Mr. James Walker reports

ARES STRATEGIC MINING COMPLETES FLOTATION PLANT INFRASTRUCTURE AND STEEL AND FABRICATION

The fabrication of Ares Strategic Mining Inc.'s state-of-the-art flotation plant has been completed, and the company has taken possession of the facility. The company has now begun arranging to ship the plant to the United States, where it will be assembled and integrated into its production construction project.

The plant, which will be housed within a specially designed two-storey structure, is capable of manufacturing acid-grade fluorspar (acidspar) through an advanced flotation process. This facility will be the only one of its kind in the United States, positioning Ares as the sole domestic producer of this critical mineral. To ensure the successful construction and optimization of the plant, Ares has arranged for experienced international operators to accompany the facility to Utah, where they will assist with the installation and fine tuning of the operation.

Acid-grade fluorspar, or acidspar, is a highly sought-after industrial product, primarily used in the production of hydrofluoric acid (HF), which is the principal source of fluorine for various critical industrial applications. These applications include the production of LiPF6, a key electrolyte in lithium-ion batteries, aluminum production, refrigerants, fluoropolymers and fluoroplastics, petroleum cracking, and other specialized uses. The company is looking to supply this essential mineral internally within North America as part of its role as the only domestic U.S. producer.

James Walker, president and chief executive officer of the company, said: "The completion of our flotation plant marks a significant milestone not only for Ares but for the entire U.S. industrial landscape. With this facility, we are bringing back a crucial industry to the United States. Acidspar accounts for approximately two-thirds of the U.S. market demand for fluorspar, and this will be the only facility of its kind in the country capable of meeting that demand domestically. By establishing this plant, we are taking an important step toward securing more robust and reliable domestic supply chains. As the U.S. continues to prioritize industrial self-sufficiency, our plant will play a key role in reducing reliance on foreign sources for this critical mineral. We are proud to be part of the drive to strengthen our nation's industrial base, and we will continue to keep everyone informed as we progress towards full production."

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 that 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.

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, BLM -- Aug. 24, 1992;
  • Renewed by Mike Gates, mineral program manager, BLM -- Dec. 12, 2016.

Raul Sanabria, PGeo, is a qualified person as defined by National Instrument 43-101 and has reviewed and approved the technical contents of this news release. Mr. Sanabria is not independent to the company as he is a director and shareholder.

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