Mr. James Walker reports

ARES ACCELERATES FLOTATION PLANT CONSTRUCTION FOLLOWING U.S. DEFENSE CONTRACT AWARD AND NEW $10M PRIVATE PLACEMENT

Following Ares Strategic Mining Inc.'s recent $168.9-million estimated award under the U.S. Department of Defense's (DoD) indefinite delivery/indefinite quantity (IDIQ) contract and a newly launched $10-million private placement, the company is accelerating construction of its acidspar flotation plant in Utah. This strategic move positions Ares to begin first deliveries of acid-grade fluorspar (acidspar) later this year, advancing the company's role as the sole domestic supplier of this U.S.-designated critical mineral.

"This is a defining moment for Ares," said James Walker, chief executive officer of Ares Strategic Mining. "Our flotation plant is now a top-priority build. With strong government support, market demand and financing in place, we're pushing forward to ensure on-time delivery under our DoD contract and to support our uplist plans for later this year."

Construction acceleration: delivering ahead of schedule

The acidspar flotation plant is a critical component of Ares's vertically integrated strategy to produce high-purity fluorspar for use in:

• Defence systems national stockpiles;
• Hydrofluoric acid and fluorochemical industries;
• Semiconductors and EV (electric vehicle) battery supply chains.

The plant's construction will now proceed on an expedited timeline, financed in part by the proceeds of a newly announced non-brokered private placement offering of up to $10-million, launched under the listed issuer financing exemption in Canada

National impact, global implications

The United States has been 100 per cent import dependent on fluorspar for decades -- until now. With the Lost Sheep mine advancing, the flotation plant nearing completion, and a $250-million contract ceiling under the DLA (Defense Logistics Agency) IDIQ, Ares is rapidly becoming the cornerstone of America's domestic acidspar supply.

"We're aligned with national priorities and uniquely positioned to deliver. Investors, partners and government agencies are recognizing that Ares isn't just building a mine -- we're rebuilding a critical American supply chain," added Mr. Walker.

Next milestones:

• Complete flotation plant foundation and mechanical installations;
• Begin first acidspar processing runs;
• Execute first deliveries under the DoD contract;
• Advance uplisting process to a senior exchange.

Private placement details -- $10-million to power strategic projects

Ares announces a non-brokered private placement offering of up to 16,666,666 units at a price of 60 cents per unit for gross proceeds of up to $10-million.

Each unit shall consist of one common share in the capital of the company and one-half of one non-transferable common share purchase warrant. Each warrant will be exercisable into one common share at a price of 75 cents per warrant share for a period of two years following the closing date of the offering.

There is an offering document related to the offering that can be accessed under the company's profile on SEDAR+ and on the company's website. Prospective investors should read the offering document before making an investment decision.

As disclosed in the offering document, the company intends to use the net proceeds from the offering for to further develop its Lost Sheep fluorspar project in the state of Utah, for the repayment of certain outstanding debts, and for general and corporate working capital purposes. Finders' fees may be paid to eligible arm's-length persons with respect to certain subscriptions accepted by the company.

The units offered as a part of the offering shall be offered to purchasers in each of the provinces of Canada, with the exception of Quebec, pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106, and in other qualifying jurisdictions. Units offered under the listed issuer financing exemption will not be subject to resale restrictions for Canadian resident investors pursuant to applicable Canadian securities laws.

The offering is anticipated to close in one or more tranches, with the final tranche of the offering closing within 45 days from the date hereof. The closing is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and other approvals, including the company's completion of its filing obligations under the policies of the Canadian Securities Exchange.

The company further announces that the proposed offering of up to 22,222,222 units at a price of 45 cents per unit that was announced on Dec. 4, 2025, did not close within the deadline set out in Section 5A.4(2) of NI 45-106, Prospectus Exemptions.

We seek Safe Harbor.