Mkango Enters into Agreement with Talaxis to Fund Development of the Songwe Hill Rare Earths Project IN Malawi and Commercialisation of New Magnet Technologies

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MKANGO RESOURCES LTD.

706 27 Avenue NW,

Calgary, Alberta T2M 2J3

MKANGO ENTERS INTO AGREEMENT WITH TALAXIS TO FUND DEVELOPMENT OF THE SONGWE HILL RARE

EARTHS PROJECT IN MALAWI AND COMMERCIALISATION OF NEW MAGNET TECHNOLOGIES

London / Calgary: November 16, 2017 - Mkango Resources Ltd. (AIM/TSX -V: MKA) (the " Company" or

"Mkango") is pleased to announce that it has entered into an agreement (“Agreement”) with Talaxis Limited

(“Talaxis”), a wholly owned subsidiary of Noble Group Limited:

 Talaxis h as agreed to fully fund a bankable feasibility study (“BFS”) for Mkango’s Songwe Hill Rare

Earths Project (“Songwe” or the “Project”) in return for a 49% interest in the Project

 Talaxis will invest £12 million (C$20 million) in the Project for the BFS in t hree tranches, with the first

tranche of £2 million (C$3.3 million) invested on receipt of regulatory approval

 Talaxis will also have the option (“Option”) to acquire a further 26% interest in the Project by arranging

funding for Project development

 Talaxis may also acquire up to a 49% interest in a new venture to be established by Mkango focused on

neodymium alloy powders, magnet and other technologies, including Mkango’s collaboration with

Metalysis, by investing £2 million (C$3.3 million) in two tranches

 Upon completion of the above investments, Mkango will retain a 25% interest in Songwe, free carried

to production, and a 51% in interest in the new venture

 Talaxis and Mkango have agreed to cooperate as preferred partners on rare earths projects worldwid e

and on other projects in Malawi

William Dawes, Chief Executive Officer of Mkango, said: "This transaction is transformational for Mkango and

for Malawi, and is a further endorsement of the Company’s strategy and potential. This Agreement significantly

strengthens our balance sheet whilst ensuring that the Company is fully funded to progress Songwe and our

collaboration with Metalysis. It also comes at a pivotal time in the rare earth market with a very strong demand

outlook for rare earths such as neodym ium and praseodymium used in permanent magnets for electric

vehicles, wind turbines and other clean technology applications. We are very excited to be working with

Talaxis, and moving forward with the bankable feasibility study for Songwe and Phase II of t he research and

development programme with Metalysis.”

Daniel Mamadou, Executive Director of Talaxis said: “The global push to decarbonize the economy is creating

pressure on the supply of critical elements to the green tech sector. Environmental regulati on and the policy

changes are driving the price of technology metals. Supported by our access to global logistics capabilities, an

extensive marketing network and a team of experienced professionals, Talaxis is pleased to enter into this

agreement, which further strengthens our supply chain specialized in tech metal products.”

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The Agreement is summarised below:

Songwe Hill Rare Earths Project

Under the Agreement, Talaxis is entitled to receive a 49% interest in Mkango’s subsidiary, Lancaster

Exploration Limited (“Lancaster”), the licence holder for the Project, by investing an aggregate of £12 million

(C$20 million) in Lancaster in three tranch es to complete the BFS, with the final tranche of £7 million being

subject to the completion of a definitive Joint Venture Agreement. Subject to completion of the definitive Joint

Venture Agreement, Talaxis will be granted the Option to acquire a further 26% interest in Lancaster by

arranging funding for Project development, which, based on the pre -feasibility study prepared by the MSA

Group (Pty) Ltd dated 1 December 2015, would total US$216 million. If the Option is exercised, Mkango will

hold a 25% interest in Lancaster, free carried until the Project commences production. The Agreement provides

that the first tranche of the investment by Talaxis will be paid upon receipt of TSX Venture Exchange (“TSXV”)

approval for the transaction. Payment of the seco nd tranche will be 45 days after such approval, and the

payment of the third tranche is conditional on completion of the definitive Joint Venture Agreement in respect

of Songwe and on Mkango publishing an updated 43-101 resource referred to below.

- £2,000,000 Phase 1 investment commitment for the Project to be invested on Mkango obtaining

approval from the TSX Venture Exchange (“TSXV”) for the Agreement, upon which Talaxis will receive a

8% interest in Lancaster.

- £3,000,000 Phase 2 investment commitment fo r the Project to be invested 45 days after Mkango

obtains TSXV approval, upon which Talaxis will receive an additional 12% interest in Lancaster.

- The use of proceeds will fund the first phase of the BFS including infill, geotechnical and exploration

drilling, bulk sampling, processing flow sheet optimisation, work in relation to the Environmental,

Social and Health Impact Assessment (“ESHIA”) and other expenditures.

- £7,000,000 Phase 3 investment commitment for the Project to be invested, subject to Talaxis and

Mkango completing the definitive Joint Venture Agreement, on Mkango publishing an updated 43-101

resource, upon which Talaxis will receive a further 29% interest in the Project. The use of proceeds will

be to fund completion of the BFS.

- Upon completion of the BFS, and subject to Talaxis and Mkango completing the definitive Joint Venture

Agreement, Talaxis will have the Option to acquire a further 26% interest in the Project and offtake

rights for 100% of production from the Project (subject to Newco (se e below) having the option to

retain such amount of offtake as required for Newco’s downstream manufacturing activities) in

consideration of Talaxis arranging funding for 100% of remaining project development costs, including

funding the equity component thereof.

