issue the number of shares that is authorized by its certificate of incorporation and stockholder approval must be obtained to amend the certificate of incorporation to authorize the issuance of additional shares. We refer you to Exhibit H for a more detailed description of certain material differences between the rights of Canadian shareholders and Delaware stockholders.

**CERTAIN RISK FACTORS RELATING TO THE ARRANGEMENT**

You should carefully consider the risks and uncertainties described below, together with all of the other information and risks included in this Circular, before making a decision on whether to vote for the Arrangement Resolution described in this Circular.

**The rights of our Shareholders under Canadian law will differ from the rights of Stockholders under Delaware law, which will, in some cases, provide less protection to Shareholders who become Stockholders following the Domestication.**

Upon consummation of the Domestication, our Shareholders will become Stockholders of a Delaware corporation. There are material differences between the CBCA and the DGCL and our current and proposed charter and by-laws. For example, under Canadian law, many significant corporate actions such as amending a corporation's articles of incorporation or consummating a merger require the approval of two- thirds of the votes cast by shareholders, whereas under Delaware law, a majority of the total voting power of all of those entitled to vote may approve the matter. Furthermore, shareholders under Canadian law are entitled to dissent and appraisal rights under a number of extraordinary corporate actions, including an amalgamation with another unrelated corporation, certain amendments to a corporation's articles of incorporation or the sale of all or substantially all of a corporation's assets; under Delaware law, stockholders are entitled to dissent and appraisal rights only for certain specified corporate transactions such as mergers or consolidations. If the Domestication is approved, Shareholders who become Stockholders may be afforded less protection under the DGCL than they had under the CBCA in certain circumstances. See the section entitled "*Business of the Meeting: Approval of the Arrangement – Comparison of Shareholder Rights*" for more details.

**The market for Common Shares of the Company incorporated under the CBCA may differ from the market for New Almonty Shares following the Company's Domestication under the DGCL.**

Although we anticipate that the Common Shares will requalify to be eligible for trading on the TSX and ASX following the completion of the Domestication, the market prices, trading volume and volatility of the New Almonty Shares could be different from those of the Common Shares. We cannot predict what effect, if any, the completion of the Domestication may have on the market price prevailing from time to time or the liquidity of the New Almonty Shares.

**The potential benefits from the Domestication are not guaranteed.**

The Company anticipates that several potential benefits will result from the Domestication, as discussed in the section of this Circular entitled "*Business of the Meeting: Approval of the Arrangement – Principal Reasons for the Domestication*". However, these potential benefits are not guaranteed. New Almonty may not realize benefits from the regulatory framework for critical minerals in the United States, the shift of policies in key economies to encourage domestic sourcing of critical raw minerals, or other anticipated benefits of the Domestication. As a result, New Almonty may not experience any competitive advantages or enhanced returns for Stockholders from the Domestication, or may not be able to enhance its strategic positioning and long-term growth prospects. If the Board decides to implement the Domestication, various expenses, including a potential material tax cost to the Company, will be incurred regardless of whether we are able to realize any benefits of the Domestication.

**The proposed Arrangement will result in additional direct and indirect costs whether or not it is completed.**

The Arrangement will result in additional direct costs. We will incur legal fees, accounting fees, filing fees, mailing expenses, printing and other expenses in connection with the Arrangement. The Arrangement may also result in certain indirect costs by diverting the attention of our management and employees from the day-to-day management of the business, which may result in increased administrative costs and expenses.

**The Arrangement may give rise to material Canadian corporate tax.**

For Canadian tax purposes, on the date of the Arrangement we will be deemed to have a year end and to have disposed of all of our property for proceeds equal to the fair market value of that property. We will also be subject to an additional corporate emigration tax imposed on the amount, if any, by which the fair market value of our property, net of certain liabilities, exceeds the paid-up capital of our issued and outstanding Common Shares.

The quantum of tax payable, if any, by the Company upon the Arrangement will depend upon a number of considerations including whether the Company reorganizes and/or winds up one or more of its subsidiaries prior to the Arrangement becoming effective, the valuation of the Company's assets, the amount of its liabilities, its shareholder composition, as well as certain Canadian tax amounts, accounts and balances of the Company, each as of the time of the Arrangement. While Almonty believes that the quantum of any taxes payable will not be material at Almonty's current estimates of fair market value, there can be no assurances that material adverse tax consequences will not result from the Arrangement or the transactions completed in relation to the Arrangement in Canada. In addition, it is possible that following the Arrangement, the Canada Revenue Agency may disagree with the Company's determination of the fair market value of its properties at the relevant time and/or the Company's determination of any of its tax accounts or tax attributes. As a result, the quantum of Canadian tax payable by the Company may materially exceed the Company's estimates. Any such adverse tax consequences could materially adversely affect the Company and its share price. For additional information on the Canadian federal income tax consequences of the Arrangement, see the section entitled "*Certain Canadian Federal Income Tax Considerations Related To The Arrangement*".

It is possible that if the Board is not satisfied with the anticipated Canadian tax consequences of the Arrangement, it may not proceed with the Arrangement.

**If the IRS does not agree with our calculation of the "all earnings and profits amount" attributable to a Shareholder's Common Shares, New Almonty's Stockholders may owe additional income taxes as a result of the Arrangement.**

We are currently in the process of determining our historical earnings and profits and expect to determine our earnings and profits for 2024 and for the portion of 2025 ending with the Effective Date. We will not complete this determination until after completion of the Domestication. The determination of our earnings and profits is a complex determination and may be impacted by numerous factors. Accordingly, there can be no assurance that the United States Internal Revenue Service (the "**IRS**") will agree with our determination of our earnings and profits. If the IRS does not agree with our earnings and profits calculations, our earnings and profits may be greater than reported on the Company's website (as described above). In such case, a U.S. Holder that makes an "all earnings and profits" election or a 10% U.S. Holder could have a positive (or a more positive than anticipated) "all earnings and profits amount" in respect of such U.S. Holder's shares and thereby recognize greater taxable income.

For additional information on the U.S. federal income tax consequences of the Domestication, see the section entitled "*Certain United States Federal Income Tax Considerations Related To The Domestication*".

**THE MEETING**

**Solicitation of Proxies**

**The accompanying proxy is being solicited by or on behalf of the management of the Company and the cost of such solicitation will be borne by the Company**. It is expected that the solicitation of proxies will be primarily by mail, though proxies may also be solicited, without special compensation, in person or by telephone, fax, email, or other means of communication by directors, officers or regular employees of the Company. The Company may pay investment dealers or other persons holding Common Shares in their own names or in the names of nominees (collectively, "**intermediaries**") for their reasonable expenses incurred in sending this Circular and the accompanying Notice of Meeting, and form of proxy or a voting instruction form, to non-registered (i.e. beneficial) owners of Common Shares.

This Circular, together with the accompanying Notice of Meeting and form of proxy or voting instruction form, is being sent to both Registered Shareholders (as hereinafter defined) and Beneficial Shareholders (as hereinafter defined). If you are a Beneficial Shareholder and the Company or its agent has sent these materials directly to you, your name and address and information about your holdings of Common Shares have been obtained in accordance with applicable securities regulatory requirements from the intermediary who holds your Common Shares on your behalf.

**How to Vote Your Common Shares**

*Registered Shareholders*

 

A registered Shareholder ("**Registered Shareholder**") is a Shareholder whose Common Share certificate or direct registration statement bears the name of that Shareholder. Registered Shareholders are entitled to vote their Common Shares in person at the Meeting or by proxy, and such Shareholders may be able to vote their proxies over the Internet, by telephone or by mail in accordance with the instructions set out in the accompanying form of proxy.

If you are a Registered Shareholder and wish to vote in person at the Meeting, you should not complete or return the accompanying form of proxy, as your vote will be taken and counted at the Meeting. Shareholders wishing to vote in person must register their attendance with the scrutineer upon arrival at the Meeting.

If you are a Registered Shareholder and do not wish to attend the Meeting or to vote in person, you may vote by proxy by properly completing, signing and depositing the accompanying form of proxy with the Company's transfer agent, Computershare Investor Services Inc. ("**Computershare**"). Registered Shareholders who elect to submit a proxy may do so online at <u>www.investorvote.com</u>, by telephone at 1- 866-732-VOTE (8683) (for Shareholders within North America) or 1-312-588-4290 (for Shareholders outside North America), or by mail to 100 University Avenue, 8<sup>th</sup> Floor, Toronto, Ontario, M5J 2Y1, in all cases in accordance with the instructions provided by Computershare in the accompanying form of proxy and ensuring that the proxy is received not later than 48 hours prior to the commencement of the Meeting, excluding Saturdays, Sundays and holidays.

*Beneficial Shareholders*

 

If your Common Shares are registered in the name of an intermediary, rather than in your own name, you are a beneficial Shareholder (a "**Beneficial Shareholder**"). Beneficial Shareholders should note that the only proxies that can be recognized and acted upon at the Meeting are those deposited by Registered Shareholders (those whose names appear on the Common Share certificate or direct registration statement) or as set out in the following disclosure.

If Common Shares are listed in an account statement provided to a Shareholder by a broker, then in almost all cases those Common Shares will not be registered in the Shareholder's name on the records of the Company. Such Common Shares will more likely be registered under the names of the Shareholder's broker or an agent of that broker. In Canada, the vast majority of such Common Shares are registered under the name of CDS & Co. (the registration name for The Canadian Depository for Securities Limited, which acts as nominee for many Canadian brokerage firms), and in the United States under the name of Cede & Co. as nominee for The Depository Trust Company (which acts as depositary for many United States brokerage firms and custodian banks).

Intermediaries are required to seek voting instructions from Beneficial Shareholders in advance of shareholders' meetings. Every intermediary has its own mailing procedures and provides its own return instructions to clients.

There are two kinds of Beneficial Shareholders: those who object to their name being made known to the issuers of securities which they own (referred to as "**OBOs**" for objecting beneficial owners) and those who do not object to the issuers of the securities they own knowing who they are (referred to as "**NOBOs**" for non-objecting beneficial owners).

<u>Non-Objecting Beneficial Owners</u>

The Company is taking advantage of those provisions of National Instrument 54-101 – *Communication with Beneficial Owners of Securities of a Reporting Issuer* ("**NI 54-101**") of the Canadian Securities Administrators, which permits the Company to deliver proxy-related materials directly to its NOBOs. As a result, NOBOs can expect to receive a scannable Voting Instruction Form ("**VIF**"). These VIFs are to be completed and returned to the Computershare online at <u>www.investorvote.com</u>, by telephone at 1-866-734- VOTE (8683) (for Shareholders within North America) or 1-312-588-4291 (for Shareholders outside North America), or by mail to 100 University Avenue, 8<sup>th</sup> Floor, Toronto, Ontario, M5J 2Y1, in all cases in accordance with the instructions provided in the VIF. Computershare will tabulate the results of the VIFs received from NOBOs and will provide appropriate instructions at the Meeting with respect to the Common Shares represented by the VIFs it receives.

By choosing to send these materials to you directly, the Company (and not the intermediary holding your Common Shares on your behalf) has assumed responsibility for (i) delivering these materials to you, and (ii) executing your proper voting instructions. Please return your VIF as specified in your request for voting instructions that you receive.

NOBOs who wish to attend and vote in person at the Meeting must insert their own name in the space provided on the VIF to appoint the NOBO (or the name of another person the NOBO wishes to attend the Meeting and vote on the NOBO's behalf) as proxyholder and otherwise follow the instructions on the VIF. Beneficial Shareholders who appoint themselves as proxyholders should present themselves at the Meeting to a representative of Computershare. Beneficial Shareholders wishing to attend and vote in person at the Meeting should not otherwise complete the VIF.

<u>Objecting Beneficial Owners</u>

Management of the Company does not intend to pay for intermediaries to deliver proxy-related materials to OBOs under NI 54-101. OBOs will not receive the proxy-related materials in respect of the Meeting unless the intermediary holding Common Shares on behalf of the OBO assumes the cost of delivery.

Beneficial Shareholders who are OBOs and receive proxy-related materials in respect of the Meeting from their intermediaries should carefully follow the instructions of their broker or intermediary in order to ensure that their Common Shares are voted at the Meeting.

The form of proxy that will be supplied by your broker will be similar to the proxy provided to Registered Shareholders by the Company. However, its purpose is limited to instructing the intermediary how to vote your Common Shares on your behalf. Most brokers delegate responsibility for obtaining instructions from clients to Broadridge Financial Solutions, Inc. ("**Broadridge**"). Broadridge will mail a VIF in lieu of a proxy provided by the Company. The VIF will name the same persons as the Company's proxy to represent your Common Shares at the Meeting. You have the right to appoint a person (who need not be a Beneficial Shareholder) other than any of the persons designated in the VIF to represent your Common Shares at the Meeting and that person may be you. To exercise this right, you should insert the name of your desired representative (which may be yourself) in the blank space provided in the VIF. The completed VIF must then be returned to Broadridge in accordance with Broadridge's instructions. Broadridge then tabulates the results of all instructions received and provides appropriate instructions respecting the voting of Common Shares to be represented at the Meeting and the appointment of any Shareholder's representative. **If you receive a VIF from Broadridge, the VIF must be returned to Broadridge, in accordance with its instructions, well in advance of the Meeting in order to have your Common Shares voted at the Meeting, or to have an alternative representative duly appointed to attend and to vote your Common Shares at the Meeting**.

*Voting by Proxyholder*

 

If voting instructions are given on your form of proxy or request for voting instructions, then your proxyholder must vote, or withhold from voting, your Common Shares in accordance with your instructions, including on any ballot that may be called for. If you specify a choice with respect to any matter to be acted upon, your Common Shares will be voted accordingly. If no voting instructions are given, then your proxyholder may vote your Common Shares or withhold from voting as he, she or it sees fit. **If you appoint the proxyholders named on the accompanying form of proxy, and do not provide instructions as to how they should vote your Common Shares, your Common Shares will be voted <u>FOR</u> the Arrangement Resolution**.

As of the date of this Circular, none of the directors or officers of the Company are aware of any amendments or variations to the matters set out in the Notice of Meeting, nor of any other matter to be presented at the Meeting. However, if any amendment, variation or other business is properly brought before the Meeting, the accompanying form of proxy confers discretion on the persons named thereon to vote on any amendment or variation of the matters set out in the Notice of Meeting or any such other business in accordance with their best judgment.

**Appointment of Proxyholder**

The persons named in the form of proxy accompanying this Circular have been selected by the Board and have indicated their willingness to represent as proxyholders the Shareholders who appoint them. **A Shareholder has the right to appoint as his, her or its proxyholder a person or company (who need not be a Shareholder) other than the persons designated in the accompanying form of proxy to attend and act on that Shareholder's behalf at the Meeting**. As a Shareholder, you may exercise this right by inserting the name of such person or company in the blank space provided in the form of proxy and striking out the other names or by properly completing and signing another proper form of proxy and, in either case, depositing such form of proxy with Computershare at the location and within the time limits set out above.

If you appoint some other person to represent you, it is your responsibility as a Shareholder to inform that other person or company that he, she or it has been so appointed and to ensure that your proxy has been signed by you or your attorney authorized in writing (or, if the Shareholder is a corporation, under its corporate seal and signed by a director, officer or attorney thereof, duly authorized).

**Revocation of Proxies**

If you are a Registered Shareholder and you have submitted a proxy and later wish to revoke it, you can do so by:

&nbsp;&nbsp;&nbsp;&nbsp;(a) completing
 and signing a form of proxy bearing a later date and depositing it with Computershare at
 the location and within the time limits set out above;

&nbsp;&nbsp;&nbsp;&nbsp;(b) depositing
 an instrument in writing signed by you or your attorney authorized in writing (or, for Shareholders
 that are corporations, under such Shareholder's corporate seal and signed by a director,
 officer or attorney thereof, duly authorized), with either: (i) Computershare, at the address
 noted above, or at the registered office of the Company at any time up to and including the
 last business day preceding the day of the Meeting at which the proxy is to be used, or (ii)
 the chairman of the Meeting prior to the commencement of the Meeting on the day of the Meeting;
 or

&nbsp;&nbsp;&nbsp;&nbsp;(c) following
 any other manner permitted by law.

Any Registered Shareholder attending the Meeting has the right to vote in person and, if you, as a Registered Shareholder, elect to do so, your proxy will be nullified with respect to any matters upon which you vote, and in respect of any subsequent matters to be voted upon at the Meeting.

Beneficial Shareholders should note that **only Registered Shareholders have the right to revoke a proxy. Beneficial Shareholders who wish to change their vote must make appropriate arrangements with their respective intermediaries.** Beneficial Shareholders should also be aware that intermediaries may set deadlines earlier than those set out in this Circular or otherwise for the receipt of requests for voting instructions or proxies from Beneficial Shareholders, and are not required to act on any revocation that is not received by the intermediary prior to the deadlines set by that intermediary. As such, Beneficial Shareholders who wish to revoke their VIF or proxy and to vote should contact their intermediary as soon as possible, and in any event well in advance of the Meeting.

**Special Voting Instructions for CDI Holders**

CDIs represent an uncertificated unit of beneficial ownership in the Common Shares. Holders of CDIs are not the legal owners of the underlying Common Shares, which are held for and on behalf of CDI holders by CHESS Depositary Nominees Pty Ltd. ("**CDN**"), a wholly owned subsidiary of ASX Limited. Holders of CDIs may attend the Meeting; however, they are unable to vote in person at the Meeting. As CDIs are technically rights to Common Shares held by CDN on behalf of CDI holders, CDI holders need to provide confirmation of their voting instructions to CDN before the Meeting. CDN will then exercise the votes on behalf of the CDI holders.

CDI holders will receive a CDI voting instruction form ("**CDI VIF**") together with this Circular from Computershare Investor Services Pty Limited ("**Computershare Australia**"), the Company's CDI registry in Australia. In order to have votes cast at the Meeting on their behalf, CDI holders must complete, sign and return the CDI VIF in accordance with the instructions contained therein.

CDN is required to follow the voting instructions properly received from registered holders of CDIs. If a CDI holder holds its interest in CDIs through a broker, dealer or other intermediary, it will need to follow the instructions of its intermediary.

Completed CDI VIFs must be returned no later than 9:00 a.m. (Australian Western Standard time) on February 24, 2025 or four full business days before any adjourned or postponed Meeting, in accordance with the instructions contained in the CDI VIF. The CDI submission deadline is two business days prior to the deadline for submitting proxies so that CDN has sufficient time to vote the Common Shares underlying the applicable CDIs. CDI holders that wish to change their vote must contact Computershare Australia to arrange to change their vote, no later than the deadline for submission of a CDI VIF. If you hold your interest in CDIs through a broker, dealer or other intermediary, you must in sufficient time in advance of the Meeting arrange for your broker, dealer or other intermediary to change its vote through Computershare Australia.

**Notice to Shareholders in the United States**

This solicitation of proxies involves securities of an issuer located in Canada and is being effected in accordance with the corporate laws of Canada and the securities laws of the provinces of Canada. The proxy solicitation rules under the United States Securities Exchange Act of 1934, as amended (the "**Exchange Act**"), are not applicable to the Company or this solicitation, and this solicitation has been prepared in accordance with the disclosure requirements of the securities laws of the provinces of Canada. Shareholders should be aware that disclosure requirements under the securities laws of the provinces of Canada differ from the disclosure requirements under United States securities laws.

The enforcement by Shareholders of civil liabilities under United States federal securities laws may be affected adversely by the fact that the Company is governed by the CBCA, certain of its directors and officers are residents of Canada and countries other than the United States, and all of the assets of the Company and a substantial portion of the assets of such persons are located outside the United States. Shareholders may not be able to sue a foreign company or its officers or directors in a foreign court for violations of United States federal securities laws. It may be difficult to compel a foreign company and its officers and directors to subject themselves to a judgment by a United States court.

**Quorum**

The quorum necessary for the Meeting is the holders of 25% of the Common Shares entitled to vote at the Meeting are present in person or represented by proxy, provided that a quorum shall not be less than two persons. A quorum need not be present throughout the Meeting provided that a quorum is present at the opening of the Meeting.

**Record Date**

The Board has fixed January 28, 2025 as the record date (the "**Record Date**") for determining those Shareholders entitled to receive notice of, and vote at, the Meeting. Only Shareholders of record at the close of business on the Record Date who either attend the Meeting personally or complete, sign and deliver a form of proxy in the manner and subject to the provisions described above will be entitled to vote or to have their Common Shares voted at the Meeting.

**VOTING SECURITIES AND PRINCIPAL HOLDERS THEREOF**

The Company is authorized to issue an unlimited number of Common Shares. As of the close of business on January 28, 2025, there were 273,020,823 Common Shares issued and outstanding. Each Common Share carries the right to one vote. The Common Shares are the only class of securities entitled to vote at the Meeting. There are no cumulative or similar voting rights attached to the Common Shares. As of the date hereof, the Common Shares are listed for trading on the TSX and the ASX (in the form of CDIs), both under the symbol "AII".

To the knowledge of the directors and officers of the Company, the only persons or companies that beneficially owned, directly or indirectly, or exercised control or direction over, securities carrying more than 10% of the voting rights attached to any class of voting securities of the Company as at January 28, 2025 are:

---

| | | | |
|:---|:---|:---|:---|
| **Name of Shareholder** | **Type of <br> Ownership** | **Number of Common<br> Shares Controlled** | **Percentage of<br> Issued Common<br> Shares <sup>(3)</sup>** |
| Global Tungsten & Powders Corp. <sup>(1)</sup> | Direct | 38149556 | 13.97% |
| Deutsche Rohstoff AG <sup>(2)</sup> | Direct | 30886426 | 11.31% |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Global
 Tungsten & Powders Corp. develops, manufactures and markets refractory metal powders
 and specialty products such as semi-finished parts for the aerospace and defense industry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Deutsche
 Rohstoff AG is a public company listed on the Frankfurt Stock Exchange which identifies,
 develops and divests attractive resource projects in North America, Australia and Europe.
 Thomas Gutschlag, a director of the Company, is the former Chief Executive Officer of Deutsche
 Rohstoff AG.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Based
 on 273,020,823 Common Shares outstanding as of the Record Date.

**BUSINESS OF THE MEETING: APPROVAL OF THE ARRANGEMENT**

**General**

The Company currently exists under the federal laws of Canada pursuant to the CBCA. Pursuant to the Plan of Arrangement under the CBCA (the full text of which is appended hereto as Exhibit B), the Board proposes to change our jurisdiction of incorporation from the federal jurisdiction of Canada to the State of Delaware. We will become subject to the DGCL on the date of the Domestication, but will be deemed for the purposes of the DGCL to have commenced our existence in Delaware on the date we originally commenced our existence in Canada. Under the DGCL, a corporation may become domesticated in Delaware by filing a certificate of conversion and a certificate of incorporation for the corporation being domesticated.

Throughout this "*Business of the Meeting: Approval of the Arrangement*" section, for greater certainty, the term "Company" refers to Almonty Industries Inc., being the Company as it exists prior to the completion of the Arrangement, and "New Almonty" refers specifically to Almonty Industries Inc., being the continued company following the Arrangement. The term "Shareholders" includes holders of Common Shares, and the term "Stockholders" includes holders of New Almonty Shares.

At the Meeting, and in accordance with the interim order of the Ontario Superior Court of Justice (Commercial List) (the "**Court**") dated January 31, 2025, granted in respect of the Plan of Arrangement (the full text of which is appended hereto as Exhibit C, the "**Interim Order**"), the Company will seek approval of the Arrangement Resolution as a special resolution of the Shareholders. If the Shareholders approve the Arrangement Resolution, this will mean that the Shareholders approve and authorize the Board, subject to receipt of the final order of the Court approving the Arrangement (the "**Final Order**"), to effect the Arrangement pursuant to the Plan of Arrangement by, among other things, applying for the continuance out of Canada pursuant to the CBCA and the domestication in Delaware pursuant to the DGCL, and all transactions contemplated thereby, including, without limitation, approving the Certificate of Conversion, Certificate of Incorporation and By-Laws of New Almonty to be effective on the date of the Domestication, which documents would replace the Company's current articles of continuance and by-laws. Forms of the proposed Certificate of Conversion, Certificate of Incorporation and By-Laws of New Almonty are attached as Exhibit E, Exhibit F and Exhibit G, respectively.

The Domestication will not create a new legal entity, nor will it affect the continuity of the Company or interrupt our operations or the trading markets of our Common Shares. Each outstanding Common Share at the time of the Domestication will become and remain a New Almonty Share after our corporate existence is continued from Canada under the CBCA and domesticated in Delaware under the DGCL. The New Almonty Shares will continue to be listed on the TSX under the symbol "All" and will be listed on the ASX (in the form of CDIs) under a symbol that remains to be determined and will be announced at a later date. In connection with the Domestication, the Company may also reorganize and/or wind up one or more of its subsidiaries.

The Board has unanimously approved the Arrangement and the related Certificate of Incorporation and By- Laws of New Almonty, believes the Arrangement to be in the Company's best interests and best interests of the Shareholders participating in the Arrangement, and unanimously recommends that Shareholders vote **<u>FOR</u>** the Arrangement Resolution. The Arrangement Resolution permits the Board not to proceed with the Arrangement at any time prior to the Arrangement becoming effective pursuant to the CBCA (the "**Effective Time**"), and, if it is approved by Shareholders at the Meeting, the Board may revoke the Arrangement Resolution without further approval of the Shareholders.

The Domestication will be effective on the date set forth in the Certificate of Conversion and the Certificate of Incorporation, as filed with the office of the Secretary of State of the State of Delaware. Thereafter, we will be subject to the Certificate of Incorporation filed in Delaware. We will be discontinued in Canada as of the date shown on the Certificate of Arrangement issued by the CBCA Director, which we expect to be the date of domestication in Delaware.

**Principal Reasons for the Domestication**

The Domestication reflects the growing importance of the United States in our strategic positioning. With its robust regulatory framework for critical minerals like tungsten and molybdenum and the evolving global economic landscape, the United States represents a compelling jurisdiction for our incorporation. The Domestication will also align the Company's corporate structure with the location of a significant portion of our Shareholder base.

We have observed ongoing global geopolitical tensions, including export restrictions in China, import duties by the United States and restrictions on tungsten from China, Russia, Iran and North Korea by the US Department of Defense. In light of those evolving tensions and policies in key economies shifting to encourage domestic sourcing of critical raw materials, the Board and management carefully evaluated various scenarios and concluded that the Domestication is the most strategic course of action. This decision was motivated by several key factors:

● Starting January 1, 2027, the United States Department of Defense will implement a final rule under Section 844 of the FY 2021 National Defense Authorization Act and Section 854 of the FY 2024 National Defense Authorization Act. This rule expands existing restrictions on sourcing critical materials like tungsten, tantalum, and certain magnets from "covered countries," including Iran, Russia, North Korea and China. These restrictions will prohibit not only the melting and production of such materials in covered countries but also their mining, refining, and separation at any stage of the supply chain. This marks a significant shift, aligning with US efforts to bolster the domestic industrial base for critical minerals and reduce dependency on adversarial nations. The rule also tightens exemptions for commercially available off-the-shelf items, reducing flexibility for the private sector in sourcing these critical materials.

● The United States announced in mid-September 2024 the finalized Section 301 tariff increases on imports from China, further complicating the supply chain landscape for critical materials.

● Since December 2024, China has imposed restrictions on 'dual-use' technologies for civilian and military purposes, specifically targeting the United States and including tungsten, gallium, germanium, and antimony. These restrictions have significantly disrupted global supply chains, amplifying the urgency for Western nations to secure independent sources of critical minerals. China's dominance in critical mineral production, bolstered by subsidies and control over key raw materials from Africa and Latin America, continues to pose challenges for nations reliant on these essential resources for advanced technologies, including semiconductors, defense applications, and clean energy solutions. The latest Chinese export bans extend to super-hard materials, including tungsten, which is indispensable for weapons manufacturing, cutting tools, and aerospace technologies.

● Sangdong Mine is uniquely positioned to address these supply chain challenges. 45% of Sangdong's potential long-term tungsten output is already committed to the United States through a long-term supply agreement with Global Tungsten & Powders who are based in Pennsylvania. The Company's development of Sangdong represents a significant step toward reducing reliance on China while contributing to the global effort of "friendshoring" critical minerals.

The State of Delaware in particular was chosen as our new domicile because the DGCL expressly accommodates continuances under Section 192 of the CBCA and is recognized for its comprehensive body of corporate law. Supported by decades of case law in Delaware courts, the DGCL provides well-defined guidance on the duties and obligations of directors and officers, offering legal clarity that is expected to benefit both the Company and its Shareholders.

**Recommendation of the Board**

The Board has considered the Arrangement, has concluded that the Arrangement is in the best interests of the Company and its Shareholders that participate in the Arrangement and, as such, has authorized submission of the Arrangement Resolution to the Shareholders for approval, and following such approval, the Company will seek the Final Order from the Court.

In coming to its conclusion and recommendations, the Board considered, among others, the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;1. the
 rationale for the Arrangement as outlined herein, including the reasons included in the section
 entitled "*Business of the Meeting: Approval of the Arrangement – Principal Reasons for the Domestication* "; and

&nbsp;&nbsp;&nbsp;&nbsp;2. the
 Shareholders that oppose the Arrangement (if any) may, subject to compliance with certain
 conditions, dissent with respect to the Arrangement Resolution and be entitled to be paid
 the fair value for the Common Shares in accordance with Section 190 of the CBCA, as modified
 by the Plan of Arrangement and the Interim Order.

**The Board recommends that the Shareholders vote <u>FOR</u> the Arrangement Resolution.**

**Effects of the Domestication**

There are material differences between Canadian corporate law and Delaware corporate law with respect to shareholder rights, and Delaware law may offer shareholders more or less protection depending on the particular matter. A detailed overview of the material differences is set forth below.

*Applicable Law*

 

As of the effective date of the Domestication, our legal jurisdiction of incorporation will be Delaware, and we will no longer be subject to the provisions of the CBCA. All matters of corporate law will be determined under the DGCL. We will retain our original incorporation date in Canada as our date of incorporation for purposes of the DGCL.

*Business and Operations*

 

The Domestication, if approved, will effect a change in the legal jurisdiction of incorporation as of the effective date of the Domestication, but our business and operations will remain the same.

*Assets, Liabilities, Obligations, Etc*.

Under Delaware law, as of the effective date of the Domestication, all of the assets, property, rights, liabilities and obligations of the Company immediately prior to the Domestication will continue to be the assets, property, rights, liabilities and obligations of New Almonty. Canadian corporate law will cease to apply to us on the date shown on the Certificate of Arrangement to be issued by the CBCA Director, which we expect to be the effective date of the Domestication. We will be thereafter become subject to the obligations imposed under Delaware corporate law.

*Officers and Directors*

 

Upon the Domestication becoming effective, the directors and officers of the Company will remain unchanged; however, the election, duties, filling of vacancies, resignations and removal of New Almonty's directors and officers will be governed by the DGCL, the Certificate of Incorporation and the By-Laws of New Almonty.

*Reporting Issuer*

 

The Arrangement will not affect the Company's status as a reporting issuer under the securities legislation of any jurisdiction in Canada, and New Almonty will remain subject to the requirements of such legislation. Upon completion of the Arrangement, we expect that the post-Arrangement New Almonty Shares will be listed on the TSX under the symbol "All" and on the ASX (in the form of CDIs) under a symbol that remains to be determined and will be announced at a later date.

