HYPROMAG USA TO ESTABLISH EARLY MAGNET FINISHING CAPABILITY AS PART OF PHASED TEXAS HUB DEVELOPMENT Commissioning of finished magnet production equipment targeted for H1-2027, ahead of fully integrated U.S. operations in Q2 2028
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MKANGO RESOURCES LTD.
550 Burrard Street
Suite 2900
Vancouver
BC V6C 0A3
Canada
HYPROMAG USA TO ESTABLISH EARLY MAGNET FINISHING CAPABILITY AS PART OF PHASED TEXAS
HUB DEVELOPMENT
Commissioning of finished magnet production equipment targeted for H1-2027, ahead of fully integrated
U.S. operations in Q2 2028
London / Vancouver: July 27 2026 - Mkango Resources Ltd (AIM/TSX-V: MKA) (“Mkango”) is pleased to announce
that HyProMag USA, LLC (“HyProMag USA” or the “Company”) , has provided an update regarding a phased
development strategy for its Ironhead facility in Dallas -Fort Worth, Texas (the “Texas Hub”), including fast -
tracking of magnet finishing equipment commissioning and initial production.
Accelerated magnet finishing and initial sales
Under the phased plan, HyProMag USA is now targeting commissioning of its initial finished neodymium -iron-
boron (“NdFeB”) magnet production equipment in Texas in H1, 2027. These initial U.S. operations will utilise up
to 20 tonnes of magnet blocks supplied by HyProMag Group operations in the United Kingdom 1 and Germany2
to be shaped and finished at HyProMag USA’s operations for U.S. customers. The supply of finished magnet
products to European customers from HyProMag operations in UK and Germany will not be affected by these
arrangements.
Commitment to early works capital supports commissioning of the integrated Texas Hub’s Hydrogen Processing
of Magnet Scrap (“HPMS”) section now targeted for Q2 2028. At that stage, HyProMag USA expects to begin
integrating U.S. -sourced magnet -bearing feeds tock into its domestic recycling and magnet manufacturing
operations.
Establishing this capability early also allows HyProMag USA to work directly with U.S. customers on product
specifications and advance qualification programmes, in parallel with the development of the broader integrated
Texas Hub. The initial finishing lin e will allow HyProMag USA to convert magnet blocks into customer -ready
magnets produced to specific dimensions, tolerances, coatings and performance requirements.
Julian Treger, Chief Executive Officer of CoTec Holdings Corp., commented: “HyProMag’s core advantage
remains our ability to recover rare earth magnets already contained in waste and return them to productive use
1https://hypromagusa.com/uk-minister-for-industry-officially-opens-rare-earth-magnet-recycling-and-manufacturing-facility-at-tyseley-energy-park-
birmingham/
2https://hypromagusa.com/german-federal-ministry-for-economic-affairs-and-energy-officially-opens/
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through a faster, simpler and more efficient short-loop recycling process. Establishing finishing capability in Texas
ahead of the integrated plant is a complementary step that will allow us to begin producing customer -ready
magnets in the United States and work directly with customers on specifications and qualification.”
“Magnet finishing is a critical and highly technical part of the value chain, with relatively limited commercial -
scale capacity available in the United States. Developing this capability early will allow HyProMag USA to derisk
downstream magnet making and build customer relationships. HyProMag USA is developing the full domestic
platform for extracting magnets from waste, manufacturing recycled NdFeB products and delivering finished
magnets tailored to our customer requirements.”
Will Dawes, Chief Executive of Mkango Resources, commented: “Following this development, HyProMag will
be uniquely positioned to supply finished magnets to customers in the UK, Germany, USA and other markets. This
gives us the flexibility to supply different products in a variety of markets and de-risks our route to market, whilst
leveraging off the technical capabilities of the HyProMag group with the ongoing support of the University of
Birmingham and University of Pforzheim. We look forward to supporting the accelerated development of
HyProMag USA in parallel with HyProMag’ s operations in UK and Germany.”
Phased Commissioning and Ramp-Up
Following targeted commissioning of cutting and finishing operations in H1 2027, commissioning of the HPMS
section and integrated magnet manufacturing is targeted for Q2 2028, with initial annual production capacity of
approximately 400 metric tonnes of recycled sintered NdFeB magnets and approximately 278 metric tonnes of
NdFeB co-products, representing total payable capacity of approximately 678 metric tonnes of NdFeB material,
with staged ramp-up thereafter.
