Mr. William Dawes reports

MKANGO MAGNETIC MATERIALS LIMITED ANNOUNCES PROPOSED FUNDRAISING & CAPITAL ACCESS WINDOW

Mkango Magnetic Materials Ltd. intends to utilize the Alternative Investment Market's (AIM) capital access window in connection with a proposed fundraise.

The proposed fundraising would supplement the company's existing cash reserves and be applied toward capital expenditure to support the scale-up of the company's recycling and rare earth magnet manufacturing operations as well as general working capital.

Following the updates to the AIM rules for companies announced in August, 2026, to support the proposed fundraising, the company will enter a capital access window with effect from 7:30 a.m. United Kingdom time today on AIM. Trading of the common shares of the company on the TSX Venture Exchange will be halted with effect from the opening of trading hours in Toronto today. The trading halt on the TSX-V will remain in place for the duration of the capital access window on AIM.

This is a voluntary temporary pause in the trading of the company's shares on AIM and TSX-V to enable the company to reach a broader range of investors and to provide pricing stability during a fundraise. If undertaken, the company intends to include an offer to retail investors as part of the proposed fundraising. The capital access window and trading halt will remain in place until a further announcement is made detailing the results of the proposed fundraising.

About Mkango Magnetic Materials Ltd.

Mkango is listed on the AIM and the TSX-V. 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, which is owned 79.4 per cent by Mkango and 20.6 per cent by Cotec Holdings, 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 indirect interest 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 United Kingdom through a chemical processing route.

HyProMag GmbH has been selected as a strategic project under the European Union Critical Raw Materials Act.

Maginito and Cotec are also expanding HPMS (hydrogen processing of magnet scrap) recycling technology into the United States through 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 through 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 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, as has HyProMag GmbH. 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. MKAR has signed a business combination agreement with CPTK to list the Songwe Hill and Pulawy rare earths projects on Nasdaq through a special-purpose acquisition company (SPAC) merger under the name Mkango Rare Earths.

We seek Safe Harbor.