Mkango Resources Ltd. Announces Completion of Stage One Drilling at the Songwe Hill Rare Earth Element Project in Malawi

CALGARY, ALBERTA--(Marketwire - July 11, 2011) - Mkango Resources Ltd. (TSX VENTURE:MKA) (the "Corporation" or "Mkango") is pleased to announce that its stage one diamond drilling program has been completed at the Songwe Hill rare earth element ("REE") project in Malawi.

The Songwe Hill rare earth element project is located within the 100% owned exclusive prospecting licence (the "Phalombe Licence") EPL0284/10 covering an area of 1,283 km² in southeast Malawi. Songwe Hill is located about 20 km north of Phalombe town and features carbonatite hosted rare earth mineralization which was previously drilled in the late 1980s. Exploration and mineralogical analysis was completed during 2010, and the 43-101 compliant "Technical Report on the Songwe Rare Earth Element (REE) Project, Republic of Malawi" dated September 30, 2010 was filed on SEDAR.

The latest phase of exploration by Mkango in 2011 comprised an initial 13 diamond drill holes for a total of approximately 2,000m. The drill holes tested the mineralized zones previously identified in the late 1980s in addition to potential extensions of these zones. Assay results for these drill holes are expected to be announced in September 2011. The recent drill programme, in addition to geological re-mapping by Dr Alan Woolley, consultant to Mkango, has significantly enhanced Mkango's understanding of the project:

• Significant quantities of carbonatite have been intersected in the majority of the drill holes, the deepest intersection being at approximately 260 metres vertical depth, significantly deeper than encountered in previous drilling (50 metres) in the late 1980s
• Rare earth element mineralization is confirmed by detailed Niton XRF analysis, with geochemical assay results expected in September
• New exposures generated from construction of drill pads and roads has facilitated remapping at Songwe Hill with new areas of potential mineralization identified
• Two drill holes intersected carbonatite to the east of the previously mapped contact with nepheline syenite indicating carbonatite extends further east than previously mapped
• Mineralized breccia zones have been identified and may represent a further rare earth target type within the Songwe Hill vent system

After logging and sampling, the drill core samples were dispatched to Genalysis Laboratories in South Africa and Australia for sample preparation and assaying. In addition a subset of samples has been submitted to Actlabs in Canada to ensure the necessary confidence in the primary laboratory sample results. Twenty samples from the drill core have also been selected for mineralogical analysis.

Prior to commencement of the next stage of drilling, all the results from the Stage one drilling programme will be reviewed, the geological model refined and further geological mapping completed.

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

The Corporation's cash position is approximately C$5.3m (June 24, 2011), which will fully fund the next phase of exploration.

An updated presentation is being posted on the Corporation's website: www.mkango.ca.

The qualified person for the purpose of this press release is Mike Venter who is independent of the Corporation.

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.

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.

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