 

*Outstanding Shares*

 

The number of Common Shares a Shareholder owns (or has rights to acquire) and the percentage ownership such Shareholder has of the Company will not change as a result of the Arrangement. Pursuant to the Plan of Arrangement, at the Effective Time, each Common Share will be converted into a New Almonty Share.

The existing share certificates or DRS advices representing Common Shares will continue to represent the same number of New Almonty Shares after the Domestication without any action on your part. You will not be required to exchange any share certificates. We will only issue new certificates to you representing New Almonty Shares upon a transfer of your shares or at your request. All non-dissenting Shareholders will be treated exactly the same under the Arrangement with respect to the number of Common Shares a Shareholder owns (or has rights to acquire). Following the completion of the Arrangement, each Shareholder will have the same ownership interest in New Almonty that the Shareholder had in the Company prior to the Arrangement. As of the Effective Time, holders of convertible securities of the Company, including any options, will continue to hold convertible securities to purchase New Almonty Shares on substantially the same terms.

If made, the Final Order will constitute the basis for an exemption from registration, under Section 3(a)(10) of the U.S. Securities Act of 1933, as amended (the "**U.S. Securities Act**"), and applicable exemptions under state securities laws, with respect to the Arrangement.

The Plan of Arrangement is attached as Exhibit B to this Circular. Readers are encouraged to carefully review the Plan of Arrangement, as it contains the specific terms and conditions governing the Arrangement.

*Share Capital*

 

Following the completion of the Arrangement, certain rights of Shareholders would be governed by the Certificate of Incorporation and By-Laws of New Almonty and the DGCL. The following is an overview of the attributes of the New Almonty Shares and is subject to the Certificate of Incorporation and By-Laws of New Almonty and the DGCL. The Board believes that these attributes are, in most material respects, similar to the attributes of the Common Shares that the Shareholders currently enjoy under the CBCA. Though the Company has intended to describe and compare all material attributes, there can be no assurance that the Company has been able to identify all material attributes nor that any or all Shareholders would agree that the Company has properly identified attributes as material. The Company recommends that Shareholders review the attributes with their advisors.

The proposed Certificate of Incorporation and By-Laws of New Almonty provide for New Almonty to be registered with an authorized share capital comprising 750,000,000 shares of capital stock, consisting of 500,000,000 New Almonty Shares, $0.00001 par value per share, and 250,000,000 shares of preferred stock ("**Preferred Shares**"), $0.00001 par value per share. Upon the completion of the Arrangement, there would be transferred to the share capital account of the New Almonty Shares the whole of the capital paid- up on the Common Shares.

**Regulatory and Other Approvals**

In addition to the approval of the Shareholders and the issuance of the Final Order, the Arrangement is subject to the receipt of appropriate consents, approvals, and/or waivers from relevant regulatory authorities and third parties, including the CBCA Director, the TSX and the ASX.

The CBCA Director is empowered to authorize the change of jurisdiction if, among other things, the CBCA Director is satisfied that the change of jurisdiction will not adversely affect our creditors or Shareholders.

The completion of the Arrangement is also subject to the acceptance of the TSX (subject to customary conditions), including approval of the final Certificate of Conversion, Certificate of Incorporation and proposed by-laws of New Almonty. Following the completion of the Arrangement, the New Almonty Shares will be listed on the TSX.

The ASX has previously granted a number of waivers to the Company to provide relief from certain Listing Rules and policies of the ASX. As the Arrangement includes, among other things, a change to our governing law and our constating documents, the Company intends to apply for new and/or amended waivers to facilitate the Arrangement and provide relief from certain Listing Rules and policies of the ASX that may apply once the Company becomes a Delaware corporation. Following the completion of the Arrangement, the New Almonty Shares will be traded on the ASX.

There is no certainty that all conditions precedent to the completion of the Arrangement will be satisfied or waived, or as to the timing of their satisfaction or waiver. In particular, the completion of the Arrangement is subject to the satisfaction or waiver of these Key Regulatory Approvals. If the Company cannot obtain the Key Regulatory Approvals to the satisfaction of the Board, the Arrangement will not occur. In addition, any delay in fulfilling these conditions may also delay the completion of the Arrangement.

Subject to receipt of the Key Regulatory Approvals, we anticipate that we will file the Certificate of Conversion and Certificate of Incorporation with the Secretary of State of the State of Delaware pursuant to the DGCL promptly following the Meeting, and that we will be domesticated in Delaware on the effective date of such filings. We will be discontinued in Canada as of the date shown on the Certificate of Arrangement issued by the CBCA Director, which we expect to be the date of domestication in Delaware.

**Comparison of Shareholder Rights**

The principal attributes of our capital stock before and after the Domestication are expected to be comparable; however, there will be certain material differences between the rights of our Shareholders under the CBCA and the rights of our Stockholders under Delaware law. Attached as Exhibit H is a summary of certain material differences between Canadian corporate law and Delaware corporate law that could materially affect the rights of Shareholders. This summary is not, however, intended to be complete, is qualified in its entirely by reference to the CBCA, the DGCL, and the governing corporate instruments of the Company and New Almonty and should not be considered as legal advice to any particular Shareholder. A Shareholder who has any questions about such matters should consult with the Shareholder's own advisors.

**Procedure for the Arrangement to Become Effective**

*Procedural Steps*

 

The Arrangement is proposed to be carried out pursuant to section 192 of the CBCA on the terms and conditions set forth in the Plan of Arrangement. The following procedural steps must be taken in order for the Arrangement to become effective:

&nbsp;&nbsp;&nbsp;&nbsp;1. the
 Arrangement Resolution must be approved by the Shareholders in the manner set forth in the
 Interim Order;

2. the
 Court must grant the Final Order approving the Arrangement;

3. all
 conditions to the completion of the Arrangement, including receipt of all required regulatory
 approvals (including the Key Regulatory Approvals), must be satisfied; and

4. following
 granting of the Final Order, the Company must file articles of arrangement in the form prescribed
 by the CBCA (the "**Articles of Arrangement**") with the CBCA Director and
 concurrently file the Certificate of Conversion and the Certificate of Incorporation with
 the Secretary of State of the State of Delaware.

*Shareholder Approval*

 

The Arrangement is subject to various conditions, including approval of the Arrangement Resolution by our Shareholders at the Meeting. The Arrangement Resolution is attached to this Circular as Exhibit A.

Pursuant to the CBCA and the terms of the Interim Order, the Arrangement Resolution requires affirmative votes, whether in person or by proxy, of at least two-thirds of the votes cast by Shareholders at the Meeting, where a quorum of at least two Shareholders, collectively holding not less than 25% of the Common Shares, is present in person or by proxy at the start of the Meeting. Notwithstanding the foregoing, the Arrangement Resolution authorizes the Board, without further notice to or approval of the Shareholders, to decide not to proceed with the Arrangement and to revoke the Arrangement Resolution for any reason at any time prior to the Arrangement becoming effective.

*Court Approval*

 

On January 31, 2025, the Company obtained the Interim Order providing for the calling and holding of the Meeting and other procedural matters. The Interim Order is attached as Exhibit C to this Circular, and the Notice of Application in respect of the Interim Order and Final Order is attached as Exhibit D to this Circular. Subject to the Board's discretion not to proceed, if the Arrangement Resolution is approved at the Meeting in the manner required by the Interim Order, the Company will make application to the Court for approval of the Arrangement and the Final Order. The hearing in respect of the Final Order is scheduled to take place by videoconference on March 4, 2025 at 11:00 a.m. (Toronto time) or as soon thereafter as counsel may be heard.

At the hearing in respect of the Final Order, any Shareholder and any other interested party who wishes to appear may do so, subject to filing with the Court and serving upon the Company, no fewer than five (5) business days before the hearing for the Final Order, a notice of intention to appear indicating whether such Shareholder or other interested party intends to support or oppose the application or make submissions thereat, together with a summary of the position such Shareholder or other interested party intends to advocate before the Court and any evidence or materials which such party intends to present to the Court. Service of such notice will be effected by service upon the solicitors for the Company: Norton Rose Fulbright Canada LLP, located at 222 Bay Street, Suite 3000, P.O. Box 53, Toronto, Ontario, M5K 1E7, Attention: Andrew McCoomb, <u>andrew.mccoomb@nortonrosefulbright.com</u>.

The Court may approve the Arrangement in any manner the Court may direct, subject to compliance with any terms and conditions, if any, as the Court deems fit. The Company may determine not to proceed with the Arrangement in the event that any amendment ordered by the Court is not satisfactory to it. In the event that the hearing is postponed, adjourned or rescheduled, then subject to further order of the Court only those persons having previously served a notice of intention to appear in compliance with the Interim Order will be given notice of the postponement, adjournment or rescheduled date.

*Securities Laws Matters*

 

<u>Canada</u>

Any restrictions on the resale of securities of the Company applicable under Canadian securities laws before the Arrangement will continue to apply after completion of the Arrangement.

<u>United States</u>

The Arrangement has not been and will not be registered under the U.S. Securities Act, but will be made in reliance upon an exemption from the registration requirements of the U.S. Securities Act provided by Section 3(a)(10) of the U.S. Securities Act and applicable exemptions under state securities laws. The Company will advise the Court in advance that its approval of the Arrangement will be relied upon by the Company as a court approval of the Arrangement for the purpose of qualifying for the exemption from the registration requirements of the U.S. Securities Act. In connection with the Arrangement, each Common Share outstanding immediately prior to the Arrangement shall become one New Almonty Share. These New Almonty Shares will not be "restricted securities" within the meaning of Rule 144(a)(3) promulgated under the U.S. Securities Act, and, therefore, the holding period condition of Rule 144(d) will not be affected by the Arrangement. As a result, after the Arrangement under U.S. federal securities laws, holders of New Almonty Shares who are not Affiliates of New Almonty and holders who have not been Affiliates of New Almonty within ninety (90) days prior to the completion of the Arrangement may resell their New Almonty Shares to the same extent they were entitled to resell their Common Shares prior to the Arrangement.

For U.S. purposes, "Affiliates" are generally defined as persons who control, are controlled by or are under common control with the Company and will generally include the directors, executive officers and certain large shareholders of the Company, including persons, firms or corporations that beneficially own, or exercise control or direction, directly or indirectly, over more than 10% of the voting rights attached to the Common Shares. Affiliates of the Company and persons who have been Affiliates of the Company within ninety (90) days prior to the completion of the Arrangement who will hold New Almonty Shares as a result of the Arrangement may not publicly resell them without registration under the U.S. Securities Act, except pursuant to the provisions of Rule 144 or another exemption from registration under the applicable securities laws. Any options, warrants or other convertible securities offered (within the meaning of applicable U.S. securities laws) pursuant to the Arrangement will also be exempt from registration pursuant to Section 3(a)(10) and applicable exemptions under state securities laws, but the later exercise or conversion of such options, warrants or other convertible securities will not be exempt under Section 3(a)(10) and applicable exemptions under state securities laws and, absent subsequent registration of their disposition or the existence of an applicable exemption, will be "restricted securities."

**The foregoing discussion of Canadian and U.S. securities laws and their application to issuances and transfers of the New Almonty Shares is necessarily general and accordingly is not intended and should not be relied upon as legal advice. Therefore, Shareholders should consult with their legal advisors regarding applicable resale restrictions relating to the New Almonty Shares.**

*Timing*

 

If the Meeting is held as scheduled and not adjourned, and the Arrangement Resolution is approved by the Shareholders as required by the Interim Order, the Company will apply to the Court for the Final Order.

The Arrangement Resolution approving the Domestication authorizes the Board, if thought appropriate, to revoke the Arrangement Resolution and abandon the Domestication process without further approval of the Shareholders and, as such, there is no guarantee that the Domestication will be effected.

If the Final Order, in form and substance satisfactory to the Company, as well as the other required approvals are obtained, the Board proposes to commence the Domestication process as soon as possible thereafter, subject to any intervening events or the Board becoming aware of any other circumstances which would render it not to go forward with the Domestication.

The Arrangement will become effective following the filing with the CBCA Director of the Articles of Arrangement, together with such other materials as may be required by the CBCA Director, and the issuance by the CBCA Director of the Certificate of Arrangement.

*Share Certificates Following the Arrangement*

 

Upon completion of the Arrangement, the Shareholders (other than Dissenting Shareholders, as defined herein) will hold the New Almonty Shares as of the effective date of the Arrangement (the "**Effective Date**") without further act or formality. The existing share certificates representing Common Shares will not be cancelled but will represent New Almonty Shares as of the Effective Time. Shareholders may, but are not required to, surrender their Common Share certificates to Computershare if they wish to receive new certificates representing New Almonty Shares. Registered Shareholders who wish to surrender their Common Share certificates to Computershare and to receive new certificates representing New Almonty Shares should contact Computershare by email at <u>service@computershare.com</u>.

Should a Registered Shareholder who surrenders a Common Share certificate to Computershare wish to register the certificate representing a New Almonty Share in a different name than that which is shown on such surrendered Common Share certificate, such Common Share certificate must be endorsed or be accompanied by an appropriate securities transfer power of attorney duly and properly completed by the Registered Shareholder, with the signature on the endorsement panel, or securities transfer power of attorney medallion guaranteed by an Eligible Institution. An "Eligible Institution" means a Canadian schedule 1 chartered bank, a major trust company in Canada, a member of the Securities Transfer Agent Medallion Program (STAMP), a member of the Stock Exchanges Medallion Program (SEMP), or a member of the New York Stock Exchange Inc. Medallion Signature Program (MSP). Members of these programs are usually members of a recognized stock exchange in Canada and/or the United States, members of the Canadian Investment Regulatory Organization (CIRO), members of the National Association of Securities Dealers or banks and trust companies in the United States.

**Proposed Certificate of Incorporation and By-Laws of New Almonty**

We have included provisions in the proposed Certificate of Incorporation and By-Laws of New Almonty that do not simply reflect the default provisions of Delaware law, some of which include:

● the election of directors of New Almonty need not be by written ballot (unless New Almonty's board of directors votes to require a written ballot);

● the requirement and process by which the Stockholders provide prior notice to nominate directors;

● the limitations on the personal liability of a director or officer to New Almonty or its Stockholders for monetary damages for breach of fiduciary duty as a director or officer except as prohibited by Delaware law; and

● the prohibitions on the ability of Stockholders to call a special meeting of Stockholders.

**Dissent Rights of Shareholders**

The Interim Order provides that Registered Shareholders may exercise dissent rights (Shareholders exercising such rights being "**Dissenting Shareholders**") with respect to their Common Shares in connection with the Arrangement, pursuant to and in the manner set forth in Section 190 of the CBCA as modified by the Interim Order and the Plan of Arrangement. Subject to the Arrangement becoming effective, a Dissenting Shareholder who validly exercises dissent rights in respect of his, her or its Common Shares and who has not withdrawn, or been deemed to have withdrawn, such exercise of dissent rights is entitled to be paid the fair value of such Common Shares in accordance with Section 190 of the CBCA, as modified by the Interim Order and the Plan of Arrangement.

The following is a summary of a Registered Shareholder's dissent rights in respect of the Arrangement Resolution. Such summary is not a comprehensive statement of the procedures to be followed by a Registered Shareholder who wishes to exercise dissent rights, and is qualified in its entirety by reference to the full text of Section 190 of the CBCA (which is attached to this Circular as Exhibit I), as modified and supplemented by the Plan of Arrangement (which is attached to this Circular as Exhibit B) and the Interim Order (which is attached to this Circular as Exhibit C). The Court hearing the application for the Final Order has the discretion to alter the dissent rights described herein based on the evidence presented at such hearing.

The following summary does not purport to constitute a comprehensive summary of the procedures to be followed by a Dissenting Shareholder seeking to exercise dissent rights. The statutory provisions covering the right to dissent are technical and complex. A Registered Shareholder who wishes to exercise dissent rights should seek independent legal advice, as failure to strictly comply with the provisions of Section 190 of the CBCA, as modified and supplemented by the Plan of Arrangement and the Interim Order, may result in the loss of all dissent rights.

A Registered Shareholder may dissent only with respect to all of the Common Shares held by such Shareholder, or on behalf of any one beneficial holder in respect of all the Common Shares owned by such beneficial holder, and which are registered in the Dissenting Shareholder's name.

Dissent rights may only be exercised by Registered Shareholders. Accordingly, a non-registered Shareholder who wishes to dissent with respect to his, her or its Common Shares will need to make arrangements for such Common Shares to be registered in such holder's name prior to the time the written objection to the Arrangement Resolution is required or, alternatively, make arrangements for the registered holder of such Common Shares to dissent on such holder's behalf.

Voting against the Arrangement Resolution or abstaining from voting on the Arrangement Resolution does not satisfy the objection requirements under Section 190 of the CBCA. To exercise the right of dissent, a Dissenting Shareholder must deliver to the Company a written objection to the Arrangement Resolution, which must strictly comply with the requirements of Section 190 of the CBCA, as modified and supplemented by the Plan of Arrangement and the Interim Order, which written objection must be received by the Company by not later than 5:00 p.m. (Vancouver time) on the business day that is two (2) business days immediately preceding the Meeting (or any adjournment or postponement thereof), and such Dissenting Shareholder must otherwise comply with Section 190 of the CBCA, as modified and supplemented by the Plan of Arrangement and the Interim Order.

*Section 190 of the CBCA*

 

Section 190 of the CBCA, as modified by the Plan of Arrangement and the Interim Order, provides that Registered Shareholders may exercise a right of dissent and require the Company to purchase the Common Shares held by such Shareholders at the fair value of such Common Shares. At the Effective Time, a Registered Shareholder that has validly exercised dissent rights will cease to have any rights as a holder of Common Shares other than the right to be paid the fair value of such Shareholder's Common Shares. Fair value is determined as of the close of business on the last business day before the Arrangement Resolution is approved by Shareholders.

The exercise of dissent rights does not deprive a Registered Shareholder of the right to vote at the Meeting. However, a Shareholder is not entitled to exercise dissent rights in respect of the Arrangement Resolution if such Shareholder votes any of the Common Shares beneficially held by such holder in favour of the Arrangement Resolution.

Within 10 days after the Arrangement Resolution is approved by the Shareholders, the Company must send to each Dissenting Shareholder a notice that the Arrangement Resolution has been adopted, setting out the rights of the Dissenting Shareholder and the procedures to be followed on exercise of those rights.

Within 20 days after receiving the above notice from us, or if you do not receive such notice, within 20 days after learning that the Arrangement Resolution has been approved, you must send us a payment demand containing:

● your
 name and address;

● the
 number of Common Shares in respect of which you dissent; and

● a
 demand for payment of the fair value of your Common Shares.

Within 30 days after sending a payment demand, you must send to us directly, or to our transfer agent, the certificates representing your Common Shares. If you fail to send us a dissent notice, a payment demand or your share certificates within the appropriate time frame, you forfeit your right to dissent and your right to be paid the fair value of your Common Shares. The Company or its transfer agent will endorse on your share certificates a notice that you are a Dissenting Shareholder and will return the share certificates to you.

If the Arrangement becomes effective, then the Company will be required to send, not later than the seventh day after the later of (i) the Effective Date, and (ii) the day the demand for payment is received, to each Dissenting Shareholder whose demand for payment has been received, a written offer to pay for the Common Shares of such Dissenting Shareholder in such amount as the Board considers to be the fair value thereof, accompanied by a statement showing how the fair value was determined, unless there are reasonable grounds for believing that the Company is, or after the payment would be, unable to pay its liabilities as they become due or the realizable value of the Company's assets would thereby be less than the aggregate of its liabilities. We must pay you for your Common Shares within ten days after you accept our offer. Any such offer lapses if we do not receive your acceptance within 30 days after the offer to pay has been made to you.

If we fail to make an offer to pay for your Common Shares, or if you fail to accept the offer within the specified period, we may, within 50 days after the Effective Date, apply to the Court to fix a fair value for your Common Shares. There is no obligation for the Company to apply to the Court, and if the Company fails to make such an application, a Dissenting Shareholder has the right to so apply within a further period of 20 days.

All Dissenting Shareholders whose Common Shares have not been purchased will be joined as parties and bound by the decision of the Court. We are required to notify each affected Dissenting Shareholder of the date, place and consequences of the application and of its right to appear and be heard in person or by counsel. The Court may determine whether any person who is a Dissenting Shareholder should be joined as a party. The Court will then fix a fair value for the Common Shares of all Dissenting Shareholders who have not accepted a payment offer from us. The final order of the Court will be rendered against us for the amount of the fair value of the Common Shares of all Dissenting Shareholders. The Court may, in its discretion, allow a reasonable rate of interest on the amount payable to each Dissenting Shareholder and appoint an appraiser to assist in the determination of a fair value for the Common Shares.

**THIS IS ONLY A SUMMARY OF THE DISSENTING SHAREHOLDER PROVISIONS OF THE CBCA. THEY ARE TECHNICAL AND COMPLEX. IT IS SUGGESTED THAT IF YOU WANT TO AVAIL YOURSELF OF YOUR RIGHTS THAT YOU SEEK YOUR OWN LEGAL ADVICE. FAILURE TO COMPLY STRICTLY WITH THE PROVISIONS OF THE CBCA, AS MODIFIED BY THE PLAN OF ARRANGEMENT AND THE INTERIM ORDER, MAY PREJUDICE YOUR RIGHT OF DISSENT. SECTION 190 OF THE CBCA IS ATTACHED HEREIN AS EXHIBIT I AND IS INCORPORATED HEREIN BY REFERENCE.**

**Arrangement Resolution**

At the Meeting, Shareholders will be asked to consider and, if deemed advisable, to pass, with or without variation, a special resolution, the full text of which is set forth in Exhibit A (the "**Arrangement Resolution**").

**It is the intention of the persons named in the enclosed form of proxy, if not expressly directed to the contrary in any such proxy, to vote <u>FOR</u> the Arrangement Resolution.**

**Shareholder Approval and Board Recommendation**

Pursuant to the CBCA, the Arrangement must be authorized by a special resolution of the Shareholders, which requires the approval of at least two-thirds of the votes cast at the Meeting in person or by proxy.

The directors of the Company have unanimously approved the Arrangement and recommend that Shareholders vote **<u>FOR</u>** the Arrangement Resolution. The Board believes it is in the best interests of the Company and Shareholders participating in the Arrangement to effect the Arrangement based on the factors discussed herein. Management strongly endorses the proposed Arrangement and recommends that you vote **<u>FOR</u>** the Arrangement Resolution. The directors and senior officers of the Company, who collectively beneficially own, control or direct, directly or indirectly, 31,875,525 Common Shares representing approximately 11.68% of the issued and outstanding Common Shares, have indicated to management that they intend to vote **<u>FOR</u>** the Arrangement Resolution.

**Shareholders are urged to vote <u>FOR</u> the approval of the Arrangement Resolution substantially in the form outlined in Exhibit A of this Circular. Shareholders are encouraged to confer with their legal, accounting and other advisers with respect to this proposal.**

**Unless contrary instructions are indicated on the form of proxy/VIF, the persons designated in the accompanying form of proxy/VIF intend to vote <u>FOR</u> the Arrangement Resolution to approve the Arrangement.**

**Accounting Treatment of the Domestication**

Our Domestication as a Delaware corporation represents a transaction between entities under common control. Assets and liabilities transferred between entities under common control are accounted for at carrying value. Accordingly, the assets and liabilities of New Almonty will be reflected at their carrying value to us. Any of our Common Shares that we acquire from Dissenting Shareholders will be treated as an acquisition of treasury stock at the amount paid for the Common Shares.

**CERTAIN CANADIAN FEDERAL INCOME TAX CONSIDERATIONS RELATED TO THE ARRANGEMENT**

The following is a summary of the principal Canadian federal income tax considerations under the *Income Tax Act* (Canada) and the regulations thereunder, as amended (collectively, the "**Canadian Tax Act**"), as of the date hereof, generally applicable, in respect of the Arrangement, and the holding or disposition of New Almonty Shares, to a beneficial owner of Common Shares that, at all relevant times and for the purposes of the Canadian Tax Act, (i) holds its Common Shares and, following the Arrangement, New Almonty Shares as capital property, and (ii) deals at arm's length and is not affiliated with the Company and, following the Arrangement, New Almonty (a "**Holder**").

A Common Share or New Almonty Share will generally be considered to be capital property to a Holder unless either (i) the Holder holds the Common Share or New Almonty Share (as applicable) in the course of carrying on a business or (ii) the Holder has acquired the Common Share or New Almonty Share (as applicable) in a transaction or transactions considered to be an adventure or concern in the nature of trade.

This summary assumes that New Almonty will not be, and will not be deemed to be, resident in Canada for Canadian federal income tax purposes at any relevant time after the Arrangement. This summary further assumes that pursuant to Delaware law, New Almonty will remain the same corporate entity as the Company following the Arrangement and that the Arrangement will not result in any disposition of the Common Shares or of any property of the Company. The summary is further based on the facts set out in this Circular, the current provisions of the Canadian Tax Act in force as of the date hereof, an understanding of the current administrative policies and assessing practices of the Canada Revenue Agency (the "**CRA**") made publicly available prior to the date hereof, and all specific proposals to amend the Canadian Tax Act publicly announced by or on behalf of the Minister of Finance (Canada) prior to the date hereof (the "**Proposed Amendments**"). No assurances can be given that the Proposed Amendments will be enacted or will be enacted as proposed. Other than the Proposed Amendments, this summary does not take into account or anticipate any changes in law or the administrative policies or assessing practices of the CRA, whether by judicial, legislative, governmental or administrative decision or action, nor does it take into account provincial, territorial or foreign tax legislation or considerations, which may differ significantly from those discussed herein.

**This summary is of a general nature only and is not intended to be, nor should it be construed to be, legal or tax advice to any particular Holder and no representations with respect to the income tax consequences to any particular Holder are made. Without limiting the foregoing, this summary does not address any income tax considerations that may arise where the Holder received or acquired its Common Shares in connection with any employee stock option or executive compensation plan. This summary is not exhaustive of all Canadian federal income tax considerations and does not describe the income tax considerations relating to the deductibility of interest on money borrowed to acquire Common Shares (or, following the Arrangement, New Almonty Shares). Holders of Common Shares and New Almonty Shares should consult their own tax advisors with respect to their own particular circumstances.**

**Currency Conversion**

In general, for purposes of the Canadian Tax Act, all amounts relating to the acquisition, holding or disposition of the Common Shares or New Almonty Shares must be converted into Canadian dollars based on the applicable exchange rate quoted by the Bank of Canada for the relevant day or such other rate of exchange that is acceptable to the CRA.

**Resident Holders**

This section of the summary applies to a Holder who, at all relevant times, is, or is deemed to be, resident in Canada for the purposes of the Canadian Tax Act and any applicable income tax treaty or convention (a "**Resident Holder**"). This summary is not applicable to a Resident Holder: (i) that is a "financial institution" for purposes of the mark-to-market rules in the Canadian Tax Act, (ii) that is a "specified financial institution" as defined in the Canadian Tax Act, (iii) that reports its "Canadian tax results" within the meaning of the Canadian Tax Act in a currency other than Canadian currency, (iv) an interest in which is a "tax shelter investment" for the purposes of the Canadian Tax Act, (v) who has entered or will enter into a "derivative forward agreement", "dividend rental arrangement" or "synthetic disposition arrangement" as those terms are defined in the Canadian Tax Act with respect to any of the Common Shares or New Almonty Shares, or (vi) for whom New Almonty would be a "foreign affiliate" after the Arrangement. Any such Resident Holders should consult their own tax advisors.

A Resident Holder whose Common Shares might not otherwise qualify as capital property may be entitled to make the irrevocable election provided by subsection 39(4) of the Canadian Tax Act to have the Common Shares and every other "Canadian security" (as defined in the Canadian Tax Act) owned by such Resident Holder in the taxation year of the election and in all subsequent taxation years deemed to be capital property. After the Arrangement, the New Almonty Shares will no longer be Canadian securities for these purposes. Resident Holders should consult their own tax advisors for advice as to whether an election under subsection 39(4) of the Canadian Tax Act is available and/or advisable in their particular circumstances.

*Arrangement*

 

The Arrangement will not constitute a disposition of property for a Resident Holder for Canadian federal income tax purposes and, accordingly, will not give rise to a capital gain or capital loss for such purposes.

*Dividends following the Arrangement*

 

A Resident Holder will be required to include in computing such Resident Holder's income for Canadian federal income tax purposes the amount of any dividends received on the New Almonty Shares at any time after the Arrangement. Dividends received at such time on the New Almonty Shares by a Resident Holder who is an individual will not be subject to the gross-up and dividend tax credit rules normally applicable to taxable dividends received from a "taxable Canadian corporation," and a Resident Holder that is a corporation will not be entitled to deduct the amount of such dividends in computing its taxable income, in each case for Canadian federal income tax purposes.

*Disposition of New Almonty Shares*

 

Upon a disposition or a deemed disposition of a New Almonty Share after the Arrangement, a Resident Holder that holds such share as capital property will realize a capital gain (or a capital loss) equal to the amount by which the proceeds of disposition of the New Almonty Share, net of any reasonable costs of disposition, exceed (or are less than) the adjusted cost base of the New Almonty Share to the Resident Holder. The adjusted cost base to the Resident Holder of a New Almonty Share acquired at any particular time will be determined by averaging the cost of such New Almonty Share with the adjusted cost base of all New Almonty Shares owned by the Resident Holder as capital property immediately before that time, if any.

A Resident Holder will be required to include in computing its income for the taxation year of disposition one-half of the amount of any capital gain (a "**taxable capital gain**") realized in such taxation year. Subject to and in accordance with the provisions of the Canadian Tax Act, a Resident Holder will be required to deduct one-half of the amount of any capital loss realized in a particular taxation year (an "**allowable capital loss**") against taxable capital gains realized in the taxation year. Allowable capital losses in excess of taxable capital gains for a taxation year may be carried back and deducted in any of the three preceding taxation years or carried forward and deducted in any subsequent taxation year against net taxable capital gains realized in such taxation years, to the extent and under the circumstances specified in the Canadian Tax Act. Pursuant to certain Proposed Amendments, the capital gains inclusion rate is proposed to be increased from one-half to two-thirds for (i) all capital gains realized on or after January 1, 2026 by corporations and trusts and (ii) the portion of capital gains realized on or after January 1, 2026 by individuals in excess of an annual $250,000 threshold. Corresponding changes to the proportion of a capital loss that is an allowable capital loss are also proposed. Transitional rules will apply to separately identify capital gains and losses realized before the effective date of the proposals and capital gains and losses realized on or after the effective date of the proposals. There is no certainty that the Proposed Amendments will become law in the form proposed or at all.

*Refundable Tax*

 

A Resident Holder that is, throughout the relevant taxation year, a "Canadian-controlled private corporation" (as defined in the Canadian Tax Act) or at any time in the year a "substantive CCPC" (as defined in the Canadian Tax Act) may be liable to pay an additional tax (refundable in certain circumstances) on its "aggregate investment income" (as defined in the Canadian Tax Act), including any dividends or deemed dividends that are not deductible in computing the Resident Holder's taxable income, and an amount in respect of taxable capital gains. Resident Holders to whom these rules may apply are advised to consult their own tax advisors.

*Alternative Minimum Tax*

 

In general terms, a Resident Holder who is an individual (other than certain trusts) that receives or is deemed to have received taxable dividends on New Almonty Shares, or realizes a capital gain on the disposition or deemed disposition of New Almonty Shares, may be liable for alternative minimum tax under the Canadian Tax Act. Resident Holders that are individuals should consult their own tax advisors in this regard.

