Mr. Rahim Suleman reports

NEO RELEASES ITS LATEST CORPORATE SUSTAINABILITY REPORT

Neo Performance Materials Inc. has published a new sustainability report, which provides information to shareholders, customers, industry partners, employees and stakeholders on the company's environmental, social and governance (ESG) performance in 2022. Neo's sustainability report 2022 can be seen at its website.

"As a leading global rare earth magnetics company, with parallel supply chains inside and outside of China, Neo delivers many of the advanced materials that enable the world's transition to green technologies," said Rahim Suleman, Neo president and chief executive officer. "At the same time, we aim to continuously raise our standards for ESG performance. This year's annual report expands the breadth and depth of our disclosure by reporting against relevant guidelines of both the Sustainability Accounting Standards Board and the Global Reporting Initiative.

"I am especially proud of what we have accomplished in 2022," Mr. Suleman added. "We entered the year with a broad list of ESG objectives that included investments in our employee health and safety programs, formation of a greenhouse gas (GHG) task force to plan for long-term carbon emission reductions, immediate steps to reduce GHG emissions and hazardous waste, and greater engagement in our local communities. Over the past year, Neo's global team has achieved each of these objectives, and made a many other meaningful advancements in our ongoing ESG journey."

Among the ESG-related accomplishments that Neo achieved in 2022 are these:

• Delivered outstanding safety performance across all of its global operations, achieving a lost-time incident rate of 0.22;
• Launched a robust GHG measurement and long-range scenario planning exercise for carbon emission reduction, which informs realistic target setting;
• Doubled the solar power generation capacity at the company's Korat, Thailand, facility, and executed multiple projects throughout the company to improve energy efficiency;
• Commenced construction of a manufacturing facility in Estonia for energy-saving rare earth permanent magnets at the specifications of European automotive and wind energy OEMs (original equipment manufacturers).

Neo's commitment to sustainable practices is further illustrated by the fact that all five of Neo's flagship rare earth facilities, representing more than 90 per cent of revenue generated by the company, are now operating in the EcoVadis tracking and reporting system, and all have been singled out for excellence in their sustainability programs and practices by EcoVadis. For example, Neo's production plants in Silmet, Estonia, Korat, Thailand, and Zibo, China, have all been awarded gold medal ratings from EcoVadis, and its production facilities in Tianjin and Jiangyin, China, have each earned silver medal ratings from EcoVadis.

The full list of accomplishments and ESG-related data reporting from Neo can be seen in the published 2022 report.

The report also highlights the many examples of how Neo's rare earth- and rare metal-based products are critical to the performance of many everyday, and emerging products and technologies that advance sustainability and environmental protection. These include the following:

• Empowering vehicle electrification;
• Reducing pollution from internal combustion engines;
• Protection of freshwater resources;
• Reducing air emissions from commercial aviation;
• Empowering advanced health care technologies;
• Converting industrial waste streams into useful products; and
• Unlocking higher energy savings in industrial and residential pumps, and ultrahigh-speed motors.

Neo publishes annually a sustainability report on progress made toward improving the company's environmental, social and governance performance.

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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