OREANDA-NEWS. Mkango Resources Ltd. (TSXV-MKA) (the "Corporation" or "Mkango") is pleased to announce the results of the updated Pre-feasibility Study (the Study) for the Songwe Hill Rare Earth Project. Capital expenditure (Capex) and operating costs (Opex) in the Study have been updated to reflect movements in equipment, reagent and other costs, in addition to exchange rates. Furthermore, for the purposes of the Study, the Corporation commissioned a rare earth market review from Adamas Intelligence (Adamas) to evaluate the future rare earth market in the context of Mkango's potential development timeframe. The results of the updated Study are as follows:

-       After-tax net present value (NPV10%) of US$345 million and after-tax internal rate of return (IRR) of 37% based on a long term rare earth basket value of US$59.8 per kg rare earth oxide (REO).

-       Initial Capex of US$216 million, including a contingency of US$20 million, remains among the lowest in the rare earth sector.

-       Cash operating costs average US$13.0 per kg REO for the first 5 years of production and US$16.4 per kg REO for the life of mine with an additional cost of US$10.0 per kg REO to account for the cost or discount associated with tolling or the sale of a chemical concentrate.

-       Production of 2,841 tonnes of REO in mixed chemical concentrate per year over an 18 year mine life.

-       A large proportion of the cerium is removed during the hydrometallurgical process, significantly enhancing the basket value of production.

-       Over 80% of basket value is attributable to rare earths used in high growth permanent magnet applications, comprising over 65% attributable to neodymium and praseodymium, and over 15% to the heavy rare earths, dysprosium and terbium.

William Dawes, Chief Executive Officer of Mkango stated: "The market review, completed in conjunction with the updated Pre-feasibility study, validates our strategy and focus on the "big four" magnet rare earths, which have a strong market outlook, geared to China's emerging green economy and growing consumer demand, and make up over 80% of our potential future revenue.

Benchmarking analyses completed internally by Mkango and independently by Adamas Intelligence indicates that Mkango is favourably positioned with a combination of low capex and opex versus its peer group of advanced stage rare earth projects at the Pre-feasibility or Feasibility stage."