Mkango Resources Ltd. · TSXV:MKA

Mkango Resources — Investor Presentation (February 2022)

25 slides from Mkango Resources's investor presentation, February 2022

  1. Slide 1: Mkango Resources: Rare Earths from the Warm Heart of Africa

    Mkango Resources Rare Earths from the Warm Heart of Africa February 2022 AIM/TSX-V: MKA An Integrated Rare Earths Company Mine – Refine – Recycle

  2. Slide 2: Disclaimer

    Disclaimer NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, 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 presentation (an

  3. Slide 3: Disclaimer

    Disclaimer Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements or forward-looking information. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “believes”, “budget”, “cont

  4. Slide 4: Mkango Overview

    Mkango Overview Mkango – Dual-listed Canadian company 1 Year Share Price (AIM) (TSXV/AIM:MKA) Share Price (14/01): £0.27 / C$0.46 Shares Outstanding: ~214.6m Integrated ‘Mine, Refine, Recycle’ strategy to Market Cap (14/01): £56.9m / C$98.7m produce both primary and secondary rare earths Developing

  5. Slide 5: Board and Management

    Board and Management 12 year track record in Malawi Technically-led Executive Team Longstanding relationships with Government Experienced Management Team William Dawes - CEO & Co-founder Alexander Lemon - President & Co-founder • BSc Geology, MSc Mineral Exploration • BSc Geological Sciences, MSc Mi

  6. Slide 6: Rare Earths Critical for EV Growth

    Rare Earths Critical for EV Growth Most important rare earths used in an electric vehicle (EV) are neodymium and praseodymium (NdPr) – used in a permanent magnet electric motor >90% of EVs use rare earth permanent magnet motors Each permanent magnet motor uses 0.7kg NdPr Rapid rise in EV sales to fu

  7. Slide 7: Growing Offshore Wind Demand

    Growing Offshore Wind Demand Each 3MW direct drive wind turbine uses around 2 tonnes of NdFeB magnets IEA forecasts offshore wind installations will double in next 5 years and grow fivefold by 2030 Very few advanced stage rare earths projects positioned to meet the demand growth from electric vehicl

  8. Slide 8: Growing Supply - Demand Deficit

    Growing Supply - Demand Deficit Even with substantial production increases in China and the development of 55,000 tpy new REO production capacity outside China, Adamas Intelligence forecasts a 16,000t NdPr oxide deficit in 2030 – equal to the amount of material needed for production of approximately

  9. Slide 9: RE Market Vulnerable to Bottlenecks

    RE Market Vulnerable to Bottlenecks Source: European Commission JRC 2020 Rare earths (LREE & HREE) are highlighted as having the greatest supply risk of raw materials for key technologies

  10. Slide 10: Songwe Hill Rare Earths Deposit

    Songwe Hill Rare Earths Deposit Initial Mkango drilling programmes in 2011 and 2012 first resource report prepared in compliance with NI 43-101 Pre-feasibility Study completed in 2015 2019 in-fill and step-out drilling programme 60% increase in Measured and Indicated Resources Feasibility studies we

  11. Slide 11: Malawi – Favourable Jurisdiction

    Malawi – Favourable Jurisdiction Continuity of senior management since project inception means longstanding relationships with Government and local communities Malawi Vice President visit Supportive Government in emerging mining destination Premier African rare earths mineral province Infrastructure

  12. Slide 12: Excellent Access to Infrastructure

    Excellent Access to Infrastructure Beneficiation, hydromet and acid plants to be located in Malawi Production of purified, high grade, mixed rare earth carbonate product Product export and reagent import via rail and road Major commercial centre, Blantyre, with rail head and international airport ju

  13. Slide 13: Mkango in the Community

    Mkango in the Community boNGO Worldwide partnership Happy Classrooms project Enhancing 3 local primary schools 24 classrooms painted with school syllabus Scholarships and Food Programme After - A happy classroom after renovation Before - An unhappy classroom Secondary education fees paid for the & p

