HYPROMAG USA PROVIDES POSITIVE UPDATE TO VALUATION OF EXPANDED DALLAS-FORT WORTH PLANT AND COMMENCES STRATEGIC REVIEW TO EXPLORE A U.S. LISTING Texas Facility Expansion Increases Magnet Capacity, Supports Domestic Critical-Minerals Supply
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M K A N G O R E S O U R C E S L T D .
550 Burrard Street
Suite 2900
V a n c o u v e r , B C V 6 C 0 A 3
C a n a d a
HYPROMAG USA PROVIDES POSITIVE UPDATE TO VALUATION OF EXPANDED DALLAS-FORT WORTH
PLANT
AND COMMENCES STRATEGIC REVIEW TO EXPLORE A U.S. LISTING
Texas Facility Expansion Increases Magnet Capacity, Supports Domestic Critical-Minerals Supply
Chains and Increases Post-Tax NPV to US$780 million (forecast prices) and US$409 million (current prices)
London / Vancouver: 15 December 2025 - Mkango Resources Ltd (AIM/TSX-V: MKA) (the “Company” or
“Mkango”), is pleased to announce that HyProMag USA, LLC (“HyProMag USA”), a U.S.-based leader in rare-earth
recycling and processing, has expanded the magnet capacity of its first facility (the “Texas Hub” or the “Project”)
and has updated the valuation of the Project with the completion of the Class 2 AACE i capital cost estimate as
part of the Detailed Engineering Design and Value Engin eering Phase (the “Detailed Design”). The Class 2 AACE
capital cost estimate and detailed value-engineering work confirm a significant increase in magnet production
capacity and materially improved Project economics.
In parallel, HyProMag USA has commenced a strategic review to evaluate a potential separate listing of the shares
of HyProMag USA in the U.S. for late 2026 or early 2027, subject to successful execution of the Project and
meeting the required regulatory approvals.
Key Highlights
Uplift in project valuation: Detailed Engineering results for state-of -the art rare earth magnet recycling
and manufacturing operation in the United States with a Texas Hub supported by two pre-processing
spoke sites co-located at Intelligent Lifecycle Solutions (“ILS”) sites in South Carolina and Nevadaii
o US$409 million post-tax Net Present Value (“NPV”)iii and 27.6% real internal rate of return (“IRR”)
based on current market pricesiv,v
o US$780 million post-tax NPV and 38.7% real IRR based on forecast market pricesvi
Increased magnet production capacity: 941 metric tonnes per annum of recycled sintered neodymium-
iron-boron (“NdFeB”) magnets and 611 metric tonnes per annum of associated NdFeB co-products (total
payable capacity – 1,552 metric tonnes NdFeB) over a 40-year operating life
Competitive operating profile: Low all-in sustaining Cost (“AISC”)Xii,vii of US$22.3 per kg of NdFeB product
versus current weighted average market price of US$56.8 per kg of NdFeB products, with significant scope
for price recovery from current market conditions
Scalable design with expansion potential: The optimised layout allows for the inclusion of an additional
two furnaces within three years following commissioning for an additional capital cost of approximately
US$3 million
Up-front capital cost: Total initial capital cost of US$142 millionviii (inclusive of an 8.2% contingency margin
and Class 2 AACE estimated detailed design study and engineering costs) over a 1 year construction phase.
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Attractive paybackix profile:
o Payback at current market prices in 3.1 years at a profitability index (PI)x of 2.89
o Payback at forecast prices in 2.2 years at a PI of 5.5
Industrial and workforce impact: The plantxi is expected to support revitalisation of the U.S. magnet sector
and create 90-100 skilled magnet manufacturing jobs
Feedstock security: HyProMag USA is continuing to develop its feedstock sources and supply through its
partnership with ILSxii
Carbon profile: Independent ISO-compliant study confirmed a carbon footprint of 2.35 kg CO 2-eq per kg
of NdFeB sintered block product xiii
Detailed Engineering: led by PegasusTSI Inc. (U.S.) and BBA USA Inc. (Canada), with support from
HyProMag’s international teams and the University of Birmingham
Julian Treger, CoTec CEO commented: “We are very pleased with the results of the Detailed Design to date and
the resulting increase in magnet capacity and improved economics of the Texas Hub, the first of several hubs
targeted by HyProMag USA. We believe that the Project provides a unique opportunity for the U.S. to partially
address its dependence on foreign supplied rare earth magnets and alloy powders, critical inputs for accelerating
the reshoring of U.S. manufacturing. With the Texas site secured through a long-term lease, Detailed Design well
advanced and robust economics, our focus is now on secu ring sufficient feedstock and the necessary finance to
commence with construction.
