Ares Strategic, Found sign MOU for Lost Sheep materials

• Ares Strategic Mining Inc. and Found Industries (Found Metals division) signed a Memorandum of Understanding (MOU) on May 12, 2026.
• The agreement focuses on evaluating the recovery of gallium, germanium, and fluorspar from the Lost Sheep mine in Utah.
• Technology focus includes Found Metals' proprietary resin-free direct feedstock extraction platform/electrochemical refining.
• Initial phase involves technical evaluation, feedstock assessment, and preliminary analysis for future piloting and scale-up.
• The initiative is supported by the Commonwealth of Massachusetts through its InnovateMass program.
• Ares holds an existing five-year indefinite delivery/indefinite quantity contract with the U.S. Department of Defense valued at ~$168.9 million initial award, up to $250 million ceiling.

• The news represents a strategic partnership expansion rather than immediate revenue generation.
• While gallium and germanium are high-value critical minerals, the MOU is in the evaluation phase; no production timeline or guaranteed revenue is attached.
• This follows previous announcements (January 2026) identifying by-product germanium and gallium potential at Lost Sheep, making this a procedural step rather than new discovery news.
• The core value driver remains the DoD fluorspar contract awarded in January 2026; this MOU supports asset valuation but does not materially alter the immediate financial outlook compared to the contract award.
• Market reaction has been muted relative to the initial hype, suggesting investors view this as incremental progress on an already capitalized project.

• Flagship Project: Lost Sheep Fluorspar Mine, located in Juab County, Utah (5,982 acres, 353 mining claims).
• Status: Only currently permitted fluorspar mine in the United States; underground mining operations commenced February 2026.
• Product Focus: Acid-grade fluorspar ("acidspar") for defense and industrial use; potential by-products include gallium and germanium.
• Operational Milestones: Secondary ventilation system completed (November 2025); stockpiling of several thousand tons of ore began February 2026.
• Strategic Positioning: Sole domestic supplier of acid-grade fluorspar for the U.S. Department of Defense under a five-year IDIQ contract.