Mkango Announces Results of Updated Feasibility Study for the Songwe Hill Rare Earths Project in Malawi and Pre-Feasibility Results for the Proposed Puławy Rare Earth Separation Plant in Poland
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MKANGO RESOURCES LTD.
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MKANGO ANNOUNCES RESULTS OF UPDATED FEASIBILITY STUDY FOR THE SONGWE HILL RARE EARTHS PROJECT IN MALAWI AND PRE-FEASIBILITY RESULTS FOR THE PROPOSED PUŁAWY RARE EARTH SEPARATION PLANT IN POLAND
London / Vancouver: March 19, 2026 – Mkango Resources Ltd. (AIM/TSX-V: MKA) (the “Company” or “Mkango”) is pleased to announce the results of the updated definitive feasibility study (“DFS”) for the Songwe Hill Rare Earths Project (“Songwe” or the “Project”) in Malawi, and results of a pre-feasibility study (“PFS”) for the proposed Puławy Rare Earths Separation Plant (“Puławy”) in Poland.
Alexander Lemon, President of Mkango commented: "We are delighted to announce the results of our updated NI 43-101 DFS for the Songwe Hill Rare Earths project and the PFS results for the Puławy Rare Earth Separation Plant. Incorporating revised rare earth pricing, capital and operating cost assumptions, these studies reflect our commitment to moving these high-quality projects forward. As one of the few companies in the sector to update feasibility studies with current market pricing, Mkango is uniquely positioned as a future supplier of both mined and recycled rare earths — a critical differentiator as global demand for green transition materials accelerates. Songwe in Malawi and Puławy in Poland are landmark projects for the communities and economies they are expected to transform and our mission to deliver sustainable, long-term value for our shareholders."
Based on updated feasibility-study inputs and assumptions regarding rare earth pricing, production volumes, recoveries, capital and operating costs, discount rates, tax regimes, project schedules, and market demand forecasts, as well as the technical, environmental and regulatory parameters set out in the DFS and PFS and as summarised in this release (the “Study-level Assumptions”), selected studylevel outputs from the DFS and PFS include:
- Songwe is among the very few rare earths projects globally to have achieved the DFS stage,
with a Mining Development Agreement, a full Environmental, Social, Health Impact Assessment (“ESHIA”) completed in compliance with IFC Performance Standards. The Global Industry Standard on Tailings Management (2020) (“GISTM”) has been adopted for design and management of the tailings storage facility, as well as Songwe being selected as a strategic project under the European Union Critical Raw Materials Act (“CRMA”).
- Songwe will produce a value-add purified mixed rare earth carbonate (“MREC”)
product, which can be sold into international markets and is suitable for the proposed Puławy separation plant in Poland.
- Neodymium, praseodymium, dysprosium and terbium are critical for the green
transition, used in permanent magnets for electric vehicles, wind turbines and many electronic devices.
- Operating life of 18 years for Songwe, with production averaging 5,954 tonnes per year
total rare earth oxides (“TREO”) for the first full five years of production, including 1,953 tonnes per year of neodymium and praseodymium oxides, and 56 tonnes per year of dysprosium and terbium oxides, in a MREC grading 55% TREO (dry basis).
- Songwe initial capital expenditure (“capex”) of approximately US$325.5 million
(including a US$27.8 million contingency) for development of mine, mill, flotation and hydrometallurgy plants, tailings storage facility, and related project infrastructure in Malawi.
- Puławy initial plant capex of approximately US$212 million (including a US$35.4 million
contingency) for development of a Rare Earth Separation plant and related project infrastructure in Poland.
- Songwe post-tax net present value (“NPV”) of approximately US$339 million, using a
10% nominal discount rate, with an internal rate of return (“IRR”) of 24%, payback period of 3.4 years from start of full production and post-tax life-of-operations nominal cash flow of US$1.55 billion.
- Puławy post-tax NPV of approximately US$779 million, using a 10% nominal discount
rate, with an IRR of 40%, payback period of 2.12 years from start of full production and post-tax life-of-operations nominal cash flow of US$4.95 billion.
- Applying Adamas Intelligence upside forecasts1, Songwe's post-tax NPV increases to
approximately US$489 million with a nominal IRR of 29%, payback period of 2.9 years from start of full production and post-tax life-of-operations nominal cash flow of $2.04 billion while Puławy's expanded 100% neodymium/praseodymium (“NdPr”) separation
case rises to a post-tax NPV of approximately US$892 million and nominal IRR of 43%, payback period of 1.89 years from start of full production and post-tax life-of-operations nominal cash flow of $5.58 billion.
