# EDGAR Filing Document

**Accession Number:** 0001804792
**File Stem:** 0001213900-26-066334
**Filing Date:** 2026-6
**Character Count:** 775713
**Document Hash:** 6eaf002dfbc02a56a227022c7fa4e767
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-26-066334.hdr.sgml**: 20260608

**ACCESSION NUMBER**: 0001213900-26-066334

**CONFORMED SUBMISSION TYPE**: F-10

**PUBLIC DOCUMENT COUNT**: 41

**FILED AS OF DATE**: 20260608

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ARES STRATEGIC MINING INC.
- **CENTRAL INDEX KEY:** 0001804792

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** A1
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** F-10
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-296608
- **FILM NUMBER:** 261073493

**BUSINESS ADDRESS:**
- **STREET 1:** SUITE 1001
- **STREET 2:** 409 GRANVILLE STREET
- **CITY:** VANCOUVER
- **STATE:** A1
- **ZIP:** V6C 1T2
- **BUSINESS PHONE:** 604-346-1576

**MAIL ADDRESS:**
- **STREET 1:** SUITE 1001
- **STREET 2:** 409 GRANVILLE STREET
- **CITY:** VANCOUVER
- **STATE:** A1
- **ZIP:** V6C 1T2

**As filed with the U.S. Securities and Exchange Commission on June 8, 2026**

**Registration No. 333-**

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM F-10**

**REGISTRATION STATEMENT**

***UNDER***

***THE SECURITIES ACT OF 1933***

**ARES STRATEGIC MINING INC.**

**(Exact name of Registrant as specified in its charter)**

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| | | |
|:---|:---|:---|
| **British Columbia, Canada** | **1499** | **61-1993876** |
| **(Province or other jurisdiction of<br> incorporation or organization)** | **(Primary Standard Industrial<br> Classification Code Number)** | **(I.R.S. Employer**<br> **Identification Number)** |

---

**409 Granville St. Suite 1001** 

**Vancouver, British Columbia V6C 1T2**

**Canada**

**(604) 345-1576** 

**(Address and telephone number of Registrant's principal executive offices)**

**Cogency Global Inc.<br> 112 East 42nd Street, 18th Floor<br> New York, New York 10168<br> Telephone (800) 221-0102**

**(Name, address, including zip code, and telephone number, including area code, of agent for service in the United States)**

***Copies to:***

---

| | |
|:---|:---|
| **Nazia J. Khan, Esq.**<br> **Richard A. Friedman, Esq.**<br> **Sheppard, Mullin, Richter & Hampton LLP**<br> **30 Rockefeller Plaza**<br> **New York, NY 10112**<br> **Tel: (212) 653-8700** | **Mark D. Wood<br> Katten Muchin Rosenman LLP<br> 525 W. Monroe Street<br> Chicago, IL 60661<br> Tel: (312) 902-5200** |

---

**Approximate date of commencement of proposed sale to the public:** From time to time after this Registration Statement becomes effective.

**Province of British Columbia, Canada**

**(Principal jurisdiction regulating this offering)**

It is proposed that this filing shall become effective (check appropriate box below):

A. ☐ upon
 filing with the Commission, pursuant to Rule 467(a) (if in connection with an offering being made contemporaneously in the United
 States and Canada).

B. ☒ at
 some future date (check appropriate box below)

&nbsp;&nbsp;&nbsp;&nbsp;1. ☐ pursuant
 to Rule 467(b) on () at () (designate a time not sooner than seven calendar days after filing).

2. ☐ pursuant
 to Rule 467(b) on () at () (designate a time seven calendar days or sooner after filing) because the securities regulatory authority
 in the review jurisdiction has issued a receipt or notification of clearance on ().

3. ☐ pursuant
 to Rule 467(b) as soon as practicable after notification of the Commission by the Registrant or the Canadian securities regulatory
 authority of the review jurisdiction that a receipt or notification of clearance has been issued with respect hereto.

4. ☒ after
 the filing of the next amendment to this Form (if preliminary material is being filed).

If any of the securities being registered on this form are to be offered on a delayed or continuous basis pursuant to the home jurisdiction's shelf prospectus offering procedures, check the following box. ☒

**The Registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registration statement shall become effective as provided in Rule 467 under the United States Securities Act of 1933 or on such date as the Commission, acting pursuant to Section 8(a) of the Act, may determine.**

**PART I**

**INFORMATION REQUIRED TO BE DELIVERED TO OFFEREES OR PURCHASERS**

 

*A copy of this preliminary short form base shelf prospectus has been filed with the securities regulatory authorities in the provinces of Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island and Saskatchewan, but has not yet become final for the purpose of the sale of securities. Information ‎‎contained ‎in ‎this preliminary short form base shelf prospectus may not be complete and may ‎have to be amended. The securities may not be sold ‎until a ‎receipt for the ‎short form base shelf prospectus is obtained from the securities ‎regulatory authorities.‎*

 

*This preliminary short form base shelf prospectus has been filed under legislation in the provinces of Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island and Saskatchewan that permits certain information about ‎these securities to be determined after this prospectus has become final and that permits the omission from this prospectus of that information. ‎The legislation requires the delivery to purchasers of a prospectus supplement containing the omitted information within a specified period of ‎time after agreeing to purchase any of these securities, except in cases where an exemption from such delivery requirements is available. ‎*

 

*No securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise. This short form base ‎shelf prospectus constitutes a public offering of these securities only in those jurisdictions where they may be lawfully offered for sale and only by ‎persons permitted to sell these securities. See "Plan of Distribution"‎.*

 

*Information contained herein is subject to completion or amendment. A registration statement relating to these securities will be filed with the United States Securities and Exchange Commission (the "**SEC**"). These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. The prospectus shall not constitute an offer to sell or the solicitation of an offer to buy nor shall be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.*

 

***Information has been incorporated by reference in this preliminary short form base shelf prospectus from documents filed with securities commissions or similar authorities in Canada.*** *Copies of the documents incorporated herein by reference may be obtained on request, without charge from the Corporate Secretary of Ares Strategic Mining Inc. at 1001, 409 Granville St., Vancouver, B.C., Canada, V6C 1T2, telephone (604) 345-1576*, *and are also available electronically at www.sedarplus.ca.* 

**PRELIMINARY short form base shelf prospectus**

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| | |
|:---|:---|
| **NEW ISSUE AND/OR SECONDARY OFFERING** | **June 5, 2026** |

---

![](ea029307701_img1.jpg)

**ARES STRATEGIC MINING INC.**

**US$100 MILLION**

**Common Shares**

**Warrants** 

**Subscription Receipts** 

**Share Purchase Contracts**

**Units**

**Common Shares represented by Depositary Shares**

Ares Strategic Mining Inc. (the "**Company**" or "**Ares**") may offer (the "**Offerings**") and sell, from time to time, common shares of the Company (the "**Common Shares**"), warrants to purchase securities ("**Warrants**"), subscription receipts ("**Subscription ‎Receipts**"), share purchase contracts ("**Share Purchase Contracts**"), any combination of such securities ("**Units**") or Common Shares represented by depositary shares, including American depositary shares ("**Depositary Shares**") (all of the foregoing, collectively, the "**Securities**") up to an aggregate initial Offering price of US$100 million (or the equivalent thereof, at the date of issue, in any other currency or currencies, as the case may be) at any time during the 25-month period that this short form base shelf prospectus (including any amendments hereto) (the "**Prospectus**"), remains effective. The Securities may be sold by the Company or certain of the Company's security holders ("**Selling Securityholders**" and each, a "**Selling Securityholder**"). See "*Selling Securityholders*". Securities offered hereby may be offered separately or together, in separate series, in amounts, at prices and on terms to be determined based on market conditions at the time of sale, including potentially by way of an "at-the-market distribution" (as defined under applicable Canadian securities legislation), and set forth in one or more prospectus supplements (collectively or individually, as the case may be, "**Prospectus Supplements**"). In addition, Securities may be offered and issued in consideration for the acquisition of other businesses, assets or securities by the Company or one of its subsidiaries. The consideration for any such acquisition may consist of any of the Securities separately, a combination of Securities or any combination of, among other things, Securities, cash and assumption of liabilities.

The Securities may be sold from time to time in one or more transactions at a fixed price or prices which may be changed or at market prices prevailing at the time of sale, at prices related to such prevailing market prices or at negotiated prices. The prices at which the Securities may be offered and sold may vary as between purchasers and during the period of distribution. If, in connection with the Offering of Securities at a fixed price or prices, the underwriters have made a bona fide effort to sell all of the Securities at the initial Offering price fixed in the applicable Prospectus Supplement, the public Offering price may be decreased and thereafter further changed, from time to time, to an amount not greater than the initial Offering price fixed in such Prospectus Supplement, in which case the compensation realized by the underwriters will be decreased by the amount that the aggregate price paid by purchasers for the Securities is less than the gross proceeds paid by the underwriters to the Company or any Selling Securityholder. See "*Plan of Distribution*".

The specific terms of the Securities with respect to a particular Offering will be set out in the applicable Prospectus ‎Supplement and may include, where applicable (i) in the case of Common Shares, the number of Common Shares offered, ‎the Offering price, whether the Common Shares are being offered for cash, and any other terms specific to the Common ‎Shares being offered, (ii) in the case of Warrants, the number of such Warrants ‎offered, the Offering price, whether the Warrants are being offered for cash, the designation, the number and the terms of ‎the Common Shares purchasable upon exercise of the Warrants, any procedures that will result in the ‎adjustment of these numbers, the exercise price, the dates and periods of exercise, the currency in which the Warrants are ‎issued and any other terms specific to the Warrants being offered, (iii) in the case of Subscription Receipts, the number of ‎Subscription Receipts being offered, the Offering price, whether the Subscription Receipts are being offered for cash, the ‎procedures for the exchange of the Subscription Receipts for Common Shares or Warrants, as the case may ‎be, and any other terms specific to the Subscription Receipts being offered, (iv) in the case of Share Purchase Contracts, the number and terms of the Common Shares subject to such contracts, (v) in the case of Common Shares represented by Depositary Shares, the number of Depositary Shares being offered, the number of Common Shares underlying each Depositary Share, the offering price and currency of the Depositary Shares, the name of the depositary, and the terms and details of the deposit agreement under which the Depositary Shares would be issued and (vi) in the case of Units, the designation, ‎number and terms of the Common Shares, Warrants, Subscription Receipts, Share Purchase Contracts or Depositary Shares comprising the Units. Where ‎required by statute, regulation or policy, and where Securities are offered in currencies other than United States dollars, ‎appropriate disclosure of foreign exchange rates applicable to the Securities will be included in the Prospectus Supplement ‎describing the Securities‎.

All shelf information permitted under applicable laws to be omitted from this Prospectus will be contained in one or more Prospectus Supplements that will be delivered to purchasers together with this Prospectus, except in cases where an exemption from such delivery requirements has been obtained. Each Prospectus Supplement will be incorporated by reference into this Prospectus for the purposes of securities legislation as of the date of the Prospectus Supplement and only for the purposes of the distribution of the Securities to which the Prospectus Supplement pertains.

This Prospectus constitutes a public offering of the Securities only in those jurisdictions where they may be lawfully offered for sale and only by persons permitted to sell the Securities in such jurisdictions. We or the Selling Securityholders may offer and sell Securities to, or through, underwriters or dealers purchasing as principals, directly to one or more other purchasers, or through agents pursuant to applicable statutory exemptions. A Prospectus Supplement relating to each Offering of Securities will set forth the names of any underwriters, dealers or agents engaged by the Company or Selling Securityholder(s) in connection with the Offering and sale of the Securities and will set forth the terms of the Offering, the method of distribution of the Securities, including, to the extent applicable, the proceeds to us or the Selling Securityholder(s) and any fees, discounts, concessions or other compensation payable to the underwriters, dealers or agents, and any other material terms of the plan of distribution.

The Company or any Selling Securityholder may sell the Securities to or through underwriters or dealers purchasing as principals and may also sell the Securities to one or more purchasers directly, through applicable statutory exemptions, or through agents designated by the Company or any Selling Securityholder from time to time. The Prospectus Supplement relating to a particular Offering of Securities will identify each underwriter, dealer or agent engaged in connection with the Offering and sale of the Securities, as well as the method of distribution and the terms of the Offering of such Securities, including the net proceeds to the Company or any Selling Securityholder and, to the extent applicable, any fees, discounts, concessions or any other compensation payable to underwriters, dealers or agents and any other material terms. See "*Plan of Distribution*".

This Prospectus may qualify an "at-the-market distribution" as defined in National Instrument 44-102 ‎‎– Shelf Distributions.

In connection with any Offering of Securities, other than an "at-the-market distribution", subject to applicable laws, unless otherwise specified in a Prospectus Supplement, the underwriters, dealers or agents, as the case may be, may over-allot or effect transactions which stabilize, maintain or otherwise affect the market price of the Securities at a level other than those which otherwise might prevail on the open market. Such transactions may be commenced, interrupted or discontinued at any time. A purchaser who acquires Securities forming part of the underwriters', dealers' or agents' over-allocation position acquires those securities under this Prospectus and the Prospectus Supplement relating to the particular Offering of Securities, regardless of whether the over-allocation position is ultimately filled through the exercise of the over-allotment option or secondary market purchases. See "*Plan of Distribution*".

The outstanding Common Shares are listed and posted for trading on the Canadian Securities Exchange (the "**CSE**") under the symbol "ARS", trade on the Frankfurt Stock Exchange under the symbol "N8I1" and trade on the OTCQX Venture Market (the "**OTCQX**") in the United States under the symbol "ARSMF". The closing price of the Common Shares on the CSE and OTCQX on June 4, 2026 the last trading day of the Common Shares prior to the date of this Prospectus, was $0.28 and US$0.202, respectively. We have applied to list the Common Shares on The Nasdaq Capital Market under the symbol "USAM."

**Unless otherwise specified in the applicable Prospectus Supplement, the Warrants, the Subscription ‎Receipts, the Share Purchase Contracts and the Units (other than the Common Shares underlying the Units) will not be listed on any securities exchange. There is no market through which the Securities, ‎other than the Common Shares, may be sold and purchasers may not be able to resell these Securities purchased under ‎this Prospectus. This may affect the pricing of these Securities in the secondary market, the transparency and ‎availability of trading prices, the liquidity of these Securities, and the extent of issuer regulation (see "*Risk Factors*").**

**Prospective investors should be aware that the acquisition of the Securities may have tax consequences both in the United States and Canada that may not be fully described in this Prospectus or in any Prospectus Supplement. Such consequences for investors who are resident in, or citizens of, the United States may not be described fully herein or in any applicable Prospectus Supplement. Prospective investors should carefully review the tax discussion, if any, contained in the applicable Prospectus Supplement with respect to a particular Offering and consult their own tax advisors with respect to their own particular circumstances.**

**The enforcement by investors of civil liabilities under United States federal securities laws may be affected adversely by the fact that the Company is organized under the laws of British Columbia, that some or all of the Company's officers and directors are residents of Canada, that some or all of the underwriters or the experts named in this Prospectus are residents of Canada, and that all or a substantial portion of the assets of the Company and said persons are located outside the United States.**

**Investing in the Securities involves significant risks. Prospective investors should carefully consider the risk factors described under the heading "*Risk Factors*" in this Prospectus, in the applicable Prospectus Supplement with respect to a particular Offering and in the documents incorporated by reference herein and therein as well as the information under the heading "*Caution Regarding Forward-Looking Statements*".**

**DEPOSITARY SHARES WILL NOT BE OFFERED OR SOLD IN CANADA.**

**No underwriter, dealer or agent has been involved in the preparation of this Prospectus or performed any review of the content of this Prospectus.**

The Company is a foreign private issuer under United States securities laws and is permitted under the multijurisdictional disclosure system adopted by the United States and Canada to prepare this Prospectus in accordance with Canadian disclosure requirements. Prospective investors should be aware that such requirements are different from those of the United States. The Company has prepared its financial statements, included or incorporated herein by reference, in accordance with International Financial Reporting Standards ("**IFRS**") as issued by the International Accounting Standards Board ("**IASB**") and its consolidated financial statements are subject to Canadian generally accepted auditing standards and auditor independence standards. As a result, they may not be comparable to financial statements of United States companies.

**NEITHER THE SEC OR ANY CANADIAN SECURITIES REGULATOR, NOR ANY STATE SECURITIES REGULATOR, HAS APPROVED OR DISAPPROVED THE SECURITIES OFFERED HEREBY OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS OR DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENCE.**

Each of Mr. Changxian Li and Mr. Bob Li, a director of the Company, resides outside of Canada, and has appointed MLT Aikins LLP, Suite 2600 - 1066 West Hastings Street, Vancouver, BC, V6E 3X1, Canada, as agent for service of process in Canada.

**Purchasers are advised that it may not be possible for investors to enforce ‎judgments obtained in Canada against any person or company that is incorporated, continued or otherwise organized ‎under the laws of a foreign jurisdiction or resides outside of Canada, even if the party has appointed an agent for service ‎of process. Additionally, an investor's ability to enforce civil liabilities under the United States federal securities laws may be affected adversely because the Company is incorporated in Canada and some of the Company's assets are located outside of the United States. See "*Risk Factors – Enforcement of Foreign Judgments*".**

The Company's head office is located at 1001, 409 Granville St., Vancouver, British Columbia, Canada, V6C 1T2. The Company's registered and records office is located at 800 – 885 West Georgia Street, Vancouver, British Columbia, V6C 3H1.

Unless otherwise indicated, all references to "$" or "C$" in this Prospectus refer to Canadian dollars and all references to "US$" in this Prospectus refer to United States dollars. See "*Currency Presentation and Exchange Rate Information*". On June 4, 2026, the daily average exchange rate for Canadian dollars, as quoted by the Bank of Canada was US$1.00 = C$1.3896, or C$1.00 = US$0.7196.

**Table of Contents**

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| | |
|:---|:---|
|  | **page** |
| [About this Prospectus](#a_001) | 1 |
| [CAUTIONARY NOTE to United States Investors Regarding Mineral Reporting Standards](#a_002) | 2 |
| [CAUTION REGARDING FORWARD-LOOKING STATEMENTS](#a_003) | 3 |
| [CURRENCY PRESENTATION AND EXCHANGE RATE INFORMATION](#a_004) | 7 |
| [WHERE TO FIND ADDITIONAL INFORMATION](#a_005) | 7 |
| [TECHNICAL INFORMATION](#a_006) | 8 |
| [MARKETING MATERIALS](#a_007) | 8 |
| [market and industry data](#a_008) | 9 |
| [DOCUMENTS INCORPORATED BY REFERENCE](#a_009) | 10 |
| [DOCUMENTS FILED AS PART OF THE U.S. REGISTRATION STATEMENT](#a_010) | 12 |
| [BUSINESS OF THE COMPANY](#a_011) | 13 |
| [RISK FACTORS](#a_012) | 14 |
| [USE OF PROCEEDS](#a_013) | 17 |
| [CONSOLIDATED CAPITALIZATION](#a_014) | 17 |
| [PLAN OF DISTRIBUTION](#a_015) | 18 |
| [SELLING SECURITYHOLDERS](#a_016) | 19 |
| [PRIOR SALES](#a_017) | 19 |
| [PRICE RANGE AND TRADING VOLUME](#a_018) | 19 |
| [DIVIDEND POLICY](#a_019) | 19 |
| [DESCRIPTION OF COMMON SHARES](#a_020) | 19 |
| [DESCRIPTION OF WARRANTS](#a_021) | 20 |
| [DESCRIPTION OF SUBSCRIPTION RECEIPTS](#a_022) | 21 |
| [DESCRIPTION OF SHARE PURCHASE CONTRACTS](#a_023) | 22 |
| [DESCRIPTION OF UNITS](#a_024) | 23 |
| [DESCRIPTION OF COMMON SHARES REPRESENTED BY DEPOSITARY SHARES](#d_001) | 23 |
| [DENOMINATIONS, REGISTRATION AND TRANSFER](#d_002) | 24 |
| [CERTAIN FEDERAL INCOME TAX CONSIDERATIONS](#a_025) | 25 |
| [LEGAL PROCEEDINGS AND REGULATORY ACTIONS](#a_026) | 25 |
| [TRANSFER AGENT AND REGISTRAR](#a_027) | 25 |
| [INTEREST OF EXPERTS](#a_028) | 25 |
| [promoters](#a_029) | 25 |
| [PURCHASER'S STATUTORY RIGHTS](#a_030) | 25 |
| [PURCHASER'S CONTRACTUAL RIGHTS](#a_031) | 26 |
| [CERTIFICATE OF ARES STRATEGIC MINING INC.](#a_032) | 26 |

---

i

**About this Prospectus**

In this Prospectus and any Prospectus Supplement, unless the context otherwise requires, the terms "we", "our", "us" and the "Company" refer to Ares Strategic Mining Inc. and our direct and indirect subsidiaries.

This Prospectus is a base shelf prospectus that the Company has filed with the securities commissions in the provinces of Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island and Saskatchewan in order to qualify the Offering of the Securities described in this Prospectus in accordance with National Instrument 44-102–Shelf Distributions ("**NI 44-102**").

Under this shelf registration process, Ares may sell any combination of the Securities described in this Prospectus in one or more Offerings up to an aggregate Offering price of US$100 million. This Prospectus provides you with a general description of the Securities that the Company and the Selling Securityholders may offer. Each time the Company and/or the Selling Securityholders sell Securities under this Prospectus, they will provide a Prospectus Supplement that will contain specific information about the terms of that specific Offering. The specific terms of the Securities in respect of which this Prospectus is being delivered will be set forth in the Prospectus Supplement. Each shelf prospectus supplement will be incorporated by reference into this Prospectus for the purposes of securities legislation as of the date of the Prospectus Supplement and only for the purposes of the distribution of the securities to which the shelf Prospectus Supplement pertains.

**You should rely only on the information contained in or incorporated by reference in this Prospectus and any applicable Prospectus Supplement in connection with an investment in the Securities. We have not authorized anyone to provide you with different information. We are not making an offer of the Securities in any jurisdiction where such offer is not permitted. You should assume that the information appearing in this Prospectus or any Prospectus Supplement is accurate only as of the date on the front of those documents and that information contained in any document incorporated by reference herein or therein is accurate only as of the date of that document unless specified otherwise. Our business, financial condition, financial performance and prospects may have changed since those dates.**

**CAUTIONARY NOTE to United States Investors<br> Regarding Mineral Reporting Standards**

The disclosure in this Prospectus, including the documents incorporated by reference herein, has been prepared in accordance with the requirements of Canadian securities laws. Disclosure, including scientific or technical information, has been made in accordance with Canadian National Instrument 43-101 – *Standards of Disclosure for Mineral Projects* ("**NI 43-101**"). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects.

Mining disclosure under U.S. securities law are governed by sub-part 1300 of Regulation S-K of the United States Securities Act of 1933, as amended ("**Regulation S-K 1300**"). U.S. investors are cautioned that while Regulation S-K 1300 rules are "substantially similar" to NI 43-101, there are differences between Regulation S-K 1300 and NI 43-101. As such, there is no assurance any mineral resources that the Company may report under NI 43-101 would be the same had the Company prepared the resource estimates under the standards adopted by the SEC. Accordingly, information concerning mineral deposits set forth in this Prospectus, including the documents incorporated by reference herein, may not be comparable with information made public by companies that report in accordance with U.S. securities laws and investors are cautioned not to assume that any measures reported by the Company are or will ever be converted into mineral reserves or economically or legally mineable.

**CAUTION REGARDING FORWARD-LOOKING STATEMENTS**

This Prospectus, including the documents incorporated by reference herein, contains "forward-looking information" and "forward-looking statements" (collectively, "**forward-looking statements**"). The forward-looking statements in this Prospectus are provided as of the date of this Prospectus and forward-looking statements incorporated by reference are made as of the date of those documents. The Company does not intend to and does not assume any obligation to update forward-looking statements, except as required by applicable law. For this reason and the reasons set forth below, investors should not place undue reliance on forward-looking statements.

Forward-looking statements contained herein are based on current expectations, estimates, forecasts, projections, beliefs and assumptions made by management of the Company about the industry in which it operates. Such statements include, but are not limited to, statements about the Company's plans, strategies and prospects. In some cases, these forward-looking statements can be identified by words or phrases such as "may", "might", "will", "expect", "anticipate", "estimate", "intend", "plan", "indicate", "seek", "believe", "predict" or "likely", or the negative of these terms, or other similar expressions intended to identify forward-looking statements. These statements are not guarantees of future performance and involve assumptions and risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed, implied or forecasted in such forward-looking statements. The Company does not intend, and disclaims any obligation, to update any forward-looking statements after it files this Prospectus, whether as a result of new information, future events or otherwise, except as required by the securities laws. These forward looking statements are made as of the date of this Prospectus.

The Company has based these forward-looking statements on its current expectations and projections about future events and financial trends that it believes might affect its financial condition, results of operations, business strategy and financial needs. These forward-looking statements may include, among other things, statements relating to:

● the completion, size, pricing, expenses and timing of the closing of any Offerings;

● the Company's discretion in the use of net proceeds from Offerings;

● the Company's expectations regarding its operations and the financial results and/or costs from such operations;

● industry trends and overall market growth;

● the Company's growth and exploration strategies;

● the future price of fluorspar and other minerals;

● the exploration, development of and production from the Company's mineral properties;

● the Company's planned exploration and development activities, and costs associated therewith;

● the estimation of fluorspar and other mineral resources;

● establishment and realization of mineral resource estimates;

● success of operations;

● costs and timing of future exploration, development and operations;

● results of future exploration programs;

● capital and operating cost estimates;

● requirements for additional capital and expected use of proceeds;

● statements relating to the economic viability of the Company's mineral properties;

● approvals, consents and permits under applicable legislation;

● the Company's relationship with community, Native American tribes, government and other third party stakeholders;

● expectations relating to director and executive officer compensation levels;

● the Company's intention to grow the business and its operations;

● expectations with respect to future costs;

● environmental and operational risks;

● unanticipated contamination or reclamation expenses;

● the Company's competitive position and the regulatory environment in which the Company operates;

● the Company's expectation that its cash on hand, together with fund-raising activities, will be sufficient to cover its expenses over the next 12 months;

● the Company's expected business objectives for the next 12 months;

● the Company's ability to obtain additional funds through the sale of equity or debt commitments; and

● the effect of any pandemic, changes to laws and regulations, wars, tariffs and other global or regional events on the ability of the Company to carry on business.

Forward-looking statements are based on certain assumptions and analyses made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, and are subject to risks and uncertainties. In making the forward-looking statements included in this Prospectus, the Company has made various material assumptions, including, but not limited to:

● the results of the Company's proposed exploration, activities on its mineral properties including the Spor Mountain (as defined herein) will be consistent with current expectations;

● the Company's assessment and interpretation of exploration results at its mineral properties are accurate in all material respects;

● the sufficiency of the Company's current working capital and credit facilities to carry out the planned development and ramp-up of production at its mineral properties on a timely basis;

● the price for fluorspar and other minerals will not fall significantly below current levels;

● the Company will be able to secure additional financing to continue exploration, development and mining on its mineral properties and meet future obligations as required from time to time;

● the Company will be able to obtain regulatory approvals and permits in a timely manner and on terms consistent with current expectations;

● the Company will maintain good working relationships with Native American tribes and other third party stakeholders;

● there will be no significant adverse changes in regulations in the fluorspar industry;

● the Company will be able to procure drilling and other mining equipment, energy, supplies and contractors in a timely and cost efficient manner to meet the Company's needs from time to time;

● the Company will be able to successfully integrate any acquisitions into its current operations in a timely and cost efficient manner and to generate the operational synergies and results from its exploration activities on a basis consistent with current expectations;

● the Company's capital and operating costs will not increase significantly from current or anticipated levels;

● key personnel will continue their employment with the Company and the Company will be able to obtain and retain additional qualified personnel, as needed, in a timely and cost efficient manner;

● there will be no significant adverse changes in currency exchange rates;

● there will be no significant changes in the ability of the Company to comply with environmental, safety and other regulatory requirements;

● there will be no significant adverse changes and/or restrictions on the Company's ability to carry out activities at its mineral properties as currently planned due a pandemic or otherwise; and

● the absence of any material adverse effects arising as a result of political instability, tariffs and trade disputes, war (including the ongoing war in Ukraine or conflict in Middle East), terrorism, sabotage, vandalism, theft, labor disputes, natural disasters, adverse weather conditions, equipment failures or adverse changes in government legislation with respect to the Company's mineral properties and mining operations.

Although the Company believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect, and the Company cannot assure that actual results will be consistent with these forward-looking statements. Given these risks, uncertainties and assumptions, prospective purchasers of Securities should not place undue reliance on these forward-looking statements. Whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors, including those listed under "*Risk Factors*", which include:

● the Company's history of losses and uncertainty regarding future profitability;

● the existence of mineral resources and mineralized material on the Company's mineral properties;

● fluctuations in the market price of fluorspar and changes to the regulatory environment in which the Company operates;

● foreign currency fluctuations;

● high inflation and rising interest rates;

● the involvement by some of the Company's directors and officers with other natural resource companies;

● the uncertain nature of estimating mineral resources and reserves;

● uncertainty surrounding the Company's ability to successfully develop and operate its mineral properties;

● exploration, development and mining risks, including risks related to infrastructure, accidents and equipment breakdowns;

● risks related to the Company's ability to acquire new projects and to successfully integrate them into the Company's existing operations;

● title defects or disputes related to the Company's mineral properties;

● the Company's ability to maintain good working relationships with Native American tribes and other third party stakeholders;

● the Company's ability to obtain and maintain all necessary permits and other approvals;

● risks related to equipment shortages, access restrictions and inadequate infrastructure;

● the Company's quarterly operating results may fluctuate from period to period;

● a change in the Company's effective tax rate can have a significant adverse impact on its business;

● the Company may be unable to generate sufficient cash flows or have access to external financing necessary to fund planned operations and make adequate capital investments in its exploration activities;

● the Company may incur substantial additional indebtedness in the future;

● the Company is subject to risks from supply chain issues;

● if the Company is unable to attract and retain key personnel, it may not be able to compete effectively in the mineral production market;

● compliance with environmental laws and regulations can be expensive;

● the Company has limited insurance coverage;

● the Company will be reliant on information technology systems and may be subject to damaging cyberattacks;

● the Company does not anticipate paying cash dividends;

● the Company may become subject to litigation;

● discretion of the Company on the use of the net proceeds of the Offerings;

● no guarantee on how the Company will use its available funds;

● the market price for Common Shares may be volatile and subject to wide fluctuations in response to numerous factors, many of which are beyond our control;

● the Company will continue to sell securities for cash to fund operations, capital expansion, mergers and acquisitions that will dilute the current shareholders; and

● future dilution as a result of financings.

These factors should not be considered exhaustive. The purpose of forward-looking information is to provide the reader with a description of management's current expectations and plans that allows investors and others to get a better understanding of the Company's operating environment, business operations and financial performance and condition, and such forward-looking information may not be appropriate for any other purpose. If any of these risks or uncertainties materialize, or if assumptions underlying the forward-looking statements prove incorrect, actual results might vary materially from those anticipated in those forward-looking statements.

Although the Company believes that the expectations reflected in such forward-looking information are reasonable, it can give no assurance that such expectations will prove to have been correct. Investors are cautioned not to put undue reliance on forward-looking information. Information contained in forward-looking statements in this Prospectus is provided as of the date of this Prospectus, and we disclaim any obligation to update any forward-looking statements, whether as a result of new information or future events or results, except to the extent required by applicable securities laws. Accordingly, potential investors should not place undue reliance on forward-looking statements or the information contained in those statements.

Prospective purchasers of Securities should carefully consider the risk factors described in a document incorporated by reference in this Prospectus (including subsequently filed documents incorporated by reference) and those described in a Prospectus Supplement relating to a specific Offering of Securities. Discussions of certain risks affecting the Company in connection with its business are provided in the Company's disclosure documents filed with the various securities regulatory authorities which are incorporated by reference in this Prospectus.

 ****

***All of the forward-looking statements contained in this Prospectus are expressly qualified by the foregoing cautionary statements. Investors should read this entire Prospectus and consult their own professional advisors to assess the income tax, legal, risk factors and other aspects of their investment.***

**CURRENCY PRESENTATION AND EXCHANGE RATE INFORMATION**

In this Prospectus, unless stated otherwise or the context otherwise requires, all references to "$", "C$", "dollars" or "CAD" refer to Canadian dollars, all references to "US$" or "USD" refer to United States dollars.

The following table sets forth: (i) the rates of exchange for U.S. dollars expressed in Canadian dollars in effect at the end of the periods indicated; (ii) the average exchange rates in effect during such periods; (iii) the high rate of exchange in effect during such periods; and (iv) the low rate of exchange in effect during such periods, such rates, in each case, based on the noon or daily average exchange rate, as applicable, for conversion of one U.S. dollar to Canadian dollars as reported by the Bank of Canada.

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended September 30** | **Year Ended September 30** | **Year Ended September 30** |
|  | **2025 (C$)<sup>(1)</sup>** | **2024 (C$)<sup>(1)</sup>** | **2023 (C$)<sup>(1)</sup>** |
| Closing | 1.3921 | 1.3499 | 1.3520 |
| Average | 1.3986 | 1.3609 | 1.3486 |
| High | 1.4603 | 1.3875 | 1.3856 |
| Low | 1.3491 | 1.3205 | 1.3128 |

---

**Note:**

(1) Exchange
 rate based on the daily average rate of exchange as reported by the Bank of Canada.

On June 4, 2026, the daily average rate of exchange as reported by the Bank of Canada was US$1.00 = C$1.3896.

**WHERE TO FIND ADDITIONAL INFORMATION**

This Prospectus is part of a registration statement on Form F-10 (the "**U.S. Registration Statement**") that the Company has filed with the SEC under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**"), relating to the Securities. Under the U.S. Registration Statement, the Company and the Selling Securityholders may, from time to time, sell Securities described in this Prospectus in one or more Offerings up to an aggregate Offering amount of US$100,000,000. This Prospectus, which forms a part of the U.S. Registration Statement, provides you with a general description of the Securities that the Company and the Selling Securityholders may offer and does not contain all of the information contained in the U.S. Registration Statement, certain items of which are contained in the exhibits to the U.S. Registration Statement, as permitted by the rules and regulations of the SEC. See "*Documents Filed as Part of the U.S. Registration Statement*." Statements included or incorporated by reference in this Prospectus about the contents of any contract, agreement or other documents referred to are not necessarily complete, and in each instance, you should refer to the exhibits for a complete description of the matter involved. Each such statement is qualified in its entirety by such reference. Each time the Company or a Selling Securityholder sells Securities under U.S. Registration Statement, the Company or the Selling Securityholder, as applicable, will provide a Prospectus Supplement that will contain specific information about the terms of that Offering. The Prospectus Supplement may also add, update or change information contained in this Prospectus. Before you invest, you should read both this Prospectus and any applicable Prospectus Supplement together with additional information described under the heading "*Documents Incorporated by Reference*." This Prospectus does not contain all of the information set forth in the U.S. Registration Statement, certain parts of which are omitted in accordance with the rules and regulations of the SEC, or the schedules or exhibits that are part of the U.S. Registration Statement. Investors in the United States should refer to the U.S. Registration Statement and the exhibits thereto for further information with respect to the Company and the Securities.

**TECHNICAL INFORMATION**

If, after the date of this Prospectus, the Company is required by Section 4.2 of National Instrument 43-101 – *Standards of Disclosure for Mineral Projects* ("**NI 43-101**") to file a technical report to support scientific or technical information that relates to a mineral project on a property that is material to the Company, the Company will file such technical report in accordance with Section 4.2(5)(a)(i) of NI 43-101 as if the words "preliminary short form prospectus" refer to a "shelf prospectus supplement".

Certain scientific and technical information relating to the Company's mineral properties contained in this Prospectus and the documents incorporated by reference herein, is derived from, and in some instances is an extract from the Technical Report co-authored by Eugene Puritch, P.Eng., FEC, CET, Richard H. Sutcliffe, Ph.D, P.Geo., and Fred H. Brown, P.Geo., of P&E Mining Consultants Inc., David J. Salari, P.Eng., of D.E.N.M. Engineering Ltd., and Alan Czarnowksy, Independent Consultant, each of whom is a "qualified person" for the purposes of NI 43-101. The Technical Report has been filed with the Canadian securities regulatory authorities in the provinces of Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island and Saskatchewan and is available electronically on the SEDAR+ website located at www.sedarplus.ca under the Company's SEDAR+ profile. Reference should be made to the full text of the Technical Report for a complete description of the assumptions, qualifications, references, reliances and procedures associated with the information in the Technical Report.

Certain scientific and technical disclosure contained in this Prospectus, and the documents incorporated by reference, has been reviewed and approved by James Walker, P. Eng., P. Eng., President, Chief Executive Officer and a director of the Company, and a "qualified person" (as defined in NI 43-101).

**MARKETING MATERIALS**

Any template version of marketing materials (as such terms are defined in National Instrument 41-101 – *General Prospectus Requirements*) that are utilized in connection with the distribution of Securities will be filed under the Company's profile on SEDAR+ at www.sedarplus.ca. In the event that such marketing materials are filed after the date of the applicable Prospectus Supplement for the Offering and before termination of the distribution of such Securities, such filed versions of the marketing materials will be deemed to be incorporated by reference into the applicable Prospectus Supplement for the purposes of the distribution of the Securities to which the Prospectus Supplement pertains.

**market and industry data**

Unless otherwise indicated, information contained in this Prospectus concerning the Company's industry and the markets in which it operates, including general expectations and market position, market opportunities and market share, is based on information from independent industry organizations, other third-party sources (including industry publications, surveys and forecasts) and management studies and estimates.

Unless otherwise indicated, the Company's estimates are derived from publicly available information released by independent industry analysts and third-party sources as well as data from the Company's internal research and knowledge of the market for fluorspar and other minerals, and the economy, and include assumptions made by the Company which management believes to be reasonable based on their knowledge of the Company's industry and markets. The Company's internal research and assumptions have not been verified by any independent source, and it has not independently verified any third-party information. While the Company believes the market position, market opportunity and market share information included in this Prospectus is generally reliable, such information is inherently imprecise. In addition, projections, assumptions and estimates of the Company's future performance and the future performance of the industry and markets in which it operates are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described under the heading "*Caution Regarding Forward-Looking Statements*" and "*Risk Factors*". For the avoidance of doubt, nothing stated in this paragraph operates to relieve any party from liability for any misrepresentation contained in this Prospectus under applicable Canadian and U.S. securities laws.

**DOCUMENTS INCORPORATED BY REFERENCE**

Information has been incorporated by reference in this Prospectus from documents filed with securities commissions or similar authorities in the provinces and territories of Canada (collectively, the "**Commissions**"). Copies of the documents incorporated herein by reference may be obtained on request without charge from the Corporate Secretary of the Company at 409 Granville St. Suite 1001, Vancouver, British Columbia V6C 1T2, telephone (604) 345-1576. These documents are also available through the internet on SEDAR+, which can be accessed online at www.sedarplus.ca. The following documents of the Company, filed by the Company with the Commissions, are specifically incorporated by reference into, and form an integral part of, this Prospectus:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 annual information form of the Company dated as of June 5, 2026 for the year ended
 September 30, 2025 (the "**AIF** "), filed on SEDAR+ on June 5,
 2026;

(b) the
 audited financial statements of the Company as at and for the years ended September 30, 2025
 and 2024, together with the notes thereto and the auditor's report thereon (the "**Annual Financial Statements** "),‎ filed on SEDAR+ on January 28, 2026;

(c) the
 management's discussion and analysis of the Company for the year ended September 30,
 2025, filed on SEDAR+ on January 28, 2026;

(d) the
 unaudited interim consolidated financial statements of the Company for the six months ended
 March 31, 2026 and the notes thereto, filed on SEDAR+ on June 1, 2026;

(e) the
 management's discussion and analysis of the Company for the six months ended March
 31, 2026, filed on SEDAR+ on June 1, 2026;

(f) the
 material change report dated May 22, 2026 of the Company with respect to the appointment
 of Lorenzo Esteva as a director of the Company and the resignations of Paul Sarjeant and
 Raul Sanabria as directors of the Company, filed on SEDAR+ on May 22, 2026;

(g) the
 material change report dated February 24, 2026 of the Company with respect to the issuance
 of 381,854 Common Shares of the Company at a deemed price of $0.485 per Common Share to settle
 $185,199.23 of outstanding indebtedness owing to various consultants and service providers
 for past services rendered and in accrued but unpaid management fees to the Company, filed
 on SEDAR+ on February 24, 2026;

(h) the
material change report dated February 10, 2026 of the Company with respect to the closing of a non-brokered private placement offering
of units by issuing 16,666,666 units of the Company at a price of $0.60 per unit, for aggregate gross proceeds of $9,999,999.60 pursuant
to the listed issuer financing exemption under Part 5A of National Instrument 45-106 – *Prospectus Exemptions* (the "**LIFE Exemption** "), filed on SEDAR+ on February 10, 2026;

(i) the
 material change report dated November 10, 2025 of the Company with respect to the issuance
 of 150,933 Common Shares at a deemed price of $0.43 per Common Share settling $64,901.13
 in debt owing to various arm's length and non-arm's length parties in connection
 with past services rendered and in accrued but unpaid management fees to the Company, filed
 on SEDAR+ on November 10, 2025;

(j) the
 material change report dated October 23, 2025 of the Company with respect to the closing
 of the second and final tranche of its previously announced offering of units by issuing
 12,221,889 units at a price of $0.45 per unit, for aggregate gross proceeds of $5,499,850.05,
 filed on SEDAR+ on October 23, 2025;

(k) the
 material change report dated October 23, 2025 of the Company with respect to: (a) on October
 16, 2025, the closing of the first tranche of its previously announced offering of units
 by issuing 11,111,112 units at a price of $0.45 per unit, for aggregate gross proceeds of
 $5,000,000.40 pursuant to the LIFE Exemption (the "**Initial LIFE Offering** ");
 and (b) on October 17, 2025, the filing of an amended and restated offering document (the
 "**Amended Offering Document**") in connection with the Initial LIFE Offering
 (the "**Amended LIFE Offering**") to increase the offering by up to 1,111,110
 units, for a total offering under the Amended Offering Document of up to 12,222,220 units
 at $0.45 per unit for gross proceeds to be raised pursuant to the Amended LIFE Offering of
 up to $5,499,999 filed on SEDAR+ on October 23, 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) the
 material change report dated October 15, 2025 of the Company with respect to a proposed offering
 of up to 22,222,222 units at a price of $0.45 per unit for gross proceeds of up to $10,000,000
 pursuant to the LIFE Exemption, filed on SEDAR+ on October 15, 2025; and

(m) the
 management information circular of the Company dated August 18, 2025 for the annual general
 meeting to held on October 1, 2025, filed on SEDAR+ on August 29, 2025.

Any document of the types referred to in the preceding paragraph (excluding press releases and confidential material change reports) or of any other type required to be incorporated by reference into a short form prospectus pursuant to National Instrument 44-101 - *Short Form Prospectus Distributions* that are filed by us with a Commission after the date of this Prospectus and prior to the termination of the Offering under any Prospectus Supplement shall be deemed to be incorporated by reference in this Prospectus.

In addition, to the extent that any document or information incorporated by reference into this Prospectus is included in any report on Form 6-K, Form 40-F, Form 20-F, Form 10-K, Form 10-Q or Form 8-K (or any respective successor form) that is filed with or furnished by the Company to the SEC after the date of this Prospectus, that document or information shall be deemed to be incorporated by reference as an exhibit to the U.S. Registration Statement of which this Prospectus forms a part. The Company may also incorporate other information filed with or furnished to the SEC under the United States Securities Exchange Act of 1934, as amended (the "**Exchange Act**"), provided that information included in any such report on Form 6-K or Form 8-K shall be so deemed to be incorporated by reference only if and to the extent expressly provided in such Form 6-K or Form 8-K.

Copies of the documents incorporated by reference herein will be available on SEDAR+ electronically on the Company's SEDAR+ profile, which can be accessed at www.sedarplus.ca., and from the Company's EDGAR profile, which can be accessed on the SEC's website at www.sec.gov. The Company's filings through SEDAR+ and EDGAR are not incorporated by reference in the Prospectus except as specifically set out herein.

**Any statement contained in this Prospectus or in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded for the purposes of this Prospectus to the extent that a statement contained herein or in any other subsequently filed document which also is or is deemed to be incorporated by reference herein modifies or supersedes such statement. The modifying or superseding statement need not state that it has modified or superseded a prior statement or include any other information set forth in the document it modifies or supersedes. The making of a modifying or superseding statement shall not be deemed an admission for any purposes that the modified or superseded statement, when made, constituted a misrepresentation, an untrue statement of a material fact or an omission to state a material fact that is required to be stated or that is necessary to make a statement not misleading in light of the circumstances in which it was made. Any statement so modified or superseded shall not constitute a part of this Prospectus, except as so modified or superseded.**

A Prospectus Supplement containing the specific terms of an Offering will be delivered to purchasers of such Securities together with this Prospectus and will be deemed to be incorporated by reference into this Prospectus as of the date of such Prospectus Supplement, but only for the purposes of the Offering covered by that Prospectus Supplement.

Any template version of any "marketing materials" (as such term is defined in NI 44-101) filed after the date of a Prospectus Supplement and before the termination of the distribution of the Securities offered pursuant to such Prospectus Supplement (together with this Prospectus) is deemed to be incorporated by reference in such Prospectus Supplement.

Reference to the Company's website in any documents that are incorporated by reference into this Prospectus do not incorporate by reference the information on such website into this Prospectus, and the Company disclaims any such incorporation by reference.

**DOCUMENTS FILED AS PART OF THE U.S. REGISTRATION STATEMENT**

The following documents have been, or will be, filed with the SEC as part of the U.S. Registration Statement of which this Prospectus is a part insofar as required by the SEC's Form F-10:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. the documents listed under "*Documents Incorporated by Reference*" in this Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. the consent of each expert listed in the exhibit index of the Registration Statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. the consent of Manning Elliott LLP, the Company's independent auditor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. the powers of attorney from certain of the Company's directors and officers.

A copy of the form of any applicable warrant indenture or subscription receipt agreement will be filed by post-effective amendment or by incorporation by reference to documents filed or furnished with the SEC under the Exchange Act.

**BUSINESS OF THE COMPANY**

**Name, Address and Incorporation**

Ares Strategic Mining Inc. (the "**Company**" or "**Ares**") was incorporated under the *Business Corporations Act* (Ontario) ("**OBCA**") on November 20, 2009 as "Northern Iron Corp.". On December 6, 2016, "Northern Iron Corp." changed its name to "Lithium Energy Products Inc.". On February 13, 2020, "Lithium Energy Products Inc." changed its name to "Ares Strategic Mining Inc.". On December 6, 2023, the Company continued out of the OBCA and into the *Business Corporations Act* (British Columbia) ("**BCBCA**").

The Company's head office is located at 409 Granville St. Suite 1001, Vancouver, British Columbia V6C 1T2 and its registered and records office is located at 800 – 885 West Georgia Street, Vancouver, British Columbia V6C 3H1.

**Intercorporate Relationships** 

The following chart illustrates the inter-corporate relationships among the Company and its subsidiaries as of the date of this Prospectus. All subsidiaries are 100% owned, directly or indirectly, except as otherwise noted.

![](ea029307701_img2.jpg)

**Overview of the Company and Principal Operations**

The Company is a Utah-based fluorspar mining and processing company. The Company is transitioning from mine development into initial mining/stockpiling and processing plant commissioning and has not yet commenced sustained commercial processing or sales of product. The Company's sole material mineral property is its "Lost Sheep" property (the "**Spor Mountain Property**", the "**Spor Mountain Project**", or the "**Property**") located approximately 72 kilometres northwest of Delta, Utah.

As of the date of this Prospectus, the Company considers the Spor Mountain Property to be its sole material mineral property for the purposes of National Instrument 43-101 – *Standards for Disclosure for Mineral Projects* ("**NI 43-101**"), which is the subject of a NI 43-101 technical report with an effective date of September 17, 2021, entitled "Technical Report on the Lost Sheep Fluorspar Property, Juab County, Utah, U.S.A." co-authored by Eugene Puritch, P.Eng., FEC, CET, Richard H. Sutcliffe, Ph.D, P.Geo., and Fred H. Brown, P.Geo., of P&E Mining Consultants Inc., David J. Salari, P.Eng., of D.E.N.M. Engineering Ltd., and Alan Czarnowksy, Independent Consultant and filed on the Company's profile on SEDAR+ at www.sedarplus.ca on September 28, 2021 (the "**Technical Report**"). The Company also holds a 100% interest in five properties located in Ontario, Canada, but does not consider any of these properties to be material.

For a more detailed description of the business of the Company, including with respect to the Company's material mineral properties, prospective investors should refer to the Company's AIF and other documents incorporated by reference into this Prospectus and available under the Company's profile on SEDAR+ at www.sedarplus.ca.

**Recent Developments**

See "*Recent Developments*" in the Company's AIF.

**RISK FACTORS**

An investment in the Company should be considered highly speculative and involves certain risks, including risks relating the Company's history of net losses; the need for and availability of capital and associated financing risks; the speculative nature of mineral exploration, development and production, and the risks inherent in the mining industry; title to the Company's properties; international market prices of fluorspar and other minerals; currency fluctuations; relations to Native American tribes and other third party groups; government regulation, authorities and approvals, including in relation to the fluorspar industry and environmental matters; changes to legislation; litigation and regulatory proceedings; competition; key personnel; global and local market conditions; insurance; related party transactions; reliance on third party contractors; and any additional risks incorporated by reference or described herein (including in the AIF and subsequently filed documents incorporated by reference) or in a particular Prospectus Supplement.

Prospective investors in a particular Offering of the securities should carefully consider, in addition to information contained in the Prospectus Supplement relating to that Offering and the information incorporated by reference herein for the purposes of that Offering, the risk factor listed below and the risks described in the Company's then-current AIF, as well as the Company's then-current annual management's discussion and analysis and interim management's discussion and analysis, if applicable, to the extent incorporated by reference herein for the purposes of that particular Offering of securities. See "*Documents Incorporated by Reference*".

There is no assurance that risk management steps taken will avoid future loss due to the occurrence of the risks described below (or incorporated by reference herein) or other unforeseen risks. If any of the risks described below or in any of the documents incorporated by reference herein actually occur, then the Company's business, financial condition and operating results could be adversely affected.

The risks and uncertainties described or incorporated by reference herein are not the only ones the Company faces. Additional risks and uncertainties, including those that the Company is unaware of or that are currently deemed immaterial, may also adversely affect the Company and its business. Investors should consult with their professional advisors to assess any investment in the Company.

 ****

***Risks related to an Offering of Securities***

 

*An Investment in the Securities is Speculative*

An investment in the Securities and the Company's prospects generally, are speculative due to the risky nature of its business and the present state of its development. Investors may lose their entire investment and should carefully consider the risk factors described below and under the heading "*Risk Factors*" in the AIF.

 

*Future Dilution*

In order to raise additional capital, the Company may in the future offer additional Common Shares or other securities convertible into or exchangeable for Common Shares at prices that may not be the same as the price per share paid by an investor in an Offering in a subsequent Prospectus Supplement. The Company may sell Common Shares or other securities in any other offering at a price per share that is less than the price per share paid by any investor in an Offering in a subsequent Prospectus Supplement, and investors purchasing other securities in the future could have rights superior to you. The price per share at which the Company sells additional Common Shares or securities convertible or exchangeable into Common Shares, in future transactions may be higher or lower than the price per share paid by any investor in an Offering under a subsequent Prospectus Supplement.

 

*Future Debt*

If, in the future, the Company issues debt securities that rank senior to the Common Shares, it is likely that such securities will be governed by an indenture or other instrument containing covenants restricting the Company's operating flexibility. Any convertible or exchangeable securities that the Company issues in the future may have rights, preferences and privileges more favorable than those of the Common Shares and may result in dilution to holders of Common Shares. The Company and, indirectly, its shareholders, will bear the cost of issuing and servicing such securities. Because the Company's decision to issue debt securities or equity securities in any future offering will depend on market conditions and other factors beyond the Company's control, the Company cannot predict or estimate the amount, timing or nature of future offerings. Thus, holders of Common Shares will bear the risk of future offerings reducing the market price of Common Shares and diluting the value of their stock holdings.

 

*No Assurance of Active or Liquid Market*

There is no public market for warrants or subscription receipts of the Company and, unless otherwise specified in the applicable Prospectus Supplement, the Company does not intend to apply for listing of these securities on any securities exchange. If these securities are traded after their initial issue, they may trade at a discount from their initial offering prices depending on the market for similar securities, prevailing interest rates and other factors, including general economic conditions and the Company's financial condition. There can be no assurance as to the liquidity of the trading market for any warrants or subscription receipts of the Company or that a trading market for these securities will develop.

 

*Market Price Volatility*

The market price of the Common Shares may be adversely affected by a variety of factors relating to the Company's business, including fluctuations in the Company's operating and financial results, the results of any public announcements made by the Company and the failure to meet analysts' expectations.

The market price of the Common Shares has experienced wide fluctuations which may not necessarily be related to the financial condition, operating performance, underlying asset values or prospects of the Company. Securities small-cap and mid-cap companies have experienced substantial volatility in the past, often based on factors unrelated to the financial performance or prospects of the companies involved. These factors include macroeconomic developments in North America and globally, changes to the regulatory environment in which the Company operates and market perceptions of the attractiveness of particular industries.

The price of the Common Shares is also likely to be significantly affected by short-term changes in fluorspar and other mineral prices. Other factors unrelated to the Company's performance that may have an effect on the price of the Common Shares include (among others) the following: (i) the extent of analytical coverage available to investors concerning the Company's business may be limited if investment banks with research capabilities do not follow the Common Shares; (ii) lessening in trading volume and general market interest in the Common Shares may affect an investor's ability to trade significant numbers of Common Shares; (iii) the size of the Company's public float may limit the ability of some institutions to invest in the Common Shares; and (iv) a substantial decline in the price of the Common Shares that persists for a significant period of time could cause the Common Shares to be delisted from the CSE or from any other exchange upon which the Common Shares may trade from time to time, further reducing market liquidity.

As a result of any of these factors, the market price of the Common Shares at any given point in time may not accurately reflect the Company's long-term value. Securities class action litigation often has been brought against companies following periods of volatility in the market price of their securities. The Company may in the future be the target of similar litigation. Securities litigation could result in substantial costs and damages and divert management's attention and resources.

 

*Broad Discretion over the Use of Proceeds*

The Company's management will have broad discretion with respect to the application of net proceeds received by the Company from the sale of securities under this Prospectus and may spend such proceeds in ways that do not improve the Company's results of operations or enhance the value of the Common Shares or the Company's other issued and outstanding securities from time to time. Any failure by management to apply these funds effectively could result in financial losses that could have a material adverse effect on the Company's business or cause the price of the Company's issued and outstanding securities to decline.

***Risks Related to the Business***

 

*Negative Operating Cash Flow and Going Concern*

None of the Company's properties have entered commercial production, and accordingly, the Company generates no positive cash flow. The Company is devoting significant resources to the exploration of its projects, however there can be no assurance that it will generate positive cash flow from operations in the future. The Company expects to continue to incur negative consolidated operating cash flow and losses until such time as the revenue generated from its operations exceeds costs incurred and will not generate consolidated revenues sufficient to fund the continuing operation of the Company's projects. The Company has had negative operating cash flows from operations to date and reported a comprehensive loss of $3,652,820 for the year ended September 30, 2025. See the Annual Financial Statements. To the extent that the Company has negative cash flow in future periods, the Company may need to deploy a portion of its cash reserves to fund such negative cash flow.

Additional financing may not be available when needed, or if available, the terms of such financing might not be favourable to the Company and might involve substantial dilution to existing shareholders of the Company. The Company's access to third-party financing depends on a number factors, including the price of fluorspar, the results of ongoing exploration and development, any economic or other analysis performed with respect the Company's properties, a significant event disrupting the Company's business or the fluorspar industry generally, or other factors may make it difficult or impossible to obtain financing through debt, equity, or other means on favourable terms, or at all. Failure to raise capital when needed would have a material adverse effect on the Company's business, financial condition, prospects and outlook.

 

*Foreign Private Issuer Status*

 

The Company is a "foreign private issuer" under applicable U.S. federal securities laws and, therefore, will not be required to comply with all of the periodic disclosure and current reporting requirements of the Exchange Act and related rules and regulations. As a result, the Company will not file the same reports that a U.S. domestic issuer would file with the SEC, although it will be required to file with or furnish to the SEC the continuous disclosure documents that the Company is required to file in Canada under Canadian securities laws. In addition, the Company's officers, directors and principal shareholders will be exempt from the reporting and "short swing" profit recovery provisions of Section 16 of the Exchange Act. Therefore, the Company's shareholders may not know on as timely a basis when its officers, directors and principal shareholders purchase or sell securities of the Company as the reporting periods under the corresponding Canadian insider reporting requirements are longer. In addition, as a foreign private issuer, the Company will be exempt from the proxy rules under the Exchange Act.

The Company may in the future lose its foreign private issuer status if a majority of its common shares are owned of record in the United States and the Company fails to meet the additional requirements necessary to avoid loss of foreign private issuer status. The regulatory and compliance costs to the Company under U.S. federal securities laws as a U.S. domestic issuer may be significantly more than the costs the Company will incur as a Canadian foreign private issuer eligible to use MJDS. If the Company is not a foreign private issuer, it would not be eligible to use the MJDS or other foreign issuer forms and would be required to file periodic and current reports and registration statements on U.S. domestic issuer forms with the SEC, which are more detailed and extensive than the forms available to a foreign private issuer.

*Enforcement of Foreign Judgements*

Certain directors of the Company reside outside of Canada. Some or all of the assets of such persons may be located outside of Canada. Therefore, it may not be possible for investors to collect or to enforce judgments obtained in Canadian courts predicated upon the civil liability provisions of applicable Canadian securities laws against such persons. Moreover, it may not be possible for investors to effect service of process within Canada upon such persons. Consequently, investors may be effectively prevented from pursuing remedies against the Company under Canadian securities laws or otherwise.

In the event a judgment is obtained in a Canadian court against one or more of such persons for violations of Canadian securities laws or otherwise, it may not be possible to enforce such judgment against persons not resident in Canada. Additionally, it may be difficult for an investor, or any other person or entity, to assert Canadian securities law or other claims in original actions instituted in the United States. Courts in such jurisdiction may refuse to hear a claim based on a violation of Canadian securities laws or otherwise on the grounds that such jurisdiction is not the most appropriate forum to bring such a claim. Even if a foreign court agrees to hear a claim, it may determine that the local law, and not Canadian law, is applicable to the claim. If Canadian law is found to be applicable, the content of applicable Canadian law must be proven as a fact, which can be a time-consuming and costly process. Certain matters of procedure will also be governed by foreign law.

The enforcement by investors of civil liabilities under the United States federal or state securities laws may be affected adversely by the fact that the Company is organized under the laws of British Columbia, Canada, that some of the Company's officers and directors are residents of countries other than the United States, and that all, or a substantial portion of their assets and a substantial portion of the Company's assets, are located outside the United States. It may not be possible for investors to effect service of process within the United States on certain of its directors and officers or enforce judgments obtained in the United States courts against the Company or certain of its directors and officers based upon the civil liability provisions of United States federal securities laws or the securities laws of any state of the United States.

The Company has been advised that, subject to certain limitations, a judgment of a United States court predicated solely upon civil liability under United States federal securities laws may be enforceable in Canada if the United States court in which the judgment was obtained has a basis for jurisdiction in the matter that would be recognized by a Canadian court for the same purposes. The Company has also been advised, however, that there is substantial doubt whether an action could be brought in Canada in the first instance on the basis of liability predicated solely upon United States federal securities laws or any such state securities or "blue sky" laws.

The Company is filing with the SEC, concurrently with the U.S. Registration Statement of which this Prospectus forms a part, an appointment of agent for service of process on Form F-X. Under the Form F-X, the Company appointed Cogency Global Inc., with an address at 122 East 42nd Street, 18th Floor, New York, New York 10168, USA, as its agent for service of process in the United States in connection with any investigation or administrative proceeding conducted by the SEC, and any civil suit or action brought against or involving the Company in a United States court, arising out of or related to or concerning the Offering of the Securities.

**USE OF PROCEEDS**

Unless otherwise specified in the applicable Prospectus Supplement, the net proceeds from the sale of Securities will be used to advance the Company's business objectives and for general corporate purposes, including funding ongoing operations or working capital requirements, for the exploration, sustaining capital and maintenance of the Company's mineral properties, repaying indebtedness outstanding from time to time and potential future acquisitions. At this time, the Company does not have any ‎proposed acquisitions‎.

Future developments in the Company's mineral properties or unforeseen events ‎may also impact the ability of the Company to use the proceeds from the sale of the Securities as intended or disclosed in ‎each Prospectus Supplement. See "*Risk Factors*"‎.

Each Prospectus Supplement will contain specific information concerning the use of proceeds from that sale of Securities.

During the most recent financial year ended September 30, 2025, the Company had negative cash flow from operating activities. To the extent that the Company has negative cash flow in future periods, it may need to allocate a portion of its cash reserves to fund such negative cash flow. If necessary, proceeds from the sale of Securities may be used to fund negative cash flow from operating activities in future periods which will be indicated in a Prospectus Supplement as applicable. There can be no assurance that the Company will be able to generate a positive cash flow from its operations, that additional capital or other types of financing will be available when needed or that these financings will be on terms favourable to the Company. All expenses relating to an Offering and any compensation paid to underwriters, dealers or agents, as the case may be, will be paid out of the proceeds from the sale of such Securities, unless otherwise stated in the applicable Prospectus Supplement.

The Company will not receive any proceeds from any sale of Securities by any Selling Securityholder.

**CONSOLIDATED CAPITALIZATION**

Since the date of the Annual Financial Statements, which are incorporated by reference in this Prospectus, there has been no material change to the share and loan capital of the Company on a consolidated basis, other than as disclosed in the AIF, this Prospectus or in another document incorporated by reference herein. See "*Prior Sales*".

**PLAN OF DISTRIBUTION**

The Company or any Selling Securityholder may sell the Securities, separately or together: (a) to one or more underwriters or dealers; (b) through one or more agents; or (c) directly to one or more other purchasers. Each Prospectus Supplement relating to a particular Offering of Securities will set forth the terms of the applicable Offering, including the (a) terms of the Securities to which the Prospectus Supplement relates, including the type of Security being offered, and the method of distribution; (b) the name or names of any underwriters, dealers or agents involved in the Offering of Securities; (c) the purchase price or prices of the Securities offered thereby and the proceeds to, and the expenses borne by, the Company from the sale of the Securities; (d) any commission, underwriting discount and other items constituting compensation payable to underwriters, dealers or agents; and (e) any discounts or concessions allowed or re-allowed or paid to underwriters, dealers or agents. In addition, Securities may be offered and issued in consideration for the acquisition (an "**Acquisition**") of other businesses, assets or securities by the Company or its subsidiaries. The consideration for any such Acquisition may consist of any of the Securities separately, a combination of Securities or any combination of, among other things, securities, cash and assumption of liabilities.

The Securities may be sold from time to time in one or more transactions at a fixed price or prices which may be changed or at market prices prevailing at the time of sale, at prices related to such prevailing market prices or at negotiated prices, including sales in transactions that are deemed to be "at-the-market distributions" as defined in National Instrument 44-102 ‎‎– *Shelf Distributions*, including sales made directly on the CSE or other existing trading markets for ‎the securities, and sales pursuant to a dividend reinvestment plan. The prices at which the Securities may be offered may vary as between purchasers and during the period of distribution. If, in connection with an Offering of Securities at a fixed price or prices, the underwriters have made a bona fide effort to sell all of the Securities at the initial Offering price fixed in the applicable Prospectus Supplement, the public Offering price may be decreased and thereafter further changed, from time to time, to an amount not greater than the initial public Offering price fixed in such Prospectus Supplement, in which case the compensation realized by the underwriters will be decreased by the amount that the aggregate price paid by purchasers for the Securities is less than the gross proceeds paid by the underwriters to the Company or any Selling Securityholder. Selling Securityholders will not engage in any "at-the-market distributions."

Only underwriters, dealers or agents so named in the Prospectus Supplement are deemed to be underwriters, dealers or agents in connection with the Securities offered thereby. If underwriters are used in an Offering, the Securities offered thereby will be acquired by the underwriters for their own account and may be resold from time to time in one or more transactions, including negotiated transactions, at a fixed public Offering price or at varying prices determined at the time of sale. The obligations of the underwriters to purchase Securities will be subject to the conditions precedent agreed upon by the parties and the underwriters will be obligated to purchase all Securities under that Offering if any are purchased. If agents are used in an Offering, unless otherwise indicated in the applicable Prospectus Supplement, such agents will be acting on a "best efforts" basis for the period of their appointment. Any public Offering price and any discounts or concessions allowed or re-allowed or paid to underwriters, dealers or agents may be changed from time to time. To the extent there are any secondary Offerings, the aggregate amount of Securities that may be offered and sold by the Company hereunder shall be reduced by the aggregate amount of such secondary Offerings.

Underwriters, dealers or agents who participate in the distribution of Securities may be entitled under agreements to be entered into with the Company or any Selling Securityholder to indemnification by the Company or any Selling Securityholder against certain liabilities, including liabilities under securities legislation, or to contribution with respect to payments which such underwriters, dealers or agents may be required to make in respect thereof. Such underwriters, dealers or agents with whom the Company or any Selling Securityholder enters into agreements may be customers of, engage in transactions with, or perform services for, the Company or any Selling Securityholder in the ordinary course of business.

Any Offering of Subscription Receipts, Share Purchase Contracts, Warrants or Units will be a new issue of securities with no ‎established trading market. Unless otherwise specified in the applicable Prospectus Supplement, the Subscription Receipts, Share Purchase Contracts, Warrants or Units will not be listed on any securities exchange. Unless otherwise specified in the ‎applicable Prospectus Supplement, there is no market through which the Subscription Receipts, Share Purchase Contracts, Warrants or ‎Units may be sold and purchasers may not be able to resell Subscription Receipts, Share Purchase Contracts, Warrants or Units ‎purchased under this Prospectus or any Prospectus Supplement. This may affect the pricing of the ‎Subscription Receipts, Share Purchase Contracts, Warrants or Units in the secondary market, the transparency and availability of trading prices, the ‎liquidity of the Securities, and the extent of issuer regulation. Subject to applicable laws, certain dealers may make a ‎market in these Securities, but will not be obligated to do so and may discontinue any market making at any time without ‎notice. No assurance can be given that any dealer will make a market in these Securities or as to the liquidity of the trading ‎market, if any, for these Securities‎.

No underwriter of the "at-the-market distribution" as defined under applicable Canadian securities ‎legislation, and no person or company acting jointly or in concert with an underwriter, may, in connection with the distribution, enter into any transaction that is intended to stabilize or maintain the market price of the Securities or Securities of the same class as the Securities distributed under the at-the-market prospectus, including selling an aggregate number or principal amount of Securities that would result in the underwriter creating an over-allocation position in the Securities.

In connection with any Offering of Securities, other than an "at-the-market distribution", subject to applicable laws, the underwriters or agents may over-allot or effect transactions that stabilize or maintain the market price of the offered Securities at a level above that which might otherwise prevail in the open market. Such transactions, if commenced, may be interrupted or discontinued at any time.

A purchaser who acquires Common Shares, Warrants, Subscription Receipts, Share Purchase Contracts, or Units forming part of the underwriters' over-allocation position acquires those securities under this short form prospectus, regardless of whether the over-allocation position is ultimately filled through the exercise of the overallotment option or secondary market purchases.

Depositary Shares will not be offered or sold in Canada.

**SELLING SECURITYHOLDERS**

Securities may be sold under this Prospectus by way of secondary Offering by Selling Securityholders. The Prospectus Supplement for or including any Offering of Securities by Selling Securityholders will include the following information, to the extent required by applicable securities laws: (i) the name or names of the Selling Securityholders (if a Selling Securityholder is not an individual, the name of each individual who is a principal securityholder of the Selling Securityholder); (ii) the number or amount of Securities owned, controlled or directed by each Selling Securityholder; (iii) the number or amount of Securities being distributed for the account of each Selling Securityholder; (iv) the number or amount of Securities to be owned, controlled or directed by the Selling Securityholders after the distribution and the percentage that number or amount represents of the total number of outstanding Securities; (v) whether the Securities are owned by the Selling Securityholders both of record and beneficially, of record only, or beneficially only; (vi) if any Selling Securityholder acquired any Securities in the 12 months preceding the date of the applicable Prospectus Supplement, the date or dates on which such Selling Securityholder acquired such Securities and the cost thereof to such Selling Securityholder in the aggregate and on an average cost per security basis; (vii) if applicable, the disclosure required by Item 1.11 of Form 44-101F1, and, if applicable, the Selling Securityholders will file a non-issuer's submission to jurisdiction form with the corresponding Prospectus Supplement; and (viii) all other information that is required to be included in the applicable Prospectus Supplement. No Selling Securityholder may distribute Securities pursuant to an "at-the-market distribution" in Canada.

**PRIOR SALES**

Information in respect of the Common Shares issued by the Company within the previous twelve (12) month period, including Common Shares that the Company issued either upon the exercise of options or warrants, will be provided as required in a Prospectus Supplement with respect to the issuance of the Securities pursuant to such Prospectus Supplement.

**PRICE RANGE AND TRADING VOLUME**

The outstanding Common Shares are traded on the CSE under the trading symbol "ARS", on the OTCQX Venture Market under the symbol "ARSMF" and on the Frankfurt Stock Exchange under the symbol "N8I1". Trading price and volume of the Common Shares will be provided in each Prospectus Supplement.

**DIVIDEND POLICY**

The Company has not declared any dividends or distributions on the Common Shares since its incorporation. Any future determination to pay dividends or make distributions will be at the discretion of the board of directors and will depend on our capital requirements, financial performance and such other factors as the board of directors considers relevant.

**DESCRIPTION OF COMMON SHARES**

The Company is authorized to issue an unlimited number of Common Shares without par value. As of the date of this Prospectus, there were 267,801,011 ‎Common Shares issued and outstanding.

There are no special rights or restrictions attached to the Common Shares.

All of the issued and outstanding Common Shares have been fully paid for and none are subject to any future call or assessment. The holders of Common Shares are entitled to receive notice of any meetings of shareholders of the Company, to attend and to cast one vote per Share at all such meetings, except meetings at which only holders of another class or series of shares are entitled to vote separately as such class or series. Holders of Common Shares are entitled to receive on a pro rata basis such dividends, if any, as and when declared by the board of directors of the Company at its discretion from funds legally available therefor. In the event of any liquidation, dissolution or winding up of the Company or other distribution of the assets of the Company among holders of Common Shares for the purposes of winding-up its affairs, the holders of Common Shares will be entitled, subject to the rights of the holders of any other class or series of shares ranking senior to the Common Shares, to receive on a pro rata basis the remaining property or assets of the Company available for distribution, after the payment of debts and other liabilities. The Common Shares do not carry any cumulative voting, pre-emptive, subscription, redemption, retraction or conversion rights, nor do they contain any sinking or purchase fund provisions.

**DESCRIPTION OF WARRANTS**

The Company may issue Warrants to purchase Common Shares, Depositary Shares or other securities of the Company. This section describes the general terms that will apply to any Warrants issued pursuant to this Prospectus.

Warrants may be offered separately or together with other Securities and may be attached to or separate from any other Securities. Unless the applicable Prospectus Supplement otherwise indicates, each series of Warrants will be issued under a separate warrant indenture to be entered into between us and one or more banks or trust companies acting as Warrant agent or may be issued in certificated form. The Warrant agent (if any) will act solely as our agent and will not assume a relationship of agency with any holders of Warrant certificates or beneficial owners of Warrants. The applicable Prospectus Supplement will include details of the Warrant indentures, if any, governing the Warrants being offered. The specific terms of the Warrants, and the extent to which the general terms described in this section apply to those Warrants, will be set out in the applicable Prospectus Supplement.

Notwithstanding the foregoing, we will not offer Warrants for sale separately to any member of the public in Canada in connection with an Offering unless the Offering is in connection with and forms part of the consideration for an acquisition or merger transaction or unless the Prospectus Supplement containing the specific terms of the Warrants to be offered separately is first approved for filing by the securities regulators in Canada, if applicable, where the Warrants will be offered for sale.

The Prospectus Supplement relating to any Warrants that we offer will describe the Warrants and the specific terms relating to the Offering. The description will include, where applicable:

● the designation and aggregate number of Warrants;

● the price at which the Warrants will be offered;

● the currency or currencies in which the Warrants will be offered;

● the date on which the right to exercise the Warrants will commence and the date on which the right will expire;

● the designation, number and terms of the Common Shares or other securities, as applicable, that may be purchased upon exercise of the Warrants, and the procedures that will result in the adjustment of those numbers;

● the exercise price of the Warrants;

● the designation and terms of the Securities, if any, with which the Warrants will be offered, and the number of Warrants that will be offered with each Security;

● if the Warrants are issued as a Unit with another Security, the date, if any, on and after which the Warrants and the other Security will be separately transferable;

● any minimum or maximum amount of Warrants that may be exercised at any one time;

● any terms, procedures and limitations relating to the transferability, exchange or exercise of the Warrants;

● whether the Warrants will be subject to redemption or call and, if so, the terms of such redemption or call provisions;

● material United States and Canadian federal income tax consequences of owning the Warrants; and

● any other material terms or conditions of the Warrants.

Warrant certificates will be exchangeable for new Warrant certificates of different denominations at the office indicated in the Prospectus Supplement. Prior to the exercise of their Warrants, holders of Warrants will not have any of the rights of holders of the Securities subject to the Warrants. We may amend the Warrant indenture(s) and the Warrants, without the consent of the holders of the Warrants, to cure any ambiguity, to cure, correct or supplement any defective or inconsistent provision or in any other manner that will not prejudice the rights of the holders of outstanding Warrants, as a group.

**DESCRIPTION OF SUBSCRIPTION RECEIPTS**

The Company may issue Subscription Receipts, separately or together, with Common Shares, Depositary Shares or Warrants, as the case may be. The Subscription Receipts will be issued under a subscription receipt agreement. This section describes the general terms that will apply to any Subscription Receipts that we may offer pursuant to this Prospectus.

