HYPROMAG GERMANY ANNOUNCED AS A STRATEGIC PROJECT

MKANGO MAGNETIC MATERIALS LIMITED       

550 Burrard Street        

Suite 2900         

Vancouver         

BC V6C 0A3         

Canada         

HYPROMAG GERMANY ANNOUNCED AS A STRATEGIC PROJECT UNDER EUROPEAN UNION CRITICAL RAW MATERIALS ACT

LONDON / VANCOUVER: 9 October 2026 – Mkango Magnetic Materials Ltd. (AIM/TSX-V: MKA) (“Mkango” or the “Company”) announces that its subsidiary, HyProMag GmbH ("HyProMag"), has been announced as a Strategic Project under the European Union Critical Raw Materials Act (“CRMA”). Strategic status confirms the importance of HyProMag in securing reliable access to critical raw materials which are essential for European industry.

Three of the Company’s projects have now been designated as Strategic Projects under the CRMA:

●   October 2026 – HyProMag GmbH rare earth magnet recycling and manufacturing plant, Pforzheim, Germany

●   June 2025 – Songwe Hill rare earths mine development project, Malawi

●   March 2025 – Pulawy rare earths separation project, Poland

HyProMag’s plant in Pforzheim is currently being commissioned and will have a minimum initial capacity of approximately 100 tonnes per annum of neodymium-iron-boron (“NdFeB”) magnets and alloys increasing to up to circa 350 tonnes per annum with multiple shifts. A further expansion to a targeted 750 tonnes per annum is under evaluation.

HyProMag is engaging with multiple customers for NdFeB alloy powder and magnets on an ongoing basis to support the scale-up of operations with strong interest in the HyProMag product suite.

About Mkango Magnetic Materials 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 the Remloy business acquired by its wholly owned German subsidiary, 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 and manufacturing 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 processing route.

Maginito and CoTec are also expanding Hydrogen Processing of Magnet Scrap (“HPMS”) recycling technology into the United States via the 50/50 owned HyProMag USA joint venture company.

Remloy has developed a plant in Bitterfeld, Germany, which recycles end-of-life rare earth magnets via a melting process (medium loop rare earth magnet recycling) to produce NdFeB alloy powders for the bonded and hot deformed magnet markets, complementary to HyProMag’s short loop recycling process, to produce sintered magnets, and to Mkango UK’s long loop recycling process, to produce mixed rare earth carbonates and oxides.

Mkango currently owns 100% of the advanced stage Songwe Hill rare earths project in Malawi and the proposed 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. Mkango Rare Earths Limited (“MKAR”) has signed a Business Combination Agreement with Crown PropTech Acquisitions (“CPTK”) to list the Songwe Hill and Pulawy rare earths projects on NASDAQ via a SPAC merger (the “Proposed Business Combination”) under the name Mkango Rare Earths Limited.

For more information, please visit www.mkango.ca

Cautionary Note Regarding Forward-Looking Statements

This news release contains "forward-looking statements" and "forward-looking information" within the meaning 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 identified by the use of words such as "plans", "expects" or "is expected to", "scheduled", "estimates", "intends", "anticipates", "believes", "targets", 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.

Forward-looking statements in this news release include, without limitation: in relation to HyProMag in Germany, the retention of Strategic Project status under the CRMA, the completion of commissioning of the plant, minimum initial capacity of approximately 100 tonnes per annum increasing to circa 350 tonnes per annum with multiple shifts, and further expansion to a targeted 750 tonnes per annum under evaluation, and engagement with customers to support the scale-up of operations; in relation to Songwe Hill and Pulawy, the retention of Strategic Project status for Songwe Hill and Pulawy under the European Union Critical Raw Materials Act.

Forward-looking statements in this news release also include, without limitation, statements under “About Mkango Magnetic Materials Ltd.” concerning the Proposed Business Combination, the development of Songwe Hill and Pulawy, the expansion of rare earth magnet recycling operations in the United Kingdom, Germany and the United States, the Development Funding awarded by the DFC, and the status of Songwe Hill, Pulawy, and HyProMag as Strategic Projects under the European Union Critical Raw Materials Act.

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, and actual performance and results in future periods may differ materially from those expressed or implied by them.

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 satisfaction or waiver of the conditions precedent to closing and the receipt of required shareholder, regulatory, stock exchange and court approvals, the effectiveness of any related registration statement filed with the United States Securities and Exchange Commission and the approval for listing of the securities of MKAR on NASDAQ; the level of redemptions by shareholders of CPTK and the amount of cash available on closing; the availability of 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 for Mkango’s status on AIM and the TSX Venture Exchange, including the application of Rule 14 of the AIM Rules for Companies; and the anticipated benefits of the Proposed Business Combination not being realised in whole or in part.

Other factors and risks include, without limitation: the availability of, or delays in obtaining, financing to develop 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, Pulawy and HyProMag 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 development of Songwe Hill and Pulawy; political, fiscal, legal, taxation, currency and other risks associated with operating in Malawi, Poland, Germany, the United Kingdom and the United States; the ability to scale the HPMS 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 results of feasibility studies being less favourable than anticipated.

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.

For further information on Mkango, please contact:

Mkango Magnetic Materials Ltd

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

Nominated Adviser and Joint Broker

Caroline Rowe, Jen Clarke, Devik Mehta

UK: +44 20 3470 0470

Cavendish Capital Markets Limited

Joint Broker

Neil McDonald, Pearl Kellie

UK: +44 20 7330 0500

H&P Advisory Limited

Joint Broker

Andrew Chubb, Leif Powis

UK: +44 20 7907 8500

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 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.