Mr. Alexander Lemon of Mkango Resources reports

MKANGO RESOURCES LIMITED ANNOUNCES HYPROMAG USA FINALISES LONG TERM LEASE

Mkango Resources Ltd. and Cotec Holdings Corp.'s HyProMag USA LLC has finalized a lease agreement for its proposed rare earth magnet recycling and manufacturing facility in Dallas-Fort Worth, Tex. HyProMag USA's first facility will be located at Ironhead Commerce Center, Building 1, Dallas-Fort Worth, Denton county, Texas. This project site is strategically located next to critical infrastructure, the BNSF intermodal rail link and the Alliance airport. The milestone marks the next phase in HyProMag USA's project expansion and underscores its commitment to building a fully domestic, circular supply chain for rare earth magnets critical to revitalizing U.S. industry and to provide a long-term domestic supply of critical minerals.

The Texas facility will leverage the patented hydrogen processing of magnet scrap (HPMS) technology -- developed by the Magnetic Materials Group at the University of Birmingham with over 25 years of R&D (research and development) and exclusively licensed to HyProMag Ltd., a 50-per-cent partner in HyProMag USA, to recover and remanufacture rare earth magnets from end-of-life products. HyProMag USA targets commissioning the Texas facility by mid-2027, subject to final permitting and financing, and anticipates creating approximately 90 to 100 skilled jobs in magnet manufacturing, engineering and advanced materials processing. HyProMag USA has collaborated closely with the Town of Northlake to advance the Texas facility. Additionally, the company has also established and expanded its feedstock supply partnership with Intelligent Lifecycle Solutions (ILS), a global electronics recycling company, which has commenced stockpiling magnet-bearing materials to support commissioning of HyProMag's U.S. operations.

HyProMag USA will occupy 50 per cent of Building 1 at Ironhead Commerce Center, approximately 128,000 square feet. The Texas facility will serve as the central hub of HyProMag USA's hub and spoke short-loop network, which includes planned preprocessing facilities in Nevada and South Carolina. The project's modular design allows for faster replication across the United States, providing a more scalable blueprint for restoring rare earth magnet production and reducing reliance on overseas sources.

Julian Treger, chief executive officer of Cotec, commented: "Finalizing the Texas facility lease represents another major milestone in HyProMag USA's mission to deliver a secure, sustainable rare earth magnet supply chain in the United States. With the site secured and local partnerships in place, we're moving decisively toward completing financing, construction and the first commercial-scale production of recycled magnets in the United States."

Will Dawes, Mkango chief executive officer and HyProMag USA director, commented: "The Texas facility being developed by HyProMag USA will help to transform rare earth supply chains in the United States. Together with our partners, we're building the foundation for a resilient domestic magnet sector that supports the next generation of clean energy and technology manufacturing."

HyProMag USA feasibility study

The independent feasibility study on the development of a state-of-the-art rare-earth magnet recycling and manufacturing operation in the United States. includes the Texas facility, and two preprocessing facilities located in South Carolina and Nevada. 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. As reported in the feasibility study, the Texas facility's annual production is estimated to be 750 metric tonnes per annum of recycled sintered neodymium-iron-boron (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 that the Texas 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 anticipated creation of approximately 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 a 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 and the commissioning of a concept study to evaluate long-loop recycling with Worley Group Inc.

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 Ltd., which is owned 79.4 per cent by Mkango and 20.6 per cent by Cotec Holdings, 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 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 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 dated July 2, 2025, with Crown Prop Tech Acquisitions (CPTK) to list the Songwe Hill and Pulawy rare earths projects on the Nasdaq Stock Market through a special-purpose acquisition vehicle (SPAC) merger under the name Mkango Rare Earths Ltd.

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