Mkango Resources Limited - Hypromag to Collaborate With Areera

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Mkango Resources Ltd. (AIM:MKA)(TSXV:MKA) (the "Company" or "Mkango") is pleased to announce that pursuant to a non-binding (the "Term Sheet"), HyProMag Limited ("HyProMag") is collaborating with Areera Limited ("Areera") on the recovery and recycling of rare earth magnets embedded within speaker assemblies associated with a range of display equipment. HyProMag is 100% owned by Maginito Ltd, a subsidiary of Mkango (79.6%) and CoTec (20.4%)

Nick Mann, Managing Director of HyProMag, stated: "This collaboration unlocks an additional feed source for HPMS and allows HyProMag and Areera to recycle critical materials that are currently lost in traditional recycling routes. It is very encouraging that Areera sees the benefit of the technology developed by Inserma and RISE as well as the solution that the HPMS process presents. HyProMag is looking forward to further developing this supply chain."

Craig Thompson, Chief Executive of Areera, stated: "Areera is excited to have partnered with HyProMag on the recovery of critical rare earth materials from speakers in televisions and monitors, an EU and UK first. This demonstrates one of the benefits of Areera's unique separation process for recycling of display equipment without shredding of whole screens."

Pursuant to the collaboration, HyProMag partners, Inserma and RISE have developed an automated sorting system, combining AI Vision and magnetic imaging, which successfully sorts and separates speakers containing NdFeB magnets for recycling from those containing ferrite magnets. This system is currently being trialled on speaker assemblies supplied by Areera. Speakers containing NdFeB magnets are then further processed by Inserma using a bespoke pre-processing technology to provide a concentrated feed for HyProMag.

The ultimate objective is to deploy automated sorting and pre-processing units, developed by Inserma, to Areera sites in the UK to provide speaker derived NdFeB feedstock to HyProMag. This enables Areera to capture more value from its scrap streams, unlocks a new source of NdFeB feedstock supply for HyProMag, and is aligned with both companies' visions for development of sustainable, circular supply chains.

Although there can be no certainty at this stage given the non-binding nature of the Term Sheet, the Directors remain confident that the Term Sheet will lead to a binding definitive agreement between the parties and in the meantime, the collaboration is already underway. Further announcements will be made as appropriate.