Ares Strategic Mining Closes Second Tranche of LIFE Offering

Executive Summary

• Ares Strategic Mining Inc. closed the second and final tranche of its private placement, issuing 12,221,889 units at $0.45 per unit for gross proceeds of $5,499,850.
• Total capital raised to date under the LIFE Offering and Amended LIFE Offering now stands at $10,499,850.45.
• The company entered a hedging arrangement with Sorbie Bornholm LP involving $1 million of UK government bonds as credit support, with settlement terms tied to the Company’s share price relative to a $0.63 benchmark.

Key Details

• Units Issued (Second Tranche): 12,221,889 units @ $0.45 per unit → $5,499,850 gross proceeds.
• Unit Composition: Each unit = 1 common share + ½ non‑transferable common share purchase warrant (exercisable at $0.55 per share for two years).
• Finder’s Warrants Paid: Cash payment of $267,965.98 and issuance of 595,480 finder’s warrants (exercise price $0.55, 4‑month hold period).
• Total Funds Raised to Date: $10,499,850.45 from the original LIFE Offering and the amended offering.
• Correction Notice: First Tranche finder’s warrant exercise price corrected from $0.45 to $0.55 per share.
• Hedging Arrangement with Sorbie Bornholm LP:
• ISDA Master Agreement (23 Aug 2024) & Sharing Agreement (20 Oct 2025).
• Posted support of $1 million used to purchase UK government bonds as credit support.
• Settlement over 24 monthly tranches based on VWAP of common shares for the prior 20 trading days vs. benchmark price $0.63.
• Monthly release amount: $41,667 (subject to pro‑rata adjustment up or down depending on share price relative to benchmark).
• To date, Ares has received ~12 % extra cash under previous sharing agreements with Sorbie.
• Regulatory Note: Units are not registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent an exemption.

Notable Quotes

“The successful closing of the second tranche and our hedging partnership with Sorbie provide us with essential capital and risk mitigation tools to advance our strategic objectives,” – James Walker, CEO & President, Ares Strategic Mining Inc.