Mr. James Walker reports

CORPORATE UPDATE

Ares Strategic Mining Inc. has agreed to settle $1-million (U.S.) ($1,415,400 (Canadian)) of outstanding debt relating to mine and processing facility development through the issuance of 5,550,588 common shares at a deemed price of 25.5 Canadian cents per share. The debt, originally owed to Provo Mining and Construction Inc., was assigned to Roy Durr, who requested settlement in shares as an investment in Ares. The settlement will reduce the company's liabilities while preserving cash for operations.