Slide 1: Sustainably Sourced Rare Earths for the Green Transition
MINE REFINE RECYCLE Sustainably Sourced Rare Earths for the Green Transition Mkango Resources Ltd. Corporate Presentation October 2023
Slide 2: Investment Case
Investment Case Overview ▪ First mover advantage as a rare earths recycler and manufacturer ▪ Rolling out patented ‘Hydrogen Processing of Magnetic Scrap’ (HPMS) technology ▪ Ability to manufacture rare earth magnets with significantly reduced carbon footprint ▪ Near-term production pipeline o Targe
Slide 3: Business Model
Business Model Overview Upstream Downstream Mine Refine Recycle ▪ HyProMag – focused on Songwe Hill Rare Earths Pulawy Separation short loop magnet Project Project recycling 79.4%1 ▪ Mkango Rare Earths UK Malawi Poland 50%1 focused on long loop magnet recycling ▪ Definitive Feasibility Study ▪ Inter
Slide 4: Rare Earths Explained
Rare Earths Explained The Market ▪ A group of 17 critical elements found in small concentrations across the world ▪ Rare earths are not actually that scarce within the Earth’s surface but are rarely concentrated into mineable ore deposits and are often not economically viable to extract. ▪ The most
Slide 5: Forecast Supply/Demand Gap
Forecast Supply-Demand Gap Forecast Supply/Demand Gap The Market ▪ Market for Magnet Rare Earth Oxides (Nd, Pr, Dy, Tb) anticipated to increase five-fold by 2040 ▪ Annual NdPr Oxide shortages of 19,000 tonnes An alternative to Chinese sector control expected by 2030 and 90,000 tonnes by 2040 ▪ China
Slide 6: MINE
MINE
Slide 7: Songwe Hill Rare Earths Deposit
Songwe Hill Rare Earths Deposit Mine Broad zones of carbonatite-hosted mineralisation ▪ Initial Mkango drilling programmes carried out in 2011 and 2012 o First resource report prepared in compliance with NI 43-101 ▪ Pre-Feasibility Study (PFS) completed in 2015 ▪ 2019 in-fill and step-out drilling p
Slide 8: Songwe Hill Rare Earths Deposit
Songwe Hill Rare Earths Deposit Mine A new source of production Compelling project economics ▪ One of the few rare earths projects globally to have reached FS stage Capital US$311M Cost (US$34M contingency) ▪ ESHIA completed and approved by Malawi Government (in IRR 31.5% compliance with IFC Perform
Slide 9: Malawi - A Favourable Jurisdiction
Malawi - A Favourable Jurisdiction Mine Longstanding, supportive relationships with government and local communities ▪ Premier African rare earths mineral province ▪ Blantyre, a major commercial centre with rail head and international airport, is located two hours from site by car ▪ Beneficiation, h
Slide 10: REFINE
REFINE
Slide 11: Refining
Refining Refine Gdansk Pulawy Separation Plant, Poland (450km) ▪ European rare earths hub underpinned by sustainably sourced, mixed Warsaw rare earth carbonate from Mkango’s project in Malawi (110km) Berlin ▪ Site adjacent to a largescale fertiliser and chemicals plant owned by (800km) Grupa Azoty P
Slide 12: Proposed Site for Separation Plant
Proposed Site for Separation Plant Refine ▪ 8-hectare site located next to Pulawy Fertiliser and Chemicals Plant with access to road, rail, reagents, by-product customer and utilities ▪ Subject to Pulawy DFS, targeting capex of US$120m and opex <US$3/kg TREO in MREC (based on Songwe Hill production
Slide 13: RECYCLE
RECYCLE
Slide 14: Recycle
Recycle Recycle Early Mover Advantage with major competitive upsides ▪ Access to patented HPMS technology licenced from University of Birmingham o More energy efficient and cost effective than recycling via chemical processes o Benefitted from c.US$100m in research and development funding ▪ Ability
Slide 15: Recycle
Recycle Recycle HPMS overcomes recycling challenges ▪ Electronic products are not often designed with end-of-use recycling in mind ▪ Current recycling processes are not suitable for NdFeB magnets ▪ HPMS extracts & demagnetises embedded NdFeB magnets 13
Slide 16: HPMS Process Explained
HPMS Process Explained Recycle 3. 1. 2. Rare earth magnet Rare earth magnet HPMS process demagnetises removed from electronic the rare earth magnet, scrap producing NdFeB powder Rare earth alloy Neodymium Oxide Powder 15
Slide 17: Near-term Production
Near-term Production Recycle HyProMag UK Mkango Rare Earths UK ▪ Developing HPMS demonstration plant at Tyseley ▪ Developing pilot plant for recycling via Energy Park based on pilot plant at UoB chemical route at Tyseley Energy Park o Minimum capacity of 100tpa NdFeB ▪ Mkango project budget of £1.1m
Slide 18: Mkango-CoTec collaboration
