Hypromag To Participate In £11m Pulse Project

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HYPROMAG TO PARTICIPATE IN £11 MILLION GRANT FUNDED PROJECT: POWER-ELECTRONICS UPSCALE FOR LOCALISATION AND SUSTAINABLE ELECTRIFICATION (PULSE)

Highlights

• HyProMag, a pioneering rare earth magnet recycler and manufacturer, is participating in the £11 million PULSE project (the "Project"), which is part funded by the United Kingdom Government through the Advanced Propulsion Centre UK ("APC")
• HyProMag will collaborate with four industrial partners in the Project, Protean Electric ("Protean"), Unipart Manufacturing ("Unipart"), Viritech and Transense Technologies plc ("Transense") as well as Coventry University and the Warwick Manufacturing Group ("WMG")
• PULSE will deliver the first In-Wheel Motor ("IWM") that will use recycled magnets, produced via HyProMag's in-house magnet manufacturing capability coupled with its patented Hydrogen Processing of Magnet Scrap ("HPMS") technology, developed at the University of Birmingham, to further strengthen the UK supply chain for rare earth magnet materials and pathway to net-zero

London / Vancouver: September 24, 2024 - Mkango Resources Ltd. (AIM/TSX-V: MKA) (the "Company" or "Mkango") is pleased to announce that HyProMag Limited ("HyProMag") is participating in the £11 million grant funded PULSE project. HyProMag is 100% owned by Maginito Limited ("Maginito"), which is 79.4% owned by Mkango and 20.6% owned by CoTec Holdings ("CoTec").

The Project will be led by Protean and will deliver a first of its kind flexible assembly line for power electronics systems used by IWM and other net-zero products. IWM generates power directly in a vehicle's wheels. By moving power to the wheel, drivers get improved torque response, enhanced handling, faster acceleration, less charging and greater range.

William Dawes, Chief Executive of HyProMag stated: "We are very pleased to be part of this groundbreaking project and to work with a leading consortium in the field of electric vehicle innovation, validating HyProMag's HPMS technology and positioning the company at the forefront of rare earth magnet recycling technology development and commercialization."

Dr Rob Arnold, Technical Manager of HyProMag stated: "This consortium has a great commitment to sustainability and scaling the manufacturing capability in the UK, so we are proud to join Project PULSE and continue returning manufacture of NdFeB sintered magnets to the UK. Building on our existing relationship with Protean, this project will see HyProMag deliver a world first by incorporating short-loop recycled magnets into Protean's In-Wheel Motor technology, delivering a huge reduction in embedded CO2."

Continuing HyProMag's existing relationships with IWM manufacturer Protean, and former RARE project partner Unipart, Project PULSE will expand the IWM market while directly incorporating state-of-the-art power electronics. Other industrial partners include fuel cell electric vehicle ("FCEV") powertrain experts Viritech, and sensor technology specialists Transense; whilst academic partners Coventry University and WMG complete the consortium.

PULSE will accelerate development and industrialisation of IWM and fuel-cell technology. Additionally, creation of a flexible power electronics manufacturing capability and a focus on sustainable manufacturing innovation will lead to significant job creation and safeguarding, while simultaneously saving in excess of 1 million tonnes of CO2 per year in the UK.

Apart from the opportunity to advance the application and commercialisation of HPMS and related magnet manufacturing, and to further develop its network of relationships with leading industrial and academic partners, HyProMag will also receive £43,000 in grant funding as part of the Project.

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, which is owned 79.4 per cent by Mkango and 20.6 per cent by 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.