Mka Half Year 2026 Results

Suite 2900

Vancouver

BC V6C 0A3

Canada

MKANGO RELEASES HALF YEAR 2026 FINANCIAL STATEMENTS AND

MANAGEMENT'S DISCUSSION AND ANALYSIS

London / Vancouver: 1 September 2026 - Mkango Resources Ltd (AIM/TSX-V:MKA) (the "Company" or "Mkango"), is pleased to announce that it has released the Financial Statements and Management's Discussion and Analysis ("MD&A") for the six month period ended 30 June 2026. The Financial Statements and MD&A are available under the Company's profile on SEDAR+ (www.sedarplus.ca) and on the Company's website (https://mkango.ca/investors/financials/).

To view the full MD&A, please click here:

To view the full Financial Statements, please click here:

H1 2026 HIGHLIGHTS AND RECENT MILESTONES

• Cash position of US$13.6 million as at 30 June 2026. Subsequent to the half year end, the Company completed the acquisition of the Remloy business ("Remloy") from Heraeus Amloy Technologies GmbH ("Heraeus") and settled the initial €5 million (US$5.8 million) cash consideration. The Company also received proceeds of £94,500 and C$73,350 through the exercise of warrants and options equating to a total of US$180,515.
• Mkango is now uniquely positioned across the whole rare earth supply chain in Europe and North America, including projects for magnet and alloy manufacturing, short, medium and long loop recycling across UK, Germany and USA, rare earth separation in Poland, mining in Malawi, and rare earth metal making under evaluation.
• Both HyProMag and the recently acquired Remloy can process feedstock derived from recycled end-of-life magnets or from primary rare earth production, whether third party sourced or, in due course, from our own projects, providing customers with a broad range of magnet and alloy products, together with cost effective and energy efficient recycling solutions.

MKAR Business Combination Agreement and Nasdaq listing

● On 2 July 2025, Mkango Rare Earths Limited ("MKAR") (formerly Lancaster Exploration BVI) and Crown PropTech Acquisitions ("CPTK") signed a Business Combination Agreement ("BCA") to create a geographically strategic, pure-play global rare earth platform, comprising the Songwe Hill Rare Earths Mining Project and the Pulawy Rare Earths Separation Project. The pro forma value of Mkango's shareholding in MKAR (excluding its existing recycling businesses) pursuant to the BCA is US$400 million excluding the effects of MKAR's indebtedness, closing cash, transaction expenses, certain investments from CPTK's sponsor and affiliate, any net proceeds from a PIPE financing, and amounts remaining in CPTK's trust account. The BCA was amended on 13 February 2026 and 20 May 2026.

• An investor presentation was filed on 10 June 2026. Discussions regarding financing are on-going and a market update will be provided in due course.
• Completion of the proposed business combination (the "Proposed Business Combination") is subject to a number of conditions, including but not limited to, the approval of a Nasdaq listing application, approval by Mkango as shareholder of MKAR, approval by the shareholders of CPTK, approval by the TSX Venture Exchange ("TSX-V"), and the satisfaction or waiver of other closing conditions.
• MKAR's most recent filing of its registration statement on Form F-4 with the U.S. Securities and Exchange Commission (Amendment No. 1) was made on 8 June 2026.
• On 31 August 2026, following the close of markets, MKAR and the holder of one of its promissory notes (the "BCA Note") issued under the Note Purchase Agreement, dated 2 June 2025 (the "Note Purchase Agreement"), agreed to amend the BCA Note as of 1 July 2026 to extend its maturity to 31 December 2026, increase its principal amount to $623,766, and increase the amount due at maturity to $650,000. At that same time, MKAR and the holder of the second promissory note issued under the Note Purchase Agreement (the "F-4 Note"), agreed to reflect the interest paid as of 13 August 2026 in kind under the F-4 Note in its principal amount, increasing it to $261,250. Upon board approval of the anticipated share reclassification in connection with the closing of the Proposed Business Combination, if such approval occurs, each holder would release MKAR from the debt under each of the BCA Note and the F-4 Note in consideration for MKAR issuing Class A shares to them at $5.00 per share in an amount equal to such debt amount released.