The applicable Prospectus Supplement will include details of the subscription receipt agreement covering the Subscription Receipts being offered. We will file a copy of the subscription receipt agreement relating to an Offering with securities regulatory authorities in Canada after we have entered into it. The specific terms of the Subscription Receipts, and the extent to which the general terms described in this section apply to those Subscription Receipts, will be set forth in the applicable Prospectus Supplement. This description will include, where applicable:

● the number of Subscription Receipts;

● the price at which the Subscription Receipts will be offered and whether the price is payable in instalments;

● conditions to the exchange of Subscription Receipts into Common Shares, Depositary Shares or Warrants, as the case may be, and the consequences of such conditions not being satisfied;

● the procedures for the exchange of the Subscription Receipts into Common Shares, Depositary Shares or Warrants;

● the number of Common Shares, Depositary Shares or Warrants that may be exchanged upon exercise of each Subscription Receipt;

● the designation and terms of any other Securities with which the Subscription Receipts will be offered, if any, and the number of Subscription Receipts that will be offered with each Security;

● the dates or periods during which the Subscription Receipts may be exchanged into Common Shares, Depositary Shares or Warrants;

● terms applicable to the gross or net proceeds from the sale of the Subscription Receipts plus any interest earned thereon;

● material United States and Canadian federal income tax consequences of owning the Subscription Receipts;

● any other rights, privileges, restrictions and conditions attaching to the Subscription Receipts; and

● any other material terms and conditions of the Subscription Receipts.

Subscription Receipt certificates will be exchangeable for new Subscription Receipt certificates of different denominations at the office indicated in the Prospectus Supplement. Prior to the exchange of their Subscription Receipts, holders of Subscription Receipts will not have any of the rights of holders of the Securities subject to the Subscription Receipts.

Under the subscription receipt agreement, a Canadian purchaser of Subscription Receipts will have a contractual right of rescission following the issuance of Common Shares or Warrants, as the case may be, to such purchaser, entitling the purchaser to receive the amount paid for the Subscription Receipts upon surrender of the Common Shares or Warrants, as the case may be, if this Prospectus, the applicable Prospectus Supplement, and any amendment thereto, contains a misrepresentation, provided such remedy for rescission is exercised within 180 days of the date the Subscription Receipts are issued. This right of rescission does not extend to holders of Subscription Receipts who acquire such Subscription Receipts from an initial purchaser, on the open market or otherwise, or to initial purchasers who acquire Subscription Receipts in the United States or other jurisdictions outside Canada.

Such subscription receipt agreement will also specify that we may amend any subscription receipt agreement and the Subscription Receipts, to cure any ambiguity, to cure, correct or supplement any defective or inconsistent provision or in any other manner that will not materially and adversely affect the interests of the holder.

**DESCRIPTION OF SHARE PURCHASE CONTRACTS**

The Company may issue share purchase contracts, representing contracts obligating holders to purchase from or sell to the Company, and obligating the Company to purchase from or sell to the holders, a specified number of Common Shares at a future date or dates, and including by way of instalment.

The price per Common Share and the number of Common Shares may be fixed at the time the share purchase contracts are issued or may be determined by reference to a specific formula or method set forth in the share purchase contracts. The Company may issue share purchase contracts in accordance with applicable laws and in such amounts and in as many distinct series as it may determine.

The share purchase contracts may be issued separately or as part of units consisting of a share purchase contract and beneficial interests in debt obligations of third parties, securing the holders' obligations to purchase the Common Shares under the share purchase contracts, which are referred to in this prospectus as share purchase units. The share purchase contracts may require the Company to make periodic payments to the holders of the share purchase units or vice versa, and these payments may be unsecured or refunded and may be paid on a current or on a deferred basis. The share purchase contracts may require holders to secure their obligations under those contracts in a specified manner.

Holders of share purchase contracts are not shareholders of the Company. The particular terms and provisions of share purchase contracts offered by any Prospectus Supplement, and the extent to which the general terms and provisions described below may apply to them, will be described in the applicable Prospectus Supplement filed in respect of such share purchase contracts. This description will include, where applicable: (i) whether the share purchase contracts obligate the holder to purchase or sell, or both purchase and sell, Common Shares and the nature and amount of those securities, or the method of determining those amounts; (ii) whether the share purchase contracts are to be prepaid or not or paid in instalments; (iii) any conditions upon which the purchase or sale will be contingent and the consequences if such conditions are not satisfied; (iv) whether the share purchase contracts are to be settled by delivery, or by reference or linkage to the value or performance of Common Shares; (v) any acceleration, cancellation, termination or other provisions relating to the settlement of the share purchase contracts; (vi) the date or dates on which the sale or purchase must be made, if any; (vii) whether the share purchase contracts will be issued in fully registered or global form; (viii) the material income tax consequences of owning, holding and disposing of the share purchase contracts; and (ix) any other material terms and conditions of the share purchase contracts including, without limitation, transferability and adjustment terms and whether the share purchase contracts will be listed on a securities exchange or automated interdealer quotation system.

Original purchasers of share purchase contracts will be granted a contractual right of rescission against the Company in respect of the conversion, exchange or exercise of such share purchase contract. The contractual right of rescission will entitle such original purchasers to receive the amount paid upon conversion, exchange or exercise, upon surrender of the underlying securities gained thereby, in the event that this prospectus (as supplemented or amended) contains a misrepresentation, provided that: (i) the conversion, exchange or exercise takes place within 180 days of the date of the purchase of the convertible, exchangeable or exercisable security under this prospectus; and (ii) the right of rescission is exercised within 180 days of the date of the purchase of the convertible, exchangeable or exercisable security under this prospectus. This contractual right of rescission will be consistent with the statutory right of rescission described under section 130 of the *Securities Act* (British Columbia), and is in addition to any other right or remedy available to original purchasers under section 130 of the *Securities Act* (British Columbia) or otherwise at law.

**DESCRIPTION OF UNITS**

The Company may issue Units comprised of one or more of the other Securities described in this Prospectus in any combination. Each Unit will be issued so that the holder of the Unit is also the holder of each of the Securities included in the Unit. Thus, the holder of a Unit will have the rights and obligations of a holder of each included Security. The unit agreement, if any, under which a Unit is issued may provide that the Securities included in the Unit may not be held or transferred separately, at any time or at any time before a specified date. The particular terms and provisions of Units offered by any Prospectus Supplement, and the extent to which the foregoing general terms and provisions may apply thereto, will be described in the Prospectus Supplement filed in respect of such Units.

**DESCRIPTION OF COMMON SHARES REPRESENTED BY DEPOSITARY SHARES**

DEPOSITARY SHARES WILL NOT BE OFFERED OR SOLD IN CANADA.

The following is a brief summary of certain general terms and provisions of the Depositary Shares that may represent Common Shares offered pursuant to this Prospectus. This summary does not purport to be complete. The particular terms and provisions of the Depositary Shares as may be offered pursuant to this Prospectus will be set forth in the applicable Prospectus Supplement pertaining to such offering of Depositary Shares, and the extent to which the general terms and provisions described below may apply to such Depositary Shares will be described in the applicable Prospectus Supplement. The following description is subject to the detailed provisions of the applicable Deposit Agreement (as defined herein). To the extent that any particular terms of the Depositary Shares or the Deposit Agreement described in a Prospectus Supplement differ from any of the terms described below, then the terms described below will be deemed to have been superseded by that Prospectus Supplement relating to such Depositary Shares.

The Company may, at its option, elect to offer Depositary Shares that represent either a whole Common Share, multiple Common Shares or a fraction of a Common Share as more fully described below. Investors may hold Depositary Shares either: (A) directly (i) by having an American Depositary Receipt (an "**ADR**"), which is a certificate evidencing a specific number of Depositary Shares, registered in the investors name; or (ii) by having uncertificated Depositary Shares registered in the investors name; or (B) indirectly by holding a security entitlement in Depositary Shares through a broker or other financial institution that is a direct or indirect participant in The Depository Trust Company, also called DTC.

Any Common Share(s) (or fractional Common Shares) represented by Depositary Shares will be deposited under one or more deposit agreements (the "**Deposit Agreement**") among us, a depositary to be named in the applicable Prospectus Supplement, and the holders and beneficial owners from time to time of Depositary Shares issued thereunder. Subject to the terms of the applicable Deposit Agreement, each registered holder of a Depositary Share will be entitled, in proportion to the applicable multiple or fraction of a Common Share represented by the Depositary Shares, to certain contractual rights with respect to the Common Shares represented thereby (including, as applicable, dividend, voting, redemption, subscription and liquidation rights).

Immediately following our issuance of Common Shares that will be offered as Depositary Shares, we will deposit the Common Shares with the depositary.

*Dividends and other Distributions*

 

The depositary will distribute all cash dividends or other cash distributions received in respect of the Common Shares to the record holders of the Depositary Shares relating to the Common Shares in proportion to the number of the Depositary Shares owned by those holders.

In the event of a distribution other than in cash, the depositary will distribute property received by it to the record holders of Depositary Shares entitled thereto in proportion to the number of Depositary Shares owned by those holders, unless the depositary determines that the distribution cannot be made proportionately among those holders or that it is not feasible to make the distributions, in which case the depositary may adopt any method as it deems equitable and practicable for the purpose of effecting the distribution, including the sale (at public or private sale) of the securities or property thus received, or any part thereof, at the place or places and upon those terms as it may deem proper. The amount distributed in any of the foregoing cases will be reduced by any amounts required to be withheld by us or the depositary on account of taxes or other governmental charges and the amount of fees payable to the depositary for making the distribution. To the extent there is insufficient distributable cash and the depositary is unable to otherwise collect a fee from holders of Depositary Shares and does not waive that fee, it will use reasonable efforts to sell a portion of any securities to be distributed to holders of Depositary Shares that are obligated to pay that fee and apply the net proceeds of sale to pay that fee.

*Redemption of Depositary Shares*

 

If any Common Shares underlying the Depositary Shares are subject to redemption, the Depositary Shares will be redeemed from the proceeds received by the depositary resulting from any redemption, in whole or in part, of the Common Shares held by the depositary. The redemption price per Depositary Share will be equal to the applicable fraction of the redemption price per share payable with respect to the Common Shares. If the Company redeems Common Shares held by the depositary, the depositary will redeem as of the same redemption date the number of Depositary Shares representing the Common Shares so redeemed. If less than all the Depositary Shares are to be redeemed, the Depositary Shares to be redeemed will be selected by lot or substantially equivalent method determined by the depositary.

After the date fixed for redemption, the Depositary Shares so called for redemption, all rights of the holders of those Depositary Shares will cease, except the right to receive the monies payable upon redemption and any money or other property to which the holders of the Depositary Shares were entitled upon such redemption, upon surrender to the depositary of those Depositary Shares. Applicable fees of the depositary and any applicable taxes will be deducted from the payments surrendering holders will receive.

*Voting Rights*

 

Upon receipt of notice of any meeting at which the holders of any Common Shares are entitled to vote, the depositary will, if requested in writing by the Company, mail the information contained in the notice of meeting and any related materials to the record holders of the Depositary Shares relating to the Common Shares as of a record date set by the depositary. Each record holder of the Depositary Shares as of that record date will be entitled to instruct the depositary as to the exercise of the voting rights pertaining to the number of Common Shares represented by that holder's Depositary Shares. The depositary will endeavor, insofar as practicable, to vote or cause to be voted the number of Common Shares represented by the Depositary Shares in accordance with the instructions, provided the instruction is received by a cut-off date established by the depositary, and the Company will agree to take all reasonable action that may be deemed necessary by the depositary in order to enable the depositary to do so. The depositary will abstain from voting the Common Shares to the extent it does not receive specific instructions from the holders of Depositary Shares representing the Common Shares. If the Company does not instruct the depositary to solicit voting instructions, registered holders of Depositary Shares may still send instructions and the depositary may endeavor to carry out those instructions, but it is not required to do so.

*Withdrawal*

 

Holders of Depositary Shares may surrender their Depositary Shares for the purpose of withdrawal at the depositary's office. Upon payment of its fees and expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees, the depositary will deliver the Common Shares underlying the Depository Shares to the holder of Depositary Shares or a person the holder designates at the office of the custodian. If ADRs delivered by the holder evidence a number of Depositary Shares in excess of the number of Depositary Shares representing the number of whole shares of the related Common Shares to be withdrawn, the depositary will deliver to the holder or upon such holder's order at the same time the excess number of Depositary Shares.

*Charges of Depositary*

 

The Company will pay all transfer and other taxes and the governmental charges arising solely from the existence of the depositary arrangements. The Company will pay the charges of the depositary in connection with the initial deposit of the related Common Shares and the initial issuance of the offered Depositary Shares. Holders of Depositary Shares will pay transfer and other taxes and governmental charges and all other fees and charges as are expressly provided in the deposit agreement to be for their accounts.

*Miscellaneous*

 

If requested by the Company, the depositary will forward to the holders of Depositary Shares reports and communications from the Company that are delivered to the depositary. The depositary's office location will be identified in the applicable Prospectus Supplement. Unless otherwise set forth in the applicable Prospectus Supplement, the depositary will act as transfer agent and registrar for Depositary Shares.

Prospective purchasers of Depositary Shares should be aware that certain tax, accounting and other considerations may be applicable to instruments such as Depositary Shares. The applicable Prospectus Supplement will describe such considerations, to the extent they are material, as they apply generally to purchasers of such Depositary Shares.

**DENOMINATIONS, REGISTRATION AND TRANSFER**

The Securities (other than Depositary Shares) will be issued in fully registered form without coupons attached in either global or definitive form and in denominations and integral multiples as set out in the applicable Prospectus Supplement. Other than in the case of book-entry only securities, securities may be presented for registration of transfer (with the form of transfer endorsed thereon duly executed) in the city specified for such purpose at the office of the registrar or transfer agent designated by the Company for such purpose with respect to any issue of securities referred to in the Prospectus Supplement. No service charge will be made for any transfer, conversion or exchange of the securities, but we may require payment of a sum to cover any transfer tax or other governmental charge payable in connection therewith. Such transfer, conversion or exchange will be effected upon such registrar or transfer agent being satisfied with the documents of title and the identity of the person making the request. If a Prospectus Supplement refers to any registrar or transfer agent designated by the Company with respect to any issue of securities, we may at any time rescind the designation of any such registrar or transfer agent and appoint another in its place or approve any change in the location through which such registrar or transfer agent acts.

In the case of book-entry only securities, a global certificate or certificates representing the securities will be held by a designated depository for its participants. The securities must be purchased or transferred through such participants, which includes securities brokers and dealers, banks and trust companies. The depository will establish and maintain book-entry accounts for its participants acting on behalf of holders of the securities. The interests of such holders of securities will be represented by entries in the records maintained by the participants. Holders of securities issued in book-entry only form will not be entitled to receive a certificate or other instrument evidencing their ownership thereof, except in limited circumstances. Each holder will receive a customer confirmation of purchase from the participants from which the securities are purchased in accordance with the practices and procedures of that participant.

Details concerning the registration and transfer of Depositary Shares will be provided in the prospectus supplement for Common Shares represented by Depositary Shares, if applicable.

**CERTAIN FEDERAL INCOME TAX CONSIDERATIONS**

Owning or holding any of the Securities may subject holders to tax consequences in Canada, the United States and elsewhere. Although the applicable Prospectus Supplement may describe certain Canadian federal income tax consequences of the acquisition, ownership and disposition of any Securities offered under this Prospectus by an initial investor, the Prospectus Supplement may not describe these tax consequences fully. The applicable Prospectus Supplement may also describe certain United States federal income tax consequences which may be applicable to a purchaser of Securities hereunder by an investor who is a United States person (within the meaning of the United States Internal Revenue Code of 1986, as amended). Each investor should consult their own tax advisor with respect to such investor's particular circumstances.

**LEGAL PROCEEDINGS AND REGULATORY ACTIONS**

The Company is not aware of: (a) any legal proceedings to which the Company is a party, or to which any of the Company's property is subject, which would be material to the Company or of any such proceedings being contemplated; (b) any penalties or sanctions imposed by a court relating to securities legislation, or other penalties or sanctions imposed by a court or regulatory body against the Company that would likely be considered important to a reasonable investor making an investment decision; and (c) any settlement agreements that the Company has entered into before a court relating to securities legislation or with a securities regulatory authority.

**TRANSFER AGENT AND REGISTRAR**

The transfer agent and registrar for the Common Shares is TSX Trust Company at its principal office in the City of Toronto, Ontario.

**INTEREST OF EXPERTS**

The following are persons or companies whose profession or business gives authority to a statement made in this Prospectus as having prepared or certified a part of that document or report described in this Prospectus.

Eugene Puritch, P.Eng., FEC, CET, Richard H. Sutcliffe, Ph.D, P.Geo., and Fred H. Brown, P.Geo., of P&E Mining Consultants Inc., David J. Salari, P.Eng., of D.E.N.M. Engineering Ltd., and Alan Czarnowksy, Independent Consultant, each of whom is a "qualified person" for the purposes of NI 43-101 are the named persons responsible for the preparation of the Technical Report, and at the date of the Technical Report were "qualified persons" (as defined in NI 43-101), and were all independent, as defined in NI 43-101.

Manning Elliott LLP, Chartered Professional Accountants, provided: (i) an auditors report dated January 28, 2026 in respect of the Company's financial statements for the financial year ended September 30, 2025; and (ii) an auditors report dated January 29, 2025 in respect of the Company's financial statements for the financial year ended September 30, 2024. Manning Elliott LLP has advised that it is independent with respect to the Company within the meaning of the Code of Professional Conduct of the Chartered Professional Accountants of British Columbia and the Public Company Accounting Oversight Board.

To the knowledge of the Company, the aforementioned firms or persons held either less than 1% or no securities of the Company or of any associate or affiliate of the Company when they rendered services, prepared the reports referred to, as applicable, or following the rendering of services or preparation of such reports or data, as applicable, and either did not receive any or received less than 1% direct or indirect interest in any securities of the Company or of any associate or affiliate of the Company in connection with the rendering of such services or preparation of such reports or data.

**promoters**

No person or company has, within the two years immediately preceding the date of this Prospectus, been a promoter of the Company, within the meaning of applicable securities laws. received anything of value directly or indirectly from the Company or a subsidiary.

**PURCHASER'S STATUTORY RIGHTS**

Securities legislation in certain of the provinces and territories of Canada provides purchasers with the right to withdraw from an agreement to purchase securities. This right may be exercised within two business days after receipt or deemed receipt of a prospectus and any amendment thereto. In several of the provinces and territories of Canada, the securities legislation further provides a purchaser with remedies for rescission or, in some jurisdictions, revisions of the price damages if the Prospectus and any amendment thereto contains a misrepresentation or is not delivered to the purchaser, provided that the remedies for rescission, revisions of the price or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province for the particulars of these rights or consult with a legal adviser.

In an Offering of convertible, exchangeable or exercisable Securities, investors are cautioned that the statutory right of action for damages for a misrepresentation contained in the Prospectus is limited, in certain provincial securities legislation, to the price at which the convertible, exchangeable or exercisable Securities are offered to the public under an Offering. This means that, under the securities legislation of certain provinces and territories, if the purchaser pays additional amounts upon conversion, exchange or exercise of the security, those amounts may not be recoverable under the statutory right of action for damages that applies in those provinces and territories. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province for the particulars of this right of action for damages or consult with a legal adviser.

**PURCHASER'S CONTRACTUAL RIGHTS**

Original purchasers of Warrants (if offered separately), Subscription Receipts and Share Purchase Contracts will have a contractual right of rescission against the Company in respect of the conversion, exchange or exercise of such Warrant, Subscription Receipt or Share Purchase Contract, as the case may be.

The contractual right of rescission will entitle such original purchasers to receive, in addition to the amount paid on original purchase of the Warrant, Subscription Receipt or Share Purchase Contract, as the case may be, the amount paid upon conversion, exchange or exercise upon surrender of the underlying securities gained thereby, in the event that this Prospectus (as supplemented or amended) contains a misrepresentation, provided that: (i) the conversion, exchange or exercise takes place within 180 days of the date of the purchase of the convertible, exchangeable or exercisable security under this prospectus; and (ii) the right of rescission is exercised within 180 days of the date of purchase of the convertible, exchangeable or exercisable security under this prospectus. This contractual right of rescission will be consistent with the statutory right of rescission described under section 138 of the *Securities Act* (British Columbia), and is in addition to any other right or remedy available to original purchasers under section 138 of the *Securities Act* (British Columbia) or otherwise at law.

Original purchasers are further advised that in certain provinces and territories the statutory right of action for damages in ‎connection with a prospectus misrepresentation is limited to the amount paid for the convertible, exchangeable or ‎exercisable security that was purchased under a prospectus, and therefore a further payment at the time of conversion, ‎exchange or exercise may not be recoverable in a statutory action for damages. The purchaser should refer to any ‎applicable provisions of the securities legislation of the purchaser's province for the particulars of these rights, or consult ‎with a legal adviser‎.

**CERTIFICATE OF ARES STRATEGIC MINING INC.**

June 5, 2026

This short form prospectus, together with the documents incorporated in this prospectus by reference, constitutes full, true and plain disclosure of all material facts relating to the securities offered by this prospectus as required by the securities legislation of the provinces of Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island and Saskatchewan.

<u>"*James Walker*"</u> <u>"*Viktoriya Griffin*"</u> <br> JAMES WALKER<br> President, Chief Executive Officer VIKTORIYA GRIFFIN<br> Chief Financial Officer

**ON BEHALF OF THE BOARD OF DIRECTORS**

<u>"*Changxian Li*"</u> <u>"*Bob Li*"</u> <br> CHANGXIAN LI<br> Director BOB LI Director

**PART II**

**INFORMATION NOT REQUIRED TO BE DELIVERED TO OFFEREES OR PURCHASERS**

**Indemnification of Directors and Officers**

Division 5 of Part 5 of the BCBCA provides that a corporation may (a) indemnify an eligible party against all eligible penalties (as defined herein) to which the eligible party (as defined herein) is or may be liable and (b) after the final disposition of an eligible proceeding (as defined herein), pay the expenses (as defined herein) (not including judgments, penalties, fines or amounts paid in settlement of a proceeding (as defined herein)) actually and reasonably incurred by an eligible party in respect of that proceeding.

An "**eligible penalty**" means a judgment, penalty or fine awarded or imposed in, or an amount paid in settlement of, an eligible proceeding.

An "**eligible party**" means an individual who (a) is or was a director or officer of the corporation, (b) is or was a director or officer of another corporation (i) at a time when the corporation is or was an affiliate of the corporation, or (ii) at the request of the corporation, or (c) at the request of the corporation, is or was, or holds or held a position equivalent to that of, a director or officer of a partnership, trust, joint venture or other unincorporated entity.

An "**associated corporation**" means a corporation or entity referred to in paragraph (b) or (c) of the definition of "**eligible party**".

An "**eligible proceeding**" means a proceeding in which an eligible party or any of the heirs and personal or other legal representatives of the eligible party, by reason of the eligible party being or having been a director or officer of, or holding or having held a position equivalent to that of a director or officer of, the corporation or an associated corporation (a) is or may be joined as a party, or (b) is or may be liable for or in respect of a judgment, penalty or fine in, or expenses related to, the proceeding.

"**expenses**" includes costs, charges and expenses, including legal and other fees, but does not include judgments, penalties, fines or amounts paid in settlement of a proceeding.

"**proceeding**" includes any legal proceeding or investigative action, whether current, threatened, pending or completed.

A corporation must, after the final disposition of an eligible proceeding, pay the expenses actually and reasonably incurred by the eligible party in respect of that proceeding if the eligible party (a) has not been reimbursed for those expenses, and (b) is wholly successful, on the merits or otherwise, in the outcome of the proceeding or is substantially successful on the merits in the outcome of the proceeding.

A corporation may pay, as they are incurred in advance of the final disposition of an eligible proceeding, the expenses actually and reasonably incurred by an eligible party in respect of that proceeding, provided the corporation first receives from the eligible party a written undertaking that, if it is ultimately determined that the payment of expenses is prohibited, the eligible party will repay the amounts advanced.

A corporation must not indemnify an eligible party or pay the expenses of an eligible party if any of the following circumstances apply:

● if the indemnity or payment is made under an earlier agreement to indemnify or pay expenses and, at the time that the agreement to indemnify or pay expenses was made, the corporation was prohibited from giving the indemnity or paying the expenses by its memorandum or articles;

● if the indemnity or payment is made otherwise than under an earlier agreement to indemnify or pay expenses and, at the time that the indemnity or payment is made, the corporation is prohibited from giving the indemnity or paying the expenses by its memorandum or articles;

● if, in relation to the subject matter of the eligible proceeding, the eligible party did not act honestly and in good faith with a view to the best interests of the corporation or the associated corporation, as the case may be;

● in the case of an eligible proceeding other than a civil proceeding, if the eligible party did not have reasonable grounds for believing that the eligible party's conduct in respect of which the proceeding was brought was lawful.

If an eligible proceeding is brought against an eligible party by or on behalf of the corporation or by or on behalf of an associated corporation, the corporation must not (a) indemnify the eligible party in respect of the proceeding or (b) pay the expenses of the eligible party in respect of the proceeding.

Whether or not payment of expenses or indemnification has been sought, authorized or declined under Part 5, Division 5 of the BCBCA, on application of a corporation or an eligible party, the court may do one or more of the following:

● order the corporation to indemnify an eligible party against any liability incurred by the eligible party in respect of an eligible proceeding;

● order the corporation to pay some or all of the expenses incurred by an eligible party in respect of an eligible proceeding;

● order the enforcement of, or any payment under, an agreement of indemnification entered into by the corporation;

● order the corporation to pay some or all of the expenses actually and reasonably incurred by any person in obtaining an order under Section 164 of the BCBCA; or

● make any other order the court considers appropriate.

A corporation may purchase and maintain insurance for the benefit of an eligible party or the heirs and personal or other legal representatives of the eligible party against any liability that may be incurred by reason of the eligible party being or having been a director or officer of, or holding or having held a position equivalent to that of a director or officer of, the corporation or an associated corporation.

The Company's articles provide that the Company's directors must cause the Company to indemnify its directors and former directors, and their respective heirs and personal or other legal representatives to the greatest extent permitted by Division 5 of Part 5 of the BCBCA and each director is deemed to have contracted with the Company on this term.

Insofar as indemnification for liabilities arising under the United Statutes Securities Act of 1933, as amended (the "**Securities Act**"), may be permitted to directors, officers or persons controlling the Company pursuant to the foregoing provisions, the Company has been informed that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

The Company maintains insurance policies relating to certain liabilities that its directors and officers may incur in such capacity.

**EXHIBIT INDEX**

The following documents are filed as part of this registration statement:

---

| | |
|:---|:---|
| **Exhibit Number** | **Description** |
| 4.1 | [The annual information form of the Company dated as of June 5, 2026 for the year ended September 30, 2025](ea029307701ex4-1.htm) |
| 4.2 | [The audited financial statements of the Company as at and for the years ended September 30, 2025 and 2024, together with the notes thereto and the auditor's report thereon](ea029307701ex4-2.htm) |
| 4.3 | [The management's discussion and analysis of the Company for the year ended September 30, 2025](ea029307701ex4-3.htm) |
| 4.4 | [The unaudited interim consolidated financial statements of the Company for the six months ended March 31, 2026 and the notes thereto](ea029307701ex4-4.htm) |
| 4.5 | [The management's discussion and analysis of the Company for the six months ended March 31, 2026,](ea029307701ex4-5.htm) |
| 4.6 | [The material change report dated May 22, 2026 of the Company with respect to the appointment of Lorenzo Esteva as a director of the Company and the resignations of Paul Sarjeant and Raul Sanabria as directors of the Company](ea029307701ex4-6.htm) |
| 4.7 | [The material change report dated February 24, 2026 with respect to the issuance of Common Shares to settle outstanding indebtedness](ea029307701ex4-7.htm) |
| 4.8 | [The material change report dated February 10, 2026 with respect to the closing of a non-brokered private placement offering of units pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 – Prospectus Exemptions](ea029307701ex4-8.htm) |
| 4.9 | [The material change report dated November 10, 2025 with respect to the issuance of Common Shares settling debt](ea029307701ex4-9.htm) |
| 4.10 | [The material change report dated October 23, 2025 with respect to the closing of the second and final tranche of the Company's previously announced offering of units](ea029307701ex4-10.htm) |
| 4.11 | [The material change report dated October 23, 2025 with respect to the closing of the first tranche of its previously announced offering of units and the filing of an amended and restated offering document in connection with the Initial LIFE Offering to increase the offering of units](ea029307701ex4-11.htm) |
| 4.12 | [The material change report dated October 15, 2025 with respect to a proposed offering of units pursuant to the LIFE Exemption](ea029307701ex4-12.htm) |
| 4.13 | [The management information circular of the Company dated August 18, 2025 for the annual general meeting to held on October 1, 2025](ea029307701ex4-13.htm) |
| 5.1 | [Consent of Manning Elliott LLP, Chartered Professional Accountants](ea029307701ex5-1.htm) |
| 5.2\* | Consent of Eugene Puritch |
| 5.3\* | Consent of Richard H. Sutcliffe |
| 5.4\* | Consent of Fred H. Brown |
| 5.5\* | Consent of David J. Salari |
| 5.6\* | Consent of Alan Czarnowksy |
| 6.1 | [Powers of Attorney (included on the signature page of this registration statement)](#poa_001) |
| 107 | [Calculation of Filing Fees Table](ea029307701ex-fee.htm) |

---

\* To be filed by amendment.

**PART III**

**UNDERTAKING AND CONSENT TO SERVICE OF PROCESS**

**Item 1.** **Undertaking.**

Ares Strategic Mining Inc. undertakes to make available, in person or by telephone, representatives to respond to inquiries made by SEC staff, and to furnish promptly, when requested to do so by the SEC staff, information relating to the securities registered pursuant to Form F-10 or to transactions in said securities.

**Item 2.** **Consent to Service of Process.**

Concurrently with the filing of this Registration Statement, Ares Strategic Mining Inc. has filed with the SEC a written Appointment of Agent for Service of Process and Undertaking on Form F-X.

Any change to the name or address of the agent for service of Ares Strategic Mining Inc. shall be communicated promptly to the SEC by an amendment to Form F-X referencing the file number of this Registration Statement.

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form F-10 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized in Vancouver, British Columbia on this 8th day of June, 2026.

---

| | |
|:---|:---|
| **ARES STRATEGIC MINING INC.** | **ARES STRATEGIC MINING INC.** |
| By: | */s/ James Walker* |
|  | James Walker |
|  | Chief Executive Officer <br> *(Principal Executive Officer)* |

---

KNOW ALL BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints James Walker and Viktoriya Griffin, or either of them, as his true and lawful attorney-in-fact and agent, with the full power of substitution, for him and in his name, place or stead, in any and all capacities, to sign any and all amendments to this registration statement (including post-effective amendments), and to sign any registration statement for the same offering covered by this registration statement that is to be effective upon filing pursuant to Rule 429 promulgated under the Securities Act, and all post-effective amendments thereto, and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact and agent full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorney-in-fact and agents or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| */s/ James Walker* | Chief Executive Officer and Director | June 8, 2026 |
| James Walker | (Principal Executive Officer) |  |
| */s/ Viktoriya Griffin* | Chief Financial Officer | June 8, 2026 |
| Viktoriya Griffin | (Principal Accounting and Financial Officer) |  |
| */s/ Changxian Li* |  |  |
| Changxian Li | Director | June 8, 2026 |
| */s/ Bob Li* |  |  |
| Bob Li | Director | June 8, 2026 |

---

**SIGNATURE OF AUTHORIZED REPRESENTATIVE IN THE UNITED STATES**

Pursuant to the Securities Act of 1933 as amended, the undersigned, the duly authorized representative in the United States of America of Ares Strategic Mining Inc., has signed this registration statement on June 8, 2026.

---

| | |
|:---|:---|
| Cogency Global Inc.<br> Authorized U.S. Representative | Cogency Global Inc.<br> Authorized U.S. Representative |
| */s/ Colleen A. De Vries* | */s/ Colleen A. De Vries* |
| Name: | Colleen A. De Vries |
| Title: | Sr. Vice President on behalf of Cogency Global Inc. |

---

## Exhibit 4.1

**Exhibit 4.1**

**ARES STRATEGIC MINING INC.**

**ANNUAL INFORMATION FORM**

**FOR THE YEAR ENDED SEPTEMBER 30, 2025**

**June 5, 2026**

**1001, 409 Granville St.**

**Vancouver, British Columbia V6C 1T2**

**www.aresmining.com**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| Cautionary Statement | 1 |
| Glossary of Terms and Units | 2 |
| Currency Presentation | 3 |
| Technical Information | 4 |
| Corporate Structure | 5 |
| General Development of the Business | 6 |
| Description of the Business | 11 |
| Risk Factors | 15 |
| Material Properties | 29 |
| Dividends | 36 |
| Description of Capital Structure | 36 |
| Market for Securities | 37 |
| Prior Sales | 38 |
| Escrowed Securities & Securities Subject to Contractual Restrictions on Transfer | 39 |
| Directors and Officers | 39 |
| Audit Committee | 41 |
| Legal Proceedings and Regulatory Actions | 42 |
| Interest of Management and Others in Material Transactions | 43 |
| Registrar and Transfer Agent | 43 |
| Material Contracts | 43 |
| Interests of Experts | 43 |
| Additional Information | 43 |

---

i

**Cautionary Statement**

**Forward-Looking Information**

This annual information form ("**AIF**") contains or incorporates by reference forward-looking statements and forward-looking information within the meaning of applicable Canadian securities laws, which are based on expectations, estimates and projections as of the date hereof. This forward-looking information includes, or may be based upon, without limitation, estimates, forecasts and statements as to management's expectations with respect to, among other things, the Company's historical trends, current conditions, future operations, proposed exploration activities or other development plans at the Company's properties; the anticipated exploration, drilling, development and other activities of the Company and the result of such activities; the timing and amount of funding required to execute the Company's exploration and business plans; anticipated capital and exploration expenditures; the ability of exploration work (including drilling and drilling results) to accurately predict mineralization; the type of drilling included in the Company's drill program; the ability to generate additional drill targets; the discovery of new mineralized zones; the timing and ability (if at all) for the Company to develop mineral resource estimates at any of its properties; category conversion; the Company's ability to sustain and enhance shareholder value; potential mineralization; the ability to realize upon any mineralization in a manner that is economic; the capital resources available to the Company; the ability for further work to define, expand or upgrade mineral resources at the Company's properties; the expectation that the Company's contractual partners will continue to exercise their contractual rights and fund exploration on such projects; the effect on the Company of any changes to existing legislation or policy; government regulation of exploration, development and mining operations; the length of time required to obtain permits, certifications and approvals; the ability for the Company to obtain consent or third-party approvals in order to enter into or complete agreements or transactions; the potential impact of the Company's projects in local communities and the social acceptability of the projects; the success of exploration, development and mining activities; the geology of the Company's properties; sustainability and environmental impacts of operations at the Company's properties; environmental risks; the availability of labour; the focus of the Company in the future; the future payment by the Company of dividends; progress in development of mineral properties; the ability of the Company to complete its exploration and development objectives for the Company's properties, including potential discoveries and the Company's ability to bring the Spor Mountain Property (as defined herein) into production due to attributes of the deposits; costs and dates of construction completion, including construction of the Delta Processing Site (as defined herein); costs of capital projects and commencement of operations; future mining activities; the Company's ability to raise funding privately or on a public market in the future; the Company's future growth; results of operations and performance; and business prospects and opportunities.

Wherever possible, words such as "anticipate", "believe", "expect", "intend", "may", "plan" and similar expressions have been used to identify such forward-looking information. Forward-looking information is based on the opinions and estimates of management at the date the information is given, and on information available to management at such time. Forward-looking information involves significant risks, uncertainties, assumptions and other factors that could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking information. These factors, including, but not limited to, those factors discussed herein under "Risk Factors", include: the Company having no history of commercial mineral production; the Company having negative operating cash flow and its dependence on third-party financing for operations; fluctuations in the price of fluorspar which may affect the Company's profitability and long-term viability; risks associated with the nature of mineral exploration and development, including that there can be no certainty that mineral deposits containing mineral reserves will be discovered or that, when discovered, such reserves will be economically viable; regulatory and international trade risks; risks associated with title to mineral properties; risks associated with acquisitions; risks associated with mining operations, including permitting risks, availability of infrastructure and personnel; economic risks associated with mineral exploration and development; risks associated with uncertainty relating to the estimation of mineral resources; risks associated with uncertainty relating to future production, development plans, and costs of the Spor Mountain Project; risks associated with the construction and development of the Spor Mountain Project and the Delta Processing Site; risks associated with uncertainty relating to estimate of future production; risks associated with uncertainty relating to production costs and its estimation; the fact that mineral reserves have not been established for the Spor Mountain Project; the Company entering into production at the Spor Mountain Project without a feasibility study or pre-feasibility study; surface rights risks; risks associated with uncertainty relating to pre-existing environmental liabilities; risks associated with community relations and relationships with non-governmental organizations and other third parties, including the ability of the Company to obtain their approvals, as necessary; health, safety, and environmental hazards; risks associated with the Company being a publicly listed entity on the CSE, including with the risk for future dilution and price volatility; risks associated with the limited number of customers for fluorspar; risks associated with conflicts, including wars; conflicts of interest; insurance risks; competition; tax; litigation; information technology and cyber security; global financial conditions; dependence on key personnel; dependence on outside parties; infectious diseases; internal controls; and the other risks and uncertainties discussed in the Company's management's discussion and analysis for the fiscal year ended September 30, 2025, a copy of which is available under the Company's profile on SEDAR+ at www.sedarplus.ca and should be considered carefully. Many of these uncertainties and contingencies can affect the Company's actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Prospective investors should not place undue reliance on any forward-looking information. Although the forward-looking information contained in this AIF is based upon what management believes, or believed at the time, to be reasonable assumptions, there can be no assurance that actual results will be consistent with such forward-looking information, as there may be other factors that cause results not to be as anticipated, estimated or intended. Neither the Company nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking information. The Company does not undertake, and assumes no obligation, to update or revise any such forward-looking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by securities laws.

**Glossary of Terms and Units**

Unless the context otherwise requires, technical terms or abbreviations not otherwise defined in this AIF shall have the following meanings:

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| | |
|:---|:---|
| &nbsp;&nbsp; Term | &nbsp;&nbsp;Definition |
| &nbsp;&nbsp;Be | &nbsp;&nbsp;Beryllium. |
| &nbsp;&nbsp;F | &nbsp;&nbsp;Fluorine. |
| &nbsp;&nbsp;"feasibility study", "preliminary feasibility study", and "pre-feasibility study" | &nbsp;&nbsp;have the meanings ascribed to those terms by the Canadian Institute of Mining, Metallurgy and Petroleum, as the CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by CIM Council, as amended. |
| &nbsp;&nbsp;geotechnical | &nbsp;&nbsp;Using geology and geological engineering. |
| &nbsp;&nbsp;ha | &nbsp;&nbsp;Hectare. |
| &nbsp;&nbsp;Km | &nbsp;&nbsp;Kilometre. |
| &nbsp;&nbsp;Li | &nbsp;&nbsp;Lithium. |
| &nbsp;&nbsp;lb | &nbsp;&nbsp;Pound. |
| &nbsp;&nbsp;m | &nbsp;&nbsp;Metre. |
| &nbsp;&nbsp;mineralization | &nbsp;&nbsp;The concentration of metals and their chemical compounds within a body of rock. |
| &nbsp;&nbsp;Reserve or Mineral Reserve | &nbsp;&nbsp;The Canadian Institute of Mining, Metallurgy and Petroleum defines a "mineral reserve" as the economically mineable part of a measured or indicated mineral resource demonstrated by at least a comprehensive study of the viability of a mineral project that has advanced to a stage where the mining method, in the case of underground mining, or the pit configuration, in the case of an open pit, has been established, and where an effective method of mineral processing has been determined. This study must include a financial analysis based on reasonable assumptions of technical, engineering, operating, and economic factors and evaluation of other relevant factors which are sufficient for a person qualified under such instrument, acting reasonably, to determine if all or part of the mineral resource may be classified as a mineral reserve. This study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified. A mineral reserve includes diluting materials and allowances for losses that may occur when the material is mined. |
| &nbsp;&nbsp;Resource or Mineral Resource | &nbsp;&nbsp; The Canadian Institute of Mining, Metallurgy and Petroleum defines a "mineral resource" as a concentration or occurrence of natural, solid, inorganic or fossilized organic material in or on the Earth's crust in such form and quantity and of such a grade or quality that it has reasonable prospects for eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge.<br>Mineral resources are sub-divided, in order of increasing geological confidence, into inferred, indicated and measured categories. An inferred mineral resource has a lower level of confidence than that applied to an indicated mineral resource. An indicated mineral resource has a higher level of confidence than an inferred mineral resource but has a lower level of confidence than a measured mineral resource.<br>(1) *Inferred Mineral Resource*. An "inferred mineral resource" is that part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.<br>(2) *Indicated Mineral Resource*. An "indicated mineral resource" is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.<br>(3) *Measured Mineral Resource*. A "measured mineral resource" is that part of a mineral resource for which quantity, grade or quality, densities, shape, physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.<br>As used herein, "**Resources**" or "**Mineral Resources**" do not include reserves. |
| &nbsp;&nbsp;CaF<sub>2</sub> | &nbsp;&nbsp;Fluorite or Fluorspar. |

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**Currency Presentation**

In this AIF, unless otherwise indicated, all references to "$", "C$", "dollars" or "CAD" refer to Canadian dollars, all references to "US$" or "USD" refer to United States dollars.

The following table sets forth: (i) the rates of exchange for United States dollars expressed in Canadian dollars in effect at the end of the periods indicated; (ii) the average exchange rates in effect during such periods; (iii) the high rate of exchange in effect during such periods; and (iv) the low rate of exchange in effect during such periods, such rates, in each case, based on the daily average exchange rate for conversion of one United States dollar to Canadian dollars as reported by the Bank of Canada.

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended September 30** | **Year Ended September 30** | **Year Ended September 30** |
|  | **2025 (C$)<sup>(1)</sup>** | **2024 (C$)<sup>(1)</sup>** | **2023 (C$)<sup>(1)</sup>** |
| Closing | 1.3921 | 1.3499 | 1.3520 |
| Average | 1.3986 | 1.3609 | 1.3486 |
| High | 1.4603 | 1.3875 | 1.3856 |
| Low | 1.3491 | 1.3205 | 1.3128 |

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**Note:**

(1) Exchange rate based on the daily average rate of exchange as reported by the Bank of Canada.

On June 4, 2026, the daily average rate of exchange as reported by the Bank of Canada was US$1.00 = C$1.3896.

**Technical Information**

Certain scientific and technical information relating to the Spor Mountain Property contained in this AIF and the documents incorporated by reference herein, is derived from, and in some instances is an extract from the Technical Report (as defined herein) co-authored by Eugene Puritch, P.Eng., FEC, CET, Richard H. Sutcliffe, Ph.D, P.Geo., and Fred H. Brown, P.Geo., of P&E Mining Consultants Inc., David J. Salari, P.Eng., of D.E.N.M. Engineering Ltd., and Alan Czarnowksy, Independent Consultant, each of whom is a "qualified person" for the purposes of NI 43-101 (as defined herein). The Technical Report has been filed with the Canadian securities regulatory authorities in the provinces of Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island and Saskatchewan and is available electronically on the SEDAR+ website located at www.sedarplus.ca under the Company's SEDAR+ profile. Reference should be made to the full text of the Technical Report for a complete description of the assumptions, qualifications, references, reliances and procedures associated with the information in the Technical Report.

Certain scientific and technical disclosure contained in this AIF, and the documents incorporated by reference, has been reviewed and approved by James Walker, P. Eng., President, Chief Executive Officer and a director of the Company, and a "qualified person" (as defined in NI 43-101).

**Corporate Structure**

**The Company**

Ares Strategic Mining Inc. (the "**Company**" or "**Ares**") was incorporated under the *Business Corporations Act* (Ontario) ("**OBCA**") on November 20, 2009 as "Northern Iron Corp.". On December 6, 2016, "Northern Iron Corp." changed its name to "Lithium Energy Products Inc.". On February 13, 2020, "Lithium Energy Products Inc." changed its name to "Ares Strategic Mining Inc.". On December 6, 2023, the Company continued out of the OBCA and into the *Business Corporations Act* (British Columbia) ("**BCBCA**").

The common shares of the Company (the "**Common Shares**") are listed and posted for trading on the Canadian Securities Exchange ("**CSE**") under the trading symbol "ARS", on the OTCQX Venture Market ("**OTCQX**") under the trading symbol "ARSMF" and on the Frankfurt Stock Exchange ("**FSE**") under the trading symbol "N8I1". The Company is a reporting issuer in the provinces of Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island and Saskatchewan.

The Company's head office is located at 409 Granville St. Suite 1001, Vancouver, British Columbia V6C 1T2 and its registered and records office is located at 800 – 885 West Georgia Street, Vancouver, British Columbia V6C 3H1.

**Intercorporate Relationships**

The corporate chart that follows sets forth the Company's subsidiaries (collectively, the "**Subsidiaries**") as of the date of this AIF, together with the governing law of each of the Subsidiaries. All Subsidiaries are 100% owned, directly or indirectly, except as otherwise noted

![](ea029307701_ex4-1img2.jpg)

As used in this AIF, unless the context otherwise requires, reference to "Ares" or the "Company" means Ares Strategic Mining Inc. and the Subsidiaries.

**General Development of the Business**

The Company is a Utah based fluorspar mining and processing company. The Company is transitioning from mine development into initial mining/stockpiling and processing plant commissioning and has not yet commenced sustained commercial processing or sales of product. The Company's sole material mineral property is its "Spor Mountain" property (the "**Spor Mountain Property**", the "**Spor Mountain Project**", or the "**Property**") located approximately 72 kilometres northwest of Delta, Utah.

In nearby Delta, Utah, the Company is building its 48-acre processing site (the "**Delta Processing Site**"), which will host two plants: (1) the flotation recovery plant (the "**Flotation Plant**"), which will produce acidspar, a high-purity fluorspar product of 97%+ CaF2, and (2) the lumps plant (the "**Lumps Plant**"), which will produce industry-ready fluorspar metspar "lumps" or briquettes for use in steel manufacturing and other industries.

The Lumps Plant has been constructed and assembled on site and is currently undergoing commissioning. The Flotation Plant uses a flotation process that uses water and reagents to separate fluorspar from gangue minerals, creating a froth layer that can be collected, leaving the unwanted gangue behind. This results in a higher-grade product with improved recoveries. The critical mineral gallium was identified in prior analytical work, and subsequent laboratory work has also identified germanium.

Fluorspar is the commercial name for the naturally occurring mineral fluorite, composed of calcium and fluorine. Fluorspar is the predominant commercial source for the chemical element fluorine - a non-metallic element and the lightest of the halogens, therefore largely irreplaceable in its use. It has many applications, including steel production, refrigeration, cement, glass, and lithium-ion battery production. There are two principal commercial grades of fluorspar: metallurgical grade (60-96% CaF2) and acid grade (+97% CaF2). Ares is currently setting up operations to produce both grades of fluorspar using its two already purchased plants.

The following is a summary of the Company's development over the three most recently completed financial years.

**Three Year History**

 ****

***Events Subsequent to September 30, 2025***

On May 13, 2026, the Company announced the completion of major infrastructure milestones at the Delta Processing Site, including installation of the plant's conveyor belt system and the completion of the facility's electrical and motor control center systems.

On February 18, 2026, the Company announced the commencement of mining operations at its Spor Mountain Property, with several thousands of tons of fluorspar mined and stockpiled at surface in preparation for processing at the Delta Processing Site.

On February 5, 2026, the Company announced an expedited roadmap to the production of acidspar to meet its U.S. Department of Defense Indefinite Deliver / Indefinite Quantity contract obligations (the "**DoD Contract**"), including accelerated expansion of mining activities at the Spor Mountain Property and fast tracking the construction of the Flotation Plant at the Delta Processing Site.

On February 5, 2026, the Company also closed a non-brokered private placement offering (the "**2026 LIFE Offering**") of units of the Company (each, a "**2026 LIFE Offering Unit**") by issuing 16,666,666 2026 LIFE Offering Units at a price of $0.60 per 2026 LIFE Offering Unit, for aggregate gross proceeds of $9,999,999.60 pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 – *Prospectus Exemptions* (the "**LIFE Exemption**"). Each 2026 LIFE Offering Unit consisted of one Common Share and one-half (1/2) of one Common Share purchase warrant (each whole warrant, a "**2026 LIFE Offering Warrant**"). Each 2026 LIFE Offering Warrant is exercisable into one Common Share (each, a "**2026 LIFE Offering Warrant Share**") at a price of $0.75 per 2026 LIFE Offering Warrant Share for a period of two years following the date of issuance.

In connection with the closing of the 2026 LIFE Offering, an aggregate of $699,999.97 was paid in cash and a total of 1,166,667 finder's warrants of the Company (each, a "**2026 LIFE Offering Finder's Warrant**") were issued to Ventum Financial Corp. as finder's fees. Each 2026 LIFE Offering Finder's Warrant entitles the holder thereof to acquire one Common Share (each, a "**2026 LIFE Offering Finder's Warrant Share**") at a price of $0.75 per 2026 LIFE Offering Finder's Warrant Share for a period of two years following the closing date of the 2026 LIFE Offering.

On January 26, 2026, the Company announced that it had issued an aggregate of 6,400,000 Options (as defined herein) to directors and officers of the Company, each exercisable at a price of $0.63 per Common Share and expiring on January 23, 2028.

On January 20, 2026, the Company announced that it had been awarded the five-year DoD Contract with an initial award value of approximately US$168.9 million and potential task orders of up to US$250 million, establishing the Company as a domestic supplier of acid-grade fluorspar to the U.S. government.

On December 5, 2025, the Company announced significant infrastructure and construction advancements at its Spor Mountain Project, including the completion of critical underground mine infrastructure at the Lost Sheep Mine (as defined herein) and substantial progress on processing plant construction at the Delta Processing Site, positioning the project for industrial-scale production.

On November 3, 2025, the Company announced the completion and activation of its secondary underground ventilation system at the Spor Mountain Property, satisfying Mine Safety and Health Administration ("**MSHA**") standards.

On October 21, 2025, the Company announced that it had closed the second and final tranche of the 2025 October LIFE Offering (as defined herein) by issuing 12,221,889 2025 October LIFE Offering Units (as defined herein) for aggregate gross proceeds of $5,499,850, bringing total gross proceeds of $10,499,850.45 under the 2025 October LIFE Offering.

An aggregate of $267,965.98 was paid in cash and a total of 595,480 finder's warrants of the Company (each, a "**2025 October LIFE Offering Finder's Warrant**") were issued as finder's fees to arm's length parties. Each 2025 October LIFE Offering Finder's Warrant entitles the holder thereof to acquire one Common Share (each, a "**2025 October LIFE Offering Finder's Warrant Share**") at a price of $0.55 per 2025 October LIFE Offering Finder's Warrant Share for a period of two years following the closing date of the second tranche.

Concurrently with closing the second tranche, the Company entered into certain hedging arrangements with Sorbie Bornholm LP ("**Sorbie**") governed by an ISDA Master Agreement dated August 23, 2024 and a sharing agreement dated October 20, 2025 (the "**Sharing Agreement 3**"). Pursuant to the terms of the Sharing Agreement 3, the gross proceeds payable by Sorbie for Units pursuant to the 2025 Amended LIFE Offering (being $1 million) (the "**Posted Support**") were used to acquire UK government bonds as credit support to secure the Company's maximum potential exposure under the Sharing Agreement 3, with Sorbie retaining control and direction of such proceeds (including both the economic benefit and the risk resulting from fluctuations in the bond pricing and foreign exchange) until they are released back to the Company in accordance with the terms of the Sharing Agreement 3.

The hedging transactions governed by the Sharing Agreement 3 will be determined and payable in 24 monthly settlement tranches based on the volume weighted average price of the Common Shares for the 20 trading days prior to each monthly settlement date measured against a benchmark price of $0.63 (the "**Benchmark Price**"). On each such settlement date, Sorbie will release a portion of the Posted Support determined in reference to such volume weighted average ($41,667 per month). If the measured Common Share price is equal to the Benchmark Price for each of the 24 monthly settlement tranches, the Company will receive cash payments totaling $1 million. If the measured Common Share price exceeds the Benchmark Price, the Company will receive more than 100% of the settlement payable that month on a pro rata basis. Similarly, if the measured Common Share price is below the Benchmark Price, the Company will receive less than 100% of the settlement payable that month on a pro rata basis, with the result that if the measured Common Share price is below the Benchmark Price for a period of time, the Company will receive less than $1 million. To date, Ares has received approximately 12% extra cash under the Sharing Agreement 1 and the Sharing Agreement 2 (as defined herein) (and together with the Sharing Agreement 3, the "**Sharing Agreements**") with Sorbie, without issuing any additional shares.

On October 17, 2025, in connection with the 2025 October LIFE Offering, the Company filed an amended and restated offering document to amend the terms of the 2025 October LIFE Offering to increase the offering size and offer up to an aggregate of 23,333,332 2025 October LIFE Offering Units for total gross proceeds of up to $10,499,999.40 (including the 11,111,112 2025 October LIFE Offering Units issued in the first tranche of the 2025 October LIFE Offering).

On October 17, 2025 the Company announced that it had closed the first tranche of the 2025 October LIFE Offering by issuing 11,111,112 2025 October LIFE Offering Units for aggregate gross proceeds of $5,000,000.40.

On October 10, 2025, the Company announced a proposed non-brokered private placement offering pursuant to the LIFE Exemption (the "**2025 October LIFE Offering**") consisting of up to 22,222,222 units of the Company (each, a "**2025 October LIFE Offering Unit**") at a price of $0.45 per 2025 October LIFE Offering Unit, for gross proceeds of up to $9,999,999.90. Each 2025 October LIFE Offering Unit consisted of one Common Share and one-half (1/2) of one Common Share purchase warrant (each whole warrant, a "**2025 October LIFE Offering Warrant**"). Each 2025 October LIFE Offering Warrant is exercisable into one Common Share (each, a "**2025 October LIFE Offering Warrant Share**") at a price of $0.55 per 2025 October LIFE Offering Warrant Share for a period of two (2) years following the date of issuance.

 ****

***2025***

On September 16, 2025, the Company reported results from its ongoing materials analysis program in partnership with Iowa State University ("**ISU**") and Ames National Laboratory. Initial laboratory results confirmed the presence of germanium (Ge), in addition to the previously discovered gallium (Ga) within Ares' fluorspar samples from its Spor Mountain Project.

On September 11, 2025, the Company provided a major construction update on the Lumps Plant being built at the Delta Processing Site. Following months of mobilization and site preparation, construction of the Lumps Plant reached an advanced stage with all concrete foundations and pads poured and completed, steel frame structures being erected, major vessels fabricated and welded into place, conveyor systems being assembled and mounted, and additional structural supports being bolted.

On July 31, 2025, the Company announced the initiation of a collaborative research program with ISU and the Ames National Laboratory, aimed at unlocking the potential of gallium extraction from the Company's fluorspar sourced from its Spor Mountain Project. Under this agreement, ISU's Microelectronics Research Center in association with the Materials Analysis Research Lab will lead a two-phase research program to evaluate and extract trace gallium from Ares' mineral samples using an alkaline process inspired by the Bayer method, traditionally used for aluminum production.

On July 8, 2025, the Company announced that it had received increased non-dilutive cash injection through its Sharing Agreement 1 and Sharing Agreement 2 with Sorbie. In the latest monthly settlement, the Company received a +12% cash gain from Sharing Agreement 1 and a +31% cash gain from Sharing Agreement 2.

On June 16, 2025, the Company announced the active ramp-up of operations at the Lost Sheep Mine and the Delta Processing Site, with development partner Provo Mining & Construction, Inc. ("**Provo Mining**") and their expert team on site and working to prepare the Lost Sheep Mine and Delta Processing Site for full-scale operations.

On June 2, 2025, the Company announced the successful acquisition of an $11 million loan from the Utah State Legislature and the Utah Community Impact Board. This significant financial backing will accelerate the mining and processing of fluorspar and gallium at the Spor Mountain Project and the Delta Processing Site.

On April 9, 2025, the Company announced the issuance of 7,229,730 units of the Company (each, an "**April 2025 Unit**") at a price of $0.1998 per April 2025 Unit. Each April 2025 Unit consisted of one Common Share and one Common Share purchase warrant (each, a "**2025 April Warrant**"). Each April 2025 Warrant is exercisable into one Common Share (each, a "**2025 April Warrant Share**") at a price of $0.2405 per 2025 April Warrant Share for a period of three (3) years following the closing date.

On April 2, 2025, the Company announced an increase in institutional investment from Sorbie.

On March 19, 2025, the Company announced the acquisition of key underground mining equipment, including the Cat R1300G Underground Loader.

On January 15, 2025, the Company and Sorbie entered into a second sharing agreement (the "**Sharing Agreement 2**").

On December 19, 2024, the Company announced the acquisition of the heavy mining equipment critical to the advancement of the Spor Mountain Property. As part of its ongoing efforts to manage the development of the Company, the Company entered several arrangements to further the business interests.

On December 16, 2024, the Company announced its inclusion as a key subcontractor in one of six winning bids awarded by the U.S. Department of Energy. The $3.4 billion initiative is part of a national strategy to significantly expand the production capacity of Low Enriched Uranium. Under the contract, the Company will supply and develop its high-grade acidspar, a vital mineral used in manufacturing hydrofluoric acid and fluorine, critical for uranium enrichment.

On December 12, 2024, the Company announced the arrival of its Flotation Plant at the Delta Processing Site, which had been fabricated off-site.

On October 7, 2024, the Company closed the second and final tranche of the 2024 August LIFE Offering (as defined herein) by issuing 765,170 2024 August LIFE Offering Units (as defined herein) for aggregate gross proceeds of $137,730.60.

 ****

***2024***

On September 26, 2024, the Company announced the completion of the fabrication of its Flotation Plant.

On September 13, 2024, the Company announced that it had closed the first tranche of the 2024 August LIFE Offering by issuing 9,017,772 2024 August LIFE Offering Units. Of these, 101,106 2024 August LIFE Offering Units were issued for aggregate gross proceeds of $18,199, while 8,916,666 2024 August LIFE Offering Units were issued in connection with the hedging arrangements with Sorbie, as described below'

On September 13, 2024, the Company also entered into certain hedging arrangements with Sorbie governed by an ISDA Master Agreement dated August 23, 2024 and a sharing agreement dated August 23, 2024 (the "**Sharing Agreement 1**").

On August 22, 2024, the Company announced a proposed non-brokered private placement offering pursuant to the LIFE Exemption (the "**2024 August LIFE Offering**") consisting of a minimum of 2,777,778 units of the Company (each, a "**2024 August LIFE Offering Unit**") and a maximum of 11,666,667 2024 August LIFE Offering Units at a price of $0.18 per 2024 August LIFE Offering Unit, for gross proceeds of a minimum of $500,000 and a maximum of $2,100,000. Each 2024 August LIFE Offering Unit consists of one Common Share and one Common Share purchase warrant (each, a "**2024 August LIFE Offering Warrant**"). Each 2024 August LIFE Offering Warrant is exercisable into one Common Share (each, a "**2024 August LIFE Offering Warrant Share**") at a price of $0.26 per 2024 August LIFE Offering Warrant Share for a period of two years following the date of issuance. The Company intended to use the net proceeds to pay for the ongoing construction and installation of a secondary ventilation system at the Spor Mountain Property to meet MSHA requirements and for general and corporate working capital purposes.

On August 13, 2024, the Company announced that mineworks installations had reached the depths required from the mine plan to begin extracting the fluorspar mineralization.

On August 1, 2024, the Company announced that it had closed the fifth and final tranche of the 2024 May LIFE Offering by issuing 1,361,854 2024 May LIFE Offering Units for aggregate gross proceeds of $245,133.72.

On July 18, 2024, the Company announced that it had closed the fourth tranche of the 2024 May LIFE Offering by issuing 943,722 2024 May LIFE Offering Units for aggregate gross proceeds of $169,869.96.

On July 2, 2024, the Company announced that it had closed the third tranche of the 2024 May LIFE Offering by issuing 2,009,651 2024 May LIFE Offering Units for aggregate gross proceeds of $361,737.18.

On June 18, 2024, the Company announced that it had filed an amended and restated offering document in connection with the 2024 May LIFE Offering. The 2024 May LIFE Offering, as amended by the amended and restated offering document, removed the minimum offering amount and revised the 2024 May LIFE Offering to up to 16,111,111 2024 May LIFE Offering Units for gross proceeds of up to $2,900,000.

On June 10, 2024, the Company announced the acceleration of its mine building activities at the Lost Sheep Mine and its ramp installation to intersect fluorspar mineralization.

On June 7, 2024, the Company announced that it had closed the second tranche of the 2024 May LIFE Offering by issuing 5,537,277 2024 May LIFE Offering Units for aggregate gross proceeds of $996,709.86.

On May 31, 2024, the Company announced that it had closed the first tranche of the 2024 May LIFE Offering by issuing 5,984,986 2024 May LIFE Offering Units for aggregate gross proceeds of $1,077,297.28.

On May 10, 2024, the Company announced a proposed non-brokered private placement offering (the "**2024 May LIFE Offering**") consisting of a minimum of 5,555,555 units of the Company (each, a "**2024 May LIFE Offering Unit**") and a maximum of 22,222,222 2024 May LIFE Offering Units at a price of $0.18 per 2024 May Life Offering Unit, for gross proceeds of a minimum of $1,000,000 and a maximum of $4,000,000. Each 2024 May LIFE Offering Unit consisted of one Common Share and one Common Share purchase warrant (each, a "**2024 May LIFE Offering Warrant**"). Each 2024 May LIFE Offering Warrant entitles the holder to acquire one Common Share (each, a "**2024 May LIFE Offering Warrant Share**") at a price of $0.26 per 2024 May LIFE Offering Warrant Share for a period of two years following the date of issuance.

On March 27, 2024, the Company announced the signing of a memorandum of understanding with Cremer Erzkontor Inc. ("**Cremer**") for Cremer to act as Sales Agent for metspar production for the Spor Mountain Property.

On March 25, 2024, the Company announced the completion of the mine planning phase and commencement of mine construction. The Company began ramp installation work to intersect fluorspar mineralization and provide feed for the plant currently under construction at the Spor Mountain Property.

On February 22, 2024, the Company announced the discovery of new and additional fluorspar mineralization at the Spor Mountain Property. The Company undertook core diamond drilling to delineate the placement and design of installations to facilitate mining operations scheduled for later in 2024. As drilling progressed, drill holes reached depths not previously investigated, and new high-grade fluorspar mineralization were discovered connected to the initial mining targets selected for preliminary production plans, expanding the potential of those targets.

On February 14, 2024, the Company announced that it had commenced mine preparation, construction and installation work at the Spor Mountain Property, including delineation drilling to inform ramp installation work.

On February 8, 2024, the Company announced that it had successfully completed its steel infrastructure purchase and commenced fabrication of the steel in anticipation of construction in 2024.

On February 1, 2024, the Company announced that it had completed all payments to purchase, fabricate, and assemble its Flotation Plant.

On January 9, 2024, the Company announced that it had entered into an agreement with Provo Mining to prepare the Company's Spor Mountain Property for producing fluorspar feed for its anticipated fluorspar production operations.

On December 22, 2023, the Company announced that it closed a State of Utah backed financing of over $14,000,000 CAD for the purposes of purchasing, constructing, and commissioning the Flotation Plant at the Delta Processing Site, a new, advanced, and the only facility of its kind in the country, acidspar manufacturing facility.

On December 15, 2023, the Company's Subsidiary, Ares Utah, entered into a loan agreement with Millard County, Utah ("**Millard County**") pursuant to a US$10,000,000 tax-exempt Manufacturing Facility Revenue Bond and a US$500,000 taxable Manufacturing Facility Revenue Bond (collectively, the "**Millard Bond**").

On December 7, 2023, the Company announced that it was continued from the laws of the province of Ontario to the laws of the province of British Columbia pursuant to the *Business Corporations Act* (British Columbia) as of December 6, 2023.

On October 10, 2023, the Company completed the planning permission approval process, authorizing the Company to fully construct and commission its Lumps Plant at its Delta Processing Site.

 ****

 ****

***2023***

On September 15, 2023, the Company announced that it had completed its previously announced plan of arrangement, including the spin-off of its wholly owned subsidiary, Enyo Strategic Mining Inc. ("**Enyo**") Under the arrangement, shareholders of the Company received one new Common Share of Ares and 0.1 of an Enyo common share for each existing Common Share of Ares held, following which Enyo became a separate unlisted reporting issuer and assumed ownership of the Liard and Vanadium Ridge properties in British Columbia.

On September 14, 2023, the Company announced that it had contracted SFC Tec, Inc. ("**SFC Tec**") to complete the construction and commissioning of its processing plant at the Delta Processing Site. SFC Tec commenced site preparation, equipment assembly and permitting work in connection with construction at the Delta Processing Site.

On August 3, 2023, the Company announced that it has detected germanium and gallium in its fluorspar, following assaying conducted by SGS Canada Inc. ("**SGS**").

On July 26, 2023, the Company announced the completion of the fabrication of the new conveyor belt system for its metallurgical Lumps Plant and planned fluorspar manufacturing operation at the Delta Processing Site.

On July 11, 2023, the Company announced the completion of the tailings storage facility design work for its upcoming manufacturing and processing fluorspar operation at the Delta Processing Site.

On May 2, 2023, the Company announced that it was identified in the 2023 Utah Economic Report to the Governor as being "poised to become the nation's only fluorspar producer" through the revival of the Lost Sheep Mine. The Company also announced that it had recently secured financing supported by the U.S. Department of Agriculture and had been re-awarded a US$10 million bond by the State of Utah to support the development of a larger manufacturing facility, the Delta Processing Site.

On April 25, 2023, the Company announced that it had completed construction of its Millard County rail spur in Utah and had entered into a lease agreement with Union Pacific Railroad. Completion of the rail spur enables bulk shipment of future products across North America and provides nationwide delivery access for its industrial customers.

On April 18, 2023, the Company announced that it had purchased, and received title of the Spor Mountain Property.

On April 11, 2023, the Company announced that it had closed a US$4,420,000 (approximately C$6.0 million) non-dilutive loan financing from the U.S. Department of Agriculture under its Business and Industry Guaranteed Loan Program. The Company arranged this non-dilutive financing to exclusively develop the Company's manufacturing operation at the Spor Mountain Property.

On February 10, 2023, the Company announced that it had issued an aggregate of 22,238,053 Options to its directors and officers, each exercisable at a price of $0.13 per Common Share and expiring on February 10, 2025. The Company also announced that it had issued 301,694 Common Shares at a deemed price of $0.15 per Common Share to settle $45,254 of outstanding indebtedness for past consulting services.

On December 16, 2022, Ares announced that it had closed the second tranche of the 2022 Debenture Offering of 2022 Debentures for aggregate proceeds of $45,980.00.

On December 8, 2022, the Company announced that it had closed the first tranche of a non-brokered private placement offering (the "**2022 Debenture Offering**") of secured convertible debentures ("**2022 Debentures**") for aggregate gross proceeds of $643,005. The 2022 Debentures bear interest at a rate of 12% per annum, mature two years from issuance, and are convertible into Common Shares at a price of $0.26 per Common Share, with the proceeds intended to fund potential acquisitions in the mineral resource sector and for general working capital purposes.

On October 11, 2022, the Company announced that it had entered into an arrangement agreement with its wholly owned subsidiary, Enyo, pursuant to which the Company intended to spin out its Liard and Vanadium Ridge properties in British Columbia to Enyo by way of a statutory plan of arrangement. Under the arrangement, the Company's shareholders would receive 0.1 of an Enyo common share for each Common Share held on a pro rata basis, following which Enyo was expected to become a separate reporting issuer and the Company would focus on the development of its U.S. fluorspar properties.

**Description of the Business**

**Overview of the Business**

The Company is a Utah based fluorspar mining and processing company. The Company is transitioning from mine development into initial mining/stockpiling and processing plant commissioning and has not yet commenced sustained commercial processing or sales of product. The Company's sole material mineral property is its Spor Mountain Property located approximately 72 kilometres northwest of Delta, Utah. In nearby Delta, Utah, the Company is building its Delta Processing Site, which will host two plants: (1) the Flotation Plant, which will produce acidspar, a high-purity fluorspar product of 97%+ CaF2, and (2) the Lumps Plant, which will produce industry-ready fluorspar metspar "lumps" or briquettes for use in steel manufacturing and other industries.

The Lumps Plant has been constructed and assembled on site and is currently undergoing commissioning. The Flotation Plant uses a flotation process that uses water and reagents to separate fluorspar from gangue minerals, creating a froth layer that can be collected, leaving the unwanted gangue behind. This results in a higher-grade product with improved recoveries. The critical mineral gallium was identified in prior analytical work, and subsequent laboratory work has also identified germanium.

As of the date of this AIF, the Company considers the Spor Mountain Project to be its sole material mineral property for the purposes of National Instrument 43-101 – *Standards for Disclosure for Mineral Projects* ("**NI 43-101**"), which is the subject of a NI 43-101 technical report with an effective date of September 17, 2021, entitled "Technical Report on the Lost Sheep Fluorspar Property, Juab County, Utah, U.S.A." co-authored by Eugene Puritch, P.Eng., FEC, CET, Richard H. Sutcliffe, Ph.D, P.Geo., and Fred H. Brown, P.Geo., of P&E Mining Consultants Inc., David J. Salari, P.Eng., of D.E.N.M. Engineering Ltd., and Alan Czarnowksy, Independent Consultant and filed on the Company's profile on SEDAR+ at www.sedarplus.ca on September 28, 2021 (the "**Technical Report**").

The Company acquired the Spor Mountain Property in 2020 pursuant to a three-cornered amalgamation with American Strategic Minerals Inc. The Spor Mountain Property is owned by the Company's wholly-owned Utah subsidiary, Ares Strategic Mining Inc. (previously defined as "**Ares Utah**"), and is currently comprised of 302 mining claims prospective for fluorite covering an area of approximately 5,765 acres. The Technical Report is in respect of 111 claims covering approximately 2,283 acres. The Company has acquired additional claims since the date of the Technical Report, and as of the date of this AIF, the Spor Mountain Property is comprised of 302 claims covering 5,765 acres.

The Spor Mountain Property includes the Lost Sheep mine (the "**Lost Sheep Mine**"), a fully permitted, past-producing fluorspar mine. The Company is focused on developing the Lost Sheep Mine towards the production and supply of high-purity metspar and acidspar fluorite grades.

Ares has not completed a feasibility study on, nor has Ares completed a mineral reserve or mineral resource estimate at the Lost Sheep Mine and as such the financial and technical viability of the Spor Mountain Property is at higher risk than if this work had been completed. Based on historical engineering work, geological reports, historical production data and current engineering work completed or in progress by Ares, Ares intends to move forward with the development of the Spor Mountain Property. Ares further cautions that it is not basing any production decision on a feasibility study of mineral reserves demonstrating economic and technical viability, and therefore there is a much greater risk of failure associated with its production decision.

Companies typically rely on comprehensive feasibility reports on mineral reserve estimates to reduce the risks and uncertainties associated with a production decision. Historically, situations where the issuer decides to put a mineral project into production without first establishing mineral reserves supported by a technical report and completing a feasibility study have a higher risk of economic or technical failure, though some industrial mineral ventures are relatively simple operations with low levels of investment and risk, where the operating entity has determined that a formal prefeasibility or feasibility study in conformance with NI 43-101 and Companion Policy 43-101CP to NI 43-101 is not required for a production decision.

Ares has decided to proceed without established mineral resources or mineral reserves, based on historical engineering work, geological reports, historical production data and current engineering work completed or in the process by Ares, the Company intends to move forward with the development of the Spor Mountain Property and initial mining/stockpiling at the Spor Mountain Property and plant commissioning at the Delta Processing Site.

For further information about the Company, refer to its filings with the Canadian Securities Authorities which may be obtained through the Company's SEDAR+ profile at www.sedarplus.ca.

**Principal Markets, Distribution Methods and Products**

The Company is transitioning from mine development into initial mining/stockpiling and processing plant commissioning and has not yet commenced sustained commercial processing or sales of product. The Company's ability to reach commercial production is dependent on several factors. See "*Risk Factors*" generally and in particular the risk factors under the headings "*No History of Commercial Mineral Production*", "*Nature of Mineral Exploration and Development*", "*Economics of Developing Mineral Properties*", "*The Technical Report does not contain production, development plans or costs estimates associated with the Lost Sheep Mine*", "*Construction and Development of the Spor Mountain Project and the Delta Processing Site*", "*Production Estimates*", "*Cost Estimates*", "*Mineral Reserves Have Not Been Established for the Spor Mountain Project*", and "*The Company is Entering into Production at the Spor Mountain Project and Delta Processing Site without a Feasibility Study or Pre-Feasibility Study*".

The Company's Lost Sheep Mine is currently the only permitted fluorspar mine in the United States. Fluorspar is an industrial and critical mineral. According to the United States Geological Survey, excluding sales from the National Defense Stockpile, U.S. apparent consumption of fluorspar was 100% net import reliant in 2025. It is a vital component of United States industry, used in the production of steel, aluminium, refrigeration units, cement, hydrofluoric acid, fluorine, electronics and touch screens, Teflon, and electric batteries.

Under the DoD Contract, the Company has agreed to deliver acidspar to the U.S. government within 36 months after the issuance of each delivery order. On January 20, 2026, the Company announced a five-year DLA IDIQ contract with an estimated initial award value of approximately US$168.9 million and potential task orders up to US$250 million. Delivery timing will depend on issued delivery orders and contract terms.

Ares is installing a professional staff able to manage the mining operations at the Lost Sheep Mine.

**Production**

The Company has recently commenced mining operations at its Spor Mountain Property, with several thousand tons of fluorspar mined and stockpiled at surface at its Spor Mountain Property, in preparation for processing at the Delta Processing Site. The Company is focused on finalizing the Delta Processing Site, including the Flotation Plant and the Lumps Plant.

**Specialized Skill and Knowledge**

The Company's business requires specialized skill and knowledge in the areas of geology, mineral exploration, business negotiations, including with certain third-party stakeholders including government entities, accounting, law, environmental compliance and management. In order to attract and retain personnel with such skills and knowledge, the Company maintains competitive remuneration and compensation packages.

