Mr. William Dawes reports

MKANGO RESOURCES LIMITED ANNOUNCES HYPROMAG TO PARTICIPATE IN POUNDS STERLING11M PULSE PROJECT

HyProMag Ltd. is participating in the 11-million-British-pound-grant-funded Pulse project. HyProMag is 100 per cent owned by Maginito Ltd., which is 79.4 per cent owned by Mkango Resources Ltd. and 20.6 per cent owned by Cotec Holdings Corp.

Highlights:

• HyProMag, a pioneering rare earth magnet recycler and manufacturer, is participating in the 11-million-British-pound Pulse project, which is partly funded by the United Kingdom government through the Advanced Propulsion Centre U.K. (APC).
• HyProMag will collaborate with four industrial partners in the project -- Protean Electric, Unipart Manufacturing, Viritech and Transense Technologies PLC -- as well as Coventry University and the Warwick Manufacturing Group (WMG).
• Pulse will deliver the first in-wheel motor (IWM) that will use recycled magnets, produced by HyProMag's in-house magnet manufacturing capability, coupled with its patented hydrogen processing of magnet scrap (HPMS) technology, developed at the University of Birmingham, to further strengthen the United Kingdom supply chain for rare earth magnet materials and pathway to net zero.

The project will be led by Protean and will deliver a first-of-its-kind flexible assembly line for power electronics systems used by IWM and other net-zero products. IWM generates power directly in a vehicle's wheels. By moving power to the wheel, drivers get improved torque response, enhanced handling, faster acceleration, less charging and greater range.

William Dawes, chief executive of HyProMag, stated: "We are very pleased to be part of this groundbreaking project and to work with a leading consortium in the field of electric vehicle innovation, validating HyProMag's HPMS technology and positioning the company at the forefront of rare earth magnet recycling technology development and commercialization."

Dr. Rob Arnold, technical manager of HyProMag, stated: "This consortium has a great commitment to sustainability and scaling the manufacturing capability in the U.K., so we are proud to join Project Pulse and continue returning manufacture of NdFeB [neodymium] sintered magnets to the U.K. Building on our existing relationship with Protean, this project will see HyProMag deliver a world first by incorporating short-loop recycled magnets into Protean's in-wheel motor technology, delivering a huge reduction in embedded CO2 [carbon dioxide]."

Continuing HyProMag's existing relationships with IWM manufacturer Protean and former Rare project partner Unipart, Project Pulse will expand the IWM market while directly incorporating state-of-the-art power electronics. Other industrial partners include fuel-cell electric vehicle (FCEV) powertrain expert Viritech and sensor technology specialist Transense; whilst academic partners Coventry University and WMG complete the consortium.

Pulse will accelerate development and industrialization of IWM and fuel-cell technology. Additionally, creation of a flexible power electronics manufacturing capability and a focus on sustainable manufacturing innovation will lead to significant job creation and safeguarding while simultaneously saving in excess of one million tonnes of CO2 per year in the United Kingdom.

Apart from the opportunity to advance the application and commercialization of HPMS and related magnet manufacturing and to further develop its network of relationships with leading industrial and academic partners, HyProMag will also receive 43,000 British pounds in grant funding as part of the project.

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, which is owned 79.4 per cent by Mkango and 20.6 per cent by Cotec Holdings, 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.

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