ARSMF - Ares Strategic Mining Completes Purchase of Lumps Plant Processing Facility

(TheNewswire)

• - Anticipated production readiness in 3 rd quarter 2021.

  - Production capable of producing 30MT/hour of high-grademetallurgical fluorspar lumps.

  - Potential 5,000 tonne/month operation with an expected selling priceof $500/tonne.

  - Inexpensive processing technology with high margin selling price.

  - The Mujim Group to assist with commissioning and optimization.

  - Technology not used outside of the Ares and Mujim Groups.

Vancouver, B.C. - TheNewswire - February 26 th , 2021 — Ares Strategic Mining Inc.(“Ares” or the “Company”) (TSXV:ARS) (OTC:ARSMF)(FRA:N8I1) , is pleased to announce, that the Company hascompleted a full acquisition of a processing plant from the MujimGroup, capable of manufacturing high-grade fluorspar lumps forindustry.

The fluorspar lumps plant will be the first production line in Ares’expanded fluorspar mining operation. Ares’ manufacturing partner,the Mujim Group, has developed a new technology able to producefluorspar lumps from material that was previously unsuitable formanufacturing lumps. The lumps product is ideal for use in metallurgy,ceramic, fiberglass, & glass industries, and reduces therefractory melting point, promotes the flow of slag, and enables theseparation of slag and metal. This product also assists withdesulfurization and dephosphorization during the smelting process, andacts to enhance the tensile strength of forged metals, making itextremely valuable and important to metals manufacturers. The MujimGroup operates several fluorspar mines in Thailand and Laos, and willbe supporting Ares as it commissions its processing facility.

Due to the industrial applications and relative rarity of fluorsparlumps, the product often commands higher retail prices than morerefined and pure fluorspar products, potentially offering Ares a newand improved income stream. Currently the United States imports 100%of this product for its industrial base, so the Company has thepotential to be the first metallurgical lumps manufacturer in thecountry. This manufacturing line would run alongside Ares’ alreadyanticipated plant and manufacturing facilities, and will afford it abroader range of industrial products.

In 2018 the U.S. government classified fluorspar as a CriticalMineral, “deemed critical to U.S. national security and theeconomy”. Fluorspar remains the only non-metallic Critical Mineralwhich is 100% imported in the entire country. Fluorspar’sclassification as a Critical Mineral in the United States translatesto a faster permitting period, enabling mining operations to initiatemore quickly than operations for conventional minerals.

James Walker, President and CEO stated: “Completing the purchase ofour processing plant is huge step towards our production goals. Theplant will ship imminently to Utah where we will begin itsinstallation and recommence our operations. We have completedcomprehensive mining and manufacturing plans for a large upgradedmining and processing operation, of which this plant will be the firstof our production lines. Metallurgical lumps are in heavy demand by USindustry, especially as the North America begins focusing more heavilyon domestic supply.”

The processing plant retails for US$2MM. The Mujim Group haverequested settlement in Shares because of the perceived value of theCompany’s future. The Group have agreed to accept 5.3MM shares,which will include plant construction, delivery, and commissioningassistance. The final product is expected to retail for over$500/tonne at current industry prices, of which the Mujim Group willreceive $10/tonne as part of its Technology Sharing Contract.

The Mujim Group has identified significant potential in Ares and willbe further investing in the Company. The Company will complete anon-brokered private placement to advance its U.S. operations andready the infrastructure and industrial site for plant installationand operations. T placement amount (the “Offering”) will be forapproximately 4,000,000 units (“Units”) at a price of $0.50 perUnit for gross proceeds of approximately $2,000,000. Each Unit shallconsist of one common share in the capital of the Company (a “CommonShare”).

Raul Sanabria, P.Geo., is a qualified person as definedby NI 43-101 and has reviewed and approved the technical contents ofthis news release.  Mr. Sanabria is not independent to theCompany as he is a Director and shareholder.

Disclosure: Companies typically rely on comprehensive feasibilityreports on mineral reserve estimates to reduce the risks anduncertainties associated with a production decision. Some industrialmineral ventures are relatively simple operations with low levels ofinvestment and risk, where the operating entity has determined that aformal prefeasibility or feasibility study in conformance with NI43-101 and 43-101 CP is not required for a production decision. TheCompany has not completed a feasibility study on, nor has the Companycompleted a mineral reserve or resource estimate at the Lost SheepMine and as such the financial and technical viability of the projectis at higher risk than if this work had been completed. Based onhistorical engineering work, geological reports, historical productiondata and current engineering work completed or in the process by Ares,the Company intends to move forward with the development of thisasset. The Company further cautions that it is not basing anyproduction decision on a feasibility study of mineral reservesdemonstrating economic and technical viability, and therefore there isa much greater risk of failure associated with its productiondecision. In addition, readers are cautioned that inferred mineralresources are considered too speculative geologically to have economicconsiderations applied to them that would enable them to becategorized as mineral reserves. The development of a mining operationtypically involves large capital expenditures and a high degree ofrisk and uncertainty. To reduce this risk and uncertainty, the issuertypically makes its production decision based on a comprehensivefeasibility study of established mineral reserves. The Company hasdecided to proceed without established mineral reserves, basingdecision on past production and internal projections.

Lost Sheep Fluorspar Project – Delta, Utah

• - 100% owned – 2,100 acres – 108 Claims

  - Located in the Spor Mountain area, Juab County, Utah, approximately214 km south-west of Salt Lake City.

  - Fully Permitted – including mining permits.

  - NI 43-101 Technical Report identified extensive high-grade fluorsparwith low levels of impurities.

  - Mining plan approved by BLM 1

First approved by Rex Rowley – Area Manager, Bureauof Land Management – 24th August 1992.

Renewed by Paul B. Baker – Minerals ProgramManager, Bureau of Land Management – 12th December 2016.

ON BEHALF OF THE BOARD OF DIRECTORS OF

ARES STRATEGIC MINING INC.

James Walker
Chief Executive Officer and President

For further information, please contact Mark Bolin byphone at 604-781-0535 or by email at mbolin@aresmining.com

Neither the TSX Venture Exchange norits Regulation Service Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release. No stock exchange, securitiescommission or other regulatory authority has approved or disapprovedthe information contained herein.

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