Neo Battery Materials arranges $5-million financing

Mr. Spencer Huh reports NEO BATTERY ANNOUNCES NON-BROKERED PRIVATE PLACEMENT OFFERING FOR BUILDOUT OF HIGH-PERFORMANCE BATTERY MANUFACTURING FACILITIES Neo Battery Materials Ltd. has arranged a non-brokered private placement of up to approximately 9,803,921 units at a price of 51 cents per unit for aggregate gross proceeds of up to approximately $5-million. Each unit consists of one common share of the company and one non-transferable common share purchase warrant. Each whole warrant will be exercisable to acquire one common share of the company at an exercise price of 80 cents for a period of 36 months from the closing date of the offering. The company may compensate certain eligible finders under the offering, and may pay a cash commission of up to 6 per cent of the gross proceeds and issue such a number of finders' options of up to 6 per cent of the total number of units issued. The net proceeds of the offering are expected to be allocated toward: (i) procuring cylindrical and prismatic-format battery manufacturing equipment and other relevant installations for the recently announced 3.2-acre expansion site; and (ii) working capital and general corporate overhead. The units under the offering are being offered to purchasers outside of Canada pursuant to an exemption from the prospectus requirement available under Section 2.3 of Ontario Securities Commission Rule 72-503, Distributions Outside Canada, and accordingly, the securities issued pursuant to OSC 72-503 will not be subject to resale restrictions. The offering is not a related party transaction as defined by Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, and therefore is not subject to TSX Venture Exchange Policy 5.9. The offering is subject to final acceptance of the TSX-V. About Neo Battery Materials Ltd. Neo Battery Materials is a Canadian battery materials technology company focused on developing silicon anode materials for lithium-ion batteries in electric vehicles, electronics and energy storage systems. With a patent-protected, low-cost manufacturing process, Neo Battery enables longer-running and ultrafast-charging batteries compared with existing state-of-the-art technologies. The company aims to be a globally leading producer of silicon anode materials for the electric vehicle and energy storage industries. We seek Safe Harbor.