We have also started evaluating the pathway towards a po tential U.S. listing, recognising the opportunity to
broaden our investor base and strengthen access to capital. Any listing would be subject to a successful execution
of the Project and securing the necessary regulatory approvals. We expect that the timing of a U.S. listing, if
pursued, would be towards late 2026 or early 2027.”
Will Dawes, Mkango CEO commented: “Detailed Design has further validated the compelling economics for this
transformational project, and we are excited to now be exploring listing options in the U.S. Our recent signing of
the long-term lease for the project site at Dallas - Fort Worth together with continued momentum towards project
development are aligned with the urgent necessity to develop more robust rare earth supply chains in the United
States. We look forward to working with our project partners and all stakeholders to bring this exciting project to
fruition.”
Detailed Design and Project Economics Update
The Detailed Design, undertaken by a multidisciplinar y team appointed by CoTec and Mkango and led by
independent engineers, PegasusTSI and BBA, is now circa 30% complete and part of the study to date included
an optimisation of the operation as well as an updated capex profile. This has resulted in an increase in the post-
tax NPV of the Project from US$262 million and an IRR of 23% based on current market estimate prices to an
NPV of US$409 million and an IRR of 27.6%. Using forecast market prices the post-tax NPV of the Project increases
from US$503 million and an IRR of 31% to a post-tax NPV of US$780 million and an IRR of 38.7%.
The main driver of the increased economics was the debottlenecking of the magnet lines resulting in an increase
in magnet production from circa 750 tonnes of magnets to 941 tonnes of magnets per annum. Furthermore, the
Project is expected to provide 611 tonnes of NdFeB a lloy co-products per annum. The average market price of
NdFeB magnets increased by circa US$10 per kg product from the feasibility study. NdFeB alloy co-products make
up 39% of overall production compared to 28% in the feasibility study with the additional third Hydrogen
Processing of Magnetic Scrap (“HPMS”) vessel, resulting in an increase in average market price of all NdFeB
products from US$55 per kg product to US$57 per kg product.
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The Detailed Design review also resulted in an increa se in capex for the Project from US$135 million to US$142
million due to the addition of magnet finishing equi pment and advanced Grain Boundary Diffusion (“GBD”)
techniques. GBD allows the Texas Hub greater operational flexibility to make grades of magnets with higher
coercivity (>20 kOe), which are capable of operating at higher temperatures.
Potential Future U.S. Listing
HyProMag USA’s owners, CoTec Holdings Corp. (TSXV: CTH; OTCQB: CTHCF) (“CoTec”) and Mkango believe that
a separate listing of the shares of HyProMag USA in the U.S. could potentially provide HyProMag USA with access
to a broader investor audience, increased sources of pote ntial capital, increased research coverage from U.S.
investment banks and institutions at a key time of rebuilding U.S. critical mineral supply.
HyProMag USA has begun engaging with prospective advisors to evaluate this pathway. Any listing—if ultimately
pursued, would depend on:
Successful execution of the Texas Hub
Prevailing market conditions
HyProMag USA’s ability to meet U.S. regulatory requirements and secure necessary approvals.
While no decision has been made, HyProMag USA expects that any possible listing would occur no earlier than
late 2026 or early 2027.
Data Verification
The independent engineers are professional engineers employed by Pegasus TSI, BBA, and Weston Solutions
who are responsible for engineering design, processing, in frastructure, transportation, services, capital costs,
operating costs, project timeline, permitting and economic analysis. The independent engineers have reviewed
and approved the scientific and technical content and the resulting impact on th e economics of the Project
contained in this news release.
About Mkango Resources Ltd.
Mkango is listed on the AIM and the TSX-V. Mkango’s corp orate strategy is to become a market leader in the
production of recycled rare earth magnets, alloys and oxides, through its interest in Maginito Limited
(“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, dysp rosium 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 UK and Germany, respectively, 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.
