Hypromag USA Project Update FOR Its Rare Earth Magnet Recycling and Manufacturing Plants

MKANGO RESOURCES LTD.

550 Burrard Street

Suite 2900

Vancouver

BC V6C 0A3

Canada

HYPROMAG USA PROJECT UPDATE FOR ITS

RARE EARTH MAGNET RECYCLING AND MANUFACTURING PLANTS

IN THE UNITED STATES

London / Vancouver: 15 September 2025 - Mkango Resources Ltd (AIM / TSX-V:MKA) (the “Company” or

“Mkango”) is pleased to announce that HyProMag USA, LLC (“HyProMag USA”) has provided an update on its

engineering, procurement and construcXon management (“EPCM”) Detailed Design phase (“Detailed Design”).

U.S.-based PegasusTSI Inc. (“PegasusTSI”) and Canada-based BBA USA Inc. ("BBA") have been engaged to

complete the EPCM services for HyProMag USA’s advanced stage rare earth magnet recycling and

manufacturing project located in Dallas-Fort Worth, Texas (the “Texas Hub”).

The EPCM Detailed Design will inform the noXce to proceed (the “NTP”). HyProMag USA has the potenXal to

supply the U.S. market with a sustainable, long term, domesXc supply of neodymium iron boron (“NdFeB”)

permanent magnets enabling the creaXon of secure, low carbon and traceable rare-earth supply chains.

The key items are:

•Detailed Design is now 25 per cent complete:

oTechnology and design specificaXons for the ongoing commissioning of the Tyseley facility in

the UK and construcXon of the Pforzheim facility in Germany, and associated plant design and

operaXng criteria are being successfully u Xlised by HyProMag USA to inform the U.S.

operaXon’s Detailed Design

oAdvanced Grain Boundary Diffusion (“GBD”) techniques have been included in the Detailed

Design. GBD provides HyProMag USA greater operaXonal flexibility to make grades of magnets

with higher coercivity (>20 kOe), which are capable of operaXng at higher temperatures

•UK PiloRng increased operaRon:

oHyProMag Group has invested in and tripled the throughput capacity of the University of

Birmingham HPMS pilot facility. The pilot facility has completed over 50 HPMS runs over the

last six months

oFrom this data HyProMag USA is targeXng further improvements in the engineering design

criteria, recoveries and magnet making capability, as well as providing magnet samples for

further customer tesXng

•UK Commissioning:

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oCirca 900 kilograms of recycled NdFeB alloy powder has been produced at Tyseley Energy Park.

The operaXon is currently progressing towards producXon of finished sintered NdFeB magnets 1

•Capital esRmate:

oDuring the period from the end of the Feasibility Study in November 2024 and the

commencement of the EPCM, PegasusTSI and BBA conXnued to refine to a Class 2 AssociaXon

for the Advancement of Cost Engineering (“AACE”) esXmate to be confirmed at the NTP

•DFW Site selecRon:

oFour short-listed ‘hub’ site opXons located in Dallas-Fort Worth, Texas have been idenXfied.

Approximate size of the hub site is between 125,000 sq. k and 140,000 sq. k with commercial

discussions to secure a 25-year lease

•PermiTng:

oBaseline permilng for the Dallas-Fort Worth, Texas ‘hub’ facility to commence in Q3 2025,

once the site is confirmed, through Weston SoluXons

•People:

oOwners team established and located in the United States. The owners team consist of senior

project engineers, electrical engineers and technical markeXng magnets specialists working

together with the combined resources of the HyProMag Group

•Supply and off take:

oFeedstock supply collaboraXon with global electronics recycling company, Intelligent Lifecycle

SoluXons (“ILS”) 2

oILS have commenced stock piling of feedstock for the Texas hub 3

oEngagement with further potenXal feed supply providers and product o ff takers conXnues

concurrently with the Detailed Design to meet project financing requirements

•Expansion to three hubs:

oAppointed lead engineers Pegasus TSI and BBA to perform Scoping Study for HyProMag USA to

expand its footprint in Nevada and South Carolina from one hub to three hubs in the United