Summary of Selected Financial DFS-level outputs for Songwe Hill – Post-Tax Basis
| Item | Unit | Value |
|---|---|---|
| Life of operations post-tax nominal cash flow | US$ million | 1,554.0 |
| Payback period from project start1 | Years | 5.9 |
| Payback period from start of full production | Years | 3.4 |
| Post-tax NPV at 10% (nominal) discount rate | US$ million | 339.5 |
| Post-tax IRR (nominal) | % | 24.3 |
1 Recent REO price movements have driven Nd & Pr oxide prices to levels broadly aligned with Adamas Intelligence's Q4 2025 base case pricing report for 2028 and upside case for 2030–2031, providing support for the forecast scenario.
1 Assumes project start i.e. start of capital expenditure in July 2027.
2 Figures based on Mkango owning all of the shares of Mkango Rare Earths Limited (“MKAR”). Mkango’s interest in MKAR will be diluted following the proposed business combination with Crown Proptech Acquisitions and related proposed listing on Nasdaq of the MKAR shares to a significant majority interest, subject to the final transaction structure. It is expected that MKAR will be a “controlled company” for Nasdaq listing purposes.
Songwe - Project Overview
Mkango appointed SENET, a DRA Global company, as the principal consultant to complete the original and the updated DFS. SENET is a leading engineering, procurement and construction management (EPCM) minerals processing and project delivery firm located in Africa. Other primary consultants for the updated DFS included the following:
Geology, Mineral Resource, and Geotechnical Investigation: The MSA Group (Pty) Ltd (“MSA”) Mining: Bara Consulting (Pty) Ltd (“Bara”)
Comminution: Grinding Solutions Limited (“Grinding Solutions”), Keramos Process Plant including On-Site and Off-Site Infrastructure: SENET, a DRA Global Company (“SENET”)
Hydrometallurgy: Australian Nuclear Science and Technology Organisation (“ANSTO”)
Flotation: KYSPY Investments (Pty) Ltd (“KYSPYmet”), ALS Metallurgy (Pty) Ltd (“ALS Metallurgy”)
Tailings Storage Facility (TSF): Epoch Resources (Pty) Ltd (“Epoch”)
Environmental, Social and Health Impact Assessment (ESHIA): Digby Wells and Associates (Pty) Ltd (“Digby Wells Environmental”), Kongiwe Environmental (Pty) Ltd Geochemistry: SGS Australia (Pty) Ltd Geotechnical testwork: Western Geotechnical and Laboratory Services Logistics: C. Steinweg Bridge (Pty) Ltd Market Intelligence: Adamas Intelligence Inc (“Adamas”)
The DFS is based on a conventional open pit contract mining operation, feeding mills, flotation and hydrometallurgy plants on site in Malawi to produce a MREC, with an operating life (mining and processing) of 18 years. The Company believes there is potential to increase the mine life given the additional Inferred Resource, and the potential to expand the Mineral Resource. The DFS supports the declaration of a Proven and Probable Mineral Reserve Estimate of 18.1 million tonnes grading 1.16% TREO.
Songwe features broad zones of outcropping rare earth mineralisation on the northern slopes of a steep sided hill. The annual processing capacity is assumed to be approximately 1.0 million tonnes per year of ore producing an average of 5, 954 tonnes of TREO in MREC per year for the first five years and 4, 081 tonnes of TREO in MREC per year in years 6 to 18. The MREC will be cerium depleted. Because cerium is currently considered to have challenging market fundamentals, there is a strong economic rationale to remove as much cerium as possible and, as a result, a large proportion of the cerium will be removed from the MREC during the hydrometallurgical process. Confirmation of the flotation and hydrometallurgical processing flow sheets was underpinned by seven piloting campaigns at ALS Metallurgy and ANSTO.
The final stage of hydrometallurgical piloting at ANSTO produced MREC grading 55% TREO equivalent, enriched in Nd/Pr oxides, which together made up 31% of the rare earth oxide content in the carbonate product (i.e. Nd/Pr oxides / TREO = 31%).
Energy supply of 25 megawatts (“MW”) is expected to be obtained from the Malawi grid network for the Project, which in Malawi is from hydroelectric and solar sources. A 25 MW back up solar farm with battery storage and diesel generators is also expected to be installed.
