Mr. Rahim Suleman reports

NEO PERFORMANCE MATERIALS ANNOUNCES NORMAL COURSE ISSUER BID AND AUTOMATIC PURCHASE PLAN FOR ITS COMMON SHARES, AND COMMENCES TRADING ON THE OTCQX MARKET

The Toronto Stock Exchange has accepted a notice filed by Neo Performance Materials Inc. of its intention to make a normal course issuer bid for up to 3,297,296 of its issued and outstanding common shares. In connection with the bid, the company has entered into an automatic share purchase plan with its designated broker to allow for purchases of its shares.

Purchases of shares under the bid may commence on June 11, 2025, and will terminate on June 10, 2026, or on such earlier date as the bid is complete. Purchases of shares will be made through the facilities of the TSX or alternative Canadian trading systems in accordance with its rules or through the share purchase plan. Under the share purchase plan, purchases may be made in the open market through the facilities of the TSX or alternative Canadian trading systems. Purchases under the share purchase plan will be determined by Neo's broker in its sole discretion, without consultation with the company, subject to the limitations of the share purchase plan and the rules of the TSX. The share purchase plan is considered an automatic plan for purposes of applicable Canadian securities laws and has been reviewed by the TSX. The share purchase plan was established to provide standard instructions regarding how the shares are to be purchased under the bid. Accordingly, Neo may purchase its shares in accordance with the share purchase plan on any trading day during the bid, including during self-imposed trading blackout periods. The company may otherwise vary, suspend or terminate the share purchase plan only if it does not have material non-public information, the decision to vary, suspend or terminate the share purchase plan is not taken during a self-imposed trading blackout period and any variation, suspension or termination is made in accordance with the terms of the share purchase plan.

The average daily trading volume (ADTV) of the shares for the previous six calendar months ended May 30, 2025, was 96,158 shares. On any trading day, purchases under the bid will not exceed 24,039 shares. The price that the company will pay for any shares purchased under the bid will be the prevailing market price at the time of purchase. Any shares purchased by the company will be cancelled.

As of May 30, 2025, there were 41,824,499 shares issued and outstanding. The 3,297,296 shares that may be repurchased under the bid represent approximately 10 per cent of the public float of shares (as determined in accordance with the policies of the TSX) on May 30, 2025.

Neo believes that its shares have been trading in a price range that does not adequately reflect the value of such shares in relation to the business of Neo and its future business prospects. As a result, depending upon future price movements and other factors, Neo believes that its outstanding shares may represent an attractive investment to Neo. Furthermore, the purchases are expected to benefit all persons who continue to hold shares by increasing their equity interest in Neo.

Pursuant to a previous notice of intention to conduct a normal course issuer bid, under which the company received approval from the TSX to purchase up to 3,585,011 common shares for the period from June 19, 2023, to June 18, 2024, the company purchased an aggregate of 3,585,011 common shares on the open market at a volume average price of $7.91 per share.

Trading commences on the OTCQX market

Neo announces that, effective today, the company's common shares will commence trading on the OTCQX Best Market under the symbol NOPMF. Neo maintains its primary listing on the TSX under the symbol NEO.

The OTCQX Best Market is the highest-level market of OTC Markets on which 12,000 U.S. and global securities trade. Trading on OTCQX is expected to enhance the visibility and accessibility of Neo's common shares to U.S. investors. U.S. investors can find current financial disclosure and real-time Level 2 quotes for Neo on the OTC Markets website.

Neo's chief executive officer, Rahim Suleman, said: "We are pleased to begin trading on OTCQX, which enhances Neo's visibility and accessibility for U.S. investors. As a global leader in advanced rare earth materials, with a strong balance sheet and a growing magnetics business in Europe, we are well positioned to support the accelerating demand for critical materials in electrification and other modern technologies. Trading on OTCQX provides an additional platform to broaden our shareholder base as we continue to execute on our strategic priorities and drive long-term value."

Admission to OTCQX requires companies to meet high financial standards, follow best practices in corporate governance and demonstrate compliance with applicable securities laws, all of which align with Neo's continuing commitment to transparency and strong corporate stewardship.

About Neo Performance Materials Inc.

Neo manufactures the building blocks of many modern technologies that enhance efficiency and sustainability. Neo's advanced industrial materials -- magnetic powders, rare earth magnets, magnetic assemblies, specialty chemicals, metals and alloys -- are critical to the performance of many everyday products and emerging technologies. Neo's products fast-forward technologies for the net-zero transition. The business of Neo is organized along three segments: Magnequench, Chemicals & Oxides, and Rare Metals. Neo is headquartered in Toronto, Ont., Canada, with corporate offices in Greenwood Village, Colo., United States; Singapore; and Beijing, China. Neo has a global platform that includes manufacturing facilities in Canada, China, Estonia, Germany, Thailand and the United Kingdom as well as a dedicated research and development centre in Singapore.

We seek Safe Harbor.