Earnings release
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1 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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2 ● 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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3 ● 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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4 ● 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:dhinkel@mkango.ca 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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5 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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6 ● 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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7 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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8 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.
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9 2PersonDischargingManagerialResponsibilities Left: Malawi Minister of Mining Hon. Thoko Tembo, MP and Mkango President, Alexander Lemon, at Songwe Hill on a site visit. Right: Songwe Hill in the background. Qualified Persons: The scientific and technical information in this news release relating to the Songwe Hill Rare Earths Project and the proposed Pulawy Rare Earths Separation Plant has been extracted from the Company’s news release of March 19, 2026 announcing the results of the updated Definitive Feasibility Study for Songwe Hill and the pre-feasibility results for Pulawy, and from the Report, which was prepared by SENET under the guidance of Mr Philemon Bundo, a Qualified Person as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects. The Qualified Persons responsible for that disclosure are named in that news releaseandintheReport,andeachisindependentofMkango.TheCompanyconfirmsthatitisnotawareofany new material scientific or technical information that would make the disclosure in that news release or in the Reportinaccurateormisleading.ReadersarereferredtothatnewsreleaseandtotheReport,whichisavailable under Mkango’s profile on SEDAR+, for the assumptions, parameters, qualifications and procedures associated withtheDFSandwiththemineralresourceandmineralreserveestimatesforSongwe. GrantingofOptions Subject to regulatory approval, Mkango has granted 550,000 stock options over 550,000 common shares of the Company ("Options") to management (non-PDMR2) in accordance with the Company's existing Option Plan. EachOptionisexercisableforonecommonshareofMkango("MkangoShares"),withanexercisepriceof$0.71 CAD (approximately 37.6 p using an exchange rate of 0.53 CAD:GBP) per common share, being the closing price of the Mkango Shares on the TSX-V on 31 August 2026. The Options will vest over the next 18 months and are valid for a period of ten years from the date of the grant. Following the issue of Options, the total number of common shares issuable pursuant to the Company's securities-based compensation plans is 19,879,933, representing5percentoftheCompany'stotalissuedsharecapital. Semi-AnnualReporting Mkango announces that it has elected to adopt the semi-annual reporting (“SAR”) pilot program utilising the exemptionsprovidedunderCoordinatedBlanketOrder51-933ExemptionstoPermitSemi-AnnualReportingfor Certain Venture Issuers, granted by the Canadian securities regulatory authorities under Canadian securities laws. PursuanttotheSAR, theCompanyisexemptfromtherequirementtofileaninterimfinancialreportand related management's discussion and analysis for the first and third interim periods of each financial year. This news release is being filed pursuant to Coordinated Blanket Order 51-933 Exemptions to Permit Semi-Annual ReportingforCertainVentureIssuers.
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10 The initial interim period for which the Company does not intend to file an interim financial report and related management's discussion and analysis is the nine-month period ending 30 September 2026. The Company will neverthelesscontinuetoprovidequarterlyoperationalupdatestothemarket. Semi-annual reporting aligns Mkango with the reporting practice of its peers on AIM and with the periodic reportingrequirementsthatwillapplytoMKARoncompletionofitsproposedlistingonNASDAQ. AboutMkangoResourcesLtd. MkangoislistedontheAIMandtheTSX-VStockExchanges.Mkango’scorporatestrategyistobecomeamarket leader in the production of recycled rare earth magnets, alloys and oxides, through its interest in Maginito Limited (“Maginito”), which is owned 79.4 per cent by Mkango and 20.6 per cent by CoTec Holdings Ltd (“CoTec”),andtheRemloybusinessacquiredbyitswhollyownedGermansubsidiary,todevelopnewsustainable sources of neodymium, praseodymium, dysprosium and terbium to supply accelerating demand from electric vehicles,windturbinesandothercleanenergytechnologies. 