Mkango Resources Limited Announces Feasibility Study: Songwe & PFS Results: PU?AWY

2026-03-19

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Mkango Resources Limited Announces Feasibility Study: Songwe & PFS Results: PUŁAWY

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA AND THE UNITED KINGDOM ONLY AND IS NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA), OR ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

MKANGO ANNOUNCES RESULTS OF UPDATED FEASIBILITY STUDY FOR THE SONGWE HILL RARE EARTHS PROJECT IN MALAWI AND PRE-FEASIBILITY RESULTS FOR THE PROPOSED PUŁAWY RARE EARTH SEPARATION PLANT IN POLAND

CALGARY, AB / ACCESS Newswire/ March 19, 2026 / Mkango Resources Ltd. (AIM:MKA)(TSX-V:MKA) (the "Company" or "Mkango") is pleased to announce the results of the updated definitive feasibility study ("DFS") for the Songwe Hill Rare Earths Project ("Songwe" or the "Project") in Malawi, and results of a pre-feasibility study ("PFS") for the proposed Puławy Rare Earths Separation Plant ("Puławy") in Poland.

Alexander Lemon, President of Mkango commented:_"We are delighted to announce the results of our updated NI 43-101 DFS for the Songwe Hill Rare Earths project and the PFS results for the Puławy Rare Earth Separation Plant. Incorporating revised rare earth pricing, capital and operating cost assumptions, these studies reflect our commitment to moving these high-quality projects forward. As one of the few companies in the sector to update feasibility studies with current market pricing, Mkango is uniquely positioned as a future supplier of both mined and recycled rare earths - a critical differentiator as global demand for green transition materials accelerates. Songwe in Malawi and Puławy in Poland are landmark projects for the communities and economies they are expected to transform and our mission to deliver sustainable, long-term value for our shareholders."_

Based on updated feasibility‑study inputs and assumptions regarding rare earth pricing, production volumes, recoveries, capital and operating costs, discount rates, tax regimes, project schedules, and market demand forecasts, as well as the technical, environmental and regulatory parameters set out in the DFS and PFS and as summarised in this release (the "Study-level Assumptions"), selected study-level outputs from the DFS and PFS include:

Songwe is among the very few rare earths projects globally to have achieved the DFS stage, with a Mining Development Agreement, a full Environmental, Social, Health Impact Assessment ("ESHIA") completed in compliance with IFC Performance Standards. The Global Industry Standard on Tailings Management (2020) ("GISTM") has been adopted for design and management of the tailings storage facility, as well as Songwe being selected as a strategic project under the European Union Critical Raw Materials Act ("CRMA").

Songwe will produce a value-add purified mixed rare earth carbonate ("MREC") product, which can be sold into international markets and is suitable for the proposed Puławy separation plant in Poland.

Neodymium, praseodymium, dysprosium and terbium are critical for the green transition, used in permanent magnets for electric vehicles, wind turbines and many electronic devices.

Operating life of 18 years for Songwe, withproduction averaging 5,954tonnes per year total rare earth oxides ("TREO") for the first full five years of production, including 1,953 tonnes per year of neodymium and praseodymium oxides, and 56 tonnes per year of dysprosium and terbium oxides, in aMREC grading 55% TREO (dry basis).

Songwe initial capital expenditure ("capex")ofapproximately US$325.5 million (including a US$27.8 million contingency) for development of mine, mill, flotation and hydrometallurgy plants, tailings storage facility, and related project infrastructure in Malawi.

Puławy initial plant capex ofapproximatelyUS$212 million (including a US$35.4 million contingency) for development of a Rare Earth Separation plant and related project infrastructure in Poland.

Songwe post-tax net present value ("NPV") of approximately US$339 million, using a 10% nominal discount rate, with an internal rate of return ("IRR") of 24%, payback period of 3.4 years from start of full production and post-tax life-of-operations nominal cash flow of US$1.55 billion.

Puławy post-tax NPV of approximately US$779 million, using a 10% nominal discount rate, with an IRR of 40%, payback period of 2.12 years from start of full production and post-tax life-of-operations nominal cash flow of US$4.95 billion.

