LSE Release

Mkango Resources Ltd. (AIM/TSX-V: MKA) (the "Company" or "Mkango") is pleased to announce the appointment of Bacchus Capital Advisers Limited (“Bacchus Capital”) as strategic and financial adviser, encompassing mergers and acquisitions, takeover defence, strategic and other financial advice.

Bacchus Capital is a London-based independent investment and merchant banking boutique. The Bacchus Capital team members have been involved in building some of the world’s most successful mining companies from the earliest stages and have played a key role in many of the metals and mining industry’s most significant transactions in recent decades.

William Dawes, Chief Executive of Mkango stated: “We are very pleased to appoint Bacchus Capital as strategic and financial adviser. This comes at a critical time in Mkango’s development, against the backdrop of transformational changes in the rare earths sector, and we look forward to working with Bacchus Capital to best position the company for new opportunities and to increase value for shareholders.”

Richard Allan, Managing Director and COO of Bacchus Capital stated: “We are excited to begin working with Mkango at a time when the wider market is starting to appreciate the material structural supply deficit facing critical materials, such as rare earths. Mkango will play an important role in supplying the increasing demand for the rare earths required to support a global shift towards a sustainable economy, specifically in light of the increased demand for electric vehicles and wind power.”

Under the terms of the advisory agreement, Bacchus Capital will receive a fee of US$30,000 and, subject to TSX Venture Exchange approval, 325,000 shares on 31 January 2021, and a further 625,000 shares on 18 December 2021 should its engagement continue with the Company until such date.

About Mkango

Mkango's primary business is exploration for rare earth elements and associated minerals in the Republic of Malawi, a country whose hospitable people have earned it a reputation as “the warm heart of Africa”. The Company holds interests in four exclusive prospecting licenses in Malawi: the Phalombe licence, the Thambani licence, the Chimimbe Hill licence and the Mchinji licence.

The main exploration target in the 51% held Phalombe licence is the Songwe Hill rare earths deposit. This features carbonatite-hosted rare earth mineralisation and was subject to previous exploration in the late 1980s. Mkango completed an updated Pre-Feasibility Study for the project in November 2015 and a Feasibility Study is currently underway, the initial phases of which included a 10,900 metre drilling programme and an updated mineral resource estimate, announced in February 2019. In March 2019, the Company announced receipt of a £7 million (C$12.3 million) investment from Talaxis to fund completion of the Feasibility Study. Following completion of the Feasibility Study, Talaxis has an option to acquire a further 26% interest in Songwe by arranging financing for project development including funding the equity component thereof.

The main exploration targets in Mkango’s remaining three 100% held licences are, in the Thambani licence, uranium, niobium, tantalum and zircon, in the Chimimbe Hill licence, nickel and cobalt, and in the Mchinji licence, rutile, nickel, cobalt, base metals and graphite. Mkango recently completed an extensive exploration program following a new rutile discovery within the Mchinji licence.

Mkango also holds a 75.5% interest in Maginito (www.maginito.com ) with the balance owned by Talaxis. Maginito was established by Mkango and Talaxis to pursue downstream green technology opportunities in the rare earths supply chain, encompassing neodymium (NdFeB) magnet recycling as well as innovative rare earth alloy, magnet and separation technologies.

Maginito’s strategy is underpinned by offtake rights for sustainably sourced primary and secondary raw materials, and geared to accelerating growth in the electric vehicle sector, wind power generation and other industries driven by decarbonization of the economy.

For more information, please visit www.mkango.ca.