Mr. Nick Mann of Mkango reports

MKANGO RESOURCES LIMITED - HYPROMAG TO COLLABORATE WITH AREERA

Pursuant to a non-binding term sheet, HyProMag Ltd. is collaborating with Areera Ltd. on the recovery and recycling of rare earth magnets embedded within speaker assemblies associated with a range of display equipment. HyProMag is 100 per cent owned by Maginito Ltd., a subsidiary of Mkango Resources Ltd. (79.6 per cent) and Cotec Holdings Corp. (20.4 per cent).

Highlights:

• HyProMag is collaborating with Areera, which has developed Europe's most technologically advanced screen-based recycling facility in West Yorkshire, United Kingdom.
• The collaboration is focused on recovery and recycling of rare earth magnets embedded within speaker assemblies associated with a range of display equipment.
• In parallel, HyProMag and Areera are working with Inserma and Rise Research Institutes of Sweden on the preprocessing of speakers and automated sorting to provide a concentrated feed of NdFeB (neodymium/iron/boron) magnets for recycling through the hydrogen processing of magnet scrap (HPMS) technology.
• Rare earth magnets derived from speakers represent a major market opportunity for recycling in the United Kingdom and other jurisdictions, given that minimal quantities are currently recovered, with the majority currently lost to landfill -- this collaboration can unlock that potential.

Nick Mann, managing director of HyProMag, stated: "This collaboration unlocks an additional feed source for HPMS and allows HyProMag and Areera to recycle critical materials that are currently lost in traditional recycling routes. It is very encouraging that Areera sees the benefit of the technology developed by Inserma and Rise as well as the solution that the HPMS process presents. HyProMag is looking forward to further developing this supply chain."

Craig Thompson, chief executive of Areera, stated: "Areera is excited to have partnered with HyProMag on the recovery of critical rare earth materials from speakers in televisions and monitors, an EU [European Union] and U.K. first. This demonstrates one of the benefits of Areera's unique separation process for recycling of display equipment without shredding of whole screens."

Pursuant to the collaboration, HyProMag partners Inserma and Rise have developed an automated sorting system, combining AI (artificial intelligence) vision and magnetic imaging, which successfully sorts and separates speakers containing NdFeB magnets for recycling from those containing ferrite magnets. This system is currently being trialled on speaker assemblies supplied by Areera. Speakers containing NdFeB magnets are then further processed by Inserma using a bespoke preprocessing technology to provide a concentrated feed for HyProMag.

The ultimate objective is to deploy automated sorting and preprocessing units, developed by Inserma, to Areera sites in the United Kingdom to provide speaker-derived NdFeB feedstock to HyProMag. This enables Areera to capture more value from its scrap streams, unlocks a new source of NdFeB feedstock supply for HyProMag and is aligned with both companies' visions for development of sustainable, circular supply chains.

Although there can be no certainty at this stage given the non-binding nature of the term sheet, the directors remain confident that the term sheet will lead to a binding definitive agreement between the parties; and, in the meantime, the collaboration is already under way. Further announcements will be made as appropriate.

About HyProMag Ltd.

HyProMag is commercializing the patented hydrogen processing of magnet scrap (HPMS) technology in the United Kingdom (2025), Germany (2025) and United States (2027) and evaluating other jurisdictions, including a collaboration with Envipro in Japan.

HPMS technology was developed at the University of Birmingham Magnetic Materials Group and is exclusively licensed to HyProMag. The technology is underpinned by approximately $100-million (U.S.) of research and development financing and has major competitive advantages versus other rare earth magnet recycling technologies, which are largely focused on chemical processes but do not solve the challenges of liberating magnets from end-of-life scrap streams; HPMS provides this solution.

HyProMag was one of the first projects to be selected by the Minerals Security Partnership for support given its strong potential to contribute toward the development of responsible critical mineral supply chains.

About Mkango Resources Ltd.

Mkango is listed on the AIM (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, 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 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 HPMS recycling technology into the United States through the 50/50-owned HyProMag USA LLC joint venture company.

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 and the Pulawy rare earth separation project in Poland.

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