Additional equipment is expected to be installed as it is received, supporting a staged ramp-up to the Texas Hub’s
previously announced full targeted annual capacity of approximately 1,526 metric tonnes of magnetic products.
As announced on June 22, 2026, HyProMag USA has commenced procurement of long -lead equipment and
continues to advance detailed engineering, feedstock aggregation, customer offtake and project financing
discussions.3
Building Toward Integrated U.S. Waste-to-Magnet Production
The phased development strategy is intended to establish downstream finishing capability and customer
relationships ahead of commissioning the Texas Hub’s HPMS operations. Once the HPMS section is operational,
HyProMag USA expects to integrate U.S.-sourced magnet-bearing feedstock into a domestic platform spanning
magnet recovery, recycling, manufacturing and finishing, enabling the Company’s core objective of returning
rare earth magnets already circulating in the economy to productive use as customer-ready products.
Key Highlights
• Initial strategic focus on downstream magnet finishing: Through the installation of finishing equipment
in the Texas Hub, the Company is developing expertise in downstream magnet making, which it believes
will be a valuable complement to the proprietary HPMS process and a key strategic differentiator.
• Commissioning of finished magnet equipment now targeted for H1 2027 in partnership with the
HyProMag Group: Initial USA production will be underpinned by NdFeB blocks supplied from the
HyProMag Group (UK and Germany). This will allow the Company to provide magnets to U.S. off -takers
in advance of the Texas Hub start-up of integrated HPMS to magnet operations.
3 https://hypromagusa.com/hypromag-usa-advances-texas-hub-and-u-s-magnet-platform/
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• Equipment ordered and staged ramp-up: The Company has ordered several of the long-lead equipment
items for the Texas Hub, including the HPMS vessels and magnet finishing equipment specified to U.S.
market requirements based on feedback from potential customers. The Company will stage its early
works equipment purchases to mitigate equipment supply risk and provide for a measured production
ramp-up. Commissioning of the HPMS section of the Texas Hub is targeted for Q2 2028, with a staged
ramp-up thereafter.
• Customer Engagement: First sample magnets have been supplied to potential customers in the United
States and the Company is working with HyProMag operations in UK and Germany on increasing the
supply of sample magnets responding to customer demand. HyProMag USA is engaging wit h multiple
customers across North America, spanning both smaller customers and OEM’s.
• Feedstock supply: HyProMag USA is making good progress in establishing strong relationships across a
range of feedstock sources and several supply opportunities are being pursued, with tests for quality and
recoverability of magnets imminent on some of the feedstock. Feedst ock discussions have extended
beyond hard disk drives into rotors, MRI machines and actuators, and discussions with several large
recyclers are underway. HPMS provides a unique, energy efficient and cost -effective solution for
recovering magnets from rotors and other assemblies with embedded magnets, which remains a major
competitive advantage for the group.
About HyProMag USA
HyProMag USA is developing advanced rare earth magnet recycling and manufacturing operations to establish a
secure domestic U.S. supply chain for NdFeB magnets, which are critical components in AI infrastructure,
robotics, electric vehicles, wind turbines and advanced electronics. Leveraging the revolutionary HPMS
technology developed over 15 years with over US$100 million in R&D investment, HyProMag delivers faster
magnet-to-magnet short -loop recycling that uses 88% less energy and reduces carbon emissions by 85%
compared to conventional methods. HPMS accepts a wide range of magnet-bearing feedstocks – including end-
of-life EV motors, data -center and industrial equipment, consumer electronics, and manufacturing scrap –
enabling direct recovery of magnet -grade material without conventional chemical processing. HyProMag is
focused on ensuring supply chain security and resilience for critical technologies and economic competitiveness.
Detailed Design and Project Economics
The Texas Hub Class 2 AACE Capital Cost Estimate and Study (the “Detailed Design”) is being carried out by a
multidisciplinary team appointed by CoTec and Mkango and led by independent engineering firms PegasusTSI
and BBA. The study, which is approximately 38% complete, includes optimization of the operation as well as an
updated capital cost profile. PegasusTSI and BBA have completed a 3D Plant model based on the Class 2 estimate
prepared in Q4 2025 (https://www.youtube.com/watch?v=xNmJF3Hh1Mk).
