Calgary, Alberta: October 27, 2015 – Mkango Resources Ltd. (TSXV-MKA) (the "Corporation" or "Mkango"), is pleased to announce that the Government of Malawi has granted a further two year renewal for Exclusive Exploration Licence ("EPL") 0303/10R ("the Thambani Licence"), in southwest Malawi.

Thambani Licence

A systematic ground radiometric survey completed previously by Mkango revealed two distinct uranium anomalies occurring across the Thambani East and West Ridges: A strong uranium anomaly, measuring approximately 3 kilometres ("km") by 1.5 km, occurs along the length of the Thambani East ridge, with a north-south trend, and a second uranium anomaly, measuring approximately 1.5 km by 0.4 km, occurring on the West Ridge.

In January 2015, Mkango announced the first set of assay results of 142 soil and rock chip samples from 9 trenches, which returned variably anomalous uranium, niobium and tantalum values in most trenches, ranging up to 4.70 % U3O8, 3.25 % Nb2O5 in soil and up to 0.42 % U3O8, 0.78 % Nb2O5 and 972 ppm Ta2O5 in rock chips. The press release in relation to these results is available to be downloaded from Mkango's website (http://www.mkango.ca/s/news.asp?ReportID=691704).

Dual listing on the AIM Market of The London Stock Exchange

The dual listing process is well advanced with SP Angel appointed as Nominated Adviser and Broker and a site visit by SP Angel to the Songwe Hill rare earth project recently completed.

With one of the few rare earth projects globally that has advanced beyond the pre-feasibility stage and, against the backdrop of a potential emerging recovery in the prices of certain rare earths, in particular neodymium, praseodymium and dysprosium, Mkango believes that the dual listing will enable a broader access to capital and provide a stronger platform for development as the Songwe Hill rare earth project advances through the feasibility stage.

Current Activities

Following closing of Mkango's C$1.1m private placement on 20 October 2015, metallurgical flow sheet optimization of the Songwe Hill rare earth project is underway with initial focus on the flotation step. Mkango has identified a number of areas within the flow sheet where there is potential to increase recoveries and reduce operating costs and this will be a major area of focus going forward, with the additional objectives of producing samples of concentrate for potential off-takers and preparing the project for pilot testing.

In Malawi, Mkango continues to work in partnership with boNGO Worldwide (www.bongoworldwide.org), a non-profit, non-government organization, established with the aim of raising the standards of education in the country. The first stage of the initiative, called the Happy Classrooms Project, is to enhance the learning environments in the 3 local primary schools near to Songwe Hill through syllabus-related paintings on classroom walls. To date, boNGO has completed the painting of 12 classrooms.

Mkango has also recently launched an annual competitive scholarship programme to support secondary education for the top 6 male and female students from these schools.

About Mkango Resources Ltd.

Mkango's primary business is the 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". Mkango holds, through its wholly owned subsidiary Lancaster Exploration Limited, a 100% interest in two exclusive prospecting licenses 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.

Mkango completed a Pre-Feasibility study on the Songwe Hill rare earth deposit in September 2014.

On behalf of the Board of Mkango Resources Ltd.,

"William Dawes"
Chief Executive Officer

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.

For further information, please contact:

William Dawes
Chief Executive Officer

will@mkango.ca
Office: +44 207 3722 744
www.mkango.ca

Alexander Lemon
President
alex@mkango.ca

Tim Thompson / Helena Bogle
Newgate
mkango@newgatecomms.com
Office: +44 207 653 9850

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.