In the exploration stage, geoscientists are employed to analyze geophysical, pre-existing technical data (if any) and other information to identify potential areas to explore for minerals. Once targets are identified and captured, third party firms are hired to provide the equipment and expertise required to safely explore for minerals. If and when minerals are discovered, third party engineering, procurement and construction firms will be engaged to design and construct the gathering system and processing facility. Field operators will be hired to operate the facility.

To date, the Company has been able to locate and retain such employees and consultants and believes it will continue to be able to do so. The management team and directors of the Company have extensive experience in all areas as well as established relationships to engage third parties where needed.

Ares is soliciting and contracting the services of construction and processing specialists to construct industrial scale plant installation to commission two high-capacity facilities (the Lumps Plant and the Flotation Plant at the Delta Processing Site) able to process all excavated fluorspar mineralization removed from the Spor Mountain Property.

See "*Risk Factors*" generally and in particular the risk factors under the heading "*Availability and Costs of Infrastructure, Energy and Other Commodities*" and "*Dependence on Outside Parties*".

**Competitive Conditions**

The fluorite exploration and mining business is competitive in all phases of exploration, development and production and competition in the mineral exploration and production industry can be significant at times; however, the fluorite industry is small compared to other commodity industries. Fluorite demand is international in scope, but supply is characterized by a relatively small number of companies operating in only a few countries. Fluorite production is concentrated amongst a limited number of producers and is also geographically concentrated in certain specific areas.

The Company competes with a number of other companies that have resources significantly in excess of those of the Company, in the exploration, development and production of its properties and in the search for and the acquisition of qualified service providers, labour, equipment and suppliers. There can be no assurance that additional capital or other types of financing will be available if needed or that, if available, the terms of such financing will be favourable to the Company. Factors beyond the control of the Company may affect the marketability of fluorspar ultimately mined or discovered by the Company. See "*Risk Factors*" generally and in particular the risk factors under the heading "*Competition*".

**New Products**

The Company is building its Delta Processing Site, which will host two plants: (1) the Flotation Plant, which will produce acidspar, a high-purity fluorspar product of 97%+ CaF2, and (2) the Lumps Plant, which will produce industry-ready fluorspar metspar "lumps" or briquettes for use in steel manufacturing and other industries. The production of both acidspar and fluorspar metspar "lumps" or briquettes are new products. The status of these new products is described in more detail elsewhere in this AIF. The Company is focused on finalizing the Delta Processing Site, including the Flotation Plant and the Lumps Plant to move towards production and distribution of these new products.

**Components**

The Company uses, or may use, critical components such as water, electrical power, explosives, diesel and propane in its business, all of which are readily available, although pricing may fluctuate in the ordinary course.

**Business Cycle & Seasonality**

The mining business is subject to commodity price cycles. The marketability of minerals and mineral concentrates is also affected by worldwide economic cycles, which could have a significant impact on the operations of the Company, including resulting in the Company determining to cease work on, or dropping its interest in, some or all of its properties, or shifting its focus to other properties or projects. In addition to commodity price cycles and recessionary periods, exploration activity may also be affected by seasonal and irregular weather conditions in the areas where the Company operates or expects to operate.

However, the Company's business is not highly seasonal from an operational and access standpoint. In Utah, where the Company's Spor Mountain Property and Delta Processing Site are located, established infrastructure and a comparatively mild climate (hot dry summers and cool, relatively arid winters with average temperatures ranging from a summer maximum of 30°C (July) to minimum of -8°C (January)) allow exploration and construction work to occur year round.

Occasionally, significant weather events may delay or alter planned exploration programs, which may lead to material increases in exploration and development costs incurred by the Company. Additionally, prospecting, mapping and surface bedrock sampling activities may be limited by snow cover during winter periods with minor delays due to periodic snowstorms.

**Economic Dependence**

The Company's business is not substantially dependent on any single commercial contract or group of contracts either from suppliers or contractors.

**Changes to Contracts**

It is not expected that the Company's business will be materially affected in the current financial year by the renegotiation or termination of any contracts or sub-contracts.

**Environmental Protection**

The Company's exploration activities are subject to various levels of federal and state laws and regulations relating to the protection of the environment. Environmental legislation provides for restrictions and prohibitions of spills, releases or emissions of various substances related to the mining industry operations, which could result in environmental pollution. A breach of such legislation may result in imposition of fines and penalties. In addition, certain types of operations require submissions to and approval of environmental impact assessments. Environmental assessment of proposed projects carries a heightened degree of responsibility for companies and directors, officers and employees/consultants.

To the best of management's knowledge, the Company's activities in 2025 were, and continue to be, in compliance in all material respects with such environmental regulations applicable to its development and exploration activities. The Company is also committed to complying with all relevant industry standards, legislation and regulations in the countries where it carries on business. The Company's current mining and exploration activities are subject to BLM, UDOGM (as defined herein) and MSHA requirements, including approved plans of operations and reclamation bonding, and the Company believes it is in material compliance as of the date of this AIF.

Due to the stage of the Company's activities, environmental protection requirements have had a minimal impact on the Company's capital expenditures and competitive position. If needed, the Company will make and will continue to make expenditures to ensure compliance with applicable laws and regulations. New environmental laws and regulations, amendments to existing laws and regulations, or more stringent implementations of existing laws and regulations could have a material adverse effect on the Company by potentially increasing capital and/or operating costs. See "*Risk Factors*" generally and in particular the risk factors under the headings "*Pre-existing Environmental Liabilities*", "*Health, Safety and Environmental Risks and Hazards*", "*Insurance and Uninsured Risks*", "*Nature and Climatic Conditions*", and "*Climate Change*".

**Employees**

As at September 30, 2025, the Company had no employees and 24 contractors. As of the date of this AIF, the Company has no employees and 33 contractors.

The Company believes its success is dependent on the performance of its management team and key individuals, many of whom have specialized skills in exploration, development and production in the mining industry. The Company believes it has adequate personnel with the specialized skills required to carry out its operations and anticipates making ongoing efforts to match its workforce capabilities with its business strategy for its operations as it evolves.

**Foreign Operations**

The Company is incorporated pursuant to the laws of the Province of British Columbia and is a reporting issuer in the provinces of Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island and Saskatchewan. The Company's assets are principally located outside of Canada, in Utah, United States.

The Company's operations and investments may be affected by local political and economic developments, including expropriation, invalidation of government orders, permits or agreements pertaining to property rights, political unrest, labour disputes, limitations on repatriation of earnings, limitations on mineral exports, limitations on foreign ownership, inability to obtain or delays in obtaining necessary mining permits, opposition to mining from local, environmental or other non-governmental organizations, government participation, royalties, duties, rates of exchange, high rates of inflation, price controls, exchange controls, currency fluctuations, taxation and changes in laws, regulations or policies as well as by laws and policies of Canada affecting foreign trade, investment and taxation. For more information, please see "*Risk Factors – Foreign Operations Risks*".

**Social and Environmental Policies**

The Company is committed to carrying out all of its activities in an ethical manner that prioritizes health and safety, recognizes the concerns of Native American tribes, communities, local stakeholders, and preserves the natural environment. The Company ensures that all employees are trained and instructed in their assigned tasks and that safety procedures are followed at all times. The importance of ethical behavior and preservation of the natural environment is stressed to all employees and/or contractors, and all are charged with monitoring operations to ensure they are being carried out in an environmentally friendly manner. The Company ensures that it will work with and consult local communities, Native American tribes and stakeholders, recognizing this practice as a benefit to all.

**Risk Factors**

The operations of the Company are speculative due to the high-risk nature of its business which is the exploration and development of mineral properties. The following risk factors could materially affect the Company's financial condition and/or future operating results and could cause actual events to differ materially from those described in forward-looking information relating to the Company. The risks and uncertainties described below are not the only risks and uncertainties that the Company faces. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company's business.

**No History of Commercial Mineral Production**

While the Company has recently commenced mining operations at its Lost Sheep Mine, with several thousand tons of fluorspar mined and stockpiled at surface at its Spor Mountain Property, in preparation for processing at the Delta Processing Site, there is no assurance that commercial quantities of fluorspar will be discovered at any of the Company's properties nor is there any assurance that the Company's exploration programs will yield positive results. Even if commercial quantities of fluorspar are discovered, there can be no assurance that any property of the Company will ever be brought to a stage where fluorspar resources can be profitably produced. Factors which may limit the ability of the Company to produce fluorspar resources from its properties include, but are not limited to, the market price of fluorspar, availability of additional capital and financing and the nature of any mineral deposits.

**Negative Operating Cash Flow and Dependence on Third-Party Financing**

The Company has no history of earnings or of a return on investment, and there is no assurance that any of its properties or any business that the Company may acquire or undertake will generate earnings, operate profitably or provide a return on investment in the future. As a result, the Company is dependent on third- party financing to continue exploration activities on the Company's properties, maintain capacity and satisfy contractual obligations. Accordingly, the amount and timing of capital expenditures and the Company's ability to conduct further exploration activities at its properties depends on the Company's cash reserves and access to third-party financing. Failure to obtain such additional financing could result in delay or indefinite postponement of further exploration and development of the Company's properties, including the Lost Sheep Mine, or require the Company to sell one or more of its properties (or an interest therein).

Although the Company has been successful in raising funds to date, additional financing may not be available when needed, or if available, the terms of such financing might not be favourable to the Company and might involve substantial dilution to existing Company shareholders. The Company's access to third- party financing depends on a number of factors including the price of fluorspar, the results of ongoing exploration and development, any economic or other analysis performed with respect the Company's properties, a significant event disrupting the Company's business or the fluorspar industry generally, or other factors may make it difficult or impossible to obtain financing through debt, equity, or other means on favourable terms, or at all. Failure to raise capital when needed would have a material adverse effect on the Company's business, financial condition, prospects and outlook.

**Price of Fluorspar**

The Company's profitability and long-term viability depend, in large part, upon the market price of fluorspar. The price of fluorspar has historically experienced, and may experience in the future, volatility and significant price movements over short periods of time. Market price fluctuations of fluorspar could adversely affect the profitability of the Company's operations and lead to impairments and write downs of mineral properties. Historically, the fluctuations in these prices have been, and are expected to continue to be, affected by numerous factors beyond the Company's control, including but not limited to, demand for fluorspar; political and economic conditions in fluorspar producing and consuming countries; sales of excess inventories by governments and industry participants; and production levels and production costs in key fluorspar producing countries.

A decrease in the market price of fluorspar could adversely affect the price of the Common Shares and the Company's ability to finance the exploration and development of its properties, which would have a material adverse effect on the Company's future results of operations, cash flows and financial position. In addition, declining fluorspar prices can impact operations by requiring a reassessment of the feasibility of a particular project. Even if a project is ultimately determined to be economically viable, the need to conduct such a reassessment may cause substantial delays and/or may interrupt operations until the reassessment can be completed, which may have a material adverse effect on the Company's exploration and development prospects, cash flows and financial position. Depending on the price of fluorspar and other minerals, any cash flow from future mining operations may not be sufficient and the Company could be forced to discontinue production, if any, and may lose its interest in, or may be forced to sell, some of its properties (or an interest therein). Future production, if any, from the mining properties of the Company is dependent upon the prices of fluorspar and other minerals being adequate to make these properties economic.

**Nature of Mineral Exploration and Development**

The Company's future is dependent on its exploration and development programs. The exploration and development of mineral deposits involve significant financial risks over a prolonged period of time, which may not be eliminated even through a combination of careful evaluation, experience and knowledge. Few properties that are explored are ultimately developed into economically viable operating mines. Major expenditures on the Company's exploration properties may be required to construct mining and processing facilities at a site, and it is possible that even preliminary due diligence will show adverse results, leading to the abandonment of projects. It is impossible to ensure that preliminary or full feasibility studies on the Company's projects, or the current or proposed exploration programs on any of the properties in which the Company has exploration rights, will result in any profitable commercial mining operations. The Company cannot give any assurance that its current and future exploration activities will result in a discovery of mineral deposits containing mineral reserves.

Estimates of mineral resources and any potential determination as to whether a mineral deposit will be commercially viable can also be affected by such factors as: the particular attributes of the deposit, such as its size and grade; unusual or unexpected geological formations and metallurgy; proximity to infrastructure; financing costs; metal prices, which are highly volatile; and governmental regulations, including those relating to prices, taxes, royalties, infrastructure, land use, importing and exporting of metal concentrates, exchange controls and environmental protection. The effect of these factors cannot be accurately predicted, but the combination of any or all of these factors may result in the Company not receiving an adequate return on its invested capital or suffering material adverse effects to its business and financial condition. Exploration and development projects also face significant operational risks including but not limited to an inability to obtain access rights to properties, accidents, equipment breakdowns, labour disputes (including work stoppages and strikes), and other unanticipated interruptions.

**Regulatory Factors and International Trade Restrictions**

The international fluorspar industry is relatively small, highly competitive and heavily regulated. The development of mines and related facilities is contingent upon governmental approvals that are complex and time consuming to obtain and which, depending upon the location of the project, involve multiple governmental agencies. The duration and success of such approvals are subject to many variables outside of the Company's control. Any significant delays in obtaining or renewing such permits or licences in the future could have a material adverse effect on the Company.

In addition, the international marketing and trade of fluorspar is subject to potential changes in governmental policies, regulatory requirements and international trade restrictions (including trade agreements, customs, duties and taxes), which are beyond the control of the Company. Changes in regulatory requirements, customs, duties or taxes may affect the supply of fluorspar to China, North America, and Europe, which are currently the largest consumption markets for fluorspar in the world, as well as the future of supply to developing markets.

The supply of fluorspar is, to some extent, impeded by a number of international trade agreements and policies. These and any similar future agreements, governmental legislation, policies or trade restrictions are beyond the Company's control and may affect the supply of fluorspar available in China, North America, and Europe, the world's largest markets for fluorspar. If the Company achieves commercial production, but is unable to supply fluorspar to important markets in China, North America, and Europe, its business, financial condition and results of operations may be materially adversely affected. In addition, there can be no assurance that governments will not enact legislation or take other actions that restricts who can buy or supply fluorspar, which may have a material adverse effect on the price of fluorspar and the Company's financial condition and results of operations.

**Mineral Tenure**

The acquisition and maintenance of title to mineral properties is a very detailed and time-consuming process. While the Company has diligently reviewed and is satisfied with the title to the Company's projects, and, to the best of its knowledge, such title is in good standing, there is no guarantee that title to the projects will not be challenged or impugned. Title insurance is generally not available for mineral properties and the Company's ability to ensure that it has obtained secure mine tenure may be severely constrained. Third parties may have valid claims underlying portions of the Company's interests, including prior unregistered liens, agreements, royalty transfers or claims or other encumbrances and title may be affected by, among other things, undetected defects. Other parties may dispute the title to a property, or the property may be subject to prior unregistered agreements and transfers or land claims by Native American tribes. The title may also be affected by undetected encumbrances or defects or governmental actions.

The Company may not be able to register rights and interests it acquires against title to applicable mineral properties. An inability to register such rights and interests may limit or severely restrict the Company's ability to enforce such acquired rights and interests against third parties or may render certain agreements entered into by the Company invalid, unenforceable, uneconomic, unsatisfied or ambiguous, the effect of which may cause financial results yielded to differ materially from those anticipated. Although the Company believes it has taken reasonable measures to ensure proper title to the properties in which it has an interest, there is no guarantee that such title will not be challenged or impaired.

Additionally in certain cases in United States or other jurisdictions the Company may operate in the future, the mineral rights, or certain portions of them, are owned by the relevant governments. In such countries, the Company must enter into contracts with the applicable governments, or obtain permits or concessions from them, that allow the Company to hold rights over mineral rights and rights (including ownership) over parcels of land and conduct its operations thereon. The availability of such rights and the scope of operations the Company may undertake are subject to the discretion of the applicable governments and may be subject to conditions. New laws and regulations, or amendments to laws and regulations relating to mineral tenure and land title and usage thereof, including expropriations and deprivations of contractual rights, if proposed and enacted, may affect the Company's rights to its properties.

In some instances, the Company can initially only obtain rights to conduct exploration activities on certain prescribed areas, but obtaining the rights to proceed with development, mining and production on such areas or to use them for other related purposes, such as waste storage or water management, is subject to further application, conditions or licences, the granting of which are often at the discretion of the governments. In many instances, the Company's rights are restricted to fixed periods of time with limited renewal rights. Delays in the process for applying for such rights or renewals or expansions, or the nature of conditions imposed by government, could have a material adverse effect on the Company's business, including its existing developments and mines, and the Company's financial condition and results of operations.

**Acquisitions and Integration**

As part of the Company's business strategy, the Company examines opportunities to acquire additional mining assets and businesses. Any acquisition that the Company may choose to complete may be of a significant size, may change the scale of the Company's business and operations, and may expose the Company to new geographic, political, operating, financial and geological risks. The Company's success in its acquisition activities depends on its ability to identify suitable acquisition candidates, negotiate acceptable terms for any such acquisition, and integrate the acquired operations successfully with those of the Company. Any acquisitions would be accompanied by risks. For example, there may be a significant change in commodity prices after the Company has committed to complete the transaction and established the purchase price or exchange ratio; a material ore body may prove to be below expectations; the Company may have difficulty integrating and assimilating the operations and personnel of any acquired companies, realizing anticipated synergies and maximizing the financial and strategic position of the combined enterprise, and maintaining uniform standards, policies and controls across the organization; the integration of the acquired business or assets may disrupt the Company's ongoing business and its relationships with employees, customers, suppliers and contractors; and the acquired business or assets may have unknown liabilities which may be significant. In the event that the Company chooses to raise debt capital to finance any such acquisition, the Company's leverage will be increased. If the Company chooses to use equity as consideration for such acquisition, existing Company shareholders may suffer dilution. Alternatively, the Company may choose to finance any such acquisition with its existing resources. There can be no assurance that the Company would be successful in overcoming these risks or any other problems encountered in connection with such acquisitions.

**Exploration, Development and Operating Risks**

Mining operations are inherently dangerous and generally involve a high degree of risk. The Company's operations are subject to all of the hazards and risks normally encountered in the exploration and development of minerals, including, without limitation, unusual and unexpected geologic formations, seismic activity, rock bursts, cave-ins, flooding and other conditions involved in the drilling and removal of material any of which could result in damage to, or destruction of, mines, personal injury or loss of life and damage to property, and environmental damage, all of which may result in possible legal liability.

Mining operations are also subject to hazards such as fire, rock falls, geomechanical issues, equipment failure, and other hazards which may cause environmental pollution and consequent liability. The occurrence of any of these events could result in a prolonged interruption of the Company's exploration and development activities that would have a material adverse effect on its business and prospects. Further, the Company may be subject to liability or sustain losses in relation to certain risks and hazards against which it cannot insure or for which it may elect not to insure. The occurrence of operational risks and/or a shortfall or lack of insurance coverage could have a material adverse impact on the Company's future cash flows, earnings, results of operations and financial condition.

**Infrastructure**

Mining, processing, development, and exploration activities depend, to one degree or another, on adequate infrastructure. Reliable roads, bridges, power sources, and water supplies, as well as the location of population centres and pools of labour, are important determinants, which affect capital and operating costs. Unusual or infrequent weather phenomena, sabotage, government or other interference in the maintenance or provision of such infrastructure could impact the Company's ability to explore its properties, thereby adversely affecting its business and financial condition.

**Permitting**

The Company's operations are subject to receiving and maintaining permits from appropriate governmental authorities. There is no assurance that delays will not occur in connection with obtaining and renewing all necessary permits for the Company's existing operations, additional permits for any possible future changes to operations, or additional permits associated with new legislation. There can be no assurance that the Company will continue to hold all permits necessary to develop any particular property. Failure to comply with applicable laws, regulations and permitting requirements may result in enforcement actions thereunder, including orders issued by regulatory or judicial authorities causing activities to cease or be curtailed, and may include corrective measures requiring capital expenditures or remedial actions. Amendments to current laws, regulations and permitting requirements, or more stringent application of existing laws, may have a material adverse impact on the Company, resulting in increased capital expenditures and other costs or abandonment or delays in development of properties. Any of these factors could have a material adverse effect on the Company's results of operations and financial position.

**Economics of Developing Mineral Properties**

Mineral exploration and development is speculative and involves a high degree of risk. While the discovery of a mineral deposit may result in substantial rewards, few properties which are explored are commercially mineable and ultimately developed into producing mines.

The Company has not defined current mineral resources or reserves at the Lost Sheep Mine and there can be no assurance that any properties under exploration contain any quantities (commercial or otherwise) of any minerals. Even if quantities of minerals are identified, there can be no assurance that the Company will be able to exploit the resources or, if the Company is able to exploit them, that it will do so on a profitable basis.

Should any mineral resources or reserves exist, substantial expenditures will be required to upgrade mineral resources to reserves, confirm mineral reserves which are sufficient to commercially mine and to obtain the required environmental approvals and permitting required to commence commercial operations. The decision as to whether a property contains a commercial mineral deposit and should be brought into production will depend upon the results of exploration programs and/or feasibility studies, and the recommendations of duly qualified engineers and/or geologists, all of which involves significant expense and time. This decision will involve consideration and evaluation of several significant factors including, but not limited to: (i) costs of bringing a property into production, including exploration and development work, preparation of production feasibility studies and construction of production facilities; (ii) availability and costs of financing; (iii) ongoing costs of production; (iv) fluorspar prices, which are historically cyclical; (v) environmental compliance regulations and restraints (including potential environmental liabilities associated with historical exploration activities); and (vi) political climate and/or governmental regulation and control. Development projects are also subject to the successful completion of engineering studies, issuance of necessary governmental permits, and availability of adequate financing. Development projects have no operating history upon which to base estimates of future cash flow.

The ability to sell and profit from the sale of any eventual mineral production from the Lost Sheep Mine or any other project of the Company will be subject to the prevailing conditions in the minerals marketplace at the time of sale. The global minerals marketplace is subject to global economic activity and changing attitudes of consumers and other end-users' demand for mineral products. Many of these factors are beyond the control of a mining company and therefore represent a market risk which could impact the long-term viability of the Company and its operations.

**Exploration, Development and Operations**

The long-term profitability of the Company's operations will be in part directly related to the cost and success of its exploration programs, which may be affected by a number of factors, including the Company's ability to extend the permitted term of exploration granted to it. Substantial expenditures are required to establish resources through drilling, to develop processes to extract the resources, and in the case of new properties, to develop the extraction and processing facilities and infrastructure at any site chosen for extraction. Although substantial benefits may be derived from the discovery of a major deposit, no assurance can be given that any such deposit will be commercially viable or that the funds required for development can be obtained on a timely basis.

**Third-Party Approvals**

The Company may require the consent or approval of third parties in order to enter into or complete certain agreements or transactions necessary in the course of its operations. There can be no assurance that such third parties, which may include shareholders, regulatory bodies or entities with an interest in the applicable property or others, will provide the required approval or consent or enter into such agreement in a timely manner, or at all. Failure to obtain such third party approval may result in a material adverse effect on the Company's operations and financial condition.

**The Technical Report does not contain production, development plans or costs estimates associated with the Lost Sheep Mine**

The Technical Report is prepared pursuant to NI 43-101 and does not contain a mine plan for the Lost Sheep Mine nor does it contain estimates of future production, development plans, operating and capital costs, financial returns or other economic and technical estimates relating to the Lost Sheep Mine. There is no assurance that any production, plans, costs or other estimates will be achieved or continue to be achieved. Actual costs and financial returns may vary significantly from any estimates depending on a variety of factors, many of which are not within our control. These factors include, but are not limited to: actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the price of fluorspar; short-term operating revisions to mine plans; equipment failures; industrial accidents; natural phenomena; encountering unusual or unexpected geological conditions; changes in power costs and potential power shortages; changes in fuel costs; commodity price fluctuations; shortages of principal supplies needed for development and operations; labor shortages or strikes; high rates of inflation; civil disobedience, protests and acts of civil unrest or terrorism, applicable taxes and restrictions or regulations imposed by governmental or regulatory authorities or other changes in the regulatory environments. Failure to achieve estimates or material increases in costs could have a material adverse impact on our future cash flows, profitability, results of operations and financial condition.

Sustaining capital expenditures required to continue operating the Lost Sheep Mine are based on assumptions and analyses made by the Company's management and advisors in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. These estimates, however, and the assumptions upon which they are based, are subject to a variety of risks and uncertainties and other factors that could cause actual expenditures to differ from those estimates. If these estimates prove incorrect, additional capital expenditures for the Lost Sheep Mine may increase. The Company cannot be assured that it will have access to sufficient financing or generate sufficient cash flows to fund any increase in required capital spending for additional construction or development of the Lost Sheep Mine. There can be no assurances that ongoing operating costs associated with the Lost Sheep Mine will be as anticipated and any increase in costs could materially adversely affect our business, results of operations, financial condition and cash flow.

The Company notes that the Technical Report is completed to the level of a conceptual exploration assessment which is preliminary in nature and based on historical and current geological observations that are considered too speculative geologically to have economic considerations applied that would enable them to be categorized as mineral resources or mineral reserves.

**Construction and Development of the Spor Mountain Project and the Delta Processing Site**

The success of construction and development of the Spor Mountain Project and the Delta Processing Site is subject to a number of factors including the availability and performance of engineering and construction contractors, mining contractors, suppliers and consultants, the receipt of required governmental approvals and permits in connection with the construction of mining facilities, the conduct of mining operations (including environmental permits), and the successful completion and operation of ore passes, among other operational elements. Any delay in the performance of any one or more of the contractors, suppliers, consultants or other persons on which the Company is dependent in connection with its activities, a delay in or failure to receive the required governmental approvals and permits in a timely manner or on reasonable terms, or a delay in or failure in connection with the completion and successful operation of the operational elements of the Lost Sheep Mine and Delta Processing Site could delay or prevent the construction and development of the Lost Sheep Mine and Delta Processing Site as planned. There can be no assurance that current or future plans implemented by the Company will be successful, that the Company will be able to obtain sufficient funds to finance such activities, that personnel and equipment will be available in a timely manner or on reasonable terms to successfully complete the projects required by the Company to develop, expand and/or maintain its operations at the Lost Sheep Mine and Delta Processing Site, that the Company will be able to obtain all necessary governmental approvals and permits or that the construction, development or ongoing operating costs associated with the Lost Sheep Mine and Delta Processing Site will not be significantly higher than anticipated by the Company. Any of the foregoing factors could adversely impact the operations and financial condition of the Company.

Commercial viability of the Spor Mountain Project is predicated on many factors. The capital expenditures and time required to develop the Spor Mountain Project and Delta Processing Site are considerable and changes in costs or construction schedules can affect project economics. Thus, it is possible that actual costs may change significantly, and economic returns may differ materially from the Company's estimates. In addition, any future mineral resources and any future mineral reserves projected by studies, reports and technical assessments performed on the Spor Mountain Project may not be realized, and the level of future fluorspar prices needed to ensure commercial viability may not materialize. Consequently, there is a risk that the Spor Mountain Project may be subject to write-down and/or closure as it may not be commercially viable.

**Production Estimates**

Any forecasts of future production are estimates based on interpretation and assumptions, and actual production may be less than estimated. The Company's ability to achieve and maintain full production rates at the Spor Mountain Project is subject to a number of risks and uncertainties, the occurrence of any of which could result in delays, slowdowns or suspensions and, ultimately, failure to achieve and maintain full production rates. The Company's production estimates at the Spor Mountain Project are dependent on, among other things, the accuracy of mineral resource estimates, the accuracy of its life of mine plans, the accuracy of assumptions regarding mineralized material grades and recovery rates, weather conditions, ground conditions, physical characteristics of mineralized material, such as hardness and the presence or absence of particular metallurgical characteristics, the accuracy of estimated rates and costs of mining and processing, including, without limitation, operating expenses, cash costs and all-in sustaining costs, reliability of equipment and machinery, the performance of the processing circuit or other processes, water supply and/or quality, the receipt and maintenance of permits and the availability of a sufficient amount of people to perform the work necessary to maintain production as estimated. The Company's actual production and other projected economic and operating parameters may not be realized. The failure of the Company to achieve its production estimates could have a material adverse effect on its prospects, results of operations and financial condition.

Mineral resources are reported as general indicators of mine life, however, this should not be interpreted as assurances of mine life or of the profitability of current or future operations.

The Company is currently, and expects to continue to be, dependent on the Spor Mountain Project for all of its commercial production. In particular, the Spor Mountain Project has accounted for all of the Company's production up to the present and is expected to continue to account for all of its commercial production in the near term. Any adverse conditions affecting mining, processing conditions, expansion plans or ongoing permitting at the Spor Mountain Project could have a material adverse effect on the Company's financial performance and results of operations.

The Company notes that the Technical Report is completed to the level of a conceptual exploration assessment which is preliminary in nature and based on historical and current geological observations that are considered too speculative geologically to have economic considerations applied that would enable them to be categorized as mineral resources or mineral reserves.

**Cost Estimates**

The Company's actual costs are dependent on a number of factors, including contractor mining, ground support, ventilation, haulage to Delta, crushing/screening, flotation reagents, filtration/drying, briquetting or bagging, power, water, fuel, tailings/reclamation, product specification compliance, customer qualification, and permitting/compliance costs.. The Company's actual costs may vary from estimates for a variety of reasons, including changing waste-to-mineralized material ratios, mineralized material grade metallurgy, weather conditions, ground conditions, labour and other input costs, commodity prices, general inflationary pressures and currency exchange rates. Failure to achieve cost estimates or material increases in costs could have an adverse impact on the Company's future cash flows, profitability, results of operations and financial condition.

Changes in the Company's production costs could have a major impact on its profitability. Its main production expenses are personnel and contractor costs, materials, and energy. Changes in costs of the Company's mining and processing operations could occur as a result of unforeseen events, including international and local economic and political events, a change in commodity prices, increased costs and scarcity of labour, and could result in changes in profitability or mineral resource estimates. Many of these factors may be beyond the Company's control.

The Company prepares estimates of future cash costs, operating costs and/or capital costs for each operation and project. There can be no assurance that such estimates will be achieved and that actual costs will not exceed such estimates. Failure to achieve cost estimates and/or any material increases in costs not anticipated by the Company could have an adverse impact on future cash flows, profitability, results of operations and the financial condition of the Company.

The Company notes that the Technical Report is completed to the level of a conceptual exploration assessment which is preliminary in nature and based on historical and current geological observations that are considered too speculative geologically to have economic considerations applied that would enable them to be categorized as mineral resources or mineral reserves.

**Uncertainty Relating to Mineral Resources**

Mineral resources that are not mineral reserves do not have demonstrated economic viability. Due to the uncertainty which may be attached to inferred mineral resources, there is no assurance that inferred mineral resources will be upgraded to measured or indicated mineral resources as a result of continued exploration.

**Mineral Reserves Have Not Been Established for the Spor Mountain Project**

The Spor Mountain Project does not currently have proven or probable mineral reserves. Only those mineral deposits that the Company can economically and legally extract or produce, based on a comprehensive evaluation of cost, grade, recovery and other factors, are considered mineral reserves. The Spor Mountain Project does not have mineral resource estimates, and no assurance can be given that any particular level of recovery of fluorspar or other minerals from mineralized material will in fact be realized or that an identified mineralized deposit will ever qualify as a commercially mineable (or viable) reserve. Substantial additional work, including mine design and mining schedules, metallurgical flow sheets and process plant designs, would be required in order to determine if any economic deposits exist at the Spor Mountain Project. Substantial expenditures would be required to establish mineral reserves through drilling and metallurgical and other testing techniques which the Company does not expect to complete before entering into production, if at all. No assurance can be given that any level of recovery of any mineral resources will be realized or that any identified mineral deposit will ever qualify as a commercially mineable ore body that can be legally and economically exploited.

Even if such proven or probable mineral reserves were to be identified in respect of the Spor Mountain Project, given that mines have limited lives based on proven and probable mineral reserves, the Company must continually replace and expand its mineral resources and mineral reserves, if and when available and discover, develop, or acquire mineral reserves for production. The Company's ability to maintain or increase its annual production of fluorspar will depend in significant part on its ability to bring new mines into production and/or to expand mineral reserves or extend the life of the Spor Mountain Project. Notwithstanding the foregoing, the Company has elected to commence mining operations on the Spor Mountain Project, and may choose to commence mining operations on future projects, without basing its production decision on a feasibility or pre-feasibility study, which carries significant additional risks which include, but are not limited to, the inclusion of inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. See also "*Risk Factors – Risks Related to the Company – The Company is Entering into Production at the Spor Mountain Project without a Feasibility Study or Pre-Feasibility Study.*"

**The Company is Entering into Production at the Spor Mountain Project and Delta Processing Site without a Feasibility Study or Pre-Feasibility Study**

The Company based its production decision at the Spor Mountain Project on a conceptual exploration assessment based on historical and current geological observations and not on a feasibility study or pre-feasibility study of mineral reserves demonstrating economic and technical viability. As a result, there is increased uncertainty and there are multiple technical and economic risks of failure which are associated with this production decision. These risks, among others, include the inclusion of inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Furthermore, there are risks associated with areas that are analyzed in more detail in a pre-feasibility and feasibility study, such as applying economic analysis to mineral resources and mineral reserves, more detailed metallurgy and a number of specialized studies in areas such as mining and recovery methods, market analysis, and environmental and community impacts. There is no assurance given all of the known and potentially unknown risks associated with the Spor Mountain Project that the Company will be able to profitably carry on mining operations. In addition, there is no assurance that production will continue to be profitable or that continued exploration of the Spor Mountain Project will demonstrate adequate additional mineralization which can be mined economically, such that mining operations on the Spor Mountain Project may not be sustainable.

**Surface Rights**

The Company does not own all of the surface rights at its properties and there is no assurance that surface rights owned by the government or third parties will be granted, nor that they will be on reasonable terms if granted. Failure to acquire surface rights may impact the Company's ability to access its properties, as well as its ability to commence and/or complete construction or production, any of which would have a material adverse effect on the profitability of the Company's future operations.

**Pre-existing Environmental Liabilities**

Pre-existing environmental liabilities may exist on the properties in which the Company hold an interest or on properties that may be subsequently acquired by the Company which are unknown, and which have been caused by previous or existing owners or operators of the properties. In such event, the Company may be required to remediate these properties and the costs of remediation could be substantial. Further, in such circumstances, the Company may not be able to claim indemnification or contribution from other parties. In the event the Company were required to undertake and fund significant remediation work, such event could have a material adverse effect upon the Company and the value of its securities.

**Non-Governmental Organizations**

Certain non-governmental organizations ("**NGOs**") that oppose globalization and resource development are often vocal critics of the mining industry and its practices, including the use of hazardous substances in mining activities. Adverse publicity generated by such NGOs or other parties generally related to extractive industries or specifically to the Company's operations, could have an adverse effect on the Company's reputation, impact the Company's relationship with the communities in which it operates and ultimately have a material adverse effect on the Company's business, financial condition and results of operations.

**Community Relations**

The Company's relationships with the communities in which it operates, and other stakeholders are critical to ensure the future success of its exploration and development of its projects. There is an increasing level of public concern relating to the perceived effect of mining activities on the environment and on communities impacted by such activities. Publicity adverse to the Company, its operations or extractive industries generally, could have an adverse effect on the Company and may impact relationships with the communities in which the Company operates and other stakeholders. While the Company is committed to operating in a socially responsible manner, there can be no assurance that its efforts in this respect will mitigate this potential risk. Further, damage to the Company's reputation can be the result of the perceived or actual occurrence of any number of events, and could include any negative publicity, whether true or not.

**Health, Safety and Environmental Risks and Hazards**

Mining, like many other extractive natural resource industries, is subject to potential risks and liabilities due to accidents that could result in serious injury or death and/or material damage to the environment and Company assets. The impact of such accidents could cause an interruption to operations, lead to a loss of licences, affect the reputation of the Company and its ability to obtain further licences, damage community relations and reduce the perceived appeal of the Company as an employer. The Company strives to manage all such risks in compliance with local and international standards and has or will implement various health and safety measures designed to mitigate such risks. Any such occupational health and personal safety issues may adversely affect the business of the Company and its future operations.

All phases of the Company's operations are also subject to environmental and safety regulations in the jurisdictions in which it operates. Environmental legislation is evolving in a manner that will require stricter standards and enforcement, increased fines and penalties for non-compliance, more stringent environmental assessments of proposed projects and a heightened degree of responsibility for companies and their officers, directors and employees. There is no assurance that the Company has been or will at all times be in full compliance with all environmental laws and regulations or hold, and be in full compliance with, all required environmental, health and safety permits. In addition, no assurances can be given that new rules and regulations will not be enacted or that existing rules and regulations will not be applied in a manner which could have an adverse effect on the Company's financial position and operations. The potential costs and delays associated with compliance with such laws, regulations and permits could prevent the Company from proceeding with the development of a project and any non-compliance therewith may adversely affect the Company's business and prospects. Environmental hazards may also exist on the properties on which the Company holds interests that are unknown to the Company at present and that have been caused by previous or existing owners or operators of the properties.

Government environmental approvals and permits are currently, or may in the future be, required in connection with the Company's operations. To the extent such approvals are required and not obtained, the Company may be curtailed or prohibited from proceeding with planned exploration or development of mineral properties. Failure to comply with applicable laws, regulations and permitting requirements may result in enforcement actions, including orders issued by regulatory or judicial authorities causing operations to cease or be curtailed, and may include corrective measures requiring capital expenditures, installation of additional equipment, or remedial actions. The costs associated with such instances and liabilities could be significant. Amendments to current laws, regulations and permits governing operations and activities of mining companies, or more stringent implementation thereof, could have a material adverse impact on the Company and cause increases in capital expenditures or require abandonment or delays in the development and exploration of its mining properties. The Company may be required to compensate those suffering loss or damage by reason of the mining activities and may have civil or criminal fines or penalties imposed for violations of applicable laws or regulations. The Company may also be held financially responsible for remediation of contamination at current or former sites, or at third party sites. The Company could also be held responsible for exposure to hazardous substances.

In the context of environmental permits, the Company must comply with standards, laws and regulations that may entail costs and delays depending on the nature of the activity to be permitted and how stringently the regulations are implemented by the regulatory authority. The Company may incur costs associated with reclamation activities, which may materially exceed the provisions established by the Company for the activities. In addition, possible additional future regulatory requirements may require additional reclamation requirements creating uncertainties related to future reclamation costs. Should the Company be unable to post required financial assurance related to an environmental remediation obligation, the Company might be prohibited from starting planned operations or required to suspend existing operations or enter into interim compliance measures pending completion of the required remedy, which could have a material adverse effect. Furthermore, changes to the amount of financial assurance that the Company is required to post, as well as the nature of the collateral to be provided, could significantly increase the Company's costs, making the development of new mines less economically feasible.

**U.S. investors may find it difficult to enforce U.S. judgments against the Company**

The Company is incorporated under the laws of British Columbia, Canada and the majority of the Company's directors and officers are not residents of the United States. Because a portion of the Company's assets and the assets of these persons are located outside of the United States, it may be difficult for U.S. investors to effect service of process within the United States upon the Company or upon such persons who are not residents of the United States, or to realize in the United States upon judgments of U.S. courts predicated upon civil liabilities under U.S. securities laws. A judgment of a U.S. court predicated solely upon such civil liabilities may be enforceable in Canada by a Canadian court if the U.S. court in which the judgment was obtained had jurisdiction, as determined by the Canadian court, in the matter. There is substantial doubt whether an original action could be brought successfully in Canada against any of such persons or the Company predicated solely upon such civil liabilities.

**Foreign Operations Risks**

The Company's material property is located in the United States. Such property and operations are subject to various levels of political, economic and other risks and uncertainties that are different from those encountered in Canada. These risks may include: political unrest, labour disputes, invalidation of governmental orders and permits, corruption, war, civil disturbances and terrorist actions, arbitrary changes in law or policies of particular countries, foreign taxation, price controls, delays in obtaining or the inability to obtain necessary governmental permits, opposition to mining from environmental or other NGOs, limitations on foreign ownership, limitations on the repatriation of earnings, import and export controls and increased financing costs. These risks may limit, delay or disrupt the Company's projects, restrict the movement of funds or result in the deprivation of contract rights or the taking of property by nationalization or expropriation without fair compensation.

There can be no assurance that there will be no changes in the laws of the jurisdiction or changes in the regulatory environment for mining companies in the local jurisdiction that would adversely affect the Company. It is difficult for the Company to predict the effect of any constitutional or political changes on the Company's business and operations, and it is also possible that future social unrest in the United States will adversely affect the Company's operations.

**Global Conflict**

Ongoing global conflict, including in Ukraine and the Middle East, can and has led to sanctions being levied against certain countries by the international community and may result in additional sanctions or other international action, any of which may have a destabilizing effect on commodity prices, supply chain and global economies more broadly. Volatility in commodity prices and supply chain disruptions may adversely affect the Company's business and financial condition. The extent and duration of such conflicts and related international actions cannot be accurately predicted and the effects of such conflict may magnify the impact of other risks identified in this AIF, including those relating to commodity price volatility and global financial conditions. Because of the highly uncertain and dynamic nature of these events, it is not currently possible to accurately estimate the impact of such conflicts on the Company's business.

**Conflicts of Interest**

Certain of the directors and officers of the Company also serve as directors and/or officers of other companies involved in natural resource exploration and development and, consequently, there exists the possibility for such directors and officers to be in a position of conflict. The Company expects that any decision made by any of such directors and officers involving the Company will be made in accordance with their duties and obligations to deal fairly and in good faith with a view to the best interests of the Company and its shareholders, but there can be no assurance in this regard. In addition, each of the Company's directors is required to declare and refrain from voting on any matter in which such directors may have a conflict of interest or which are governed by the procedures set forth in the BCBCA and any other applicable law. In the event that the Company's directors and officers are subject to conflicts of interest, there may be a material adverse effect on its business.

**Availability and Costs of Infrastructure, Energy and Other Commodities**

Mining, processing, development and exploration activities depend, to one degree or another, on adequate infrastructure. Reliable roads, bridges, power sources and water supply are important determinants that affect capital and operating costs. Unusual or infrequent weather phenomena, sabotage, government or other interference in the maintenance or provision of such infrastructure could adversely affect the Company's operations, financial condition and results of operations.

The profitability of the Company's operations will be dependent upon the cost and availability of commodities which are consumed or otherwise used in connection with the Company's operations and projects, including, but not limited to, diesel, fuel, natural gas, electricity, steel and concrete. Commodity prices fluctuate widely and are affected by numerous factors beyond the control of the Company. If there is a significant and sustained increase in the cost of certain commodities, the Company may decide that it is not economically feasible to continue all of the Company's development activities.

Further, the Company relies on certain key third-party suppliers and/or contractors for services, equipment, raw materials used in, and the provision of services necessary for, the development and construction of its assets. There can be no guarantee that services, equipment or raw materials will be available to the Company on commercially reasonable terms or at all.

**Insurance and Uninsured Risks**

Exploration, development and production operations on mineral properties involve numerous risks, including unexpected or unusual geological operating conditions, rock bursts, cave-ins, fires, floods, earthquakes and other environmental occurrences, as well as political and social instability. It is not always possible to obtain insurance against all such risks and the Company may decide not to insure against certain risks because of high premiums or other reasons. Should such liabilities arise, they could reduce or eliminate any future profitability and result in increasing costs and a decline in the value of the Common Shares. The lack of, or insufficiency of, insurance coverage could adversely affect the Company's future cash flow and overall profitability.

**Competition**

The mining industry is intensely competitive in all of its phases and the Company competes with many companies possessing greater financial and technical resources than itself. Competition in the fluorspar mining industry is primarily for mineral rich properties that can be developed and produced economically; the technical expertise to find, develop, and operate such properties; the labour to operate the properties; and the capital for the purpose of funding such properties. The Company expects to selectively seek strategic acquisitions in the future, however, there can be no assurance that suitable acquisition opportunities will be identified on acceptable terms. As a result, there can be no assurance that the Company will acquire any interest in additional fluorspar properties. If the Company is not able to acquire these interests, it could have a material and adverse effect on its future earnings, cash flows, financial condition or results of operations. Even if the Company does acquire these interests or rights, the resulting business arrangements may ultimately prove not to be beneficial.

**Tax Matters**

The Company's taxes are affected by several factors, some of which are outside of its control, including the application and interpretation of the relevant tax laws and treaties. If the Company's filing position, application of tax incentives or similar "holidays" or benefits were to be challenged for any reason, this could have a material adverse effect on the Company's business, results of operations and financial condition.

The Company is subject to routine tax audits by various tax authorities. Tax audits may result in additional tax, interest payments and penalties which would negatively affect the Company's financial condition and operating results. New laws and regulations or changes in tax rules and regulations or the interpretation of tax laws by the courts or the tax authorities may also have a substantial negative impact on the Company's business. There is no assurance that the Company's current financial condition will not be materially adversely affected in the future due to such changes.

**Litigation**

All industries, including the mining industry, are subject to legal claims, with and without merit. The Company may become involved in legal disputes in the future. Defence and settlement costs of legal claims can be substantial, even with respect to claims that have no merit. As of the date hereof, no material claims have been brought against the Company, nor has the Company received an indication that any material claims are forthcoming. However, due to the inherent uncertainty of the litigation process, should a material claim be brought against the Company, there can be no assurance that the resolution of any particular legal proceeding will not a material adverse effect on the Company's financial position and results of operations.

**Nature and Climatic Conditions**

The Company and the mining industry are facing continued geotechnical challenges, which could adversely impact the Company. Unanticipated adverse geotechnical and hydrological conditions, such as landslides, droughts, pit wall failures and rock fragility may occur in the future and such events may not be detected in advance. Geotechnical instabilities and adverse climatic conditions can be difficult to predict and are often affected by risks and hazards outside of the Company's control, such as severe weather and considerable rainfall, which may lead to periodic floods, mudslides, wall instability and seismic activity, which may result in slippage of material. Such conditions could result in limited access to mine sites, suspensions or reductions in operations, government investigations, increased monitoring costs, remediation costs, loss of ore and other impacts which could cause the Company's projects to be less profitable than currently anticipated and could result in a material adverse effect on the Company's results of operations and financial position.

**Climate Change**

The Company's activities are subject to risks related to climate change. While it is widely recognized that continued emission of greenhouse gases will cause further warming of the planet and this warming could lead to damaging economic and social consequences for the Company, the exact timing and severity of physical effects are difficult to estimate. There exists a common misperception regarding the long-term nature of climate change implications, leading some to believe they may not be immediately relevant to present decision-making. Natural catastrophes are more and more present, and the Company must continue to assess its vulnerabilities and implement corrective measures to secure its infrastructure.

Yet, the potential repercussions of climate change on the Company extend beyond physical impacts and are not exclusively relegated to the distant future. Mitigating the effects of climate change necessitates a reduction in greenhouse gas emissions and an expedited transition to a lower-carbon economy. This reduction involves a shift away from fossil fuel energy and related physical assets. While the changes associated with transitioning to a lower-carbon economy pose substantial risks, they also present significant opportunities for the Company to market its fluorspar products in the future and focus more on climate change mitigation and adaptative solutions.

**Information Systems and Cyber Security**

The Company's information systems are vulnerable to an increasing threat of continually evolving cybersecurity risks. Unauthorized parties may attempt to gain access to these systems or the Company's information through fraud or other means of deception. The Company's operations depend, in part, on how well the Company and those entities with which it does business, protect networks, equipment, information technology systems and software against damage from a number of threats. The failure of information systems or a component of information systems could, depending on the nature of any such failure, adversely impact the Company's reputation and results of operations.

Although to date, the Company has not experienced any material losses relating to cyber attacks or other information security breaches, there can be no assurance that it will not incur such losses in the future. The Company's risk and exposure to these matters cannot be fully mitigated because of, among other things, the evolving nature of these threats. As a result, cyber security and the continued development and enhancement of controls, processes and practices designed to protect systems, computers, software, data and networks from attack, damage or unauthorized access remain a priority. As cyber threats continue to evolve, the Company may be required to expend additional resources to continue to modify or enhance protective measures or to investigate and remediate any security vulnerabilities.

**Global Financial Conditions**

Global financial conditions continue to be characterized as volatile. In recent years, global markets have been adversely impacted by the tariffs introduced by the current US administration and counter-tariffs imposed by various other countries, various credit crises and significant fluctuations in fuel and energy costs and metals prices, ongoing hostilities in Ukraine and the Middle East and related sanctions. Many industries, including the mining industry, have been impacted by these market conditions. Global financial conditions remain subject to sudden and rapid destabilizations in response to future events, as government authorities may have limited resources to respond to future crises. A continued or worsened slowdown in the financial markets or other economic conditions, including but not limited to consumer spending, employment rates, business conditions, inflation, fuel and energy costs, consumer debt levels, lack of available credit, the state of the financial markets, interest rates and tax rates, may adversely affect the Company's growth and prospects. Future crises may be precipitated by any number of causes, including natural disasters, geopolitical instability, changes to energy prices or sovereign defaults. If increased levels of volatility continue or in the event of a rapid destabilization of global economic conditions, it may result in a material adverse effect on commodity prices, demand for minerals, including fluorspar, availability of credit, investor confidence, and general financial market liquidity, all of which may adversely affect the Company's business and the market price of the Common Shares.

**Dependence on Key Management Personnel**

The Company's future growth and its ability to develop depend, to a significant extent, on its ability to attract and retain highly qualified personnel. The Company relies on a limited number of key employees, consultants, and members of senior management and competes with mining and other companies to attract and retain key executives and other employees and third-party contractors with appropriate technical skills and managerial experience necessary to operate its business. While the Company maintains policies, procedures and frameworks in place to mitigate this risk, there can be no assurance that the Company will be able to attract and retain skilled and experienced personnel. Although the Company believes it will be able to replace key employees, consultants or members of senior management within reasonable time should the need arise, the loss of such key personnel, if not replaced in a timely manner, could have a material adverse effect on the Company's business, financial condition, and prospects.

To operate successfully and manage its potential future growth, the Company must attract and retain highly qualified engineering, managerial and financial personnel. The Company faces intense competition for qualified personnel in these areas, and there can be no certainty that the Company will be able to attract and retain qualified personnel. If the Company is unable to hire and retain additional qualified personnel in the future to develop its properties, its business, financial condition, and operating results could be adversely affected.

**Dependence on Outside Parties**

The Company has relied upon consultants, engineers, contractors and other parties and intends to rely on these parties for exploration, development, construction and operating expertise and any future production. Substantial expenditures are required to construct mines, to establish mineral resources and mineral reserves through drilling, to carry out environmental and social impact assessments, to develop metallurgical processes to extract metal and, in the case of new properties, to develop the exploration and plant infrastructure at any particular site. Deficient or negligent work or work not completed in a timely manner could have a material adverse effect on the Company.

**Infectious Diseases**

Global markets and various industries have been adversely impacted by emerging infectious diseases and/or the threat of outbreaks of viruses, other contagions or epidemic diseases. The outbreak of such diseases and the resultant response to combat could result in the implementation by numerous governments of non-routine measures such as quarantines, travel restrictions and business closures designed to contain the spread of the outbreak. These measures could negatively impact the global economy and lead to volatile market conditions and commodity prices. The economic viability of the Company's long-term business plan is impacted by its ability to obtain financing, and global economic conditions impact the general availability of financing through public and private debt and equity markers, as well as through other avenues.

Sustained infectious disease outbreaks could result in operational and supply chain delays and disruption as a result of governmental regulation and preventative measures being implemented worldwide. The Company could also be required to close, curtail or otherwise limit its operating activities as a result of the implementation of any such governmental regulation or preventative measures in the jurisdictions in which the Company operates, or as a result of sustained outbreaks at its project site or facilities. Any such closures or curtailments could have an adverse impact on the business of the Company.

**Disclosure and Internal Controls**

Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS. Disclosure controls and procedures are designed to ensure that the information required to be disclosed by the Company in reports filed with securities regulatory agencies is recorded, processed, summarized and reported on a timely basis and is accumulated and communicated. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance with respect to the reliability of financial reporting and financial statement preparation. The Company's failure to satisfy the requirements of applicable Canadian securities laws on an ongoing, timely basis could result in the loss of investor confidence in the reliability of its financial statements, which in turn could harm its business and negatively impact the trading price of the Common Shares. In addition, any failure to implement required new or improved controls, or difficulties encountered in their implementation, could harm the Company's operating results or cause it to fail to meet its reporting obligations.

**Market Price of Securities**

The Common Shares are listed on the CSE. Securities markets have had a high level of price and volume volatility, and the market price of securities of many resource companies, particularly those considered exploration or development stage companies, have experienced wide fluctuations in price that have not necessarily been related to the operating performance, underlying asset values or prospects of such companies.

The trading price of the Common Shares may increase or decrease in response to a number of events and factors, not related to the Company's performance, and are, therefore, not within the Company's control, including but not limited to, the market in which the Common Shares are traded, the strength of the economy generally, the price of fluorspar, the availability and attractiveness of alternative investments and the breadth of the public market for the Common Shares. The effect of these factors and others on the market price of the Common Shares in the future cannot be predicted.

**Dilution**

The Company may have further capital requirements and exploration expenditures as it proceeds to expand exploration activities at its mineral projects, develop any such projects or take advantage of opportunities for acquisitions, joint ventures or other business opportunities that may be presented to it. The Company may sell additional Common Shares or other securities in the future to finance its operations or may issue additional Common Shares or other securities as consideration for future acquisitions. The Company cannot predict the size or nature of future sales or issuances of securities or the effect, if any, that such future sales and issuances may have on the market price of the Common Shares. Sales or issuances of substantial numbers of Common Shares, or the perception that such sales or issuances could occur, may adversely affect the future market price of the Common Shares and dilute each Company shareholder's equity position in the Company.

The exercise of Options, PSUs, DSUs and RSUs (as defined herein) already issued by the Company and the issuance of additional equity securities in the future could result in dilution in the equity interests of holders of Common Shares.

**No Dividends Policy**

The Company has not declared a dividend since incorporation and does not anticipate doing so in the foreseeable future. Any future determination as to the payment of dividends will be at the discretion of the board of directions of the Company (the "**Ares Board**") and will depend on the availability of profit, operating results, the financial position of the Company, future capital requirements and general business and other factors considered relevant by the directors of the Company. No assurances in relation to the payment of dividends can be given.

**Material Properties**

**The Spor Mountain Project**

The Company's sole material property is the Spor Mountain Project which is the subject of a technical report prepared in accordance with NI 43-101. Please see "*Description of the Business - Overview of the Business*" above for more information regarding the title, authors and date of the Technical Report. The following technical disclosure relating to the Spor Mountain Project has been extracted or summarized from the Technical Report, and is subject to all the assumptions, qualifications and procedures set out in the Technical Report. Readers should consult the Technical Report to obtain further particulars regarding the Spor Mountain Project. The Technical Report is incorporated by reference in its entirety herein and is available for review electronically on SEDAR+ at www.sedarplus.ca under the Company's corporate profile. Capitalized terms used in this summary but otherwise not defined, shall have the meanings given to them in the Technical Report.

**<u>Project Description, Location and Access</u>**

The Spor Mountain Property is located 70 km northwest of the City of Delta, in Millard County, and 150 km southwest of Salt Lake City. The past-producing Lost Sheep Mine in the northern part of the Spor Mountain Property is located at 39° 45‟ 40" N latitude and 113° 11‟ 46" W longitude and at UTM coordinates 311,880 m E and 4,403550 m N (WGS84 Zone 12S).

The Property is accessible by paved highways and gravel roads. The Union Pacific railroad from Salt Lake City to Los Angeles runs through Delta, and the Company has a warehouse and processing facility located on the railroad siding in Delta. Salt Lake City has the closest international airport with local airports in Delta and Nephi. The Lost Sheep Mine is about 280 km by road southwest of Salt Lake City International Airport.

The Spor Mountain Property includes a total of 111 unpatented lode mining claims on Federal Bureau of Land Management ("**BLM**") lands. Each claim is nominally 8.37 ha (20.66 acres) and the Property covers approximately 924.6 ha (2,283 acres). The Company owns 76.67% of 10 claims known as the "Willden Claims" and 100.00% of 101 claims known as the New Claims. A review by Dorsey & Whitney LLP did not identify any royalties, production payments, deeds of trust, financing statements, or other security instruments burdening the Willden Claims.

The Technical Report is in respect of these 111 unpatented claims on BLM lands covering approximately 2,283 acres. The Company has acquired additional claims since the date of the Technical Report. As of the date of this AIF, the Spor Mountain Property is comprised of 302 claims covering 5,765 acres.

All claims are unpatented and do not include surface rights. To maintain the validity of these claims, an annual rental or holding fee, currently US$165/claim/year must be paid to the BLM prior to the end of each assessment year on September 1st.

The region lies within the Koppen climate type BSk characterized by a cold semi-arid (steppe) climate, with hot dry summers and cool, relatively arid winters. Average temperatures range from a summer maximum of 30°C (July) to minimum of -8°C (January). Exploration can be carried out year-round, with minor delays due to periodic snowstorms.

The Property benefits from proximity to Delta and Salt Lake City. Delta with a population of 3,436 can supply workers, water, fuel, lodging, food, vehicle maintenance and some construction services. Major services and mining equipment can be sourced from Salt Lake City and other nearby centres. Delta is well serviced by paved highways and the Union Pacific Railroad. A 1.9 Gw coal-burning power plant supplying the states of Utah and California with electricity is located 10 km northwest of Delta. The active Materion Natural Resources Inc. beryllium mine, is 5 km to the southwest of the Lost Sheep Mine, and is adjacent to the Spor Mountain Property.

The Property is located in the Basin and Range Province that is defined by a series of north-south trending fault-bounded mountains and ranges, separated by basins. Spor Mountain has less pronounced topographic variation and gentler ridge topography than the Thomas Range to the east. The highest point on Spor Mountains is 2,004 m and elevations on the Property range from 1,200 to 1,740 metres. Wide, flat valley floors at elevations of 1,200 metres are generally moderately incised. Above the valley floors, the land is generally not accessible by vehicles unless roads are constructed. Drainage and active run-off are seasonal, with the drainage to the east and north into the Dell, a flat lying area between Spor Mountain and the Thomas Range and ultimately to the Great Salt Lake Desert some 20 km to the north. Natural vegetation is comprised of scattered low brush, scrub or grass, and at moderate to higher elevations, there are stands and expanses of juniper.

**<u>History</u>**

The mineral deposits at the Spor Mountain, western Utah, are well-known examples of the association of fluorine with lithophile metal mineralization in a volcanic environment. In addition to fluorspar, the Spor Mountain district contains large deposits of beryllium and is a past-producer of uranium. The Spor Mountain mining district was a major fluorite producer dating back to the 1940s, with the Lost Sheep Mine being the largest fluorite producer in the State of Utah.

Cumulative production at the Lost Sheep Mine from 1948 - 2014 is estimated to be approximately 170,000 tons of fluorite. The most active production years were from the 1940s to 1950s. The Lost Sheep Mine produced from three breccia pipes during the period from 1948 to 2007 with the Purple Pit being the source of approximately 160,000 tons. From 2008 to 2017, there were periodic attempts to re-start production with small scale mining in preparation for larger scale production.

**<u>Geological Setting</u>**

Spor Mountain is a faulted block of west-dipping, north to north-easterly striking, Paleozoic sedimentary rocks overlain by Tertiary volcanic flows, tuffs and related pyroclastic rocks. The volcanic and older sedimentary rocks are locally intruded by rhyodacitic to rhyolitic dykes and breccias related to the Oligocene Thomas Caldera that is one of several volcanic centres in western Utah. The volcanic events were coincident with Mid- to Late Cenozoic extensional tectonics with extensive normal faulting, and the creation of the north-south trending parallel mountain ranges of the Basin and Range Province.

The underlying geology of the Spor Mountain Property is a series of dolomite formations including the Bell Hill, Harrisite and Lost Sheep formations. Striking at approximately 040-045°, dipping 37-42° northwest, they are intruded by breccias and cut by at several faults that effectively control the distribution of fluoride mineralization.

The Spor Mountain fluorspar deposits, though occurring dominantly in Palæozoic sedimentary rocks, are associated with Tertiary age volcanic rocks and are spatially and genetically related to topaz-bearing and Be-bearing rhyolite and rhyolite tuffs**.**

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**<u>Mineralization</u>**

Significant fluorine, beryllium, uranium mineralization and associated lithium and rare earths are associated with volcanic-hydrothermal fluids within or adjacent to the structural features related to faulting. In the Spor Mountain district, the largest fluorite deposits are steeply plunging mineralized breccia pipes, typically emplaced between the Ordovician Swan Peak Quartzite and Silurian Lost Sheep Dolomite. Tertiary volcanic rocks to the south and west of Spor Mountain host extensive beryllium mineralization that is typically associated with the Beryllium Tuff member of the Spor Mountain Formation. These volcano-sedimentary tuffs form a shallow west dipping blanket over the older sediments.

On the Spor Mountain Property, fluorite mineralization is usually hosted within discordant breccia pipes, minor dyke-like breccias and concordant replacement features oriented sub-parallel to stratigraphy. Mineralized pipes are funnel shaped becoming smaller at depth and generally plunge steeply east, in part due to block rotation. Low-grade uranium occurs in the fluorite pipes, with a gradual increase in uranium concentrations toward the south part of the district.

The Purple Pit Pipe is the largest deposit with surface dimensions of 56 m by 25 m and becomes smaller at depth. The pipe occurs on the western edge of a rhyolite breccia plug and is structurally controlled by a normal fault that truncates the mineralization below the 120 m level.

The Little Giant Pit is a more recent working on the Spor Mountain Property. At Little Giant, the main pipe extends approximately 22 m north-south and 16 m east-west and has been mined down to 20 m. The pit faces show extensive multi-stage epithermal mineralization, within and adjacent to semi-brittle or brittle faults. Host dolomites are west dipping and display localised brecciation, with argillic alteration, de-dolomitisation, and banded fluorite-calcite-chalcedony/silica. Overprinting this is more intense fluorite mineralization, seen as a sub-vertical "plume", with internal, almost concentric replacement and layering, characteristic of multiple mineralizing events within a permeable, low pressure and temperature setting.

At Bell Hill, breccia pipes and veins were exploited, with the despite being described as H-shaped in outline with a maximum length of 40 m, and a width of 15 m at the H-junction. Mineralization at lower depths was more silicic.

Spor Mountain Property fluorspar mineralization consists of 65-95% fluorite, with montmorillonite, dolomite, quartz, chert, calcite, chalcedony and opal as impurities. The fluorspar closely resembles brown, white, or purple clay and forms either pulverulent masses or box works. With depth, the grade of the mineralization commonly decreases, and masses of montmorillonite, chert, or quartz and dolomite have been found in increasing abundance.

**<u>Deposit Types</u>**

The Spor Mountain fluorite deposits belong to the class of volcanic-epithermal deposits associated with sub-alkaline magmatism. The deposits occur as siliceous vein fillings, breccia pipes, disseminated and replacement deposits along faults, fractures in intermediate to felsic volcanic and volcaniclastic rocks.

The Spor Mountain fluorspar breccia pipes and fluorite-rich replacement deposits are related to the adjacent beryllium deposits. The associated high silica topaz rhyolites have high concentrations of Be, F, Li and other lithophile elements. In most cases, these deposits are related to rift or extensional geological settings. Brecciation and textural evidence within the fluorite deposits and tuff-hosted beryllium indicate formation at low pressure, typically, <1-1.5 kbar, and shallow emplacement.

**<u>Exploration and Drilling</u>**

Surface exploration by Ares was conducted in 2019 and 2020 with Lidar DEM and orthophoto analysis delineating areas of disturbed stratigraphy and recessive topography possibly related to dissolution features or intrusive breccia pipes. Potential locations for fluorite bearing breccia pipes were identified as topographic lows at the intersections of faults. Ares conducted IP surveys in 2021 with lines over known fluorspar locations to identify and define their geophysical signatures, which could then be used to identify new potential targets by response comparison. The IP surveys were successful in showing lower resistivity anomalies correlated with surface exposures of fluorspar breccias pipes breaking through the carbonate host rock.

Ares conducted a 12 hole, 1,160 m first phase RC drilling program in early 2020 to delineate mineralization at the Little Giant Pit and adjacent targets. A further 11 RC drill holes totaling approximately 890 metres were drilled in late 2020 and primarily targeted the Purple Pit area.

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***The reader is cautioned that there has been insufficient exploration to define a mineral resource estimate on the Spor Mountain Property. The Technical Report discloses conceptual exploration targets based on historical and current geological observations. Exploration targets indicate ranges of tonnages and grades that may potentially be achieved through additional exploration.***

The Spor Mountain Property is host to approximately 39 occurrences of visible fluorite in surface outcrops. Of those occurrences, five more prominent areas (Purple Pit, Little Giant Pit (LGP), Dell No. 5, Fluorine Queen No. 3 and No. 4, and Bell Hill) are located on Ares claims exhibiting loosely quantifiable tonnages and fluorite grades that qualify as Exploration Targets. The Estimated Exploration Target is 200,000 to 350,000 tonnes at a fluorite grade of 40 to 60%. The potential quantity and grade are conceptual in nature; there has been insufficient exploration to define a mineral resource; and it is uncertain whether further exploration will result in a mineral resource.

 **

***The reader is cautioned that there is uncertainty that further exploration will result in the definition of mineral resources on these exploration targets.***

 

***The reader is further cautioned that exploration targets on the claims known as the Willden Claims are not 100% owned by Ares. The Willden Claims include the Purple Pit and Little Giant Pit exploration targets.***

**<u>Sampling, Analysis and Data Verification</u>**

The reverse-circulation drill samples were collected with an airstream cyclone and then passed into a splitter that quarters the large sample. The resulting quartered sample was bagged, sealed with identification, and cuttings were photographed and logged at the drill site. Each sample group had blanks, standards and duplicates inserted into the sample stream. Samples were analyzed by SGS in Lakefield (ON), with approximately three control samples inserted (one blank, one standard and one field duplicate for each twenty samples). The samples were analyzed for fluorine element using GC XRF76V (included F 0.1-50%) package, that also includes SiO2%, Al2O3%, Fe2O3%, MgO%, CaO%, Na2O%, K2O%, TiO2%, P2O5%, MnO%, Cr2O3% and V2O5%. Comparison to control samples and their standard deviations indicates acceptable accuracy of the assays.

Drill samples from Phase 2 (Purple Pit drilling) followed the same field procedures for chain of custody and expedition, but for this phase Ares chose AGAT Laboratories in Mississauga, Ontario for final assays. Assay method for CaF2 consisted of 201-676 Lithium Borate Fusion, Summation of Oxides and XRF Finish.

Mr. Fred Brown, P.Geo., of P&E, a Qualified Person under the terms of NI 43-101, completed a site visit to the Spor Mountain Project on August 16, 2021 that included drill sites, surface workings, discussions with the site geologist and examination of local mineralization. A data verification sampling program was conducted as part of the on-site review. Mr. Brown collected five samples on site from available RC coarse rejects. The results of the CaF2 analysis by Activation Laboratories of Ancaster, Ontario, Canada compared favourably with the original client results.

**<u>Mineral Processing and Metallurgical Testing</u>**

In 2020, Ares undertook scoping metallurgical testwork on material from the Lost Sheep Mine. The scoping testwork was performed with the purpose of developing operating parameters and flowsheet to produce both an acid-spar product (CaF2 > 97% purity) and also a metspar product (CaF2 > 92% purity). QEMSCAN conducted on the run of mine ("**ROM**") sample indicated that Fluorite was the dominant F-bearing mineral with quartz as the dominant gangue mineral. The main carbonate minerals are dolomite and calcite. Bond work index ("**BWI**") testing on the ROM sample showed a ball mill work index of 13.4 kWh/t indicating the material as moderately soft. Flotation tests conducted on the ROM sample (38.2% CaF2) with six stages of cleaning achieving a final concentrate grade in excess of 97% albeit at reduced recoveries. Flotation tests conducted on a high-grade (HG) sample with 53% CaF2 resulted in grades in excess of 97% CaF2 with higher recoveries.

**<u>Mineral Resource and Mineral Reserve Estimates</u>**

There are no current mineral resource and mineral reserve estimates for the Spor Mountain Project. Although the Project is not an advanced property under NI 43-101, the following information is included to summarize the Technical Report and provide the current operational context.

**<u>Mining Methods</u>**

Historical operations at the Lost Sheep Mine were partially conducted by open pit mining. The mines consisted of relatively shallow open pits with steep wall angles from surface down into the breccia-fluorspar pipes. This type of mining is no longer considered safe or practical. The deposit geometry and steep topographical relief results in high strip ratios that reduce the economic opportunities to mine the deposits by open pit methods.

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***The following description of mining methods (derived from the Technical Report) are based on known techniques, however, they are applied to the Lost Sheep Mine on a conceptual basis only. There has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the delineation of a mineral resource given the nature of the deposit type. There are no current mineral resources or mineral reserves on the Spor Mountain Property.***

For potential future operations, underground mine development and a sublevel longhole mining method would be undertaken by a mining contractor. This choice of a mining method is primarily aimed at achieving the lowest cost to finished product with manageable risk while maintaining a safe mining environment and achieving the desired production rate. The mining contractor would use conventional electric hydraulic jumbos, load-haul-dump (LHD), mechanized rock bolters, ANFO/emulsion blasthole loaders and mine haulage trucks to execute the mine development. Main ramp or adit accesses (depending on topography) and sublevel accesses would be either 4 m x 4 m for most pipes, or 3 m x 3 m for pipes requiring more selective mining.

The adit portal would be collared at a location that is at or near elevation of the fluorspar pipe bottom. Adit development and sumps would be developed at gradients of -15%. Lateral development will be developed at a gradient of +2% to facilitate water drainage off of the level and directed to a sump. Up-hole drilling may be used to mine certain areas of the pipes, however, most drilling would be down-hole. Underground mine production could average approximately 500 tpd of fluorspar material.

Trucks would haul material from the underground via the decline to the surface ROM pad. Mineralized material would be either stockpiled near the crusher or dumped directly into the primary crusher.

**<u>Recovery Methods</u>**

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***The following description of recovery methods in the Technical Report are based on known techniques, however, they are applied to the Lost Sheep Mine on a conceptual basis only. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the delineation of a mineral resource. There are no current mineral resources or mineral reserves on the Spor Mountain Property.***

The process plant design was based on a nominal 500 tons per day ("**tpd**") of mineralized material with an average feed grade of 40% CaF2 mineralized material into a high-purity 97% grade fluorite (CaF2) at a minimum 80% total fluorite recovery. Of note, the recovery methods and design in summary only apply to the process and upgrading via flotation.

Process plant mineralized material from the mine would be trucked to the facility and deposited on the ROM pad (Pad). From the Pad, mineralized material would be loaded into the ROM bin and fed by a vibrating grizzly to a jaw crusher and conveyor. Material with a P<sub>80</sub> < 9 mm passes to a third conveyor and reports to a day-use fine mineralized material bin. Material with a P<sub>80</sub> > 9 mm would report to a cone crusher for further size reduction.

Crushing would operate 7 days per week, 12 hours per day to maintain stockpile capacity. Mineralized material feeds from the fines bin to the primary ball mill. Water would be added to create slurry and the mill would reduce the particle size to 75 microns. After primary milling, the mineralized material may pass through a de-sliming cyclone for removal of fine and clay particles. De-slimed mineralized material slurry reports to the high-intensity conditioning tanks where reagents are added to improve flotation efficiency. Soda ash, OMC-1234, Tan-XS, and Sep-X50 are blended with the milled solids, and the slurry is pumped to the rougher cells for bulk flotation. The rougher tails report to the scavenger module, and scavenger tailings are pumped to the tailings thickener and vacuum filter for solid-liquid separation. The filter cake would be dried in a rotary dryer to achieve <8% moisture such that the material may be trucked back to the mine for backfilling open pits. Scavenger concentrate returns to the rougher inlet for re-processing. Rougher concentrate would be pumped to the first cleaner cell, then to the regrind mill for further comminution. After secondary conditioning, the slurry would pass through a series of up to eight cleaner flotation modules to increase the fluorite grade to over 97% (acid-spar grade) while maintaining total fluorite recovery of 80%. The acid-spar concentrate product would be pumped from the cleaner cells to the product thickener, then to a vacuum disc filter for solid-liquid separation. The filter cake would be dried in a rotary dryer to achieve <0.5% moisture prior to packaging. If the flotation process does not meet acid-spar grade, a second thickener would be installed to collect metspar grade concentrate. Metspar would pass through the same vacuum filter, dryer and bagging machine for offloading in order to maintain a revenue stream.

The Spor Mountain Project operating concept would comprise of a satellite mine site located 70 km northwest of the process plant feeding mineralized material to a process plant site located in Delta. Currently there is limited on-site infrastructure in place at both the mine site and plant site, however, both localities will have access to the substantial required infrastructure, services and skilled labour from localities located in Nevada and Utah within a day's drive. The satellite mine site would be operated by an underground mining contractor while the Delta plant site operation (now, the Delta Processing Site) would be operated by Ares. There is a very experienced community of mining equipment and concentrator operators, mine workers, technical personnel and consumable and equipment suppliers all located within a day's drive of Delta, Utah.

The Company presently owns land in Delta, Utah and the proposed plan outlined in the Technical Report would be to utilize this area to construct and install the flotation recovery facility.

As of the date of this AIF, the Company is now building the Delta Processing Site which will host the Flotation Plant and the Lumps Plant.

**<u>Environment and Permitting</u>**

The Lost Sheep Mine would involve both surface and underground mining, however, it is expected that only a small amount of surface disturbance would occur. Most of the surface facilities would be contained in areas previously disturbed by past mining activities, and the mining would not affect any BLM Areas of Critical Environmental Concern or similar sensitive environmental areas. There are no threatened or endangered wildlife or vegetation species, no wetlands, and minimal soils and vegetation would be affected by future mining. The mine's remote location and configuration also mean that there would be a general lack of cumulative impacts.

In 2017, the BLM prepared and released an environmental assessment ("**EA**") – DOI-BLM-UT-W020-2017-0024-EA - for the Lost Sheep Mine based on a Plan of Operations ("**POO**") that had been submitted for the site to both the BLM and the Utah Division of Oil, Gas and Mining ("**UDOGM**"). For the EA, the BLM used information from existing sources and their experience in this region of Utah to assess the environmental effects of mining and found that no significant environmental impacts would result from the proposed POO. With future exploration and expanded mining at the Lost Sheep Mine and surrounding areas, coupled with approved environmental mitigation measures and reclamation, it is expected that the BLM conclusions about no significant environmental impacts reached would remain.

The BLM tribal consultation as part of the 2017 Lost Sheep Mine EA did not identify any environmental effect on Tribes or Traditional Cultural Properties.

