Mkango Announces Results of Updated Feasibility Study FOR the Songwe Hill Rare Earths Project IN Malawi and Pre-Feasibility Results FOR the Proposed Puławy Rare Earth Separation Plant IN Poland
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MKANGO RESOURCES LTD.
550 Burrard Street
Suite 2900
Vancouver
BC V6C 0A3
Canada
MKANGO ANNOUNCES RESULTS OF UPDATED FEASIBILITY STUDY FOR THE SONGWE
HILL RARE EARTHS PROJECT IN MALAWI AND PRE-FEASIBILITY RESULTS FOR THE
PROPOSED PUŁAWY RARE EARTH SEPARATION PLANT IN POLAND
London / Vancouver: March 19 , 2026 – Mkango Resources Ltd. (AIM/TSX -V: MKA) (the
“Company” or “Mkango”) is pleased to announce the results of the updated definitive feasibility study
(“DFS”) for the Songwe Hill Rare Earths Project (“Songwe” or the “Project”) in Malawi, and results of
a pre-feasibility study (“PFS”) for the proposed Puławy Rare Earths Separation Plant (“Puławy”) in
Poland.
Alexander Lemon, President of Mkango commented: "We are delighted to announce the results of
our updated NI 43-101 DFS for the Songwe Hill Rare Earths project and the PFS results for the Puławy
Rare Earth Separation Plant. Incorporating revised rare earth pricing, capital and operating cost
assumptions, these studies reflect our commitment to moving these high -quality projects forward. As
one of the few companies in the sector to update feasibility studies with current market pricing, Mkango
is uniquely pos itioned as a future supplier of both mined and recycled rare earths — a critical
differentiator as global demand for green transition materials accelerates. Songwe in Malawi and
Puławy in Poland are landmark projects for the communities and economies they are expected to
transform and our mission to deliver sustainable, long-term value for our shareholders."
Based on updated feasibility -study inputs and assumptions regarding rare earth pricing, production
volumes, recoveries, capital and operating costs, discount rates, tax regimes, project schedules, and
market demand forecasts, as well as the technical, envi ronmental and regulatory parameters set out in
the DFS and PFS and as summarised in this release (the “Study-level Assumptions”), selected study-
level outputs from the DFS and PFS include:
● Songwe is among the very few rare earths projects globally to have achieved the DFS stage,
with a Mining Development Agreement, a full Environmental, Social, Health Impact Assessment
(“ESHIA”) completed in compliance with IFC Performance Standards. The Global Industry
Standard on Tailings Management (2020) (“GISTM”) has been adopted for design and
management of the tailings storage facility, as well as Songwe being selected as a strategic project
under the European Union Critical Raw Materials Act (“CRMA”).
• Songwe will produce a value -add purified mixed rare earth carbonate (“MREC”)
product, which can be sold into international markets and is suitable for the proposed
Puławy separation plant in Poland.
• Neodymium, praseodymium, dysprosium and terbium are critical for the green
transition, used in permanent magnets for electric vehicles, wind turbines and many
electronic devices.
● Operating life of 18 years for Songwe, with production averaging 5,954 tonnes per year
total rare earth oxides (“TREO”) for the first full five years of production, including 1,953
tonnes per year of neodymium and praseodymium oxides, and 56 tonnes per year of
dysprosium and terbium oxides, in a MREC grading 55% TREO (dry basis).
● Songwe i nitial capital expenditure (“capex”) of approximately US$325.5 million
(including a US$27.8 million contingency) for development of mine, mill, flotation and
hydrometallurgy plants, tailings storage facility, and related project infrastructure in
Malawi.
● Puławy initial plant capex of approximately US$212 million (including a US$35.4 million
contingency) for development of a Rare Earth Separation plant and related project
infrastructure in Poland.
● Songwe post-tax net present value (“NPV”) of approximately US$339 million, using a
10% nominal discount rate, with an internal rate of return (“IRR”) of 24%, payback
period of 3.4 years from start of full production and post -tax life-of-operations nominal
cash flow of US$1.55 billion.
● Puławy post-tax NPV of approximately US$779 million, using a 10% nominal discount
rate, with an IRR of 40%, payback period of 2.12 years from start of full production and
post-tax life-of-operations nominal cash flow of US$4.95 billion.
● Applying Adamas Intelligence upside forecasts 1, Songwe's post -tax NPV increases to
approximately US$489 million with a nominal IRR of 29%, 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 Puławy's expanded 100% neodymium/praseodymium (“NdPr”) separation
case rises to a post-tax NPV of approximately US$892 million and nominal IRR of 43%,
payback period of 1.89 years from start of full production and post-tax life-of-operations
nominal cash flow of $5.58 billion.
