Mr. Will Dawes of Mkango reports

MKANGO SUBSIDIARY, MAGINITO, AND COTEC FORM US JOINT VENTURE

Mkango Resources Ltd.'s Maginito Ltd. and Cotec Holdings Corp. have entered into a binding letter agreement pursuant to which they have agreed a 50:50 joint venture in relation to the United States rollout of HyProMag's rare earth magnet recycling technology. HyProMag's technology will be sublicensed to the new joint venture company, HyProMag U.S., on formation.

HyProMag is 100 per cent owned by Maginito, which is owned on a 90:10 basis by Mkango and Cotec. HyProMag is commercializing rare earth magnet recycling using hydrogen processing of magnet scrap (HPMS) technology in the United Kingdom, Germany and United States, with first production expected in the U.K. in 2023 and in Germany in 2024. Revenue from the U.S. joint venture is targeted for 2025/2026.

The joint venture will initially be focused on completing a scoping study and a bankable feasibility study for the deployment of three HPMS vessels utilizing the HyProMag technology and one magnet manufacturing facility in the U.S. The feasibility study is expected to be completed in 2024. Following completion of the feasibility study, Cotec and Mkango would make a joint decision on whether the joint venture will proceed with the construction of the U.S. project.

Cotec will finance the initial operations of the joint venture, including the costs of the feasibility study. If the joint venture proceeds with the construction of the U.S. project, Cotec will also be responsible for financing all the development costs of the U.S. project, with a total expected financing of 30 million pounds sterling to 50 million pounds sterling during the first three years postcompletion of the feasibility study, subject to results of the feasibility study. All financing provided by Cotec would be in the form of shareholder loans. Cotec and Mkango also expect that the joint venture will seek U.S. government financing for the U.S. project.

The parties have agreed that certain long lead items could be preordered to expedite, subject to approval, the development of the U.S. project. A comprehensive joint venture agreement dealing with all other commercial aspects of the U.S. project, consistent with the terms of the existing co-operation agreement between Cotec and Mkango, will be agreed by the parties in parallel with the completion of the feasibility study.

Julian Treger, Cotec chief executive officer, commented: "This is a major step forward for Cotec and Mkango/Maginito and we are looking forward to working with the Mkango and HyProMag teams on this very exciting, proven and much needed technology in the U.S. targeting the long-term supply of low-cost, sustainable recycled rare earth magnets.

"The U.S. presents a significant opportunity for the HyProMag technology and the technical skills of Mkango and HyProMag combined with CoTec's commercial strength could potentially provide shareholders with a unique and robust value proposition in the rare earth industry in the right jurisdiction at the right time.

"We look forward to working and collaborating with local, state and federal stakeholders targeting the completion of the feasibility study."

Will Dawes, Mkango CEO, commented: "We see a very significant opportunity in the U.S. market and look forward to working with Cotec and HyProMag as we move into the next phase of growth.

"Less than 5 per cent of rare earth magnets are currently recycled from end-of-life products. Increasing recycling rates via HyProMag's HPMS technology solution to unlock this new potential source of rare earths, thereby avoiding waste to landfill and significantly reducing the carbon footprint, can make a major contribution to creating more sustainable and robust rare earth supply chains across multiple jurisdications."

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 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 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.

About Cotec Holdings Corp.

Cotec is a publicly traded investment issuer listed on the Toronto Venture Stock Exchange and the OTCQB. The company 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 the company transitions into a mid-tier mineral resource producer.

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