Ares has obtained or would require a number of other federal, Utah, and local permits and approvals for the Lost Sheep Mine and the associated processing facility.

Ares understands that reclamation is an integral and important component of exploration and mining operations and has BLM and UDOGM approved mine closure and reclamation plans for the Lost Sheep Mine. The emphasis of Ares‟ reclamation plan would be to seal mine portals, adits and shafts for any underground operations, to remove any surface facilities and infrastructure used for operations, and to backfill or otherwise stabilize, where practical, pit areas or glory holes generated by past surface and underground mining. Ares will work to establish a self-sustaining vegetative community on the surface areas disturbed by exploration and mining activities.

Ares currently maintains closure and reclamation bonds with the BLM and UDOGM in the amount of $74,330 for existing and approved exploration activities and mining operations. Ares would continue to maintain such bonding funds for its project work as additional exploration and mining operations are implemented.

The statutory and regulatory authority of the BLM and UDOGM require that Ares execute closure and reclamation financial assurance agreements for site activities. These agreements will ensure that sufficient monies are available to reclaim disturbed areas and conduct monitoring and other measures to prevent or control any long-term environmental impacts in the event that Ares was unable to meet its closure and reclamation obligations.

No construction, exploration or mining operations can commence without the approval of plans of operations, appropriate approvals and permits from BLM and UDOGM, and the execution of financial assurance agreements for reclamation funds to these agencies responsible for the oversight of project closure and reclamation.

**<u>Capital and Operating Costs</u>**

This section is not applicable to the Technical Report.

 ****

***<u>Exploration, Development, and Production</u>***

As described elsewhere in this AIF, Ares has decided to proceed without established mineral resources or mineral reserves, based on historical engineering work, geological reports, historical production data and current engineering work completed or in the process by Ares, the Company intends to move forward with the development of the Spor Mountain Property and initial mining/stockpiling at the Spor Mountain Property and plant commissioning at the Delta Processing Site.

Please see "*Description of the Business - Overview of the Business*" above for more information regarding Ares' current and contemplated exploration, development and production activities.

For further information about the Company, refer to its filings with the Canadian Securities Authorities which may be obtained through the Company's SEDAR+ profile at www.sedarplus.ca.

**Other Projects**

The following summarizes the Company's other non-material projects.

**<u>Ontario, Canada Properties</u>**

The Company holds a 100% interest in five properties located in Ontario, Canada, but does not consider any of these properties to be material.

**Dividends**

There are no restrictions in the Company's articles or notice of articles or pursuant to any agreement or understanding which could prevent the Company from paying dividends. The Company has never declared or paid any dividends on any class of securities. The Company currently intends to retain future earnings, if any, to fund the development and growth of its business, and does not intend to pay any cash dividends on the Common Shares for the foreseeable future. Any decision to pay dividends on the Common Shares in the future will be made by the Ares Board on the basis of earnings, financial requirements and other conditions existing at the time.

**Description of Capital Structure**

**Authorized Capital**

The Company is authorized to issue an unlimited number of Common Shares of which there were 267,801,411 Common Shares issued and outstanding as of June 5, 2026.

**Shares**

There are no special rights or restrictions attached to the Common Shares.

The holders of Common Shares are entitled to receive notice of any meetings of shareholders of the Company, to attend and to cast one vote per Common Shares at all such meetings, except meetings at which only holders of another class or series of shares are entitled to vote separately as such class or series. Holders of Common Shares are entitled to receive on a pro rata basis such dividends, if any, as and when declared by the Ares Board at its discretion from funds legally available therefor. In the event of any liquidation, dissolution or winding up of the Company or other distribution of the assets of the Company among holders of Common Shares for the purposes of winding-up its affairs, the holders of Common Shares will be entitled, subject to the rights of the holders of any other class or series of shares ranking senior to the Common Shares, to receive on a pro rata basis the remaining property or assets of the Company available for distribution, after the payment of debts and other liabilities. The Common Shares do not carry any cumulative voting, pre-emptive, subscription, redemption, retraction or conversion rights, nor do they contain any sinking or purchase fund provisions.

**Other Ares Securities**

The Company's equity incentive plan (the "**Ares Equity Incentive Plan**") permits the Ares Board to grant to directors, officers, employees and consultants of Ares, incentive stock options ("**Options**"), restricted share units ("**RSUs**"), performance share units ("**PSUs**") and deferred share units ("**DSUs**", and together with the Options, RSUs and PSUs, the "**Awards**") to convertible/exercisable to acquire a designated number of authorized but unissued Common Shares from the Company.

The purpose of the Ares Equity Incentive Plan is to promote the long-term success of the Company and the creation of shareholder value by: (i) encouraging the attraction and retention of eligible persons; (ii) encouraging such eligible persons to focus on critical long-term objectives; and (iii) promoting greater alignment of the interests of such eligible persons with the interests of the Company. The Ares Equity Incentive Plan provides flexibility to the Company to grant equity-based incentive awards in the form of Awards to eligible persons.

The Ares Equity Incentive Plan is a "rolling" plan and the maximum number of Common Shares that may be reserved for issuance under the Ares Equity Incentive Plan is 20% of the issued and outstanding Common Shares from time to time.

As of the date hereof, there were 6,100,000 Options issued and outstanding to purchase 6,100,000 Common Shares at a weighted exercise price of $0.63. Other than the Options, Ares does not have any other securities issued and outstanding pursuant to the Ares Equity Incentive Plan.

As of the date hereof, there were 42,183,984 Warrants issued and outstanding, entitling the holders thereof to purchase 42,183,984 Common Shares at a weighted exercise price of $0.43.

Other than the Options and Warrants, Ares does not have any other convertible securities issued and outstanding.

**Market for Securities**

**Trading Price and Volume**

The Common Shares are listed and posted for trading on the CSE under the trading symbol "ARS", on the OTCQX under the trading symbol "ARSMF" and on the FSE under the trading symbol "N8I1". The following table sets forth information relating to the monthly trading of the Common Shares on the CSE for the year ended September 30, 2025.

---

| | | | |
|:---|:---|:---|:---|
| **CSE:** | **CSE:** | **CSE:** | **CSE:** |
| **Period** | **High ($)** | **Low ($)** | **Volume** |
| October 2024 | 0.17 | 0.135 | 666884 |
| November 2024 | 0.17 | 0.1250 | 1448501 |
| December 2024 | 0.21 | 0.16 | 3260770 |
| January 2025 | 0.21 | 0.145 | 2811042 |
| February 2025 | 0.165 | 0.14 | 1694753 |
| March 2025 | 0.21 | 0.15 | 1504502 |
| April 2025 | 0.21 | 0.185 | 813640 |
| May 2025 | 0.33 | 0.165 | 1881009 |
| June 2025 | 0.345 | 0.255 | 3039147 |
| July 2025 | 0.315 | 0.225 | 2021743 |
| August 2025 | 0.295 | 0.25 | 1753094 |
| September 2025 | 0.33 | 0.22 | 2504724 |

---

**Prior Sales**

The following table sets forth information in respect of issuances of securities that are convertible or exchangeable into Common Shares during the financial year ended September 30, 2025.

---

| | | | |
|:---|:---|:---|:---|
| **Date of Issuance<br> (MM/DD/YYYY)** | **Issue/Exercise Price (C$)** | **Number and Type of Securities** | **Reason for Issuance** |
| 10/01/2024 | 0.13 | &nbsp;&nbsp;132,500 Common Shares | &nbsp;&nbsp;Exercise of Options |
| 10/07/2024 | 0.18 | &nbsp;&nbsp;765,170 Common Shares | &nbsp;&nbsp;Private Placement |
| 11/25/2024 | 0.13 | &nbsp;&nbsp;97,000 Common Shares | &nbsp;&nbsp;Exercise of Options |
| 12/02/2024 | 0.13 | &nbsp;&nbsp;95,000 Common Shares | &nbsp;&nbsp;Exercise of Options |
| 12/06/2024 | 0.13 | &nbsp;&nbsp;200,000 Common Shares | &nbsp;&nbsp;Exercise of Options |
| 12/07/2024 | 0.13 | &nbsp;&nbsp;100,000 Common Shares | &nbsp;&nbsp;Exercise of Options |
| 12/19/2024 | 0.13 | &nbsp;&nbsp;104,000 Common Shares | &nbsp;&nbsp;Exercise of Options |
| 12/19/2024 | 0.26 | &nbsp;&nbsp;741,234 Common Shares | &nbsp;&nbsp;Conversion of Debentures |
| 12/18/2024 | 0.19 | &nbsp;&nbsp;845,300 Common Shares | &nbsp;&nbsp;Debt Settlement |
| 12/02/2024 | 0.205 | &nbsp;&nbsp;318,604 Common Shares | &nbsp;&nbsp;Debt Settlement |
| 12/30/2024 | 0.13 | &nbsp;&nbsp;160,000 Common Shares | &nbsp;&nbsp;Exercise of Options |
| 01/03/2025 | 0.13 | &nbsp;&nbsp;100,000 Common Shares | &nbsp;&nbsp;Exercise of Options |
| 01/10/2025 | 0.13 | &nbsp;&nbsp;500,000 Common Shares | &nbsp;&nbsp;Exercise of Options |
| 01/13/2025 | 0.13 | &nbsp;&nbsp;697,000 Common Shares | &nbsp;&nbsp;Exercise of Options |
| 01/14/2025 | 0.13 | &nbsp;&nbsp;315,000 Common Shares | &nbsp;&nbsp;Exercise of Options |
| 01/16/2025 | 0.13 | &nbsp;&nbsp;500,000 Common Shares | &nbsp;&nbsp;Exercise of Options |
| 01/22/2025 | 0.13 | &nbsp;&nbsp;102,500 Common Shares | &nbsp;&nbsp;Exercise of Options |
| 01/23/2025 | 0.13 | &nbsp;&nbsp;32,000 Common Shares | &nbsp;&nbsp;Exercise of Options |
| 01/23/2025 | 0.26 | &nbsp;&nbsp;405,950 Common Shares | &nbsp;&nbsp;Conversion of Debentures |
| 01/27/2025 | 0.13 | &nbsp;&nbsp;300,000 Common Shares | &nbsp;&nbsp;Exercise of Options |
| 01/29/2025 | 0.13 | &nbsp;&nbsp;310,000 Common Shares | &nbsp;&nbsp;Exercise of Options |
| 02/03/2025 | 0.13 | &nbsp;&nbsp;840,000 Common Shares | &nbsp;&nbsp;Exercise of Options |
| 02/06/2025 | 0.13 | &nbsp;&nbsp;1,044,231 Common Shares | &nbsp;&nbsp;Exercise of Options |
| 02/06/2025 | 0.16 | &nbsp;&nbsp;646,100 Common Shares | &nbsp;&nbsp;Debt Settlement |
| 02/07/2025 | 0.13 | &nbsp;&nbsp;1,162,900 Common Shares | &nbsp;&nbsp;Exercise of Options |
| 03/11/2025 | 0.18 | &nbsp;&nbsp;295,887 Common Shares | &nbsp;&nbsp;Debt Settlement |
| 03/24/2025 | 0.185 | &nbsp;&nbsp;1,932,432 Common Shares | &nbsp;&nbsp;Debt Settlement |
| 04/08/2025 | 0.1998<br> 0.24 | &nbsp;&nbsp;7,229,730 Common Shares<br> 7,229,730 Warrants | &nbsp;&nbsp;Private Placement of Units |
| 04/24/2025 | 0.19 | &nbsp;&nbsp;4,809,413 Common Shares | &nbsp;&nbsp;Debt Settlement |
| 06/09/2025 | 0.26 | &nbsp;&nbsp;384,615 Common Shares | &nbsp;&nbsp;Conversion of Debentures |
| 06/18/2025 | 0.32 | &nbsp;&nbsp;387,299 Common Shares | &nbsp;&nbsp;Debt Settlement |
| 06/18/2025 | 0.26 | &nbsp;&nbsp;118,974 Common Shares | &nbsp;&nbsp;Conversion of Debentures |
| 06/20/2025 | 0.26 | &nbsp;&nbsp;2,090,486 Common Shares | &nbsp;&nbsp;Conversion of Debentures |
| 06/23/2025 | 0.26 | &nbsp;&nbsp;595,648 Common Shares | &nbsp;&nbsp;Conversion of Debentures |
| 06/25/2025 | 0.26 | &nbsp;&nbsp;1,009,735 Common Shares | &nbsp;&nbsp;Conversion of Debentures |
| 08/05/2025 | 0.26 | &nbsp;&nbsp;8,769,162 Common Shares | &nbsp;&nbsp;Debt Settlement |

---

**Escrowed Securities & Securities Subject to<br> Contractual Restrictions on Transfer**

To the Company's knowledge, as at September 30, 2025, no securities of the Company were held in escrow or are subject to contractual restrictions on transfer.

**Directors and Officers**

The following table sets forth the name, province or state and country of residence, the position held with the Company and period during which each director and the executive officer of the Company has served as a director and/or executive officer, the principal occupation, and the number and percentage of Common Shares beneficially owned by each director and executive officer of the Company as of the date hereof. The statement as to the Common Shares beneficially owned, controlled or directed, directly or indirectly, by the directors and executive officers hereinafter named is in each instance based upon information furnished by the person concerned and is as at the date hereof. All directors of the Company hold office until the next annual meeting of shareholders of the Company or until their successors are elected or appointed.

---

| | | |
|:---|:---|:---|
| **Name and Residence** | **Position with the Company<br> and Period Served as a<br> Director** | **Principal Occupation During<br> the Preceding Five Years** |
| **James Walker**<sup>(2)(3)</sup> <br> British Columbia, Canada | President and Chief Executive Officer since December 1, 2019 Director since December 1, 2019 | President and Chief Executive Officer of the Company since December 1, 2019.6,999,408<sup>(4)</sup> <br> (2.614%) |
| **Viktoriya Griffin** <br> British Columbia, Canada | Chief Financial Officer since January 21, 2019 | Chief Financial Officer of the Company since January 21, 2019.48,657<sup>(5)</sup> (0.018%) |
| **Tom Klaimanee** <br> British Columbia, Canada | Corporate Secretary since<br> December 1, 2019 | Corporate Secretary of the Company since December 1, 2019 and business consultant.500<sup>(6)</sup> <br> (0.00018%) |
| **Changxian Li**<sup>(2)</sup> <br> Georgia, United States | Director since October 19, 2016 | Co-founder of OMC Investments Limited.1,164,900<sup>(7)</sup> (0.435%) |
| **Bob Li** <br> Chiang Mai, Thailand | Director since June 9, 2020 | Managing Director of the Mujim Group.12,377,237<sup>(8)</sup> <br> (4.622%) |

---

**Notes:**

(1) Percentages calculated on a non-diluted basis, based on 267,801,411 Common Shares outstanding as at June
5, 2026.

(2) Member of the Audit Committee.

(3) Member of the Corporate Governance and Compensation Committee.

(4) Mr. Walker also holds 3,200,000 Options.

(5) Ms. Griffin also holds 1,695,563 Options.

(6) Mr. Klaimanee also holds 350,000 Options.

(7) Of the 1,164,900 Common Shares, 212,500 Common Shares are held directly by Mr. Changxian Li and 952,400
Common Shares are held by OMC Investments Limited, a company owned or controlled by Mr. Changxian Li. Mr. Changxian Li also holds 250,000
Options.

(8) Of the 12,377,237 Common Shares, 9,722,841 Common Shares are held directly by Mr. Bob Li, 2,654,395 are
held by Everbright Fluorchemical Limited, a company owned or controlled by Mr. Bob Li, and 1 Common Share is held by L & S International
Trading Limited, a company owned or controlled by Mr. Bob Li. Mr. Bob Li also holds 250,000 Options.

As at the date hereof, the directors and executive officers of the Company, as a group, beneficially owned, directly or indirectly, or exercised control over, a total of 20,590,702 Common Shares representing approximately 7.688% of the issued and outstanding Common Shares on a non-diluted basis.

The principal occupations, businesses or employments of each of the Company's directors and the senior executive officers within the past five years are disclosed in the brief biographies set out below.

 ****

 ****

***James Walker – President, Chief Executive Officer and Director***. Mr. Walker has been President, Chief Executive Officer, and a director of the Company since December 1, 2019. Mr. Walker has extensive experience in engineering and project management; particularly within mining engineering, mechanical engineering, construction, manufacturing, engineering design, infrastructure, safety management, and nuclear engineering. Mr. Walker also has accounting experience and is a qualified Accounting Technician under The Association of Accounting Technicians (AAT). Mr. Walker holds degrees in Mechanical Engineering, Mining Engineering, and Nuclear Engineering, as well as qualifications in Project Management and Accountancy. Mr. Walker is a Chartered Engineer with the IMechE, a Professional Engineer (PEng) with Engineers and Geoscientists BC, a Chartered Physicist with the IoP, and a qualified project manager with APM.

 ****

***Viktoriya Griffin – Chief Financial Officer***. Ms. Griffin has served as Chief Financial Officer of the Company since January 21, 2019. She is a professional accountant with experience in corporate accounting, financial reporting and financial administration. During the past five years, her principal occupation has been serving as Chief Financial Officer of the Company.

 ****

***Tom Klaimanee – Corporate Secretary***. Mr. Klaimanee is the Corporate Secretary of the Company and a business consultant. During the past five years, his principal occupations have been acting as a business consultant and serving as Corporate Secretary of the Company.

 ****

***Changxian Li – Director***. Mr. Li has served as a director of the Company since October 19, 2016. He brings more than 30 years of global experience in the iron and steel industry, mineral trading and resource investment. He began his career at Mitsubishi Corporation in 1989 and played a role in developing iron ore trade between India, Canada, Chile and China. His commodity-trading experience has spanned markets including Australia, Brazil and the United States. Mr. Li is a co-founder of OMC Investments Limited, and during the past five years his principal occupation has been as a co-founder of OMC Investments Limited.

 ****

***Bob Li – Director***. Mr. Li has served as a director of the Company since June 9, 2020. He is the Managing Director of the Mujim Group, one of Asia's major fluorspar producers. Through that role, he has been involved in fluorspar mining and trading operations, including mines in Thailand and Laos and fluorspar trading activities in India, China and the United Arab Emirates. During the past five years, his principal occupation has been serving as Managing Director of the Mujim Group.

**Corporate Cease Trade Orders, Bankruptcies, Penalties or Sanctions**

No director or executive officer of the Company, is, as at the date hereof, or has been, within the 10 years before the date hereof, a director, chief executive officer or chief financial officer of any company that:

(a) was subject to a cease trade or similar order, or an order that denied the relevant company access to
any exemption under securities legislation, that was in effect for a period of more than 30 consecutive days and that was issued while
the director or executive officer was acting in the capacity as director, chief executive officer or chief financial officer; or

(b) was subject to a cease trade or similar order, or an order that denied the relevant company access to
any exemption under securities legislation, that was in effect for a period of more than 30 consecutive days, that was issued after the
director or executive officer ceased to be a director, chief executive officer or chief financial officer and which resulted from an event
that occurred while that person was acting in the capacity as a director, chief executive officer or chief financial officer.

No director or executive officer of the Company, or a shareholder holding a sufficient number of securities of the Company to affect materially the control of the Company:

(a) is, as at the date hereof, or has been within the 10 years before the date hereof, a director or executive
officer of any company that, while that person was acting in that capacity, or within a year of that person ceasing to act in that capacity,
became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings,
arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets; or

(b) has, within the 10 years before the date hereof, become bankrupt, made a proposal under any legislation
relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement or compromise with creditors, or
had a receiver, receiver manager or trustee appointed to hold the assets of the director, executive officer or shareholder.

No director or executive officer of the Company, or a shareholder holding a sufficient number of securities of the Company to affect materially the control of the Company has been subject to:

(a) any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory
authority or has entered into a settlement agreement with a securities regulatory authority; or

(b) any other penalties or sanctions imposed by a court or regulatory body that would likely be considered
important to a reasonable investor in making an investment decision.

**Conflicts of Interest**

To the best of the Company's knowledge, and other than as disclosed herein, there are no known existing or potential conflicts of interest between the Company and any directors or officers of the Company, except that certain of the directors and officers serve as directors and officers of other public or private companies and therefore it is possible that a conflict may arise between their duties as a director or officer of the Company and their duties as a director or officer of such other companies. See "*Risk Factors – Conflicts of Interest*" above.

The directors and officers of the Company are required by law to act honestly and in good faith with a view to the best interests of the Company and to disclose any interests that they may have in any project or opportunity of the Company. If a conflict of interest arises at a meeting of the Ares Board, any director in a conflict is required to disclose his interest and abstain from voting on such matter in accordance with the BCBCA.

**Audit Committee**

In accordance with applicable Canadian securities legislation and, in particular, National Instrument 52-110 – *Audit Committees* ("**NI 52-110**"), information with respect to the Company's Audit Committee is contained below.

**Audit Committee Charter**

The Audit Committee has adopted a written charter setting out its purpose, which is to assist the Ares Board fulfill its oversight responsibilities relating to accounting and financial reporting process and internal controls. The Audit Committee has the responsibility of, among other things: recommending the Company's independent auditor to the Ares Board, determining the extent of involvement of the independent auditor in reviewing unaudited quarterly financial results, evaluating the qualifications, performance and independence of the independent auditor; and reviewing and recommending approval of the Ares Board's annual and quarterly financial results and management's discussion and analysis. A copy of the Audit Committee Charter is attached hereto as Schedule A.

**Composition of the Audit Committee**

The current members of the Audit Committee are: Messrs. James Walker (Chair) and Changxian Li, each of whom is considered "financially literate" in accordance with NI 52-110. Mr. James Walker is not considered "independent" in accordance with NI 52-110 and Mr. Changxian Li is considered "independent" in accordance with NI 52-110.

**Relevant Education and Experience**

See "*Directors and Officers*" above for a general description of the education and experience of each Audit Committee member that is relevant to the performance of his responsibilities as an Audit Committee member.

**Audit Committee Oversight**

At no time since the commencement of the Company's most recently completed financial year have any recommendations by the Audit Committee respecting the appointment and/or compensation of the Company's external auditors not been adopted by the Ares Board.

**Reliance on Certain Exemptions**

At no time since the commencement of the Company's most recently completed financial year has the Company relied on the exemption in section 2.4 of NI 52-110 (*De Minimis Non-audit Services*), subsection 6.1.1(4) of NI 52-110 (*Circumstance Affecting the Business or Operations of the Venture Issuer*), subsection 6.1.1(5) of NI 52-110 (*Events Outside Control of Member*), subsection 6.1.1(6) of NI 52-110 (*Death, Incapacity or Resignation*), or an exemption from NI 52-110, in whole or in part, granted under Part 8 (*Exemption*) of NI 52-110 by a securities regulatory authority or regulator.

As a venture issuer, the Company is relying on the exemption in section 6.1 of NI 52-110 regarding the requirements of Part 3 (*Composition of the Audit Committee*) and Part 5 (*Reporting Obligations*) of NI 52- 110.

**Pre-Approval Policies and Procedures**

Pursuant to the terms of the Audit Committee Charter, the Audit Committee shall pre-approve all non-audit services to be provided to the Company by the external auditor.

**External Auditor Service Fees**

The following table sets out, by category, the fees billed by the Company's external auditor for the financial years ended September 30, 2025 and 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Year Ended** | **Audit<br> Fees(1)** | **Audit Related Fees(2)** | **Tax<br> Fees(3)** | **All Other Fees(4)** |
| September 30, 2025 | $125500 | $Nil | $13500 | $1224 |
| September 30, 2024 | $93000 | $Nil | $5500 | $1116 |

---

**Notes:**

(1) "Audit Fees" include fees necessary to perform the annual audit of the Company's financial
statements. Audit Fees include fees for review of tax provisions and for accounting consultations on matters reflected in the financial
statements. Audit Fees also include audit or other attest services required by legislation or regulation, such as comfort letters, consents,
reviews of securities filings and statutory audits.

(2) "Audit-Related Fees" include the fees for assurance and related services by the Company's
external auditor that are reasonably related to the performance of the audit or review of the Company's financial statements and
are not reported under "Audit Fees" above These audit-related services provided including due diligence assistance and accounting
consultations on proposed transactions

(3) "Tax
Fees" include the fees for professional services rendered to the Company's external auditor for tax compliance, tax advice
and tax planning. Tax planning and tax advice includes assistance with tax advice related to mergers, acquisitions and dispositions.

(4) "All Other Fees" include the fees billed for products and services provided by the Company's
external auditor, other than "Audit Fees", "Audit-Related Fees" and "Tax Fees" above.

**Legal Proceedings and Regulatory Actions**

To the best of the Company's knowledge, the Company is not and was not, during the financial year ended September 30, 2025, a party to any legal proceedings, nor is any of its property, nor was any of its property during the financial year ended September 30, 2025, the subject of any legal proceedings. As at the date hereof, no such legal proceedings are known to be contemplated.

There have been no penalties or sanctions imposed against the Company by a court relating to securities legislation or by any securities regulatory authority during the financial year ended September 30, 2025, or any other penalties or sanctions imposed by a court or regulatory body against the Company that would likely be considered important to a reasonable investor making an investment decision, and the Company has not entered into any settlement agreements with a court relating to securities legislation or with a securities regulatory authority during the financial year ended September 30, 2025.

**Interest of Management and Others in Material Transactions**

None of the directors or executive officers of the Company, nor any person or company that beneficially owns, controls, or directs, directly or indirectly, more than 10% of any class or series of outstanding voting securities of the Company, nor any associate or affiliate of the foregoing persons, has or has had any material interest, direct or indirect, in any transaction within the three most recently completed financial years or during the current financial year that has materially affected or is reasonably expected to materially affect the Company.

**Registrar and Transfer Agent**

The transfer agent and registrar for the Common Shares is TSX Trust Company, at its principal offices in Toronto, Ontario.

**Material Contracts**

Except for contracts entered into by the Company in the ordinary course of business, the only contracts entered into by the Company during the year ended September 30, 2025 or prior thereto which remain in effect, and can reasonably be regarded as presently material to the Company are:

&nbsp;&nbsp;&nbsp;&nbsp;1. the DoD Contract. See "*Three Year History – Events Subsequent to September 30, 2025* ";

&nbsp;&nbsp;&nbsp;&nbsp;2. the Millard Bond. See "*Three Year History – 2024*" ; and

&nbsp;&nbsp;&nbsp;&nbsp;3. the Sharing Agreements. See "*Three Year History – Events Subsequent to September 30, 2025, 2025, and 2024* ".

**Interests of Experts**

There is no person or company whose profession or business gives authority to a statement made by such person or company and who is named as having prepared or certified a statement, report or valuation described or included in a filing, or referred to in a filing, made under National Instrument 51-102 *Continuous Disclosure Obligations* by the Company during, or related to, the Company's most recently completed financial year other than Manning Elliott LLP, the Company's auditors.

Manning Elliott LLP, Chartered Professional Accountants, provided: (i) an auditors report dated January 28, 2026 in respect of the Company's financial statements for the financial year ended September 30, 2025; and (ii) an auditors report dated January 29, 2025 in respect of the Company's financial statements for the financial year ended September 30, 2024. Manning Elliott LLP has advised that it is independent with respect to the Company within the meaning of the Code of Professional Conduct of the Chartered Professional Accountants of British Columbia and the Public Company Accounting Oversight Board.

**Additional Information**

Additional information relating to the Company may be found under the Company's SEDAR+ profile at www.sedarplus.ca, or on the Company's website at www.aresmining.com.

Additional information, including directors' and officers' remuneration and indebtedness, principal holders of the Company's securities and securities authorized for issuance under equity compensation plans is contained in the management information circular dated August 18, 2025 filed in connection with the annual meeting of shareholders held on October 1, 2025.

Additional financial information is provided in the Company's annual financial statements and MD&A for the financial year ended September 30, 2025, each of which is available under the Company's SEDAR+ profile at www.sedarplus.ca.

**Schedule A**

**AUDIT COMMITTEE CHARTER**

See attached.

SCHEDULE A-1

## Exhibit 4.2

**Exhibit 4.2**

![](ea029307701_ex4-2img1.jpg)

---

| | |
|:---|:---|
| **Table of Contents** |  |
| **Management's Responsibility** | **I** |
| **Independent Auditors' Report** | **II** |
| **Consolidated Statements of Financial Position** | **1** |
| **Consolidated Statements of Loss and Comprehensive Loss** | **2** |
| **Consolidated Statements of Changes in Equity** | **3** |
| **Consolidated Statements of Cash Flows** | **4** |
| **Consolidated Statements of Cash Flows (Cont.)** | **5** |

---

---

| | | |
|:---|:---|:---|
| 1) | Nature of operations and going concern | 6.0 |
| 2) | Summary of material accounting policies | 7.0 |
| 3) | New accounting standards | 15.0 |
| 4) | Critical accounting judgements and key sources of estimation uncertainty | 15.0 |
| 5) | Financial instruments and risk management | 17.0 |
| 6) | Amounts receivable | 18.0 |
| 7) | Share proceeds receivable | 19.0 |
| 8) | Construction in progress | 21.0 |
| 9) | Deposits | 21.0 |
| 10) | Property, plant, and equipment | 22.0 |
| 11) | Exploration and evaluation assets | 23.0 |
| 12) | Short-term loans | 24.0 |
| 13) | Convertible debentures | 24.0 |
| 14) | USDA loan payable | 25.0 |
| 15) | PAB loan payable | 26.0 |
| 16) | State of Utah loan payable | 28.0 |
| 17) | Share capital | 28.0 |
| 18) | Related party transactions and obligations | 35.0 |
| 19) | Segmented disclosure | 36.0 |
| 20) | Capital management | 36.0 |
| 21) | Commitments and contingencies | 36.0 |
| 22) | Income taxes | 37.0 |
| 23) | Subsequent events | 38.0 |

---

---

| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Ares Strategic Mining Inc** *.***<br> ***Canadian Dollars*** |

---

**Management's Responsibility**

To the Shareholders of Ares Strategic Mining Inc.:

Management is responsible for the preparation and presentation of the accompanying Consolidated Financial Statements, including responsibility for significant accounting judgments and estimates in accordance with IFRS Accounting Standards. This responsibility includes selecting appropriate accounting principles and methods, and making decisions affecting the measurement of transactions in which objective judgment is required.

In discharging its responsibilities for the integrity and fairness of the Consolidated Financial Statements, management designs and maintains the necessary accounting systems and related internal controls to provide reasonable assurance that transactions are authorized, assets are safeguarded and financial records are properly maintained to provide reliable information for the preparation of the consolidated financial statements.

The Board of Directors and the Audit Committee are composed primarily of Directors who are neither management nor employees of the Company. The Board is responsible for overseeing management in the performance of its financial reporting responsibilities, and for approving the financial information included in the annual report. The Board fulfils these responsibilities by reviewing the financial information prepared by management and discussing relevant matters with management and the external auditors. The Audit Committee has the responsibility of meeting with management, and the external auditors to discuss the internal controls over the financial reporting process, auditing matters and financial reporting issues. The Audit Committee is also responsible for recommending the appointment of Ares Strategic Mining Inc.'s external auditors.

We draw attention to Note 1 in the Consolidated Financial Statements which indicates the existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern.

Manning Elliott LLP, an independent firm of Chartered Professional Accountants, is appointed by the shareholders to audit the Consolidated Financial Statements and report directly to them; their report follows. The external auditors have full and free access to meet periodically and separately with the Audit Committee, and management to discuss their audit findings.

<u>*"James Walker"*</u> <u>*"Viktoriya Griffin"*</u> <br> James Walker, CEO Viktoriya Griffin, CFO

**I \|** P a g e

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img3.jpg) | 17th floor, 1030 West Georgia St., Vancouver, BC, Canada V6E 2Y3<br>Tel: 604.714.3600 **Fax:** 604.714.3669 **Web:** manningelliott.com |

---

**INDEPENDENT AUDITORS' REPORT**

To the Shareholders and Directors of Ares Strategic Mining Inc.

**Opinion**

We have audited the consolidated financial statements of Ares Strategic Mining Inc. and its subsidiaries (together, the "Company") which comprise:

● the consolidated statements of financial position as at September 30, 2025 and 2024 *;* 

● the consolidated statements of loss and comprehensive loss for the years ended September 30, 2025 and 2024;

● the consolidated statements of changes in shareholders' equity for the years ended September 30, 2025 and 2024;

● the consolidated statements of cash flows for the years ended September 30, 2025 and 2024; and

● the notes to the consolidated financial statements, including material accounting policy information and other explanatory information.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as at September 30, 2025 and 2024, and its consolidated financial performance and its cash flows for the years ended September 30, 2025 and 2024 in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board.

**Basis for Opinion**

We conducted our audits in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the *Auditors' Responsibilities for the Audit of the consolidated financial statements* section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

**Independence**

We are independent of the Company in accordance with the ethical requirements that are relevant to our audits of the consolidated financial statements in Canada. We have fulfilled our other ethical responsibilities in accordance with these requirements.

**Material Uncertainty Related to Going Concern**

We draw attention to Note 1 of the accompanying consolidated financial statements, which describes matters and conditions that indicate the existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

**Key Audit Matters**

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended September 30, 2025. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Material Uncertainty Related to Going Concern section, the key audit matters to be communicated in our auditors' report are as follows:

<u>Assessment of Impairment Indicators on Construction in Progress</u>

We draw attention to notes 2(f), 2(h), 4(a) and 8 of the consolidated financial statements. The carrying amount of the construction in progress amounted to $25,721,163 as of September 30, 2025. The Company's construction in progress is assessed for impairment at the end of each reporting period.

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img3.jpg) | 17th floor, 1030 West Georgia St., Vancouver, BC, Canada V6E 2Y3<br>Tel: 604.714.3600 **Fax:** 604.714.3669 **Web:** manningelliott.com |

---

We identified the assessment of impairment indicators on construction in progress as a key audit matter due to the judgements made by management in their assessment of the presence of impairment indicators related to construction in progress, which in turn led to additional auditor judgment, subjectivity, and effort in performing procedures to evaluate audit evidence relating to the judgments made by management in this area that could give rise to the requirement to prepare an estimate of the recoverable amount of the construction in progress.

Our audit response to the key audit matter was as follows:

● We evaluated management's assessment of impairment indicators;

● We examined the nature and amount of the Company's expenditures in the year compared to the project budgets;

● We assessed the Company's plans and ability to continue with the construction of the assets based on the Company's available funds, funds secured subsequent to year-end, and the Company's history of raising funds through equity or debt instruments; and

● We examined documentation such as the Company's Board of Director's meeting minutes and the Company's press releases to assess whether there may be indications of impairment.

**Other Information**

Management is responsible for the other information. The other information comprises the Company's Management Discussion and Analysis to be filed with the relevant Canadian securities commissions.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed on this other information, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

**Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements**

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's financial reporting process.

**Auditors' Responsibilities for the Audit of the Consolidated Financial Statements**

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

**III \|** P a g e

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img3.jpg) | 17th floor, 1030 West Georgia St., Vancouver, BC, Canada V6E 2Y3<br>Tel: 604.714.3600 **Fax:** 604.714.3669 **Web:** manningelliott.com |

---

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

● Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

● Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.

● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

● Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.

● Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

● Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are, therefore, the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditors' report is Waseem Javed.

![](ea029307701_ex4-2img4.jpg)

CHARTERED PROFESSIONAL ACCOUNTANTS

Vancouver, British Columbia

January 28, 2026

**IV \|** P a g e

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> ***Canadian Dollars*** |

---

**Consolidated Statements of Financial Position**

---

| | | | |
|:---|:---|:---|:---|
|  | <br>Note | **As at 30 September**<br>**2025** | As at 30 September<br>2024 |
| Assets |  |  |  |
| **Current Assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents |  | **6580793** | $93460 |
| &nbsp;&nbsp;&nbsp;Restricted cash | (15) | **1370912** | 2123653 |
| &nbsp;&nbsp;&nbsp;Share proceeds receivable | (7) | **1374825** | 452804 |
| &nbsp;&nbsp;&nbsp;Amounts receivable | (6) | **101386** | 54237 |
| &nbsp;&nbsp;&nbsp;Prepaid amounts and other assets |  | **1403006** | 646026 |
|  |  | **10830922** | 3370180 |
| **Non-current Assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits | (9) | **109798** | 8388432 |
| &nbsp;&nbsp;&nbsp;Share proceeds receivable | (7) | **333613** | 393743 |
| &nbsp;&nbsp;&nbsp;Construction in progress | (8) | **25721163** | 9762608 |
| &nbsp;&nbsp;&nbsp;Property, plant, and equipment | (10) | **8053448** | 6178264 |
| &nbsp;&nbsp;&nbsp;Exploration and evaluation assets | (11) | **8822414** | 8362151 |
|  |  | **43040436** | 33085198 |
|  |  | **53871358** | $36455378 |
| Liabilities |  |  |  |
| **Current Liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | (18) | **2027556** | $3790412 |
| &nbsp;&nbsp;&nbsp;Short-term loans | (12) | **839906** | 441983 |
| &nbsp;&nbsp;&nbsp;Convertible debentures | (13) | **244400** | 1386189 |
| &nbsp;&nbsp;&nbsp;PAB loan payable – current portion | (15) | **2255550** | 1431000 |
| &nbsp;&nbsp;&nbsp;USDA loan payable – current portion | (14) | **6289193** | 5768569 |
|  |  | **11656605** | 12818153 |
| **Non-Current Liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;State of Utah loan payable | (16) | **14403425** |  |
| &nbsp;&nbsp;&nbsp;PAB loan payable | (15) | **10775253** | 11058977 |
| &nbsp;&nbsp;&nbsp;USDA loan payable | (14) | **989775** | - |
|  |  | **37825058** | 23877130 |
| Equity |  |  |  |
| **Equity Attributable to Shareholders** |  |  |  |
| &nbsp;&nbsp;&nbsp;Share capital | (17) | **51538331** | 44479373 |
| &nbsp;&nbsp;&nbsp;Options - Contributed surplus | (17) | **1543500** | 1905500 |
| &nbsp;&nbsp;&nbsp;Warrants - Contributed surplus | (17) | **2353921** | 1930007 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive income ("OCI") |  | **146702** | 158411 |
| &nbsp;&nbsp;&nbsp;Deficit |  | **(38318063)** | (34674978) |
|  |  | **17264391** | 13798313 |
| **Non-controlling interests** | (17) | **(1218091)** | (1220065) |
| **Total Equity** |  | **16046300** | 12578248 |
|  |  | **53871358** | $36455378 |

---

Nature of operations and going concern (1) Capital management (20) <br> Basis of preparation – Statement of Compliance (2) Commitments and contingencies (21) <br> Related party transactions and obligations (18) Subsequent events (23)

The Consolidated Financial Statements were approved by the Board of Directors on 28 January 2026 and were signed on its behalf by:

---

| | |
|:---|:---|
| ***"Paul Sarjeant"*** | ***"Raul Sanabria"*** |
| Paul Sarjeant, Director | Raul Sanabria, Director |

---

-- The accompanying notes form an integral part of the consolidated financial statements --

**1 \|** P a g e

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> ***Canadian Dollars*** |

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**Consolidated Statements of Loss and Comprehensive Loss**

---

| | | | |
|:---|:---|:---|:---|
|  | <br>Note | **Year Ended<br> 30 September**<br>**2025** | Year Ended <br> 30 September<br>2024 |
| **General and Administrative** |  |  |  |
| &nbsp;&nbsp;&nbsp;Office and marketing |  | $**2119332** | $320829 |
| &nbsp;&nbsp;&nbsp;Interest and accretion | (12)(13)(14)(15)(16) | **1645687** | 2002398 |
| &nbsp;&nbsp;&nbsp;Professional fees | (18) | **566756** | 466429 |
| &nbsp;&nbsp;&nbsp;Depreciation | (10) | **275106** | 41115 |
| &nbsp;&nbsp;&nbsp;Management fees | (18) | **150750** | 193500 |
| &nbsp;&nbsp;&nbsp;Transfer agent and filing fees |  | **82927** | 82912 |
| &nbsp;&nbsp;&nbsp;Insurance |  | **56610** | 67117 |
| &nbsp;&nbsp;&nbsp;Shareholder relations |  | **20165** | 18286 |
| &nbsp;&nbsp;&nbsp;Travel |  | **19681** | 1938 |
| &nbsp;&nbsp;&nbsp;Bank charges |  | **6814** | 7540 |
| &nbsp;&nbsp;&nbsp;Resource property (income) |  | **(2358)** | (11529) |
| &nbsp;&nbsp;&nbsp;Foreign exchange loss/(gain) |  | **(81236)** | 45320 |
|  |  | **(4860234)** | (3235855) |
| **Other Income/(Expenses)** |  |  |  |
| &nbsp;&nbsp;&nbsp;Realized and unrealized gain on share proceeds receivable | (7) | **875952** | 16461 |
| &nbsp;&nbsp;&nbsp;Interest income |  | **66718** | 186347 |
| &nbsp;&nbsp;&nbsp;Gain on sale of marketable securities |  | **22857** | 87700 |
| &nbsp;&nbsp;&nbsp;Gain on settlement of debt | (17) | **332951** |  |
| &nbsp;&nbsp;&nbsp;Other (income) expenses |  | **(79355)** | 20000 |
| **Net (Loss) for the Year** |  | **(3641111)** | (2925347) |
| **Other Comprehensive Income (Loss)** |  |  |  |
| &nbsp;&nbsp;&nbsp;Foreign operations – foreign exchange |  | **(11709)** | 19224 |
| **Comprehensive (Loss) for the Year** |  | $**(3652820)** | $(2906123) |
| **Net (Loss) Attributed to:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Shareholders |  | **(3643085)** | (2928737) |
| &nbsp;&nbsp;&nbsp;Non-controlling interest |  | **1974** | 3390 |
|  |  | $**(3641111)** | $(2925347) |
| **Comprehensive (Loss) Attributed to:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Shareholders |  | **(3654794)** | (2909513) |
| &nbsp;&nbsp;&nbsp;Non-controlling interest |  | **1974** | 3390 |
|  |  | $**(3652820)** | $(2906123) |
| **Basic and Diluted Loss per Share** |  | $**(0.02)** | $(0.02) |
| **Weighted Average Number of Common Shares Outstanding** |  | **190527939** | 150543048 |

---

-- The accompanying notes form an integral part of the consolidated financial statements --

**2 \|** P a g e

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> ***Canadian Dollars*** |

---

**Consolidated Statements of Changes in Equity**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Equity attributable to shareholders** | **Equity attributable to shareholders** | **Equity attributable to shareholders** | **Equity attributable to shareholders** | **Equity attributable to shareholders** | **Equity attributable to shareholders** | **Equity attributable to shareholders** | **Equity attributable to shareholders** | **Equity attributable to shareholders** | **Equity attributable to shareholders** |
|  | **Shares<br> #** | **Share<br> capital<br> $** | **Subscriptions<br> received<br> $** | **Options<br> $** | **Warrants<br> $** | **Accumulated<br> OCI<br> $** | **Deficit<br> $** | **Total<br> Equity<br> $** | **Equity<br> attributable<br> to NCI<br> $** | **Total<br> $** |
| Balance as at 1 October 2023 | 139000722 | 39582659 | 4725 | 1929500 | 1531855 | 139187 | (31746241) | 11441685 | (1223455) | 10218230 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares issued for private placement, net | 15938596 | 2578469 | 90875 |  | 36000 |  |  | 2705344 |  | 2705344 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares issued in conjunction with the PAB loan | 6780500 | 1356100 |  |  |  |  |  | 1356100 |  | 1356100 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares issued for debt settlement | 2335537 | 421760 |  |  |  |  |  | 421760 |  | 421760 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares issued for Sorbie | 8916666 | 362935 |  |  | 362152 |  |  | 725087 |  | 725087 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock options exercised | 445000 | 81850 |  | (24000) |  |  |  | 57850 |  | 57850 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  |  |  |  |  | 19224 |  | 19224 |  | 19224 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss for the year | - | - | - | - | - | - | (2928737) | (2928737) | 3390 | (2925347) |
| Balance as at 30 September 2024 | 173417021 | 44383773 | 95600 | 1905500 | 1930007 | 158411 | (34674978) | 13798313 | (1220065) | 12578248 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares issued for private placement, net | **765170** | **137731** | **(95600)** | **-** | **-** | **-** | **-** | **42131** | **-** | **42131** |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares issued for convertible debt | **5346642** | **1390127** | **-** | **-** | **-** | **-** | **-** | **1390127** | **-** | **1390127** |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares issued for debt settlement | **18004197** | **4069432** | **-** | **-** | **-** | **-** | **-** | **4069432** | **-** | **4069432** |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock options exercised | **6792131** | **1244977** | **-** | **(362000)** | **-** | **-** | **-** | **882977** | **-** | **882977** |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares issued for Sorbie | **7229730** | **312291** | **-** | **-** | **423914** | **-** | **-** | **736205** | **-** | **736205** |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive loss | **-** | **-** | **-** | **-** | **-** | **(11709)** | **-** | **(11709)** | **-** | **(11709)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss for the year | **-** | **-** | **-** | **-** | **-** | **-** | **(3643085)** | **(3643085)** | **1974** | **(3641111)** |
| **Balance as at 30 September 2025** | **211554891** | **51538331** | **-** | **1543500** | **2353921** | **146702** | **(38318063)** | **17264391** | **(1218091)** | **16046300** |

---

-- The accompanying notes form an integral part of the consolidated financial statements --

**3 \|** P a g e

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

---

**Consolidated Statements of Cash Flows**

---

| | | | |
|:---|:---|:---|:---|
|  | <br>Note | **Year Ended<br> 30 September**<br>**2025** | Year Ended <br> 30 September<br>2024 |
| Operating Activities |  |  |  |
| **Loss for the Year** |  | $**(3641111)** | $(2925347) |
| **Items not Affecting Cash** |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest and accretion on convertible debt | (13) | **248338** | 672324 |
| &nbsp;&nbsp;&nbsp;Interest and accretion on loans | (14)(15)(16) | **496726** | 1330074 |
| &nbsp;&nbsp;&nbsp;Depreciation | (10) | **275106** | 39901 |
| &nbsp;&nbsp;&nbsp;Unrealized gain on share proceeds receivable | (7) | **(668045)** | (16461) |
| &nbsp;&nbsp;&nbsp;Gain on sale of marketable securities |  | **-** | (87700) |
|  |  | **(3288986)** | (987209) |
| **Net Change in Non-cash Working Capital** |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities |  | **2243649** | 1956189 |
| &nbsp;&nbsp;&nbsp;Amounts receivable |  | **(47149)** | (32867) |
| &nbsp;&nbsp;&nbsp;Prepaid amounts and other assets |  | **(840690)** | (530656) |
|  |  | **(1933176)** | 405457 |
| Investing Activities |  |  |  |
| &nbsp;&nbsp;&nbsp;Construction in progress | (8) | **(7596211)** | (4192791) |
| &nbsp;&nbsp;&nbsp;Purchase of equipment | (10) | **(407233)** |  |
| &nbsp;&nbsp;&nbsp;Resource property – expenditures | (11) | **(412587)** | (412587) |
| &nbsp;&nbsp;&nbsp;Advance on construction in progress |  | **-** | (8109450) |
| &nbsp;&nbsp;&nbsp;Construction of ramp | (10) | **(1559472)** | (3317500) |
|  |  | **(9975503)** | (16032328) |
| Financing Activities |  |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from State of Utah, net of costs | (16) | **14143171** |  |
| &nbsp;&nbsp;&nbsp;Proceeds from the USDA loan, net of repayments | (14) | **1366488** |  |
| &nbsp;&nbsp;&nbsp;Short term loan (paid)/received | (12) | **397923** | 95293 |
| &nbsp;&nbsp;&nbsp;Proceeds from options exercised |  | **882977** | 57850 |
| &nbsp;&nbsp;&nbsp;Proceeds from share proceeds receivable, net | (7) | **605267** |  |
| &nbsp;&nbsp;&nbsp;Proceeds from private placement |  | **42131** | 2705344 |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of marketable securities |  | **-** | 219548 |
| &nbsp;&nbsp;&nbsp;Transaction issue costs |  | **-** | (907572) |
| &nbsp;&nbsp;&nbsp;Proceeds from PAB loan, net |  | **-** | 1398768 |
|  |  | **17437977** | 16158146 |
| **Net effect of foreign currency translation** |  | **205294** | 22187 |
| **Net Increase/(Decrease) in cash and cash equivalents** |  | **5734592** | 553462 |
| Cash and cash equivalents – Beginning of Year |  | **2217113** | 1663651 |
| **Cash and cash equivalents – End of Year** |  | $**7951705** | $2217113 |

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**4 \|** P a g e

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

---

**Consolidated Statements of Cash Flows (Cont.)**

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> 30 September<br> 2025** | Year Ended <br>30 September <br>2024 |
| **Cash position comprised of:** |  |  |
| &nbsp;&nbsp;&nbsp;Restricted cash | $**1370912** | $2123653 |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | **6580793** | 93460 |
| **Supplementary Disclosure of Cash Flow Information:** |  |  |
| &nbsp;&nbsp;&nbsp;Shares issued for financial asset – Sorbie | **312291** | 362935 |
| &nbsp;&nbsp;&nbsp;Interest paid | **2330803** | 1229858 |

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**5 \|** P a g e

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

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**Notes to the Consolidated Financial Statements**

1) Nature of operations and going concern

Ares Strategic Mining Inc. ("Ares" or the "Company"), was incorporated pursuant to the Company Act (Ontario) by registration of its Memorandum and Articles on 20 November 2009. On 9 July 2010, the Company registered in British Columbia for extra provincial registration as the Company's administrative office is located at 1001-409 Granville Street, Vancouver BC, V6C 1T2. The Company is classified as a Junior Natural Resource Mining Company and is listed on the Canadian Securities Exchange under the stock symbol "ARS".

The Company was previously in the business of acquiring and exploring lithium properties in Nevada and Arizona. On 18 February 2020, the Company completed a three-cornered amalgamation transaction (the "Amalgamation") with American Strategic Minerals Inc. ("ASM"). As a result, Ares is focusing on progressing its fluorspar projects towards exploitation, production, and supplying metspar and acidspar to the markets.

These consolidated financial statements (the "Financial Statements") have been prepared on the basis of the accounting principles applicable to a going concern, which assumes the Company will be able to continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of operations. There are several adverse conditions that cast significant doubt upon the soundness of this assumption. The business of mining and exploration involves a high degree of risk and there can be no assurance that current exploration programs will result in profitable mining operations. The recoverability of exploration and evaluation expenditures and construction in progress is dependent upon several factors; these factors include the discovery of economically recoverable reserves, the ability of the Company to obtain the necessary financing to complete the development of these properties and construction in progress, and future profitable production or proceeds from the disposition of mineral properties or construction in progress once completed.

Consistent with other companies in the mineral exploration sector, the Company has incurred operating losses since inception, has limited sources of revenue, is unable to self-finance operations and has significant cash requirements to meet its overhead, maintain its mineral interests and fund the completion of its construction in progress. These factors indicate the existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern.

As discussed in Note 14, the Company was in breach of certain financial covenants as at September 30, 2025. The lender has not demanded repayment; however, this condition contributes to the material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern.

For the Company to continue to operate as a going concern, it must continue to obtain additional financing to maintain operations. Although the Company has been successful in the past at raising funds, there can be no assurance that this will continue in the future. Subsequent to year-end , the Company has raised additional equity financing and plans to obtain additional equity and debt financing to continue to explore and develop its mineral properties and complete its construction in progress. If the going concern assumptions were not appropriate for these Financial Statements, then adjustments would be necessary to the carrying value of assets and liabilities, the reported expenses and the statement of financial position classifications used, and such adjustments could be material.

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| | | |
|:---|:---|:---|
| **(Rounded 000's)** | **30 September<br> 2025** | 30 September<br> 2024 |
| &nbsp;&nbsp;&nbsp;Working capital (deficit) | $**(826000)** | $(9448000) |
| &nbsp;&nbsp;&nbsp;Accumulated deficit attributed to shareholders | $**(38318000)** | $(34675000) |

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

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**Notes to the Consolidated Financial Statements (Cont.)**

**2)** **Summary of material accounting policies**

**a)** **Basis of presentation** 

<u>Statement of Compliance</u>

These Financial Statements, including comparatives, have been prepared in accordance with IFRS Accounting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). The Financial Statements have been prepared on a historical cost basis, except for financial instruments classified as financial instruments at fair value through profit and loss, which are stated at their fair value. In addition, these Financial Statements have been prepared using the accrual basis of accounting except for cash flow information.

The policies set out were consistently applied to all the years presented unless otherwise noted below. The preparation of the Financial Statements requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies.

The preparation of the Financial Statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, profit and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

These Financial Statements incorporate the accounts of Ares and the entities controlled by the Company, which consist of:

● Canadian Iron Metallics Inc. ("Canadian Iron"), which was incorporated on 11 September 2014 in Ontario, Canada, owned 85% by Lithium Energy.

● Griffith Iron Metallics Inc. ("Griffith Iron"), which was incorporated on 11 September 2014 in Ontario, Canada, wholly owned by Canadian Iron.

● Karas Iron Metallics Inc. ("Karas Iron"), which was incorporated on 11 September 2014 in Ontario, Canada, wholly owned by Canadian Iron.

● 1200944 BC Ltd., which was formed on 18 February 2020 in BC, Canada as part of the Amalgamation with ASM, wholly owned by Ares.

● 101017 BC Inc., which was incorporated on 11 October 2017 in the state of Delaware in the United States, wholly owned by 1200944 BC Ltd.

● Ares Strategic Mining, Inc. ("Ares Utah"), which was incorporated on 12 May 2020 in the state of Utah in the United States, wholly owned by Ares.

Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity to obtain benefits from its activities. The financial statements of subsidiaries are included in the Financial Statements from the date that control commences until the date that control ceases. All significant intercompany transactions and balances have been eliminated.

Non-controlling interest in the net assets of consolidated subsidiaries are identified separately from the Company's equity. Non-controlling interest consists of the non-controlling interest at the date of the original business combination plus the non-controlling interest's share of changes in equity since the date of acquisition.

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

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**Notes to the Consolidated Financial Statements (Cont.)**

**b)** **Foreign currency** 

These Financial Statements are presented in Canadian dollars, which is the functional and presentation currency of the parent. Each entity determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency. The functional currency of the Company's Canadian subsidiaries is the Canadian dollar. The functional currency of 101017 BC Inc. and ARES Strategic Mining Inc. (Utah) is the United States dollar.

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the end of reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates. Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Changes in the fair value of monetary securities denominated in foreign currency classified as fair value through profit or loss are analysed between translation differences and other changes in the carrying amount of the security. Translation differences are recognized in the consolidated statements of loss and comprehensive loss and other changes in carrying amount are recognized in equity.

Translation differences on non-monetary financial assets are included in equity.

**c)** **Cash and cash equivalents** 

The Company considers cash and cash equivalents to include amounts held in banks and highly liquid investments with original maturities at a point of purchase of three months or less.

**d)** **Restricted cash** 

Restricted cash represents cash as balances that are not available for general use by the Company and are typically held for specific purposes, such as for purchase and construction of fluorspar related capital assets.

**e)** **Marketable securities** 

Marketable securities consist of equity securities over which the Company does not have control or significant influence.

**f)** **Property, plant, and equipment** 

Property, plant, and equipment are depreciated using the straight-line method based on estimated useful lives. Land is not depreciated.

Where an item of property, plant, and equipment is comprised of major components with different useful lives, the components are accounted for as separate items of property, plant, and equipment.

Expenditures incurred to replace a component of an item of property, plant, and equipment that is accounted for separately, including major inspection and overhaul expenditures, are capitalized. Directly attributable expenses incurred for major capital projects and site preparation are capitalized until the asset is brought to a working condition for its intended use. These costs include dismantling and site restoration costs to the extent these are recognized as a provision.

The costs of day-to-day servicing are recognized in profit or loss as incurred. These costs are more commonly referred to as "maintenance and repairs."

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

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**Notes to the Consolidated Financial Statements (Cont.)**

Financing costs directly associated with the construction or acquisition of qualifying assets are capitalized at interest rates relating to loans specifically raised for that purpose, or at the average borrowing rate where the general pool of group borrowings is utilized. Capitalization of borrowing costs ceases when the asset is substantially complete.

The depreciation method, useful life and residual values are assessed annually.

Property, plant, and equipment are stated, in the consolidated statement of financial position, at cost less accumulated depreciation and accumulated impairment losses. Assets in the course of construction are carried at cost, less any recognized impairment loss. Depreciation of these assets commences when the assets are ready for their intended use. The cost of property, plant, and equipment includes directly attributed incremental costs incurred in their acquisition and installation.

Assets held under capital lease are depreciated over their expected useful lives on the same basis as owned assets, or where shorter, the term of the relevant lease. The gain or loss arising on the disposal or retirement of an item of equipment is determined as the difference between the sale proceeds and the carrying amount of the asset and is recognized in the consolidated statements of loss and comprehensive loss.

<u>Subsequent costs</u>

The cost of replacing part of an item within property, plant, and equipment is recognized when the cost is incurred if it is probable that the future economic benefits will flow to the Company and the cost of the item can be measured reliably. All other costs are recognized as an expense as incurred.

<u>Impairment</u>

The Company's tangible and intangible assets are reviewed for an indication of impairment at each consolidated statement of financial position date. If indication of impairment exists, the asset's recoverable amount is estimated.

An impairment loss is recognized when the carrying amount of an asset, or its cash-generating unit, exceeds its recoverable amount. A cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. Impairment losses are recognized in profit and loss for the year.

Impairment losses recognized in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to cash-generating units and then to reduce the carrying amount of the other assets in the unit on a pro-rata basis.

The recoverable amount is the greater of the asset's fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs.

<u>Reversal of impairment</u>

An impairment loss is reversed if there is an indication that there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. An impairment loss with respect to goodwill is never reversed.

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

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**Notes to the Consolidated Financial Statements (Cont.)**

Depreciation is charged so as to write off the cost of the asset using the straight-line method over the estimated useful lives as follows:

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;Computer Equipment | 1-3 years |
| &nbsp;&nbsp;&nbsp;Field Equipment | 3-10 years |
| &nbsp;&nbsp;&nbsp;Auto | 10 years |
| &nbsp;&nbsp;&nbsp;Building Ramp | 20 years |
| &nbsp;&nbsp;&nbsp;Ramp | 20 years |

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**g)** **Exploration and evaluation assets** 

The Company is currently in the exploration stage with all of its mineral interests. Exploration and evaluation costs include the costs of acquiring licenses, costs incurred to explore and evaluate properties, and the fair value, upon acquisition, of mineral properties acquired in a business combination.

Costs of acquisition and exploration of mineral properties are capitalized until either commercial production is established or a property is abandoned. Once commercial production has commenced, the net costs of the applicable property are charged to operations using the unit-of-production method based on estimated proven and probable recoverable reserves. The net costs related to abandoned properties are charged to income. Office and administration costs not specifically related to mineral projects are expensed in the year in which they occur.

The Company reviews the indicators of impairment of each property on an annual basis, at a minimum. This review generally is made by reference to the timing of exploration work, work programs proposed, and the exploration results achieved by the Company and others. When the indicators of impairment exist, the carrying value of a property is compared to its net recoverable amount. An impairment adjustment is made for the decline in fair value.

The amounts shown for the exploration and evaluation assets represent costs incurred to date and do not reflect present or future values. Acquisition costs represent shares or cash paid to acquire the rights to the resource property, while exploration expenditures represent amounts paid to explore and develop the resource properties. The recoverability of these capitalized costs is dependent upon the existence of economically recoverable reserves and the ability of the Company to obtain necessary financing to successfully complete their exploration program.

From time to time, the Company may acquire or dispose of mineral interests pursuant to the terms of option agreements. Since options are exercisable entirely at the discretion of the optionee, the amounts payable or receivable are not recorded. Option payments are recorded in the year that the payments are made or received. The Company does not accrue costs to maintain mineral interests in good standing.

**h)** **Construction in progress** 

Expenditure incurred during the construction period on the projects under implementation are treated as pre-operative expenses pending allocation to property, plant and equipment and are included under construction in progress, which is stated at the amount incurred up to the date of the consolidated statements of financial position.

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

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**Notes to the Consolidated Financial Statements (Cont.)**

**i)** **Capitalized borrowing costs** 

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset that takes a substantial period of time to get ready for its intended use are capitalized until such time that the assets are substantially ready for their intended use. Other borrowing costs are recognized as an expense in the period in which they are incurred.

Where funds are borrowed specifically to finance a project, the amount capitalized represents the actual borrowing costs incurred. Where the funds used to finance a project form part of general borrowings, the amount capitalized is calculated using a weighted average of interest rates applicable to relevant general borrowings of the Company during the period, to a maximum of actual borrowing costs incurred.

**j)** **Provision for reclamation and remediation** 

The Company recognizes liabilities for statutory, contractual, constructive or legal obligations associated with the retirement of property, plant and equipment when those obligations result from the acquisition, construction, development or normal operation of the assets. The net present value of future rehabilitation cost estimates is capitalized along with a corresponding increase in the rehabilitation provision in the period incurred. Discount rates using a pre-tax rate that reflect the time value of money are used to calculate the net present value. The rehabilitation asset is depreciated on the same basis as mining assets.

The Company's estimates of reclamation costs could change because of changes in regulatory requirements and assumptions regarding the amount and timing of the future expenditures. These changes are recorded directly to mining assets with a corresponding entry to the rehabilitation provision. The Company's estimates are reviewed annually for changes in regulatory requirements, effects of inflation and changes in estimates.

Changes in the net present value, excluding changes in the Company's estimates of reclamation costs, are charged to profit and loss for the year.

The costs of rehabilitation projects that were included in the rehabilitation provision are recorded against the provision as incurred. The cost of ongoing current programs to prevent and control pollution is charged against profit and loss as incurred.

**k)** **Provisions** 

Provisions are recorded when a present legal or constructive obligation exists as a result of past events where it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the consolidated statement of financial position date, considering the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement will be received, and the amount receivable can be measured reliably.

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| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

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**Notes to the Consolidated Financial Statements (Cont.)**

**l)** **Income Taxes** 

Income tax expense comprises current and deferred tax. Income tax expense is recognized in the consolidated statement of loss and comprehensive loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.

Deferred tax is recognized using the liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized on the initial recognition of assets or liabilities in a transaction that is not a business combination. In addition, deferred tax is not recognized for taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis, or their tax assets and liabilities will be realized simultaneously.

A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

**m)** **Financial instruments** 

All financial instruments are measured at initial recognition at fair value plus any transaction costs that are directly attributable to the acquisition of the financial instruments except for transaction costs related to financial instruments classified as at fair value through profit or loss (FVPL) which are expensed as incurred.

The initial classification of a financial asset depends upon the Company's business model for managing its financial assets and the contractual terms of the cash flows. There are three categories into which the Company can classify its financial assets:

&nbsp;&nbsp;&nbsp;&nbsp;i) Amortized
cost. A financial asset is measured at amortized cost if the contractual cash flows to repay the principal and interest are made at specific
dates and if the Company's business model is to collect the contractual cashflows. Subsequent measurement uses the effective interest
method, less any provision for impairment.

ii) Fair value through other comprehensive income (FVOCI). A financial asset is measured at FVOCI if the Company's business model is both to collect the contractual cashflows and sell assets and the contractual terms of the assets give rise on specified dates to cash flows that are solely repayments of principal and interest.

iii) Fair value through profit or loss (FVPL). A financial asset is measured at FVPL if it cannot be measured at amortized cost or FVOCI. At initial recognition the Company may also irrevocably designate a financial asset at FVPL if doing so eliminates or significantly reduces a measurement or recognition inconsistency. Financial assets at FVPL are measured at fair value at the end of each reporting period, with any fair value gains or losses recognized in profit or loss to the extent they are not part of a designated hedging relationship.

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| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

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**Notes to the Consolidated Financial Statements (Cont.)**

A financial asset is derecognized when the Company no longer has the rights to the contractual cash flows due to expiration of that right or the transfer of the risks and rewards of ownership to another party. The Company recognizes a loss allowance for expected credit losses on its financial assets using the simplified approach which permits the use of the lifetime expected loss provision for all amounts receivables. At each reporting date the Company assesses impairment of amounts receivable on a collective basis as its amounts receivable possess shared credit risk characteristics and have been grouped based on days past due. The loss allowance will be based upon the Company's historical credit loss experience over the expected life of trade receivables and contract assets, adjusted for forward looking estimates. Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. The Company's financial assets consist of cash and cash equivalents, restricted cash, and share proceeds receivable which have been classified at FVPL.

A financial liability is initially classified as measured at amortized cost or FVPL. A financial liability is classified as measured at FVPL if it is held for trading, a derivative, contingent consideration of an acquirer in a business combination, or has been designated as FVPL on initial recognition. Financial liabilities at FVPL are measured at fair value with changes in fair value, along with any interest expense, recognized in profit or loss. All other financial liabilities are initially measured at fair value less directly attributable transaction costs and are subsequently measured at amortized cost using the effective interest method. The Company's financial liabilities consist of accounts payable, short-term loans, convertible debentures, and long-term loans, which have been classified as financial liabilities at amortized cost and are measured at amortized cost using the effective interest method.

A financial liability is derecognized when the obligation is discharged, cancelled or expired.

**n)** **Share capital** 

Share capital issued for non-monetary consideration is recorded at an amount based on the quoted market value of the Company's shares at the time of issuance.

The Company engages in equity financing transactions to obtain the funds necessary to continue operations and explore and evaluate mineral properties. These equity financing transactions may involve issuance of common shares or units. A unit comprises a certain number of common shares and a certain number of share purchase warrants ("Warrants"). Depending on the terms and conditions of each equity financing agreement ("Agreement"), the Warrants are exercisable into additional common shares prior to expiry at a price stipulated by the Agreement. Warrants that are part of units are measured at fair value on the date of issue using the Black-Scholes option pricing model and included in share capital with the common shares that were concurrently issued, based on their relative fair values. Broker compensation options are classified as issuance costs and a deduction from equity and measured at fair value on the date of issue using the Black-Scholes option pricing model.

After issuance the terms of Warrants may be modified throughout the Warrant life. At the time of the modification the Warrant is valued under the new terms immediately preceding and immediately after the modification using the Black-Scholes pricing model. The incremental value in the Warrants issued as compensation for services is added to warrant equity and a warrant modification expense is recorded to the consolidated statement of loss and comprehensive loss.

**o)** **Share-based payments** 

The Company grants stock options to buy common shares of the Company to directors, officers, employees and service providers. The board of directors grants such options for periods of up to five years, with vesting periods determined at its sole discretion and at prices equal to or greater than the closing market price on the day preceding the date the options were granted.

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

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**Notes to the Consolidated Financial Statements (Cont.)**

The fair value of the options is measured at grant date, using the Black-Scholes option pricing model, and is recognized during the year that the employees earn the options. The fair value is recognized as an expense with a corresponding increase in equity. The amount recognized as expense is adjusted to reflect the number of share options expected to vest. Forfeitures of stock options are accounted for as incurred.

**p)** **Loss per share** 

Basic loss per share is computed by dividing the net loss available to common shareholders by the weighted average number of shares outstanding during the reporting year. Diluted earnings per share is computed like basic earnings per share except that the weighted average shares outstanding are increased to include additional shares for the assumed exercise of stock options and warrants, if dilutive. The number of additional shares is calculated by assuming that outstanding stock options and warrants were exercised and that the proceeds from such exercises were used to acquire common stock at the average market price during the reporting periods.

**q)** **Convertible debentures** 

The liability, equity and other (when applicable) components of convertible debentures are presented separately on the consolidated statements of financial position, starting from initial recognition. The Corporation determines the carrying amount of the financial liability by discounting the stream of future payments at the prevailing market rate for a similar liability of comparable credit status and substantially providing the same cash flows. Subsequently, the liability component is then increased by accretion of the discounted amounts to reach the nominal value of the convertible debenture at maturity, which is recorded in the consolidated statements of loss and comprehensive loss as accretion expense.

The carrying amount of other components (when applicable), such as warrants, is obtained by deducting the nominal value of the debentures and the present value of future capital payments at the prevailing market rate for a convertible debenture without warrants. The carrying amount of the equity component is calculated by deducting the carrying amount of the financial liability and the carrying amounts of any other components (when applicable) from the amount of the convertible debenture and is presented in Equity as an equity component of convertible debenture. The equity component is not re-measured subsequent to initial recognition, except on conversion or expiry.

The transaction costs are distributed between liability, equity and other components (when applicable) on a pro-rata basis, according to their carrying amounts.

**r)** **Comprehensive income (loss)** 

Comprehensive income (loss) is the change in the Company's net assets that results from transactions, events and circumstances from sources other than the Company's shareholders and includes items that would not normally be included in net profit/loss such as unrealized gains or losses on available-for-sale investments, gains or losses on certain derivative instruments and foreign currency gains or losses related to self-sustaining operations if the functional currency is not the Canadian dollar. The Company's comprehensive loss is presented in the consolidated statements of loss and comprehensive loss and the consolidated statements of changes in equity.

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|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

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**Notes to the Consolidated Financial Statements (Cont.)**

3) New accounting standards

The following amendments to standards and interpretations became effective for the annual periods beginning on or after 1 January 2024. The application of these amendments and interpretations had no significant impact on the Company's consolidated financial position or results of operations. The IASB and the IFRIC have issued the following new and revised standards and interpretations that are not yet effective for the relevant reporting periods and the Company has not early adopted these standards, amendments and interpretations. However, the Company is currently assessing what impact the application of these standards or amendments will have on the consolidated financial statements of the Company. The Company intends to adopt these standards, if applicable, when the standards become effective:

● Effective 1 January 2027, the Company will adopt IFRS 18, Presentation and Disclosure in Financial Statements. The new standards replace IAS 1, Presentation of Financial Statements, and for all entities will -

○ Introduce a new defined structure for the statement of profit and loss and require the classification of income and expenses in that statement into one of five categories: operating; investing; financing; income taxes; and discontinued operations. IFRS 18 introduces definitions of these categories for purposes of the statement of profit and loss. Specific categorization requirements will apply to entities whose 'main business activity' is to

○ Provide financing to customers or to invest in specified assets. Entities will also be required to present new subtotals for 'operating profit or loss' and 'profit or loss before financing and income taxes;

○ Require disclosure of 'management-defined performance measures' (MPMs) in a single note to the financial statements. MPMs are subtotals of income and expenses that an entity uses in public communications outside of its financial statements, to communicate management's view of an aspect of the financial performance of the entity as a whole to users. Entities must disclose a reconciliation between the measure and the most directly comparable total or subtotal specifically required to be disclosed by IFRS Accounting Standards or subtotal listed in IFRS 18;

○ Enhance guidance about how to group information within the financial statements; and

○ For the statement of cash flows, require that 'operating profit or loss' be used as the starting point for determining cash flows from operating activities under the indirect method, and remove the optionality around classification of cash flows from interests and dividends.

IFRS 18 is effective for annual reporting periods beginning on or after 1 January 2027, including for interim financial statements. Earlier application is permitted. The new standard is to be applied retrospectively, and, in the year of adoption, a reconciliation is required between how the statement of profit or loss was presented in the comparative period under IAS 1 and how it is presented in the current year under IFRS 18.

4) Critical accounting judgements and key sources of estimation uncertainty

In the application of the Company's accounting policies, management is required to make judgments, estimates and assumptions about the carrying amount and classification of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revisions affect only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.

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|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

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**Notes to the Consolidated Financial Statements (Cont.)**

The following are the critical judgments and areas involving estimates, that management have made in the process of applying the Company's accounting policies and that have the most significant effect on the amount recognized in the Financial Statements.

**a)** **Judgements** 

Income taxes

Deferred tax assets are recognized for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the extent that probable that future taxable profit will be available against which the deductible temporary differences and carry-forward of unused tax assets and unused tax losses can be utilized. In addition, the valuation of tax credits receivable requires management to make judgements on the amount and timing of recovery.

Going concern evaluation

As discussed on Note 1, these Financial Statements have been prepared under the assumptions applicable to a going concern. If the going concern assumption were not appropriate for these Financial Statements, then adjustments would be necessary to the carrying value of assets and liabilities, the reported expenses and the consolidated statement of financial position classifications used and such adjustments could be material.

The Company reviews the going concern assessment at the end of each reporting period. There were no material changes to the assessment as at 30 September 2025.

Exploration evaluation assets

The Company makes certain estimates and assumptions regarding the recoverability of the carrying values of exploration and evaluation assets. The amounts shown for exploration and evaluation assets do not necessarily represent present or future values. The recoverability of the assets' carrying values is dependent upon the determination of economically recoverable reserves, the ability of the Company to obtain the necessary financing and permits to complete development and future profitable production or proceeds from the disposition thereof.

The Company has taken steps to verify title to exploration and evaluation assets in which it has or is in the process of earning an interest, including review of condition of title reports, vesting deeds, mining claim location notices and filings, and property tax and other public records and is not presently aware of any title defects. The procedures the Company has undertaken and may undertake in the future to verify title provide no assurance that the underlying properties are not subject to prior agreements or transfers of which the Company is unaware.

Long-lived assets

The Company makes certain judgements in its assessment of whether indicators of impairment exist with respect to its long-lived assets. The carrying amounts of the Company's long-lived assets are reviewed at each reporting date for indicators of impairment. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the amount of the impairment, if any. The recoverable amount of an asset is evaluated at the cash-generating unit level, which is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or group of assets. The recoverable amount of a CGU is the greater of its fair value less costs to sell and its value in use.

**16 \|** P a g e

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

---

**Notes to the Consolidated Financial Statements (Cont.)**

**b)** **Estimates** 

Useful lives of property, plant and equipment

Useful lives are estimated by management based on the expected period over which the assets are anticipated to be available for use, taking into consideration factors such as expected usage, physical wear and tear, technical or commercial obsolescence, and legal or other limits on the use of the assets. The useful lives and residual values of property, plant and equipment are reviewed at least annually and are adjusted prospectively if expectations differ from previous estimates. Changes in the estimated useful lives of assets could result in changes to depreciation expense in current and future periods.

5) Financial instruments and risk management

**a)** **Financial instrument classification and measurement** 

Financial instruments of the Company carried on the consolidated statement of financial position are carried at amortized cost. There are no significant differences between the carrying value of financial instruments and their estimated fair values as at 30 September 2025. There have been no changes in levels during the period.

The Company classifies the fair value of these transactions according to the following hierarchy:

● Level 1 – quoted prices in active markets for identical financial instruments.

