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Neo Announces the Completion of the Sale of its Quapaw, Oklahoma Rare Metals Facility

Mergers & Acquisitions

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Neo Announces the Completion of the Sale of its Quapaw, Oklahoma

Rare Metals Facility

TORONTO, Canada, December 31, 2024 – Neo Performance Materials Inc. ( "Neo" or the "Company")

(TSX:NEO) announced toda y that it has completed the sale of its equity ownership interest (the

"Transaction") in Neo Rare Metals (Oklahoma), LLC (" Quapaw") to Kevin Reading, the current General

Manager and co-founder of the facility (the "Purchaser").

The Purchaser acquired Neo's 80% equity interest in Quapaw for an aggregate cash purchase price equal to

US$1.5 million. The Transaction also includes a seven-year agreement wherein Quapaw will purchase

gallium from, and purchase and transfer gallium scrap to the Company's recycling facility in Peterborough,

Ontario (see press release dated August 6, 2024).

The completion of this Transaction marks a key step in Neo’s operational transformation, as the Company

continues to streamline its business globally and optimize its asset portfolio to support its long-term scale

and growth ambitions.

“With the completion of this sale, Neo is well positioned to reinforce our core operations to maximize

shareholder value,” said Rahim Suleman, President and Chief Executive Officer of Neo. “Mr. Reading has

been a valued partner, and we look forward to continuing our partnership with the entrepreneurial owner -

operator team at Quapaw.”

The Quapaw facility is a leading producer in North America of gallium trichloride, which is used in

applications such as LED lighting (white LED), lithium batteries, integrated circuit chips, and capacitors.

Cautionary Statements Regarding Forward-Looking Statements

This news release may contain "forward -looking information" within the meaning of applicable Canadian

securities legislation. Generally, but not always, forward -looking information and statements can be

identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates",

"forecasts", "intends", "anticipates", or "believes" or the negative connotation thereof or variations of such

words and phrases or state that certain actions, events or results "may", "could", "woul d", "might" or "will

be taken", "occur" or "be achieved" or the negative connotation thereof. Specific forward-looking

statements in this news release include, but are not limited to, the timing of completion of the Transaction

and matters relating thereto. In making the forward-looking information in this news release, the Company

has applied certain factors and assumptions that are based on its current beliefs as well as assumptions made

by and information currently available to the Company. Although the Company considers these

assumptions to be reasonable based on information currently available to it, they may prove to be incorrect,

and the forward-looking information in this release are subject to numerous risks, uncertainties and other

factors that may cause future results to differ materially from those expressed or implied in such forward -

looking information. There are many risk factors associated with the completion of the Transaction. A

number of factors could cause actual results to differ materi ally from those anticipated by the Company,

including but not limited to the risks and uncertainties inherent in the nature of the Transaction including

the failure to obtain necessary regulatory approvals, or to otherwise satisfy the conditions of the

Transaction, in a timely manner by the outside date or at all, risks of a material adverse change the

Company's assets or revenues, or risks of unknown liabilities that may arise.

Readers are cautioned not to place undue reliance on forward-looking information. The Company does not

intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking

information whether as a result of new information, future events or otherwise, except as required by law.

For more information on Neo, investors should review Neo's continuous disclosure filings that are available

under Neo's profile at www.sedarplus.ca.

About Neo Performance Materials

Neo manufactures the building blocks of many modern technologies that enhance efficiency and

sustainability. Neo's advanced industrial materials - magnetic powders and magnets, specialty chemicals,

metals, and alloys - are critical to the performance of many everyday products and emerging technologies.

Neo's products help to deliver the technologies of tomorrow to consumers today. The business of Neo is

organized along three segments: Magnequench, Chemicals & Oxides and Rare Metals. Neo is

headquartered in Toronto, Ontario, Canada; with corporate offices in Greenwood Village, Colorado, United

States; Singapore; and Beijing, China. Neo has a global platform that includes 8 manufacturing facilities

located in China, the United States, Germany, Canada, Estonia, Thailand and the United Kingdom, as well

as one dedicated research and development centre in Singapore. For more information, please visit

www.neomaterials.com.

Information Contacts

Irina Kuznetsova George Gretes

Director, Investor Relations Communications & Media

(416) 367-8588 ext. 7334 (416) 367-8588, ext. 7331

[email protected]

[email protected]

www.neomaterials.com