Hypromag Usa Advances Texas Hub & Magnet Platform

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HYPROMAG USA ADVANCES TEXAS HUB AND U.S. MAGNET PLATFORM

Company Starts Long-Lead Equipment Procurement, Increases Projected Magnet Production, and Progresses U.S. Build-Out

London / Vancouver: June 22 2026 - Mkango Resources Ltd (AIM/TSX-V: MKA) ("Mkango") is pleased to announce that HyProMag USA, LLC ("HyProMag USA" or the "Company"), has provided an update on the development of its Ironhead facility (the "Texas Hub") and the build-out of its U.S. commercial platform (together, the "Project"). The Company has increased its projected magnet production capacity, started procurement of key long-lead equipment and is progressing detailed engineering, feedstock aggregation, and commercial offtake discussions, while also initiating a search for U.S-based executive leadership to support the next phase of growth.

Following completion of the Class 2 AACE[1] capital cost estimate in Q4 2025 and the commissioning of HyProMag's UK and German plants, HyProMag USA has begun ordering critical-path long-lead equipment to support a targeted H2 2027 commissioning of the Texas Hub. In parallel, detailed engineering is advancing and the Company is in discussions with feedstock suppliers, potential offtake partners and financing counterparties as it transitions from feasibility and pilot validation into execution of a scaled domestic magnet recycling and manufacturing platform in the United States.

Key Highlights

Long-lead equipment procurement underway:

The Company has commenced procurement of three Hydrogen Processing of Magnet Scrap ("HPMS") vessels along with magnet processing and finishing equipment to secure the development schedule for the Texas Hub.

Increased magnet production and updated economics:

Detailed engineering for a rare earth magnet recycling and manufacturing operation at the Texas Hub, supported by two pre-processing spoke sites at Intelligent Lifecycle Solution ("ILS") facilities in South Carolina and Nevada, indicates[2]:

o Annual production capacity of approximately 1,048 metric tons of recycled sintered neodymium-iron-boron ("NdFeB") magnets and 478 metric tons of NdFeB co-products (total payable capacity of 1,526 metric tons NdFeB) over a 40-year operating life.

o Post-tax Net Present Value ("NPV")[3] of approximately US$416 million and a real internal rate of return ("IRR") 26.3% based on current market prices[4],[5].

o Post-tax NPV of approximately US$797 million and a real IRR of 37.1% based on forecast market prices[6].

o Total initial capital cost of approximately US$152 million[7], including an 8.2% contingency and detailed design and engineering costs, over a one-year construction phase.

Power supply discussions initiated:

HyProMag USA has started formal discussions with Oncor Electric Delivery Company LLC ("Oncor") to provide power to the Texas Hub and expects the facility to be supplied predominantly from renewable resources.

Ironhead Building and early works:

Preparatory work is underway for the project execution phase at the Ironhead building in Northlake, Texas, in the Dallas-Fort Worth metro area, including planning for the delivery and installation of early works equipment.

Inserma systems installation at ILS spoke sites:

Three INSERMA ANOIA S.L. ("Inserma") "3rd generation" hard disk drive ("HDD") magnet separation systems have been installed at the ILS pre-processing sites in Williston, South Carolina and Las Vegas, Nevada. Inserma is currently implementing additional machine upgrades, including AI embedded HDD recognition and data traceability functions.

Feedstock security and diversification:

HyProMag USA continues to build its feedstock base through its partnership with ILS[8] and a broader multi-source purchasing strategy. In addition to HDDs, ILS is actively targeting other bulk NdFeB feedstock, including electric motor rotors, wind turbine magnets, speaker assemblies and end-of-life MRI machines.

Offtake engagement:

The Company is in discussions with multiple potential offtake customers and, together with HyProMag Limited, is providing magnet samples for product verification and qualification.

U.S. leadership build-out:

HyProMag USA has engaged a leading global executive search and consulting firm to identify a U.S.-based CEO and CFO to support a potential future public listing and continued rollout of the business.

Pre-feasibility expansion study for future plants:

The Company is targeting completion of a Class 3 AACE estimate and optimal configuration study in Q3 2026 for additional plants that will mirror the Texas Hub, with the objective of expanding U.S.-based production to approximately 4,656 metric tons of NdFeB saleable products.

