Drawdown of US$75 Million KfW Loan Imminent Following Satisfaction of All Conditions Precedent | national company

TORONTO–(BUSINESS WIRE)–February 7, 2022–

Almanty Industries Inc. (“ Almaty “or the” Society ”) (TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: 1MR) is pleased to announce an update regarding KfW’s US$75.1 million loan facility.

Almonty informs that it has received the completion of the letter of conditions precedent from KfW. Almonty has now satisfied all 110 conditions precedent.

After the equity balance has been transferred to the loan account held in Korea by Almonty Korea Tungsten Company (AKTC) and payment of various financing fees is completed, which is usual for project finance loans , the bank can then move on to issuing the draw letter and the first draw will begin.

Almonty Chairman and CEO Lewis Black commented:

“This is a monumental opportunity for Almonty and its shareholders, with the withdrawal of the US$75.1 million KfW loan now imminent after approximately five years of hard work, due diligence and cooperation from all parties. stakeholders.

Completion of KfW’s US$75.1 million loan means the largest tungsten mine outside China, with one of the highest grades in the world and located in South Korea, the most world’s largest per capita user of tungsten, is now on track to complete construction as planned.

I strongly believe it has been worth the effort and patience required by shareholders, with the KfW loan facility attracting very low interest rates, with an expected overall cost of around 2-3%. The quality of the lender and their continued support for our continued growth will be a critical factor in Almonty’s continued success and enable us to respond to the changing demand dynamics we are currently witnessing in the technology sector.

The timing of the cut couldn’t have been better from a tungsten market perspective, with the price of tungsten rising 45% in the past 12 months to $338 per MTU, at a time when we are experiencing growing demand. from sources outside of China. , particularly in the South Korean and European semiconductor and battery sectors.

We are currently at approximately 15% of Sangdong’s total construction and now, with the withdrawal of the KfW loan, the company can accelerate construction towards commissioning which is on track for Q4 2022. Our underground development is complete over 27% and is already 6 months ahead of schedule. I am extremely pleased that we decided at Almonty to secure and fix prices last year on most of the equipment on order, which has protected us from recent inflationary increases in equipment prices.

The terms and conditions of the loan facility approved by the KfW-IPEX Credit Committee include:

  1. The principal amount of the senior project financing loan will be $75.1 million;
  2. Interest Rate — 3-month London Interbank Offered Rate (LIBOR) plus 2.5%. LIBOR will be replaced by SOFR. (Guaranteed Overnight Funding Rate);
  3. 6.25 year term with an initial principal repayment holiday during construction and quarterly principal repayments commencing after the second anniversary of the initial drawdown; and
  4. Oesterreichische Kontrollbank AG (OeKB) has agreed to provide an import credit scheme cover guarantee based on the previously announced long-term off-take agreement, which was published in February 2020.

About Almaty

The principal activity of Almanty Industries Inc., based in Toronto, Canada, is the mining, processing and shipping of tungsten concentrate from its Los Santos mine in western Spain and its Panasqueira 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 kilometers from Salamanca in western Spain and produces tungsten concentrate. The Panasqueira mine, which has been in production since 1896, is located approximately 260 kilometers 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 high-grade, long-lived tungsten deposits outside of China, was acquired in September 2015 by the acquisition of a 100% stake in Woulfe Mining Corp. Almonty owns 100% of the Valtreixal tin-tungsten project in northwest Spain. Further information about Almonty’s business is available at www.almonty.com and under Almonty’s profile at www.sedar.com.

Legal notice

The publication, publication or distribution of this announcement in certain jurisdictions may be restricted by law and, accordingly, persons in such jurisdictions in which this announcement is published, published or distributed should inform themselves of 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 Regarding Forward-Looking Information

When used in this press release, the words “estimate”, “project”, “believe”, “anticipate”, “intend”, “expect”, “plan”, “predict “, “may” or “should” and the negative of these words or such variations or comparable terminology are intended to identify forward-looking statements and information. Such statements and information are based on management’s beliefs, estimates and opinions as of the date the 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 differ materially from those expressed or implied by these forward-looking statements, including but not limited to: any specific risk associated with fluctuations in the price of ammonium para tungstate (“APT”) from which the selling 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 developed. information, forecasts and assessments relating to Almonty’s business, credit and liquidity risk, hedging risk, competition in the mining industry, risks relating to the market price of Almonty’s stock, Almonty’s ability to retain key management employees or to obtain the services of qualified and experienced qualified personnel, risks relating to claims and legal proceedings against Almonty and the one of its operating mines, risks relating to unknown defects and deficiencies, risks relating to the adequacy of internal control over financial reporting, risks relating to government regulations, including environmental regulations, risks relating to international operations of Almonty, risks relating to the exploration, development and operation of Almonty’s tungsten mines, Almonty’s ability to obtain and maintain necessary permits, Almonty’s ability to comply with laws, applicable regulations and permitting requirements, lack of appropriate infrastructure and employees to support Almonty’s mining operations , uncertainty as to the accuracy of mineral reserves and mineral resource estimates, production estimates from Almonty’s mining operations, the inability to replace and expand mineral reserves, uncertainties relating to title and aboriginal rights with respect to mineral properties owned directly or indirectly by Almonty, Almonty’s ability to obtain adequate financing, Almonty’s ability to complete permits, construction, development and expansion, challenges relating to the terms global financial markets, risks associated with future sales or issuance of equity securities, differences in the interpretation or application of tax laws and regulations or accounting policies and rules, and the TSX’s acceptance of listing of the shares of Almanty on the TSX.

Forward-looking statements are based on assumptions that management believes are reasonable, including, but not limited to, no material adverse changes in the market price of ammonium para tungstate (APT), the continued ability to fund or securing funding for ongoing commitments, expectations regarding the resolution of legal and tax issues, no negative changes to applicable laws, the ability to find local contractors, employees and assistance as needed and on

reasonable terms, and other assumptions and factors as set forth 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 the forward-looking statements, there may be other factors that cause the results, level of activity, performance or achievements not to be as expected, estimated or expected. There can be no assurance that forward-looking statements will prove to be accurate, and even if events or results described in forward-looking statements occur or substantially materialize, there can be no assurance that they will have the anticipated consequences or effects on, Almonty. Accordingly, readers should not place undue reliance on forward-looking statements and are cautioned that actual results may vary.

Investors are cautioned against attributing undue certainty to forward-looking statements. Almonty cautions that the foregoing list of important 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 as well as other uncertainties and potential events.

Almonty has also assumed that important factors will not cause the forward-looking statements and information to differ materially from actual results or events. However, the list of such 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 ALMONTY’S EXPECTATIONS AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT ATTACK UNBIDDEN IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY ON SUCH INFORMATION AS OF ANY OTHER DATE. ALMONTY MAY CHOOSE TO DO SO, IT DOES NOT COMMIT TO UPDATING THIS INFORMATION AT ANY PARTICULAR TIME, EXCEPT AS REQUIRED UNDER APPLICABLE LAW.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220207005130/en/

CONTACT: Lewis Black

Chairman, President and CEO

Telephone: +1 647 438-9766

Email: [email protected]

KEYWORD: NORTH AMERICA CANADA

SECTOR KEYWORD: PROFESSIONAL SERVICES NATURAL RESOURCES MINES/MINERALS FINANCE

SOURCE: Almanty Industries Inc.

Copyright BusinessWire 2022.

PUBLISHED: 02/07/2022 08:00 AM/DISC: 02/07/2022 08:02 AM

http://www.businesswire.com/news/home/20220207005130/en

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