Mkango Provides Construction Update on UK Manage Recycling Manufacturing Facility

Mkango Resources Ltd. is pleased to provide an update on the progress of the rare earth magnet recycling and manufacturing facility currently being constructed at Tyseley Energy Park, UK. Developed by the University of Birmingham and in partnership with Mkango's subsidiary, HyProMag Limited ("HyProMag"), the facility is set to strengthen the UK's domestic supply chain for rare earth magnets by integrating innovative recycling technologies with new magnet production.

Last month, representatives from the UK's Department for Business and Trade ("DBT") and the Office for Investment visited the site, highlighting continued government support for HyProMag's mission to establish a UK-based, sustainable rare earth magnet recycling and manufacturing facility.

Significant progress has been made at the Tyseley facility over the last three months.

Key updates include:
- Initial commercial production is targeted to commence by the end of Q2 2025, subject to completion of the required infrastructure.
- Magnet alignment presses are now fully commissioned, and the powder processing plant has been constructed.
- Infrastructure development is progressing, with data, battery, and electrical rooms completed and electrical and gas pipe installation works advancing well.
- The factory acceptance test for the Hydrogen Processing Magnet Scrap ("HPMS") vessel is taking place this week, with shipment to the UK from Germany expected by the end of the month.
- Ongoing HPMS pilot production continues to enable early product deliveries to customers ahead of full-scale production and this is to be scaled up in parallel with commissioning of the commercial plant at Tyseley.

Ivan Lima, Investment Lead for Critical Minerals at DBT, commented: "A great visit to Birmingham by the DBT Critical Minerals team and Office for Investment to see the magnet recycling pilot plant at the University of Birmingham. We also visited Tyseley Energy Park to see progress on the scaled-up plant. Amazing work being done in this groundbreaking technology! Thanks especially to Prof. Allan Walton, Nick Mann, and William Dawes for making us feel so welcome"

William Dawes, CEO of Mkango Resources, commented: "We are pleased with the progress at Tyseley, where we are integrating both new magnet manufacturing and sustainable recycling technologies in collaboration with the University of Birmingham. This facility will play a critical role in strengthening the UK's rare earth magnet supply chain and supporting the country's clean energy transition. The visit from representatives of the DBT and Office for Investment reaffirmed the importance of this project in driving forward the UK's advanced manufacturing and critical minerals strategy."

Allan Walton, Head of the Magnetic Materials Group at the University of Birmingham and Founding Director of HyProMag, commented: "The progress at Tyseley is a testament to the strong collaboration between academia and industry, driving forward cutting-edge solutions for rare earth magnet recycling and manufacturing. The integration of HPMS technology into a commercial-scale facility is a significant step towards a more sustainable and secure supply chain for critical materials in the UK. We are proud to be working alongside Mkango and HyProMag to pioneer this groundbreaking approach, reducing environmental impact while reinforcing the UK's leadership in advanced magnet technology.

The HPMS process enables efficient recovery of rare earth magnets from end-of-life components. Extracted alloy powder is purified and can be directly converted into new magnets or fed into different parts of the global supply chain:

· Short Loop Recycling: Direct remanufacturing into new magnets (developed by the University of Birmingham).
· Medium Loop Recycling: Re-melting into new alloys.
· Long Loop Recycling: Chemical separation for refining into oxides and metals.

HyProMag holds exclusive rights to HPMS technology, supported by expertise from the University of Birmingham's Magnetic Materials Group (MMG). The technology is also being commercialised internationally, with sister companies in the USA and Germany.