Ares Strategic Mining Completes Secondary Ventilation System at its Mine, Clearing Path for Industrial-Scale Mining

Executive Summary

• Ares Strategic Mining completed and activated its secondary underground ventilation system at the Lost Sheep Fluorspar Mine, satisfying all MSHA regulatory requirements and clearing the final hurdle to commence industrial‑scale mining.
• The new 75‑hp, 30‑inch fan delivers ≥ 30,000 CFM of fresh air, provides a redundant egress pathway, and enables the company to ramp up to continuous ore extraction and processing.
• Concurrently, Ares settled $64,901.13 of accrued debt by issuing 150,933 common shares at a deemed price of $0.43 per share.

Key Details

• Ventilation System Specs – 75‑horsepower fan, 30‑inch diameter, minimum 30,000 CFM airflow; custom‑built by ABC Ventilation Systems and installed on a dedicated ventilation raise that also serves as a secondary escape route.
• Design & Installation – Designed and implemented by Provo Mining Construction (PMC) with future expansion capacity built into the system.
• Regulatory Impact – Meets MSHA redundancy and safety standards; marks the final underground infrastructure milestone required for “continuous mining operations at scale.”
• Operational Readiness – With ventilation online, Ares can now begin ore extraction at industrial levels, supporting near‑term stockpiling and processing targets.
• Supporting Infrastructure Completed – Spiral decline development, ore access drifts, mobilization of full mining equipment fleet (loaders, articulated trucks, jumbo drills), and commissioning of surface Lumps Plant processing facility.
• Strategic Positioning – Lost Sheep Mine is the only permitted and operational fluorspar mine in the United States, a U.S.-designated critical mineral essential for aluminum/steel production, lithium‑ion batteries, fluoropolymers, hydrofluoric acid, and nuclear fuel.
• Debt Settlement & Share Issuance – Settled $64,901.13 of debt owed to Viktoriya Griffin, Prospero, and Craven Capital by issuing 150,933 common shares at a deemed price of $0.43 per share.

Notable Quotes

“The completion of the ventilation system marks a turning point for Ares. With this vital infrastructure now in place and MSHA standards fully met, our teams are green‑lit to ramp up to full‑scale, continuous mining. This is the final step before true production begins—and it brings us closer than ever to generating consistent revenue as America’s only fluorspar producer.” – James Walker, CEO & President, Ares Strategic Mining

Materiality Assessment: Material – Positive (the milestone enables commencement of revenue‑generating mining operations and includes a financing component).