Mr. Rahim Suleman reports

NEO SUCCESSFULLY COMMISSIONS HEAVY RARE EARTH SEPARATION PRODUCTION LINE IN EUROPE

Neo Performance Materials Inc. has successfully commissioned its heavy rare-earth element (HREE) solvent extraction small-scale production line at its Silmet facility in Estonia. The solvent extraction line is operating at nameplate capacity, with efforts now focused on delivering stable product purity prior to transitioning to routine production capacity.

The operation has produced its first separated terbium and dysprosium process solutions, precursor products for metal making, from mixed rare earth carbonate feedstock, with all processing completed entirely in Europe. This achievement validates the technical robustness and operational reliability of the Silmet HREE solvent extraction line under continuous operating conditions and marks a significant milestone in establishing advanced heavy rare-earth separation capability in Europe.

Dysprosium and terbium are essential inputs for high performance sintered rare-earth permanent magnets used in robotics, electric-vehicle traction motors, wind turbines and industrial automation applications. By developing this separation capability at Silmet, Neo is advancing a secure, Europe-based supply of these critical materials to support its growing magnet manufacturing operations and to serve the broader strategic objectives of supply chain diversification.

"The successful launch of our heavy rare-earth separation at Estonia represents a critical step in Neo's strategy to build the most vertically integrated rare-earth magnetics value chain in Europe," said Rahim Suleman, president and chief executive officer of Neo. "Our rare-earth value chain now spans both light and heavy rare-earth processing, enabling the separation and finishing of select elements into value-added, engineered end-use applications. This achievement enables Neo to provide secure, traceable and high-quality heavy rare-earth materials to our European permanent magnet facility, supporting our customers' most demanding applications."

Today's announcement reflects Neo's commitment to build on its leadership in rare-earth magnetics and critical minerals and to expand its European processing capabilities. Neo's heavy rare-earth separation initiative complements its European permanent magnet facility in Estonia, which is advancing through customer qualification milestones, with commercial production expected to ramp later in 2026.

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 Canada, Estonia, China, Germany, Thailand and the United Kingdom, as well as a dedicated research and development centre in Singapore.

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