Hypromag Germany Announced As A Strategic Project

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HYPROMAG GERMANY ANNOUNCED AS A STRATEGIC PROJECT UNDER EUROPEAN UNION CRITICAL RAW MATERIALS ACT

LONDON / VANCOUVER: 9 October 2026 – Mkango Magnetic Materials Ltd. (AIM/TSX-V: MKA) (“Mkango” or the “Company”) announces that its subsidiary, HyProMag GmbH ("HyProMag"), has been announced as a Strategic Project under the European Union Critical Raw Materials Act (“CRMA”). Strategic status confirms the importance of HyProMag in securing reliable access to critical raw materials which are essential for European industry.

Three of the Company’s projects have now been designated as Strategic Projects under the CRMA:

• October 2026 – HyProMag GmbH rare earth magnet recycling and manufacturing plant, Pforzheim, Germany
• June 2025 – Songwe Hill rare earths mine development project, Malawi
• March 2025 – Pulawy rare earths separation project, Poland

HyProMag’s plant in Pforzheim is currently being commissioned and will have a minimum initial capacity of approximately 100 tonnes per annum of neodymium-iron-boron (“NdFeB”) magnets and alloys 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.

About Mkango Magnetic Materials Ltd.

Maginito and CoTec are also expanding Hydrogen Processing of Magnet Scrap (“HPMS”) recycling technology into the United States via the 50/50 owned HyProMag USA joint venture company.

Remloy has developed a plant in Bitterfeld, Germany, which recycles end-of-life rare earth magnets via a melting process (medium loop rare earth magnet recycling) to produce NdFeB alloy powders for the bonded and hot deformed magnet markets, complementary to HyProMag’s short loop recycling process, to produce sintered magnets, and to Mkango UK’s long loop recycling process, to produce mixed rare earth carbonates and oxides.

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. Mkango Rare Earths Limited (“MKAR”) has signed a Business Combination Agreement with Crown PropTech Acquisitions (“CPTK”) to list the Songwe Hill and Pulawy rare earths projects on NASDAQ via a SPAC merger (the “Proposed Business Combination”) under the name Mkango Rare Earths Limited.