Mr. James Walker reports

ARES STRATEGIC MINING SECURES MAJOR STATE FUNDING OF $11,000,000 USD TO ACCELERATE PRODUCTION RAMP-UP

Ares Strategic Mining Inc. has successfully acquired an $11-million (U.S.) loan from the Utah State Legislature and the Utah Community Impact Board (CIB). This significant financial backing will accelerate the mining and processing of fluorspar and gallium at the company's Lost Sheep mine, located near Delta, Utah. As the only fully permitted and licensed fluorspar mine in the United States, the Lost Sheep mine has also been confirmed to contain substantial gallium deposits.

Utah State Senator Jerry Stevenson, who championed SB187 during the 2025 legislative session to authorize the loan, emphasized the strategic importance of this initiative: "Fluorspar and gallium are essential to U.S. national security and economic stability. Establishing a domestic supply for these critical minerals is a priority."

"CIB is delighted to support a project of such national significance that will also create valuable job opportunities in rural Utah," said Curtis Webb, chair of the CIB.

Ares chief executive officer James Walker expressed deep gratitude, stating: "We are immensely thankful to the Utah Legislature and the CIB for their support in expediting the development of a domestic source for these vital minerals. Utah's investment in Ares underscores a strategic commitment to rebuilding critical mineral supply chains in the U.S. This funding highlights the pivotal role of fluorspar across defence, technology and renewable energy sectors while also addressing the absence of domestic gallium production since 1987 -- a mineral crucial to our economy and national defence. Ares is proud to be based in Utah and eager to contribute significantly to the state's industrial and economic growth."

The importance of fluorspar and gallium

Fluorspar is a versatile industrial mineral with applications in uranium enrichment, lithium-ion batteries, steel manufacturing, the chemical industry, cement production, water fluoridation and aluminum production. In 2018, the U.S. government designated fluorspar as a critical mineral, recognizing its importance to national security and the economy. Notably, fluorspar is the only non-metallic critical mineral entirely imported into the United States. Its classification accelerates permitting processes, enabling faster initiation of mining operations compared with conventional minerals.

Gallium, particularly in the form of gallium nitrate, is a cornerstone of the U.S. microchip industry. Gallium nitrate semiconductors are celebrated for their exceptional performance, offering faster charging, greater efficiency and enhanced functionality in electronic devices.

About Ares Strategic Mining Inc.

Ares Strategic Mining is a mining company focused on the development of its fluorspar projects in the United States. The company aims to become a significant supplier of high-grade fluorspar to North American markets, supporting industries vital to modern technology and infrastructure.

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 BLM (Bureau of Land Management):
  • First approved by Rex Rowley, area manager, BLM -- Aug. 24, 1992;
  • Renewed by Paul B. Baker, minerals program manager, BLM -- Dec. 12, 2016.

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