Neo Battery increases financing, appoints advisers

Mr. Spencer Huh reports NEO BATTERY MATERIALS UPSIZES PRIVATE PLACEMENT TO $5.5 MILLION & APPOINTS KOREAN ADMIRAL AND MAJOR GENERAL TO STRENGTHEN DEFENSE-RELATED CAPABILITIES Neo Battery Materials Ltd., due to strong demand from institutional and strategic investors, has upsized its previously announced non-brokered private placement for aggregate gross proceeds of $4-million to approximately $5.5-million. The upsized offering will comprise the sale of up to 10,784,313 units at a price of 51 cents per unit. Neo is further pleased to appoint strategic defence advisers -- four-star Admiral Seung-Sub Shim (retired), former chief of naval operations of the Republic of Korea (ROK) Navy, and two-star Major-General Geun-Young Choi (retired), former commander of air defence and control of the ROK Air Force. Both advisers will pro-actively provide strategic guidance on military/defence procurement and align Neo's battery development efforts with advanced defence platforms, including drones, unmanned aerial systems (UAS), unmanned underwater vehicles (UUV) and other mobility applications. Upsized non-brokered private placement offering Apart from the upsizing of the offering due to strong institutional and strategic investor demand, all other terms and details of the non-brokered private placement remain consistent with the disclosure provided in the company's news release dated Sept. 22, 2025, entitled "Neo Battery Enters into LOI for Operational Battery Component Manufacturing Facility Lease and Announces Non-Brokered Private Placement Offering." The offering is expected to close on or around Sept. 25, 2025. The company has received conditional acceptance from the TSX Venture Exchange and the offering is subject to certain customary conditions, including, but not limited to, the receipt all necessary approvals, including the final acceptance by the TSX-V. Strategic defence advisers: Adm. Shim and Major-Gen. Choi As Neo advances its silicon-enhanced, high performance battery solutions for defence applications, the appointment of these distinguished leaders provides the company with access to valuable expertise in the defence sector. Their combined experience in the military, academia and diplomacy will enable strategic guidance and key network introductions for engaging defence/military stakeholders and navigating defense procurement processes. Their advisory roles will help ensure that Neo's high performance battery solutions meet the stringent requirements of military and defence applications, including extended mission operability, robust safety standards and high performance durability. Two-star Major-Gen. Choi of the Korean Air Force (retired) is a highly decorated fighter pilot and senior officer who has spent 20 years protecting South Korea's territorial airspace. In addition to operational command, Major-Gen. Choi held critical positions that have shaped the long-term development of the Korean Air Force, including air force strategy, aerospace power structure and defence procurement. During his tenure, he directly managed new weapons introduction and defence system improvements through cooperation with the Defense Acquisition Program Administration (DAPA), South Korea's central administrative agency for defence procurement and the introduction/development of military equipment. Major-Gen. Choi has also served as commander of the air mobility and reconnaissance, air defence and control, and air force education and training. Since retiring in 2020, he has further served as a standing auditor for the Military Mutual Aid Association. Four-star Adm. Shim of the Korean Navy (retired) has served as the chief of naval operations, spending a 35-year illustrious military career overseeing naval strategy, intelligence and readiness at the highest levels of command. His prior roles included commander of the ROK First Fleet, director of intelligence and operations of Naval Headquarters, and director general of strategic planning of the Joint Chiefs of Staff (JCS). Following his naval career, Adm. Shim served as the Ambassador of South Korea to Australia, where he was appointed to strengthen bilateral military and defence industry co-operation, and to expand Korea's defence equipment and technology exports. About Neo Battery Materials Ltd. Neo Battery Materials is a Canadian battery technology company focused on developing and producing silicon-enhanced lithium-ion batteries in drones, unmanned aerial vehicles (UAV), robotics, unmanned systems, electronics, electric vehicles and energy storage systems for artificial intelligence (AI) data centres. With a patent-protected, low-cost manufacturing process, Neo Battery enables longer-running and ultrafast-charging batteries, and provides end-to-end battery solutions from materials selection, cell architecture and process optimization. The company aims to be a globally leading producer of high performance lithium-ion battery components and materials, building a secure, robust battery supply chain in North America. We seek Safe Harbor.