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 magnetrecyclingandmanufacturingintheUKandGermany,respectively,anda100percentinterestinMkango Rare Earths UK Ltd (“Mkango UK”), focused on long loop rare earth magnet recycling in the UK via a chemical processingroute. Maginito and CoTec are also expanding HPMS recycling technology into the United States via the 50/50 owned HyProMagUSAjointventurecompany. RemloyhasdevelopedaplantinBitterfeld,Germany,whichrecyclesend-of-liferareearthmagnetsviaamelting process(mediumlooprareearthmagnetrecycling)toproduceneodymium-iron-boron(“NdFeB”)alloypowders forthebondedandhotdeformedmagnetmarkets,complementarytoHyProMag’sshortlooprecyclingprocess, to produce sintered magnets, and to Mkango UK’s long loop recycling process, to produce mixed rare earth carbonatesandoxides. Mkangocurrentlyowns100%oftheadvancedstageSongweHillrareearthsprojectinMalawiandtheproposed Pulawy rare earths separation plant in Poland. On grant of the large-scale mining licence the Government of Malawi may elect to take a free 10% interest in the entity holding that licence. Both the Songwe and Pulawy projects have been selected as Strategic Projects under the European Union Critical Raw Materials Act. Songwe has also received Development Funding from the U.S. International Development Finance Corporation (DFC), the U.S. Government’s development finance institution, securing US$4.6 million in reimbursable funding for Front End Engineering and Design. MKAR has signed a Business Combination Agreement with CKPT to list the SongweHillandPulawyrareearthsprojectsonNASDAQviaaSPACmergerunderthenameMkangoRareEarths Limited. Formoreinformation,pleasevisit www.mkango.ca MarketAbuseRegulation(MAR)Disclosure The information contained within this announcement is deemed by Mkango to constitute inside information as stipulatedundertheMarketAbuseRegulations(EU)No.596/2014('MAR')whichhasbeenincorporatedintoUK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory InformationService,thisinsideinformationisnowconsideredtobeinthepublicdomain. CautionaryNoteRegardingForward-LookingStatements Thisnewsreleasecontains“forward-lookingstatements”and“forward-lookinginformation”withinthemeaning of applicable Canadian securities legislation and other applicable securities laws (together, “forward-looking statements”) with respect to Mkango and its subsidiaries. Generally, forward-looking statements can be identifiedbytheuseofwordssuchas“plans”,“expects”or“isexpectedto”,“scheduled”,“estimates”,“intends”, “anticipates”, “believes”, “targets”, or variations of such words and phrases, or statements that certain actions,
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11 events or results “can”, “may”, “could”, “would”, “should”, “might” or “will”, occur or be achieved, or the negativeconnotationsthereof. Forward-looking statements in this news release include, without limitation, statements regarding: in relation toRemloy,thetargetedcapacityofatleast500tonnesperyearofNdFeBalloypowdersandthetargetedscale- up to full capacity, the focus on product optimisation, initial sales, sample generation and offtake discussions, the expectation that the Remloy stockpile will provide future feedstock and trading opportunities, the anticipatedsynergiesbetweenMkango,RemloyandHyProMag,andthepaymentofthedeferredconsideration of €3 million on 28 August 2028; in relation to HyProMag in the United Kingdom, the targeting of steady state operations at TEP Birmingham by the end of 2026 and scale-up to between 100 and 350 tonnes per year, the feasibilitystudyforexpansiontoaminimumof1,000tonnesperyearanditsoutcome,thecontinuedproduction and sale of excess HPMS powder, and customer engagement, qualification and collaborations; in relation to HyProMag in Germany, the targeted commissioning of the balance of the major equipment, minimum initial capacityofapproximately100tonnesperannumincreasingtocirca350tonnesperannumwithmultipleshifts, and further expansion to a targeted 750 tonnes per annum under evaluation; in relation to HyProMag USA, the phaseddevelopmentoftheTexasHubandthetargetedtimingofmagnetfinishingoperationsinH12027andof theintegratedHPMSsectioninQ22028,thesupplyofupto20tonnesofmagnetblocksfromHyProMagGroup operationsintheUnitedKingdomandGermany,targetedinitialannualproductionofapproximately400metric tonnes of recycled sintered NdFeB magnets and approximately 278 metric tonnes of NdFeB co-products, the staged ramp-up to full targeted annual capacity of approximately 1,526 metric tonnes over a projected 40 year operating life, scrap procurement and stockpiling, the supply of power to the Texas Hub, and the EXIM letter of interest and discussions with commercial banks regarding project financing; in relation to Songwe and Pulawy, theresultsoftheupdatedSongweDFSandofthePulawyPFS,includingtheprojectedeconomicsandtheAdamas Intelligence upside cases, the progression of FEED and value engineering workstreams, the drawdown of the DFC development funding, and the retention of Strategic Project status under the European Union Critical Raw MaterialsAct;inrelationtotheProposedBusinessCombination,theeffectivenessoftheregistrationstatement onFormF-4,itscompletion,thereleaseoftheconvertibleloannotesinconsiderationforClassAsharesinMKAR on completion, and the implied pro forma valuation of Mkango’s shareholding in MKAR; and the grant of the Options,whichissubjecttoregulatoryapproval. The projected economics referred to in this news release for the Texas Hub, Songwe and Pulawy, including