Star Metro - HyProMag USA Advances U.S. Hub-and-Spoke Strategy with Arrival of Inserma HDD Pre-Processing Machines at South Carolina and Nevada Sites

DALLAS AND FORT WORTH, TX / ACCESS Newswire / February 5, 2026 / HyProMag USA LLC ("HyProMag USA" or the "Company"), a U.S. rare earth magnet recycling and manufacturing company, today announced the arrival of Inserma Hard Disk Drive ("HDD") recycling machines at Intelligent Lifecycle Solutions LLC ("ILS") facilities in South Carolina and Nevada, advancing the Company's rollout of rare earth magnet recycling capabilities in the United States.

The equipment delivery builds on HyProMag USA's recent expansion concept studiesⁱ and pre-feasibility planning for facilities in South Carolina and Nevada, as well as the Company's partnershipⁱⁱ with ILS to secure and prepare magnet-bearing feedstocks. The machines are now on site and will enter commissioning activities in line with site readiness and operational planning.

Julian Treger, CEO of CoTec, commented: "The delivered Inserma machines represent continued execution against HyProMag USA's scalable U.S. strategy. By advancing pre-processing capability in South Carolina and Nevada, we're strengthening the foundation for a domestic recycling platform and supporting momentum across our broader development program."

Graham Davy, CEO of ILS, commented: "ILS is pleased to receive the Inserma HDD material separation machines at its South Carolina and Nevada locations. Installation and commissioning activities are planned for the next few weeks. When commissioned, the machinery will assist ILS' efforts to source and process rare earth magnet bearing feedstock in partnership with HyProMag USA. ILS is excited to be at the forefront of recycling initiatives to help deliver a secure U.S. domestic supply chain for NdFeB magnets."

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 demonstratedⁱⁱⁱ 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.

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, defense systems, robotics, electric vehicles, and advanced electronics. Leveraging the revolutionary HPMS technology, developed over 15 years by the Magnetic Materials Group at the University of Birmingham with more than $100 million in R&D investment, the company delivers 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. Selected by the U.S. Department of State as a Minerals Security Partnership project, HyProMag USA is targeting 10% of U.S. domestic magnet supply within five years, ensuring supply chain security and resilience for technologies critical to national defense and economic competitiveness.

Ownership

HyProMag USA LLC is owned 50:50 by CoTec Holdings Corp. (TSXV: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 - [email protected]
Will Dawes - Director - [email protected]
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.

View the original press release on ACCESS Newswire

F.Leblanc--SMC