The MREC is expected to be exported via largely existing infrastructure. The Project is located approximately 95 km by road from Blantyre, the largest commercial centre in Malawi, which is served by a rail head and international airport.
There have been significant improvements to local infrastructure in recent years. The Malawi Roads Authority has upgraded an existing government road from nearby Migowi to the Songwe Hill project site. This 15 -km government road has been upgraded and widened to an all-weather gravel road with reinforced concrete culverts, embankments and bridges installed.
The MREC is expected to be sold to the proposed Puławy project in Poland for separation. The DFS is based on the sale of MREC. The Puławy PFS, completed by PRODEO Consulting (Pty) Ltd and dated 19 March, 2026, indicates a separation cost of approximately US$2.142 per kilogram of TREO in MREC to produce the designated product suite at Puławy. The PFS forecasts a separation plant CAPEX for the proposed separation plant (expanded capacity, 100% separation plant option) targeted at approximately US$212 million3.
Based on the Study-level Assumptions, the following summary of the key inputs and results of the updated Songwe DFS is presented in the tables below:
Summary of Mining and Processing Inputs and Results – Average over First Full Five Years
| Item | Unit | Value |
|---|---|---|
| Mining | ||
| Average yearly ore mined | kt | 2,186 |
| Average TREO grade mined | % | 1.19 |
| Average yearly waste mined | kt | 3,667 |
| Average strip ratio (waste:ore) | 1.68 | |
| Processing | ||
| Average yearly flotation plant feed | kt | 1,000.8 |
| Average plant feed TREO grade | % | 1.50 |
| Flotation TREO concentrate grade | % | 15.05 |
| Average TREO recovery to concentrate | % | 74.10 |
2 The OPEX estimate was developed to the level of accuracy required for an AACE Class 4 estimate (an overall weighted accuracy of ±25%). The OPEX estimate has a base date of 25 February 2026, with no provision for escalation.
3 The CAPEX estimate was developed to the level of accuracy required for an AACE Class 4 estimate (an overall weighted accuracy of ±25%). The CAPEX estimate has a base date of 25 February 2026, with no provision for escalation.
| Average yearly flotation concentrate feed to hydrometallurgical plant | kt | 74.06 |
| Average NdPr oxide hydrometallurgical recovery to carbonate | % | 85.3 |
| Average Ce oxide hydrometallurgical recovery to carbonate | % | 20.9 |
| Average yearly TREOs in carbonate product | t | 5,954 |
| Average carbonate TREO grade | % | 55 |
| Average yearly carbonate production (dry basis) | t | 10,826 |
Summary of Mining and Processing Inputs and Results – Life of Operations (averages)
| Item | Unit | Value |
|---|---|---|
| Life of operations (mining and processing) | Years | 18 |
| Mining | ||
| Average yearly ore mined | kt | 1,481 |
| Average TREO grade mined | % | 1.16 |
| Average yearly waste mined | kt | 3,311 |
| Average strip ratio (waste:ore) | 2.2 | |
| Processing | ||
| Average yearly flotation plant feed | kt | 1,000.8 |
| Average plant feed TREO grade | % | 1.16 |
| Flotation TREO concentrate grade | % | 11.64 |
| Average TREO recovery to concentrate | % | 74.10 |
| Average yearly flotation concentrate feed to hydrometallurgical plant | kt | 74.06 |
| Average NdPr oxide hydrometallurgical recovery to carbonate | % | 85.3 |
| Average Ce oxide hydrometallurgical recovery to carbonate | % | 20.9 |
| Average yearly TREOs in carbonate product | t | 4,634 |
| Average carbonate TREO grade | % | 55.00 |
| Average yearly carbonate production (dry basis) | t | 8,425 |
Summary of Mining and Processing Inputs and Results – Life of Operations (totals)
| Item | Unit | Value |
|---|---|---|
| Mining | ||
| Total ore mined | kt | 18,147.8 |
| Total waste mined | kt | 40,553.9 |
| Strip ratio (waste: ore) | 2.2 | |
| Processing |
| Total flotation concentrate feed to hydrometallurgical plant | kt | 1,341.4 |
| Total contained TREO in carbonate product | kt | 83.4 |
| Total carbonate production (dry basis) | t | 151,644 |
Market and Financial Analysis
A detailed financial model was constructed based on input parameters and the Study-level Assumptions set out in the DFS. Free cash flows were modelled in both real and nominal terms for a range of discount rates and on a debt free basis.