*Foreign Property Reporting*

 

New Almonty Shares may constitute "specified foreign property" in respect of which a CRA form T1135 is required to be filed by a Resident Holder. A Resident Holder should consult their own tax advisor in this regard.

 

*Offshore Investment Fund Property Rules*

 

Pursuant to the offshore investment fund property rules in section 94.1 of the Canadian Tax Act (the "**OIFP Rules**"), if in a particular year a Resident Holder holds or has an interest in New Almonty Shares, and the New Almonty Shares may reasonably be considered to derive their value, directly or indirectly, primarily from portfolio investments in (i) shares of the capital stock of one or more corporations, (ii) indebtedness or annuities, (iii) interests in one or more corporations, trusts, partnerships, organizations, funds or entities, (iv) commodities, (v) real estate, (vi) Canadian or foreign resource properties, (vii) currency of a country other than Canada, (viii) rights or options to acquire or dispose of any of the foregoing, or (ix) any combination of the foregoing, and one of the main reasons for holding an interest in the New Almonty Shares is to reduce or defer the Canadian tax liability that would have applied to the income, profits and gains generated by the portfolio investments if such income, profits and gains had been earned directly by the holder, the Resident Holder will generally be required to include in computing income for the year an amount equal to the amount, if any, by which (i) an imputed return for the taxation year computed on a monthly basis and calculated as the product obtained when the Resident Holder's "designated cost" (within the meaning of the Canadian Tax Act) of the New Almonty Shares at the end of the month, is multiplied by one-twelfth of the total of (A) the applicable prescribed rate for the period that includes such month, and (B) two percent, exceeds (ii) the Resident Holder's income for the year (other than a capital gain) in respect of the New Almonty Shares determined without reference to these rules. The OIFP Rules are complex and their application depends, to a large extent, on the reasons for a Resident Holder acquiring or holding the New Almonty Shares. Canadian Resident Holders are urged to consult their own tax advisors regarding the application and consequences of the OIFP Rules in their own particular circumstances.

*Dissenting Resident Holders*

 

A Resident Holder that validly exercises dissent rights (a "**Dissenting Resident Holder**") will be entitled to be paid by the Company the fair value of their Common Shares in respect of which they dissent. See the section entitled "*Business of the Meeting: Approval of the Arrangement – Dissent Rights of Shareholders*" above for more information on exercising dissent rights.

Generally, a Dissenting Resident Holder will be deemed to have received a dividend on their Common Shares equal to the amount, if any, by which the fair value of their Common Shares exceeds the paid-up capital of such Common Shares for purposes of the Canadian Tax Act. The amount of this deemed dividend could, in some circumstances, be treated as proceeds of disposition in the case of a Dissenting Resident Holder that is a corporation. The difference between the fair value of the Common Shares and the amount of any deemed dividend would be treated as proceeds of disposition of the Common Shares for the purposes of computing any capital gain or capital loss realized by a Dissenting Resident Holder on the disposition of the Common Shares. The Canadian tax consequences of such capital gain or capital loss are as described under "*Resident Holders – Disposition of New Almonty Shares*" above. Resident Holders who are considering exercising dissent rights in connection with the Arrangement are urged to consult with their tax advisors with respect to the tax consequences of such action.

**Holders Not Resident in Canada**

This portion of the summary is generally applicable to a Holder who, at all relevant times, for purposes of the Canadian Tax Act: (i) is not, and is not deemed to be, resident in Canada for the purposes of the Canadian Tax Act or any applicable income tax treaty or convention, and (ii) does not and will not use or hold, and is not and will not be deemed to use or hold, any of the Common Shares or, following the Arrangement, New Almonty Shares in connection with carrying on a business in Canada (a "**Non-Resident Holder**"). This summary does not apply to a Non-Resident Holder that carries on, or is deemed to carry on, an insurance business in Canada and elsewhere or that is an "authorized foreign bank" within the meaning of the Canadian Tax Act. Such Holders should consult their own tax advisors.

*Arrangement*

 

The Arrangement will not constitute a disposition of property for a Non-Resident Holder for Canadian federal income tax purposes and, accordingly, will not give rise to a capital gain or capital loss for such purposes.

*Disposition of New Almonty Shares*

 

A Non-Resident Holder who disposes of or is deemed to dispose of New Almonty Shares after the Arrangement will not be subject to tax under the Canadian Tax Act in respect of any capital gain realized on such disposition unless the New Almonty Shares constitute, or are deemed to constitute, "taxable Canadian property" (as defined in the Canadian Tax Act) to the Non-Resident Holder at the time of the disposition and the Non-Resident Holder is not entitled to relief under an applicable income tax treaty or convention. Provided that the New Almonty Shares are listed on a designated stock exchange (which includes the TSX and ASX) at a particular time, the New Almonty Shares generally will not constitute taxable Canadian property to a Non-Resident Holder at that time unless, at any time during the 60-month period ending at that time: (i) 25% or more of the issued shares of any class or series of New Almonty's (or, prior to the Arrangement, the Company's) capital stock were owned by any combination of (a) the Non-Resident Holder, (b) persons with whom the Non-Resident Holder did not deal at arm's length, and (c) partnerships in which the Non-Resident Holder or a person described in (b) holds a membership interest directly or indirectly through one or more partnerships; and (ii) more than 50% of the value of the New Almonty Shares (or, prior to the Arrangement, the Common Shares) was derived, directly or indirectly, from one or any combination of (a) real or immoveable property situated in Canada, (b) Canadian resource properties, (c) timber resource properties, and (d) options in respect of any such property, all for purposes of the Canadian Tax Act. A Non-Resident Holder's New Almonty Shares may also be deemed to be taxable Canadian property in certain circumstances set out in the Canadian Tax Act.

If the New Almonty Shares are considered taxable Canadian property to the Non-Resident Holder, upon a disposition or a deemed disposition of such New Almonty Shares the Non-Resident Holder will realize a capital gain (or a capital loss) equal to the amount by which the proceeds of disposition of the New Almonty Shares, net of any reasonable costs of disposition, exceed (or are less than) the adjusted cost base of the New Almonty Shares to the Non-Resident Holder. Any such capital gain or capital loss will be subject to Canadian taxation as described under the heading "—*Resident Holders* – *Disposition of New Almonty Shares*".

An applicable income tax treaty or convention may apply to exempt a Non-Resident Holder from tax under the Canadian Tax Act in respect of a disposition of New Almonty Shares notwithstanding that such New Almonty Shares may constitute taxable Canadian property.

Non-Resident Holders whose New Almonty Shares may be taxable Canadian property should consult their own tax advisors.

*Dividends following the Arrangement*

 

A Non-Resident Holder will not be subject to Canadian withholding tax on dividends paid by New Almonty following the Arrangement.

*Dissenting Non-Resident Holders*

 

A Non-Resident Holder that validly exercises dissent rights (a "**Dissenting Non-Resident Holder**") will be entitled to receive from the Company the fair value of the Common Shares in respect of which it dissents. See "*Business of the Meeting: Approval of the Arrangement – Dissent Rights of Shareholders*" above for more information on exercising dissent rights.

Generally, a Dissenting Non-Resident Holder will be deemed to have received a dividend on the Common Shares equal to the amount, if any, by which the fair value of the Common Shares exceeds the paid-up capital of such Common Shares for purposes of the Canadian Tax Act. Any such deemed dividend will be subject to Canadian withholding tax at a rate of 25% of the gross amount of the dividend, but this rate may be reduced pursuant to an applicable tax treaty. The difference between the fair value of the Common Shares and the amount of any deemed dividend would be treated as proceeds of disposition of the Common Shares for the purposes of computing any capital gain or capital loss realized by a Dissenting Non-Resident Holder on the disposition of the Common Share. A Dissenting Non-Resident Holder will not be subject to tax under the Canadian Tax Act on any capital gain realized on the disposition of Common Shares unless the Common Shares are "taxable Canadian property" for purposes of the Canadian Tax Act, as discussed above. Any interest awarded to a Dissenting Non-Resident Holder by a court will not be subject to withholding tax under the Canadian Tax Act, provided such interest is not "participating debt interest" for purposes of the Canadian Tax Act. Non-Resident Holders who are considering exercising dissent rights in connection with the Arrangement are urged to consult with their tax advisors with respect to the tax consequences of such action.

**Eligibility for Investment**

Provided that the New Almonty Shares continue to be listed on a "designated stock exchange" such as the TSX and/or ASX at the Effective Time and at all relevant times thereafter, the New Almonty Shares will continue to be a qualified investment for trusts governed by a registered retirement savings plan ("**RRSP**"), registered retirement income fund ("**RRIF**"), deferred profit sharing plan, registered disability savings plan ("**RDSP**"), registered education savings plan ("**RESP**"), tax-free savings account ("**TFSA**") and first home savings account ("**FHSA**").

Notwithstanding that the New Almonty Shares may be a qualified investment for a trust governed by a RRSP, RRIF, RESP, RDSP, TFSA or FHSA, the annuitant of a RRSP or RRIF, the subscriber of a RESP or the holder of a RDSP, TFSA or FHSA, as the case may be, will be subject to a penalty tax if such New Almonty Shares are a "prohibited investment" (as defined in the Canadian Tax Act). The New Almonty Shares will generally not be a "prohibited investment" for a trust governed by a RRSP, RRIF, RESP, RDSP, TFSA or FHSA provided that (i) the annuitant of the RRSP or the RRIF, the subscriber of the RESP or the holder of the RDSP, TFSA or FHSA, as the case may be, deals at "arm's length" (as defined in the Canadian Tax Act) with New Almonty and does not have a "significant interest" (as defined in the Canadian Tax Act) in New Almonty, or (ii) the New Almonty Shares are "excluded property" (as defined in subsection 207.01(1) of the Canadian Tax Act) for the RRSP, RRIF, RESP, RDSP or TFSA. Shareholders holding New Almonty Shares through such plans should consult their own tax advisors as to whether their New Almonty Shares would be a prohibited investment in their particular circumstances.

**CERTAIN UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS RELATED TO THE DOMESTICATION**

The following is a general discussion of certain U.S. federal income tax considerations under the United States Internal Revenue Code of 1986, as amended (the "**U.S. Tax Code**") generally applicable to certain U.S. Holders (as defined below) relating to the Domestication and Non-U.S. Holders (as defined below) participating in the Domestication and of the ownership and disposition of New Almonty Shares received by Non-U.S. Holders pursuant to the Domestication. This discussion is based upon the provisions of the U.S. Tax Code, existing final, temporary and proposed U.S. Treasury Department regulations promulgated thereunder (the "**Treasury Regulations**"), and current published administrative rulings and court decisions in effect on the date hereof, all of which are subject to change, possibly with retroactive effect, and to differing interpretations. Changes in these authorities may cause the U.S. federal income tax consequences to vary substantially from those described below. This summary does not discuss the potential effects, whether adverse or beneficial, of any proposed legislation that, if enacted, could be applied on a retroactive or prospective basis. This summary does not address the U.S. federal alternative minimum, U.S. federal estate and gift (or any other non-income), U.S. state or local, U.S. federal net investment income or non-U.S. tax consequences to U.S. Holders of the Domestication. In addition, except as specifically set forth below, this summary does not discuss applicable tax reporting requirements.

No legal opinion from U.S. legal counsel or ruling from the IRS has been requested, or will be obtained, regarding the U.S. federal income tax consequences described herein. This discussion is not binding on the IRS or any court, and there can be no assurance that the IRS will not take a contrary position or that such a position would not be sustained by a court.

This discussion is for general information only and is not intended to be, nor should it be construed to be, legal or tax advice to any holder of Common Shares (or, after the Domestication, New Almonty Shares) and no opinion or representation with respect to the U.S. federal income tax consequences to any such holder is made. This discussion does not take into account the individual facts and circumstances of any particular holder of Common Shares that may affect the U.S. federal income tax consequences to such holder, including specific tax consequences to a Holder under an applicable tax treaty. This discussion applies only to holders that own Common Shares prior to the Domestication, and will own New Almonty Shares after the Domestication, as "capital assets" for U.S. federal income tax purposes (generally, property held for investment purposes), and does not discuss all of the U.S. federal income tax considerations that may be relevant to specific holders in light of their particular circumstances or to holders subject to special treatment under U.S. federal income tax law including, without limitation:

● banks, trusts, mutual funds and other financial institutions;

● regulated investment companies or real estate investment trusts;

● traders in securities that elect to apply a mark-to-market method of accounting;

● brokers, dealers or traders in securities, currencies or commodities;

● tax-exempt organizations, tax-qualified retirement accounts, or pension funds;

● insurance companies;

● dealers or brokers in securities or foreign currency;

● individual retirement and other tax-deferred accounts;

● holders whose functional currency is not the U.S. dollar;

● holders subject to taxing jurisdictions other than, or in addition to, the U.S.;

● holders subject to special tax accounting rules, including with respect to any item of gross income with respect to Common Shares (or after the Domestication, New Almonty Shares) being taken into account in an applicable financial statement;

● holders subject to the alternative minimum tax;

● holders that own, directly, indirectly or constructively, five percent (5%) or more of the total voting power or total value of all of the outstanding Common Shares (or after the Domestication, New Almonty Shares);

● holders that hold their Common Shares (or after the Domestication, New Almonty Shares) as part of a straddle, hedging, conversion, constructive sale or other risk reduction transaction;

● holders who hold their Common Shares (or after the Domestication, New Almonty Shares) other than as capital assets within the meaning of Section 1221 of the U.S. Tax Code;

● partnerships or other pass-through entities (and partners or other owners thereof);

● S corporations (and shareholders thereof);

● holders that hold their Common Shares (or after the Domestication, New Almonty Shares) in connection with a trade or business, permanent establishment, or fixed base outside the U.S.;

● holders that are expatriates or former long-term residents of the U.S.; and

● holders who received their shares through the exercise or cancellation of employee stock options or otherwise as compensation for services or through a tax-qualified retirement plan.

Holders that are subject to special provisions under the U.S. Tax Code, including holders described immediately above, should consult their own tax advisors regarding the U.S. federal income, estate and gift, U.S. state and local, and non-U.S. tax consequences relating to the Domestication and the ownership and disposition of New Almonty Shares by such holders following the Domestication.

For purposes of this discussion, a "**U.S. Holder**" means a beneficial owner of Common Shares at the time of the Domestication and, to the extent applicable, New Almonty Shares following the Domestication, that is:

● an individual who is a citizen or resident of the United States, as determined for U.S. federal income tax purposes;

● a corporation (or other entity taxable as a corporation for U.S. federal income tax purposes) created or organized in the United States or under the laws of the United States or any state thereof or the District of Columbia;

● an estate the income of which is includible in gross income for U.S. federal income tax purposes regardless of its source; or

● a trust if (1) a court within the United States is able to exercise primary supervision over the administration of the trust and one or more U.S. persons have the authority to control all substantial decisions of the trust, or (2) the trust has a valid election in effect under applicable Treasury Regulations to be treated as a U.S. person for U.S. federal income tax purposes.

For purposes of this discussion, a "**Non-U.S. Holder**" means a beneficial owner of Common Shares or, after the completion of the Domestication, New Almonty Shares, that is, for U.S. federal income tax purposes, not a U.S. Holder or a partnership or other "pass-through" entity for U.S. federal income tax purposes.

If a partnership, including for this purpose any entity or arrangement that is treated as a partnership or other "pass-through" entity for U.S. federal income tax purposes, holds Common Shares at the time of the Domestication or, to the extent applicable, New Almonty Shares following the Domestication, the tax treatment of a partner in such partnership will generally depend upon the status of the partner and the activities of the partnership. A Shareholder that is a partnership or a partner (or other owner) in such partnership is urged to consult its own tax advisors about the U.S. federal income tax consequences of the Domestication to them in light of their own circumstances.

**This summary is for general information only and is not intended to constitute a complete description of all United States tax consequences relating to the Domestication and holding and disposing of Common Shares (or after the Domestication, New Almonty Shares). Shareholders are urged to consult their own tax advisors as to the U.S. federal income and other tax considerations relating to the Domestication and holding and disposing of Common Shares (or after the** **Domestication, New Almonty Shares) to them in light of their own circumstances, as well as the effect of any state, local or non-U.S. tax laws.**

**U.S. Federal Income Tax Consequences of 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 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 "*– Passive Foreign Investment Company Status*". The Domestication should be treated, for U.S. federal income tax purposes, as if Almonty (prior to the continuance) (i) transferred all of its assets and liabilities to New Almonty in exchange for all of the outstanding common stock of New Almonty and (ii) then distributed the common stock of New Almonty to the Shareholders of Almonty 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 U.S. Tax Code (as discussed below), and (ii) the holding period for a New Almonty Share deemed to be received by a U.S. Holder will include such U.S. Holder's holding period for the Common Share deemed to be surrendered in exchange therefor. 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.

If the Domestication does not qualify as an F Reorganization, a U.S. Holder generally would, subject to the potential application of the PFIC rules, recognize gain or loss with respect to its Common Share in an amount equal to the difference between the fair market value of the New Almonty Shares deemed to be received in the Domestication and the U.S. Holder's adjusted tax basis in such holder's Common Shares deemed to be surrendered in the Domestication. In such event, such U.S. Holder's basis in the New Almonty Shares would be equal to the fair market value of such stock on the date of the Domestication, and such U.S. Holder's holding period for the New Almonty Shares would begin on the day following the date of the Domestication.

**Effects of Section 367 on the Domestication**

Section 367 of the U.S. Tax Code applies to certain non-recognition transactions involving foreign corporations and has the effect of imposing U.S. income tax on certain U.S. persons in connection with transactions that would otherwise be tax-free. Section 367(b) of the U.S. Tax Code would apply to the Domestication under the circumstances discussed below if the Domestication otherwise qualifies as an F Reorganization.

*U.S. Holders that own Common Shares with a fair market value of less than $50,000*

 

A U.S. Holder who, at the time of the Domestication, beneficially owns Common Shares with a fair market value of less than $50,000 should not be required to recognize any income or gain under Section 367(b) of the U.S. Tax Code in connection with the Domestication.

*U.S. Holders that own shares of Common Shares with a fair market value of $50,000 or more (but are not 10% U.S. Holders)*

 

A U.S. Holder who, at the time of the Domestication, is not a 10% U.S. Holder and beneficially owns 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.

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 the all earnings and profits amount attributable to a shareholder's stock is determined according to the principles of Section 1248 of the U.S. Tax Code. In general, Section 1248 of the U.S. Tax 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 by such U.S. Holder through the Effective Date.

If a U.S. Holder makes the "all earnings and profits" election, the election must comply with strict conditions for making this election under applicable Treasury Regulations. U.S. Holders wishing to make the "all earnings and profits" election should consult their own tax advisors regarding the process for, and effect of, making the election in light of their own circumstances.

*10% U.S. Holders*

 

A U.S. Holder who, at the time of the Domestication, beneficially owns (directly, indirectly or by attribution) 10% or more of the total combined voting power or value of all classes of shares of stock of Almonty (a "**10% U.S. Holder**") is subject to special rules that generally require such 10% U.S. Holder to include in income, as a deemed dividend, the "all earnings and profits amount" attributable to the shares of Common Stock owned by such U.S. Holder. **10% U.S. Holders should consult their own tax advisors regarding the effect of the Domestication to them in light of their own circumstances.**

*Determination of the "All Earnings and Profits Amount"*

 

The Company is currently in the process of determining its historical earnings and profits and also expects to determine its earnings and profits for 2024 and for the portion of 2025 ending on the Effective Date. The Company will not complete this determination until after completion of the Domestication. As noted above, the "all earnings and profits amount" attributable to Common Shares held by a particular U.S. Holder should generally depend on the Company's accumulated earnings and profits from the date that the Common Shares were acquired by such U.S. Holder through the Effective Date. The Company intends to provide on its external website (https://almonty.com/investors/financials/), under the heading "Financial Reports", information regarding the Company's earnings and profits once such information is reasonably available. The determination of the Company's earnings and profits is a complex determination and may be impacted by numerous factors. Accordingly, there can be no assurance that the IRS will agree with the Company's determination of such earnings and profits. If the IRS does not agree with such earnings and profits calculations, the earnings and profits of the Company may be greater than reported on the Company's website (as described above). In such case, a U.S. Holder that makes an "all earnings and profits" election or a 10% U.S. Holder could have a positive (or a more positive than anticipated) "all earnings and profits amount" in respect of such U.S. Holder's shares and thereby recognize greater taxable income.

**U.S. HOLDERS ARE STRONGLY URGED TO CONSULT THEIR OWN TAX ADVISORS REGARDING THE U.S. FEDERAL INCOME TAX TREATMENT OF THE DOMESTICATION, WHETHER TO MAKE THE "ALL EARNINGS AND PROFITS" ELECTION DESCRIBED ABOVE AND, IF THE ELECTION IS DETERMINED TO BE ADVISABLE, THE APPROPRIATE FILING REQUIREMENTS WITH RESPECT TO THIS ELECTION.**

*Passive Foreign Investment Company Status*

 

If the Company was a passive foreign investment company ("**PFIC**") under Section 1297 of the U.S. Tax Code for any taxable year during which a U.S. Holder has held Common Shares, certain adverse tax consequences could apply to such U.S. Holder in connection with the Domestication. In general, the Company would be a PFIC with respect to a U.S. Holder if for any taxable year in which the U.S. Holder held its Common Shares, (i) at least 75% of the Company's gross income for the taxable year was passive income, or (ii) at least 50% of the value, determined on the basis of a quarterly average, of the Company's assets was attributable to assets that produced, or were held for the production of, passive income. Passive income generally includes dividends, interest, rents and royalties (other than rents or royalties derived from the active conduct of a trade or business) and gains from the disposition of passive assets. If a foreign corporation is classified as a PFIC for any taxable year during which a U.S. Holder owns stock in the foreign corporation, the foreign corporation generally remains thereafter classified as a PFIC with respect to that U.S. Holder.

The Company has not made a determination of whether it is or ever has been a PFIC for U.S. federal income tax purposes. Accordingly, it is possible that the Company is or has been a PFIC for U.S. federal income tax purposes. This determination of whether the Company is or has been a PFIC depends on complex factual determinations that are made annually and thus there can be no assurance that the Company is not and has not been a PFIC. If the Company has not been a PFIC at any time during a U.S. Holder's holding period for their Common Shares, the Domestication should not be a taxable event for such U.S. Holder solely as a result of the application of the PFIC rules.

However, if the Company was a PFIC for any taxable year during which a U.S. Holder held Common Shares, certain adverse tax consequences, including recognition of gain and application of an interest charge, could apply to such U.S. Holder as a result of the Domestication, unless an exception under the relevant Treasury Regulations can be relied upon. Section 1291(f) of the U.S. Tax Code generally requires that, to the extent provided in the Treasury Regulations, a United States person who disposes of stock of a PFIC recognizes gain notwithstanding any provision of law. No final Treasury Regulations have been promulgated under this statute. Proposed Treasury Regulations were promulgated in 1992 with a retroactive effective date (the "**Proposed PFIC Regulations**"). If finalized in their current form, the Proposed PFIC Regulations would generally require gain recognition by United States persons deemed to exchange Common Shares for New Almonty Shares pursuant to the Domestication, if Almonty were classified as a PFIC at any time during such United States person's holding period in such stock and such person had not made either a "qualified electing fund" election under Section 1295 of the U.S. Tax Code for the first taxable year in which such U.S. Holder owned Common Shares or in which the Company was a PFIC, whichever is later, or a "mark-to-market" election under Section 1296 of the U.S. Tax Code. The tax on any such gain so recognized would be imposed at the rate applicable to ordinary income and an interest charge would apply based on a complex set of computational rules designed to offset the tax deferral to such stockholders on our undistributed earnings. In addition, the regulations would provide coordinating rules with Section 367(b) of the U.S. Tax Code, whereby, if the gain recognition rule of the Proposed PFIC Regulations applied to a disposition of PFIC stock that results from a transfer with respect to which Section 367(b) requires the shareholder to recognize gain or include an amount in income as a distribution under Section 301 of the U.S. Tax Code, the gain realized on the transfer is taxable as an excess distribution under Section 1291 of the U.S. Tax Code, and the excess, if any, of the amount to be included in income under Section 367(b) over the gain realized under Section 1291 is taxable as provided under Section 367(b). See the discussion above under the section entitled "*– Effects of Section 367 on the Domestication*".

It is difficult to predict whether, in what form and with what effective date, final Treasury Regulations under Section 1291(f) of the U.S. Tax Code will be adopted. The PFIC rules are very complex and are affected by various factors in addition to those described above. Accordingly, U.S. Holders are urged to consult their own tax advisors concerning the potential application of the PFIC rules to such holder under their particular circumstances.

*U.S. Holders Exercising Dissent Rights*

 

A U.S. Holder of Common Shares that validly exercises dissent rights and receives the fair value for such holder's Common Shares generally will recognize gain or loss in an amount equal to the difference, if any, between (i) the amount received by such U.S. Holder in exchange for Common Shares (other than amounts, if any, that are or are deemed to be interest for U.S. federal income tax purposes, which amounts will be taxed as ordinary interest income), and (ii) the adjusted tax basis of such U.S. Holder in such Common Shares surrendered. Subject to the potential application of the PFIC rules discussed above, such gain or loss would be long-term capital gain or loss if the U.S. Holder's holding period for such Common Shares was more than one year at the Effective Date. Preferential tax rates for long-term capital gains are generally applicable to a U.S. Holder that is an individual, estate or trust. Deductions for capital losses are subject to significant limitations. If Almonty has been a PFIC at any time during which a U.S. Holder has held Common Shares, then any gain from the exercise of dissent rights may be subject to adverse U.S. federal income tax treatment under the PFIC rules. See "*– Passive Foreign Investment Company Status*". It is possible that the IRS may take the position that some portion of the amounts received by a U.S. Holder exercising dissent rights should be treated as interest or as otherwise being subject to taxation as ordinary income. A U.S. Holder that intends to exercise dissent rights is urged to consult its own tax advisors regarding the U.S. federal income tax consequences to it of exercising such rights prior to exercising such rights and having due regard to such U.S. Holder's particular circumstances.

**Non-U.S. Holders**

*Certain U.S. Federal Income Tax Consequences of the Domestication to Non-U.S. Holders*

 

The Domestication is not expected to result in any material U.S. federal income tax consequences to a Non-U.S. Holder provided that such Non-U.S. Holder (i) has not been engaged in the conduct of a trade or business within the United States (or, if required by an applicable income tax treaty, such Non-U.S. Holder has not maintained a permanent establishment within the United States), and (ii) is not a non- resident alien individual treated as present in the United States for 183 days or more during the taxable year of the Domestication and certain other requirements are met. Non-U.S. Holders of Common Shares that validly exercise dissent rights and meet the requirements described in (i) and (ii) of the preceding sentence are not expected to recognize taxable gain for U.S. federal income tax purposes as a result of exercising such dissent rights. It is possible, however, that the IRS may take the position that some portion of the amounts received by a Non-U.S. Holder exercising dissent rights should be treated as U.S. source interest or other U.S. source income. In such case, such portion may be subject to U.S. withholding tax at a rate of 30%, unless such Non-U.S. Holder is eligible for a reduced rate of withholding tax under an applicable income tax treaty or other exception and, in either case, provides proper certification of its eligibility. Non-U.S. Holders that intend to exercise dissent rights are urged to consult their own tax advisors regarding the U.S. federal income tax consequences to such holder of exercising such rights prior to exercising such rights and having due regard to such Non-U.S. Holder's particular circumstances.

*Ownership and Disposition of New Almonty Shares After the Domestication*

 

<u>Distributions with Respect to New Almonty Shares</u>

In general, any distributions made to a Non-U.S. Holder of New Almonty Shares, to the extent paid out of our current or accumulated earnings and profits (as determined under U.S. federal income tax principles), will constitute dividends for U.S. federal income tax purposes and, provided such dividends are not effectively connected with the Non-U.S. Holder's conduct of a trade or business within the United States, will be subject to withholding tax from the gross amount of the dividend at a rate of 30%, unless such Non-U.S. Holder is eligible for a reduced rate of withholding tax under an applicable income tax treaty and provides proper certification of its eligibility for such reduced rate (usually on an IRS Form W-8BEN or W- 8BEN-E, as applicable). Non-U.S. Holders should consult their own tax advisors regarding their entitlement to benefits under any applicable income tax treaty and the procedures for claiming such benefits. To the extent that the amount of the distribution exceeds our current and accumulated earnings and profits, such excess will be treated first as a tax-free return of the Non-U.S. Holder's tax basis in the New Almonty Shares, and then, to the extent such excess amount exceeds the Non-U.S. Holder's tax basis in such New Almonty Shares, as capital gain. See the discussion below under the heading "*– Sale or Other Taxable Disposition of New Almonty Shares*".

Dividends paid by the Company to a Non-U.S. Holder that are effectively connected with such Non-U.S. Holder's conduct of a trade or business within the United States (or if a tax treaty applies are attributable to a U.S. permanent establishment or fixed base maintained by the Non-U.S. Holder) will generally not be subject to U.S. withholding tax, provided such Non-U.S. Holder complies with certain certification and disclosure requirements (usually by providing an IRS Form W-8ECI). Instead, such dividends generally will be subject to U.S. federal income tax at the same regular U.S. federal income tax rates applicable to a comparable U.S. Holder and, in the case of a Non-U.S. Holder that is a corporation for U.S. federal income tax purposes, also may be subject to an additional branch profits tax at a 30% rate or a lower applicable tax treaty rate.

The dividend rules are complex. Non-U.S. Holders of New Almonty Shares are urged to consult with their own tax advisors regarding eligibility for benefits under any applicable income tax treaty with respect to dividends paid by the Company after the Domestication and the proper manner for claiming such benefits (including proper certification on an applicable IRS Form W-8).

<u>Sale or Other Taxable Disposition of New Almonty Shares</u>

A Non-U.S. Holder generally will not be subject to U.S. federal income tax on gain realized upon the sale or other disposition of its New Almonty Shares unless:

● the gain is effectively connected with the Non-U.S. Holder's conduct of a trade or business within the United States (and, if required by an applicable income tax treaty, such gain is attributable to a permanent establishment maintained by the Non-U.S. Holder in the United States);

● the Non-U.S. Holder is a non-resident alien individual present in the United States for 183 days or more during the taxable year of the disposition and certain other requirements are met; or

● the Company is or has been a U.S. real property holding corporation at any time within the five- year period preceding the disposition or the Non-U.S. Holder's holding period, whichever period is shorter, and either (i) the New Almonty Shares have ceased to be regularly traded on an established securities market or (ii) the Non-U.S. Holder has owned or is deemed to have owned, at any time within the five-year period preceding the disposition or the Non-U.S. Holder's holding period, whichever period is shorter, more than 5% of the New Almonty Shares. The Company does not expect to be classified as a U.S. real property holding corporation immediately after the Domestication.

Gain described in the first bullet point above generally will be subject to U.S. federal income tax on a net income basis at regular graduated tax rates, generally in the same manner as if such Non-U.S. Holder were a United States person. A Non-U.S. Holder that is a corporation may also be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on such effectively connected gain, as adjusted for certain items.

Gain described in the second bullet point above generally would be subject to a flat 30% U.S. federal income tax.