Rare Earth Magnet Recycling and Manufacturing

Remloy

• As previously announced, Mkango has completed the acquisition of Remloy from Heraeus for €8 million (US$9.3 million) in cash, of which €5 million (US$5.8 million) was settled on completion and the balance of €3 million (US$3.5 million) is payable in cash on 28 August 2028, being the second anniversary of completion (the "Transaction"). The full press release can be accessed via the following link: Completion of Remloy acquisition
• 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. The Remloy process is complementary to HyProMag's short loop recycling process to produce sintered magnets, and to Mkango Rare Earths UK's long loop recycling process, to produce mixed rare earth carbonates and oxides. Target capacity is at least 500 tonnes per year of NdFeB alloy powder.

⮚ Fully commissioned production facility, supported by significant investment in equipment and feedstock to date, providing a strong foundation for current production and future expansion opportunities.

⮚ Very large stockpile of end-of-life rare earth magnets, rare earth alloys and other raw materials, totalling approximately 345 tonnes as at completion, providing future feedstock for Remloy and HyProMag, thereby helping to underpin their respective growth strategies and providing future trading opportunities

⮚ Targeting scale-up to full capacity over the next few years with current focus on small scale production for product optimisation and initial sales, sample generation for customers and ongoing offtake discussions to support scale-up of operations

⮚ Significant synergies with both HyProMag and Mkango

• Former co-Head of Heraeus Remloy, Mr David Bender, has been appointed Managing Director of Remloy with effect from completion, and will work closely with the Mkango and HyProMag teams to grow the business and capture synergies across the group. Mr Bender will continue to be supported by Mr Karsten Rachut, Head of Technology, and Matthias Weber, Head of Operations, together with a strong corporate and operational team already in place.

Remloy Production Facility

• With Remloy's significant magnet and alloy stockpile, Mkango is now very well positioned in the secondary market for magnetic materials, further enhanced by access to Hydrogen Processing of Magnet Scrap ("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. There are significant potential synergies with Mkango and HyProMag including:

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

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

⮚ Supply of feedstock derived from HPMS by HyProMag to Remloy

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

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

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

• In addition to potential synergies, there are 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.
• Please contact David Hinkel, Manager, External Affairs and Business Development, Remloy, for further information: dhinkel@mkango.ca

HyProMag Ltd (UK)

• The recycling and magnet manufacturing plant developed by HyProMag and the University of Birmingham at Tyseley Energy Park ("TEP Birmingham"), UK, was officially opened by Chris McDonald MP, UK Minister for Industry in the Department for Energy Security and Net Zero and the Department for Business and Trade in January 2026.
• In the recent period, the focus has shifted to magnet manufacturing. The commercial scale presses and sintering furnaces for manufacturing of magnet blocks at TEP Birmingham are fully commissioned with sintered magnet blocks now being produced on a small scale for customer evaluation in advance of scale-up. In parallel, pilot scale facilities at the University of Birmingham are producing samples for evaluation across the HyProMag group. HyProMag is receiving strong interest in the HyProMag product suite underpinned by positive customer testing of samples.

● In parallel with supply of magnet samples to customers, HyProMag has produced 10.1 tonnes of recycled neodymium iron boron ("NdFeB") alloy powder to date from the commercial scale Hydrogen Processing of Magnet Scrap ("HPMS") vessel at TEP Birmingham, following commissioning last year. In recent weeks, the operational focus has been on HPMS debottlenecking, ramp-up optimisation and improvements, and initial testing of various scrap feedstocks, in parallel with recruitment and staff training, which has resulted in lower HPMS throughput. Produced HPMS powder is now being utilised for manufacturing of magnet block samples for customers. Excess HPMS powder, over and above what is required for magnet manufacturing, will continue to be produced and aggregated in batches for sale, with the priority on scaling-up magnet manufacturing.