MREC price forecasts and underlying rare earth oxide (“REO”) price forecasts were based on the following current market analysis by Adamas Intelligence from their Q4 2025 dated report entitled Rare Earth Market Outlook: Independent Analysis for Inclusion in Mkango Resources’ Songwe Hill Feasibility Study (the “Adamas Analysis”). Adamas Intelligence highlights that from 2024 through 2040:
- Global demand for NdFeB magnets is expected to increase at a compound annual growth rate (“CAGR”) of 8.5%, bolstered by double-digit growth from the electric vehicle and wind power sectors, translating into comparable demand growth for the rare earth elements (“REEs”) (i.e., neodymium, praseodymium, dysprosium and terbium) that these magnets contain.
- Global production of neodymium, praseodymium, dysprosium and terbium are forecast to collectively increase at a slower CAGR of 7.4 % as the supply side of the market increasingly struggles to keep up with rapidly growing demand.
Based on the Adamas Analysis, from 2024 through 2040, the global rare earth industry is expected to consistently underproduce neodymium, praseodymium, dysprosium and terbium oxides (or oxide equivalents), resulting in the depletion of historically accumulated inventories and, ultimately, shortages of these critical magnet materials if supply is not increased beyond the levels currently anticipated. Songwe offers strong economic exposure to the rare earth permanent magnet sector, which is the fastestgrowing end-use category for rare earths and the one most in need of additional rare earth supplies. Based on the DFS metallurgical recoveries, MREC composition, and the Adamas Analysis, the DFS indicates that the high proportion of valuable magnet-related REEs in the Songwe Hill project’s prospective TREO production means that a future mine (with separation) could generate approximately 95% of its rare earth revenues from just 34% of its production volume.
Adamas Intelligence forecasts the following for the basket value (real 2025 US dollars) of Songwe Hill’s TREO production:
- Base case: US$28.40/kg in 2025 increasing to US$69.60/kg in 2034
- Upside scenario: US$28.91/kg in 2025 increasing to US$79.39/kg in 2034
The key revenue drivers for Songwe are neodymium and praseodymium. The base case basket value and MREC price forecasts reflect underlying neodymium oxide (Nd oxide) and praseodymium oxide (Pr oxide) price forecasts.
Based on the preceding assumptions and the other Study-level Assumptions, the discounted cash flow valuation analysis for the base case in the DFS provided the following results:
- NPV at 10% (nominal) (7.3% real) of US$339 million as at 30 June 2025
- IRR of 24.3% (nominal) (21.3% real)
These are project-level economic assessment outputs used to evaluate potential economic viability and do not constitute corporate-level forecasts or guidance. Actual results may differ materially if Studylevel Assumptions change.
NPVs of Songwe Hill Project1
| Financial Evaluation | Nominal Discount Rate (%) | Real Discount Rate (%) | Adamas Intelligence Base Case Post-Tax NPV (US$m) | Adamas Intelligence Upside Case Post-Tax NPV (US$m) |
|---|---|---|---|---|
| 8.0 | 5.37 | 461.2 | 644.8 | |
| Base Case | 10.0 | 7.32 | 339.5 | 488.5 |
| 12.0 | 9.27 | 247.3 | 369.8 | |
| Nominal Internal Rate of Return | 24.3% | 29.3% | ||
| Real Internal Rate of Return | 21.3% | 26.1% | ||
| 1 As at 30 June 2025 |
Operating Costs
Cash operating costs include the costs of contract mining, milling, flotation, leaching, purification and precipitation to produce a MREC in addition to other costs associated with the operation. The operating costs do not include the cost of separation, which is reflected in the 15% discount applied to the basket value of the REOs in MREC. The estimate of operating expenditure (“OPEX”), and the associated general and administration (“G&A”) costs, were calculated to an accuracy of ±10% and were utilised in the economic analysis of the Project.
Reagents and consumables account for 49% of estimated OPEX, with power accounting for an additional 13%. The Company and SENET, together with the Company’s other consultants, have identified opportunities to reduce reagent consumption and optimise the flowsheet. This will be investigated further in parallel with front end engineering and design (“FEED”) work for Songwe.
