Market Overview

Almonty Achieves Positive EBITDA from Mining Operations(1) of $12,702,000 And Net Income of $0.04 Per Share in Q3 of FY 2018

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Almonty Industries Inc. ("Almonty" or the "Company") (TSX:
AII / OTCQX: ALMTF / Frankfurt: 1MR) today announced the filing of its
unaudited interim condensed consolidated financial statements and
management's discussion & analysis for the three and nine months ended
June 30, 2018. Unless otherwise indicated, all currency amounts
contained in this news release are expressed in Canadian dollars.

The following financial information is for the three and nine months
ended June 30, 2018 and 2017:

           
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
30-Jun-18 30-Jun-17 30-Jun-18 30-Jun-17
        $ '000     $ '000     $ '000     $ '000  
Gross Revenue 22,473 10,974 50,542 28,209
Mine production costs 9,771 7,641 27,283 24,359
Depreciation and amortization   2,129       2,031       6,474       4,525  
Earnings (loss) from mining operations 10,573 1,302 16,785 (675 )
 
General and administrative costs 2,164 2,363 5,932 6,591
Share-based payments expense   897       -       897       -  
Earnings (loss) before the under noted items 7,512 (1,061 ) 9,956 (7,266 )
 
Interest expense 760 662 1,992 1,939
Foreign exchange (gain) loss 858 (814 ) 1,173 (244 )
Tax provision         (639 )     -       (1,350 )     -  
Net income (loss) for the period         6,533       (909 )     8,141       (8,961 )
Income (loss) per share basic       $ 0.04       ($0.01 )   $ 0.05       ($0.08 )
Income (loss) per share diluted       $ 0.04       ($0.01 )   $ 0.05       ($0.08 )
Dividends         -       -       -       -  
 
Cash flows provided by (used in) operating activities 6,020 1,658 6,698 523
Cash flows provided by (used in) investing activities (2,558 ) (1,536 ) (5,992 ) (9,539 )
Cash flows provided by (used in) financing activities         (1,752 )     (94 )     2,214       6,228  
 

The following financial information is as at June 30, 2018, and
September 30, 2017:

       
30-Jun-18 30-Sep-17
        $ '000   $ '000
Cash 7,433 4,473
Restricted cash 1,294 1,300
Total assets 177,979 160,151
Bank indebtedness - 9,447
Long-term debt 53,872 44,659
Shareholders' equity 59,462 45,625
 

Other

Outstanding shares (‘000) 181,442 169,752
Weighted average outstanding shares (‘000)
Basic 178,048 110,896
Fully diluted 180,348 110,896
Closing share price       $ 0.930   $ 0.63
 

Lewis Black, Chief Executive Officer of Almonty, commented, "The
Company's income from mining operations recorded in Q3 of fiscal 2018
was $10,573,000, an increase of $5,520,427 over that recorded in Q2 of
fiscal 2018. The EBITDA from mining operations jumped to $12,702,000
compared to $3,333,000 for the same period in fiscal 2017. We are also
pleased to announce a positive net income of $6,533,000, or $0.04 per
share, for Q3. The Company's results from mining operations have
significantly improved as a consequence of our new fixed-price
contracts and strong market contract prices while costs continued to
decrease, reflecting the continued strengthening of tungsten demand and
price globally. The current Tungsten price is continuing to strengthen
and sits above the Q3 price received. With our Sangdong off-take
agreement in place, we continue to move towards finalizing our US$85
million project financing and have already commenced the build-out of
our Sangdong Mine located in South Korea with site demolition completed
and initial mine development commencing."

About Almonty

The principal business of Toronto, Canada-based Almonty Industries Inc.
is the mining, processing and shipping of tungsten concentrate from its
Los Santos Mine in western Spain and its Panasqueira mine in Portugal as
well as the refurbishment of its Wolfram Camp Mine in north Queensland,
Australia, the development of its Sangdong tungsten mine in Gangwon
Province, South Korea and the development of 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 has produced tungsten and molybdenum
concentrate, although the Wolfram Camp Mine is not currently producing
due to ongoing refurbishment of the processing plant. 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 north-western 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.

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. 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 in this press release include, among others,
statements regarding Almonty's future business plans and operations, the
continued increase in global demand for Tungsten, the financing and
build-out of the Sangdong mine and anticipated timing thereof.
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 ("APT") 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 of the TSX.

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 APT, 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.

(1) Non-GAAP Financial Measures

This press release makes reference to certain non-GAAP financial
measures. These measures are not recognized measures under IFRS, do not
have a standardized meaning prescribed by IFRS and may not be comparable
to similar measures presented by other companies. Rather, these measures
are provided as additional information to complement IFRS financial
measures by providing further understanding of Almonty's results of
operations from management's perspective. Almonty's definitions of
non-GAAP measures used in this press release may not be the same as the
definitions for such measures used by other companies in their
reporting. Non-GAAP measures have limitations as analytical tools and
should not be considered in isolation nor as a substitute for analysis
of Almonty's financial information reported under IFRS. Almonty uses
non-GAAP financial measures, including "EBITDA", to provide investors
with supplemental measures of its operating performance and to eliminate
items that have less bearing on operating performance or operating
conditions, and thus highlight trends in its core business that may not
otherwise be apparent when relying solely on IFRS financial measures.
Almonty defines "EBITDA from mining operations" as gross revenue less
mine production costs.

Almonty believes that securities analysts, investors and other
interested parties frequently use non-GAAP financial measures in the
evaluation of issuers. Almonty's management also uses non-GAAP financial
measures in order to facilitate operating performance comparisons from
period to period.

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