Mkango Resources Limited - HyProMag USA Expands Feedstock Supply Agreement

The most recent news release from November 19, 2025, announces that HyProMag USA, a joint venture involving Mkango Resources, has expanded its feedstock supply agreement with Intelligent Lifecycle Solutions, LLC (ILS). This expanded agreement covers a broader range of neodymium iron boron (NdFeB) feedstock from hard disk drives (HDDs) and other sources, including electric motors, wind turbine magnets, speaker assemblies, and MRIs.

Key operational updates include: - HyProMag USA is targeting the delivery of INSERMA '3rd generation' HDD magnet separation systems to ILS pre-processing sites by the end of December 2025. - A joint 'Technical Procurement' team has been established. - Concept studies for expanding operations into Nevada and South Carolina, and for long-loop recycling with Worley Group Inc., have been commissioned. - The news reiterates the annual production capacity target for the Texas Hub: 750 metric tonnes of recycled sintered NdFeB magnets, 807 metric tonnes of NdFeB co-products (total payable capacity of 1,557 metric tonnes NdFeB), an operating life of 40 years, and the creation of 95 skilled manufacturing jobs. - The low CO2 footprint of 2.35 kg CO2 eq. per kg of NdFeB is also highlighted.

This news is a positive but routine update that confirms the ongoing execution of HyProMag USA's development strategy. It aligns directly with previously announced plans and provides incremental progress details rather than introducing new material information that would significantly alter the company's outlook.

Positive Aspects: - Execution of Strategy: The expanded feedstock agreement and the impending delivery of INSERMA separation units demonstrate concrete steps in securing raw material supply and implementing key processing technologies for the HyProMag USA project. This is consistent with earlier announcements (e.g., the initial Feedstock Supply and Pre-processing Site Share Agreement with ILS on July 24, 2025, and the purchase of Inserma units on September 30, 2025). - Supply Chain Development: Broadening the feedstock sources beyond HDDs to include rotors from electric motors, wind turbine magnets, speaker assemblies, and MRIs enhances the resilience and diversity of the raw material supply chain for recycled magnets. This is a positive for long-term operational stability. - Operational Scale-up: The commissioning of concept studies for expansion into Nevada and South Carolina, alongside the existing Texas Hub, reiterates the company's ambition to significantly scale up its US operations, as previously outlined in the September 4, 2025, news aiming to triple capacity. - Consistency of Projections: The repeated key performance indicators (KPIs) for the Texas Hub (production capacity, operating life, job creation, CO2 footprint) reinforce the company's confidence in these projections, which were first detailed in the November 25, 2024, Feasibility Study and subsequently reiterated.

Neutral Aspects: - No New Financial Information: The release does not contain new financial projections or funding details beyond what has been previously disclosed (e.g., the $92M LOI from EXIM Bank on June 12, 2025, for the Texas facility, or the $4.6M DFC funding for Songwe Hill). The impact is therefore operational, not immediate financial upside. - Expected Progress: The described developments are logical and expected next steps following earlier announcements regarding the ILS partnership, INSERMA technology acquisition, and regional expansion plans.

Overall, the news reinforces the positive trajectory of the HyProMag USA project by showing consistent progress in securing feedstock, deploying technology, and planning for future expansion, all in line with previous expectations.

Mkango Resources Ltd. is a Canadian-listed company primarily focused on rare earth elements (REE) through both upstream mining projects and downstream recycling and manufacturing initiatives.

Flagship Projects: 1. Songwe Hill Rare Earth Project (Malawi): This is an advanced-stage mining project aiming to produce a mixed rare earth carbonate (MREC) product. It has completed a Definitive Feasibility Study (DFS) and Environmental, Social, Health Impact Assessment (ESHIA). A Mining Development Agreement with the Government of Malawi was signed in July 2024. The project has been designated a "Strategic Project" under the EU Critical Raw Materials Act (CRMA), signifying its importance to Europe's supply security and potential for expedited permitting and funding support. Annual production estimates are 1,953 tonnes of Neodymium-Praseodymium oxides and 56 tonnes of Dysprosium-Terbium oxides over an 18-year mine life. 2. Pulawy Rare Earth Separation Project (Poland): This proposed separation plant in Poland is designed to process MREC from Songwe Hill into separated rare earth oxides. It is located adjacent to a large nitrogen fertilizer complex, offering infrastructure and reagent synergies. This project has also been designated a "Strategic Project" under the EU CRMA, expected to benefit from EU support and expedited development. Target annual production includes 2,000 tonnes/year of Neodymium-Praseodymium oxides and 50 tonnes/year of Dysprosium-Terbium oxides. 3. HyProMag Rare Earth Magnet Recycling and Manufacturing (UK, Germany, USA): This is a key growth area for Mkango, leveraging the patented Hydrogen Processing of Magnet Scrap (HPMS) technology developed at the University of Birmingham. * HyProMag UK: A scaled-up recycling and manufacturing plant at Tyseley Energy Park, Birmingham, is in commissioning, with initial alloy production achieved. * HyProMag Germany: A plant near Pforzheim is targeted for production in late 2025, with site selection and equipment ordering completed. * HyProMag USA: A major project in Dallas-Fort Worth, Texas (the "Texas Hub"), with plans for expansion into South Carolina and Nevada. A Feasibility Study (November 2024) projects robust economics (NPV $262M-$503M USD, IRR 23-31%). It aims to produce 750 tpa recycled sintered NdFeB magnets and 807 tpa co-products, with a 40-year operating life and a low carbon footprint. First revenue is targeted for H1 2027. This project has received a finance Letter of Interest for $92M USD from the U.S. Export-Import Bank (EXIM) and is supported by the Minerals Security Partnership.