● Level 2 – quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

● Level 3 – valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

**b)** **Fair values of financial assets and liabilities** 

The Company's financial instruments include cash and cash equivalents, accounts payable, short-term loans and long-term loans. As at 30 September 2025, the carrying value of cash and cash equivalents is at fair value. Accounts payable and short-term loans approximate their fair value due to their short-term nature.

**c)** **Market risk** 

Market risk is the risk that changes in market prices will affect the Company's earnings or the value of its financial instruments. Market risk is comprised of commodity price risk and interest rate risk. The objective of market risk management is to manage and control exposures within acceptable limits, while maximizing returns. The Company is not exposed to significant market risk.

**d)** **Credit risk** 

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Company's primary exposure to credit risk is on its bank accounts. The Company's bank accounts are held with major banks in Canada, accordingly the Company is not exposed to significant credit risk.

**e)** **Interest rate risk** 

Interest rate risk is the risk of losses that arise as a result of changes in contracted interest rates. The Company is not exposed to significant interest rate risk.

**17 \|** P a g e

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

---

**Notes to the Consolidated Financial Statements (Cont.)**

**f)** **Currency risk** 

Currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company is exposed to foreign currency risk on its restricted cash and USDA and PAB loans payable balances that are denominated in other than the functional currencies. As at 30 September 2025, the Company held currency totalling the following:

---

| | | |
|:---|:---|:---|
|  | **30 September** | 30 September |
| **Currency** (Rounded) | **2025** | 2024 |
| Canadian (Dollars) | $**183000** | 180000 |
| US (Dollars) | $**5580000** | 1509000 |

---

**g)** **Liquidity risk** 

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they come due. The Company controls liquidity risk by ensuring that it has sufficient cash resources to pay for its financial obligations. As at 30 September 2025, the Company had a cash balance of $6,580,793 to settle current liabilities of $11,656,605 that are due within one year. The Company's outstanding liabilities, their current values and the principal amounts along with the due dates are as stated in the table below:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Carrying <br> value** | **Principal <br> amount** | **Less than<br> 1 year** | **1 – 5 years** | **5+ years** |
| Accounts payable and accrued liabilities | $2027556 | $2027556 | $2027556 | $- | $- |
| Short-term loans | 839906 | 839906 | 839906 |  |  |
| Convertible debentures | 244400 | 244400 | 244400 |  |  |
| USDA loan | 7278968 | 7278968 | 7278968 |  |  |
| State of Utah bill | 14403425 | 15313100 |  |  | 15313100 |
| PAB loan | 13030803 | 14617050 | 828300 | 4287668 | 9501083 |
| **Total** | $**37825058** | $**40320980** | $**11219130** | $**4287668** | $**24814183** |

---

**6)** **Amounts receivable**

Amounts receivable consists of:

---

| | | |
|:---|:---|:---|
| **Amounts Receivable** | **30 September<br> 2025** | 30 September<br> 2024 |
| Goods and services tax receivable | $**36393** | $32892 |
| Receivable on disposition | **64993** | 21345 |
|  | **101386** | 54237 |

---

**18 \|** P a g e

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

---

**Notes to the Consolidated Financial Statements (Cont.)**

7) Share proceeds receivable

The following table summarizes the details of share proceeds receivable associated with Sorbie Bornholm LP ("Sorbie") equity swap agreements, measured through profit and loss:

---

| | | |
|:---|:---|:---|
| **SHARE PROCEEDS RECEIVABLE** | **30 September<br> 2025** | 30 September<br> 2024 |
| Balance – Beginning of Year | $**846547** | $- |
| Addition of share proceeds receivable (initial recognition) | **842006** | 830086 |
| Proceeds received | **(856067)** |  |
| Realized gain upon receipt of proceeds | **207907** |  |
| Unrealized gain | **668045** | 16461 |
| Balance – End of Year | $**1708438** | $846547 |

---

The following table provides a breakdown of the share proceeds receivable between current and non-current assets based on the timing of the expected cash flows:

---

| | | |
|:---|:---|:---|
| **SHARE PROCEEDS RECEIVABLE** | **30 September<br> 2025** | 30 September<br> 2024 |
| Current | $**1374825** | $452804 |
| Non-current | **333613** | 393743 |
|  | $**1708438** | $846547 |

---

On 2 April 2025, the Company entered into a subscription agreement with Sorbie whereby Sorbie agreed to purchase 7,229,730 Units at a price of C$0.1998 per Unit for gross proceeds of $1,000, 0000 over 24 months. Each Unit consists of one common share in the capital of the Company ("Common Share") and one common share purchase warrant ("Warrant"), Note 17.

Sorbie and the Company entered into an equity swap agreement ("Sharing Agreement") at C$0.1998 (the "Benchmark Price"). The Sharing Agreement shall provide the Company's economic interest will be realized in 24 monthly settlement tranches as measured against the Benchmark Price. If, at the time of settlement, the Settlement Price (determined monthly based on a volume weighted average price for 20 trading days prior to settlement date) ("Settlement Price") exceeds the Benchmark Price, the Company shall receive more than 100% of the monthly settlement due, on a pro rata basis. There is no upper limit placed on the additional proceeds receivable by the Company as part of the monthly settlements. If, at the time of settlement, the Settlement Price is below the Benchmark Price, the Company will receive less than the 100% of the monthly settlement due, on a pro rata basis.

The share proceeds receivable relating to the cash receivable of $1,000,000 do not meet the classification of a financial asset measured at amortized cost or at fair value through other comprehensive income as the Company does not have a business model whose objective is to hold financial assets in order to collect contractual cash flows, and the financial asset does not give rise to cash flows that are solely payments of principal and interest. Therefore, the cash receivable is classified as a financial asset measured at fair value through profit or loss.

In accordance with IFRS 9, Financial Instruments, 7,229,730 units were valued based on the fair value of the share proceeds receivable. The Company assessed the fair value of the share proceeds receivable under IFRS 9 and determined to be $842,006 on the date of issuance. The corresponding fair value of the equity instruments of $842,006 was allocated between the Common Shares and Warrants based on their relative fair values in accordance with IAS 32, Financial Instruments: Presentation, and the Company's accounting policy.

**19 \|** P a g e

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

---

**Notes to the Consolidated Financial Statements (Cont.)**

Subsequently, the financial asset was revalued at 30 September 2025 with the difference between the initial valuation and the value recognized in profit or loss as an unrealized gain (loss) on financial asset. On 30 September 2025, the fair value of the share proceeds receivable was calculated based on the net present value of each future expected cash flows relating to the receivable, adjusted for the observable Settlement Price on the date of measurement. As at 30 September 2025, based on the fair value calculations, the fair value of the share proceeds receivable was determined to be $973,127. This resulted in an increase to the carrying value of the share proceeds receivable of $326,477 which was recognized in the consolidated statement of loss and comprehensive loss as an unrealized gain on share proceeds receivable.

<u>During the year ended 30 September 2024:</u>

As at 30 September 2024, the Company entered into a subscription agreement with Sorbie whereby Sorbie agreed to purchase 8,333,333 Units at a price of C$0.1800 per Unit for gross proceeds of $1,500,000 over 24 months. Each Unit consists of one Common Share in the capital of the Company and one Warrant, Note 17.

Sorbie and the Company entered into a sharing agreement during Fiscal 2024 at C$0.2610 benchmark price, similar to the Fiscal 2025 Sharing Agreement described above.

The share proceeds receivable relating to the cash receivable of $1,500,000 did not meet the classification of a financial asset measured at amortized cost or at fair value through other comprehensive income as the Company does not have a business model whose objective is to hold financial assets in order to collect contractual cash flows, and the financial asset does not give rise to cash flows that are solely payments of principal and interest. Therefore, the cash receivable is classified as a financial asset measured at fair value through profit or loss.

In accordance with IFRS 9, 8,333,333 units were valued based on the fair value of the share proceeds receivable. The Company assessed the fair value of the share proceeds receivable under IFRS 9 and determined to be $830,086 on the date of issuance. The corresponding fair value of the equity instruments of $830,086 was allocated between the Common Shares and Warrants based on their relative fair values in accordance with IAS 32 and the Company's accounting policy.

Subsequently, the financial asset was revalued at 30 September 2024 and 30 September 2025 with the difference between the initial valuation and the value recognized in profit or loss as an unrealized gain (loss) on financial asset. On 30 September 2024 and 30 September 2025, the fair value of the share proceeds receivable was calculated based on the net present value of each future expected cash flows relating to the receivable, adjusted for the observable Settlement Price on the date of measurement. As at 30 September 2025, based on the fair value calculations, the fair value of the share proceeds receivable was determined to be $735,311 (30 September 2024 - $846,547). This resulted in an increase to the carrying value of the share proceeds receivable of $341,568 (30 September 2024 - $16,461), which was recognized in the consolidated statement of loss and comprehensive loss as an unrealized gain on share proceeds receivable.

**20 \|** P a g e

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

---

**Notes to the Consolidated Financial Statements (Cont.)**

8) Construction in progress

During the year ended 30 September 2021, the Company entered into an agreement to acquire a fluorspar lump manufacturing facility (the "Facility") pursuant to the terms and conditions of a Profit-Sharing Agreement dated 9 February 2021, as amended (the "Profit Sharing Agreement") between the Company and the Mujim Group, a non-arm's length private Shanghai company ("Mujim"). Pursuant to the terms of the Profit-Sharing Agreement, the Company had agreed to acquire the Facility by issuing an aggregate of 5,300,000 common shares in the capital of the Company (each, a "Share"), the fair value of which was determined based on the date when they were issued, i.e. $0.67, and the consideration was recorded as a capital advance to Mujim as at 30 September 2021.

The Company has agreed that, upon completion of the Facility, it would incur costs pertaining to the installation of the Facility, including compensating contractors from Mujim to assist with installation and to begin operating the Facility. Furthermore, once the Facility is operational within parameters and specifications defined in the Profit-Sharing Agreement, the company will pay Mujim, US$20 per ton for ongoing technical support, and has also agreed to pay Mujim, US$10 per ton as agency fee for any sales in Asia.

The final purchase price may vary depending on certain target production output metrics defined in the Profit-Sharing agreement.

During the year ended 30 September 2022, the Company received significant components (including the structure) of the Facility and incurred an additional $572,139 to acquire these additional components and structure for the Facility and received their delivery.

During the year ended 30 September 2023, the Company completed the acquisition of industrial land (Note 10) for installation of the Facility and a flotation plant and incurred further costs towards its completion such as design work and other prerequisites.

During the year ended 30 September 2024, the Company purchased a flotation plant from a non-arm's length company, which is an entity controlled by a director of the Company. As a result, US$6,007,000 ($8,109,450) has been paid and recorded as a deposit at 30 September 2024.

As at 30 September 2025, the construction of the Facility is in progress and significantly all components of the flotation plant were received. As at 30 September 2025, the Company has incurred $25,721,163 (2024 - $9,762,608) in construction costs on the Facility which included $2,747,544 (2024 - $1,214,437) of capitalized borrowing costs. The Company is expected to incur additional costs to complete the installation of the Facility and the flotation plant, and begin operations.

9) Deposits

Deposits consist of:

---

| | | |
|:---|:---|:---|
| **DEPOSITS** | **30 September<br> 2025** | 30 September<br> 2024 |
| Office lease | $**6309** | $2912 |
| Surety deposits | **103489** | 276070 |
| Flotation deposits | **-** | 8109450 |
|  | $**109798** | $8338432 |

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**21 \|** P a g e

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

---

**Notes to the Consolidated Financial Statements (Cont.)**

As at 30 September 2025, the balance in deposits of $6,309 (2024 - $2,912) increased with the renewal of short term lease and represents a deposit for office lease; reclamation surety and bond in the amount of $103,489 (2024 - $276,070) paid to the State of Utah for a five-year escalation at Lost Sheep and Bell Hill.

**10)** **Property, plant, and equipment**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Property, Plant, and Equipment** | **Equipment** | **Auto** | **Land** | **Ramp** | **Total** |
| Cost |  |  |  |  |  |
| Balance as at 1 October 2023 | $161329 | $70699 | $2810176 | $- | $3042204 |
| &nbsp;&nbsp;&nbsp;Addition |  |  |  | 3317500 | 3317500 |
| &nbsp;&nbsp;&nbsp;Adjustment on currency translation |  | (162) | (18114) |  | (18276) |
| **Balance as at 30 September 2024** | $**161329** | $**70537** | $**2792062** | $**3317500** | $**6341428** |
| &nbsp;&nbsp;&nbsp;Addition | **407233** | **-** | **-** | **1559472** | **1966705** |
| &nbsp;&nbsp;&nbsp;Adjustment on currency translation | **-** | **2200** | **84732** | **96210** | **183142** |
| **<u>Balance as at 30 September 2025</u>** | $**568562** | $**72737** | $**2876794** | $**4973182** | $**8491275** |
| Depreciation |  |  |  |  |  |
| Balance as at 1 October 2023 | $106289 | $16837 | $- | $- | $123126 |
| &nbsp;&nbsp;&nbsp;Depreciation for the year | 32798 | 7103 |  |  | 39901 |
| &nbsp;&nbsp;&nbsp;Adjustment on currency translation | - | 137 | - | - | 137 |
| **Balance as at 30 September 2024** | $**139087** | $**24077** | $**-** | $**-** | $**163164** |
| &nbsp;&nbsp;&nbsp;Depreciation for the year | **17985** | **7301** | **-** | **249820** | **275106** |
| &nbsp;&nbsp;&nbsp;Adjustments on currency translation | **-** | **718** | **-** | **(1161)** | **(443)** |
| **<u>Balance as at 30 September 2025</u>** | $**157072** | $**32096** | $**-** | $**248659** | $**437828** |
| Carrying amounts |  |  |  |  |  |
| **Balance as at 30 September 2024** | $22242 | $46460 | $2792062 | $3317500 | $6178264 |
| **Balance as at 30 September 2025** | $**411489** | $**40642** | $**2876794** | $**4724523** | $**8053448** |

---

Property and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.

Depreciation is charged to recognize the cost of the asset on the consolidated statements of loss and comprehensive loss using the straight-line method over the estimated useful life of the asset.

During the year ended 30 September 2023, the Company acquired an industrial land parcel located in Millard County, State of Utah in the United States for the purpose of setting up its fluorspar plant, which was pledged as collateral on the USDA loan.

In addition to the land parcel acquired during the year, land comprises five Canadian properties located in Ontario, Canada (Note 11(f)). The Company earns revenues from sale of quarry rock located on these properties. These revenues are offset against maintenance payments made on the property and are included within the resource property expense on the consolidated statement of loss and comprehensive loss.

**22 \|** P a g e

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

---

**Notes to the Consolidated Financial Statements (Cont.)**

11) Exploration and evaluation assets

The following table summarizes exploration and evaluation assets:

---

| | | | |
|:---|:---|:---|:---|
| <br>**Exploration and Evaluation Assets** | **Spor**<br>**Mountain** | **Ontario**<br>**Properties** |<br>**Total** |
| **Balance as at 1 October 2023** | $7960140 | $4 | $7960144 |
| Geological consulting | 267486 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | 267486 |
| Administration and camp | 59142 |  | 59142 |
| Staking and claiming | 85942 |  | 85942 |
| Adjustments on currency translation | (10563) | - | (10563) |
| **Balance as at 30 September 2024** | $**8362147** | $**4** | $**8362151** |
| **Drilling** | **147860** |  | **147860** |
| **Geological consulting** | **251449** | **-** | **251449** |
| **Staking and claiming** | **3518** |  | **3518** |
| **Administration and camp** | **54369** | **-** | **54369** |
| **Adjustments on currency translation** | **3120** | **-** | **3120** |
| **Balance as at 30 September 2025** | $**8822464** | $**4** | $**8822467** |

---

**a)** **Spor Mountain (also known as Lost Sheep)** 

The Company holds a 100% interest in and rights to certain U.S. federal mining claims located at the north-east end of the Spor Mountain Mining District, in section 21, T.12S. 12W, and T.13S. 12W, SLBM of Juab County, western Utah, USA (the "Spor Mountain"). The Spor Mountain property consists of several mineral claim blocks including the Lost Sheep Fluoride Mine, and other unpatented claims. The Company acquired its initial interest through the Amalgamation on 18 February 2020. During the year ended 30 September 2021, the Company acquired additional claims in the region through staking.

As part of the amalgamation with ASM, the Company assumed an underlying property purchase agreement (the "Purchase Agreement") for certain unpatented claims comprising the Spor Mountain property, pursuant to which the Company would be required to make a payment of US$1,000,000 within 18 months from the commencement of production. During the year ended 30 September 2021, USD $1,000,000 was transferred to the underlying vendor, pursuant to which, the Company is deemed to have fulfilled its obligations under the Purchase Agreement, and the title to the unpatented claims was transferred to the Company.

**b)** **Ontario properties** 

The Company holds a 100% interest in five properties located in Ontario, Canada.

**23 \|** P a g e

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

---

**Notes to the Consolidated Financial Statements (Cont.)**

12) Short-term loans

<u>The following is a summary of the Company's short-term loans as at 30 September 2025 and 30 September 2024:</u>

---

| | | |
|:---|:---|:---|
| Short-Term Loans | **Year** | **Outstanding<br> Principal** |
| &nbsp;&nbsp;&nbsp;Operational loans from related parties | **2025** | $**812141** |
|  | 2024 | $342210 |
| &nbsp;&nbsp;&nbsp;Canada Emergency Business Account loan | **2025** | $**27765** |
|  | 2024 | $34773 |
| &nbsp;&nbsp;&nbsp;Others | **2025** | $**-** |
|  | 2024 | $65000 |
| **Total as at 30 September 2025** | **2025** | $**839906** |
| Total as at 30 September 2024 | 2024 | $441983 |

---

As at 30 September 2025 , the Company obtained a net $696,413 (30 September 2024 - $233,400) loan from the CEO as well as received $112,203 (30 September 2024 $108,810) in loans from companies related to directors of the Company subject to 10% per annum and maturing on 30 August 2025, which have been settled after the year end date. There are no defined terms or due dates of repayment on the loans from the CEO and a non-related party obtained are unsecured. Canada Emergency Business Account loan of $60,000 was refinanced with the financial institution in order to repay the full amount in January 2024 and the Company qualified for $20,000 loan forgiveness which was recognized as other income during the year ended 30 September 2024. The refinanced balance of $40,000 is subsect to prime rate plus 2.14% per annum over 5-year term commencing on 18 January 2024.

13) Convertible debentures

On 2 December 2022, the Company closed a non-brokered private placement offering of secured convertible debentures totalling $1,252,700. The Company incurred a financing fee equal to 45% of the principal amount amounting to $563,715 and paid a finders' fee totalling $52,720 for net proceeds of $636,265. The principal amount of convertible debentures will be convertible at holder's option into full-paid common shares in the capital of the Company at any time prior to maturity in two years, at an exercise price of $0.26 per common share. Interest on the debentures shall be paid semi-annually at an annual interest rate of 12% per annum.

In connection with the convertible debentures, the Company also issued 202,771 finders' warrants, with each warrant exercisable into one common share of the Company for a period of two years at a price of $0.26 per common share. The fair value of the warrants was calculated to be $20,000 using the Black-Scholes option pricing model.

During the year ended 30 September 2025, certain holders converted their principal convertible debt totalling $1,070,900 and associated interest of $319,227 into common shares of the Company.

**24 \|** P a g e

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

---

**Notes to the Consolidated Financial Statements (Cont.)**

The following table summarizes the accounting for the convertible debentures and the amounts recognized during the year.

---

| | | |
|:---|:---|:---|
| **Convertible Debentures** | **30 September<br> 2025** | 30 September<br> 2024 |
| Balance – Beginning of Year | $**1386189** | 713865 |
| Interest expense | **102892** | 152830 |
| Accretion expense | **145446** | 519494 |
| Settlement through shares | **(1390127)** | - |
| Balance – End of Year | $**244400** | 1386189 |

---

**14)** **USDA loan payable**

On 30 June 2023, the Company's subsidiary, Ares Utah, signed a promissory note agreement with Community Bank & Trust ("CB&T") – West Georgia and received a total loan of US$4,420,000 at prime rate stated in money rates section of Wall Street journal plus 2.50%., in lieu of which it pledged its land that was purchased in conjunction with the proceeds and situated in Utah (Note 10). The loan matures in 15 years and is guaranteed by the US Department of Agriculture ("USDA"). The interest is due and payable on the 1<sup>st</sup> of each month starting 1 May 2023 for the initial 12 months after which the Company is required to repay the monthly instalment consisting of the principal and interest (as per repayment schedule) on each payment date. For the purpose of securing payments and obligations, the Company granted the power of sale and right of the parcel of the land purchased with the proceeds as well as all the proceeds and awards or payments from the land purchased.

---

| | |
|:---|:---|
|  | **Amount** |
| Principal amount (US$4,420,000) | $5979597 |
| Less: Transaction cost (US$382,176) | (534243) |
| Amount funded, 30 June 2023 | 5445354 |

---

---

| | | |
|:---|:---|:---|
| **USDA Loan Payable** | **30 September<br> 2025** | 30 September<br> 2024 |
| Balance – Beginning of Year | $**5768569** | $5501049 |
| Amortization of transactions costs – accretion and other | **88700** | 488898 |
| Add: Principal amount received (US$1,200,000) | **1680906** |  |
| Less: Principal amount repaid | **(314418)** | (187317) |
| Adjustment on currency translation | **55211** | (34061) |
| Balance – End of Year | $**7278968** | $5768569 |
| Less: Current portion | $**6289193** | $5768569 |
| Non-current portion | $**989775** | $- |

---

**25 \|** P a g e

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

---

**Notes to the Consolidated Financial Statements (Cont.)**

The Company has acted as a guarantor in securing the USDA loan payable, and the Company and its subsidiary, Ares Utah, have provided as collateral, interest in all of the Company's rights, title and interest in and to all property and fixtures (current and future) of the Company and its subsidiaries. In connection with the first USDA loan payable of US$4,420,000, Ares Utah is subject to the following financial covenants:

● Maintain a debt service coverage ratio of at least 1.25 to 1.0, tested annually, beginning December 31, 2023 and for the remaining term of the loan period; and

● Maintain a debt to net worth ration not to exceed 9.0 to 1.0 at any time, which is to be tested annually.

During the year ended 30 September 2025, the Company received commercial loan of US$1,200,000 from CB&T at prime rate stated in money rates section of Wall Street journal plus 2.50%., the loan maturing on 16 September 2028 is due and payable on the 16<sup>th</sup> of each month starting from October 2025 and consisting of the principal and interest (as per repayment schedule) on each payment date. The loan was used primarily to pay for interest and principal of USDA loan and as at 30 September 2025, the remaining balance of cash was US$372,244.

As at 30 September 2025 and 30 September 2024, the Company did not meet the above covenants and therefore, the first USDA loan of US$4,420,000 is in default and has been classified as current liability.

15) PAB loan payable

On 15 December 2023, the Company's subsidiary, Ares Utah closed on the State of Utah's Private Activity Bond ("PAB") program from Millard County, Utah ("Millard County") pursuant to a US$10,000,000 tax-exempt Manufacturing Facility Revenue Bond (the "Series 2023A Bond"), and a US$500,000 taxable Manufacturing Facility Revenue Bond (the "Series 2023B Bond"). The repayment of interest on both the bonds begins 15 December 2024 whereas the principal sum of the Series 2023A Bonds begins annually from 15 December 2025 to 15 December 2034 while the Series 2023B bonds are due to be paid all at once on 15 December 2025. As part of the closing, the Company incurred transaction costs in the amount of US$1,666,940 which were allocated to the issuance cost of loan payable and deducted from the principal value.

In addition, the Company entered into a Guaranty Agreement and Guaranty of Completion agreement with the Trustee, pursuant to which the Company agreed to guaranty certain obligations of Ares Utah, including the repayment of the principal, interest and other amounts owed under the Bonds. The proceeds from the Bonds will be used by Ares Utah to acquire, construct, and develop a processing facility (the "Project") on the Company's Lost Sheet Fluorspar Project located in Delta, Millard County, Utah.

During the year ended 30 September 2025, interest expense capitalized within construction in progress was US$1,060,000, the amortization of debt costs being recognized as accretion expense over the loan period totalling US$108,701 (30 September 2024 – US$418,774) which are recorded within interest and accretion expense on the consolidated statement of loss and comprehensive loss.

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

---

**Notes to the Consolidated Financial Statements (Cont.)**

The Company also issued 6,780,500 common shares in conjunction with those bonds.

---

| | |
|:---|:---|
|  | **Amount** |
| Amount funded: Principal amount (US$10,500,000) | $14175000 |
| Transaction cash cost | (907572) |
| Transaction shares issued cost | (1356100) |
| Amortization of transaction costs - accretion | 569868 |
| Adjustments on currency translation | 8781 |
| **PAB loan balance as at 30 September 2024** | $**12489977** |
| Amortization of transaction costs - accretion | **152020** |
| Adjustments on currency translation | **388806** |
| **PAB loan balance as at 30 September 2025** | $**13030803** |
| Less: Current portion | $**(2255550)** |
| Non-current portion | $**(10775253)** |

---

The Company has acted as a guarantor in securing the PAB loan payable, and the Company and its subsidiary, Ares Utah, have provided as collateral, interest in 5.5 out of 48 acres of Ares Utah's rights, title and interest in property and fixtures (current and future) of the Company and its subsidiaries situated on the site funded by the PAB, the Project. In connection with the PAB loan payable, Ares Utah is subject to the following financial covenants:

● Maintain coverage ratio covenant of at least 1.10 or above for each Fiscal Year commencing one year after the completion of construction and installation of the Project.

The repayment commitment of 2023A Bonds has been described in the table below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Financial year** | **Principal (USD)** | **Principal (USD)** | **Interest (USD)** | **Interest (USD)** |
| 2026 |  | 595000 |  | 1025250 |
| 2027 |  | 665000 |  | 957250 |
| 2028 |  | 730000 |  | 887500 |
| 2029 |  | 805000 |  | 810750 |
| 2030 |  | 880000 |  | 726500 |
| 2031 and above |  | 6825000 |  | 1999750 |

---

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

---

**Notes to the Consolidated Financial Statements (Cont.)**

16) State of Utah loan payable

On 30 May 2025, the Company's subsidiary, Ares Utah, signed a promissory note agreement with the State of Utah through the Permanent Community Impact Fund Board and received a total loan of US$11,000,000 at a simple interest rate of 4.50%. The loan matures on 1 May 2031 ("Maturity Date") for payment in full with accrued interest. Ares Utah may, but is not obligated to make interim payments, of any amount, without penalty, and a final payment will be paid on the Maturity Date.

This loan is secured by and is entitled to the benefits and security contemplated by a Trust Deed Security Agreement and Fixture Filing ("Trust Deed"), covering real property and related improvements, and certain equipment, machinery and fixtures, situated in Millard County, Utah.

---

| | | |
|:---|:---|:---|
|  | **Amount** | **Amount** |
| Principal amount | US$ | 11000000 |
| Less: Transaction cost |  | (836500) |
| Amount funded, 30 May 2025 |  | 10163500 |

---

---

| | | |
|:---|:---|:---|
|  | **30 September** | 30 September |
| **State of Utah Loan Payable** | **2025** | 2024 |
| Balance – Amount funded (US$11,000,000) | $**15313100** | $- |
| Transaction cash cost | **(1169929)** |  |
| Interest and accretion of borrowing costs | **256006** |  |
| Adjustments on currency translation | **4248** |  |
| Balance – End of Year | $**14403425** | $- |

---

During the year ended 30 September 2025, interest expense capitalized within construction in progress was US$nil, the amortization of debt costs being recognized as accretion expense over the loan period totalling US$183,045 (30 September 2024 – US$nil) which are recorded within interest and accretion expense on the consolidated statement of loss and comprehensive loss.

17) Share capital

**a)** **Authorized:** 

Unlimited common shares without par value.

**28 \|** P a g e

---

| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

---

**Notes to the Consolidated Financial Statements (Cont.)**

**b)** **Issued or allotted and fully paid:** 

<u>During the year ended 30 September 2025:</u>

---

| | | |
|:---|:---|:---|
|  | **Number of<br> Shares** | **Amount** |
| **Balance as at 1 October 2024** | 173417021 | $44479373 |
| &nbsp;&nbsp;&nbsp;Shares issued for debt | **18004197** | **4043832** |
| &nbsp;&nbsp;&nbsp;Shares issued for Sorbie (Note 8) | **7229730** | **242291** |
| &nbsp;&nbsp;&nbsp;Shares issued for exercise of options | **6792131** | **1244977** |
| &nbsp;&nbsp;&nbsp;Shares issued for convertible debt settlement | **5346642** | **1390127** |
| &nbsp;&nbsp;&nbsp;Shares issued for Offering, net | **765170** | **137731** |
| **Balance as 30 September 2025** | **211554891** | $**51538331** |

---

<u>During the year ended 30 September 2025:</u>

&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company issued 18,004,197 common shares with a fair value
of $4,043,832 to settle liabilities totalling $4,376,783, recognizing a gain of $332,951 on the consolidated statement of loss and comprehensive
loss.

&nbsp;&nbsp;&nbsp;&nbsp;(ii) 6,792,131 options were exercised for gross proceeds of $882,977
and fair value of $362,000 for exercised options.

&nbsp;&nbsp;&nbsp;&nbsp;(iii) Certain purchasers of the Company's convertible debentures
converted their sum of $1,070,900 principal and $319,227 interest to 5,346,642 Ares common shares. All shares issued are subject to a
four-month hold period in accordance with applicable securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Company closed the Offering of units (each, a "Unit")
by issuing 765,170 Units at a price of $0.18 per Unit, for aggregate gross proceeds of $137,731. Each Unit consists of one common share
in the capital of the Company (each, a "Common Share") and one nontransferable Common Share purchase warrant (each, a "Warrant").
Each Warrant is exercisable into one Common Share (each, a "Warrant Share") at a price of $0.26 per Warrant Share for a period
of two years.

&nbsp;&nbsp;&nbsp;&nbsp;(v) The Company raised gross proceeds of $1,000,000 from Sorbie
pursuant to a financing arrangement payable in 24 monthly settlement tranches, with settlement based on the volume-weighted average price
of the Company's common shares relative to a benchmark price of C$0.1998. In connection with this financing, the Company issued
7,229,730 units to Sorbie (Note 7). Each unit consisted of one common share in the capital of the Company (a "Common Share")
and one non-transferable common share purchase warrant (a "Warrant").

Each Warrant entitles the holder to acquire one additional Common Share at an exercise price of $0.26 per share. The Warrants are subject to an acceleration provision whereby, if the ten-day volume-weighted average trading price of the Company's common shares on the Canadian Securities Exchange (or such other exchange on which the shares may be listed at the time) equals or exceeds C$0.40 at the close of any trading day, the Company may, at its option, accelerate the expiry date of the Warrants by issuing a press release. In such circumstances, the Warrants will expire on the 30th day following the date of the acceleration press release, and any Warrants remaining unexercised at that time will expire without compensation. The Warrants also include a restriction prohibiting exercise where such exercise would result in the holder owning more than 9.99% of the Company's outstanding common shares.

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

---

**Notes to the Consolidated Financial Statements (Cont.)**

As consideration for entering into the Sharing Agreement with Sorbie, the Company agreed to pay a value payment of $70,000, payable either in cash or in units at a placement price of $0.1480 per unit. The Company elected to settle this obligation through the issuance of 472,973 units to Sorbie, with each unit consisting of one Common Share and one Warrant.

In conjunction with the Sorbie financing, the Company also entered into a finder's agreement with a third party. Under the terms of this agreement, the Company agreed to pay a cash finder's fee of $60,000, representing 6% of the total funds raised, together with finder's warrants equal to the number of common shares that could be purchased with the $60,000 fee based on the 20-day volume-weighted average trading price preceding payment. Based on this calculation, a total of 254,433 finder's warrants were issuable.

Upon initial recognition, the Company recorded the issuance of the 7,229,730 units in exchange for cash receivable. Using the Black-Scholes option pricing model, the fair value of the 7,229,730 Warrants was determined to be $842,006. The fair value of the 7,229,730 Common Shares was determined to be $1,373,649, based on the closing market price of $0.19 per share on the date of issuance. Based on the relative fair values, $322,134 was allocated to the Warrants and $519,872 was allocated to the Common Shares.

The 472,973 units issued to Sorbie in settlement of the $70,000 value payment were accounted for as consideration for services rendered and, accordingly, the Warrants included in these units were accounted for in accordance with IFRS 2, Share-based Payment. The fair value of the Warrants was determined using the Black-Scholes option pricing model. The 472,973 Warrants were valued at $55,684, and the fair value of the 472,973 Common Shares was determined to be $89,865 based on the closing trading price of $0.19 per share on the date of issuance. Based on the relative fair values, the $70,000 value payment was allocated as $43,219 to Common Shares and $26,781 to Warrants.

The Company is also obligated to pay the finder's fee of $60,000 in cash and issue 254,433 finder's warrants. As at September 30, 2025, the Company had issued a total of 875,000 agent warrants in connection with both the 2025 and 2024 tranches of the Sorbie transactions. These agent warrants were valued using the Black-Scholes option pricing model, resulting in a total fair value of $75,000.

**30 \|** P a g e

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

---

**Notes to the Consolidated Financial Statements (Cont.)**

<u>During the year ended 30 September 2024:</u>

&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company raised an aggregate amount of $2,868,947 from
the five tranche closings of the LIFE Offering. The Company issued 15,938,596 units at a price of $0.18 per Unit. Each Unit consists
of one common share in the capital of the Company (each, a "Common Share") and one non-transferable Common Share purchase
warrant (each, a "Warrant"). Each Warrant will entitle the holder to acquire one additional Common Share in the capital of
the Company (each, a "Warrant Share") at a price of $0.26 per Common Share for a period of two years following the closing
date of the LIFE Offering subject to accelerated provisions. In connection with the closing of the first, second, and third tranches,
an aggregate of $259,203 was paid in cash and a total of 744,376 finder's warrants (each, a "Finder's Warrant")
were issued as finder's fees. Each Finder's Warrant entitles the holder thereof to acquire one common share in the capital
of the Company (a "Finder's Warrant Share") at a price of $0.26 per Finder's Warrant Share for a period of two
years subject to accelerated provisions following the closing date of the first tranche.

&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company issued 6,780,500 shares against the discount
in lieu of the PAB loan funding received during the year, Note 15.

&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company raised gross proceeds of $1,500,000 from Sorbie
pursuant to a financing arrangement payable in 24 monthly settlement tranches, with settlement based on the volume-weighted average price
of the Company's common shares relative to a benchmark price of $0.2610. In connection with this financing, the Company issued
8,333,333 units to Sorbie (Note 7), on terms consistent with those described above. Each unit consisted of one common share in the capital
of the Company (a "Common Share") and one non-transferable common share purchase warrant (a "Warrant").

As consideration for entering into the sharing agreement with Sorbie, the Company agreed to pay a value payment of $105,000, payable in cash or in units at a placement price of $0.18 per unit. The Company elected to settle this obligation through the issuance of 583,333 units to Sorbie, with each unit consisting of one Common Share and one Warrant.

In conjunction with the Sorbie financing, the Company entered into a finder's agreement with a third party. Under the terms of this agreement, the Company agreed to pay a cash finder's fee of $105,000, representing 7% of the total funds raised, together with finder's warrants equal to the number of common shares that could be purchased with the $105,000 fee based on the 20-day volume-weighted average trading price preceding payment. Based on this calculation, a total of 620,567 finder's warrants were issuable.

Upon initial recognition, the Company recorded the issuance of the 8,333,333 units in exchange for cash receivable. Using the Black-Scholes option pricing model, the fair value of the 8,333,333 Warrants was determined to be $895,475. The fair value of the 8,333,333 Common Shares was determined to be $1,416,666, based on the closing market price of $0.17 per share on the date of issuance. Based on the relative fair values, the Company recorded the issuance at an initial fair value of $830,086, of which $321,486 was allocated to the Warrants and $508,600 was allocated to the Common Shares.

**31 \|** P a g e

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

---

**Notes to the Consolidated Financial Statements (Cont.)**

The 583,333 units issued to Sorbie in settlement of the $105,000 value payment were accounted for as consideration for services rendered. Accordingly, the Warrants included in these units were accounted for in accordance with IFRS 2. The fair value of the Warrants was determined using the Black-Scholes option pricing model. The 583,333 Warrants were valued at $62,683, and the fair value of the 583,333 Common Shares was determined to be $99,167 based on the closing market price of $0.17 per share on the date of issuance. Based on the relative fair values, the $105,000 value payment was allocated as $64,334 to Common Shares and $40,666 to Warrants.

The Company is also obligated to pay the finder's fee of $105,000 in cash and issue 620,567 finder's warrants. These agent warrants were issued during fiscal 2025 together with the agent warrants associated with the Sorbie transactions in fiscal 2025 described above.

&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Company issued 2,335,537 common shares to settle debt
of $421,760.

&nbsp;&nbsp;&nbsp;&nbsp;(v) The Company issued 445,000
common shares as part of the options exercised.

**c)** **Summary of stock option activity** 

The Company has adopted an incentive stock option plan to grant options to directors, officers, and consultants for up to 10% of the outstanding common shares. The Board of Directors determines the exercise price per share and the vesting period under the plan. The options can be granted for a maximum term of five years.

Stock option activity during the years ended 30 September 2025 and 30 September 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Stock Option Activity** | **30 September<br> 2025** | **Weighted<br>Average<br> Exercise<br> Price** | 30 September<br> 2024 | Weighted <br>Average<br> Exercise<br> Price |
| **Balance – Beginning of Year** | **21793053** | $**0.12** | 22238053 | $0.12 |
| &nbsp;&nbsp;&nbsp;Exercised | **(6792131)** | **-** | (445000) | 0.12 |
| &nbsp;&nbsp;&nbsp;Expired | **(15000922)** | **-** | - | - |
| **Balance – End of Year** | **-** | $**-** | 21793053 | $0.12 |

---

<u>Details of stock options outstanding as at 30 September 2025 and 2024 are as follows:</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Issuance Date** | **Expiry Date** | **Exercise Price** | **30 September<br> 2025** | 30 September<br> 2024 |
| 10 February 2023 | 10 February 2025 | $0.12 |  | 21793053 |
|  |  |  |  | 21793053 |

---

As at 30 September 2025, the outstanding options have a weighted average remaining life of nil years (2024 –0.36 years) and a weighted average exercise price of $nil (2024- $0.12).

The Company did not grant any stock options during the year ended 30 September 2025.

**32 \|** P a g e

---

| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

---

**Notes to the Consolidated Financial Statements (Cont.)**

<u>During the year ended 30 September 2024:</u>

The Company did not grant any stock options during the year ended 30 September 2024.

**d)** **Warrants** 

<u>Warrant activity during the year ended 30 September 2025 and 30 September 2024 are as follows:</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Warrant Activity** | **30 September<br> 2025** | **Weighted<br> Average<br> Exercise<br> Price** | 30 September<br> 2024 | Weighted<br> Average<br> Exercise<br> Price |
| **Balance – Beginning of Year** | **25903772** | $**0.26** | 2026568 | 0.45 |
| &nbsp;&nbsp;&nbsp;Issued | **8898446** | **0.25** | 25701001 | 0.26 |
| &nbsp;&nbsp;&nbsp;Expired | **(202771)** | **-** | (1823797) | 0.45 |
| **Balance – End of Year** | **34599447** | $**0.26** | 25903772 | $0.26 |

---

<u>During the year ended 30 September 2025:</u>

Details of warrants outstanding as at 30 September 2025 and 30 September 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Exercise** | **30 September** | 30 September |
| **Issuance Date** | **Expiry Date** | **Price** | **2025** | 2024 |
| 15 December 2022 | 15 December 2024 | $0.26 | **-** | 202771 |
| &nbsp;&nbsp;&nbsp;&nbsp;31 May 2024 | &nbsp;&nbsp;&nbsp;&nbsp;31 May 2026 | $0.26 | **6463784** | 6463784 |
| &nbsp;&nbsp;&nbsp;&nbsp;07 June 2024 | &nbsp;&nbsp;&nbsp;&nbsp;07 June 2026 | $0.26 | **5709592** | 5709592 |
| &nbsp;&nbsp;&nbsp;&nbsp;28 June 2024 | &nbsp;&nbsp;&nbsp;&nbsp;28 June 2026 | $0.26 | **2102914** | 2102914 |
| &nbsp;&nbsp;&nbsp;&nbsp;16 July 2024 | &nbsp;&nbsp;&nbsp;&nbsp;16 July 2026 | $0.26 | **1019219** | 1019219 |
| &nbsp;&nbsp;&nbsp;&nbsp;1 August 2024 | &nbsp;&nbsp;&nbsp;&nbsp;1 August 2026 | $0.26 | **1387720** | 1387720 |
| 11 September 2024 | 11 September 2026 | $0.26 | **9017772** | 9017772 |
| &nbsp;&nbsp;&nbsp;&nbsp;07 October 2024 | &nbsp;&nbsp;&nbsp;&nbsp;07 October 2026 | $0.26 | **765170** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;11 March 2025 | &nbsp;&nbsp;&nbsp;&nbsp;11 March 2028 | $0.30 | **649113** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;8 April 2025 | &nbsp;&nbsp;&nbsp;&nbsp;8 April 2028 | $0.24 | **7229730** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;30 May 2025 | &nbsp;&nbsp;&nbsp;&nbsp;30 May 2028 | $0.30 | **254433** | - |
|  |  |  | **34599447** | 25903772 |

---

As at 30 September 2025, the outstanding warrants have a weighted average remaining life of 1.20 years (2024 – 1.78 years) and a weighted average exercise price of $0.26 (2024- $0.26).

**e)** **Share-based payments** 

During the year ended 30 September 2025, the Company did not grant any incentive stock options (30 September 2024 – Nil) to its directors, officer, and consultants.

**33 \|** P a g e

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

---

**Notes to the Consolidated Financial Statements (Cont.)**

**f)** **Non-controlling interest** 

On 16 October 2014, the Company entered into an investment agreement with OMC Investments Limited ("OMC"), of Hong Kong. The transaction closed on 28 November 2014, and the Company issued 19,048,000 units of the Company by way of private placement at a price of $0.05 per unit, for aggregate proceeds of $952,400. After the 20-for-1 share consolidation during the year ended 30 September 2018, OMC owns 952,400 units. Each Unit consisted of one common share and one common share purchase warrant. Each Warrant is exercisable for a period of six years from the date of closing of the private placement at an exercise price of $0.05. These warrants expired on 30 September 2018. OMC now holds approximately 5.93% of the issued and outstanding shares of the Company. The Company also issued 15 common shares of its subsidiary Canadian Iron to OMC, reducing its ownership share from 100% to 85%. Canadian Iron holds a 100% interest in Karas Iron and Griffith Iron. The Company's interests in the Karas and Griffith properties are held in Karas Iron and Griffith Iron, respectively.

In addition, the shareholders' agreement with OMC will allow OMC to progressively earn additional equity in Canadian Iron, up to a total of 70% of Canadian Iron's issued and outstanding shares, as follows:

● an additional 30% for $8.2 million in funding from OMC for dewatering, resource drilling and environmental permitting ("Resource Definition Funding");

● an additional 5% for $2 million in total funding for a preliminary economic assessment, funded 70% by OMC and 30% by Ares; and

● an additional 20% for $20 million in total funding for a feasibility study, funded 70% by OMC and 30% by Ares, and assuming the feasibility study establishes technical and economic viability.

Should either party not fully contribute its share of funding to both the preliminary economic assessment and feasibility study, it may face dilution.

In connection with this transaction, the Company has also agreed to enter into an option agreement with OMC on its other mineral properties. As of 30 September 2023, OMC has not entered into any option agreements related to the Company's other mineral properties. Should OMC fund the full $8.2 million Resource Definition Funding, it has the right to acquire an 80% interest in either the El Sol, Whitemud and Papagonga properties. This may be increased to 90%, if within a five-year period after earning 80%, OMC funds an additional $1.5 million in expenditures on the property chosen.

The value attributed to the non-controlling interest in the Company as at 30 September 2025 is an accumulated deficit of $1,222,039 (2024 - $1,220,065). For the year ended 30 September 2025, net loss and comprehensive loss of $1,974 (2024 – income of $3,390) has been attributed to the non-controlling interest in these Financial Statements.

**34 \|** P a g e

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| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

---

**Notes to the Consolidated Financial Statements (Cont.)**

18) Related party transactions and obligations

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

The Company compensates certain of its key management personnel to operate its business in the normal course. Key management includes the Company's executive officers and members of its Board of Directors. Transactions and balances with key management personnel and related parties not disclosed elsewhere in the Financial Statements are as follows:

**Related Party Disclosure**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year<sup>(i)</sup>** | **Remuneration<br> or fees<sup>(ii)</sup>** | **Share-based<br> payments** | **Amounts<br> Payable and<br> Accrued<br> Liabilities** |
| CEO and Director – Management fees | **2025** | $**94000** | $- | $**984988** |
|  | 2024 | $144000 | $- | $425975 |
| CFO – Management fees | **2025** | $**48000** | $**-** | $**-** |
|  | 2024 | $48000 | $- | $- |
| CFO – Professional fees | **2025** | $**81875** | $**37025** | $**19471** |
|  | 2024 | $77329 | $- | $19764 |
| Directors – Director fees | **2025** | $**750** | $**-** | $**119353** |
|  | 2024 | $1500 | $- | $115210 |
| Directors – Consulting fees | **2025** | $**-** | $**-** | $**-** |
|  | 2024 | $42000 | $- | $104127 |
| **Total** | **2025** | $**224625** | $**37025** | $**1123812** |
|  | 2024 | $312829 | $- | $665076 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(i) For the years ended 30 September
2025 and 2024.

&nbsp;&nbsp;&nbsp;&nbsp;(ii) Amounts disclosed were paid or accrued to the related party.

These transactions were in the normal course of operations, which is the amount of consideration established and agreed to by the related parties.

Accounts payable and accrued liabilities are unsecured, non-interest bearing and due on demand.

Short-term loans with related parties are described in (Note 12). There are no terms and conditions attached to the said loans.

During the year ended 30 September 2024, the Company purchased a flotation plant from a non-arm's length company, which is an entity controlled by a director of the Company and paid US$6,007,000 as a deposit. As at 30 September 2025, significantly all components of the flotation plant were received and awaiting installation, and thus the amounts paid are recorded within the construction in progress.

During the year ended 30 September 2025, the Company settled $131,190 of related parted liabilities with common shares of the Company.

**35 \|** P a g e

---

| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

---

**Notes to the Consolidated Financial Statements (Cont.)**

19) Segmented disclosure

The Company has one reportable segment, being the acquisition, exploration, and development of resource properties. The following table provides segmented disclosure of assets and liabilities based on geographic location:

---

| | | | |
|:---|:---|:---|:---|
| **(Rounded to 000's)** | **Canada** | **US** | **Total** |
| **30 September 2025** | | | |
| &nbsp;&nbsp;&nbsp;Current Assets | $**2779000** | $**8052000** | $**10831000** |
| **Non-Current Assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;Other non-current assets | **4739000** | **29479000** | **34218000** |
| &nbsp;&nbsp;&nbsp;Resource properties | **5978000** | **2844000** | **8822000** |
| **Liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Current Liabilities | **1649000** | **10008000** | **11657000** |
| &nbsp;&nbsp;&nbsp;Non-Current Liabilities |  | **26168000** | **26168000** |
| 30 September 2024 |  |  |  |
| &nbsp;&nbsp;&nbsp;Current Assets | $1038000 | $1108000 | $2146000 |
| Non-Current Assets |  |  |  |
| &nbsp;&nbsp;&nbsp;Other non-current assets | 4413000 | 2956000 | 7369000 |
| &nbsp;&nbsp;&nbsp;Resource properties | 5529000 | 2431000 | 7960000 |
| Liabilities |  |  |  |
| &nbsp;&nbsp;&nbsp;Current Liabilities | 1714000 | 864000 | 2578000 |
| &nbsp;&nbsp;&nbsp;Non-Current Liabilities | - | 4679000 | 4679000 |

---

20) Capital management

The Company's capital consists of shareholders' equity and it has capital resources of cash. The Company's objective when managing capital is to maintain adequate levels of funding to support the development of its businesses and maintain the necessary corporate and admsinistrative functions to facilitate these activities. This is done primarily through equity financing, selling assets, and incurring debt. Future financings are dependent on market conditions and there can be no assurance the Company will be able to raise funds in the future. The Company invests all capital that is surplus to its immediate operational needs in short-term, highly liquid, high-grade financial instruments. There were no changes to the Company's approach to capital management during the year. The Company is not subject to externally imposed capital requirements. The Company does not currently have adequate sources of capital to complete its exploration plan, current obligations and ultimately the development of its business, and will need to raise adequate capital by obtaining equity financing, selling assets and incurring debt. The Company may raise additional debt or equity financing in the near future to meet its current obligations.

21) Commitments and contingencies

The repayment of USDA, PAB loans, State of Utah, and convertible debt interest is described within respective notes.

As at 30 September 2025, the Company is aware of a claim filed in the Ontario Superior Court of Justice on 9 August 2024 pertaining to an Asset Purchase Agreement entered into on 22 July 2022. The claimant has alleged that the Company breached the Binding Letter of Offer dated 18 August 2022 where the Company paid $1,250,000 out of a total purchase price deposit amount of $2,150,000. The claimant is seeking the remaining portion of the purchase price deposit in the amount of $900,000 and pre-and post-judgement interest at the prime rate of the Bank of Nova Scotia plus 12%, and the costs of the claim plus all applicable taxes. The Company has assessed that the claimant cannot demonstrate a loss because of the Company's decision to terminate the Binding Letter of Offer. Based on the Company's assessment, the claim is not expected to have a significant impact on the Company's Financial Statements. Therefore, no liability has been recorded in relation to this claim as of 30 September 2025.

**36 \|** P a g e

---

| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

---

**Notes to the Consolidated Financial Statements (Cont.)**

22) Income taxes

The following table reconciles the expected income tax expense (recovery) at the Canadian and USA statutory income tax rates to the amounts recognized in the Consolidated Statements of Loss and Comprehensive Loss for the years ended 30 September 2025 and 2024.

---

| | | |
|:---|:---|:---|
|  | **30 September**<br>**2025** | 30 September<br>2024 |
| Net loss before tax | $**(3641111)** | $(2925347) |
| Statutory tax rates | **25.65%-29.70%** | 25.65%-29.70 |
| Expected income tax (recovery) | **(965000)** | (776303) |
| Permanent differences and other | **(20000)** | 301303 |
| Change in deferred tax asset not recognized | **985000** | 475000 |
| Total income tax expense (recovery) | $**-** | $- |

---

The unrecognized deductible temporary differences and deferred income tax assets as at 30 September 2024 and 2023 are comprised of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **30 September 2025** | **30 September 2025** | 30 September 2024 | 30 September 2024 |
|  | **Temporary difference** | **Deferred income tax asset (liability)** | Temporary <br>difference | Deferred <br>income tax <br>asset |
| Non-capital losses carry-forwards | $**30429000** | **8187000** | $24816000 | 6697000 |
| Capital losses | **278000** | **75000** | 278000 | 75000 |
| Exploration and evaluation assets | **7724000** | **2091000** | 9680000 | 2652000 |
| Property, plant, and equipment | **500000** | **132000** | 412000 | 110000 |
| Convertible debentures | **-** | **-** | 7000 | 2000 |
| Financing costs | **378000** | **102000** | 244000 | 66000 |
| Total unrecognized deductible temporary differences and deferred income tax assets | $**39309000** | **10587000** | $35437000 | 9602000 |

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**37 \|** P a g e

---

| | |
|:---|:---|
| ![](ea029307701_ex4-2img2.jpg) | **Ares Strategic Mining Inc*.***<br> **FOR THE YEARS ENDED 30 SEPTEMBER 2025 AND 2024**<br> ***Canadian Dollars*** |

---

**Notes to the Consolidated Financial Statements (Cont.)**

23) Subsequent events

&nbsp;&nbsp;&nbsp;&nbsp;i) During October 2025, the Company completed a non-brokered
private placement in two tranches and issued 23,333,001 units at a price of $0.45 per unit for aggregate gross proceeds of approximately
$10,500,000. Each unit consisted of one common share and one-half of one non-transferable common share purchase warrant, with each whole
warrant exercisable at $0.55 per share for a period of two years from issuance.

In connection with the closing of the private placement, the Company paid aggregate cash finder's fees of $567,966 and issued a total of 1,262,147 finder's warrants. Each finder's warrant is exercisable at $0.55 per common share for a period of two years from the respective closing dates and is subject to a four-month hold period.

Furthermore, included in the private placement amount were 2,222,222 units purchased by Sorbie for $1,000,000 on terms similar to those described above in Notes 7 and 17 with a benchmark price of $0.63.

ii) The Company converted into shares the remaining principal balance of convertible debenture totalling $100,000 and accumulated interest totalling $135,700 and repaid $7,800 in related party short term loans described in Note 13.

iii) The Company issued 5,211,682 common shares pursuant to exercise of warrants for gross proceeds of $1,384,593.

iv) The Company granted 6,400,000 stock options to certain consultants, directors, and officers of the Company. Each option has an exercise price of $0.63 and an expiry date of January 23, 2028.

**38 \|** P a g e

## Exhibit 4.3

**Exhibit 4.3**

---

| | |
|:---|:---|
| ![](ea029307701_ex4-3img2.jpg) | **Ares Strategic Mining Inc.**<br>**For the Year Ended 30 September 2025**<br>***Canadian Dollars***<br>**Report to Shareholders and Management Discussion and Analysis** |

---

**To Our Shareholders**

This Management Discussion and Analysis ("MD&A") supplements - but does not form part of – the Consolidated Financial Statements for the for the year ended 30 September 2025. Consequently, the following discussion and analysis of the financial condition and results of operations for Ares Strategic Mining Inc. ("Ares" or the "Company"), formerly Lithium Energy Products Inc., should be read in conjunction with the Consolidated Financial Statements for the year ended 30 September 2025, and the related notes therein, which have been prepared in accordance with International Financial Reporting Standards ("IFRS"), consistently applied.

Discussion of the Company, its operations and associated risks are further described in the Company's filings, available for viewing at www.sedar.com. A copy of this MD&A will be provided to any applicant upon request.

**Forward-Looking Statements**

Certain statements contained in the following MD&A and elsewhere constitute forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made, and readers are advised to consider such forward-looking statements in light of the risks set forth in the Company's filings and herein. Additional information regarding the Company, including copies of the Company's continuous disclosure materials is available through the SEDAR website at www.sedar.com.

The table below sets forth the significant forward-looking information included in this MD&A:

---

| | | |
|:---|:---|:---|
| **Forward-Looking Information** | **Key Assumptions** | **Most Relevant Risk Factors** |
| Future funding for ongoing operations | Ares has the resources to fund their ongoing operations and the ability to raise the funds for further operations which exceed current resources. | Ares has disclosed that this may be difficult and failure to raise these funds will materially impact the Company's ability to continue as a going concern. |
| Proving Ares' deposits economic viability. | Deposits are either economically viable or Ares can obtain new sources of minerals for exploitation, trading or offtake agreements. | Lack of information to assess future mining strategy. |
| Proving Ares' deposits processing ability. | Ares' deposit compositions are favourable towards economically recovering minerals. | Uncertain geology could affect uniformity of mineralization. |
| Ares intends to acquire further properties to expand their mining and supply operations. | Properties demonstrating economic potential and have existing supportive infrastructure can be located and acquired. | Prospective acquisitions do not demonstrate sufficient potential and viability to justify acquisition. |
| Ares intends to enter into offtake agreements with several customers to ensure a customer base exists for Ares products. | Potential customers are willing to commit to mineral acquisition from Ares prior to exploration completion and exploitation. | Potential Ares customers may overstate the quantities they intend to purchase as they are currently predictive. |

---

---

| | |
|:---|:---|
| ![](ea029307701_ex4-3img2.jpg) | **Ares Strategic Mining Inc.**<br>**For the Year Ended 30 September 2025**<br>***Canadian Dollars***<br>**Report to Shareholders and Management Discussion and Analysis** |

---

---

| | | |
|:---|:---|:---|
| Ares intends to arrange further financing for the development of its current properties | The Company and its properties can prove economic potential and attract investment. | Ares is unable to attract investment and must investigate alternate strategies. |
| Ares intends to acquire operational improve its cashflow | The Company will have the resources and/or means to acquire such projects. | Ares is unable to acquire the projects to necessary investment and must investigate alternate strategies. |
| Ares intends to investigate and determine the most suitable technology and mining practices for its projects. | The Company has the expertise and connections to reasonably inform their decision-making processes. | Being unable to locate the most suitable technology and practices and running a sub-optimal operation. |
| Ares intends to use several exploration methods to gain better insight into its deposits for the purposes of mine design and exploitation optimisation. | The Company can source the best personnel to undertake the work necessary to obtain the detailed geological and geophysical information required. | Defining improper requirements for the contracted personnel. |
| Ares intends to purchase equipment tailored to the geology and composition of its material. | Bench testing and metallurgy return results able to provide the Company with information upon which the plant design and setup can be determined. | Lab work could be undertaken which provides results that provide insufficient information to reliably determine the best equipment. |
| Ares intends to complete mine installation works at its Utah project. | The resources within the company are sufficient to complete the required work, or the Company will be able to acquire these funds. | A poor market combined with overspend would cause funding shortfalls. |
| Ares intends to complete the construction of its lumps plant and later its flotation plant at its Utah site and start production. | The resources within the company are sufficient to complete the required work, or the Company will be able to acquire these funds. | A poor market combined with overspend would cause funding shortfalls. |
| Ares intends to conduct industrial scale construction projects at its Delta processing site. | The Company resources, and the Company's ability to raise resources, will exceed the necessary construction costs. | A poor market combined with an unanticipated overspend would cause funding shortfalls. |

---

**Qualified Person**

The technical and scientific information in this document has been reviewed and approved by Paul Sarjeant, P.Geo., a Qualified Person as defined by National Instrument 43-101 ("NI 43-101"). He is the Company's VP of Exploration, Director, and shareholder.

---

| | |
|:---|:---|
| ![](ea029307701_ex4-3img2.jpg) | **Ares Strategic Mining Inc.**<br>**For the Year Ended 30 September 2025**<br>***Canadian Dollars***<br>**Report to Shareholders and Management Discussion and Analysis** |

---

**Future Outlook**

Ares intends to advance into revenue generation and expand the capacity of the operation, while meeting MSHA standards at the mine site.

Ares intends to expand the mineworks which allow the Company to exploit the fluorspar resources identified through exploration.

Ares will develop its industrial site for an expanded processing operation and install revamped and greater infrastructure to support its enlarged operation.

Ares intends to partner with a multinational supplier of fluorspar to act as distributor for its product.

Ares intends to install a professional staff able to manage the mining operations at its Fluorspar mine project.

Ares will employ experienced mining and process engineers to act in concert with its management team, to verify and ensure that all steps taken to advance its projects are considered and objective, so the optimum outcome can be obtained.

Ares will solicit and contract the services of construction and processing specialists to construct industrial scale plant installation to commission two high capacity facilities able to process all excavated fluorspar mineralization removed from the Spor Mountain.

**Corporate Overview**

Ares Strategic Mining Inc., stock symbol "ARS", has been publicly traded on the Canadian Securities Exchange (CSE) since 22 October 2021. Ares is a junior mining Company whose principal business is developing mineral prospects towards active mining operations. Currently, the Company is focusing on progressing its fluorspar projects towards production and supplying metspar and acidspar to the markets.

Ares has at its disposal, geologists, geophysicists, mining engineers and market experts responsible for developing the project towards production. The Company's business is managed by specialist staff and experts with diverse experience across the entire mineral resource industry. The Company has made great progress developing brownfield properties towards production, including completing mineworks, purchasing industrial sites, building plants, and purchasing heavy industrial equipment.

**Significant Events and Transactions During The Year**

On 7 October 2024, the Company closed the second tranche of its previously announced offering of units by issuing 765,170 Units at a price of $0.18 per Unit, for aggregate gross proceeds of $137,731. Each Unit consists of one common share in the capital of the Company (each, a "Common Share") and one nontransferable Common Share purchase warrant (each, a "Warrant"). Each Warrant is exercisable into one Common Share (each, a "Warrant Share") at a price of $0.26 per Warrant Share for a period of two years following the closing date of the Amended LIFE Offering.

On 4 November 2024, Ares announced that the Company had shipped its new flotation plant.

On 12 December 2024, Ares announced the arrival of its state-of-the-art flotation plant at the Company's industrial site in Delta, Utah.

On 15 December 2024, 202,771 warrants expired unexercised.

---

| | |
|:---|:---|
| ![](ea029307701_ex4-3img2.jpg) | **Ares Strategic Mining Inc.**<br>**For the Year Ended 30 September 2025**<br>***Canadian Dollars***<br>**Report to Shareholders and Management Discussion and Analysis** |

---

December 16, 2024 – Ares announced its inclusion as a key subcontractor in one of six winning bids awarded by the U.S. Department of Energy (DOE).

The $3.4 billion initiative is part of a national strategy to significantly expand the production capacity of Low Enriched Uranium (LEU).

On 19 December 2024, Ares announced the acquisition of the heavy mining equipment critical to the advancement of its flagship fluorspar project.

On 2 April 2025, the Company entered into another Subscription Agreement with Sorbie whereby Sorbie agreed to purchase 7,229,730 Units for gross proceeds of $1,000, 0000 over 24 months. Sorbie and the Company entered into an equity swap agreement ("Sharing Agreement") at C$0.1998 (the "Benchmark Price"). The Sharing Agreement shall provide the Company's economic interest will be realized in 24 monthly settlement tranches as measured against the Benchmark Price. If, at the time of settlement, the Settlement Price (determined monthly based on a volume weighted average price for 20 trading days prior to settlement date) ("Settlement Price") exceeds the Benchmark Price, the Company shall receive more than 100% of the monthly settlement due, on a pro rata basis. There is no upper limit placed on the additional proceeds receivable by the Company as part of the monthly settlements. If, at the time of settlement, the Settlement Price is below the Benchmark Price, the Company will receive less than the 100% of the monthly settlement due, on a pro rata basis.

On 22 June 2025, Ares announced the successful acquisition of an $11 million loan from the Utah State Legislature and the Utah Community Impact Board (CIB). This significant financial backing will accelerate the mining and processing of fluorspar and gallium at the Company's Lost Sheep mine, located near Delta, Utah.

On 16 June 2025, Ares announced the active ramp-up of operations at its Lost Sheep Fluorspar Project in Utah, with development partner Provo Mining and their expert team now on site and working.

The Company issued 9,235,035 common shares to settle a debt of $1,662,849.

6,792,131 options were exercised for gross proceeds of $882,977.

Certain purchasers of Ares debentures have converted their sum of $1,070,900 principal and $319,227 interest to 5,346,642 Ares common shares. All shares issued are subject to a four-month hold period in accordance with applicable securities laws.

On 8 July 2025, Ares announced that it has received an increase in cash through its Sharing Agreements with Sorbie Bornholm LP, providing valuable growth capital without issuing a single new share — ensuring no dilution for existing shareholders.

On 31 July 2025, Ares announced the initiation of a collaborative research program with Iowa State University (ISU) and the Ames National Laboratory, aimed at unlocking the potential of gallium extraction from the Company's fluorspar ores sourced from its Spor Mountain project in Utah.

On 11 September 2025, Ares provided a major construction update on the Company's Lumps Plant being built at its Fluorspar Project in Utah. The major milestone marked the progression from foundations work to steel erection, machinery installation, ponds insertion, and electrical C&I fitting.

On 16 September 2025, Ares reported a promising breakthrough from its ongoing materials analysis program in partnership with Iowa State University (ISU) and Ames National Laboratory. Early laboratory results confirmed the presence of germanium (Ge), in addition to the previously discovered gallium (Ga) - two highly strategic critical minerals - within Ares' fluorspar ore samples from its Spor Mountain Project in Utah.

---

| | |
|:---|:---|
| ![](ea029307701_ex4-3img2.jpg) | **Ares Strategic Mining Inc.**<br>**For the Year Ended 30 September 2025**<br>***Canadian Dollars***<br>**Report to Shareholders and Management Discussion and Analysis** |

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**Exploration**

**Spor Mountain**

**1. Lost Sheep**

The Company holds a 100% interest in and rights to certain U.S. federal mining claims located at the north-east end of the Spor Mountain Mining District, in section 21, T.12S. 12W, and T.13S. 12W, SLBM of Juab County, western Utah, USA (the "Spor Mountain"). The Spor Mountain property consists of several mineral claim blocks including the Lost Sheep Fluoride Mine, and other unpatented claims. The Company acquired its initial interest through the Amalgamation (Note 6) on 18 February 2020. During the year ended 30 September 2021, the Company acquired additional claims in the region through staking.

As part of the Amalgamation, the Company assumed an underlying property purchase agreement (the "Purchase Agreement") for certain unpatented claims comprising the Spor Mountain property, pursuant to which the Company would be required to make a payment of US$1,000,000 within 18 months from the commencement of production. During the year ended 30 September 2021, the amount of USD $1,000,000 was transferred to the underlying vendor, pursuant to which, the Company is deemed to have fulfilled its obligations under the Purchase Agreement, and the title to the unpatented claims are in the process of being transferred to the Company.

**2. Bell Hill**

The Company completed over 8,000m of geophysical IP surveys on the Bell Hill historic mine area, at the Spor Mountain in Utah, correlating geophysical anomalies with both known fluorspar mineralization, and identifying new anomalies with similar geophysical signatures to known existing fluorspar pipes.

The Company is currently the only permitted fluorspar mine in the United States. Fluorspar is an industrial mineral the US imports 100% from abroad. It is a vital component of US industry, used in the production of steel, aluminium, refrigeration units, cement, hydrofluoric acid, fluorine, electronics and touch screens, Teflon, and electric batteries. The US has been completely reliant on imports for 20 years, and this project represents an opportunity for the US to regain an entire lost industry, as well as become one of the few countries in the world which produce fluorspar. The Company has spent 2021 completing large scale drilling and engineering programs to design the mining and processing operation, which will produce fluorspar ready for US industry in the future. The Company has also worked closely with the Bureau of Land Management (BLM) and the Utah Division of Oil, Gas, and Mining (UDOGM), to update all its permits so production can begin as soon as the equipment and plant are delivered to site.

---

| | |
|:---|:---|
| ![](ea029307701_ex4-3img2.jpg) | **Ares Strategic Mining Inc.**<br>**For the Year Ended 30 September 2025**<br>***Canadian Dollars***<br>**Report to Shareholders and Management Discussion and Analysis** |

---

**Events Subsequent to 30 September 2025**

On 10 October 2025 Ares announced a non-brokered private placement offering of up to 22,222,222 units (each, a "Unit") at a price of $0.45 per Unit for gross proceeds of up to $10,000,000 (the "Offering").

On 21 October 2025, Ares announced that it has closed its previously announced offering of units, raising an aggregate amount of $10,499,850.45 under the LIFE Offering and Amended LIFE Offering.

On 3 November 2025, Ares announced the successful completion and activation of its secondary underground ventilation system at the Lost Sheep Fluorspar Mine. This achievement marks the final regulatory and operational milestone required to commence industrial-scale mining operations in full compliance with Mine Safety and Health Administration (MSHA) standards.

On 5 December 2025, Ares provided a comprehensive update on the construction and operational advancements across its Lost Sheep Fluorspar Project in Juab County, Utah. These developments mark critical progress in bringing North America's only permitted fluorspar mine into full-scale industrial production. Ares completed major milestones underground and above ground, advancing both mine readiness and plant infrastructure in tandem, which included:

● Secondary Ventilation Door Sealed: Enhances underground airflow and supports compliance with MSHA ventilation standards.

● Raise 1 Prepared for Mining: Equipped with a fully installed tugger and slusher system, enabling safe and effective ore movement to surface.

● Drill Stations Advanced: New drill stations developed in the declines to support upcoming mining headings and blasting activities.

● Waste Pad Upgraded: Facilitates efficient segregation and handling of ore and waste during mining operations.

On 20 January 2026, Ares announced that it had been awarded a five-year Indefinite Delivery/Indefinite Quantity (IDIQ) contract by the U.S. Department of Defense through the Defense Logistics Agency, with an initial award value of US$168,938,267.30 and a total contract ceiling of up to US$250 million over the term through potential future task orders.

**Results of Operations**

The net loss reported during the year ended 30 September 2025 was $3,641,111 compared to loss of $2,925,347 in the prior comparative year. The main fluctuations in costs are as follows:

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| | | |
|:---|:---|:---|
| **Office and marketing<br> (rounded to the nearest '000)**  | **Year ended<br> 30 September <br> 2025** | Year ended<br> 30 September <br> 2024 |
|  | $**2119000** | $322000 |
| &nbsp;&nbsp;&nbsp;Variance | $**1797000** |  |

---

The increase is due to 16 month marketing contract with reputable marketing company and services obtained during the year in further developments of the Company's financing options.

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| | |
|:---|:---|
| ![](ea029307701_ex4-3img2.jpg) | **Ares Strategic Mining Inc.**<br>**For the Year Ended 30 September 2025**<br>***Canadian Dollars***<br>**Report to Shareholders and Management Discussion and Analysis** |

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---

| | | |
|:---|:---|:---|
| **Accretion and interest**<br> (rounded to the nearest '000) | **Year ended<br> 30 September <br> 2025** | Year ended<br> 30 September <br> 2024 |
|  | $**1646000** | $2002000 |
| &nbsp;&nbsp;&nbsp;Variance | $**(356000)** |  |

---

During the year ended 30 September 2025, the Company reached the end of the term for it's convertible debt and thus recognized the accretion expense in the prior year. Ares also settled large portion of its outstanding convertible debt and therefore less accretion and interest recognized in the current year.

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| | | |
|:---|:---|:---|
| **Professional fees<br>(rounded to the nearest '000)** | **Year ended<br> 30 September <br> 2025** | 9 months ended<br> 30 June <br> 2024 |
|  | $**567000** | $466000 |
| &nbsp;&nbsp;&nbsp;Variance | $**101000** |  |

---

During the year ended 30 September 2025, the Company engaged a few consultants in order to help with various financing contracts and incurred those costs in order to pursue new financing opportunities and thus the increase.

**Summary of Annual Results**

The following table summarizes selected financial data for the Company for each of the three most recently completed financial years. The information set forth below should be read in conjunction with the consolidated audited financial statements, prepared in accordance with International Financial Reporting Standards and Canadian generally accepted accounting principles as applicable.

---

| | | | |
|:---|:---|:---|:---|
| **Fiscal Year Ended** | **Sep-25** | Sep-24 | Sep-23 |
| &nbsp;&nbsp;&nbsp;Total Revenues | $**-** | $- | $- |
| &nbsp;&nbsp;&nbsp;Net Loss for the Year | $**3641111** | $2925347 | $4437914 |
| &nbsp;&nbsp;&nbsp;Comprehensive Loss for the Year | $**3652820** | $2906123 | $4376838 |
| &nbsp;&nbsp;&nbsp;Loss and Comprehensive Loss per Share (Basic and Diluted) | $**(0.02)** | $(0.02) | $(0.03) |
| &nbsp;&nbsp;&nbsp;Total Assets | $**53871358** | $36455378 | $17475452 |

---

**Summary of Quarterly Results**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;Three months ended | **Sep-25**<br> **$** | Jun-25 <br>$ | Mar-25 <br>$ | Dec-24 <br>$ | Sep-24 <br>$ | Jun-24 <br>$ | Mar-24 <br>$ | Dec-23 <br>$ |
| Total revenue |  |  |  |  |  |  |  |  |
| Net (loss) for the period | **(1865753)** | (294399) | (802644) | (678315) | (616062) | (1226083) | (782377) | (300825) |
| Comprehensive (loss) for the period | **(1820589)** | (71609) | (911407) | (849215) | (579746) | (1244753) | (782653) | (298971) |
| Profit (loss) per share | **(0.02)** | (0.01) | (0.00) | (0.00) | (0.02) | (0.01) | (0.00) | (0.00) |
| Total assets | **53871358** | 55192985 | 43808586 | 38874212 | 36455378 | 34062492 | 31323267 | 30075959 |
| Working capital surplus (deficiency) | **(826000)** | 2628000 | (12047321) | (12053000) | (9448000) | 5313000 | 421000 | 11169000 |

---

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| | |
|:---|:---|
| ![](ea029307701_ex4-3img2.jpg) | **Ares Strategic Mining Inc.**<br>**For the Year Ended 30 September 2025**<br>***Canadian Dollars***<br>**Report to Shareholders and Management Discussion and Analysis** |

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**Outstanding Shares**

As at 30 September 2025, the Company had 211,554,891 common shares issued and outstanding; the fully diluted amount includes 34,599,447 warrants outstanding. As at the date of this report, Nil options and 34,599,447 warrants outstanding.

**Financial Position and Liquidity**

As at 30 September 2025, the Company's financial instruments consist of cash, restricted cash, financial assets, accounts payable and short-term loans. The Company has no speculative financial instruments, derivatives, forward contracts or hedges.

The following discussion relates to the year ended 30 September 2025 and compares that to the year ended 30 September 2024:

As at 30 September 2025, the Company had a working capital deficit of $(826,000) compared to a working capital deficit of $(9,448,000) as at 30 September 2024.

Cash used in operating activities during year ended 30 September 2025 totalled $(1,933,176) (30 September 2024: $405,457).

Cash used in investing activities during the year ended 30 September 2025 totalled $(9,975,503) (30 September 2024: $(16,032,328)).

Cash raised in financing activities during the year ended 30 September 2025 totalled $17,437,977, (30 September 2024: $16,158,146).

