MKANGORESOURCESLTD. 550BurrardStreet Suite2900 Vancouver
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MKANGORESOURCESLTD.
550BurrardStreet
Suite2900
Vancouver
BCV6C0A3
Canada
MKANGORELEASESHALFYEAR2026FINANCIALSTATEMENTSAND
MANAGEMENT’SDISCUSSIONANDANALYSIS
London / Vancouver: 1 September 2026 - Mkango Resources Ltd (AIM/TSX-V:MKA) (the “Company” or
“Mkango”), is pleased to announce that it has released the Financial Statements and Management’s Discussion
and Analysis (“MD&A”) for the six month period ended 30 June 2026. The Financial Statements and MD&A are
available under the Company's profile on SEDAR+ ( www.sedarplus.ca) and on the Company's website
(https://mkango.ca/investors/financials/).
H12026HIGHLIGHTSANDRECENTMILESTONES
● Cash position of US$13.6 million as at 30 June 2026. Subsequent to the half year end, the Company
completed the acquisition ofthe Remloybusiness (“Remloy”)from HeraeusAmloy Technologies GmbH
(“Heraeus”) and settled the initial €5 million (US$5.8 million) cash consideration. The Company also
receivedproceedsof£94,500andC$73,350throughtheexerciseofwarrantsandoptionsequatingtoa
totalofUS$180,515.
● Mkango is now uniquely positioned across the whole rare earth supply chain in Europe and North
America, including projects for magnet and alloy manufacturing, short, medium and long loop recycling
across UK, Germany and USA, rare earth separation in Poland, mining in Malawi, and rare earth metal
makingunderevaluation.
● Both HyProMag and the recently acquired Remloy can process feedstock derived from recycled end-of-
lifemagnetsorfromprimaryrareearthproduction,whetherthirdpartysourcedor,induecourse,from
our own projects, providing customers with a broad range of magnet and alloy products, together with
costeffectiveandenergyefficientrecyclingsolutions.
MKARBusinessCombinationAgreementandNasdaqlisting
● On 2 July 2025, Mkango Rare Earths Limited (“MKAR”) (formerly Lancaster Exploration BVI) and Crown
PropTech Acquisitions (“CPTK”) signed a Business Combination Agreement (“BCA”) to create a
geographically strategic, pure-play global rare earth platform, comprising the Songwe Hill Rare Earths
Mining Project and the Pulawy Rare Earths Separation Project. The pro forma value of Mkango’s
shareholdinginMKAR(excludingitsexistingrecyclingbusinesses)pursuanttotheBCAisUS$400million
excluding the effects of MKAR’s indebtedness, closing cash, transaction expenses, certain investments
from CPTK’s sponsor and affiliate, any net proceeds from a PIPE financing, and amounts remaining in
CPTK’strustaccount. TheBCAwasamendedon13February2026and20May2026.
● An investor presentation was filed on 10 June 2026. Discussions regarding financing are on-going and a
marketupdatewillbeprovidedinduecourse.
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● Completion of the proposed business combination (the “Proposed Business Combination”) is subject to
a number of conditions, including but not limited to, the approval of a Nasdaq listing application,
approvalbyMkangoasshareholderofMKAR,approvalbytheshareholdersofCPTK,approvalbytheTSX
VentureExchange("TSX-V"),andthesatisfactionorwaiverofotherclosingconditions.
● MKAR'smostrecentfilingofitsregistrationstatementonFormF-4withtheU.S.SecuritiesandExchange
Commission(AmendmentNo.1)wasmadeon8June2026.
● On31August2026,followingthecloseofmarkets,MKARandtheholderofoneofitspromissorynotes
(the “BCA Note”) issued under the Note Purchase Agreement, dated 2 June 2025 (the “Note Purchase
Agreement”), agreed to amend the BCA Note as of 1 July 2026 to extend its maturity to 31 December
2026, increase its principal amount to $623,766, and increase the amount due at maturity to $650,000.
Atthatsametime,MKARandtheholderofthesecondpromissorynoteissuedundertheNotePurchase
Agreement (the “F-4 Note”), agreed to reflect the interest paid as of 13 August 2026 in kind under the
F-4Noteinitsprincipalamount,increasingitto$261,250.Uponboardapprovaloftheanticipatedshare
reclassification in connection with the closing of the Proposed Business Combination, if such approval
occurs,eachholderwouldreleaseMKARfromthedebtundereachoftheBCANoteandtheF-4Notein
consideration for MKAR issuing Class A shares to them at $5.00 per share in an amount equal to such
debtamountreleased.
