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MKANGORESOURCESLTD.
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Suite2900
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HYPROMAGANDMKANGORAREEARTHSUKTOCOLLABORATEINMAJORNEWGRANTFUNDED
PROJECTTODEVELOPRECYCLEDMAGNETSFORHIGHGRADEAUTOMOTIVEAPPLICATIONS
London / Vancouver: April 14, 2026– Mkango Resources Ltd. (AIM/TSX-V: MKA) (“Mkango”) is
pleased to announce that its subsidiaries, HyProMag Ltd (“HyProMag”) and Mkango Rare Earths UK
(“Mkango UK”), have been announced as a Collaborative Project winner of the DRIVE35 R&D
competition,namedRareEarthAutomotiveCircularTechnologiesfortheUK(the“Project”or“REACT
UK”). The funding award from the UK Department for Business and Trade is facilitated via the
AdvancedPropulsionCentreUK(“APC”)inpartnershipwithInnovateUK.
Highlights
The Project aims to establish and deliver a full circular UK supply chain for rare earth
neodymium-iron-boron(“NdFeB”)magnetsusedintheautomotivesector.
TheconsortiumcomprisesHyProMag(asleadpartner),MkangoRareEarthsUK,EMRGroup
Limited,JaguarLandRover,LessCommonMetalsandTheUniversityofBirmingham.
The Project will deliver automotive magnet grades by combining different recycling
methods,maximisingefficiencyandsustainabilitywhilstminimisingcost.
ThetotalProjectcostamountsto£6.5millionover3yearsofwhich£3.2millionor49%willbefunded
by UK Government as part of the £4 billion DRIVE35 programme, delivered by the Department for
BusinessandTradeinpartnershipwiththeAPCandInnovateUK.
HyProMag’s portion of the Project cost totals £3.2 million of which £1.5 million will be grant funded.
MkangoUK’sportionoftheProjectcosttotals£2.3millionofwhich£1.1millionwillbegrantfunded.
REACT UK brings together a strong UK consortium led by HyProMag to recover, recycle and
remanufacture NdFeB magnets from end-of-life hybrid and electric vehicles. By combining advanced
recyclingroutesandinnovativehydrogen-basedprocessing,theProjectwilldeliverhighperformance
automotivemagnetgradeswhileimprovingsustainability,resilienceandsecurityofsupply.REACTUK
isasignificantstepforwardinsupportingtheUK’stransitiontozeroemissionmobility,strengthening
domesticmanufacturingcapability,andembeddingcirculareconomyprinciplesatscale.
William Dawes, Chief Executive of HyProMag Ltd commented:“We are very excited about this
innovativeprojectandtheopportunitytoacceleratedevelopmentofhighergrademagnetsforelectric
drivemotorapplications,complementingourexistingportfolioofmagnetgrades.ThisProjectfurther
cementsMkango’sandHyProMag’searlymoveradvantageintherareearthmagnetrecyclingand
manufacturing sector, highlighting its competitive position and strong network of industry and
academicpartners.”
NickMann,ManagingDirectorofHyProMagLtdcommented: “ThisprojectwillcatalyseaUKsupply
of magnets for automotive drive motor applications, ensuring that cost and sustainability are
maximised for different performance requirements. This is a very strong consortium and the
developmentsthroughtheprojectprovidearealstepchangetotheUK’salreadyexistingrareearth
supplychain.”
Nielson Beddoe, Managing Director of Mkango Rare Earths UK Ltd commented:“TheREACTUK
projectrepresentsakeymilestoneinestablishingatrulyintegratedandresilientrareearthmagnet
supplychainintheUK.Bybringingtogetherupstreamrecycling,advancedmaterialsprocessing,and
downstreammanufacturingwithinasinglecollaborativeframework,theprojectnotonlyaccelerates
technologydevelopment,butalsolaysthefoundationforindustrialscale-up.”
