Lewis Black and the Plansee Group Conclude Share Sale/Purchase Prior to KfW IPEX Bank Financial Close for the Construction of the Sangdong Tungsten Mine

Almonty Industries Inc. (“Almonty” or the “Company”) (TSX: AII / OTCQX: ALMTF / Frankfurt: ALI.F) announces that the Plansee Group has concluded the agreement to purchase 10,587,056 shares at $1.06 from Lewis Black as part of the previously contemplated transaction announced in December 2020. This transaction provided Almonty with both a US$20m cost overrun guarantee dedicated to the construction of the Sangdong project and a further non-dilutive US$10m guarantee to cover the DRSA (reserve account) required by KfW IPEX Bank as a condition of the loan to replace the more normal cash equity that would have had to be provided otherwise and represented one third of the total equity required.

Mr Karlheinz Wex, spokesman of the Plansee Group executive board commented:

“A reliable Tungsten supply has never been more important than now to our current strategy. The Almonty team is considered the best Tungsten operational team outside of China and, when combined with the largest both in grade and longevity non-Chinese Tungsten mine at Sangdong, we have decided to support a project that will be a central pillar of our tungsten raw material supply strategy for many years to come. We have now increased our position to become the largest shareholder in Almonty Industries and Lewis will move to be the second largest shareholder maintaining his position of more than 20,000,000 shares. Having already provided US$30m of guarantees to the company, we intend to continue to support Mr. Black and his team to ensure an on time and successful build of what will be the cornerstone of our raw materials strategy for Tungsten.”

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, 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 northwestern Spain. Further information about Almonty’s activities may be found at www.almonty.com and under Almonty’s SEDAR profile at www.sedar.com.

For further information, please contact:
Almonty
Lewis Black
Chairman, President and CEO
Telephone: +1 647 438-9766
Email: lewis.black@almonty.com

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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 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 regulati