RareEarthMagnetRecyclingandManufacturing
Remloy
● Aspreviouslyannounced,Mkangohascompletedtheacquisitionof RemloyfromHeraeusfor€8million
(US$9.3million)incash,ofwhich€5million(US$5.8million)wassettled oncompletion andthebalance
of €3 million (US$3.5 million) is payablein cashon 28 August 2028, being the second anniversary of
completion(the“Transaction”).Thefullpressreleasecanbeaccessedviathefollowinglink: Completion
ofRemloyacquisition
● RemloyhasdevelopedaplantinBitterfeld,Germany,whichrecyclesend-of-liferareearthmagnetsvia
ameltingprocess(mediumlooprecycling)toproduceneodymium-iron-boron(“NdFeB”)alloypowders
for the bonded and hot deformed magnet markets. The Remloy process is complementary to
HyProMag’sshortlooprecyclingprocesstoproducesinteredmagnets,andtoMkangoRareEarthsUK’s
long loop recycling process, to produce mixed rare earth carbonates and oxides. Target capacity is at
least500tonnesperyearofNdFeBalloypowder.
⮚ Fully commissioned production facility, supported by significant investment in
equipment andfeedstocktodate,providingastrongfoundationforcurrent production
andfutureexpansionopportunities.
⮚ Very large stockpile of end-of-life rare earth magnets, rare earth alloys and other raw
materials, totalling approximately 345 tonnes as at completion, providing future
feedstock for Remloy and HyProMag, thereby helping to underpin their respective
growthstrategiesandprovidingfuturetradingopportunities
⮚ Targeting scale-up to full capacity over the next few years with current focus on small
scale production for product optimisation and initial sales, sample generation for
customersandongoingofftakediscussionstosupportscale-upofoperations
⮚ SignificantsynergieswithbothHyProMagandMkango
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● Formerco-HeadofHeraeusRemloy,MrDavidBender,hasbeenappointedManagingDirectorofRemloy
with effect from completion, and will work closely with the Mkango and HyProMag teams to grow the
businessandcapturesynergiesacrossthegroup.MrBenderwillcontinuetobesupportedbyMrKarsten
Rachut,HeadofTechnology,andMatthiasWeber,HeadofOperations,togetherwithastrongcorporate
andoperationalteamalreadyinplace.
Remloy Production Facility
● With Remloy’s significant magnet and alloy stockpile, Mkango is now very well positioned in the
secondarymarketformagneticmaterials,furtherenhancedbyaccessto HydrogenProcessingofMagnet
Scrap(“HPMS”)technologybeingcommercialisedbyHyProMag,whichenablescosteffectiveandenergy
efficient liberation of embedded NdFeB magnets from end-of-life and production scrap streams. There
aresignificantpotentialsynergieswithMkangoandHyProMagincluding:
⮚ Enhanced platform for growth in major market for magnetic materials through the
developmentofafurtheroperatingsiteinGermany
⮚ Supplyofend-of-lifemagnetsfromtheRemloystockpileforprocessingbytheHyProMag
group
⮚ SupplyoffeedstockderivedfromHPMSbyHyProMagtoRemloy
⮚ Technical and grant funding collaboration between Mkango, Remloy, HyProMag,
UniversityofBirminghamandPforzheimUniversity
⮚ Co-marketingofproductsfromMkango,HyProMagandRemloy,providinganexpanded
productsuitetocustomers
⮚ Future opportunity to supply primary rare earth feedstock from Mkango’s Songwe Hill
projecttoRemloyoperationsforblendingwithrecycledfeedstock
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● Inadditiontopotentialsynergies,therearesignificantgrowthopportunitiesthroughscale-upofexisting
operations and bolt on opportunities for other rare earth metal and alloy process technologies such as
stripcasting.
● Please contact David Hinkel, Manager, External Affairs and Business Development, Remloy, for further
information:[email protected]
HyProMagLtd(UK)
● The recycling and magnet manufacturing plant developed by HyProMag and the University of
Birmingham at Tyseley Energy Park (“TEP Birmingham”), UK, was officially opened by Chris McDonald
MP, UK Minister for Industry in the Department for Energy Security and Net Zero and the Department
forBusinessandTradeinJanuary2026.
