Mr. Alexander Lemon reports

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION PROVIDES PROJECT DEVELOPMENT FUNDING OF US$ 4.6 MILLION TO THE SONGWE HILL RARE EARTH MINING PROJECT IN MALAWI

Mkango Resources Ltd.'s indirect wholly owned subsidiary, Lancaster Exploration Ltd. (MKAR, to be renamed Mkango Rare Earths Ltd.), has entered into a project development funding agreement with the U.S. International Development Finance Corp. (DFC), the U.S. government's development finance institution, to secure $4.6-million (U.S.) in reimbursable funding as part of the DFC's project development strategy for the Songwe Hill rare earth project in Malawi.

Receipt of the project development funding is subject to satisfaction of certain conditions set out in the agreement. The funds are expected to support project development activities in the form of front-end engineering design (FEED) and value engineering studies. A copy of the agreement will be filed under the company's profile on SEDAR+.

Project development funding is to be equally matched by MKAR contributions over the next 18 months. The funds will need to be repaid to the DFC only if, within 10 years of the signing of the agreement, MKAR obtains financing sufficient to initiate construction, operations or other material implementation of the project. Further, for a period until five years after the termination of the agreement, the DFC will have the right (but not the obligation) to directly provide and/or arrange for financing or investment for the project on commercial terms substantially comparable with or better than the terms of other financing options available to finance the project when considered in conjunction with the other benefits brought by DFC to the project in connection with the project development.

The DFC's project development product is part of the U.S. Better Utilization of Investments Leading to Development (BUILD) Act and provides support for high-impact companies to overcome operational, financial and developmental challenges, thereby enhancing project viability and readiness for future investment. Project development funding is tailored for projects with the potential to receive later DFC financing.

Further funding for MKAR or the project is at the discretion of the DFC and will be contingent on the successful completion of associated FEED and value engineering studies.

Alexander Lemon, president and founding director of Mkango, commented: "I am delighted to announce the participation of the DFC to assist MKAR to fast-track the development of the Songwe Hill rare earth mining project in Malawi. The DFC recognizes the game-changing development potential of the project and this initial project development funding provides a path for MKAR to secure the longer-term development funding needed to develop Songwe Hill and position the Mkango group as one of the few key players in the global rare earth supply chain."

About Mkango Resources Ltd.

Mkango is listed on the AIM (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 Corp., 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 HyProMag's recycling technology into the United States through the 50/50-owned HyProMag USA LLC joint venture company.

Mkango also owns the advanced-stage Songwe Hill project, a rare earths, uranium, tantalum and niobium exploration portfolio in Malawi, as well as the Pulawy rare earths separation project in Poland. Both the Songwe Hill and Pulawy projects have been selected as strategic projects under the European Union Critical Raw Materials Act.

Pulawy, located in a special economic zone in Poland, stands adjacent to the European Union's second-largest manufacturer of nitrogen fertilizers and features established infrastructure, access to reagents and utilities on site.

Mkango has signed a business combination agreement (BCA) with Crown PropTech Acquisitions (CPTK) to list the Songwe Hill and Pulawy rare earths projects on Nasdaq through a business combination. Completion of the proposed business combination is subject to satisfaction of the conditions set forth in the BCA.

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