Ian Constance, Chief Executive of the Advanced Propulsion Centre commented:“The projects
announcedunderthislatestroundoffundingdemonstratetheUK’sdeterminationtoleadtheshiftto
zero-emissionmobility.ByfacilitatingtheUKGovernment’sDRIVE35grants,weareturningworld-
classinnovationintoindustrialcapability.WithourpartnersinDBTandInnovateUK,wearebacking
manufacturers,empoweringSMEs,andstrengtheningtheUK’ssovereignsupplychain.Thismulti-
million-poundsupportpackageismorethananinvestmentintechnology;itisaninvestmentinthe
people,skills,andcompaniesthatwilldefinethefutureofcleantransport.Together,wearebuilding
thefoundationsofacompetitive,resilient,andsustainableautomotiveindustry.”
AboutREACT-UK
The REACT-UK (Rare Earth Automotive Circular Technologies for the UK) project aims to deliver a full
circular economy for rare earth neodymium iron boron magnets in the UK automotive sector. The
project will develop technologies to extract these magnets from hybrid and electric vehicle drive
motors (“EMR Group Limited” or “EMR”) and make the rotors suitable for downstream extraction of
magnets using Hydrogen Processing of Magnet Scrap (“HPMS”) developed at the University of
BirminghamandexclusivelylicensedbyHyProMagLtd.
HPMSwillbeusedtoliberateNdFeBmagnetsfromdrivemotorassembliesasademagnetisedNdFeB
alloypowder,whichwillthenfeedmultiplenodesofthevaluechain.NdFeBalloypowderwillbefed
to Mkango UK to chemically extract neodymium, dysprosium and terbium from the alloy powder as
an oxide. The oxide will be converted into metals and alloyed by Less Common Metals (“LCM”). LCM
willalsoprocessHPMSNdFeBpowderstraightthroughtostripcastalloysbythedirectre-meltroute.
ThestripcastalloysproducedfromboththeserouteswillbeblendedwithHPMSNdFeBpowderand
thenremanufacturedbymilling,magneticalignment,pressingandsinteringintonewNdFeBmagnets
by HyProMag. Post sintering, the University of Birmingham (“UoB”) will investigate the use of grain
boundary diffusion of heavy rare earths to increase the coercivity of the magnets. The project will
targetahighcoercivitygradeofmagnetusedacrossJaguarLandRover(“JLR”)drivemotorrotors.JLR
willprovideinformationtoEMRonlocationsformagnetsonvehiclestodevelopamassbalanceacross
their vehicles and provide guidance on disassembly procedures. EMR will provide a feedback loop to
JLR design engineers, to facilitate future circular economy principles for magnet containing
components.
REACT-UK builds on previous collaborative innovation with the Project partners including Securing
CriticalRareEarthMagnetsfortheUKSupplyChain(“SCREAM”).TheSCREAMprojectwasfundedby
the Driving the Electric Revolution challenge, delivered by Innovate UK for UK Research and
Innovation.
TyseleyMagnetManufacturingScale-upFeasibilityStudy
HyProMag was also successful on a second grant funding opportunity facilitated by the APC. The
second grant is designed to support detailed feasibility studies into the deployment of UK based
manufacturing facilities for zero emission vehicle technologies. Further details will be announced as
theybecomeavailable.
AboutMkangoResourcesLtd.
MkangoislistedontheAIMandtheTSX-VStockExchanges.Mkango’scorporatestrategyistobecome
a market leader in the production of recycled rare earth magnets, alloys and oxides, through its
interestinMaginitoLimited(“Maginito”),whichisowned79.4percentbyMkangoand20.6percent
by CoTec Holdings Ltd (“CoTec”), and to develop new sustainable sources of neodymium,
praseodymium, dysprosium and terbium to supply accelerating demand from electric vehicles, wind
turbinesandothercleanenergytechnologies.
Maginito holds a 100 per cent interest in HyProMag Limited and a 90 per cent direct and indirect
interest (assuming conversion of Maginito’s convertible loan) in 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 (“Mkango UK”), focused on long loop rare earth magnet recycling in the
UKviaachemicalroute.
