MKA Mkango Resources Ltd

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES

Mkango Resources Ltd. (formerly Alloy Capital Corp.) (TSX VENTURE:MKA) (the
"Corporation" or "Mkango") is pleased to announce that on December 20, 2010, it
completed the acquisition ("Acquisition") of Lancaster Exploration Limited
("Lancaster") as its Qualifying Transaction as set forth in Policy 2.4 of the
TSX Venture Exchange ("TSXV").


Prior to the Acquisition, Lancaster was a wholly-owned subsidiary of Leo Mining
and Exploration Limited ("Leominex"). The Acquisition constitutes a reverse
take-over by Leominex of the Corporation whereby Leominex shall become a
controlling shareholder of the Corporation. Both Lancaster and Leominex are
private companies incorporated in the British Virgin Islands. Lancaster is
engaged in exploration for rare earth elements in Africa.


The Qualifying Transaction

Pursuant to the terms of the transaction, prior to completion of the Acquisition
and the concurrent private placement, the Corporation consolidated its common
shares on a 2.5 for 1 basis (each post-consolidated common share referred to
hereafter as a "Common Share"). The Corporation then issued 19,852,899 Common
Shares (the "Acquisition Shares") at a deemed value of $0.50 per Acquisition
Share to Leominex for all of the issued and outstanding shares of Lancaster, for
a purchase price of $9,926,449.50.


The Corporation's acquisition of Lancaster was an arm's length transaction and
the principal shareholders of Leominex, the parent company to Lancaster, are
William Dawes and Alexander Lemon, each of whom are resident in London, England.


Private Placement 

In conjunction with the Acquisition, the Corporation issued 4,825,000 units (the
"Units"), at a price of $0.50 per Unit, pursuant to a brokered private placement
(the "Brokered Offering"), co-lead by Haywood Securities Inc. and Byron
Securities Limited (collectively, the "Agents") for gross proceeds of
$2,412,500. In addition, the Corporation concurrently completed a non-brokered
private placement (the "Non-Brokered Offering") of 10,696,499 Units at a price
of $0.50 per Unit for total gross proceeds of $5,348,249.50. Each Unit consists
of one Common Share and one-half of one Common Share purchase warrant (the
"Warrant"). Each whole Warrant entitles the holder to acquire one Common Share
at the exercise price of $0.75 on or before December 20, 2012. All of the
securities issued under the Brokered and Non-Brokered Offerings are subject to a
four month restriction from resale, as stipulated under applicable securities
legislation and the TSXV, expiring on April 21, 2011. The combined Brokered and
Non-Brokered Offerings were oversubscribed and resulted in gross proceeds of
$7,760,749.50.


As compensation for completion of the Brokered Offering, the Agents received a
commission equal to 7% of the gross proceeds of the Brokered Offering, Agents'
warrants (the "Agents' Warrants") equal to 7% of the number of Units sold under
the Brokered Offering and a corporate finance fee of $25,000. Each Agents'
Warrant entitles the holder to purchase one Unit ("Agents' Unit") at an exercise
price of $0.50 on or before December 20, 2012. Each Agents' Unit consists of one
Common Share ("Agents' Unit Share") and one-half of one warrant ("Agents' Unit
Warrant"). Each whole Agents' Unit Warrant entitles the holder to acquire one
Common Share at an exercise price of $0.75 on or before December 20, 2012. In
addition, the Corporation paid $180,235 in finder's fees and 272,970 warrants
(the "Finder's Warrants") as compensation to finders under the Non-Brokered
Offering. The terms of the Finder's Warrants are identical to the Agents'
Warrants.


The proceeds of the Brokered and Non-Brokered Offerings will be used to complete
the proposed exploration program for Mkango, working capital and general
corporate purposes. 


Directors and Officers 

The directors and officers of the Corporation are as follows:

William Dawes, Chief Executive Officer and Director 

Mr. Dawes is a graduate of Bristol University (BSc Geology) and Imperial
College, London (MSc Mineral Exploration). He previously worked as a mining
analyst based in London and from 1995 to 1998, for Rio Tinto's exploration
division. From 1998 to 2005, Mr. Dawes 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.
From 2006 to 2007, he worked as a consultant and co-founded Leominex in
September of 2007. He is a Member of the Institute of Materials, Minerals and
Mining and holds the Chartered Financial Analyst designation.


Alexander Lemon, President and Director 

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 worked as a consultant from 2006 to 2007 and
co-founded Leominex in September of 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.


David Berg, Corporate Secretary, Chief Financial Officer and 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
8,500 employees. His corporate experience has encompassed financial, retail
services and petroleum business.


As the former Chairman and a director of Potash One (TSX:KCL) Mr. Berg
participates in a number of its Executive Committees. He has actively
contributed to its successful development from an early stage exploration
company to its recent pending acquisition by a multinational fertilizer company
for $434 million dollars. He is also an advisor, founder and director of
numerous other publicly traded companies. 


Presently Mr. Berg operates a private consulting business based in Calgary,
Alberta specializing in the provision of management services and business models
for the natural resource sector with a focus on restructuring and financing
public and private entities.


Eugene Chen, Director 

Mr. Chen is currently a Partner in the securities, corporate finance and mergers
and acquisitions group with Gowling Lafleur Henderson LLP. He was an associate
and then Partner practicing corporate finance and securities law with Fraser
Milner Casgrain LLP from July 2005 to March 2010. Mr. Chen has been a director
and/or officer of numerous public and private companies.


Mr. Chen holds a Bachelor of Science from the University of Alberta, a Bachelor
of Laws from the University of British Columbia and is a member of the Law
Society of Alberta.


Arthur Wong, Director 

Mr. Wong is an independent businessman and Managing Director and Chief Executive
Officer of Optimus U.S. Real Estate Partners Ltd. He was a founder,
Vice-President, Chief Operating Officer and Director of Genesis Land Development
Corp. ("Genesis") from December 1997 to April 2008. Genesis is a publicly traded
real estate development company listed on the TSX.


Mr. Wong is a Professional Engineer and holds a Bachelor of Science degree
(Mechanical Engineering - Cooperative Program) from the University of Alberta.


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 deposit, which features carbonatite hosted
rare earth mineralization and was subject to previous exploration programs in
the late 1980s and in 2010, the latter funded and managed by Lancaster. 


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.


Effective at the opening on Thursday January 6, 2011, the Common Shares of
Mkango will be reinstated for trading under the symbol "MKA".


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.


The TSX Venture Exchange has neither approved nor disapproved the contents of
this press release.


Not for distribution to U.S. Newswire Services or for dissemination in the
United States of America.  Any failure to comply with this restriction may
constitute a violation of U.S. Securities Laws.

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