Almonty Industries Inc. Announces It Has Reached an Agreement for a US$14 Million Working Capital Support Facility

Almonty Industries Inc. ("Almonty” or the "Company”) (TSXV: AII) announces that on December 31, 2015 it reached an agreement with respect to an expansion of its existing guaranteed loan agreement by up to US$14.0 million ( the "Support Agreement”). The Company has entered into a long-term US$7.0 million working capital loan agreement (the "Working Capital Loan”) with UniCredit Bank AG ("UniCredit”), representing the first tranche of funds under the Support Agreement whereby Almonty will be able to draw down on the facility based on production and granting security over certain assets of the Company. The second tranche is expected to be available in March 2016 on similar terms. Principal and interest under the Working Capital Loan is due to UniCredit under a revolving facility based on production and APT pricing levels. Repayment of the Working Capital Loan will only begin when the price of APT exceeds US$254 MTU and accelerating in repayment at $320 MTU. The loan carries an interest rate of LIBOR plus 1.5%.

Almonty also announces that it issued a secured promissory note (the "Note”) for gross proceeds of US$1.0 million (the "Note Financing”). The Note was issued to Deutsche Rohstoff AG ("DRAG”), an existing shareholder of Almonty, and will mature on January 1, 2017, and bears interest at a rate of 6% per annum, payable at the maturity date. The Note is secured by the existing security granted to DRAG in connection with their existing $4 million debenture .

The Note Financing constitutes a "related party transaction” within the meaning of Multilateral Instrument 61-101 Protection of Minority Shareholders in Special Transactions ("MI 61-101”). For this transaction, Almonty is relying on the exemption from the formal valuation requirements of MI 61-101 contained in section 5.5(b) of MI 61-101 and on the exemption from the minority shareholder approval requirements of MI 61-101 contained in Section 5.7(1)(a) of MI 61-101.

The Note Financing closed on January 4, 2016 and the Working Capital Loan also closed on January 4, 2016 with funding availability expected on January 6, 2016. Almonty intends to use the net proceeds of the Note Financing and the Working Capital Loan for general corporate purposes.

Lewis Black, Chief Executive Officer of Almonty, commented, "The expanded guarantee of up to US$14.0 million under the Support Agreement and the current availability of funds under the Working Capital Loan enables Almonty to access an additional US$7.0 million in working capital based on meeting certain production targets and grant of security and a further US$7.0 million in March 20016 on similar terms, and, combined with the Note Financing of US$1.0 million, will allow the Company to sustain its operations during this unprecedented period of low spot prices for APT and continue advancing our Valtreixal and Almonty Korea Tungsten projects. Furthermore, the increase to our credit line has a repayment structure linked to vastly improved APT prices ensuring significant relief of this debt service going forward.”

About Almonty Industries Inc.

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 its Wolfram Camp Mine in north Queensland, Australia, 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 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 produces tungsten and molybdenum concentrate. 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 also has an option to acquire a 100% ownership interest in the Valtreixal tin-tungsten project in northwestern Spain. Further information about Almonty’s activities may be found at www.almonty.com and under Almonty’s profile at www.sedar.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Disclaimer for Forward-Looking Information

When used in this press release, the words "will”, "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. This press release contains 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 news release include, but are not limited to access to an additional US$7.0 million in working capital;access to the second tranche of US$7.0 million under the Support Agreement in March 2016; future production and grant of security; and the ability of the Company to sustain its operations and continue the development of the Valtreixal Poject and the Almonty Korea Tungsten project during this unprecedented period of low spot prices for APT. The forward-looking statements and information in this press release include expectations and information relating to the intentions of management. Such statements and information reflect the current view of Almonty with respect to risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors and assumptions which may cause actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Investors are cautioned against attributing undue certainty to forward-looking statements. 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 SO ELECT, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.

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