Mr. William Dawes reports

MKANGO CLOSES POUNDS STERLING1.25M (C$2.19M) PRIVATE PLACEMENT

Further to its announcement of Aug. 21, 2024, Mkango Resources Ltd. has closed a private placement to raise gross proceeds of 1.25 million British pounds (approximately $2.2-million) through the issuance of 25 million common shares of the company at a price per subscription share of five pence (approximately 8.8 cents).

Accordingly, 25 million subscription shares have now been issued pursuant to the private placement. The subscription shares are subject to a statutory hold period in Canada expiring on Jan. 5, 2025.

Furthermore, 25 million warrants (one warrant for each subscription share) have been issued. Each warrant will entitle the holder to acquire one common share at a price of seven pence per common share for a period of three years following the closing of the subscription (up until Sept. 4, 2027)

In addition to the subscription shares and warrants, the company has issued an aggregate of 1.25 million warrants to Jub Capital Management LLP. Each broker warrant is exercisable for a period of three years with an exercise price of five pence per broker warrant. The warrants and broker warrants (and the underlying shares) are subject to a statutory hold period in Canada expiring on Jan. 5, 2025.

The net proceeds of the subscription, after fees, are 1,187,500 British pounds (approximately $2.1-million). The company intends to use the net proceeds of the subscription to acquire additional equipment for the 2025 commercial development of rare earth magnet recycling operations at Tyseley Energy Park in Birmingham, United Kingdom, and at Pforzheim, Germany, by HyProMag Ltd. and HyProMag GmbH, in addition to working capital.

Admission to trading on AIM (Alternative Investment Market) and total voting rights

The subscription shares will rank pari passu with the company's existing shares and application has been made for the subscription shares to be admitted to trading on AIM. It is expected that admission will become effective and dealings in the subscription shares will commence at 8 a.m. on Sept. 5, 2024.

In accordance with the disclosure guidance and transparency rules (DTR 5.6.1R), the company hereby notifies the market that, immediately following admission of the subscription shares, its issued and outstanding share capital will consist of 293,453,574 shares. The company does not hold any shares in treasury. Shareholders may use this figure as the denominator for the calculations by which they will determine if they are required to notify their interest in or a change to their interest in the company under the Financial Conduct Authority's disclosure and transparency rules.

The subscription shares will also be listed for trading on the TSX Venture Exchange and will be subject to a statutory hold period in Canada expiring on Jan. 5, 2025.

About Mkango Resources 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 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 LLC joint venture company. HyProMag is also evaluating other jurisdictions and recently launched a collaboration with Envipro on rare earth magnet recycling in Japan.

Mkango also owns the advanced-stage Songwe Hill rare earth project and an extensive rare earth, uranium, tantalum, niobium, rutile, nickel and cobalt exploration portfolio in Malawi as well as the Pulawy rare earth separation project in Poland.

We seek Safe Harbor.