Mr. Lewis Black reports

CONSTRUCTION UPDATE AT SANGDONG TUNGSTEN MINE

Almonty Industries Inc. has provided a construction and financing update in relation to its Sangdong tungsten mine.

As announced on April 3, 2023, construction works are continuing to progress in accordance with the company's construction schedule and the total amount drawn under the KfW loan facility now stands at $32.3-million.

In April, 2023, engineering staff from the Sangdong tungsten mine team and members of the EPC (engineering, procurement, construction) 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 tungsten mine.

As national demand for the reinforcement and implementation of regulations and promotion of safety awareness has increased, the company has conducted HSE (health, safety and environment) training and has 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 tungsten mine.

Almonty is pleased to advise that the installation of the new four-megawatt (MW) power system, replacing the temporary 950-kilowatt (kw) system, for the mine infrastructure, was completed successfully in March, 2023, without incident. The Korea Electrical Safety Corp. (KESCO) performed the preuse inspection and issued the use certificate for the four MW power system. The power supply expansion is expected to provide stable power to the Sangdong tungsten 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 is nearing completion. Ninety-nine per cent of all equipment related to the ball mill and SAG mill has arrived in South Korea. The final drive is now expected to arrive in May, 2023.

All engineering plans have been finalized, and surface scalping has begun for essential prework to prepare the site for civil construction.

Key equipment items, including ultrafine screens, apron feeders and flotation tanks are nearing completion from the manufacturer, and Metso Outotec will shortly begin the process of preparing documentation for the equipment. Almonty currently estimates that 75 per cent of the light short-lead-time equipment will be loaded for transport to South Korea in May, 2023.

In recent months, members of the local governments, as well as representatives of the Sangdong village and surrounding areas, have visited the site to show continuous interest in the development status of the project and to encourage the hard work and efforts of Almonty employees.

Lewis Black, Almonty's chairman, president and chief executive officer, commented:

"Building a mine in a mature and developed democracy is a deeply engaging process which includes not only the physical build of the project but also how the project co-exists with the community and the environment both prior, during and after completion. We are building what we expect to be the largest tungsten mine outside of China, with a very long mine life, which will have a profound and positive affect on the local and domestic community, after decades of economic stagnation for both the South Korean domestic consumption of tungsten and the wider global tungsten market.

"We are striving for the Sandong tungsten mine to be the most technically advanced of any tungsten mine in the world, and the most ESG (environmental, social and governance)-compliant and therefore the most transparent.

"As we continue to advance the mine towards commissioning, it is now my job to ensure that the wider investing market knows more about our Tier 1 project and about this profound effect this mine will have not only in sectors such as technology -- batteries, screens, semiconductors -- but also defence, an area which is now significantly increasing its global importance, particularly in the USA."

About Almonty Industries Inc.

The principal business of Almonty Industries, based in Toronto, Canada, is the mining, processing and shipping of tungsten concentrate from its Los Santos mine in western Spain and its Panasqueira mine in Portugal, as well as the development of its Sangdong tungsten mine in Gangwon province, South Korea, and the development of the Valtreixal tin/tungsten project in northwestern Spain. 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, is located approximately 260 kilometres 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-per-cent interest in Woulfe Mining Corp. Almonty owns 100 per cent of the Valtreixal tin-tungsten project in northwestern Spain.

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