Official Opening Of Recycling Plant In Birmingham

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UK MINISTER FOR INDUSTRY OFFICIALLY OPENS RARE EARTH MAGNET RECYCLING AND MANUFACTURING FACILITY AT TYSELEY ENERGY PARK, BIRMINGHAM

London / Vancouver: January 15, 2026 - Mkango Resources Ltd. (AIM/TSX-V: MKA) ("Mkango") is pleased to announce the official launch of the rare earth magnet facility today at Tyseley Energy Park (the "Facility"). The Facility has been developed by the Magnetic Materials Group ("MMG") at the University of Birmingham and constructed and commissioned alongside HyProMag Limited ("HyProMag"). The University of Birmingham and HyProMag today host the opening of the Facility for separating and recycling rare earth magnets using the patented Hydrogen Processing of Magnet Scrap ("HPMS") technology, licensed exclusively to HyProMag. The Facility will be officially opened by Chris McDonald MP, Minister for Industry in the Department for Energy Security and Net Zero and the Department for Business and Trade.

The Facility at Tyseley Energy Park has enabled the first commercial rare earth magnet production in the UK in 25 years - making it a key enabler of UK Government's November 2025 Critical Minerals Strategy which sets targets for the UK to meet 10% of annual critical mineral demand by domestic sources, and 20% to be met through recycling by 2035.

The Facility is the only commercial scale rare earth sintered magnet manufacturing facility in the UK. HyProMag has successfully operated the Facility as the industrial partner, utilising the HPMS technology to produce a recycled NdFeB alloy powder, as well as having produced recycled NdFeB sintered magnet blocks utilising the recycled alloy powder. The Facility can recover over 400kg of rare earth alloy per batch utilising the HPMS reactor and can produce new sintered magnets from the recycled rare earth alloy at a capacity of 100 tonnes per annum on a single shift, and over 300 tonnes per annum on multiple shifts. Rare earth elements are amongst the key critical minerals featured in the UK's Critical Minerals Strategy, with their main commercial use being in rare earth permanent magnets. These magnets are required in electric vehicle traction motors and wind turbine generators, and they are also a key component in electronic devices including mobile phones, hard disk drives and loudspeakers, as well as being utilised in critical sectors such as aerospace and defence.

William Dawes, Chief Executive of Mkango and Director of HyProMag commented: "This is a landmark achievement and transformational for rare earth supply chains, bringing back magnet manufacturing to the UK after 25 years and is underpinned by a home-grown technology, HPMS, that not only delivers a cost advantage, but has a minimal carbon footprint. Since Mkango's first investment in HyProMag in 2020 and HyProMag UK's ongoing collaboration with the University of Birmingham as the commercial partner and exclusive licensee, it is fantastic to see HPMS technology progress to commercialisation with the support of Innovate UK and ongoing collaboration with the University of Birmingham and is a credit to the vision and determination of everyone involved. This development provides a strong platform for further scale-up in the UK and international roll-out, already underway in Germany and the USA, with other countries being assessed for further expansion."

Nick Mann, Managing Director of HyProMag Ltd commented: "Since 2020 HyProMag has been working closely with the University of Birmingham's Magnetic Materials Group to further develop and commercialise their patented recycling technology. Hydrogen Processing of Magnet Scrap, exclusively licenced to HyProMag, gives us the method to extract magnets from end of life applications and recycle them into new magnets in a commercially viable and very low carbon process. Expansion of equipment and knowledge keeps pushing the boundaries of what we are achieving and this commercial scale facility at Tyseley is no exception, with results achieved in our commercial runs already exceeding results at the pilot facility. HyProMag are well placed to maximise this opportunity and further develop magnet supply opportunities both in the UK and overseas. Our expanding team is excited by this next phase of our development."

Allan Walton, Head of the Magnetic Materials Group at the University of Birmingham and Founding Director of HyProMag Ltd, commented: "The first use of hydrogen for recycling of magnets was proposed by the late Emeritus Professor Rex Harris who started the recycling activities in the group over 20 years ago. Since that time, the group has scaled multiple processes to sense, sort, extract, purify, and recycle rare earth magnets. This has only been possible because of the commitment of the highly skilled team within the MMG and due to the large interdisciplinary projects the group has taken part in across the rare earth value chain."

HyProMag Ltd is the main industrial partner for the project and the exclusive HPMS licencee. HyProMag is 100% owned by Maginito Limited ("Maginito"), which is 79.4% owned by Mkango and 20.6% owned by CoTec Holdings ("CoTec").

In parallel with development of the UK Facility, HyProMag is rolling out HPMS technology into Germany and the USA, and is also evaluating other jurisdictions including Japan, Canada and South Korea. In Germany, HyProMag GmbH ("HyProMag Germany") is constructing a rare earth magnet recycling and manufacturing plant at Pforzheim (the "Pforzheim Plant").

Maginito and CoTec are also rolling out HPMS recycling technology into the United States via the 50/50 owned HyProMag USA LLC joint venture company. HyProMag USA LLC ("HyProMag USA") completed a feasibility study in 2024 for a rare earth magnet recycling and manufacturing operation in USA, with the HyProMag USA's first facility to be located at the Ironhead Commerce Center, Dallas-Fort Worth, Denton County, Texas (the "Texas Hub") with detailed engineering currently underway and first production targeted for mid-2027. The Texas Hub 2025 Detailed Design base case was based on operating three Hydrogen Processing of Magnet Scrap ("HPMS") vessels, with a post-tax Net Present Value ("NPV") applying a 7% discount rate of $409 million based on current market prices, and a post-tax NPV of $780 million based on forecast prices. In addition to the Texas Hub, HyProMag USA has also announced the completion of expansion concept studies and the commencement of pre-feasibility studies for HyProMag USA's Plants located in South Carolina and Nevada, marking a significant step toward tripling its domestic manufacturing capacity by 2029.

About Mkango Resources Ltd.

Mkango is listed on the AIM and the TSX-V Stock Exchanges. 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, 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.