Mkango-CoTec collaboration Recycle Mkango-CoTec collaboration enhances underlying value Completed catalysts Future catalysts CoTec FACT FILE • ESG-focused fund led by CoTec invests £1.5m for 10% of USA Feasibility Study Julian Treger and Braam Jonker Maginito funded by CoTec • Owns 20.6% stake in Ma
Slide 19: HyProMag USA Rollout
HyProMag USA Rollout Recycle Scoping Study results ▪ Range of production scenarios incorporating Proposed operating configuration: up to 100% NdFeB feed ‘hub and spoke’ model ▪ Potential revenue of US$50m per year1 ▪ Target EBITDA margin of 35% to 40%2 ▪ CAPEX minimum of US$30m rare earth (NdFeB) ▪
Slide 20: Government Support
Government Support Recycle Mineral Security Partnership (MSP) ▪ HyProMag HPMS technology selected as an MSP project ▪ MSP (est 2022) consists of 14 governments, including UK and USA ▪ MSP aims to ensure adequate supplies of minerals such as rare earths to meet net zero carbon goals ▪ MSP regards res
Slide 21: Government Support
Government Support Recycle Past government grants SusmagPro Project Sustainable recovery, reprocessing and reuse of rare earth €14m project with 19 partners across the supply chain magnets in a European circular economy RaRE Project Establishing an end-to-end supply chain to incorporate recycled £2.
Slide 22: Mkango Developing Chemical Process
Mkango Developing Chemical Process Recycle HyProMag process liberates end- Medium Loop ▪ Primary supply: mixed rare earth carbonate, rare earth oxides of-life magnets and is also able to feed the material back to any Shortest Loop ▪ Recycled supply: NdFeB alloys & sintered magnets, rare earth recycl
Slide 23: Summary
Summary Overview Critical Material Energy Transition Group of Companies ▪ Integrated ‘Mine, Refine, Recycle’ strategy to produce both sustainably-mined and recycled rare earths ▪ Scalable potential across the value chain from mining to production ▪ Ability to manufacture rare earth magnets with sign
Slide 24: APPENDIX
APPENDIX
Slide 25: Capital Structure
Capital Structure Corporate Information Integrated ‘Mine, Refine, Recycle’ strategy to produce both sustainably-mined and recycled rare earths Mkango Resources AIM/TSXV: MKA 5-year share price (AIM) Share Price on 04 Oct 2023 GBX8.65 / C$0.15 Shares Outstanding 253,453,574 Market Cap. on 04 Oct 2023
Slide 26: Mkango Board and Management
Mkango Board and Management Corporate Information >13-year track record in Malawi Technically-led executive Team Longstanding relationships with Malawi government Experienced management team Derek Linfield, Non-Executive Chairman William Dawes, CEO & Co-founder Former Managing Partner of Stikeman El
Slide 27: Songwe Hill Feasibility Study
Mine. Songwe Hill Feasibility Study Flotation piloting completed - March 2021 Hydrometallurgy piloting Feasibility study is completed a culmination of - March 2022 significant mineralogy, Piloting produced bench scale test a carbonate work and piloting grading 55% TREO completed since with NdPr oxid
Slide 28: Songwe Feasibility Study Results
Mine. Songwe Feasibility Study Results Description Capex US$ ▪ NPV US$559m and IRR 31.5% for 100% of Songwe stand-alone project General & Plantwide 142,213,481 with long operating life of 18 years Comminution/flotation 31,080,700 Hydromet 29,982,690 ▪ CAPEX US$311m and OPEX US$25.3/kg TREO for first
Slide 29: Songwe Feasibility Study Results
Mine. Songwe Feasibility Study Results Summary of Mining and Processing Inputs and Results – Average over First Full 5 years1 Item Unit Value Mining Average yearly ore mined kt 2,186 Production of 5,954tpa rare earth oxides in MREC Average TREO grade mined % 1.19 Average yearly waste mined kt 3,667
Slide 30: Mkango in the community
Mine. Mkango in the community Pursuing responsible sourcing of rare earths boNGO Worldwide partnership 1. 2. 1. Before - An unhappy classroom Happy Classrooms project 2. After - A happy classroom after renovation & painting Enhancing 3 local primary schools syllabus on the classroom wall 24 classroo
Slide 31: Disclaimer
Disclaimer ay NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION This pr
Slide 32: Disclaimer
Disclaimer ay By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Mkango's control, including the impact of COVID-19, general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision
Slide 33: Disclaimer
Disclaimer ay verbal presentation, you are deemed to represent, warrant and undertake that; (i) you are an Exempt Person (as defined above); (ii) you have read and agree to comply with the contents of this disclaimer; (iii) you are able to receive this Presentation without contravention of any appli