Agreement With Heraeus To Acquire Heraeus Remloy

Suite 2900

Vancouver

BC V6C 0A3

Canada

MKANGO ANNOUNCES AGREEMENT WITH HERAEUS TO ACQUIRE HERAEUS REMLOY

London / Vancouver: May 20, 2026 - Mkango Resources Ltd. (AIM/TSX-V: MKA) ("Mkango" or the "Company") is pleased to announce that it has signed an asset purchase agreement with Heraeus Amloy Technologies GmbH, to acquire its Remloy rare earth magnet recycling business ("Remloy") for €8 million (US$9.4 million) in cash, of which €5 million (US$5.6 million) is payable on closing, expected within the next three months, and €3 million (US$3.5 million) payable two years after closing (the "Transaction"). The initial payment of €5 million (US$5.6 million) will be funded from Mkango's existing cash balance following its £12.5 million (US$16.8 million) equity placement, which closed on April 10, 2026.

Remloy has developed a plant in Bitterfeld, Germany, which recycles end-of-life rare earth magnets via a melting process (medium loop recycling) to produce neodymium-iron-boron ("NdFeB") alloy powders for the bonded and hot deformed magnet markets, complementary to HyProMag's short loop recycling process to produce sintered magnets.

Highlights

• Fully commissioned plant with significant investment in equipment and feedstock to date, no further major development capital expenditure required and strong operational and technical team in place
• Production test runs underway for customer samples, with first commercial sales of NdFeB alloy powder product targeted by the end of the year
• Very large stockpile of rare earth magnet and alloy feedstock totalling more than 300 tonnes underpins operations and provides future trading opportunities
• Complementary product suite to HyProMag, further enhancing Mkango's one-stop-shop solution for customers
• Potential synergies with the Mkango group include:

o Enhanced platform for growth in major market for magnetic materials through the development of a further operating site in Germany

o Supply of end-of-life magnets from the Remloy stockpile for processing by the HyProMag group

o Supply of feedstock derived from Hydrogen Processing of Magnet Scrap ("HPMS") by HyProMag to Remloy

o Technical and grant funding collaboration between Mkango, Remloy, HyProMag, University of Birmingham and University of Pforzheim

o Co-marketing of products from Mkango, HyProMag and Remloy, providing an expanded product suite to customers

o Future opportunity to supply primary rare earth feedstock from Mkango's Songwe Hill project to Remloy operations for blending with recycled feedstock

• Significant growth opportunities through scale-up of existing operations and bolt on opportunities for other rare earth metal and alloy process technologies such as strip casting

William Dawes, Chief Executive Officer of Mkango commented: "We are very pleased to announce this Transaction and look forward to working with the Remloy team and all stakeholders to grow the Remloy business within Mkango and to further develop the rare earth supply chain and ecosystem for recycling and magnet manufacturing in Germany and its neighbours. On April 28, 2026, HyProMag GmbH's production facility in Pforzheim was officially opened by senior representatives of the German Government and following this Transaction, Mkango will have two rare earth plants in Germany with the capability to provide customers with a sustainable supply of rare earth products for the sintered, bonded and hot deformed magnet markets."

David Bender, Head of Remloy, commented: "I am very pleased to continue the Remloy journey together with Mkango. The Remloy team has worked hard to develop the business to this point, and the next phase will be about execution: bringing products to customers, scaling commercial activities, and leveraging synergies across the Mkango group. I am convinced that this setup provides a strong basis to further develop rare earth magnet production and recycling capabilities in Germany and Europe."

Total capacity of the production facility is 500 tonnes of NdFeB alloy per year and the plant is targeting scale-up to this level of production over the next few years with minimal capital expenditure required. The assets are currently non-revenue generating and therefore no historic profits are attributable to them, given the facility is still in the start-up phase. Multiple production runs have been completed with the current focus on product optimisation, sample generation for customers and ongoing offtake discussions to support the commencement of commercial sales and targeted scale-up of operations, whilst capitalising on potential synergies with Mkango and HyProMag.

The stockpile comprises more than 300 tonnes of rare earth magnets, rare earth alloys and other raw materials, which helps underpin the growth strategy. With this significant stockpile, Mkango is now very well positioned in the secondary market for magnetic materials, further enhanced by access to HPMS technology being commercialised by HyProMag, which enables cost effective and energy efficient liberation of embedded NdFeB magnets from end-of-life and production scrap streams.

The Transaction is expected to close in the summer of 2026, subject to customary closing conditions and receipt of required regulatory approvals.

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.