Mr. William Dawes reports

MKANGO RESOURCES RAISES C$750,000 IN FIRST TRANCHE OF PRIVATE PLACEMENT

Mkango Resources Ltd. has closed the first tranche of its non-brokered private placement, raising $750,000 of the total private placement of up to $1.5-million announced in its press release of July 6, 2015.

A total of 30 million units were issued in the first tranche at a price of 2.5 cents per unit for gross cash proceeds of $750,000.

Each unit will consist of one common share of the corporation and one-half of a common share purchase warrant. Each whole warrant will entitle the holder to acquire one common share at a price of five cents for a period of three years following the closing date of the private placement. If, after four months from the closing date of the private placement, the closing price (or the average of the bid and the ask, if not traded) of the common shares on the TSX Venture Exchange exceeds 7.5 cents for a period of 20 consecutive trading days, the corporation may, within three trading days thereof, accelerate the expiry of the warrants to 20 trading days after the issuance of a news release announcing the new expiry date.

The corporation paid cash finders' fees totalling $3,500 and issued 1.68 million units and 1.82 million finders' warrants in connection with the private placement. Each finder's warrant entitles the holder to acquire one common share for five cents until July 31, 2016.

An insider of the corporation participated in the first tranche of the private placement, thereby making the private placement a related-party transaction as defined under Multilateral Instrument 61-101 (protection of minority securityholders in special transactions). The transaction, however, was exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any securities issued to or the consideration paid by the insider exceeds 25 per cent of the corporation's market capitalization. Derek Linfield, a director of the corporation, subscribed for 2,111,456 units. Following the closing of the private placement, Mr. Linfield now beneficially owns or controls 3,672,956 common shares, representing approximately 3.5 per cent of the issued and outstanding common shares on an undiluted basis. Mr. Linfield also owns and controls a total of 2,555,728 warrants. The private placement was unanimously approved by the directors of the corporation. The private placement remains subject to final acceptance of the TSX Venture Exchange.

The use of proceeds for the private placement will be for the continuation of flowsheet optimization, product marketing and other technical expenditures, expenditures related to the environmental, social and health impact assessment, which are key components of the feasibility study, continuing costs largely in Malawi and Canada, with the balance made up of a contingency on aforementioned technical and ESHIA-related expenditures, fees relating to the private placement, and any non-contingent fees payable in connection with the proposed listing on the Alternative Investment Market board of the London Stock Exchange.

The securities issued under the private placement, including any common shares issued on the exercise of the warrants and/or finders' warrants, have a hold period expiring on Dec. 1, 2015.

We seek Safe Harbor.