Mr. Spencer Huh reports

NEO BATTERY MATERIALS RECEIVES FIRST PURCHASE ORDER FOR SILICON ANODE MATERIALS

Neo Battery Materials Ltd. has received the first purchase order for 0.4 metric tonne (400 kilograms) of Neo's proprietary silicon anode materials, NBMSiDE, by an Asian chemical material company under an NDA (non-disclosure agreement). Through Neo's South Korean subsidiary, NBM Korea Co., an initial volume purchase order was placed for the customer's purpose of combining NBMSiDE products with the customer's battery materials to develop composite anodes for commercial-level lithium-ion battery use. Due to the large volume order that exceeds the gratuitous sample limit, the transaction was recognized as a purchase order, and Neo plans to supply over a one-year timeline, delivering gradually optimized samples.

Spencer Huh, president and chief executive officer of Neo, commented: "We are excited to extend our relationship with the chemical material company to take another step towards collaborative commercialization. The unnamed customer will test NBMSiDE within their materials and system to present their products to multiple global battery cell manufacturers and EV [electric vehicle] automakers they have been co-operating on a long-term basis. Positive performance developments are opening and driving new opportunities for advanced agreements continuously, and we expect to secure additional bulk sample POs for large-volume testing."

About Neo Battery Materials Ltd.

Neo Battery Materials is a Canadian battery materials technology company focused on developing silicon anode materials for lithium-ion batteries in electric vehicles, electronics and energy storage systems. With a patent-protected, low-cost manufacturing process, Neo Battery enables longer-running and ultrafast-charging batteries compared with existing state-of-the-art technologies. Building the first commercial plant in South Korea, the company aims to be a globally leading producer of silicon anode materials to the electric vehicle and energy storage industries.

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