If the third bullet point above applies to a Non-U.S. Holder, gain recognized by such holder on the sale, exchange or other disposition of New Almonty Shares would be subject to tax at generally applicable U.S. federal income tax rates. In addition, a buyer of such stock from a Non-U.S. Holder may be required to withhold U.S. income tax at a rate of 15% of the amount realized upon such disposition. The Company would generally be classified as a U.S. real property holding corporation if the fair market value of its "United States real property interests" equals or exceeds 50% of the sum of the fair market value of its worldwide real property interests plus its other assets used or held for use in a trade or business, as determined for U.S. federal income tax purposes. The Company does not expect to be classified as a U.S. real property holding corporation immediately after the Domestication.

<u>Information Reporting and Backup Withholding</u>

A Non-U.S. Holder that holds New Almonty Shares within the U.S. or through certain U.S.-related brokers may be subject to information reporting and possible backup withholding with respect to dividend payments on, and proceeds from the sale, exchange or redemption of, such New Almonty Shares. A Non-U.S. Holder generally may eliminate the requirement for information reporting and backup withholding by providing certification of its foreign status, under penalties of perjury, on a duly executed applicable IRS Form W-8 or by otherwise establishing an exemption.

Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules may be allowed as a refund or a credit against a Non-U.S. Holder's U.S. federal income tax liability, provided the required information is timely furnished to the IRS.

<u>Additional Withholding Tax on Payments Made to Foreign Accounts</u>

Sections 1471 through 1474 of the U.S. Tax Code and the Treasury Regulations and administrative guidance promulgated thereunder (commonly referred to as "**FATCA**") generally impose withholding at a rate of 30% in certain circumstances with respect to "withholdable payments" which are held by or through certain non-U.S. financial institutions (including investment funds), as a beneficial owner or as an intermediary, unless any such institution (i) enters into, and complies with, an agreement with the IRS to report, on an annual basis, information with respect to interests in, and accounts maintained by, the institution that are owned be certain U.S. persons and by certain non-U.S. entities that are wholly or partially owned by U.S. persons and to withhold on certain payments, or (ii) if required under an intergovernmental agreement between the United States and an applicable foreign country, reports such information to its local tax authority, which will exchange such information with the U.S. authorities. For this purpose, "withholdable payments" generally include payments of dividends in addition to certain other passive income type amounts. Under the Treasury Regulations, withholdable payments include gross proceeds from any sale or other disposition of securities (including New Almonty Shares). An intergovernmental agreement between the United States and an applicable foreign country may modify these requirements. Accordingly, the entity through which New Almonty Shares are held will affect the determination of whether such withholding is required. Similarly, dividends in respect of New Almonty Shares held by an investor that is a non-financial non-U.S. entity (as a beneficial owner or as an intermediary) that does not qualify under certain exceptions will generally be subject to withholding at a rate of 30%, unless such entity either (i) certifies to the applicable withholding agent that such entity does not have any "substantial United States owners" or (ii) provides certain information regarding the entity's "substantial United States owners", which will in turn be provided to the U.S. Department of Treasury. All holders should consult their tax advisors regarding the possible implications of FATCA on their ownership of New Almonty Shares.

**THE FOREGOING DISCUSSION IS NOT A COMPREHENSIVE DISCUSSION OF ALL OF THE U.S. FEDERAL INCOME TAX CONSEQUENCES TO U.S. AND NON-U.S. HOLDERS. U.S. AND NON-U.S. HOLDERS SHOULD CONSULT WITH THEIR OWN TAX ADVISORS TO DETERMINE THE SPECIFIC TAX CONSEQUENCES TO THEM OF THE DOMESTICATION AND, TO THE EXTENT APPLICABLE,** **OF OWNING NEW ALMONTY SHARES FOLLOWING THE DOMESTICATION, INCLUDING THE APPLICABILITY AND EFFECT (AND ANY POTENTIAL FUTURE CHANGES THERETO) OF ANY U.S. FEDERAL, STATE OR LOCAL OR NON-U.S. TAX LAWS AND ANY INCOME TAX TREATIES.**

**DESCRIPTION OF CAPITAL STOCK**

Unless the context provides otherwise, the following description of our capital stock assumes the consummation of the Arrangement has already occurred. The following description of New Almonty's capital stock is not complete and is subject to and qualified in its entirety by its proposed Certificate of Incorporation and By-Laws, which are attached as Exhibit F and Exhibit G, respectively, to this Circular, and by the provisions of Delaware law.

New Almonty's authorized capital stock consists of 500,000,000 New Almonty Shares, $0.00001 par value per share, and 250,000,000 Preferred Shares, $0.00001 par value per share.

Assuming the Arrangement had occurred on January 28, 2025, being the Record Date, 273,020,823 New Almonty Shares would have been issued and outstanding.

**Common Stock**

Holders of New Almonty Shares are entitled to one vote for each share held of record on all matters on which stockholders are permitted to vote. Holders of New Almonty Shares are not entitled to vote on any matters unless expressly permitted under Delaware law. The proposed By-Laws of New Almonty provide that, except as otherwise provided by law, the affirmative vote of a majority in voting power of the New Almonty Shares, present in person or represented by proxy at a meeting at which a quorum is present, shall be the act of the stockholders. Delaware law requires the affirmative vote of a majority in voting power of the outstanding shares to authorize certain extraordinary actions, such as mergers, consolidations, dissolutions or an amendment to the certification of incorporation of New Almonty. There is plurality voting for the election of directors. Upon a liquidation, New Almonty's creditors and any holders of preferred stock with preferential liquidation rights will be paid before a distribution to holders of New Almonty Shares. The holders of New Almonty Shares would be entitled to receive a pro rata amount per share of any excess distribution. Holders of New Almonty Shares have no preemptive or subscription rights. There are no conversion rights, redemption rights, sinking fund provisions or fixed dividend rights with respect to the New Almonty Shares. All outstanding New Almonty Shares are fully paid and nonassessable.

**Preferred Stock**

Pursuant to the proposed Certificate of Incorporation, New Almonty's board of directors has the authority, without further action by the Stockholders, to issue from time to time up to 250,000,000 Preferred Shares in one or more series. New Almonty's board of directors may designate the powers, preferences, rights, qualifications, limitations and restrictions of the Preferred Shares.

**Potential Anti-takeover Effect of Delaware Law, Our Certificate of Incorporation and By-Laws**

New Almonty will be subject to the "business combinations" provisions of Section 203 of the DGCL. In general, such provisions prohibit a publicly held Delaware corporation from engaging in various "business combination" transactions with any "interested stockholder" for a period of three (3) years after the time of the transaction on which the person became an "interested stockholder," unless:

● the
 corporation's board of directors approved the transaction before the "interested
 stockholder" obtained such status;

● upon
 consummation of the transaction that resulted in the stockholder becoming an "interested
 stockholder," the "interested stockholder" owned at least 85% of the voting
 stock of the corporation outstanding at the time the transaction commenced, excluding for
 purposes of determining the number of shares outstanding those shares owned (i) by persons
 who are directors and are also officers and (ii) employee stock plans in which the participants
 do not have the right to determine confidentially whether shares held subject to the plans
 will be tendered in the tender or exchange offer; or

● on
 or subsequent to such time, the business combination or merger is approved by the corporation's
 board of directors and authorized at an annual or special meeting of stockholders, and not
 by written consent, by two-thirds of the holders of the outstanding common stock not owned
 by the "interested stockholder".

A "business combination" is defined to include certain mergers, asset sales and other transactions resulting in financial benefit to a stockholder. In general, an "interested stockholder" is a person who, together with affiliates and associates, owns 15% or more of a corporation's voting stock or within three (3) years owned 15% or more of a corporation's voting stock. The statute could prohibit or delay mergers or other takeover or change in control attempts.

**Listing**

The New Almonty Shares will be listed on the TSX under the symbol "All" and on the ASX (in the form of CDIs) under a symbol that remains to be determined and will be announced at a later date.

**Transfer Agent and Registrar**

The transfer agent and registrar for the New Almonty Shares will be Computershare through its principal offices in Vancouver, British Columbia.

**INTERESTS OF CERTAIN PERSONS IN MATTERS TO BE ACTED UPON**

Other than as set forth in this Circular, none of the Company's directors or executive officers, nor any person who has held such a position since the beginning of the last completed financial year of the Company, nor any associate or affiliate of the foregoing persons, has any substantial or material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, in any matter to be acted on at the Meeting.

**INTERESTS OF INFORMED PERSONS IN MATERIAL TRANSACTIONS**

Except as disclosed in the Company's annual information form dated March 31, 2024, the Company's management information circular dated May 15, 2024, or this Circular, to the knowledge of management of the Company, no informed person or any associate or affiliate of any informed person had any material interest, direct or indirect, in any transaction since the beginning of the Company's most recently completed fiscal year ended December 31, 2024, or in any proposed transaction which has materially affected or would materially affect the Company or any of its subsidiaries.

For the above purposes, an "informed person" means (i) a director or executive officer of the Company, (ii) a director or executive officer of a person or company that is itself an informed person or subsidiary of the Company, (iii) any person or company who beneficially owns, or controls or directs, directly or indirectly, voting securities of the Company or a combination of both carrying more than 10% of the voting rights, attached to all outstanding voting securities of the Company other than voting securities held by the person or company as underwriter in the course of a distribution, and (iv) the Company after having purchased, redeemed or otherwise acquired any of its securities, for so long as it holds any of its securities.

**INDEBTEDNESS OF DIRECTORS, EXECUTIVE OFFICERS AND SENIOR OFFICERS**

No director, executive officer, employee or former director, executive officer or employee of the Company or any of its subsidiaries, or any of their associates or other member of management of the Company, was indebted to the Company at any time since the beginning of the most recently completed fiscal year ended December 31, 2024 of the Company or as at the date hereof, other than "routine indebtedness" as defined in applicable securities laws.

**AUDITOR**

The Company's auditor is Zeifmans LLP, 201 Bridgeland Avenue, Toronto, ON, M6A 1Y7. Zeifmans LLP was first appointed as the Company's auditor effective October 1, 2021.

**ADDITIONAL INFORMATION**

We file periodic reports and other documents with the Canadian securities regulatory authorities. The documents we file with the Canadian securities regulatory authorities are available on SEDAR+ at <u>www.sedarplus.ca</u>. Additional information about us is also available at that website. Persons wanting copies of these documents, including documents incorporated herein by reference, financial statements and management's discussion and analysis, or any other reports we have filed with the Canadian securities regulatory authorities may obtain them free of charge by request to the Corporate Secretary of the Company at the following address:

Almonty Industries Inc.

100 King Street West

Suite 5700

Toronto, Ontario

M5X 1C7

Phone: (647) 438-9766

Financial information is provided in the Company's comparative annual financial statements and management's discussion and analysis for the year ended December 31, 2023 and for the three and nine months ended September 30, 2024 and 2023.

**SHAREHOLDER PROPOSALS**

The CBCA permits certain eligible Shareholders to submit shareholder proposals to Almonty for inclusion in a management information circular for an annual meeting of Shareholders.

Similar provisions will apply under the By-Laws of New Almonty, assuming the Domestication is completed. If the Domestication is completed, then shareholder proposals for the next annual meeting of New Almonty must be received: (x) not later than the close of business on the 90<sup>th</sup> day, nor earlier than the close of business on the 120<sup>th</sup> day, in advance of the anniversary of the previous year's annual meeting if such annual meeting is to be held on a day which is not more than 30 days in advance of the anniversary of the previous year's annual meeting or not later than 60 days after the anniversary of the previous year's annual meeting; and (y) with respect to any other annual meeting of stockholders, including in the event that no annual meeting was held in the previous year, not earlier than the close of business on the 120<sup>th</sup> day prior to the annual meeting and not later than the close of business on the later of: (1) the 90<sup>th</sup> day prior to the annual meeting, and (2) the close of business on the tenth day following the first date of Public Disclosure of the date of such meeting. "Public Disclosure" shall mean a disclosure made in a press release reported by the Dow Jones News Services, The Associated Press, or a comparable national news service or in a document filed by New Almonty with the U.S. Securities and Exchange Commission pursuant to Section 13, 14, or 15(d) of the Exchange Act.

**DIRECTORS' APPROVAL**

The contents and the sending of this Circular have been approved by the Board.

January 31, 2025

<u>*(signed) "Lewis Black"*</u> <br> Lewis Black <br> Chairman of the Board of Directors, President and Chief Executive Officer

**Exhibit A**

**Arrangement Resolution**

**SPECIAL RESOLUTION OF THE SHAREHOLDERS OF ALMONTY INDUSTRIES INC**.

**BE IT RESOVLED AS A SPECIAL RESOLUTION THAT:**

&nbsp;&nbsp;&nbsp;&nbsp;1. the
 arrangement (the "**Arrangement**") pursuant to Section 192 of the *Canada Business Corporations Act* (the "**Act** "), substantially as set forth
 in the plan of arrangement attached as Exhibit B to the management information circular of
 Almonty Industries Inc. (the "**Company**") dated January 31, 2025 (the "**Circular** "),
 involving the Company and the holders of common shares in the capital of the Company (the
 "**Shareholders** "), and all transactions contemplated thereby, including
 the approval of the certificate of incorporation and by-laws adopted by the board of directors
 of the Company (the "**Board**") in place of the articles of incorporation
 and by-laws adopted under the Act and attached as Exhibit F and Exhibit G to the Circular,
 respectively, are hereby approved;

2. notwithstanding
 the approval by the Shareholders of this special resolution and/or the approval of the Arrangement
 by the Ontario Superior Court of Justice (Commercial List), the Board, without further notice
 to or approval of the Shareholders, may decide not to proceed with the Arrangement and to
 revoke this special resolution at any time prior to the Arrangement becoming effective pursuant
 to the provisions of the Act; and

3. any
 of the officers or directors of the Company be and is hereby authorized for and on behalf
 of the Company (whether under its corporate seal or otherwise) to execute and deliver articles
 of arrangement and all other documents and instruments and to take all such other actions
 as such officer or director may deem necessary or desirable to implement this resolution
 and the matters authorized hereby, including the transactions required by the Arrangement,
 such determinations to be conclusively evidenced by the execution and delivery of such documents
 and other instruments or the taking of any of such actions.

**Exhibit B**

**Plan of Arrangement**

**PLAN OF ARRANGEMENT**

**UNDER SECTION 192 OF THE**

**CANADA BUSINESS CORPORATIONS ACT**

**ARTICLE 1**

**INTERPRETATION**

**1.1** In
 this Plan of Arrangement, the following terms shall have the respective meanings set out
 below and grammatical variations of such terms shall have corresponding meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Almonty** "
 means Almonty Industries Inc., a corporation existing under the laws of Canada;

(b) "**Applicable Laws**" in the context that refers to one or more Persons, means any domestic or
 foreign, national, federal, state, provincial, municipal, regional or local law (statutory,
 common, or otherwise), constitution, treaty, convention, ordinance, code, rule, regulation,
 order, injunction, judgment, decree, ruling or other similar requirement enacted, adopted,
 promulgated, or applied by a Governmental Authority, that is binding upon or applicable to
 such Person or Persons or its business or their business, undertaking, property or securities
 and, to the extent that they have the force of law, policies, guidelines, notices and protocols
 of any Governmental Authority;

(c) "**Arrangement** ",
 "**herein** ", "**hereof** ", "**hereunder** "
 and similar expressions mean and refer to the arrangement pursuant to section 192 of the
 CBCA on the terms and subject to the conditions set out in this Plan of Arrangement, as supplemented,
 modified or amended, and not to any particular article, section or portion hereof;

(d) "**Arrangement Resolution**" means the special resolution approving this Plan of Arrangement to
 be considered by the Shareholders at the Meeting;

(e) "**Articles of Arrangement**" means the articles of arrangement in respect of the Arrangement
 required under Subsection 192(6) of the CBCA to be sent to the Director after the Final Order
 has been made;

(f) "**Business Day**" means a day other than a Saturday, Sunday or a statutory holiday in the Province
 of Ontario or Dover, Delaware;

(g) "**CBCA** "
 means the *Canada Business Corporations Act*, R.S.C. 1985, c. C-44;

(h) "**Certificate of Arrangement**" means the Certificate of Arrangement issued by the Director pursuant
 to subsection 192(7) of the CBCA in respect of the Articles of Arrangement, giving effect
 to the Arrangement;

(i) "**Certificate of Conversion**" means the certificate of conversion from a non-Delaware corporation
 to a Delaware corporation pursuant to Section 265 of the DGCL, as part of the Arrangement;

(j) "**Common Shares**" means the common shares in the capital of Almonty;

(k) "**Continuance** "
 means the conversion of Almonty from a corporation existing under the CBCA to a corporation
 existing in the State of Delaware and subject to all of the provisions of the DGCL pursuant
 to the provisions of Section 265 of the DGCL;

(l) "**Court** "
 means the Ontario Superior Court of Justice (Commercial List);

(m) "**DGCL** "
 means the General Corporation Law of the State of Delaware;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Director** "
 means the Director appointed under section 260 of the CBCA;

(o) "**Dissent Rights**" means the right of a registered Shareholder to dissent with respect to
 the Arrangement Resolution and to be paid by Almonty the fair value of the Common Shares
 in respect of which the Shareholder dissents, granted pursuant to the Interim Order, all
 in accordance with section 190 of the CBCA, as modified by the Interim Order, the Final Order
 and Article 5 hereof;

(p) "**Dissenting Shareholder**" means a registered Shareholder who has duly and validly exercised
 its Dissent Rights in strict compliance with section 190 of the CBCA, as modified by the
 Interim Order, the Final Order and Article 5 hereof, and who has not withdrawn or been deemed
 to have withdrawn such exercise of Dissent Rights;

(q) "**Effective Date**" means the date shown on the Certificate of Arrangement giving effect to the
 Arrangement;

(r) "**Effective Time**" means 12:01 a.m. (Toronto time) on the Effective Date;

(s) "**Final Order**" means a final order of the Court in a form acceptable to Almonty in respect
 of the Arrangement pursuant to subsection 192(4)(e) of the CBCA, as such order may be affirmed,
 amended or modified by any court of competent jurisdiction;

(t) "**Governmental Authority**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any
 international, multinational, national, federal, provincial, state, regional, municipal,
 local or other government, governmental or public department, ministry, central bank, court,
 tribunal, arbitral body, commission, commissioner, board, bureau or agency, domestic or foreign;

(ii) any
 subdivision, agency, agent or authority of any of the foregoing; or

(iii) any
 quasi-governmental or private body, including any tribunal, commission, regulatory agency,
 stock exchange or self-regulatory organization, exercising any regulatory, expropriation
 or taxing authority under or for the account of any of the foregoing including, for greater
 certainty, the Toronto Stock Exchange, the Australian Securities Exchange, and the applicable
 securities commissions or similar securities regulatory authority of a province, state or
 territory of Canada or the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "**Interim Order**" means the interim order of the Court pursuant to subsection 192(4)(c) of
 the CBCA in respect of the Arrangement, as such order may be affirmed, amended or modified
 by any court of competent jurisdiction;

(v) "**Meeting** "
 means the special meeting of Shareholders to consider, among other things, the Arrangement
 Resolution and related matters, and any adjournments or postponements thereof;

(w) "**New Almonty**" means Almonty Industries Inc., as converted to a corporation existing
 under the DGCL;

(x) "**New Almonty Shares**" means the shares of common stock of New Almonty;

(y) "**Person** "
 includes an individual, limited or general partnership, limited liability company, limited
 liability partnership, trust, joint venture, association, body corporate, unincorporated
 organization, trustee, executor, administrator, legal representative, government (including
 any Governmental Authority) or any other entity, whether or not having legal status;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "**Plan of Arrangement**" means this plan of arrangement under section 192 of the CBCA, and
 any amendments or variations to this plan of arrangement made in accordance with its terms
 or at the direction of the Court in the Final Order, provided that such amendments or variations
 are acceptable to Almonty;

(aa) "**Shareholders** "
 means the registered or beneficial, as applicable, holders of issued and outstanding Common
 Shares (or New Almonty Shares, as the context requires);

(bb) "**U.S. Securities Act**" means the United States Securities Act of 1933, as amended.

**1.2** The
 division of this Plan of Arrangement into articles and sections and the insertion of headings
 are for convenience of reference only and shall not affect the construction or interpretation
 of this Plan of Arrangement.

**1.3** Unless
 reference is specifically made to some other document or instrument, all references herein
 to articles and sections are to articles and sections of this Plan of Arrangement.

**1.4** Unless
 the context otherwise requires, words importing the singular number shall include the plural
 and vice versa; and words importing any gender shall include all genders.

**1.5** In
 the event that the date on which any action is required to be taken hereunder by any of the
 parties is not a Business Day in the place where the action is required to be taken, such
 action shall be required to be taken on the next succeeding day which is a Business Day in
 such place.

**1.6** References
 in this Plan of Arrangement to any statute or sections thereof shall include such statute
 as amended or substituted and any regulations promulgated thereunder from time to time in
 effect.

**ARTICLE 2**

**EFFECT OF THE ARRANGEMENT**

**2.1** The
 following is intended only to be a general statement of the purpose of the Arrangement and
 is qualified in its entirety by the specific provisions of this Plan of Arrangement. The
 purpose of the Arrangement is to effect the Continuance pursuant to which each one issued
 and outstanding Common Share will become and remain as one New Almonty Share.

**2.2** This
 Plan of Arrangement, upon the filing of the Articles of Arrangement and the issuance of the
 Certificate of Arrangement, will become effective at the Effective Time and be binding on:
 (i) the Shareholders, including Dissenting Shareholders; (ii) Almonty; (iii) New Almonty;
 and (iv) all other Persons, including without limitation the registrar and transfer agent
 in respect of the Common Shares, all without any further act or formality required on the
 part of any Person.

**2.3** The
 Articles of Arrangement and the Certificate of Arrangement, if any, shall be filed and issued,
 respectively, with respect to this Arrangement in its entirety. The Certificate of Arrangement
 shall be conclusive evidence that the Arrangement has become effective and that each of the
 provisions of Article 3 hereof has become effective. If no Certificate of Arrangement is
 required to be issued by the Director pursuant to Section 192 of the CBCA, the Arrangement
 shall become effective on the date the Articles of Arrangement are filed with the Director
 pursuant to Section 192 of the CBCA.

**ARTICLE 3**

**ARRANGEMENT**

**3.1** On
 the Effective Date and commencing at the Effective Time, each of the events and transactions
 set out below shall occur and shall be deemed to occur in the following order without any
 further act or formality:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Continuance shall be effective and Almonty shall be converted into a corporation existing
 under the DGCL under the name Almonty Industries Inc.;

(b) the
 registered address of New Almonty shall be changed to 108 Lakeland Ave., Kent County, Dover,
 DE 19901;

(c) each
 Shareholder's Common Shares shall become and remain New Almonty Shares.

**3.2** For
 the purposes of the Continuance, the application to domesticate New Almonty to the State
 of Delaware shall be made on the following basis:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Certificate of Conversion, certificate of incorporation and by-laws of New Almonty shall
 be in the forms attached as Exhibit E, Exhibit F and Exhibit G, respectively, to the management
 information circular of Almonty delivered to Shareholders in connection with the Meeting;
 and

(b) the
 authorized capital of New Almonty shall be 750,000,000 shares of capital stock, consisting
 of 500,000,000 New Almonty Shares, $0.00001 par value per share, and 250,000,000 shares of
 preferred stock, $0.00001 par value per share.

**3.3** New
 Almonty Shares "offered" (within the meaning of applicable U.S. securities laws)
 to the Shareholders in connection with the Arrangement have not been and will not be registered
 under the U.S. Securities Act or applicable state securities laws. Such New Almonty Shares
 will instead be "offered" in reliance upon the exemption provided by Subsection
 3(a)(10) of the U.S. Securities Act and applicable exemptions under state securities laws.

**ARTICLE 4**

**CERTIFICATES**

**4.1** From
 and after the Effective Time, certificates formerly representing Common Shares shall, automatically
 and without the necessity of presenting the same for exchange, represent the New Almonty
 Shares contemplated in Article 3.

**ARTICLE 5**

**DISSENTING SHAREHOLDERS**

**5.1** Each
 registered Shareholder may exercise Dissent Rights with respect to the Common Shares held
 by such registered Shareholder in connection with the Arrangement pursuant to and in the
 manner set forth in section 190 of the CBCA, as modified by the Interim Order, the Final
 Order and this Article 5.

**5.2** A
 registered Shareholder may dissent only with respect to all Common Shares held by such Shareholder,
 or on behalf of any one beneficial holder in respect of all the Common Shares owned by such
 beneficial holder, and which are registered in the Dissenting Shareholder's name.

**5.3** A
 Dissenting Shareholder that has validly exercised Dissent Rights shall, at the Effective
 Time, cease to have any rights as a holder of Common Shares and shall be entitled only to
 be paid the fair value of such holder's Common Shares. A Dissenting Shareholder who
 for any reason is not entitled to be paid the fair value of such holder's Common Shares
 shall be deemed to have participated in the Arrangement on the same terms as a non-dissenting
 holder of Common Shares pursuant to Article 3, notwithstanding the provisions of Section
 190 of the CBCA.

**5.4** The
 fair value of the Common Shares for the purposes of Section 5.3 shall be determined as of
 the close of business on the last Business Day before the day on which the Arrangement Resolution
 is approved by the Shareholders at the Meeting.

**5.5** For
 greater certainty, in addition to any other restrictions in Section 190 of the CBCA, no Shareholder
 who has voted in favour of the Arrangement Resolution shall be entitled to dissent with respect
 to the Arrangement.

**5.6** In
 no case shall Almonty or any other Person be required to recognize Dissenting Shareholders
 as holders of the Common Shares in respect of which Dissent Rights have been validly exercised
 after the Effective Time, and the names of the holders of such Common Shares shall be deleted
 from the register of holders of Common Shares as at the Effective Time.

**5.7** In
 no circumstances shall Almonty or any other Person be required to recognize a Person exercising
 Dissent Rights, unless such Person is the registered Shareholder of those Common Shares in
 respect of which such rights are sought to be exercised. For greater certainty, holders of
 options to purchase Common Shares, Common Share purchase warrants, Almonty's restricted
 share units, or debentures convertible into Common Shares shall not be entitled to exercise
 Dissent Rights in respect of such options, warrants, restricted share units, or debentures.

**5.8** Almonty
 shall be entitled to withhold from any amount required to be paid to a Dissenting Shareholder
 the amount of any taxes Almonty reasonably determines are required to be withheld by it,
 and shall remit any such withheld amounts to the appropriate Governmental Authority as and
 when required in accordance with Applicable Laws.

**ARTICLE 6**

**GENERAL**

**6.1** From
 and after the Effective Time, this Plan of Arrangement shall take precedence and priority
 over any and all Common Shares issued prior to the Effective Time, and the rights and obligations
 of the registered holders of Common Shares, Almonty, and any trustee or transfer agent in
 relation thereto, and any other Person having any right, title or interest in or to Common
 Shares, shall be solely as provided in this Plan of Arrangement.

**6.2** Almonty
 may amend this Plan of Arrangement at any time and from time to time prior to the Effective
 Time, provided that each such amendment must be: (i) approved by the Court if made following
 the Meeting; and (ii) communicated to the Shareholders, if and as required by the Court.

**6.3** Any
 amendment to this Plan of Arrangement may be proposed by Almonty at any time prior to or
 at the Meeting with or without any other prior notice of communication, except as otherwise
 required by Applicable Laws, and if so proposed and accepted by the Shareholders voting at
 the Meeting (other than as may be required under the Interim Order), shall become part of
 this Plan of Arrangement for all purposes.

**ARTICLE 7**

**FURTHER ASSURANCES**

**7.1** Almonty
 and New Almonty shall make, do and execute, or cause to be made, done and executed, all such
 further acts, deeds, agreements, transfers, assurances, instruments or documents as may reasonably
 be required by either of them in order to further document or evidence any of the transactions
 or events set out herein. Almonty may determine not to implement this Plan of Arrangement,
 notwithstanding the passing of the Arrangement Resolution and the receipt of the Final Order.

**Exhibit C**

**Interim Order**

Court File No.: CV-25-00735699-00CL

**ONTARIO**

**SUPERIOR COURT OF JUSTICE**

**(COMMERCIAL LIST)**

THE HONOURABLE JUSTICE PENNY)))) FRIDAY, THE 31st DAY OF JANUARY, 2025

**IN THE MATTER OF** an application under section 192 of the *Canada Business Corporations Act*, R.S.C. 1985, c. C-44 and Rules 14.05(2) and 14.05(3) of the *Rules of Civil Procedure*

 

**AND IN THE MATTER OF** a proposed arrangement involving Almonty Industries Inc.

**ALMONTY INDUSTRIES INC.**

Applicant

**INTERIM ORDER**

**THIS MOTION** made by the Applicant, Almonty Industries Inc. (**Almonty**), for an interim order for advice and directions pursuant to section 192 of the *Canada Business Corporations Act*, R.S.C. 1985, c. C-44, as amended, (the **CBCA**) was heard this day via videoconference.

**ON READING** the Notice of Motion, the Notice of Application issued on January 27, 2025, and the affidavit of Mark Trachuk, affirmed on January 28, 2025 (the **Interim Affidavit**), including the plan of arrangement (**Plan of Arrangement**) in respect of the proposed arrangement (the **Arrangement**), which is attached as Exhibit B to the draft management information circular of Almonty (the **Information Circular**), and on hearing the submissions of counsel for Almonty, and on being advised that the Director appointed under the CBCA (the **Director**) does not consider it necessary to appear.

**AND UPON** being advised that it is the intention of Almonty to rely upon Section 3(a)(10) of the United States Securities Act of 1933, as amended, and applicable exemptions under state securities laws, in connection with New Almonty Shares to be offered (within the meaning of applicable U.S. securities laws) to Shareholders (as defined below) pursuant to the Arrangement, based on the Court's approval of the Arrangement, which through the issuance of the Final Order will constitute its determination of the fairness of the terms and conditions, both procedurally and substantively, of the Arrangement for Shareholders participating in the Arrangement.

**Definitions**

1. **THIS COURT ORDERS** that all definitions used in this Interim Order shall have the meanings ascribed thereto in the Information Circular or otherwise as specifically defined herein.

**The Meeting**

2. **THIS COURT ORDERS** that Almonty is permitted to call, hold and conduct a special meeting (the **Meeting**) of the holders of voting common shares in the capital of Almonty (**Common Shares**, and the holders thereof, the **Shareholders**), to be held in the North Boardroom at Suite 300 – 1055 W. Hastings Street, Vancouver, British Columbia on February 27, 2025 at 10:00 a.m. (Vancouver time) in order for the Shareholders to consider and, if determined advisable, to pass, with or without variation, a special resolution approving the Arrangement and the Plan of Arrangement (collectively, the **Arrangement Resolution**).

3. **THIS COURT ORDERS** that the Meeting shall be called, held and conducted in accordance with the CBCA, the Information Circular, the notice of special meeting of Shareholders, which accompanies the Information Circular (the **Notice of Meeting**), the articles and by-laws of Almonty in effect at the relevant time, and the rulings and directions of the Chairperson at the Meeting, subject to what may be provided hereafter and subject to further order of this Court.

4. **THIS COURT ORDERS** that the record date (the **Record Date**) for determination of the Shareholders entitled to notice of, and to vote at, the Meeting shall be January 28, 2025. Only Shareholders whose names have been entered on the applicable register of Common Shares at the close of business on the Record Date will be entitled to receive notice of the Meeting and to vote at the Meeting.

