Mr. William Dawes reports

MKANGO MAGNETIC MATERIALS LIMITED ANNOUNCES HYPROMAG GERMANY ANNOUNCED AS A STRATEGIC PROJECT

Mkango Magnetic Materials Ltd.'s subsidiary, HyProMag GmbH, has been named as a strategic project under the European Union Critical Raw Materials Act (CRMA). Strategic status confirms the importance of HyProMag in securing reliable access to critical raw materials which are essential for European industry.

Three of the company's projects have now been designated as strategic projects under the CRMA:

• October, 2026 -- HyProMag GmbH rare-earth magnet recycling and manufacturing plant, Pforzheim, Germany;
• June, 2025 -- Songwe Hill rare-earths mine development project, Malawi;
• March, 2025 -- Pulawy rare-earths separation project, Poland.

HyProMag's plant in Pforzheim is currently being commissioned and will have a minimum initial capacity of approximately 100 tonnes per annum of neodymium-iron-boron (NdFeB) magnets and alloys increasing to up to circa 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 an ongoing basis to support the scale-up of operations with strong interest in the HyProMag product suite.

About Mkango Magnetic Materials 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 the Remloy business acquired by its wholly owned German subsidiary, 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., focused on long-loop rare-earth magnet recycling in the U.K. via a chemical processing route.

Maginito and CoTec are also expanding hydrogen processing of magnet scrap (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 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. On grant of the large-scale mining licence the government of Malawi may elect to take a free 10-per-cent interest in the entity holding that licence. 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 Rare Earths Ltd. (MKAR) has signed a business combination agreement with Crown PropTech Acquisitions (CPTK) to list the Songwe Hill and Pulawy rare-earths projects on Nasdaq via a SPAC merger (the proposed business combination) under the name Mkango Rare Earths Ltd.

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