• Once all equipment at TEP Birmingham is in place and optimised for steady state operations, which is targeted by the end of this year, HyProMag is targeting scale-up to between 100 to 350 tonnes per year (depending on the assumed number of production shifts) of NdFeB magnets and alloys.
• Feasibility studies have commenced for a further phased expansion of capacity at TEP Birmingham to a minimum of 1,000 tonnes per year of NdFeB magnets and alloys. HyProMag has engaged leading engineering firm WSP UK LIMITED ("WSP") to complete the feasibility study. The project cost is estimated at £1.12 million, with 60% grant funded (£0.67 million) by the UK Government as part of the DRIVE35 programme, delivered by the Department for Business, Innovation, Science and Trade in partnership with the Advanced Propulsion Centre and Innovate UK.
• HyProMag is engaging with multiple customers to support the scale-up of operations, with collaborations including Siemens AG, which has incorporated recycled NdFeB magnets produced by HyProMag into a SIMOTICS servomotor rotor recently presented at Hannover Messe 26 as follows: Hannover Messe 26 Siemens
• The Advanced Propulsion Centre funded REACT-UK project has commenced, with HyProMag serving as lead partner. REACT-UK will produce recycled magnets for incorporation and testing in a Jaguar Land Rover ("JLR") motor, proving UK capacity for NdFeB manufacture that combines short, medium and long-loop processing.
• HyProMag participated in JLR's Cornerstone Project, producing recycled magnet samples for incorporation into loudspeakers within the vehicle. All magnets passed end-of-line testing at Premium Sound Solutions and are continuing product validation.
• Pre-processing of hard disk drives ("HDD") is continuing at TEP Birmingham utilising the automated pre-processing unit, developed and manufactured by Inserma Anoia S.L. ("Inserma Unit"), which provides both magnet feedstock for HPMS processing and the opportunity for automated recovery of printed circuit board assemblies as per the following video: HyProMag UK - Inserma HDD Pre-processing Unit. HPMS processing of feedstock derived from pre-processing of HDDs by the Inserma Unit has commenced.

Left: Finished coated recycled NdFeB magnets for prototype demonstrations in medical devices.

Right: Mkango, HyProMag, and University of Birmingham colleagues at the opening ceremony of the magnet manufacturing facility at TEP.

HyProMag GmbH (Germany)

• First commissioning runs of recycled NdFeB alloy powder from the commercial scale HPMS vessel at HyProMag's plant site in Pforzheim, Germany, were announced in April 2026. The site is fully permitted for production of up to 750 tonnes per annum of NdFeB magnets and alloys.
• The plant was officially opened by the German Federal Ministry for Economic Affairs on 28 April 2026, with the opening ceremony presided over by Stefan Rouenhoff, Parliamentary State Secretary of the Federal Ministry for Economic Affairs and Energy.
• On 27 April 2026, the bilateral Germany-UK Business Government Forum took place in Berlin, where Katherina Reiche, Federal Minister for Economic Affairs and Energy of Germany and The Right Honourable Peter Kyle MP, Secretary of State for Business and Trade for the United Kingdom, signed a Joint Statement on cooperation on Critical Raw Materials with HyProMag featuring explicitly in the declaration as follows: Joint Statement of the Department for Business and Trade of the United Kingdom and the Federal Ministry for Economic Affairs and Energy of Germany on cooperation on Critical Raw Materials
• Strong progress has been made with the ongoing commissioning of the plant during the first half of 2026 with the HPMS vessel, jet mill, transverse and axial presses all commissioned, and the first pressed NdFeB magnet blocks produced from both the presses. The rest of the equipment is targeted for commissioning in the coming months.

First pressed NdFeB magnet blocks from the transverse press

• Associated infrastructure developments are also proceeding well with commissioning and connection of the new 1,000 kVA transformer, as well as commissioning and successful TÜV inspection and approval of the new 20,000-litre liquid nitrogen storage tank.
• 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 with strong interest in the HyProMag product suite.

Left: William Dawes, Chief Executive Officer, Mkango makes closing remarks at the HyProMag opening ceremony in Pforzheim.

Right: Dignitaries cutting the ribbon at the HyProMag plant opening ceremony in Pforzheim.

