Mr. William Dawes reports

HYPROMAG USA TO COMMENCE PREPARATORY WORK

Mkango Resources Ltd. has provided an update from HyProMag USA LLC. HyProMag USA, a United States-based rare earth magnet recycling and manufacturing company, has taken occupation of its approximately 125,000-square-foot Dallas-Fort Worth facility for what is expected to become the company's first integrated rare earth magnet recycling and manufacturing hub in the United States.

The facility, located at Ironhead Commerce Center in Denton county, Texas, will serve as the central hub of HyProMag USA's domestic rare earth magnet recycling platform and support the company's broader hub-and-spoke strategy, which includes established feedstock preprocessing operations in South Carolina and Nevada at Intelligent Lifecycle Solutions sites.

With the lease in effect, HyProMag USA will begin establishing an operational presence at the site, including installation of communications infrastructure, security systems and other foundational requirements to support project execution activities.

Julian Treger, chief executive officer of Cotec Holdings Corp. (supporting HyProMag USA), commented: "Taking occupation of the Texas hub is transformational for HyProMag USA. With the facility now under our control, our focus is on advancing detailed engineering, securing long-lead equipment, expanding feedstock and offtake partnerships of what we believe will become a cornerstone of the domestic rare earth magnet supply chain. The facility is strategically located in the heart of the Dallas-Fort Worth innovation corridor with excellent access to transportation, logistics and critical infrastructure. We are excited to begin establishing our presence at the site and advancing the project toward construction and commissioning."

Will Dawes, chief executive officer of Mkango Resources and director of HyProMag USA, commented: "We are excited to announce this further milestone as we advance towards project development in USA. HyProMag USA is well positioned as a future magnet producer with significant competitive advantages, underpinned by domestic feedstock derived via its proprietary HPMS and Inserma technologies in conjunction with ILS, as well as the opportunity to leverage off existing HyProMag recycling and magnet manufacturing operations in U.K. and Germany."

The Dallas-Fort Worth facility is expected to utilize HyProMag's patented hydrogen processing of magnet scrap technology to recover and manufacture neodymium-iron-boron rare earth magnets from end-of-life products and manufacturing scrap.

Once fully operational, the facility is expected to manufacture approximately 941 metric tonnes per annum of recycled sintered neodymium-iron-boron magnets and 611 metric tonnes per annum of associated NdFeB co-products (total payable capacity -- 1,552 metric tonnes NdFeB) over a 40-year operating life supporting growing demand from sectors, including artificial intelligence infrastructure, robotics, electric vehicles and advanced manufacturing.

The U.S. buildout is expected to create approximately 90 to 100 skilled jobs, and play an important role in strengthening domestic supply chains for rare earth magnets and critical materials in the United States.

About HyProMag USA LLC

HyProMag USA is developing advanced rare earth magnet recycling and manufacturing operations to establish a secure domestic U.S. supply chain for NdFeB magnets, essential components for artificial intelligence infrastructure, defence systems, robotics, electric vehicles and advanced electronics. Leveraging the revolutionary HPMS technology, developed over 15 years by the Magnetic Materials Group at the University of Birmingham with more than $100-million in research and development investment, the company delivers faster magnet-to-magnet short-loop recycling that uses 88 per cent less energy and reduces carbon emissions by 85 per cent compared with conventional methods. HPMS accepts a wide range of magnet-bearing feedstocks -- including end-of-life electric vehicle motors, data centre and industrial equipment, consumer electronics, and manufacturing scrap -- enabling recovery of magnet-grade material without chemical processing. Selected by the U.S. Department of State as a minerals security partnership project, HyProMag USA is targeting 10 per cent of U.S. domestic magnet supply within five years, ensuring supply chain security and resilience for technologies critical to national defence and economic competitiveness.

Ownership

HyProMag USA is owned 50/50 by Cotec Holdings and HyProMag Ltd. HyProMag is 100 per cent owned by Maginito Ltd., which is owned on a 79.4/20.6-per-cent basis by Mkango Resources and CoTec.

About Mkango Resources Ltd.

Mkango is listed on the 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, 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 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 U.K. through a chemical route.

Maginito and Cotec are also rolling out 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 earth project in Malawi (Songwe) and the Pulawy rare earth separation project in Poland (Pulawy). Both the Songwe and Pulawy projects have been selected as strategic projects under the European Union Critical Raw Materials Act. Mkango has signed a business combination agreement with Crown PropTech Acquisitions to list the Songwe Hill and Pulawy rare earth projects on Nasdaq through a special-purpose acquisition company merger under the name Mkango Rare Earths Ltd.

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