Mkango Resources Limited - Hypromag USA Provides Positive Update to Valuation

Texas Facility Expansion Increases Magnet Capacity, Supports Domestic Critical-Minerals Supply Chains and IncreasesPost-Tax NPV to US$780 million (forecast prices) and US$409 million (current prices)

CALGARY, AB / ACCESS Newswire / December 15, 2025 / Mkango Resources Ltd (AIM:MKA)(TSX-V:MKA) (the "Company" or "Mkango"), is pleased to announce that HyProMag USA, LLC ("HyProMag USA"), a U.S.-based leader in rare-earth recycling and processing, has expanded the magnet capacity of its first facility (the "Texas Hub" or the "Project") and has updated the valuation of the Project with the completion of the Class 2 AACE^[i] capital cost estimate as part of the Detailed Engineering Design and Value Engineering Phase (the "Detailed Design"). The Class 2 AACE capital cost estimate and detailed value-engineering work confirm a significant increase in magnet production capacity and materially improved Project economics.

In parallel, HyProMag USA has commenced a strategic review to evaluate a potential separate listing of the shares of HyProMag USA in the U.S. for late 2026 or early 2027, subject to successful execution of the Project and meeting the required regulatory approvals.

Key Highlights

• Uplift in project valuation: Detailed Engineering results for state-of-the art rare earth magnet recycling and manufacturing operation in the United States with a Texas Hub supported by two pre-processing spoke sites co-located at Intelligent Lifecycle Solutions ("ILS") sites in South Carolina and Nevada^[ii]

  • US$409 million post-tax Net Present Value ("NPV")^[iii] and 27.6% real internal rate of return ("IRR") based on current market prices^[iv],[v]

  • US$780 million post-tax NPV and 38.7% real IRR based on forecast market prices^[vi]

• Increased magnet production capacity: 941 metric tonnes per annum of recycled sintered neodymium-iron-boron ("NdFeB") magnets and 611 metric tonnes per annum of associated NdFeB co-products (total payable capacity - 1,552 metric tonnes NdFeB) over a 40-year operating life

• Competitive operating profile: Low all-in sustaining Cost ("AISC")^Xii,[vii] of US$22.3 per kg of NdFeB product versus current weighted average market price of US$56.8 per kg of NdFeB products, with significant scope for price recovery from current market conditions

• Scalable design with expansion potential: The optimised layout allows for the inclusion of an additional two furnaces within three years following commissioning for an additional capital cost of approximately US$3 million