Mr. Spencer Huh reports

NEO BATTERY CLOSES NON-BROKERED LIFE OFFERING OF UNITS

Neo Battery Materials Ltd. has closed its previously announced non-brokered private placement offering pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 -- Prospectus Exemptions, as amended, as announced on Aug. 4, 2026, and as amended on Aug. 7, 2026.

Pursuant to the LIFE offering, the company issued 20 million units of the company at a price of 20 cents per unit for aggregate gross proceeds of $4-million. Each unit consists of one common share of the company and one non-transferable common share purchase warrant, with each warrant entitling the holder thereof to acquire one common share at a price of 30 cents per common share for a period of 36 months from the closing date of the LIFE offering or until Aug. 14, 2029.

The net proceeds from the LIFE offering are expected to be used to advance the company's commercial battery manufacturing operations in South Korea, including the installation of additional cell assembly equipment at its 3.2-acre battery expansion factory, to advance the performance, qualification and production of the company's drone and robotics battery cells and packs, and for general working capital.

The units were offered to purchasers resident in all provinces and territories of Canada pursuant to the listed issuer financing exemption and in certain offshore jurisdictions pursuant to available prospectus or registration exemptions in accordance with applicable laws. Subject to the rules and policies of the TSX Venture Exchange, the securities issued under the LIFE offering are not subject to resale restrictions in accordance with applicable Canadian securities laws. The LIFE offering remains subject to the final approval of the TSX Venture Exchange.

In connection with the LIFE offering, the company paid aggregate cash commissions of $25,680 and issued an aggregate of 128,400 non-transferable finders' warrants to certain eligible finders. Each finder's warrant is exercisable to acquire one common share at a price of 20 cents per common share for a period of 36 months following the closing of the LIFE offering. In accordance with applicable Canadian securities law, the finders' warrants are subject to a four-month-and-one-day hold period, which will expire on Dec. 15, 2026.

There is an amended and restated offering document related to the LIFE offering that can be accessed under the company's profile at SEDAR+ and on the company's website.

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 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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