Mkango Resources Ltd. (AIM / TSXV: MKA) Intersects Highest Grade To Date 

William Dawes, Chief Executive Officer, commented: “This rounds off what has been a highly successful drill programme with another excellent set of results. Metallurgical optimisation and work relating to the Environmental, Social and Health Impact Assessment is also progressing well and we look forward to updating the market as we progress the feasibility study through 2019, starting with the resource update in the first quarter.”

London / Vancouver: December 3, 2018 – Mkango Resources Ltd. (AIM / TSXV: MKA) (the “Company” or “Mkango”), the rare earths exploration and development company focused on Malawi, is pleased to announce results for the final twenty one drill holes from the recently completed 10,900 metre diamond drill programme at the Songwe Hill Rare Earths Project (“Songwe”). The process to complete an updated Mineral Resource Estimate has commenced. Nineteen of the latest twenty-one drill holes intersected significant zones of rare earths mineralisation grading above 1% total rare earth oxides (“TREO”), including the highest grade intersections of the current phase of drilling in PX112.

Highlights from the results include the following:

Following the resource update and on subsequent publication of the related NI 43-101 technical report, anticipated in first quarter 2019, Talaxis will invest a further £7 million to fund completion of the Feasibility Study for Songwe, which will be the main focus for 2019.

William Dawes, Chief Executive Officer, commented: “This rounds off what has been a highly successful drill programme with another excellent set of results. Metallurgical optimisation and work relating to the Environmental, Social and Health Impact Assessment is also progressing well and we look forward to updating the market as we progress the feasibility study through 2019, starting with the resource update in the first quarter.”

· The drill programme comprised infill drilling to confirm and upgrade the existing Indicated and Inferred Mineral Resource Estimates, step out drilling to test extensions to the mineralisation, and geotechnical drilling.

· Drill holes PX081, PX086, PX087, PX112 and PX125 successfully targeted the higher grade “black carbonatite” zone, located in the north-east, as indicated on the accompanying geological map on the Company’s website. PX054 PX070, PX092 and PX117 were additional infill drill holes.

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· PX078, PX080, PX083, PX089, PX093, PX109, PX114, PX118, PX122, PX123 and PX124 were step-out holes focused on testing north-west extensions of the mineralisation, all of which intersected broad zones of mineralisation.

· The drilling database and geological model has been provided to The MSA Group, which has commenced the process to update the Mineral Resource Estimates.

A schematic geological map illustrating the location of the drill hole collars and estimated drill hole traces is available on the Company’s website (www.mkango.ca). The full set results and breakdown of TREO values are as follows:

http://www.rns-pdf.londonstockexchange.com/rns/1178J_1-2018-11-30.pdf

http://www.rns-pdf.londonstockexchange.com/rns/1178J_2-2018-11-30.pdf

Scientific and technical information contained in this release including sampling, analytical, and test data underlying the information has been approved and verified by Dr. Scott Swinden PGeo of Swinden Geoscience Consultants Ltd, who is a “Qualified Person” in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

Sample preparation and analytical work for the drilling and channel sampling programmes are being provided by Intertek-Genalysis Laboratories (Perth, Australia), employing ICP-MS techniques suitable for rare earth element (REE) analyses and following strict internal QAQC procedures, inserting duplicates, blanks and standards. Internal Laboratory QAQC was also completed to include blanks, standards and duplicates.

About Mkango Resources Limited

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 three exclusive prospecting licenses in Malawi: the Phalombe licence, the Thambani licence and the Chimimbe Hill licence.

The main exploration target in the 80% 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 include the recently completed 10,900 metre drilling programme.

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Under the terms of an agreement with Talaxis, Talaxis will fully fund the Feasibility Study for Songwe by investing £12 million for a 49% interest in the project (via Mkango subsidiary Lancaster Exploration Ltd). Talaxis will also have the option to acquire a further 26% interest by arranging funding for project development including funding the equity component thereof. If Talaxis exercises its option, Mkango will retain a 25% interest, free carried to production. To-date, Talaxis has invested £5 million, which is funding the initial phase of the Feasibility Study, for a 20% interest in the project, with Mkango holding 80%.

By investing a further £2 million, Talaxis will acquire a 49% interest in Maginito Ltd, a new subsidiary of Mkango focused on neodymium alloy powders, magnets and other technologies. This includes the collaboration with Metalysis Ltd announced in September 2017, which is focused on advanced alloys using neodymium or praseodymium with other elements for permanent magnet manufacturing. Permanent magnets are critical materials for most electric vehicles, direct drive wind turbines and many other high growth applications. Neodymium is a key rare earth component at Songwe. To date, Talaxis has invested £1 million for a 24.5% interest in Maginito with Mkango holding 75.5%.

The main exploration targets in Mkango’s remaining two 100% held licences are, in the Thambani licence, uranium, niobium, tantalum and zircon and, in the Chimimbe Hill licence, nickel and cobalt.

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

 


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