net presentvalue,internalrateofreturn,paybackperiodandlife-of-operationscashflow,andtheimpliedproforma valuation of Mkango’s shareholding in MKAR, constitute financial outlook within the meaning of applicable Canadian securities laws. That information was prepared as at March 2026 in the case of Songwe and Pulawy andasatJune2026inthecaseoftheTexasHub,andisincludedtoassistreadersinunderstandingthepotential scale and economics of these projects. It may not be appropriate for other purposes, is not a forecast of actual results, and is based on the assumptions, qualifications and procedures set out in the relevant studies and announcements, including assumed commodity prices, discount rates, exchange rates, capital and operating cost estimates, production rates and operating lives. Actual results will differ and those differences may be material. The forward-looking information in this news release is based on certain material factors and assumptions, including: that commissioning, equipment delivery and ramp-up at TEP Birmingham, Pforzheim, Bitterfeld and theTexasHubproceedsubstantiallyonthetimelinescurrentlyanticipatedandthatlong-leaditemsarereceived in accordance with the Company’s procurement plans; that targeted capacities, yields and ramp-up rates are achieved and that products meet customer specifications and qualification requirements; that feedstock and scrap, including magnet blocks from HyProMag Group operations in the United Kingdom and Germany and feedstock derived from HPMS, are available in the quantities, to the specifications and on the terms required, and that customer engagement and offtake discussions result in binding arrangements on acceptable terms; that Remloy is successfully integrated, key personnel are retained and the anticipated synergies are realised; that the assumptions underlying the Songwe DFS, the Pulawy PFS and the Texas Hub economics, including commodity prices, discount rates, exchange rates and capital and operating cost estimates, prove to be
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12 reasonable; that project financing, including any financing from EXIM or commercial banks, is obtained on acceptable terms and within the timeframes anticipated and that the DFC development funding remains available; that the Proposed Business Combination is completed on the terms and within the timeframe contemplated; that all necessary permits, approvals and Strategic Project status are obtained and maintained; and that there are no material adverse changes in export controls, trade measures, tariffs, energy costs, the availability of critical inputs, or general economic, market, currency and geopolitical conditions. Although the Companyconsidersthesefactorsandassumptionstobereasonablebasedoninformationcurrentlyavailableto it,theymayprovetobeincorrect,andactualresultsmaydiffermateriallyfromthoseanticipated. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to known and unknown risks and uncertainties affecting the Company, including but not limited to: delays in, or failuretocomplete,thedelivery,installation,commissioning,start-uporramp-upofequipmentandoperations at any of the group’s sites, including as a result of long lead times or supply constraints; the risk that actual production,yields,productqualityorramp-upratesdiffermateriallyfromthosetargeted,includingthetargeted capacities at TEP Birmingham, Pforzheim, Bitterfeld and the Texas Hub; the availability, quantity, quality and cost of feedstock and scrap, including magnet blocks supplied from HyProMag Group operations in the United Kingdom and Germany, and the risk that the arrangements for that supply are not concluded on acceptable terms; the outcome of customer qualification programmes and the ability to secure and maintain offtake arrangements; the risk that the anticipated benefits and synergies of the Remloy acquisition are not realised, including as a result of difficulties in integration or the loss of key personnel, together with risks relating to the separation of Remloy from the Heraeus group and to liabilities assumed on completion; the risk that the assumptions underlying the Songwe DFS, the Pulawy PFS and the Texas Hub economics prove to be incorrect and that actual economics differ materially from those projected; the availability of project financing on acceptable terms, including the risk that the EXIM letter of interest does not result in financing and that discussions with commercial banks are not concluded; the risk that the Proposed Business Combination is not completed on the anticipated terms or timing, or at all, in which case the convertible loan notes fall due for payment in cash rather than being released in consideration for shares; risks relating to the development, protectionandperformanceoftheHPMStechnology;exportcontrols,traderestrictionsandtariffsaffectingthe availabilityorcostofcriticalequipment,technologyorrareearthinputs;volatilityinrareearthandNdFeBprices and in exchange rates; competition and changes in demand for magnetic materials; permitting, environmental and other regulatory risks, and the political, fiscal, legal, taxation and currency risks of operating in Malawi, Poland, Germany, the United