Mr. Spencer Huh reports

NEO BATTERY RECEIVES PURCHASE ORDERS FROM KOREAN VTOL DRONE MANUFACTURER AND NORTH AMERICAN FORTUNE 500 AUTOMOTIVE OEM

Neo Battery Materials Ltd. has received two separate purchase orders for its battery products and manufacturing services: one from Narma Inc., a South Korean surveillance, logistics and agricultural drone manufacturer, and one from a North American Fortune 500 automotive company.

Narma's order comprises Neo's 34 Ah (ampere-hour) drone battery packs and a custom-engineered 22 Ah pack for integration into its vertical takeoff and landing (VTOL) unmanned aircraft for validation purposes. Narma was established by the Korea Aerospace Research Institute (KARI), the primary aerospace research and development organization of the Korea AeroSpace Administration (KASA), as a research spinoff company. The customer has successfully commercialized electric dual tilt-rotor drone technologies and has validated its products through partnerships, with a continued development focus on payload capacity, speed and operational efficiency.

Narma has indicated a procurement priority in reducing reliance on geographically concentrated supply chains while enhancing lithium-ion battery performance to realize extended flight times and payload capacity. Recently, the customer was selected as an award vendor in both small lift and medium lift categories by the State of North Dakota's Unmanned Aircraft Systems (UAS) procurement program. To comply with the requirements of the U.S. National Defense Authorization Act (NDAA) for the program, NEO aims to actively support Narma by supplying NDAA-compliant, non-Chinese/FEOC manufactured battery solutions.

The second purchase order was received from a North American Fortune 500 automotive company in support of its advanced battery development initiative. Separate from end-to-end battery products, the company is servicing certain battery manufacturing processes to the Fortune 500 customer as part of its contract manufacturing business. In contrast to longer lead-time orders in the company's pipeline, these purchase orders are for immediate production and delivery within the near term.

"Neo is continuing to target various downstream verticals and customer profiles to expand business opportunities and create a robust sales pipeline. With Neo's distinct cell development and manufacturing expertise from global battery manufacturers, the company is gaining adoption as not only a contract manufacturer but also a close collaborator on designing and optimizing end products and systems," said Spencer Huh, chief executive officer and president of Neo.

As announced on June 29, 2026, Neo entered into a stock purchase agreement of its Korean subsidiary, Neo Battery Materials Korea Co., Ltd., with Automobile & PCB Inc. to strengthen ownership of its key operating asset). Pursuant to the 30-day timeline set out in Section 3.5 of TSX Venture Exchange Policy 3.3, Neo provides updates that conditional acceptance has been received and the company is awaiting final acceptance to close the transaction subject to fulfilling certain conditions required by the TSX-V.

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 materials selection, cell architecture and process optimization.

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