5. **THIS COURT ORDERS** that the only persons entitled to attend or speak at the Meeting shall be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) the
 Shareholders or their respective proxyholders;

b) the
 officers, directors, auditors and advisors of Almonty;

c) the
 scrutineers for the Meeting and their representatives;

d) the
 Director; and

e) other
 persons who may receive the permission of the Chairperson of the Meeting.

6. **THIS COURT ORDERS** that Almonty may transact such other business at the Meeting as is contemplated in the Information Circular, including amendments thereto, or as may otherwise be properly before the Meeting or any postponement or adjournment thereof.

**Chairperson and Quorum**

7. **THIS COURT ORDERS** that the Chairperson of the Meeting shall be the Chief Financial Officer of Almonty, Mark Gelmon, or such other person as shall be determined by Almonty. In addition, a quorum at the Meeting shall be present if the holders of 25% of the Common Shares entitled to vote at the Meeting are present in person or represented by proxy, provided that a quorum shall not be less than two persons. A quorum need not be present throughout the Meeting provided a quorum is present at the opening of the Meeting.

**Amendments to the Arrangement and Plan of Arrangement**

8. **THIS COURT ORDERS** that Almonty is authorized to make, subject to the terms of the Plan of Arrangement, and paragraph 9, below, such amendments, modifications or supplements to the Arrangement and the Plan of Arrangement as it may determine without any additional notice to the Shareholders, or others entitled to receive notice under paragraphs 12 and 13 hereof, provided same are to correct clerical errors, or would not, if disclosed, reasonably be expected to affect a Shareholder's decision to vote, or are authorized by subsequent Court order, and the Arrangement and Plan of Arrangement, as so amended, modified or supplemented shall be the Arrangement and Plan of Arrangement to be submitted to the Shareholders at the Meeting and shall be the subject of the Arrangement Resolution, without need to return to this Court to amend this Interim Order. Amendments, modifications or supplements may be made following the Meeting, but shall be subject to review and, if appropriate, further direction by this Court at the hearing for the final approval of the Arrangement.

9. **THIS COURT ORDERS** that, if any amendments, modifications or supplements to the Arrangement or Plan of Arrangement made after initial notice is provided as contemplated in paragraph 12 herein, which would, if disclosed, reasonably be expected to affect a Shareholder's decision to vote for or against the Arrangement Resolution, notice of such amendment, modification or supplement shall be distributed, subject to further order of this Court, by press release, newspaper advertisement, prepaid ordinary mail, or by the method most reasonably practicable in the circumstances, as Almonty may determine.

**Amendments to the Information Circular**

10. **THIS COURT ORDERS** that Almonty is authorized to make such amendments, revisions and/or supplements to the draft Information Circular as it may determine and the Information Circular, as so amended, revised and/or supplemented, shall be the Information Circular to be distributed in accordance with paragraphs 12 and 13.

**Adjournments and Postponements**

11. **THIS COURT ORDERS** that Almonty, if it deems advisable, is specifically authorized to adjourn or postpone the Meeting on one or more occasions and for such period or periods of time as Almonty deems advisable, without the necessity of first convening the Meeting or first obtaining any vote of the Shareholders respecting the adjournment or postponement, and notice of any such adjournment or postponement shall be given by such method as Almonty may determine is appropriate in the circumstances. This provision shall not limit the authority of the Chairperson of the Meeting in respect of adjournments and postponements. If the Meeting is adjourned or postponed in accordance with this Interim Order, the references to the Meeting in this Interim Order shall be deemed to be the Meeting as adjourned or postponed.

**Notice of Meeting**

12. **THIS COURT ORDERS** that, subject to the extent subsection 253(4) of the CBCA is applicable, in order to effect notice of the Meeting, Almonty shall send, or cause to be sent, the Information Circular (including the Notice of Application and this Interim Order), the Notice of Meeting, and the form of proxy or voting instruction form, along with such amendments or additional documents as Almonty may determine are necessary or desirable and are not inconsistent with the terms of this Interim Order (collectively, the **Meeting Materials**), as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) to
 the registered Shareholders at the close of business on the Record Date, at least 21 days
 prior to the date of the Meeting by one or more of the following methods:

i) by pre-paid ordinary or first class mail at the addresses of the Shareholders as they appear on the books and records of Almonty, or its registrar and transfer agent, at the close of business on the Record Date and if no address is shown therein, then the last address of the person known to the Corporate Secretary of Almonty;

ii) by delivery, in person or by recognized courier service or inter-office mail, to the address specified in (i) above; or

iii) by facsimile or electronic transmission to any Shareholder, who is identified to the satisfaction of Almonty, who requests such transmission in writing and, if required by Almonty, who is prepared to pay the charges for such transmission;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) to
 non-registered Shareholders by providing sufficient copies of the Meeting Materials to intermediaries
 and registered nominees in a timely manner, in accordance with National Instrument 54-101
 – *Communication with Beneficial Owners of Securities of a Reporting Issuer*;
 and

c) to
 the directors and auditors of Almonty, and to the Director, by delivery in person, by recognized
 courier service, by pre-paid ordinary or first class mail or by facsimile or electronic transmission,
 at least 21 days prior to the date of the Meeting;

and that compliance with this paragraph shall constitute sufficient notice of the Meeting.

13. **THIS COURT ORDERS** that in the event Almonty elects to distribute the Meeting Materials, Almonty is hereby directed to distribute the Information Circular (including the Notice of Application, and this Interim Order) (collectively, the "**Court Materials**") to the holders of Almonty's incentive stock options, restricted share units, share purchase warrants, convertible debentures or other rights to acquire voting Common Shares, by any method permitted for notice to Shareholders as set forth in paragraphs 12(a) or 12(b), above, or by email, concurrently with the distribution described in paragraph 12 of this Interim Order. Unless distributed by email, distribution to such persons shall be to their addresses as they appear on the books and records of Almonty or its registrar and transfer agent at the close of business on the Record Date.

14. **THIS COURT ORDERS** that accidental failure or omission by Almonty to give notice of the Meeting or to distribute the Meeting Materials or Court Materials to any person entitled by this Interim Order to receive notice, or any failure or omission to give such notice as a result of events beyond the reasonable control of Almonty, or the non-receipt of such notice shall, subject to further order of this Court, not constitute a breach of this Interim Order nor shall it invalidate any resolution passed or proceedings taken at the Meeting. If any such failure or omission is brought to the attention of Almonty, it shall use its best efforts to rectify it by the method and in the time most reasonably practicable in the circumstances.

15. **THIS COURT ORDERS** that Almonty is hereby authorized to make such amendments, revisions or supplements to the Meeting Materials and Court Materials as Almonty may determine (**Additional Information**), and that notice of such Additional Information may, subject to paragraph 9, above, be distributed by press release, newspaper advertisement, pre- paid ordinary mail, or by the method most reasonably practicable in the circumstances, as Almonty may determine.

16. **THIS COURT ORDERS** that distribution of the Meeting Materials and Court Materials pursuant to paragraphs 12 and 13 of this Interim Order shall constitute notice of the Meeting and good and sufficient service of the within Application upon the persons described in paragraphs 12 and 13 and that those persons are bound by any orders made on the within Application. Further, no other form of service of the Meeting Materials or the Court Materials or any portion thereof need be made, or notice given or other material served in respect of these proceedings and/or the Meeting to such persons or to any other persons, except to the extent required by paragraph 9 above.

**Solicitation and Revocation of Proxies**

17. **THIS COURT ORDERS** that Almonty is authorized to use the proxies substantially in the form of the drafts accompanying the Information Circular, with such amendments and additional information as Almonty may determine are necessary or desirable. Almonty is authorized, at its expense, to solicit proxies, directly or through its officers, directors or employees, and through such agents or representatives as they may retain for that purpose, and by mail or such other forms of personal or electronic communication as it may determine. Almonty may waive generally, in its discretion, the time limits set out in the Information Circular for the deposit or revocation of proxies by Shareholders, if Almonty deems it advisable to do so.

18. **THIS COURT ORDERS** that registered Shareholders shall be entitled to revoke their proxies in accordance with subsection 148(4) of the CBCA (except as the procedures of that section are varied by this paragraph) provided that any instruments in writing delivered pursuant to section 148(4)(a)(i) of the CBCA: (a) may be deposited at the registered office of Almonty or with the transfer agent of Almonty as set out in the Information Circular; and (b) any such instruments must be received by Almonty or its transfer agent not later than the business day immediately preceding the Meeting (or any adjournment or postponement thereof).

**Voting**

19. **THIS COURT ORDERS** that the only persons entitled to vote in person or by proxy on the Arrangement Resolution, or such other business as may be properly brought before the Meeting, shall be those Shareholders who hold Common Shares as of the close of business on the Record Date. Illegible votes, spoiled votes, defective votes and abstentions shall be deemed to be votes not cast. Proxies that are properly signed and dated but which do not contain voting instructions shall be voted in favour of the Arrangement Resolution.

20. **THIS COURT ORDERS** that votes shall be taken at the Meeting on the basis of one vote per Common Share held. In order for the Plan of Arrangement to be implemented, subject to further Order of this Court, the Arrangement Resolution must be passed, with or without variation, at the Meeting by an affirmative vote of at least two-thirds (662/3%) of the votes cast in respect of the Arrangement Resolution at the Meeting in person or by proxy by the Shareholders. Such votes shall be sufficient to authorize Almonty to do all such acts and things as may be necessary or desirable to give effect to the Arrangement and the Plan of Arrangement on a basis consistent with what is provided for in the Information Circular without the necessity of any further approval by the Shareholders, subject only to final approval of the Arrangement by this Court.

21. **THIS COURT ORDERS** that in respect of matters properly brought before the Meeting pertaining to items of business affecting Almonty (other than in respect of the Arrangement Resolution), each Shareholder is entitled to one vote for each Common Share held.

**Dissent Rights**

22. **THIS COURT ORDERS** that each registered Shareholder shall be entitled to exercise dissent rights in connection with the Arrangement Resolution in accordance with section 190 of the CBCA (except as the procedures of that section are varied by this Interim Order and the Plan of Arrangement) (**Dissent Rights**) provided that, notwithstanding subsection 190(5) of the CBCA, any Shareholder who wishes to dissent must, as a condition precedent thereto, provide written objection to the Arrangement Resolution to Almonty, c/o Norton Rose Fulbright Canada LLP at 222 Bay Street, Suite 3000, P.O. Box 53, Toronto, Ontario, M5K 1E7, Attention: Andrew McCoomb, in the form required by section 190 of the CBCA and the Plan of Arrangement, which written objection must be received by Almonty not later than 5:00 p.m. (Vancouver time) on the business day that is two business days immediately preceding the Meeting (or any adjournment or postponement thereof), and must otherwise strictly comply with the requirements of the CBCA. For purposes of these proceedings, the "court" referred to in section 190 of the CBCA means this Court.

23. **THIS COURT ORDERS** that Almonty shall be required to offer to pay an amount equal to the fair value, determined as of the close of business on the last business day prior to approval of the Arrangement Resolution, for Common Shares held by Shareholders who duly exercise Dissent Rights, and to pay the amount to which such Shareholders may be entitled pursuant to the terms of the Plan of Arrangement.

24. **THIS COURT ORDERS** that any registered Shareholder who duly exercises such Dissent Rights set out in paragraph 21 above and who:

i) is ultimately determined by this Court to be entitled to be paid fair value for his, her or its Common Shares, shall be deemed to have transferred such Common Shares as of the Effective Time in consideration for a payment in cash equal to such fair value, and shall cease to have any rights as a Shareholder; or

ii) is for any reason (including, for clarity, any withdrawal of the dissenting Shareholder of their dissent) ultimately determined by this Court not to be entitled to be paid fair value for his, her or its Common Shares pursuant to the exercise of the Dissent Rights, shall be deemed to have participated in the Arrangement on the same basis and at the same time as any non-dissenting Shareholder;

but in no case shall Almonty or any other person be required to recognize such Shareholders, who duly exercise Dissent Rights, as holders of Common Shares at or after the date upon which the Arrangement becomes effective and the names of such Shareholders shall be deleted from Almonty's register of Shareholders at that time.

**Hearing of Application for Approval of the Arrangement**

25. **THIS COURT ORDERS** that upon approval by the Shareholders of the Plan of Arrangement in the manner set forth in this Interim Order, and provided that the directors of Almonty have not revoked their approval, Almonty may apply to this Court for final approval of the Arrangement.

26. **THIS COURT ORDERS** that distribution of the Notice of Application and the Interim Order in the Information Circular, when sent in accordance with paragraphs 12 and 13 shall constitute good and sufficient service of the Notice of Application and this Interim Order and no other form of service need be effected and no other material need be served unless a Notice of Appearance is served in accordance with paragraph 26.

27. **THIS COURT ORDERS** that any Notice of Appearance served in response to the Notice of Application, which shall include the serving party's address for service in the Province of Ontario and which shall indicate whether such party intends to support or oppose the Application or make submissions thereat, together with a summary of the position such party intends to advocate before the Court and any evidence or materials which such party intends to present to the Court, shall be served on the lawyers for Almonty as soon as reasonably practicable, and, in any event, no fewer than 5 business days before the hearing of this Application at the following address:

Norton Rose Fulbright Canada LLP

222 Bay Street, Suite 3000

P.O. Box 53

Toronto, ON M5K 1E7

Attn: Andrew

<u>McCoomb andrew.mccoomb@nortonrosefulbright.com</u>

Lawyers for Almonty

28. **THIS COURT ORDERS** that, subject to further order of this Court, the only persons entitled to appear and be heard at the hearing of the within Application shall be:

i) Almonty;

ii) the Director; and

iii) any person who has filed a Notice of Appearance herein in accordance with the Notice of Application, this Interim Order and the *Rules of Civil Procedure*.

29. **THIS COURT ORDERS** that any materials to be filed by Almonty in support of the within Application for final approval of the Arrangement may be filed up to one day prior to the hearing of the Application without further order of this Court.

30. **THIS COURT ORDERS** that in the event the within Application for final approval does not proceed on the date set forth in the Notice of Application, and is adjourned, only those persons who served and filed a Notice of Appearance in accordance with paragraph 26 shall be entitled to be given notice of the adjourned date.

**Service and Notice**

31. **THIS COURT ORDERS** that Almonty and its counsel are at liberty to serve or distribute this Order, any other materials and orders as may be reasonably required in these proceedings, including any notices, or other correspondence, by forwarding true copies thereof by electronic message to Almonty's securityholders, creditors or other interested parties and their advisors. For greater certainty, any such distribution or service shall be deemed to be in satisfaction of a legal or juridical obligation, and notice requirements within the meaning of clause 3(c) of the *Electronic Commerce Protection Regulations*, Reg. 81000-2-175 (SOR/DORS).

**Precedence**

32. **THIS COURT ORDERS** that, to the extent of any inconsistency or discrepancy between this Interim Order and the terms of any instrument creating, governing or collateral to the Common Shares, incentive stock options, restricted share units, share purchase warrants, convertible debentures or other rights to acquire voting Common Shares of Almonty, or the articles or by-laws of Almonty, this Interim Order shall govern.

**Extra-Territorial Assistance**

33. **THIS COURT** seeks and requests the aid and recognition of any court or any judicial, regulatory or administrative body in any province of Canada and any judicial, regulatory or administrative tribunal or other court constituted pursuant to the Parliament of Canada or the legislature of any province and any court or any judicial, regulatory or administrative body of the United States or other country to act in aid of and to assist this Court in carrying out the terms of this Interim Order.

**Variance**

34. **THIS COURT ORDERS** that Almonty shall be entitled to seek leave to vary this Interim Order upon such terms and upon the giving of such notice as this Court may direct.

![](ex4-7_002.jpg)

**Exhibit D**

**Notice of Application**

![](ex4-7_003.jpg)

Court File No.:

***ONTARIO***

**SUPERIOR COURT OF JUSTICE**

**(COMMERCIAL LIST)**

IN THE MATTER OF AN APPLICATION UNDER SECTION 192 OF THE *CANADA BUSINESS CORPORATIONS ACT*, R.S.C. 1985, C. C-44 AND RULES 14.05(2) AND 14.05(3) OF THE RULES OF CIVIL PROCEDURE

AND IN THE MATTER OF a proposed arrangement involving ALMONTY INDUSTRIES INC.

ALMONTY INDUSTRIES INC.

Applicant

**NOTICE OF APPLICATION**

TO THE RESPONDENTS:

A LEGAL PROCEEDING HAS BEEN COMMENCED by the applicant. The claim made by the applicant appears on the following page.

THIS APPLICATION will come on for a hearing (*choose one of the following*)

☐ In writing

☒ In person

☐ By telephone conference

☐ By video conference

before a judge presiding over the Commercial List on a date and at a time to be determined at 330 University Avenue, Toronto, Ontario.

IF YOU WISH TO OPPOSE THIS APPLICATION, to receive notice of any step in the application or to be served with any documents in the application, you or an Ontario lawyer acting for you must forthwith prepare a notice of appearance in Form 38A prescribed by the *Rules of Civil Procedure*, serve it on the applicant's lawyer or, where the applicant does not have a lawyer, serve it on the applicant, and file it, with proof of service, in this court office, and you or your lawyer must appear at the hearing.

IF YOU WISH TO PRESENT AFFIDAVIT OR OTHER DOCUMENTARY EVIDENCE TO THE COURT OR TO EXAMINE OR CROSS-EXAMINE WITNESSES ON THE APPLICATION,

you or your lawyer must, in addition to serving your notice of appearance, serve a copy of the evidence on the applicant's lawyer or, where the applicant does not have a lawyer, serve it on the applicant, and file it, with proof of service, in the court office where the application is to be heard as soon as possible, but not fewer than 4 days before the hearing.

![](ex4-7_004.jpg)

IF YOU FAIL TO APPEAR AT THE HEARING, JUDGMENT MAY BE GIVEN IN YOUR ABSENCE AND WITHOUT FURTHER NOTICE TO YOU. IF YOU WISH TO OPPOSE THIS APPLICATION BUT ARE UNABLE TO PAY LEGAL FEES, LEGAL AID MAY BE AVAILABLE TO YOU BY CONTACTING A LOCAL LEGAL AID OFFICE.

---

| | | |
|:---|:---|:---|
| Date: January 27, 2025 | Issued by | |
|  |  | Local Registrar |
|  | Address of court office: | Superior Court of Justice<br> 330 University Avenue<br> Toronto, Ontario M5G 1R7 |

---

---

| | |
|:---|:---|
| TO: | ALL HOLDERS OF COMMON SHARES OF ALMONTY INDUSTRIES INC. |
| AND TO: | THE DIRECTORS OF ALMONTY INDUSTRIES INC. |
| AND TO: | THE AUDITOR OF ALMONTY INDUSTRIES INC. |
| AND TO: | THE DIRECTOR UNDER THE *CANADA BUSINESS CORPORATIONS ACT* |

---

![](ex4-7_004.jpg) 

**APPLICATION**

---

| | |
|:---|:---|
| 1 | The Applicant, Almonty Industries Inc. (**Almonty**), makes this Application for: |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an
 interim order (the **Interim Order**) for advice and directions pursuant to subsection
 192(4) of the *Canada Business Corporations Act*, R.S.C. 1985, c. C- 44, as amended
 (the **CBCA**), with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a
 special meeting (the **Meeting**) of holders (**Shareholders**) of common shares of
 Almonty (**Common Shares**) in order for Shareholders to, among other things, consider
 and, if determined advisable, pass a special resolution authorizing, adopting and approving,
 with or without variation, the Arrangement (as defined below); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 approval of the Arrangement by the Shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) an
 order (the **Final Order**) pursuant to subsection 192(4) of the CBCA approving a plan
 of arrangement involving Almonty and its Shareholders (the **Arrangement**);

(c) an
 order abridging the time for the service and filing of this Notice of Application and the
 Application Record, and validating such service or dispensing with service, if necessary;

(d) such
 further orders or directions as are required for the administration of the Arrangement; and

(e) such
 other relief as counsel for the Applicant may request and this Honourable Court deems just.

2 The grounds for the Application are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Almonty
 is a corporation validly continued under and subject to the CBCA, and its head and registered
 office is in Toronto. It is a reporting issuer and its Common Shares are listed on the Toronto
 Stock Exchange (**TSX**) and CHESS Depositary Interests representing its Common Shares
 are listed on the Australian Securities Exchange, in each case under the symbol "AII".
 It is a natural resource company engaged in the acquisition, exploration, development, mining
 and milling of tungsten ores and related minerals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Arrangement is an "arrangement" within the meaning of s. 192(1) of the CBCA and
 is being proposed for a *bona fide* business purpose;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all
 pre-conditions to the approval of the Arrangement by the Court will have been satisfied prior
 to the hearing of this Application;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 Arrangement is in the best interests of Almonty and the Shareholders, and is put forward
 in good faith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) it
 is not practicable to effect the transactions contemplated by the Arrangement under any provision
 of the CBCA other than section 192;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Almonty
 is not insolvent within the meaning of subsection 192(2) of the CBCA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the
 Shareholders will not be adversely affected by the Arrangement and the terms and conditions
 of the Arrangement, both procedurally and substantively, will be fair to the Shareholders
 participating in the Arrangement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) all
 statutory requirements under the CBCA have been or will have been satisfied prior to the
 hearing of the Application;

![](ex4-7_004.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 directions set out and the approvals required pursuant to the Interim Order will be followed
 and obtained by the return date of this Application for final approval;

(j) in
 accordance with the Interim Order attached as a schedule to the Notice of Special Meeting
 and Management Information Circular to be delivered to the Shareholders, this Notice of Application
 will be sent to all Shareholders;

(k) to
 the extent any of the Shareholders are resident outside of Ontario, they will be served at
 their addresses as they appear on Almonty's books and records pursuant to Rule 17.02(n)
 of the *Rules of Civil Procedure*, R.R.O., Reg. 194, as amended, and the terms of any
 Interim Order for advice and directions granted by this Honourable Court;

(l) this
 Application has a material connection to the Toronto Region in that, among other things,
 (i) Almonty is a CBCA corporation and its head office and registered office is located in
 Toronto; (ii) the Common Shares are listed for trading on the TSX; and (iii) Almonty's
 principal regulator under applicable Canadian securities laws is the Ontario Securities Commission;

(m) if
 granted, the Final Order will serve as the basis of a claim to an exemption from the registration
 requirements of the United States Securities Act of 1933, as amended, pursuant to Section
 3(a)(10) thereof, and applicable exemptions under state securities laws, with respect to
 the securities to be offered (within the meaning of applicable U.S. securities laws) pursuant
 to the Arrangement, and will reflect this Honourable Court's determination of the fairness
 of the terms and conditions, both procedurally and substantively, of the Arrangement for
 Shareholders participating in the Arrangement;

(n) National
 Instrument 54-101 – *Communication with Beneficial Owners of Securities of a Reporting Issuer*;

(o) the
 CBCA, including section 192 thereof;

(p) rules
 1.04, 1.05, 2.03, 3.02, 14.05(2), 14.05(3), 16.04, 16.08, 17.02, 37, 38 and 39 of the *Rules of Civil Procedure*, R.R.O., Reg. 194, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) such
 further and other grounds as counsel for Almonty may advise and this Honourable Court may
 permit.

3 The following documentary evidence will be used at the hearing of the application:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an
 affidavit from a representative of Almonty and the exhibits thereto, outlining the basis
 for the Interim Order;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) one
 or more additional affidavits, with the exhibits thereto, outlining the basis for the Final
 Order, and reporting as to compliance with the Interim Order and the results of the Meeting;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) such
 further and other material as counsel for Almonty may advise and this Honourable Court may
 permit.

---

| | |
|:---|:---|
| January 27, 2025 | **NORTON ROSE FULBRIGHT CANADA LLP** |
|  | Suite 3000 |
|  | 222 Bay Street, P.O. Box 53 |
|  | Toronto, Ontario M5K 1E7 |
|  | **Andrew McCoomb** LSO #: 61618B |
|  | andrew.mccoomb@nortonrosefulbright.com |
|  | Tel: 416.216.4039 |
|  | Lawyers for the Applicant |

---

![](ex4-7_004.jpg)

---

| | |
|:---|:---|
| IN THE MATTER OF AN APPLICATION UNDER SECTION 192 OF THE *CANADA BUSINESS CORPORATIONS ACT*, R.S.C. 1985, C. C-44 AND RULES 14.05(2) AND 14.05(3) OF THE RULES OF CIVIL PROCEDURE<br>AND IN THE MATTER OF a proposed arrangement involving ALMONTY INDUSTRIES INC. | Court File No.: |

---

---

| |
|:---|
| ***ONTARIO*** |
| **SUPERIOR COURT OF JUSTICE** |
| **(COMMERCIAL LIST)** |
| Proceeding commenced at Toronto |
| **NOTICE OF APPLICATION** |
| **NORTON ROSE FULBRIGHT CANADA LLP** |
| Suite 3000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;222 Bay Street, P.O. Box 53<br>|
| Toronto, Ontario M5K 1E7 |
| **Andrew McCoomb** LSO #: 61618B |
| Tel: 416.216.4039 |
| Lawyers for the Applicant |

---

**Exhibit E**

**Form of Certificate of Conversion**

STATE OF DELAWARE

CERTIFICATE OF CONVERSION

FROM A NON-DELAWARE CORPORATION TO A

DELAWARE CORPORATION PURSUANT TO SECTION 265 OF

THE DELAWARE GENERAL CORPORATION LAW

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The
 jurisdiction where the non-Delaware corporation was first formed is the Province of British
 Columbia, Canada and the date the non-Delaware corporation first formed is September 28,
 2009.

2. The
 non-Delaware corporation was continued from British Columbia to the federal jurisdiction
 of Canada on March 27, 2012.

3. The
 jurisdiction immediately prior to filing this Certificate is the federal jurisdiction of
 Canada.

4. The
 name of the non-Delaware corporation immediately prior to filing this Certificate is Almonty
 Industries Inc.

5. The
 name of the corporation as set forth in the Certificate of Incorporation is Almonty Industries
 Inc.

6. This
 Certificate of Conversion becomes effective at a later date and time, which is not more than
 90 days from the date of execution. The delayed effective date and time is _________, 2025,
 at 12:01 a.m. Eastern Time.

IN WITNESS WHEREOF, the undersigned have executed this Certificate on the _______day of ________, 2025.

---

| | |
|:---|:---|
| By: |  |
|  | Authorized Person or Officer |
| Name: |  |
|  | Print or Type |

---

**Exhibit F**

**Form of Certificate of Incorporation of New Almonty**

**CERTIFICATE OF INCORPORATION**

**OF**

**ALMONTY INDUSTRIES INC.**

**ARTICLE I**

**NAME**

The name of the corporation is Almonty Industries Inc. (the "<u>Corporation</u>").

**ARTICLE II**

**REGISTERED AGENT; INCORPORATOR**

The address of the registered office of the Corporation in the State of Delaware is 108 Lakeland Ave., Kent County, Dover, DE 19901. The name of the registered agent at such address is Capitol Services, Inc.

The incorporator of the Corporation is Lewis Black, whose mailing address is 100 King St. West, Suite 5700, Toronto, Ontario, M5X 1C7, Canada.

**ARTICLE III**

**PURPOSE**

The nature of the business or purposes to be conducted or promoted by the Corporation is to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of the State of Delaware (the "<u>DGCL</u>").

**ARTICLE IV**

**CAPITALIZATION**

Section 4.1 <u>Number of Shares</u>. The total number of stock that the Corporation shall have the authority to issue is 750,000,000, consisting of 500,000,000 shares of common stock, $0.00001 par value per share ("<u>Common Stock</u>"), and 250,000,000 shares of preferred stock, $0.00001 par value per share ("<u>Preferred Stock</u>"). The board of directors of the Corporation (the "<u>Board of Directors</u>") shall be authorized to set by resolution of the Board of Directors the powers, preferences, rights, qualifications, limitations and restrictions with respect to the authorized Common Stock and Preferred Stock, if any, of the Corporation.

Section 4.2 <u>Preferred Stock</u>. The Board of Directors is hereby expressly authorized to provide, out of the unissued shares of Preferred Stock, for one or more series of Preferred Stock and, with respect to each such series, to fix the number of shares constituting such series and the designation of such series, the voting powers, if any, of the shares of such series, and the preferences and relative, participating, optional or other special rights, if any, and any qualifications, limitations or restrictions thereof, of the shares of such series, subject to all applicable laws. The powers, preferences and relative, participating, optional and other special rights of each series of Preferred Stock, and the qualifications, limitations or restrictions thereof, if any, are subject to all applicable laws and may differ from those of any and all other series at any time outstanding.

**ARTICLE V**

**BOARD OF DIRECTORS**

Section 5.1 <u>Board Powers</u>. The business and affairs of the Corporation shall be managed by, or under the direction of, the Board of Directors.

Section 5.2 <u>Composition</u>. The Board of Directors shall be not less than three directors and not more than ten directors, the exact number of which shall be fixed, from time to time, by resolution adopted by the affirmative vote of a majority of the entire Board of Directors then in office. Directors need not be stockholders. The Board of Directors may from time to time add one or more additional directors within the limits provided in the DGCL.

Section 5.3 <u>Newly Created Directorships and Vacancies</u>. Except as otherwise required by law, any newly created directorships resulting from an increase in the authorized number of directors and any vacancies occurring in the Board of Directors, shall be filled by the affirmative votes of a majority of the remaining members of the Board of Directors, although less than a quorum, or by a sole remaining director. A director so elected shall be elected to hold office until the earlier of the expiration of the term of office of the director whom he or she has replaced, a successor is duly elected and qualified, or the earlier of such director's death, resignation, or removal.

Section 5.4 <u>Removal</u>. Except as prohibited by applicable law or this Certificate of Incorporation, the stockholders holding a majority of the shares then entitled to vote at an election of directors may remove any director from office with or without cause.

Section 5.5 <u>Written Ballot.</u> Unless and except to the extent that the By-Laws of the Corporation ("<u>By-Laws</u>") shall so require, the election of directors of the Corporation need not be by written ballot.

**ARTICLE VI**

**BY-LAWS**

Section 6.1 <u>Board of Directors</u>. In furtherance and not in limitation of the powers conferred by law, the Board of Directors is expressly authorized and empowered to adopt, amend, alter, or repeal the By-Laws without any action on the part of the stockholders.

Section 6.2 <u>Shareholders.</u> The stockholders shall also have the power to adopt, amend, alter, or repeal the By-Laws when a quorum is present at any annual or special meeting of stockholders, by the vote of the holders of at least a majority of the voting power of the issued and outstanding stock of the Corporation entitled to vote thereon.

**ARTICLE VII**

**DURATION; DISSOLUTION**

Section 7.1 <u>Duration</u>. The duration of the Corporation shall be perpetual.

Section 7.2 <u>Dissolution</u>. Upon dissolution of the Corporation, the Board of Directors shall, after paying or making provision for the payment of all liabilities of the Corporation, dispose of all the assets of the Corporation in furtherance of the Corporation's purposes, as the Board of Directors determines.

