Mr. Ali Mahdavi reports

NEO PERFORMANCE MATERIALS TO INVEST IN SINGAPORE ENTITY

Neo Performance Materials Inc. has entered into a subscription agreement providing for the purchase of up to $84.7-million (U.S.) of ordinary and preference shares of its wholly owned direct subsidiary, Magnet Ventures Pte. Ltd., over the course of several tranches, and subject to certain conditions precedent. Magnet Ventures is the sole shareholder of NPM Narva OU. The first tranche in the amount of $15.4-million (U.S.) is expected to be financed no later than mid-July, 2023. Concurrent with Neo's investment, a third party minority shareholder will also invest in Magnet Ventures. Following the completion of the financing of Magnet Ventures, Neo will hold a 70-per-cent interest in the outstanding ordinary shares of Magnet Ventures and the minority shareholder will hold a 30-per-cent interest. Concurrent with the entering into of the subscription agreement, Neo and the minority shareholder of Magnet Ventures entered into a shareholders' agreement in regard to Magnet Ventures which provides for the terms of the relationship and the operating parameters of the company, including pre-emptive rights, rights of first refusal on transfers of shares, restrictive covenants and restrictions on the transfer of shares of Magnet Ventures. The shareholders' agreement becomes effective on the completion of the first tranche of financing.

About Neo Performance Materials Inc.

Neo manufactures the building blocks of many modern technologies that enhance efficiency and sustainability. Neo's advanced industrial materials -- magnetic powders and magnets, specialty chemicals, metals, and alloys -- are critical to the performance of many everyday products and emerging technologies. Neo's products help to deliver the technologies of tomorrow to consumers today. The business of Neo is organized along three segments: Magnequench, chemicals and oxides, and rare metals. Neo is headquartered in Toronto, Ont., Canada; with corporate offices in Greenwood Village, Colo., United States; Singapore; and Beijing, China. Neo has a global platform that includes nine manufacturing facilities located in China, the United States, Germany, Canada, Estonia and Thailand, as well as one dedicated research and development centre in Singapore.

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