Star Metro - Mkango Magnetic Materials Limited - Hypromag USA Deploys Mobile Inserma System

CALGARY, AB / ACCESS Newswire / October 19, 2026 / Mkango Magnetic Materials Ltd. (AIM:MKA)(TSX-V:MKA) ("Mkango") is pleased to announce that HyProMag USA LLC ("HyProMag USA") has announced the deployment of its third Inserma Anoia S.L. ("Inserma") hard disk drive ("HDD") separation system as a mobile processing unit, expanding HyProMag USA's processing and customer engagement capabilities across the United States. The deployment further strengthens HyProMag USA's partnership^[1] with Intelligent Lifecycle Solutions ("ILS") and supports the expansion of a scalable nationwide platform for the recovery and recycling of rare earth magnets from end-of-life HDDs.

Feedstock inventories currently under contract and in storage, together with active procurement programs, continue to strengthen the feedstock platform and are expected to support initial commissioning and ramp-up activities for Phase 1 at the planned Dallas-Fort Worth facility (the "Texas Hub") in 2028. HyProMag USA has also completed commercial sales of recovered printed circuit board ("PCB") material to downstream smelter partners, generating revenue that supports the acquisition and retention of magnet-bearing feedstock inventory.

Julian Treger, Chief Executive Officer of CoTec Holdings Corp. ("CoTec"), commented: "The deployment of our third Inserma system as a mobile processing unit represents an important step in the development of the Dallas-Fort Worth project. Together with continued progress in feedstock sourcing and commercial PCB recovery, it strengthens our operating platform and expands our ability to engage directly with customers across multiple end markets. These milestones provide increasing confidence in our ability to support commissioning activities and establish a long-term domestic supply of recycled rare earth materials."

Graham Davy, Managing Director of ILS, commented: "The focus of the ILS team has been on demonstrating that HDDs can be efficiently processed into separate, marketable material streams. We have continued to build feedstock inventories, completed commercial sales of recovered PCB materials to smelter partners for HyProMag USA and expanded our capabilities through the deployment of a mobile Inserma system. The mobile unit allows us to work directly with customers at their facilities, supporting trial programs, demonstrating material recovery performance and creating opportunities to secure additional feedstock supply."

Key Highlights

• Processing capability expanded: HyProMag USA's third Inserma HDD separation system has been deployed as a mobile processing unit to support customer qualification programs, secure on-site recovery campaigns and future feedstock growth opportunities across the United States.
• Commissioning readiness advanced: Feedstock inventories currently under contract and in storage, together with active procurement programs, are expected to support initial commissioning and ramp-up of Phase 1 activities at the Texas Hub in 2028.
• PCB revenue supports magnet acquisition: Commercial sales of recovered PCB material to smelter partners have generated revenue within the HDD processing flow sheet, partly offsetting the cost of acquiring and retaining magnet-bearing feedstock for future rare earth recycling operations.
• Feedstock channels diversified: Sourcing activities continue to expand across industrial, healthcare, government and IT asset disposition sectors.
• Secure processing platform: R2v3-certified operations, ISO-certified management systems and documented chain-of-custody procedures support secure handling of data-bearing equipment.
• Data center market focus: Mobile processing capability enables on-site recovery programs within hyperscale data centers and secure IT asset disposition environments.
• Inserma testing: A next generation Inserma system designed specifically for the high-capacity HDDs used in hyperscale data centers, including helium filled units, is currently being tested, with early results indicating processing times of under three seconds per drive and successful processing of modern high-capacity data center formats.
• Partnership network expanding: Relationships across the data center, electronics recycling and rare earth magnet value chain continue to support platform growth.

Expanding Feedstock Access

To support continued growth in feedstock volumes, HyProMag USA has deployed its third Inserma HDD separation system as a mobile processing unit to complement existing operations in South Carolina and Nevada. Unlike the fixed installations currently operating through the ILS partnership, the system has been configured for mobile deployment and is intended to support customer trials, feedstock development programs and on-site processing campaigns across the United States.

Feedstock inventories currently under contract and in storage, together with active procurement programs, continue to strengthen the feedstock platform and are expected to support initial commissioning and ramp-up activities at the Texas Hub. Feedstock sourcing activities continue to expand beyond HDDs into industrial, healthcare, government and IT asset disposition sectors, increasing confidence in the scalability of HyProMag USA's feedstock platform and supporting future supply requirements for the Texas Hub.

