Mkango Announces Receipt of £7 Million (C$12.3 Million) Investment From Talaxis to Fund Completion of the Feasibility Study for the Songwe Hill Rare Earths Project in Malawi

Mkango Announces Receipt of £7 Million (C$12.3 Million) Investment From

Talaxis to Fund Completion of the Feasibility Study for the Songwe Hill Rare

Earths Project in Malawi

LONDON and VANCOUVER, British Columbia, March 28, 2019 -- Mkango Resources Ltd. (AIM / TSXV: MKA) (the

"Company" or " Mkango"), the rare earths exploration and development company focused on Malawi, is pleased to announce

that following the publication of a NI 43-101 Technical Report (the “Technical Report”) for the Songwe Hill Rare Earths Project

(“Songwe”) resource update on March 21, 2019, Talaxis Limited (“Talaxis”) has invested an additional £7 million into Lancaster

Exploration Limited (“Lancaster”), which is the holder of the licence for Songwe. As a result of this investment, Talaxis’ equity

interest in Lancaster will increase from 20% to 49%, with Mkango holding the remaining 51%.

The investment by Talaxis will fund completion of the Feasibility Study for Songwe, which is currently underway and expected

to be completed in 2020. The updated resource described in the Technical Report will form the basis for the Feasibility Study.

Following completion of the Feasibility Study, Talaxis has an option to acquire a further 26% interest in Songwe by arranging

financing for project development including funding the equity component thereof.

William Dawes, Chief Executive of Mkango stated: “Mkango is uniquely positioned in the rare earths sector with an

advanced stage rare earths project in a favourable jurisdiction and a strong strategic partnership with Talaxis providing the

financial means and network of relationships throughout Asia and elsewhere to deliver a successful project.”

Alexander Lemon, President of Mkango stated: “This project will be transformational for Malawi, empowering local

communities and validating Malawi’s credentials as one of Africa’s premier investment destinations. We are very appreciative

of the support we continue to receive from the Government of Malawi and all stakeholders as we progress through the

Feasibility Study.”

Daniel Mamadou, Director of Talaxis and co-Head of Technology Metals at Noble Group said: "Rare earths play a core

role in our portfolio of technology metals. High performance electric motors and permanent magnet applications drives the

demand for neodymium and praseodymium, making these elements key enablers of EV policies globally. The results of the

drill campaign at Songwe are encouraging and point towards the potential of creating a world class asset. We are pleased to

extend our strategic partnership with Mkango and to increase our investment in Songwe, which is one of the few advanced

stage rare earths projects currently. We look forward to collaborating with Mkango to ensure this project is developed to its full

potential."

Further details on the scope and other aspects of the Feasibility Study, and plans for 2019 will be announced in due course.

The Technical Report is available under the Company’s profile on www.sedar.com. The press release in relation to the

resource update is available via the following link: https://www.mkango.ca/s/news.asp?ReportID=844546

About Mkango Resources Limited

Mkango's primary business is exploration for rare earth elements and associated minerals in the Republic of Malawi, a country

whose hospitable people have earned it a reputation as “the warm heart of Africa”. The Company holds interests in three

exclusive prospecting licenses in Malawi: the Phalombe licence, the Thambani licence and the Chimimbe Hill licence.

The main exploration target in the 51% held Phalombe licence is the Songwe Hill rare earths deposit. This features carbonatite

-hosted rare earth mineralisation and was subject to previous exploration in the late 1980s. Mkango completed an updated Pre

-Feasibility Study for the project in November 2015 and a Feasibility Study is currently underway, the initial phases of which

included a 10,900 metre drilling programme and updated mineral resource estimate.

The main exploration targets in Mkango’s remaining two 100% held licences are, in the Thambani licence, uranium, niobium,

tantalum and zircon and, in the Chimimbe Hill licence, nickel and cobalt.

For more information, please visit www.mkango.ca.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement may have been deemed inside information for the purposes of Article 7 of

Regulation (EU) No 596/2014 until the release of this announcement.

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, its business and the Project. 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 actions, 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

statements with respect to the global market for products using the rare earth metals the Company is exploring for, completion

of the feasibility study and of the transactions contemplated in the agreement with Talaxis, as well as the use of proceeds

from the investments into the Company by Talaxis and the timing of such expenditures. 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, without limiting the foregoing, market demand for the metals and

associated downstream products for which Mkango is exploring, researching and developing, the positive results of a feasibility

study on the Project, delays in obtaining financing or governmental or stock exchange approvals. 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 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, the Company

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   Alexander Lemon

Chief Executive Officer   President

[email protected]  [email protected]

UK: +44 207 3722 744   

Canada: +1 403 444 5979   

www.mkango.ca    

@MkangoResources   

Blytheweigh

Financial Public Relations

Tim Blythe, Camilla Horsfall, Julia Tilley

UK: +44 207 138 3204

SP Angel Corporate Finance LLP

Nominated Adviser and Joint Broker

Jeff Keating, Caroline Rowe

UK: +44 20 3470 0470

Alternative Resource Capital

Joint Broker

Alex Wood, Rob Collins

UK: +44 20 7186 9004; +44 20 7186 9001

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 United 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.