Ms. Irina Kuznetsova reports

NEO PROVIDES UPDATE ON THE SALE OF ITS MAJORITY EQUITY INTEREST IN CHINA RARE EARTH SEPARATION ASSETS

The closing of the sale of Neo Performance Materials Inc.'s: (i) 86-per-cent equity interest in Jiangyin Jiahua Advanced Material Resources Co. Ltd. (JAMR) to Shenghe Resources Holding Co. Ltd. for approximately $25.6-million (U.S.) cash; and (ii) 100 per cent of the equity in Zibo Jiahua Advanced Material Resources Co. Ltd. (ZAMR) to Shenghe for approximately $4.1-million (U.S.) cash is now expected to occur in Q1 2025, as opposed to Q4 2024, as was anticipated at the time the transactions were announced in August, 2024.

The delay in the timing for closing of the sale of Neo's interest in JAMR and ZAMR is related to the satisfaction of various local jurisdictional, administrative filings, registrations and approvals, and the parties anticipate receiving all required regulatory approvals from Chinese regulatory authorities and satisfying the applicable closing conditions to the transactions in Q1 2025. In furtherance of the foregoing, Neo is in continuing discussions with Shenghe regarding the transactions and the parties are working constructively to be responsive to commentary from applicable regulatory authorities with a view to obtaining all required regulatory approvals and satisfying the applicable closing conditions as soon as practicable in Q1 2025.

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. Neo's business is organized into three segments: Magnequench, Chemicals & 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, Thailand and the United Kingdom as well as one dedicated research and development centre in Singapore.

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