Maginito and CoTec are also expanding HPMS recycling technology into the United States via the
50/50ownedHyProMagUSAjointventurecompany.
Mkango currently owns 100% of the advanced stage Songwe Hill rare earths project in Malawi and
the proposed Puławy rare earths separation plant in Poland. Both the Songwe and Puławy projects
havebeenselectedasStrategicProjectsundertheEuropeanUnionCriticalRawMaterialsAct.Songwe
hasalsoreceivedDevelopmentFundingfromtheU.S.InternationalDevelopmentFinanceCorporation
(DFC), the U.S. Government’s development finance institution, securing US$4.6 million in
reimbursable funding for Front End Engineering and Design. Mkango signed a Business Combination
AgreementwithCrownPropTechAcquisitionstolisttheSongweHillandPuławyrareearthsprojects
onNASDAQviaaSPACMergerunderthenameMkangoRareEarthsLimited.
Formoreinformation,pleasevisitwww.mkango.ca
MarketAbuseRegulation(MAR)Disclosure
TheinformationcontainedwithinthisannouncementisdeemedbytheCompanytoconstituteinside
information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has
been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication
of this announcement via Regulatory Information Service, this inside information is now considered
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CautionaryNoteRegardingForward-LookingStatements
This news release contains forward-looking statements (within the meaning of that term under
applicable securities laws) with respect to Mkango. Generally, forward looking statements can be
identifiedbytheuseofwordssuchas“plans”,“expects”or“isexpectedto”,“scheduled”,“estimates”
“intends”, “anticipates”, “believes”, or variations of such words and phrases, or statements that
certainactions,eventsorresults“can”,“may”,“could”,“would”,“should”,“might”or“will”,occuror
beachieved,orthenegativeconnotationsthereof.Readersarecautionednottoplaceunduereliance
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-lookingstatementswillnotoccur,whichmaycauseactualperformanceandresultsinfuture
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, , the availability of (or delays in obtaining) financing to develop Songwe Hill,
the recycling plants being developed by Maginito in the UK, Germany and the US (the “Maginito
Recycling Plants”), governmental action and other market effects on global demand and pricing for
the metals and associated downstream products for which Mkango is exploring, researching and
developing, geological, technical and regulatory matters relating to the development of Songwe Hill,
the ability to scale the HPMS and chemical recycling technologies to commercial scale, competitors
having greater financial capability and effective competing technologies in the recycling and
separation business of Maginito and Mkango, availability of scrap supplies for Maginito’s recycling
activities, government regulation (including the impact of environmental and other regulations) on
andtheeconomicsinrelationtorecyclingandthedevelopmentoftheMaginitoRecyclingPlantsand
Pulawy,andfutureinvestmentsintheUnitedStatespursuanttotheproposedcooperationagreement
between Maginito and CoTec, cost overruns, complexities in building and operating the plants, and
thepositiveresultsoffeasibilitystudiesonthevariousproposedaspectsofMkango’sandMaginito’s
activities. 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 assume no
obligationtoupdateorreviseanyforward-lookingstatements,whetherbecauseofnewinformation,
future events or otherwise, except as required by applicable law. Additionally, the Company
undertakesnoobligationtocommentontheexpectationsof,orstatementsmadeby,thirdpartiesin
respectofthemattersdiscussedabove.
ForfurtherinformationonMkango,pleasecontact:
MkangoResourcesLimited
WilliamDawes
ChiefExecutiveOfficer
AlexanderLemon
President
Canada:+14034445979
www.mkango.ca
@MkangoResources
MontfortCommunications
NickMiles,Ann-marieWilkinson,JackHickman
UK:+442035140897
SPAngelCorporateFinanceLLP
NominatedAdviserandJointBroker
CarolineRowe,JenClarke,DevikMehta
UK:+442034700470
AlternativeResourceCapital
JointBroker
AlexWood,KeithDowsing
UK:+442045309160/9177
H&PAdvisoryLimited
JointBroker
AndrewChubb,LeifPowis,JayAshfield
UK:+442079078500
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