HyProMag USA

• In December 2025, HyProMag USA finalized the lease for 50% of Building 1 Ironhead Commerce Center, approximately 125,000 square feet, to house the proposed rare-earth magnet recycling and manufacturing facility in Dallas-Fort Worth, Texas. The site, located at the Ironhead Commerce Center, Building 1, is strategically located next to critical infrastructure, including the BNSF intermodal rail link and the Alliance airport as illustrated in the following fly through video: https://www.youtube.com/watch?v=xNmJF3Hh1Mk.
• On June 3, 2026, HyProMag USA took occupation, with the lease now fully in effect, and has begun establishing an operational presence at the site, including installation of communications infrastructure, security systems and other foundational requirements.
• On June 22, 2026, following further detailed engineering, HyProMag USA announced increased projected magnet production capacity of approximately 1,048 tonnes per annum of recycled sintered NdFeB magnets and 478 tonnes per annum of NdFeB co-products (total payable capacity of 1,526 tonnes per annum) over a 40 year operating life. On this basis, the post-tax NPV is approximately US$797 million, using a 7% real discount rate, with a real IRR of 37.1% based on forecast market prices, and approximately US$416 million with a real IRR of 26.3% based on current market prices. The payback at current market prices in 3.1 years and 2.2 years at forecast market prices.
• A joint Technical Procurement team has been set up between Intelligent Lifecycle Solutions ("ILS") and HyProMag USA to oversee the scrap procurement process and four full-time staff members were added to the ILS procurement team to support the stockpiling initiative. Stockpiling of end-of-life electronic scrap has commenced and to date, ILS has engaged with several potential suppliers to establish consistent feed of magnet scrap.
• In June 2026, the Company commenced procurement of critical-path long-lead equipment, including the HPMS vessels and magnet processing and finishing equipment relating to the HyProMag USA project to secure the development schedule for the Texas Hub, the commissioning of which is now planned on a phased basis, with magnet finishing operations targeted for H1 2027 and the integrated HPMS section targeted for Q2 2028.
• The initial finished magnet production line will be utilizing up to 20 tonnes of magnet blocks supplied by HyProMag Group operations in the United Kingdom and Germany. The HPMS section and integrated magnet manufacturing will target initial annual production of approximately 400 tonnes of recycled sintered NdFeB magnets and approximately 278 tonnes of NdFeB co-products, ramping up in stages to the full targeted annual capacity of approximately 1,526 tonnes of magnetic products. HyProMag USA has also initiated formal discussions with Oncor Electric Delivery Company LLC to provide power to the Texas Hub.
• The Project has received a Make More in America (MMIA) domestic finance letter of interest ("LOI") from the U.S. Export-Import ("EXIM") Bank for its first integrated rare earth recycling and magnet-making facility in Dallas-Fort Worth, Texas. In terms of the letter, EXIM may be able to consider potential financing of up to $92 million of the project's costs with a repayment tenor of 10 years. Discussions with EXIM are ongoing. In addition to the EXIM LOI, discussions with two commercial banks in relation to potential project finance for the Project are progressing well and are in due diligence phase.

Upstream Rare Earths Projects

• Mkango filed a Technical Report (the "Report") under NI 43-101 in relation to the Definitive Feasibility Study ("DFS") for the Songwe Hill Rare Earths Project ("Songwe" or the "Project") in Malawi, previously announced on March 19, 2026. The press release in relation to the DFS update is available to be downloaded from Mkango's website via the following link: Mkango Announces Results of Updated Feasibility Study for the Songwe Hill Rare Earths Project in Malawi. The Report is available to be downloaded from Mkango's profile on SEDARplus (https://www.sedarplus.ca).
• Results of the updated DFS for Songwe were issued in March 2026. Songwe's post-tax net present value ("NPV") is approximately $339 million, using a 10% nominal discount rate (7.3% real), with an internal rate of return ("IRR") of 24.32%, payback period of 3.4 years from start of full production and post-tax life-of-operations nominal cash flow of $1.55 billion.
• Results of a pre-feasibility study ("PFS") for the proposed Pulawy Rare Earths Separation Plant ("Pulawy") in Poland were issued in March 2026 alongside the Songwe DFS update. Pulawy's post-tax NPV is approximately $779 million, using a 10% nominal discount rate, with an IRR of 39.7%, payback period of 2.12 years from start of full production and a post-tax life-of-operations nominal cash flow of $4.95 billion.
• Applying Adamas Intelligence upside forecasts[1], Songwe's post-tax NPV increases to approximately US$489 million with a nominal IRR of 29.3%, payback period of 2.9 years from start of full production and post-tax life-of-operations nominal cash flow of $2.04 billion while Pulawy's expanded 100% neodymium/praseodymium ("NdPr") separation case rises to a post-tax NPV of approximately US$892 million and nominal IRR of 43.4%, payback period of 1.89 years from start of full production and post-tax life-of-operations nominal cash flow of $5.58 billion.
• MKAR entered into a Project Development Funding Agreement with the U.S. International Development Finance Corporation, to secure $4.6 million in reimbursable funding for Songwe in September 2025. The funds are supporting the Front-End Engineering and Design (FEED) and value engineering studies. FEED workstreams are currently being progressed, including ore variability and geotechnical test work.
• In July 2026, Malawi Minister of Mining, the Honourable Thoko Tembo, MP and Director General of the Malawi Mining Regulatory Authority visited Songwe with a large delegation of government officials.

