Mr. Jonathan Baksh reports

NEO PERFORMANCE MATERIALS REACHES SETTLEMENT IN EUROPEAN PATENT LITIGATION

Neo Performance Materials Inc.'s wholly owned subsidiaries, Neo Chemicals & Oxides (Europe) Ltd., NPM Silmet OU and NPM C&O Europe OU, have entered into a settlement agreement with Rhodia Operations SAS to resolve the outstanding litigation related to certain European patents.

The settlement relates to the German designation of the following European patents:

• EP 0 735 984 B1;
• EP 0 605 274 B1;
• EP 0 863 846 B1;
• EP 0 955 267 B1;
• EP 1 527 018 B1;
• EP 2 007 682 B1;
• EP 2 523 907 B1;
• EP 1 435 338 B1;
• EP 3 009 403 B1 (the Estonian designation is also included).

Under the terms of the agreement, Neo will make an aggregate cash payment of 7.1 million euros to be paid to Rhodia in the first quarter of 2026. All parties have agreed to a mutual release of claims and to withdraw outstanding court proceedings related to these patents.

All of the patents subject to the settlement, other than EP 682, have expired. In addition, the settlement amount is not materially different from the amount previously accrued by Neo in its financial statements. As a result, Neo does not expect the settlement to limit the company's continuing sales of its current automotive catalyst products or materially affect its earnings.

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

We seek Safe Harbor.