Operating Costs – Average over First Full Five Years
| Item | Value (US$/kg TREO) |
|---|---|
| Mining | 5.4 |
| Beneficiation – Milling and Flotation | 9.1 |
| Hydrometallurgical Plant | 5.2 |
| G&A and Other | 2.5 |
| Total Operating Costs | 22.3 |
Operating Costs – Average over Life of Operations
| Item | Value (US$/kg TREO) |
|---|---|
| Mining | 4.4 |
| Beneficiation – Milling and Flotation | 11.6 |
| Hydrometallurgical Plant | 6.8 |
| G&A and Other | 3.2 |
| Total Operating Costs | 26.1 |
Capital Expenditure
The estimate of initial capital expenditure costs was calculated to an accuracy of ±10% and was utilised in the economic analysis of the Project. The largest capex component is an integrated processing plant comprising a mill, flotation plant, hydrometallurgical plant, and a sulphuric acid plant with co-generated power capacity. The capex estimate for the integrated processing plant was completed by SENET and covers the design, engineering, procurement, supply/manufacture, construction and pre-commissioning of the proposed new processing facility and associated plant complex infrastructure including a 24.4 MW solar facility. Other major capex items include the cost of a lined tailings storage facility with design provided by Epoch.
Based on the Study-level Assumptions in the DFS, total initial capital expenditure is US$297.8 million, not including a contingency of US$27.8 million.
Capital Cost Summary
| Item | Value (US$ million) |
|---|---|
| Total Development Capital | 297.8 |
| Contingency | 27.8 |
| Total Development Capital Including Contingency | 325.5 |
| Sustaining capital and reclamation | 91.5 |
| Total Capital Expenditure | 417.0 |
Capital Cost Breakdown
| Description | CAPEX (US$) | Contingency (US$) | Total CAPEX (US$) |
|---|---|---|---|
| Earthworks | 8,151,015 | 776,287 | 8,927,303 |
| Civil Works – Plant | 19,480,113 | 2,060,397 | 21,540,510 |
| Civil Works – Infrastructure | 2,068,686 | 197,018 | 2,265,704 |
| Infrastructure | 2,918,556 | 138,979 | 3,057,535 |
| Structural Steel | 6,345,323 | 423,022 | 6,768,345 |
| Plate Work | 2,658,354 | 177,224 | 2,835,578 |
| Tankage | 4,332,050 | 322,047 | 4,654,097 |
| Machinery and Equipment | 52,477,378 | 2,894,436 | 55,371,814 |
| Piping | 5,404,822 | 557,332 | 5,962,154 |
| Valves | 1,708,249 | 176,150 | 1,884,399 |
| Electricals | 12,266,339 | 676,561 | 12,942,899 |
| Instrumentation | 4,887,810 | 504,019 | 5,391,829 |
| Transport | 5,354,754 | 600,116 | 5,954,870 |
| E&I Installation | 7,513,682 | 715,589 | 8,229,270 |
| SMPP Installation | 27,828,259 | 2,650,310 | 30,478,569 |
| TOTAL DIRECT FIELD COSTS | 163,395,391 | 12,869,485 | 176,264,875 |
| Commissioning Spares | 261,004 | 39,151 | 300,155 |
| 2-Year Operational Spares | 1,887,855 | 283,178 | 2,171,033 |
| Insurance and Critical Spares | 2,207,202 | 331,080 | 2,567,541 |
| Vendor Services | 3,102,209 | 465,331 | 3,567,541 |
| First Fills | 644,483 | 96,672 | 741,155 |
| TOTAL INDIRECT FIELD COSTS | 8,102,753 | 1,215,413 | 9,318,166 |
| TOTAL FIELD COST | 171,498,144 | 14,084,898 | 185,583,042 |
| Project Management (EPCM) | 24,438,573 | 3,665,786 | 28,104,359 |
| Insurances and Guarantees | 3,290,594 | 0 | 3,290,594 |
| TOTAL EPCM COSTS | 27,729,167 | 3,665,786 | 31,394,953 |
| TOTAL PROJECT COST | 199,227,311 | 17,750,684 | 216,977,994 |
| Mobile Plant and Equipment | 3,899,263 | 584,889 | 4,484,152 |
| Generator Plant | 7,229,334 | 328,606 | 7,557,940 |
| PV Solar Plant | 13,545,135 | 1,459,305 | 15,004,440 |
| Construction Camp | 3,150,217 | 472,533 | 3,622,749 |
| TSF Phase 1 and RWD | 43,814,395 | 4,381,439 | 48,195,834 |
| Mining Pre-Production | 14,428,214 | 2,164,232 | 16,592,446 |
| Other | 12,460,340 | 623,017 | 13,083,357 |
| TOTAL OTHER COST | 98,526,897 | 10,014,022 | 108,540,919 |
| TOTAL INITIAL COST | 297,754,208 | 27,764,705 | 325,518,913 |
| TSF Sustaining Capital – Phases 2 to 5 | 60,236,066 | 6,023,507 | 66,258,573 |
| Mining Sustaining Capital | 532,531 | 79,880 | 612,411 |
| Closure Cost | 16,675,138 | 1,026,618 | 17,701,756 |
| Owners Cost | 6,257,078 | 625,708 | 6,882,785 |
| TOTAL SUSTAINING COST | 83,699,813 | 7,755,712 | 91,455,525 |
| TOTAL COST | 381,454,021 | 35,520,417 | 416,974,438 |
The following assumptions were made in the preparation of this estimate:
- The LOO is 18 years.
