MKA Mkango Resources Ltd

Mkango Resources Ltd. (TSX VENTURE:MKA) (the "Corporation" or "Mkango") is
pleased to announce a NI 43-101 compliant mineral resource estimate for the
Songwe project in Malawi:




----------------------------------------------------------------------------
Cut-off            In-situ Indicated Mineral        In-situ Inferred Mineral
 grade                     Resource estimate               Resource estimate
----------------------------------------------------------------------------
1.0% TREO         13.2 mt grading 1.62% TREO      18.6 mt grading 1.38% TREO
1.5% TREO          6.2 mt grading 2.05% TREO       5.1 mt grading 1.83% TREO
----------------------------------------------------------------------------
TREO - total rare earth oxides. In-situ - no geological losses applied. mt -
 million tonnes                                                             






--  The in-situ Indicated and Inferred mineral resource estimates at the
    chosen base case cut-off grade of 1.0% TREO represent a major milestone
    in the development of the project 
    
--  Substantial tonnages at a higher grade are also generated at a higher
    cut-off grade of 1.5% TREO 
    
--  The mineralized zones are untested at depths greater than 350 m below
    the surface of Songwe Hill and are open laterally to the northeast and
    southwest, with additional regional exploration potential 
    
--  The Indicated component comprises approximately 41.5% of the mineral
    resource and 45.4% of the estimated contained TREO at a 1.0% TREO cut-
    off grade, and, following the results of ongoing metallurgical studies,
    it may form the initial basis for commencement of a pre-feasibility
    study 
    
--  Heavy rare earths as a percentage of total rare earths are 7.1% and 7.4%
    for Indicated and Inferred mineral resource estimates, respectively, at
    a 1.0% TREO cut-off grade     



William Dawes, Chief Executive of Mkango stated: "The mineral resource estimates
significantly exceed our original expectations and provide a strong platform for
accelerated development of the project in what is becoming one of Africa's major
emerging rare earth mineral provinces. The heavy rare earth component of the
mineral resource estimate equates to approximately 40% of the gross in-situ
value at current prices with neodymium accounting for a further 30% on the same
basis."


Alexander Lemon, President of Mkango stated: "Malawi's favorable political
backdrop, its excellent geological potential and improving infrastructure,
including major rail, road and power developments, together with the continued
support of the Government of Malawi and its Ministry of Energy and Mines, the
Mines Department and Geological Survey, provide a very strong basis for
development of this important mineral resource and for Mkango's continued growth
in the region." 


Mineral Resource Estimate

The in-situ mineral resource was independently prepared by The MSA Group of
South Africa ("MSA"). MSA, in collaboration and agreement with Dr. Scott
Swinden, the "Qualified Person" (QP), has currently identified 1.0% TREO as an
appropriate cut-off grade for the mineral resource estimate. This will be
further refined on completion of metallurgical test work. The In-situ mineral
resource estimates at different cut-off grades are illustrated in Table 1 below.


To view Table 1 - In-situ Mineral Resource estimates at different cut-off
grades(1), please visit the following link:
http://media3.marketwire.com/docs/824998_table_1.pdf 


The estimated mineral resource has been traced in drill holes to a maximum depth
of 350 m below the surface of Songwe Hill and is based on the two phases of
diamond drilling completed by Mkango in 2011 and 2012 totalling 6,850 m. The
vast majority of the Indicated mineral resource blocks (at a 1% TREO cut-off,
9.1 mt of carbonatite, 0.67 mt of mixed and 1.04 mt of fenite) are at depths of
less than 200 m below the surface of the hill. The areas drilled to date are in
an elevated position on the northern slopes of Songwe Hill, which rises
approximately 230 m above the surrounding plain. The approximate dimensions of
the mineral resource estimate are 400 m aligned northeast by 230 m aligned
northwest and to a depth of 350 m below and paralleling the topographic surface
of the hill and surrounding plain.


Higher grade areas occur at various locations within the mineral resource,
including at or close to surface, particularly in the north eastern part of the
carbonatite domain. The mineralisation is not constrained by drilling at depth
and laterally to both the northeast and southwest. 


Geological domains, comprising either carbonatite or fenite dominant rock types,
were used to guide the mineral resource estimate. Where the carbonatite and
fenite lithologies were inseparable, a mixed domain was created. 


The carbonatite dominant domain generally comprises a higher proportion of
elevated TREO grade mineralisation than the fenite dominant domain. This results
in a higher proportion of the mineralisation in this domain being reported above
the 1% TREO cut off, albeit at a similar average grade to the other domains, as
illustrated in Table 2. 


The carbonatite domain is dominant at Songwe, comprising 84% of the Indicated
and 46% of the Inferred mineral resources.


A schematic geological map illustrating the location of the drill holes will be
made available on the Company's website (www.mkango.ca).


The individual REO data and ratios in Tables 2, 3, 4 and 5 were derived from
length-weighted averages of the drill hole database. Heavy rare earths, as
defined here, comprise europium, gadolinium, terbium, dysprosium, holmium,
erbium, thulium, ytterbium, lutetium and yttrium. These include the most highly
priced of the more commonly traded rare earths, europium, terbium and
dysprosium. 


The overall weighted average proportion of heavy rare earths as a percentage of
total rare earths for Indicated and Inferred resource estimates at 1.0% TREO
cut-off grade is 7.1% and 7.4% respectively. The heavy rare earths vary with
cut-off grade both in terms of absolute values and relative proportions. As TREO
grade decreases, relative proportions of heavy rare earths increases (at 0.5%
TREO cut-off grade, the HREO proportion is 7.7% and 8.2% for Indicated and
Inferred categories, respectively) and the reverse is also true (at 1.5% TREO
cut-off grade, the HREO proportion is 6.1% and 5.8% for Indicated and Inferred
categories, respectively).


