Mr. James Walker reports

ARES STRATEGIC MINING EXPEDITES COMPANY ROADMAP AND PRODUCTION PLAN AHEAD OF GOVERNMENT CONTRACT

Ares Strategic Mining Inc. has set an expedited road map to the production of acidspar. The initiative will include an acceleration of the planned expansion of mining activities at the Spor Mountain, as well as fast tracking the construction of the flotation plant so the company can produce acidspar to meet its Pentagon contract obligations. This initiative will include imminent drilling activities to expand mining targets and the number of mines available to Ares, as well as bringing in crews to ensure Ares can produce the highest-grade fluorspar products in 2026.

DoD (Department of Defense) contract necessitates acceleration

The DoD contract has a ceiling of $250-million (U.S.), which can be awarded on delivery of quality product from Dec. 30, 2025, to Dec. 29, 2030. Under the terms of the contract, acidspar must be delivered within 36 months after the issuance of each delivery order, the first of which was awarded on Dec. 30, 2025. The opportunity to realize the ceiling amount of this contract award, at the favourable market rates agreed, necessitates the revision of Ares's company road map and production plan.

"The DoD contract has transformed our company road map, and the race is on to deliver as much quality fluorspar as we can. To do that, we need more funding. The latest funding will help us to reach our first DoD deliveries, and crucially, to reach the ceiling of the award in the time frame specified," said James Walker, chief executive officer.

Ares revises production plan

The latest $10-million funding has enabled Ares to revise their production plan. "With the lumps plant very close to completion, we are now focused on phase 3 of our plan," added Mr. Walker.

Ares is also pleased to announce that it has closed its previously announced offering of units by issuing 16,666,666 units at a price of 60 cents per unit, for aggregate gross proceeds of $10-million. "We're proud to champion this funding publicly, it's yet another clear vote of confidence in our mission and enables us to revise our road map and production plans," said Mr. Walker, CEO.

Ares announces significant increase in institutional investment

Pursuant to the terms of the financing arrangements entered into with Sorbie Bornholm LP, the company is required to disclose the benchmark amounts expected to be received and the actual proceeds received under such arrangements. Since the company has entered into three separate financing facilities with Sorbie, each with a different benchmark price and monthly baseline amount, the disclosure is provided below on a facility-by-facility basis.

1) Sorbie $1.5-million financing (September, 2024)

Aggregate benchmark amount for months paid to date:  $1-million

Aggregate gross proceeds received to date (October, 2024, through January, 2026):  $1,119,564.38

Variance (received versus benchmark):  $119,564.38

Upfront fees paid to enter the agreement:  $105,000

2) Sorbie $1.0-million financing (April, 2025)

Aggregate benchmark amount for months paid to date:   $375,003.00

Aggregate gross proceeds received to date (May, 2025, through January, 2026):  $727,313.86

Variance (received vs. benchmark):   $352,310.86

Upfront fees paid to enter the agreement:  $70,000

3) Sorbie $1.0-million financing (October, 2025)

Aggregate benchmark amount for months paid to date:  $125,001.00

Aggregate gross proceeds received to date (November, 2025, through January, 2026):  $97,884.42

Variance (received vs. benchmark):  negative $27,116.58

Upfront fees paid to enter the agreement:  $0

Accordingly, the total proceeds received to date exceed the aggregate benchmark amount by $269,758.66

Ares also issued to its consultants an aggregate of 700,000 options on Jan. 23, 2026, to purchase 700,000 common shares in the capital of the corporation at an exercise price of 63 cents per common share, expiring Jan. 23, 2028.

We seek Safe Harbor.