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 and the Pulawy rare earths
separation project in Poland. Both the Songwe Hill and Pulawy projects have been selected as Strategic Projects
under the European Union Critical Raw Materials Act. Mkango signed a business combination agreement dated
2 July 2025 with Crown Prop Tech Acquis itions (“CPTK”) to list the Songwe Hill and Pulawy rare earths projects
on NASDAQ via a SPAC Merger under the name Mkango Rare Earths Limited.
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For more information, please visit www.mkango.ca
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has been
incorporated into UK law by the European Un ion (Withdrawal) Act 2018. Upon the publication of this
announcement via Regulatory Information Service, this inside information is now considered to be in the public
domain.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements (within the meaning of that term under applicable
securities laws) with respect to Mkango. Generally, forwar d looking statements can be identified by the use of
words such as “targeted”, “plans”, “expects” or “is expected to”, “scheduled”, “estim ates” “intends”,
“anticipates”, “believes”, or variations of such words and phrases, or statemen ts that certain actions, events or
results “can”, “may”, “could”, “wou ld”, “should”, “might” or “will”, occur or be achieved, or the negative
connotations thereof. Readers are cautioned not to pl ace undue reliance on forward-looking statements, as
there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By
their nature, forward-looking statements involve numerous assumptions, know n and unknown risks and
uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts,
projections and other forward-looking statements will not occur, which may cause actual performance and
results in future periods to differ mate rially from any estimates or projecti ons of future performance or results
expressed or implied by such forward-looking statemen ts. 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
intention and assume no obligation to update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, except as required by applicable law. Additionally, the Company
undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of
the matters discussed above.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither
the TSX Venture Exchange nor its Regulation 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.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any equity or other
securities of the Company in the Unit ed States. The securities of the Company will not be registered under the
United States Securities Act of 1933, as amended (the "U.S. Securities 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 transactions exempt from the
registration requirements of the U.S. Securities Act.
For further information on Mkango, please contact:
Mkango Resources Limited
William Dawes Alexander Lemon
Chief Executive Officer President
[email protected] [email protected]
Canada: +1 403 444 5979
www.mkango.com
@MkangoResources
SP Angel Corporate Finance LLP
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Nominated Adviser and Joint Broker
Jeff Keating, Jen Clarke, Devik Mehta
UK: +44 20 3470 0470
Alternative Resource Capital
Joint Broker
Alex Wood, Keith Dowsing
UK: +44 (020) 4530 9160/77
H&P Advisory Limited
Joint Broker
Andrew Chubb, Leif Powis, Jay Ashfield
UK: +44 20 7907 8500
i Association for the Advancement of Cost Engineering (AACE) – Class 2 Estimate includes contingency of 8.2%
ii https://mkango.ca/news/hypromag-usa-expands-feedstock-supply-agreement-with-global-electronics-recycler-intelligent-
lifecycle-solutions/
iii 7% real discount rates. NPVs are calculated by discounting real US dollar cash flows from 2026
iv Current market prices (“Current Prices”) for all NdFeB products sold in the U.S, excluding residual scrap, derived from updated
U.S. 2024 price quotes, over the life of the asset
v NPV does not include the economic benefit of any government or state incentives, carbon pricing
vi Forecast market prices (“Forecast Prices”) are the prices for all NdFeB products sold in the U.S, excluding residual scrap fee d,
with the rare earth price component thereof derived from the latest rare earth oxide price forecasts from Q4 (2025) Adamas Intelligence,
over the life of the asset
vii All In Sustaining Cost per kilogram of product sold
viii Capital excludes any U.S. tarrifs
ix Payback defined as the period required to payback initial capital from first production
x The profitability index is a measure of the capital efficiency of a project and is defined as the project’s NPV divided by the project
capital incurred to reach first production
xi https://mkango.ca/news/hypromag-usa-finalises-long-term-lease-for-dallas-fort-worth-rare-earth-magnet-recycling-and-
manufacturing-hub/
xii https://mkango.ca/news/hypromag-usa-expands-feedstock-supply-agreement-with-global-electronics-recycler-intelligent-
lifecycle-solutions/
xiii https://mkango.ca/news/hypromag-usas-iso-compliant-product-carbon-footprint-study-confirms-exceptionally-low-co-sub-
2-sub-footprint-of-2.35-kg-co-sub/
Xii AISC is not a recognizes term under IFRS and have been determined using industry guidelines and practices