Mr. Spencer Huh reports

NEO BATTERY AND NBM KOREA ENTERS INTO DEFINITIVE LEASE AGREEMENT FOR OPERATIONAL BATTERY ELECTRODE MANUFACTURING FACILITY

Neo Battery Materials Ltd. and its South Korean subsidiary, NBM Korea Co. Ltd. (NBMK), have entered into a definitive lease agreement with Enplus Co. Ltd., an arm's-length party (lessor), on Nov. 10, 2025, to lease an operational battery electrode manufacturing facility.

• Entered into definitive Lease agreement with Enplus to lease operational battery components manufacturing facility located in Gimje free trade zone;
• Leased asset: megawatt-hour lithium-ion battery electrode production equipment and facilities;
• Three-year lease term with right of first refusal to renew term on same conditions and cash security deposit and monthly payment for consideration;
• To initially supply existing major automotive OEMs (original equipment manufacturers) and downstream manufacturers and will adapt to produce custom silicon-enhanced electrodes for new client pipeline.

This facility represents a major step toward Neo's transition from battery technology development to production, providing immediate access to commercial-scale manufacturing capability for advanced electrodes at the megawatt-hour (MWh) level. By extending operational shifts and implementing automation, Neo anticipates doubling capacity in the coming months, positioning the company for accelerated commercialization and strategic scaling of its silicon-enhanced battery products.

Under the definitive agreement, Neo and NBMK have secured the full use of the facility's production equipment, office, warehouse and auxiliary infrastructure for an initial three-year term, with a right of first refusal to renew under the same terms and conditions. The lease will be settled in cash through a lump-sum security deposit and monthly lease payments. Pursuant to the terms of the definitive agreement, the specific payment amounts will remain confidential to protect commercially sensitive information. There are no shares, warrants or securities of the company issued as consideration.

Initially, the facility will focus on supplying battery electrodes to existing major automotive original equipment manufacturers (OEM) and downstream clients, leveraging established relationships in the global battery supply chain. With production ramp-up, Neo will adapt the equipment to produce custom silicon-enhanced batteries tailored for its growing pipeline of new clients in the drone, robotics and electronics sectors.

Spencer Huh, president and chief executive officer of Neo, commented: "Our entry into this operating electrode manufacturing facility marks an inflection point for the company, meaningfully advancing our transition into a production-ready battery company. This lease arrangement has allowed us to avoid the capital intensity associated with new plant builds, remove multiple quarters of construction and commissioning risk, and immediately manufacture high-quality battery products using Neo's proprietary technology and know-how."

About Neo Battery Materials Ltd.

Neo Battery Materials is a Canadian battery technology company focused on developing and producing silicon-enhanced lithium-ion batteries in drones, unmanned aerial vehicles (UAV), robotics, unmanned systems, electronics, electric vehicles and energy storage systems for AI data centres. With a patent-protected, low-cost manufacturing process, Neo Battery enables longer-running and ultrafast charging batteries and provides end-to-end battery solutions from materials selection, cell architecture and process optimization. The company aims to be a globally leading producer of high performance lithium-ion battery components and materials, building a secure, robust battery supply chain in North America.

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