Commercial PCB Recovery

ILS has completed commercial sales for HyProMag USA of recovered PCB material to downstream smelter partners. The sales validate an additional revenue stream within the HDD processing flow sheet and show that value can be recovered from secondary material streams. Magnet-bearing materials are being retained as feedstock inventory for future rare earth recycling operations. Revenue from recovered PCB material partly offsets the cost of acquiring magnet-bearing feedstock, improving the economics of building the inventory required to support Texas Hub operations.

Secure Recovery and Chain of Custody

ILS operates under internationally recognized recycling and management standards, including R2v3 certification and ISO-certified management systems, supporting responsible recycling practices, operational controls and continuous improvement initiatives. The recovery process is supported by documented chain-of-custody procedures designed to provide traceability from collection through processing and final disposition. These controls support the requirements of data center operators, IT asset disposition providers, enterprise customers and government organizations seeking secure and auditable management of end-of-life electronic equipment.

Building Strategic Partnerships

HyProMag USA continues to expand relationships across the electronics recycling, data infrastructure and rare earth magnet value chain. Working alongside data center operators, IT asset disposition providers, recyclers, technology companies and downstream processing partners, HyProMag USA is developing an integrated platform for the collection, recovery and recycling of magnet-bearing materials. HyProMag USA is evaluating additional feedstock pathways, including industrial and transportation-related material streams, with pilot programs and commercial opportunities under review.

About ILS

Intelligent Lifecycle Solutions ("ILS") provides secure recovery, processing and recycling services for end-of-life electronic equipment. Through its operating facilities in South Carolina and Nevada, ILS supports the recovery of valuable materials from electronic waste streams while maintaining robust data security and chain-of-custody protocols.

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 neodymium iron boron ("NdFeB") magnets, essential components for AI infrastructure, defense systems, robotics, electric vehicles, and advanced electronics. Leveraging the revolutionary Hydrogen Processing of Magnet Scrap ("HPMS") technology, developed over 15 years with over US$100 million in R&D investment, HyProMag USA 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.

Ownership

HyProMag USA LLC is owned 50:50 by CoTec Holdings Corp. (TSXV:CTH)(OTCQX: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 Magnetic Materials Limited (AIM:MKA)(TSX-V:MKA) and CoTec.

About Mkango Magnetic Materials Ltd.

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 per cent by Mkango and 20.6 per cent by CoTec Holdings Corp. ("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 per cent interest in HyProMag Limited and a 90 per cent direct and indirect interest (assuming conversion of Maginito's convertible loan) 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 Hydrogen Processing of Magnet Scrap ("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% 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% interest in the entity holding that licence. The Songwe and Pulawy projects and HyProMag GmbH have been selected as Strategic Projects under the European Union Critical Raw Materials Act. 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") to list the Songwe Hill and Pulawy rare earths projects on NASDAQ via a SPAC merger (the "Proposed Business Combination") under the name Mkango Rare Earths Limited.

For more information, please visit www.mkango.ca

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. 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 news release include, without limitation: in relation to HyProMag USA, statements relating to the deployment and use of the mobile Inserma system, feedstock inventories and procurement, PCB sales, the testing of the next generation Inserma system, the timing of commissioning and ramp-up at the Dallas-Fort Worth facility and the benefits to Mkango and HyProMag USA which may be implied from such statements.

Forward-looking statements in this news release also include, without limitation, statements under "About Mkango Magnetic Materials Ltd." 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; and social, transport, or geopolitical disruptions; availability of suitable feedstock, the successful installation, commissioning and operation of equipment, equipment performance and reliability, maintenance requirements, the ability to secure commercial customer offtake and feedstock supply arrangements, and the successful scale-up and integration of HyProMag USA's planned recycling operations.

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 Ltd

William Dawes
Chief Executive Officer
[email protected]

Alexander Lemon
President
[email protected]

Canada: +1 403 444 5979
www.mkango.ca
@MkangoResources

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This press release does not constitute an offer to sell or a solicitation of an offer to buy any equity or other securities of Mkango in the United States. The securities of Mkango will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold within the United States to, or for the account or benefit of, U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.

^[1] https://hypromagusa.com/hypromag-usa-and-intelligent-lifecycle-solutions-commission-inserma-rare-earth-magnet-pre-processing-system-in-south-carolina/

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SOURCE: Mkango Magnetic Materials Limited

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D.Fraser--SMC