New Venture (“Newco”)

In addition, by investing a further £2 million (C$3.3 million) in two tranches, Talaxis will receive a 49% interest

in Newco to be established by Mkango to further develop, commercialise and market production in relation to

new rare earth alloy powder, magnet and other technologies geared to accelerating growth in the electric

vehicle market. The use of proceeds includes expenditure under the previously announced agreement with

Metalysis focused on advanced alloys using neody mium or praseodymium with other elements for magnet

development and potential 3D printing applications. Upon completion of the investments, Mkango will hold a

51% interest in Newco. The Agreement provides that the first tranche of the investment by Talaxis will be paid

within 45 days of receipt of TSXV approval for the transaction. Payment of the second tranche is conditional on

completion of a definitive Investment Agreement in respect of Newco and successful completion of the Phase II

R&D programme referred to below.

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- £1,000,000 Phase 1 investment commitment for Newco to be invested 45 days after Mkango obtains

TSXV approval for the Agreement , upon which Talaxis will receive a 24.5% interest in Newco. The use

of proceeds will be to fund the Phase II resear ch and development (“R&D”) programme with Metalysis

and other expenditures.

- £1,000,000 Phase 2 investment commitment for Newco to be invested, subject to Talaxis and Mkango

completing the definitive Investment Agreement, on successful completion of the Pha se II R&D

programme with Metalysis , upon which Talaxis will receive a 24.5% interest in Newco. The use of

proceeds will be to fund the R&D programme with Metalysis and other expenditures.

Under the terms of the Agreement, Talaxis will be Mkango’s preferre d partner for all rare earths’ projects

worldwide and for all activities of any sort in Malawi. Talaxis will be granted a right of first offer to finance any

such activities of Mkango (including in respect of any of the current assets of Lancaster other t han Songwe).

Mkango will be Talaxis’ preferred partner for all rare earths’ projects worldwide. All such opportunities will be

offered to Mkango on a 50/50 shared economics basis, with Mkango being entitled to participate to any level

that it chooses.

The definitive agreements are expected to be completed by January 31, 2017. The transaction is subject to the

receipt of all necessary regulatory approvals including the approval of the TSXV and satisfaction of any

conditions which it may impose.

Related Party Transaction

Talaxis is the holder of 14.4% of the issued and outstanding shares of Mkango. As such, Talaxis is a Non Arm’s

Length Party pursuant to applicable rules of the TSXV. In addition, Talaxis holds 12 million warrants of Mkango,

which, upon exercise, could result in Talaxis holding 23.7% of the then -issued and outstanding shares of

Mkango.Talaxis has agreed with Mkango that it will not exercise any warrants which would increase the

holding of Talaxis in Mkango to 20% or more.

Talaxis is als o considered to be a “related party” as defined under the AIM Rules and accordingly, Talaxis’

investments in both Lancaster and Newco constitute a related party transaction for the purposes of Rule 13 of

the AIM Rules.

The Directors independent of the tr ansaction, being the Board as a whole, consider, having consulted with SP

Angel Corporate Finance LLP, the Company’s nominated adviser, that the terms of the Agreement are fair and

reasonable insofar as the Company’s shareholders are concerned.

Finder’s Fee

Subject to acceptance by the TSXV, Mkango proposes to pay a cash finder’s fee of 2% of the amount of each

investment to Zenith Advisory Services Pty Ltd. in connection with the transactions contemplated in the

Agreement, payable within an agreed perio d of time following the completion of each phase of the

investments.

About Talaxis

Talaxis Limited is a company, currently wholly owned by Noble Group, involved in the investment and

development of resources which are critical to green technology supply chains, including cobalt, lithium, and

rare earths. Talaxis is also involved in the research and development of industrial applications related to energy

solutions providers and permanent magnets consumers. Noble Group (SGX: CGP) manages a portfolio of global

supply chains covering a range of industrial and energy products. Noble facilitates the marketing, processing,

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financing and transportation of essential raw materials. For more information please visit

www.thisisnoble.com.

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About Mkango Resources Limited

Mkango's primary business is the 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.” Mkango holds, through its wholly owned subsidiary Lancaster, a 100% i nterest in two exclusive

prospecting licenses in southern Malawi, the Phalombe licence and the Thambani licence.

The main exploration target in the Phalombe licence is the Songwe Hill rare earths’ deposit, which 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.

In September 2017, Mkango signed a binding joint venture principles and exclusivity agreement with Metalysis

for advanced alloys using neodymium or praseodymium with other elements for magnet manufacturing.

Following successful Phase I production of a neodymium -iron-boron (“NdFeB”) alloy powder using Metalysis’

solid-state technology, the Phase II R&D programme has commenced. NdFeB alloys are used to make

permanent magnets, critical components of most electric vehicles, direct drive wind turbines and many other

high growth applications. Neodymium is a key rare earth component at Songwe.

The main exploration targets in the Thambani licence are uranium, niobium, tantalum and zircon.

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

Cautionary Note Regarding Forward-Looking Statements

This news release may contain forward-looking statements. Readers are cautioned not to place undue reliance

on forward-looking statements, as there can be no assurance that the plans, intentions or expe ctations 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, forecast s, 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 forwar d-looking statements. Such factors and risks

include, without limiting the foregoing, delays in obtaining financing or governmental or stock exchange

approvals. The forward-looking statements contained in this press release are made as of the date of this press

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

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Blytheweigh

Financial Public Relations

Tim Blythe, Camilla Horsfall, Nick Elwes

UK: +44 207 138 3204

SP Angel Corporate Finance LLP

Nominated Adviser and Broker

Jeff Keating , Caroline Rowe

UK: +44 20 3470 0470

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 constitut e 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. Securitie s 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.