FORT WORTH, TX / ACCESS Newswire / September 4, 2025 / HyProMag USA, LLC ("HyProMag USA" or the "Company") is pleased to announce that US-based PegasusTSI Inc. ("PegasusTSI") and Canada-based BBA USA Inc. ("BBA") have been engaged to complete the HyProMag USA expansion concept study ("Concept Study" or "Project") for new Nevada and South Carolina rare earth permanent magnet recycling plants in collaboration with global electronics recycling company, Intelligent Lifecycle Solutions, LLC ("ILS"). The expansions envisaged by the Concept Study would be completed concurrently with the phased expansion of the first HyProMag USA facility located in Fort Worth, Texasⁱ (the "Texas Hub") to optimize the "hub and spoke" configuration for rare earth magnet production and production of recycled NdFeB alloy powder.

The Concept Study will define the conceptual design and investment requirements for new HyProMag facilities in South Carolina, and Nevada. It will evaluate site suitability, logistics, scope of developments, infrastructure and environmental assessment, while confirming additional Hydrogen Processing of Magnet Scrap ("HPMS"ⁱⁱ) processing capacity to support up to four additional magnet production lines. The Project will provide an AACEⁱⁱⁱ Class V CAPEX estimate and will incorporate the current advanced design of the HyProMag USA facility located in Fort Worth, Texas.

Julian Treger, CEO of CoTec, commented: "We are very excited to begin formally expanding and optimizing the footprint of HyProMag USA to Nevada and South Carolina collaborating with our partner, ILS. HyProMag USA's NPV for the Texas hub is circa $600 million based on recent expansion plans, and the economics of expanding the hubs are linear which provides a potential 3x increase in Company value with additional hubs.

Furthermore, given the recent strong increase in the price of rare earths and their associated magnets, the valuation of the Company continues to strengthen as detailed engineering, supply of feedstock and offtake discussions continue at pace. With the recent significant steps by the U.S. Government to support domestic supply and reshoring of rare earth magnet production, HyProMag USA is well positioned to support U.S. demand growth with commercial operations targeted in H1 2027. HyProMag USA continues to develop strategic partnership discussions with all stakeholders to accelerate financing, commissioning and product verification timelines."

Will Dawes, CEO of Mkango, commented: "Momentum continues to gather for HyProMag USA with detailed engineering progressing well, and we are very excited to be pushing forward with the Concept Study for the expansion Project. This Project can unlock significant additional value for the group and help catalyze further development of a robust domestic ecosystem for rare earth magnet recycling and manufacturing in the United States. We look forward to continuing to work with the Project team as we move to the next stage of development."

HyProMag USA Feasibility Study
The Feasibility Study includes the Texas Hub, and two pre-processing facilities located in South Carolina and Nevada respectively^iv. In March 2025, HyProMag USA announced the expansion of the detailed engineering phase to include three HPMS vesselsⁱ and that it was initiating concept studies for further expansion and complementary "Long-Loop" recycling^v. The Texas Hub's annual production is expected to be 750 metric tons per annum of recycled sintered NdFeB magnets and 807 metric tons per annum of associated NdFeB co-products (total payable capacity - 1,557 metric tons NdFeB within five years of commissioning) over a 40-year operating life. It is expected the production facility will provide significant optionality to supply the U.S. market with additional NdFeB alloy powder while assisting in revitalizing the U.S. magnet sector with the creation of 90-100 skilled magnet manufacturing jobs.

In March 2025, HyProMag USA announced the results of an independent ISO-Compliant product carbon footprint study which confirmed an exceptionally low CO₂ footprint of 2.35 kg CO₂ eq. per kg of NdFeB cut sintered block product.^vi

In August 2025, HyProMag USA announced ILS had formally commenced its stockpiling of feedstock^vii initiative pursuant to the recently announced feedstock supply and pre-processing site share agreement between HyProMag USA and ILS.^viii

About HyProMag USA
HyProMag USA LLC is owned 50:50 by CoTec Holdings Corp. (TSXV: CTH; OTCQB: CTHCF) ("CoTec") and HyProMag Limited. HyProMag Limited is 100 per cent owned by Maginito Limited which is owned on a 79.4/20.6 per cent basis by Mkango Resources Ltd. (AIM/TSX-V: MKA) and CoTec.

For more information, please visit www.hypromagusa.com

For further information, please contact:

John Singleton - Director - john.singleton@hypromagusa.com
Will Dawes - Director - will.dawes@hypromagusa.com
Eugene Hercun - Company Communications - +1 604 537 2413

ⁱ https://cotec.ca/news/hypromag-usa-expands-detailed-engineering-phase-to-include-three-hpms-vessels-and-initiates-concept-studies-for-further-expansion-and-complementary-long-loop-recycling

ⁱⁱ Patented Hydrogen Processing of Magnet Scrap (HPMS) technology developed at University of Birmingham, which liberates NdFeB magnets from end-of-life scrap streams in a cost effective and energy efficient way

ⁱⁱⁱ Association for the Advancement of Cost Engineering (AACE)

^iv https://cotec.ca/news/hypromag-usa-feasibility-study-demonstrates-robust-economics-and-the-opportunity-to-develop-a-major-new-domestic-source-of-recycled-rare-earths-magnets-for-the-united-states

^v Conventional leach, extraction purification and precipitation process

^vi https://cotec.ca/news/hypromag-usas-iso-compliant-product-carbon-footprint-study-confirms-exceptionally-low-co2-footprint-of-235-kg-co2-eq-per-kg-of-ndfeb-cut-sintered-bloc

^vii https://www.cotec.ca/news/hypromag-usa-commences-stockpiling-of-feedstock

^viii https://www.cotec.ca/news/hypromag-usa-enters-into-agreement-with-global-electronics-recycler-intelligent-lifecycle-solutions-for-feedstock-supply-and-pre-processing-site-share-in-south-carolina-and-nevada