Mr. Rahim Suleman reports

NEO WINS ANOTHER TRACTION MOTOR AWARD WITH AN ADDITIONAL TIER 1 AND OEM CUSTOMER IN EUROPE

Neo Performance Materials Inc. has been awarded a supply contract for a new platform of permanent rare earth magnets with a prominent European Tier 1 supplier of electric vehicle (EV) traction motors to a major OEM (original equipment manufacturer). Both the Tier 1 and OEM represent new additions to Neo's growing customer base. This new commercial partnership further strengthens Neo's reputation as a preferred supplier to multiple automotive clients.

These magnets will be supplied by Neo's new rare earth magnet facility in Narva, Estonia, which is already producing and shipping qualification samples to meet contract obligations of automotive platforms it has been awarded. The project award is estimated to be approximately $50-million in cumulative revenues over the life of the project at current rare earth market prices, based on customer projections. Commercial delivery of the magnets is anticipated to begin in mid-2026 for this award.

Neo's new European facility is the first sintered magnet plant to come on-line outside Asia, with an explicit focus on European and North American electric vehicle, industrial power tooling and offshore wind customers. The facility has already been awarded multiple traction motor magnets -- widely regarded as the most technically demanding product category for sintered magnets for its high requirements in power and heat management. The facility has also expanded its product categories to non-traction-motor applications as demand for local supply chains has increased. Co-funded by the European Union's Just Transition Fund, this facility is projected to produce 2,000 tonnes per year in phase 1, with plans to scale to over 5,000 tonnes per year in phase 2. The official opening ceremony for this plant will be held in September of this year, the details of which will follow in the coming weeks.

Rahim Suleman, president and chief executive officer, said: "We welcome yet another commercial recognition from a new customer. What the team has accomplished in this new European rare earth permanent magnet facility is remarkable. The Neo team successfully built this magnet plant in just 500 days and is responding to growing demand from automotive customers with a sense of urgency, while staying grounded in our principles of responsible ramp-up curves for new plants. We are here for our customers and we are proud that they are recognizing us in return."

Through its bonded magnetic materials business, Neo has been a designer, manufacturer and supplier of rare earth magnetic products for EV and PHEV traction motors for years -- a highlight being the design of the first commercialized and supplied heavy-rare-earth-free magnetic powder in current NEV motors. Neo has been supplying rare earth magnetic products to the automotive and industrial motor industries for over three decades.

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., U.S., Singapore, and Beijing, China. Neo has a global platform that includes manufacturing facilities located in China, Germany, Canada, Estonia, Thailand and the United Kingdom, as well as a dedicated research and development centre in Singapore.

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