Ares Strategic Mining Achieves Major Infrastructure Advancements at Mining Operation and Processing Plant

Executive Summary

• Ares Strategic Mining reports major underground and plant‑construction milestones at its Lost Sheep Fluorspar Project, positioning the mine for full‑scale industrial production.
• The company secured a non‑dilutive cash infusion of approximately $3.66 million from Sorbie Bornholm and references a recently closed $10 million financing.
• A new private placement offering of up to 22,222,222 units at $0.45 per unit (gross proceeds up to $10 million) was announced, with proceeds earmarked for working capital and debt repayment.

Key Details

• Underground Infrastructure Completed
• Secondary ventilation door sealed to meet MSHA standards.
• Raise 1 equipped with tugger and slusher system for ore haulage.
• New drill stations installed in declines for upcoming headings and blasting.

• Waste pad upgraded for efficient ore‑waste segregation.

• Processing Plant Construction Progress

• Over 6 cubic yards of concrete poured for key support columns.
• Walkway decking installed on ~70 % of Level 2 mainframe; scaffolding erected on Level 3, removed from Level 2.
• Grade screen and crusher frame fitted; concentrator tank welding ongoing; product warehouse hopper fabrication continuing.

• Power feed conveyor belt fully installed; backfilling completed around concrete slab foundations.

• Strategic Importance

• Fluorspar designated a U.S. critical mineral, essential for steel/aluminum production, lithium‑ion batteries, fluorochemical manufacturing, and nuclear fuel development.

• Lost Sheep is the only permitted fluorspar mine in the United States, positioning Ares as a cornerstone of North America’s strategic supply chain.

• Non‑Dilutive Funding from Sorbie Bornholm

• Cash infusion ≈ $3.66 million via “Sharing Agreements” (no share dilution).

• Returns: +180 % undiluted and +266 % undiluted on the agreements; gain of > $2.66 million on Sorbie’s initial $1 million investment.

• Financing & Private Placement Offering

• Recently closed a $10 million financing to support accelerated production schedule (Sorbie participation).
• New non‑brokered private placement: up to 22,222,222 units at $0.45 per unit → gross proceeds up to $10 million.
• Each unit = 1 common share + ½ non‑transferable warrant; warrants exercisable at $0.55 per share for two years post‑closing.
• Net proceeds earmarked for general corporate working capital and repayment of outstanding debts.
• Offering subject to Canadian Listed Issuer Financing Exemption (excludes Quebec); final tranche expected to close within 45 days of release, contingent on regulatory approvals.

Notable Quotes

• James Walker, CEO: “This wave of construction and underground progress marks a major turning point for Ares… Every pad, bolt, weld, and fan gets us closer to delivering fluorspar to a market that desperately needs it.”
• James Walker, on Sorbie funding: “This is an incredible vote of confidence in our project from Sorbie Bornholm. The structure of the agreement delivered substantial capital without diluting shareholders, enabling us to fast‑track our second plant and scale our fluorspar production capabilities.”