Financing:

The Company is in discussions with three financial institutions and continues to advance its project finance discussions following the procurement of the long lead equipment.

Julian Treger, CoTec CEO commented: "We are making strong progress on our first plant in Texas. Ordering long-lead items now keeps the Texas Hub on track and signals our confidence in the project and our ability to deliver it on schedule. ILS' growing portfolio of NdFeB feedstock, combined with stockpiling prior to commissioning, is designed to support a smooth ramp-up and optimized batch production. Any additional feedstock secured can underpin our future expansion of the plans.

Our near-term focus is on securing feedstock and offtake commitments to support our project financing and enable a construction start in Q4, 2026. Importantly, we are not starting from scratch - the underlying technology is already commissioned and operating in the UK[9] and Germany[10], and our goal is to scale that proven model in the United States. In parallel, we are building the leadership and operational platform needed to support long-term growth and preparing for a potential future U.S. listing."

Will Dawes, Mkango CEO commented: "HyProMag USA continues to progress towards commercial development and is well placed to play a key role in the development of more robust domestic rare earth supply chains in the United States. The Company has significant competitive advantages in the sector underpinned by the energy-efficient and cost-effective HPMS and Inserma technologies and proven capabilities to make commercial grade magnets for a range of applications. The Project is complemented by existing operations in UK and Germany, which effectively de-risk the technologies and facilitate ongoing offtake discussions.

We have a strong platform for growth in the United States and are excited to see the largescale expansion plans move to the pre-feasibility stage."

Detailed Design and Project Economics

The Texas Hub Class 2 AACE Capital Cost Estimate and Study (the "Detailed Design") is being carried out by a multidisciplinary team appointed by CoTec Holdings Corp. (TSXV: CTH; OTCQX: CTHCF) ("CoTec") and Mkango and led by independent engineering firms PegasusTSI and BBA. The study, which is approximately 35% complete, includes optimization of the operation as well as an updated capital cost profile. PegasusTSI and BBA have completed a 3D Plant model based on the Class 2 estimate prepared in Q4 2025 (https://www.youtube.com/watch?v=xNmJF3Hh1Mk)

Potential Future U.S. Listing

In December 2025, HyProMag USA's owners, CoTec and Mkango , announced that they were exploring a potential U.S. listing for HyProMag USA.[11] Since then, the Company has begun engaging prospective advisors and investment banks as part of an ongoing evaluation.

Any potential listing will remain subject to project execution milestones, market conditions and regulatory approvals. No decision has been made at this time, and any such transaction would not be expected before late 2026 or early 2027.

About Mkango Resources Ltd.

Mkango is listed on the AIM and the TSXV. 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 Holdings Corp ("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.

[1] Association for the Advancement of Cost Engineering (AACE) - Class 2 Estimate

[2] https://hypromagusa.com/hypromag-usa-expands-feedstock-supply-agreementwith-global-electronics-recycler-intelligent-lifecycle-solutions/

[3] 7% real discount rates. NPVs are calculated by discounting real US dollar cash flows from 2027

[4] Current market prices ("Current Prices") for all NdFeB products sold in the U.S, excluding residual scrap, derived from updated November 2025 U.S. 2024 price quotes, over the life of the asset

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

[6] 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 Q1 (2027) Adamas Intelligence, over the life of the asset

[7] Capital excludes any U.S. tariffs

[8] https://www.cotec.ca/news/hypromag-usa-expands-feedstock-supply-agreement-with-global-electronics-recycler-intelligent-lifecycle-solutions

[9]https://mkango.ca/news/uk-minister-for-industry-officially-opens-rare-earth-magnet-recycling-and-manufacturing-facility-at-tyseley-energy-park/

[10] https://mkango.ca/news/first-commissioning-runs-for-magnet-recycling-technology-successfully-completed-at-hypromag-germany/

[11] https://hypromagusa.com/hypromag-usa-provides-positive-update-to-valuation-of-expanded-dallas-fort-worth-plant-and-commences-strategic-review-to-explore-a-u-s-listing/