HYPROMAG USA PROJECT UPDATE FOR ITS RARE EARTH MAGNET RECYCLING AND MANUFACTURING PLANTS IN THE UNITED STATES

Fort Worth, Texas: September 15, 2025 – HyProMag USA, LLC (“HyProMag USA” or the “Company”) is pleased to provide an update on its engineering, procurement and construction management (“EPCM”) Detailed Design phase (“Detailed Design”).

U.S.-based PegasusTSI Inc. (“PegasusTSI”) and Canada-based BBA USA Inc. (“BBA”) have been engaged to complete the EPCM services for HyProMag USA’s advanced stage rare earth magnet recycling and manufacturing project located in Dallas-Fort Worth, Texas (the “Texas Hub”).

The EPCM Detailed Design will inform the notice to proceed (the “NTP”). HyProMag USA has the potential to supply the U.S. market with a sustainable, long term, domestic supply of neodymium iron boron (“NdFeB”) permanent magnets enabling the creation of secure, low carbon and traceable rare-earth supply chains.

The key items are:

• Detailed Design is now 25 per cent complete:
  • Technology and design specifications for the ongoing commissioning of the Tyseley facility in the UK and construction of the Pforzheim facility in Germany, and associated plant design and operating criteria are being successfully utilised by HyProMag USA to inform the U.S. operation’s Detailed Design
  • Advanced Grain Boundary Diffusion (“GBD”) techniques have been included in the Detailed Design. GBD provides HyProMag USA greater operational flexibility to make grades of magnets with higher coercivity (>20 kOe), which are capable of operating at higher temperatures
• UK Piloting increased operation:
  • HyProMag Group has invested in and tripled the throughput capacity of the University of Birmingham HPMS pilot facility. The pilot facility has completed over 50 HPMS runs over the last six months
  • From this data HyProMag USA is targeting further improvements in the engineering design criteria, recoveries and magnet making capability, as well as providing magnet samples for further customer testing
• UK Commissioning:
  • Circa 900 kilograms of recycled NdFeB alloy powder has been produced at Tyseley Energy Park. The operation is currently progressing towards production of finished sintered NdFeB magnets[i]
• Capital estimate:
  • During the period from the end of the Feasibility Study in November 2024 and the commencement of the EPCM, PegasusTSI and BBA continued to refine to a Class 2 Association for the Advancement of Cost Engineering (“AACE”) estimate to be confirmed at the NTP
• DFW Site selection:
  • Four short-listed ‘hub’ site options located in Dallas-Fort Worth, Texas have been identified. Approximate size of the hub site is between 125,000 sq. ft and 140,000 sq. ft with commercial discussions to secure a 25-year lease

• Permitting:
  • Baseline permitting for the Dallas-Fort Worth, Texas ‘hub’ facility to commence in Q3 2025, once the site is confirmed, through Weston Solutions
• People:
  • Owners team established and located in the United States. The owners team consist of senior project engineers, electrical engineers and technical marketing magnets specialists working together with the combined resources of the HyProMag Group
• Supply and off take:
  • Feedstock supply collaboration with global electronics recycling company, Intelligent Lifecycle Solutions (“ILS”)[ii]
  • ILS have commenced stock piling of feedstock for the Texas hub[iii]
  • Engagement with further potential feed supply providers and product off takers continues concurrently with the Detailed Design to meet project financing requirements
• Expansion to three hubs:
  • Appointed lead engineers Pegasus TSI and BBA to perform Scoping Study for HyProMag USA to expand its footprint in Nevada and South Carolina from one hub to three hubs in the United States[iv]
• Long-loop Recycling:
  • Appointed engineering group Worley to conduct a Concept Study for further expansion of the U.S. operations through the addition of a complementary “Long-loop” process. The Concept Study will be completed concurrently and support the ongoing studies at Mkango’s long-loop pilot plant in the UK
• Funding:
  • HyProMag USA is continuing its ongoing discussions with high-ranking officials in the United States Government, commercial lenders, equity providers and off takers regarding financial support and project acceleration

Julian Treger, CoTec CEO commented: “We are very pleased with the progress of the EPCM Detailed Design. The learnings from HyProMag’s facilities in the UK and Germany continue to inform PegasusTSI’s and BBA’s work and support an accelerated project schedule targeting first magnets in H1 2027. In parallel with the EPCM Detailed Design, the company is focused on securing funding from the U.S. Government, commercial lenders, equity providers and off takers. With the commencement of the long-loop Concept Study, the Company is in a unique position as it provides both short and long-loop rare earth permanent magnet recycling. HyProMag USA’s proposed U.S. facility fully meets the requirements of the U.S. Defence Production Act (“DPA”) Title III and will provide a secure, long-term, commercial-scale magnet recycling and production facilities in the United States.”

