Mr. Spencer Huh reports

NEO BATTERY ANNOUNCES AMENDED TERMS OF NON-BROKERED LIFE OFFERING OF UNITS

Further to Neo Battery Materials Ltd.'s news release dated Aug. 4, 2026, it has amended the terms of its previously announced non-brokered private placement offering pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 -- Prospectus Exemptions, as amended.

Under the amended terms, the company intends to complete the LIFE offering through the issuance of up to 20 million units of the company at a price of 20 cents per unit for up to aggregate gross proceeds of $4-million. Each unit will consist of one common share of the company and one non-transferable common share purchase warrant, with each warrant entitling the holder thereof to acquire one common share at a price of 30 cents per common share for a period of 36 months following the closing date (as defined herein). All other terms of the LIFE offering remain unchanged from those set out in the company's news release dated Aug. 4, 2026.

The net proceeds from the LIFE offering are expected to be used to advance the company's commercial battery manufacturing operations in South Korea, including the installation of additional cell assembly equipment at its 3.2-acre battery expansion factory, to advance the performance, qualification, and production of the company's drone and robotics battery cells and packs, and for general working capital.

Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106, the units sold pursuant to the LIFE offering will be offered to purchasers resident in all provinces and territories of Canada pursuant to the listed issuer financing exemption and in certain offshore jurisdictions pursuant to available prospectus or registration exemptions in accordance with applicable laws. Subject to the rules and policies of the TSX Venture Exchange, the securities issued under the LIFE offering will not be subject to resale restrictions in accordance with applicable Canadian securities laws.

There is an amended offering document related to the LIFE offering dated Aug. 7, 2026, that can be accessed under the company's profile at SEDAR+ and on the company's website. Prospective investors should read this amended offering document before making an investment decision. It is expected that closing of the LIFE offering will take place on or about Aug. 13, 2026, or such other date(s) as may be determined by the company or approving entities. The LIFE offering may close in one or more tranches. Closing of the LIFE offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.

The company may compensate certain eligible finders in connection with the LIFE offering and may pay a cash commission of up to 6 per cent of the gross proceeds raised from purchasers introduced by such finders and may issue finders' warrants/options equal to up to 6 per cent of the number of units sold to such purchasers. Each finder's warrant/option will be exercisable to acquire one common share at a price of 20 cents for a period of 36 months.

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 AI (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. 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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