States 4

•Long-loop Recycling:

oAppointed engineering group Worley to conduct a Concept Study for further expansion of the

U.S. operaXons through the addiXon of a complementary “Long-loop” process. The Concept

Study will be completed concurrently and support the ongoing studies at Mkango’s long-loop

pilot plant in the UK

•Funding:

oHyProMag USA is conXnuing its ongoing discussions with high-ranking officials in the United

States Government, commercial lenders, equity providers and o ff takers regarding financial

support and project acceleraXon

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Julian Treger, CoTec CEO commented: “We are very pleased with the progress of the EPCM Detailed Design. The

learnings from HyProMag’s facili?es in the UK and Germany con?nue to inform PegasusTSI’s and BBA’s work

and support an accelerated project schedule targe?ng first magnets in H1 2027. In parallel with the EPCM

Detailed Design, the company is focused on securing funding from the U.S. Government, commercial lenders,

equity providers and off takers. With the commencement of the long-loop Concept Study, the Company is in a

unique posi?on as it provides both short and long-loop rare earth permanent magnet recycling. HyProMag

USA’s proposed U.S. facility fully meets the requirements of the U.S. Defence Produc?on Act (“DPA”) Title III and

will provide a secure, long-term, commercial-scale magnet recycling and produc ?on facili?es in the United

States.”

Will Dawes, Mkango CEO commented: “HyProMag USA is very well posi?oned to provide a new domes?c

sustainable source of rare earth magnets for the United States, and it is fantas ?c to see the project progress

towards near term development at pace. This creates a strong plaXorm for further expansion, complemen?ng

the ongoing HyProMag developments in the UK and Germany.”

The Feasibility Study includes the Texas Hub and two pre-processing facili Xes located in South Carolina and

Nevada respecXvely. In March 2025, HyProMag USA announced the expansion of the detailed engineering

phase to include three HPMS vessels and that it was iniXaXng concept studies for further expansion and 5

complementary “long- loop” recycling. The Texas Hub’s annual producXon is expected to be 750 metric tons 6

per annum of recycled sintered NdFeB magnets and 807 metric tons per annum of associated NdFeB co-

products (total payable capacity – 1,557 metric tons NdFeB within five years of commissioning) over a 40-year

operaXng life. It is expected the producXon facility will provide significant opXonality to supply the U.S. market

with addiXonal NdFeB alloy powder while assisXng in revitalising the U.S. magnet sector with the creaXon of

90-100 skilled magnet manufacturing jobs.

In March 2025, HyProMag USA announced the results of an independent, ISO-Compliant product carbon

footprint study which confirmed an excepXonally low CO2 footprint of 2.35 kg CO2 eq. per kg of NdFeB cut

sintered block product. 7

In August 2025, HyProMag USA announced ILS had formally commenced its stockpiling of feedstock iniXaXve 8

pursuant to the recently announced feedstock supply and pre-processing site share agreement between

HyProMag USA and ILS. 9

About HyProMag USA

HyProMag USA LLC is owned 50:50 by CoTec Holdings Corp. (TSXV: CTH; OTCQB: CTHCF) (“CoTec”) and

HyProMag Limited. HyProMag Limited is 100 per cent owned by Maginito Limited which is owned on a

79.4/20.6 per cent basis by Mkango and CoTec.

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

producXon 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, and to develop new sustainable sources of

neodymium, praseodymium, dysprosium and terbium to supply acceleraXng 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 converXble loan) in HyProMag GmbH, focused on short loop rare earth magnet

recycling in the UK and Germany, respecXvely, and a 100 per cent interest in Mkango Rare Earths UK Ltd

(“Mkango UK”), focused on long loop rare earth magnet recycling in the UK via a chemical route.

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Maginito and CoTec are also rolling out HPMS recycling technology into the United States via the 50/50

owned HyProMag USA LLC joint venture company.

Mkango also owns the advanced stage Songwe Hill rare earths project in Malawi (“Songwe”) and the

Pulawy rare earths separaXon project in Poland (“Pulawy”). Both the Songwe and Pulawy projects have

been selected as Strategic Projects under the European Union Cri Xcal Raw Materials Act. Mkango has

signed a Business CombinaXon Agreement with Crown PropTech AcquisiXons to list the Songwe Hill and

Pulawy rare earths projects on NASDAQ via a SPAC Merger .