Applying Adamas Intelligence upside forecasts[1], Songwe's post-tax NPV increases to approximately US$489 million with a nominal IRR of 29%, payback period of 2.9 years from start of full production and post-tax life-of-operations nominal cash flow of $2.04 billion while Puławy's expanded 100% neodymium/praseodymium ("NdPr") separation case rises to a post-tax NPV of approximately US$892 million and nominal IRR of 43%, payback period of 1.89 years from start of full production and post-tax life-of-operations nominal cash flow of $5.58 billion.

Summary of Selected Financial DFS-level outputs for Songwe Hill - Post-Tax Basis

1Assumes project start i.e. start of capital expenditure in July 2027.

2Figures based on Mkango owning all of the shares of Mkango Rare Earths Limited ("MKAR"). Mkango's interest in MKAR will be diluted following the proposed business combination with Crown Proptech Acquisitions and related proposed listing on Nasdaq of the MKAR shares to a significant majority interest, subject to the final transaction structure. It is expected that MKAR will be a "controlled company" for Nasdaq listing purposes.

Songwe - Project Overview

Mkango appointed SENET, a DRA Global company, as the principal consultant to complete the original and the updated DFS. SENET is a leading engineering, procurement and construction management (EPCM) minerals processing and project delivery firm located in Africa. Other primary consultants for the updated DFS included the following:

Geology, Mineral Resource, and Geotechnical Investigation: The MSA Group (Pty) Ltd ("MSA")

Mining: Bara Consulting (Pty) Ltd ("Bara")

Comminution: Grinding Solutions Limited ("Grinding Solutions"), Keramos

Process Plant including On-Site and Off-Site Infrastructure: SENET, a DRA Global Company ("SENET")

Hydrometallurgy: Australian Nuclear Science and Technology Organisation ("ANSTO")

Flotation: KYSPY Investments (Pty) Ltd ("KYSPYmet"), ALS Metallurgy (Pty) Ltd ("ALS Metallurgy")

Tailings Storage Facility (TSF): Epoch Resources (Pty) Ltd ("Epoch")

Environmental, Social and Health Impact Assessment (ESHIA): Digby Wells and Associates (Pty) Ltd ("Digby Wells Environmental"), Kongiwe Environmental (Pty) Ltd

Geochemistry:SGS Australia (Pty) Ltd

Geotechnical testwork: Western Geotechnical and Laboratory Services

Logistics: C. Steinweg Bridge (Pty) Ltd

Market Intelligence: Adamas Intelligence Inc ("Adamas")

The DFS is based on a conventional open pit contract mining operation, feeding mills, flotation and hydrometallurgy plants on site in Malawi to produce a MREC, with an operating life (mining and processing) of 18 years. The Company believes there is potential to increase the mine life given the additional Inferred Resource, and the potential to expand the Mineral Resource. The DFS supports the declaration of a Proven and Probable Mineral Reserve Estimate of 18.1 million tonnes grading 1.16% TREO.

Songwe features broad zones of outcropping rare earth mineralisation on the northern slopes of a steep sided hill. The annual processing capacity is assumed to be approximately 1.0 million tonnes per year of ore producing an average of 5,954 tonnes of TREO in MREC per year for the first five years and 4,081 tonnes of TREO in MREC per year in years 6 to 18. The MREC will be cerium depleted. Because cerium is currently considered to have challenging market fundamentals, there is a strong economic rationale to remove as much cerium as possible and, as a result, a large proportion of the cerium will be removed from the MREC during the hydrometallurgical process. Confirmation of the flotation and hydrometallurgical processing flow sheets was underpinned by seven piloting campaigns at ALS Metallurgy and ANSTO.

The final stage of hydrometallurgical piloting at ANSTO produced MREC grading 55% TREO equivalent, enriched in Nd/Pr oxides, which together made up 31% of the rare earth oxide content in the carbonate product (i.e. Nd/Pr oxides / TREO = 31%).

Energy supply of 25 megawatts ("MW") is expected to be obtained from the Malawi grid network for the Project, which in Malawi is from hydroelectric and solar sources. A 25 MW back up solar farm with battery storage and diesel generators is also expected to be installed.

The MREC is expected to be exported via largely existing infrastructure. The Project is located approximately 95 km by road from Blantyre, the largest commercial centre in Malawi, which is served by a rail head and international airport.

There have been significant improvements to local infrastructure in recent years. The Malawi Roads Authority has upgraded an existing government road from nearby Migowi to the Songwe Hill project site. This 15 -km government road has been upgraded and widened to an all-weather gravel road with reinforced concrete culverts, embankments and bridges installed.

