Mr. Rahim Suleman reports

NEO PERFORMANCE MATERIALS AND CYCLIC MATERIALS SIGN NON-BINDING MOU TO ADVANCE TRANS-ATLANTIC CIRCULAR RARE EARTH SUPPLY CHAIN

Neo Performance Materials Inc. and Cyclic Materials Inc. have signed a non-binding memorandum of understanding (MOU) to collaborate on the development of a circular, resilient and traceable rare earth value chain for magnetic materials supporting the global energy transition.

The collaboration is focused on establishing a closed-loop, trans-Atlantic supply chain that enables Cyclic's recycling of magnet production scrap and end-of-life magnet-bearing materials, with Cyclic's recovered rare earth elements reintegrated into Neo's alloy and magnet manufacturing. This supports Neo's production sites in Europe, aligning with the EU Critical Raw Materials Act objectives to increase rare earth processing and recycling capacity for rare earth magnetics.

"Canada and our partners are working together to build the secure and resilient critical mineral supply chains that our economies and industries rely on," said Hon. Tim Hodgson, Minister of Energy and Natural Resources. "By working with companies like Neo Performance Materials and Cyclic Materials, we are helping deliver the minerals the world needs and the prosperity and security Canadians deserve."

Statements attributed to government representatives are provided for contextual purposes and do not imply endorsement of any specific commercial arrangement.

Under the proposed framework, Neo intends to supply magnet production scrap from its European operations to Cyclic to be recycled into mixed rare earth oxides. Cyclic also intends to supply mixed rare earth oxides and related products that have been recycled from a combination of end-of-life and third party magnet manufacturing scrap to Neo. These Cyclic recycled products will have full traceability contributing to the circular supply chain and will serve as raw material inputs for Neo's downstream processing and magnet manufacturing operations.

"This MOU brings together complementary capabilities to advance circularity in rare earth magnet supply," said Rahim Suleman, president and chief executive officer of Neo. "By combining Neo's advanced magnet manufacturing platform with Cyclic's innovative recycling technology, we aim to help deliver secure, traceable and sustainable supply chains for our customers."

"This collaboration reflects a shared commitment to advance circularity and resilience of trans-Atlantic rare earth supply chains," said Ahmad Ghahreman, CEO and Founder of Cyclic Materials. "By integrating Cyclic's innovative recycling with Neo's established magnet manufacturing capabilities, we will enable a secure and traceable source of rare earth materials for North America and Europe."

The parties also intend to explore joint closed-loop opportunities with OEM (original equipmment manufacturer) and Tier 1 partners, enabling improved traceability from end-of-life products through to new electric motor and clean technology applications.

The MOU is non-binding and serves as a framework for further technical and commercial evaluation. Any binding commitments would be subject to the negotiation and execution of definitive agreements.

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., U.S., in Singapore and in Beijing, China. Neo has a global platform that includes manufacturing facilities located in Canada, Estonia, China, Germany, Thailand and the United Kingdom, as well as a dedicated research and development centre in Singapore.

About Cyclic Materials Inc.

Cyclic Materials, founded in 2021, is a cleantech company building a resilient supply chain for rare earth elements (REEs) and other critical materials through recycling of magnet-containing EOL. Its innovative technology transforms end-of-life products into valuable raw materials used in AI (artificial intelligence), robotics, defence and advanced manufacturing critical to the future of Western industry. With the success of its commercial demonstration and first successful shipments of very-high-quality recycled mixed rare earth oxides (rMREO) to customers, the company is scaling its cutting-edge technology to recover REEs from permanent magnets, leveraging its proprietary MagCycle and REEPure processes to feed strategic industries with secure supply of recycled rMREO. Cyclic Materials is scaling its footprint across North America, Europe and Asia, with Mesa, Ariz., hosting its first commercial-scale spoke facility, and Kingston, Ont., serving as a Centre of Excellence with R&D (research and development) facility and hub hydrometallurgical site. The company has also announced plans for its largest-to-date hub and spoke campus to be located in South Carolina. The company is expanding its REE recycling infrastructure globally to supply the surging demand for permanent magnets that power our modern world. In recognition of its pioneering work, the company was named Top 10 Climate Tech Companies to Watch by MIT Tech Review in 2025.

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