● In the recent period, the focus has shifted to magnet manufacturing. The commercial scale presses and
sintering furnaces for manufacturing of magnet blocks at TEP Birmingham are fully commissioned with
sintered magnet blocks now being produced on a small scale for customer evaluation in advance of
scale-up. In parallel, pilot scale facilities at the University of Birmingham are producing samples for
evaluationacrosstheHyProMaggroup.HyProMagisreceivingstronginterest intheHyProMagproduct
suiteunderpinnedbypositivecustomertestingofsamples.
PressedNdFeBmagnetblocks HyProMagNdFeBfinishedmagnets
● Inparallelwithsupplyofmagnetsamplestocustomers,HyProMaghasproduced10.1tonnesofrecycled
neodymiumironboron(“NdFeB”)alloypowdertodatefromthecommercialscaleHydrogenProcessing
ofMagnetScrap(“HPMS”)vesselatTEPBirmingham,followingcommissioninglastyear.Inrecentweeks,
the operational focus has been on HPMS debottlenecking, ramp-up optimisation and improvements,
and initial testing of various scrap feedstocks, in parallel with recruitment and staff training, which has
resultedinlowerHPMSthroughput.ProducedHPMSpowderisnowbeingutilisedformanufacturingof
magnetblocksamplesforcustomers.ExcessHPMSpowder,overandabovewhatisrequiredformagnet
manufacturing, will continue to be produced and aggregated in batches for sale, with the priority on
scaling-upmagnetmanufacturing.
● Once all equipment at TEP Birmingham is in place and optimised for steady state operations, which is
targetedbytheendofthisyear,HyProMagistargetingscale-uptobetween100to350tonnesperyear
(dependingontheassumednumberofproductionshifts)ofNdFeBmagnetsandalloys.
● Feasibility studies have commenced for a further phased expansion of capacity at TEP Birmingham to a
minimum of 1,000 tonnes per year of NdFeB magnets and alloys. HyProMag has engaged leading
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engineering firm WSP UK LIMITED ("WSP")to complete the feasibility study.The project cost is
estimated at £1.12million, with 60%grant funded (£0.67million) by theUK Government as part of the
DRIVE35 programme, delivered by theDepartment for Business, Innovation, Science and Tradein
partnershipwiththeAdvancedPropulsionCentreandInnovateUK.
● HyProMagisengagingwithmultiplecustomerstosupportthescale-upofoperations,withcollaborations
including Siemens AG, which has incorporated recycled NdFeB magnets produced by HyProMag into a
SIMOTICS servomotor rotor recently presented at Hannover Messe 26 as follows:Hannover Messe 26
Siemens
● The Advanced Propulsion Centre funded REACT-UK project has commenced, with HyProMag serving as
lead partner. REACT-UK will produce recycled magnets for incorporation and testing in a Jaguar Land
Rover (“JLR”) motor, proving UK capacity for NdFeB manufacture that combines short, medium and
long-loopprocessing.
● HyProMag participated in JLR's Cornerstone Project, producing recycled magnet samples for
incorporation into loudspeakers within the vehicle. All magnets passed end-of-line testing at Premium
SoundSolutionsandarecontinuingproductvalidation.
● Pre-processingofharddiskdrives(“HDD”)iscontinuingatTEPBirminghamutilisingtheautomatedpre-
processing unit, developed and manufactured by Inserma Anoia S.L. (“Inserma Unit”), which provides
both magnet feedstock for HPMS processing and the opportunity for automated recovery of printed
circuit board assemblies as per the following video:HyProMag UK - Inserma HDD Pre-processing Unit.
HPMS processing of feedstock derived from pre-processing of HDDs by the Inserma Unit has
commenced.
Left: Finished coated recycled NdFeB magnets for prototype demonstrations in medical devices.
Right: Mkango, HyProMag, and University of Birmingham colleagues at the opening ceremony of the magnet
manufacturing facility at TEP.
HyProMagGmbH(Germany)
● First commissioning runs of recycled NdFeB alloy powder from the commercial scale HPMS vessel at
HyProMag’s plant site in Pforzheim, Germany, were announced in April 2026. The site is fully permitted
forproductionofupto750tonnesperannumofNdFeBmagnetsandalloys.