**ARTICLE VIII**

**LIMITED LIABILITY; INDEMNIFICATION**

Section 8.1 <u>Limitation of Director and Officer Liability</u>. A director or an officer of the Corporation shall not be personally liable to the Corporation or its stockholders for monetary damages for breach of fiduciary duty as a director or an officer except for liability (a) for any breach of the director's or the officer's duty of loyalty to the Corporation or its stockholders, (b) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, (c) under Section 174 of the DGCL, or (d) for any transaction from which the director or the officer derived an improper personal benefit. If the DGCL is amended after the filing of this Certificate of Incorporation to authorize corporate action further eliminating or limiting the personal liability of directors or officers, then the liability of a director or officer of the Corporation shall be eliminated or limited to the fullest extent permitted by the DGCL as so amended. Any amendment, alteration, change, modification or repeal of this Article VIII by the stockholders of the Corporation shall not adversely affect any right or protection of a director or officer of the Corporation existing at the time of such amendment, alteration, change, modification or repeal.

Section 8.2 <u>Indemnification</u>. The Corporation shall indemnify to the fullest extent not prohibited by law any person made or threatened to be made a party to an action or proceeding, whether criminal, civil, administrative or investigative, by reason of the fact that such person or such person's testator or intestate is or was a director, officer, employee benefit plan fiduciary, agent or employee of the Corporation or any predecessor of the Corporation or serves or served at the request of the Corporation or any predecessor of the Corporation as a director, officer, employee benefit plan fiduciary agent, employee, trustee, manager or managing member of another corporation, partnership, limited liability company, joint venture, trust, foundation, association, organization or other legal entity or enterprise (including an employee benefit plan or unincorporated entity). The indemnification provided for in this Article VIII shall not be deemed exclusive of any other rights to which those indemnified may be entitled under this Certificate of Incorporation, the By-Laws, any agreement or vote of stockholders or disinterested directors or otherwise, both as to action in their official capacities and as to action in another capacity while holding such office, and (a) shall continue as to a person who has ceased to be a director, officer, employee benefit plan fiduciary, agent or employee and (b) shall inure to the benefit of the heirs, executors and administrators of such persons. The Corporation may purchase and maintain insurance on behalf of any person who is or was a director, officer, employee benefit plan fiduciary, agent or employee of the Corporation or any predecessor of the Corporation or is or was serving at the request of the Corporation or any predecessor of the Corporation as a director, officer, employee benefit plan fiduciary agent, employee, trustee, manager or managing member of another corporation, partnership, limited liability company, joint venture, trust, foundation, association, organization or other legal entity or enterprise (including an employee benefit plan or unincorporated entity) against any liability asserted against him or her and incurred by him or her in any such capacity, or arising out of his or her status as such, whether or not the Corporation would have the power to indemnify him or her against such liability under the provisions of the DGCL.

**ARTICLE IX**

**AMENDMENTS; ENFORCEABILITY**

Section 9.1 <u>Amendment</u>. The Corporation reserves the right to amend, alter, change, modify or repeal any provision contained in this Certificate of Incorporation, in the manner now or hereafter prescribed by statute, and all rights conferred upon stockholders herein are granted subject to this reservation. No amendment, alteration, change, modification or repeal of any provision set forth in this Certificate of Incorporation shall affect any individual's right to indemnification or the limitation of liability with respect to any acts or omissions of such individual occurring prior to such amendment, alteration, change, modification or repeal.

Section 9.2 <u>Enforceability</u>. If any provision of this Certificate of Incorporation shall be invalidated or held to be unenforceable on any ground by any court of competent jurisdiction, the decision of which shall not have been reversed on appeal, such invalidity or unenforceability shall not affect the other provisions hereof, and this Certificate of Incorporation shall be construed in all respects as if such invalid or unenforceable provision(s) had been omitted therefrom.

**ARTICLE X**

**EFFECTIVE DATE AND TIME**

The effective date and time of the filing of this Certificate of Incorporation shall be ___, 2025, at 12:01 a.m. Eastern Time, which is not more than 90 days from the date of execution.

IN WITNESS WHEREOF, the undersigned has executed this Certificate of Incorporation as of ______, 2025.

By:   <br> Name: Lewis Black <br> Title: Incorporator

**Exhibit G**

**Form of By-Laws of New Almonty**

**BY-LAWS**

**OF**

**ALMONTY INDUSTRIES INC.**

***Effective as of ______, 2025***

 ****

**ARTICLE I**

**OFFICES**

SECTION 1. <u>Registered Office</u>. Almonty Industries Inc. (the "Corporation") shall maintain a registered office and registered agent in the State of Delaware. The registered office and/or registered agent of the Corporation may be changed from time to time by action of the Board of Directors of the Corporation (the "Board of Directors").

SECTION 2. <u>Other Offices</u>. The Corporation may also have an office or offices other than the registered office at such place or places, either within or without the State of Delaware, as the Board of Directors shall from time to time determine or the business of the Corporation may require.

SECTION 3. <u>Books</u>. The Corporation may keep its books and records at the Corporation's headquarters or such other location, within or without the State of Delaware, as the Board of Directors may from time to time determine or the business of the Corporation may require.

**ARTICLE II**

**MEETINGS OF STOCKHOLDERS**

SECTION 1. <u>Place of Meetings</u>. Meetings of the stockholders of the Corporation may be held at

such place, either within or without the State of Delaware, as may be determined from time to time by the Board of Directors. The Board of Directors may, in its sole discretion, determine that the meeting shall not be held at any place, but may instead be held solely by means of remote communication as provided under the Delaware General Corporation Law ("DGCL"). If authorized by the Board of Directors, in its sole discretion, and subject to such guidelines and procedures as the Board of Directors may adopt, stockholders and proxy holders not physically present at a meeting of stockholders may by means of remote communication, to the fullest extent permitted by applicable law: (a) participate in a meeting of stockholders, and (b) be deemed present in person and vote at a meeting of stockholders whether such meeting is to be held at a designated place or solely by means of remote communication.

SECTION 2. <u>Annual Meeting</u>. Subject to the DGCL, the annual meeting of stockholders shall be held on such day, at such time and at such place each year as the Board of Directors, or the Chairman of the Board, or the President in the absence of the Chairperson of the Board, may from time to time determine, for the purpose of considering the financial statements and reports required by the DGCL to be placed before the annual meeting, electing directors, appointing auditors and for the transaction of such other business as may properly be brought before the meeting.

SECTION 3. <u>Special Meetings</u>. Special meetings of stockholders may be called for any purpose (including, without limitation, the filling of Board of Director vacancies and newly created directorships), and may be held at such time and place, within or outside the State of Delaware, as shall be stated in a notice of meeting or in a duly executed waiver of notice thereof. Such meetings may be called at any time by the Board of Directors, the Chairman of the Board, the President or the Chief Executive Officer. In no event shall the stockholders be able to call a special meeting of the stockholders.

SECTION 4. <u>Notice of Meetings</u>. The Corporation shall give written notice of each annual and special meeting of stockholders, not less than ten nor more than 60 days before the date of the meeting, except as the DGCL or the certificate of incorporation of the Corporation (the "Certificate of Incorporation") requires from time to time, to each stockholder of record entitled to vote at the meeting (as of the record date for determining the stockholders entitled to notice of the meeting) at such address as appears on the records of the Corporation stating the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 date, place, if any, and time of the meeting;

(b) the
 means of remote communications, if any, by which stockholders and proxyholders may be deemed
 to be present in person and vote at the meeting;

(c) the
 record date for purposes of determining the stockholders entitled to vote at the meeting
 (if the date is different from the record date for determining the stockholders entitled
 to notice of the meeting); and

(d) in
 the case of a special meeting, the purpose or purposes for which the meeting is called.

Business transacted at any special meeting of stockholders shall be limited to the purposes stated in the notice. All such notices shall be delivered, either personally or by mail, by or at the direction of the Board of Directors, the Chief Executive Officer or the Secretary and, if mailed, such notice shall be deemed to be delivered when deposited in the United States mail, postage prepaid, addressed to the stockholder at his, her or its address as the same appears on the records of the Corporation. Without limiting the manner by which notice otherwise may be given effectively to stockholders, notice of meetings shall be effective if given by a form of electronic transmission consented to by the stockholder to whom the notice is given. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends for the express purpose of objecting at the beginning of the meeting to the transaction of any business because the meeting is not lawfully called or convened.

SECTION 5. <u>Record Date</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In
 order that the Corporation may determine the stockholders entitled to notice of or to vote
 at any meeting of stockholders or any adjournment thereof, or entitled to express consent
 to corporate action in writing without a meeting, or entitled to receive payment of any dividend
 or other distribution or allotment of any rights, or entitled to exercise any rights in respect
 of any change, conversion or exchange of stock or for the purpose of any other lawful action,
 the Board of Directors may fix, in advance, a record date, which shall not be more than 60
 nor less than ten days before the date of such meeting, nor more than 60 days prior to any
 other action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 the Board of Directors does not so fix a record date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The
 record date for determining stockholders entitled to notice of or to vote at a meeting of
 stockholders shall be at the close of business on the day next preceding the day on which
 notice is given or, if notice is waived, at the close of business on the day next preceding
 the day on which the meeting is held.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The
 record date for determining stockholders entitled to consent to corporate action in writing
 without a meeting, when no prior action by the Board of Directors is necessary, shall be
 the day on which the first written consent (including consent by electronic mail or other
 electronic transmission as permitted by law) is delivered to the corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The
 record date for determining stockholders for any other purpose shall be at the close of business
 on the day on which the Board of Directors adopts the resolution relating thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A
 determination of stockholders of record entitled to notice of or to vote at a meeting of
 stockholders shall apply to any adjournment of the meeting; provided, that the Board of Directors
 may fix a new record date for the adjourned meeting.

SECTION 6. <u>Quorum, Adjournments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except
 as otherwise provided by applicable law or by the Certificate of Incorporation, a quorum
 of stockholders is present at a meeting of stockholders, if not less than one-third of the
 holders of the shares entitled to vote at the meeting are present in person or represented
 by proxy, provided that a quorum shall not be less than two persons. A quorum need not be
 present throughout the meeting provided a quorum is present at the opening of the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any
 meeting of the stockholders, annual or special, may be adjourned from time to time to reconvene
 at the same or some other place, if any, and notice need not be given of any such adjourned
 meeting if the time, place, if any, thereof and the means of remote communication, if any,
 are announced at the meeting at which the adjournment is taken. At the adjourned meeting,
 the Corporation may transact any business which might have been transacted at the original
 meeting. If the adjournment is for more than 30 days, a notice of the adjourned meeting shall
 be given to each stockholder of record entitled to vote at the meeting. If after the adjournment
 a new record date is fixed for stockholders entitled to vote at the adjourned meeting, the
 Board of Directors shall fix a new record date for notice of the adjourned meeting and shall
 give notice of the adjourned meeting to each stockholder of record entitled to vote at the
 adjourned meeting as of the record date fixed for notice of the adjourned meeting.

SECTION 7. <u>Organization</u>. The Chairman of the Board or, in the Chairman's absence, the President or, in the President's absence, a Vice President shall be Chairman of any meeting of the stockholders. If none of these officers are present within 15 minutes after the time appointed for holding the meeting, the persons present and entitled to vote shall choose a Chairman from amongst themselves. The Secretary of the Corporation shall act as Secretary at any meeting of the stockholders or, if the Secretary of the Corporation be absent, the Chairman of the meeting shall appoint some person, who need not be a stockholder, to act as Secretary of the meeting.

SECTION 8. <u>Vote Required</u>. When a quorum is present, the affirmative vote of the majority of shares present in person or represented by proxy at the meeting and entitled to vote at the meeting shall be the act of the stockholders, unless the question is one upon which by express provisions of an applicable law, of the Certificate of Incorporation, or of these By-Laws (including the election of directors who shall be elected in the manner set forth in Section 3 of Article III) a different vote is required, in which case such express provision shall govern and control the decision of such question. Where a separate vote by class is required, the affirmative vote of the majority of shares of such class present in person or represented by proxy at the meeting shall be the act of such class.

SECTION 9. <u>Voting Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except
 as otherwise provided by the DGCL or by the Certificate of Incorporation or any amendments
 thereto, every stockholder shall at every meeting of the stockholders be entitled to one
 vote in person or by proxy for each share of capital stock held by such stockholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each
 stockholder entitled to vote at a meeting of stockholders or to express consent or dissent
 to corporate action in writing without a meeting may authorize another person or persons
 to act for such stockholder by proxy. No proxy may be voted or acted upon after three years
 from its date, unless the proxy provides for a longer period. No shares may be represented
 or voted under a proxy that has been found to be invalid or irregular. A proxy shall be irrevocable
 if it states that it is irrevocable and if, and only as long as, it is coupled with an interest
 sufficient in law to support an irrevocable power. A stockholder may revoke any proxy which
 is not irrevocable by attending the meeting and voting in person or by delivering to the
 Secretary of the Corporation a revocation of the proxy or a new proxy bearing a later date.

SECTION 10. <u>Notice of Stockholder Business and Nominations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Nominations
 of persons for election to the Board of Directors and the proposal of other business that
 the stockholders should consider may be made at an annual meeting of stockholders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) pursuant
 to the Corporation's proxy materials and notice with respect to the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) by
 or at the direction of the Board of Directors; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) by
 any stockholder of the Corporation who:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) was
 a stockholder of record at the time of giving of notice provided for in this Section 10(a)
 of this Article II;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) at
 the time of the annual meeting, is entitled to vote at the meeting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) complies
 with the notice procedures set forth in this Section 10 of this Article II as to such business
 or nomination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Section
 10(a)(iii) of this Article II shall be the exclusive means for a stockholder to make nominations
 or submit other business (other than matters properly brought in compliance with applicable
 laws) before a meeting of stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Without
 qualification, for a stockholder to properly bring any nominations or business before a meeting
 pursuant to Section 10(a)(iii) of this Article II,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 stockholder must have given timely notice of those nominations or business in writing to
 the Secretary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such
 other business must otherwise be a proper matter for stockholder action; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if
 bringing a nomination, the stockholder's notice must set forth, as to each person whom
 the stockholder proposes to nominate for election or reelection to the Board of Directors
 all information relating to the person that would be required to be disclosed in a proxy
 statement or other filings required to be made in connection with solicitation of proxies
 for election of directors in a contested election pursuant to applicable laws (including
 the person's written consent to being named in the proxy statement as a nominee and
 to serving as a director if elected).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To
 be timely pursuant to Section 10(c)(i) of this Article II, a stockholder must deliver the
 stockholder's notice to the Secretary at the principal executive offices of the Corporation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) not
 earlier than the close of business on the 120<sup>th</sup> day and not later than the close
 of business of the 90<sup>th</sup> day prior to the first anniversary of the preceding year's
 annual meeting if such annual meeting is to be held on a day which is not more than 30 days
 in advance of the anniversary of the previous year's annual meeting or not later than
 60 days after the anniversary of the previous year's annual meeting; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) with
 respect to any other annual meeting of stockholders, including in the event that no annual
 meeting was held in the previous year, not earlier than the close of business on the 120<sup>th</sup>
 day prior to the annual meeting and not later than the close of business on the later of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the
 90<sup>th</sup> day prior to the annual meeting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the
 close of business on the tenth day following the first date of Public Disclosure of the date
 of such meeting. "Public Disclosure" shall mean a disclosure made in a press
 release reported by the Dow Jones News Services, The Associated Press, or a comparable national
 news service or in a document filed by the Corporation with the Securities and Exchange Commission
 pursuant to Section 13, 14, or 15(d) of the United States Securities Exchange Act of 1934,
 as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding
 the foregoing provisions of this Section 10 of this Article II, a stockholder must also comply
 with all requirements of applicable law, including applicable stock exchange rules and regulations,
 and nothing in this Section 10 of this Article II will be deemed to affect any rights of
 a stockholder who seeks to have any proposal included in the Corporation's proxy materials
 in accordance with applicable law, including applicable stock exchange rules and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The
 determination of whether any business sought to be brought before any meeting of the stockholders
 is properly brought before such meeting in accordance with this Section 10 of this Article
 II will be made by the presiding officer of such meeting. If the presiding officer determines
 that any business is not properly brought before such meeting, he will so declare to the
 meeting and any such business will not be conducted or considered.

**ARTICLE III**

**BOARD OF DIRECTORS**

SECTION 1. <u>General Powers</u>. The Board of Directors shall manage, or direct the management of,

the business and affairs of the Corporation. The Board of Directors may exercise all such authority and powers of the Corporation and do all such lawful acts and things that are not directed or required by law or the Certificate of Incorporation to be exercised or done by the stockholders.

SECTION 2. <u>Number</u>. The Board of Directors shall be not less than three directors and not more than ten directors, the exact number of which shall be fixed, from time to time, by resolution adopted by the affirmative vote of a majority of the entire Board of Directors then in office. Directors need not be stockholders. The Board of Directors may from time to time add one or more additional directors within the limits provided in the DGCL.

SECTION 3. <u>Election and Term</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except
 as the Certificate of Incorporation or these By-Laws otherwise provide, all of the directors
 will be elected individually on an annual basis at the annual meeting of stockholders.

(b) Each
 director shall hold office until the director's successor shall have been elected and
 qualified, subject to the director's earlier death, resignation or removal, as provided
 in these By-Laws or the Certificate of Incorporation.

(c) Elections
 of directors need not be by written ballot unless the Board of Directors votes to require
 a written ballot.

(d) The
 directors shall be elected by a plurality of the votes of the shares present in person or
 represented by proxy at the meeting and entitled to vote in the election of directors or
 by consent in writing signed by the holders of outstanding stock having not less than a majority
 of the votes of such stock.

SECTION 4. <u>Resignations</u>. Any director of the Corporation may resign at any time by giving written notice of his or her resignation to the Corporation. The resignation shall take effect at the time specified in the notice of resignation or, if the effective time of the resignation is not specified in the notice, immediately upon the Corporation's receipt of the notice. Unless otherwise specified in the notice, the acceptance of the notice of resignation shall not be necessary to make the resignation effective.

SECTION 5. <u>Removal of Directors</u>. Except as prohibited by applicable law or the Certificate of Incorporation, the stockholders holding a majority of the shares then entitled to vote at an election of directors may remove any director from office with or without cause.

SECTION 6. <u>Vacancies and Newly Created Directorships</u>. Any newly created directorships resulting from an increase in the authorized number of directors and any vacancies occurring in the Board of Directors, shall be filled by the affirmative votes of a majority of the remaining members of the Board of Directors, although less than a quorum, or by a sole remaining director. A director so elected shall be elected to hold office until the earlier of the expiration of the term of office of the director whom he or she has replaced, a successor is duly elected and qualified, or the earlier of such director's death, resignation or removal.

SECTION 7. <u>Place of Meetings</u>. The Board of Directors may meet at the place or places, within or without the State of Delaware, as the Board of Directors may from time to time determine or as shall be specified in the notice of any such meeting.

SECTION 8. <u>Regular Meetings</u>. The Board of Directors shall hold regular meetings at the time and place as the Board of Directors may fix or as may be specified in a notice of meeting. Notice of regular meetings of the Board of Directors need not be given except as otherwise required by applicable law or these By-Laws.

SECTION 9. <u>Special Meetings</u>. The Board of Directors may hold special meetings at any time if the meeting is called by the Chairman of the Board of Directors, the Chief Executive Officer, the President, two or more directors of the Corporation or one director if there is only a single director in office.

SECTION 10. <u>Notice of Meetings</u>. Notice of regular meetings of the Board of Directors need not be given except as otherwise required by applicable law or these By-Laws. Notice of each special meeting of the Board of Directors (and of each regular meeting for which notice shall be required) shall be given at least 24 hours before each special meeting, in writing, by electronic transmission or orally (either in person or by telephone), including the time, date and place of the meeting. Any director may waive notice of any meeting in a signed writing or by an electronic transmission that is filed with the minutes or corporate records. Any director who is present at a meeting (in person or by telephone) shall be conclusively presumed to have waived notice of the meeting except when the director attends for the express purpose of objecting at the beginning of the meeting to the transaction of any business because the meeting is not lawfully called or convened. Neither notice of a meeting nor a waiver of a notice need specify the purposes of, or the business to be transacted at, the meeting.

SECTION 11. <u>Quorum and Voting</u>. A majority of the number of directors in office from time to time or, in the event that there are less than four directors, one director shall constitute a quorum for the transaction of business at any meeting of the Board of Directors. Notwithstanding vacancies, a quorum of directors may exercise all of the powers of the Board of Directors. In the absence of a quorum at any meeting of the Board of Directors, a majority of the directors present thereat may adjourn the meeting until a quorum is present, and no further notice of the reconvened meeting need be given other than by announcement at the meeting which shall be so adjourned. The vote of a majority of the total number of directors present at the meeting at which there is a quorum shall determine all matters (and in the case of an equality of votes the Chairman of the meeting shall not be entitled to a second or casting vote), except as the Certificate of Incorporation or these By-Laws otherwise provide or as applicable law requires.

SECTION 12. <u>Organization</u>. The Chairman of the Board of Directors or, in the Chairman's absence, the Chief Executive Officer or, in the Chief Executive Officer's absence, an executive officer shall be Chairman of any meeting of the Board of Directors. If none of these officers are present, the directors present shall choose one of their number to be Chairman. The Secretary of the Corporation shall act as secretary at any meeting of the Board of Directors and, if the Secretary of the Corporation is absent, the Chairman of the meeting shall appoint a person who need not be a director to act as secretary of the meeting.

SECTION 13. <u>Compensation</u>. Subject to applicable laws, the Board of Directors shall have authority to fix or establish policies for the compensation, including fees and reimbursement of expenses, for services that the directors provide to the Corporation.

SECTION 14. <u>Committees</u>. The Board of Directors may designate one or more committees, including an audit committee, consisting of one or more of the directors of the Corporation. The Board of Directors may designate one or more directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee. Except to the extent restricted by applicable law or the Certificate of Incorporation, each committee, to the extent permitted by Section 141(c)(2) of the DGCL and provided in the resolution creating it, shall have and may exercise all the powers and authority of the Board of Directors; but no committee shall have the power or authority to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) approve,
 adopt or recommend to the stockholders any action or matter expressly required by Delaware
 law to be submitted to the stockholders for approval; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) adopt,
 amend or repeal any By-Law of the Corporation.

SECTION 15. <u>Action by Written Consent</u>. Unless restricted by the Certificate of Incorporation or these By-Laws, any action required or permitted to be taken by the Board of Directors or any committee of the Board of Directors may be taken without a meeting if all members of the Board of Directors or the committee, as the case may be, consent to the action in writing or by electronic transmission, and the writing or writings or electronic transmission or transmissions (or paper reproductions of them) are filed with the minutes of the proceedings of the Board of Directors or the committee, as the case may be. The filing shall be in paper form if the minutes are maintained in paper form and shall be in electronic form if the minutes are maintained in electronic form.

SECTION 16. <u>Telephonic Meeting</u>. Any one or more members of the Board of Directors or any committee of the Board of Directors may participate in a meeting of the Board of Directors or the committee by means of a conference call or using any communications equipment by means of which all persons participating in the meeting can hear each other. Participation by such means shall constitute presence in person at a meeting.

SECTION 17. <u>Electronic Transmission</u>. To the fullest extent permitted by applicable law, any action permitted to be taken in writing pursuant to these By-Laws may also be taken by electronic transmission.

**ARTICLE IV**

**OFFICERS**

SECTION 1. <u>Offices and Official Positions</u>. The officers of the Corporation shall be elected by

the Board of Directors and may consist of a President, a Secretary, a Chairman, a Chief Executive Officer, a Chief Financial Officer, a Treasurer, one or more Vice Presidents, and such Assistant Secretaries, Assistant Treasurers, and other officers as the Board of Directors shall determine. Any number of offices may be held by the same person. The Board of Directors may choose not to fill any office for any period as it may deem advisable. None of the officers need be a director or a stockholder of the Corporation or a resident of Delaware. The officers of the Corporation shall have such powers and duties as generally pertain to their respective offices as well as such powers and duties as from time to time shall be conferred by these By-Laws or the Board of Directors.

SECTION 2. <u>Election and Term of Office</u>. The Board of Directors shall elect the officers of the Corporation at its annual meeting. If the election of officers is not held at such meeting, the election shall be held at a regular or special meeting of the Board of Directors. Each officer shall hold office until such officer's successor is elected and qualified or until such officer's death, resignation or removal.

SECTION 3. <u>Resignations</u>. Any officer of the Corporation may resign at any time by giving written notice of his resignation to the Corporation. The resignation shall take effect at the time specified in the notice of resignation or, if the effective time of the resignation is not specified in the notice, immediately upon the Corporation's receipt of the notice. Unless otherwise specified in the notice, the acceptance of the notice of resignation shall not be necessary to make the resignation effective.

SECTION 4. <u>Removal</u>. The Board of Directors may remove any officer of the Corporation, with or without cause, at any time.

SECTION 5. <u>Vacancies</u>. The Board of Directors may fill a vacancy in any office for the unexpired portion of the term.

SECTION 6. <u>Chairman of the Board</u>. The Chairman of the Board, if one is elected, shall preside at meetings of the Board of Directors or the stockholders. The Chairman shall have the powers and duties customarily and usually associated with the office of the Chairman of the Board of Directors and shall perform such other duties as the Board of Directors may from time to time assign to him or her. The same individual may serve as both Chairman of the Board and Chief Executive Officer.

SECTION 7. <u>Chief Executive Officer</u>. In the absence of the Chairman of the Board or if a Chairman of the Board shall have not been elected, the Chief Executive Officer shall preside at all meetings of the stockholders and Board of Directors at which he or she is present; subject to the powers of the Board of Directors, shall have general charge of the business, affairs and property of the Corporation, and control over its officers, agents and employees; and shall see that all orders and resolutions of the Board of Directors are carried into effect. The Chief Executive Officer shall have such other powers and perform such other duties as may be prescribed by the Board of Directors or as may be provided in these By-Laws.

SECTION 8. <u>President</u>. The President shall, in the absence or disability of the Chief Executive Officer, act with all of the powers and be subject to all of the restrictions of the Chief Executive Officer. The President shall also perform such other duties and have such other powers as the Board of Directors, the Chief Executive Officer or these By-Laws may, from time to time, prescribe.

SECTION 9. <u>Vice-President</u>. In the absence of the President, at the President's request or in the event of the President's inability or refusal to act, the Vice Presidents in order of their rank as fixed by the Board of Directors or, if not ranked, the Vice President designated by the Board of Directors or the President shall perform all duties of the President, including the duties of the Chairman of the Board if and as assumed by the President, and, when so acting, shall have all the powers of, and be subject to all the restrictions upon, the President. The Vice Presidents shall have such other powers and perform such other duties, not inconsistent with applicable laws, these By-Laws or action of the Board of Directors, as the Board of Directors or the President may from time to time assign to them.

SECTION 10. <u>Secretary</u>. The Secretary shall: (a) keep the minutes of the meetings of the stockholders, the Board of Directors and committees of directors in one or more books provided for that purpose; (b) see that all notices are duly given in accordance with the provisions of these By-Laws or as required by law; (c) have charge of the corporate records and of the seal of the Corporation; (d) keep a register of the post office address of each stockholder, director and committee member which shall from time to time be furnished to the Secretary by such stockholder, director or member; (e) sign with the Chairman of the Board, the President or a Vice President, certificates for shares of stock of the Corporation the Board of Directors has authorized for issuance; (f) have general charge of the stock transfer books of the Corporation; and (g) in general, perform all duties incident to the office of Secretary and such other duties as the Board of Directors, the Chairman of the Board or President may from time to time assign to the Secretary. The Secretary may delegate such details of the performance of duties of the Secretary's office as may be appropriate in the exercise of reasonable care to one or more persons in his or her stead, but shall not thereby be relieved of responsibility for the performance of such duties.

SECTION 11. <u>Treasurer</u>. The Treasurer shall: (a) be responsible to the Board of Directors for the receipt, custody and disbursement of all funds and securities of the Corporation; (b) receive and give receipts for monies due and payable to the Corporation from any source and deposit all such monies in the name of the Corporation in such banks, trust companies or other depositories as shall from time to time be selected in accordance with these By-Laws; (c) disburse the funds of the Corporation as ordered by the Board of Directors or the President or as otherwise required in the conduct of the business of the Corporation; (d) render to the Chief Executive Officer, President or the Board of Directors, upon request, an account of all his or her transactions as Treasurer and on the financial condition of the Corporation; and (e) in general, perform all duties incident to the office of Treasurer and such other duties as the Board of Directors, the Chairman of the Board, the Chief Executive Officer or the President may from time to time assign to the Treasurer. The Treasurer may delegate such details of the performance of duties of such office as may be appropriate in the exercise of reasonable care to one or more persons in his or her stead, but shall not thereby be relieved of responsibility for the performance of such duties. If required by the Board of Directors, the Treasurer shall give a bond for the faithful discharge of his or her duties in such sum, and with such surety or sureties, as the Board of Directors shall determine.

SECTION 12. <u>Salaries</u>. The salaries of the officers shall be fixed from time to time by the Board of Directors, by such officer as the Board of Directors shall designate for such purpose or as it shall otherwise direct. No officer shall be prevented from receiving a salary or other compensation by reason of the fact that the officer is also a director of the Corporation.

SECTION 13. <u>Delegation of Authority</u>. The Board of Directors may from time to time delegate the powers or duties of any officer to any other officers or agents, notwithstanding any provision hereof.

**ARTICLE V**

**CAPITAL STOCK**

SECTION 1. <u>Issuance of Stock</u>. Unless otherwise voted by stockholders and subject to the

provisions of the Certificate of Incorporation and the DGCL, the whole or any part of any unissued balance of the authorized capital stock of the Corporation or the whole or any part of any unissued balance of the authorized capital stock of the Corporation held in its treasury may be issued, sold, transferred or otherwise disposed of by vote of the Board of Directors in the manner, for the consideration and on the terms as the Board of Directors may determine.

SECTION 2. <u>Stock Certificates</u>. Certificates shall represent the stock of the Corporation, *provided* that the Board of Directors of the Corporation may provide by resolution or resolutions that some or all of any or all classes or series of its stock shall be uncertificated shares. If the shares are represented by certificates, such certificates shall be in a form approved by the Board of Directors, shall be numbered and shall be entered in the books of the Corporation as they are issued. Every holder of stock represented by certificates shall be entitled to have a certificate signed by, or in the name of the Corporation by the Chairman of the Board, or the President or Vice President, and by the Treasurer or an Assistant Treasurer, or the Secretary or an Assistant Secretary of the Corporation.

SECTION 3. <u>Facsimile Signatures</u>. Any or all of the signatures on a certificate may be a facsimile. In case any officer, transfer agent or registrar who has signed or whose facsimile signature has been placed upon a certificate shall have ceased to be that officer, transfer agent or registrar before the certificate is issued, it may be issued by the Corporation with the same effect as if he were that officer, transfer agent or registrar at the date of issue. All certificates properly surrendered to the Corporation for transfer shall be cancelled and, except as set forth in Section 4 of this Article V, no new certificate shall be issued to evidence transferred shares until the former certificate for at least a like number of shares has been surrendered and cancelled and the Corporation reimbursed for any applicable taxes on the transfer.

SECTION 4. <u>Lost Certificates</u>. The Board of Directors may direct a new certificate or uncertificated shares to be issued in place of any certificate issued by the Corporation alleged to have been lost, stolen or destroyed, and the Board of Directors may also require the owner of the lost, stolen or destroyed certificate, or the owner's legal representative, to provide the Corporation a bond sufficient to indemnify it against any claim that may be made against the Corporation on account of the alleged loss, theft or destruction of such certificate or the issuance of a new certificate or uncertificated shares.

