Mr. Will Dawes of Mkango Resources reports

HYPROMAG'S RARE EARTH MAGNET RECYCLING TECHNOLOGY SELECTED AS A MINERALS SECURITY PARTNERSHIP PROJECT

Mkango Resources Ltd. and Cotec Holdings Corp. have noted that HyProMag Ltd.'s rare earth magnet recycling technology has been selected by the Minerals Security Partnership (MSP) for support as one of its key projects. The technology was selected by the MSP because the MSP determined its strong potential to contribute toward the development of responsible critical mineral supply chains.

The MSP was formed in 2022 by 14 governments and aims to ensure adequate supplies of minerals such as rare earths to meet net-zero-carbon goals. It aims to support public and private sector investments building diverse, secure and responsible global critical minerals supply chains.

Partner governments includes the United Kingdom, the United States, Australia, Canada, Finland, France, Germany, Japan, India, the Republic of Korea, Norway, Sweden and the European Union.

The MSP promotes responsible growth across the critical minerals sector via a shared commitment to high environmental, social and governance (ESG) standards, sustainability, and shared prosperity. The MSP partner governments regard the further development of responsible and resilient supply chains to be critically important for an equitable and sustainable energy transition.

As MSP announced today, the MSP is committed to leveraging the collective financial and diplomatic resources of its 14 partners by deepening collaboration between governments, project developers and investors to drive responsible investment in critical minerals projects.

HyProMag utilizes hydrogen to recycle rare earth magnets vital for the global energy transition by liberating them from end-of-life scrap.

MSP U.K. government announcement

Julian Treger, Cotec chief executive officer, commented: "This exciting development is a strong validation of HyProMag's REE recycling technology and further demonstrates its attractiveness and potential, both from a strategic and commercial perspective.

"Cotec's strategy is to align its technologies and assets with the UN Sustainable Development Goals and its involvement with HyProMag is just one example of how we strive to achieve this goal. Cotec and Mkango are looking forward to working with the MSP to expedite the rollout of the technology. The MSP provides a key platform from which strategically aligned governments and companies can commercialize new proven technologies as part of the energy transition towards a low-carbon and sustainable future."

Will Dawes, Mkango CEO, commented: "HyProMag is one of only 17 projects selected across the entire critical minerals sector to receive support from the MSP.

"We see this as a significant endorsement of the technology, which can make a substantial impact in unlocking the supply chain for rare earth magnet recycling from end-of-life products and enabling the production of rare earth alloys and magnets with a significantly reduced carbon footprint."

HyProMag

HyProMag is commercializing rare earth magnet recycling using hydrogen processing of magnet scrap (HPMS) technology, which can liberate and recycle magnets from end-of-life scrap.

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.

Having commissioned the U.K.'s first rare earth magnet recycling pilot plant at the University of Birmingham in 2022, alongside the U.K.'s only facility to make sintered rare earth magnets, HyProMag, together with the University of Birmingham, is developing a large-scale recycling plant at Tyseley Energy Park, Birmingham, with first production by the end of this year and supported with funding from U.K. Research and Innovation. Investment from Mkango Resources in 2020 helped scale up and catalyze international growth initiatives, including in Germany, where HyProMag has established a sister company, HyProMag GmbH, and in the U.S. through a new Maginito-Cotec 50:50 joint venture company, with evaluation of other jurisdictions underway. Maginito (79.4 per cent Mkango; 20.6 per cent Cotec) acquired HyProMag in 2023.

In line with MSP's commitment to recycling and reuse, the development of new sources of recycled rare earths can accelerate development of sustainable and competitive rare earth magnet production.

Maginito

Maginito is a U.K.-based company owned 79.4 per cent by Mkango and 20.6 per cent by Cotec. It is focused on 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.

Maginito holds a 100-per-cent interest in HyProMag 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 U.K. and Germany, and a 100-per-cent interest in Mkango Rare Earths U.K. Ltd., a company focused on long-loop rare earth magnet recycling in the U.K. via a chemical route.

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. Mkango is listed on the Alternative Investment Market and the TSX Venture Exchange.

About Cotec Holdings Corp.

Cotec is a publicly traded investment issuer listed on the TSX Venture Exchange and the OTCQB and trades under the symbol CTH and CTHCF, respectively. The company is focused on investing in innovative technologies which 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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