Mr. Spencer Huh reports

NEO BATTERY MATERIALS ANNOUNCES PRICING OF NON-BROKERED LIFE PRIVATE PLACEMENT

Neo Battery Materials Ltd. has priced its non-brokered private placement. Neo will issue a minimum of 12,187,500 up to a maximum of 15,625,000 units of the company at a price of 32 cents per unit for gross proceeds of a minimum of $3.9-million up to a maximum of $5-million. Pursuant to the listed issuer financing exemption (LIFE), the units offered will be immediately freely tradeable, not subject to a hold period in accordance with applicable Canadian securities law.

Each unit shall consist of one common share of the company and one non-transferable common share purchase warrant. Each warrant shall be exercisable into one common share of the company at an exercise price of 75 cents for a period of 24 months after the closing date (as defined herein).

During the period of 24 months after the closing date, in the event that the daily volume-weighted average trading price (or closing bid price on days when there are no trades) of the common shares on the TSX Venture Exchange is at least $1 per common share for a minimum of 15 consecutive trading days, the company may issue a written notice or press release to holders of the warrants requiring each holder to exercise the warrants within 30 days following the date of delivery of the warrant acceleration notice.

The net proceeds of the offering are expected to be used to advance the development of the company's commercial manufacturing plant in South Korea, North American expansion, silicon anode R&D (research and development), and general working capital. The company may compensate certain eligible finders under the offering, and may pay a cash commission of up to 7 per cent of the gross proceeds of the offering and issue such a number of finder's warrants of up to 7 per cent of the total number of units issued.

The offering is expected to be completed on or about Oct. 31, 2023, and will satisfy the change of business minimum financing requirement by the TSX-V, as previously announced by the company on June 30, 2023.

Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 -- Prospectus Exemptions (NI 45-106), the offering is being made to purchasers resident in Canada (except Quebec) and/or other qualifying jurisdictions, pursuant to the listed issuer financing exemption under Part 5A.2 of NI 45-106. The securities issued pursuant to the listed issuer financing exemption will not be subject to resale restrictions, in accordance with applicable Canadian securities laws, and the units issued will be immediately freely tradeable. There is an offering document related to the offering that can be accessed under the company's profile at SEDAR+ and at the company's website. Prospective investors should read this offering document before making an investment decision.

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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