Mkango Raises £2.34m

Suite 2900

Vancouver

BC V6C 0A3

Canada

MKANGO RAISES £2.34M (C$4.11M) TO ADVANCE RARE EARTH MAGNET RECYCLING IN UK AND GERMANY

London / Vancouver: January 20, 2025 - Mkango Resources Ltd. (AIM/TSX-V: MKA) is pleased to announce that it has conditionally raised gross proceeds of £2.34million (approximately C$4.11 million) through the issuance, on a private placement basis, of 29,187,500 common shares of the Company (the "Subscription Shares") at a price per Subscription Share of 8 pence ("p") (approximately C$0.14) (the "Issue Price") (the "Subscription").

William Dawes, Chief Executive of Mkango stated: "We are delighted by the continued support and confidence from our existing shareholders, reflected in this £2.34million investment. This funding will enable Mkango to maintain momentum on achieving commercial production in the UK and the development of the Germany operation.

Concurrently, we continue to work towards execution of the proposed Business Combination Agreement in relation to the previously announced SPAC transaction, which once executed, is expected to bring us a step closer to extracting significant value from our Songwe Hill and Pulawy Rare Earths Projects.

Mkango has conditionally raised gross proceeds of £2.34million (approximately C$4.11million) through the issuance, on a private placement basis, of 29,187,500 Subscription Shares at a price per Share of 8p (approximately C$0.14). The net proceeds of the Subscription after fees is expected to be £2.22million (approximately C$3.90million). The issue price equates to a discount of 21% and 20% to the trailing five-day volume weighted average price ("VWAP") of Mkango's shares on AIM and TSX-V respectively at the closing prices on 17 January 2025. The Company intends to use the net proceeds of the Subscription to fund ongoing recycling development costs in Germany and the UK, and to fund ongoing corporate costs.

The Subscription is expected to close on or around 31st January, 2025 and is subject to the receipt of all necessary approvals including the approval of the TSX-V, and admission of the Subscription Shares to trading on AIM.

The Subscription Shares will rank pari passu with the Company's existing shares and application will be made for the Subscription Shares to be admitted to trading on AIM ("Admission"). It is expected that Admission will become effective and dealings in the Subscription Shares will commence at 8:00am on or around 31st January 2025. The Subscription Shares will be subject to a statutory hold period in Canada expiring on the date that is four months and one day from issuance of the Subscription Shares, and will also be listed for trading on the TSX-V, provided that approval of such listing from the TSX-V is obtained.

In accordance with the Disclosure Guidance and Transparency Rules (DTR 5.6.1R) the Company hereby notifies the market that immediately following Admission, its issued and outstanding share capital will consist of 326,266,261 shares. The Company does not hold any shares in treasury. Shareholders may use this figure as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

In connection with the Placing, Mkango has agreed to pay, at completion of the Placing, commissions of 5% in cash and 5% in non-transferable broker warrants, in each case with reference to cash raised by each of Jub Capital Management LLP ("JUB Capital") and Alternative Resource Capital, a trading name of Shard Capital Partners LLP ("ARC"). In addition, JUB Capital and ARC will be entitled to a corporate finance fee of £5,000 (approximately C$8,800) each. The broker warrants will have a term of 3 years from issue and an exercise price of 8 pence (approximately C$0.14). The total number of broker warrants to be issued on completion of the Placing is 1,459,375. Payment of the commissions (and issuance of the warrants) to the brokers is subject to acceptance of the TSX-V. The shares issuable pursuant to exercise of the broker warrants will be subject to a statutory hold period in Canada expiring on the date that is four (4) months and one day from issuance of the warrants.