Summary of Selected Financial DFS-level outputs for Songwe Hill – Post-Tax Basis
Item Unit Value
Life of operations post-tax nominal cash flow US$ million 1,554.0
Payback period from project start1 Years 5.9
Payback period from start of full production Years 3.4
Post-tax NPV at 10% (nominal) discount rate US$ million 339.5
Post-tax IRR (nominal) % 24.3
1 Recent REO price movements have driven Nd & Pr oxide prices to levels broadly aligned with Adamas
Intelligence's Q4 2025 base case pricing report for 2028 and upside case for 2030– 2031, providing support for
the forecast scenario.
1 Assumes project start i.e. start of capital expenditure in July 2027.
2 Figures based on Mkango owning all of the shares of Mkango Rare Earths Limited (“ MKAR”). Mkango’s
interest in MKAR will be diluted following the proposed business combination with Crown Proptech Acquisitions
and related proposed listing on Nasdaq of the MKAR shares to a significant majority interest, subject to the final
transaction structure. It is expected that MKAR will be a “controlled company” for Nasdaq listing purposes.
Songwe - Project Overview
Mkango appointed SENET, a DRA Global company, as the principal consultant to complete the original
and the updated DFS. SENET is a leading engineering, procurement and construction management
(EPCM) minerals processing and project delivery firm located in Africa. Other primary consultants for
the updated DFS included the following:
Geology, Mineral Resource, and Geotechnical Investigation: The MSA Group (Pty) Ltd (“MSA”)
Mining: Bara Consulting (Pty) Ltd (“Bara”)
Comminution: Grinding Solutions Limited (“Grinding Solutions”), Keramos
Process Plant including On- Site and Off -Site Infrastructure: SENET, a DRA Global Company
(“SENET”)
Hydrometallurgy: Australian Nuclear Science and Technology Organisation (“ANSTO”)
Flotation: KYSPY Investments (Pty) Ltd (“ KYSPYmet”), ALS Metallurgy (Pty) Ltd (“ ALS
Metallurgy”)
Tailings Storage Facility (TSF): Epoch Resources (Pty) Ltd (“Epoch”)
Environmental, Social and Health Impact Assessment (ESHIA): Digby Wells and Associates (Pty)
Ltd (“Digby Wells Environmental”), Kongiwe Environmental (Pty) Ltd
Geochemistry: SGS Australia (Pty) Ltd
Geotechnical testwork: Western Geotechnical and Laboratory Services
Logistics: C. Steinweg Bridge (Pty) Ltd
Market Intelligence: Adamas Intelligence Inc (“Adamas”)
The DFS is based on a conventional open pit contract mining operation, feeding mills, flotation and
hydrometallurgy plants on site in Malawi to produce a MREC, with an operating life (mining and
processing) of 18 years. The Company believes there is potent ial to increase the mine life given the
additional Inferred Resource, and the potential to expand the Mineral Resource. The DFS supports the
declaration of a Proven and Probable Mineral Reserve Estimate of 18.1 million tonnes grading 1.16%
TREO.
Songwe features broad zones of outcropping rare earth mineralisation on the northern slopes of a steep
sided hill. The annual processing capacity is assumed to be approximately 1.0 million tonnes per year
of ore producing an average of 5, 954 tonnes of TREO in MREC per year for the first five years and 4,
081 tonnes of TREO in MREC per year in years 6 to 18. The MREC will be cerium depleted. Because
cerium is currently considered to have challenging market fundamentals, there is a strong economic
rationale to remove as much cerium as possible and, as a result, a large proportion of the cerium will be
removed from the MREC during the hydrometallurgical process. Confirmation of the flotation and
hydrometallurgical processing flow sheets was underpinned by seven piloting campaigns at ALS
Metallurgy and ANSTO.
The final stage of hydrometallurgical piloting at ANSTO produced MREC grading 55% TREO
equivalent, enriched in Nd/Pr oxides, which together made up 31% of the rare earth oxide content in
the carbonate product (i.e. Nd/Pr oxides / TREO = 31%).
Energy supply of 25 megawatts (“MW”) is expected to be obtained from the Malawi grid network for
the Project, which in Malawi is from hydroelectric and solar sources. A 25 MW back up solar farm with
battery storage and diesel generators is also expected to be installed.
The MREC is expected to be exported via largely existing infrastructure. The Project is located
approximately 95 km by road from Blantyre, the largest commercial centre in Malawi, which is served
by a rail head and international airport.
There have been significant improvements to local infrastructure in recent years. The Malawi Roads
Authority has upgraded an existing government road from nearby Migowi to the Songwe Hill project
site. This 15 -km government road has been upgraded and widened to an all-weather gravel road with
reinforced concrete culverts, embankments and bridges installed.
