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HYPROMAG USA FINALISES LONG TERM LEASE

FOR DALLAS-FORT WORTH RARE EARTH MAGNET RECYCLING AND MANUFACTURING HUB

London / Vancouver: 11 December 2025 - Mkango Resources Ltd (AIM/TSX-V: MKA) (the "Company" or "Mkango"), is pleased to announce that HyProMag USA, LLC ("HyProMag USA"), a U.S.-based leader in rare-earth recycling and processing, has finalised a lease agreement for its proposed rare-earth magnet recycling and manufacturing facility in Dallas-Fort Worth, Texas. HyProMag USA's first facility (the "Texas Facility" or the "Project") will be located at Ironhead Commerce Center, Building 1, Dallas-Fort Worth, Denton County, Texas. This Project site is strategically located next to critical infrastructure, the BNSF intermodal rail link and the Alliance airport. The milestone marks the next phase in HyProMag USA's Project expansion and underscores its commitment to building a fully domestic, circular supply chain for rare-earth magnets critical to revitalising U.S. industry and to provide a long-term domestic supply of critical minerals.

The Texas Facility will leverage the patented Hydrogen Processing of Magnet Scrap ("HPMS") technology - developed by the Magnetic Materials Group at the University of Birmingham with over 25 years of R&D and exclusively licensed to HyProMag Limited, a 50% partner in HyProMag USA, to recover and remanufacture rare earth magnets from end-of-life products. HyProMag USA targets commissioning the Texas Facility by mid-2027, subject to final permitting and financing, and anticipates creating approximately 90 to 100 skilled jobs in magnet manufacturing, engineering and advanced materials processing. HyProMag USA has collaborated closely with the Town of Northlake to advance the Texas Facility. Additionally, the Company has also established and expanded its feedstock-supply partnership with Intelligent Lifecycle Solutions ("ILS"), a global electronics recycling company, which has commenced stockpiling magnet-bearing materials to support commissioning of HyProMag's U.S. operations[i]. 

HyProMag USA will occupy 50 percent of Building 1 at Ironhead Commerce Center, approximately 128,000 square feet. The Texas Facility will serve as the central hub of HyProMag USA's hub-and-spoke short-loop network, which includes planned pre-processing facilities in Nevada and South Carolina. The Project's modular design allows for faster replication across the U.S., providing a more scalable blueprint for restoring rare-earth magnet production and reducing reliance on overseas sources.

Julian Treger, CoTec CEO commented: "Finalising the Texas Facility lease represents another major milestone in HyProMag USA's mission to deliver a secure, sustainable rare-earth magnet supply chain in the United States. With the site secured and local partnerships in place, we're moving decisively toward completing financing, construction and the first commercial-scale production of recycled magnets in the United States."

Will Dawes, Mkango CEO & HyProMag USA Director commented: "The Texas Facility being developed by HyProMag USA will help to transform rare-earth supply chains in the United States. Together with our partners, we're building the foundation for a resilient domestic magnet sector that supports the next generation of clean energy and technology manufacturing."

A fly over of the facilities location can be found at https://youtu.be/J8RHkZSfo0Y

HyProMag USA Feasibility Study

The independent Feasibility Study on the development of a state-of-the-art rare-earth magnet recycling and manufacturing operation in the U.S. includes the Texas Facility, and two pre-processing facilities located in South Carolina and Nevada[ii]. In March 2025, HyProMag USA announced the expansion of the detailed engineering phase to include three HPMS vessels[iii] and that it was initiating concept studies for further expansion and complementary "Long-Loop" recycling.[iv] As reported in the Feasibility Study, the Texas Facility's annual production is estimated to be 750 metric tons per annum of recycled sintered neodymium-iron-boron ("NdFeB") magnets and 807 metric tons per annum of associated NdFeB co-products (total payable capacity - 1,557 metric tons NdFeB within five years of commissioning) over a 40-year operating life. It is expected that the Texas Facility will provide significant optionality to supply the U.S. market with additional NdFeB alloy powder while assisting in revitalizing the U.S. magnet sector with the anticipated creation of approximately 90-100 skilled magnet manufacturing jobs.

In March 2025, HyProMag USA announced the results of an independent ISO-Compliant product carbon footprint study, which confirmed a CO₂ footprint of 2.35 kg CO₂ eq. per kg of NdFeB cut sintered block product.[v]

In August 2025, HyProMag USA announced ILS had formally commenced its stockpiling of feedstock initiative pursuant to the recently announced feedstock supply and pre-processing site share agreement between HyProMag USA and ILS.

In September 2025, HyProMag USA announced the commissioning of a concept study to evaluate the expansion of its operations into Nevada and South Carolina in collaboration with ILS[vi] and the commissioning of a concept study to evaluate long-loop recycling with Worley Group Inc.[vii]

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 Ltd 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 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.

Mkango also owns the advanced stage Songwe Hill rare earths project in Malawi and the Pulawy rare earths separation project in Poland. Both the Songwe and Pulawy projects have been selected as Strategic Projects under the European Union Critical Raw Materials Act. Mkango signed a business combination agreement dated 2 July 2025  with Crown Prop Tech Acquisitions ("CPTK") to list the Songwe Hill and Pulawy rare earths projects on NASDAQ via a SPAC Merger under the name Mkango Rare Earths Limited.  

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. Generally, forward looking statements can be identified by the use of words such as "targeted", "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. 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 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.

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.

For further information on Mkango, please contact:

Mkango Resources Limited

William Dawes                                   Alexander Lemon

Chief Executive Officer                  President

[email protected]                               [email protected]

Canada: +1 403 444 5979

www.mkango.com

@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 (020) 4530 9160/77

H&P Advisory Limited

Joint Broker

Andrew Chubb, Leif Powis, Jay Ashfield

UK: +44 20 7907 8500