First Commissioning Runs In Hypromag Germany

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FIRST COMMISSIONING RUNS FOR MAGNET RECYCLING TECHNOLOGY SUCCESSFULLY COMPLETED AT HYPROMAG GERMANY

London / Vancouver: April 9, 2026 - Mkango Resources Ltd. (AIM/TSX-V: MKA) ("Mkango") is pleased to announce that HyProMag GmbH has completed the first commissioning runs for the commercial scale Hydrogen Processing of Magnet Scrap ("HPMS") vessel at its rare earth magnet recycling and manufacturing plant (the "Plant") located in Pforzheim, Germany. The Plant consists of a commercial scale rare earth sintered magnet recycling and manufacturing line, underpinned by the patented HPMS technology. The Plant is fully permitted for production of up to 750 tonnes per annum of neodymium-iron-boron ("NdFeB") magnets and alloys, and HyProMag GmbH is targeting phased scale-up to this level over the next three years.

Development of the Plant was partly funded by the European Regional Development Fund and the Ministry of Economic Affairs, Labour, and Tourism Baden-Württemberg.

An opening ceremony of the Plant is scheduled for April 28, 2026 and will be presided over by the German Federal Ministry for Economic Affairs and Energy.

• The HPMS vessel is fundamental to the Plant, producing a high grade, recycled NdFeB alloy powder for commercial sale and to feed the downstream magnet manufacturing line.
• The jet mill for processing of NdFeB alloy powder for magnet manufacturing has been installed, and commissioning will be completed in the coming weeks.
• Other major equipment for the Plant, including the transverse alignment press and the sintering furnace for manufacturing of sintered magnet blocks, have been delivered, with installation and commissioning taking place sequentially.
• The expansion and upgrade of the Plant infrastructure have been completed, including the installation of gas storage facilities (gas tank and storage systems) and the power supply upgrade through a new transformer station.
• Once fully commissioned, the Plant will have a minimum initial capacity of approximately 100 tonnes per annum of NdFeB increasing to up to circa 350 tonnes per annum with multiple shifts. A further expansion to a targeted 750 tonnes per annum is under evaluation.
• HyProMag is engaging with multiple customers for NdFeB alloy powder and magnets on an ongoing basis to support the scale-up of operations.

Will Dawes, Chief Executive Officer of Mkango commented: "This is a major milestone for HyProMag, creating a strong platform for further scale-up at our site in Pforzheim and beyond. We continue to evaluate complementary acquisition and organic growth opportunities in the rare earths supply chain, and see the growing rare earths ecosystem in Germany as one of the cornerstones of our growth strategy. With the rare earth magnet recycling and manufacturing plants being scaled-up and developed by HyProMag in UK and USA, and Mkango's advanced stage rare earth mining and separation projects in Malawi and Poland, we are well positioned to provide customers with a one-stop-shop solution for rare earth products across the supply chain."

Nelson Brito, Managing Director of HyProMag GmbH commented: "With first commissioning of the HPMS vessel successfully completed, we are now entering the next phase of scaling operations and delivering high-quality recycled NdFeB materials to the market. This milestone represents a significant step towards strengthening Europe's strategic autonomy in rare earth supply, reducing external dependencies and supporting the objectives of EU industrial and climate policy. HyProMag is proud to contribute to building a resilient, sustainable and sovereign rare earth value chain in Europe."

Carlo Burkhardt, Founding Director of HyProMag GmbH commented: "I am delighted to see the Plant progress to this stage of development, and look forward to welcoming all stakeholders and supporters of the project to the site on 28th April. We are excited for the next stages of development and optimistic we can make a real difference to the development of more robust supply chains in Europe."

The NdFeB product from HPMS has a total rare-earth content (neodymium/praseodymium together with dysprosium/terbium) exceeding 28% which is analogous to the typical NdFeB alloy content specification for magnet manufacture, whilst, as a recycled product, having a significantly lower CO2 footprint relative to both primary (mined) and other recycled (chemical / long loop) NdFeB products.

HPMS technology was developed by the Magnetic Materials Group at the University of Birmingham ("UoB") and is underpinned by approximately US$100 million of research and development funding. HyProMag is the exclusive licensee of HPMS technology from the UoB.

HyProMag GmbH was established to commercialise HPMS technology in Germany and the European Union, to further support policy initiatives to strategically strengthen European rare earth supply chains and to accelerate the green transition. First commissioning is a major milestone in the execution of this strategy.

HPMS Vessel (left) & Jet Mill (right)

Installed: Transverse Alignment Press (left) & Gas storage and power supply (right)

Expanded development plan

Global Recycling and Magnet Manufacturing Strategy

In parallel with development of the Plant in Germany, HyProMag is commercialising HPMS technology in the UK and the USA, and is also evaluating other jurisdictions including Japan, Canada and South Korea. In the UK, a rare earth magnet recycling and manufacturing plant has been developed at Tyseley Energy Park, Birmingham in conjunction with the University of Birmingham, with initial production underway.

HyProMag USA LLC ("HyProMag USA") has completed a feasibility study for a large-scale rare earth magnet recycling and manufacturing operation in the USA, with detailed engineering work underway and first production targeted in 2027.

About Mkango Resources Ltd.

Mkango currently owns 100% of the advanced stage Songwe Hill rare earths project in Malawi and the proposed Puławy rare earths separation plant in Poland. Both the Songwe and Puławy projects have been selected as Strategic Projects under the European Union Critical Raw Materials Act. Songwe has also received Development Funding from the U.S. International Development Finance Corporation (DFC), the U.S. Government's development finance institution, securing US$4.6 million in reimbursable funding for Front End Engineering and Design. Mkango signed a Business Combination Agreement with Crown PropTech Acquisitions to list the Songwe Hill and Puławy rare earths projects on NASDAQ via a SPAC Merger under the name Mkango Rare Earths Limited.