Hypromag's Technology Selected As A Msp Project

HYPROMAG'S RARE EARTH MAGNET RECYCLING TECHNOLOGY SELECTED

AS A MINERALS SECURITY PARTNERSHIP PROJECT

London / Vancouver: October 11, 2023 - Mkango Resources Ltd. (AIM/TSX-V: MKA) ("Mkango") and CoTec Holdings Corp. (TSXV: CTH; OTCQB: CTHCF) ("CoTec") are pleased to announce that HyProMag Ltd's ("HyProMag") rare earth magnet recycling technology has been selected by the Minerals Security Partnership ("MSP") for support as one of its key projects. The technology was selected by the MSP because the MSP determined its strong potential to contribute towards the development of responsible critical mineral supply chains.

Partner governments includes the United Kingdom, the United States, Australia, Canada, Finland, France, Germany, Japan, India, the Republic of Korea, Norway, Sweden and the European Union.

The MSP promotes responsible growth across the critical minerals sector via a shared commitment to high environmental, social, and governance ("ESG") standards, sustainability and shared prosperity. The MSP partner governments regard the further development of responsible and resilient supply chains to be critically important for an equitable and sustainable energy transition.

As MSP announced today, the MSP is committed to leveraging the collective financial and diplomatic resources of its 14 partners by deepening collaboration between governments, project developers and investors to drive responsible investment in critical minerals projects.

HyProMag utilises hydrogen to recycle rare earth magnets vital for the global energy transition by liberating them from end-of-life scrap.

MSP UK Government announcement

Julian Treger, CoTec CEO commented: "This exciting development is a strong validation of HyProMag's REE recycling technology and further demonstrates its attractiveness and potential, both from a strategic and commercial perspective."

"CoTec's strategy is to align its technologies and assets with the UN Sustainable Development Goals and its involvement with HyProMag is just one example of how we strive to achieve this goal. CoTec and Mkango are looking forward to working with the MSP to expedite the roll out of the technology. The MSP provides a key platform from which strategically aligned governments and companies can commercialise new proven technologies as part of the energy transition towards a low carbon and sustainable future".

Will Dawes, Mkango CEO commented; "HyProMag is one of only 17 projects selected across the entire critical minerals sector to receive support from the MSP.

"We see this as a significant endorsement of the technology, which can make a substantial impact in unlocking the supply chain for rare earth magnet recycling from end-of-life products and enabling the production of rare earth alloys and magnets with a significantly reduced carbon footprint."

HyProMag

HyProMag Ltd is commercialising rare earth magnet recycling using Hydrogen Processing of Magnet Scrap (HPMS) technology, which can liberate and recycle magnets from end-of-life scrap.

HPMS technology was developed at the University of Birmingham, underpinned by approximately US$100 million of research and development funding, and has major competitive advantages versus other rare earth magnet recycling technologies, which are largely focused on chemical processes but do not solve the challenges of liberating magnets from end-of-life scrap streams - HPMS provides the solution. HyProMag's company presentation can be viewed via the following link: HyProMag Corporate Presentation

Having commissioned the UK's first rare earth magnet recycling pilot plant at the University of Birmingham in 2022, alongside the UK's only facility to make sintered rare earth magnets, HyProMag, together with the University of Birmingham, are developing a large-scale recycling plant at Tyseley Energy Park, Birmingham, with first production by the end of this year and supported with funding from UK Research and Innovation. Investment from Mkango Resources in 2020 helped scale-up and catalyse international growth initiatives, including in Germany, where HyProMag has established a sister company, HyProMag GmbH, and in the U.S. through a new Maginito-CoTec 50:50 joint venture company, with evaluation of other jurisdictions underway. Maginito (79.4% Mkango; 20.6% CoTec) acquired HyProMag in 2023.

In line with MSP's commitment to recycling and reuse, the development of new sources of recycled rare earths can accelerate development of sustainable and competitive rare earth magnet production.

Maginito

Maginito is a UK based Company owned 79.4 per cent by Mkango and 20.6 per cent by CoTec. It is focused on developing green technology opportunities in the rare earths supply chain, encompassing neodymium (NdFeB) magnet recycling as well as innovative rare earth alloy, magnet, and separation technologies.

About Mkango Resources Ltd.

Mkango is developing its Songwe Hill rare earths project ("Songwe") in Malawi with a Definitive Feasibility Study completed in July 2022 and an Environmental, Social and Health Impact Assessment approved by the Government of Malawi in January 2023.

In parallel, Mkango and Grupa Azoty PULAWY, Poland's leading chemical producer have agreed to work together towards development of a rare earth separation plant at Pulawy in Poland (the "Pulawy Separation Plant") to process the purified mixed rare earth carbonate produced at Songwe.

About CoTec Holdings Corp.

CoTec is a publicly traded investment issuer listed on the TSX Venture Exchange and the OTCQB and trades under the symbol CTH and CTHCF respectively. The Company is focused on investing in innovative technologies which have the potential to fundamentally change the way metals and minerals can be extracted and processed for the purpose of applying those technologies to undervalued operating assets and recycling opportunities, as the Company transitions into a mid-tier mineral resource producer.

CoTec is committed to supporting the transition to a lower carbon future for the extraction industry, a sector on the cusp of a green revolution as it embraces technology and innovation. The Company has made four investments to date and is actively pursuing operating opportunities where current technology investments could be deployed.

For more information, please visit www.cotec.ca.

CoTec Holdings Corp.

Braam Jonker

Chief Financial Officer

Canada: +1 604 992-5600