Potential Future U.S. Listing
In December 2025, HyProMag USA’s owners, CoTec Holdings Corp. (TSXV: CTH; OTCQX: CTHCF) (“CoTec”) and
Mkango Resources Ltd. (AIM/TSX -V: MKA) (“Mkango”), announced that they were exploring a potential U.S.
listing for HyProMag USA. 4 Since then, the Company has begun engaging prospective advisors and investment
banks as part of an ongoing evaluation.
Ownership
4 https://hypromagusa.com/hypromag-usa-provides-positive-update-to-valuation-of-expanded-dallas-fort-worth-plant-and-commences-strategic-
review-to-explore-a-u-s-listing
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HyProMag USA LLC is owned 50:50 by CoTec Holdings Corp. (TSXV: CTH; OTCQX: CTHCF) (“CoTec”) and HyProMag
Limited. HyProMag Limited is 100% owned by Maginito Limited, which is owned 79.4% by Mkango Resources
Ltd. (AIM/TSX-V: MKA) and 20.6% by CoTec.
For more information, please visit www.hypromagusa.com
About Mkango Resources Ltd.
Mkango is listed on the AIM and the TSX-V Stock Exchanges. 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
Limited, 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 Limited 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 expanding HPMS recycling technology into the United States via the 50/50 owned
HyProMag USA joint venture company.
Mkango currently owns 100% of the advanced stage Songwe Hill rare earths project in Malawi and the proposed
Puławy rare earths separation plant in Poland. Both the Songwe and Puławy projects have been selected as
Strategic Projects under the European Union Critical Raw Materials Act. Songwe has also received Development
Funding from the U.S. International Development Finance Corporation (DFC), the U.S. Government’s
development finance institution, securing US$4.6 million in reimbursable funding for Front End Engineering and
Design. Mkango signed a Business Combination Agreement with Crown PropTech Acquisitions to list the Songwe
Hill and Puławy rare earths projects on NASDAQ via a SPAC merger under the name Mkango Rare Earths Limited
(the “Proposed Business Combination”).
For more information, please visit www.mkango.ca.
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by Mkango 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 Union (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 and the Company. Generally, forward -looking statements can be
identified by the use of words such as “plans”, “expects” or “is expected to”, “scheduled”, “estimates”, “intends”,
“anticipates”, “believes”, or variations of such words and phrases, or statements that certain actions, events or
results “can”, “may”, “could”, “would”, “should”, “might” or “will”, occur o r be achieved, or the negative
connotations thereof.
Forward-looking statements in this news release include, without limitation, statements regarding the Company,
Mkango, and its investments which are not historical facts are “forward-looking statements” which involve risks
and uncertainties, including statements relating to the phased development strategy for the Texas Hub, the
targeted timing of commissioning, start-up and ramp-up, the expected delivery of finishing and other equipment
and the targeted timing of first production and supply of finished magnets to U.S. customers, the planned staging
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of equipment purchases and deliveries, the supply of magnet blocks to the Company from HyProMag Group
operations in the United Kingdom and Germany and the arrangements relating to that supply, the expectation
that the supply of finished magnet products to European customers will not be affected, the Company’s
downstream magnet finishing strategy and the expected benefits of establishing that capability in advance of
integrated operations, feedstock testing and potential supply arrangements, potential offtak e arrangements,
customer engagement and the supply of sample magnets, targeted production capacity and staged ramp -up,
including targeted initial annual capacity of approximately 400 metric tonnes of recycled sintered NdFeB magnets
and approximately 278 metric tonnes of NdFeB co -products, representing approximately 678 metric tonnes of
total payable NdFeB material, and full targeted annual capacity of approximately 1,526 metric tonnes of
magnetic products, the availability of project financing on acceptable terms, customer qualification programmes,
the advancement of detailed engineering, the Texas Hub Class 2 AACE capital cost estimate and detailed design
study and its outcomes, the potential future U.S. listing of HyProMag USA and the engagement of prospec tive
advisors in connection with it, the expected integration of U.S.-sourced magnet-bearing feedstock into domestic
recycling, manufacturing and finishing operations, the anticipated attributes, performance and benefits of the
HPMS technology, including its energy consumption and carbon emissions relative to conventional methods, and
the benefits to the Company which may be implied from such statements. Forward -looking statements can
generally be identified by the use of words such as ‘targets’, ‘expects’, ‘anticipates’, ‘plans’, ‘intends’, ‘believes’,
