MKANGO ANNOUNCES AGREEMENT WITH HERAEUS TO ACQUIRE HERAEUS REMLOY

London / Vancouver: May 20, 2026 - Mkango Resources Ltd. (AIM/TSX-V: MKA) ("Mkango" or the "Company") is pleased to announce that it has signed an asset purchase agreement with Heraeus Amloy Technologies GmbH, to acquire its Remloy rare earth magnet recycling business ("Remloy") for €8 million (US$9.4 million) in cash, of which €5 million (US$5.6 million) is payable on closing, expected within the next three months, and €3 million (US$3.5 million) payable two years after closing (the "Transaction"). The initial payment of €5 million (US$5.6 million) will be funded from Mkango's existing cash balance following its £12.5 million (US$16.8 million) equity placement, which closed on April 10, 2026.

Remloy has developed a plant in Bitterfeld, Germany, which recycles end-of-life rare earth magnets via a melting process (medium loop recycling) to produce neodymium-iron-boron ("NdFeB") alloy powders for the bonded and hot deformed magnet markets, complementary to HyProMag's short loop recycling process to produce sintered magnets.

Highlights

·    Fully commissioned plant with significant investment in equipment and feedstock to date, no further major development capital expenditure required and strong operational and technical team in place

·    Production test runs underway for customer samples, with first commercial sales of NdFeB alloy powder product targeted by the end of the year

·    Very large stockpile of rare earth magnet and alloy feedstock totalling more than 300 tonnes underpins operations and provides future trading opportunities

·    Complementary product suite to HyProMag, further enhancing Mkango's one-stop-shop solution for customers

·    Potential synergies with the Mkango group include:

o  Enhanced platform for growth in major market for magnetic materials through the development of a further operating site in Germany

o  Supply of end-of-life magnets from the Remloy stockpile for processing by the HyProMag group

o  Supply of feedstock derived from Hydrogen Processing of Magnet Scrap ("HPMS") by HyProMag to Remloy

o  Technical and grant funding collaboration between Mkango, Remloy, HyProMag, University of Birmingham and University of Pforzheim

o  Co-marketing of products from Mkango, HyProMag and Remloy, providing an expanded product suite to customers

o  Future opportunity to supply primary rare earth feedstock from Mkango's Songwe Hill project to Remloy operations for blending with recycled feedstock

·    Significant growth opportunities through scale-up of existing operations and bolt on opportunities for other rare earth metal and alloy process technologies such as strip casting

William Dawes, Chief Executive Officer of Mkango commented: "We are very pleased to announce this Transaction and look forward to working with the Remloy team and all stakeholders to grow the Remloy business within Mkango and to further develop the rare earth supply chain and ecosystem for recycling and magnet manufacturing in Germany and its neighbours.  On April 28, 2026, HyProMag GmbH's production facility in Pforzheim was officially opened by senior representatives of the German Government and following this Transaction, Mkango will have two rare earth plants in Germany with the capability to provide customers with a sustainable supply of rare earth products for the sintered, bonded and hot deformed magnet markets."      

David Bender, Head of Remloy, commented: "I am very pleased to continue the Remloy journey together with Mkango. The Remloy team has worked hard to develop the business to this point, and the next phase will be about execution: bringing products to customers, scaling commercial activities, and leveraging synergies across the Mkango group. I am convinced that this setup provides a strong basis to further develop rare earth magnet production and recycling capabilities in Germany and Europe."

Total capacity of the production facility is 500 tonnes of NdFeB alloy per year and the plant is targeting scale-up to this level of production over the next few years with minimal capital expenditure required. The assets are currently non-revenue generating and therefore no historic profits are attributable to them, given the facility is still in the start-up phase. Multiple production runs have been completed with the current focus on product optimisation, sample generation for customers and ongoing offtake discussions to support the commencement of commercial sales and targeted scale-up of operations, whilst capitalising on potential synergies with Mkango and HyProMag.

The stockpile comprises more than 300 tonnes of rare earth magnets, rare earth alloys and other raw materials, which helps underpin the growth strategy. With this significant stockpile, Mkango is now very well positioned in the secondary market for magnetic materials, further enhanced by access to HPMS technology being commercialised by HyProMag, which enables cost effective and energy efficient liberation of embedded NdFeB magnets from end-of-life and production scrap streams. 

The Transaction is expected to close in the summer of 2026, subject to customary closing conditions and receipt of required regulatory approvals.

About Mkango Resources Ltd.

Mkango is listed on the AIM and the TSX-V Stock Exchanges. 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 Ltd ("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 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 expanding HPMS recycling technology into the United States via the 50/50 owned HyProMag USA joint venture company.

Mkango currently owns 100% of the advanced stage Songwe Hill rare earths project in Malawi and the proposed Puławy rare earths separation plant in Poland. Both the Songwe and Puławy 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. Mkango signed a Business Combination Agreement with Crown PropTech Acquisitions to list the Songwe Hill and Puławy 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 "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, the ability to obtain approval by the applicable German regulatory authorities for the Transaction, the completion of required consultations relating to the transfer of Remloy being completed by Heraeus Amloy Technologies, there being no outstanding objections or refusals preventing or delaying closing, potential synergies and integration among and between Mkango, HyProMag and Remloy, the availability of (or delays in obtaining) financing to develop Songwe Hill, the recycling plants being developed by Maginito in the UK, Germany and the US, governmental action and other market effects on global demand and pricing for the metals and associated downstream products for which Mkango is exploring, researching and developing, geological, technical and regulatory matters relating to the development of Songwe Hill, the ability to scale the HPMS and chemical recycling technologies to commercial scale, competitors having greater financial capability and effective competing technologies in the recycling and separation business of Maginito and Mkango, availability of scrap supplies for Maginito's recycling activities, government regulation (including the impact of environmental and other regulations) on and the economics in relation to recycling and the development of the Maginito Recycling Plants and Pulawy, and future investments in the United States pursuant to the proposed cooperation agreement between Maginito and CoTec, cost overruns, complexities in building and operating the plants, and the positive results of feasibility studies on the various proposed aspects of Mkango's and Maginito's activities. 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 because 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                                  

Chief Executive Officer                 

[email protected]                              

Alexander Lemon

President

[email protected]

Canada: +1 403 444 5979

www.mkango.ca

@MkangoResources

SP Angel Corporate Finance LLP

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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.