The MREC is expected to be sold to the proposed Puławy project in Poland for separation. The DFS is based on the sale of MREC.The Puławy PFS, completed by PRODEO Consulting (Pty) Ltd and dated 19 March, 2026, indicates a separation cost of approximately US$2.14[2]per kilogram of TREO in MREC to produce the designated product suite at Puławy. The PFS forecasts a separation plant CAPEX for the proposed separation plant (expanded capacity, 100% separation plant option) targeted at approximately US$212 million[3].

Based on the Study-level Assumptions, the following summary of the key inputs and results of the updated Songwe DFS is presented in the tables below:

Summary of Mining and Processing Inputs and Results - Average over First Full Five Years

| Item | Unit | Value | | Mining | | | | Average yearly ore mined | kt | 2,186 | | Average TREO grade mined | % | 1.19 | | Average yearly waste mined | kt | 3,667 | | Average strip ratio (waste:ore) | | 1.68 | | Processing | | | | Average yearly flotation plant feed | kt | 1,000.8 | | Average plant feed TREO grade | % | 1.50 | | Flotation TREO concentrate grade | % | 15.05 | | Average TREO recovery to concentrate | % | 74.10 | | Average yearly flotation concentrate feed to hydrometallurgical plant | kt | 74.06 | | Average NdPr oxide hydrometallurgical recovery to carbonate | % | 85.3 | | Average Ce oxide hydrometallurgical recovery to carbonate | % | 20.9 | | Average yearly TREOs in carbonate product | t | 5,954 | | Average carbonate TREO grade | % | 55 | | Average yearly carbonate production (dry basis) | t | 10,826 |

Summary of Mining and Processing Inputs and Results - Life of Operations (averages)

| Item | Unit | Value | | Life of operations (mining and processing) | Years | 18 | | Mining | | | | Average yearly ore mined | kt | 1,481 | | Average TREO grade mined | % | 1.16 | | Average yearly waste mined | kt | 3,311 | | Average strip ratio (waste:ore) | | 2.2 | | Processing | | | | Average yearly flotation plant feed | kt | 1,000.8 | | Average plant feed TREO grade | % | 1.16 | | Flotation TREO concentrate grade | % | 11.64 | | Average TREO recovery to concentrate | % | 74.10 | | Average yearly flotation concentrate feed to hydrometallurgical plant | kt | 74.06 | | Average NdPr oxide hydrometallurgical recovery to carbonate | % | 85.3 | | Average Ce oxide hydrometallurgical recovery to carbonate | % | 20.9 | | Average yearly TREOs in carbonate product | t | 4,634 | | Average carbonate TREO grade | % | 55.00 | | Average yearly carbonate production (dry basis) | t | 8,425 |

Summary of Mining and Processing Inputs and Results - Life of Operations (totals)

| Item | Unit | Value | | Mining | | | | Total ore mined | kt | 18,147.8 | | Total waste mined | kt | 40,553.9 | | Strip ratio (waste: ore) | | 2.2 | | Processing | | | | Total flotation concentrate feed to hydrometallurgical plant | kt | 1,341.4 | | Total contained TREO in carbonate product | kt | 83.4 | | Total carbonate production (dry basis) | t | 151,644 |

Market and Financial Analysis

A detailed financial model was constructed based on input parameters and the Study-level Assumptions set out in the DFS. Free cash flows were modelled in both real and nominal terms for a range of discount rates and on a debt free basis.

MREC price forecasts and underlying rare earth oxide ("REO") price forecasts were based on the following current market analysis by Adamas Intelligence from their Q4 2025 dated report entitled Rare Earth Market Outlook: Independent Analysis for Inclusion in Mkango Resources' Songwe Hill Feasibility Study (the "Adamas Analysis"). Adamas Intelligence highlights that from 2024 through 2040:

Global demand for NdFeB magnets is expected to increase at a compound annual growth rate ("CAGR") of 8.5%, bolstered by double-digit growth from the electric vehicle and wind power sectors, translating into comparable demand growth for the rare earth elements ("REEs") (i.e., neodymium, praseodymium, dysprosium and terbium) that these magnets contain.

