Mr. William Dawes of Mkango reports

MKANGO SUBSIDIARY, MAGINITO, AND COTEC APPOINT LEAD ENGINEERS BBA AND PEGASUS TO COMPLETE THE FEASIBILITY STUDY FOR HYPROMAG USA

Mkango Resources Ltd. and Cotec Holdings Corp. have hired Canada-based BBA USA Inc. and United States-based PegasusTSI Inc. to complete the HyProMag USA LLC bankable feasibility study to engineer and design its REE (rare earth element) magnet recycling plants and a production facility in the United States.

The feasibility study is expected to be completed during H2 2024. HyProMag USA has the potential to supply the United States with a sustainable, long-term domestic supply of neodymium/iron/boron (NdFeB) permanent magnets to enable the creation of secure, low carbon and traceable rare-earth supply chains. Julian Treger, Cotec chief executive officer, commented: "The feasibility study represents a significant milestone towards the construction of commercial-scale magnet recycling and production facilities in the United States. HyProMag is supported by the minerals security partnership which aims to accelerate the development of secure, diverse and sustainable supply chains for critical energy minerals. We are looking forward to working with BBA and PegasusTSI to develop these facilities using HyProMag's considerable experience from the plants being developed at Tyseley in the U.K. and in Germany following extensive piloting at the University of Birmingham. As the feasibility study progresses, HyProMag USA will be working and collaborating closely with local, state and federal stakeholders."

Will Dawes, Mkango chief executive officer, commented: "We see the United States as a major growth opportunity, underpinned by ongoing development of HyProMag's operations in the U.K. and Germany, and leveraging off HyProMag's competitive advantages in the rare earth magnet recycling sector -- the ability to cost effectively liberate magnets from end-of-life scrap streams and to produce recycled rare earth magnets with a significantly reduced carbon footprint.

"As a result, HyProMag is receiving strong interest and numerous enquiries for recycled magnets and recycling solutions and is engaged in multiple discussions on potential collaboration, with test work trials being completed for a number of major multinational companies.

"We look forward to working with BBA, PegasusTSI, HyProMag and Cotec to build a leading rare earth magnet business in the United States and other jurisdictions."

HyProMag USA plans to develop a low-cost, low-carbon, sustainable rare earth magnet recycling and production business underpinned by HyProMag Ltd.'s patented hydrogen processing of magnet scrap (HPMS) recycling technology. HyProMag has sublicenced the HPMS technology to HyProMag USA, which is 50:50-per-cent-owned by Cotec and Maginito.

The feasibility study will be based on a hub and spoke model using three HPMS vessels and one magnet manufacturing hub which will based in Texas. The feasibility study will include the completion of detailed engineering designs, as well as permitting and potential site acquisition by the end of 2024, in line with the initial project schedule, which targets initial revenue in 2025/2026. Environment and permiting studies will be supported by U.S.-based Weston Solutions, Inc.

Following completion of the feasibility study, Cotec and Mkango will make a joint decision as to whether HyProMag USA will proceed with the construction of the U.S. project. Cotec is responsible for funding the feasibility study and the project development costs. Financing provided by Cotec would be in the form of shareholder loans to HyProMag USA.

In parallel, HyProMag USA has also started working on securing US Government funding and strategic partnerships for feed supply and recycled NdFeB magnet offtake.

HyProMag is commercializing HPMS recycling technology in the U.K., Germany and United States. HPMS technology was developed at the University of Birmingham, underpinned by approximately $100-million (U.S.) of research and development financing and has major competitive advantages versus other rare earth magnet recycling technologies, which are largely focused on chemical processes but do not solve the challenges of liberating magnets from end-of-life scrap streams -- HPMS provides the solution.

About Mkango Resources Ltd.

Mkango's corporate strategy is to develop new sustainable sources of neodymium, praseodymium, dysprosium and terbium to supply accelerating demand from electric vehicles, wind turbines and other clean technologies. Mkango aims 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.

About Cotec Holdings Corp.

Cotec is an environment, social and governance-focused company investing in innovative technologies that have the potential to fundamentally change the way metals and minerals can be extracted and processed for the purpose of applying those technologies to undervalued operating assets and recycling opportunities, as it transitions into a mid-tier mineral resource producer.

We seek Safe Harbor.