Hypromag Agreement With Electronics Recycler; Ils

HYPROMAG USA ENTERS INTO AGREEMENT WITH GLOBAL ELECTRONICS RECYCLER, INTELLIGENT LIFECYCLE SOLUTIONS, FOR FEEDSTOCK SUPPLY AND PRE-PROCESSING SITE SHARE IN SOUTH CAROLINA AND NEVADA

London / Vancouver: July 24, 2025 - CoTec Holdings Corp. (TSXV: CTH; OTCQB: CTHCF) ("CoTec") and Mkango Resources Ltd. (AIM/TSX-V: MKA) ("Mkango") are pleased to announce a feedstock supply and pre-processing site share agreement between global electronics recycling company, Intelligent Lifecycle Solutions, LLC ("ILS"), and HyProMag USA, LLC ("HyProMag USA" or the "Project") (the "Supply Agreement").

• ILS will secure and store neodymium iron boron ("NdFeB") feedstock from hard disk drives ("HDDs") and other sources for HyProMag USA at the ILS pre-processing sites in Williston, South Carolina and Reno, Nevada (the "ILS pre-processing sites") in advance of the commissioning of HyProMag USA's advanced stage rare earth magnet recycling and manufacturing plant to be located in Dallas-Fort Worth, Texas (the "DFW Hub")
• ILS will utilise the INSERMA ANOIA SL ("Inserma") "3rd generation" HDD magnet separation system at its pre-processing sites. An exclusive agreement was signed between the HyProMag Group and Inserma in September 2024[i], and the Inserma technology is being rolled out across multiple jurisdictions
• The improved Inserma units provide fast, efficient magnet separation from HDDs for Hydrogen Processing of Magnet Scrap ("HPMS") processing together with clean separation of the printed circuit board for immediate resale to 3rd parties
• HyProMag USA is, inter alia, targeting HDD recycling geared to the growth of hyperscale data centers, which is expected to accelerate significantly in coming years
• HyProMag USA will include the ILS pre-processing sites in its detailed design and engineering. The ILS pre-processing sites will be able to source multiple feed types to provide supply feed to the Project's magnet recycling and manufacturing hub in Dallas-Fort Worth. Other NdFeB feedstock sources being successfully processed to date by HyProMag include rotors from electric motors, wind turbine magnets, speaker assemblies and MRIs
• The Supply Agreement is expected to be the first in several supply agreements to be entered into by HyProMag USA as the Project advances to construction and commissioning

ILS is a global electronics recycling company processing electronic waste. It is a full-service IT asset disposition, electronics recycling and scrap purchasing company and is fully compliant in ISO 14001:2015, ISO 45001:2018 and "Responsible Recycling R2v3 Recycler" at its USA locations. Through ILS, HyProMag USA will provide full traceability on its products to support the "closed loop" circular economy and critical mineral supply chains within the United States.

The collaboration builds on the relationship established between ILS, HyProMag Limited ("HyProMag") and the Magnetic Materials Group ("MMG") at the University of Birmingham ("UoB") through a number of European projects, including the 2020 Innovate UK[ii] grant funded project, "Rare-Earth Recycling for E-Machines" ("RaRE") project with Hydrogen Processing of Magnet Scrap ("HPMS") in which HyProMag produced sintered NdFeB magnets from ILS feedstock, and HyProMag continues to work closely with ILS across multiple jurisdictions.

Julian Treger, CoTec CEO commented: "We are very excited to partner with ILS to grow the feed supply market in the United States and this collaboration is a first step in securing reliable long-term feed supply for HyProMag USA to sustain the Project as we advance towards construction. We believe that over time we will be able to build sufficient feedstock to sustain several magnet recycling and manufacturing hubs as the Company establishes itself as a key player in the US REE magnet industry."

"HyProMag USA is progressing with its financing and detailed design and has the potential to supply the U.S. market with a sustainable, long term domestic supply of NdFeB permanent magnets, enabling the creation of secure, low carbon and traceable rare-earth supply chains."

Will Dawes, Mkango CEO commented: "The agreement with ILS, coupled with the Inserma and HPMS technologies, creates a highly competitive and integrated circular solution for recycling of NdFeB from HDDs, encompassing procurement of HDDs via ILS, pre-processing using Inserma technologies, magnet liberation using HPMS and short-loop magnet manufacturing to produce a high value rare earth NdFeB magnet with a very low carbon footprint. Furthermore, the agreement kick-starts operations on the ground, securing NdFeB inventory in advance of commissioning of the DFW hub, and will facilitate increased engagement in USA markets as we move towards project development."

Graham Davy, ILS CEO, commented: "We are delighted to be formalising our longstanding partnership with HyProMag. Lifecycle Solutions will be using our infrastructure to procure nationally rare earth material from government, manufacturing, and businesses as well as other recycling sources. Our clients value HyProMag's short-loop, low carbon solution whist retaining critical materials within the USA. Lifecycle Solutions will use its R2 accredited facilities in South Carolina, Nevada, to acquire and preprocess Rare Earth material for HyProMag USA. Magnets recovered from its subsidiary hard disk drive business will also be supplied."

HyProMag USA Feasibility Study

The Feasibility Study includes the DFW Hub, and two pre-processing facilities located in South Carolina and Nevada respectively[iii]. In March 2025, HyProMag USA announced the expansion of the detailed engineering phase to include three HPMS vessels[iv] and that it was initiating concept studies for further expansion and complementary "Long Loop" recycling[v]. The DFW Hub's annual production is expected to 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 the production facility will provide significant optionality to supply the U.S. market with additional NdFeB alloy powder while assisting in revitalising the U.S. magnet sector with the creation of 90-100 skilled magnet manufacturing jobs.

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.[vi]

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 the United States. 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.

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

About Mkango Resources Ltd.

CoTec Holdings Corp.

Braam Jonker

Chief Financial Officer

[i] https://cotec.ca/news/maginito-secures-exclusive-agreement-with-inserma-to-commercialise-automated-pre-processing-of-hard-disc-drives-loudspeakers-and-electric-motors-for-hypromag

[ii] https://www.ukri.org/councils/innovate-uk/

[iii] https://cotec.ca/news/hypromag-usa-feasibility-study-demonstrates-robust-economics-and-the-opportunity-to-develop-a-major-new-domestic-source-of-recycled-rare-earths-magnets-for-the-united-states

[iv] https://cotec.ca/news/hypromag-usa-expands-detailed-engineering-phase-to-include-three-hpms-vessels-and-initiates-concept-studies-for-further-expansion-and-complementary-long-loop-recycling

[v] Conventional leach, extraction purification and precipitation process

[vi] https://cotec.ca/news/hypromag-usas-iso-compliant-product-carbon-footprint-study-confirms-exceptionally-low-co2-footprint-of-235-kg-co2-eq-per-kg-of-ndfeb-cut-sintered-block