  14. Slide 14: Rationale for Separation Plant

    Rationale for Separation Plant The separation plant would process purified mixed rare earth carbonate produced by the Songwe Hill Rare Earths Project in Malawi generating the following benefits: o Higher value-added products with increased margins o Greater integration and synergies o Increased mark

  15. Slide 15: Pulawy Separation Plant, Poland

    Pulawy Separation Plant, Poland Opportunity to create a European Rare Earths Hub at Pulawy in Poland underpinned by sustainably sourced mixed rare earth carbonate from Mkango’s project in Malawi Site located adjacent to a largescale fertiliser and chemicals plant owned by Grupa Azoty Pulawy EU’s sec

  16. Slide 16: Proposed Site for Separation Plant

    Proposed Site for Separation Plant • Nitric acid, ammonia & outlet for ammonium nitrate by- product • High, medium and low voltage power network, natural gas and process steam network • Water supply system, sewerage, waste water treatment plants • Freight siding – internal railway of 60 km length en

  17. Slide 17: Maginito – Rare Earth Recycling

    Maginito – Rare Earth Recycling Green technology company established to pursue downstream opportunities in the rare earths supply chain In Jan 2020, invested £500 k in HyProMag for 41.6 % interest with option to increase to 49% Patented process licenced from University of Birmingham to extract and d

  18. Slide 18: HyProMag Team and Partnerships

    HyProMag Team and Partnerships HyProMag Limited - new company set up in 2018, with investment from Maginito Ltd, to scale up and commercialise the HPMS technology – hydrogen processing of magnet scrap Mr Nick Mann Mr Rob Arnold Prof Rex Harris David Kennedy Dr John Speight Prof Allan Walton Mr Will

  19. Slide 19: HPMS Overcomes Recycling Challenges

    HPMS Overcomes Recycling Challenges Hard disk drives Rotor from an automotive Mobile phones drive motor Products are not designed with recycling in mind Current recycling processes are not suitable for NdFeB magnets HPMS extracts & demagnetises embedded NdFeB magnets Shredded HDDs Shredded automotiv

  20. Slide 20: HPMS Enables NdFeB Extraction

    HPMS Enables NdFeB Extraction Ni electroplate Soft magnetic Fe casing Hydrided NdFeB powder Voice coil assembly Voice coil assembly after HD extracted from hard drive process Ni electroless plated US patent – No.13/169839 voice coil magnet Source: University of Birmingham / HyProMag 20

  21. Slide 21: Phased Transfer of HyProMag to Tyseley Energy Park, Birmingham

    Phased Transfer of HyProMag to Tyseley Energy Park, Birmingham River Cole University land and new buildings Hypromag and Robotic disassembly line for electronics Waste handling site for Birmingham and motors. Phase 5 Phase 3 Phase 4 Phase 1 Phase 2 Hydrogen production for fuel cell buses Energy Prod

  22. Slide 22: Mkango Summary

    Mkango Summary Integrated ‘Mine, Refine, Recycle’ strategy to produce both primary and secondary rare earths Advanced stage Songwe Hill Rare Earths project in Malawi, with feasibility study well advanced – one of few advanced stage projects globally Opportunity to integrate Songwe with a new rare ea

  23. Slide 23: Contact

    www.mkango.ca @MkangoResources Mkango Resources Ltd +44 (0)207 3722 744 William Dawes (CEO) will@mkango.ca Alex Lemon (President) alex@mkango.ca SP Angel +44 (0)20 3470 0470 Jeff Keating Caroline Rowe Alternative Resource Capital +44 (0)20 7186 9004/5 Alex Wood, Keith Dowsing Blytheweigh +44 (0)20 7

  24. Slide 24: Appendices

    ry ae APPENDICES

  25. Slide 25: Mineral Resource Estimates

    Mineral Resource Estimates Mineral Resource estimates at different cut–off grades1 0.5% TREO cut off grade Base Case 1.0% TREO cut off grade 1.5% TREO cut off grade Million TREO TREO Million TREO TREO Million TREO TREO tonnes % tonnes tonnes % tonnes tonnes % tonnes Resource Categories Measured 13.3

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