Global production of neodymium, praseodymium, dysprosium and terbium are forecast to collectively increase at a slower CAGR of 7.4 % as the supply side of the market increasingly struggles to keep up with rapidly growing demand.

Based on the Adamas Analysis, from 2024 through 2040, the global rare earth industry is expected to consistently underproduce neodymium, praseodymium, dysprosium and terbium oxides (or oxide equivalents), resulting in the depletion of historically accumulated inventories and, ultimately, shortages of these critical magnet materials if supply is not increased beyond the levels currently anticipated.

Songwe offers strong economic exposure to the rare earth permanent magnet sector, which is the fastest-growing end-use category for rare earths and the one most in need of additional rare earth supplies. Based on the DFS metallurgical recoveries, MREC composition, and the Adamas Analysis, the DFS indicates that the high proportion of valuable magnet-related REEs in the Songwe Hill project's prospective TREO production means that a future mine (with separation) could generate approximately 95% of its rare earth revenues from just 34% of its production volume.

Adamas Intelligence forecasts the following for the basket value (real 2025 US dollars) of Songwe Hill's TREO production:

Base case: US$28.40/kg in 2025 increasing to US$69.60/kg in 2034

Upside scenario: US$28.91/kg in 2025 increasing to US$79.39/kg in 2034

The key revenue drivers for Songwe are neodymium and praseodymium. The base case basket value and MREC price forecasts reflect underlying neodymium oxide (Nd oxide) and praseodymium oxide (Pr oxide) price forecasts.

Based on the preceding assumptions and the other Study-level Assumptions, the discounted cash flow valuation analysis for the base case in the DFS provided the following results:

NPV at 10% (nominal) (7.3% real) of US$339 million as at 30 June 2025

IRR of 24.3% (nominal) (21.3% real)

These are project‑level economic assessment outputs used to evaluate potential economic viability and do not constitute corporate‑level forecasts or guidance. Actual results may differ materially if Study-level Assumptions change.

NPVs of Songwe Hill Project1

| Financial Evaluation | Nominal Discount Rate (%) | Real Discount Rate (%) | Adamas Intelligence Base Case Post-Tax NPV (US$m) | Adamas Intelligence Upside Case Post-Tax NPV (US$m) | | | 8.0 | 5.37 | 461.2 | 644.8 | | Base Case | 10.0 | 7.32 | 339.5 | 488.5 | | | 12.0 | 9.27 | 247.3 | 369.8 | | | | | | | | | | | | | | Nominal Internal Rate of Return | 24.3% | 29.3% | | | | Real Internal Rate of Return | 21.3% | 26.1% | | | | 1As at 30 June2025 | | | | |

Operating Costs

Cash operating costs include the costs of contract mining, milling, flotation, leaching, purification and precipitation to produce a MREC in addition to other costs associated with the operation. The operating costs do not include the cost of separation, which is reflected in the 15% discount applied to the basket value of the REOs in MREC. The estimate of operating expenditure ("OPEX"), and the associated general and administration ("G&A") costs, were calculated to an accuracy of ±10% and were utilised in the economic analysis of the Project.

Reagents and consumables account for 49% of estimated OPEX, with power accounting for an additional 13%. The Company and SENET, together with the Company's other consultants, have identified opportunities to reduce reagent consumption and optimise the flowsheet. This will be investigated further in parallel with front end engineering and design ("FEED") work for Songwe.

Operating Costs - Average over First Full Five Years

| Item | Value (US$/kg TREO) | | Mining | 5.4 | | Beneficiation - Milling and Flotation | 9.1 | | Hydrometallurgical Plant | 5.2 | | G&A and Other | 2.5 | | Total Operating Costs | 22.3 |

Operating Costs - Average over Life of Operations

| Item | Value (US$/kg TREO) | | Mining | 4.4 | | Beneficiation - Milling and Flotation | 11.6 | | Hydrometallurgical Plant | 6.8 | | G&A and Other | 3.2 | | Total Operating Costs | 26.1 |

Capital Expenditure

The estimate of initial capital expenditure costs was calculated to an accuracy of ±10% and was utilised in the economic analysis of the Project. The largest capex component is an integrated processing plant comprising a mill, flotation plant, hydrometallurgical plant, and a sulphuric acid plant with co-generated power capacity. The capex estimate for the integrated processing plant was completed by SENET and covers the design, engineering, procurement, supply/manufacture, construction and pre-commissioning of the proposed new processing facility and associated plant complex infrastructure including a 24.4 MW solar facility. Other major capex items include the cost of a lined tailings storage facility with design provided by Epoch.

