Mr. Lewis Black reports

ALMONTY SHAREHOLDER LETTER

Almonty Industries Inc. today issued a letter to shareholders from Lewis Black, chairman and chief executive officer of Almonty.

Dear fellow shareholders,

The start of active mining operations at the Sangdong tungsten mine in December, 2025, was a milestone for Almonty. Sangdong is the foundation of our strategy to establish a secure, reliable and geopolitically aligned supply of tungsten for the United States and its allies. Our vision is to establish a fully integrated, Western-based tungsten platform spanning North America, Europe and Asia to supply at least 40 per cent of all non-China tungsten.

Our achievements in 2025 significantly strengthened our operational foundation, expanded our global footprint and enhanced our visibility in the capital markets.

Sangdong tungsten mine -- active mining operations

In December, 2025, we marked the transition of our flagship Sangdong tungsten mine in South Korea from construction to production with the delivery of the first truckload of ore to the run-of-mine pad. That first truckload marked the start of active mining operations and the final phase before full commercial operations. Sangdong is expected to become one of the largest and longest-life tungsten mines outside of China, positioning Almonty as a cornerstone supplier to Western markets. We have secured binding hard floor offtake agreements, including long-term commitments to supply tungsten oxide for United States defence applications, providing future revenue visibility and validating the strategic value of our production.

Significant tungsten market opportunity

Production at the Sangdong tungsten mine could not have come at a more critical and advantageous time. Tungsten ranks near the top of every national list of critical minerals in the world, including the United States, Korea, Japan, the European Union and Canada because of its unique properties, crucial role in high-priority end-use applications such as defence, global market scarcity and its irreplaceability in most of those applications.

Almonty is uniquely well positioned at this key inflection point to fill the supply gap after China -- which currently produces over 80 per cent of global tungsten -- restricted exports and barred dual use exports. At the same time, the United States has banned tungsten imports from China for defence procurement beginning in 2027. The combination of China's export controls and surging demand caused the price of tungsten to increase more than 160 per cent in 2025, with steady price increases continuing in the first weeks of 2026.

Tungsten, long viewed as a minor commodity, is now rightly recognized as a critical strategic metal essential for U.S. and allied defence stockpiles. Almonty is the largest Western-aligned tungsten producer and the only U.S.-based tungsten firm that is producing tungsten now.

Other resource development initiatives and acquisition

We continued to advance resource development initiatives designed to support long-term growth and diversification. We initiated a large-scale drilling program to define mineral reserves and establish a pathway toward future development of the Sangdong molybdenum project. Molybdenum is a compelling strategic complement to our tungsten business, with strong demand fundamentals across defence, energy and industrial applications.

In Europe, our planned expansion of the Panasqueira mine in Portugal, the world's longest continuously operating tungsten mine, progressed with an extensive drilling program focused on extending operations into a deeper mining level that is expected to yield higher-grade ore and significantly extend mine life. While tungsten prices rose steadily last year, we continually delivered low-impurity, high-grade tungsten concentrate to the U.S. defence sector and other crucial industries.

We extended our geographic footprint in 2025 into North America with the successful acquisition of a 100-per-cent ownership of the Gentung Browns Lake tungsten project in Beaverhead county, Montana. By acquiring and developing the Gentung Browns Lake project, Almonty is manifestly aligning with U.S. policy initiatives aimed at reshoring critical mineral supply chains and reducing reliance on foreign adversaries. Production at Gentung will provide us with additional capacity to meet demand from defence, aerospace, advanced technology sectors and other strategic industries located in the United States.

U.S. capital market entrance and funding

Financially, 2025 was highlighted by our entrance into the U.S. capital markets, and a fully capitalized balance sheet to finance exploration and development work. In July, 2025, we completed an oversubscribed and upsized initial public offering in the U.S. that raised approximately $90-million (U.S.) in gross proceeds. This financing coincided with our uplisting to the Nasdaq Capital Market under the ticker symbol ALM. In December, 2025, we closed a second upsized $129.4-million (U.S.) offering including the full exercise of an overallotment option. We are confident that, combined with our long record of fiscal discipline, we are sufficiently capitalized to advance Almonty into our next phase of growth.

New global leadership

During the year we welcomed several experienced leaders to our executive team and board of directors.

Brian Fox, chief financial officer, brings over 25 years of U.S.-based operational leadership to help scale operations and align Almonty with U.S. capital markets.

Steven L. Allen, chief operating officer, is a Bronze Star recipient who brings 33 years of American military leadership to support the continuing optimization of tungsten deliveries across the company's global footprint.

Guillaume Wiesenbach de Lamaziere, chief development officer, brings over 30 years of experience leading complex and large-scale, cross-border projects in banking and asset management, to spearhead key corporate development strategy and execution for Almonty.

Independent board director general Gustave F. Perna brings extensive executive and military leadership experience, with a strong background in strategy, supply chain management, logistics and talent development across global industries.

Independent board director Alan Estevez is a nationally recognized authority in national security, defence logistics and strategic trade.

Taken as a group, we have built a management team and board with the knowledge, network and experience necessary to firmly establish Almonty as the leading Western-aligned tungsten supplier globally.

2026 outlook and milestones

Looking ahead to 2026, our priorities at the Sangdong tungsten mine are to advance toward full-scale commercial operation of phase 1, and shortly thereafter commence the planned phase 2 expansion. We expect phase 2 to be completed in 2027 with capacity to increase up to 1.2 million tons per annum -- resulting in Sangdong potentially producing over 460,000 MTU annually.

Our large-scale drilling program at the Panasqueira mine is expected to define the mine plan for the expansion into Level 4, a new production level. The drilling program also aims to support an increase in annual output we project will be up to 124,000 MTUs (1,240 tons) by accessing higher ore grades while potentially extending the mine's operational life.

We continue to advance the Sangdong molybdenum project, currently one of the highest-grade deposits with 0.26 per cent MoS2, toward reserve definition and development planning.

We are striving for production readiness at the Gentung Browns Lake project by the second half of 2026, potentially producing 140,000 MTUs in the future.

Two thousand twenty-six is also a year of continuing evaluation of other tungsten opportunities. Given our extensive global network in this area and our multiyear relationship building approach, we are constantly assessing viable projects at the request of multiple governments and customers. We would expect further expansion again this year with their support. These are the positive developments born from being the leader in the sector and an unrivalled record. You want tungsten you come to us!

In closing, 2025 was a year of execution, transformation and strategic validation for Almonty Industries. Throughout this next phase, we remain committed to disciplined execution, prudent capital allocation and transparent engagement with our shareholders. We enter 2026 with a significantly stronger balance sheet, a more diversified and strategically positioned asset base, and clear momentum toward tungsten production and growth. On behalf of the board of directors and the entire Almonty team, I thank you for your continued support and confidence.

Sincerely,

Lewis Black

Chairman, president and chief executive officer

About Almonty Industries Inc.

Almonty is a leading supplier of conflict free tungsten -- a strategic metal critical to the defence and advanced technology sectors. As geopolitical tensions heighten, tungsten has become essential for armor, munitions and electronics manufacturing. Almonty's flagship Sangdong tungsten mine in South Korea, historically one of the world's largest and highest-grade tungsten deposits, is expected to supply over 80 per cent of global non-China tungsten production upon reaching full capacity, directly addressing critical supply vulnerabilities highlighted by recent U.S. defence procurement bans and export restrictions by China. With established operations in Portugal and additional projects in the United States and Spain, Almonty is strategically aligned to meet rapidly rising demand from Western allies committed to supply-chain security and defence readiness.

We seek Safe Harbor.