Mr. Rahim Suleman reports

NEO PERFORMANCE MATERIALS OPENS STATE-OF-THE-ART PERMANENT MAGNET FACILITY IN EUROPE

Neo Performance Materials Inc. has had a grand opening of its new, state-of-the-art permanent magnet manufacturing facility in Estonia. The inauguration marks a significant milestone in establishing a resilient, independent European footprint to supply critical rare earth magnets essential to electric vehicles, wind energy, robotics and the broader energy transition.

The grand opening ceremony was attended by more than 270 guests, including senior leadership from the global automotive, renewable energy and technology sectors, alongside government officials, media and investors from across Europe, North America, Australia and Japan. The event showcased the facility's advanced capabilities and its strategic importance in the global shift toward electrification and sustainability.

The grand opening was accompanied by an investor/analyst day, which included a tour of Neo's permanent magnet facility in Narva and the existing rare earth separation facility in Sillamae. Attendees had the opportunity to view the new heavy rare earth separation unit, currently being installed.

Neo's investment in Estonia extends beyond manufacturing to fostering the next generation of scientific and technical talent. In its commitment to local development, Neo has established key co-operation agreements with Estonia's leading educational institutions, including:

• University of Tartu's youth academy: sponsoring the training of Estonia's top young students for international Olympiads in mathematics, physics and chemistry;
• Tallinn University of Technology: collaborating on programs for students specializing in rare earth chemistry and the digitalization of manufacturing;
• Robotex: supporting Estonia's premier robotics competition to inspire innovation among young engineers.

Kristen Michal, Prime Minister of Estonia, said: "In Narva, we are opening not only a factory, but also a new chapter in Europe's industrial future. I want to thank Neo Performance Materials and its partners."

Ursula von der Leyen, president of the European Commission, said: "Operational since May and formally inaugurated yesterday, this magnet manufacturing facility is a milestone truly worth celebrating. The future will be made in Europe. Neo Performance Materials and Narva are proof of this."

Raffaele Fitto, executive vice-president of the European Commission, said: "Magnets are crucial for Europe's future. They power electric vehicles, wind turbines and microelectronics. Now, Neo's first facility in Narva will satisfy up to 15 per cent of the EU's demand for these magnets."

Rahim Suleman, president and chief executive officer of Neo Performance Materials, said: "Today marks a historic milestone for Neo and a pivotal moment for the global rare earth industry. This facility is built on Neo's three decades of experience in magnetic materials and demonstrates our unwavering commitment to our customers in the electric vehicle and wind energy sectors. We are immensely grateful for the partnership of the Estonian government and the European Commission, whose vision and support have been instrumental in bringing this project to life."

Completed in 500 days, Neo's new state-of-the-art facility is already producing and shipping qualification sample magnets to meet contract obligations for automotive platforms it has been awarded and for numerous coming programs. The European facility has already secured contracts for traction motor magnets -- widely regarded as the most technically demanding product category -- and has expanded its product offerings to non-traction-motor applications as demand for local supply chains has increased.

On Sept. 19, 2025, Neo announced the extension of its strategic partnership with Robert Bosch GmbH through a multiyear memorandum of understanding. This agreement reserves annual magnet production capacity for Bosch, ensuring a stable supply chain and fostering localized production through competition and innovation.

Co-funded by the European Union's Just Transition Fund, the facility is projected to produce 2,000 metric tonnes per year of magnets in its first phase (1A), with plans to scale to over 5,000 mt per year in phase 1B. Through its bonded magnetic materials business, Neo has long been a designer and supplier of rare earth magnetic products for electric vehicle and plug-in hybrid electric vehicle traction motors, including pioneering the first commercialized heavy-rare-earth-free magnetic powder used in current EV motors, as well as other automotive and industrial applications. Neo has a broad customer base of some of the largest motor manufacturers in the world.

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, rare earth magnets, magnetic assemblies, specialty chemicals, metals and alloys -- are critical to the performance of many everyday products and emerging technologies. Neo's products fast-forward technologies for the net-zero transition. 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 manufacturing facilities located in China, Germany, Canada, Estonia, Thailand and the United Kingdom, as well as a dedicated research and development centre in Singapore.

We seek Safe Harbor.