Left: Malawi Minister of Mining Hon. Thoko Tembo, MP and Mkango President, Alexander Lemon, at Songwe Hill on a site visit. Right: Songwe Hill in the background.

Qualified Persons: The scientific and technical information in this news release relating to the Songwe Hill Rare Earths Project and the proposed Pulawy Rare Earths Separation Plant has been extracted from the Company's news release of March 19, 2026 announcing the results of the updated Definitive Feasibility Study for Songwe Hill and the pre-feasibility results for Pulawy, and from the Report, which was prepared by SENET under the guidance of Mr Philemon Bundo, a Qualified Person as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects. The Qualified Persons responsible for that disclosure are named in that news release and in the Report, and each is independent of Mkango. The Company confirms that it is not aware of any new material scientific or technical information that would make the disclosure in that news release or in the Report inaccurate or misleading. Readers are referred to that news release and to the Report, which is available under Mkango's profile on SEDAR+, for the assumptions, parameters, qualifications and procedures associated with the DFS and with the mineral resource and mineral reserve estimates for Songwe.

Granting of Options

Subject to regulatory approval, Mkango has granted 550,000 stock options over 550,000 common shares of the Company ("Options") to management (non-PDMR[2]) in accordance with the Company's existing Option Plan. Each Option is exercisable for one common share of Mkango ("Mkango Shares"), with an exercise price of $0.71 CAD (approximately 37.6 p using an exchange rate of 0.53 CAD:GBP) per common share, being the closing price of the Mkango Shares on the TSX-V on 31 August 2026. The Options will vest over the next 18 months and are valid for a period of ten years from the date of the grant. Following the issue of Options, the total number of common shares issuable pursuant to the Company's securities-based compensation plans is 19,879,933, representing 5 per cent of the Company's total issued share capital.

Semi-Annual Reporting

Mkango announces that it has elected to adopt the semi-annual reporting ("SAR") pilot program utilising the exemptions provided under Coordinated Blanket Order 51-933 Exemptions to Permit Semi-Annual Reporting for Certain Venture Issuers, granted by the Canadian securities regulatory authorities under Canadian securities laws. Pursuant to the SAR, the Company is exempt from the requirement to file an interim financial report and related management's discussion and analysis for the first and third interim periods of each financial year. This news release is being filed pursuant to Coordinated Blanket Order 51-933 Exemptions to Permit Semi-Annual Reporting for Certain Venture Issuers.

The initial interim period for which the Company does not intend to file an interim financial report and related management's discussion and analysis is the nine-month period ending 30 September 2026. The Company will nevertheless continue to provide quarterly operational updates to the market.

Semi-annual reporting aligns Mkango with the reporting practice of its peers on AIM and with the periodic reporting requirements that will apply to MKAR on completion of its proposed listing on NASDAQ.

About Mkango Resources Ltd.

Mkango currently owns 100% of the advanced stage Songwe Hill rare earths project in Malawi and the proposed Pulawy rare earths separation plant in Poland. On grant of the large-scale mining licence the Government of Malawi may elect to take a free 10% interest in the entity holding that licence. Both the Songwe and Pulawy 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. MKAR has signed a Business Combination Agreement with CKPT to list the Songwe Hill and Pulawy rare earths projects on NASDAQ via a SPAC merger under the name Mkango Rare Earths Limited.

[1] Recent REO price movements have driven Nd & Pr oxide prices to levels broadly aligned with Adamas Intelligence's Q4 2025 base case pricing report for 2028 and upside case for 2030-2031, providing support for the forecast scenario.

[2] Person Discharging Managerial Responsibilities