Slide 1: Mkango Resources: Rare Earths from The Warm Heart of Africa
Mkango Resources Rare Earths from The Warm Heart of Africa October 2020 AIM/TSX-V: MKA
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation”) has been prepared by Mkango Resources Ltd (the “Company” or “Mkango”) solely for its use at informational meetings relating to it or is being delivered for information purposes only to a limited number of persons. By attending the meeting where this
Slide 3: Disclaimer
Disclaimer Certain disclosures contained in or incorporated by reference into this presentation constitute forward-looking statements or forward-looking information. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements or forward-
Slide 4: 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
Slide 5: Growing Offshore Wind Demand
Growing Offshore Wind Demand Each 3MW direct drive wind turbine uses around 1.7 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 vehi
Slide 6: 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
Slide 7: 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
Slide 8: Mkango Overview
Mkango Overview Songwe Hill – advanced stage rare earths project in Malawi, ongoing feasibility study funded by strategic partner, Talaxis Ltd 49% 51% AIM / TSXV: MKA 75.5% 24.5% Malawi – stable jurisdiction with major infrastructure developments Lancaster Exploration Ltd Maginito Ltd ESG - sustaina
Slide 9: Corporate Snapshot
Corporate Snapshot 3 Year Share Price (AIM) Listed in Canada (TSX-V) Jan 2011 16 Dual-listed in UK (AIM) June 2016 14 Cash position of US$6.4m June 2020 12 10 Capital Structure (TSX-V / AIM) 8 Share Price (16/10): £0.093 / C$0.18 6 Shares Outstanding: ~133M 4 Warrants: 12.0M1 @ £0.066 1.2M2 @ £0.066
Slide 10: Experienced International Board
Experienced International Board 12 year track record in Malawi Technically-led Executive team Longstanding relationships with Government William Dawes - CEO & Co-founder Alexander Lemon - President & Co-founder • BSc Geology, MSc Mineral Exploration • BSc Geological Sciences, MSc Mineral Exploration
Slide 11: Strategic Partner – Global Footprint
Strategic Partner – Global Footprint Noble Group subsidiary with extensive trading and distribution network throughout Asia and RoW Focused on resources critical to green technology supply chains Talaxis invested £12 million in Songwe for a 49% interest Talaxis may increase to 75% of Songwe by finan
Slide 12: 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 Study unde
Slide 13: 2019 Resource Upgrade
2019 Resource Upgrade Plan Views Pre Feasibility Study Ongoing Feasibility Study 2012 2019 Feasibility study underway, underpinned by 60% larger 2019 Measured and Indicated Resource Estimate 13
Slide 14: Malawi – Favourable Jurisdiction
Malawi – Favourable Jurisdiction Continuity of senior management since project inception means longstanding relationships with Government and local communities Minister Hon Gaffar visit Supportive Government in emerging mining destination Premier African rare earths mineral province UK High Commissi
Slide 15: 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
Slide 16: Sustainably Sourced Rare Earths
Sustainably Sourced Rare Earths A high value purified mixed rare earth carbonate product will be produced at Songwe in Malawi – this will feed a separation plant located outside Malawi with a number of options for separation being evaluated The feasibility study envisages largely renewable power sou
Slide 17: 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 Secondary education fees paid for the top 6 students from 3 local primary schools – 24 Before - An unhappy classro
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Slide 19: Maginito – Green Technology Incubator
Maginito – Green Technology Incubator Cleantech growth company established by Mkango and Talaxis to pursue downstream technology opportunities in the rare earths supply chain Initial investment in HyProMag completed in January 2020, focused on short loop NdFeB magnet recycling using hydrogen based t
Slide 20: Maginito Asset Portfolio and Strategy
Maginito Asset Portfolio and Strategy 25% interest in HyProMag with £1m option to increase to 49% - use of option proceeds to provide matched funding for additional grants First right to supply primary sourced rare earths to 75.5% 24.5% HyProMag for blending with recycled NdFeB powder Offtake and ma
Slide 21: HyProMag Investment
HyProMag Investment Maginito has invested £300,000 for an initial 25% interest in HyProMag in addition to a £200,000 convertible loan facility. Option to increase interest to 49%. HyProMag has licenced a patented process from University of Birmingham for extracting and demagnetising NdFeB alloy powd
Slide 22: HPMS in Action
HPMS in Action HPMS – HDD Voice Coil Magnet Assembly Source: University of Birmingham / HyProMag 22
Slide 23: RaRE Project
RaRE Project RaRE will for the first time establish an end to end supply chain to incorporate recycled rare earth magnets into electric vehicles - recycled magnets will be built into an ancillary electric motor to ultimately support the development of a commercial ancillary motor suite. In addition
Slide 24: HyProMag Strategy
HyProMag Strategy Establishing the manufacture of rare earth magnetic materials at the Tyseley Energy Park, Birmingham UK. Evaluating four types of product for potential commercial exploitation: ₋ Hydrogen Decrepitated (HD) demagnetised powders suitable for magnet producers ₋ Alloy ingot remelted fr
Slide 25: Mkango - Positioned for a Green Future
Mkango - Positioned for a Green Future Strategically positioned along the supply chain One of the very few advanced stage rare earth projects outside of China Strategic partnership with Talaxis, a subsidiary of Noble Group Feasibility study being funded by Talaxis, with pathway to production Investm
Slide 26: 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 Alex Wood Blytheweigh +44 (0)20 7138 3204 Tim Blyt
Slide 27: Mineral Resources
Mineral Resources
Slide 28: 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