Anisotropic hot-worked permanent magnets are made from an R-T-B alloyed powder to which is added a combination internal lubricant including a carbon-based material such as graphite and a glass material such as glass from the B.sub.2 O.sub.3 --SiO.sub.2 --BiO.sub.3 glass system. The internal lubricant provides improved formability during the hot-working step, such as die-upsetting, and provides finished magnet products wherein the individual grains are more uniformly plastically deformed throughout the product.