Panasqueira Tungsten-Tin Mine Presentation

fin APPENDIX 9 – DEFINED AS CONFLICT MATERIAL - LACK OF TRANSPARENCY - A ALMONTY CONFLICT MATERIAL "3TG" Tin (Sn) Tantalum (Ta) Tungsten (W) Gold (Au) BACKGROUND AND CURRENT SITUATION The SEC has implemented regulations to address the issue of conflict minerals SEC's conflict minerals rule obliges companies to conduct due diligence on their supply chains and disclose whether their products contain 3TG minerals sourced from conflict- affected regions NON-TRANSPARENT SUPPLY & STRONGLY CHINA DOMINATED While the US & Europe have a few tungsten smelters & refineries, the majority are based in China and Russia ➤ As a result, many major US companies have a high dependency on chinese refineries and smelters ➤ Lack of transparency is a major issue, as the source of tungsten is not always clear Reports suggest major US companies be may sourcing "conflict minerals” through non-transparent supply chains ➤ Major US companies, such as Apple, Tesla, Nvidia and Boeing have a very high dependency on tungsten supplied by smelters & refineries from non-transparent countries such as China, Russia & Vietnam POTENTIAL SOLUTION ➤ Construction of a new world-class tungsten mine at Sangdong in South Korea, operated by a Canadian company ➤ The mine will have a vertically integrated downstream facility on site, which will provide a transparent and fairly produced source of tungsten materials While tungsten companies in Australia & Canada have stopped exploration & development in the past, the near-term production mine in South Korea could potentially produce for around 100 years and account for almost 10% of the worldwide tungsten production 42 22

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