SECTION 5. <u>Transfers of Stock</u>. Transfers of shares of stock shall be made only on the books of the Corporation by the registered holder thereof or by its attorney or successor duly authorized as evidenced by documents filed with the secretary or transfer agent of the Corporation. In the case of certificated shares, upon surrender to the Corporation or the transfer agent of the Corporation of a certificate for shares duly endorsed or accompanied by proper evidence of succession, assignment or authority to transfer, and in compliance with any restrictions on transfer of which the Corporation has notice applicable to the certificate or shares represented thereby, the Corporation shall issue a new certificate to the person entitled thereto, cancel the old certificate and record the transaction upon its books.

SECTION 6. <u>Registered Stockholders</u>. The books of the Corporation shall include the names and addresses of the holders of record of the shares of stock of the Corporation's capital, together with the number of shares of each class and series held by each record holder and the date of issue of those shares. The Corporation shall be entitled to recognize the exclusive right of a person registered on its records as the owner of shares of stock as the person entitled to exercise the rights of a stockholder, including to receive dividends and to vote as the owner. The Corporation shall not be bound to recognize any equitable or other claim to or interest in the share or shares of stock on the part of any other person, whether or not it shall have express or other notice of the claim, except as the laws of Delaware otherwise provide.

SECTION 7. <u>Dividends</u>. Subject to applicable law and the Certificate of Incorporation, the Board of Directors may, out of funds legally available for dividends at any regular or special meeting, declare dividends upon the capital stock of the Corporation as and when it deems expedient. Dividends may be paid in cash, in property or in shares of stock of the Corporation, unless applicable law or the Certificate of Incorporation otherwise provide. Before declaring any dividend there may be set apart out of any funds of the Corporation available for dividends, a sum or sums as the directors from time to time in their discretion deem proper for working capital or as a reserve fund to meet contingencies or for equalizing dividends or for such other purposes as the directors shall deem conducive to the interests of the Corporation. Any dividend unclaimed after a period of two years from the date on which the dividend has been declared to be payable shall be forfeited and shall revert to the Corporation.

SECTION 8. <u>Transfer Agents and Registrars</u>. The Board of Directors may appoint, or authorize any officer or officers to appoint, one or more transfer agents and one or more registrars.

SECTION 9. <u>Regulations</u>. The Board of Directors may make additional rules and regulations, not inconsistent with these By-Laws, as it may deem expedient concerning the issue, transfer and registration of certificates for shares of stock or with respect to uncertificated shares of stock of the Corporation.

**ARTICLE VI**

**PROTECTION OF DIRECTORS AND OFFICERS; INDEMNIFICATION**

SECTION 1. <u>Limitation of Liability</u>. No director or officer shall be liable for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 acts, receipts, neglects or defaults of any other director, officer, employee or agent of
 the Corporation or any other person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any
 loss, damage or expense happening to the Corporation through the insufficiency or deficiency
 of title to any property acquired by, for, or on behalf of the Corporation, or for the insufficiency
 or deficiency of any security in or upon which any of the moneys of the Corporation shall
 be loaned out or invested;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any
 loss or damage arising from the bankruptcy, insolvency or tortious act of any person, firm
 or corporation, including any person, firm or corporation with whom any moneys, securities
 or other assets belonging to the Corporation shall be lodged or deposited;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any
 loss, conversion, misapplication or misappropriation of or any damage resulting from any
 dealings with any moneys, securities or other assets belonging to the Corporation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any
 other loss, damage or misfortune whatever which may happen in the execution of the duties
 of the director's or officer's respective office or in relation thereto,

unless the same shall happen by or through the director's or officer's failure to exercise the powers and to discharge the duties of the director's or officer's office honestly and in good faith with a view to the best interests of the Corporation, and in connection therewith, to exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances, provided that nothing herein contained shall relieve a director or officer from the duty to act in accordance with the DGCL or relieve such director or officer from liability for a breach of the DGCL.

SECTION 2. <u>Right to Indemnification</u>. The Corporation shall indemnify and hold harmless to the fullest extent permitted by applicable law as it presently exists or may hereafter be amended, any person who was or is made or is threatened to be made a party or is otherwise involved in any action, suit, or proceeding, whether civil, criminal, administrative, or investigative (a "Proceeding"), by reason of the fact that he or she, or a person for whom he or she is the legal representative, is or was a director, or officer of the Corporation or, while a director or officer of the Corporation, is or was serving at the request of the Corporation as a director or officer of another corporation, partnership, joint venture, trust, enterprise, or nonprofit entity, including service with respect to employee benefit plans, against all liability and loss suffered and expenses (including attorneys' fees) actually and reasonably incurred by such person. Notwithstanding the preceding sentence, the Corporation shall be required to indemnify a person in connection with a Proceeding (or part thereof) commenced by such person only if the commencement of such Proceeding (or part thereof) by the person was authorized in the specific case by the Board of Directors.

SECTION 3. <u>Right to Advancement of Expenses</u>. The Corporation shall pay the expenses (including attorneys' fees) actually and reasonably incurred by a director or officer of the Corporation in defending any Proceeding in advance of its final disposition, upon receipt of an undertaking by or on behalf of such person to repay all amounts advanced if it shall ultimately be determined by final judicial decision from which there is no further right to appeal that such person is not entitled to be indemnified for such expenses under this Section 3 of this Article VI or otherwise. Payment of such expenses actually and reasonably incurred by such person may be made by the Corporation, subject to, if the Corporation at the time of payment has a general counsel, such terms and conditions as the general counsel of the Corporation in his or her discretion deems appropriate.

SECTION 4. <u>Non-Exclusivity of Rights</u>. The rights conferred on any person by this Article VI will not be exclusive of any other right which such person may have or hereafter acquire under any applicable law, provision of the Certificate of Incorporation, these By-Laws, agreement, vote of stockholders or disinterested directors, or otherwise, both as to action in his or her official capacity and as to action in another capacity while holding office. The Corporation is specifically authorized to enter into individual contracts with any or all of its directors, officers, employees or agents respecting indemnification and advances, to the fullest extent not prohibited by the DGCL.

SECTION 5. <u>Other Indemnification</u>. The Corporation's obligation, if any, to indemnify any person who was or is serving at its request as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, enterprise or nonprofit entity shall be reduced by any amount such person may collect as indemnification from such other corporation, partnership, joint venture, trust, enterprise, or nonprofit entity. Subject to the DGCL, the Corporation may indemnify its employees, agents and such other persons, as the directors may determine.

SECTION 6. <u>Insurance</u>. The Corporation may purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust, enterprise or nonprofit entity against any liability asserted against him or her and incurred by him or her in any such capacity, or arising out of his or her status as such, whether or not the Corporation would have the power to indemnify him or her against such liability under the provisions of the DGCL.

SECTION 7. <u>Repeal, Amendment, or Modification</u>. Any amendment, repeal or modification of this Article VI shall not adversely affect any right or protection hereunder of any person in respect of any act or omission occurring prior to the time of such repeal or modification.

**ARTICLE VII**

**GENERAL PROVISIONS**

SECTION 1. <u>Seal</u>. The Corporation may have a seal which shall be adopted and may be changed by the Board of Directors.

SECTION 2. <u>Fiscal Year</u>. Until changed by the Board of Directors, by resolution, fiscal year of the Corporation shall end on the 31<sup>st</sup> day of December in each year.

SECTION 3. <u>Reliance upon Books, Reports and Records</u>. Each director, each member of any committee designated by the Board of Directors and each officer shall, in the performance of his or her duties, be fully protected in relying in good faith upon the books and records of the Corporation and upon the information, opinions, reports or statements presented to the Corporation by any of its officers, agents or employees, or committees of the Board of Directors so designated, or by any other person or entity as to matters which the director, committee member or officer reasonably believes are within the other person's or entity's professional or expert competence and that has been selected with reasonable care by or on behalf of the Corporation.

SECTION 4. <u>Certificate of Incorporation</u>. All references in these By-Laws to the Certificate of Incorporation shall be deemed to refer to the Certificate of Incorporation of the Corporation, as amended or restated and in effect from time to time.

SECTION 5. <u>Severability and Inconsistency</u>. Any determination that any provision of these By- Laws is for any reason inapplicable, illegal or ineffective shall not affect or invalidate any other provision of these By-Laws. If any provision of these By-Laws is or becomes inconsistent with any provision of the Certificate of Incorporation, the DGCL or any other applicable law, the provision of these By-Laws shall not be given any effect to the extent of the inconsistency, but shall otherwise be given full force and effect.

SECTION 6. <u>Notice and Waiver of Notice</u>. Whenever any notice is required to be given to any stockholder or director by these By-Laws or the Certificate of Incorporation, it shall be deemed to be sufficient if given by mailing, postage paid, addressed to the person or persons entitled thereto at their post office addresses appearing on the books or other records of the Corporation, and such notice shall be deemed to have been given on the date of such mailing, but said notice shall also be deemed to be sufficient and to have been given and received if given in any other manner or by any other means authorized by law or provided for elsewhere in these By-Laws. A waiver or waivers of notice, signed by the person or persons entitled to such notice, whether before or after the time stated therein, shall be equivalent to the giving of such notice.

SECTION 7. <u>Execution of Instruments</u>. Deeds, transfers, assignments, contracts, obligations, certificates and other instruments shall be signed on behalf of the Corporation by any director or officer or as otherwise directed by the Board of Directors.

SECTION 8. <u>Execution in Counterpart, by Facsimile, and by Electronic Signature.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject
 to the DGCL, any instrument or document required or permitted to be executed by one or more
 persons on behalf of the Corporation may be signed by means of an electronic signature or
 facsimile;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any
 instrument or document required or permitted to be executed by one or more persons may be
 executed in separate counterparts, each of which when duly executed by one or more of such
 persons shall be an original and all such counterparts together shall constitute one and
 the same such instrument or document; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) subject
 to the DGCL, wherever a notice, document or other information is required under the DGCL
 or these By-Laws to be created or provided in writing, that requirement may be satisfied
 by the creation and/or provision of an electronic document.

Notwithstanding the foregoing, the Board of Directors may from time to time direct the manner in which and the person or persons by whom any particular instrument or class of instruments may or shall be signed.

SECTION 9. <u>Voting Rights in Other Bodies Corporate</u>. Any officer or director may execute and deliver proxies and take any other steps as in the officer's or director's opinion may be necessary or desirable to permit the exercise on behalf of the Corporation of voting rights attaching to any securities held by the Corporation. In addition, the Board of Directors may from time to time direct the manner in which and the persons by whom any particular voting rights or class of voting rights may or shall be exercised.

SECTION 10. <u>Banking Arrangements</u>. The banking business of the Corporation, or any part or division of the Corporation, shall be transacted with such bank, trust company or other firm or body corporate as the Board of Directors may designate, appoint or authorize from time to time and all such banking business, or any part thereof, shall be transacted on the Corporation's behalf by such one or more officers or other persons as the Board of Directors may designate, direct or authorize from time to time and to the extent thereby provided.

**ARTICLE VIII**

**BORROWING**

SECTION 1. Without limit to the power of the Board of Directors as provided in the DGCL, the Board of Directors may from time to time on behalf of the Corporation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) borrow
 money upon the credit of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) issue,
 reissue, sell or pledge debt obligations of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to
 the extent permitted by the DGCL, give, directly or indirectly, financial assistance to any
 person by means of a loan, a guarantee to secure the performance of an obligation or otherwise;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) mortgage,
 hypothecate, pledge or otherwise create a security interest in all or any property of the
 Corporation, owned or subsequently acquired, to secure any obligation of the Corporation.

SECTION 2. Subject to the DGCL, the Board of Directors may from time to time delegate to a director, a committee of directors, an officer or such other person or persons so designated by the Board of Directors all or any of the power conferred on the Board of Directors by this Article VIII or by the DGCL to such extent and in such manner as the Board of Directors shall determine at the time of each such delegation.

**ARTICLE IX**

**AMENDMENTS**

These By-Laws may be amended, altered, changed, modified or repealed and new By-Laws adopted at any meeting of the Board of Directors. The fact that the power to amend, alter, change, modify or repeal these By-Laws has been conferred upon the Board of Directors shall not divest the stockholders of the same powers.

\* \* \*

**Exhibit H**

**Comparison of Shareholder Rights under Canadian Law and Delaware Law**

On completion of the Domestication, Shareholders will hold shares of common stock of New Almonty, a corporation incorporated under the DGCL. Shareholders of corporations incorporated under the DGCL are afforded similar rights as are available to shareholders under the CBCA. However, there are certain material differences between the two statutes and the regulations made or law developed thereunder. The following is a summary of certain material differences between the DGCL and the CBCA which management of the Company considers material to Shareholders. **This summary is not an exhaustive review of the material differences between the CBCA and the DGCL. Reference should be made to the full text of both statutes and the regulations and laws developed thereunder for the particulars of any material differences between them, as well as the full text of the Certificate of Incorporation and By-Laws of New Almonty attached to this Circular as Exhibit F and Exhibit G, respectively. Shareholders should consult their legal or other professional advisors with regard to the implications of Domestication which may be of importance to them.**

<u>General</u>. On the effective date of the Domestication, we will be deemed for purposes of the DGCL to have been incorporated under the laws of the State of Delaware from our inception and we will be governed by the Delaware Certificate of Incorporation filed with the Certificate of Conversion. Material differences between Canadian corporate law and Delaware corporate law and between our current articles of incorporation and by-laws and the proposed Delaware Certificate of Incorporation and By-Laws will result in various changes in the rights of our Shareholders. The following summary comparison highlights provisions of applicable Canadian corporate law and our current Canadian articles of incorporation and by- laws and Delaware corporate law and the proposed Certificate of Incorporation and By-Laws of New Almonty.

<u>Capital Structure</u>. Under our current Canadian articles of incorporation, we presently have the authority to issue an unlimited number of Common Shares, no par value per Common Share. Under its proposed Delaware Certificate of Incorporation, New Almonty will have the authority to issue a total of 750,000,000 shares of capital stock, consisting of 500,000,000 New Almonty Shares, $0.00001 par value per share, and 250,000,000 Preferred Shares, $0.00001 par value per share. Under Canadian law, there is no franchise tax on our authorized capital stock. Pursuant to Delaware law, New Almonty will initially be required to pay an annual corporate franchise tax of approximately $200,000 in order to maintain its good standing as a Delaware corporation. The amount of that annual franchise tax could change if New Almonty's capital structure changes.

<u>Shareholder Approval; Vote on Extraordinary Corporate Transactions</u>. Canadian law generally requires a vote of shareholders on a greater number and diversity of corporate matters than Delaware law, such as a corporate name change, a creation of a new class of shares or an increase or decrease of the minimum or maximum number of directors. Furthermore, many matters requiring shareholder approval under Canadian law must be approved by a special resolution of not less than two-thirds of the votes cast by shareholders who voted on those matters. In some cases, such as an amendment to the articles of a corporation that affects classes of shares differently, a special resolution to approve an extraordinary corporate action is also required to be approved separately by the holders of a class or series of shares, whether or not shares of such class or series otherwise carry the right to vote.

Under the DGCL, the affirmative vote of the holders of two-thirds of the outstanding stock entitled to vote thereon (or the affirmative vote of the holders of a majority of such outstanding stock, if a statement to that effect was included in the articles at the time they were initially filed or is included in an amendment to the articles approved by the affirmative vote of the holders of two-thirds of the then outstanding stock entitled to vote thereon) is required to authorize any merger, share exchange, consolidation, dissolution or sale of all or substantially all of the assets of the corporation, except that, unless required by its certificate of incorporation, no authorizing shareholder vote is required to approve a plan of merger or share exchange if: (i) the articles of incorporation of the surviving corporation will not differ from the corporation's articles (other than certain inconsequential differences), (ii) each shareholder of the surviving corporation whose shares were outstanding immediately before the effective date of the transaction will hold the same number of shares, with identical designations, preferences, limitations, and relative rights, immediately after the transaction, (iii) the number of voting shares outstanding immediately after the transaction plus the number of voting shares issuable as a result of the transaction, either by conversion or upon the exercise of rights and warrants issued pursuant to the transaction, will not exceed by more than 20 percent the total number of voting shares of the surviving corporation outstanding immediately before the transaction, and (iv) the number of participating shares (defined to mean shares that entitled their shareholders to participate without limitation in dividends) outstanding immediately after the transaction plus the number of participating shares issuable as a result of the transaction, either by the conversion or upon the exercise of rights and warrants issued pursuant to the transaction, will not exceed by more than 20 percent the total number of participating shares outstanding immediately before the transaction. In certain cases, a plan of merger or share exchange is also required to be approved separately by the holders of a class or series of shares.

<u>Amendments to the Governing Documents</u>. Under Canadian law, amendments to the articles of incorporation generally require the approval of not less than two-thirds of the votes cast by shareholders voting on the resolution. If the proposed amendment would affect a particular class of securities in certain specified ways, the holders of shares of that class would be entitled to vote separately as a class on the proposed amendment, whether or not the shares otherwise carried the right to vote. The CBCA allows the directors to make, amend or repeal any by-law. When directors make, amend or repeal a by-law, they are required under the CBCA to submit the change to shareholders at the next meeting of shareholders. Shareholders may confirm, reject or amend the by-law, the amendment or the repeal with the approval of a majority of the votes cast by shareholders who voted on the resolution.

Under the DGCL, the board of directors must first recommend the amendment to the articles of incorporation to the shareholders unless the board determines that, because of conflict of interest or other special circumstances, it cannot make a recommendation. Unless a greater level of approval is required by the articles or by the board (which can condition its submission of a proposed amendment on any basis), the amendment must be approved by (i) a majority of the votes entitled to be cast on the amendment by any voting group with respect to which the amendment would create dissenters' appraisal rights, and (ii) a majority of the votes cast by any other voting group entitled to vote on the amendment.

The DGCL also provides that the board of directors may amend or repeal a corporation's by-laws unless the articles of incorporation reserve the power exclusively to the shareholders in whole or in part or unless the shareholders, in amending, adding or repealing a particular by-law, provide expressly that the board may not amend or repeal that by-law. The foregoing notwithstanding, the shareholders may amend or repeal a corporation's by-laws even though the by-laws may also be amended or repealed by the board of directors. The proposed By-Laws of New Almonty are consistent with these DGCL provisions.

<u>Place of Meetings</u>. The CBCA provides that meetings of shareholders must be held at the place within Canada provided in the corporation's by-laws or, in the absence of such provision, at the place within Canada that the directors determine. A meeting of shareholders may be held at a place outside of Canada if the place is specified in the articles of incorporation or all the shareholders entitled to vote at the meeting agree that the meeting is to be held at that place.

The DGCL provides that meetings of the stockholders be held at any place in or outside of Delaware designated by, or in the manner provided in, the certificate of incorporation or by-laws. The proposed By- Laws of New Almonty provide that meetings of the stockholders will be held at any place designated by the board of directors, or may instead be held solely by means of remote communication as provided under the DGCL.

<u>Quorum of Shareholders</u>. The CBCA provides that, unless the by-laws provide otherwise, a quorum of shareholders is present at a meeting of shareholders (irrespective of the number of persons actually present at the meeting) if holders of a majority of the shares entitled to vote at the meeting are present in person or represented by proxy. The Company's current by-laws provide that holders of shares representing, in the aggregate, not less than 25 percent of the shares entitled to vote at a meeting of Shareholders, whether present in person or represented by proxy, will constitute a quorum at that meeting, provided that a quorum shall not be less than two persons.

Under the DGCL, the certificate of incorporation or by-laws may specify the required quorum, but generally a quorum may consist of not less than one-third of the total voting power. The proposed By-Laws of New Almonty provide that the holders of not less than one third of the voting power of the outstanding shares entitled to vote at the meeting shall constitute a quorum at a meeting of stockholders.

<u>Call of Meetings</u>. The CBCA provides that a special meeting of shareholders may be called by the directors.

In addition, the holders of not less than five percent of our issued Common Shares may requisition the directors requiring them to call and hold a special meeting for the purposes stated in the requisition.

The DGCL provides that a special meeting of the stockholders may be called by the board of directors or by any person or persons as may be authorized by the certificate of incorporation or by-laws. The proposed By-Laws of New Almonty provide that a special meeting of stockholders may be called by the directors, by the chairman of the board, the president or the chief executive officer. Accordingly, following the Domestication, Stockholders will not be permitted to call special meetings of Stockholders. New Almonty will continue to hold annual meetings of Stockholders, and in the event New Almonty fails to hold an annual meeting as required under the DGLC, any Stockholder or director of New Almonty may apply to the Delaware Court of Chancery to order that a meeting of Stockholders be held.

<u>Shareholder Consent in Lieu of Meeting</u>. Under the CBCA, shareholders can take action by written resolution and without a meeting only if all shareholders entitled to vote on that resolution sign the written resolution. Under the DGCL, unless otherwise limited by the certificate of incorporation, stockholders may act by written consent without a meeting if holders of outstanding stock representing not less than the minimum number of votes that would be necessary to take the action at an annual or special meeting execute a written consent providing for the action. Under the DGCL, a corporation shall give prompt notice of any action taken by written consent without a meeting to any stockholders who did not consent in writing and who, if the action had been taken at a meeting, would have been entitled to notice of the meeting if the record date for notice of such meeting had been the date of such written consent.

<u>Director Election, Qualification and Number</u>. The CBCA provides for the election of directors by a majority of votes cast at an annual meeting of shareholders. The CBCA states that a distributing corporation must have no fewer than three directors, at least two of whom are not officers or employees of the corporation or its affiliates. Additionally, at least twenty-five percent of the directors must be resident Canadians unless the corporation has fewer than four directors, in which case at least one director must be a resident Canadian.

The DGCL states that a corporation must have a board of directors consisting of one or more members, each of whom must be a natural person. The DGCL has no requirements regarding non-employee directors or directors resident in a certain jurisdiction. However, the governance standards of the TSX require at least two independent directors. The proposed By-Laws of New Almonty prescribe a minimum of three and a maximum of ten directors. New Almonty's By-Laws will provide for directors to be elected by a plurality of the votes cast with respect to their election or by consent in writing signed by the holders of outstanding New Almonty Shares having not less than a majority of the votes of the New Almonty Shares. In accordance with the policies of the TSX, New Almonty will remain subject to Almonty's majority voting policy, which requires a director to tender his or her resignation as a director if the number of votes cast in favour of his or her election is less than the number of votes withheld with respect to his or her election.

<u>Director Term, Removal and Filling of Vacancies</u>. The CBCA provides that a director not elected for an expressly stated term ceases to hold office at the close of the first annual meeting of shareholders following the director's election. The CBCA provides that it is not necessary that all directors elected at a meeting of shareholders hold office for the same term. Almonty's directors are elected to one-year terms expiring at the next annual meeting of Shareholders. The DGCL provides that directors of a Delaware corporation may, by the certificate of incorporation or by-laws, be divided into one, two or three classes. New Almonty's directors will be elected to one-year terms expiring at the next annual meeting of Stockholders. New Almonty's Certificate of Incorporation and By-Laws will not provide for staggered terms or a classified Board.

The CBCA provides that the shareholders of a corporation may, by an ordinary resolution passed by the majority of shareholders who voted in respect of that resolution at a special meeting, remove any director or directors from office. New Almonty's Certificate of Incorporation and By-Laws will provide that Stockholders holding a majority of the New Almonty Shares then entitled to vote at an election of directors may remove any director from office with or without cause.

The CBCA provides that, subject to any rights of shareholders (or a class of shareholders) to fill a vacancy among the directors, as set forth in the articles, a vacancy among the directors may be filled by a quorum of directors except when the vacancy results from an increase in the number or the minimum or maximum number of directors or from a failure to elect the number or minimum number of directors provided for in the articles. If there is not a quorum of directors or if there has been a failure to elect the number or minimum number of directors provided for in the articles, the directors then in office must without delay call a special meeting of shareholders to fill the vacancy and, if they fail to call a meeting or if there are no directors then in office, the meeting may be called by any shareholder. Each director appointed or elected to fill a vacancy holds office for the unexpired term of their predecessor. Almonty's articles of incorporation provide that the directors may appoint one or more additional directors within the limits provided in the CBCA.

The DGCL provides that, unless otherwise provided in the certificate of incorporation or by-laws, vacancies and newly created directorships may be filled by a majority vote of the directors then in office, even if the number of directors then in office is less than a quorum. Delaware common law also gives stockholders power to fill vacancies, unless the corporation's certificate of incorporation or by-laws provide otherwise. New Almonty's Certificate of Incorporation will provide that any newly created directorships resulting from an increase in the authorized number of directors and any vacancies on the Board shall be filled by the affirmative votes of a majority of the remaining members of the Board, even if less than a quorum, or by a sole remaining director if applicable. A director so elected shall be elected to hold office until the earlier of the expiration of the term of office of the director whom he or she has replaced, a successor is duly elected and qualified, or the earlier of such director's death, resignation or removal.

<u>Director Nominations and Shareholder Proposals</u>. The CBCA provides that a registered or beneficial holder of shares entitled to be voted at an annual meeting of shareholders may submit notice to the corporation of any matter that the person proposes to raise at the meeting, which we refer to as a "proposal", and discuss at the meeting any matter in respect of which the person would have been entitled to submit a proposal.

To be eligible to submit a proposal, a registered or beneficial shareholder must: (1) be, for at least the six- month period immediately before the day on which the shareholder submits the proposal, the registered holder or beneficial owner of at least: (a) 1% of the total outstanding voting shares of the corporation, as of the day on which the shareholder submits the proposal; or (b) the number of voting shares whose fair market value, as determined at the close of business on the day before the shareholder submits the proposal to the corporation, is at least $2,000; or (2) have the support of persons who in the aggregate, and including or not including the person that submits the proposal, have been, for at least the six-month period immediately before the day on which the shareholder submits the proposal, the registered holder or the beneficial owner of at least: (a) 1% of the total outstanding voting shares of the corporation, as of the day on which the shareholder submits the proposal; or (b) the number of voting shares whose fair market value, as determined at the close of business on the day before the shareholder submits the proposal to the corporation, is at least $2,000.

A proposal made pursuant to the CBCA may include nominations for the election of directors if the proposal is signed by one or more holders of shares representing in the aggregate not less than 5% of the shares or 5% of the shares of a class of shares of the corporation entitled to vote at the meeting to which the proposal is to be presented, but this does not preclude nominations made at a meeting of shareholders. A proposal submitted by notice to the corporation must include the name and address of the person making the proposal and of the person's supporters, if applicable, and the number of shares held or owned by the person and the person's supporters, if applicable, and the date such shares were acquired.

If the corporation solicits proxies, it must set out the proposal in its management proxy circular or attach the proposal thereto. Additionally, if so requested by the person who submits a proposal, the corporation must include in the management proxy circular or attach to it a statement in support of the proposal by the person making the proposal and the name and address of that person. The statement and the proposal must together not exceed 500 words.

The DGCL does not contain any limits on or requirements for stockholders to nominate directors or propose business for annual meetings. The By-Laws of New Almonty will provide the manner in which Stockholders may give notice of director nominations and other business (that is a proper matter for stockholder action under the DGCL) to be brought before an annual meeting. For a Stockholder to properly bring director nominations or other business before an annual meeting of Stockholders: (a) the Stockholder must have been a Stockholder of record at the time of giving notice of the nominations or other business; (b) the Stockholder must be entitled to vote at the meeting at which the nomination or other business is proposed to be considered; (c) the Stockholder must have given timely notice of the nominations or other business to the Secretary of the Company in writing; (d) such other business must otherwise be a proper matter for Stockholder action; and (e) if nominating persons for election to the Board, the Stockholder's notice must set forth, as to each person whom the Stockholder proposes to nominate for election or re-election to the Board, all information relating to the person that would be required to be disclosed in a proxy statement or other filings required to be made in connection with solicitation of proxies for election of directors in a contested election pursuant to applicable laws (including the person's written consent to being named in the proxy statement as a nominee and to serving as a director if elected).

The By-Laws of New Almonty provide that, in order to be timely, the Stockholder's notice of the nominations or other business must be delivered to the Secretary of the Company at the principal executive offices of the Company: (a) not earlier than the close of business on the 120<sup>th</sup> day and not later than the close of business on the 90<sup>th</sup> day prior to the first anniversary of the preceding year's annual meeting if such annual meeting is to be held on a day which is not more than 30 days in advance of the anniversary of the previous year's annual meeting or not later than 60 days after the anniversary of the previous year's annual meeting; or (b) with respect to any other annual meeting of Stockholders, including in the event that no annual meeting was held in the previous year, not earlier than the close of business on the 120<sup>th</sup> day prior to the annual meeting and not later than the close of business on the later of: (i) the 90<sup>th</sup> day prior to the annual meeting; and (ii) the close of business on the tenth day following the first date of public disclosure of the date of such meeting in a press release reported by the Dow Jones News Service, the Associated Press, or a comparable national news service or in a document filed by the Company with the Securities and Exchange Commission pursuant to section 13, 14 or 15(d) of the Exchange Act.

<u>Fiduciary Duty of Directors</u>. Directors of a corporation incorporated under the CBCA have fiduciary obligations to the corporation. The CBCA requires directors of a Canadian corporation, in exercising their powers and discharging their duties, to act honestly and in good faith with a view to the best interests of the corporation and to exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. The CBCA provides that, when acting with a view to the best interests of the corporation, the directors and officers of the corporation may consider, without limitation, the following factors: (a) the interests of (i) shareholders, (ii) employees, (iii) retirees and pensioners, (iv) creditors, (v) consumers, and (vi) governments; (b) the environment; and (c) the long-term interests of the corporation.

The fiduciary obligations of directors of corporations incorporated or organized under the DGCL run not just to the corporation but to the corporation's shareholders. These obligations fall into two broad categories: duty of care and a duty of loyalty. The duty of care requires a director to act in good faith, with the care an ordinarily prudent person in a like position would exercise under similar circumstances, and in a manner he or she believes to be in the best interests of the corporation. It is qualified by the business judgment rule, which protects a disinterested director from personal liability to the corporation and its shareholders if the director acted in good faith, was reasonably informed and rationally believed the action taken was in the best interests of the corporation. The duty of loyalty requires directors to exercise their powers in the interests of the corporation and not in the director's own interest or in the interest of another person (including a family member) or organization. Stated more simply, the duty of loyalty precludes directors from using their corporate position to make a personal profit or gain, or for other personal advantage.

<u>Personal Liability of Directors</u>. The CBCA prescribes circumstances where directors can be liable for malfeasance or nonfeasance. Certain actions to enforce a liability imposed by the CBCA must be brought within two years from the date of the resolution authorizing the act at issue. A director will be deemed to have complied with his fiduciary obligations to the corporation under the CBCA if he relied in good faith on:

● financial
 statements represented to him by an officer or in a written report of the auditors fairly
 reflecting the financial condition of the corporation; or

● a
 report of a person whose profession lends credibility to a statement made by the professional
 person.

The CBCA also contains other provisions limiting personal liability of a corporation's directors.

The personal liability of a director under the DGCL for breach of his or her fiduciary duty is expansive and can be established by the corporation, through a derivative action brought on behalf of the stockholders, or by an aggrieved stockholder, in a separate action. The proposed Certificate of Incorporation of New Almonty seeks to limit such personal liability, however these limitations are not effective with respect to the following proscribed conduct under the DGCL:

● any
 breach of the director's duty of loyalty to the corporation or its stockholders;

● acts
 or omissions not in good faith or which involve intentional misconduct or a knowing violation
 of law;

● an
 unlawful payment of a dividend or an unlawful stock purchase or redemption; and

● any
 transaction from which the director derived an improper personal benefit.

