Mr. Roy Bonnell reports

ALLIED CRITICAL METALS ANNOUNCES RECEIPT OF ENVIRONMENTAL PERMIT FOR THE BORRALHA TUNGSTEN PROJECT IN PORTUGAL

The Portuguese Environment Agency (Agencia Portuguesa do Ambiente IP) has issued a favourable environmental impact declaration, subject to standard regulatory conditions (Declaracao de Impacte Ambiental Favoravel Condicionada) for its 100-per-cent-owned Borralha tungsten project, located in the municipality of Montalegre in northern Portugal.

The receipt of the DIA is in addition to the company's receipt of a formal letter of recognition from the idD Portugal Defense, the Portuguese public entity overseeing the nation's defence industry, that acknowledges Allied's leadership role in re-establishing tungsten production in Portugal. idD Portugal Defense has endorsed Allied's Borralha tungsten product as a strategic initiative of national importance with direct impact on Portugal's and Europe's defence supply chains.

This key regulatory milestone clears a major hurdle in the company's path toward development and eventual production, strengthening Allied's ability to advance the Borralha project -- one of Europe's most significant tungsten assets -- within a responsible environmental and social governance framework.

Highlights:

• Favourable environmental impact declaration has been formally issued by the Portuguese Environment Agency for the Borralha tungsten project subject to standard regulatory conditions;
• Major permitting milestone achieved, enabling advancement to the project of execution and RECAPE (environmental compliance report of the execution project) stage and subsequent licensing phase;.
• Strategic tungsten project within the European Union, aligned with the EU Critical Raw Materials Act, supporting diversification of supply for critical industrial and defence-related applications;
• Greenlights proposed modern underground mining development, incorporating closed-loop water management, filtered dry-stacked tailings, and comprehensive environmental monitoring and mitigation measures;
• Opportunity to contribute to regional economic development in the municipality of Montalegre, northern Portugal, through employment, local procurement and long-term investment;
• The company is on pace with its project development aiming toward an industrial-scale processing plant at Borralha, expected to be completed and in production by the end of 2027.

The DIA confirms the environmental acceptability of the Borralha project and represents a significant regulatory milestone. The approval allows the project to advance to the project of execution and environmental compliance report stage and to subsequent licensing phases in accordance with Portuguese environmental and mining legislation.

Roy Bonnell, chief executive officer and director of Allied, commented: "The issuance of the environmental impact declaration for the Borralha project represents an important regulatory milestone for Allied. This approval reflects the quality of the technical and environmental work completed to date and allows the company to advance the Borralha project into the next stage of permitting and detailed engineering, subject to compliance with the conditions set out by the Portuguese authorities."

Joao Barros, president, chief operating officer and director of Allied, commented: "The Borralha project is part of Portugal's mining history, and this approval creates the conditions for a new chapter based on modern environmental standards, transparency and respect for local communities. The Borralha project offers an opportunity to address historical environmental legacies while generating skilled employment and economic activity in the interior of the country. The company is fully committed to working closely and constructively with local communities, the municipality and public authorities throughout all stages of the Borralha project."

Project overview and strategic context

The Borralha project is an underground mining development, targeting the production of tungsten, with byproducts copper and tin concentrates. Tungsten is designated as a critical raw material under the European Union Critical Raw Materials Act (Regulation 2024/1252), and is used in a range of industrial, energy transition and defence-related applications.

The company considers the Borralha project to have the potential to contribute to European supply diversification of tungsten and to Portugal's role in the development of strategic raw material supply chains within the European Union and allied markets.

Environmental assessment and project design

The environmental approval was based on an environmental impact assessment that evaluated the Borralha project's potential effects on environmental, social and cultural factors and identified mitigation, monitoring and compensation measures to be implemented during construction, operation and closure.

Key design features assessed as part of the EIA include:

• Underground mining with limited surface disturbance;
• Closed-loop water management systems;
• Filtered tailings with dry stacking;
• Environmental monitoring and contingency plans;
• Rehabilitation of historical mine waste and legacy environmental liabilities; and
• Protection of water resources, ecosystems and cultural heritage.

The APA concluded that, subject to the implementation of prescribed conditions, the project may proceed from an environmental perspective.

The APA's favourable decision represents a significant derisking milestone for the Borralha project and reflects the extensive and rigorous work undertaken during the environmental impact assessment process. The EIA was co-ordinated and led by Joao Barros, on behalf of the project partners, and delivered through the dedicated efforts of Allied's technical team, supported by a range of specialized national and international consulting partners with expertise in mining engineering, geology, environmental sciences, ecology, water resources, social impact, cultural heritage and risk assessment. This collective technical effort underpinned the robust assessment framework that ultimately supported the positive environmental decision issued by the APA.

Regional and socio-economic considerations

The Borralha project is located in the parish of Salto, including the village of Borralha, within the municipality of Montalegre. The Borralha project is expected, subject to further permitting and development decisions, to generate direct and indirect employment, support local and regional suppliers, and contribute to economic activity in an interior region of Portugal.

As required under the DIA, the company will develop and implement social development, community engagement and environmental monitoring programs during the next phases of project development.

Next steps

Following receipt of the DIA, the company intends to:

• Prepare the Borralha project of execution and RECAPE documentation;
• Advance detailed engineering and technical studies;
• Undertake additional environmental and social studies required by the approval conditions; and
• Continue engagement with regulatory authorities and local stakeholders.

There can be no assurance that subsequent permits will be granted or that the project will proceed to construction or operation.

About Allied Critical Metals Inc.

Allied Critical is a Canadian-based mining company focused on the expansion and revitalization of its 100-per-cent-owned past-producing Borralha tungsten project and the Vila Verde tungsten project in northern Portugal. Tungsten has been designated a critical metal by the United States and other western countries as they are aggressively seeking friendly sources of this unique metal. Currently, China, Russia and North Korea represent approximately 87 per cent of the total global supply and reserves. The tungsten market is estimated to be valued at approximately $5-billion (U.S.) to $6-billion (U.S.), and it is used in a variety of industries such as defence, automotive, manufacturing, electronics and energy.

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