**Exploration and Evaluation Assets**

---

| | | | |
|:---|:---|:---|:---|
| **Exploration and Evaluation Assets** | **Spor <br> Mountain** | **Ontario <br> Properties** | **Total** |
| **Balance as at 1 October 2023** | $7960140 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4 | $7960144 |
| Geological consulting | 267486 |  | 267486 |
| Administration and camp | 59142 |  | 59142 |
| Staking and claiming | 85942 |  | 85942 |
| Adjustments on currency translation | (10563) | - | (10563) |
| **Balance as at 30 September 2024** | $**8362147** | $**4** | $**8362151** |
| **Drilling** | **147860** |  | **147860** |
| **Geological consulting** | **251449** | **-** | **251449** |
| **Staking and claiming** | **3518** |  | **3518** |
| **Administration and camp** | **54369** | **-** | **54369** |
| **Adjustments on currency translation** | **3120** | **-** | **3120** |
| **Balance as at 30 September 2025** | $**8822464** | $**4** | $**8822467** |

---

---

| | |
|:---|:---|
| ![](ea029307701_ex4-3img2.jpg) | **Ares Strategic Mining Inc.**<br>**For the Year Ended 30 September 2025**<br>***Canadian Dollars***<br>**Report to Shareholders and Management Discussion and Analysis** |

---

**Financial Instruments and Risk Management**

**a)** **Financial instrument classification and measurement** 

Financial instruments of the Company carried on the Consolidated Statement of Financial Position are carried at amortized cost. There are no significant differences between the carrying value of financial instruments and their estimated fair values as at 30 September 2025. There have been no changes in levels during the year.

The Company classifies the fair value of these transactions according to the following hierarchy:

● Level 1 – quoted prices in active markets for identical financial instruments.

● Level 2 – quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

● Level 3 – valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

**b)** **Fair values of financial assets and liabilities** 

The Company's financial instruments include cash, accounts payable and short-term loans. As at 30 September 2025, the carrying value of cash is at fair value. Accounts payable and short-term loans approximate their fair value due to their short-term nature.

**c)** **Market risk** 

Market risk is the risk that changes in market prices will affect the Company's earnings or the value of its financial instruments. Market risk is comprised of commodity price risk and interest rate risk. The objective of market risk management is to manage and control exposures within acceptable limits, while maximizing returns. The Company is not exposed to significant market risk.

**d)** **Credit risk** 

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Company's primary exposure to credit risk is on its bank accounts. The Company's bank accounts are held with major banks in Canada, accordingly the Company is not exposed to significant credit risk.

**e)** **Interest rate risk** 

Interest rate risk is the risk of losses that arise as a result of changes in contracted interest rates. The Company is not exposed to significant interest rate risk.

---

| | |
|:---|:---|
| ![](ea029307701_ex4-3img2.jpg) | **Ares Strategic Mining Inc.**<br>**For the Year Ended 30 September 2025**<br>***Canadian Dollars***<br>**Report to Shareholders and Management Discussion and Analysis** |

---

**f)** **Currency risk** 

Currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company is exposed to foreign currency risk on its restricted cash and USDA and PAB loans payable balances that are denominated in other than the functional currencies. As at 30 September 2025, the Company held currency totalling the following:

---

| | | |
|:---|:---|:---|
|  | **30 September** | 30 September |
| **Currency** (Rounded) | **2025** | 2024 |
| Canadian (Dollars) | $**183000** | 180000 |
| US (Dollars) | $**5580000** | 1509000 |

---

**g)** **Liquidity risk** 

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they come due. The Company controls liquidity risk by ensuring that it has sufficient cash resources to pay for its financial obligations. As at 30 September 2025, the Company had a cash balance of $6,580,793 to settle current liabilities of $11,908,567 that are due within one year.

**Capital Resources**

Ares has no recent history of profitable operations. Therefore, it is subject to many risks common to comparable companies, including under-capitalization, cash shortages and limitations with respect to personnel, financial and other resources as well as a lack of adequate revenues.

It will be necessary for Ares to arrange for additional financing to meet its on-going exploration and overhead requirements.

Management believes it will be able to raise equity capital as required in the long term, but recognizes the risks attached thereto. Although Ares successfully completed financing during the year ended 30 September 2024, there can be no assurance that it will be able to obtain adequate financing in the future or that the terms of such financing may be favourable.

**Capital Management**

The Company's capital consists of cash and shareholders' equity. The Company's objective when managing capital is to maintain adequate levels of funding to support the development of its businesses and maintain the necessary corporate and administrative functions to facilitate these activities. This is done primarily through equity financing, selling assets, and incurring debt. Future financings are dependent on market conditions and there can be no assurance the Company will be able to raise funds in the future. The Company invests all capital that is surplus to its immediate operational needs in short-term, highly liquid, high-grade financial instruments. There were no changes to the Company's approach to capital management during the year. The Company is not subject to externally imposed capital requirements. The Company does not currently have adequate sources of capital to complete its exploration plan, current obligations and ultimately the development of its business, and will need to raise adequate capital by obtaining equity financing, selling assets and incurring debt. The Company may raise additional debt or equity financing in the near future to meet its current obligations.

**Off-Balance Sheet Arrangements**

The Company has no off-balance sheet arrangements as at 30 September 2025 and as at the date hereof.

---

| | |
|:---|:---|
| ![](ea029307701_ex4-3img2.jpg) | **Ares Strategic Mining Inc.**<br>**For the Year Ended 30 September 2025**<br>***Canadian Dollars***<br>**Report to Shareholders and Management Discussion and Analysis** |

---

**Related Party Transactions**

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

The Company compensates certain of its key management personnel to operate its business in the normal course. Key management includes the Company's executive officers and members of its Board of Directors. Transactions and balances with key management personnel and related parties not disclosed elsewhere in the Financial Statements are as follows:

**Related Party Disclosure**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year<sup>(i)</sup>** | **Remuneration <br> or fees<sup>(ii)</sup>** | **Share-based <br> payments** | **Amounts <br> Payable and <br> Accrued <br> Liabilities** |
| CEO and Director – Management fees | **2025** | $**94000** | $**-** | $**984988** |
|  | 2024 | $144000 | $- | $425975 |
| CFO – Management fees | **2025** | $**48000** | $**-** | $**-** |
|  | 2024 | $48000 | $- | $- |
| CFO – Professional fees | **2025** | $**81875** | $**37025** | $**19471** |
|  | 2024 | $77329 | $- | $19764 |
| Directors – Director fees | **2025** | $**750** | $**-** | $**119353** |
|  | 2024 | $1500 | $- | $115210 |
| Directors – Consulting fees | **2025** | $**-** | $**-** | $**-** |
|  | 2024 | $42000 | $- | $104127 |
| **Total** | **2025** | $**224625** | $**37025** | $**1123812** |
|  | 2024 | $312829 | $- | $665076 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(i) For
 the years ended 30 September 2025 and 2024.

&nbsp;&nbsp;&nbsp;&nbsp;(ii) Amounts
 disclosed were paid or accrued to the related party.

These transactions were in the normal course of operations, which is the amount of consideration established and agreed to by the related parties.

**Management**

Ares is dependent upon the personal efforts and commitments of its existing management. To the extent that management's services would be unavailable for any reason, a disruption to the operations of Ares could result, and other persons would be required to manage and operate the Company.

**Risk Factors**

Companies operating in the mining industry face many and varied kinds of risks. While risk management cannot eliminate the impact of all potential risks, the Company strives to manage such risks to the extent possible and practical. Following are the risk factors most applicable to the Company:

Exploring and developing mineral resource projects bear a high potential for all manner of risks. Additionally, few exploration projects successfully achieve development due to factors that cannot be predicted or foreseen. Moreover, even one such factor may result in the economic viability of a project being detrimentally impacted such that it is neither feasible nor practical to proceed. The Company closely monitors its activities and those factors that could impact them, and employs experienced consulting, engineering, insurance and legal advisors to assist in its risk management reviews.

---

| | |
|:---|:---|
| ![](ea029307701_ex4-3img2.jpg) | **Ares Strategic Mining Inc.**<br>**For the Year Ended 30 September 2025**<br>***Canadian Dollars***<br>**Report to Shareholders and Management Discussion and Analysis** |

---

Although the Company has taken steps to verify the title to mineral properties in which it has an interest, in accordance with industry standards for the current stage of exploration of such properties, these procedures do not guarantee the Company's title. Property title may be subject to unregistered prior agreements or transfers and title may be affected by undetected defects.

Companies typically rely on comprehensive feasibility reports on mineral reserve estimates to reduce the risks and uncertainties associated with a production decision. The Company has not completed a feasibility study on, nor has the Company completed a mineral reserve or resource estimate at the Lost Sheep Mine and as such the financial and technical viability of the project is at higher risk than if this work had been completed. Based on historical engineering work, geological reports, historical production data and current engineering work completed or in the process by Ares, the Company intends to move forward with the development of this asset.

Ares is focusing on progressing its fluorspar projects towards exploitation, production, and supplying metspar and acidspar to the markets. The value and price of the Company's common shares, the Company's financial results, and exploration, development and mining activities of the Company, if any, may be significantly adversely affected by declines in mineral prices. Mineral prices fluctuate widely and are affected by numerous factors beyond the Company's control such as interest rates, exchange rates, inflation or deflation, global and regional supply and demand, and the political and economic conditions of mineral producing countries throughout the world.

On 11 March 2020, the World Health Organization declared Covid-19, the disease caused by the novel coronavirus, a global pandemic, which has had a significant impact on businesses through the restrictions put in place by the Canadian, provincial and municipal governments regarding travel, business operations and isolation/quarantine orders. It is not possible for the Company to predict the duration or magnitude of the adverse results of the outbreak and its effects on the Company's business or ability to raise funds. There is the possibility that future developments from the Covid-19 pandemic could negatively impact operations which could have a material adverse impact on our cash flows and financial position as well as affect judgements, estimates and assumptions made by management. The Company continues to monitor the situation closely to plan and adjust accordingly.

**Critical Accounting Estimates**

Significant assumptions about the future that management has made and other sources of estimation uncertainty at the financial position reporting date that could result in a material adjustment to the carrying amounts of assets and liabilities relate to but are not limited to the following:

● The recoverability of exploration and evaluation assets presented on the consolidated statement of financial position;

● The estimated useful lives of property and equipment which are included in the consolidated statement of financial position and the related depreciation;

● The inputs used in accounting for share-based payment transactions in the consolidated statements of comprehensive income and loss;

● Management's determination that there is no material restoration, rehabilitation, and environmental exposure, based on the facts and circumstances that existed during the year.

**Approval**

The Board of Directors of the Company has approved the disclosure contained in the Management Discussion and Analysis.

---

| | |
|:---|:---|
| ![](ea029307701_ex4-3img2.jpg) | **Ares Strategic Mining Inc.**<br>**For the Year Ended 30 September 2025**<br>***Canadian Dollars***<br>**Report to Shareholders and Management Discussion and Analysis** |

---

**A Cautionary Tale**

*This document contains "forward-looking information" which may include, but is not limited to, statements with respect to the future financial or operating performance of the Corporation, its subsidiaries and its projects, the future supply, demand, inventory, production and price of minerals, the estimation of reserves and resources, the realization of reserve estimates, the timing and amount of estimated future production, costs of production, capital, operating and exploration expenditures, costs and timing of the development of new deposits, costs and timing of future exploration, requirements for additional capital, government regulation operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters.*

 

*Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; actual results of reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of resources; possible variations of ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the resource industry; political instability, insurrection or war; delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.*

 

Respectfully submitted on behalf of the Board of Directors,

---

| |
|:---|
| ***"James Walker"*** |
| James Walker, CEO |

---

## Exhibit 4.4

**Exhibit 4.4**

![](ea029307701_ex4-4img1.jpg)

**Table of Contents**

---

| | | |
|:---|:---|:---|
| **Management's Responsibility** | **Management's Responsibility** | **1** |
| **Condensed Interim Consolidated Statements of Financial Position** | **Condensed Interim Consolidated Statements of Financial Position** | **2** |
| **Condensed Interim Consolidated Statements of Loss and Comprehensive Loss** | **Condensed Interim Consolidated Statements of Loss and Comprehensive Loss** | **3** |
| **Condensed Interim Consolidated Statements of Changes in Equity** | **Condensed Interim Consolidated Statements of Changes in Equity** | **4** |
| **Condensed Interim Consolidated Statements of Cash Flows** | **Condensed Interim Consolidated Statements of Cash Flows** | **5** |
| 1) | Nature of operations and going concern | 6 |
| 2) | Basis of preparation – Statement of Compliance | 7 |
| 3) | Summary of material accounting policies | 7 |
| 4) | Critical accounting judgements and key sources of estimation uncertainty | 7 |
| 5) | Financial instruments and risk management | 9 |
| 6) | Amounts receivable | 10 |
| 7) | Share proceeds receivable | 11 |
| 8) | Construction in progress | 13 |
| 9) | Deposits | 13 |
| 10) | Property, plant, and equipment | 14 |
| 11) | Exploration and evaluation assets | 15 |
| 12) | Short-term loans | 16 |
| 13) | Convertible debentures | 16 |
| 14) | USDA loan payable | 17 |
| 15) | PAB loan payable | 18 |
| 16) | State of Utah loan payable | 20 |
| 17) | Share capital | 21 |
| 18) | Related party transactions and obligations | 27 |
| 19) | Segmented disclosure | 28 |
| 20) | Capital management | 28 |
| 21) | Commitments and contingencies | 29 |
| 22) | Subsequent events | 29 |

---

---

| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.<br> (Unaudited)<br> Canadian Dollars*** |

---

 ****

**Management's Responsibility**

To the Shareholders of Ares Strategic Mining Inc:

Management is responsible for the preparation and presentation of the accompanying condensed interim consolidated financial statements, including responsibility for significant accounting judgments and estimates in accordance with IFRS Accounting Standards. This responsibility includes selecting appropriate accounting principles and methods, and making decisions affecting the measurement of transactions in which objective judgment is required.

In discharging its responsibilities for the integrity and fairness of the condensed interim consolidated financial statements, management designs and maintains the necessary accounting systems and related internal controls to provide reasonable assurance that transactions are authorized, assets are safeguarded and financial records are properly maintained to provide reliable information for the preparation of the condensed interim consolidated financial statements.

The Board is responsible for overseeing management in the performance of its financial reporting responsibilities, and for approving the financial information included in the annual report. The Board fulfils these responsibilities by reviewing the financial information prepared by management and discussing relevant matters with management and the external auditors. The Audit Committee has the responsibility of meeting with management, and the external auditors to discuss the internal controls over the financial reporting process, auditing matters and financial reporting issues. The Audit Committee is also responsible for recommending the appointment of Ares Strategic Mining Inc.'s external auditors.

We draw attention to Note 1 in the condensed interim consolidated financial statements which indicates the existence of a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern.

<u>*"James Walker"*</u> <u>*"Viktoriya Griffin"*</u> <br> James Walker, CEO Viktoriya Griffin, CFO

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **1 \|** P a g e |

---

---

| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.<br> (Unaudited)<br> Canadian Dollars*** |

---

**Condensed Interim Consolidated Statements of Financial Position**

---

| | | | |
|:---|:---|:---|:---|
|  | <br>Note | **As at<br> 31 March**<br>**2026** | As at<br> 30 September<br>2025 |
| Assets |  |  |  |
| **Current Assets** |  | $**12079856** | $6580793 |
| &nbsp;&nbsp;&nbsp;**Cash and cash equivalents** |  |  |  |
| &nbsp;&nbsp;&nbsp;Restricted cash | (15) | **1297088** | 1370912 |
| &nbsp;&nbsp;&nbsp;Share proceeds receivable | (7) | **2050626** | 1374825 |
| &nbsp;&nbsp;&nbsp;Amounts receivable | (6) | **101893** | 101386 |
| &nbsp;&nbsp;&nbsp;Prepaid amounts and other assets |  | **575815** | 1403006 |
|  |  | **16105278** | 10830922 |
| **Non-current Assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits | (9) | **109932** | 109798 |
| &nbsp;&nbsp;&nbsp;Share proceeds receivable | (7) | **259120** | 333613 |
| &nbsp;&nbsp;&nbsp;Construction in progress | (8) | **38012389** | 25721163 |
| &nbsp;&nbsp;&nbsp;Property, plant, and equipment | (10) | **10332909** | 8053448 |
| &nbsp;&nbsp;&nbsp;Exploration and evaluation assets | (11) | **9076021** | 8822414 |
|  |  | **57790371** | 43040436 |
|  |  | $**73895649** | $53871358 |
| Liabilities |  |  |  |
| **Current Liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | (18) | $**2554102** | $2027556 |
| &nbsp;&nbsp;&nbsp;Short-term loans | (12) | **724718** | 839906 |
| &nbsp;&nbsp;&nbsp;Convertible debentures | (13) | **-** | 244400 |
| &nbsp;&nbsp;&nbsp;PAB loan payable – current portion | (15) | **2307601** | 2255550 |
| &nbsp;&nbsp;&nbsp;USDA loan payable – current portion | (14) | **6217236** | 6289193 |
|  |  | **11803657** | 11656605 |
| **Non-Current Liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;State of Utah loan payable | (16) | **14808046** | 14403425 |
| &nbsp;&nbsp;&nbsp;PAB loan payable | (15) | **10000433** | 10775253 |
| &nbsp;&nbsp;&nbsp;USDA loan payable | (14) | **918845** | 989775 |
|  |  | **37530981** | 37825058 |
| Equity |  |  |  |
| **Equity Attributable to Shareholders** | (17) | **70350786** | 51538331 |
| &nbsp;&nbsp;&nbsp;Share capital |  |  |  |
| &nbsp;&nbsp;&nbsp;Options - Contributed surplus | (17) | **2760500** | 1543500 |
| &nbsp;&nbsp;&nbsp;Warrants - Contributed surplus | (17) | **5408781** | 2353921 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive income ("OCI") |  | **279733** | 146702 |
| &nbsp;&nbsp;&nbsp;Deficit |  | **(41214932)** | (38318063) |
|  |  | **37584868** | 17264391 |
| **Non-controlling interests** | (17) | **(1220200)** | (1218091) |
| **Total Equity** |  | **36364668** | 16046300 |
|  |  | $**73895649** | $53871358 |

---

Nature of operations and going concern (1) Capital management (20) <br> Basis of preparation – Statement of Compliance (2) Commitments and contingencies (21) <br> Related party transactions and obligations (18) Subsequent events (22)

The Condensed Interim Consolidated Financial Statements were approved by the Board of Directors on 1 June 2026 and were signed on its behalf by:

---

| | |
|:---|:---|
| ***"Bob Li"*** | ***"Michael Li"*** |
| Bob Li, Director | Michael Li, Director |

---

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **2 \|** P a g e |

---

---

| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.<br> (Unaudited)<br> Canadian Dollars*** |

---

 ****

**Condensed Interim Consolidated Statements of Loss and Comprehensive Loss**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Note | **6 Months<br> Ended<br> 31 March 2026** | 6 Months<br> Ended<br> 31 March 2025 | **3 Months<br> Ended<br> 31 March 2026** | 3 Months<br> Ended<br> 31 March 2025 |
| **General and Administrative** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | (17) | $**1217000** | $**-** | **$1217, 000** | $**-** |
| &nbsp;&nbsp;&nbsp;Professional fees | (18) | **1099597** | 408758 | **881586** | 244021 |
| &nbsp;&nbsp;&nbsp;Office and marketing |  | **1095687** | 76791 | **940689** | 57293 |
| &nbsp;&nbsp;&nbsp;Accretion and interest | (14)(15)(16) | **286002** | 1297141 | **(7425)** | 428333 |
| &nbsp;&nbsp;&nbsp;Depreciation | (10) | **189575** | 18499 | **115014** | 9273 |
| &nbsp;&nbsp;&nbsp;Management fees | (18) | **144500** | 96750 | **72500** | 48750 |
| &nbsp;&nbsp;&nbsp;Insurance |  | **67112** | 18696 | **33068** | 9247 |
| &nbsp;&nbsp;&nbsp;Foreign exchange loss/(gain) |  | **43641** | (350206) | **(81920)** | 6749 |
| &nbsp;&nbsp;&nbsp;Transfer agent and filing fees |  | **33421** | 26984 | **22183** | 17233 |
| &nbsp;&nbsp;&nbsp;Travel |  | **24547** | 236 | **17260** | 236 |
| &nbsp;&nbsp;&nbsp;Resource property |  | **23463** | 14738 | **18165** | 21475 |
| &nbsp;&nbsp;&nbsp;Bank charges |  | **10775** | 3640 | **2073** | 1869 |
| &nbsp;&nbsp;&nbsp;Shareholder relations |  | **4470** | 3948 | **-** | - |
|  |  | **(4239790)** | (1615975) | **(3230193)** | (844479) |
| **Other Income/ (Expenses)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income |  | **30467** | 34791 | **12229** | 16354 |
| &nbsp;&nbsp;&nbsp;Gain on sale of marketable securities |  | **-** | 22857 | **-** |  |
| &nbsp;&nbsp;&nbsp;Realized and unrealized gain (loss) on share proceeds receivable | (7) | **1310755** | 8517 | **(53406)** | (51887) |
| &nbsp;&nbsp;&nbsp;Gain/(loss) on settlement of debt |  | **(410)** | 77368 | **-** | 77368 |
| **Net (Loss) for the Period** |  | **(2898978)** | (1472442) | **(3271370)** | (802644) |
| **Other Comprehensive Income (Loss)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Foreign operations – foreign exchange |  | **133031** | (279663) | **119134** | (108763) |
| **Comprehensive (Loss) for the Period** |  | $**(2765947)** | $**(1752105)** | $**(3152236)** | $**(911407)** |
| **Net (Loss) Attributed to:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Shareholders |  | **(2896869)** | (1473858) | **(3273285)** | (803049) |
| &nbsp;&nbsp;&nbsp;Non-controlling interest |  | **(2109)** | 1416 | **1915** | 405 |
|  |  | $**(2898978)** | $**(1472442)** | $**(3271370)** | $**(802644)** |
| **Comprehensive (Loss) Attributed to:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Shareholders |  | **(2763838)** | $**(1753521)** | **(3154151)** | (911812) |
| &nbsp;&nbsp;&nbsp;Non-controlling interest |  | **(2109)** | 1416 | **1915** | 405 |
|  |  | $**(2765947)** | $**(1752105)** | $**(3152236)** | $**(911407)** |
| **Basic and Diluted Loss per Share** |  | $**(0.0119)** | $**(0.01)** | $**(0.0129)** | $**(0.00)** |
| **Weighted Average number of Common Shares Outstanding** |  | **242758330** | 178367170 | **253539459** | 182122037 |

---

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **3 \|** P a g e |

---

---

| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.<br> (Unaudited)<br> Canadian Dollars*** |

---

**Condensed Interim Consolidated Statements of Changes in Equity**

**Equity attributable to shareholders**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Shares** | **Share capital** | **Subscriptions received** | **Options** | **Warrants** |
|  | **#** | **$** | **$** | **$** | **$** |
| Balance as at 1 October 2024 | 173417021 | 44383773) |  |  |  |
| &nbsp;&nbsp;&nbsp;Shares issued for private placement, net | 765170 | 233331) |  |  |  |
| &nbsp;&nbsp;&nbsp;Shares issued for convertible debt | 1147184 | 298268 |  |  |  |
| &nbsp;&nbsp;&nbsp;Shares issued for debt settlement | 4038323 | 798941 |  |  |  |
| &nbsp;&nbsp;&nbsp;Stock options exercised | 6792131 | 882977) |  |  |  |
| &nbsp;&nbsp;&nbsp;Other comprehensive income |  | -) |  |  |  |
| &nbsp;&nbsp;&nbsp;Net income (loss) for the period | - | - |  |  |  |
| **Balance as at 31 march 2025** | 186159829 | 46597290 |  |  |  |
| **Balance as at 30 September 2025** | 211554891 | 51538331) |  |  |  |
| &nbsp;&nbsp;&nbsp;Shares issued for private placement, net | **37777444** | **15289136** |  |  |  |
| &nbsp;&nbsp;&nbsp;Shares issued for convertible debt | **521923** | **135700** |  |  |  |
| &nbsp;&nbsp;&nbsp;Shares issued for debt settlement | **664949** | **251916** |  |  |  |
| &nbsp;&nbsp;&nbsp;Warrants exercised | **9338863** | **2461574)** |  |  |  |
| &nbsp;&nbsp;&nbsp;Shares issued for Sorbie | **2377779** | **696489** |  |  |  |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | **-** | **-** |  |  |  |
| &nbsp;&nbsp;&nbsp;Other comprehensive income | **-** | **-** |  |  |  |
| &nbsp;&nbsp;&nbsp;Net loss for the period | **-** | **-** |  |  |  |
| **Balance as at 31 March 2026** | **262235849** | **70373146** |  |  |  |

---

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **4 \|** P a g e |

---

---

| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.*<br> FOR THE SIX MONTHS PERIOD ENDED 31 March 2026*<br> (Unaudited)<br> Canadian Dollars*** |

---

**Condensed Interim Consolidated Statements of Cash Flows**

---

| | | | |
|:---|:---|:---|:---|
|  | <br>Note | **6 Months Ended**<br>**31 March <br> 2026** | 6 Months Ended<br>31 March <br> 2025 |
| Operating Activities |  |  |  |
| **Loss for the period** |  | $**(2898978)** | $(1472442) |
| **Items not Affecting Cash** |  | **-** |  |
| &nbsp;&nbsp;&nbsp;Interest and accretion on convertible debt | (13) | **(108700)** | 884669 |
| &nbsp;&nbsp;&nbsp;Interest and accretion on USDA loan | (14) | **67223** | 17359 |
| &nbsp;&nbsp;&nbsp;Interest and accretion on PAB loan | (15) | **89063** | 99610 |
| &nbsp;&nbsp;&nbsp;Interest and accretion on Utah loan |  | **383035** |  |
| &nbsp;&nbsp;&nbsp;Depreciation | (10) | **189575** | 18499 |
| &nbsp;&nbsp;&nbsp;Unrealized gain on share proceeds receivable | (7) | **(1310346)** | (8517) |
| &nbsp;&nbsp;&nbsp;Stock-based compensation |  | **1217000** | - |
|  |  | **(2372128)** | (460821) |
| **Net Change in Non-cash Working Capital** |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities |  | **778462** | 4514494 |
| &nbsp;&nbsp;&nbsp;Amounts receivable |  | **(507)** | 3860 |
| &nbsp;&nbsp;&nbsp;Prepaid amounts and other assets |  | **827191** | (2727272) |
|  |  | **(766982)** | 1330260 |
| Investing Activities |  |  |  |
| &nbsp;&nbsp;&nbsp;Construction in progress | (8) | **(12291360)** | (3072888) |
| &nbsp;&nbsp;&nbsp;Purchase of equipment – RAMP |  | **(2445158)** |  |
| &nbsp;&nbsp;&nbsp;Resource property – expenditures | (11) | **(283894)** | (148797) |
|  |  | **(15020412)** | (3221685) |
| Financing Activities |  |  |  |
| &nbsp;&nbsp;&nbsp;Short term loan (paid)/received | (12) | **(938192)** | 346073 |
| &nbsp;&nbsp;&nbsp;Proceeds from subscriptions |  | **18152290** | 137731 |
| &nbsp;&nbsp;&nbsp;Proceeds from options exercised |  | **-** | 520977 |
| &nbsp;&nbsp;&nbsp;Proceeds from warrants exercised |  | **2428104** |  |
| &nbsp;&nbsp;&nbsp;Proceeds from share proceeds receivable |  | **1668343** | 238242 |
| &nbsp;&nbsp;&nbsp;(Repayment)/Proceeds from the USDA loan |  | **(218352)** | 1768740 |
|  |  | **21092193** | 3011763 |
| **Net effect of foreign currency translation** |  | **120440** | 109562 |
| **Net Increase/(Decrease) in cash and cash equivalents** |  | **5425239** | 1229900 |
| Cash and cash equivalents – Beginning of Period |  | **7951705** | 2217113 |
| **Cash and cash equivalents – End of Period** |  | $**13376944** | $**3447013** |

---

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **5 \|** P a g e |

---

---

| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.*<br> FOR THE SIX MONTHS PERIOD ENDED 31 March 2026*<br> (Unaudited)<br> Canadian Dollars*** |

---

Notes to the Condensed Interim Consolidated Financial Statements

**1)** **Nature of operations and going concern**

Ares Strategic Mining Inc. ("Ares" or the "Company") was incorporated pursuant to the Company Act (Ontario) by registration of its Memorandum and Articles on 20 November 2009. On 9 July 2010, the Company registered in British Columbia for extra provincial registration as the Company's administrative office is located at 1001-409 Granville Street, Vancouver BC, V6C 1T2. The Company is classified as a Junior Natural Resource Mining Company and is listed on the Canadian Securities Exchange under the stock symbol "ARS".

The Company was previously in the business of acquiring and exploring lithium properties in Nevada and Arizona. On 18 February 2020, the Company completed a three-cornered amalgamation transaction (the "Amalgamation") with American Strategic Minerals Inc. ("ASM"). As a result, Ares is focusing on progressing its fluorspar projects towards exploitation, production, and supplying metspar and acidspar to the markets.

These condensed interim consolidated financial statements (the "Financial Statements") have been prepared on the basis of the accounting principles applicable to a going concern, which assumes the Company will be able to continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of operations. There are several adverse conditions that cast significant doubt upon the soundness of this assumption. The business of mining and exploration involves a high degree of risk and there can be no assurance that current exploration programs will result in profitable mining operations. The recoverability of exploration and evaluation expenditures and construction in progress is dependent upon several factors; these factors include the discovery of economically recoverable reserves, the ability of the Company to obtain the necessary financing to complete the development of these properties, and construction in progress, and future profitable production or proceeds from disposition of mineral properties or construction in progress once completed.

Consistent with other companies in the mineral exploration sector, the Company has incurred operating losses since inception, has limited sources of revenue, is unable to self-finance operations and has significant cash requirements to meet its overhead, maintain its mineral interests and fund the completion of its construction in progress. These factors indicate the existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern.

As discussed in Note 14, the Company was in breach of certain financial covenants as at 31 March 2026, and 30 September 2025. The lender has not demanded repayment; however, this condition contributes to the material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern.

For the Company to continue to operate as a going concern, it must continue to obtain additional financing to maintain operations. Although the Company has been successful in the past at raising funds, there can be no assurance that this will continue in the future. Subsequent to year-end, the Company has raised additional equity financing and plans to obtain additional equity and debt financing to continue to explore and develop its mineral properties and complete its construction in progress. If the going concern assumptions were not appropriate for these Financial Statements, then adjustments would be necessary to the carrying value of assets and liabilities, the reported expenses and the statement of financial position classifications used, and such adjustments could be material.

---

| | | |
|:---|:---|:---|
|  | **31 March** | 30 September |
| **(Rounded 000's)** | **2026** | 2025 |
| &nbsp;&nbsp;&nbsp;Working capital (deficit) | $4302000 | $(826000) |
| &nbsp;&nbsp;&nbsp;Accumulated deficit attributed to shareholders | $(41215000) | $(38318000) |

---

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **6 \|** P a g e |

---

---

| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.*<br> FOR THE SIX MONTHS PERIOD ENDED 31 March 2026*<br> (Unaudited)<br> Canadian Dollars*** |

---

Notes to the Condensed Interim Consolidated Financial Statements (Cont.)

**2)** **Basis of preparation – Statement of Compliance**

These Financial Statements, including comparatives, have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" ("IAS 34") using accounting policies consistent with IFRS Accounting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). The Financial Statements have been prepared on a historical cost basis, except for financial instruments classified as financial instruments at fair value through profit and loss, which are stated at their fair value. In addition, these Financial Statements have been prepared using the accrual basis of accounting except for cash flow information.

Since the Financial Statements do not include all disclosures required by IFRS for annual financial statements, they should be read in conjunction with the Company's audited annual consolidated financial statements for the year ended 30 September 2025.

The policies set out were consistently applied to all the periods presented unless otherwise noted below. The preparation of the condensed interim consolidated financial statements requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

**3)** **Summary of material accounting policies**

The accounting policies and methods of computation followed in preparing these Financial Statements are the same as those followed in preparing the most recent audited annual consolidated financial statements. For a complete summary of material accounting policies, please refer to the Company's audited annual consolidated financial statements for the year ended 30 September 2025.

**4)** **Critical accounting judgements and key sources of estimation uncertainty**

In the application of the Company's accounting policies, management is required to make judgments, estimates and assumptions about the carrying amount and classification of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revisions affect only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.

The following are the critical judgments and areas involving estimates, that management have made in the process of applying the Company's accounting policies and that have the most significant effect on the amount recognized in the Financial Statements.

&nbsp;&nbsp;&nbsp;&nbsp;**a.** **Judgements** 

**Income taxes**

Deferred tax assets are recognized for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the extent that probable that future taxable profit will be available against which the deductible temporary differences and carry-forward of unused tax assets and unused tax losses can be utilized. In addition, the valuation of tax credits receivable requires management to make judgements on the amount and timing of recovery.

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **7 \|** P a g e |

---

---

| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.*<br> FOR THE SIX MONTHS PERIOD ENDED 31 March 2026*<br> (Unaudited)<br> Canadian Dollars*** |

---

Notes to the Condensed Interim Consolidated Financial Statements (Cont.)

**Going concern evaluation**

As discussed in Note 1, these Financial Statements have been prepared under the assumptions applicable to a going concern. If the going concern assumption were not appropriate for these Financial Statements, then adjustments would be necessary to the carrying value of assets and liabilities, the reported expenses and the condensed interim consolidated statement of financial position classifications used and such adjustments could be material.

The Company reviews the going concern assessment at the end of each reporting period. There were no material changes to the assessment as at 31 March 2026.

**Exploration evaluation assets**

The Company makes certain estimates and assumptions regarding the recoverability of the carrying values of exploration and evaluation assets. The amounts shown for exploration and evaluation assets do not necessarily represent present or future values. The recoverability of the assets' carrying values is dependent upon the determination of economically recoverable reserves, the ability of the Company to obtain the necessary financing and permits to complete development and future profitable production or proceeds from the disposition thereof.

The Company has taken steps to verify title to exploration and evaluation assets in which it has or is in the process of earning an interest, including review of condition of title reports, vesting deeds, mining claim location notices and filings, and property tax and other public records and is not presently aware of any title defects. The procedures the Company has undertaken and may undertake in the future to verify title provide no assurance that the underlying properties are not subject to prior agreements or transfers of which the Company is unaware.

**Long-lived assets**

The Company makes certain judgments in its assessment of whether indicators of impairment exist with respect to its long-lived assets. The carrying amounts of the Company's long-lived assets are reviewed at each reporting date for indicators of impairment. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the amount of the impairment, if any. The recoverable amount of an asset is evaluated at the cash-generating unit level, which is the smallest identifiable group of assets that generates cash inflows that are largely ind ependent of the cash inflows from other assets or group of assets. The recoverable amount of a CGU is the greater of its fair value less costs to sell and its value in use.

**b.** **Estimates** 

**Useful lives of property, plant and equipment**

Useful lives are estimated by management based on the expected period over which the assets are anticipated to be available for use, taking into consideration factors such as expected usage, physical wear and tear, technical or commercial obsolescence, and legal or other limits on the use of the assets. The useful lives and residual values of property, plant and equipment are reviewed at least annually and are adjusted prospectively if expectations differ from previous estimates. Changes in the estimated useful lives of assets could result in changes to depreciation expense in current and future periods

**Stock-based compensation**

The Company uses Black-Scholes Option Pricing Model for valuation of stock options. Option pricing models require the input of subjective assumptions and estimates including expected price volatility, interest rate and forfeiture rate.

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **8 \|** P a g e |

---

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| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.*<br> FOR THE SIX MONTHS PERIOD ENDED 31 March 2026*<br> (Unaudited)<br> Canadian Dollars*** |

---

Notes to the Condensed Interim Consolidated Financial Statements (Cont.)

**5)** **Financial instruments and risk management**

**a)** **Financial instrument classification and measurement** 

Financial instruments of the Company carried on the condensed interim consolidated statement of financial position are carried at amortized cost. There have been no changes in levels during the period.

The Company classifies the fair value of these transactions according to the following hierarchy:

● Level 1 – quoted prices in active markets for identical financial instruments.

● Level 2 – quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

● Level 3 – valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

**b)** **Fair values of financial assets and liabilities** 

The Company's financial instruments include cash and cash equivalents, restricted cash, share proceeds receivable, accounts payable, short-term loans and long-term loans. As at 31 March 2026, the carrying value of cash and cash equivalents is at fair value. Accounts payable and short-term loans approximate their fair value due to their short-term nature.

**c)** **Market risk** 

Market risk is the risk that changes in market prices will affect the Company's earnings or the value of its financial instruments. Market risk is comprised of commodity price risk and interest rate risk. The objective of market risk management is to manage and control exposures within acceptable limits, while maximizing returns. The Company is not exposed to significant market risk.

**d)** **Credit risk** 

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Company's primary exposure to credit risk is on its bank accounts. The Company's bank accounts are held with major banks in Canada, accordingly the Company is not exposed to significant credit risk.

**e)** **Interest rate risk** 

Interest rate risk is the risk of losses that arise as a result of changes in contracted interest rates. The Company is not exposed to significant interest rate risk.

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **9 \|** P a g e |

---

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| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.*<br> FOR THE SIX MONTHS PERIOD ENDED 31 March 2026*<br> (Unaudited)<br> Canadian Dollars*** |

---

Notes to the Condensed Interim Consolidated Financial Statements (Cont.)

**f)** **Currency risk** 

Currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company is exposed to foreign currency risk on its restricted cash and USDA and PAB loans payable balances that are denominated in other than the functional currencies. As at 31 March 2026, the Company held currency totalling the following:

---

| | | |
|:---|:---|:---|
|  | **31 March** | 30 September |
| **Currency (Rounded)** | **2026** | 2025 |
| Canadian (Dollars) | $**12045000** | 183000 |
| US (Dollars) | $**956000** | 5580000 |

---

**g)** **Liquidity risk** 

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they come due. The Company controls liquidity risk by ensuring that it has sufficient cash resources to pay for its financial obligations. As at 31 March 2026, the Company had a cash balance of $12,079,856 to settle current liabilities of $11,803,657 that are due within one year. The Company's outstanding liabilities, their current values and the principal amounts along with the due dates are as stated in the table below:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Carrying <br> value** | **Principal <br> amount** | **Less than <br> 1 year** | **1 – 5 years** | **5+ years** |
| Accounts payable and accrued liabilities | $2554102 | $2554102 | $2554102 | $- | $- |
| Short-term loans | 724718 | 724718 | 724718 |  |  |
| USDA loan | 7136081 | 7136081 | 7136081 |  |  |
| State of Utah loan | 14808046 | 15332900 |  |  | 14808046 |
| PAB loan | 12308034 | 13806580 | 2307601 | 11243198 | 10065003 |
| **Total** | $**37530981** | $**39554381** | $**12722502** | $**11243198** | $**24873049** |

---

**6)** **Amounts receivable**

Amounts receivable consists of:

---

| | | |
|:---|:---|:---|
| **Amounts Receivable** | **31 March <br> 2026** | 30 September <br> 2025 |
| &nbsp;&nbsp;&nbsp;Goods and services tax receivable | $**36900** | $36393 |
| &nbsp;&nbsp;&nbsp;Receivable on disposition | **64993** | 64993 |
|  | **101893** | 101386 |

---

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **10 \|** P a g e |

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| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.*<br> FOR THE SIX MONTHS PERIOD ENDED 31 March 2026*<br> (Unaudited)<br> Canadian Dollars*** |

---

Notes to the Condensed Interim Consolidated Financial Statements (Cont.)

**7)** **Share proceeds receivable**

As at 31 March 2026, the Company has entered into three share proceeds receivable equity swap agreements with Sorbie Bornholm LP ("Sorbie" or collectively, "Sorbie Agreements"). Under each agreement, Sorbie subscribed for Units payable over 24 months. Each Unit consists of one common share and either one full common share purchase warrant or one-half warrant, as described below.

In connection with each subscription, the parties entered into a sharing agreement (equity swap arrangement) under which the Company's economic interest is realized in 24 monthly settlement tranches measured against a defined benchmark price. The monthly settlement amount is based on the 20-day volume weighted average price ("Settlement Price") prior to each settlement date, based on the following:

● If the Settlement Price exceeds the benchmark price, the Company receives more than 100% of the monthly tranche on a pro rata basis, with no upper limit.

● If the Settlement Price is below the benchmark price, the Company receives less than 100% of the monthly tranche on a pro rata basis.

**Summary of Sorbie Agreements:**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Agreement Date** | **Units Issued** | **Issue Price** | **Gross Proceeds** | **Benchmark Price** | **Warrant Terms** | **Term** |
| 30 September 2024 | 8333333 | $0.1800 | $1500000 | $0.2610 | 1 full Warrant | 24 months |
| 2 April 2025 | 7229730 | $0.1998 | $1000000 | $0.1998 | 1 full Warrant | 24 months |
| 20 October 2025 | 2222223 | $0.4500 | $1000000 | $0.6300 | 1/2 Warrant | 24 months |

---

For each of the Sorbie Agreements noted above, the share proceeds receivable relating to the cash receivable did not meet the classification of a financial asset measured at amortized cost or at fair value through other comprehensive income as the Company does not have a business model whose objective is to hold financial assets in order to collect contractual cash flows, and the financial asset does not give rise to cash flows that are solely payments of principal and interest. Therefore, the cash receivable is classified as a financial asset measured at fair value through profit or loss.

In accordance with IFRS 9 Financial Instruments, the Units issued were initially measured based on the fair value of the related share proceeds receivable, with the corresponding amount allocated between common shares and warrants based on their relative fair values in accordance with IAS 32 Financial Instruments: Presentation, and the Company's accounting policy.

Subsequently, the financial assets are revalued at each reporting period with the difference between the initial valuation and the value recognized in profit or loss as an unrealized gain (loss) on financial asset.

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **11 \|** P a g e |

---

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| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.*<br> FOR THE SIX MONTHS PERIOD ENDED 31 March 2026*<br> (Unaudited)<br> Canadian Dollars*** |

---

Notes to the Condensed Interim Consolidated Financial Statements (Cont.)

The following table summarizes the movement in the share proceeds receivable:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | 2025 | 2025 | 2024 | |
| **SHARE PROCEEDS RECEIVABLE** | October | April | September | **Total** |
| &nbsp;&nbsp;&nbsp;Initial fair value | $**-** | 842006 | 830086 | **1672092** |
| &nbsp;&nbsp;&nbsp;Less: portion derecognized upon settlement |  | (1953550) | (436088) | **(631443)** |
| &nbsp;&nbsp;&nbsp;Fair value adjustment |  | 326632 | 341158 | **667789** |
| &nbsp;&nbsp;&nbsp;Balance as at 30 September 2025 |  | 973282 | 735156 | **1708438** |
| &nbsp;&nbsp;&nbsp;Initial fair value | 959305 |  |  | **959305** |
| &nbsp;&nbsp;&nbsp;Less: portion derecognized upon settlement | (222512) | (330884) | (380236) | **(933632)** |
| &nbsp;&nbsp;&nbsp;Fair value adjustment | (216143) | 481447 | 310331 | **575635** |
| &nbsp;&nbsp;&nbsp;**Balance as at 31 March 2026** | $**520650** | 1123845 | 665251 | **2309746** |

---

The following table summarizes the settlement activity:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **SETTLEMENT** | 2025 <br> October | 2025<br> April | 2024<br> September | **Total** |
| &nbsp;&nbsp;&nbsp;Cash received | $- | 266101 | 573505 | **839606** |
| &nbsp;&nbsp;&nbsp;Carrying value of share proceeds receivable | - | (195355) | (436088) | **(631443)** |
| &nbsp;&nbsp;&nbsp;<u>Realized gain (loss) during 30 September 2025</u> | - | 70746 | 137417 | **208163** |
| &nbsp;&nbsp;&nbsp;Cash received | 172449 | 696324 | 799570 | **1668343** |
| &nbsp;&nbsp;&nbsp;Carrying value of share proceeds receivable | (222512) | (330883) | (380237) | **(933632)** |
| &nbsp;&nbsp;&nbsp;**Realized gain (loss) during 31 March 2026** | $(50063) | 365441 | 419333 | **734711** |

---

The following table provides a breakdown of the share proceeds receivable between current and non-current assets based on the timing of the expected cash flows:

---

| | | |
|:---|:---|:---|
|  | **31 March** | 30 September |
| **SHARE PROCEEDS RECEIVABLE** | **2026** | 2025 |
| &nbsp;&nbsp;&nbsp;Current | $**2050626** | $1374825 |
| &nbsp;&nbsp;&nbsp;Non-current | **259120** | 333613 |
|  | $**2309746** | $1708438 |

---

● The realized gain/loss represents the difference between the carrying amount of the portion settled and the cash received.

● The unrealized gain/loss represents the fair value adjustment on the remaining receivable at period end date.

All gains and losses are recognized in the condensed interim consolidated statements of loss and comprehensive loss under other income/expenses.

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **12 \|** P a g e |

---

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| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.*<br> FOR THE SIX MONTHS PERIOD ENDED 31 March 2026*<br> (Unaudited)<br> Canadian Dollars*** |

---

Notes to the Condensed Interim Consolidated Financial Statements (Cont.)

**8)** **Construction in progress**

During the period ended 30 September 2021, the Company entered into an agreement to acquire a fluorspar lump manufacturing facility (the "Facility") pursuant to the terms and conditions of a Profit-Sharing Agreement dated 9 February 2021, as amended (the "Profit Sharing Agreement") between the Company and the Mujim Group, a non-arm's length private Shanghai company ("Mujim"). Pursuant to the terms of the Profit-Sharing Agreement, the Company had agreed to acquire the Facility by issuing an aggregate of 5,300,000 common shares in the capital of the Company (each, a "Share"), the fair value of which was determined based on the date when they were issued, i.e. $0.67, and the consideration was recorded as a capital advance to Mujim as at 30 September 2021.

The Company has agreed that, upon completion of the Facility, it would incur costs pertaining to the installation of the Facility, including compensating contractors from Mujim to assist with installation and to begin operating the Facility. Furthermore, once the Facility is operational within parameters and specifications defined in the Profit-Sharing Agreement, the company will pay Mujim, US$20 per ton for ongoing technical support, and has also agreed to pay Mujim, US$10 per ton as agency fee for any sales in Asia.

The final purchase price may vary depending on certain target production output metrics defined in the Profit-Sharing agreement.

As at 31 March 2026, the construction of the Facility and Flotation Plant are in progress and significantly all components of the Flotation Plant were received from a related party (Note 18). As at 31 March 2026, the Company has incurred $38,012,389 (30 September 2025 - $25,721,163) in construction costs on the Facility which included $4,097,483 (2025 - $2,747,544) of capitalized borrowing costs. The Company is expected to incur additional costs to complete the installation of the Facility and the Flotation Plant and begin operations.

**9)** **Deposits**

Deposits consist of:

---

| | | |
|:---|:---|:---|
| **Deposits** | **31 March<br> 2026** | 30 September 2025 |
| &nbsp;&nbsp;&nbsp;Office lease | $**6309** | $6309 |
| &nbsp;&nbsp;&nbsp;Surety deposits | **103623** | 103489 |
|  | $**109932** | $109798 |

---

As at 31 March 2026, the balance in deposits of $6,309 represents a deposit for office lease, reclamation surety and bond in the amount of $103,623 paid to the State of Utah for a five-year escalation at Lost Sheep and Bell Hill.

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **13 \|** P a g e |

---

---

| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.*<br> FOR THE SIX MONTHS PERIOD ENDED 31 March 2026*<br> (Unaudited)<br> Canadian Dollars*** |

---

Notes to the Condensed Interim Consolidated Financial Statements (Cont.)

**10)** **Property, plant, and equipment**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Property, Plant, and Equipment** | **Equipment** | **Auto** | **Land** | **Ramp** | **Total** |
| Cost |  |  |  |  |  |
| Balance as at 1 October 2024 | $161329 | $70537 | $2792062 | $3317500 | $6341428 |
| &nbsp;&nbsp;&nbsp;Addition | 407233 |  |  | 1559472 | 1966705 |
| &nbsp;&nbsp;&nbsp;Adjustment on currency translation |  | 2200 | 84732 | 96210 | 183142 |
| **Balance as at 30 September 2025** | $**568562** | $**72737** | $**2876794** | $**4973182** | $**8491275** |
| &nbsp;&nbsp;&nbsp;Addition | **-** | **-** | **-** | **2445158** | **2445158** |
| &nbsp;&nbsp;&nbsp;Adjustment on currency translation | **526** | **94** | **3624** | **21448** | **25692** |
| **Balance as at 31 March 2026** | $**569088** | $**72831** | $**2880418** | $**7439787** | $**10962125** |
| Depreciation |  |  |  |  |  |
| Balance as at 1 October 2024 | $139087 | $24077 | $- | $- | $163164 |
| &nbsp;&nbsp;&nbsp;Depreciation for the year | 17985 | 7301 |  | 249820 | 275106 |
| &nbsp;&nbsp;&nbsp;Adjustment on currency translation | - | 718 | - | (1161) | (443) |
| **Balance as at 30 September 2025** | $**157072** | $**32096** | $**-** | $**248659** | $**437828** |
| &nbsp;&nbsp;&nbsp;Depreciation for the period | **22410** | **3619** | **-** | **163545** | **189575** |
| &nbsp;&nbsp;&nbsp;Adjustments on currency translation | **107** | **59** | **-** | **1647** | **1813** |
| **Balance as at 31 March 2026** | $**179589** | $**35775** | $**-** | $**413851** | $**629216** |
| Carrying Amounts |  |  |  |  |  |
| **Balance as at 30 September 2025** | $411489 | $40642 | $2876794 | $4724523 | $8053448 |
| **Balance as at 31 March 2026** | $**389499** | $**37056** | $**2880418** | $**7025936** | $**10332909** |

---

Property and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.

Depreciation is charged to recognize the cost of the asset on the condensed interim consolidated statements of comprehensive loss using the straight-line method over the estimated useful life of the asset.

Depreciation is charged to recognize the cost of the asset on the condensed interim consolidated statements of loss and comprehensive loss using the straight-line method over the estimated useful life of the asset.

During the year ended 30 September 2023, the Company acquired an industrial land parcel located in Millard County, State of Utah in the United States for the purpose of setting up its fluorspar plant, which was pledged as collateral on the USDA loan.

In addition to the land parcel acquired during the year, land comprises five Canadian properties located in Ontario, Canada (Note 11(f)). The Company earns revenues from sale of quarry rock located on these properties. These revenues are offset against maintenance payments made on the property and are included within the resource property expense on the condensed interim consolidated statement of loss and comprehensive loss.

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **14 \|** P a g e |

---

---

| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.*<br> FOR THE SIX MONTHS ENDED 31 March 2026*<br> (Unaudited)<br> Canadian Dollars*** |

---

Notes to the Condensed Interim Consolidated Financial Statements (Cont.)

**11)** **Exploration and evaluation assets**

The following table summarizes exploration and evaluation assets:

---

| | | | |
|:---|:---|:---|:---|
| <br>**Exploration and Evaluation Assets** | **Spor**<br>**Mountain** | **Ontario**<br>**Properties** |<br>**Total** |
| **Balance as at 1 October 2024** | $8362147 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4 | $8362151 |
| Drilling | 147860 |  | 147860 |
| Geological consulting | 251449 |  | 251449 |
| Administration and camp | 54369 |  | 54369 |
| Staking and claiming | 3518 |  | 3518 |
| Adjustments on currency translation | 3067 | - | 3067 |
| **Balance as at 30 September 2025** | $**8822410** | $**4** | $**8822414** |
| **Geological consulting** | **107991** | **-** | **107991** |
| **Staking and claiming** | **132728** | **-** | **132728** |
| **Drilling** | **2507** | **-** | **2507** |
| **Administration and camp** | **40668** | **-** | **40668** |
| **Adjustments on currency translation** | **(30287)** | **-** | **(30287)** |
| **Balance as at 31 March 2026** | $**9074956** | $**4** | $**9076021** |

---

**a)** **Spor Mountain (also known as Lost Sheep)** 

The Company holds a 100% interest in and rights to certain U.S. federal mining claims located at the north-east end of the Spor Mountain Mining District, in section 21, T.12S. 12W, and T.13S. 12W, SLBM of Juab County, western Utah, USA (the "Spor Mountain"). The Spor Mountain property consists of several mineral claim blocks including the Lost Sheep Fluoride Mine, and other unpatented claims. The Company acquired its initial interest through the Amalgamation on 18 February 2020. During the period ended 30 September 2021, the Company acquired additional claims in the region through staking.

As part of the amalgamation with ASM, the Company assumed an underlying property purchase agreement (the "Purchase Agreement") for certain unpatented claims comprising the Spor Mountain property, pursuant to which the Company would be required to make a payment of US$1,000,000 within 18 months from the commencement of production. During the period ended 30 September 2021, USD $1,000,000 was transferred to the underlying vendor, pursuant to which, the Company is deemed to have fulfilled its obligations under the Purchase Agreement, and the title to the unpatented claims was transferred to the Company.

**b)** **Ontario properties** 

The Company holds a 100% interest in five properties located in Ontario, Canada.

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **15 \|** P a g e |

---

---

| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.*<br> FOR THE SIX MONTHS ENDED 31 March 2026*<br> (Unaudited)<br> Canadian Dollars*** |

---

Notes to the Condensed Interim Consolidated Financial Statements (Cont.)

**12)** **Short-term loans**

The following is a summary of the Company's short-term loans as at 31 March 2026 and 30 September 2025:

---

| | | |
|:---|:---|:---|
| <br>**Short-term Loans** | <br>**As at** | **Outstanding**<br>**Principal** |
| &nbsp;&nbsp;&nbsp;Operational loans from related parties | **31 March 2026** | $**700709** |
|  | 30 September 2025 | $812141 |
| &nbsp;&nbsp;&nbsp;Canada Emergency Business Account loan | **31 March 2026** | $**24009** |
|  | 30 September 2025 | $27765 |
| **Total as at 31 March 2026** |  | $**724718** |
| Total as at 30 September 2025 |  | $839906 |

---

As at 31 March 2026 , the Company holds a net $700,709 (30 September 2025 - $696,413) loan from the CEO as well as received $nil (30 September 2025 $112,203) in loans from companies related to directors of the Company subject to 10% per annum and maturing on 30 August 2025, which have been settled as at 31 March 2026. There are no defined terms or due dates of repayment on the loans from the CEO and a non-related party, and the loans are unsecured. Canada Emergency Business Account loan of $60,000 was refinanced with the financial institution in order to repay the full amount in January 2024 and the Company qualified for $20,000 loan forgiveness which was recognized as other income during the year ended 30 September 2024. The refinanced balance of $40,000 is subject to prime rate plus 2.14% per annum over 5-year term commencing on 18 January 2024.

**13)** **Convertible debentures**

On 2 December 2022, the Company closed a non-brokered private placement offering of secured convertible debentures totalling $1,252,700. The Company incurred a financing fee equal to 45% of the principal amount amounting to $563,715 and paid a finders' fee totalling $52,720 for net proceeds of $636,265. The principal amount of convertible debentures will be convertible at holder's option into full-paid common shares in the capital of the Company at any time prior to maturity in two years, at an exercise price of $0.26 per common share. Interest on the debentures shall be paid semi-annually at an annual interest rate of 12% per annum.

In connection with the convertible debentures, the Company also issued 202,771 finders' warrants, with each warrant exercisable into one common share of the Company for a period of two years at a price of $0.26 per common share. The fair value of the warrants was calculated to be $20,000 using the Black-Scholes option pricing model.

During six months ended 31 March 2026, the Company settled the remaining principal convertible debt of $181,800 and associated interest of $62,600 through a combination of common shares and cash payments. Of the total amount settled, $135,700 was converted into common shares of the Company, with the remaining balance paid in cash.

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **16 \|** P a g e |

---

---

| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.*<br> FOR THE SIX MONTHS ENDED 31 March 2026*<br> (Unaudited)<br> Canadian Dollars*** |

---

Notes to the Condensed Interim Consolidated Financial Statements (Cont.)

The following table summarizes the accounting for the convertible debentures and the amounts recognized during the period/year.

---

| | | |
|:---|:---|:---|
|  | **31 March** | 30 September |
| **Convertible Debentures** | **2026** | 2025 |
| &nbsp;&nbsp;&nbsp;Balance – Beginning of Period/Year | $**244400** | $1386189 |
| &nbsp;&nbsp;&nbsp;Interest expense | **(62600)** | 102892 |
| &nbsp;&nbsp;&nbsp;Accretion expense | **-** | 145446 |
| &nbsp;&nbsp;&nbsp;Settlement through cash/shares | **(181800)** | (1390127) |
| &nbsp;&nbsp;&nbsp;Balance – End of Period/Year | $**-** | $244400 |

---

**14)** **USDA loan payable**

On 30 June 2023, the Company's subsidiary, Ares Utah, signed a promissory note agreement with Community Bank & Trust ("CB&T") – West Georgia and received a total loan of US$4,420,000 at prime rate stated in money rates section of Wall Street journal plus 2.50%., in lieu of which it pledged its land that was purchased in conjunction with the proceeds and situated in Utah (Note **Error! Reference source not found.**. The loan matures in 15 years and is guaranteed by the US Department of Agriculture ("USDA"). The interest is due and payable on the 1<sup>st</sup> of each month starting 1 May 2023 for the initial 12 months after which the Company is required to repay the monthly instalment consisting of the principal and interest (as per repayment schedule) on each payment date. For the purpose of securing payments and obligations, the Company granted the power of sale and right of the parcel of the land purchased with the proceeds as well as all the proceeds and awards or payments from the land purchased.

---

| | |
|:---|:---|
|  | Amount |
| Principal amount (US$4,420,000) | $5979597 |
| Less: Transaction cost (US$382,176) | (534243) |
| Amount funded, 30 June 2023 | 5445354 |

---

---

| | | |
|:---|:---|:---|
| **USDA Loan Payable** | **31 March<br> 2026** | 30 September<br> 2025 |
| Balance – Beginning of Year | $**7278968** | $5768569 |
| Amortization of transactions costs – accretion and other | **67223** | 88700 |
| Add: Principal amount received (US$1,200,000) | **-** | 1680906 |
| Less: Principal amount repaid | **(218352)** | (314418) |
| Adjustment on currency translation | **8242** | 55211 |
| Balance – End of Period | $**7136081** | $7278968 |
| Less: Current portion | $**6217236** | $6289193 |
| Non-current portion | $**918845** | $989775 |

---

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **17 \|** P a g e |

---

---

| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.*<br> FOR THE SIX MONTHS ENDED 31 March 2026*<br> (Unaudited)<br> Canadian Dollars*** |

---

Notes to the Condensed Interim Consolidated Financial Statements (Cont.)

The Company has acted as a guarantor in securing the USDA loan payable, and the Company and its subsidiary, Ares Utah, have provided as collateral, interest in all of the Company's rights, title and interest in and to all property and fixtures (current and future) of the Company and its subsidiaries. In connection with the first USDA loan payable of US$4,420,000, Ares Utah is subject to the following financial covenants:

● Maintain a debt service coverage ratio of at least 1.25 to 1.0, tested annually, beginning December 31, 2023 and for the remaining term of the loan period; and

● Maintain a debt to net worth ration not to exceed 9.0 to 1.0 at any time, which is to be tested annually.

During the year ended 30 September 2025, the Company received commercial loan of US$1,200,000 from CB&T at prime rate stated in money rates section of Wall Street journal plus 2.50%., the loan maturing on 16 September 2028 is due and payable on the 16<sup>th</sup> of each month starting from October 2025 and consisting of the principal and interest (as per repayment schedule) on each payment date. The loan was used primarily to pay for interest and principal of USDA loan and as at 31 March 2026, the remaining balance of cash was US$2,655.

As at 31 March 2026 and 30 September 2025, the Company did not meet the above covenants and therefore, the first USDA loan of US$4,420,000 is in default and has been classified as current liability.

**15)** **PAB loan payable**

On 15 December 2023, the Company's subsidiary, Ares Utah closed on the State of Utah's Private Activity Bond ("PAB") program from Millard County, Utah ("Millard County") pursuant to a US$10,000,000 tax-exempt Manufacturing Facility Revenue Bond (the "Series 2023A Bond"), and a US$500,000 taxable Manufacturing Facility Revenue Bond (the "Series 2023B Bond"). The repayment of interest on both the bonds begins 15 December 2024 whereas the principal sum of the Series 2023A Bonds begins annually from 15 December 2025 to 15 December 2034 while the Series 2023B bonds are due to be paid all at once on 15 December 2025. As part of the closing, the Company incurred transaction costs in the amount of US$1,666,940 which were allocated to the issuance cost of loan payable and deducted from the principal value. As at 31 March 2026, the Series 2023B Bond was repaid and cash of $1,297,088 is restricted for the repayment of the Series 2023A Bond.

In addition, the Company entered into a Guaranty Agreement and Guaranty of Completion agreement with the Trustee, pursuant to which the Company agreed to guaranty certain obligations of Ares Utah, including the repayment of the principal, interest and other amounts owed under the bonds. The proceeds from the bonds will be used by Ares Utah to acquire, construct, and develop a processing facility (the "Project") on the Company's Lost Sheet Fluorspar Project located in Delta, Millard County, Utah.

During the six months ended 31 March 2026, interest expense capitalized within construction in progress was US$530,000, the amortization of debt costs being recognized as accretion expense over the loan period totalling US$64,389 which is recorded within interest and accretion expense on the condensed interim consolidated statement of loss and comprehensive loss.

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **18 \|** P a g e |

---

---

| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.*<br> FOR THE SIX MONTHS ENDED 31 March 2026*<br> (Unaudited)<br> Canadian Dollars*** |

---

Notes to the Condensed Interim Consolidated Financial Statements (Cont.)

---

| | |
|:---|:---|
|  | **Amount** |
| Amount funded: Principal amount (US$10,500,000) | $14175000 |
| Transaction cash cost | (907572) |
| Transaction shares issued cost | (1356100) |
| Amortization of transaction costs - accretion | 569868 |
| Adjustments on currency translation | 8781 |
| **PAB loan balance as at 30 September 2024** | $12489977 |
| Amortization of transaction costs - accretion | 152020 |
| Adjustments on currency translation | 388806 |
| **PAB loan balance as at 30 September 2025** | $**13030803** |
| Amortization of transaction costs - accretion | $**89063** |
| Less: Principal amount repaid | $**(829371)** |
| Adjustments on currency translation | **17539** |
| **PAB loan balance as at 31 March 2026** | $**12308034** |
| Less: Current portion | $**(2307601)** |
| Non-current portion | $**10000433** |

---

The Company has acted as a guarantor in securing the PAB loan payable, and the Company and its subsidiary, Ares Utah, have provided as collateral, interest in 5.5 out of 48 acres of Ares Utah's rights, title and interest in property and fixtures (current and future) of the Company and its subsidiaries situated on the site funded by the PAB, the Project. In connection with the PAB loan payable, Ares Utah is subject to the following financial covenants:

● Maintain coverage ratio covenant of at least 1.10 or above for each Fiscal Year commencing more than year after the completion of construction and installation of the Project.

The repayment commitment of 2023A Bonds has been described in the table below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Financial year** | **Principal<br> (USD)** | **Principal<br> (USD)** | **Interest<br> (USD)** | **Interest<br> (USD)** |
| 2026 |  |  |  | 495250 |
| 2027 |  | 665000 |  | 957250 |
| 2028 |  | 730000 |  | 887500 |
| 2029 |  | 805000 |  | 810750 |
| 2030 |  | 880000 |  | 726500 |
| 2031 and above |  | 6825000 |  | 1999750 |

---

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **19 \|** P a g e |

---

---

| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.*<br> FOR THE SIX MONTHS ENDED 31 March 2026*<br> (Unaudited)<br> Canadian Dollars*** |

---

Notes to the Condensed Interim Consolidated Financial Statements (Cont.)

**16)** **State of Utah loan payable**

On 30 May 2025, the Company's subsidiary, Ares Utah, signed a promissory note agreement with the State of Utah through the Permanent Community Impact Fund Board and received a total loan of US$11,000,000 at a simple interest rate of 4.50%. The loan matures on 1 May 2031 ("Maturity Date") for payment in full with accrued interest. Ares Utah may, but is not obligated to make interim payments, of any amount, without penalty, and a final payment will be paid on the Maturity Date.

This loan is secured by and is entitled to the benefits and security contemplated by a Trust Deed Security Agreement and Fixture Filing ("Trust Deed"), covering real property and related improvements, and certain equipment, machinery and fixtures, situated in Millard County, Utah.

---

| | | |
|:---|:---|:---|
|  | Amount | Amount |
| Principal amount | US$ | 11000000 |
| Less: Transaction cost |  | (836500) |
| Amount funded, 30 May 2025 |  | 10163500 |

---

---

| | | |
|:---|:---|:---|
|  | **31 March** | 30 September |
| State of Utah Loan Payable | **2026** | 2025 |
| Balance – Amount funded (US$11,000,000) | $**-** | $15313100 |
| Transaction cash cost | **-** | (1169929) |
| **Balance – Beginning of Year** | **14403425** | **-** |
| Interest and accretion of borrowing costs | **383035** | 256006 |
| Adjustments on currency translation | **21586** | 4248 |
| Balance – End of Period | $**14808046** | $14403425 |

---

During the six months period ended 31 March 2026, interest expense capitalized within construction in progress was US$276,919, the amortization of debt costs being recognized as accretion expense over the loan period totalling US$nil which are recorded within interest and accretion expense on the condensed interim consolidated statement of loss and comprehensive loss.

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **20 \|** P a g e |

---

---

| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.*<br> FOR THE SIX MONTHS ENDED 31 March 2026*<br> (Unaudited)<br> Canadian Dollars*** |

---

Notes to the Condensed Interim Consolidated Financial Statements (Cont.)

**17)** **Share capital**

**a)** **Authorized:** 

Unlimited common shares without par value.

**b)** **Issued or allotted and fully paid:** 

<u>During the six months period ended 31 March 2026:</u>

---

| | | |
|:---|:---|:---|
|  | **Number of Shares** | **Amount** |
| **Balance as at 1 October 2025** | 211554891 | $51538331 |
| Shares issued for debt | **664949** | **251916** |
| Shares issued for exercise of warrants | **9338863** | **2461574** |
| Shares issued for convertible debt settlement | **521923** | **135700** |
| Shares issued for LIFE Offering, net | **37777444** | **15289136** |
| Shares issued for Sorbie (Note 8) | **2377779** | **696489** |
| **Balance as 31 March 2026** | **262235849** | $**70373146** |

---

<u>During the six months period ended 31 March 2026:</u>

● The Company issued 664,949 common shares to settle liabilities totalling $285,385.

● 9,338,863 shares were issued for gross proceeds of $2,461,574 for exercised warrants.

● Certain purchasers of the Company's convertible debentures converted their sum of $100,000 principal and $35,700 interest to 521,923 Ares common shares. All shares issued are subject to a four-month hold period in accordance with applicable securities laws.

● The Company closed two LIFE Offerings of units (each, a "Unit") by issuing 37,777,444 Units at a price of $0.45 and $0.60 per Unit, for aggregate gross proceeds of $19,499,850. Each Unit consists of one common share in the capital of the Company (each, a "Common Share") and one-half of nontransferable common share purchase warrant (each, a "Warrant"). Each Warrant is exercisable into one common share (each, a "Warrant Share") at a price of $0.55 and $0.75 per Warrant Share for a period of two years.

In connection with the closing of those private placements, the Company paid aggregate cash finder's fees of $1,267,966 and issued a total of 2,428,814 finder's warrants. Each finder's warrant is exercisable at $0.55 per common share for a period of two years from the respective closing dates and is subject to a four-month hold period.

● The Company raised gross proceeds of $1,000,000 from Sorbie pursuant to a financing arrangement (October 2025) payable in 24 monthly settlement tranches, with settlements based on the volume-weighted average price of the Company's common shares relative to a benchmark price of $0.63. In connection with the financing, the Company issued 2,222,223 units (Note 7), each consisting of one common share and one-half of a common share purchase warrant.

Each full warrant is exercisable for two years at an exercise price of $0.55 and $0.75 per share and is subject to a 9.99% ownership restriction.

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **21 \|** P a g e |

---

---

| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.*<br> FOR THE SIX MONTHS ENDED 31 March 2026*<br> (Unaudited)<br> Canadian Dollars*** |

---

Notes to the Condensed Interim Consolidated Financial Statements (Cont.)

In connection with the financing, the Company entered into a Sharing Agreement structured as an equity swap arrangement governed by an ISDA Master Agreement and Credit Support Annex. Under the arrangement, $1,000,000 of credit support was posted and is released in equal monthly tranches over the 24-month term. If the settlement price exceeds the benchmark price, the Company receives more than 100% of the monthly tranche (uncapped). If the settlement price is below the benchmark price, the Company receives less than 100% on a pro rata basis.

Upon initial recognition, the units were recorded in exchange for a share proceeds receivable classified as a financial asset measured at fair value through profit or loss in accordance with IFRS 9, as the contractual cash flows are not solely payments of principal and interest. The units issued were measured based on the fair value of the share proceeds receivable, with proceeds allocated between Common Shares and warrants based on their relative fair values in accordance with IAS 32.

As consideration for entering into the Sharing Agreement, the Company agreed to a value payment of $70,000, and issued 155,556 common shares and 77,778 warrants. These issuances were accounted for in accordance with IFRS 2, Share-based Payment where warrants were allocated a value of $17,063 and common shares of $52,937 using the Black-Scholes model.

The Company also entered into a finder's agreement providing for a $60,000 cash fee (6% of funds raised), calculated based on the 20-day volume-weighted average trading price preceding payment.

Upon initial recognition, the 2,222,223 units were recorded in exchange for a cash receivable classified as a financial asset measured at fair value through profit or loss. The half of warrants (1,111,112) were allocated a value of $202,816 and $696,489 to Common Shares.

<u>During the year ended 30 September 2025:</u>

● The Company issued 18,004,197 common shares with a fair value of $4,043,832 to settle liabilities totalling $4,376,783, recognizing a gain of $332,951 on the consolidated statement of loss and comprehensive loss.

● 6,792,131 options were exercised for gross proceeds of $882,977 and fair value of $362,000 for exercised options.

● Certain purchasers of the Company's convertible debentures converted their sum of $1,070,900 principal and $319,227 interest to 5,346,642 Ares common shares. All shares issued are subject to a four-month hold period in accordance with applicable securities laws.

● The Company closed the Offering of units (each, a "Unit") by issuing 765,170 Units at a price of $0.18 per Unit, for aggregate gross proceeds of $137,731. Each Unit consists of one common share in the capital of the Company (each, a "Common Share") and one nontransferable Common Share purchase warrant (each, a "Warrant"). Each Warrant is exercisable into one Common Share (each, a "Warrant Share") at a price of $0.26 per Warrant Share for a period of two years.

● The Company raised gross proceeds of $1,000,000 from Sorbie pursuant to a financing arrangement payable in 24 monthly settlement tranches, with settlements based on the volume-weighted average price of the Company's common shares relative to a benchmark price of C$0.1998. In connection with the financing, the Company issued 7,229,730 units (Note 7), each consisting of one Common Share and one non-transferable common share purchase warrant.

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **22 \|** P a g e |

---

---

| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.*<br> FOR THE SIX MONTHS ENDED 31 March 2026*<br> (Unaudited)<br> Canadian Dollars*** |

---

Notes to the Condensed Interim Consolidated Financial Statements (Cont.)

Each Warrant entitles the holder to acquire one Common Share at an exercise price of $0.26 and includes: (i) an acceleration provision permitting the Company to accelerate expiry if the ten-day volume-weighted average trading price equals or exceeds C$0.40, in which case the Warrants expire 30 days following notice; and (ii) a 9.99% ownership restriction.

As consideration for entering into the Sharing Agreement, the Company agreed to a value payment of $70,000, payable in cash or units at $0.1480 per unit. The Company elected to issue 472,973 units, each comprising one Common Share and one Warrant. These units were accounted for in accordance with IFRS 2, Share-based Payment.

The Company also entered into a finder's agreement providing for a $60,000 cash fee (6% of funds raised) and 254,433 finder's warrants, calculated based on the 20-day volume-weighted average trading price preceding payment. As at September 30, 2025, 875,000 agent warrants had been issued in connection with the 2024 and 2025 Sorbie tranches, with an aggregate fair value of $75,000 determined using the Black-Scholes option pricing model.

Upon initial recognition, the 7,229,730 units were recorded in exchange for a cash receivable classified as a financial asset measured at fair value through profit or loss. The Warrants were valued at $842,006 using the Black-Scholes option pricing model, and the Common Shares were valued at $1,373,649 based on the $0.19 closing market price on the issuance date. Based on relative fair values, $322,134 was allocated to Warrants and $519,872 to Common Shares.

The 472,973 units issued in settlement of the $70,000 value payment were measured at fair value on the date of issuance. The Warrants were valued at $55,684 using the Black-Scholes model and the Common Shares at $89,865 based on the $0.19 closing price. Based on relative fair values, $43,219 was allocated to Common Shares and $26,781 to Warrants.

**c)** **Summary of stock option activity** 

The Company has adopted an incentive stock option plan to grant options to directors, officers, and consultants for up to 10% of the outstanding common shares. The Board of Directors determines the exercise price per share and the vesting period under the plan. The options can be granted for a maximum term of five years.

Stock option activity during the six months period ended 31 March 2026 and the year ended 30 September 2025 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Stock Option Activity | **31 March<br> 2026** | **Weighted <br> Average<br> Exercise Price** | 30 September<br> 2025 | Weighted <br> Average<br> Exercise Price |
| **Balance – Beginning of Year / Period** | **-** | $**-** | 21793053 | $0.12 |
| &nbsp;&nbsp;&nbsp;Issued | **7100000** | **0.63** |  |  |
| &nbsp;&nbsp;&nbsp;Exercised | **-** | **-** | (6792131) |  |
| &nbsp;&nbsp;&nbsp;Expired | **-** | **-** | (15000922) |  |
| &nbsp;&nbsp;&nbsp;Cancelled | **(800000)** | **0.63** | - | - |
| **Balance – End of Year/ Period** | **6300000** | $**0.63** | - | $- |

---

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **23 \|** P a g e |

---

---

| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.*<br> FOR THE SIX MONTHS ENDED 31 March 2026*<br> (Unaudited)<br> Canadian Dollars*** |

---

Notes to the Condensed Interim Consolidated Financial Statements (Cont.)

The Company cancelled an aggregate of 800,000 options during the six months period ended 31 March 2026 due to directors resigning from the Company.

<u>During the year ended 30 September 2025:</u>

The Company did not grant any stock options during the year ended 30 September 2025.

