HYPROMAG USA SECURES POWER AND ADVANCES PROJECT

MKANGO MAGNETIC MATERIALS LIMITED       

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HYPROMAG USA SECURES POWER AND ADVANCES PROJECT READINESS FOR TEXAS RECYCLING AND MAGNET MANUFACTURING HUB

LONDON / VANCOUVER: 13 October 2026 – Mkango Magnetic Materials Ltd. (AIM/TSX-V: MKA) (“Mkango”) is pleased to announce that HyProMag USA LLC (“HyProMag USA”) has provided an update on development activities for its Texas Hub rare earth magnet recycling and manufacturing project. HyProMag USA has secured electrical power capacity with Oncor Electric Delivery Company LLC (“Oncor”) for the Texas Hub development. HyProMag USA expects the facility's electricity requirements to be supplied predominantly from renewable energy resources.

Key Highlights

●       Power capacity secured with Oncor Electric Delivery Company LLC for both cutting and finishing operations and Phase 1 developments with a pathway through a sub-station upgrade to provide power for Phase 2.

●       PegasusTSI, Inc. (“Pegasus”) has commenced contractor selection for cutting and finishing operations and Weston Solutions, Inc. is advancing permitting activities.

●       Targeted commissioning of cutting and finishing operations in H1 2027 with the processing of neodymium iron boron (“NdFeB”) magnet blocks, initially supplied from HyProMag Group operations, to produce finished magnets.

●       Phase 1 development is targeted for completion in mid 2028 and is designed to produce approximately 550 tonnes per annum (“tpa”) of NdFeB magnet blocks and finished magnets and approximately 484 tpa of co-products, representing approximately 1,034 tpa of total payable production.

●        Phase 2 development envisages expansion to approximately 1,526 tpa of total payable production.

●        Electricity supply expected to be sourced predominantly from renewable energy resources.

Julian Treger, CoTec CEO commented: “Securing power with Oncor, advancing permitting activities through Weston Solutions and commencing contractor selection are important milestones for the Texas Hub. Initial cutting and finishing operations in 2027 are expected to establish U.S. magnet finishing and qualification capabilities aligned with internationally recognised magnetic material and quality standards, while the full Phase 1 development will deliver integrated recycling and magnet manufacturing capacity. Together, these activities further de-risk the project and demonstrate continued progress towards establishing a domestic and sustainable rare earth magnet supply chain in the United States.”

Cutting and finishing operations in 2027 comprise the initial magnet finishing and qualification facility, enabling production and qualification of finished NdFeB magnets using magnet blocks supplied from HyProMag Group operations. The facility is designed to process NdFeB magnet blocks and support qualification of finished magnets in accordance with ASTM A977/A977M, the national classification standard for magnetic materials, together with quality management systems aligned with ISO 9001 and customer-specific quality, performance and traceability requirements. The objective is to establish qualification capabilities consistent with those expected of leading North American permanent magnet manufacturers and establish a strategic training facility for the finishing of NdFeB magnets in advance of the main Texas Hub developments.

Weston Solutions, Inc. is advancing permitting activities, while engineering partner Pegasus. has commenced a Request for Quotation (“RFQ”) process for the selection of a general contractor for cutting and finishing operations. Pegasus and BBA USA Inc. are HyProMag USA’s U.S.-based engineering, procurement and construction management firms.[1]

Phase 1 represents the first integrated recycling and magnet manufacturing stage of the Texas Hub and is designed to produce approximately 550 tpa of sintered NdFeB magnet blocks and finished magnets, together with approximately 484 tpa of co-products, representing total payable production of approximately 1,034 tpa. Upon completion of Phase 2, the Texas Hub is expected to produce approximately 1,048 tpa of NdFeB magnet blocks and cylinders, together with approximately 478 tpa of co-products, representing total payable production of approximately 1,526 tpa.

About HyProMag USA

HyProMag USA is developing advanced rare earth magnet recycling and manufacturing operations to establish a secure domestic U.S. supply chain for NdFeB magnets, essential components for AI infrastructure, defense systems, robotics, electric vehicles, and advanced electronics. Leveraging the revolutionary HPMS technology, developed over 15 years with over US$100 million in R&D investment, the company delivers faster magnet-to-magnet short-loop recycling that uses 88% less energy and reduces carbon emissions by 85% compared to conventional methods. HPMS accepts a wide range of magnet-bearing feedstocks – including end-of-life EV motors, data-center and industrial equipment, consumer electronics, and manufacturing scrap – enabling recovery of magnet-grade material without chemical processing.

Ownership

HyProMag USA LLC is owned 50:50 by CoTec Holdings Corp. (TSXV: CTH; OTCQX: CTHCF) (“CoTec”) and HyProMag Limited. HyProMag Limited is 100 per cent owned by Maginito Limited which is owned on a 79.4/20.6 per cent basis by Mkango Magnetic Materials Limited (AIM/TSX-V: MKA) and CoTec.

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 Corp. (“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. The Songwe and Pulawy projects and HyProMag GmbH 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 press release include: statements relating to the Texas Hub; the targeted commissioning of cutting and finishing operations in H1 2027 and the supply of magnet blocks from HyProMag Group operations; the targeted completion of Phase 1 in mid 2028; the expansion envisaged for Phase 2 and the sub-station upgrade to provide power for it; the expected supply of electricity from renewable energy resources; the qualification of finished magnets to industry and customer standards; expected production numbers and payable production; the advancement of permitting activities; the RFQ process for the selection of a general contractor; and the benefits to Mkango and HyProMag USA which may be implied from such statements.

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.

Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements due to known and unknown risks and uncertainties affecting Mkango and HyProMag USA, including but not limited to: availability of financing; environmental risks and costs; permitting and regulatory risks; labor costs and shortages; uncertain supply and price fluctuations in materials; increases in energy costs; labor disputes and work stoppages; equipment leasing and availability; heavy equipment demand and availability; contractor and subcontractor performance; worksite safety issues; project delays and cost overruns; extreme weather events; and social, transport, or geopolitical disruptions; availability of suitable feedstock, the supply of magnet blocks from HyProMag Group operations, the successful installation, commissioning and operation of equipment, the timing and completion of the Oncor sub-station upgrade, the qualification of finished magnets to customer requirements, equipment performance and reliability, maintenance requirements, the ability to secure commercial customer offtake and feedstock supply arrangements, and the successful scale-up and integration of HyProMag USA's planned recycling operations.

Mkango assumes no obligation to update forward-looking statements in this press release except as required by law. Readers should not place undue reliance on the forward-looking statements and information contained in this news release.

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

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