Based on the Study-level Assumptions in the DFS, total initial capital expenditure is US$297.8 million, not including a contingency of US$27.8 million.

Capital Cost Summary

| Item | Value (US$ million) | | Total Development Capital | 297.8 | | Contingency | 27.8 | | Total Development Capital Including Contingency | 325.5 | | Sustaining capital and reclamation | 91.5 | | Total Capital Expenditure | 417.0 |

Capital Cost Breakdown

| Description | CAPEX (US$) | Contingency (US$) | Total CAPEX (US$) | | Earthworks | 8,151,015 | 776,287 | 8,927,303 | | Civil Works - Plant | 19,480,113 | 2,060,397 | 21,540,510 | | Civil Works - Infrastructure | 2,068,686 | 197,018 | 2,265,704 | | Infrastructure | 2,918,556 | 138,979 | 3,057,535 | | Structural Steel | 6,345,323 | 423,022 | 6,768,345 | | Plate Work | 2,658,354 | 177,224 | 2,835,578 | | Tankage | 4,332,050 | 322,047 | 4,654,097 | | Machinery and Equipment | 52,477,378 | 2,894,436 | 55,371,814 | | Piping | 5,404,822 | 557,332 | 5,962,154 | | Valves | 1,708,249 | 176,150 | 1,884,399 | | Electricals | 12,266,339 | 676,561 | 12,942,899 | | Instrumentation | 4,887,810 | 504,019 | 5,391,829 | | Transport | 5,354,754 | 600,116 | 5,954,870 | | E&I Installation | 7,513,682 | 715,589 | 8,229,270 | | SMPP Installation | 27,828,259 | 2,650,310 | 30,478,569 | | TOTAL DIRECT FIELD COSTS | 163,395,391 | 12,869,485 | 176,264,875 | | Commissioning Spares | 261,004 | 39,151 | 300,155 | | 2-Year Operational Spares | 1,887,855 | 283,178 | 2,171,033 | | Insurance and Critical Spares | 2,207,202 | 331,080 | 2,567,541 | | Vendor Services | 3,102,209 | 465,331 | 3,567,541 | | First Fills | 644,483 | 96,672 | 741,155 | | TOTAL INDIRECT FIELD COSTS | 8,102,753 | 1,215,413 | 9,318,166 | | TOTAL FIELD COST | 171,498,144 | 14,084,898 | 185,583,042 | | | | | | | Project Management (EPCM) | 24,438,573 | 3,665,786 | 28,104,359 | | Insurances and Guarantees | 3,290,594 | 0 | 3,290,594 | | TOTAL EPCM COSTS | 27,729,167 | 3,665,786 | 31,394,953 | | TOTAL PROJECT COST | 199,227,311 | 17,750,684 | 216,977,994 | | | | | | | Mobile Plant and Equipment | 3,899,263 | 584,889 | 4,484,152 | | Generator Plant | 7,229,334 | 328,606 | 7,557,940 | | PV Solar Plant | 13,545,135 | 1,459,305 | 15,004,440 | | Construction Camp | 3,150,217 | 472,533 | 3,622,749 | | TSF Phase 1 and RWD | 43,814,395 | 4,381,439 | 48,195,834 | | Mining Pre-Production | 14,428,214 | 2,164,232 | 16,592,446 | | Other | 12,460,340 | 623,017 | 13,083,357 | | TOTAL OTHER COST | 98,526,897 | 10,014,022 | 108,540,919 | | | | | | | TOTAL INITIAL COST | 297,754,208 | 27,764,705 | 325,518,913 | | | | | | | TSF Sustaining Capital - Phases 2 to 5 | 60,236,066 | 6,023,507 | 66,258,573 | | Mining Sustaining Capital | 532,531 | 79,880 | 612,411 | | Closure Cost | 16,675,138 | 1,026,618 | 17,701,756 | | Owners Cost | 6,257,078 | 625,708 | 6,882,785 | | TOTAL SUSTAINING COST | 83,699,813 | 7,755,712 | 91,455,525 | | TOTAL COST | 381,454,021 | 35,520,417 | 416,974,438 |

Earlier from Mkango Resources Ltd.

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