Mr. William Dawes of Mkango Resources reports

MKANGO RESOURCES LIMITED ANNOUNCES HYPROMAG USA PURCHASE INSERMA PRE-PROCESSING UNITS

Mkango Resources Ltd. and Cotec Holdings Corp.'s HyProMag USA LLC has purchased three skid-mounted Inserma Anoia SL magnet and printed circuit board (PCB) separation units. The Inserma and PCB units can be co-located at hyperscale data centres or HyProMag shredding and recycling facilities. These Inserma units rapidly remove (at less than two seconds per hard disk drive (HDD)) the voice coil motor (VCM) containing the rare earth magnet, providing a highly concentrated feed for subsequent hydrogen processing of magnet scrap (HPMS) by HyProMag USA at the Texas facility. The technology package will further complete the separation and removal of the PCBs, which contain precious metals, for recycling and sale. The three units will be located and operated by Intelligent Lifecycle Solutions LLC (ILS) as it continues stockpiling of feedstock for the Fort Worth facility.

Julian Treger, chief executive of Cotec Holdings, commented: "We are very excited to see the rapid development of the Inserma partnership. Preprocessing technologies are a key enabler and competitive advantage for HyProMag USA as it progresses with the purchase of feedstock. The company is continuing to progress its discussions with the rapidly expanding hyperscale data centre providers and offers a closed-loop and secure recycling network within the United States at the lowest cost and lowest carbon footprint. Furthermore, the batch process design of the Texas facility with separate individual feedstock waste streams supports consistent finished grades of magnets and blocks."

Will Dawes, chief executive officer of Mkango, commented: "The combination of HPMS and Inserma technologies delivers a cost-effective, low-CO2 [carbon dioxide] and flexible solution for the recycling of rare earth magnets from HDDs, utilized in hyperscale data centres and other applications. These technologies, coupled with the very significant AI-driven [artificial intelligence] growth anticipated for hyperscale data centres, will unlock additional sources of feedstock to support HyProMag's rapid growth profile. The latter is further supported by accelerating demand for HyProMag's recycled rare earth magnet products, geared to growth in physical AI, electric mobility, clean energy and other applications, together with a geopolitical backdrop driving government-supported development of independent and robust domestic supply chains."

HyProMag USA feasibility study

The feasibility study includes the Texas hub and two preprocessing facilities, located in South Carolina and Nevada, respectively. 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. The Texas hub's annual production is expected to be 750 metric tonnes per annum of recycled sintered NdFeB (neodymium-iron-boron) 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 the production 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 creation of 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 an exceptionally low-CO2 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.

In September, 2025, HyProMag USA announced the commissioning of a concept study to evaluate long-loop recycling with Worley Group Inc.

Inserma partnership

In September 2024, Maginito Ltd. secured an exclusive agreement with Inserma to commercialize automated preprocessing of hard disc drives, loudspeakers and electric motors for HyProMag.

About HyProMag USA LLC

HyProMag USA is owned 50/50 by Cotec Holdings and HyProMag Ltd. HyProMag Ltd. is 100 per cent owned by Maginito Ltd., which is owned on a 79.4-per-cent/20.6-per-cent basis by Mkango and Cotec.

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 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 has signed a business combination agreement with Crown PropTech Acquisitions to list the Songwe Hill and Pulawy rare earths projects on the Nasdaq Stock Market through a special-purpose-acquisition-company (SPAC) merger.

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