Ares completes secondary ventilation system at Sheep

Executive Summary

• Ares Strategic Mining has completed and activated its secondary underground ventilation system at the Lost Sheep fluorspar mine in Utah, marking the final regulatory and operational milestone required to commence industrial-scale mining operations in compliance with MSHA standards.
• The company has agreed to settle $64,901.13 of debt owed to creditors (Viktoriya Griffin, Prospero, and Craven Capital) by issuing 150,933 common shares at a deemed price of $0.43 per share.
• With the ventilation system online and other infrastructure (decline development, equipment, surface processing) in place, the company is cleared to begin ore extraction at industrial levels, aiming to become America's only operational fluorspar producer.

Key Details

• Ventilation System Specifications:
  • Installed a 75-horsepower, 30-inch diameter fan.
  • Generates a minimum of 30,000 cubic feet per minute (CFM) of fresh airflow.
  • Custom-built by ABC Ventilation Systems.
  • Installed along a dedicated ventilation raise that also serves as a second egress pathway to meet MSHA redundancy and safety requirements.
  • Designed and implemented by Provo Mining Construction (PMC).
  • Includes future airflow expansion plans integrated for deeper mining activities.
• Debt Settlement Terms:
  • Total debt settled: $64,901.13.
  • Creditors: Viktoriya Griffin, Prospero, and Craven Capital.
  • Consideration: Issuance of 150,933 common shares.
  • Deemed price per share: $0.43.
• Operational Milestones Completed:
  • Completion of spiral decline development and ore access drifts.
  • Mobilization of full mining equipment fleets (loaders, articulated trucks, jumbo drills).
  • Construction and commissioning of surface processing infrastructure (Lumps plant).
• Strategic Context:
  • Lost Sheep mine is the only permitted and operational fluorspar mine in the United States.
  • Fluorspar is a US-designated critical mineral used in aluminum/steel, lithium-ion batteries, fluoropolymers, hydrofluoric acid, and nuclear fuel production.
  • Company aims to support North American industrial supply chains and reduce dependence on foreign sources.

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 greenlit 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, Chief Executive Officer