HYPROMAG USA ADVANCES TEXAS RE MAGNET FACILITY
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MKANGO MAGNETIC MATERIALS LIMITED
550 Burrard Street
Suite 2900
Vancouver
BC V6C 0A3
Canada
HYPROMAG USA ADVANCES NORTH TEXAS RARE EARTH MAGNET FACILITY WITH
FIRST MAJOR EQUIPMENT DELIVERY
Northlake facility targets approximately 1,526 metric tonnes of annual production and 100 direct jobs
Milestone follows secured power capacity and positive expansion study as HyProMag USA advances domestic rare earth magnet manufacturing
LONDON / VANCOUVER: 9 November 2026 – Mkango Magnetic Materials Limited (AIM/TSX-V: MKA) (“Mkango”) is pleased to announce that HyProMag USA LLC (“HyProMag USA”) has announced the delivery of the first major process equipment to its rare earth magnet recycling and manufacturing facility in Northlake, Texas (the “Project”), marking an important milestone as the Project advances towards financing, commissioning and operations.
The arrival of the equipment highlights the continuing progress being made in detailed engineering and procurement in developing a secure, sustainable and domestic source of recycled rare earth permanent magnets in the United States. In December 2025, HyProMag USA secured a long-term lease agreement for its Northlake, Texas Facility, located at Ironhead Commerce Center, Building 1, Dallas-Fort Worth, Denton County, Texas. The Project site is strategically located near critical infrastructure, the BNSF intermodal rail link and Alliance Airport.
The Northlake, Texas Facility is expected to become one of the first commercial-scale integrated rare earth magnet recycling and magnet manufacturing operations in the United States. Project development continues to advance, with electrical power capacity secured through Oncor Electric Delivery Company LLC, permitting progressing with Weston Solutions, Inc., and contractor selection underway. HyProMag USA is targeting initial magnet cutting and finishing operations in the first half of 2027, followed by commissioning of Phase 1 integrated recycling and manufacturing operations in mid-2028.
The milestone follows the successful completion of the recently announced Expansion Pre-Feasibility Study (“Expansion PFS”), which confirmed the potential to significantly increase HyProMag USA's production capacity while maintaining robust project economics. The Expansion PFS highlighted the opportunity to establish one of the largest rare earth magnet recycling and manufacturing platforms in the United States, targeting approximately 4,192 metric tonnes per annum of NdFeB magnet production and approximately 6,000 metric tonnes of total salable materials annually by 2034.
The Northlake, Texas Facility is expected to create approximately 100 direct jobs and play an important role in supporting the development of a secure, resilient and sustainable domestic rare earth magnet supply chain. By recovering valuable magnetic materials from end-of-life products and manufacturing scrap, HyProMag USA aims to transform waste streams into a domestic resource for new magnet production, reducing reliance on imported rare earth materials and supporting U.S. manufacturing.
Julian Treger, CEO of CoTec, commented: “The delivery of the first process equipment to the Northlake, Texas facility marks an important milestone for HyProMag USA as we advance toward commercial operations. The Project is expected to create around 100 direct jobs and support workforce training and skills development, helping build the skilled professionals required for advanced manufacturing in the United States. By establishing a domestic source of recycled rare earth magnets, HyProMag USA will strengthen U.S. manufacturing capacity and contribute to a more secure and resilient rare earth magnet supply chain.”
About HyProMag USA
HyProMag USA is developing advanced rare earth magnet recycling and manufacturing operations to establish a secure domestic U.S. supply chain for NdFeB magnets, essential components for AI infrastructure, medical systems, robotics, electric vehicles, and advanced electronics. Leveraging the revolutionary HPMS technology, developed over 15 years with over US$100 million in R&D investment, HyProMag USA is designed to deliver faster magnet-to-magnet short-loop recycling that uses 88% less energy and reduces carbon emissions by 85% compared to conventional methods. HPMS accepts a wide range of magnet-bearing feedstocks – including end-of-life EV motors, data-center and industrial equipment, consumer electronics, and manufacturing scrap – enabling recovery of magnet-grade material without chemical processing.
Ownership
HyProMag USA LLC is owned 50:50 by CoTec Holdings Corp. (TSXV: CTH; OTCQX: CTHCF) (“CoTec”) and HyProMag Limited. HyProMag Limited is 100 per cent owned by Maginito Limited which is owned on a 79.4/20.6 per cent basis by Mkango and CoTec.
About Mkango Magnetic Materials Limited
Mkango is listed on the AIM and the TSX-V Stock Exchanges. Mkango's corporate strategy is to become a market leader in the production of recycled rare earth magnets, alloys and oxides, through its interest in Maginito Limited ("Maginito"), which is owned 79.4 percent by Mkango and 20.6 per cent by CoTec, and the Remloy business acquired by its wholly owned German subsidiary, to develop new sustainable sources of neodymium, praseodymium, dysprosium and terbium to supply accelerating demand from electric vehicles, wind turbines and other clean energy technologies.
Maginito holds a 100 percent interest in HyProMag Limited and a 90 percent indirect interest in HyProMag GmbH, focused on short loop rare earth magnet recycling and manufacturing in the UK and Germany, respectively, and a 100 per cent interest in Mkango Rare Earths UK Ltd ("Mkango UK"), focused on long loop rare earth magnet recycling in the UK via a chemical processing route.
