Mr. Spencer Huh reports

NEO BATTERY TO STRATEGICALLY INCREASE OWNERSHIP OF KOREAN OPERATING SUBSIDIARY

Neo Battery Materials Ltd. has strategically acquired an additional 10-per-cent interest in its operating subsidiary, Neo Battery Korea Co. Ltd., through a stock purchase agreement dated June 26, 2026, from Automobile & PCB Inc., strengthening Neo's ownership of a key operating asset.

Since expanding operations through the Gimje battery manufacturing facility, NBM Korea has initiated and continues to service Fortune 500 automotive and international drone and battery value chain companies, with foundry products and high performance solutions targeted for defence and government customers. The increased ownership underscores NBM Korea's growing strategic and operational importance to the company's interests and scale-up.

Neo has acquired 120,786 common shares of NBM Korea for an aggregate purchase price of 715,542,466 won (or approximately $662,539). Upon closing, Neo will directly own 1,156,102 common shares of NBM Korea, representing approximately 90 per cent of the issued and outstanding common shares. The transaction remains subject to customary closing conditions, including the acceptance by the TSX Venture Exchange.

As NBM Korea progresses toward scaled battery manufacturing with its first and expansion factories, acquiring a greater interest at this stage, ahead of full production ramp, positions the company and its stakeholders to capture a greater share of the value and economics created as both facilities mature. Furthermore, defence and government customers have increased scrutiny of suppliers' ownership and control during qualification and procurement reviews. Management considers consolidating ownership will reduce due diligence complexity and strengthen the company as a controlled, traceable supplier, enabling it to compete for additional contract awards. Simplified capital structure will further allow greater flexibility in structuring future financings at the subsidiary level, including potential participation by strategic partners and government-linked investors.

Pursuant to TSX-V Policy 1.1, A&P is considered a non-arm's-length party with a board member in NBM Korea and held 258,828 common shares of NBM Korea prior to the transaction. The transaction is not subject to disinterested shareholder approval, and there are no shares, warrants or securities of the company issued as finders' fees.

About Neo Battery Materials Ltd.

Neo Battery Materials is a Canadian-South Korean battery technology company focused on developing and producing silicon-enhanced lithium-ion batteries in drones, robotics, physical artificial intelligence, electric vehicles and energy storage systems. With a patent-protected, low-cost silicon manufacturing process, Neo Battery enables longer-running and ultrafast-charging properties 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 batteries and materials, building a secure, robust battery supply chain for western manufacturers.

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