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MKA.V ·

Mkango Grants Stock Options

Share Capital & Compensation

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MKANGO RESOURCES LTD.

706 27 Avenue NW,

Calgary, Alberta T2M 2J3

MKANGO GRANTS STOCK OPTIONS

Calgary, Alberta: November 1st , 2017 – Mkango Resources Ltd (AIM / TSX -V:MKA) (the “Company”

or “Mkango”), announces that, subject to regulator y approval, Mkango has gra nted 2,840,000 stock

options (“Options”) to directors, officers, employees and consultants of the Company.

The Options have an exercise price of $0.07 CDN per common share, will vest over the next two years

and are valid for a period of 10 years from the date of grant.

The O ptions granted to the following directors are in accordance with the Company’s stock O ption

plan pre-approved by shareholders.

Name of Director Proposed New Options Total Options held

Derek Linfield

Non-Executive Chairman

680,000 1,730,000

Alexander Lemon

President

705,000 2,455,000

William Dawes

CEO

705,000 2,455,000

Adrian Reynolds

Non Executive Director

180,000 810,000

David Berg

Non Executive Director

180,000 810,000

Eugene Chen

Non Executive Director

180,000 810,000

The Company also announces that Jub Capital Limited is to be issued with 666,666 common shares in

satisfaction of a corporate advisory fee payable on the first anniversary of the Company’s admissi on

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to AIM. Application will be made for the 666,666 new shares to be issued, which will rank pari passu

with the existing common shares, to be admitted to trading on AIM ("Admission"). It is expected that

Admission will become effective and dealings will commence on or around 6 November 2017.

Total Voting Rights

Following the issue of these shares, the issued share capital of the Company will consist of 98,864,853

common shares. No shares were held in treasury at the date of this announcement. The total current

voting rights in the Company are therefore 98,864,853.

The above total current voting rights number is the figure which may be used by shareholders as the

denominator for the calculation by which they will determine if they are required to notify their

interest in, or a change to their interest in the Company.

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 hav e earned it a reputation as “the warm

heart of Africa.” Mkango holds, through its wholly owned subsidiary Lancaster Exploration Limited, a

100% interest 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.

Mkango’s strategy for Songwe is to further optimise the project with a view to maximising efficiency

and reducing costs, thereby providing a strong platform for entering into partnerships, marketing and

offtake arrangements. In December 2016, Mkango entered into an agreement with Noble Resources

to collaborate in the rare earths sector.

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 also a key component of

the Company’s Songwe Hill rare earths project.

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

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

NOTIFICATION AND PUBLIC DISCLOSURE OF TRANSACTIONS BY PERSONS DISCHARGING MANAGERIA L

RESPONSIBILITIES AND PERSONS CLOSELY ASSOCIATED WITH THEM

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1. Details of the person discharging managerial responsibilities/person closely

associated

a) Name: Derek Linfield

2. Reason for the notification

a) Position/status: Non-Executive Chairman

b) Initial notification/Amendment: Initial notification

3. Details of the issuer, emission allowance market participant, auction platform,

auctioneer or auction monitor

a) Name: Mkango Resources Limited

b) LEI: 213800RPILRWRUYNTS85

4. Details of the transaction(s): section to be repeated for (i) each type of

instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where

transactions have been conducted

a) Description of the financial instrument, type

of instrument:

Identification code:

Common shares of nil pence each

CA60686A4090

b) Nature of the transaction: Issue of options

c) Price(s) and volume(s):

Price(s) Volume(s)

$0.07 CDN 680,000

d) Aggregated information:

Aggregated volume:

Price:

Single transaction as in 4 c) above

Price(s) Volume(s)

$0.07 CDN 680,000

e) Date of the transaction: 1st November 2017

f) Place of the transaction: Outside a trading venue

1. Details of the person discharging managerial responsibilities/person closely

associated

a) Name: Alexander Lemon

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2. Reason for the notification

a) Position/status: President and Executive Director

b) Initial notification/Amendment: Initial notification

3. Details of the issuer, emission allowance market participant, auction platform,

auctioneer or auction monitor

a) Name: Mkango Resources Limited

b) LEI: 213800RPILRWRUYNTS85

4. Details of the transaction(s): section to be repeated for (i) each type of

instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where

transactions have been conducted

a) Description of the financial instrument, type

of instrument:

Identification code:

Common shares of nil pence each

CA60686A4090

b) Nature of the transaction: Issue of options

c) Price(s) and volume(s):

