Hypromag Usa Expands Detailed Engineering Phase

HYPROMAG USA EXPANDS DETAILED ENGINEERING PHASE TO INCLUDE THREE HPMS VESSELS AND INITIATES CONCEPT STUDIES FOR FURTHER EXPANSION AND COMPLEMENTARY "LONG LOOP" RECYCLING

London / Vancouver: March 11, 2025 - CoTec Holdings Corp. (TSXV: CTH; OTCQB: CTHCF) ("CoTec") and Mkango Resources Ltd. (AIM/TSX-V: MKA) ("Mkango") are pleased to announce that HyProMag USA LLC ("HyProMag USA") will expand the upcoming detailed design phase of its U.S. permanent magnet recycling and manufacturing project (the "Project") to include three HPMS[i] vessels.

In addition, and concurrently, HyProMag USA will begin conceptual studies to evaluate further expansion to triple the capacity of the Project, versus that envisaged in the Feasibility Study, across the Project footprint of Fort Worth, Texas ("Texas Hub"), South Carolina and Nevada as well as integrated USA development of long loop chemical processing, which is complementary to the HPMS short-loop process. Long-loop chemical processing is used to process any material not suitable for short-loop recycling as well as swarf generated from magnet finishing. HyProMag USA is targeting to supply 10% of U.S. domestic demand for NdFeB magnets within five years of commissioning.[ii]

The November 2024 base case Feasibility Study (the "Feasibility Study")[iii], which was based on two HPMS vessels, indicated a NPV7% of US$262[iv] million based on current market prices[v],[vi] and US$503 million based on forecast prices[vii]. With the inclusion of the third HPMS vessel for an incremental capital cost of circa US$7 million, the Feasibility Study indicated a NPV7% of US$279 million based on current market prices and US$593 million based on forecast prices.

Julian Treger, CoTec CEO commented: "The potential expansion of HyProMag USA is compelling from a value perspective as the modular design of the production hubs is expected to allow for significant upfront cost savings and optimization opportunities could result in even higher returns than the strong economics shown by the Feasibility Study. Additionally, it will also play a key role in supporting the US strategy of reshoring manufacturing capability, reducing dependance on foreign magnets and rare earths.

The increased production capacity could also allow the flexibility to produce a wider range of products and specialist magnets, further improving both financial returns and the company's ability to become a supplier of choice."

Will Dawes, Mkango CEO commented: "The HyProMag USA Feasibility Study highlighted the strong economics of the Project, with significant opportunities for further expansions, coupled with ancillary developments to add value, broaden the product suite and strengthen the competitive positioning."

The Feasibility Study included the Texas Hub, and two pre-processing facilities located in South Carolina and Nevada respectively. It is envisaged that additional expansion capacity and downstream development could be added at either the Texas Hub and / or the two pre-processing facilities, which will be evaluated during the concept studies, as well as the potential to process additional primary feed if required to initially support the expansion. The modular nature of the production design should allow duplication with limited design adjustments and should benefit from the construction and ramp-up learnings of the Texas Hub, and commissioning of the UK and Germany operations. With the increased production capacity, the Project will generate additional NdFeB co-products suitable for long loop chemical processing. The opportunity to develop an integrated long loop chemical processing plant will also be evaluated during the concept studies.

Both long-loop and short-loop recycling technologies are underpinned by the HPMS technology, which liberates magnets from end-of-life scrap streams in a cost effective and energy efficient way to produce a recycled NdFeB alloy powder, which is manufactured into a magnet (via the short loop process) or into a rare earth carbonate or oxide (via the long loop chemical process). In March 2025, HyProMag USA announced the results of an independent ISO-Compliant product carbon footprint study which confirmed an exceptionally low CO2 footprint of 2.35 kg CO2 eq. per kg of NdFeB cut sintered block product.[viii]

The Texas Hub's annual production with a third HPMS vessel will be 750 metric tons per annum of recycled sintered NdFeB magnets and 807 metric tons per annum of associated NdFeB co-products (total payable capacity - 1,557 metric tons NdFeB within five years of commissioning) over a 40 year operating life. It is expected that the third reactor will provide the Texas Hub with significant optionality to supply the U.S. market with additional NdFeB alloy powder. The detailed design will further incorporate debottlenecking and optimization of the three existing magnet lines at the proposed Texas Plant.