For more informaXon, please visit www.mkango.ca

CauRonary Note Regarding Forward-Looking Statements

This news release contains forward-looking statements (within the meaning of that term under applicable

securiXes laws) with respect to Mkango. Generally, forward looking statements can be idenXfied by the use of

words such as “targeted” , “plans” , “expects” or “is expected to” , “scheduled” , “es Xmates” “intends” ,

“anXcipates” , “believes” , or variaXons of such words and phrases, or statements that certain acXons, events or

results “can” , “may” , “could” , “would” , “should” , “might” or “will” , occur or be achieved, or the nega Xve

connotaXons thereof. Readers are cauXoned not to place undue reliance on forward-looking statements, as

there can be no assurance that the plans, intenXons or expectaXons upon which they are based will occur . By

their nature, forward-looking statements involve numerous assump Xons, known and unknown risks and

uncertainXes, both general and specific, that contribute to the possibility that the predic Xons, forecasts,

projecXons and other forward-looking statements will not occur, which may cause actual performance and

results in future periods to differ materially from any esXmates or projecXons of future performance or results

expressed or implied by such forward-looking statements. Such factors and risks include, without limiXng the

foregoing, the availability of (or delays in obtaining) financing to develop Songwe Hill, and the various recycling

plants in the UK, Germany and the US as well as the separaXon plant in Poland, governmental acXon and other

market effects on global demand and pricing for the metals and associated downstream products for which

Mkango is exploring, researching and developing, geological, technical and regulatory masers relaXng to the

development of Songwe Hill, the various recycling plants in the UK, Germany and the US as well as the

separaXon plant in Poland, the ability to scale the HPMS and chemical recycling technologies to commercial

scale, compeXtors having greater financial capability and effecXve compeXng technologies in the recycling and

separaXon business of Maginito and Mkango, availability of scrap supplies for recycling acXviXes, government

regulaXon (including the impact of environmental and other regulaXons) on and the economics in relaXon to

recycling and the development of the various recycling and separa Xon plants of Mkango and Maginito and

future investments in the United States pursuant to the cooperaXon agreement between Maginito and CoTec,

the outcome and Xming of the compleXon of the feasibility studies, cost overruns, complexiXes in building and

operaXng the plants, and the posiXve results of feasibility studies on the various proposed aspects of Mkango’s,

Maginito’s and CoTec’s acXviXes. The forward-looking statements contained in this news release are made as of

the date of this news release. Except as required by law, the Company disclaims any intenXon and assume no

obligaXon to update or revise any forward-looking statements, whether as a result of new informaXon, future

events or otherwise, except as required by applicable law. AddiXonally, the Company undertakes no obligaXon

to comment on the expectaXons of, or statements made by, third parXes in respect of the masers discussed

above.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither

the TSX Venture Exchange nor its Regula<on Services Provider (as that term is defined in the policies of the

TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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This press release does not cons?tute an offer to sell or a solicita?on of an offer to buy any equity or other

securi?es of the Company in the United States. The securi?es of the Company will not be registered under the

United States Securi?es Act of 1933, as amended (the "U.S. Securi?es Act") and may not be offered or sold

within the United States to, or for the account or benefit of, U.S. persons except in certain transac?ons exempt

from the registra?on requirements of the U.S. Securi?es Act.

For further informaRon on Mkango, please contact:

Mkango Resources Limited

William Dawes Alexander Lemon

Chief ExecuXve Officer President

[email protected] [email protected]

Canada: +1 403 444 5979

www.mkango.com

@MkangoResources

SP Angel Corporate Finance LLP

Nominated Adviser and Joint Broker

Jeff KeaXng, Jen Clarke, Devik Mehta

UK: +44 20 3470 0470

AlternaRve Resource Capital

Joint Broker

Alex Wood, Keith Dowsing

UK: +44 (020) 4530 9160/77

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