ARSMF - Ares Strategic Mining Forward Pays Royalty on Utah Mine Cancels Stock Options and Closes Private Placement

(TheNewswire)

Vancouver, B.C. - TheNewswire- January 7, 2022 — Ares Strategic Mining Inc.(“ Ares ” or the “ Company ”) (CSE:ARS) (CNSX:ARS.CN) (OTC:ARSMF) (FRA:N8I1),is pleased to announce that the Company has arranged for the payment,in full of a royalty (the “ Royalty ”) retained by the sellers of theCompany’s Lost Sheep property located in the Spor Mountain area,Juab County, Utah (the “ LostSheep Fluorspar Project ”), closed itsnon-brokered private placement for gross aggregate proceeds ofapproximately $666,852 (the “ Private Placement ”), and cancelled anaggregate of 6,200,000 stock options (each, an “ Option ”) of theCompany.

Royalty Payment

The Company announces that it has, effective as of May15, 2021, paid in full the Royalty, a USD$1M (C$1.25M) net smelterreturn royalty retained by the sellers of the Company’s Lost SheepFluorspar Project which it acquired on February 18, 2020. ClearwaterGroup Inc. paid off the Royalty in full in exchange for the issuanceby Ares of an unsecured convertible debenture (the “ Debenture ”) in theprincipal amount of USD$1M.

The Debenture bears interest at a rate of 5% per annum,accruing from May 15, 2021, and is convertible into units (each,a “ Unit ”) at a price per Unit equal to the closing price of thecommon shares (each, a “ Share ”) of the Company on the day prior tothe date of conversion. Each Unit is comprised of one Share andone-half of one Share purchase warrant (each, a “ Warrant ”), witheach whole Warrant entitling the holder thereof to purchase oneadditional Share (each, a “ Warrant Share ”) at an exercise at a premiumto the market price per Share as follows:

Each Warrant entitles the holder, on exercise, to purchase one Sharefor a period of two years following the signing date of the Debenture agreement. Any securities issuable upon theirdue conversion are subject to a statutory hold period expiring on thedate that is four months and one day after the date of issue.

The Lost Sheep Fluorspar Project is located 70 kmnorthwest of the City of Delta, in Millard County, and 214 kmsouthwest of Salt Lake City, Utah. The property is comprised of 353mining claims comprising approximately 5,982 acres, including the LostSheep Fluoride Mine, and other unpatented claims. For more informationon the Lost Sheep Fluorspar Project or the Royalty, see Ares’February 20, 2020 news release filed under its profile on SEDAR .

Private Placement

The Company is also pleased to announce that it hassuccessfully completed the Private Placement for gross aggregateproceeds of approximately $666,852 by the issuance of 1,754,873 Sharesat a price of $0.38 per Share. The proceeds of the Private Placementare expected to be used to fund the Company’s Utah fluorspar projectand for general working capital. All Shares issued in connection withthe Private Placement are subject to a statutory hold period expiringon the date that is four months and one day after the date ofissue.

Option Cancellation

Based on certain changes in personnel, the Company alsoannounces that it has cancelled an aggregate of 6,200,000 Options. Thesubject Options were cancelled effective January 7, 2022, and arecomprised of 750,000 Options previously granted on August 30, 2020 atan exercise price of $0.15 per Share and 5,450,000 Options previouslygranted on May 19, 2021 at an exercise price of $0.62 perShares.

ON BEHALF OF THE BOARD OF DIRECTORSOF
ARES STRATEGIC MINING LTD.

James Walker
Chief Executive Officer and President

For further information, please contact Mark Bolin byphone at 604-345-1576 or by email at jwalker@aresmining.com

DISCLOSURE AND FORWARD-LOOKINGSTATEMENTS:

Certain information in this newsrelease may contain forward-looking statements that involvesubstantial known and unknown risks and uncertainties. Forward-lookingstatements are often identified by terms such as “will”,“may”, “should”, “anticipate”, “expects” and similarexpressions. All statements other than statements of historical factincluded in this news release are forward-looking statements thatinvolve risks and uncertainties. There can be no assurance that suchstatements will prove to be accurate and actual results and futureevents could differ materially from those anticipated in suchstatements. Important factors that could cause actual results todiffer materially from the Company’s expectations include thefailure to satisfy the conditions of the relevant securitiesexchange(s) and other risks detailed from time to time in the filingsmade by the Company with securities regulations. The novel strain of coronavirus, COVID-19,also poses new risks that are currently indescribable andimmeasurable. The reader iscautioned that assumptions used in the preparation of anyforward-looking information may prove to be incorrect. Events orcircumstances may cause actual results to differ materially from thosepredicted, as a result of numerous known and unknown risks,uncertainties, and other factors, many of which are beyond the controlof the Company. The reader is cautioned not to place undue reliance onany forward-looking information. Such information, although consideredreasonable by management at the time of preparation, may prove to beincorrect and actual results may differ materially from thoseanticipated. Forward-looking statements contained in this news releaseare expressly qualified by this cautionary statement. Theforward-looking statements contained in this news release are made asof the date of this news release and the Company disclaims anyintention or obligation to update or revise such information, exceptas required by applicable law.

The CSE (operatedby CNSX Markets Inc.) has neither approved nor disapproved of thecontents of this press release.

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