Almonty Industries (AII) investor relations material

Strategy and market outlook

• China has historically supplied ~80% of tungsten; export licensing and reduced mine output have tightened Western intermediate supply, with availability—not just price—a constraint.

• China became a net tungsten importer for the first time in 2025; one or two mines with combined capacity of 4,000 tons must start outside China each year just to offset its reduced output.

• Demand growth is shifting toward defense, electronics, batteries and fracking, where recycling is limited; fusion reactors may require 100–200 tons for plasma chambers, replaced every 2–3 years.

• Strategy includes selective resource growth and downstream expansion to retain margin if prices soften as Chinese recycling matures in 5–7 years.

• U.S. restrictions on China-, North Korea-, Myanmar- and Russia-origin tungsten in defense supply chains take effect Jan. 1, 2027, increasing the importance of traceable supply.

Operations and offtake

• Sangdong is online and ramping; shipments are being prepared, and design output and specifications are expected within 60 days.

• Sangdong phase 1 capacity is 640,000 tons per annum; phase 2 is planned to double capacity to 1.2 million tons per annum, with equipment ordering and underground planning underway.

• Sangdong’s GTP offtake was extended by six years; pricing increased across the contract, the prior discount was removed, and title will pass in the U.S. rather than Korea.

• The Sangdong mine and plant were built under the Equator Principles; the design uses automated processing, and the site has accumulated excess ore while the plant ramped up.

• Rwanda JV ownership is 75% Almonty and 25% government; the arrangement includes a 32 km² exploration concession, mobile tailings processing and local ore procurement, with a central plant planned for a later stage.

Development projects

• Los Santos is testing tungsten recovery from tailings during required reclamation; pilot work succeeded, and a floor-price contract limits downside if commercial recovery fails.

• Panasqueira has 4.2 million tons of tailings grading ~0.25% WO3; tests indicate potential recovery of tungsten, copper and zinc, alongside a 14 km Level 4 drilling campaign expected to finish by year-end.

• Montana, acquired in Nov. 2025, has roads, water, nearby power and existing permits; planning and community engagement are underway, with no tailings pond decision yet.

• Sangdong’s molybdenum deposit, ~150 meters below the tungsten ore body, is undergoing 12,000 meters of drilling across 26 diamond holes; 37% was complete by June 2026, followed by a technical report update.