Mr. Spencer Huh reports

NEO BATTERY ANNOUNCES NON-BROKERED PRIVATE PLACEMENT OFFERING

Neo Battery Materials Ltd. has arranged a non-brokered private placement of up to approximately 11,666,667 units at a price of 60 cents per unit for aggregate gross proceeds of up to approximately $7-million.

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 85 cents for a period of 36 months from the closing date of the offering. The company may compensate certain eligible finders under the offering and may pay a cash commission of up to 6 per cent of the gross proceeds and issue such a number of finders' options of up to 6 per cent of the total number of units issued.

The net proceeds of the offering are intended to be used toward (i) installing additional battery manufacturing equipment, including formation and cylindrical/prismatic cell assembly, at the operational Gimje battery factory and the expansion site; and (ii) general working capital purposes.

The units under the offering are being offered to purchasers outside of Canada pursuant to an exemption from the prospectus requirement available under Section 2.3 of Ontario Securities Commission Rule 72-503 -- Distributions Outside Canada (OSC 72-503), 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-V 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 technology company focused on developing and producing silicon-enhanced lithium-ion batteries in drones, unmanned aerial vehicles (UAV), robotics, unmanned systems, electronics, electric vehicles and energy storage systems for AI data centres. With a patent-protected, low-cost manufacturing process, Neo Battery enables longer-running and ultrafast charging batteries, 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 battery components and materials, building a secure, robust battery supply chain in North America.

We seek Safe Harbor.