The MREC is expected to be sold to the proposed Puławy project in Poland for separation. The DFS is
based on the sale of MREC. The Puławy PFS, completed by PRODEO Consulting (Pty) Ltd and dated
19 March, 2026, indicates a separation cost of approximately US$2.142 per kilogram of TREO in
MREC to produce the designated product suite at Puławy. The PFS forecasts a separation plant CAPEX
for the proposed separation plant (expanded capacity, 100% separation plant option) targeted at
approximately US$212 million3.
Based on the Study- level Assumptions, the following summary of the key inputs and results of the
updated Songwe DFS is presented in the tables below:
Summary of Mining and Processing Inputs and Results – Average over First Full Five Years
Item Unit Value
Mining
Average yearly ore mined kt 2,186
Average TREO grade mined % 1.19
Average yearly waste mined kt 3,667
Average strip ratio (waste:ore) 1.68
Processing
Average yearly flotation plant feed kt 1,000.8
Average plant feed TREO grade % 1.50
Flotation TREO concentrate grade % 15.05
Average TREO recovery to concentrate % 74.10
2 The OPEX estimate was developed to the level of accuracy required for an AACE Class 4 estimate (an overall
weighted accuracy of ±25%). The OPEX estimate has a base date of 25 February 2026, with no provision for
escalation.
3 The CAPEX estimate was developed to the level of accuracy required for an AACE Class 4 estimate (an overall
weighted accuracy of ±25%). The CAPEX estimate has a base date of 25 February 2026, with no provision for
escalation.
Average yearly flotation concentrate feed to hydrometallurgical plant kt 74.06
Average NdPr oxide hydrometallurgical recovery to carbonate % 85.3
Average Ce oxide hydrometallurgical recovery to carbonate % 20.9
Average yearly TREOs in carbonate product t 5,954
Average carbonate TREO grade % 55
Average yearly carbonate production (dry basis) t 10,826
Summary of Mining and Processing Inputs and Results – Life of Operations (averages)
Item Unit Value
Life of operations (mining and processing) Years 18
Mining
Average yearly ore mined kt 1,481
Average TREO grade mined % 1.16
Average yearly waste mined kt 3,311
Average strip ratio (waste:ore) 2.2
Processing
Average yearly flotation plant feed kt 1,000.8
Average plant feed TREO grade % 1.16
Flotation TREO concentrate grade % 11.64
Average TREO recovery to concentrate % 74.10
Average yearly flotation concentrate feed to
hydrometallurgical plant
kt 74.06
Average NdPr oxide hydrometallurgical recovery to carbonate % 85.3
Average Ce oxide hydrometallurgical recovery to carbonate % 20.9
Average yearly TREOs in carbonate product t 4,634
Average carbonate TREO grade % 55.00
Average yearly carbonate production (dry basis) t 8,425
Summary of Mining and Processing Inputs and Results – Life of Operations (totals)
Item Unit Value
Mining
Total ore mined kt 18,147.8
Total waste mined kt 40,553.9
Strip ratio (waste: ore) 2.2
Processing
Total flotation concentrate feed to hydrometallurgical plant kt 1,341.4
Total contained TREO in carbonate product kt 83.4
Total carbonate production (dry basis) t 151,644
Market and Financial Analysis
A detailed financial model was constructed based on input parameters and the Study-level Assumptions
set out in the DFS. Free cash flows were modelled in both real and nominal terms for a range of discount
rates and on a debt free basis.
MREC price forecasts and underlying rare earth oxide (“REO”) price forecasts were based on the
following current market analysis by Adamas Intelligence from their Q4 2025 dated report entitled Rare
Earth Market Outlook: Independent Analysis for Inclusion in Mkango Resources’ Songwe Hill
Feasibility Study (the “Adamas Analysis”). Adamas Intelligence highlights that from 2024 through
2040:
• Global demand for NdFeB magnets is expected to increase at a compound annual growth rate
(“CAGR”) of 8.5%, bolstered by double-digit growth from the electric vehicle and wind power
sectors, translating into comparable demand growth for the rare earth elements (“REEs”) (i.e.,
neodymium, praseodymium, dysprosium and terbium) that these magnets contain.
• Global production of neodymium, praseodymium, dysprosium and terbium are forecast to
collectively increase at a slower CAGR of 7.4 % as the supply side of the market increasingly
struggles to keep up with rapidly growing demand.
Based on the Adamas Analysis, from 2024 through 2040, the global rare earth industry is expected to
consistently underproduce neodymium, praseodymium, dysprosium and terbium oxides (or oxide
equivalents), resulting in the depletion of historically accumulated inventories and, ultimately, shortages
of these critical magnet materials if supply is not increased beyond the levels currently anticipated.
Songwe offers strong economic exposure to the rare earth permanent magnet sector, which is the fastest-
growing end-use category for rare earths and the one most in need of additional rare earth supplies.
