Mr. Lewis Black reports

ALMONTY ANNOUNCES THE FULL REPAYMENT OF THE OUTSTANDING LOAN OWED TO TAEGUTEC LTD. AND HAS RECEIVED A LETTER OF COMMITMENT FROM AN INDUSTRY PARTICIPANT FOR THE REMAINING NECESSARY FUNDING FOR THE BUILDOUT OF THE SANGDONG MINE

Almonty Industries Inc. has repaid the outstanding $6,549,518 loan and accrued interest that were owed to TaeguTec Ltd. effectively releasing any and all security held by TaeguTec over the Sangdong mine project. The loan was due on Dec. 31, 2016. In addition to the repayment, Almonty and TaeguTec have terminated all the other agreements that were previously in effect between the parties relating to Sangdong. The loan was repaid out of funds borrowed pursuant to a previously announced loan agreement.

Almonty has also received a letter of commitment from an industry participant with respect to the financing of the equity component of the overall financing package needed to bring the Sangdong mine into production. The nature and terms of the commitment are currently being finalized. It would essentially be 100 per cent debt financing of the build-out, meaning current shareholders would face no dilution of their ownership position. Almonty believes that the outcome of the negotiations will satisfy the requirements of the letter of commitment for up to 50 billion South Korean won of debt financing currently in place with Korean Development Bank for the build-out of the Sangdong mine enabling Almonty to begin the construction in fiscal 2017. Almonty is currently finalizing, with the same industry participant, an offtake agreement covering 100 per cent of the initial planned production of the Sangdong mine and expects to conclude these discussions in the near term.

Almonty's chairman, president and chief executive officer, Lewis Black, said: "The repayment of the loan to TaeguTec has cleared the path for Almonty to finalize negotiations with a leading industry participant for both funding and offtake agreements for the Sangdong mine enabling Almonty to further advance the development and ultimate construction of the plant required to bring the mine back into production. The terms of this financing are very favourable for Almonty shareholders as they would not face additional dilution. Based on the current EPC contract discussions to date, we believe that Sangdong will be one of the largest and lowest-cost tungsten mines to come on-line globally."

About Almonty

The principal business of Almonty Industries, based in Toronto, Canada, 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 northwestern Spain.

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