‘estimates’, ‘budgets’, ‘scheduled’, ‘targeted’, ‘may’, ‘will’, ‘would’, ‘could’ or ‘should’, or the negative of these
terms and similar expressions. The forward-looking information in this news release is based on certain material
factors and assumptions, including: that magnet finishing and other equipment is delivered, installed,
commissioned and ramped up substantially on the timelines currently anticipated and that long -lead items are
received in accordan ce with the Company’s staged procurement plan; that magnet blocks continue to be
available in the required quantities and to specification from HyProMag Group operations in the United Kingdom
and Germany, that those operations continue to perform substantially as anticipated, and that the arrangements
required for that supply are entered into on acceptable terms; that the Company is able to cut, shape, finish and
coat magnet blocks to customer specifications, tolerances and performance requirements; that suitable magnet-
bearing feedstock can be aggregated on acceptable terms and meets required quality and recoverability
parameters; that customer qualification programmes and offtake arrangements progress as anticipated; that
targeted production capacities and ramp-up rates are achieved; that the detailed design study is completed and
confirms the anticipated project economics and capital cost profile; that any potential U.S. listing proceeds only
if and when the owners determine to pursue it; that required project financing is obtained on acceptable terms;
that applicable permits and regulatory approvals are obtained and maintained; that there are no material
adverse changes in export controls, trade measures, tariffs or the availability of critical equipment, technology
or inputs; and that there are no material adverse changes in general economic, market or geopolitical conditions.
Although the Company considers these factors and assumptions to be reasonable based on information currently
available to it, they may prove to be incorrect, and actual results may differ materially from those anticipated.
Since forward -looking statements address future events and conditions, by their very nature, they involve
inherent risks and uncertainties. Actual results in each case could differ materially from those currently
anticipated in such statements due to known and unknown risks and uncertainties affecting the Company,
including but not limited to: delays in, or failure to complete, the delivery, installation, commissioning, start -up
or ramp -up of equipment and operations, including as a result of long lead time s or supply constraints; the
imposition or tightening of export controls, trade restrictions, tariffs or other measures affecting the availability
or cost of critical equipment, technology or rare earth inputs; the availability, quantity, quality and cost of magnet
blocks supplied from HyProMag Group operations in the United Kingdom and Germany, the continued operation
and performance of those facilities, and the risk that the arrangements for that supply are not concluded on
acceptable terms or at all; the availability, quality and recoverability of magnet -bearing feedstock and the
Company’s ability to secure feedstock on acceptable terms; the outcome of customer qualification programmes
and the Company’s ability to secure and maintain offtake arrangements; the risk that actual production capacity,
product quality or ramp-up rates differ materially from those targeted; the risk that the anticipated benefits of
establishing magnet finishing capability in advance of integrated operations are not realised; the risk that the
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detailed design study is not completed as anticipated or does not support the expected project economics or
capital cost profile; the risk that any potential U.S. listing does not proceed, or is not completed on the anticipated
terms or timing; risks relating to the development, protection and performance of the HPMS technology and the
continued availability of technical support from third parties; competition from other magnet producers and
recyclers and changes in demand or prices for NdFeB magnets and rare earth materials; the availability of project
financing on acceptable terms; permitting and other regulatory risks; environmental risks and costs; increases in
energy, labour, materials and construction costs; contractor and subcontractor performance; th e ability to
attract and retain qualified personnel; project delays and cost overruns; and general economic, market, transport
and geopolitical disruptions.
Forward-looking statements in this news release also include, without limitation, statements under “About
Mkango Resources Ltd.” concerning the Proposed Business Combination, the development of Songwe Hill and
Puławy, the expansion of rare earth magnet recycling operations in the United Kingdom, Germany and the United
States, the Development Funding awarded by the DFC, and the status of Songwe Hill and Puławy as Strategic
Projects under the European Union Critical Raw Materials Act.
