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HYPROMAG USA TO COMMISSION SCOPING STUDY TO TRIPLE CAPACITY

HYPROMAG USA TO COMMISSION SCOPING STUDY TO TRIPLE CAPACITY
IN THE UNITED STATES EXPANDING INTO NEVADA AND SOUTH CAROLINA

Fort Worth, Texas – September 04, 2025 – HyProMag USA, LLC (“HyProMag USA” or the “Company”) is pleased to announce that US-based PegasusTSI Inc. (“PegasusTSI”) and Canada-based BBA USA Inc. (“BBA”) have been engaged to complete the HyProMag USA expansion concept study (“Concept Study” or “Project”) for new Nevada and South Carolina rare earth permanent magnet recycling plants in collaboration with global electronics recycling company, Intelligent Lifecycle Solutions, LLC (“ILS”). The expansions envisaged by the Concept Study would be completed concurrently with the phased expansion of the first HyProMag USA facility located in Fort Worth, Texas[i] (the “Texas Hub”) to optimize the “hub and spoke” configuration for rare earth magnet production and production of recycled NdFeB alloy powder.

The Concept Study will define the conceptual design and investment requirements for new HyProMag facilities in South Carolina, and Nevada. It will evaluate site suitability, logistics, scope of developments, infrastructure and environmental assessment, while confirming additional Hydrogen Processing of Magnet Scrap (“HPMS“[ii]) processing capacity to support up to four additional magnet production lines. The Project will provide an AACE[iii] Class V CAPEX estimate and will incorporate the current advanced design of the HyProMag USA facility located in Fort Worth, Texas.

Julian Treger, CEO of CoTec, commented: “We are very excited to begin formally expanding and optimizing the footprint of HyProMag USA to Nevada and South Carolina collaborating with our partner, ILS. HyProMag USA’s NPV for the Texas hub is circa $600 million based on recent expansion plans, and the economics of expanding the hubs are linear which provides a potential 3x increase in Company value with additional hubs.

Furthermore, given the recent strong increase in the price of rare earths and their associated magnets, the valuation of the Company continues to strengthen as detailed engineering, supply of feedstock and offtake discussions continue at pace. With the recent significant steps by the U.S. Government to support domestic supply and reshoring of rare earth magnet production, HyProMag USA is well positioned to support U.S. demand growth with commercial operations targeted in H1 2027. HyProMag USA continues to develop strategic partnership discussions with all stakeholders to accelerate financing, commissioning and product verification timelines.”

Will Dawes, CEO of Mkango, commented: “Momentum continues to gather for HyProMag USA with detailed engineering progressing well, and we are very excited to be pushing forward with the Concept Study for the expansion Project. This Project can unlock significant additional value for the group and help catalyze further development of a robust domestic ecosystem for rare earth magnet recycling and manufacturing in the United States. We look forward to continuing to work with the Project team as we move to the next stage of development.”

HyProMag USA Feasibility Study

The Feasibility Study includes the Texas Hub, and two pre-processing facilities located in South Carolina and Nevada respectively[iv]. In March 2025, HyProMag USA announced the expansion of the detailed engineering phase to include three HPMS vesselsi and that it was initiating concept studies for further expansion and complementary “Long-Loop” recycling[v]. 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 revitalizing 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.[vi]

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

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://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

[ii] Patented Hydrogen Processing of Magnet Scrap (HPMS) technology developed at University of Birmingham, which liberates NdFeB magnets from end-of-life scrap streams in a cost effective and energy efficient way

[iii] Association for the Advancement of Cost Engineering (AACE)

[iv] https://cotec.ca/news/hypromag-usa-feasibility-study-demonstrates-robust-economics-and-the-opportunity-to-develop-a-major-new-domestic-source-of-recycled-rare-earths-magnets-for-the-united-states

[v] Conventional leach, extraction purification and precipitation process

[vi] 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-bloc

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

[viii] 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

More from HyProMag

About HyProMag USA

The arrival of the Inserma machines supports ongoing business development efforts, including feedstock sourcing and customer engagement, and provides a clear bridge to subsequent operational milestones as HyProMag USA advances its U.S. rare-earth magnet recycling strategy. The U.S. deployment builds on HyProMag’s demonstrated[iii] commercial operations in the United Kingdom, where the Company’s patented Hydrogen Processing of Magnet Scrap (“HPMS”) technology is already operating at industrial scale.

Following completion of commissioning, HyProMag USA expects to host small, on-site operational milestone events at the South Carolina and Nevada locations to demonstrate the equipment in operation and engage regional stakeholders. Additional details regarding timing and participation will be announced at a later date.

HyProMag USA’s first facility (the “Texas Hub” or the “Project”) is completing detailed engineering and feasibility work following execution of the site lease[iv] at the Ironhead Commerce Center, and is working towards the Company’s intention to pursue a U.S. public listing. Together these developments reflect accelerating momentum as HyProMag USA advances toward commercial operations and a scaled manufacturing footprint across the U.S.

Ownership

HyProMag USA LLC is owned 50:50 by CoTec Holdings Corp. (TSX-V: CTH; OTCQB: CTHCF) (“CoTec”) and HyProMag Limited. HyProMag Limited is 100% owned by Maginito Limited which is owned on a 79.4%/20.6% 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

Forward-looking information cautionary statement

Statements in this press release regarding the Company and its investments which are not historical facts are “forward-looking statements,” which involve risks and uncertainties, including statements relating to the Texas Hub, the Feasibility Study, potential future employment and production, the entering of the lease agreement for the Texas Facility, the revised Project valuation, revised capex estimates, revised production numbers, and the benefits to the Company, which may be implied from such statements.

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 the Company, including but not limited to: resource and reserve risks; 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; and social, transport, or geopolitical disruptions.

The Company 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.