Price(s) Volume(s)

$0.07 CDN 705,000

d) Aggregated information:

Aggregated volume:

Price:

Single transaction as in 4 c) above

Price(s) Volume(s)

$0.07 CDN 705,000

e) Date of the transaction: 1st November 2017

f) Place of the transaction: Outside a trading venue

1. Details of the person discharging managerial responsibilities/person closely

associated

a) Name: William Dawes

2. Reason for the notification

a) Position/status: Chief Executive Officer

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b) Initial notification/Amendment: Initial notification

3. Details of the issuer, emission allowance market participant, auction platform,

auctioneer or auction monitor

a) Name: Mkango Resources Limited

b) LEI: 213800RPILRWRUYNTS85

4. Details of the transaction(s): section to be repeated for (i) each type of

instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where

transactions have been conducted

a) Description of the financial instrument, type

of instrument:

Identification code:

Common shares of nil pence each

CA60686A4090

b) Nature of the transaction: Issue of options

c) Price(s) and volume(s):

Price(s) Volume(s)

$0.07 CDN 705,000

d) Aggregated information:

Aggregated volume:

Price:

Single transaction as in 4 c) above

Price(s) Volume(s)

$0.07 CDN 705,000

e) Date of the transaction: 1st November 2017

f) Place of the transaction: Outside a trading venue

1. Details of the person discharging managerial responsibilities/person closely

associated

a) Name: Adrian Reynolds

2. Reason for the notification

a) Position/status: Non-Executive Director

b) Initial notification/Amendment: Initial notification

3. Details of the issuer, emission allowance market participant, auction platform,

auctioneer or auction monitor

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a) Name: Mkango Resources Limited

b) LEI: 213800RPILRWRUYNTS85

4. Details of the transaction(s): section to be repeated for (i) each type of

instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where

transactions have been conducted

a) Description of the financial instrument, type

of instrument:

Identification code:

Common shares of nil pence each

CA60686A4090

b) Nature of the transaction: Issue of options

c) Price(s) and volume(s):

Price(s) Volume(s)

$0.07 CDN 180,000

d) Aggregated information:

Aggregated volume:

Price:

Single transaction as in 4 c) above

Price(s) Volume(s)

$0.07 CDN 180,000

e) Date of the transaction: 1st November 2017

f) Place of the transaction: Outside a trading venue

1. Details of the person discharging managerial responsibilities/person closely

associated

a) Name: David Berg

2. Reason for the notification

a) Position/status: Non-Executive Director

b) Initial notification/Amendment: Initial notification

3. Details of the issuer, emission allowance market participant, auction platform,

auctioneer or auction monitor

a) Name: Mkango Resources Limited

b) LEI: 213800RPILRWRUYNTS85

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4. Details of the transaction(s): section to be repeated for (i) each type of

instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where

transactions have been conducted

a) Description of the financial instrument, type

of instrument:

Identification code:

Common shares of nil pence each

CA60686A4090

b) Nature of the transaction: Issue of options

c) Price(s) and volume(s):

Price(s) Volume(s)

$0.07 CDN 180,000

d) Aggregated information:

Aggregated volume:

Price:

Single transaction as in 4 c) above

Price(s) Volume(s)

$0.07 CDN 180,000

e) Date of the transaction: 1st November 2017

f) Place of the transaction: Outside a trading venue

1. Details of the person discharging managerial responsibilities/person closely

associated

a) Name: Eugene Chen

2. Reason for the notification

a) Position/status: Non-Executive Director

b) Initial notification/Amendment: Initial notification

3. Details of the issuer, emission allowance market participant, auction platform,

auctioneer or auction monitor

a) Name: Mkango Resources Limited

b) LEI: 213800RPILRWRUYNTS85

4. Details of the transaction(s): section to be repeated for (i) each type of

instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where

transactions have been conducted

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a) Description of the financial instrument, type

of instrument:

Identification code:

Common shares of nil pence each

CA60686A4090

b) Nature of the transaction: Issue of options

c) Price(s) and volume(s):

Price(s) Volume(s)

$0.07 CDN 180,000

d) Aggregated information:

Aggregated volume:

Price:

Single transaction as in 4 c) above

Price(s) Volume(s)

$0.07 CDN 180,000

e) Date of the transaction: 1st November 2017

f) Place of the transaction: Outside a trading venue

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, 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