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● The plant was officially opened by the German Federal Ministry for Economic Affairs on 28 April 2026,
with the opening ceremony presided over by Stefan Rouenhoff, Parliamentary State Secretary of the
FederalMinistryforEconomicAffairsandEnergy.
● On 27 April 2026, the bilateral Germany-UK Business Government Forum took place in Berlin, where
Katherina Reiche, Federal Minister for Economic Affairs and Energy of Germany and The Right
Honourable Peter Kyle MP, Secretary of State for Business and Trade for the United Kingdom, signed a
Joint Statement on cooperation on Critical Raw Materials with HyProMag featuring explicitly in the
declarationasfollows: JointStatementoftheDepartmentforBusinessandTradeoftheUnitedKingdom
and the Federal Ministry for Economic Affairs and Energy of Germany on cooperation on Critical Raw
Materials
● Strongprogresshasbeenmadewiththeongoingcommissioningoftheplantduringthefirsthalfof2026
withtheHPMSvessel,jetmill,transverseandaxialpressesallcommissioned,andthefirstpressedNdFeB
magnetblocksproducedfromboththepresses.Therestoftheequipmentistargetedforcommissioning
inthecomingmonths.
FirstpressedNdFeBmagnetblocksfromthetransversepress
● Associatedinfrastructuredevelopmentsarealsoproceedingwellwithcommissioningandconnectionof
the new 1,000 kVA transformer, as well as commissioning and successful TÜV inspection and approval
ofthenew20,000-litreliquidnitrogenstoragetank.
● Once fully commissioned, the Plant will have a minimum initial capacity of approximately 100 tonnes
per annum of NdFeB increasing to up to circa 350 tonnes per annum with multiple shifts. A further
expansiontoatargeted750tonnesperannumisunderevaluation.
● HyProMagisengagingwithmultiplecustomersforNdFeBalloypowderandmagnetsonanongoingbasis
tosupportthescale-upofoperationswithstronginterestintheHyProMagproductsuite.
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Left: William Dawes, Chief Executive Officer, Mkango makes closing remarks at the HyProMag opening ceremony
in Pforzheim.
Right: Dignitaries cutting the ribbon at the HyProMag plant opening ceremony in Pforzheim.
HyProMagUSA
● InDecember2025,HyProMagUSAfinalizedtheleasefor50%ofBuilding1IronheadCommerceCenter,
approximately 125,000 square feet, to house the proposed rare-earth magnet recycling and
manufacturing facility in Dallas-Fort Worth, Texas. The site, located at the Ironhead Commerce Center,
Building 1, is strategically located next to critical infrastructure, including the BNSF intermodal rail link
and the Alliance airport as illustrated in the following fly through video:
https://www.youtube.com/watch?v=xNmJF3Hh1Mk.
● On June 3, 2026, HyProMag USA took occupation, with the lease now fully in effect, and has begun
establishinganoperationalpresenceatthesite,includinginstallationofcommunicationsinfrastructure,
securitysystemsandotherfoundationalrequirements.
● OnJune22,2026,followingfurtherdetailedengineering,HyProMagUSAannouncedincreasedprojected
magnet production capacity of approximately 1,048 tonnes per annum of recycled sintered NdFeB
magnets and 478 tonnes per annum of NdFeB co-products (total payable capacity of 1,526 tonnes per
annum) over a 40 year operating life. On this basis, the post-tax NPV is approximately US$797 million,
using a 7% real discount rate, with a real IRR of 37.1% based on forecast market prices, and
approximately US$416 million with a real IRR of 26.3% based on current market prices. The payback at
currentmarketpricesin3.1yearsand2.2yearsatforecastmarketprices.
● A joint Technical Procurement team has been set up between Intelligent Lifecycle Solutions (“ILS”) and
HyProMagUSAtooverseethescrapprocurementprocessandfourfull-timestaffmemberswereadded
to the ILS procurement team to support the stockpiling initiative. Stockpiling of end-of-life electronic
scrap has commenced and to date, ILS has engaged with several potential suppliers to establish
consistentfeedofmagnetscrap.
