Mr. William Dawes of Mkango Resources reports

MKANGO RESOURCES LIMITED - HYPROMAG USA EXPANDS FEEDSTOCK SUPPLY AGREEMENT

Mkango Resources Ltd. and Cotec Holdings Corp.'s HyProMag USA LLC has expanded its feedstock supply agreement with global electronics recycling company Intelligent Lifecycle Solutions LLC (ILS).

ILS is currently securing and storing neodymium-iron-boron (NdFeB) feedstock from hard-disk drives (HDDs) at the ILS preprocessing sites in Williston, S.C., and Reno, Nev., in advance of the commissioning of HyProMag USA's advanced-stage rare earth magnet recycling and manufacturing plant to be located in Fort Worth, Tex.

In addition to HDDs, ILS will start to procure bulk NdFeB feedstock, including rotors from electric motors, wind turbine magnets, speaker assemblies and MRI (magnetic resonance imaging) machines. ILS and HyProMag USA have agreed to create a joint technical procurement team to accelerate all purchases and complete the onboarding of the Inserma Anoia SL third-generation HDD magnet separation system at its sites. HyProMag USA is targeting delivery of the machines to the ILS preprocessing sites by the end of December, 2025.

Julian Treger, chief executive of Cotec, commented: "The ILS supply agreement continues to progress multiple NdFeB feedstocks that have been successfully tested through the accelerated piloting program at the University of Birmingham's HPMS [hydrogen processing of magnet scrap] pilot facility, which will support the technical procurement team as it continues to target and purchase bulk NdFeB feedstock sources across the United States. HyProMag USA is continuing to work closely to build long-term partnerships with commercial suppliers and federal and state governments to facilitate these feedstock sources."

Graham Davy, chief executive officer of ILS, commented: "ILS is excited to expand its procurement efforts to other NdFeB sources in partnership with HyProMag USA. The additional procurement and preprocessing operations will assist the recovery and recycling of critical strategic materials within the U.S. and provide a platform for further ILS growth. We look forward to working collaboratively with manufacturers and with their supply and vendor chains to facilitate the growth of rare earth material recycling using HyProMag's innovative magnet recycling technology in the USA."

HyProMag USA feasibility study

The feasibility study includes the Texas hub and two preprocessing facilities located in South Carolina and Nevada, respectively. In March, 2025, HyProMag USA announced the expansion of the detailed engineering phase to include three HPMS vessels and that it was initiating concept studies for further expansion and complementary long-loop recycling. The Texas hub's annual production is expected to be 750 metric tonnes per annum of recycled sintered NdFeB magnets and 807 metric tonnes per annum of associated NdFeB co-products (total payable capacity -- 1,557 metric tonnes NdFeB within five years of commissioning) over a 40-year operating life. It is expected the production facility will provide significant optionality to supply the U.S. market with additional NdFeB alloy powder while assisting in revitalizing the U.S. magnet sector with the creation of 90 to 100 skilled magnet manufacturing jobs.

In March, 2025, HyProMag USA announced the results of an independent ISO-compliant (International Organization for Standardization) product carbon footprint study, which confirmed an exceptionally low CO2 (carbon dioxide) footprint of 2.35 kilograms CO2 equivalent per kilogram of NdFeB cut sintered block product.

In August, 2025, HyProMag USA announced ILS had formally commenced its stockpiling of feedstock initiative pursuant to the recently announced feedstock supply and preprocessing site share agreement between HyProMag USA and ILS.

In September, 2025, HyProMag USA announced the commissioning of a concept study to evaluate the expansion of its operations into Nevada and South Carolina in collaboration with ILS.

In September, 2025, HyProMag USA announced the commissioning of a concept study to evaluate long-loop recycling with Worley Group Inc.

About Mkango Resources Ltd.

Mkango is listed on the AIM (Alternative Investment Market) and the TSX Venture Exchange. Mkango's corporate strategy is to become a market leader in the production of recycled rare earth magnets, alloys and oxides, through its interest in Maginito Ltd., which is owned 79.4 per cent by Mkango and 20.6 per cent by Cotec, and to develop new sustainable sources of neodymium, praseodymium, dysprosium and terbium to supply accelerating demand from electric vehicles, wind turbines and other clean energy technologies.

Maginito holds a 100-per-cent interest in HyProMag Ltd. and a 90-per-cent direct and indirect interest (assuming conversion of Maginito's convertible loan) in HyProMag GmbH, focused on short-loop rare earth magnet recycling in the United Kingdom and Germany, respectively, and a 100-per-cent interest in Mkango Rare Earths U.K. Ltd Ltd., focused on long-loop rare earth magnet recycling in the United Kingdom through a chemical route.

Maginito and Cotec are also rolling out hydrogen processing of magnet scrap (HPMS) recycling technology into the United States through the 50/50-owned HyProMag USA joint venture company.

Mkango also owns the advanced-stage Songwe Hill rare earths project in Malawi and the Pulawy rare earths separation project in Poland. Both the Songwe and Pulawy projects have been selected as strategic projects under the European Union Critical Raw Materials Act. Mkango signed a business combination agreement (BCA) dated July 2, 2025, with Crown PropTech Acquisitions to list the Songwe Hill and Pulawy rare earths projects on the Nasdaq Stock Market through a special-purpose acquisition company (SPAC) merger. Completion of the BCA remains subject to satisfaction of certain conditions, including approval of the TSX-V.

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