Mkango Resources Limited announces HyProMag’s participation in £11m Pulse project

HYPROMAG TO PARTICIPATE IN £11 MILLION GRANTS-FUNDED PROJECT: LARGE-SCALE POWER ELECTRONICS FOR LOCALIZED AND SUSTAINABLE ELECTRIFICATION (PULSE)

Overview of the most important events

• HyProMag, a pioneering rare earth magnet recycling and manufacturing company, is taking part in the £11 million PULSE project (the “Project”), which is part-funded by the UK Government through the Advanced Propulsion Centre UK (“APC”)

• HyProMag will work with four industrial partners on the project: Protean Electric (“Protean”), Unipart Manufacturing (“Unipart”), Viritech and Transense Technologies plc (“Transense”), as well as Coventry University and Warwick Manufacturing Group (“WMG”)

• PULSE to deliver first In-Wheel Motor (“IWM”) to utilise recycled magnets produced within HyProMag’s in-house manufacturing capabilities combined with patented Hydrogen Magnetic Scrap (“HPMS”) technology developed at the University of Birmingham, further strengthening the UK rare earth magnet materials supply chain and achieving net zero emissions

CALGARY, AB / ACCESSWIRE / September 24, 2024 / Mkango Resources Ltd. (AIM:MKS)(TSX-V:MKA) (the “Company” or “Mkango”) is pleased to announce that HyProMag Limited (“HyProMag”) has participated in the PULSE project funded by an £11 million grant. HyProMag is wholly owned by Maginito Limited (“Maginito”), which is 79.4% owned by Mkango and 20.6% owned by CoTec Holdings (“CoTec”).

The project will be led by Protean and will deliver a first-of-its-kind flexible assembly line for the power electronics systems used by IWM and other net-zero products. IWM generates power directly at the vehicle’s wheels. By transferring power to the wheels, drivers gain improved torque response, better handling, faster acceleration, reduced charging and extended range.

William Dawes, CEO of HyProMag, said:We are extremely pleased to be part of this groundbreaking project and to be working with a leading consortium in electric vehicle innovation, which will allow us to validate HyProMag’s HPMS technology and position the company as a leader in the development and commercialization of rare earth magnet recycling technology.“

Dr. Rob Arnold, Technical Director of HyProMag, stated:This consortium demonstrates a strong commitment to sustainability and scaling manufacturing capabilities in the UK, which is why we are proud to join Project PULSE and continue to bring sintered NdFeB magnet production back to the UK. Building on our existing relationship with Protean, this project will enable HyProMag to achieve a world first by incorporating short recycled magnets into Protean’s In-Wheel Motor technology, delivering a huge reduction in embedded CO₂.“

Continuing HyProMag’s existing relationship with IWM manufacturer Protean and former RARE project partner Unipart, Project PULSE will expand the IWM market while directly incorporating cutting-edge power electronics. Other industrial partners include fuel cell electric vehicle (“FCEV”) driveline experts Viritech and sensor technology specialists Transense; while academic partners Coventry University and WMG complete the consortium.

PULSE will accelerate the development and industrialization of IWM and fuel cell technologies. In addition, the creation of flexible power electronics production capacity and a focus on sustainable manufacturing innovation will lead to significant job creation and protection, while saving more than 1 million tons of CO₂ per year in the UK.

In addition to the opportunity to develop applications and commercialise HPMS and magnet production technologies, and further develop its network of leading industrial and academic partners, HyProMag will also receive a grant of £43,000 as part of the project.

About Mkango Resources Ltd.

Mkango is listed on AIM and TSX-V. Mkango’s corporate strategy is to become a market leader in the production of recycled rare earth magnets, alloys and oxides, through its stake in Maginito Limited, which is 79.4 per cent owned by Mkango and 20.6 per cent owned by CoTec, and to develop new sustainable sources of neodymium, praseodymium, dysprosium and terbium to meet the growing demand from electric vehicles, wind turbines and other clean energy technologies.

Maginito holds 100% of the shares in HyProMag and a 90% direct and indirect interest (assuming conversion of the Maginito Convertible Loan) in HyProMag GmbH, which focuses on the recycling of short-loop rare-earth magnets in the UK and Germany respectively, and a 100% interest in Mkango Rare Earths UK Ltd (“Mkango UK”), which focuses on the recycling of long-loop rare-earth magnets in the UK by chemical means.

Maginito and CoTec are also implementing HyProMag recycling technology in the United States through a 50/50 joint venture, HyProMag USA LLC. HyProMag is also evaluating other jurisdictions and recently partnered with Envipro to recycle rare earth magnets in Japan.

Mkango also owns the advanced Songwe Hill rare earth project and an extensive exploration portfolio of rare earth, uranium, tantalum, niobium, rutile, nickel and cobalt deposits in Malawi, as well as the Puławy rare earth separation project in Poland.

Note Regarding Forward-Looking Statements

This press release contains forward-looking statements (as that term is defined under applicable securities laws) regarding Mkango. Generally, forward-looking statements can be identified by the use of words such as “targeted”, “plans”, “expects” or “is expected”, “scheduled”, “estimated”, “intends”, “anticipates”, “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “could”, “should”, “could” or “will”, occur or be achieved or negative connotations associated therewith. Readers are cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations on which they are based will be achieved. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that predictions, forecasts, projections and other forward-looking statements will not be achieved, which could cause actual results or performance in future periods to be materially different from any estimate or forecast of future results or performance expressed or implied by such forward-looking statements. Such factors and risks include, without limitation, the success of the Project in achieving its objectives and the commercial application of the results, the availability of financing (or delays in obtaining financing) for the development of various recycling facilities in the United Kingdom and Germany, governmental actions and other market effects on global demand and prices of metals and related end products that Mkango is researching and developing, the ability to scale the HPMS and chemical recycling technologies to commercial scale, competitors with greater financial capacity and effectively competing technologies in Maginito’s recycling business and Mkango’s separation business, the availability of scrap supplies to the recycling business, governmental regulations (including the impact of environmental and other regulations) and economics with respect to recycling and the development of various Maginito recycling facilities, and future investments in the United States pursuant to the cooperative agreement between Maginito and CoTec, the outcome and timing of feasibility studies, cost overruns, complexities of construction and operation of the facilities, and the positive outcomes of feasibility studies relating to various proposed aspects of Maginito’s business. The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, the Company disclaims any intention and assumes no obligation 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. Further, the Company undertakes no obligation to comment on the expectations or statements of third parties with respect to the matters discussed above.

For more information about Mkango, please contact:

Mkango Resources Limited
William Dawes Alexander Lemon
General Director President
This email address is being protected from spambots. You must enable JavaScript to view it.@mkango.ca
Canada: +1 403 444 5979
www.mkango.ca
@MkangoResources

SP Angel Corporate Finance LLP
Nominated advisor and joint broker
Jeff Keating, Caroline Rowe
Great Britain: +44 20 3470 0470

Alternative Resource Capital
Common broker
Alex Wood, Keith Dowsing
Great Britain: +44 20 7186 9004/5

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