Mkango Resources Ltd. holds a 100% interest in two exclusive prospecting licences in southern Malawi covering a combined area of 1,751km2. The main exploration target is the Songwe rare earth project, which was previously drilled in the late 1980s. There are also a number of other exploration targets for rare earths and other minerals in the licence areas.

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.

SONGWE

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 1.5 to 2 hours, which will reduce as infrastructure continues to be upgraded in the area. 

Eleven of the thirteen holes drilled in Stage 1 intersected significant zones of rare earth mineralisation, including higher grade zones and areas of heavy rare earth enrichment. Drilling and surface mapping to date have confirmed that the extent of the mineralised carbonatite is much greater than indicated by historical exploration.

Baobab - Songwe Hill in the background

Mkango's drilling contractors, Cartwright Drilling Inc. of Goose Bay, Canada, commenced drilling on 10th January. Stage 2 drilling, designed to complement Stage 1 drilling completed in 2011, will mainly focus on an area measuring approximately 350m by 100m comprising rare earth enriched carbonatite, breccia and fenite lithologies, largely exposed at surface and open to depth. 

The programme will comprise infill drilling and testing depth extensions of mineralisation intersected in the first stage. Stage 1 demonstrated that the mineralised zones have the potential to extend to at least 260m vertical depth and remain open laterally within the extents of the Songwe Hill carbonatite complex.

Other recent activities in relation to Songwe include the following:

• Five approximately E-W bearing lines of systematic surface channel sampling using rock saws have been completed at Songwe and approximately 400 samples are being dispatched for assay. All sampling was carried out following best practice and included a comprehensive QAQC monitoring and control programme. Geological mapping has been continuing in conjunction with Dr Alan Woolley and the geological model has been further refined.
• A detailed mineralogical programme has been completed by Mkango's principal geologist, Dr Aoife Brady, comprising scanning electron microscope, electron microprobe and LA-ICP-MS analyses at the Natural History Museum and Aberystwyth University in the UK, the results of which are currently being reviewed.
• Representative sections of core from 5 drill holes from Stage 1 (PX001, PX003, PX005, PX012 and PX009) with a total weight of 635kg have been sent to Mintek in South Africa for scoping metallurgical test work.
• Grab samples from two yttrium enriched breccia targets proximal to Songwe and from other exploration targets within the licence area are being dispatched for assay. Preliminary SEM analysis of a sample from one of the breccia targets indicates xenotime in the breccia matrix may be the source of yttrium enrichment. The latter was carried out as part of a Phd research project focused on generating heavy rare earth targets in alkaline provinces, specifically Malawi, in collaboration with the British Geological Survey, Camborne School of Mines and Leominex.

Geophysical surveying

Stage 2 drilling update

Mkango's drilling contractors, Cartwright Drilling Inc. of Goose Bay, Canada, commenced Stage 2 drilling on 10th January and have made good progress. To date, a total of 17 holes (3,149 metres) have been drilled. Drilling continues to intersect broad zones of mineralised carbonatite, carbonatite breccia and fenite. Furthermore, REE mineralisation was intersected at a vertical depth of 350m below surface which has significantly extended the known depth extent of REE mineralisation.

Mr William Dawes BSc, MSc, CFA - Chief Executive Officer

Mr. Dawes, CFA, is a graduate of Bristol University (BSc Geology) and Imperial College, London (MSc Mineral Exploration). Mr. Dawes previously worked as a mining analyst based in London and from 1995 to 1998, for Rio Tinto's exploration division. From 1998 to 2005, he gained significant global mining transaction experience in the metals and mining team of Robert Fleming & Co, Chase Manhattan Bank and JPMorgan, where he held the position of Vice-President. Mr. Dawes has been a director of Leo Mining and Exploration since September 2007. He is a Member of the Institute of Materials, Minerals and Mining and holds the Chartered Financial Analyst designation.

Mr Alexander Lemon BSc, MSc - President

Mr. Lemon is a graduate of Oxford Brookes University (BSc Geological Sciences) and Imperial College, London (MSc Mineral Exploration). From 1994 to 2001, he was the Managing Director of Gold and Mineral Excavation Inc., which owned and operated a producing gold mine in Central Asia, where he gained extensive operating experience in emerging markets including government negotiations and project management. From 2001 to 2005, he worked for Allied Commercial Exporters as an investment advisor. Mr. Lemon has been a director of Leo Mining and Exploration since September 2007. He is a Member of the Canadian Institute of Mining, Metallurgy and Petroleum and is an Associate Member of the Institute of Materials, Minerals and Mining

Sandra Beaulieu - Chief Financial Officer

Mrs Sandra Beaulieu is a financial professional with over 20 years experience in the resource sector, both domestically and internationally. Her skills include controllership, treasury and internal control governance with extensive experience in North America.

Sandra has held positions with international resource companies requiring her to oversee sound financial controls and her familiarity with and guidance of financial system implementation, upgrading and maintenance has given her a distinct advantage when advising and assisting emerging enterprises.

In her consulting practice as managing director of Basenji Solutions Ltd, Sandra has managed the entire financial function for a number of publically traded companies, TSX-V capital pool companies and sole proprietorships.

Mr David Berg - Corporate Secretary and Non-Executive Director

Mr. Berg is currently an independent Businessman.

He spent 28 years of consecutive service with one of Canada's largest publicly traded companies, serving in the capacity of Vice President of Operations. He managed a Business unit with over 1.5 Billion in annual revenue and a total of 8500 employees. His Corporate experience has encompassed financial, retail services and petroleum businesses.

As the former Chairman and current Director of Potash One (TSX:KCL) he oversees and participates on a number of the Executive Committees. He has actively contributed to its successful development from an early stage exploration company to the recent completion of its Feasibility Study with a stated NPV of over $4 Billion dollars. He is also the advisor, founder and Director of numerous other publicly traded Companies.

Presently he operates a private consulting business based in Calgary, Alberta specializing in the provision of management services, development of business models and structuring, financing and managing of public and private companies.

Mr Eugene Chen BSc, LLB - Non-Executive Director

Mr. Chen has been a lawyer practicing corporate finance and securities law with Gowling Lafleur Henderson LLP since March 2010. From July 2005 to March 2010 he practiced corporate finance and securities law with Fraser Milner Casgrain LLP and from March 1996 to June 2005, he practiced with McLeod & Company LLP.

Adrian Reynolds - Non-Executive Director

Mr Adrian Reynolds has an MSc in Geology, a Graduate Diploma of Mining Engineering and over 30 years experience in the natural resources sector, including more than 15 years experience with Randgold Resources Limited. He was part of the executive team at Randgold that developed the company's original successful strategy whereby the company grew from an exploration company to a very profitable mid-tier mining company. His key responsibilities included technical oversight of the mining operations including feasibility studies, audits, compliance and evaluation of new opportunities. He was also a director of Morila Ltd and Société des Mines de Loulo S.A.

Prior to joining Randgold, after initial experience in both oil and coal exploration he moved into deep level gold mining with Gencor Ltd in the Free State Goldfields. Joining Rand Mines Limited in 1985, he held positions in geological management in Rand Mines Limited and its successor Randgold & Exploration Company Limited.

Mr Reynolds is currently an independent consultant and a Non-Executive Director of Digby Wells Environmental, one of the foremost mining environmental consultancies in Africa. He is also a Non-Executive Director of Aureus Mining.

Mr Reynolds is a resident of Cape Town, South Africa.

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