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MKA.V ·

Mkango Renews Thambani Licence

Permits & Approvals

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MKANGO RESOURCES LTD.

706 27 Avenue NW,

Calgary, Alberta T2M 2J3

MKANGO RENEWS THAMBANI LICENCE

Calgary, Alberta: August 23 , 2017 – Mkango Resources Ltd. (AIM / TSXV: MKA ) (the " Company" or

"Mkango"), is pleased to announce that the Government of Malawi has granted a further two year

renewal, from September 8, 2017, for Exclusive Exploration Licence ("EPL") 0303/10R3 ("the Thambani

Licence"), in southwest Malawi.

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

associated minerals. In May 2017, Mkango announced the results of recent exploration at Thambani. Assay

results from 85 rock grab samples returned high grade uranium, tantalum and niobium values, ranging up

to 3.3 % U 3O8, 1.9 % Ta 2O5 and 6.0 % Nb 2O5. 35 of the samples graded above 500ppm U 3O8 and 24 graded

above 1,000ppm U 3O8. The May 2017 press release can be accessed via the following link:

http://www.mkango.ca/s/news.asp?ReportID=790626. Mkango is currently evaluating strategic options for

Thambani, including opportunities to joint venture or spin -off the project, and other potential avenues to

create value.

About Mkango Resources Ltd.

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 Exploration Limited, a 100% interest

in two exclusive prospecting licences 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 ef ficiency 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 International

to collaborate in the rare earths sector. In March 2017, Mkango entered into a MOU with Metalysis Limited

to jointly research, develop and commercialise novel rare earth metal alloys for use in three -dimensional

(3D) printed permanent magnets.

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

expectations upon which they are based will occur. B y 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.

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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, 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

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 constitute an offer to sell or a solicitation of an offer to buy any equity or other

securities of the Corporation in the United St ates. The securities of the Corporation 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.