Highlights:

• Completion of pilot plant test works for trial tungsten concentrate production across two locations: South Korea and Portugal
• Clears path for processing plant equipment installation at Sangdong by Metso.

Almonty Industries Inc. ("Almonty" or the "Company") (TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: ALI.F), is pleased to announce 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.

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Pilot Processing Plant Testwork at Almonty’s Pilot Plant (Photo: Business Wire)

The Company has developed a specialized flotation technique tailored to the unique properties of Sangdong’s tungsten ore through a tireless number of lab-scale and continuous process tests at the Korea Institute of Geoscience and Mineral Resources (“KIGAM”). Scaling up this process required further verification on a larger scale. The pilot plant trial production was crucial not only for identifying potential challenges in the main plant but also for acquiring operational expertise prior to full-scale production.

Therefore, prior to the processing plant's construction, tungsten ore from the Sangdong Mine was processed at two pilot plants, each representing 1/500th the size of the actual plant. The pilot plant trial production was conducted at two locations—Portugal during September, 2023 and the Sangdong mine during July and August, 2024 —validating the stability of the Company’s proprietary flotation processing technology.

These tests were carried out at the National Laboratory for Energy and Geology (“LNEG”) in Portugal, and at Sangdong, using equipment commissioned by the Korea Energy Technology Evaluation and Planning (“KETEP”) under the Ministry of Trade, Industry, and Energy. As a result, the Company successfully produced tungsten concentrate (“WO₃”) with a content of over 60%.

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.

Mr Lewis Black, Chairman, President and CEO commented: “With the successful completion of the pilot plant phase, all preliminary preparations related to process technology development and equipment performance validation have been finalized. With minor adjustments to the equipment and reagents at the processing plant currently under construction, we anticipate stable production of tungsten concentrate from our Sangdong Mine during 2025. The time we have spent building and operating two pilot plants in Korea and Portugal has been essential to ensure the main plant works out the gate. We have been operating the two pilot plants for almost three years, so we have been able to refine and perfect the processing which will ensure a quick and smooth processing commissioning. We are a go.”

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.sedarplus.ca.

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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.

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