Mr. William Dawes reports

HYPROMAG TO PARTICIPATE IN INNOVATIVE PROJECT TO DEVELOP THE UK'S FIRST CIRCULAR SUPPLY CHAIN FOR WIND TURBINE RARE EARTH MAGNETS

Mkango Resources Ltd.'s HyProMag Ltd. is collaborating with European Metal Recycling Ltd. (EMR), the Offshore Renewable Energy (ORE) Catapult, Magnomatics and University of Birmingham, in a 1.5-million-British-pound project, Re-RE Wind, of which one million British pounds, or 67 per cent, will be funded by Innovate U.K.'s circular critical materials supply chains (Climates) program. The budget for HyProMag's portion of the Project is circa pounds sterling350,000 of which 70% will be funded by the grant. The grant is subject to signature of a collaboration agreement between the parties.

HIGHLIGHTS:

• HyProMag to participate in grant funded project with European Metal Recycling Limited (EMR), the Offshore Renewable Energy (ORE) Catapult, Magnomatics and University of Birmingham
• Re-RE Wind aims to establish the UK's first circular supply chain for rare earth magnets used in wind turbines:
• • sustainable and safe decommissioning of wind turbine nacelles;
  • applications in a new custom-designed generator;
  • design for recycling; and
  • life cycle and technoeconomic assessment.
• The first generation of wind turbines are now nearing their end-of-life, and the Project aims to catalyse a low-carbon decommissioning programme, unlocking a new domestic source of rare earths for the UK
• The Project further cements HyProMag's position as the UK's leading rare earth magnet recycler and underpins plans for scale-up of recycling and magnet manufacturing in the UK

William Dawes, Chief Executive of Mkango, stated: "This Project further cements Mkango's and HyProMag's early mover advantage in the rare earth magnet recycling sector, highlighting its competitive position and strong network of leading industry and academic partners. We look forward to continuing to support HyProMag as it scales up HPMS (Hydrogen Processing of Magnet Scrap) and rolls-out the technology internationally."

Nick Mann, Operations General Manager of HyProMag, stated: "We are very excited about this innovative project and the opportunity to further develop the UK supply chain for rare earth magnet recycling with the support of Innovate UK and an excellent consortium of project partners.

"Re-RE Wind will address the hurdles for recycling of permanent magnets from wind turbines, effectively unlocking a new domestic source of rare earths. It further underpins the scale-up of HyProMag's operations in the UK, whilst complementing other Innovate UK supported projects focused on different scrap streams, such as electronic waste and electric vehicle motors, in which HyProMag is participating."

In August this year, Mkango's 90% owned subsidiary, Maginito Limited ("Maginito"), completed the acquisition of HyProMag (www.hypromag.com), which is commercialising rare earth magnet recycling in the UK, Germany (via HyProMag GmbH), United States (in partnership with CoTec Holdings) and other jurisdictions.

HyProMag's HPMS technology, is a homegrown, innovative technology developed at the University of Birmingham, and has major competitive advantages versus other rare 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. HyProMag's company presentation can be viewed via the following link: HyProMag-Corporate-Introduction-28-July-2023.pdf

A bou t M k an go Resources Ltd.

Mkango's corporate strategy is to develop new sustainable primary and secondary sources of neodymium, praseodymium, dysprosium and terbium to supply accelerating demand from electric vehicles, wind turbines and other clean technologies. This integrated Mine, Refine, Recycle strategy differentiates Mkango from its peers, uniquely positioning the Company in the rare earths sector. Mkango is listed on the AIM and the TSX-V.

Mkango is developing its flagship Songwe Hill rare earths project ("Songwe") in Malawi with a Definitive Feasibility Study completed in July 2022 and an Environmental, Social and Health Impact Assessment approved by the Government of Malawi in January 2023. Malawi is known as "The Warm Heart of Africa", a stable democracy with existing road, rail and power infrastructure, and new infrastructure developments underway.

In parallel, Mkango and Grupa Azoty PULAWY, Poland's leading chemical company and the second largest manufacturer of nitrogen and compound fertilizers in the European Union, have agreed to work together towards development of a rare earth separation plant at Pulawy in Poland (the "Pulawy Separation Plant"). The Pulawy Separation Plant will process the purified mixed rare earth carbonate produced at Songwe Hill.

Through its 90% ownership of Maginito (www.maginito.com), Mkango is also developing green technology opportunities in the rare earths supply chain, encompassing neodymium (NdFeB) magnet recycling as well as innovative rare earth alloy, magnet, and separation technologies.

Following the recent acquisition of HyProMag, Maginito holds a 100% interest in HyProMag focused on short loop rare earth magnet recycling in the UK, a 90% direct and indirect interest (assuming conversion of Maginito's convertible loan) in HyProMag GmbH, a company focused on short loop rare earth magnet recycling in Germany, and a 100% interest in Mkango Rare Earths UK Ltd ("Mkango UK"), a company focused on long loop rare earth magnet recycling in the UK via a chemical route.

A new US subsidiary, to be jointly owned by Maginito and CoTec, will be formed to develop rare earth recycling opportunities in the United States.

Mkango also has an extensive exploration portfolio in Malawi, including the Mchinji rutile exploration project, the Thambani uranium-tantalum-niobium-zircon project and Chimimbe nickel-cobalt project.

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