Mr. Spencer Huh reports

NEO BATTERY MATERIALS CLOSES FINAL TRANCHE OF OVERSUBSCRIBED PRIVATE PLACEMENT

Neo Battery Materials Ltd. has closed the second and final tranche of the oversubscribed, non-brokered private placement through the issuance of a further 1.4 million units at a price of 50 cents per unit for gross proceeds of $700,000.

Through the first and final tranches of the offering, the company raised a total of $900,000, issuing 1.8 million units in total. Each unit consists of one common share of the company and one non-transferable common share purchase warrant. Each whole warrant will be exercisable to acquire one common share of the company at an exercise price of 75 cents for a period of 24 months from each respective closing date of the offering. The use of proceeds will be allocated toward (i) scaling up silicon battery research and development and production for large-scale battery manufacturing and testing, (ii) purchases of key manufacturing equipment, and (iii) working capital and general corporate overhead.

In connection with both tranches of the offering, the company paid to the finders: (i) an aggregate cash commission of $45,500, and (ii) 91,000 non-transferable warrants of the company exercisable at an exercise price of 50 cents for a period of 24 months from each respective closing date of the offering. A portion of units have been offered to purchasers outside of Canada pursuant to an exemption from the prospectus requirement available under Ontario Securities Commission Rule 72-503 -- Distributions Outside Canada (OSC 72-503), and accordingly, the securities issued pursuant to OSC 72-503 will not be subject to resale restrictions. Units offered to purchasers within Canada are subject to a four-month-plus-one-day hold period from the date of issuance. The offering is not a related party transaction as defined by Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions (MI 61-101) and therefore is not subject to TSX Venture Exchange Policy 5.9. The offering is subject to final acceptance of the TSX-V.

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. The company aims to be a globally leading producer of silicon anode materials for the electric vehicle and energy storage industries.

We seek Safe Harbor.