- There will be a smooth transition between the various project implementation phases.
Topography, Geotechnical and Materials:
- A 2 m deep soil improvement was assumed below all the earthworks platforms.
- All the required fill material was assumed to be available within a 2 km radius, from either necessary excavations or designated borrow pits.
- No piling allowance has been included in the estimate.
- For the intermediate and hard rock excavations, 20 % and 15 % of the bulk excavations volume was allowed for, respectively.
- Allowance was made for grading of the PV plants to a maximum gradient of 14 %. This was done to allow for the axial movement of the panels.
- The process water pond and events pond were considered to have double HDPE liner systems while the raw water pond was considered to have a single HDPE liner system. All the relevant geotextiles and installation of the systems were included.
- The ROM wall was included as a mechanically stabilised earth wall with a gabion face. It was assumed that the gabion rock for that wall face would be locally available, either from site or from commercial sources.
- Excavated material will be non-acid generating.
- No additional topographical studies were made available; therefore, the structural design was not modified.
- The structural design assumptions were not modified after reviewing the geotechnical report that became available after the initial assumptions had been made.
Mineral Resource and Mineral Reserve Estimates
The DFS is based on the updated Mineral Resource Estimate with an effective date of 30 June 2025, which restates the previous (2019) block model using revised pit optimisation and cut-off assumptions. No new drilling has been completed since 2018, and the geological block model remains unchanged. Inclusive Mineral Resources are presented below in order to be consistent with those reported by Mkango under the NI 43-101 standards.
The Mineral Resources are reported from within an optimised pit shell and above a 0.55% TREO grade, as summarised below.
The Mineral Resource Estimate has an effective date of 30 June 2025.
| Category | Tonnage (Mt) | TREO % | TREO (‘000 Tonnes) |
|---|---|---|---|
| Measured | 13.6 | 1.27 | 173 |
| Indicated | 24.4 | 1.08 | 264 |
| Measured & Indicated | 38.1 | 1.15 | 437 |
Inferred 55.9 1.05 589
Notes:
1. Mineral Resources have been classified in accordance with the CIM Definition Standards for Mineral Resources and Mineral Reserves (2014), as incorporated by reference in NI 43-101.
2. All tabulated data has been rounded, and as a result minor computational errors may occur.
3. Mineral Resources, which are not Mineral Reserves, have no demonstrated economic viability.
4. The Mineral Resource estimate is reported on a 100% ownership basis.
5. Mineral Resources are reported from within an optimised pit shell.
6. For the purposes of assessing reasonable prospects for economic extraction and cut-off grade, metallurgical recoveries were applied to individual rare earth oxides. The average total rare earth oxide metallurgical recovery is 39.6%.