<u>Indemnification of Officers and Directors</u>. Under the CBCA and pursuant to our current by-laws, we will indemnify present or former directors or officers against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment that is reasonably incurred by the individual in relation to any civil, criminal, administrative, investigative or other proceeding in which the individual is involved because of his or her association with us. In order to qualify for indemnification such directors or officers must:

● have
 acted honestly and in good faith with a view to the best interests of the corporation, or,
 as the case may be, to the best interests of another entity for which the individual acted
 as director or officer or in a similar capacity at the corporation's request; and

● in
 the case of a criminal or administrative action or proceeding enforced by a monetary penalty,
 have had reasonable grounds for believing that his conduct was lawful.

We currently have indemnity agreements in place for all of our directors and officers, and we carry liability insurance for directors and officers of the Company and its subsidiaries. These agreements will continue following the Domestication, subject to any amendments necessary to reflect that New Almonty is governed by the DGCL.

The CBCA also provides that such persons are entitled to indemnity from the corporation in respect of all costs, charges and expenses reasonably incurred in connection with the defense of any such proceeding if the person was not judged by the court or other competent authority to have committed any fault or omitted to do anything that the person ought to have done, and otherwise meets the qualifications for indemnity described above.

Delaware law permits a corporation to indemnify its present or former directors and officers, employees and agents made a party, or threatened to be made a party, to any third party proceeding by reason of the fact that such person is or was a director, officer, employee or agent of the corporation, against expenses (including attorney's fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such action, suit or proceeding, if such person:

● acted
 in good faith and in a manner the person reasonably believed to be in or not opposed to the
 best interests of the corporation; and

● with
 respect to any criminal action or proceeding, had no reasonable cause to believe such conduct
 was unlawful.

In a derivative action, or an action by or in the right of the corporation, the corporation is permitted to indemnify directors, officers, employees and agents against expenses actually and reasonably incurred by them in connection with the defense or settlement of an action or suit if they acted in good faith and in a manner that they reasonably believed to be in or not opposed to the best interests of the corporation. However, in such a case, no indemnification shall be made if the person is adjudged liable to the corporation, unless and only to the extent that, the court in which the action or suit was brought or the Chancery Court of the State of Delaware shall determine upon application that such person is fairly and reasonably entitled to indemnity for such expenses despite such adjudication of liability to the corporation.

The DGCL allows the corporation to advance expenses before the resolution of an action, if in the case of current directors and officers, such persons agree to repay any such amount advanced if they are later determined not to be entitled to indemnification. The proposed By-Laws of New Almonty generally provide for mandatory indemnification and advancement of expenses of our directors and officers to the fullest extent permitted under the DGCL; provided, however, that directors and officers shall not be entitled to indemnification for actions initiated by such parties unless the board of directors authorizes such action. Following the Domestication, New Almonty will carry liability insurance for its and its subsidiaries' officers and directors.

<u>Derivative Actions</u>. Under the CBCA, a complainant, who is defined as either a present or former registered holder or beneficial owner of a security of a corporation or any of its affiliates; a present or former director or officer of a corporation or any of its affiliates; the CBCA Director; or any other person who, in the discretion of a court, is a proper person to make an application under the CBCA relating to shareholder remedies, may apply to the court for the right to bring an action in the name of and on behalf of a corporation or any of its subsidiaries, or to intervene in an existing action to which they are a party for the purpose of prosecuting, defending or discontinuing the action on behalf of the entity. Under the CBCA, the court must be satisfied that:

● the
 complainant has given proper notice to the directors of the corporation or its subsidiary
 of the complainant's intention to apply to the court if the directors of the corporation
 or its subsidiary do not bring, diligently prosecute or defend or discontinue the action;

● the
 complainant is acting in good faith; and

● it
 appears to be in the interest of the corporation or its subsidiary that the action be brought,
 prosecuted, defended or discontinued.

Under the CBCA, the court in a derivative action may make any order it sees fit including orders pertaining to the control or conduct of the lawsuit by the complainant or the making of payments to former and present shareholders and payment of reasonable legal fees incurred by the complainant.

Similarly, under Delaware law a stockholder may bring a derivative action on behalf of the corporation to enforce a corporate right, including the breach of a director's duty to the corporation. Delaware law requires that the plaintiff in a derivative suit be a stockholder of the corporation at the time of the wrong complained of and remain so throughout the duration of the suit; that the plaintiff make a demand on the directors of the corporation to assert the corporate claim unless the demand would be futile; and that the plaintiff is an adequate representative of the other stockholders.

<u>Dissenters' Rights</u>. The CBCA provides that shareholders of a corporation entitled to vote on certain matters are entitled to exercise dissent rights and demand payment for the fair value of their shares. Dissent rights exist when there is a vote upon matters such as:

● any
 amalgamation with another corporation (other than with certain affiliated corporations);

● an
 amendment to the corporation's articles of incorporation to add, change or remove any
 provisions restricting the issue, transfer or ownership of shares;

● an
 amendment to the corporation's articles of incorporation to add, change or remove any
 restriction upon the business or businesses that the corporation may carry on;

● a
 continuance under the laws of another jurisdiction;

● a
 sale, lease or exchange of all or substantially all the property of the corporation other
 than in the ordinary course of business; and

● a
 court order permitting a shareholder to dissent in connection with an application to the
 court for an order approving an arrangement proposed by the corporation.

However, a shareholder is not entitled to dissent if an amendment to the articles of incorporation is effected by a court order approving a reorganization or by a court order made in connection with an action for an oppression remedy.

The DGCL grants the holder of any class or series of shares the right to dissent from and obtain payment of the fair value of his shares with respect to any plan of merger to which the corporation is a party (other than mergers with certain subsidiary corporations) requiring shareholder approval; any plan of share exchange to which the corporation is a party as the corporation whose shares will be acquired, if the shareholder is entitled to vote on the plan; the sale or exchange of all or substantially all of the property of the corporation other than in the normal course of business, if the shareholder is entitled to vote on the sale or exchange, including a sale in dissolution, but not including a sale pursuant to court order or a sale for cash pursuant to a plan through which all of the net proceeds of sale will be distributed to the shareholders within one year; an amendment to the articles that materially and adversely affects the dissenting shareholder because it (i) alters or abolishes a preferential right, (ii) creates, alters or abolishes a right in respect of redemption, (iii) alters or abolishes a preemptive right, (iv) excludes or limits the right of shares to be voted on any matter or to accumulate votes, or (v) reduces the number of shares owned by a shareholder to a fractional share if the fractional share so created is to be acquired for cash; and any corporate action taken pursuant to a shareholder vote to the extent the articles, by-laws or a resolution of the board provides that voting or nonvoting shareholders are entitled to dissent and obtain payment for their shares.

<u>Oppression Remedy</u>. Under the CBCA, a complainant has the right to apply to a court for an order where an act or omission of the corporation or an affiliate effects a result, or the business or affairs of the corporation or an affiliate are or have been conducted in a manner, or the directors' powers are or have been exercised in a manner, that is oppressive or unfairly prejudicial to or that unfairly disregards the interests of any security holder, creditor, director or officer of the corporation. On such application, the court may make any interim or final order it thinks fit, including, without limitation, an order restraining the conduct complained of.

The DGCL does not contain a similar remedy, although causes of action seeking to obtain comparable remedies can be asserted against a corporation and its affiliates under any of several common law theories.

<u>Business Combinations</u>. Section 203 of the DGCL provides, with some exceptions, that a Delaware corporation may not engage in any business combination with a person, or an affiliate or associate of such person, who is an interested stockholder for three years from the time that person became an interested stockholder unless:

● the
 board of directors approved the transaction before the "interested stockholder"
 obtained such status;

● upon
 consummation of the transaction that resulted in the stockholder becoming an "interested
 stockholder," the "interested stockholder" owned at least 85% of a Delaware
 corporation's outstanding voting stock at the time the transaction commenced, excluding
 for purposes of determining the number of shares outstanding those shares owned (i) by persons
 who are directors and are also officers and (ii) employee stock plans in which the participants
 do not have the right to determine confidentially whether shares held subject to the plans
 will be tendered in the tender or exchange offer; or

● on
 or subsequent to such date, the business combination or merger is approved by the board of
 directors and authorized at an annual or special meeting of stockholders, and not by written
 consent, by two-thirds of the holders of the outstanding common stock not owned by the "interested
 stockholder."

A "business combination" is defined to include mergers, asset sales and other transactions resulting in financial benefit to a stockholder. In general, an "interested stockholder" is a person who, together with affiliates and associates, owns 15% or more of a corporation's voting stock or within three years did own 15% or more of a corporation's voting stock.

A corporation may, at its option, exclude itself from the coverage of Section 203 by an appropriate provision in its certificate of incorporation. The proposed Certificate of Incorporation of New Almonty does not contain such an exclusion from Section 203 of the DGCL.

There is no comparable provision relating to business combinations under the CBCA, but restrictions on business combinations do exist under applicable Canadian securities laws.

<u>Examination of Corporate Records</u>. Under the CBCA, shareholders, creditors and their personal representatives may examine certain corporate records, such as the securities register and a list of shareholders, and any other person may do so on payment of a reasonable fee. Each such person must provide an affidavit containing specific information. A list of shareholders or information from a securities register may not be used except in connection with an effort to influence the voting of shareholders of the corporation, an offer to acquire securities of the corporation or any other matter relating to the affairs of the corporation.

Under Delaware law, for any proper purpose, shareholders have the right to inspect, upon written demand under oath stating the purpose for such inspection, the corporation's stock ledger, list of stockholders and other specified books and records, and to make copies or extracts of the same. A proper purpose means a purpose reasonably related to a person's interest as a stockholder.

<u>Anti-Takeover Effects</u>. Some powers granted to companies under Delaware law may allow a Delaware corporation to make itself potentially less vulnerable to hostile takeover attempts. These powers include the ability to:

● implement
 a staggered board of directors, which prevents an immediate change in control of the board;

● require
 that notice of nominations for directors be given to the corporation prior to a meeting where
 directors will be elected, which may give management an opportunity to make a greater effort
 to solicit its own proxies;

● only
 allow the board of directors to call a special meeting of stockholders, which may deny a
 raider the ability to call a meeting to make disruptive changes;

● eliminate
 stockholders' action by written consent, which would require a raider to attend a meeting
 of stockholders to approve any proposed action by the corporation;

● remove
 a director from a staggered board only for cause, which gives some protection to directors
 on a staggered board from arbitrary removal;

● provide
 that the power to determine the number of directors and to fill vacancies be vested solely
 in the board, so that the incumbent board, not a raider, would control vacant board positions;

● provide
 for supermajority voting in some circumstances, including mergers and certificate of incorporation
 amendments; and

● issue
 "blank check" preferred stock, which may be used to make a corporation less attractive
 to a raider.

The proposed Certificate of Incorporation and By-Laws of New Almonty include the following provisions, which may discourage a hostile takeover attempt:

● a
 requirement that stockholders provide prior notice to nominate directors;

● prohibitions
 on the ability of stockholders to call a special meeting of stockholders;

● provisions
 that give the board of directors the authority to determine the number of directors and fill
 vacancies on the board of directors; and

● provisions
 that give the board of directors the authority to issue preferred stock having rights, privileges,
 limitations and other characteristics that are established by the board of directors without
 shareholder approval.

**Exhibit I**

**Section 190 of the *Canada Business Corporations Act***

 ****

**Right to dissent**

190(1) Subject to sections 191 and 241, a holder of shares of any class of a corporation may dissent if the corporation is subject to an order under paragraph 192(4)(d) that affects the holder or if the corporation resolves to

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) amend
 its articles under section 173 or 174 to add, change or remove any provisions restricting
 or constraining the issue, transfer or ownership of shares of that class;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) amend
 its articles under section 173 to add, change or remove any restriction on the business or
 businesses that the corporation may carry on;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) amalgamate
 otherwise than under section 184;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) be
 continued under section 188;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) sell,
 lease or exchange all or substantially all its property under subsection 189(3); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) carry
 out a going-private transaction or a squeeze-out transaction.

**Further right**

(2) A holder of shares of any class or series of shares entitled to vote under section 176 may dissent if the corporation resolves to amend its articles in a manner described in that section.

**If one class of shares**

(2.1) The right to dissent described in subsection (2) applies even if there is only one class of shares.

**Payment for shares**

(3) In addition to any other right the shareholder may have, but subject to subsection (26), a shareholder who complies with this section is entitled, when the action approved by the resolution from which the shareholder dissents or an order made under subsection 192(4) becomes effective, to be paid by the corporation the fair value of the shares in respect of which the shareholder dissents, determined as of the close of business on the day before the resolution was adopted or the order was made.

**No partial dissent**

(4) A dissenting shareholder may only claim under this section with respect to all the shares of a class held on behalf of any one beneficial owner and registered in the name of the dissenting shareholder.

**Objection**

(5) A dissenting shareholder shall send to the corporation, at or before any meeting of shareholders at which a resolution referred to in subsection (1) or (2) is to be voted on, a written objection to the resolution, unless the corporation did not give notice to the shareholder of the purpose of the meeting and of their right to dissent.

**Notice of resolution**

(6) The corporation shall, within ten days after the shareholders adopt the resolution, send to each shareholder who has filed the objection referred to in subsection (5) notice that the resolution has been adopted, but such notice is not required to be sent to any shareholder who voted for the resolution or who has withdrawn their objection.

**Demand for payment**

(7) A dissenting shareholder shall, within twenty days after receiving a notice under subsection (6) or, if the shareholder does not receive such notice, within twenty days after learning that the resolution has been adopted, send to the corporation a written notice containing

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 shareholder's name and address;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 number and class of shares in respect of which the shareholder dissents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a
 demand for payment of the fair value of such shares.

**Share certificate**

(8) A dissenting shareholder shall, within thirty days after sending a notice under subsection (7), send the certificates representing the shares in respect of which the shareholder dissents to the corporation or its transfer agent.

**Forfeiture**

(9) A dissenting shareholder who fails to comply with subsection (8) has no right to make a claim under this section.

**Endorsing certificate**

(10) A corporation or its transfer agent shall endorse on any share certificate received under subsection (8) a notice that the holder is a dissenting shareholder under this section and shall forthwith return the share certificates to the dissenting shareholder.

**Suspension of rights**

(11) On sending a notice under subsection (7), a dissenting shareholder ceases to have any rights as a shareholder other than to be paid the fair value of their shares as determined under this section except where

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 shareholder withdraws that notice before the corporation makes an offer under subsection
 (12),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 corporation fails to make an offer in accordance with subsection (12) and the shareholder
 withdraws the notice, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 directors revoke a resolution to amend the articles under subsection 173(2) or 174(5), terminate
 an amalgamation agreement under subsection 183(6) or an application for continuance under
 subsection 188(6), or abandon a sale, lease or exchange under subsection 189(9),

in which case the shareholder's rights are reinstated as of the date the notice was sent.

**Offer to pay**

(12) A corporation shall, not later than seven days after the later of the day on which the action approved by the resolution is effective or the day the corporation received the notice referred to in subsection (7), send to each dissenting shareholder who has sent such notice

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a
 written offer to pay for their shares in an amount considered by the directors of the corporation
 to be the fair value, accompanied by a statement showing how the fair value was determined;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if
 subsection (26) applies, a notification that it is unable lawfully to pay dissenting shareholders
 for their shares.

**Same terms**

(13) Every offer made under subsection (12) for shares of the same class or series shall be on the same terms.

**Payment**

(14) Subject to subsection (26), a corporation shall pay for the shares of a dissenting shareholder within ten days after an offer made under subsection (12) has been accepted, but any such offer lapses if the corporation does not receive an acceptance thereof within thirty days after the offer has been made.

**Corporation may apply to court**

(15) Where a corporation fails to make an offer under subsection (12), or if a dissenting shareholder fails to accept an offer, the corporation may, within fifty days after the action approved by the resolution is effective or within such further period as a court may allow, apply to a court to fix a fair value for the shares of any dissenting shareholder.

**Shareholder application to court**

(16) If a corporation fails to apply to a court under subsection (15), a dissenting shareholder may apply to a court for the same purpose within a further period of twenty days or within such further period as a court may allow.

**Venue**

(17) An application under subsection (15) or (16) shall be made to a court having jurisdiction in the place where the corporation has its registered office or in the province where the dissenting shareholder resides if the corporation carries on business in that province.

**No security for costs**

(18) A dissenting shareholder is not required to give security for costs in an application made under subsection (15) or (16).

**Parties**

(19) On an application to a court under subsection (15) or (16),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all
 dissenting shareholders whose shares have not been purchased by the corporation shall be
 joined as parties and are bound by the decision of the court; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 corporation shall notify each affected dissenting shareholder of the date, place and consequences
 of the application and of their right to appear and be heard in person or by counsel.

**Powers of court**

(20) On an application to a court under subsection (15) or (16), the court may determine whether any other person is a dissenting shareholder who should be joined as a party, and the court shall then fix a fair value for the shares of all dissenting shareholders.

**Appraisers**

(21) A court may in its discretion appoint one or more appraisers to assist the court to fix a fair value for the shares of the dissenting shareholders.

**Final order**

(22) The final order of a court shall be rendered against the corporation in favour of each dissenting shareholder and for the amount of the shares as fixed by the court.

**Interest**

(23) A court may in its discretion allow a reasonable rate of interest on the amount payable to each dissenting shareholder from the date the action approved by the resolution is effective until the date of payment.

**Notice that subsection (26) applies**

(24) If subsection (26) applies, the corporation shall, within ten days after the pronouncement of an order under subsection (22), notify each dissenting shareholder that it is unable lawfully to pay dissenting shareholders for their shares.

**Effect where subsection (26) applies**

(25) If subsection (26) applies, a dissenting shareholder, by written notice delivered to the corporation within thirty days after receiving a notice under subsection (24), may

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) withdraw
 their notice of dissent, in which case the corporation is deemed to consent to the withdrawal
 and the shareholder is reinstated to their full rights as a shareholder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) retain
 a status as a claimant against the corporation, to be paid as soon as the corporation is
 lawfully able to do so or, in a liquidation, to be ranked subordinate to the rights of creditors
 of the corporation but in priority to its shareholders.

**Limitation**

(26) A corporation shall not make a payment to a dissenting shareholder under this section if there are reasonable grounds for believing that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 corporation is or would after the payment be unable to pay its liabilities as they become
 due; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 realizable value of the corporation's assets would thereby be less than the aggregate
 of its liabilities.

## Exhibit 4.8

**Exhibit 4.8**

**MATERIAL CHANGE REPORT**

**(Form 51-102F3)**

**1.**  **<u>Name and Address of the Issuer</u>** 

Almonty Industries Inc. (the "**Company**" or "**Almonty**")

100 King Street West, Suite 5700

Toronto, Ontario M5X 1C7

**2.**  **<u>Date of Material Change</u>** 

January 29, 2025.

**3.**  **<u>News Release</u>** 

On January 29, 2025, a news release was disseminated through BusinessWire and subsequently filed on the System for Electronic Document Analysis and Retrieval (SEDAR+).

**4.**  **<u>Summary of Material Change</u>** 

Almonty Industries Inc. ("Almonty" or the "Company") (TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: ALI) announced that it has entered into an exclusive offtake agreement ("Agreement" or "Offtake") with SeAH <u>M&S</u> ("SeAH"), the largest processor of molybdenum products in South Korea and the second largest Molybdenum oxide smelter in the world, pursuant to which SeAH has agreed to purchase 100% of the material produced from Almonty's Sangdong Molybdenum Project (the "Sangdong Molybdenum Project") for life of mine.

**5.**  **<u>Full Description of Material Change</u>** 

Almonty Industries Inc. ("Almonty" or the "Company") (TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: ALI) announced that it has entered into an exclusive offtake agreement ("Agreement" or "Offtake") with SeAH <u>M&S</u> ("SeAH"), the largest processor of molybdenum products in South Korea and the second largest Molybdenum oxide smelter in the world, pursuant to which SeAH has agreed to purchase 100% of the material produced from Almonty's Sangdong Molybdenum Project (the "Sangdong Molybdenum Project") for life of mine. The Sangdong Molybdenum Project, which is being developed by Almonty's wholly owned subsidiary, Almonty Korea Moly Corp. ("AKMC"), is already fully permitted (Mining and Environmental) and is expected to begin producing by the end of 2026 with an anticipated life of mine of 60 years based on historical Korean Government data. When operating at full capacity, the mine will produce approximately 5,600 tons of molybdenum annually. SeAH is building a US$110 million metals and fabrication facility in Temple, Texas, that is slated to provide fabricated metal products to Space Exploration Technologies Corp. ("SpaceX") and to the U.S. defense and civilian aerospace sectors.

The Offtake includes a hard floor price of US$19.00/Lb. (prior to the deduction of treatment charges) to ensure financial stability and a predictable revenue base as Almonty advances this transformative project. The current price of molybdenum is approximately US$22/Lb. South Korea has a large metals and shipbuilding industries which is currently almost entirely dependent on imported molybdenum, with China being the largest single source of the metal. By supplying material from the Sangdong Molybdenum Project to SeAH, South Korea's domestic supply chain will be strengthened with reduced dependence on foreign imports and local manufacturers should greatly benefit.

The proximity of the Sangdong Molybdenum Project to Almonty's Sangdong Tungsten Project is approximately 150 metres which will allow for significant synergies that enhance logistical efficiency, reduce costs, and leverage shared infrastructure and expertise.

The Offtake represents a pivotal step in advancing AKMC and the Sangdong Molybdenum Project and aligns with Almonty's strategic plan and commitment to addressing the increasing Western demand for molybdenum, a critical material essential to numerous industries especially including defense, green energy technologies and advanced manufacturing.

**6.**  **<u>Reliance on subsection 7.1(2) of National Instrument 51-102</u>** 

Not applicable.

**7.**  **<u>Omitted Information</u>** 

Not applicable.

**8.**  **<u>Executive Officer</u>** 

Lewis Black, Chairman, President and Chief Executive Officer of Almonty, is knowledgeable about the material change and may be reached at (647) 438-9766.

**9.**  **<u>Date of Report</u>** 

February 10, 2025.

## Exhibit 4.9

**Exhibit 4.9**

**MATERIAL CHANGE REPORT**

**(Form 51-102F3)**

**1.** <u>**Name and Address of the Issuer**</u> 

Almonty Industries Inc. (the "**Company**" or "**Almonty**")

100 King Street West, Suite 5700

Toronto, Ontario M5X 1C7

**2.** <u>**Date of Material Change**</u> 

March 20, 2025.

**3.** <u>**News Release**</u> 

On March 24, 2025, a news release was disseminated through BusinessWire and subsequently filed on the System for Electronic Document Analysis and Retrieval (SEDAR+).

**4.** <u>**Summary of Material Change**</u> 

Almonty Industries Inc. ("Almonty" or the "Company") (TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: ALI) announced the appointment of General Gustave F. Perna to the Company's Board of Directors, effective March 20, 2025.

**5.** <u>**Full Description of Material Change**</u> 

Almonty Industries Inc. ("Almonty" or the "Company") (TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: ALI) announced the appointment of General Gustave F. Perna to the Company's Board of Directors, effective March 20, 2025.

**6.** <u>**Reliance on subsection 7.1(2) of National Instrument 51-102**</u> 

Not applicable.

**7.** <u>**Omitted Information**</u> 

Not applicable.

**8.** <u>**Executive Officer**</u> 

Lewis Black, Chairman, President and Chief Executive Officer of Almonty, is knowledgeable about the material change and may be reached at (647) 438-9766.

**9.** <u>**Date of Report**</u> 

March 24, 2025.

## Exhibit 4.10

**Exhibit 4.10**

**MATERIAL CHANGE REPORT**

**(Form 51-102F3)**

**1.** <u>**Name and Address of the Issuer**</u> 

Almonty Industries Inc. (the "**Company**" or "**Almonty**")

100 King Street West, Suite 5700

Toronto, Ontario M5X 1C7

**2.** <u>**Date of Material Change**</u> 

May 30, 2025.

**3.** <u>**News Release**</u> 

On June 2, 2025, a news release was disseminated through BusinessWire and subsequently filed on the System for Electronic Document Analysis and Retrieval (SEDAR+).

**4.** <u>**Summary of Material Change**</u> 

Almonty Industries Inc. ("Almonty" or the "Company") (TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: ALI) announced the appointment of Alan Estevez to the Company's Board of Directors, effective May 30, 2025.

**5.** <u>**Full Description of Material Change**</u> 

Almonty Industries Inc. ("Almonty" or the "Company") (TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: ALI) announced the appointment of Alan Estevez to its Board of Directors, effective May 30, 2025.

Mr. Estevez is a nationally recognized authority in national security, defense logistics, and strategic trade. From 2022 to 2025, he served as Under Secretary of Commerce for Industry and Security, where he led U.S. efforts to curb adversarial military advancements by restricting access to sensitive technologies, particularly in China and Russia.

Previously, he held senior roles within the U.S. Department of Defense, including Principal Deputy Under Secretary for Acquisition, Technology & Logistics, where he oversaw defense acquisition and supply chain operations. Mr. Estevez also advised Fortune 500 companies on logistics transformation during his tenure at Deloitte Consulting.

He has received numerous honours for his public service, including three Department of Defense Distinguished Public Service Medals, the Presidential Rank Distinguished Executive Award, and the Service to America Medal.

**6.** <u>**Reliance on subsection 7.1(2) of National Instrument 51-102**</u> 

Not applicable.

**7.** <u>**Omitted Information**</u> 

Not applicable.

**8.** <u>**Executive Officer**</u> 

Lewis Black, Chairman, President and Chief Executive Officer of Almonty, is knowledgeable about the material change and may be reached at (647) 438-9766.

**9.** <u>**Date of Report**</u> 

June 6, 2025.

## Exhibit 5.1

**Exhibit 5.1**

We consent to the incorporation by reference into the Registration Statement on Form F-10 (the "Form F-10") of Almonty Industry Inc. (the "Company") being filed with the United States Securities and Exchange Commission, and any amendments thereto, of our report, dated March 18, 2025, with respect to the consolidated statements of financial position of the Company as of December 31, 2024 and 2023, and the consolidated statements of operations and comprehensive loss, changes in shareholders' equity, and cash flows for the years then ended, and notes to the consolidated financial statements including material accounting policy information.

We also consent to the reference to us under the caption "Auditor, Registrar and Transfer Agent" in the short-form base prep prospectus contained in the Form F-10 and the caption "Interest of Experts" in the management information circular of the Company dated February 5, 2025 that is incorporated by reference into the Form F-10.

Toronto, Canada Chartered Professional Accountants <br> Licensed Public Accountants

## Exhibit 5.2

**Exhibit 5.2**

July 7, 2025

Almonty Industries Inc.

Dear Sirs:

**Almonty Industries Inc.** 

**Short Form Base Prospectus Dated July 7, 2025**

Reference is made to the short form base prospectus (the "Prospectus") forming part of the Registration Statement on Form F-10 filed by Almonty Industries Inc. with the U.S. Securities and Exchange Commission.

We hereby consent to the references to our firm name in the Prospectus under the headings "Enforcement of Civil Liabilities", "Legal Matters" and "Documents Filed as Part of the Registration Statement" and to the reference to our advice under the heading "Enforceability of Civil Liabilities." In giving such consent, we do not acknowledge that we come within the category of persons whose consent is required by the U.S. Securities Act of 1933, as amended, or the rules and regulations thereunder.

---

| |
|:---|
| Yours truly, |
| /s/ Norton Rose Fulbright Canada LLP |
| NORTON ROSE FULBRIGHT CANADA LLP |

---

Norton Rose Fulbright Canada LLP is a limited liability partnership established in Canada.

Norton Rose Fulbright Canada LLP, Norton Rose Fulbright LLP, Norton Rose Fulbright Australia, Norton Rose Fulbright South Africa Inc and Norton Rose Fulbright US LLP are separate legal entities and all of them are members of Norton Rose Fulbright Verein, a Swiss verein. Norton Rose Fulbright Verein helps coordinate the activities of the members but does not itself provide legal services to clients. Details of each entity, with certain regulatory information, are available at nortonrosefulbright.com.

## Exhibit 5.3

**Exhibit 5.3**

July 7, 2025

Almonty Industries Inc.

Dear Sirs:

**Almonty Industries Inc.** 

**Short Form Base Prospectus Dated July 7, 2025**

Reference is made to the short form base prospectus (the "Prospectus") forming part of the Registration Statement on Form F-10 filed by Almonty Industries Inc. with the U.S. Securities and Exchange Commission.

We hereby consent to the references to our firm name in the Prospectus under the headings "Legal Matters" and "Documents Filed as Part of the Registration Statement." In giving such consent, we do not acknowledge that we come within the category of persons whose consent is required by the U.S. Securities Act of 1933, as amended, or the rules and regulations thereunder.

---

| |
|:---|
| Yours truly, |
| /s/ Norton Rose Fulbright US LLP |
| NORTON ROSE FULBRIGHT US LLP |

---

Norton Rose Fulbright US LLP is a limited liability partnership established registered under the laws of Texas.

Norton Rose Fulbright US LLP, Norton Rose Fulbright LLP, Norton Rose Fulbright Australia, Norton Rose Fulbright Canada LLP and Norton Rose Fulbright South Africa Inc are separate legal entities and all of them are members of Norton Rose Fulbright Verein, a Swiss verein. Norton Rose Fulbright Verein helps coordinate the activities of the members but does not itself provide legal services to clients. Details of each entity, with certain regulatory information, are available at nortonrosefulbright.com.

## Ex-Filing

?xml version='1.0' encoding='ASCII'?

**Exhibit 107**

**Calculation of Filing Fee Table**

**Form F-10**

(Form Type)

**Almonty Industries Inc.**

(Exact Name of Registrant as Specified in its Charter)

Table 1: Newly Registered Securities

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | **Security Type** | **Security Class Title** | **Fee Calculation or Carry Forward Rule** | **Amount Registered** | **Proposed Maximum Offering Price Per Unit** | **Maximum Aggregate Offering Price** |  | **Fee Rate** | **Amount of Registration Fee** |  |
| Fees to Be Paid | (1) | Equity | Common Shares, no par value | Rule 457(o) | N/A | N/A | $86250000 | (2) | $0.00015310 | $13204.88 | (3) |
| Fees Previously Paid |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Total Offering Amounts | Total Offering Amounts | Total Offering Amounts | Total Offering Amounts |  | $86250000 |  |  | $13204.88 |  |
|  |  | Total Fees Previously Paid | Total Fees Previously Paid | Total Fees Previously Paid | Total Fees Previously Paid |  |  |  |  |  |  |
|  |  | Total Fee Offsets | Total Fee Offsets | Total Fee Offsets | Total Fee Offsets |  |  |  |  |  |  |
|  |  | Net Fee Due | Net Fee Due | Net Fee Due | Net Fee Due |  |  |  |  | $13204.88 |  |

---

(1) Calculated
 pursuant to Rule 457(o) under the Securities Act of 1933, as amended (the "**Securities Act** ").
 There are being registered under this Registration Statement such indeterminate number of common shares
 ()"**Common Shares**") of Almonty Industries Inc. (the "**Registrant** ")
 as shall have an aggregate offering price not to exceed $86,250,000.

(2) Estimated
 solely for the purpose of calculation the amount of the registration fee pursuant to Rule 457(o) under
 the Securities Act.

<u>Table 2: Fee Offset Claims and Sources</u> N/A

<u>Table 3: Combined Prospectuses</u> N/A