Mr. James Walker reports

ARES STRATEGIC MINING FULLY COMPLETES PAYMENT IN FULL FOR ITS NEW PROCESSING PLANT TO EXPAND ITS MANUFACTURING OPERATIONS

Ares Strategic Mining Inc. has completed all the payments to purchase, fabricate and assemble the company's advanced -- and the only one of its kind in the country -- acidspar manufacturing facility.

Acidspar is the highest-grade fluorspar product produced for industry and is one of the most ubiquitously used industrial minerals in manufacturing, with applications in the chemical, hydrofluoric acid, aluminum, electronics, lithium-ion battery and refrigeration industries. This high-end industrial product requires a fluorspar purity of 97-plus per cent, which the new plant will provide. Acidspar sells for a premium in the fluorspar market due to the vast number of industrial applications. The product composes over two-thirds of the United States' fluorspar market and is currently 100 per cent imported from countries outside the United States.

Acidspar flotation manufacturing system

The company recently closed a $10.5-million (U.S.) financing, to build its second and largest plant -- a flotation facility designed to produce acidspar. Acidspar sells for a premium in the fluorspar market due to the extensive number of industrial applications.

The company is seeking to rebuild the U.S. fluorspar industry, which has elicited enormous help from the government, which referred the company to both the USDA (United States Department of Agriculture) loan closed earlier this year, and the State of Utah's Private Activity Bond (PAB) program. This program is Utah's tax-exempt bonding authority creating a lower-cost, long-term source of capital under the Federal Tax Act of 1986. The company was referred to the program by the State of Utah through its business development channels, to help support and realize the company's project.

Ares acidspar production facility

In 2018, the U.S. government classified fluorspar as a critical mineral, "deemed critical to U.S. national security and the economy." Fluorspar remains the only non-metallic critical mineral which is 100 per cent imported in the entire country. Fluorspar's classification as a critical mineral in the United States translates to a faster permitting period, enabling mining operations to initiate more quickly than operations for conventional minerals.

James Walker, president and chief executive officer of the company, said: "This is a major step for our company and business. The full payment of the plant has commenced the fabrication of the larger facility, which the manufacturer has arranged to expedite. With the bond proceeds the company has already ensured Ares can complete the construction of the acidspar production plant, along with the installation of a modern, well-designed supporting infrastructure at our Utah manufacturing site. We anticipate a very active and productive 2024 for our company -- we have the resources to build an expanded operation able to cater to a large and expectant market."

Lost Sheep fluorspar project -- Delta, Utah:

• 100 per cent owned, 5,982 acres, 353 claims:
  • Located in the Spor Mountain area, Juab county, Utah, approximately 214 kilometres southwest of Salt Lake City;
  • Fully permitted -- including mining permits;
  • National Instrument 43-101 technical report identified extensive high-grade fluorspar with low levels of impurities;
  • Mining plan approved by BLM (Bureau of Land Management).
• First approved by Rex Rowley, area manager, Bureau of Land Management, on Aug. 24, 1992;
• Renewed by Mike Gates, minerals program manager, Bureau of Land Management, on Dec. 12, 2016.

We seek Safe Harbor.