Mr. Spencer Huh reports

NEO BATTERY ENTERS PARTNERSHIP WITH LEADING JAPANESE DRONE COMPANY FOR HIGH-PERFORMANCE BATTERY MANUFACTURING

Neo Battery Materials Ltd. has entered into a partnership through a letter of intent (LOI) with a leading Japanese drone manufacturer, Liberaware Co. Ltd., and its subsidiary Hinotate Co. Ltd. to jointly innovate on high performance drone products and to evaluate the establishment of a drone battery manufacturing facility in Japan.

• Partnership via LOI with leading Japanese drone manufacturer that serves major infrastructure operators such as East Japan Railway Co. and West Japan Railway Co.
• Joint innovation on Liberaware & Hinotate's unmanned aerial systems through Neo's high performance battery technology and manufacturing solution.
• Evaluate potential JV/SPV (joint venture/special purpose vehicle) structure to establish Japanese drone battery manufacturing facility to strengthen Japan's sovereign drone supply chain capabilities.

The collaboration involves jointly optimizing Liberaware and Hinotate's unmanned aerial system (UAS) platforms by integrating Neo's battery technology and manufacturing expertise. As battery performance directly affects flight time, range and payload capacity, the company's cells, packs and battery management system (BMS) solutions are intended to enhance operational capabilities and reliability in confined, GPS-denied environments. By developing the battery, airframe and relevant components as an integrated system, the parties aim to strengthen the Japan sovereign UAS platform and provide robust supply to the Liberaware group and additional Japanese and global drone manufacturers.

Under the LOI, Neo, Liberaware and Hinotate will evaluate Neo's electrode and battery manufacturing capabilities in South Korea to establish production facilities for cell and pack assembly, testing, and quality control at an agreed site in Japan. The parties will jointly analyze and conduct feasibility assessments for capacity, local procurement and supply chain, quality certification, and the investment and governance of a potential joint venture or special-purpose vehicle structure. The LOI is effective for three years and does not contain materially binding terms. Specific investment, production and supply terms will be determined following assessments and execution of definitive agreements.

Liberaware develops drone and UAS platforms specialized for inspection and surveillance in confined, hazardous environments, such as emergency response, disaster management and critical infrastructure maintenance. Liberaware currently serves and collaborates with major infrastructure operators across Japan, including West Japan Railway Co., East Japan Railway Co., Central Japan Railway Co., Kyushu Railway Co. and Seibu Holdings. Recently, Liberaware's IBIS2 drones were deployed for disaster inspection inside the Aeon Mall and the Nippon Paper Yatsushiro mill after the Kumamoto earthquake.

"Neo is pro-actively expanding to support and integrate into the Japanese market, where demand for reliable, locally manufactured drone components continues to grow under the Japan sovereign UAS platform," said Spencer Huh, chief executive officer of Neo. "As a long-term strategy, partnering with a leading drone platform company provides a path to expand our manufacturing capacity through external resource and financial support and open accelerated access to Japan's defence ecosystem and the associated federal and municipal government funding."

About Liberaware Co. Ltd.

Liberaware's mission is to "create a society where safety is accessible to all." Liberaware develops leading, smallest-class drones specialized for inspection and measurement in confined, hazardous environments and provides infrastructure inspection and maintenance solutions by analyzing the image data collected by these drones and providing it to customers. Liberaware will continue to strive to "make invisible risks visible," and deliver a safe and peaceful society to people.

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 (artificial intelligence), electric vehicles and energy storage systems. With a patent-protected, low-cost silicon manufacturing process, Neo Battery enables longer-running and ultrafast 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.

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