SONGWE PROJECT ANNOUNCED AS A STRATEGIC PROJECT

MKANGO'S SONGWE HILL RARE EARTH MINING PROJECT ANNOUNCED AS A STRATEGIC PROJECT UNDER EUROPEAN UNION CRITICAL RAW MATERIALS ACT

London / Vancouver: 4 June 2025 - Mkango Resources Ltd. (AIM/TSX-V: MKA) ("Mkango" or the "Company") is pleased to announce that the Songwe Hill Rare Earths Mining Project in Malawi ("Songwe") has been designated as a Strategic Project by the European Commission under the Critical Raw Materials Act ("CRMA").

·  Strategic Project status confirms the importance of Songwe in supplying rare earths to supply chains across Europe, North America and other markets.

·  Songwe is one of the very few rare earth projects globally to have advanced to the NI 43-101 compliant Definitive Feasibility Study ("DFS") stage, with a full Environmental, Social, Health Impact Assessment ("ESHIA") also completed in compliance with IFC Performance Standards. A mining development agreement was signed with the Government of Malawi in July 2024.

·  Based on the DFS, Songwe has an expected mine life of 18 years and will produce a mixed rare earth carbonate ("MREC"), containing approximately 1,953 tonnes per annum of neodymium / praseodymium oxides and 56 tonnes per annum of dysprosium / terbium oxides for the first five years of full production.

·  Mkango's Pulawy Separation Project in Poland ("Pulawy"), which will process the MREC from Songwe, was also previously designated a Strategic Project under the CRMA in March 2025 (News | Mkango Resources Ltd.).

·  Songwe and Pulawy will provide an integrated pure-play mined and refined supply of rare earth oxides, with both projects designated strategic by the European Commission.

·  As designated Strategic Projects, Songwe and Pulawy will benefit from coordinated support from the EU Member States and financial institutions, in particular in terms of access to finance and in supporting projects by facilitating connections with future off-takers.  

Strategic Project Status under the EU Critical Raw Materials Act

A list of 47 strategic critical raw material projects designated as Strategic Projects under Regulation (EU) 2024/1252 of the European Parliament and of the Council, commonly referred to as the Critical Raw Materials Act was released on 25 March 2025. At that time, Pulawy was announced as one of the EU-based strategic projects, with a further list of 13 international projects released today including Songwe, one of only two rare earths projects.

Songwe has been assessed by the EU to be highly important to the EU's supply security of strategic raw materials and possesses viable technical feasibility within reasonable timeframes. Under the CRMA, the project is required to be implemented in a sustainable manner, minimising environmental and social impacts.

Obtaining Strategic Project status offers key advantages for developers, significantly facilitating and accelerating the development of strategic raw materials projects within and outside the EU.

As previously announced on 8 January 2025, a proposed SPAC merger (the "Merger") between Mkango's subsidiary, Lancaster Exploration Limited ("Lancaster"), and certain other wholly-owned subsidiaries of Mkango and Crown PropTech Acquisitions ("CPTK") will create a vertically integrated global pure play rare earths platform that is intended to result in the ordinary shares of Lancaster being listed on NASDAQ. Upon the Merger and listing, Lancaster, as the listed entity, will hold the Songwe and Pulawy Projects.

About Mkango Resources Ltd.

Mkango is listed on the AIM and the TSX-V. Mkango's corporate strategy is to become a market 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 Corp ("CoTec"), and to develop new sustainable sources of neodymium, praseodymium, dysprosium and terbium to supply accelerating demand from electric vehicles, wind turbines and other clean energy technologies.

Maginito holds a 100 per cent interest in HyProMag Limited (HyProMag") and a 90 per cent direct and indirect interest (assuming conversion of Maginito's convertible loan) in HyProMag GmbH ("HyProMag Germany"), 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 UK via a chemical route.

Maginito and CoTec are also rolling out HPMS recycling technology into the United States via the 50/50 owned HyProMag USA LLC joint venture company ("HyProMag USA").

Songwe is one of the few rare earth projects to have advanced to the NI 43-101 compliant Definitive Feasibility Study ("DFS") stage. The project has an expected mine life of 18 years and is designed to produce a 55% mixed rare earth carbonate, yielding approximately 1,953 tonnes per annum of NdPr and 56 tonnes per annum of DyTb.

The proposed Pulawy separation facility site is located in a Special Economic Zone in Poland stands adjacent to the EU's second largest manufacturer of nitrogen fertilisers, and features established infrastructure, access to reagents and utilities on site.

For more information, please visit www.mkango.ca

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside 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 to be in the public domain.

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking statements (within the meaning of that term under applicable

securities laws) with respect to Mkango, its business, the Songwe, Pulawy, HyProMag, HyProMag Germany, Mkango UK and HyPromag USA (the "Business"). Generally, forward looking

statements can be identified by the use of words such as "plans", "expects" or "is expected to", "scheduled",

"estimates" "intends", "anticipates", "believes", or variations of such words and phrases, or statements that

certain actions, events or results "can", "may", "could", "would", "should", "might" or "will", occur or be

achieved, or the negative connotations thereof. Readers are cautioned not to place undue reliance on forward-

looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are

based will occur. 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-looking statements will not occur, which may cause actual performance

and results in future periods to differ materially from any estimates or projections of future performance or

results expressed or implied by such forward-looking statements. Such factors and risks include, without limiting

the foregoing, market effects on global demand and pricing for the metals and associated downstream products for which Mkango is exploring, researching and

developing, factors relating the development of Business, including the outcome of the feasibility study, cost overruns, complexities in building and operating plants, changes in economics and government regulation,

and delays in obtaining financing or governmental approvals or, and the impact of environmental and other regulations relating to, the Business. 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 assumes no obligation to update or revise any forward-

looking statements, whether as a result of new information, future events or otherwise, except as required by

applicable law. Additionally, the Company undertakes no obligation to comment on the expectations of, or

statements made by, third parties in respect of the matters discussed above.

For further information on Mkango, please contact:

Mkango Resources Limited

William Dawes                                                   Alexander Lemon                                            Robert Sewell  

Chief Executive Officer                                  President                                                            Chief Financial Officer

[email protected]                                               [email protected]                                             [email protected]

Burton Kachinjika                                             Dr. Jarosław Pączek

Country Director - Malawi                           Country Director - Poland

[email protected]                                        [email protected]

Canada: +1 403 444 5979

Poland: +48 664 144 130

www.mkango.ca

@MkangoResources

SP Angel Corporate Finance LLP

Nominated Adviser and Joint Broker

Jeff Keating, Jen Clarke, Devik Mehta

UK: +44 20 3470 0470

Alternative Resource Capital

Joint Broker

Alex Wood, Keith Dowsing

UK: +44 20 7186 9004/5

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This press release does not constitute an offer to sell or a solicitation of an offer to buy any equity or other securities of the Company in the United States. The securities of the Company 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.