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Land Lease Agreement Signed To Construct a Rare Earths Separation Plant In Poland with Grupa Azoty Pulawy

Corporate Updates

Land Lease Agreement Signed To Construct a Rare Earths Separation Plant In

Poland with Grupa Azoty Pulawy

London / Vancouver: February 17, 2025 - Mkango Resources Ltd (AIM/TSX-V: MKA) (“Mkango”), is pleased

to announce that Mkango’s wholly owned subsidiary, Mkango Polska Sp. Z.o.o, has signed a revised

exclusive land lease agreement (“the Agreement”) with Grupa Azoty Pulawy for the construc tion of a

strategic rare earths separation plant in Poland. The Agreement constitutes a continuation of cooperation

that the parties first started in 2021.

The Agreement is for a large 8 hectare site adjacent to Grupa Azoty Pulawy’s fertilizer and chemicals

complex at Pulawy in Poland (the “Site”). The site provides excellent infrastructure, access to reagents and

utilities and covers a substantial area which enables future expansion potential.

Located within a Polish Special Economic Zone, the Site also provides excellent access to European and

international markets. Production from the plant will strengthen Europe’s security of supply for rare

earths, used in plug-in electric vehicles, hybrid electric vehicles, wind turbines and other green technology

and strategic applications. It also aligns with European initiatives to create more robust, diversified supply

chains through the latest European Union Critical Raw Materials Regulations.

Alexander Lemon, President of Mkango stated: “We are delighted to have signed a revised exclusive land

lease agreement adjacent to the Grupa Azoty Pulawy which will enable future separation plant expansion.

We very much value working closely with Grupa Azoty and look forward to completing a definitive

feasibility study on the rare earth separation plant and starting construction.”

Hubert Kamola, Vice-President of the Management Board of Grupa Azoty S.A stated: “The project is very

innovative and provides an opportunity to create new jobs and transfer new technologies and creates the

potential to develop a critical materials supply chain for Europe and North America. Developing

partnerships is a key driver for our Azoty Business Program. There are many synergies that the site provides

such as land, utilities, reagents and chemical engineering expertise, which is why we are supporting this

exciting business development”

About Mkango Resources Ltd

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 (“Maginito”), which is owned 79.4 per

cent by Mkango and 20.6 per cent by CoTec Holdings Corp. (“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 the HyProMag recycling business and a 90 per cent direct and

indirect fully-diluted interest in HyProMag GmbH (assuming conversion of Maginito’s convertible loan to

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, focused on long loop rare earth magnet recycling

in the UK via a chemical route. Maginito and CoTec are also rolling out HyProMag recycling technology into

the United States via the 50/50 owned HyProMag USA LLC joint venture. HyProMag is also evaluating other

jurisdictions, and recently launched a collaboration with Envipro Technology Company Limited on rare

earth magnet recycling in Japan.

Mkango owns the advanced stage Songwe Hill rare earths project, an extensive rare earths, uranium,

tantalum, niobium, rutile, nickel and cobalt exploration portfolio in Malawi, and the Pulawy rare earths

separation project in Poland.

Songwe Hill is one of the few rare earths projects to have progressed to the Definitive Feasibility Stage,

with an expected life of mine of 18 years, producing a 55% mixed rare earth carbonate, yielding 1,953 tons

per annum of NdPr and 56 tons per annum of DyTb.

Mkango’s proposed Pulawy separation facility site, located in a Special Economic Zone in Poland, stands

adjacent to the EU’s second largest manufacturer of nitrogen fertilisers, and features established

infrastructure, access to reagents and utilities on site.

Mkango has signed a letter of Intent with Crown PropTech Acquisitions to list Mkango's Songwe Hill and

Pulawy Rare Earths Projects on NASDAQ via a SPAC Merger.

For more information, please visit www.mkango.ca

About Grupa Azoty Pulawy

Grupa Azoty Pulawy a subsidiary of Grupa Azoty Capital Group is the leading supplier of nitrogen fertilisers

for Polish agriculture and is the second largest producer of nitrogen multi -component fertilizers in

European Union and a major producer of melamine, polyamide, OXO alcohols, plasticizers and titanium

white.

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 Union (Withdrawa l) 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, the Company, CPTK, their businesses and the Transaction.

Generally, forward looking statements can be identified by the use of words such as “plans”, “expects” or

“is expected”, “scheduled”, “estimates” “intends”, “anticipates”, “believes”, or variations of such words and

phrases, or statements that certain acti ons, events or results “can”, “may”, “could”, “would”, “should”,

“might” or “will”, occur or be achieved, or the negative connotations thereof.

Forward looking statements in this news release include, but are not limited to, statements with respect

to the global market for rare earth metals, the ability to develop a separation plant at Pulway, the merger

with CPTK and the listing on NASDAQ,. 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 assumptions,

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.

Such factors and risks include, wi thout limiting the foregoing, market effects on global demand for the

metals and associated downstream products for which Mkango or the Company is exploring, researching

and developing, delays in obtaining financing or governmental or stock exchange approvals and other risks

that are detailed in the periodic reports filed by CPTK with the U.S. Securities and Exchange Commission.

The forward-looking statements contained in this news release are made as of the date of this news

release. Except as required by law, each of Mkango and Grupa Azoty Pulawy disclaim any intention and

assumes 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, each of

Mkango and Grupa Azoty Pulawy 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, Lancaster Exploration Limited and Mkango Polska Sp. Z.o.o

Alexander Lemon William Dawes

President Chief Executive Officer

[email protected] [email protected]

Canada: +1 403 444 5979

www.mkango.ca

@MkangoResources

SP Angel Corporate Finance LLP

Nominated Adviser and Joint Broker

Jeff Keating, Jen Clarke, Devik Mehta

UK: +44 20 3470 0470

Alternative Resource Capital

Joint Broker

Alex Wood

UK: +44 20 7186 9004

Cohen Capital

Strategic and Financial Adviser

Brandon Sun

USA: +1 929 432 1254

Welsbach Corporate Solutions LLC-FZ

Supply Chain Advisor

Daniel Mamadou

SG: +65 6879 7107

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 shall not constitute

an offer to sell, or a solicitation of an offer to buy, or a recommendation to purchase, any securities in any jurisdiction,

or the solicitation of any vote, consent or approval in any jurisdiction in connection with or with respe ct to the

proposed Transaction, nor shall there be any sale, issuance or transfer of any securities in any jurisdiction where, or

to any person to whom, such offer, solicitation or sale may be unlawful under the laws of such jurisdiction. This press

release does not constitute either advice or a recommendation regarding any securities. No offering of securities

shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended,

or an exemption therefrom.