ARSMF - Ares Strategic Mining Locates the Germanium and Gallium Minerals at the Centre of the US-China Trade Dispute at its Utah Fluorspar Project

(TheNewswire)

• Ares tests previous assays from its Utah fluorsparproject and finds the rare earth minerals:  germanium and gallium.

• China is restricting exports of two niche metals —germanium and gallium — that are key to manufacture electronics andsemiconductors, as the tech battle with the U.S. and Europe heatsup.

• China produces 60% of the world’s germanium and 80%of gallium, according to the Critical Raw Materials Alliance.

Vancouver, B.C., - TheNewswire - August 3 rd , 2023 — AresStrategic Mining Inc. (“Ares” or the “Company”) (CSE:ARS)(OTC:ARSMF) (FRA:N8I1), is pleased to announce the Company hasdetected germanium and gallium in its fluorspar, following assayingconducted by SGS. Both minerals play a crucial role in developing andsustaining the tech industry. China was the principal source of theUnited States’ germanium and gallium, but both minerals have nowbeen restricted from export.

Ares located germanium and gallium in its fluorsparlocated at the Spor Mountain at its Utah fluorspar project. Thecompany is concentrating its efforts currently on building processingfacilities to achieve production at its operation but plans to furtherexplore the Rare Earth discovery when it conducts further drilling.The minerals were located through an RC drilling program, and furtherwork using core drilling with be used to develop a betterunderstanding of the rare earths located at the Spor Mountain project.

China is restricting exports of two niche metals thatare key to manufacture electronics and semiconductors, as the techbattle with the U.S. and Europe heats up. Germanium and gallium arethe two metals in the spotlight. China and the U.S. have been lockedin a technology trade war that has been escalating since 2019. TheU.S. has used trade blacklists and sweeping export restrictions to cutChina off from key technology components and semiconductors or chips,and China has responded with restricting exports of germanium andgallium.

About Gallium

Gallium is found in trace amounts in zinc ores and inbauxite, and gallium metal is produced when processing bauxite to makealuminium. Around 80% is produced in China, according to theCRMA.

Gallium is used to make gallium arsenide for use inelectronics. China exported 94 metric tons of gallium in 2022, up 25%on the prior year, according to Chinese customs. U.S. imports of gallium metal and gallium arsenide (GaAs) wafersin 2022 were worth about $3 million and $200 million, respectively,according to USGS.

About Germanium

Germanium ores are rare and most germanium is aby-product of zinc production and from coal fly ash. China producesaround 60% of the world's germanium, according to European industryassociation Critical Raw Materials Alliance (CRMA), with the restcoming from Canada, Finland, Russia and the United States. Chinaexported 43.7 metric tons of unwrought and wrought germanium lastyear, according to Chinese customs. Roughly $39 million worth ofgermanium was consumed last year, up 10% from 2021, according to theU.S. Geological Survey (USGS).

James Walker, CEO and President of the Company, said,“It’s an extremely interesting find to locate both germanium andgallium at our fluorspar project, right at the time when the trade waris promising to interfere with the supply of minerals vital to theproduction of microchips and electronics needed to sustain the techindustry. We are currently building our production facility in Utah,and upgrades could be incorporated into the operation to retrieve theminerals, provided further investigationjustifies the expanded recovery operation. As we continue ourconstruction work, we will investigate this discovery, examining thepossibility of commercialization.”

In 2018 the U.S. government classified fluorspar as aCritical Mineral, “deemed critical to U.S. national security and theeconomy.” Fluorspar remains the only non-metallic Critical Mineral,which 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.

Lost Sheep Fluorspar Project – Delta, Utah

• 100% owned – 5,982 acres – 353 Claims.

• Located in the Spor Mountain area, Juab County, Utah,approximately 214 km south-west of Salt Lake City.

• Fully Permitted – including mining permits.

• NI 43-101 Technical Report identified extensivehigh-grade fluorspar with 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 Mike Gates – Minerals Program Manager,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 James Walker byemail at jwalker@aresmining.com

DISCLOSURE AND FORWARD-LOOKINGSTATEMENTS:

Companies typically rely oncomprehensive feasibility reports on mineral reserve estimates toreduce the risks and uncertainties associated with a productiondecision. Historically, situations where the issuer decides to put amineral project into production without first establishing mineralreserves supported by a technical report and completing a feasibilitystudy have a higher risk of economic or technical failure, though someindustrial mineral ventures are relatively simple operations with lowlevels of investment and risk, where the operating entity hasdetermined that a formal prefeasibility or feasibility study inconformance with NI 43-101 and 43-101 CP is not required for aproduction decision. Based on historical engineering work, geologicalreports, historical production data and current engineering workcompleted or in the process by Ares, the Company intends to moveforward with the development of its Utah asset.

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 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.

1

Copyright (c) 2023 TheNewswire - All rights reserved.