Ares Strategic Mining Secures Major Pentagon Contract to Bolster U.S. Critical Mineral Supply

Ares Strategic Mining Inc. has been officially awarded a $168,938,267.30 contract by the U.S. Department of Defense through the Defense Logistics Agency, representing a significant initiative to strengthen America's domestic manufacturing and supply base while supporting the rebuilding of U.S. strategic mineral stockpiles. The award is part of a five-year Indefinite Delivery/Indefinite Quantity agreement with a total contract ceiling of up to $250 million. James Walker, CEO of Ares Strategic Mining, stated that this contract transforms companies and secures the future of U.S. industry, emphasizing that the company is not just producing fluorspar but helping build a more resilient and secure domestic supply chain for critical minerals.

This award represents a major milestone for Ares and strengthens the company's positioning as a strategic domestic supplier of acid-grade fluorspar, a U.S. designated critical mineral essential to defense readiness, industrial manufacturing, clean energy supply chains, and high-tech applications. The contract establishes Ares as a sole-source domestic supplier of acidspar to the U.S. government and the only U.S.-based operation positioned to deliver this critical mineral supply at scale. Acid-grade fluorspar is a vital input used in the production of hydrofluoric acid and fluorine-based materials, supporting industries including defense systems and missile technology, steel and aluminum production, fluorochemical manufacturing, semiconductors, batteries, and next-generation electronics.

The United States has historically been 100% import-dependent for fluorspar, making the establishment of a domestic supply chain a critical national priority. This award marks a turning point that validates the national importance of Ares' Utah-based Lost Sheep Project and positions the company at the heart of America's effort to build a robust domestic sourcing network to ensure long-term self-sufficiency. With this award, Ares is positioned to support the U.S. government's mission to invest in a more resilient and secure national supply chain and promote long-term growth by prioritizing domestic sourcing of critical minerals. Walker added that this award reflects the U.S. government's commitment to revitalizing a long-neglected critical mineral supply chain and confirms the company's leadership in rebuilding U.S. critical mineral capability.

The company's Lost Sheep Fluorspar Project in Delta, Utah, encompasses 5,982 acres with 353 claims located in the Spor Mountain area, Juab County, Utah, approximately 214 km southwest of Salt Lake City. The project is fully permitted, including mining permits, and features a NI 43-101 Technical Report that identified extensive high-grade fluorspar with low levels of impurities. The mining plan was first approved by Rex Rowley, Area Manager of the Bureau of Land Management, on August 24, 1992, and renewed by Paul B. Baker, Minerals Program Manager of the Bureau of Land Management, on December 12, 2016. Based on historical engineering work, geological reports, historical production data, and current engineering work completed or in process by Ares, the company intends to move forward with the development of its Utah asset.