Ownership

HyProMag USA is owned 50:50 by CoTec and HyProMag Limited. HyProMag Limited is 100 per cent owned by Maginito Limited ("Maginito"), which is owned on a 79.4/20.6 per cent basis by Mkango and CoTec.

About HyProMag

HyProMag is commercializing HPMS recycling technology in the UK, Germany and United States. HyProMag is also evaluating other jurisdictions, and in mid-2024 launched a collaboration with Envipro on rare earth magnet recycling in Japan. HPMS technology was developed at the Magnetic Materials Group (MMG) at 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 this solution.

About CoTec Holdings Corp.

CoTec is a publicly traded investment issuer listed on the Toronto Venture Stock Exchange ("TSX- V") and the OTCQB and trades under the symbol CTH and CTHCF respectively. CoTec Holdings Corp. is a forward-thinking resource extraction company committed to revolutionizing the global metals and minerals industry through innovative, environmentally sustainable technologies and strategic asset acquisitions. With a mission to drive the sector toward a low-carbon future, CoTec employs a dual approach: investing in disruptive mineral extraction technologies that enhance efficiency and sustainability while applying these technologies to undervalued mining assets to unlock their full potential. By focusing on recycling, waste mining, and scalable solutions, the Company accelerates the production of critical minerals, shortens development timelines, and reduces environmental impact. CoTec's strategic model delivers low capital requirements, rapid revenue generation, and high barriers to entry, positioning it as a leading mid-tier disruptor in the commodities sector.

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

About Mkango Resources Ltd.

Mkango also owns the advanced stage Songwe Hill rare earths project and an extensive rare earths, uranium, tantalum, niobium, rutile, nickel and cobalt exploration portfolio in Malawi, and the Pulawy rare earths separation project in Poland. Mkango has signed a letter of Intent with Crown PropTech Acquisitions to list the Songwe Hill and Pulawy rare earths projects on NASDAQ via a SPAC Merger.

CoTec Holdings Corp.

Braam Jonker

Chief Financial Officer

Canada: +1 604 992-5600

[i] Patented Hydrogen Processing of Magnet Scrap (HPMS) technology developed at University of Birmingham, which liberates NdFeB magnets from end-of-life scrap streams in a cost effective and energy efficient way

[ii] Federal Register: 88 FR 9430, Pages 9430-9475 (46 pages). Department of Commerce, Bureau of Industry and Security: "The Effect of Imports of Neodymium-Iron-Boron (NdFeB) Permanent Magnets on the National Security."

[iii] November 2024 independent HyProMag USA feasibility study undertaken by a multidisciplinary team appointed by CoTec and Mkango and led by independent engineers, Canada-based BBA USA Inc. ("BBA") and U.S. based PegasusTSI Inc. ("PegasusTSI") with other independent experts and support from University of Birmingham, HyProMag Ltd and HyProMag GmbH.

[iv] 7% real discount rates. NPVs are calculated by discounting real US dollar cash flows from 2025 post tax

[v] Current market prices ("Current Prices") for all NdFeB products sold in the U.S, excluding residual scrap, derived from U.S. 2024 price quotes, over the life of the asset

[vi] NPV does not include the economic benefit of any government or state incentives, or carbon pricing

[vii] Forecast market prices ("Forecast Prices") are the prices for all NdFeB products sold in the U.S, excluding residual scrap feed, with the rare earth price component thereof derived from the latest rare earth oxide price forecasts from Q4 (2024) Adamas Intelligence, over the life of the asset

[viii] Cut Sintered Block Product is the final product prior to nickel plating and magnetization