Will Dawes, Mkango CEO commented: “HyProMag USA is very well positioned to provide a new domestic sustainable source of rare earth magnets for the United States, and it is fantastic to see the project progress towards near term development at pace. This creates a strong platform for further expansion, complementing the ongoing HyProMag developments in the UK and Germany.”

The Feasibility Study includes the Texas Hub and two pre-processing facilities located in South Carolina and Nevada respectively. In March 2025, HyProMag USA announced the expansion of the detailed engineering phase to include three HPMS vessels^[v] and that it was initiating concept studies for further expansion and complementary “long- loop” recycling^[vi]. The Texas Hub’s annual production is expected to be 750 metric tons per annum of recycled sintered NdFeB magnets and 807 metric tons per annum of associated NdFeB co-products (total payable capacity – 1,557 metric tons NdFeB within five years of commissioning) over a 40-year operating life. It is expected the production facility will provide significant optionality to supply the U.S. market with additional NdFeB alloy powder while assisting in revitalising the U.S. magnet sector with the creation of 90-100 skilled magnet manufacturing jobs.

In March 2025, HyProMag USA announced the results of an independent, ISO-Compliant product carbon footprint study which confirmed an exceptionally low CO₂ footprint of 2.35 kg CO₂ eq. per kg of NdFeB cut sintered block product.^[vii]

In August 2025, HyProMag USA announced ILS had formally commenced its stockpiling of feedstock[viii] initiative pursuant to the recently announced feedstock supply and pre-processing site share agreement between HyProMag USA and ILS.^[ix]

Ownership

HyProMag USA is owned 50:50 by CoTec and HyProMag Limited. HyProMag Limited is 100 per cent owned by Maginito Limited (“Maginito”), which is owned on a 79.4/20.6 per cent basis by Mkango and CoTec.

About HyProMag USA

HyProMag USA LLC is owned 50:50 by CoTec Holdings Corp. (TSXV: CTH; OTCQB: 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 Resources Ltd. (AIM/TSX-V: MKA) and CoTec.

For more information, please visit www.hypromagusa.com

For further information, please contact:

John Singleton – Director – john.singleton@hypromagusa.com

Will Dawes – Director – will.dawes@hypromagusa.com

Eugene Hercun – Company Communications – +1 604 537 2413

[i] https://mkango.ca/news/mkango-releases-q2-2025-results/

[ii] https://cotec.ca/news/hypromag-usa-enters-into-agreement-with-global-electronics-recycler-intelligent-lifecycle-solutions-for-feedstock-supply-and-pre-processing-site-share-in-south-carolina-and-nevada

[iii] https://cotec.ca/news/hypromag-usa-commences-stockpiling-of-feedstock

[iv] https://hypromagusa.com/hypromag-usa-to-commission-scoping-study-to-triple-capacity/

[v] https://cotec.ca/news/hypromag-usa-expands-detailed-engineering-phase-to-include-three-hpms-vessels-and-initiates-concept-studies-for-further-expansion-and-complementary-long-loop-recycling

[vi] Conventional leach, extraction purification and precipitation process

[vii] https://cotec.ca/news/hypromag-usas-iso-compliant-product-carbon-footprint-study-confirms-exceptionally-low-co2-footprint-of-235-kg-co2-eq-per-kg-of-ndfeb-cut-sintered-block

[viii] https://www.cotec.ca/news/hypromag-usa-commences-stockpiling-of-feedstock

[ix] https://www.cotec.ca/news/hypromag-usa-enters-into-agreement-with-global-electronics-recycler-intelligent-lifecycle-solutions-for-feedstock-supply-and-pre-processing-site-share-in-south-carolina-and-nevada