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Allied Critical Metals Announces Receipt of Environmental Permit for the Borralha Tungsten Project in Portugal

Allied Critical Metals Announces Receipt of

Environmental Permit for the Borralha

Tungsten Project in Portugal

Vancouver, British Columbia--(Newsfile Corp. - January 12, 2026) -

Allied Critical Metals Inc.

(CSE:

ACM) (OTCQB: ACMIF) (FSE: 0VJ0) ("Allied" or the "Company") is pleased to announce that the

Portuguese Environment Agency (Agência Portuguesa do Ambiente, I.P. - APA)

has issued a

Favourable Environmental Impact Declaration, subject to standard regulatory conditions

(Declaração de Impacte Ambiental Favorável Condicionada - "DIA")

for its 100% owned

Borralha

Tungsten Project

, located in the

Municipality of Montalegre

in northern Portugal.

The receipt of the DIA is in addition to the Company's receipt of a formal Letter of Recognition from the

idD Portugal Defense, the Portuguese public entity overseeing the nation's Defense Industry, that

acknowledges Allied's leadership role in re-establishing tungsten production in Portugal.

idD Portugal

Defense has endorsed Allied's Borralha Tungsen Product as a strategic initiative of national importance

with direct impact on Portugal's and Europe's defense supply chains.

This key regulatory milestone clears a major hurdle in the Company's path toward development and

eventual production, strengthening Allied's ability to advance the Borralha Project - one of Europe's most

significant tungsten assets - within a responsible environmental and social governance framework.

Highlights

Favourable Environmental Impact Declaration (DIA)

has been formally issued by the

Portuguese Environment Agency (the "APA") for the

Borralha Tungsten Project

, subject to

standard regulatory conditions.

Major permitting milestone achieved

, enabling advancement to the

Project of Execution and

RECAPE

(Environmental Compliance Report of the Execution Project)

stage

and subsequent

licensing phases.

Strategic tungsten project within the European Union (EU)

, aligned with the

EU Critical

Raw Materials Act

, supporting diversification of supply for critical industrial and defense-related

applications.

Greenlights proposed modern underground mining development

, incorporating closed-loop

water management, filtered dry-stacked tailings and comprehensive environmental monitoring and

mitigation measures.

Opportunity to contribute to regional economic development

in the Municipality of

Montalegre, northern Portugal, through employment, local procurement and long-term investment.

The Company is on pace with its project development aiming towards an

industrial scale

processing plant at Borralha, expected to be completed and in production by the end of

2027.

The DIA confirms the environmental acceptability of the Borralha Project and represents a significant

regulatory milestone. The approval allows the Project to advance to the

Project of Execution and

Environmental Compliance Report stage (RECAPE)

and to subsequent licensing phases, in

accordance with Portuguese environmental and mining legislation.

Roy Bonnell, CEO and Director of Allied, commented:

"The issuance of the Environmental Impact

Declaration for the Borralha Project represents an important regulatory milestone for Allied. This

approval reflects the quality of the technical and environmental work completed to date and allows the

Company to advance the Borralha Project into the next stage of permitting and detailed engineering,

subject to compliance with the conditions set out by the Portuguese authorities."

João Barros, President, COO and Director of Allied, commented:

"The Borralha Project is part of

Portugal's mining history, and this approval creates the conditions for a new chapter based on modern

environmental standards, transparency and respect for local communities. The Borralha Project offers

an opportunity to address historical environmental legacies while generating skilled employment and

economic activity in the interior of the country. The Company is fully committed to working closely and

constructively with local communities, the municipality and public authorities throughout all stages of

the Borralha Project."

Project Overview and Strategic Context

The Borralha Project is an underground mining development, targeting the production of tungsten, with

by-products copper and tin concentrates. Tungsten is designated as a critical raw material under the

European Union Critical Raw Materials Act (Regulation (EU) 2024/1252) and is used in a range of

industrial, energy transition and defence-related applications.

The Company considers the Borralha Project to have the potential to contribute to European supply

diversification of tungsten and to Portugal's role in the development of strategic raw material supply

chains within the European Union and allied markets.

Environmental Assessment and Project Design

The environmental approval was based on an Environmental Impact Assessment that evaluated the

Borralha Project's potential effects on environmental, social and cultural factors and identified mitigation,

monitoring and compensation measures to be implemented during construction, operation and closure.

Key design features assessed as part of the EIA includes:

Underground mining with limited surface disturbance;

Closed-loop water management systems;

Filtered tailings with dry stacking;

Environmental monitoring and contingency plans;

Rehabilitation of historical mine waste and legacy environmental liabilities; and

Protection of water resources, ecosystems and cultural heritage.

