Mr. William Dawes reports

MKANGO RESOURCES LIMITED ANNOUNCES AGREEMENT WITH HERAEUS TO ACQUIRE HERAEUS REMLOY

Mkango Resources Ltd. has signed an asset purchase agreement with Heraeus Amloy Technologies GmbH to acquire its Remloy rare earth magnet recycling business for eight million euros ($9.4-million (U.S.)) in cash, of which five million euros ($5.6-million (U.S.)) is payable on closing, expected within the next three months, and three million euros ($3.5-million (U.S.)) is payable two years after closing. The initial payment of five million euros ($5.6-million (U.S.)) will be financed from Mkango's existing cash balance following its 12.5-million-British-pound ($16.8-million (U.S.)) equity placement, which closed on April 10, 2026.

Remloy has developed a plant in Bitterfeld, Germany, which recycles end-of-life rare earth magnets through a melting process (medium-loop recycling) to produce neodymium-iron-boron (NdFeB) alloy powders for the bonded and hot deformed magnet markets, complementary to HyProMag's short-loop recycling process to produce sintered magnets.

Highlights:

• Fully commissioned plant with significant investment in equipment and feedstock to date; no further major development capital expenditure required and strong operational and technical team in place;
• Production test runs under way for customer samples, with first commercial sales of NdFeB alloy powder product targeted by the end of the year;
• Very large stockpile of rare earth magnet and alloy feedstock totalling more than 300 tonnes underpins operations and provides future trading opportunities;
• Complementary product suite to HyProMag, further enhancing Mkango's one-stop-shop solution for customers;
• Potential synergies with the Mkango group include:
  • Enhanced platform for growth in major market for magnetic materials through the development of a further operating site in Germany;
  • Supply of end-of-life magnets from the Remloy stockpile for processing by the HyProMag group;
  • Supply of feedstock derived from hydrogen processing of magnet scrap (HPMS) by HyProMag to Remloy;
  • Technical and grant financing collaboration between Mkango, Remloy, HyProMag, University of Birmingham and University of Pforzheim;
  • Co-marketing of products from Mkango, HyProMag and Remloy, providing an expanded product suite to customers;
  • Future opportunity to supply primary rare earth feedstock from Mkango's Songwe Hill project to Remloy operations for blending with recycled feedstock;
• Significant growth opportunities through scale-up of existing operations and bolt-on opportunities for other rare earth metal and alloy process technologies such as strip casting.

William Dawes, chief executive officer of Mkango, commented: "We are very pleased to announce this transaction and look forward to working with the Remloy team and all stakeholders to grow the Remloy business within Mkango and to further develop the rare earth supply chain and ecosystem for recycling and magnet manufacturing in Germany and its neighbours. On April 28, 2026, HyProMag GmbH's production facility in Pforzheim was officially opened by senior representatives of the German government and, following this transaction, Mkango will have two rare earth plants in Germany with the capability to provide customers with a sustainable supply of rare earth products for the sintered, bonded and hot deformed magnet markets."

David Bender, head of Remloy, commented: "I am very pleased to continue the Remloy journey together with Mkango. The Remloy team has worked hard to develop the business to this point, and the next phase will be about execution: bringing products to customers, scaling commercial activities and leveraging synergies across the Mkango group. I am convinced that this set-up provides a strong basis to further develop rare earth magnet production and recycling capabilities in Germany and Europe."

Total capacity of the production facility is 500 tonnes of NdFeB alloy per year and the plant is targeting scale-up to this level of production over the next few years with minimal capital expenditure required. The assets are currently non-revenue-generating and therefore no historic profits are attributable to them, given the facility is still in the start-up phase. Multiple production runs have been completed with the current focus on product optimization, sample generation for customers and continuing offtake discussions to support the commencement of commercial sales and targeted scale-up of operations whilst capitalizing on potential synergies with Mkango and HyProMag.

The stockpile comprises more than 300 tonnes of rare earth magnets, rare earth alloys and other raw materials, which helps underpin the growth strategy. With this significant stockpile, Mkango is now very well positioned in the secondary market for magnetic materials, further enhanced by access to HPMS technology being commercialized by HyProMag, which enables cost-effective and energy-efficient liberation of embedded NdFeB magnets from end-of-life and production scrap streams.

The transaction is expected to close in the summer of 2026, subject to customary closing conditions and receipt of required regulatory approvals.

About Mkango Resources Ltd.

Mkango is listed on the AIM (Alternative Investment Market) and the TSX-V Stock 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 Holdings Ltd., 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., focused on long-loop rare earth magnet recycling in the United Kingdom through a chemical route.

Maginito and Cotec are also expanding HPMS recycling technology into the United States through the 50/50-owned HyProMag USA joint venture company.

Mkango currently owns 100 per cent of the advanced-stage Songwe Hill rare earths project in Malawi and the proposed Pulawy rare earths separation plant in Poland. Both the Songwe and Pulawy projects have been selected as strategic projects under the European Union Critical Raw Materials Act. Songwe has also received development funding from the U.S. International Development Finance Corp. (DFC), the U.S. government's development finance institution, securing $4.6-million (U.S.) in reimbursable funding for front-end engineering and design. Mkango signed a business combination agreement 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 under the name Mkango Rare Earths Ltd.

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