Sandong Tungsten Mine Site Visit by Governor of Gangwon Special Self-Governing Province and County Mayor of Yeongwol

Rhea-AI Summary

On July 3, 2024, Kim Jin-tae, Governor of Gangwon Special Self-Governing Province, visited Almonty Industries' tungsten mine redevelopment site in Sangdong-eup, Yeongwol county, South Korea. Accompanied by Yeongwol County Mayor Choi Myung-seo, they explored the 1.3 km of transport portals built by Almonty. Governor Kim emphasized the economic revival the mine will bring. Almonty Korea Tungsten VP, Ryu Woo-Jong, highlighted the investment of nearly 130 billion KRW (approx. US$94 million) since 2015, with plans for an additional 50 billion KRW (approx. US$36 million) by mid-2025. This investment is expected to generate over 500 billion KRW (approx. US$360 million) in economic impact and create 1,800 jobs. The Sangdong processing plant will begin producing 65% WO3 high-grade tungsten concentrate soon, while a tungsten oxide production plant is planned for completion by 2027. Until then, the concentrate will be processed abroad.

Positive

• Investment of US$94 million since 2015 in Sangdong Mine redevelopment.
• Planned additional investment of US$36 million by mid-2025.
• Economic impact of over US$360 million within Gangwon Special Self-Governing Province.
• Creation of up to 1,800 jobs, both directly and indirectly.
• Production of 65% WO3 high-grade tungsten concentrate to commence shortly.

Negative

• Current need to export tungsten concentrate abroad for processing until the completion of the tungsten oxide plant in 2027.

TORONTO--(BUSINESS WIRE)-- Almonty Industries Inc. (“Almonty” or the “Company”) (TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: ALI) is pleased to announce that on the 3rd of July, 2024, Kim Jin-tae, the Governor of Gangwon Special Self-Governing Province, toured Almonty’s tungsten mine redevelopment site in Sangdong-eup, Yeongwol county, South Korea. Governor Kim was briefed on the redevelopment status of Almonty’s Sangdong Mine with Choi Myung-seo, the County Mayor of Yeongwol, and toured 1.3 km of the main transport portals built by Almonty.

Sangdong Site Visit by Governor of Gangwon Special Self-Governing Province and County Mayor of Yeongwol - July 2024 (Photo: Business Wire)

At the site, Governor Kim stated, "The Sangdong Tungsten Mine, which has been closed for over 30 years, is coming back to life. I am very pleased that tungsten production will revive the economy of the abandoned mine area and strengthen resource security."

Ryu woo-jong, a Vice President of Almonty’s wholly-owned subsidiary, Almonty Korea Tungsten Corporation, (“AKTC”) said, "AKTC will not only mine and sell concentrate tungsten, boasting the largest reserve and highest grade of any single mine globally, but also plans to complete a tungsten oxide production plant in Yeongwol by 2027 to establish a domestic tungsten product pipeline."

Mr Ryu Woo-Jong added that since acquiring the mining rights to the Sangdong Mine in 2015, nearly 130 billion KRW (equivalent of approximately US$94 million) has been invested in its redevelopment. "An additional 50 billion KRW (equivalent of approximately US$36 million) will be invested by the first half of 2025, resulting in an economic impact of over 500 billion KRW (equivalent of approximately US$360 million) within Gangwon Special Self-Governing Province and the creation of up to 1,800 jobs (directly and indirectly)."

Once the Sangdong processing plant, which is currently being constructed by Almonty, is completed, around 65% WO3 high-grade tungsten concentrate will be produced in Sangdong Mine shortly. However, until Almonty completes the tungsten oxide plant in Yeongwol, the tungsten concentrate produced from the Sangdong Tungsten Mine will be exported abroad to be processed into tungsten oxide needed by domestic South Korean companies for use in semiconductor and secondary battery production, and then re-imported to South Korea.

About Almonty

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 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% interest in Woulfe Mining Corp. Almonty owns 100% of the Valtreixal tin-tungsten project in north- western Spain. Further information about Almonty’s activities may be found at www.almonty.com and under Almonty’s profile at www.sedar.com.

Legal Notice

The release, publication, or distribution of this announcement in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published, or distributed should inform themselves about and observe such restrictions.

Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

Disclaimer for Forward-Looking Information

When used in this press release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. These statements and information are based on management’s beliefs, estimates and opinions on the date that statements are made and reflect Almonty’s current expectations.

Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Almonty to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: any specific risks relating to fluctuations in the price of ammonium para tungstate (“APT”) from which the sale price of Almonty’s tungsten concentrate is derived, actual results of mining and exploration activities, environmental, economic and political risks of the jurisdictions in which Almonty’s operations are located and changes in project parameters as plans continue to be refined, forecasts and assessments relating to Almonty’s business, credit and liquidity risks, hedging risk, competition in the mining industry, risks related to the market price of Almonty’s shares, the ability of Almonty to retain key management employees or procure the services of skilled and experienced personnel, risks related to claims and legal proceedings against Almonty and any of its operating mines, risks relating to unknown defects and impairments, risks related to the adequacy of internal control over financial reporting, risks related to governmental regulations, including environmental regulations, risks related to international operations of Almonty, risks relating to exploration, development and operations at Almonty’s tungsten mines, the ability of Almonty to obtain and maintain necessary permits, the ability of Almonty to comply with applicable laws, regulations and permitting requirements, lack of suitable infrastructure and employees to support Almonty’s mining operations, uncertainty in the accuracy of mineral reserves and mineral resources estimates, production estimates from Almonty’s mining operations, inability to replace and expand mineral reserves, uncertainties related to title and indigenous rights with respect to mineral properties owned directly or indirectly by Almonty, the ability of Almonty to obtain adequate financing, the ability of Almonty to complete permitting, construction, development and expansion, challenges related to global financial conditions, risks related to future sales or issuance of equity securities, differences in the interpretation or application of tax laws and regulations or accounting policies and rules and acceptance of the TSX of the listing of Almonty shares on the TSX.

Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to, no material adverse change in the market price of ammonium para tungstate (APT), the continuing ability to fund or obtain funding for outstanding commitments, expectations regarding the resolution of legal and tax matters, no negative change to applicable laws, the ability to secure local contractors, employees and assistance as and when required and on reasonable terms, and such other assumptions and factors as are set out herein. Although Almonty has attempted to identify important factors that could cause actual results, level of activity, performance or achievements to differ materially from those contained in forward-looking statements, there may be other factors that cause results, level of activity, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate and even if events or results described in the forward-looking statements are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Almonty. Accordingly, readers should not place undue reliance on forward-looking statements and are cautioned that actual outcomes may vary.

Investors are cautioned against attributing undue certainty to forward-looking statements. Almonty cautions that the foregoing list of material factors is not exhaustive. When relying on Almonty’s forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events.

Almonty has also assumed that material factors will not cause any forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF ALMONTY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD- LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE ALMONTY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240708772704/en/

Lewis Black

Chairman, President and CEO

+1 647 438-9766

info@almonty.com

Source: Almonty Industries Inc.

FAQ

What is the significance of Governor Kim Jin-tae's visit to Almonty's Sangdong Mine?

Governor Kim Jin-tae's visit to Almonty's Sangdong Mine highlights the economic and resource security potential of the mine's redevelopment, emphasizing its revival after being closed for over 30 years.

How much has Almonty invested in the redevelopment of the Sangdong Tungsten Mine?

Almonty has invested nearly 130 billion KRW (approx. US$94 million) in the Sangdong Tungsten Mine redevelopment since 2015, with plans for an additional 50 billion KRW (approx. US$36 million) by mid-2025.

What is the expected economic impact of Almonty's investment in Gangwon Special Self-Governing Province?

Almonty's investment is expected to generate an economic impact of over 500 billion KRW (approx. US$360 million) within Gangwon Special Self-Governing Province and create up to 1,800 jobs.

When will Almonty's Sangdong Mine begin producing high-grade tungsten concentrate?

The Sangdong Mine is expected to begin producing 65% WO3 high-grade tungsten concentrate shortly after the completion of the processing plant.

Why is Almonty exporting tungsten concentrate abroad?

Almonty is exporting tungsten concentrate abroad for processing into tungsten oxide until the completion of its tungsten oxide production plant in Yeongwol by 2027.