Readers are cautioned not to place 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 assu mptions, known 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 materially
from any estimates or projections of future performance or results expressed or implied by such forward-looking
statements.
In relation to the Proposed Business Combination, such factors and risks include, without limitation: the ability
of the parties to complete the Proposed Business Combination on the terms currently contemplated, within the
timeframe contemplated, or at all ; the satisfaction or waiver of the conditions precedent to closing, including
the receipt of required shareholder, regulatory, stock exchange, court and other third party approvals; the
effectiveness of any registration statement filed with the United Sta tes Securities and Exchange Commission in
connection with the Proposed Business Combination; the approval for listing of the securities of Mkango Rare
Earths Limited on NASDAQ; the level of redemptions by shareholders of Crown PropTech Acquisitions and the
amount of cash available to the combined company on closing; the ability to obtain any additional financing
required in connection with the Proposed Business Combination; the outside date under the Business
Combination Agreement and the ability to obtain any extension thereof; the exercise of any termination rights
under the Business Combination Agreement; the costs, expenses and diversion of management attention
associated with the Proposed Business Combination; any litigation, regulatory proceedings or s hareholder
actions arising in connection with the Proposed Business Combination; the consequences of the Proposed
Business Combination for Mkango’s interests in Songwe Hill and Puławy and for Mkango’s status on AIM and the
TSX Venture Exchange, including the application of Rule 14 of the AIM Rules for Companies; and the anticipated
benefits of the Proposed Business Combination not being realised in whole or in part.
Other factors and risks include, without limiting the foregoing: the availability of (or delays in obtaining) financing
to develop Songwe Hill and the recycling plants being developed by Maginito in the United Kingdom, Germany
and the United States; the dr awdown and continued availability of the reimbursable Development Funding
awarded by the U.S. International Development Finance Corporation, including the satisfaction of applicable
conditions and changes in United States government policy or funding prior ities; the retention of Strategic
Project status for Songwe Hill and Puławy under the European Union Critical Raw Materials Act and the
realisation of the anticipated benefits of that status; the conversion of Maginito’s convertible loan in HyProMag
GmbH and the resulting ownership interest; governmental action and other market effects on global demand
and pricing for the metals and associated downstream products which Mkango is exploring for, researching and
developing; geological, technical and regulatory matters relating to the development of Songwe Hill and Puławy;
political, fiscal, legal, permitting, taxation, currency and other risks associated with operating in Malawi, Poland,
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Germany, the United Kingdom and the United States; the ability to scale the HPMS and chemical recycling
technologies to commercial scale; competitors having greater financial capability and effective competing
technologies in the recycling and separation business of Maginito and Mkango; the availability of scrap supplies
for Maginito’s recycling activities; government regulation (including the impact of environmental and other
regulations) on, and the economics in relation to, recycling and the development of the Maginito recycling plants
and Puławy; future investments in the United States pursuant to the HyProMag USA joint venture between
Maginito and CoTec; cost overruns; complexities in building and operating the plants; and the results of feasibility
studies on the various proposed aspects of Mkango’s and Maginito’s activities being less favourable than
anticipated.
The forward-looking statements contained in this news release are made as of the date of this news release.
Except as required by applicable law, Mkango disclaims any intention and assumes no obligation to update or
revise any forward -looking statements, w hether as a result of new information, future events or otherwise.
Additionally, Mkango undertakes no obligation to comment on the expectations of, or statements made by, third
parties in respect of the matters discussed above.
For further information on Mkango, please contact:
Mkango Resources Limited
William Dawes
Chief Executive Officer
Alexander Lemon
President
Canada: +1 403 444 5979
www.mkango.com
@MkangoResources
SP Angel Corporate Finance LLP
Nominated Adviser and Joint Broker
Caroline Rowe, Jen Clarke, Devik Mehta
UK: +44 20 3470 0470
Cavendish Capital Markets Limited
Joint Broker
Neil McDonald, Pearl Kellie
UK: +44 20 7330 0500
H&P Advisory Limited
Joint Broker
Andrew Chubb, Leif Powis
UK: +44 20 7907 8500
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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 Mkango in the United States. The securities of Mkango will not be registered under the United States
Securities Act of 1933, as a mended (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.