Mr. William Dawes reports

MKANGO COMPLETES ACQUISITION OF REMLOY

Mkango Resources Ltd., following the announcement on May 20, 2026, has completed the acquisition of the Remloy rare earth magnet recycling business from Heraeus Amloy Technologies GmbH for eight million euros ($9.3-million (U.S.) (1)) in cash, of which five million euros ($5.8-million (U.S.) (1)) was settled by Mkango on closing. The balance of three million euros ($3.5-million (U.S.) (1)) is payable in cash on Aug. 28, 2028, being the second anniversary of completion.

Remloy has developed a plant in Bitterfeld, Germany, which recycles end-of-life rare earth magnets via a melting process (medium-loop recycling) to produce neodymium-iron-boron (NdFeB) alloy powders for the bonded and hot deformed magnet markets. The Remloy process is complementary to HyProMag's short-loop recycling process to produce sintered magnets, and to Mkango Rare Earths U.K.'s long-loop recycling process to produce mixed rare earth carbonates and oxides. Target capacity is at least 500 tonnes per year of NdFeB alloy powder.

Highlights:

• Fully commissioned production facility, supported by significant investment in equipment and feedstock to date, providing a strong foundation for current production and future expansion opportunities;
• Very large stockpile of end-of-life rare earth magnets, rare earth alloys and other raw materials, totalling approximately 345 tonnes as at completion, providing future feedstock for Remloy and HyProMag, thereby helping to underpin their respective growth strategies and providing future trading opportunities;
• Targeting scale-up to full capacity over the next few years with current focus on small-scale production for product optimization and initial sales, sample generation for customers, and continuing offtake discussions to support scale-up of operations;
• Significant synergies with both HyProMag and Mkango.

Former co-head of Heraeus Remloy, David Bender, has been appointed managing director of Remloy with effect from completion, and will work closely with the Mkango and HyProMag teams to grow the business and capture synergies across the group. Mr. Bender will continue to be supported by Karsten Rachut, head of technology, and Matthias Weber, head of operations, together with a strong corporate and operational team already in place.

William Dawes, chief executive officer of Mkango, commented: "We are very pleased to close this transaction, and look forward to working with the Remloy team and all stakeholders to grow the Remloy business within Mkango. Through this transaction, we will further develop and strengthen the rare earth supply chain and ecosystem for recycling and magnet manufacturing in Germany and its neighbours. Mkango is now uniquely positioned across the whole rare earth supply chain in Europe and North America, including projects for recycling, magnet and alloy manufacturing in U.K., Germany and USA, rare earth separation in Poland, and mining in Malawi, with rare earth metal making also under evaluation. Both HyProMag and Remloy can process feedstock derived from recycled end-of-life magnets or from primary rare earth production, whether third party sourced or, in due course, from our own projects, to produce a range of magnet and alloy products, providing customers with a one-stop-shop solution."

Mr. Bender commented: "Remloy is ideally positioned as part of Mkango. Over the past few years, the Remloy team has worked hard to develop the company to this point. We are now entering a crucial phase in which we will make our products available to customers on a larger scale. Customers will benefit from the synergies within the Mkango Group. I am convinced that this arrangement provides a solid basis for expanding production and recycling capacities for rare-earth magnets in Germany and Europe. Our commitment to this mission will significantly contribute to supply chain resilience and security of supply."

Remloy production facility

With Remloy's significant magnet and alloy stockpile, Mkango is now very well positioned in the secondary market for magnetic materials, further enhanced by access to HPMS technology being commercialized by HyProMag, which enables cost-effective and energy-efficient liberation of embedded NdFeB magnets from end-of-life and production scrap streams.

There are significant potential synergies with Mkango and HyProMag, including:

• Enhanced platform for growth in major market for magnetic materials through the development of a further operating site in Germany;
• Supply of end-of-life magnets from the Remloy stockpile for processing by the HyProMag group;
• Supply of feedstock derived from hydrogen processing of magnet scrap (HPMS) by HyProMag to Remloy;
• Technical and grant funding collaboration between Mkango, Remloy, HyProMag, University of Birmingham and Pforzheim University;
• Co-marketing of products from Mkango, HyProMag and Remloy, providing an expanded product suite to customers;
• Future opportunity to supply primary rare earth feedstock from Mkango's Songwe Hill project to Remloy operations for blending with recycled feedstock.

In addition to potential synergies, there are significant growth opportunities through scale-up of existing operations and bolt on opportunities for other rare earth metal and alloy process technologies such as strip casting.

About Mkango Resources Ltd.

Mkango is listed on the 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 Ltd., and its 100-per-cent interest in Remloy 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 and manufacturing in the United Kingdom and Germany, respectively, and a 100-per-cent interest in Mkango Rare Earths U.K. Ltd. (Mkango U.K.), focused on long-loop rare earth magnet recycling via a chemical processing route.

Maginito and CoTec are also expanding HPMS recycling technology into the United States via the 50/50-owned HyProMag USA joint venture company.

Remloy has developed a plant in Bitterfeld, Germany, which recycles end-of-life rare earth magnets via a melting process (medium-loop rare earth magnet recycling) to produce neodymium-iron-boron (NdFeB) alloy powders for the bonded and hot deformed magnet markets, complementary to HyProMag's short-loop recycling process to produce sintered magnets, and to Mkango U.K.'s long-loop recycling process to produce mixed rare earth carbonates and oxides.

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 Corporation (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's subsidiary, Mkango Rare Earths Ltd., signed a business combination agreement with Crown PropTech Acquisitions to list the Songwe Hill and Pulawy rare earths projects on the Nasdaq Stock Market via an SPAC (special-purpose acquisition company) merger.

(1) Euro amounts have been converted into U.S. dollars at a rate of one euro to $1.16 (U.S.).

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