Mr. William Dawes reports

MKANGO RESOURCES LIMITED ANNOUNCES FIRST COMMISSIONING RUNS IN HYPROMAG GERMANY

Mkango Resources Ltd.'s HyProMag GmbH has completed the first commissioning runs for the commercial-scale hydrogen processing of magnet scrap (HPMS) vessel at its rare earth magnet recycling and manufacturing plant located in Pforzheim, Germany. The plant consists of a commercial-scale rare earth sintered magnet recycling and manufacturing line, underpinned by the patented HPMS technology. The plant is fully permitted for production of up to 750 tonnes per annum of neodymium-iron-boron (NdFeB) magnets and alloys, and HyProMag is targeting phased scale-up to this level over the next three years.

Development of the plant was partly financed by the European Regional Development Fund and the Ministry of Economic Affairs, Labour, and Tourism Baden-Wurttemberg.

An opening ceremony of the plant is scheduled for April 28, 2026, and will be presided over by the German Federal Ministry for Economic Affairs and Energy.

Highlights:

• The HPMS vessel is fundamental to the plant, producing a high-grade, recycled NdFeB alloy powder for commercial sale and to feed the downstream magnet manufacturing line.
• The jet mill for processing of NdFeB alloy powder for magnet manufacturing has been installed, and commissioning will be completed in the coming weeks.
• Other major equipment for the plant, including the transverse alignment press and the sintering furnace for manufacturing of sintered magnet blocks, have been delivered, with installation and commissioning taking place sequentially.
• The expansion and upgrade of the plant infrastructure have been completed, including the installation of gas storage facilities (gas tank and storage systems) and the power supply upgrade through a new transformer station.
• Once fully commissioned, the plant will have a minimum initial capacity of approximately 100 tonnes per annum of NdFeB, increasing to up to around 350 tonnes per annum with multiple shifts. A further expansion to a targeted 750 tonnes per annum is under evaluation.
• HyProMag is engaging with multiple customers for NdFeB alloy powder and magnets on a continuing basis to support the scale-up of operations.

Will Dawes, chief executive officer of Mkango, commented: "This is a major milestone for HyProMag, creating a strong platform for further scale-up at our site in Pforzheim and beyond. We continue to evaluate complementary acquisition and organic growth opportunities in the rare earths supply chain and see the growing rare earths ecosystem in Germany as one of the cornerstones of our growth strategy. With the rare earth magnet recycling and manufacturing plants being scaled up and developed by HyProMag in U.K. and USA and Mkango's advanced-stage rare earth mining and separation projects in Malawi and Poland, we are well positioned to provide customers with a one-stop-shop solution for rare earth products across the supply chain."

Nelson Brito, managing director of HyProMag, commented: "With first commissioning of the HPMS vessel successfully completed, we are now entering the next phase of scaling operations and delivering high-quality recycled NdFeB materials to the market. This milestone represents a significant step towards strengthening Europe's strategic autonomy in rare earth supply, reducing external dependencies and supporting the objectives of EU industrial and climate policy. HyProMag is proud to contribute to building a resilient, sustainable and sovereign rare earth value chain in Europe."

Carlo Burkhardt, founding director of HyProMag, commented: "I am delighted to see the plant progress to this stage of development and look forward to welcoming all stakeholders and supporters of the project to the site on April 28. We are excited for the next stages of development and optimistic we can make a real difference to the development of more robust supply chains in Europe."

The NdFeB product from HPMS has a total rare earth content (neodymium/praseodymium together with dysprosium/terbium) exceeding 28 per cent, which is analogous to the typical NdFeB alloy content specification for magnet manufacture, whilst, as a recycled product, having a significantly lower CO2 (carbon dioxide) footprint relative to both primary (mined) and other recycled (chemical/long-loop) NdFeB products.

HPMS technology was developed by the magnetic materials group at the University of Birmingham (UoB) and is underpinned by approximately $100-million (U.S.) of research and development financing. HyProMag is the exclusive licensee of HPMS technology from the UoB.

HyProMag was established to commercialize HPMS technology in Germany and the European Union, further support policy initiatives to strategically strengthen European rare earth supply chains, and accelerate the green transition. First commissioning is a major milestone in the execution of this strategy.

Global recycling and magnet manufacturing strategy

In parallel with development of the plant in Germany, HyProMag is commercializing HPMS technology in the United Kingdom and the United States and is also evaluating other jurisdictions, including Japan, Canada and South Korea. In the United Kingdom, a rare earth magnet recycling and manufacturing plant has been developed at Tyseley Energy Park, Birmingham, in conjunction with the University of Birmingham, with initial production under way.

HyProMag USA LLC has completed a feasibility study for a large-scale rare earth magnet recycling and manufacturing operation in the United States, with detailed engineering work under way and first production targeted in 2027.

About Mkango Resources Ltd.

Mkango is listed on the AIM (Alternative Investment Market) and the TSX-V Stock 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 Ltd., and 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 expanding HPMS recycling technology into the United States through the 50/50-owned HyProMag USA joint venture company.

Mkango currently owns 100 per cent of the advanced-stage Songwe Hill rare earths project in Malawi and the proposed Pulawy rare earths separation plant in Poland. Both the Songwe and Pulawy projects have been selected as strategic projects under the European Union Critical Raw Materials Act. Songwe has also received development funding from the U.S. International Development Finance Corp. (DFC), the U.S. government's development finance institution, securing $4.6-million (U.S.) in reimbursable funding for front-end engineering and design. Mkango 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 under the name Mkango Rare Earths Ltd.

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