Mr. James Walker reports

ARES STRATEGIC MINING ANNOUNCES INCREASE IN INSTITUTIONAL INVESTMENT

Ares Strategic Mining Inc. has received a significant increase in institutional investment from United Kingdom-based investment firm Sorbie Bornholm LP. This increased financial backing from Sorbie signals a deepening partnership and a resounding vote of confidence in Ares's strategy and long-term vision.

Following Sorbie's initial equity investment announced in 2024, this enhanced commitment reinforces the investor's support for Ares's transformation from a mining company into a fully integrated North American fluorspar manufacturer. The additional capital injection is expected to accelerate site development, boost manufacturing capabilities and further solidify Ares's position in the global fluorspar market.

"Since Sorbie's entry as a strategic partner, we've made substantial progress across our operations," said James Walker, chief executive officer of Ares. "This new wave of institutional support enables us to maintain momentum as we scale up, acquire critical equipment and ramp up our Utah operations. Sorbie's growing investment is a powerful endorsement of our path forward, and we look forward to continuing to deliver on our shared vision."

The increased institutional investment comes at a pivotal time, as Ares prepares to transition from construction to production and become a stable domestic source of fluorspar, a critical mineral with wide-reaching industrial applications.

In 2018 the United States government classified fluorspar as a critical mineral "deemed critical to U.S. national security and the economy." Fluorspar remains the only non-metallic critical mineral, which is 100-per-cent imported in the entire country. Fluorspar's classification as a critical mineral in the United States translates to a faster permitting period, enabling mining operations to initiate more quickly than operations for conventional minerals.

The issuer's hedging arrangements with Sorbie Bornholm LP are governed by an ISDA master agreement dated Aug. 23, 2024, and a sharing agreement dated Aug. 23, 2024 (the sharing agreement). Pursuant to the terms of the sharing agreement, the gross proceeds payable by Sorbie for units (being $1-million) (the posted support) were used to acquire U.K. government bonds as credit support to secure the issuer's maximum potential exposure under the sharing agreement, with Sorbie retaining control and direction of such proceeds (including both the economic benefit and the risk resulting from fluctuations in the bond pricing and foreign exchange) until they are released back to the issuer in accordance with the terms of the sharing agreement.

The hedging transactions governed by the sharing agreement will be determined and payable in 24 monthly settlement tranches based on the volume weighted average price of the common shares for the 20 trading days prior to each monthly settlement date measured against a benchmark price of 19.98 cents (the benchmark price). On each such settlement date, Sorbie will release a portion of the posted support determined in reference to such volume weighted average ($41,667 per month). If the measured common share price is equal to the benchmark price for each of the 24 monthly settlement tranches, the issuer will receive cash payments totalling $1-million. If the measured common share price exceeds the benchmark price, the issuer will receive more than 100 per cent of the settlement payable that month on a pro rata basis. Similarly, if the measured common share price is below the benchmark price, the issuer will receive less than 100 per cent of the settlement payable that month on a pro rata basis, with the result that if the measured common share price is below the benchmark price for a period of time, the issuer will receive less than $1-million.

Lost Sheep fluorspar project -- Delta, Utah

• 100 per cent owned -- 5,982 acres -- 353 claims;
• Located in the Spor Mountain area, Juab county, Utah, approximately 214 kilometres southwest of Salt Lake City;
• Fully permitted -- including mining permits;
• National Instrument 43-101 technical report identified extensive high-grade fluorspar with low levels of impurities;
• Mining plan approved by Bureau of Land Management.

First approved by Rex Rowley -- area manager, Bureau of Land Management -- Aug. 24, 1992.

We seek Safe Harbor.