Mr. Spencer Huh reports

NEO BATTERY RECEIVES FIRST DIRECT ORDER FROM REPUBLIC OF KOREA ARMY AND SECURES ADDITIONAL INTERNATIONAL DRONE BATTERY ORDERS

Neo Battery Materials Ltd. has achieved a series of commercial and strategic developments across its drone and defence battery business, including its first direct supply order from the Republic of Korea Army -- a battery management system development order from a strategic drone collaborator, and additional purchase orders from drone value chain companies in the United States, South Korea and Japan.

Neo has received a direct purchase order for military-grade drone battery packs from a division of the Republic of Korea Army for field validation and use. This marks the first agreement to supply the ROK Army directly, without a traditional procurement intermediary such as a drone manufacturer or system integrator. The order follows sustained engagement with the Korean defence and military ecosystem, developing an understanding of the qualification standards and operational capabilities required by the ROK Army.

The company has also advanced its relationship with Assetta Inc., a strategic defence collaborator co-optimizing drone technologies, by securing a development order for battery management systems (BMS) supporting its drone platforms under a government procurement program. The scope spans state-of-charge indication, cell voltage monitoring and balancing, communications system integration, and a range of undisclosed functions intended to differentiate from competing platforms. Subject to successful development, the BMS-integrated drone battery packs are intended for direct integration into the government procurement program and Assetta's drone platforms on a long-term basis.

Additional order flow has continued from commercial operators across the international drone value chain for development and validation purposes. Neo has been contracted via battery cell and pack purchase orders by a major U.S. drone components manufacturer, one of South Korea's oldest and leading unmanned aerial vehicle (UAV) manufacturers, one of Japan's largest stand-alone drone companies by revenue, and various Korean small-to-medium enterprises producing strike and ISR drones for defence and industrial applications.

"Neo is widening its drone battery business offerings to provide a true, one-stop energy solution from cell-to-pack-to-BMS," said Spencer Huh, president and chief executive officer of Neo. "This has translated into increased traction from Korean, Japanese, and American drone and drone components manufacturers. Across these engagements, two considerations are recurring: the ability to enhance performance of cells and packs given the constraints imposed by the customers' systems, and the access to a robust supply source situated outside of adversarial jurisdictions."

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.

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