Apart from the proportion of heavy rare earths, a further measure of the
potential value is the proportions of critical rare earths. The US Department of
Energy has highlighted neodymium, dysprosium, europium, terbium and yttrium as
being "critical" rare earths in terms of their importance to the clean energy
economy and risk of supply disruption. Of these, dysprosium, europium, terbium
and yttrium are heavy rare earths and are also reflected in the heavy rare earth
ratio. Neodymium (Nd) is a light rare earth, principally used in the production
of high strength permanent magnets. 


The Songwe Hill deposit contains a weighted average of 2,665 ppm Nd2O3 and 2,240
ppm Nd2O3 in the Indicated and Inferred categories at 1.0% TREO cut-off grade,
respectively. This equates to a weighted average proportion of Nd2O3 as a
percentage of total rare earth oxides for Indicated and Inferred categories of
16.5% and 16.3%, respectively. 


Metallurgical Scoping Test Work 

Metallurgical scoping work at Mintek in South Africa is ongoing, comprising
flotation test work and leach tests. The current flotation test work is focused
on a similar reagent regime to that used previously at the Mountain Pass mine
and variations thereof. Further reagent regimes and conditions will continue to
be tested. Rare earth mineralogy at Songwe is well understood, comprising
synchysite and apatite.


To view Table 2 - In-situ Mineral Resource estimates at 1.0% TREO cut-off
grade(1), please visit the following link:
http://media3.marketwire.com/docs/824998_table_2.pdf 


To view Table 3 - REO distribution for different rock types at 1.0% TREO cut-off
grade(1), please visit the following link:
http://media3.marketwire.com/docs/824998_table_3.pdf 


Key assumptions, parameters and methods used to estimate the Mineral Resources



--  wireframing of the three lithological units was based on surface
    geological mapping extended to depth using the drillhole intersection
    data; 
    
--  TREO, HREO, Th and U grades as well as Density were determined using
    Ordinary Kriging interpolation into individual 3-Dimensional block
    models constrained by the respective lithological wireframes; 
    
--  the lithological block models comprised sub-celled block dimensions of 5
    m x 5 m x 5 m. 
    
--  the lithology wireframes and block models were truncated to the
    topographic surface; 
    
--  no capping or cutting to limit any input grade data was undertaken as
    part of the mineral resource estimation; 
    
--  Datamine Studio 3 was the modelling package; and 
    
--  mineral resource classifications were assigned as Indicated and Inferred
    based on the degree of measurable continuity of geological and grade
    data. 



Scientific and technical information, including data verification, contained in
this release has been approved and verified by Dr. Scott Swinden 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 were provided by Intertek-Genalysis Laboratories (Johannesburg, South
Africa and 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. 


The NI 43-101 compliant technical report in respect of the mineral resource
estimates described herein will be filed on SEDAR within the next 45 days.


The Songwe Hill Rare Earth Project 

The Songwe Hill rare earth project is located within a 100% owned exclusive
prospecting licence covering an area of 1,283 km2 in southeast Malawi (the
"Phalombe Licence"). Songwe is accessible by road from Zomba, the former
capital, and Blantyre, the principal commercial town of Malawi. Total travel
time from Zomba is approximately 2 hours, which will reduce as infrastructure
continues to be upgraded in the area. 


Mkango Resources Ltd.

Mkango's primary business is the exploration for rare earth elements and
associated minerals in the Republic of Malawi. It holds, through its wholly
owned subsidiary Lancaster, a 100% interest in two exclusive prospecting
licenses covering a combined area of 1,751 km2 in southern Malawi. The main
exploration target is the Songwe Hill rare earth deposit, which features
carbonatite hosted rare earth mineralisation and was subject to previous
exploration in the late 1980s. 


The Corporation's corporate strategy is to further delineate the rare earth
mineralisation at Songwe Hill and secure additional rare earth element and other
mineral opportunities in Malawi and elsewhere in Africa.


Cautionary Note Regarding Forward-Looking Statements 

This news release may contain forward-looking statements relating to the
Corporation. Readers are cautioned not to place undue reliance on
forward-looking statements, as there can be no assurance that the plans,
intentions or expectations upon which they are based will occur. By their
nature, forward-looking statements involve numerous assumptions, known and
unknown risks and uncertainties, both general and specific, that contribute to
the possibility that the predictions, forecasts, projections and other
forward-looking statements will not occur, which may cause actual performance
and results in future periods to differ materially from any estimates or
projections of future performance or results expressed or implied by such
forward-looking statements. Such factors and risks include, among others, the
interpretation and actual results of current exploration activities; uncertainty
of estimates of mineral resources, changes in project parameters as plans
continue to be refined; future commodity prices; possible variations in grade or
recovery rates; failure of equipment or processes to operate as anticipated;
labour disputes and other risks of the mining industry; delays in obtaining
governmental approvals or financing or in the completion of exploration. 


The forward-looking statements contained in this press release are made as of
the date of this press release. Except as required by law, the Corporation
disclaims any intention and assume no obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by applicable securities law.
Additionally, the Corporation undertakes no obligation to comment on the
expectations of, or statements made, by third parties in respect of the matters
discussed above. 


Appendix 

To view Table 4 - In-situ Mineral Resource estimates at different cut-off
grades, please visit the following link:
http://media3.marketwire.com/docs/824998_table_4.pdf 


To view Table 5 - REO distribution at different cut-off grades, please visit the
following link: http://media3.marketwire.com/docs/824998_table_5.pdf 


To view a pdf version of this press release, please visit the following link:
http://media3.marketwire.com/docs/824998.pdf

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