Mr. Spencer Huh reports

NEO BATTERY SECURES CAD 392K PURCHASE ORDER FROM FORTUNE 500 AUTOMOTIVE OEM & RECEIVES UN CERTIFICATION

Neo Battery Materials Ltd. has secured a purchase order agreement valued at approximately $392,000 ($280,000 (U.S.)) from its existing North American Fortune 500 automotive OEM (original equipment manufacturer) customer. The order represents one of the largest contracts awarded to date within Neo's foundry manufacturing portfolio.

• Secured $392,000 purchase order contract from North American Fortune 500 automotive OEM customer;
• One of largest foundry contracts awarded to date following months of manufacturing and qualitative validation through past and existing projects;
• Received UN 38.3 certification for 11.5 Ah (ampere-hours) drone battery product to enable international shipping to United States, Ukraine, Canada and Europe;
• Increased volume of customer pipeline in various downstream verticals along with proprietary chemistries including 100-per-cent silicon, lithium-metal and sodium-ion batteries.

The purchase order follows several months of validation of Neo's battery manufacturing quality, operational efficiency, and cost competitiveness through past and existing projects undertaken with the customer. Under its foundry model for automotive applications, Neo produces full battery cells according to customer-defined specifications and resolves process bottlenecks in advanced development projects for next-generation electric vehicle models. From small-scale evaluation to this purchase order contract, the progress attests to the company's engineering and production capabilities, and Neo will continue to collaborate on larger-volume orders/projects with the customer.

Within the drone and defence portfolio, Neo has received UN 38.3 certification for its 11.5 Ah cell product following the Korea certification under the KC 62133-2 standard. UN 38.3 is a mandatory safety certification to enable shipping lithium-ion batteries by air, sea and land across most jurisdictions. With the certification in place, Neo has established schedules to actively ship the 11.5 Ah product internationally for sampling and commercial validation with drone, defence and aerospace customers in the United States, Ukraine, Canada and Europe.

"Neo is steadily yet successfully proving out our foundry capability with Tier 1 customers and expanding manufacturing capacity at the second cell assembly facility to accommodate contract manufacturing demand in the subsequent years," expressed S.J. Youn, head of manufacturing and facility operations of Neo. "Due to our flexible manufacturing model, we have increased the volume of our customer pipeline to service various downstream applications and chemistries that include 100-per-cent silicon, lithium-metal and sodium-ion batteries. With our defence drone portfolio, we aim to receive more UN certifications for different battery models and aggressively manufacture products with the main objective of converting sample evaluation to larger-magnitude, long-term orders."

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.

We seek Safe Harbor.