7. Mineral Resources include the portion converted to Mineral Reserves.
8. Mineral Resources are reported on an in-situ basis without applying modifying factors.
9. A mean density of 2.73 t/m³ was applied for Measured, 2.67 t/m³ for Indicated and 2.77 t/m³ for Inferred Resources.
TREO = La2O3, CeO2, Pr6O11, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb4O7, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, and Y2O3 The following sensitivity analyses are based on the updated Mineral Resource statement with an effective date of 30 June 2025. The sensitivity of the Mineral Resource at a variety of cut-off grades for the combined Measured and Indicated categories is presented in the following table.
| Cut-off TREO % | Tonnage (Mt) | TREO % | TREO (‘000 Tonnes) |
|---|---|---|---|
| 0.45 | 40.2 | 1.11 | 448 |
| 0.55 | 38.1 | 1.15 | 437 |
| 0.65 | 35.2 | 1.19 | 420 |
| 0.75 | 31.7 | 1.25 | 396 |
| 0.85 | 27.8 | 1.31 | 365 |
| 1.00 | 21.9 | 1.41 | 310 |
The Inferred Mineral Resources are presented at a variety of cut-off grades in the table below.
| Cut-off TREO % | Tonnage (Mt) | TREO % | TREO (‘000 Tonnes) |
|---|---|---|---|
| 0.45 | 59.7 | 1.02 | 608 |
| 0.55 | 55.9 | 1.05 | 589 |
| 0.65 | 49.9 | 1.11 | 553 |
| 0.75 | 43.5 | 1.17 | 508 |
| 0.85 | 37.0 | 1.23 | 456 |
1.00 28.1 1.33 373
The DFS supports the declaration of a Mineral Reserve Estimate for the Project. The results of the DFS have shown that the mining inventory included in the study, which is derived from only Measured and Indicated Mineral Resources, can be viably mined based on the techno-economic assumptions in the DFS. Mineral Reserves resulting from Measured Mineral Resources have been considered as Proven Mineral Reserves while those generated from Indicated Mineral Resources are categorised as Probable Mineral Reserves.
The TREO grades presented below are supported by individual rare earth oxide grades (including Nd₂O₃, Pr₆O₁₁, La₂O₃, CeO₂ and other REEs), which are included in the table for each reserve category.
| Category | Tonnage (Mt) | TREO % | CeO2 (ppm) | Dy2O3 (ppm) | Er2O3 (ppm) | Eu2O3 (ppm) | Gd2O3 (ppm) | Ho2O3 (ppm) | La2O3 (ppm) | Lu2O3 (ppm) | Nd2O3 (ppm) | Pr6O11 (ppm) | Sm2O3 (ppm) | Tb4O7 (ppm) | Tm2O3 (ppm) | Y2O3 (ppm) | Yb2O3 (ppm) |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 41 | 2,027 | 294 | |||||||||||||||
| Proven Mineral Reserves | 8.16 | 1.28 | 5,779 | 108 | 80 | 190 | 17 | 3,069 | 4 | 606 | 23 | 5 | 493 | 30 | |||
| 34 | 1,642 | 243 | |||||||||||||||
| Probable Mineral Reserves | 9.988 | 1.07 | 4,852 | 89 | 66 | 159 | 14 | 2,633 | 3 | 498 | 19 | 4 | 410 | 25 | |||
| 37 | 1,815 | 266 | |||||||||||||||
| Total Ore Reserves | 18.147 | 1.16 | 5,269 | 98 | 72 | 173 | 16 | 2,829 | 4 | 547 | 21 | 5 | 448 | 27 |
Notes:
1. Totals might not add up due to rounding.
2. Mineral Reserves are stated as tonnages and grades delivered to the processing plant and are inclusive of dilution and mining losses expected during mining.
3. Mkango owns 100 % of the Songwe Hill Project.
4. The Mineral Reserve is stated at a cut-off grade of 0.6% TREO
5. Ore tonnages are stated at an average in-situ density of 2.76 t/m3.
The table below shows a summary of the total Mineral Reserves.
Mineral Reserve Estimate as at 30 April 2025
| Category | Tonnage (Mt) | TREO % | TREO (t) |
|---|---|---|---|
| Proven Mineral Reserves | 8.160 | 1.28 | 104,183 |
| Probable Mineral Reserves | 9.988 | 1.07 | 106,801 |
| Total Ore Reserves | 18.147 | 1.16 | 210,984 |
Notes:
1. Totals might not add due to rounding.
2. Mineral Reserves are stated as tonnages and grades delivered to the processing plant and are inclusive of dilution and mining losses expected during mining.
3. The Mineral Reserve estimate is reported on a 100% ownership basis.
4. The Mineral Reserve is stated at a cut-off grade of 0.6% TREO.
5. Ore tonnages are stated at an average in-situ density of 2.76 t/m³.
6. A weighted average process recovery to carbonate of 40% was used to calculate revenue from Mineral Reserves.