REPORT NI 43-101 TECHNICAL REPORT ON THE MINERAL RESOURCES AND RESERVES OF THE PANASQUEIRA MINE, PORTUGAL Prepared for Almonty Industries by Qualified Person: Adam Wheeler, B.Sc, M.Sc, C. Eng, FIMMM 31st December 2016 Mining Consultant Cambrose Farm, Redruth Cornwall, TR16 4HT England. E-mail: [email protected] Panasqueira_43-101_Tech Rep_Dec16_v2.doc 23rd February 2016 Technical Report on The Panasqueira Mine TABLE OF CONTENTS Page 1 SUMMARY.....................................................................................................................8 1.1 Introduction and Overview......................................................................................8 1.2 Ownership .............................................................................................................8 1.3 Geology and Mineralisation....................................................................................9 1.4 Database and Resource Estimation ..................................................................... 10 1.5 Mine Planning ...................................................................................................... 11 1.6 Mineral Processing............................................................................................... 12 1.7 Mineral Resource and Reserve Estimates............................................................13 1.8 Conclusions ......................................................................................................... 16 2 INTRODUCTION.......................................................................................................... 17 2.1 Introduction.......................................................................................................... 17 2.2 Terms of Reference ............................................................................................. 17 2.3 Sources of Information......................................................................................... 18 2.4 Units and Currency .............................................................................................. 18 3 RELIANCE ON OTHER EXPERTS............................................................................... 18 4 PROPERTY DESCRIPTION AND LOCATION.............................................................. 19 4.1 Location............................................................................................................... 19 4.2 Mining Concession............................................................................................... 21 4.3 Surface Rights ..................................................................................................... 22 4.4 Legal Obligations ................................................................................................. 25 4.5 Taxation............................................................................................................... 26 4.6 Environmental Liabilities....................................................................................... 27 4.7 Licences and Permits........................................................................................... 27 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, PHYSIOGRAPHY................................................................................................................ 28 5.1 Topography, Elevation and Vegetation;................................................................ 28 5.2 Accessibility ......................................................................................................... 28 5.3 Local Resources .................................................................................................. 28 5.4 Climate ................................................................................................................ 29 5.5 Infrastructure........................................................................................................ 30 6 PROJECT HISTORY.................................................................................................... 31 6.1 Ownership ........................................................................................................... 31 6.2 Historical Exploration ........................................................................................... 34 6.3 Historical Resource Estimates.............................................................................. 34 6.4 Historical Production............................................................................................ 36 7 GEOLOGICAL SETTING AND MINERALISATION....................................................... 37 7.1 Regional Geology ................................................................................................ 37 December 2016 i Technical Report on The Panasqueira Mine 7.2 Local Geology...................................................................................................... 38 7.3 Local Geology...................................................................................................... 40 7.4 Mine Geology....................................................................................................... 41 7.5 Mine Structural Geology....................................................................................... 44 7.6 Mineralisation....................................................................................................... 44 8 DEPOSIT TYPES......................................................................................................... 48 9 EXPLORATION............................................................................................................ 49 10 DRILLING................................................................................................................. 52 10.1 Lower Level Exploration....................................................................................... 55 11 SAMPLE PREPARATION, ANALYSES AND SECURITY .......................................... 56 11.1 Diamond Drilling................................................................................................... 56 11.2 Face Sampling..................................................................................................... 61 11.3 Quality Control..................................................................................................... 62 11.4 On-Site Laboratory............................................................................................... 63 11.4.1 Initial Sample Preparation............................................................................. 63 11.4.2 XRF Analysis................................................................................................ 65 11.4.3 Chemical Analyses....................................................................................... 65 11.4.4 UV-VIS Spectrophotometer .......................................................................... 66 11.4.5 Atomic Absorption Spectrophotometry.......................................................... 66 12 DATA VERIFICATION .............................................................................................. 67 13 MINERAL PROCESSING AND METALLURGICAL TESTING ................................... 68 14 MINERAL RESOURCE ESTIMATES ........................................................................ 69 14.1 Panasqueira Mine................................................................................................ 69 14.1.1 Methodology................................................................................................. 69 14.1.2 Drillhole Data................................................................................................ 71 14.1.3 Resource Estimation .................................................................................... 73 14.1.4 Validation ..................................................................................................... 82 14.2 BL1 Tailings Area................................................................................................. 83 14.3 BL2A Tailings Area .............................................................................................. 92 14.4 Resources Overview.......................................................................................... 104 15 MINERAL RESERVE ESTIMATES ......................................................................... 105 15.1 Reserve Estimation............................................................................................ 105 15.2 Reconciliation .................................................................................................... 110 16 MINING METHODS ................................................................................................ 112 16.1 Mining Method ................................................................................................... 112 16.2 Mine Production................................................................................................. 118 17 RECOVERY METHODS ......................................................................................... 120 17.1 Introduction........................................................................................................ 120 17.2 Wolframite Recovery.......................................................................................... 123 17.3 Copper Circuit...................................................................................................