| Dear Investors, I'm pleased to update you on the dynamic partnership between Mkango Resources Ltd., Maginito Limited, and CoTec Holdings Corp, as just one of CoTec's exciting investments. This collaboration is propelling forward the advancement of downstream green technology opportunities within the rare earths supply chain, with a particular focus on NdFeB magnet recycling and innovative rare earth alloy, magnet, and separation technologies. Since the announcement of CoTec's £3.5 million investment into Maginito in 2023, our collaboration has been gaining momentum. This investment not only secured CoTec a 20.6% stake in Maginito, but also paved the way for strategic collaboration in commercializing downstream rare earth technologies, particularly in the United States. A new US subsidiary, jointly owned by Maginito and CoTec, HyProMag USA LLC. is now established and as part of this initiative, bankable feasibility studies and site selections are now a third completed with the first plant location focused on Fort Worth, Texas. Concurrently, we are accelerating discussions with potential customers and recycling partners to support the roll out of the business and are excited by the early feedback we have received. HyProMag's revolutionary Hydrogen Processing of Magnet Scrap (“HPMS”) technology is central to rare earth permanent magnet recycling. Developed through significant R&D expenditure at the University of Birmingham, HPMS offers major competitive advantages in the sector. This includes the ability to sustainably manufacture rare earth alloys and permanent magnets securely in the United States with a significantly reduced carbon footprint compared to conventional extractive mining-to-production processing. In parallel and supporting the US Feasibility Study, HyProMag UK continues to operate its pilot plant at the University of Birmingham validating design assumptions and mass balances. HyProMag UK has produced over 3,000 recycled permanent magnets to date for various industry partners and potential clients. This continued piloting is supporting HyProMag's short loop recycling facilities in construction in the UK at Tyseley Energy Park (“Tyseley”) and in Germany. To provide further optionality at our future facilities our partner Mkango UK is piloting a chemical process for recycled HPMS NdFeB powder and magnet swarf at Tyseley. These initiatives require an estimated 88% less energy compared to traditional mining-to-production processes. This initiative, funded in part by UK Research and Innovation, underscores our dedication to driving innovation and sustainability in rare earth processing. We value one-on-one conversations and if you would like to learn more about this partnership and/or technology, please do not hesitate to reply to this email and our team will happily get back to you in a timely manner. Best regards, Julian Treger,
CEO |