Mkango announces grant-funded HyProMag project to develop Germany’s first rare earth magnet recycling HPMS plant, targeting first production in 2024

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• HyProMag GmbH has awarded a €3.7 million grant for a new project to further develop its local knowledge base, infrastructure and recycled NdFeB production capacity to support the transition to commercial production in Germany. Awarded.
• The initial production capacity is NdFeB with a minimum of 100 tpa from recycled rare earth sintered magnets, alloy pellets and powder, the first in Germany to use the patented HPMS (Hydrogen Processing of Magnet Scrap) process. , the first production is targeted for 2024.
• HyProMag GmbH is 80% owned by HyProMag Limited (42% Mkango). HyProMag Limited is developing a recycling plant similar in scale to the University of Birmingham at his Tyseley Energy Plant in the UK, with first production targeted for his 2023.
• HyProMag GmbH has acquired the €14 million SusMagPro (www.susmagpro.eu) and €13 million of REesilience (www.reesilence.eu) recycling projects funded by the EU.European supply works with about 40 partners throughout his chain
• Recycling of rare earth magnets and related downstream processes is a core component of Mkango’s ‘Mining, Refining and Recycling’ strategy and the company continues to evaluate further opportunities to grow its business in Europe, North America and Asia.

LONDON & VANCOUVER, British Columbia, November 23, 2022 (GLOBE NEWSWIRE) — Mkango Resources Ltd. (AIM/TSX-V: MKA) (“we” or “Mkango”) is a European regional developer of HyProMag GmbH. A new project entitled “Innovation Center for Science and Economy IZWW Northern Black Forest – Innovation Center for Science and Economy in the Northern Black Forest” (“Project”), consisting of a grant of €2.5 million and a grant of €1.2 from the Fund (ERDF) awarded grants totaling 3.7 million euros. 1 million grant from the Ministry of Economy, Labor and Tourism of Baden-Württemberg.

The total cost of the project is expected to be €6.1 million, about 60% of which will be covered by grants. This is based on the fact that for every euro that HyProMag GmbH spends on the project, he can claim a contribution of 1.50 euros. from subsidies. The first phase of the project will develop a production facility in Baden-Württemberg with a minimum capacity of 100 tpa for his NdFeB, including recycled rare earth sintered magnets, alloy pellets and powders.

The first production facility is similar in size to the £4.3m project being developed by HyProMag Limited and the University of Birmingham at Tidesley Energy Park, UK, and is a challenge for the Industrial Strategy Challenge Fund provided by UK Research. Funded by Driving the Electric Revolution. and Innovation (“UKRI”).

HyProMag GmbH was established to commercialize HPMS technology in Germany and the EU, to strengthen the European rare earth supply chain and to further support government initiatives to accelerate the transition to the environment. This project is a major milestone in the realization of this strategy.

William Dawes, CEO of Mkango, said: “This is an exciting milestone for Mkango, HyProMag GmbH and HyProMag Limited and significantly strengthens the Group’s production pipeline, targeting first production in the UK in 2023 and Germany in 2024, followed by parallel production in North America. We believe the recycling of rare earth magnets will play a key role in developing a strong supply chain to drive and support the growth of the electric vehicle sector and other clean technologies.

“This project further strengthens Mkango and HyProMag’s first-mover advantage in the rare earth magnet recycling sector, underscores their competitive position and benefits from a very strong network of industry and academic partners..“

Professor Carlo Burkhardt, Director of HyProMag GmbH, said: “Installing this ultra-efficient manufacturing facility for rare earth permanent magnets is a unique opportunity to establish technological leadership along the entire value chain for rare earth magnets. The combination of industrial and scientific capabilities in the It is playing a role and will enable the development of even more high-performance applications that will become even more important in the near future.”

Rare earth magnets play an important role in clean energy technologies such as electric vehicles and wind turbines, and are also important components of electronic devices such as mobile phones, hard disk drives and speakers. The development of recycled rare earth resources in Germany by HPMS is an important opportunity to accelerate the development of sustainable and competitive recycled rare earth magnet production.

Market Abuse Regulation (MAR) Disclosure

The information contained in this announcement is deemed to constitute inside information as provided for in Market Abuse Regulations (EU) No. 596/2014 (“MAR”), which is incorporated into UK law by the European Union (Withdrawal) Act. is done. 2018. Upon publication of this announcement via the Regulatory Information Service, this inside information is considered to be in the public domain.

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Mkango’s corporate strategy is to develop new sustainable primary and secondary sources of neodymium, praseodymium, dysprosium and terbium to meet the accelerating demand from electric vehicles, wind turbines and other clean technologies. This integrated mining, refining and recycling strategy differentiates Mkango from its peers and gives it a unique position in the rare earth sector.

Mkango is developing Songwe Hill in Malawi, which completed a feasibility study in July 2022. Malawi is known as ‘the warm heart of Africa’ and is a stable democracy with existing road, rail and power infrastructure, and new infrastructure development underway.

In parallel, Mkango and Grupa Azoty PULAWY, a leading Polish chemical company and the second largest producer of nitrogen and compound fertilizers in the European Union, are building a rare earth separation plant (“Pulawy Separation Plant”) in Pulawy, Poland. The Pulawy Separation Plant processes refined mixed rare earth carbonates produced at Songwe Hill.

Through its ownership of Maginito (www.maginito.com), Mkango is also developing green technology opportunities in the rare earth supply chain, including neodymium (NdFeB) magnet recycling and innovative rare earth alloy, magnet and separation technologies. increase. Maginito holds his 42% interest in HyProMag (www.hypromag.com), a UK rare earth (NdFeB) magnet recycler, with the option to increase that interest to his 49%.

Mkango also has an extensive exploration portfolio in Malawi, including the Mchinji Rutile Exploration Project, the Thambani Uranium-Tantalum-Niobium-Zircon Project and the Chimimbe Nickel-Cobalt Project.

For more information, please visit www.mkango.ca.

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking statements (within the meaning of terms under applicable securities laws) regarding Mkango. Forward-looking statements generally involve the use of words such as “plans,” “expects,” “anticipates,” “intends,” “estimates,” “intends,” “projects,” “believes,” or variations of the words. can be identified by Such words or phrases or specific actions, events, or results “could”, “might”, “could”, “would”, “should”, “could” Statements of “is” or “will” or negative connotations thereof. Readers are cautioned not to place undue reliance on forward-looking statements. There is no guarantee that the plans, intentions or expectations on which they are based will be realized. By their nature, forward-looking statements are subject to general and specific known and unknown risks and uncertainties that make it possible that projections, projections, projections and other forward-looking statements may not occur. , which contains a number of assumptions. future performance or results that differ materially from our estimates or projections of future performance or results expressed or implied by such forward-looking statements; Such factors and risks include, but are not limited to, government actions related to COVID-19, COVID-19, and the global spread of metals and related downstream products under investigation, research and development by Mkango. other market influences and factors on demand and pricing. In connection with the development of the Pulawy Separation Plant, the production facility in the province of Baden-Württemberg, the Tyseley Energy Park (the “Plant”), the results of the feasibility study and the plant, including the timing of completion, cost overruns, construction and operational complexity. , changes in economics and government regulation, positive results of feasibility studies, delays in obtaining funding or government approval, environmental and other regulatory impacts related to songwe and plants. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, we disclaim any intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. and assume no obligation. Further, we do not undertake any obligation to comment on any third party expectations or statements regarding the above matters.

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Source: Mkango Resources Ltd.