● In June 2026, the Company commenced procurement of critical-path long-lead equipment, including
theHPMSvesselsandmagnetprocessingandfinishingequipmentrelatingtotheHyProMagUSAproject
to secure the development schedule for the Texas Hub, the commissioning of which is now planned on
aphasedbasis,withmagnetfinishingoperationstargetedforH12027andtheintegratedHPMSsection
targetedforQ22028.
● Theinitialfinishedmagnetproductionlinewillbeutilizingupto20tonnesofmagnetblockssuppliedby
HyProMag Group operations in the United Kingdom and Germany. The HPMS section and integrated
magnet manufacturing will target initial annual production of approximately 400 tonnes of recycled
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1 Recent REO price movements have driven Nd & Pr oxide prices to levels broadly aligned with Adamas Intelligence's Q4
2025basecasepricingreportfor2028andupsidecasefor2030-2031,providingsupportfortheforecastscenario.
sintered NdFeB magnets and approximately 278 tonnes of NdFeB co-products, ramping up in stages to
the full targeted annual capacity of approximately 1,526 tonnes of magnetic products. HyProMag USA
has also initiated formal discussions with Oncor Electric Delivery Company LLC to provide power to the
TexasHub.
● The Project has received a Make More in America (MMIA) domestic finance letter of interest (“LOI”)
fromtheU.S.Export-Import(“EXIM”)Bankforitsfirstintegratedrareearthrecyclingandmagnet-making
facility in Dallas-Fort Worth, Texas. In terms of the letter, EXIM may be able to consider potential
financingofupto$92millionoftheproject’scostswitharepaymenttenorof10years.Discussionswith
EXIM are ongoing. In addition to the EXIM LOI, discussions with two commercial banks in relation to
potentialprojectfinancefortheProjectareprogressingwellandareinduediligencephase.
UpstreamRareEarthsProjects
● Mkango filed a Technical Report (the “Report”) under NI 43-101 in relation to the Definitive Feasibility
Study (“DFS”) for the Songwe Hill Rare Earths Project (“Songwe” or the “Project”) in Malawi, previously
announced on March 19, 2026. The press release in relation to the DFS update is available to be
downloaded from Mkango’s website via the following link:Mkango Announces Results of Updated
Feasibility Study for the Songwe Hill Rare Earths Project in Malawi. The Report is available to be
downloadedfromMkango’sprofileonSEDARplus( https://www.sedarplus.ca).
● ResultsoftheupdatedDFSforSongwewereissuedinMarch2026.Songwe’spost-taxnetpresentvalue
(“NPV”) is approximately $339 million, using a 10% nominal discount rate (7.3% real), with an internal
rate of return (“IRR”) of 24.32%, payback period of 3.4 years from start of full production and post-tax
life-of-operationsnominalcashflowof$1.55billion.
● Resultsofapre-feasibilitystudy(“PFS”)fortheproposedPulawyRareEarthsSeparationPlant(“Pulawy”)
in Poland were issued in March 2026 alongside the Songwe DFS update. Pulawy’s post-tax NPV is
approximately$779million,usinga10%nominaldiscountrate,withanIRRof39.7%,paybackperiodof
2.12 years from start of full production and a post-tax life-of-operations nominal cash flow of $4.95
billion.
● Applying Adamas Intelligence upside forecasts1, Songwe's post-tax NPV increases to approximately
US$489 million with a nominal IRR of 29.3%, payback period of 2.9 years from start of full production
and post-tax life-of-operations nominal cash flow of $2.04 billion while Pulawy's expanded 100%
neodymium/praseodymium ("NdPr") separation case rises to a post-tax NPV of approximately US$892
million and nominal IRR of 43.4%, payback period of 1.89 years from start of full production and post-
taxlife-of-operationsnominalcashflowof$5.58billion.
● MKARenteredintoaProjectDevelopmentFundingAgreementwiththeU.S.InternationalDevelopment
FinanceCorporation,tosecure$4.6millioninreimbursablefundingforSongweinSeptember2025.The
funds are supporting the Front-End Engineering and Design (FEED) and value engineering studies. FEED
workstreamsarecurrentlybeingprogressed,includingorevariabilityandgeotechnicaltestwork.
● In July 2026, Malawi Minister of Mining, the Honourable Thoko Tembo, MP and Director General of the
MalawiMiningRegulatoryAuthorityvisitedSongwewithalargedelegationofgovernmentofficials.