Mr. Spencer Huh reports

NEO BATTERY MATERIALS ANNOUNCES GRANT OF RESTRICTED SHARE UNITS

Neo Battery Materials Ltd. has issued restricted share units to certain directors and officers in accordance with the company's omnibus equity incentive plan.

The RSUs were granted as part of the company's program to reward recent successes, including with commencing production at Neo's battery foundry, retaining global automotive manufacturers as anchor customers and developing the company's high performance silicon battery products. The RSUs will further align the interests of directors and officers with those of shareholders to incentivize sustained performance, execution and value creation over time.

The company has issued an aggregate of 1.35 million RSUs to certain directors and officers. Six hundred seventy-five thousand RSUs will vest after a 12-month period, and the remaining 675,000 RSUs will vest after a 14-month period. The grant of the RSUs remains subject to approval by the TSX Venture Exchange.

Spencer Huh, president and chief executive officer of Neo, commented: "As we enter the new year, I would like to briefly reflect on Neo Battery's progress made over this past year and thank our shareholders, partners and team members for their continued dedication and support.

"Two thousand twenty-five marked a period of meaningful transition and transformation. We advanced from an R&D organization into a manufacturing, operational and commercialized one. By securing the 250 megawatt-hour battery foundry, we are now producing industry-grade battery components and cells for global automotive OEMs. These achievements reflect disciplined execution, robust expertise across our team, and growing external validation of Neo's technology and product quality.

"Looking ahead to 2026, our focus will be on expanding production capacity, customer pipelines and product offerings. Along with the continuation of the silicon battery materials project, we aim to deliver high performance silicon batteries to drones, robots and advanced electronics, helping downstream manufacturers secure a reliable, non-Chinese supply of batteries. We will approach the coming year with confidence and responsibility to deliver on our goals and milestones.

"On behalf of the board of directors and the entire Neo team, I sincerely wish you a healthy, successful and prosperous new year."

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, robotics, unmanned systems, electronics, electric vehicles and energy storage systems for artificial intelligence 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 material 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.

We seek Safe Harbor.