Maginito and CoTec are also expanding HPMS recycling technology into the United States via the 50/50 owned HyProMag USA joint venture company.
Remloy has developed a plant in Bitterfeld, Germany, which recycles end-of-life rare earth magnets via a melting process (medium loop rare earth magnet recycling) to produce NdFeB alloy powders for the bonded and hot deformed magnet markets, complementary to HyProMag's short loop recycling process, to produce sintered magnets, and to Mkango UK's long loop recycling process, to produce mixed rare earth carbonates and oxides.
Mkango currently owns 100 percent of the advanced stage Songwe Hill rare earths project in Malawi and the proposed Pulawy rare earths separation plant in Poland. On grant of the large-scale mining licence the Government of Malawi may elect to take a free 10 percent interest in the entity holding that licence. Both the Songwe and Pulawy projects have been selected as Strategic Projects under the European Union Critical Raw Materials Act, as has HyProMag GmbH. Songwe has also received Development Funding from the U.S. International Development Finance Corporation (DFC), the U.S. Government's development finance institution, securing US$4.6 million in reimbursable funding for Front End Engineering and Design. Mkango Rare Earths Limited (“MKAR”) has signed a Business Combination Agreement with Crown PropTech Acquisitions (“CPTK”), pursuant to which MKAR, which will hold the Songwe Hill and Pulawy projects, is expected to become listed on Nasdaq (the “Proposed Business Combination”), subject to the satisfaction or waiver of closing conditions.
For more information, please visit www.mkangomagneticmaterials.com.
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable Canadian securities legislation and other applicable securities laws (together, "forward-looking statements") with respect to Mkango and its subsidiaries and HyProMag USA. Generally, forward-looking statements can be identified by the use of words such as "plans", "expects" or "is expected to", "scheduled", "estimates", "intends", "anticipates", "believes", "targets", or variations of such words and phrases, or statements that certain actions, events or results "can", "may", "could", "would", "should", "might" or "will", occur or be achieved, or the negative connotations thereof.
Forward-looking statements in this press release include: statements relating to the results of the Expansion PFS; the targeted salable magnet capacity of approximately 4,192 metric tonnes per year by 2034; the targeted alloy powder and total salable material of approximately 6,000 metric tonnes by 2034; the targeted production of approximately 1,526 metric tonnes per year of recycled NdFeB magnets and magnet products at the Northlake, Texas Facility; the targeted commencement of initial magnet cutting and finishing operations in the first half of 2027; the targeted commissioning of Phase 1 of the Northlake, Texas Facility in mid-2028; the expectation that the Northlake, Texas Facility will become one of the first commercial-scale integrated rare earth magnet recycling and magnet manufacturing operations in the United States; expected job creation; and the benefits to Mkango and HyProMag USA which may be implied from such statements.
Forward-looking statements are based on assumptions that HyProMag USA and Mkango consider reasonable, including the assumptions underlying the Expansion PFS, the availability of financing on acceptable terms, the receipt of required permits and approvals, and the availability of feedstock and equipment on the terms assumed in the Expansion PFS; and, in respect of the statements under “About Mkango Magnetic Materials Limited”, the satisfaction or waiver of the conditions to the Proposed Business Combination, the availability of financing for Songwe Hill and Pulawy, and the receipt of required permits and approvals.
Forward-looking statements in this news release also include, without limitation, statements under “About Mkango Magnetic Materials Limited” concerning the Proposed Business Combination, the development of Songwe Hill and Pulawy, the expansion of rare earth magnet recycling operations in the United Kingdom, Germany and the United States, the Development Funding awarded by the DFC, and the status of Songwe Hill, Pulawy, and HyProMag GmbH as Strategic Projects under the European Union Critical Raw Materials Act.
Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements due to known and unknown risks and uncertainties affecting Mkango and HyProMag USA, including but not limited to: availability of financing; environmental risks and costs; permitting and regulatory risks; labor costs and shortages; uncertain supply and price fluctuations in materials; increases in energy costs; labor disputes and work stoppages; equipment leasing and availability; heavy equipment demand and availability; contractor and subcontractor performance; worksite safety issues; project delays and cost overruns; extreme weather events; social, transport, or geopolitical disruptions; availability of suitable feedstock; equipment performance and reliability; the ability to secure customer offtake and feedstock supply arrangements; changes in rare earth and magnet prices; the accuracy of the estimates and assumptions underlying the Expansion PFS; the risk that the Proposed Business Combination is not completed; risks relating to the development of Songwe Hill and Pulawy and to the terms of the DFC funding; and the other risk factors described in Mkango’s management’s discussion and analysis filed on SEDAR+ at www.sedarplus.ca.
Mkango assumes no obligation to update forward-looking statements in this press release except as required by law. Readers should not place undue reliance on the forward-looking statements and information contained in this news release.
For further information on Mkango, please contact:
Mkango Magnetic Materials Limited
William Dawes
Chief Executive Officer
Alexander Lemon
President
alex@mkango.ca
Canada: +1 403 444 5979
www.mkangomagneticmaterials.com
@MkangoResources
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The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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