Mr. Spencer Huh reports

Neo BATTERY'S SILICON BATTERY OUTPERFORMS IN LONG-TERM CAPACITY PERFORMANCE & PREPARES FOR LARGE-SCALE BATTERY TESTING

Neo Battery Materials Ltd. has noted that (i) the company's advanced silicon battery, P-300N, has outperformed target metrics for long-term capacity testing, (ii) Dr. Jun Sik Jeoung's full-time hiring as senior vice-president to prepare large-scale battery testing and production expansion, and (iii) the voting results of the 2025 annual general and special meeting.

• P-300N: advanced silicon battery achieved over 90-per-cent capacity retention at 300 cycles in full cell:
  • Surpasses targeted performance of 80-per-cent retention at 300 cycles;
  • One of most stable, low-cost materials in global battery supply chain.
• Dr. J.S. Jeoung commits full-time as senior vice-president of commercialization and cell development:
  • Previous experience in achieving commercial-standard performance for silicon battery.
• Initiated battery cell design for P-300N long-term performance testing in large-scale battery formats;
• Secured and installing expansion equipment to fulfill elevated P-300N sample requests from global downstream partners.

P-300N: outperformance in long-term battery capacity testing

Neo surpassed performance objectives for long-term capacity stability testing with its advanced silicon battery prototype, P-300N, introduced in March, 2025. The P-300N high-stability variant exhibited over 90-per-cent capacity retention for 300 cycles in the coin full cell format, exceeding the target set at 80-per-cent retention given the same cycle frequency. Within the global supply chain, the results establish P-300N as one of the most stable silicon battery materials utilizing metallurgical silicon (MG-Si) -- the lowest-cost silicon input available for battery-grade applications.

In recognition of the potential demonstrated by Neo and to lead scaling efforts, Dr. J.S. Jeoung has committed to a full-time position as senior vice-president of commercialization and cell development. With over 17 years of battery expertise from Samsung SDI and leading automotive companies, Dr. Jeoung has previously optimized silicon battery materials to achieve commercial-standard performance of 1,000 cycles at 80-per-cent capacity retention in large-scale battery cells.

Positive P-300N results now allow Neo to proceed toward large-cell format testing. Dr. Jeoung and the engineering team have initiated the battery cell design and architecture of single-layer pouch cells. Single-layer pouch cells will involve long-term battery performance tests of 500-plus cycles to optimize interactions between P-300N, graphite anodes and various cathode materials.

To prepare concurrently for near-commercial, multilayer cell testing, the company is in active discussions with battery prototypers and global manufacturers in South Korea, the United States and Germany. Multilayer cell manufacturing will be outsourced due to the need for specialized equipment. Additionally, Ricky Lee, a 35-year battery industry veteran and lead managerial adviser, will co-operate with Dr. Jeoung to facilitate Neo's large-scale testing and commercialization strategy for downstream qualifications.

To fulfill the elevated requests from global downstream partners, the company has secured all posttreatment equipment, and installation is nearing completion at the R&D (research and development) scale-up centre. Streamlined production parameters and performance milestones have further led to the decision of adding a key manufacturing unit to expand overall capacity. This high-specification machinery will enhance quality levels due to higher precision control and efficient MG-Si processing.

2025 annual general and special meeting results

The company is pleased to provide the voting results of the company's annual general and special meeting held on June 4, 2025. All resolutions furnished in the management information circular dated April 22, 2025, were carried and duly authorized and approved by shareholders.

Out of the outstanding voting securities of 119,157,756 as of the record date of April 15, 2025, the securities represented by management proxies and the total securities represented at the meeting were 10,971,844 or 9.21 per cent, representing a quorum.

The details of the voting results are included in the report of voting results and will be available on the company's website and on SEDAR+.

About Neo Battery Materials Ltd.

Neo Battery Materials is a Canadian battery materials technology company focused on developing silicon anode materials for lithium-ion batteries in electric vehicles, electronics and energy storage systems. With a patent-protected, low-cost manufacturing process, Neo Battery enables longer-running and ultrafast charging batteries compared to existing state-of-the-art technologies. The company aims to be a globally leading producer of silicon anode materials for the electric vehicle and energy storage industries.

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