The APA concluded that, subject to the implementation of prescribed conditions, the Project may

proceed from an environmental perspective.

The APA's favorable decision represents a significant de-risking milestone for the Borralha Project and

reflects the extensive and rigorous work undertaken during the Environmental Impact Assessment

process. The EIA was coordinated and led by João Barros, on behalf of the project partners, and

delivered through the dedicated efforts of Allied's technical team, supported by a range of specialized

national and international consulting partners with expertise in mining engineering, geology,

environmental sciences, ecology, water resources, social impact, cultural heritage and risk assessment.

This collective technical effort underpinned the robust assessment framework that ultimately supported

the positive environmental decision issued by the APA.

Regional and Socioeconomic Considerations

The Borralha Project is located in the Parish of Salto, including the village of Borralha, within the

Municipality of Montalegre. The Borralha Project is expected, subject to further permitting and

development decisions, to generate direct and indirect employment, support local and regional suppliers

and contribute to economic activity in an interior region of Portugal.

As required under the DIA, the Company will develop and implement social development, community

engagement and environmental monitoring programmes during the next phases of project development.

Next Steps

Following receipt of the DIA, the Company intends to:

Prepare the Borralha Project of Execution and RECAPE documentation;

Advance detailed engineering and technical studies;

Undertake additional environmental and social studies required by the approval conditions; and

Continue engagement with regulatory authorities and local stakeholders.

There can be no assurance that subsequent permits will be granted or that the Project will proceed to

construction or operation.

About Allied Critical Metals Inc.

Allied Critical Metals Inc. (CSE: ACM) (OTCQB: ACMIF) (FSE: 0VJ0) is a Canadian-based mining

company focused on the expansion and revitalization of its 100% owned past producing Borralha

Tungsten Project and the Vila Verde Tungsten Project in northern Portugal. Tungsten has been

designated a critical metal by the United States and other western countries, as they are aggressively

seeking friendly sources of this unique metal. Currently, China, Russia and North Korea represent

approximately 87% of the total global supply and reserves. The Tungsten market is estimated to be

valued at approximately U.S.$5 to $6 billion, and it is used in a variety of industries such as defense,

automotive, manufacturing, electronics, and energy.

ON BEHALF OF THE BOARD OF DIRECTORS

"Roy Bonnell"

Roy Bonnell

CEO and Director

For further information or investor relations inquiries, please contact:

Dave Burwell

Vice President, Corporate Development

Email:

[email protected]

Tel: 403-410-7907

Toll Free: 1-888-221-0915

Please also visit our website at

www.alliedcritical.com

.

Also visit us at:

LinkedIn:

https://www.linkedin.com/company/allied-critical-metals-inc/

X:

https://x.com/@alliedcritical/

Facebook:

https://www.facebook.com/alliedcriticalmetals/

Instagram:

https://www.instagram.com/alliedcriticalmetals/

The Canadian Stock Exchange does not accept responsibility for the adequacy or accuracy of

this release.

Cautionary Statement Regarding Forward-Looking Information

This news release contains "forward-looking statements", including with respect to the use of proceeds.

Wherever possible, words such as "may", "would", "could", "should", "will", "anticipate", "believe", "plan",

"expect", "intend", "estimate", "potential for" and similar expressions have been used to identify these

forward-looking statements. These forward-looking statements reflect the current expectations of the

Company's management for future growth, results of operations, performance and business prospects

and opportunities, including the timing for an industrial scale process plant at Borralha, if at all, and

involve significant known and unknown risks, uncertainties and assumptions, including, without limitation,

those listed in the Company's Listing Statement and other filings made by the Company with the

Canadian securities regulatory authorities (which may be viewed under the Company's profile at

www.sedarplus.ca

). Examples of forward-looking statements in this news release include, but are not

limited to, statements regarding the proposed timeline and use of proceeds for exploration and

development of the Company's mineral projects as described in the Company's news releases, and

corporate presentations. Should one or more of these risks or uncertainties materialize or should

assumptions underlying the forward-looking statements prove incorrect, actual results, performance or

achievements may vary materially from those expressed or implied by the forward-looking statements

contained in this news release. These factors should be considered carefully, and prospective investors

should not place undue reliance on the forward-looking statements. This list is not exhaustive of the

factors that may affect any of the Company's forward-looking statements and reference should also be

made to the Company's most recently filed management's discussion and analysis, all as filed under its

SEDAR+ profile at

www.sedarplus.ca

for a description of additional risk factors. The Company

disclaims any intention or obligation to revise forward-looking statements whether as a result of new

information, future developments or otherwise, except as required by law.

To view the source version of this press release, please visit

https://www.newsfilecorp.com/release/280076