Kingdom and the United States; increases in energy, labour, materials and construction costs, contractor performance, project delays and cost overruns; and general economic, market, transportandgeopoliticaldisruptions. Forward-looking statements in this news release also include, without limitation, statements under “About Mkango Resources Ltd.” concerning the Proposed Business Combination, the development of Songwe Hill and Pulawy,theexpansionofrareearthmagnetrecyclingoperationsintheUnitedKingdom,GermanyandtheUnited States, the Development Funding awarded by the DFC, and the status of Songwe Hill and Pulawy as Strategic ProjectsundertheEuropeanUnionCriticalRawMaterialsAct. Readersarecautionednottoplaceunduerelianceonforward-lookingstatements,astherecanbenoassurance that the plans, intentions or expectations upon which they are based will occur, and actual performance and resultsinfutureperiodsmaydiffermateriallyfromthoseexpressedorimpliedbythem. In relation to the Proposed Business Combination, such factors and risks include, without limitation: the ability of the parties to complete it on the terms and within the timeframe contemplated, or at all, including the satisfactionorwaiveroftheconditionsprecedenttoclosingandthereceiptofrequiredshareholder,regulatory, stockexchangeandcourtapprovals,theeffectivenessofanyrelatedregistrationstatementfiledwiththeUnited States Securities and Exchange Commission and the approval for listing of the securities of MKAR on NASDAQ; thelevelofredemptionsbyshareholdersofCPTKandtheamountofcashavailableonclosing;theavailabilityof
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13 any additional financing required; the exercise of termination rights under, or the expiry of the outside date in, the Business Combination Agreement; the consequences for Mkango’s interests in Songwe Hill and Pulawy and forMkango’sstatusonAIMandtheTSXVentureExchange,includingtheapplicationofRule14oftheAIMRules for Companies; and the anticipated benefits of the Proposed Business Combination not being realised in whole orinpart. Otherfactorsandrisksinclude,withoutlimitation:theavailabilityof,ordelaysinobtaining,financingtodevelop Songwe Hill and the recycling plants being developed by Maginito in the United Kingdom, Germany and the United States; the drawdown and continued availability of the reimbursable Development Funding awarded by the DFC; the retention of Strategic Project status for Songwe Hill and Pulawy under the European Union Critical Raw Materials Act; governmental action and other market effects on demand and pricing for rare earths and associated downstream products; geological, technical, permitting and regulatory matters relating to the developmentofSongweHillandPulawy;political,fiscal,legal,taxation,currencyandotherrisksassociatedwith operatinginMalawi,Poland,Germany,theUnitedKingdomandtheUnitedStates;theabilitytoscaletheHPMS and chemical recycling technologies to commercial scale; competition and the availability of scrap supplies for Maginito’s recycling activities; cost overruns and complexities in building and operating the plants; and the resultsoffeasibilitystudiesbeinglessfavourablethananticipated. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by applicable law, Mkango 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. Additionally, Mkango undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above. Specified financial measures.The net present value, internalrateofreturn,paybackperiod,life-of-operationscashflowandcapitalcostfiguresdisclosedinthisnews releaseinrespectofthePulawyRareEarthsSeparationPlantandtheTexasHubarespecifiedfinancialmeasures withinthemeaningofNationalInstrument52-112-Non-GAAPandOtherFinancialMeasuresDisclosure.Eachis forward-looking information derived from an economic study of a project which is not in production, has no standardised meaning under IFRS, is not disclosed in the Company’s financial statements and may not be comparable to a measure presented by any other issuer. Neither project is in production and neither has an equivalent historical measure, so no reconciliation is presented. Each is stated on a 100% project basis. The corresponding measures for the Songwe Hill Project are not specified financial measures, their disclosure being requiredunderNI43-101.ThesemeasuresaredescribedinfullunderSpecifiedFinancialMeasuresintheMD&A. ForfurtherinformationonMkango,pleasecontact: MkangoResourcesLtd WilliamDawes ChiefExecutiveOfficer will@mkango.ca AlexanderLemon President alex@mkango.ca Canada:+14034445979 www.mkango.ca @MkangoResources SPAngelCorporateFinanceLLP NominatedAdviserandJointBroker
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14 CarolineRowe,JenClarke,DevikMehta UK:+442034700470 CavendishCapitalMarketsLimited JointBroker NeilMcDonald,PearlKellie UK:+442073300500 H&PAdvisoryLimited JointBroker AndrewChubb,LeifPowis UK:+442079078500 The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither theTSXVentureExchangenoritsRegulationServicesProvider(asthattermisdefinedinthepoliciesoftheTSX 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 Mkango in the United States. The securities of Mkango 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.