Almonty Industries Inc. Announces That It Has Signed a Ten Year Off-Take Agreement with a Guaranteed Minimum Value CDN$500,000,000 for Its Wholly-Owned Sangdong Tungsten Mine in South Korea

TORONTO–(BUSINESS WIRE)–Almonty Industries Inc. (TSX-V: AII):

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN
THE UNITED STATES

Almonty Industries Inc. (“Almonty” or the “Company”) (TSX-V: AII) is
pleased to announce that it has entered into a new off-take agreement
dated March 12, 2018, (the “Off-Take Agreement”) with an existing
customer (the “Customer”) for the tungsten concentrate to be mined and
processed at the Company’s wholly-owned Sangdong Tungsten Mine in South
Korea. The agreement has a term of 10 years and, based upon current
pricing models and, subject to the terms and conditions of the
agreement, the agreement calls for guaranteed revenues for the Company
for a minimum of CDN$500,000,000.

Lewis Black, Chief Executive Officer of Almonty commented: “We are
pleased to have been able to negotiate and execute the single largest
underwritten minimum revenue guaranteed supply agreement in the modern
era in Tungsten for our wholly-owned Sangdong Mine. We now have total
downside protection for our output and no cap on the upside ensuring the
long-term viability of the Sangdong Mine regardless of market
conditions. This agreement is testament to the strength and long-term
viability of the project and the Almonty operating team. We believe that
the outcome of this agreement in conjunction with our other operating
and development Tungsten assets will ensure our continuing market
dominance as a Western-based Tungsten producer for many years to come.”

Related Party Transaction

The Customer is a related party to Almonty holding beneficial ownership
of securities of Almonty carrying more than 10% of the voting rights
attached to all of Almonty’s outstanding voting securities. Accordingly,
the entering into of the Off-Take Agreement is deemed to be a “related
party transaction” as defined under Multilateral Instrument
61-101-Protection of Minority Security Holders in Special Transactions (“MI
61-101”
). The Off-Take Agreement is exempt from the formal valuation
and minority shareholder approval requirements of MI 61-101 pursuant to
subsections 5.5(d) and 5.7(1)(c) as the transactions contemplated by the
Off-Take Agreement will consist of the purchase and sale in the ordinary
course of business of the Company of inventory consisting of personal or
movable property of the Company and the Off-Take Agreement was approved
by the Board of Directors of the Company.

The transactions contemplated by the Off-Take Agreement will not have
any effect on the percentage of securities of Almonty beneficially owned
or controlled by the Customer.

Other than the Off-Take Agreement as it relates to the Customer, the
Company has not entered into any agreement with an interested party or a
joint actor with an interested party in connection with the Off-Take
Agreement.

The Board of Directors unanimously approved entering into the Off-Take
Agreement on the basis that it represents an agreement on advantageous
commercial terms to the Company and enables the Company to satisfy one
of the final conditions to the financing arrangements the Company is
pursuing in respect of the development of its Sangdong Project. Further,
the Customer is the principal customer under the Company’s principal
supply agreements in respect of Almonty’s other projects and the Company
has had a long-term constructive working relationship with such Customer.

About Almonty

The principal business of Almonty is the mining, processing and shipping
of tungsten concentrate from its Los Santos Mine in western Spain, its
Wolfram Camp Mine in north Queensland, Australia and its Panasqueira
mine in Portugal as well as the development of the Sangdong tungsten
mine in Gangwon Province, Korea and the Valtreixal tin/tungsten project
in north western 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 Wolfram Camp
Mine was acquired by Almonty in September 2014 and is located
approximately 130 kilometres west of Cairns in northern Queensland,
Australia and produces tungsten and molybdenum 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 northwestern 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 TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
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. This press release contains forward-looking
statements. 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 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-V of the listing of Almonty shares on the
TSX-V.

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, 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.

Contacts

Almonty
Lewis Black, +1 647 438-9766
Chairman,
President and CEO
lewis.black@almonty.com