Mr. Rahim Suleman reports

PRESIDENT VON DER LEYEN PRESENTS NEO'S MADE-IN-EUROPE PERMANENT MAGNET TO G7 LEADERS' SUMMIT

Neo Performance Materials Inc.'s made-in-Europe permanent magnet, produced in Estonia, was showcased by European Commission president Ursula von der Leyen during the 2025 G7 Summit in Kananaskis, Alta. Neo is delivering on its commitment to its automotive customers by providing a localized supply chain for these critical materials. The company's magnets, manufactured in Estonia, are the first made-in-Europe magnets to meet the specifications of Tier 1 traction motor manufacturers and major automotive original equipment manufacturers (OEMs).

President von der Leyen said in a statement from the G7 2025: "I brought with me a permanent magnet. Not just any magnet -- this is a rare earth permanent magnet. It was manufactured in Estonia by a Canadian company using raw materials sourced from Australia, and supported by the EU's Just Transition Fund ... And where does it end up? In German and French electric vehicles and wind turbines. This small object tells a much-bigger story -- a story we are writing together."

Neo's president and chief executive officer, Rahim Suleman, said: "We thank president von der Leyen for highlighting our made-in-Europe magnet at the G7 Summit. Our new magnet facility marks a significant milestone for both Neo Performance Materials and the European automotive supply chain. Delivering this facility on time and on budget demonstrates that focus, innovation and industry collaboration are essential to overcoming today's supply-chain challenges."

Neo's new Estonia facility marks substantial progress in the global expansion of its magnetics operations. Phase 1 successfully implemented a multistep production process -- from raw materials to the final assembly of traction motor magnets. Phases 2, 3 and 4 are expected to drive further growth, with expanded operations in Estonia and new facilities planned in additional regions. These developments reflect Neo's technical expertise and operational capacity, supported by its experienced global team.

Backed by over 30 years of expertise in rare earth magnetics and advanced R&D (research and development) capabilities, Neo's new facility in Estonia represents a significant step in one of the key permanent magnet projects in Europe and globally. This initiative aims to scale magnet production across Europe and beyond, contributing to Neo's efforts to serve our customers with diversified supply chains for rare earth magnetics and other critical materials.

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 and 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 located in Canada, China, Estonia, Germany, Thailand and the United Kingdom, as well as a dedicated research and development centre in Singapore.

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