Based on the DFS metallurgical recoveries, MREC composition, and the Adamas Analysis, the DFS
indicates that the high proportion of valuable magnet -related REEs in the Songwe Hill project’s
prospective TREO production means that a future mine (with separation) could generate approximately
95% of its rare earth revenues from just 34% of its production volume.
Adamas Intelligence forecasts the following for the basket value (real 2025 US dollars) of Songwe
Hill’s TREO production:
• Base case: US$28.40/kg in 2025 increasing to US$69.60/kg in 2034
• Upside scenario: US$28.91/kg in 2025 increasing to US$79.39/kg in 2034
The key revenue drivers for Songwe are neodymium and praseodymium. The base case basket value
and MREC price forecasts reflect underlying neodymium oxide (Nd oxide) and praseodymium oxide
(Pr oxide) price forecasts.
Based on the preceding assumptions and the other Study-level Assumptions, the discounted cash flow
valuation analysis for the base case in the DFS provided the following results:
• NPV at 10% (nominal) (7.3% real) of US$339 million as at 30 June 2025
• IRR of 24.3% (nominal) (21.3% real)
These are project-level economic assessment outputs used to evaluate potential economic viability and
do not constitute corporate -level forecasts or guidance. Actual results may differ materially if Study -
level Assumptions change.
NPVs of Songwe Hill Project1
Financial
Evaluation
Nominal
Discount
Rate
(%)
Real
Discount
Rate
(%)
Adamas Intelligence
Base Case
Post-Tax NPV
(US$m)
Adamas Intelligence
Upside Case
Post-Tax NPV
(US$m)
8.0 5.37 461.2 644.8
Base Case 10.0 7.32 339.5 488.5
12.0 9.27 247.3 369.8
Nominal Internal Rate of Return 24.3% 29.3%
Real Internal Rate of Return 21.3% 26.1%
1 As at 30 June 2025
Operating Costs
Cash operating costs include the costs of contract mining, milling, flotation, leaching, purification and
precipitation to produce a MREC in addition to other costs associated with the operation. The operating
costs do not include the cost of separation, which is reflected in the 15% discount applied to the basket
value of the REOs in MREC. The estimate of operating expenditure (“ OPEX”), and the associated
general and administration (“G&A”) costs, were calculated to an accuracy of ±10% and were utilised
in the economic analysis of the Project.
Reagents and consumables account for 49% of estimated OPEX , with power accounting for an
additional 13%. The Company and SENET, together with the Company’s other consultants, have
identified opportunities to reduce reagent consumption and optimise the flowsheet. This will be
investigated further in parallel with front end engineering and design (“FEED”) work for Songwe.
Operating Costs – Average over First Full Five Years
Item Value (US$/kg TREO)
Mining 5.4
Beneficiation – Milling and Flotation 9.1
Hydrometallurgical Plant 5.2
G&A and Other 2.5
Total Operating Costs 22.3
Operating Costs – Average over Life of Operations
Item Value (US$/kg TREO)
Mining 4.4
Beneficiation – Milling and Flotation 11.6
Hydrometallurgical Plant 6.8
G&A and Other 3.2
Total Operating Costs 26.1
Capital Expenditure
The estimate of initial capital expenditure costs was calculated to an accuracy of ±10% and was utilised
in the economic analysis of the Project. The largest capex component is an integrated processing plant
comprising a mill, flotation plant, hydrometallurgical plant, and a sulphuric acid plant with co-generated
power capacity. The capex estimate for the integrated processing plant was completed by SENET and
covers the design, engineering, procurement, supply/manufacture, construction and pre-commissioning
of the proposed new processing facility and associated plant complex infrastructure including a 24.4
MW solar facility. Other major capex items include the cost of a lined tailings storage facility with
design provided by Epoch.
Based on the Study-level Assumptions in the DFS, total initial capital expenditure is US$297.8 million,
not including a contingency of US$27.8 million.
Capital Cost Summary
Item Value (US$ million)
Total Development Capital 297.8
Contingency 27.8
Total Development Capital Including Contingency 325.5
Sustaining capital and reclamation 91.5
Total Capital Expenditure 417.0
Capital Cost Breakdown
Description CAPEX (US$) Contingency (US$) Total CAPEX (US$)
Earthworks 8,151,015 776,287 8,927,303
Civil Works – Plant 19,480,113 2,060,397 21,540,510
Civil Works – Infrastructure 2,068,686 197,018 2,265,704
Infrastructure 2,918,556 138,979 3,057,535
Structural Steel 6,345,323 423,022 6,768,345
Plate Work 2,658,354 177,224 2,835,578
Tankage 4,332,050 322,047 4,654,097
Machinery and Equipment 52,477,378 2,894,436 55,371,814