NEO Battery to Develop & Deploy High-Performance Battery Technology with Korean Army's Capital Mechanized Infantry Division

• Joint battery technology development with the ROK Army's Capital Mechanized Infantry Division for high-performance military drone and unmanned systems applications
• Direct deployment of NEO's high-energy batteries into division's drone platforms for operator training and field use/validation
• Multi-engagement strategy with diverse units to support penetration of battery supply into higher-level military command of ROK Army and Ministry of National Defense

TORONTO, April 22, 2026 /CNW/ - NEO Battery Materials Ltd. ("NEO" or the "Company") (TSXV: NBM) (OTC: NBMFF), a low-cost, silicon-enhanced battery developer that enables longer-running, rapid-charging batteries for drones, robotics, and physical AI, is pleased to enter into a defense technology partnership agreement (the "Agreement") with the Republic of Korea ("ROK") Army's Capital Mechanized Infantry Division – an elite armoured combat unit tasked with defending the capital and conducting counter-offensive missions against North Korean threats.

Through the partnership, NEO and the Capital Mechanized Infantry Division will jointly develop high-energy, high-power battery technologies for military drones and unmanned systems. Subsequently, the Capital Mechanized Infantry Division intends to deploy the Company's high-performance batteries directly to the division's drone platforms for operator training and field use. Along with the 12^th Infantry Division, this active integration into a mechanized combat environment will impose strenuous, dynamic power requirements on drones and unmanned systems due to rapid maneuvers and multi-domain operations. The Company expects to use this field validation to serve as a replicable commercial deployment model for broader ROK Army and allied defense forces.

Major General Seong-gu Kim, Commander of the Capital Mechanized Infantry Division, commented, "Innovation of South Korea's defense technology is highly dependent on the depth of collaboration between military and domestic industry. With the gradual implementation of autonomous solutions, high-performance, Korea-made batteries are no longer solely a procurement consideration but a national security priority. The Capital Mechanized Infantry Division is pleased to initiate work with NEO Battery to advance this priority through close operational integration."

"With active defense collaboration spanning institutional, infantry, and mechanized units, NEO is building a diversified operational presence across multiple unit types and commands," stated Mr. Spencer Huh, President & CEO of NEO. "The Company will use this multi-engagement strategy as groundwork to penetrate battery supply relationships with higher echelons of command in the ROK Army and, ultimately, the Ministry of National Defense. These organizations' procurement decisions will carry broader deployment scale and volume implications for NEO."

About the ROK Army's Capital Mechanized Infantry Division

The ROK Army's Capital Mechanized Infantry Division, known as the Maengho Budae or Fierce Tiger Division, is one of Korea's most decorated and battle-tested combat units. Established during the Korean War, the division earned distinction for its service during the Vietnam War and has since evolved into one of the ROK Army's premier armoured units. The Division plays a central role in the ROK Army's combined arms operations and the utilization of armored vehicles, self-propelled artillery, and increasingly, drone and unmanned systems into its operational framework.

About NEO Battery Materials Ltd.

NEO Battery Materials is a Canadian-South Korean battery technology company focused on developing and producing silicon-enhanced lithium-ion batteries in drones, robotics, physical AI, electric vehicles, and energy storage systems. With a patent-protected, low-cost silicon manufacturing process, NEO Battery enables longer-running and ultra-fast charging properties and provides end-to-end battery solutions from materials selection, cell architecture, and process optimization. The Company aims to be a globally-leading producer of high-performance lithium-ion batteries and materials, building a secure, robust battery supply chain for Western manufacturers. For more information, please visit the Company's website at: https://www.neobatterymaterials.com/.

On Behalf of the Board of Directors
Spencer Huh
Director, President, and CEO

This news release includes certain forward-looking statements as well as management's objectives, strategies, beliefs and intentions. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Generally, such forward-looking information can be identified notably by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: volatile stock prices; the general global markets and economic conditions; the possibility of write-downs and impairments; the risk associated with the research and development of battery-related technologies; the risk associated with the effectiveness and feasibility of battery material, electrode, and cell technologies that have not yet been tested or proven on commercial scale or under real-world operating conditions; the risks associated with battery-related manufacturing process scale-up, including maintaining consistent material, component, and cell quality, production yields, and process reproducibility at a pilot, semi-commercial, or commercial scale; the risks associated with compatibility of existing battery chemistries, formulations, components, or designs; unforeseen risks associated with entering into and maintaining collaborations, joint ventures, partnerships, or commercial contracts with battery cell manufacturers, original equipment manufacturers, and various companies in the global battery and downstream end-user supply chain; the risks associated with the failure to develop and produce commercially viable battery-related products or that technical goals may not be achieved within expected timelines or budgets under a joint development or collaboration; the risks associated with the Company's technologies and products not meeting performance requirements or customer specifications; the risks that prototype and pilot-scale products do not advance into commercially produced products or translate into commercial orders; the risk associated with battery components and cell purchase orders and offtake supply that may not be fulfilled in full, on time, or at all as actual revenue realization depends on delivery schedules, achievement of technical milestones, and customer acceptance and validation; the risk associated with losing official vendor registration or status with existing customers; counterparty risk upon delivery of prototype and commercial products; the risks associated with constructing, completing, securing, and financing pilot, semi-commercial, and commercial battery materials, components, and cell manufacturing facilities including the Canadian and South Korean facilities; the risks associated with potential delays or increased costs with site preparation, equipment procurement and installation, and facility commissioning; the risks associated with integrating silicon anode material production, electrode manufacturing, and cell assembly within a single operational cluster or the Company's business portfolio; the risks associated with supply chain disruptions or cost fluctuations in raw materials, processing chemicals, and additive prices, impacting production costs and commercial viability; the risks associated with uninsurable risks arising during the course of research, development and production; competition faced by the Company in securing experienced personnel, contracts and sales, and financing; access to adequate infrastructure and resources to support battery materials, components, and cell research and development activities; the risks associated with changes in the technology regulatory regime governing the Company; the risks associated with the timely execution of the Company's strategies and business plans; the risks associated with the lithium-ion battery industry and end-users' demand and adoption of the Company's silicon anode technology and battery products; market adoption and integration challenges, including the difficulty of incorporating silicon anodes and silicon battery products within battery manufacturers and OEMs' systems; the risks associated with the various environmental and political regulations the Company is subject to; risks related to regulatory and permitting delays; the reliance on key personnel; liquidity risks; the risk of litigation; risk management; and other risk factors as identified in the Company's recent Financial Statements and MD&A and in recent securities filings for the Company which are available on www.sedarplus.ca. Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued R&D and commercialization activities, no material adverse change in precursor, raw material, equipment, and relevant cost prices, development and commercialization plans to proceed in accordance with plans and such plans to achieve their stated expected outcomes, receipt of required regulatory approvals, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Such forward-looking information has been provided for the purpose of assisting investors in understanding the Company's business, operations, research and development, and commercialization plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is made as of the date of this presentation, and the Company does not undertake to update such forward-looking information except in accordance with applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE NEO Battery Materials Ltd.

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