**Warrants**

<u>Warrant activity during the six months ended 31 March 2026 and the year ended 30 September 2025 is as follows:</u>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Warrant Activity | **31 March<br> 2026** | **Weighted <br> Average<br> Exercise Price** | **Weighted <br> Average<br> Exercise Price** | 30 September<br> 20**2**5 | Weighted <br> Average<br> Exercise Price |
| **Balance – Beginning of Year / Period** | **34599447** | $— | **0.26** | 25903772 | 0.26 |
| &nbsp;&nbsp;&nbsp;Issued | **22639759** |  | **0.63** | 8898446 | 0.25 |
| &nbsp;&nbsp;&nbsp;Exercised | **(9338863)** |  | **0.26** |  |  |
| &nbsp;&nbsp;&nbsp;Expired | **-** |  | **-** | (202771) | - |
| **Balance – End of Year / Period** | **47900343** | $— | **0.41** | 34599447 | $0.26 |

---

<u>During the six months period ended 31 March 2026:</u>

Details of warrants outstanding as at 31 March 2026 and 30 September 2025 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Exercise** | **31 March** | 30 September |
| **Issuance Date** | **Expiry Date** | **Price** | **2026** | 2025 |
| 31 May 2024 | 31 May 2026 | $0.26 | **3556724** | 6463784 |
| 7 June 2024 | 7 June 2026 | $0.26 | **1655624** | 5709592 |
| 28 June 2024 | 28 June 2026 | $0.26 | **1695300** | 2102914 |
| 16 July 2024 | 16 July 2026 | $0.26 | **247248** | 1019219 |
| 1 August 2024 | 1 August 2026 | $0.26 | **946390** | 1387720 |
| 11 September 2024 | 11 September 2026 | $0.26 | **9017772** | 9017772 |
| 7 October 2024 | 7 October 2026 | $0.26 | **8250** | 765170 |
| 11 March 2025 | 11 March 2028 | $0.30 | **649113** | 649113 |
| 8 April 2025 | 8 April 2028 | $0.24 | **7229730** | 7229730 |
| 30 May 2025 | 30 May 2028 | $0.30 | **254433** | 254433 |
| 16 October 2025 | 16 October 2027 | $0.55 | **6222223** |  |
| 21 October 2025 | 21 October 2027 | $0.55 | **6917535** |  |
| 03 February 2026 | 03 February 2028 | $0.75 | **9500001** | - |
|  |  |  | **47900343** | 34599447 |

---

As at 31 March 2026, the outstanding the outstanding warrants have a weighted average remaining life of 1.12 years (2025 – 1.20 years) and a weighted average exercise price of $0.41 (2025- $0.26).

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **24 \|** P a g e |

---

---

| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.*<br> FOR THE SIX MONTHS ENDED 31 March 2026*<br> (Unaudited)<br> Canadian Dollars*** |

---

Notes to the Condensed Interim Consolidated Financial Statements (Cont.)

**d)** **Share-based payments** 

On 23 January 2026, the Company granted 7,100,000 (800,000 forfeited) stock options to directors and officers and consultants at an exercise price of CAD $0.63 per share, expiring 23 January 2028 and recognized share-based payments as follows:

---

| | | |
|:---|:---|:---|
|  | **31 March<br> 2026** | 30 September<br> 2025 |
| **Total Options Granted** | **6300000** | - |
| &nbsp;&nbsp;&nbsp;Average exercise price | $**0.63** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Estimated fair value of compensation | $**1217000** | $- |
| &nbsp;&nbsp;&nbsp;Estimated fair value per option | $**0.19** | $- |

---

The fair value of the share-based payments of options to be recognized in the accounts has been estimated using the Black-Scholes Model with the following weighted-average assumptions:

---

| | | |
|:---|:---|:---|
|  | **31 March<br> 2026** | 30 September<br> 2025 |
| Risk free interest rate | **2.58%** |  |
| Expected stock price volatility | **54%** |  |
| Expected option life in years | **2** |  |

---

The Black-Scholes Option Pricing Model was created for use in estimating the fair value of freely tradable, fully transferable options. The Company's employee stock options have characteristics significantly different from those of traded options, and because changes in the highly subjective input assumptions can materially affect the calculated values, management believes that the accepted Black-Scholes model does not necessarily provide a reliable measure of the fair value of the Company's stock option awards.

**e)** **Non-controlling interest** 

On 16 October 2014, the Company entered into an investment agreement with OMC Investments Limited ("OMC"), of Hong Kong. The transaction closed on 28 November 2014, and the Company issued 19,048,000 units of the Company by way of private placement at a price of $0.05 per unit, for aggregate proceeds of $952,400. After the 20-for-1 share consolidation during the three months period ended 30 September 2018, OMC owns 952,400 units. Each Unit consisted of one common share and one common share purchase warrant. Each Warrant is exercisable for a period of six years from the date of closing of the private placement at an exercise price of $0.05. These warrants expired on 30 September 2018. OMC now holds approximately 5.93% of the issued and outstanding shares of the Company. The Company also issued 15 common shares of its subsidiary Canadian Iron to OMC, reducing its ownership share from 100% to 85%. Canadian Iron holds a 100% interest in Karas Iron and Griffith Iron. The Company's interests in the Karas and Griffith properties are held in Karas Iron and Griffith Iron, respectively.

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **25 \|** P a g e |

---

---

| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.*<br> FOR THE SIX MONTHS ENDED 31 March 2026*<br> (Unaudited)<br> Canadian Dollars*** |

---

Notes to the Condensed Interim Consolidated Financial Statements (Cont.)

In addition, the shareholders' agreement with OMC will allow OMC to progressively earn additional equity in Canadian Iron, up to a total of 70% of Canadian Iron's issued and outstanding shares, as follows:

● an additional 30% for $8.2 million in funding from OMC for dewatering, resource drilling and environmental permitting ("Resource Definition Funding");

● an additional 5% for $2 million in total funding for a preliminary economic assessment, funded 70% by OMC and 30% by Ares; and

● an additional 20% for $20 million in total funding for a feasibility study, funded 70% by OMC and 30% by Ares, and assuming the feasibility study establishes technical and economic viability.

Should either party not fully contribute its share of funding to both the preliminary economic assessment and feasibility study, it may face dilution.

In connection with this transaction, the Company has also agreed to enter into an option agreement with OMC on its other mineral properties. As of 30 September 2023, OMC has not entered into any option agreements related to the Company's other mineral properties. Should OMC fund the full $8.2 million Resource Definition Funding, it has the right to acquire an 80% interest in either the El Sol, Whitemud and Papagonga properties. This may be increased to 90%, if within a five-year period after earning 80%, OMC funds an additional $1.5 million in expenditures on the property chosen.

The value attributed to the non-controlling interest in the Company as at 31 March 2026 is an accumulated deficit of $1,220,200 (30 September 2025 - $1,218,091). For the six months period ended 31 March 2026, net loss and comprehensive loss of $2,109 (31 March 2025 – income of $1,416) has been attributed to the non-controlling interest in these Financial Statements.

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **26 \|** P a g e |

---

---

| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.*<br> FOR THE SIX MONTHS ENDED 31 March 2026*<br> (Unaudited)<br> Canadian Dollars*** |

---

Notes to the Condensed Interim Consolidated Financial Statements (Cont.)

**18)** **Related party transactions and obligations**

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

The Company compensates certain of its key management personnel to operate its business in the normal course. Key management includes the Company's executive officers and members of its Board of Directors. Transactions and balances with key management personnel and related parties not disclosed elsewhere in the Financial Statements are as follows:

**Related Party Disclosure**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year<sup>(i)</sup>** | **Remuneration or fees<sup>(ii)</sup>** | **Share-based payments** | **Amounts Payable and Accrued Liabilities <sup>(iii)</sup>** |
| CEO and Director – Management fees | **2026** | $**72000** | $**-** | $**994102** |
|  | 2025 | $72000 | $- | $719595 |
| CFO – Management fees | **2026** | $**24000** | $**-** | $**-** |
|  | 2025 | $24000 | $- | $- |
| CFO – Professional fees | **2026** | $**38710** | $**17500** | $**12527** |
|  | 2025 | $50755 | $22975 | $54676 |
| Directors – Director fees | **2026** | $**-** | $**-** | $**7150** |
|  | 2025 | $750 | $- | $123214 |
| Directors – Other fees | **2026** | $**26669** | $**-** | $**-** |
|  | 2025 | $21000 | $- | $126177 |
| **Total** | **2026** | $**161379** | $**17500** | $**1040548** |
|  | 2025 | $168505 | $22975 | $1023662 |

---

(i) For
the six months period ended 31 March 2026 and 2025.

(ii) Amounts
disclosed were paid or accrued to the related party.

(iii) As at 31 March 2026 and 30 September 2025.

These transactions were in the normal course of operations, which is the amount of consideration established and agreed to by the related parties.

Accounts payable and accrued liabilities are unsecured, non-interest bearing and due on demand.

Short-term loans with related parties are described in (Note 0. There are no terms and conditions attached to the said loans.

The Company purchased the Flotation Plant from a non-arm's length company, which is an entity controlled by a director of the Company and paid US$6,007,000. As at 31 March 2026, significantly all components of the flotation plant were received and awaiting installation, and thus the amounts paid are recorded within the construction in progress.

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **27 \|** P a g e |

---

---

| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.*<br> FOR THE SIX MONTHS ENDED 31 March 2026*<br> (Unaudited)<br> Canadian Dollars*** |

---

Notes to the Condensed Interim Consolidated Financial Statements (Cont.)

**19)** **Segmented disclosure**

The Company has one reportable segment, being the acquisition, exploration, and development of resource properties. The following table provides segmented disclosure of assets and liabilities based on geographic location:

---

| | | | |
|:---|:---|:---|:---|
| (Rounded to 000's) | **Canada** | **US** | **Total** |
| **31 March 2026** |  |  |  |
| &nbsp;&nbsp;&nbsp;Current Assets | $**14542000** | $**1563000** | **16105000** |
| **Non-Current Assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;Other non-current assets | **4662000** | **44052000** | **48714000** |
| &nbsp;&nbsp;&nbsp;Resource properties | **5918000** | **3158000** | **9076000** |
| **Liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Current Liabilities | **2255000** | **9449000** | **11804000** |
| &nbsp;&nbsp;&nbsp;Non- Current Liabilities | **-** | **25727000** | **25727000** |
| 30 September 2025 |  |  |  |
| &nbsp;&nbsp;&nbsp;Current Assets | $2780000 | $8051000 | $10831000 |
| Non-Current Assets |  |  |  |
| &nbsp;&nbsp;&nbsp;Other non-current assets | 4739000 | 29479000 | 34218000 |
| &nbsp;&nbsp;&nbsp;Resource properties | 5978000 | 2844000 | 8822000 |
| Liabilities |  |  |  |
| &nbsp;&nbsp;&nbsp;Current Liabilities | 1649000 | 10008000 | 11657000 |
| &nbsp;&nbsp;&nbsp;Non-Current Liabilities | - | 26168000 | 26168000 |

---

**20)** **Capital management**

The Company's capital consists of shareholders' equity and it has capital resources of cash. The Company's objective when managing capital is to maintain adequate levels of funding to support the development of its businesses and maintain the necessary corporate and administrative functions to facilitate these activities. This is done primarily through equity financing, selling assets, and incurring debt. Future financings are dependent on market conditions and there can be no assurance the Company will be able to raise funds in the future. The Company invests all capital that is surplus to its immediate operational needs in short-term, highly liquid, high-grade financial instruments. There were no changes to the Company's approach to capital management during the year. The Company is not subject to externally imposed capital requirements. The Company does not currently have adequate sources of capital to complete its exploration plan, current obligations and ultimately the development of its business, and will need to raise adequate capital by obtaining equity financing, selling assets and incurring debt. The Company may raise additional debt or equity financing in the near future to meet its current obligations.

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **28 \|** P a g e |

---

---

| | |
|:---|:---|
| ![](ea029307701_ex4-4img2.jpg) | **Ares Strategic Mining Inc** ***.*<br> FOR THE SIX MONTHS ENDED 31 March 2026*<br> (Unaudited)<br> Canadian Dollars*** |

---

Notes to the Condensed Interim Consolidated Financial Statements (Cont.)

**21)** **Commitments and contingencies**

The repayment of USDA, PAB loans, State of Utah, and convertible debt interest is described within respective notes.

As at 31 March 2026, the Company is aware of a claim filed in the Ontario Superior Court of Justice on 9 August 2024 pertaining to an Asset Purchase Agreement entered into on 22 July 2022. The claimant has alleged that the Company breached the Binding Letter of Offer dated 18 August 2022 where the Company paid $1,250,000 out of a total purchase price deposit amount of $2,150,000. The claimant is seeking the remaining portion of the purchase price deposit in the amount of $900,000 and pre-and post-judgement interest at the prime rate of the Bank of Nova Scotia plus 12%, and the costs of the claim plus all applicable taxes. The Company has assessed that the claimant cannot demonstrate a loss because of the Company's decision to terminate the Binding Letter of Offer. Based on the Company's assessment, the claim is not expected to have a significant impact on the Company's Financial Statements. Therefore, no liability has been recorded in relation to this claim as of 31 March 2026.

**22)** **Subsequent events**

Subsequent to the reporting period, the following events occurred:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) The
 Company entered into a Settlement Agreement and Release dated 22 April 2026 with Hinkinite
 Resources LLC and Bryson Hinkins to resolve a dispute relating to overlapping unpatented
 mining claims in Juab County, Utah. Pursuant to the agreement, Hinkinite agreed to abandon
 and transfer certain mining claims to the Company in exchange for aggregate consideration
 consisting of US$50,000 cash, approximately US$50,000 in common shares of the Company (subject
 to regulatory approval), and reimbursement of US$27,878 in verified staking costs. The related
 litigation was voluntarily dismissed with prejudice on 28 April 2026.

ii) The Company issued 3,334,275 common shares pursuant to the exercise of warrants and 264,449 warrants expired unexercised.

---

| |
|:---|
| -- The accompanying notes form an integral part of the condensed interim consolidated financial statements -- |
| **29 \|** P a g e |

---

## Exhibit 4.5

**Exhibit 4.5**

![](ea029307701_ex4-5img1.jpg)

\| \| \| Ares Strategic Mining Inc. Management's Discussion and Analysis For the Six-Month Period Ended 31 March 2026 Stated in Canadian Dollars DATE: 1 JUNE 2026

---

| | |
|:---|:---|
| ![](ea029307701_ex4-5img2.jpg) | **Ares Strategic Mining Inc.<br>For the Six-month Period Ended 31 March 2026<br>** <br> ***Canadian Dollars*<br>Report to Shareholders and Management Discussion and Analysis**  |

---

**To Our Shareholders**

This Management Discussion and Analysis ("MD&A") supplements - but does not form part of – the Consolidated Financial Statements for the six months ended 31, March 2026. Consequently, the following discussion and analysis of the financial condition and results of operations for Ares Strategic Mining Inc. ("Ares" or the "Company"), formerly Lithium Energy Products Inc., should be read in conjunction with the Consolidated Financial Statements for the Six months ended 31, March 2026, and the related notes therein, which have been prepared in accordance with IFRS Accounting Standards ("IFRS"), consistently applied.

Discussion of the Company, its operations and associated risks are further described in the Company's filings, available for viewing at www.sedar.com. A copy of this MD&A will be provided to any applicant upon request.

**Forward-looking Statements**

Certain statements contained in the following MD&A and elsewhere constitute forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made, and readers are advised to consider such forward-looking statements in light of the risks set forth in the Company's filings and herein. Additional information regarding the Company, including copies of the Company's continuous disclosure materials is available through the SEDAR website at www.sedar.com.

The table below sets forth the significant forward-looking information included in this MD&A:

---

| | | |
|:---|:---|:---|
| **Forward-Looking Information** | **Key Assumptions** | **Most Relevant Risk Factors** |
| Future funding for ongoing operations | Ares has the resources to fund their ongoing operations and the ability to raise the funds for further operations which exceed current resources. | Ares has disclosed that this may be difficult and failure to raise these funds will materially impact the Company's ability to continue as a going concern. |
| Proving Ares' deposits economic viability. | Deposits are either economically viable or Ares can obtain new sources of minerals for exploitation, trading or offtake agreements. | Lack of information to assess future mining strategy. |
| Proving Ares' deposits processing ability. | Ares' deposit compositions are favourable towards economically recovering minerals. | Uncertain geology could affect uniformity of mineralization. |
| Ares intends to acquire further properties to expand their mining and supply operations. | Properties demonstrating economic potential and have existing supportive infrastructure can be located and acquired. | Prospective acquisitions do not demonstrate sufficient potential and viability to justify acquisition. |
| Ares intends to enter into offtake agreements with several customers to ensure a customer base exists for Ares products. | Potential customers are willing to commit to mineral acquisition from Ares prior to exploration completion and exploitation. | Potential Ares customers may overstate the quantities they intend to purchase as they are currently predictive. |

---

---

| | |
|:---|:---|
| ![](ea029307701_ex4-5img2.jpg) | **Ares Strategic Mining Inc.<br>For the Six-month Period Ended 31 March 2026<br>** <br> ***Canadian Dollars*<br>Report to Shareholders and Management Discussion and Analysis**  |

---

---

| | | |
|:---|:---|:---|
| Ares intends to arrange further financing for the development of its current properties | The Company and its properties can prove economic potential and attract investment. | Ares is unable to attract investment and must investigate alternate strategies. |
| Ares intends to acquire operational projects to improve its cashflow | The Company will have the resources and/or means to acquire such projects. | Ares is unable to acquire the necessary investment and must investigate alternate strategies. |
| Ares intends to investigate and determine the most suitable technology and mining practices for its projects. | The Company has the expertise and connections to reasonably inform their decision-making processes. | Being unable to locate the most suitable technology and practices and running a sub-optimal operation. |
| Ares intends to use several exploration methods to gain better insight into its deposits for the purposes of mine design and exploitation optimisation. | The Company can source the best personnel to undertake the work necessary to obtain the detailed geological and geophysical information required. | Defining improper requirements for the contracted personnel. |
| Ares intends to purchase equipment tailored to the geology and composition of its material. | Bench testing and metallurgy return results able to provide the Company with information upon which the plant design and setup can be determined. | Lab work could be undertaken which provides results that provide insufficient information to reliably determine the best equipment. |
| Ares intends to complete mine installation works at its Utah project. | The resources within the company are sufficient to complete the required work, or the Company will be able to acquire these funds. | A poor market combined with overspend would cause funding shortfalls. |
| Ares intends to complete the construction of its lumps plant and later its flotation plant at its Utah site and start production. | The resources within the company are sufficient to complete the required work, or the Company wil be able to acquire these funds. | A poor market combined with overspend would cause funding shortfalls. |
| Ares intends to conduct industrial scale construction projects at its Delta processing site. | The Company resources, and the Company's ability to raise resources, will exceed the necessary construction costs. | A poor market combined with an unanticipated overspend would cause funding shortfalls. |

---

**Qualified Person**

The technical and scientific information in this document has been reviewed and approved by James Walker, P.Eng., a Qualified Person as defined by National Instrument 43-101 ("NI 43-101"). He is the Company's Chief Executive Officer, Director, and shareholder.

---

| | |
|:---|:---|
| ![](ea029307701_ex4-5img2.jpg) | **Ares Strategic Mining Inc.<br>For the Six-month Period Ended 31 March 2026<br>** <br> ***Canadian Dollars*<br>Report to Shareholders and Management Discussion and Analysis**  |

---

**Future Outlook**

Ares intends to advance into revenue generation and expand the capacity of the operation, while meeting MSHA standards at the mine site.

Ares intends to expand the mineworks which allow the Company to exploit the fluorspar resources identified through exploration.

Ares will develop its industrial site for an expanded processing operation and install revamped and greater infrastructure to support its enlarged operation.

Ares intends to partner with a multinational supplier of fluorspar to act as distributor for its product.

Ares intends to install a professional staff able to manage the mining operations at its Fluorspar mine project.

Ares will employ experienced mining and process engineers to act in concert with its management team, to verify and ensure that all steps taken to advance its projects are considered and objective, so the optimum outcome can be obtained.

Ares will solicit and contract the services of construction and processing specialists to construct industrial scale plant installation to commission two high capacity facilities able to process all excavated fluorspar mineralization removed from the Spor Mountain.

Ares intends to work with the U.S. Department of Defense to rebuild the country's national stockpiles of acidspar as part of the larger program to ensure the U.S. has long term reserves of certain critical minerals and products.

**Corporate Overview**

Ares Strategic Mining Inc., stock symbol "ARS", has been publicly traded on the Canadian Securities Exchange (CSE) since 22 October 2021. Ares is a junior mining Company whose principal business is developing mineral prospects towards active mining operations. Currently, the Company is focusing on progressing its fluorspar projects towards production and supplying metspar and acidspar to the markets.

Ares has at its disposal, geologists, geophysicists, mining engineers and market experts responsible for developing the project towards production. The Company's business is managed by specialist staff and experts with diverse experience across the entire mineral resource industry. The Company has made great progress developing brownfield properties towards production, including completing mineworks, purchasing industrial sites, building plants, and purchasing heavy industrial equipment.

**Significant Events and Transactions During the Period**

On 10 October 2025 Ares announced a non-brokered private placement offering of up to 22,222,222 units (each, a "Unit") at a price of $0.45 per Unit for gross proceeds of up to $10,000,000 (the "Offering").

On 21 October 2025, Ares announced that it has closed its previously announced offering of units, raising an aggregate amount of $10,499,850 under the LIFE Offering and Amended LIFE Offering.

On 3 November 2025, Ares announced the successful completion and activation of its secondary underground ventilation system at the Lost Sheep Fluorspar Mine. This achievement marks the final regulatory and operational milestone required to commence industrial-scale mining operations in full compliance with Mine Safety and Health Administration (MSHA) standards.

---

| | |
|:---|:---|
| ![](ea029307701_ex4-5img2.jpg) | **Ares Strategic Mining Inc.<br>For the Six-month Period Ended 31 March 2026<br>** <br> ***Canadian Dollars*<br>Report to Shareholders and Management Discussion and Analysis**  |

---

On 5 December 2025, Ares provided a comprehensive update on the construction and operational advancements across its Lost Sheep Fluorspar Project in Juab County, Utah. These developments mark critical progress in bringing North America's only permitted fluorspar mine into full-scale industrial production. Ares completed major milestones underground and above ground, advancing both mine readiness and plant infrastructure in tandem, which included:

● Secondary Ventilation Door Sealed: Enhances underground airflow and supports compliance with MSHA ventilation standards.

● Raise 1 Prepared for Mining: Equipped with a fully installed tugger and slusher system, enabling safe and effective ore movement to surface.

● Drill Stations Advanced: New drill stations developed in the declines to support upcoming mining headings and blasting activities.

● Waste Pad Upgraded: Facilitates efficient segregation and handling of ore and waste during mining operations.

On 20 January 2026 Ares was officially awarded a $168,938,267 contract by the U.S. Department of Defense (DoD) through the Defense Logistics Agency (DLA) – a significant initiative to help strengthen America's domestic manufacturing and supply base and support the rebuilding of U.S. strategic mineral stockpiles.

On 27 January 2026 Ares announced that, following its recent $168.9 million estimated award under the U.S. Department of Defense's (DoD) Indefinite Delivery / Indefinite Quantity (IDIQ) contract and a newly launched $10 million private placement, the Company is accelerating construction of its acidspar flotation plant in Utah.

**Exploration**

**Spor Mountain**

**1. Lost Sheep**

The Company holds a 100% interest in and rights to certain U.S. federal mining claims located at the north-east end of the Spor Mountain Mining District, in section 21, T.12S. 12W, and T.13S. 12W, SLBM of Juab County, western Utah, USA (the "Spor Mountain"). The Spor Mountain property consists of several mineral claim blocks including the Lost Sheep Fluoride Mine, and other unpatented claims. The Company acquired its initial interest through the Amalgamation (Note 6) on 18 February 2020. During the three months ended 30 September 2021, the Company acquired additional claims in the region through staking.

As part of the Amalgamation, the Company assumed an underlying property purchase agreement (the "Purchase Agreement") for certain unpatented claims comprising the Spor Mountain property, pursuant to which the Company would be required to make a payment of US$1,000,000 within 18 months from the commencement of production. During the year ended 30 September 2021, the amount of USD $1,000,000 was transferred to the underlying vendor, pursuant to which, the Company is deemed to have fulfilled its obligations under the Purchase Agreement, and the title to the unpatented claims are in the process of being transferred to the Company.

**2. Bell Hill**

The Company completed over 8,000m of geophysical IP surveys on the Bell Hill historic mine area, at the Spor Mountain in Utah, correlating geophysical anomalies with both known fluorspar mineralization, and identifying new anomalies with similar geophysical signatures to known existing fluorspar pipes.

---

| | |
|:---|:---|
| ![](ea029307701_ex4-5img2.jpg) | **Ares Strategic Mining Inc.<br>For the Six-month Period Ended 31 March 2026<br>** <br> ***Canadian Dollars*<br>Report to Shareholders and Management Discussion and Analysis**  |

---

The Company is currently the only permitted fluorspar mine in the United States. Fluorspar is an industrial mineral the US imports 100% from abroad. It is a vital component of US industry, used in the production of steel, aluminium, refrigeration units, cement, hydrofluoric acid, fluorine, electronics and touch screens, Teflon, and electric batteries. The US has been completely reliant on imports for 20 years, and this project represents an opportunity for the US to regain an entire lost industry, as well as become one of the few countries in the world which produce fluorspar. The Company has spent 2021 completing large scale drilling and engineering programs to design the mining and processing operation, which will produce fluorspar ready for US industry in the future. The Company has also worked closely with the Bureau of Land Management (BLM) and the Utah Division of Oil, Gas, and Mining (UDOGM), to update all its permits so production can begin as soon as the equipment and plant are delivered to site.

**Construction**

During the six-month period ended 31 March 2026 and subsequent to period-end, the Company continued to advance construction and installation activities at its Lost Sheep Fluorspar Project and Delta processing site in Utah. Construction in progress primarily relates to the Company's processing infrastructure, including the lumps plant, flotation plant, material handling systems, electrical and instrumentation systems, civil and structural works, mechanical installation, process piping, water management infrastructure, and temporary power systems. These construction activities are intended to support the Company's transition from mine development and ore stockpiling into integrated processing operations and production readiness.

Publicly announced milestones during the period and subsequent to period-end included the continued advancement of the lumps plant, commencement of mining operations and ore stockpiling at the Lost Sheep Mine, acceleration of the flotation plant construction program following the award of the U.S. Department of Defense / Defense Logistics Agency contract, and the completion of major plant infrastructure components, including the conveyor belt system and electrical Motor Control Center systems.

Electrical and instrumentation design for the lumps plant has been completed, and the PLC and related control programming have also been completed. In the field, cable trays have been installed and electrical cable pulling is underway, with the electrical cable installation approximately 30% complete. The electrical building installation has been completed, and the electrical switchgear has been moved into position. Electrical tie-ins are expected to commence in early June 2026. The Company's electrical engineer is also reviewing the flotation plant so that electrical and instrumentation design for that facility can commence.

Civil and structural works have also progressed. Fabrication of the conveyor frames has been completed, all conveyor frames have been installed, and the Company has commenced installation of the conveyor systems. Sandblasting and painting activities were temporarily placed on hold while construction of the conveyor footings was ongoing.

Mechanical and piping work is advancing alongside the remaining civil and electrical works.

The Company has also progressed water management infrastructure for the flotation plant. Drawings for the flotation pond were completed and issued to the Department of Water Quality. The Company has received written confirmation from the Department of Water Quality engineering department that the drawings have been approved and the permit has been issued. Construction of the pond has been awarded to Dutson Supply. The outstanding "use of" permit remains tied to groundwater testing to confirm that underground water will not be negatively affected. Water monitoring wells have been drilled and groundwater samples have been collected for testing in support of the usage permit.

---

| | |
|:---|:---|
| ![](ea029307701_ex4-5img2.jpg) | **Ares Strategic Mining Inc.<br>For the Six-month Period Ended 31 March 2026<br>** <br> ***Canadian Dollars*<br>Report to Shareholders and Management Discussion and Analysis**  |

---

**Events Subsequent to 31 March 2026**

The Company entered into a Settlement Agreement and Release dated 22 April 2026 with Hinkinite Resources LLC and Bryson Hinkins to resolve a dispute relating to overlapping unpatented mining claims in Juab County, Utah. Pursuant to the agreement, Hinkinite agreed to abandon and transfer certain mining claims to the Company in exchange for aggregate consideration consisting of US$50,000 cash, approximately US$50,000 in common shares of the Company (subject to regulatory approval), and reimbursement of US$27,878 in verified staking costs. The related litigation was voluntarily dismissed with prejudice on 28 April 2026.

**Results of Operations**

The comprehensive loss reported during the period ended 31, March 2026 was ($2,765,947) compared to loss of ($1,752,105) in the prior comparative period. The main fluctuations in costs are as follows:

---

| | | |
|:---|:---|:---|
| **Accretion and interest**<br> (rounded to the nearest '000) | **6 months ended<br> 31 March 2026** | 6 months ended<br> 31 March 2025 |
|  | $**286000** | $1297000 |
| &nbsp;&nbsp;&nbsp;Variance | $**(1011000)** |  |

---

During the previous year, the Company settled all of the outstanding convertible debt thus recognized the accretion and interest expense on convertible debt only in the previous comparative period. Therefore, less accretion and interest recognized in the current period.

---

| | | |
|:---|:---|:---|
| **Professional fees**<br> (rounded to the nearest '000) | **6 months ended**<br> **31 March 2026** | 6 months ended <br>31 March 2025 |
|  | $**1100000** | $409000 |
| &nbsp;&nbsp;&nbsp;Variance | $**691000** |  |

---

During the current period, the Company engaged advisors for a potential listing in the USA, incurring advisory fees. No such major corporate advisory fees were incurred in the prior comparative period, resulting in a significant increase in professional fees for the current period.

---

| | | |
|:---|:---|:---|
| **Office and marketing**<br> (rounded to the nearest '000) | **6 months ended<br> 31 March 2026** | 6 months ended<br> 31 March 2025 |
|  | $**1096000** | $77000 |
| &nbsp;&nbsp;&nbsp;Variance | $**1019000** |  |

---

The increase is due marketing contracts with reputable marketing companies and services obtained during the period in further developments of the Company's financing options.

---

| | | |
|:---|:---|:---|
| **Stock-based compensation**<br> (rounded to the nearest '000) | **6 months ended**<br> **31 March 2026** | 6 months ended <br> 31 March 2025 |
|  | $**1217000** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Variance | $**1217000** |  |

---

During the six months ended 31 March 2026, the Company recognized stock-based compensation resulting from new options granted during the period.

---

| | |
|:---|:---|
| ![](ea029307701_ex4-5img2.jpg) | **Ares Strategic Mining Inc.<br>For the Six-month Period Ended 31 March 2026<br>** <br> ***Canadian Dollars*<br>Report to Shareholders and Management Discussion and Analysis**  |

---

---

| | | |
|:---|:---|:---|
| **Unrealized gain on share proceeds receivable**<br> (rounded to the nearest '000) | **6 months ended**<br> **31 March 2026** | 6 months ended <br> 31 March 2025 |
|  | $**1311000** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Variance | $**1311000** |  |

---

Due to the share price increasing during the period ended 31 March 2026, all tranches have been revalued with the gain reflected on the statement of gain/(loss) and comprehensive gain/(loss).

**Summary of Quarterly Results**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Three months ended | **Mar-26<br> $** | Dec-25<br> $ | Sep-25<br> $ | Jun-25<br> $ | Mar-25<br> $ | Dec-24<br> $ | Sep-24<br> $ | Jun-24<br> $ |
| Total revenue | **-** |  |  |  |  |  |  |  |
| Net (loss) for the period | **(3271370)** | (372392) | (1865753) | (294399) | (802644) | (678315) | (616062) | (1226083) |
| Comprehensive (loss) for the period | **(3325590)** | (386289) | (1820589) | (71609) | (911407) | (849215) | (579746) | (1244753) |
| Profit (loss) per share | **(0.0128)** | (0.0016) | (0.02) | (0.01) | (0.00) | (0.00) | (0.02) | (0.01) |
| Total assets | **73895649** | 64629389 | 53871358 | 55192985 | 43808586 | 38874212 | 36455378 | 3406249 |
| Working capital surplus (deficiency) | **4302000** | 2741000 | (826000) | 2628000 | (12047321) | (12053000) | (9448000) | 5313000 |

---

**Outstanding Shares**

As at 31 March 2026, the Company had 262,235,849 common shares issued and outstanding; the fully diluted amount includes 6,300,000 options and 47,900,343 warrants outstanding. As at the date of this report, 6,300,000 options and 44,301,619 warrants outstanding.

**Financial Position and Liquidity**

As at 31 March 2026, the Company's financial instruments consist of cash, restricted cash, financial assets, accounts payable and short-term loans. The Company has no speculative financial instruments, derivatives, forward contracts or hedges.

The following discussion relates to the six months ended 31 March 2026 and compares that to the six months ended 30 September 2025:

As at 31 March 2026, the Company had a working capital of $4,302,000 compared to a working capital deficit of $(826,000) as at 30 September 2025.

Cash used in operating activities during six months ended 31 March 2026 totalled $766,982 (31 March 2025: cash provided by $1,330,261).

Cash used in investing activities during the six months ended 31 March 2026 totalled $15,020,412 (31 March 2025: $3,221,685).

Cash raised in financing activities during the six months ended 31 March 2026 totalled $21,092,193, (31 March 2025: $3,011,763).

---

| | |
|:---|:---|
| ![](ea029307701_ex4-5img2.jpg) | **Ares Strategic Mining Inc.<br>For the Six-month Period Ended 31 March 2026<br>** <br> ***Canadian Dollars*<br>Report to Shareholders and Management Discussion and Analysis**  |

---

**Exploration and evaluation assets**

---

| | | | |
|:---|:---|:---|:---|
| **Exploration and Evaluation Assets** | **Spor Mountain** | **Ontario Properties** | **Total** |
| **Balance as at 1 October 2024** | $8362147 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4 | $8362151 |
| Drilling | 147860 |  | 147860 |
| Geological consulting | 251449 |  | 251449 |
| Administration and camp | 54369 |  | 54369 |
| Staking and claiming | 3518 |  | 3518 |
| Adjustments on currency translation | 3120 | - | 3120 |
| **Balance as at 30 September 2025** | $**8822464** | $**4** | $**8822467** |
| **Geological consulting** | **107991** | **-** | **107991** |
| **Staking and claiming** | **132728** |  | **132728** |
| **Drilling** | **2507** | **-** | **2507** |
| **Administration and camp** | **40668** | **-** | **40668** |
| **Adjustments on currency translation** | **(30287)** | **-** | **(30287)** |
| **Balance as at 31 March 2026** | $**9074956** | $**4** | $**9076021** |

---

**Financial Instruments and Risk Management**

&nbsp;&nbsp;&nbsp;&nbsp;**a)** **Financial instrument classification and measurement** 

Financial instruments of the Company carried on the Consolidated Statement of Financial Position are carried at amortized cost. There are no significant differences between the carrying value of financial instruments and their estimated fair values as at 31 March 2026. There have been no changes in levels during the year.

The Company classifies the fair value of these transactions according to the following hierarchy:

● Level 1 – quoted prices in active markets for identical financial instruments.

● Level 2 – quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

● Level 3 – valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

&nbsp;&nbsp;&nbsp;&nbsp;**b)** **Fair values of financial assets and liabilities** 

The Company's financial instruments include cash, accounts payable and short-term loans. As at 31 March 2026, the carrying value of cash is at fair value. Accounts payable and short-term loans approximate their fair value due to their short-term nature.

&nbsp;&nbsp;&nbsp;&nbsp;**c)** **Market risk** 

Market risk is the risk that changes in market prices will affect the Company's earnings or the value of its financial instruments. Market risk is comprised of commodity price risk and interest rate risk. The objective of market risk management is to manage and control exposures within acceptable limits, while maximizing returns. The Company is not exposed to significant market risk.

---

| | |
|:---|:---|
| ![](ea029307701_ex4-5img2.jpg) | **Ares Strategic Mining Inc.<br>For the Six-month Period Ended 31 March 2026<br>** <br> ***Canadian Dollars*<br>Report to Shareholders and Management Discussion and Analysis**  |

---

&nbsp;&nbsp;&nbsp;&nbsp;**d)** **Credit risk** 

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Company's primary exposure to credit risk is on its bank accounts. The Company's bank accounts are held with major banks in Canada, accordingly the Company is not exposed to significant credit risk.

&nbsp;&nbsp;&nbsp;&nbsp;**e)** **Interest rate risk** 

Interest rate risk is the risk of losses that arise as a result of changes in contracted interest rates. The Company is not exposed to significant interest rate risk.

&nbsp;&nbsp;&nbsp;&nbsp;**f)** **Currency risk** 

Currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company is exposed to foreign currency risk on its restricted cash and USDA and PAB loans payable balances that are denominated in other than the functional currencies. As at 31 March 2026, the Company held currency totalling the following:

---

| | | |
|:---|:---|:---|
| **Currency (Rounded)** | **31 March<br> 2026** | 30 September<br> 2025 |
| Canadian (Dollars) | $**12045000** | 183000 |
| US (Dollars) | $**956000** | 5580000 |

---

&nbsp;&nbsp;&nbsp;&nbsp;**g)** **Liquidity risk** 

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they come due. The Company controls liquidity risk by ensuring that it has sufficient cash resources to pay for its financial obligations. As at 31 March 2026, the Company had a cash balance of $12,079,856 to settle current liabilities of $11,803,657 that are due within one year.

**Capital Resources**

Ares has no recent history of profitable operations. Therefore, it is subject to many risks common to comparable companies, including under-capitalization, cash shortages and limitations with respect to personnel, financial and other resources as well as a lack of adequate revenues.

It will be necessary for Ares to arrange for additional financing to meet its on-going exploration and overhead requirements.

Management believes it will be able to raise equity capital as required in the long term, but recognizes the risks attached thereto. Although Ares successfully completed financing during the three months ended 30 September 2025, there can be no assurance that it will be able to obtain adequate financing in the future or that the terms of such financing may be favourable.

**Capital Management**

The Company's capital consists of cash and shareholders' equity. The Company's objective when managing capital is to maintain adequate levels of funding to support the development of its businesses and maintain the necessary corporate and administrative functions to facilitate these activities. This is done primarily through equity financing, selling assets, and incurring debt. Future financings are dependent on market conditions and there can be no assurance the Company will be able to raise funds in the future. The Company invests all capital that is surplus to its immediate operational needs in short-term, highly liquid, high-grade financial instruments. There were no changes to the Company's approach to capital management during the year. The Company is not subject to externally imposed capital requirements. The Company does not currently have adequate sources of capital to complete its exploration plan, current obligations and ultimately the development of its business, and will need to raise adequate capital by obtaining equity financing, selling assets and incurring debt. The Company may raise additional debt or equity financing in the near future to meet its current obligations.

---

| | |
|:---|:---|
| ![](ea029307701_ex4-5img2.jpg) | **Ares Strategic Mining Inc.<br>For the Six-month Period Ended 31 March 2026<br>** <br> ***Canadian Dollars*<br>Report to Shareholders and Management Discussion and Analysis**  |

---

**Off-Balance Sheet Arrangements**

The Company has no off-balance sheet arrangements as at 31 March 2026 and as at the date hereof.

**Related Party Transactions**

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

The Company compensates certain of its key management personnel to operate its business in the normal course. Key management includes the Company's executive officers and members of its Board of Directors. Transactions and balances with key management personnel and related parties not disclosed elsewhere in the Financial Statements are as follows:

**Related Party Disclosure**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year<sup>(i)</sup>** | **Remuneration<br> or fees<sup>(ii)</sup>** | **Share-based<br> payments** | **Amounts<br> Payable and<br> Accrued Liabilities** |
| &nbsp;&nbsp;&nbsp;CEO and Director – Management fees | **2026** | $**72000** | $**-** | $**994102** |
|  | 2025 | $72000 | $- | $719595 |
| &nbsp;&nbsp;&nbsp;CFO – Management fees | **2026** | $**24000** | $**-** | $**-** |
|  | 2025 | $24000 | $- | $- |
| &nbsp;&nbsp;&nbsp;CFO – Professional fees | **2026** | $**38710** | $**17500** | $**12527** |
|  | 2025 | $50755 | $22975 | $54676 |
| &nbsp;&nbsp;&nbsp;Directors – Director fees | **2026** | $— | $**-** | $**7150** |
|  | 2025 | $750 | $- | $123214 |
| &nbsp;&nbsp;&nbsp;Directors – Consulting fees | **2026** | $**26669** | $**-** | $**-** |
|  | 2025 | $21000 | $- | $126177 |
| &nbsp;&nbsp;&nbsp;**Total** | **2026** | $**161379** | $**17500** | $**1040548** |
|  | 2025 | $168505 | $22975 | $1023662 |

---

(i) For
 the six months ended 31, March 2026 and 2025.

(ii) Amounts
 disclosed were paid or accrued to the related party.

These transactions were in the normal course of operations, which is the amount of consideration established and agreed to by the related parties.

---

| | |
|:---|:---|
| ![](ea029307701_ex4-5img2.jpg) | **Ares Strategic Mining Inc.<br>For the Six-month Period Ended 31 March 2026<br>** <br> ***Canadian Dollars*<br>Report to Shareholders and Management Discussion and Analysis**  |

---

**Management**

Ares is dependent upon the personal efforts and commitments of its existing management. To the extent that management's services would be unavailable for any reason, a disruption to the operations of Ares could result, and other persons would be required to manage and operate the Company.

**Risk Factors**

Companies operating in the mining industry face many and varied kinds of risks. While risk management cannot eliminate the impact of all potential risks, the Company strives to manage such risks to the extent possible and practical. Following are the risk factors most applicable to the Company:

Exploring and developing mineral resource projects bear a high potential for all manner of risks. Additionally, few exploration projects successfully achieve development due to factors that cannot be predicted or foreseen. Moreover, even one such factor may result in the economic viability of a project being detrimentally impacted such that it is neither feasible nor practical to proceed. The Company closely monitors its activities and those factors that could impact them, and employs experienced consulting, engineering, insurance and legal advisors to assist in its risk management reviews.

Although the Company has taken steps to verify the title to mineral properties in which it has an interest, in accordance with industry standards for the current stage of exploration of such properties, these procedures do not guarantee the Company's title. Property title may be subject to unregistered prior agreements or transfers and title may be affected by undetected defects.

Companies typically rely on comprehensive feasibility reports on mineral reserve estimates to reduce the risks and uncertainties associated with a production decision. The Company has not completed a feasibility study on, nor has the Company completed a mineral reserve or resource estimate at the Lost Sheep Mine and as such the financial and technical viability of the project is at higher risk than if this work had been completed. Based on historical engineering work, geological reports, historical production data and current engineering work completed or in the process by Ares, the Company intends to move forward with the development of this asset.

Ares is focusing on progressing its fluorspar projects towards exploitation, production, and supplying metspar and acidspar to the markets. The value and price of the Company's common shares, the Company's financial results, and exploration, development and mining activities of the Company, if any, may be significantly adversely affected by declines in mineral prices. Mineral prices fluctuate widely and are affected by numerous factors beyond the Company's control such as interest rates, exchange rates, inflation or deflation, global and regional supply and demand, and the political and economic conditions of mineral producing countries throughout the world.

On 11 March 2020, the World Health Organization declared Covid-19, the disease caused by the novel coronavirus, a global pandemic, which has had a significant impact on businesses through the restrictions put in place by the Canadian, provincial and municipal governments regarding travel, business operations and isolation/quarantine orders. It is not possible for the Company to predict the duration or magnitude of the adverse results of the outbreak and its effects on the Company's business or ability to raise funds. There is the possibility that future developments from the Covid-19 pandemic could negatively impact operations which could have a material adverse impact on our cash flows and financial position as well as affect judgements, estimates and assumptions made by management. The Company continues to monitor the situation closely to plan and adjust accordingly.

---

| | |
|:---|:---|
| ![](ea029307701_ex4-5img2.jpg) | **Ares Strategic Mining Inc.<br>For the Six-month Period Ended 31 March 2026<br>** <br> ***Canadian Dollars*<br>Report to Shareholders and Management Discussion and Analysis**  |

---

**Critical Accounting Estimates**

Significant assumptions about the future that management has made and other sources of estimation uncertainty at the financial position reporting date that could result in a material adjustment to the carrying amounts of assets and liabilities relate to but are not limited to the following:

● The recoverability of exploration and evaluation assets presented on the consolidated statement of financial position;

● The estimated useful lives of property and equipment which are included in the consolidated statement of financial position and the related depreciation;

● The inputs used in accounting for share-based payment transactions in the consolidated statements of comprehensive income and loss;

● Management's determination that there is no material restoration, rehabilitation, and environmental exposure, based on the facts and circumstances that existed during the year.

**Approval**

The Board of Directors of the Company has approved the disclosure contained in the Management Discussion and Analysis.

**A Cautionary Tale**

*This document contains "forward-looking information" which may include, but is not limited to, statements with respect to the future financial or operating performance of the Corporation, its subsidiaries and its projects, the future supply, demand, inventory, production and price of minerals, the estimation of reserves and resources, the realization of reserve estimates, the timing and amount of estimated future production, costs of production, capital, operating and exploration expenditures, costs and timing of the development of new deposits, costs and timing of future exploration, requirements for additional capital, government regulation operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters.*

 

*Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; actual results of reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of resources; possible variations of ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the resource industry; political instability, insurrection or war; delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.*

Respectfully submitted on behalf of the Board of Directors,

**<u>"James Walker"</u>**

**<u> </u>**

James Walker, CEO

## Exhibit 4.6

**Exhibit 4.6**

**FORM 51 – 102F3**

**MATERIAL CHANGE REPORT**

**UNDER NATIONAL INSTRUMENT 51-102**

---

| | |
|:---|:---|
| **ITEM 1** | **Name and Address of Company** |

---

Ares Strategic Mining Inc.

1001 – 409 Granville Street

Vancouver, British Columbia, V6C 1T2

(the "**Company**")

---

| | |
|:---|:---|
| **ITEM 2** | **Date of Material Change** |

---

May 22, 2026

---

| | |
|:---|:---|
| **ITEM 3** | **News Release** |

---

The news release dated May 19, 2026 was disseminated via TheNewswire.ca Inc

---

| | |
|:---|:---|
| **ITEM 4** | **Summary of Material Change** |

---

The Company announced that, further to its news release dated May 19, 2026, Lorenzo Esteva was appointed as Director while Paul Sarjeant and Raul Sanabria resigned as Directors

---

| | |
|:---|:---|
| **ITEM 5** | **Full Description of Material Change** |

---

 

*5.1* *Full Description of Material Change* 

The material changes are fully described in Item 4 above and in the News Release filed on SEDAR at www.sedar.com.

*5.2* *Disclosure for Restructuring Transactions* 

Not Applicable.

---

| | |
|:---|:---|
| **ITEM 6** | **Reliance on subsection 7.1(2) of National Instrument 51-102** |

---

Not Applicable.

---

| | |
|:---|:---|
| **ITEM 7** | **Omitted Information** |

---

Not Applicable.

---

| | |
|:---|:---|
| **ITEM 8** | **Executive Officer** |

---

James Walker

President and Chief Executive Officer

(604) 345-1576 or at jwalker@aresmining.com

---

| | |
|:---|:---|
| **ITEM 9** | **Date of Report** |

---

May 22, 2026

## Exhibit 4.7

**Exhibit 4.7**

**FORM 51 – 102F3**

**MATERIAL CHANGE REPORT**

**UNDER NATIONAL INSTRUMENT 51-102**

ITEM 1 Name and Address of Company

Ares Strategic Mining Inc.

1001 – 409 Granville Street

Vancouver, British Columbia, V6C 1T2

(the "**Company**")

ITEM 2 Date of Material Change

February 24, 2026

ITEM 3 News Release

The news release dated February 18, 2026 was disseminated via TheNewswire.ca Inc

ITEM 4 Summary of Material Change

The Company announced that, further to its news release dated February 18, 2026, it has issued 381,854 common shares (each a "Share") at a deemed price of $0.485 per Share settling $185,199.23 in debt owing to various arm's length and non-arm's length parties (the "Share Settlement") in connection with past services rendered and in accrued but unpaid management fees to the Company. All securities issued pursuant to the Share Settlement are subject to a mandatory four months hold period.

ITEM 5 Full Description of Material Change

 

*5.1* *Full Description of Material Change* 

The material changes are fully described in Item 4 above and in the News Release filed on SEDAR at www.sedar.com.

 

*5.2* *Disclosure for Restructuring Transactions* 

Not Applicable.

ITEM 6 Reliance on subsection 7.1(2) of National Instrument 51-102

Not Applicable.

ITEM 7 Omitted Information

Not Applicable.

ITEM 8 Executive Officer

James Walker

President and Chief Executive Officer

(604) 345-1576 or at jwalker@aresmining.com

ITEM 9 Date of Report

February 24, 2026

## Exhibit 4.8

**Exhibit 4.8**

**FORM 51 – 102F3**

**MATERIAL CHANGE REPORT**

ITEM 1 Name and Address of Company

Ares Strategic Mining Inc. (the "**Company**")

1001 – 409 Granville Street

Vancouver, British Columbia V6C 1T2

ITEM 2 Date of Material Change

February 3, 2026

ITEM 3 News Release

The news release was disseminated on February 4, 2026 and subsequently filed on SEDAR+.

ITEM 4 Summary of Material Change

The Company announced that it has closed a fully subscribed LIFE offering of 16,666,666 units at a price of $0.60 per unit for aggregate gross proceeds of $9,999,999.60.

ITEM 5 Full Description of Material Change

 

*5.1* *Full Description of Material Change* 

The Company announced that it has closed its previously announced offering of units (each, a "**Unit**") by issuing 16,666,666 Units at a price of $0.60 per Unit, for aggregate gross proceeds of $9,999,999.60 pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 – Prospectus Exemptions (the "**LIFE Offering**").

Each Unit consists of one (1) common share in the capital of the Company (each, a "**Common Share**") and one-half (1/2) of one non-transferable Common Share purchase warrant (each whole warrant, a "**Warrant**"). Each Warrant is exercisable into one (1) Common Share (each, a "Warrant Share") at a price of $0.75 per Warrant Share for a period of two (2) years following the date of issuance.

In connection with the closing of the LIFE Offering, an aggregate of $699,999.97 was paid in cash and a total of 1,166,667 finder's warrants (each, a "**Finder's Warrant**") were issued to Ventum Financial Corp. as finder's fees. Each Finder's Warrant entitles the holder thereof to acquire one (1) common share in the capital of the Company (each, a "**Finder's Warrant Share**") at a price of $0.75 per Finder's Warrant Share for a period of two (2) years following the closing date of the LIFE Offering. The Finder's Warrants are subject to a 4-month hold period from the date of issuance.

None of the securities issued in connection with the LIFE Offering will be registered under the United States Securities Act of 1933, as amended (the "**1933 Act**"), and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act. This news release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation, or sale would be unlawful.

*5.2* *Disclosure for Restructuring Transactions* 

Not Applicable.

---

| | |
|:---|:---|
| **ITEM 6** | **Reliance on subsection 7.1(2) of National Instrument 51-102** |

---

Not Applicable.

---

| | |
|:---|:---|
| **ITEM 7** | **Omitted Information** |

---

Not Applicable.

---

| | |
|:---|:---|
| **ITEM 8** | **Executive Officer** |

---

James Walker

President and Chief Executive Officer

Telephone: (604) 345-1576

Email: james@aresmining.com

ITEM 9 Date of Report

February 10, 2026

## Exhibit 4.9

**Exhibit 4.9**

**FORM 51 – 102F3**

**MATERIAL CHANGE REPORT**

**UNDER NATIONAL INSTRUMENT 51-102**

ITEM 1 Name and Address of Company

Ares Strategic Mining Inc.

1001 – 409 Granville Street

Vancouver, British Columbia, V6C 1T2

(the "**Company**")

ITEM 2 Date of Material Change

November 10, 2025

ITEM 3 News Release

The news release dated November 3, 2025 was disseminated via TheNewswire.ca Inc

ITEM 4 Summary of Material Change

The Company announced that, further to its news release dated November 3, 2025, it has issued 150,933 common shares (each a "Share") at a deemed price of $0.43 per Share settling $64,901.13 in debt owing to various arm's length and non-arm's length parties (the "Share Settlement") in connection with past services rendered and in accrued but unpaid management fees to the Company. All securities issued pursuant to the Share Settlement are subject to a mandatory four months hold period.

ITEM 5 Full Description of Material Change

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*5.1* *Full Description of Material Change* 

The material changes are fully described in Item 4 above and in the News Release filed on SEDAR at www.sedar.com.

 

*5.2* *Disclosure for Restructuring Transactions* 

Not Applicable.

ITEM 6 Reliance on subsection 7.1(2) of National Instrument 51-102

Not Applicable.

ITEM 7 Omitted Information

Not Applicable.

ITEM 8 Executive Officer

James Walker

President and Chief Executive Officer

(604) 345-1576 or at jwalker@aresmining.com

ITEM 9 Date of Report

November 10, 2025

## Exhibit 4.10

**Exhibit 4.10**

**FORM 51 – 102F3**

**MATERIAL CHANGE REPORT**

ITEM 1 Name and Address of Company

Ares Strategic Mining Inc. (the "**Company**")

1001 – 409 Granville Street

Vancouver, British Columbia V6C 1T2

ITEM 2 Date of Material Change

October 21, 2025

ITEM 3 News Release

The news release was disseminated through Newswire on October 21, 2025 and subsequently filed on SEDAR+.

ITEM 4 Summary of Material Change

The Company announced that it has closed the second and final tranche of its previously announced offering of units (each, a "**Unit**") by issuing 12,221,889 Units at a price of $0.45 per Unit, for aggregate gross proceeds of $5,499,850.05 (the "**Second Tranche**").

---

| | |
|:---|:---|
| **ITEM 5** | **Full Description of Material Change** |

---

 

*5.1* *Full Description of Material Change* 

 

The Company announced that it has closed the Second Tranche of its previously announced offering of Units by issuing 12,221,889 Units at a price of $0.45 per Unit, for aggregate gross proceeds of

$5,499,850.05.

On October 10, 2025, the Company announced a non-brokered private placement offering of Units at a price of $0.45 per Unit pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 – *Prospectus Exemptions* (the "**LIFE Offering**"). On October 17, 2025, in connection with the LIFE Offering, the Company filed an amended and restated offering document to amend the terms of the LIFE Offering and offer up to 12,222,220 Units at $0.45 per Unit for gross proceeds of up to $5,499,999 (the "**Amended LIFE Offering**"). To date, the Company has raised an aggregate amount of $10,499,850.45 under the LIFE Offering and Amended LIFE Offering.

Each Unit shall consist of one (1) common share in the capital of the Company (each, a "**Common Share**") and one-half (1/2) of one non-transferable Common Share purchase warrant (each whole warrant, a "**Warrant**"). Each Warrant will be exercisable into one (1) Common Share (each, a "**Warrant Share**") at a price of $0.55 per Warrant Share for a period of two (2) years following the date of issuance.

In connection with the closing of the Second Tranche, an aggregate of $267,965.98 was paid in cash and a total of 595,480 finder's warrants (each, a "**Finder's Warrant**") were issued as finder's fees to arm's length parties. Each Finder's Warrant entitles the holder thereof to acquire one (1) common share in the capital of the Company (a "**Finder's Warrant Share**") at a price of $0.55 per Finder's Warrant Share for a period of two (2) years following the closing date of the Second Tranche. The Finder's Warrants are subject to a 4-month hold period from the date of issuance.

The Company also corrected its news release dated October 17, 2025 which announced the closing of the first tranche (the "**First Tranche**") of the LIFE Offering (the "**Initial News Release**"). The Initial News Release incorrectly states that each Finder's Warrant issued in connection with the First Tranche (each, a "**First Tranche Finder's Warrant**") is exercisable into one Finder's Warrant Share at $0.45 per Finder's Warrant Share. The correct exercise price of each First Tranche Finder's Warrant is $0.55 per Finder's Warrant Share.

Concurrently with closing the Second Tranche, the Company entered into certain hedging arrangements with Sorbie Bornholm LP ("**Sorbie**") governed by an ISDA Master Agreement dated August 23, 2024 and a sharing agreement dated October 20, 2025 (the "**Sharing Agreement**"). Pursuant to the terms of the Sharing Agreement, the gross proceeds payable by Sorbie for Units pursuant to the Amended LIFE Offering (being $1 million) (the "**Posted Support"**) were used to acquire UK government bonds as credit support to secure the Company's maximum potential exposure under the Sharing Agreement, with Sorbie retaining control and direction of such proceeds (including both the economic benefit and the risk resulting from fluctuations in the bond pricing and foreign exchange) until they are released back to the Company in accordance with the terms of the Sharing Agreement.

The hedging transactions governed by the Sharing Agreement will be determined and payable in 24 monthly settlement tranches based on the volume weighted average price of the Common Shares for the 20 trading days prior to each monthly settlement date measured against a benchmark price of $0.63 (the "**Benchmark Price**"). On each such settlement date, Sorbie will release a portion of the Posted Support determined in reference to such volume weighted average ($41,667 per month). If the measured Common Share price is equal to the Benchmark Price for each of the 24 monthly settlement tranches, the Company will receive cash payments totaling $1 million. If the measured Common Share price exceeds the Benchmark Price, the Company will receive more than 100% of the settlement payable that month on a pro rata basis. Similarly, if the measured Common Share price is below the Benchmark Price, the Issuer will receive less than 100% of the settlement payable that month on a pro rata basis, with the result that if the measured Common Share price is below the Benchmark Price for a period of time, the Issuer will receive less than $1 million. To date, Ares has received approximately 12% extra cash under the two previous and ongoing Sharing Agreements with Sorbie, without issuing any additional shares.

None of the securities issued in connection with the Amended LIFE Offering will be registered under the United States Securities Act of 1933, as amended (the "**1933 Act**"), and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act. This news release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation, or sale would be unlawful.

 

*5.2* *Disclosure for Restructuring Transactions* 

Not Applicable.

ITEM 6 Reliance on subsection 7.1(2) of National Instrument 51-102

Not Applicable.

ITEM 7 Omitted Information

Not Applicable.

---

| | |
|:---|:---|
| **ITEM 8** | **Executive Officer** |

---

James Walker

President and Chief Executive Officer

(604) 345-1576 or at james@aresmining.com

ITEM 9 Date of Report

October 23, 2025

## Exhibit 4.11

**Exhibit 4.11**

**FORM 51 – 102F3**

**MATERIAL CHANGE REPORT**

ITEM 1 Name and Address of Company

Ares Strategic Mining Inc. (the "**Company**")

1001 – 409 Granville Street

Vancouver, British Columbia V6C 1T2

ITEM 2 Date of Material Change

October 16, 2025 and October 17, 2025

ITEM 3 News Release

The news release was disseminated through Newswire on October 17, 2025 and subsequently filed on SEDAR+.

ITEM 4 Summary of Material Change

On October 16, 2025, the Company closed the first tranche of its previously announced offering of units (each, a "**Unit**") by issuing 11,111,112 Units at a price of $0.45 per Unit, for aggregate gross proceeds of $5,000,000.40 (the "**First Tranche**") pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 – Prospectus Exemptions (the "**Initial LIFE Offering**").

On October 17, 2025, the Company filed an amended and restated offering document (the "**Amended Offering Documen**t") in connection with the Initial LIFE Offering (the "**Amended LIFE Offering**") to increase the offering by up to 1,111,110, for a total offering under the Amended Offering Document of up to 12,222,220 Units at $0.45 per Unit for gross proceeds to be raised pursuant to the Amended LIFE Offering of up to $5,499,999.

ITEM 5 Full Description of Material Change

 

*5.1* *Full Description of Material Change* 

 

On October 16, 2025, the Company closed the First Tranche of the Initial LIFE Offering of Units by issuing 11,111,112 Units at a price of $0.45 per Unit, for aggregate gross proceeds of $5,000,000.40 pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 – *Prospectus Exemptions*.

 

Each Unit consists of one (1) common share in the capital of the Company (each, a "**Common Share**") and one-half (1/2) of one non-transferable Common Share purchase warrant (each whole warrant, a "**Warrant**"). Each Warrant will be exercisable into one (1) Common Share (each, a "**Warrant Share**") at a price of $0.55 per Warrant Share for a period of two (2) years following the date of issuance.

In connection with the closing of the First Tranche, an aggregate of $300,000.02 was paid in cash and a total of 666,667 finder's warrants (each, a "**Finder's Warrant**") were issued to Ventum Financial Corp. as finder's fees. Each Finder's Warrant entitles the holder thereof to acquire one (1) common share in the capital of the Company (a "**Finder's Warrant Share**") at a price of $0.45 per Finder's Warrant Share for a period of two (2) years following the closing date of the First Tranche. The Finder's Warrants are subject to a 4-month hold period from the date of issuance.

**<u>Amended and Restated Offering Document</u>**

On October 17, 2025 the Company filed the Amended Offering Document in connection with the Initial LIFE Offering. The initial offering document dated October 10, 2025 was amended to increase the offering by up to 1,111,110, for a total offering under the Amended Offering Document of up to 12,222,220 Units at $0.45 per Unit for gross proceeds to be raised pursuant to the Amended LIFE Offering of up to $5,499,999. Upon filing of the Amended Offering Document, the Amended LIFE Offering was extended to the date that is 45 days from October 17, 2025. The Amended Offering Document can be accessed under the Company's profile at www.sedarplus.ca and on the Company's website at: www.aresmining.com. Prospective investors should read this Amended Offering Document before making an investment decision.

Upon closing of any tranches of the Amended LIFE Offering, the Company may pay finders finder's fees under the Amended LIFE Offering as permitted by the policies of the Canadian Securities Exchange and applicable securities laws.

For additional details relating to the Initial LIFE Offering, please refer to the Company's news release dated October 10, 2025, which can be accessed under the Company's profile on SEDAR+. Completion of any tranches under the Amended LIFE Offering remain subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals.

As disclosed in the Amended Offering Document, the Company intends to use the net proceeds from the Amended LIFE Offering to pay for the development of the Company's fluorspar manufacturing facility currently under construction in Delta, Utah, for general and corporate working capital purposes, and for repayment of outstanding debts.

None of the securities issued in connection with the LIFE Offering will be registered under the United States Securities Act of 1933, as amended (the "**1933 Act**"), and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act. This news release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation, or sale would be unlawful.

*5.2* *Disclosure for Restructuring Transactions* 

Not Applicable.

ITEM 6 Reliance on subsection 7.1(2) of National Instrument 51-102

Not Applicable.

ITEM 7 Omitted Information

Not Applicable.

---

| | |
|:---|:---|
| **ITEM 8** | **Executive Officer** |

---

James Walker

President and Chief Executive Officer

(604) 345-1576 or at james@aresmining.com

ITEM 9 Date of Report

October 23, 2025

## Exhibit 4.12

**Exhibit 4.12**

**FORM 51 – 102F3**

**MATERIAL CHANGE REPORT**

ITEM 1 Name and Address of Company

Ares Strategic Mining Inc. (the "**Company**")

1001 – 409 Granville Street

Vancouver, British Columbia V6C 1T2

ITEM 2 Date of Material Change

October 10, 2025

ITEM 3 News Release

The news release dated was disseminated on October 10, 2025 and subsequently filed on SEDAR+.

ITEM 4 Summary of Material Change

The Company announced a LIFE private placement offering to raise up to $10,000,000.

ITEM 5 Full Description of Material Change

 

*5.1* *Full Description of Material Change* 

The Company announced a non-brokered private placement offering of up to 22,222,222 units (each, a "**Unit**") at a price of $0.45 per Unit for gross proceeds of up to $10,000,000 (the "**Offering**").

Each Unit shall consist of one (1) common share in the capital of the Company (each, a "**Common Share**") and one-half (1/2) of one non-transferable Common Share purchase warrant (each whole warrant, a "**Warrant**"). Each Warrant will be exercisable into one (1) Common Share (each, a "**Warrant Share**") at a price of $0.55 per Warrant Share for a period of two (2) years following the closing date of the Offering.

There is an offering document (the "**Offering Document**") related to the Offering that can be accessed under the Company's profile on SEDAR+ at www.sedarplus.ca and on the Company's website at www.aresmining.com. Prospective investors should read the Offering Document before making an investment decision.

As disclosed in the Offering Document, the Company intends to use the net proceeds from the Offering for general and corporate working capital purposes and repayment of outstanding debts. Finders' fees may be paid to eligible arm's length persons with respect to certain subscriptions accepted by the Company.

The Units offered as a part of the Offering shall be offered to purchasers in each of the Provinces of Canada, with the exception of Quebec, pursuant to the listed issuer financing exemption under Part 5A of NI 45-106 (the "**Listed Issuer Financing Exemption**"). Units offered under the Listed Issuer Financing Exemption will not be subject to resale restrictions for Canadian resident investors pursuant to applicable Canadian securities laws.

The Offering is anticipated to close in one or more tranches, with the final tranche of the Offering closing within 45 days from the date hereof. The closing is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals, including the Company's completion of its filing obligations under the policies of the CSE.

None of the securities sold in connection with the Offering will be registered under the United States Securities Act of 1933, as amended, and no such securities may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

*5.2* *Disclosure for Restructuring Transactions* 

Not Applicable.

ITEM 6 Reliance on subsection 7.1(2) of National Instrument 51-102

Not Applicable.

---

| | |
|:---|:---|
| **ITEM 7** | **Omitted Information** |

---

Not Applicable.

---

| | |
|:---|:---|
| **ITEM 8** | **Executive Officer** |

---

James Walker

President and Chief Executive Officer

(604) 345-1576 or at james@aresmining.com

ITEM 9 Date of Report

October 15, 2025

## Exhibit 4.13

**Exhibit 4.13**

![](ea029307701_ex4-13img1.jpg)

**NOTICE OF ANNUAL MEETING OF SHAREHOLDERS**

**AND**

**MANAGEMENT INFORMATION CIRCULAR**

**August 18, 2025**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| NOTICE OF ANNUAL MEETING OF SHAREHOLDERS | 1 |
| SOLICITATION OF PROXIES | 2 |
| APPOINTMENT AND REVOCATION OF PROXIES | 2 |
| EXERCISE OF DISCRETION BY PROXIES | 3 |
| ADVICE TO BENEFICIAL SHAREHOLDERS | 3 |
| VOTING SECURITIES AND PRINCIPAL HOLDERS THEREOF | 4 |
| STATEMENT OF EXECUTIVE COMPENSATION | 5 |
| &nbsp;&nbsp;&nbsp;Description of Director and Named Executive Officer Compensation | 5 |
| &nbsp;&nbsp;&nbsp;Summary Compensation Table | 6 |
| &nbsp;&nbsp;&nbsp;Employment, Consulting and Management Agreements. | 6 |
| &nbsp;&nbsp;&nbsp;Stock Options and Other Compensation Securities | 7 |
| &nbsp;&nbsp;&nbsp;Exercise of Compensation Securities by Directors and Named Executive Officers. | 7 |
| &nbsp;&nbsp;&nbsp;Equity Incentive Plan | 7 |
| SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS | 13 |
| INDEBTEDNESS OF DIRECTORS AND EXECUTIVE OFFICERS | 13 |
| REPORT ON CORPORATE GOVERNANCE | 14 |
| AUDIT COMMITTEE | 15 |
| INTERESTS OF INFORMED PERSONS IN MATERIAL TRANSACTIONS | 17 |
| PARTICULARS OF MATTERS TO BE ACTED UPON | 17 |
| INTEREST OF CERTAIN PERSONS IN MATTERS TO BE ACTED UPON | 21 |
| ADDITIONAL INFORMATION. | 21 |
| APPROVAL OF BOARD OF DIRECTORS | 22 |
| SCHEDULE A STATEMENT OF GOVERNANCE PRACTICES | A-1 |
| SCHEDULE B CHARTER OF THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS | B-1 |

---

- i -

**ARES STRATEGIC MINING INC.**

409 Granville Street, Suite 1001

Vancouver, BC, V6C 1T2

**NOTICE OF ANNUAL MEETING OF SHAREHOLDERS**

TO SHAREHOLDERS:

**NOTICE IS HEREBY GIVEN** that an annual meeting (the "**Meeting**") of the holders of the common shares (collectively, the "**Shareholders**" or individually, a "**Shareholder**") of Ares Strategic Mining Inc.. (the "**Corporation**") will be held at the Corporation office at 409 Granville Street, Suite 1001,Vancouver, BC, V6C 1T2 on Wednesday, October 1, 2025 at the hour of 10:00 AM, local time for the following purposes:

&nbsp;&nbsp;&nbsp;&nbsp;1. to receive the audited financial statements of the Corporation for the financial year ended September
30, 2024, together with the report of the auditor thereon;

2. to elect the directors of the Corporation to hold office for the ensuing year;

3. to appoint Manning Elliott LLP, Chartered Professional Accountants, as auditor of the Corporation for
the ensuing year and to authorize the directors of the Corporation to fix its remuneration;

4. to reapprove the Corporation's Omnibus Equity Incentive Plan as adopted on November 23, 2022 and
described in detail on page 7 of the accompanying Circular.

5. to transact such other business as may properly be brought before the Meeting or any adjournment thereof.

The accompanying Circular provides additional information relating to the matters to be dealt with at the Meeting and is supplemental to, and expressly made a part of, this notice of Meeting (the "**Notice of Meeting**").

The board of directors of the Corporation has fixed August 18, 2025 as the record date for the determination of Shareholders entitled to notice of and to vote at the Meeting and at any adjournment or postponement thereof. Each registered Shareholder at the close of business on that date is entitled to such notice and to vote at the Meeting in the circumstances set out in the accompanying Circular.

If you are a registered Shareholder of the Corporation and unable to attend the Meeting in person, please vote by proxy by following the instructions provided in the form of proxy at least 48 hours (excluding Saturdays, Sundays and holidays recognized in the Province of British Columbia) before the time and date of the Meeting or any adjournment or postponement thereof.

If you are a non-registered Shareholder and received this Notice of Meeting and accompanying materials through a broker, a financial institution, a participant, or a trustee or administrator of a retirement savings plan, retirement income fund, education savings plan or other similar savings or investment plan registered under the *Income Tax Act* (Canada), or a nominee of any of the foregoing that holds your securities on your behalf (each, an "**Intermediary**"), please complete and return the materials in accordance with the instructions provided to you by your Intermediary.

To be valid, all instruments of proxy must be deposited at the office of the Registrar and Transfer Agent of Ares, TSX Trust Company, 301 – 100 Adelaide Street West, Toronto, Ontario, M5H 4H1 not later than forty - eight (48) hours, excluding Saturdays, Sundays and holidays, prior to the time of the Meeting or any adjournment(s) or postponement(s) thereof. Late instruments of proxy maybe accepted or rejected by the Chairman of the Meeting in his discretion and the Chairman is under no obligation to accept or reject any particular late instruments of proxy.

Online voting option - shareholders can vote with their 12 digit control number found on their Form of Proxy at www.voteproxyonline.com

DATED at Vancouver, British Columbia as of this 18 day of August, 2025

BY ORDER OF THE BOARD OF DIRECTORS OF

ARES STRATEGIC MINING INC.

"*James Walker*"

James Walker

President and Chief Executive Officer

**ARES STRATEGIC MINING INC.**

409 Granville Street, Suite 1001

Vancouver, BC, V6C 1T2

**INFORMATION CIRCULAR**

**August 18, 2025 INTRODUCTION**

This information circular (the "**Information Circular**") accompanies the notice of annual meeting of shareholders (the "**Notice**") of Ares Strategic Mining Inc. (the "**Corporation**") and is furnished to shareholders (each, a "Shareholder") holding common shares (each, a "**Common Share**") of the Corporation in connection with the solicitation by the management of the Corporation of proxies to be voted at the annual general meeting (the "**Meeting**") of the Shareholders to be at the Corporation office at 409 Granville Street, Suite 1001,Vancouver, BC, V6C 1T2 on Wednesday, October 1, 2025 at the hour of 10:00 AM, local time, or at any adjournment or postponement thereof.

**Date and Currency**

The date of this Information Circular is August 18, 2025. Unless otherwise stated, all amounts herein are in Canadian dollars.

**GENERAL PROXY INFORMATION**

**Solicitation of Proxies**

This Information Circular is provided to registered and beneficial owners of the Ares Shares in connection with the solicitation of proxies by the management of Ares for use at the Meeting to be held at the time and place and for the purposes set forth in the accompanying Notice of Meeting and at any adjournment(s) or postponement(s) thereof. This Information Circular and other proxy - related materials are not provided to registered or beneficial owners of Ares Shares under the notice and access provisions of NI 54 - 101.

**Persons or Companies Making the Solicitation**

**The enclosed instrument of proxy is solicited by management.** Solicitations will be made by mail and possibly supplemented by telephone or other personal contact to be made without special compensation by regular officers and employees of Ares. Ares may reimburse Ares Shareholders' nominees or agents (including brokers holding shares on behalf of clients) for the cost incurred in obtaining authorization from their principals to execute the instrument of proxy. No solicitation will be made by specifically engaged employees or soliciting agents. The cost of solicitation will be borne by Ares. None of the directors of Ares have advised management in writing that they intend to oppose any action intended to be taken by management as set forth in this Information Circular.

**Appointment and Revocation of Proxies**

This Information Circular is accompanied by a management instrument of proxy that permits registered shareholders (a "**Registered Holder**") who do not attend the Meeting in person to have their Ares Shares voted at the Meeting by a proxyholder appointed by the Registered Holder. The persons named in the accompanying instrument of proxy are directors or officers of Ares. **An Ares Shareholder has the right to appoint a person to attend and act for him on his behalf at the Meeting other than the persons named in the enclosed instrument of proxy. To exercise this right, the Ares Shareholder must strike out the names of the persons named in the instrument of proxy and insert the name of his nominee in the blank space provided or complete another instrument of proxy. The completed instrument of proxy must be dated and signed and the duly completed instrument of proxy must be deposited at Ares's transfer agent, TSX Trust Company, 301 – 100 Adelaide Street, Toronto, Ontario, M5H 4H1 at least 48 hours before the time of the Meeting or any adjournment(s) or postponement(s) thereof, excluding Saturdays, Sundays and holidays. TSX Trust Company, General Inquiry Toll Free number 1(866)600-5869, Local number 416-342-1091, email:tsxtis@tmx.com**

The instrument of proxy must be signed by the Ares Shareholder or by his duly authorized attorney. If signed by a duly authorized attorney, the instrument of proxy must be accompanied by the original power of attorney or a notarially certified copy thereof. If the Ares Shareholder is a corporation, the instrument of proxy must be signed by a duly authorized attorney, officer, or corporate representative, and must be accompanied by the original power of attorney or document whereby the duly authorized officer or corporate representative derives his power, as the case may be, or a notarially certified copy thereof. The Chairman of the Meeting has discretionary authority to accept proxies that do not strictly conform to the foregoing requirements.

