Mr. Spencer Huh reports

NEO BATTERY MATERIALS ANNOUNCES CLOSING OF FIRST TRANCHE OF PRIVATE PLACEMENT

Neo Battery Materials Ltd. has closed the first tranche of a non-brokered private placement through the issuance of 400,000 units at a price of 50 cents per unit for aggregate gross proceeds of $200,000.

Each unit consists of one common share of the company and one non-transferable common share purchase warrant. Each whole warrant will be exercisable to acquire one common share of the company at an exercise price of 75 cents for a period of 24 months from the closing date of the offering. The use of proceeds will be allocated toward: (i) scaling up silicon battery research and development and production for large-scale battery manufacturing and testing; (ii) purchasing key manufacturing equipment; and (iii) financing working capital and general corporate overhead.

In connection with the offering, the company paid to the finders: (i) an aggregate cash commission of $14,000; and (ii) 28,000 non-transferable warrants of the company exercisable at an exercise price of 50 cents for a period of 24 months from the closing date of the offering. The units have been offered to purchasers outside of Canada pursuant to an exemption from the prospectus requirement available under Ontario Securities Commission Rule 72-503 (Distributions Outside Canada), and accordingly, the securities issued pursuant to OSC 72-503 will not be subject to resale restrictions. The offering is not a related-party transaction as defined by Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions) and, therefore, is not subject to TSX Venture Exchange Policy 5.9. The offering is subject to final acceptance of the TSX-V.

About Neo Battery Materials Ltd.

Neo Battery Materials is a Canadian battery material 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 with 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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