In addition to revocation in any other manner permitted by law, an Ares Shareholder may revoke a proxy by (a) signing a proxy bearing a later date and depositing it at the place and within the time aforesaid, (b) signing and dating a written notice of revocation (in the same manner as the instrument of proxy is required to be executed as set out in the notes to the instrument of proxy) and either depositing it at the place and within the time aforesaid or with the Chairman of the Meeting on the day of the Meeting or on the day of any adjournment(s) or postponement(s) thereof, or (c) registering with the scrutineer at the Meeting as an Ares Shareholder present in person, whereupon such proxy shall be deemed to have been revoked.

**Voting of Shares and Exercise of Discretion Of Proxies**

On any poll, the persons named as proxyholder in the enclosed instrument of proxy will vote the Ares Shares in respect of which they are appointed and, where directions are given by the Ares Shareholder in respect of voting for or against any resolution, will do so in accordance with such direction.

**In the absence of any direction in the instrument of proxy, it is intended that such Ares Shares will be voted in favour of the resolutions placed before the Meeting by management and for the election of the management nominees for directors and auditor, as stated under the headings in this Information Circular.** The instrument of proxy enclosed, when properly completed and deposited, confers discretionary authority with respect to amendments or variations to the matters identified in the Notice of Meeting and with respect to any other matters that may be properly brought before the Meeting. At the time of printing of this Information Circular, the management of Ares is not aware that any such amendments, variations or other matters are to be presented for action at the Meeting. However, if any such amendments, variations or other matters should properly come before the Meeting, the proxies hereby solicited will be voted thereon in accordance with the best judgement of the nominee.

**Advice to Beneficial Holders of Ares Shares**

The following information is of significant importance to Ares Shareholders who do not hold Ares Shares in their own name. Beneficial shareholders should note that the only proxies that can be recognized and acted upon at the Meeting are those deposited by Registered Holders (those whose names appear on the records of Ares as the Registered Holder of Ares Shares). If shares are listed in an account statement provided to an Ares Shareholder by a broker, then in almost all cases those Ares Shares will not be registered in the Ares Shareholder's name on the records of Ares. Such Ares Shares will most likely be registered under the names of the Ares Shareholder's broker or an agent of that broker. In Canada, the vast majority of such Ares Shares are registered under the name of CDS & Co. (the registration name for The Canadian Depository for Securities Limited, which acts as nominee for many Canadian brokerage firms), and in the United States, under the name of Cede & Co. as nominee for The Depository Trust Company (which acts as depositary for many U.S. brokerage firms and custodian banks).

Intermediaries are required to seek voting instructions from beneficial shareholders in advance of Ares Shareholders' meetings. Every Intermediary has its own mailing procedures and provides its own return instructions to clients. There are two kinds of beneficial owners - those who object to their name being made known to the issuers of securities which they own (called "**OBOs**" for "Objecting Beneficial Owners") and those who do not object to the issuers of the securities they own knowing who they are (called "**NOBOs**" for "Non - Objecting Beneficial Owners").

Ares is taking advantage of the provisions of NI 54 - 101, which permit it to directly deliver proxy - related materials to its NOBOs. As a result, NOBOs can expect to receive a scannable Voting Instruction Form (a "**VIF**") from TSX Trust Company. These VIFs are to be completed and returned to the Transfer Agent in the envelope provided or by facsimile. In addition, TSX Trust Company provides internet voting options, as described in the VIF. TSX Trust Company will tabulate the results of the VIFs received from NOBOs and will provide appropriate instructions with respect to the Ares Shares represented by the VIFs they receive.

These Meeting Materials are being sent to both Registered Holders and certain Non - Registered Holders of the Ares Shares. If you are a Non - Registered Holder and Ares or its agent has sent these Meeting Materials directly to you, your name and address and information about your holdings of Ares Shares have been obtained in accordance with applicable securities regulatory requirements from the Intermediary holding Ares Shares on your behalf.

By choosing to send these Meeting Materials to you directly, Ares (and not the Intermediary holding on your behalf) has assumed responsibility for delivering these Meeting Materials to you and executing your proper voting instructions. Please return your voting instructions by completing and returning the enclosed VIF in accordance with the instructions contained in the VIF.

Beneficial shareholders who are OBOs will not receive the materials unless their Intermediary assumes the costs of delivery. In the event that voting instructions are requested from OBOs, such instructions will typically be sought by the Ares Shareholder receiving either a form of proxy or a voting instruction form. If a form of proxy is supplied to you by your broker, it will be similar to the proxy provided to Registered Holders by Ares. However, its purpose is limited to instructing the Intermediary on how to vote on your behalf. Most brokers now delegate responsibility for obtaining instructions from clients to Broadridge Financial Solutions, Inc. ("**Broadridge**") in Canada and the United States. Broadridge obtains voting instructions by mailing a voting instruction form (the "**Broadridge VIF**") which appoints the same persons as Ares's proxy to represent you at the Meeting. You have the right to appoint a person (who need not be a beneficial shareholder of Ares), other than the persons designated in the Broadridge VIF, to represent you at the Meeting. To exercise this right, you should insert the name of the desired representative in the blank space provided in the Broadridge VIF. The completed Broadridge VIF must then be returned to Broadridge by mail or facsimile or given to Broadridge by phone or over the internet, in accordance with Broadridge's instructions. Broadridge then tabulates the results of all instructions received and provides appropriate instructions respecting the voting of shares to be represented at the Meeting.

If you plan to vote in person at the Meeting:

● nominate yourself as the appointee to attend and vote at the Meeting by printing your name in the space provided on the enclosed voting instruction form. Your vote will be counted at the Meeting so do NOT complete the voting instructions on the form;

● sign and return the form, following the instructions provided by your nominee; and

● register with the Scrutineer when you arrive at the Meeting.

You may also nominate yourself as appointee online, if available, by typing your name in the "Appointee" section on the electronic ballot.

If you bring your voting instruction form to the Meeting, your vote will not count. Your vote can only be counted if you have completed, signed and returned your voting instruction form in accordance with the instructions above and attend the Meeting and vote in person.

**Notice-and-Access**

The Canadian securities regulators have adopted rules which permit the use of notice-and-access for proxy solicitation instead of the traditional physical delivery of material. The Company has elected to utilize notice-and-access with the following web hosting link https://docs.tsxtrust.com/2341

**Voting Securities and Principal Holders of Voting Securities**

As at August 18, 2025 , 211,554,891 Ares Shares were issued and outstanding, each Ares Share carrying the right to one vote. At a general meeting of Ares, on a show of hands, every shareholder present in person has one vote and, on a poll, every Ares Shareholder has one vote for each Ares Share of which he is the holder. Quorum for the Meeting such number of individuals representing at least 15% of the Ares Shares entitled to vote at the meeting of Ares Shareholder. Only Ares Shareholders of record at the close of business on August 18, 2025, will be entitled to have their Ares Shares voted at the Meeting or any adjournment(s) or postponement(s) thereof. All such holders of record of Ares Shares are entitled either to attend and vote thereat in person the Ares Shares held by them or, provided a completed and executed proxy shall have been delivered to the Transfer Agent within the time specified in the attached Notice of Annual Meeting of Ares Shareholders, to attend and vote by proxy the Ares Shares held by them. To the knowledge of the directors and executive officers of Ares, no person beneficially owns or controls or directs, directly or indirectly, shares carrying more than 10% of the voting rights attached to all outstanding Ares Shares.

**Statement of Executive Compensation**

*Definitions*

 

For the purpose of this Information Circular:

"**CEO**" means each individual who, in respect of Ares, during any part of the most recently completed financial year, served as chief executive officer, including an individual performing functions similar to a chief executive officer;

"**CFO**" means each individual who, in respect of Ares, during any part of the most recently completed financial year, served as chief financial officer, including an individual performing functions similar to a chief financial officer;

"**compensation securities**" includes stock options, convertible securities, exchangeable securities and similar instruments, including stock appreciation rights, deferred share units and restricted stock units, granted or issued by Ares or any of its subsidiaries for services provided or to be provided, directly or indirectly, to Ares or any of its subsidiaries;

"**Named Executive Officer**" or "**NEO**" means each of the following individuals:

&nbsp;&nbsp;&nbsp;&nbsp;(a) a CEO;

&nbsp;&nbsp;&nbsp;&nbsp;(b) a CFO;

&nbsp;&nbsp;&nbsp;&nbsp;(c) in respect of Ares and its subsidiaries, the most highly
compensated executive officer, other than the CEO and the CFO, at the end of the most recently completed financial year whose total compensation
exceeded $150,000, as determined in accordance with subsection 1.3(5) of Form 51 - 102F6V *Statement of Executive Compensation – Venture Issuers*, for that financial year;

&nbsp;&nbsp;&nbsp;&nbsp;(d) each individual who would be a Named Executive Officer under
paragraph (c) but for the fact that the individual was not an executive officer of Ares, and was not acting in a similar capacity, at
the end of that financial year.

During Ares's financial year ended September 30, 2024, the following individuals were the Named Executive Officers of Ares: James Walker, President and CEO, and Viktoriya Griffin, CFO.

**Compensation Excluding Compensation Securities**

Particulars of compensation, excluding compensation securities, paid to each NEO and director in the two most recently completed financial years is set out in the table below:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| <br>**Name and position** | <br>**Year**<br>**ending** | **Salary,<br> consulting fee,<br> retainer or**<br>**commission**<br>**($)** | **Committee or<br> meeting**<br> **fees**<br>**($)** | **Value of<br> all other**<br>**compensation**<br>**($)** | **Total**<br>**compensation**<br>**($)** |
| **James Walker**<sup>(1)</sup>** | 09/30/24 | 144000 Nil | Nil | Nil | 144000 |
| President, CEO and Director | 09/30/23 | 144000 Nil | Nil | 559163 | 703163 |
| **Viktoriya Griffin**<sup>(1)</sup>** | 09/30/24 | 125329 Nil | Nil | Nil | 125329 |
| CFO | 09/30/23 | 114680 Nil | Nil | 56095 | 170775 |
| **Changxian Li** | 09/30/24 | Nil | 1500 Nil | Nil | 1500 |
| Director | 09/30/23 | Nil | 1250 Nil | 48962 | 50212 |
| **Bo Li** | 09/30/24 | Nil | Nil | Nil | Nil |
| Director | 09/30/23 | Nil | Nil | 57993 | 57993 |
| **Paul Sarjeant**<sup>(1)</sup>** | 09/30/24 | 42000 Nil | Nil | Nil | 42000 |
| Director | 09/30/23 | 42000 Nil | Nil | 73894 | 115894 |
| **Raul Sanabria** | 09/30/24 | Nil | Nil | Nil | Nil |
| Director | 09/30/23 | Nil | Nil | 56658 | 56658 |

---

<sup>(1)</sup> Mr. Walker, Mrs. Griffin and Mr. Sarjeant were paid consulting fees and performance bonuses pursuant to consulting agreements as disclosed under "External Management Contracts" below.

**External Management Contracts**

Neither James Walker, Ares's CEO, Viktoriya Griffin, Ares's CFO, nor Paul Sarjeant, Ares's VP Exploration are employees of Ares, but derive their compensation indirectly through consulting agreements as set forth below.

Pursuant to a consulting agreement dated February 24, 2020, between Ares and Mr. Walker (the "**Walker Agreement**"), Mr. Walker provides his services to Ares as President and Chief Executive Officer. Pursuant to the Walker Agreement, Ares pays Mr. Walker a monthly consulting fee of $12,000. Mr. Walker is also eligible for cash performance bonuses and is entitled to receive stock options, as determined by the Board. Mr. Walker is also entitled to be reimbursed for reasonable out - of - pocket expenses incurred by him on behalf of Ares. The Walker Agreement does not contain any change of control provisions, and is for an indefinite period, unless terminated in accordance with terms set out therein.

On January 21, 2019, Ares and Mrs. Griffin entered into a consulting agreement pursuant to which Ares retained Mrs. Griffin to provide services as Ares' Chief Financial Officer (the "**Griffin Agreement**"). Pursuant to the Griffin Agreement, Ares pays Mrs. Griffin a monthly consulting fee was $4,000 and any extended work in excess is billed at $110/hr. Mrs. Griffin is also entitled to receive stock options, as determined by the Board. Ares shall also reimburse Mrs. Griffin for reasonable out - of - pocket expenses incurred by her on behalf of Ares. The Griffin Agreement does not contain any change of control provisions, and is for an indefinite period, unless terminated in accordance with terms set out therein.

On April 2, 2022, Ares and Mr. Sarjeant entered into a consulting agreement pursuant to which Ares retained Mr. Sarjeant to provide services as Ares' VP Exploration (the "**Sarjeant Agreement**"). Pursuant to the Sarjeant Agreement, Ares pays Mr. Sarjeant a monthly consulting fee was $3,500. Mr. Sarjeant is also entitled to receive stock options, as determined by the Board. Ares shall also reimburse Mr. Sarjeant for reasonable out - of - pocket expenses incurred by him on behalf of Ares. The Sarjeant Agreement does not contain any change of control provisions, and is for an indefinite period, unless terminated in accordance with terms set out therein.

**Stock Options and Other Compensation Securities**

No compensation securities granted or issued to each NEO and director of Ares during the most recently completed financial year for services provided or to be provided, directly or indirectly, to Ares or any of its subsidiaries:

**Exercise of Compensation Securities by Directors and Named Executive Officers**

The following compensation securities were exercised by Directors and Named Executive Officers during the most recently completed financial year.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Exercise of Compensation Securities by Directors and NEOs** | **Exercise of Compensation Securities by Directors and NEOs** | **Exercise of Compensation Securities by Directors and NEOs** | **Exercise of Compensation Securities by Directors and NEOs** | **Exercise of Compensation Securities by Directors and NEOs** | **Exercise of Compensation Securities by Directors and NEOs** | **Exercise of Compensation Securities by Directors and NEOs** | **Exercise of Compensation Securities by Directors and NEOs** |
| <br>**Name and Position** | **Type of**<br>**compensation**<br>**security** | **Number of<br> underlying**<br>**securities**<br>**exercised** | **Exercise price**<br>**per security**<br>**($)** | <br>**Date of**<br>**exercise** | **Closing price<br> per security<br> on date of**<br>**exercise**<br>**($)** | **Difference<br> between<br> exercise price <br> and closing <br> price on date of**<br>**exercise**<br>**($)** | **Total <br> value on**<br>**exercise date**<br> **($)** |
| **James Walker** | Stock Options | 50000 | 0.13 | Jan 2, 2024 | 0.22 | 0.09 | 4500.00 |
| President, CEO and Director |  |  |  |  |  |  |  |
| **James Walker** | Stock Options | 110000 | 0.13 | Feb 22, 2024 | 0.185 | 0.055 | 6050.00 |
| President, CEO and Director |  |  |  |  |  |  |  |
| **James Walker** | Stock Options | 85000 | 0.13 | Mar 20, 2024 | 0.20 | 0.07 | 5950.00 |
| President, CEO and Director |  |  |  |  |  |  |  |
| **James Walker** | Stock Options | 200000 | 0.13 | Apr 18, 2024 | 0.205 | 0.075 | 15000.00 |
| President, CEO and Director |  |  |  |  |  |  |  |

---

**Ares Omnibus Equity Incentive Plan**

The plan has been approved by the shareholders at the annual and special meeting of shareholders on November 23, 2022*.*

 

*Key Terms of the Ares Equity Incentive Plan*

 

*<u>Shares Subject to the Ares Equity Incentive Plan</u>*

The Ares Equity Incentive Plan is a "rolling" plan which, subject to the adjustment provisions provided for therein (including a subdivision or consolidation of Shares), provides that the aggregate maximum number of Ares Shares that may be issued upon the exercise or settlement of awards granted under the Ares Equity Incentive Plan, shall not exceed 20% of the issued and outstanding Ares Shares from time to time. The Ares Equity Incentive Plan is considered an "evergreen" plan, since the Ares Shares covered by awards which have been exercised, settled or terminated shall be available for subsequent grants under the Ares Equity Incentive Plan and the number of awards available to grant increases as the number of issued and outstanding Ares Shares increases.

*<u>Insider Participation Limit</u>*

 

The Ares Equity Incentive Plan also provides that the aggregate number of Ares Shares (a) issuable to insiders at any time (under all of Ares's security-based compensation arrangements) cannot exceed 10% of the issued and outstanding Ares Shares and (b) issued to insiders within any one year period (under all of Ares's security-based compensation arrangements) cannot exceed 10% of the issued and outstanding Ares Shares.

Any Ares Shares issued by Ares through the assumption or substitution of outstanding stock options or other equity-based awards from an acquired company shall not reduce the number of Ares Shares available for issuance pursuant to the exercise of awards granted under the Ares Equity Incentive Plan.

*<u>Administration of the Ares Equity Incentive Plan</u>*

 

The Plan Administrator (as defined in the Ares Equity Incentive Plan) is determined by the Ares Board, and is initially the Board. The Ares Equity Incentive Plan may in the future continue to be administered by the Ares Board itself or delegated to a committee of the Ares Board. The Plan Administrator determines which directors, officers, consultants and employees are eligible to receive awards under the Ares Equity Incentive Plan, the time or times at which awards may be granted, the conditions under which awards may be granted or forfeited to Ares, the number of Ares Shares to be covered by any award, the exercise price of any award, whether restrictions or limitations are to be imposed on the Ares Shares issuable pursuant to grants of any award, and the nature of any such restrictions or limitations, any acceleration of exercisability or vesting, or waiver of termination regarding any award, based on such factors as the Plan Administrator may determine.

In addition, the Plan Administrator interprets the Ares Equity Incentive Plan and may adopt guidelines and other rules and regulations relating to the Ares Equity Incentive Plan, and make all other determinations and take all other actions necessary or advisable for the implementation and administration of the Ares Equity Incentive Plan.

*<u>Eligibility</u>*

 

All directors, employees and consultants are eligible to participate in the Ares Equity Incentive Plan. The extent to which any such individual is entitled to receive a grant of an award pursuant to the Ares Equity Incentive Plan will be determined in the sole and absolute discretion of the Plan Administrator.

*<u>Types of Awards</u>*

 

Awards of RSUs and PSUs may be made under the Ares Equity Incentive Plan. All of the awards described below are subject to the conditions, limitations, restrictions, exercise price, vesting, settlement and forfeiture provisions determined by the Plan Administrator, in its sole discretion, subject to such limitations provided in the Ares Equity Incentive Plan, and will generally be evidenced by an award agreement. In addition, subject to the limitations provided in the Ares Equity Incentive Plan and in accordance with applicable law, the Plan Administrator may accelerate or defer the vesting or payment of awards, cancel or modify outstanding awards, and waive any condition imposed with respect to awards or Ares Shares issued pursuant to awards.

*<u>Restricted Share Units</u>*

 

A RSU is a unit equivalent in value to a Ares Share credited by means of a bookkeeping entry in the books of Ares which entitles the holder to receive one Ares Share (or the value thereof) for each RSU after a specified vesting period. The Plan Administrator may, from time to time, subject to the provisions of the Ares Equity Incentive Plan and such other terms and conditions as the Plan Administrator may prescribe, grant RSUs to any participant in respect of a bonus or similar payment in respect of services rendered by the applicable participant in a taxation year (the "**RSU Service Year**").

The number of RSUs (including fractional RSUs) granted at any particular time under the Ares Equity Incentive Plan will be calculated by dividing (a) the amount of any bonus or similar payment that is to be paid in RSUs, as determined by the Plan Administrator, by (b) the Market Price. The Plan Administrator shall have the authority to determine any vesting terms applicable to the grant of RSUs, provided that the terms comply with Section 409A of the U.S. Internal Revenue Code of 1986, to the extent applicable.

Upon settlement, holders will redeem each vested RSU for the following at the election of such holder but subject to the approval of the Plan Administrator: (a) one fully paid and non-assessable Ares Share in respect of each vested RSU, (b) a cash payment or (c) a combination of Ares Shares and cash. Any such cash payments made by Ares shall be calculated by multiplying the number of RSUs to be redeemed for cash by the Market Price per Ares Share as at the settlement date. Subject to the provisions of the Ares Equity Incentive Plan and except as otherwise provided in an award agreement, no settlement date for any RSU shall occur, and no Ares Share shall be issued or cash payment shall be made in respect of any RSU any later than the final business day of the third calendar year following the applicable RSU Service Year.

*<u>Performance Share Units</u>*

 

A PSU is a unit equivalent in value to a Ares Share credited by means of a bookkeeping entry in the books of Ares which entitles the holder to receive one Ares Share (or the value thereof) for each PSU after specific performance-based vesting criteria determined by the Plan Administrator, in its sole discretion, have been satisfied. The performance goals to be achieved during any performance period, the length of any performance period, the amount of any PSUs granted, the effect of termination of a participant's service and the amount of any payment or transfer to be made pursuant to any PSU will be determined by the Plan Administrator and by the other terms and conditions of any PSU, all as set forth in the applicable award agreement. The Plan Administrator may, from time to time, subject to the provisions of the Ares Equity Incentive Plan and such other terms and conditions as the Plan Administrator may prescribe, grant PSUs to any participant in respect of a bonus or similar payment in respect of services rendered by the applicable participant in a taxation year (the "**PSU Service Year**").

The Plan Administrator shall have the authority to determine any vesting terms applicable to the grant of PSUs. Upon settlement, holders will redeem each vested PSU for the following at the election of such holder but subject to the approval of the Plan Administrator: (a) one fully paid and non-assessable Ares Share in respect of each vested PSU, (b) a cash payment, or (c) a combination of Ares Share as at the settlement date. Subject to the provisions of the Ares Equity Incentive Plan and except as otherwise provided in an award agreement, no settlement date for any PSU shall occur, and no Ares Share shall be issued or cash payment shall be made in respect of any PSU any later than the final business day of the third calendar year following the applicable PSU Service Year.

*<u>Dividend Equivalents</u>*

 

Except as otherwise determined by the Plan Administrator or as set forth in the particular award agreement, RSUs, PSUs and DSUs shall be credited with dividend equivalents in the form of additional RSUs, PSUs and DSUs, as applicable, as of each dividend payment date in respect of which normal cash dividends are paid on Ares Shares. Dividend equivalents shall vest in proportion to, and settle in the same manner as, the awards to which they relate. Such dividend equivalents shall be computed by dividing: (a) the amount obtained by multiplying the amount of the dividend declared and paid per Ares Share by the number of RSUs, PSUs and DSUs, as applicable, held by the participant on the record date for the payment of such dividend, by (b) the Market Price at the close of the first business day immediately following the dividend record date, with fractions computed to three decimal places.

*<u>Black-out Periods</u>*

 

In the event an award expires, at a time when a scheduled blackout is in place or an undisclosed material change or material fact in the affairs of Ares exists, the expiry of such award will be the date that is 10 business days after which such scheduled blackout terminates or there is no longer such undisclosed material change or material fact.

*<u>Term</u>*

 

While the Ares Equity Incentive Plan does not stipulate a specific term for awards granted there under, as discussed below, awards may not expire beyond 10 years from its date of grant, except where shareholder approval is received or where an expiry date would have fallen within a blackout period of Ares. All awards must vest and settle in accordance with the provisions of the Ares Equity Incentive Plan and any applicable award agreement, which award agreement may include an expiry date for a specific award.

*<u>Termination of Employment or Services</u>*

 

The following table describes the impact of certain events upon the participants under the Ares Equity Incentive Plan, including termination for cause, resignation, termination without cause, disability, death or retirement, subject, in each case, to the terms of a participant's applicable employment agreement, award agreement or other written agreement:

---

| | | |
|:---|:---|:---|
| **Event** | **Provisions** | **Provisions** |
| **Termination for Cause/Resignation** | ● | Any award held by the participant that has not been exercised, surrendered or settled as of the Termination Date (as defined in the Ares Equity Incentive Plan) shall be immediately forfeited and cancelled as of the Termination Date. |
| **Termination without Cause** | ● | A portion of any unvested awards shall immediately vest, such portion to be equal to the number of unvested awards held by the participant as of the Termination Date multiplied by a fraction the numerator of which is the number of days between the date of grant and the Termination Date and the denominator of which is the number of days between the date of grant and the date any unvested awards were originally scheduled to vest. |
| **Disability** | ● | A portion of any unvested awards shall immediately vest, such portion to be equal to the number of unvested awards held by the participant as of the date of disability multiplied by a fraction the numerator of which is the number of days between the date of grant and the date of disability and the denominator of which is the number of days between the date of grant and the date any unvested awards were originally scheduled to vest. Any vested award will be settled within 90 days after the Termination Date. |
| **Death** | ● | A portion of any unvested awards shall immediately vest, such portion to be equal to the number of unvested awards held by the participant as of the date of death multiplied by a fraction the numerator of which is the number of days between the date of grant and the date of death and the denominator of which is the number of days between the date of grant and the date any unvested awards were originally scheduled to vest. Any vested award will be settled with the Participant's beneficiary or legal representative (as applicable) within 90 days after the date of the Participant's death. |
| **Retirement** | ● | (i) a portion of any unvested awards shall immediately vest, such portion to be equal to the number of unvested awards held by the Participant as of the date of retirement multiplied by a fraction the numerator of which is the number of days between the Date of Grant and the date of retirement and the denominator of which is the number of days between the Date of Grant and the date any unvested awards were originally scheduled to vest, and (ii) any outstanding award that vests based on the achievement of Performance Goals (as defined in the Ares Equity Incentive Plan) that has not previously become vested shall continue to be eligible to vest based upon the actual achievement of such Performance Goals. Any vested award that is described in (i), such award will be settled within 90 days after the participant's retirement. In the case of a vested award that is described in (ii), such award will be settled at the same time the award would otherwise have been settled had the participant remained in active service with Ares or its subsidiary. Notwithstanding the foregoing, if, following his or her retirement, the participant commences (the "**Commencement Date**") employment, consulting or acting as a director of Ares or any of its subsidiaries (or in an analogous capacity) or otherwise as a service provider to any person that carries on or proposes to carry on a business competitive with Ares or any of its subsidiaries. |

---

*<u>Change in Control</u>*

 

Under the Ares Equity Incentive Plan, except as may be set forth in an employment agreement, award agreement or other written agreement between Ares or a subsidiary of Ares and a participant:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If within 12 months following the completion of a transaction resulting in a Change in Control (as defined
below), a participant's employment, consultancy or directorship is terminated by Ares or a subsidiary of Ares without Cause (as
defined in the Ares Equity Incentive Plan), without any action by the Plan Administrator:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any unvested awards held by the participant at Termination Date may vest in the sole discretion of the
Plan Administrator; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any vested awards may be exercised, surrendered to Ares, or settled by the participant at any time during
the period that terminates on the earlier of: (A) the expiry date of such award; and (B) the date that is 90 days after the Termination
Date. Any award that has not been exercised, surrendered or settled at the end of such period being immediately forfeited and cancelled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless otherwise determined by the Plan Administrator, if, as a result of a Change in Control, the Ares
Shares will cease trading on the CSE, Ares may terminate all of the awards held by a participant that is a resident of Canada for the
purposes of the Income Tax Act (Canada), granted under the Ares Equity Incentive Plan at the time of and subject to the completion of
the Change in Control transaction by paying to each holder at or within a reasonable period of time following completion of such Change
in Control transaction an amount for each Award equal to the fair market value of the Award held by such participant as determined by
the Plan Administrator, acting reasonably, provided that any vested awards granted to U.S. Taxpayers (as defined in the
Ares Equity Incentive Plan) will be settled within 90 days of the Change in Control.

Subject to certain exceptions, a "Change in Control" includes (a) any transaction pursuant to which a person or group acquires more than 50% of the outstanding Ares Shares, (b) the sale of all or substantially all of Ares's assets, (c) the dissolution or liquidation of Ares, (d) the acquisition of Ares via consolidation, merger, exchange of securities, purchase of assets, amalgamation, statutory arrangement or otherwise, (e) individuals who comprise the Board at the last annual meeting of Ares Shareholders (the "Incumbent Board") cease to constitute at least a majority of the Ares Board, unless the election, or nomination for election by the Ares Shareholders, of any new director was approved by a vote of at least a majority of the Incumbent Board, in which case such new director shall be considered as a member of the Incumbent Board, or (f) any other event which the Ares Board determines to constitute a change in control of Ares.

*<u>Non-Transferability of Awards</u>*

 

Except as permitted by the Plan Administrator and to the extent that certain rights may pass to a beneficiary or legal representative upon death of a participant, by will or as required by law, no assignment or transfer of awards, whether voluntary, involuntary, by operation of law or otherwise, vests any interest or right in such awards whatsoever in any assignee or transferee and immediately upon any assignment or transfer, or any attempt to make the same, such awards will terminate and be of no further force or effect. To the extent that certain rights to exercise any portion of an outstanding award pass to a beneficiary or legal representative upon the death of a participant, the period in which such award can be exercised by such beneficiary or legal representative shall not exceed one year from the participant's death.

*<u>Amendments to the Ares Equity Incentive Plan</u>*

 

The Plan Administrator may also from time to time, without notice and without approval of the holders of voting Ares Shares, amend, modify, change, suspend or terminate the Ares Equity Incentive Plan or any awards granted pursuant thereto as it, in its discretion, determines appropriate, provided that (a) no such amendment, modification, change, suspension or termination of the Ares Equity Incentive Plan or any award granted pursuant thereto may materially impair any rights of a participant or materially increase any obligations of a participant under the Ares Equity Incentive Plan without the consent of such participant, unless the Plan Administrator determines such adjustment is required or desirable in order to comply with any applicable securities laws or stock exchange requirements, and (b) any amendment that would cause an award held by a U.S. Taxpayer to be subject to the income inclusion under Section 409A of the United States Internal Revenue Code of 1986, as amended, shall be null and void ab initio.

Notwithstanding the above, and subject to the policies of the CSE, the approval of Ares Shareholders is required to effect any of the following amendments to the Ares Equity Incentive Plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increasing the number of Ares Shares reserved for issuance under the Ares Equity Incentive Plan, except
pursuant to the provisions in the Ares Equity Incentive Plan which permit the Plan Administrator to make equitable adjustments in the
event of transactions affecting Ares or its capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) increasing or removing the 10% limits on Ares Shares issuable or issued to insiders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) reducing the exercise price of an option award (for this purpose, a cancellation or termination of an
award of a participant prior to its expiry date for the purpose of reissuing an award to the same participant with a lower exercise price
shall be treated as an amendment to reduce the exercise price of an award) except pursuant to the provisions in the Ares Equity Incentive
Plan which permit the Plan Administrator to make equitable adjustments in the event of transactions affecting Ares or its capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) increasing or removing the limits on the participation of non-employee directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) permitting awards to be transferred to a person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) changing the eligible participants; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) deleting or otherwise limiting the amendments which require approval of the Ares Shareholders.

Except for the items listed above, amendments to the Ares Equity Incentive Plan will not require shareholder approval. Such amendments include (but are not limited to): (a) amending the general vesting provisions of an award, (b) amending the provisions for early termination of awards in connection with a termination of employment or service, (c) adding covenants of Ares for the protection of the participants, (d) amendments that are desirable as a result of changes in law in any jurisdiction where a participant resides, and (e) curing or correcting any ambiguity or defect or inconsistent provision or clerical omission or mistake or manifest error.

*<u>Anti-Hedging Policy</u>*

Participants are restricted from purchasing financial instruments such as prepaid variable forward contracts, equity swaps, collars, or units of exchange funds that are designed to hedge or offset a decrease in market value of awards granted to them.

**Employment, Consulting and Management Agreements**

Other than as disclosed under *"External Management Contracts"*, no services were provided to Ares during the most recently completed financial year by a director or named executive officer, or any other party who provided services typically provided by a director or named executive officer, pursuant to any employment, consulting or management agreement between Ares and any other party, and Ares has no agreement or arrangement with any director, named executive officer or any other party with respect to any change of control of Ares or any severance, termination or constructive dismissal of any director, named executive officer or any other party, or any incremental payments triggered by any such change of control, severance, termination or constructive dismissal.

**Oversight and Description of Director and Named Executive Officer Compensation**

Compensation of the Named Executive Officers and directors is determined by the full Ares Board, based on the recommendations of the Compensation Committee. Compensation is determined based on factors considered relevant and appropriate, including the level of service provided, the background and expertise of the individual director or officer, amounts paid by other companies in similar industries at similar stages of development, and compensation levels necessary to attract, retain and develop management of a high calibre. Compensation is typically reviewed annually by the Compensation Committee and the Ares Board, usually in the first fiscal quarter, but may also be reviewed on an ad hoc basis as the need arises.

Ares's compensation structure has two primary components, cash compensation and share - based compensation in the form of incentive stock options and bonus shares. Cash compensation has two components, base salary and bonuses.

For the most recently completed financial year, James Walker, Ares' CEO, received base cash compensation of $144,000 for providing those services. Viktoriya Griffin, Ares' CFO, received base cash compensation of $125,329 and Paul Sarjeant, Ares' VP Exploration, received base cash compensation of $42,000. The base cash compensation paid to Ares's NEOs is based on the Board's subjective assessment of the value to Ares of the services provided by each, and the other factors referred to in the foregoing. For further particulars of Ares's agreements with Mr. Walker, Mrs. Griffin and Mr.Sarjeant see "*External Management Contracts*".

Ares may grant Stock Options, RSUs, DSUs and PSUs as described in the Ares Equity Incentive Plan to the Named Executive Officers and directors on an ad hoc basis, based on the same subjective performance criteria referred to in the foregoing and other performance criteria considered relevant by the Ares Board. See "*Stock Options and Other Compensation Securities*" Ares regards the use of Stock Options, RSUs, DSUs and PSUs as a significant component of its compensation structure. In evaluating Stock Options, RSUs, DSUs and PSUs, the Ares Board evaluates a number of factors including, but not limited to: (i) the number of Stock Options, RSUs, DSUs and PSUs already held by or issued to an individual; (ii) a fair balance between the number of options held by or bonus shares issued to an individual and those held by or issued to other directors or officers, in light of their responsibilities and objectives; and (iii) the value of the options (generally determined using a Black - Scholes analysis) and RSUs, DSUs and PSUs as a component of the individual's overall compensation.

No significant events occurred during the most recently completed financial year that significantly affected compensation. While the Ares Board considers amounts paid by other companies in similar industries at similar stages of development in determining compensation, no specifically selected peer group has been identified as a comparable. No significant changes were made to Ares's compensation policies since the commencement of the most recently completed financial year.

**Disclosure of Corporate Governance Practices**

National Instrument 58 - 101 - *Disclosure of Corporate Governance Practices* requires reporting issuers to disclose the corporate governance practices, on an annual basis, that they have adopted. Ares's approach to corporate governance is provided in Schedule "A".

**SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS**

*Equity Compensation Plan Information*

The following table sets forth details of Ares's compensation plans under which equity securities of Ares are authorized for issuance at the end of September 30, 2024.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Plan Category** | **Number of Common Shares to be issued upon exercise of outstanding options** | **Weighted-average exercise price of outstanding options** | **Number of Common Shares remaining available for future issuance under equity compensation plans** | **Number of Common Shares remaining available for future issuance under equity compensation plans** |
|  | **#** | **$** | $**#** | **#** |
| **Equity compensation plans approved by security holders** | **21793053** |  |  | **12890351** |
| **Equity compensation plans not approved by security holders** | Nil |  |  | Nil |
| **Total** | **21793053** |  |  | **12890351** |

---

For a description of the terms of the Ares Equity Incentive Plan see "*Key Terms of the Ares Equity Incentive Plan"*

and "*Statement of Executive Compensation for Ares -* **Stock Options and Other Compensation Securities**".

**Indebtedness of Directors and Executive Officers**

No executive officer, director, employee, former executive officer, former director, former employee, proposed nominee for election as a director, or associate of any such person has been indebted to Ares or its subsidiaries at any time since the commencement of Ares's last completed financial year. No guarantee, support agreement, letter of credit or other similar arrangement or understanding has been provided by Ares or its subsidiaries at any time since the beginning of the most recently completed financial year with respect to any indebtedness of any such person.

**Management Contracts**

Except as otherwise disclosed herein, the management functions of Ares are substantially performed by the directors and officers of Ares and not to any substantial degree by any other persons other than the directors and executive officers of Ares.

**Corporate Governance and Compensation Committee**

The Corporate Governance and Compensation Committee (the "**CG&CC**") considers a broad range of factors when setting compensation for executive management, including but not limited to, market data, individual performance, corporate performance and sector performance.

**Base Salary**

The base salary or fee provides an executive with basic compensation and reflects individual responsibility, knowledge and experience, market competitiveness and the contribution expected from each individual. At its discretion, the CG&CC may compare each executive officer's salary with the base salaries for similar positions in the comparator group, and recommends appropriate adjustments, as needed.

**Short - Term Incentive Compensation – Bonuses**

Short - term incentive compensation is based on annual results. The short - term incentive ensures that a significant portion of an executive's compensation varies with actual results in a given year, while providing financial incentives to executives to achieve short - term financial and strategic objectives. It communicates to executives the key accomplishments the CG&CC wishes to reward and ensures that overall executive compensation correlates with corporate objectives. The short - term incentive component is structured to reward not only increased value for shareholders but also performance with respect to key operational factors and non - financial goals important to long term success.

**Compensation of Directors**

The CG&CC reviews director compensation annually and recommends updates to the Board for approval when considered appropriate or necessary to recognize workload, time commitment and responsibility of Board and committee members. The directors are reimbursed for actual expenses reasonably incurred in connection with the performance of their duties as directors.

Non - Executive Directors receive compensation in the amount of $250 per Ares Board, CG&CC or Audit Committee meeting. Both Executive and Non - Executive Directors are eligible to receive grants of stock options RSUs, DSUs and PSUs as described in the Ares Equity Incentive Plan . NEOs who also act as directors of Ares will not receive any additional compensation for services rendered in such capacity, other than as paid by Ares to such NEOs in their capacity as executive officers.

**Compensation Governance**

The CG&CC has the responsibility for determining compensation for the Ares Board and the NEOs. The CG&CC is comprised of Raul Sanabria, James Walker and Paul Sarjeant. Each of Messrs. Walker and Sarjeant are considered to be non - independent directors by virtue of their respective roles as President and CEO and Vice - President of Ares.

The CG&CC meets on compensation matters as and when required with respect to executive compensation. The primary goal of the meetings of CG&CC as they relate to compensation matters is to ensure that the compensation provided to the NEOs is determined with regard to Ares's business strategies and objectives, such that the financial interest of the executive officers is aligned with the financial interest of shareholders, and to ensure that their compensation is fair and reasonable and sufficient to attract and retain qualified and experienced executives.

To determine compensation payable, the CG&CC reviews compensation paid for directors and CEO of companies of similar size and stage of development in the mineral exploration industry and determine an appropriate compensation reflecting the need to provide incentive and compensation for the time and effort expended by the directors and senior management while taking into account the financial and other resources of Ares. In setting the compensation, the CG&CC annually reviews the performance of the CEO in light of Ares's objectives and considers other factors that may have impacted the success of Ares in achieving its objectives.

As a whole, the members of the CG&CC have direct experience and skills relevant to their responsibilities in executive compensation, including with respect to enabling the CG&CC in making informed decisions on the suitability of Ares's compensation policies and practices. Each of the members of the CG&CC has experience on the board of directors and related committees of other companies, as described under "*Particulars of Matters to be Acted Upon* - *Election of Directors*" in this Information Circular.

**Executive Compensation - Related Fees**

In the financial years ending September 30, 2024 and 2023, neither the Board nor the CG&CC retained a compensation consultant or advisor to assist the Board or the CG&CC in determining the compensation for any of Ares's executive officers' or directors' compensation.

**Audit Committee**

Under National Instrument 52 - 110 – *Audit Committees* ("**NI 52** - **110**"), companies are required to provide disclosure with respect to their audit committee, including the text of the audit committee's charter, the composition of the audit committee and the fees paid to the external auditor.

*Audit Committee Charter*

Ares's Audit Committee is governed by the Audit Committee Charter. A copy of the Audit Committee Charter is attached hereto as Schedule "B".

*Composition of the Audit Committee*

Ares's Audit Committee is comprised of four (4) directors, James Walker, Paul Sarjeant, Changxian Li and Raul Sanabria. Also, as defined in NI 52 - 110, all of the Audit Committee members are "financially literate". The experience of the Audit Committee members is set forth in below.

*Relevant Education and Experience*

All Audit Committee members have the ability to read and understand financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of the issues that can reasonably be expected to be raised by Ares's financial statements and are therefore considered financially literate.

<u>James Walker, Director</u>

Mr. Walker has extensive experience in engineering and project management; particularly within mining engineering, mechanical engineering, construction, manufacturing, engineering design, infrastructure, safety management, and nuclear engineering. Mr. Walker also has accounting experience and is a qualified Accounting Technician under The Association of Accounting Technicians (AAT). Mr. Walker holds degrees in Mechanical Engineering, Mining Engineering, and Nuclear Engineering, as well as qualifications in Project Management and Accountancy. Mr. Walker is a Chartered Engineer with the IMechE, a Professional Engineer (PEng) with Engineers and Geoscientists BC, a Chartered Physicist with the IoP, and a qualified project manager with APM.

<u>Paul Sarjeant, Director</u>

Mr. Sarjeant is a professional geologist who has been involved in mineral exploration and development in North and South America and throughout Africa, Asia and Europe for more than 35 years. Mr. Sarjeant holds a BSc (Honours) in Geological Sciences from Queen's University in Kingston, Ontario and is a member of the Association of Professional Geoscientists of Ontario. Mr. Sarjeant held the position of a Certified Professional Planner (CFP) for a number of years managing investments for individual. Mr. Sarjeant has previously held management positions in several junior mining companies. Mr. Sarjeant currently is founder of Doublewood Consulting Inc., a consulting company that provides management and technical advice and services to the exploration/mining sector. Mr. Sarjeant serves as a director, Qualified Person and consultant to a number of private and public mining companies. Mr. Sarjeant acts as President and COO of Kobo Resources Inc.

<u>Raul Sanabria, Director</u>

Founder of Golden Hammer Exploration Ltd. and served in several management positions in publicly listed issuers that have undertaken financings. Has managed large exploration budges for over 25 years.

<u>Changxian Li, Director</u>

Changxian Li brings over 30 years of global experience in the iron and steel industry, mineral trading, and resource investment. He began his career at Mitsubishi Corporation in 1989, playing a pivotal role in pioneering iron ore trade between countries such as India, Canada, Chile, and China. His leadership in commodity trading has spanned across global markets including Australia, Brazil, and the U.S. He was co-founder of Normet Industries Limited, OMC Investments Limited, TitanOcean Shipping Co., Ltd.

*Audit Committee Oversight*

Since the commencement of Ares's most recently completed financial year, the Ares Board has not failed to adopt a recommendation of the Audit Committee to nominate or compensate an external auditor.

*Reliance on Certain Exemptions*

At no time since the commencement of Ares's most recently completed financial year has Ares relied on the exemption in Section 2.4 of NI 52 - 110 (*De Minimis Non* - *audit Services*), the exemptions in Subsection 6.1.1(4) (*Circumstance Affecting the Business or Operations of the Venture Issuer)*, Subsection 6.1.1(5) *(Events Outside Control of Member)*, Subsection 6.1.1(6) *(Death, Incapacity or Resignation)* or an exemption from NI 52 - 110, in whole or in part, granted under Part 8 of NI 52 - 110 (*Exemptions)*.

*Pre-Approval Policies and Procedures*

No specific policies or procedures have been adopted with respect to the provision of non-audit services by Ares's external auditor although, under Ares's Audit Committee Charter, such services are required to be approved by the Audit Committee.

In the following table, "audit fees" are fees billed by Ares's external auditor for services provided in auditing Ares's annual financial statements for the subject year. "Audit-related fees" are fees not included in audit fees that are billed by the auditor for assurance and related services that are reasonably related to the performance of the audit or review of Ares's financial statements. "Tax fees" are fees billed by the auditor for professional services rendered for tax compliance, tax advice and tax planning. "All other fees" are fees billed by the auditor for products and services not included in the foregoing categories.

The fees billed to Ares by its auditor in each of the last two fiscal years, by category, are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Financial Year Ending** | **Audit Fees** | **Audit Related Fees** | **Tax Fees** | **All Other Fees** |
| September 30, 2024 | $93000 | $Nil | $5500 | $1116 |
| September 30, 2023 | $62000 | $Nil | $5000 | $744 |

---

<u>Exemption</u>

Ares is relying on the exemption provided by section 6.1 of NI 52 - 110, which provides that Ares, as a venture issuer, is not required to comply with Part 3 (Composition of the Audit Committee) and Part 5 (Reporting Obligations) of NI 52-110

**INTEREST OF INFORMED PERSONS IN MATERIAL TRANSACTIONS**

**OTHER THAN AS DISCLOSED ELSEWHERE IN THIS INFORMATION CIRCULAR, NO "INFORMED PERSON" (AS DEFINED IN NI 51** - **102), NO PROPOSED DIRECTOR OF ARES AND NO ASSOCIATE OR AFFILIATE OF ANY SUCH INFORMED PERSON OR PROPOSED DIRECTOR, HAS ANY MATERIAL INTEREST, DIRECT OR INDIRECT, IN ANY MATERIAL TRANSACTION SINCE THE COMMENCEMENT OF ARES'S LAST COMPLETED FINANCIAL YEAR OR IN ANY PROPOSED TRANSACTION, WHICH, IN EITHER CASE, HAS MATERIALLY AFFECTED OR WILL MATERIALLY AFFECTARES OR ANY OF ITS SUBSIDIARIES.**

**PARTICULARS OF MATTERS TO BE ACTED UPON**

1. Financial Statements

The audited financial statements of the Corporation for the year ended September 30, 2024 together with the auditor's report thereon, will be presented to the Shareholders at the Meeting. The Corporation's financial statements and management discussion and analysis are on available on SEDAR+ at www.sedarplus.ca

2. Election of Directors

The Board of Directors currently consists of five (5) directors. It is intended that each person whose name appears below will be nominated at the Meeting for election as a director of the Corporation to hold office until the next annual meeting of shareholders or until his successor is duly elected or appointed pursuant to the by-laws of the Corporation. The enclosed form of proxy permits Shareholders to vote for each nominee on an individual basis.

The current Board of Directors comprised of three independent directors: Bo Li, Raul Sanabria, Changxian Li. James Walker and Paul Sarjeant are considered to be a non-independent directors by virtue of their roles as the President and CEO and Vice President Exploration of the Corporation respectively**.**

The following table sets out certain information as at the date of this Circular (unless otherwise indicated) with respect to the persons being nominated at the Meeting for election as directors. Information regarding Common Shares owned by each director of the Corporation is presented to the best knowledge of management of the Corporation and has been furnished to management of the Corporation by such directors.

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| | |
|:---|:---|
| **PAUL SARJEANT** | **Principal Occupation and Biographical Information** |
| Ontario, Canada<br> Director Since: Oct 13, 2011<br> **NOT-INDEPENDENT** | Mr. Sarjeant is a Professional Geologist who has been involved in mineral exploration and development in North and South America and throughout Africa, Asia and Europe for more than 35 years. He holds a BSc (Honours) in geological sciences from Queen's University in Kingston, Ontario and is a member of the Association of Professional Geoscientists of Ontario. Mr. Sarjeant has previously held management positions in several junior mining companies. He currently is founder of Doublewood Consulting Inc., a consulting company that provides management and technical advice and services to the exploration/mining sector. Mr. Sarjeant serves as a director, Qualified Person and consultant to a number of private and public mining companies. Currently Mr. Sarjeant acts as President and COO for Kobo Resources Inc. |

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| | | |
|:---|:---|:---|
| **Current Board/Committee Membership** | **Number of Common Shares Beneficially Owned, Controlled or Directed** | **Other Reporting Issuer** |
| Member of the Board<br> Member of the Audit Committee<br> Member of the Corporate<br> Governance and Compensation Committee | 31250 | Global Energy Metals Corporation.<br> (TSXV: GEMC)<br> Enyo Strategic Mining Inc.<br> Kobo Resources Inc.<br> (TSXV:KRI) |

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| | |
|:---|:---|
| **CHANGXIAN LI** | **Principal Occupation and Biographical Information** |
| Beijing, China<br> Director Since: Oct 19, 2016<br> **INDEPENDENT** | Changxian Li brings over 30 years of global experience in the iron and steel industry, mineral trading, and resource investment. He began his career at Mitsubishi Corporation in 1989, playing a pivotal role in pioneering iron ore trade between countries such as India, Canada, Chile, and China. His leadership in commodity trading has spanned across global markets including Australia, Brazil, and the U.S. He was co-founder of Normet Industries Limited, OMC Investments Limited, TitanOcean Shipping Co., Ltd. |

---

---

| | | |
|:---|:---|:---|
| **Current Board/Committee Membership** | **Number of Common Shares Beneficially Owned, Controlled or Directed** | **Other Reporting Issuer** |
| Member of the Board<br> Member of the Audit Committee | 1,164,900\* | Enyo Strategic Mining Inc. |

---

\* 952,400 held by OMC Investments Limited., a company owned or controlled by Changxian Li. 212,500 held by Changxian Li.

---

| | |
|:---|:---|
| **Bo Li** | **Principal Occupation and Biographical Information** |
| Shanghai, China<br> Director Since: June 9, 2020<br> **INDEPENDENT** | Mr.Li has over 15 years experience in fluoride field and deep understanding for fluorine applications which relate metal smelting, fluorine chemicals and new energy fields.<br>Mr. Li is the Managing Director of the Mujim Group, one of Asia largest fluorspar producers. Mr. Li operates several fluorspar mines and dressing plants in Thailand, Laos and China. |

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---

| | | |
|:---|:---|:---|
| **Current Board/Committee Membership** | **Number of Common Shares Beneficially Owned, Controlled or Directed** | **Other Reporting Issuer** |
| Member of the Board | 9,275,342\* | Enyo Strategic Mining Inc. |

---

***\**** 9,075,342 held by L & S International Trading Limited, a company controlled by Bo Li, 200,000 held by Bo Li.

---

| | |
|:---|:---|
| **Raul Sanabria** | **Principal Occupation and Biographical Information** |
| British Columbia, Canada<br> Director Since: June 1, 2019<br> **INDEPENDENT** | Mr. Sanabria has over 25 years of international experience as an exploration and mine geologist in a variety of mineral deposits. He started his career working 5 years for MINERSA Group, the largest European Fluorspar Producer. Currently he General Manager, Exploration (Latin America) for Australian company Aguia Resources, exploring in Colombia and Brazil. He most recently served as President/Director/Chief Geologist for Baroyeca Gold &Silver and worked as Senior Exploration Manager for Tudor Gold Corp, Chief Geologist for Red Eagle Exploration, and VP Exploration of Rover Metals Corp, American Creek Resources Ltd., G4G Resources Ltd., and Northern Iron Corp. He is currently a COO of Andean Mining/Aguia Resources (ASX:AGR), and VP Exploration for Canadian Maverick. |

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| | | |
|:---|:---|:---|
| **Current Board/Committee Membership** | **Number of Common Shares Beneficially Owned, Controlled or Directed** | **Other Reporting Issuer** |
| Member of the Board<br> Member of the Audit Committee<br> Member of the Corporate<br> Governance and Compensation Committee | 532,000\* | Baroyeca Gold & Silver Inc.<br> (TSXV: BGS)<br> Andean Mining<br> (ASX:AGR) |

---

---

| | |
|:---|:---|
| **James Walker** | **Principal Occupation and Biographical Information** |
| British Columbia, Canada<br> Director Since: Dec 1, 2019<br> **NOT-INDEPENDENT** | Mr. Walker has extensive experience in engineering and project management; particularly within mining engineering, mechanical engineering, construction, manufacturing, engineering design, infrastructure, safety management, and nuclear engineering. Mr. Walker also has accounting experience, and is a qualified Accounting Technician under The Association of Accounting Technicians (AAT). Mr. Walker holds degrees in Mechanical Engineering, Mining Engineering, and Nuclear Engineering, as well as qualifications in Project Management and Accountancy. Mr. Walker is a Chartered Engineer with the IMechE, a Professional Engineer (PEng) with Engineers and Geoscientists BC, a Chartered Physicist with the IoP, and a qualified project manager with APM. |

---

---

| | | |
|:---|:---|:---|
| **Current Board/Committee Membership** | **Number of Common Shares Beneficially Owned, Controlled or Directed** | **Other Reporting Issuer** |
| Member of the Board<br> Member of the Audit Committee<br> Member of the Corporate<br> Governance and Compensation Committee | 6999408 | Bayhorse Silver Inc.<br> (TSXV: BHS)<br> Enyo Strategic Mining Inc.<br> Nano Nuclear Energy Inc.<br> (NASDAQ:NNE) |

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**UNLESS THE SHAREHOLDER SPECIFIES IN THE ENCLOSED FORM OF PROXY THAT THE COMMON SHARES REPRESENTED BY THE PROXY ARE TO BE WITHHELD FROM VOTING IN THE ELECTION OF DIRECTORS, THE PERSON NAMED IN THE FORM OF PROXY SHALL VOTE THE COMMON SHARES REPRESENTED BY THE PROXY IN FAVOUR OF THE ELECTION OF THE PERSONS WHOSE NAMES ARE SET FORTH ABOVE. MANAGEMENT DOES NOT CONTEMPLATE THAT ANY OF SUCH NOMINEES WILL BE UNABLE TO SERVE AS DIRECTORS. HOWEVER, IF FOR ANY REASON, ANY OF THE PROPOSED NOMINEES DO NOT STAND FOR ELECTION OR ARE UNABLE TO SERVE. AS SUCH, PROXIES IN FAVOUR OF MANAGEMENT DESIGNEES WILL BE VOTED FOR ANOTHER NOMINEE IN THEIR DISCRETION UNLESS THE SHAREHOLDER HAS SPECIFIED IN THEIR PROXY THAT THEIR COMMON SHARES ARE TO BE WITHHELD FROM VOTING IN THE ELECTION OF DIRECTORS**

**Corporate Cease Trade Orders**

The Common Shares of the Corporation were halted from trading on the Exchange on January 28, 2019 as the Corporation announced a binding agreement to acquire a mining operation which triggered a qualifying transaction with the Exchange (the "**Qualifying Transaction**"). The Common Shares recommenced trading on February 13, 2020 following the closing of the Qualifying Transaction.

The Common Shares of the Corporation were halted from trading on the Exchange on August 17, 2021 as the Corporation requires to file a technical report to support the Lost Sheep disclosure on March 8, 2021. The Common Shares recommenced trading on October 5, 2021 after the technical report has been filed.

Except as disclosed above, to the knowledge of the Corporation, no proposed director is, as at the date of this Circular, or has been, within 10 years before the date of this Circular, a director, CEO or CFO of any company (including the Corporation) that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) was subject to a cease trade order, an order similar to a cease trade order, or
an order that denied the relevant company access to any exemption under applicable securities legislation, and which in all cases was
in effect for a period of more than 30 consecutive days (an "**Order** "), which Order was issued while the proposed director
was acting in the capacity as director, CEO or CFO of such company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) was subject to an Order that was issued after the proposed director ceased to
be a director, CEO or CFO and which resulted from an event that occurred while that person was acting in the capacity as director, CEO
or CFO of such company.

The foregoing information, not being within the knowledge of the Corporation, has been furnished by the proposed directors.

**Bankruptcies, or Penalties or Sanctions**

To the knowledge of the Corporation, no proposed director:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is, as at the date of this Circular, or has been within 10 years before the date
of this Circular, a director or executive officer of any company (including the Corporation) that, while that person was acting in that
capacity, or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating
to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver,
receiver manager or trustee appointed to hold its assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) has, within 10 years before the date of this Circular, become bankrupt, made a
proposal under any legislation relating to bankruptcy or insolvency or become subject to or instituted any proceedings, arrangement or
compromise with creditors or had a receiver, receiver manager or trustee appointed to hold his assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) has been subject to any penalties or sanctions imposed by a court relating to
securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities regulatory
authority; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) has
been subject to any penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable
security holder in deciding whether to vote for a proposed director

The foregoing information, not being within the knowledge of the Corporation, has been furnished by the proposed directors.

3. Appointment of Auditor

At the Meeting, Shareholders will be asked to pass an ordinary resolution to appoint Manning Elliott LLP, Chartered Professional Accountants as auditors of the Corporation for the fiscal year ending September 30, 2025, and to authorize the directors of the Corporation to fix the remuneration to be to be paid to the auditors for the fiscal year ending September 30, 2025. An ordinary resolution needs to be passed by a simple majority of the votes cast by the Shareholders present in person or represented by proxy and entitled to vote at the Meeting. Manning Elliott LLP, were appointed as the auditors of the Corporation on June 1, 2021.

**IT IS INTENDED THAT THE COMMON SHARES REPRESENTED BY PROXIES BE VOTED IN FAVOUR OF THE APPOINTMENT OF MANNING ELLIOTT LLP, CHARTERED PROFESSIONAL ACCOUNTANTS, AS AUDITOR OF THE CORPORATION AND THE AUTHORIZING OF THE DIRECTORS TO FIX ITS REMUNERATION. AN AFFIRMATIVE VOTE OF A MAJORITY OF THE VOTES CAST BY SHAREHOLDERS AT THE MEETING IS SUFFICIENT FOR THE APPOINTMENT OF THE AUDITOR.**

4. Approval of the Company Omnibus Equity Incentive Plan

The Company proposes to reapprove its existing Omnibus Equity Incentive Plan as adopted on November 22, 2022 and described in detail on page 7 of this Circular. CSE Policy 6.5 (4) requires the Shareholders to reapprove the existing Omnibus Equity Incentive Plan within three years after adoption and within every three years thereafter.

Shareholders will be asked to pass an ordinary resolution to approve its existing Omnibus Equity Incentive Plan by a simple majority of the votes cast by the Shareholders present in person or represented by proxy and entitled to vote at the Meeting.

**PROXIES RECEIVED IN FAVOUR OF MANAGEMENT WILL BE VOTED FOR THE APPROVAL AND CONFIRMATION OF THE OMNIBUS EQUITY INCENTIVE PLAN UNLESS A SHAREHOLDER HAS SPECIFIED IN THE PROXY THAT HIS OR HER COMMON SHARES ARE TO BE VOTED AGAINST SUCH RESOLUTION.**

**INTEREST OF CERTAIN PERSONS IN MATTERS TO BE ACTED UPON**

No person or company who is, or at any time during the financial year ended September 30, 2024 was, a director or executive officer of the Corporation, a proposed management nominee for election as a director of the Corporation, or an associate or affiliate of any such director, executive officer or proposed nominee, has any material interest, direct or indirect, by way of beneficial ownership or otherwise, in matters to be acted upon at the Meeting.

**ADDITIONAL INFORMATION**

Additional information relating to the Corporation is available on SEDAR+ at www.sedarplus.ca. Financial information is provided in the Corporation's audited financial statements and Management's Discussion and Analysis ("**MD&A**") for the year ended September 30, 2024. In addition, copies of the Corporation's annual financial statements and MD&A and this Circular may be obtained upon request to the Corporation. The Corporation may require the payment of a reasonable charge if the request is made by a person who is not a shareholder of the Corporation.

**APPROVAL OF BOARD OF DIRECTORS**

The contents of this Circular and the sending of it to each director of the Corporation, to the auditor of the Corporation, to the Shareholders and to the appropriate governmental agencies, have been approved by the directors of the Corporation.

Dated: August 18, 2025

---

| |
|:---|
| BY ORDER OF THE BOARD |
| "*James Walker*" |
| James Walker |
| President and CEO |

---

**SCHEDULE A**

**STATEMENT OF GOVERNANCE PRACTICES**

---

| | |
|:---|:---|
| **Governance Disclosure Requirement Under the Corporate Governance National Instrument 58-101 ("NI 58-101")** | **Comments** |
| **Board of Directors** | **Board of Directors** |
| 1. Board of Directors—Disclose how the board of directors (the "**Board**") of Ares Strategic Mining Inc. (the "**Corporation**") facilitates its exercise of independent supervision over management, including<br>(i) the identity of directors that are independent, and<br>(ii) the identity of directors who are not independent, and the basis for that determination. | The Board currently consists of a total of five directors of which Mr. Sanabria, Mr. Changxian Li and Mr. Bo Li are considered "independent", as such term is defined in NI 58-101.<br>Mr. Walker and Mr. Sarjeant are not considered independent as their role as the President & CEO and VP Exploration of the Corporation. |
| 2. Directorships—If a director is presently a director of any other issuer that is a reporting issuer (or the equivalent) in a jurisdiction or a foreign jurisdiction, identify both the director and the other issuer. | Please refer to the accompanying management information circular (the "**Circular**") under the heading "Particulars of Matters to be Acted Upon - Election of Directors". |
| **Orientation and Continuing Education** | **Orientation and Continuing Education** |
| 3. Describe what steps, if any, the Board takes to orient new Board members, and describe any measures the Board takes to provide continuing education for directors. | Each new director brings a different skill set and professional background, and with this information, the Board is able to determine what orientation to the nature and operations of the Corporation's business will be necessary and relevant to each new director. The Corporation provides continuing education to its directors as such need arises and encourages open discussion at all meetings which format encourages learning by the directors. |

---

- A-1 -

---

| | |
|:---|:---|
| **Governance Disclosure Requirement Under the Corporate Governance National Instrument 58-101 ("NI 58-101")** | **Comments** |
| **Ethical Business Conduct** | **Ethical Business Conduct** |
| 4. Describe what steps, if any, the Board takes to encourage and promote a culture of ethical business conduct. | To ensure that an ethical business culture is maintained and promoted, directors are encouraged to exercise their independent judgment. If a director has a material interest in any transaction or agreement that the Corporation proposes to enter into, such director is expected to disclose such interest to the Board in compliance with the applicable laws, rules and policies which govern conflicts of interest in connection with such transaction or agreement. Further, any director who has a material interest in any proposed transaction or agreement will be excluded from the portion of the Board meeting concerning such matters and will be further precluded from voting on such matters. |
| **Nomination of Directors** | **Nomination of Directors** |
| 5. Disclose what steps, if any, are taken to identify new candidates for Board nomination, including: (i) who identifies new candidates, and (ii) the process of identifying new candidates. | The Board is responsible for the identification and assessment of potential directors. The Board considers its size each year when it considers the number of directors to recommend to the shareholders for election at the annual meeting of shareholders, taking into account the number required to carry out the Board's duties effectively and to maintain a diversity of views and experience. While no formal nomination procedures are in place to identify new candidates, the Board does review the experience and performance of nominees for election to the Board. Members of the Board are canvassed with respect to the qualifications of a prospective candidate and each candidate is evaluated with respect to his or her experience and expertise, with particular attention paid to those areas of expertise that could complement and enhance current management. The Board also assesses any potential conflicts, independence or time commitment concerns that the candidate may present. |

---

- A-2 -

---

| | |
|:---|:---|
| **Governance Disclosure Requirement Under the Corporate Governance National Instrument 58-101 ("NI 58-101")** | **Comments** |
| **Compensation** | **Compensation** |
| 6. Disclose what steps, if any, are taken to determine compensation for the directors and CEO, including: (i) who determines compensation, and (ii) the process of determining compensation. | The process undertaken by the Board in respect of compensation is more fully described in the "Director and Named Executive Officer Compensation" section of the accompanying Circular. |
| **Other Board Committees** | **Other Board Committees** |
| 7. If the Board has standing committees other than the audit, compensation and nominating committees, identify the committees and describe their function. | The Corporate Governance and Compensation Committee is the only standing committee of the Board other than the Audit Committee. The primary function of the Corporate Governance and Compensation Committee is to consider the compensation of Named Executive Officers and directors and to make recommendations to the Board with respect to compensation-related matters. |
| **Assessments** | **Assessments** |
| 8. Disclose what steps, if any, that the Board takes to satisfy itself that the Board, its committees, and its individual directors are performing effectively. | The Corporation has contemplated a plan for the annual review of the performance of every director and officer, however to date no formal plan or procedure has been adopted.<br>The Board feels its corporate governance practices are appropriate and effective for the Corporation, given its relatively small size and level of activity. The Corporation's corporate governance structure allows for the Corporation to operate efficiently, with simple checks and balances that control and monitor management and corporate functions without undue administrative burden. |

---

- A-3 -

**SCHEDULE B**

**CHARTER OF THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS**

The following is the Corporation's "**Audit Committee Charter**":

**Purpose**

The primary function of the audit committee of the Corporation (the "Committee") is to assist the board of directors (the "Board") of the Corporation in fulfilling its responsibilities by reviewing the financial reports and other financial information provided by the Corporation to any regulatory body or the public, the Corporation's systems of internal controls regarding preparation of those financial statements and related disclosures that management and the Board have established and the Corporation's auditing, accounting and financial reporting processes generally. Consistent with this function, the Committee encourages continuous improvement of, and fosters adherence to, the Corporation's policies, procedures and practices at all levels. The Committee's primary objectives are to:

&nbsp;&nbsp;&nbsp;&nbsp;1. Assist directors in meeting their responsibilities in respect of the preparation and disclosure of
the financial statements of the Corporation and related matters;

&nbsp;&nbsp;&nbsp;&nbsp;2. Provide for open communication between directors and external auditors;

&nbsp;&nbsp;&nbsp;&nbsp;3. Enhance the external auditor's independence;

&nbsp;&nbsp;&nbsp;&nbsp;4. Increase the credibility, transparency and objectivity of financial reports; and

&nbsp;&nbsp;&nbsp;&nbsp;5. Strengthen the role of the outside or "independent" directors by facilitating in depth
discussions between directors on the Committee, management and external auditors.

**Composition**

The Committee is comprised of three or more directors as determined by the Board, if at all possible with the majority of whom shall be "independent" (as such term is used in National Instrument 52-110 – *Audit Committees* ("**NI 52-110**") unless the Board shall have determined that the exemption contained in section 3.6 of NI 52-110 would be applicable and is to be adopted by the Corporation.

All of the members of the Committee shall be "financially literate" (as defined in NI 52-110) unless the Board shall determine that an exemption under NI 52-110 from such requirement in respect of any particular member would be applicable is to be adopted by the Corporation in accordance with the provisions of NI 52-110.

The members of the Committee shall be elected by the Board at the annual organizational meeting of the Board and remain as members of the Committee until their successors shall be duly elected and qualified.

Unless a Chair is elected by the full Board, the members of the Committee may designate a Chair by majority vote of the full Committee membership. The Chair of the Committee shall be an independent director.

**Meetings**

The Committee shall meet at least four times annually, or more frequently as circumstances dictate. As part of its mandate to foster open communication, the Committee should meet at least annually with management and the external auditors in separate executive sessions to discuss any matters that the Committee or each of these groups believe should be discussed privately. The Chief Financial Officer (if appointed) is required to be present at the meetings of the Committee and may be excused from all or part of any such meetings by the independent sitting members.

Minutes of all meetings of the Committee shall be taken and the Committee shall report the results of its meetings and reviews undertaken and any associated recommendations or resolutions to the Board. A written resolution signed by all Committee members entitled to vote on that resolution at a meeting of the Committee shall be valid resolution of the Committee.

A quorum for meetings of the Committee shall be majority of its members, and the rules for calling, holding, conducting and adjourning meetings of the committee shall be the same as those governing the Board.

Members of the Committee may participate in a meeting of the Committee by means of telephone or other communication device or facilities that permit all persons participating in any such meeting to hear one another.

- B-1 -

**Responsibilities and Duties**

To fulfil its responsibilities and duties, the Committee shall:

A. Documents/Reports Review

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Review and update this Charter, as conditions dictate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Review the financial statements, prospectuses, MD&A, annual information forms
and all public disclosures containing audited or unaudited financial information (including, without limitation, annual and interim press
releases and any other press releases disclosing earnings or financial results) before release and prior to Board approval where required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Review the reports to management prepared by the external auditors and management responses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Establish procedures for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the receipt, retention and treatment of complaints received by the Corporation regarding accounting,
internal accounting controls, or auditing matters; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the confidential, anonymous submission by employees of the issuer of concerns regarding questionable
accounting or auditing matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Review and approve the Corporation's hiring policies regarding employees and former employees of the
present and former external auditors of the issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Review of significant auditor findings during the year, including the status of previous audit recommendations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Be satisfied with and periodically assess the adequacy of procedures for the review of corporate disclosure
that is derived or extracted from the financial statements.

B. External Auditors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Be directly responsible for overseeing the work of the external auditors, including the resolution of
disagreements between management and the external auditors regarding financial reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Recommend to the Board the external auditors to be nominated for appointment by the shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Recommend to the Board the terms of engagement of the external auditor, including
their compensation and a confirmation that the external auditors shall report directly to the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. On an annual basis, review and discuss with the auditors all significant relationships
the auditors have with the Corporation to determine the auditors' independence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Review the performance of the external auditors and approve any proposed discharge
of the external auditors when circumstances warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. When there is to be a change in auditors, review the issues related to the change
and the information to be included in the required notice to securities regulators of such change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Periodically consult with the external auditors, without the presence of management,
about internal controls and the fullness and accuracy of the organization's financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Consider, in consultation with the external auditor, the audit scope and plan of the external auditor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. To one or more independent members of the Committee the authority to pre-approve
non-audit services, provided that such member(s) reports to the Committee at the next scheduled meeting such pre-approval and the members(s)
complies with such other procedures as may be established by the Committee from time to time.

- B-2 -

C. Financial Reporting Processes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. In consultation with the external auditors and management, review the integrity
of the organization's financial reporting processes both internal and external. Consider judgments concerning the appropriateness of the
Corporation's accounting policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Consider and approve, if appropriate, major changes to the Corporation's auditing and accounting principles
and practices as suggested by the external auditors or management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Review risk management policies and procedures of the Corporation (i.e., hedging, litigation and insurance).

D. Process Improvement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Review with external auditors their assessment of internal controls, their written
reports containing recommendations for improvement, and management's response and follow-up to any identified weaknesses. The Committee
shall also review annually with the external auditors their plan for their audit, and upon completion of the audit, their reports upon
the financial statements.

E. Ethical and Legal Compliance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Ensure that management has the proper review system in place to ensure that the
Corporation's financial statements, reports and other financial information disseminated to regulatory organizations and the public satisfy
legal requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Conduct and authorize investigations into any matters within the Committee's scope
of responsibilities. The Committee shall be empowered to retain, and to set and pay compensation for any independent counsel and other
professionals to assist in the conduct of any investigation, subject to the Board approving any expenditure in excess of $10,000 in this
regard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Perform any other activities consistent with this Charter, the Corporation's by-laws
and governing law, as the Committee or the Board deems necessary or appropriate.

- B-3 -

## Exhibit 5.1

**Exhibit 5.1**

![](ea029307701_ex5-1img1.jpg)

**Consent of Manning Elliott LLP**

We hereby consent to the inclusion in this Registration Statement on Form F-10 of our report, dated January 28, 2026, on the consolidated statements of financial position of Ares Strategic Mining Inc. and its subsidiaries (together, the "Company") as of September 30, 2025 and 2024, and the related consolidated statements of loss and comprehensive loss, changes in equity and cash flows for the years ended September 30, 2025 and 2024, including the related notes comprising a summary of significant accounting policies and other explanatory information, which are included in this Registration Statement on Form F-10 being filed by the Company with the United States Securities and Exchange Commission.

We also consent to the reference to us under the heading "Interest of Experts" in the Short Form Base Shelf Prospectus filed as part of this Registration Statement on Form F-10.

*/s/ Manning Elliott LLP*

CHARTERED PROFESSIONAL ACCOUNTANTS

Vancouver, Canada

June 8, 2026

## Ex-Filing

?xml version='1.0' encoding='ASCII'? EX-FILING FEES

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Calculation of Filing Fee Tables**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **F-10**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **ARES STRATEGIC MINING INC.**  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Type**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Class Title**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fee Calculation Rule or Instruction**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Maximum Aggregate Offering Price**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fee Rate**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Amount of Registration Fee**  |
|  |  | Equity | Common Shares | 457(o) |  |  |  |
|  |  | Other | Warrants | 457(o) |  |  |  |
|  |  | Other | Subscription Receipts | 457(o) |  |  |  |
|  |  | Other | Share Purchase Contracts | 457(o) |  |  |  |
|  |  | Other | Units | 457(o) |  |  |  |
|  |  | Other | Common Shares represented by Depositary Shares | 457(o) |  |  |  |
| Fees to be Paid | 1 | Unallocated (Universal) Shelf |  | 457(o) | $100000000.00 | 0.0001381 | $13810.00 |
| Fees Previously Paid |  |  |  |  |  |  |  |
|  |  |  | Total Offering Amounts: | Total Offering Amounts: | $100000000.00  |  | $13810.00  |
|  |  |  | Total Fees Previously Paid:  | Total Fees Previously Paid:  |  |  | $0.00  |
|  |  |  | Total Fee Offsets:  | Total Fee Offsets:  |  |  | $0.00  |
|  |  |  | Net Fee Due:  | Net Fee Due:  |  |  | $13810.00  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Offering Note** <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>1</sup> There are being registered under this registration statement on Form F-10 (the "Registration Statement") such indeterminate number of common shares, warrants, subscription receipts, share purchase contracts, units, and common shares represented by depositary shares (the "Securities") of Ares Strategic Mining Inc. (the "Registrant") as shall have an aggregate initial offering price not to exceed $100,000,000. The securities registered hereunder also include such indeterminate number of each class of identified securities as may be issued upon conversion, exercise or exchange of any other securities that provide for such conversion into, exercise for or exchange into such securities. Separate consideration may or may not be received for securities that are issuable on exercise, conversion or exchange of other securities. In addition, pursuant to Rule 416 under the Securities Act of 1933, as amended, the common shares being registered hereunder include such indeterminate number of common shares as may be issuable with respect to the shares being registered hereunder as a result of stock splits, stock dividends, or similar transactions. The proposed maximum initial offering price per Security will be determined, from time to time, by the Registrant in connection with the sale of the Securities under this Registration Statement. In U.S. dollars or the equivalent thereof in Canadian dollars or one or more foreign currencies or composite currencies based on the exchange rate at the time of sale.

---

| |
|:---|
| |
| **Rules 457(b) and 0-11(a)(2)** |
| Fee Offset Claims |
| Fee Offset Sources |
| **Rule 457(p)** |
| Fee Offset Claims |
| Fee Offset Sources |

---