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Neo Performance Materials Hosts Prime Minister of Estonia at the New Permanent Magnet Facility in Narva

Corporate Updates

NEWS

Neo Performance Materials Hosts Prime Minister of Estonia

at the New Permanent Magnet Facility in Narva

TORONTO, Canada – May 29, 2025 - Neo Performance Materials Inc. ("Neo") (TSX: NEO) welcomed

the Prime Minister of Estonia to its new European magnet facility in Narva. The Prime Minister was received

by Greg Kroll, Neo's EVP for Magnequench, and the team responsible for equipment commissioning and

overseeing production for our automotive customers. Neo will host an opening ceremony in September 2025,

with the employees who have led this project, customers, government leaders from across the EU, senior

diplomats from supply chain partner countries, investors, and media.

Prime Minister Kristen Michal wrote on his social media:

"We will make decisions that will help Estonia be a country with convenient business operations, few

restrictions and a competitive tax system, where the industries of the future can be built. Neo Performance

Materials is a good example of where we are head ing. Neo Performance Materials is very ambitious and

positive, I wish you much success and great ideas for the future!"

Neo's EVP for Magnequench, Greg Kroll, said:

"The Prime Minister's early visit symbolizes the importance of Neo's establishment of an integrated rare earth

separation and magnetics hub in Estonia for European automotive and renewable energy supply chains. We

also welcome the commitment to continue partnering with the government to unlock more opportunities and

remove barriers for Neo's accelerated growth plan."

On time and on budget, Neo continues to achieve significant milestones in the global expansion of its

magnetics capabilities. In Phase 1 of its facility expansion, Neo successfully executed a multi-stage production

process—from raw materials to final assembly—to deliver a high-performance magnet tailored for a specific

traction motor platform. Phases 2 and 3 will continue Neo’s growth with expanded and new facilities in

Estonia and elsewhere, highlighting Neo’s advanced technical and operational strength, driven by a deeply

experienced global team.

Leveraging over 30 years of rare earth magnetics expertise and cutting -edge lab capabilities, Neo’s new

facility in Estonia marks a critical step forward in one of the most strategically crucial permanent magnet

projects in Europe and globally. This strategy aims to scale magnet manufacturing across Europe and beyond,

advancing Neo’s mission to build resilient, parallel global supply chains for rare earth magnetics and other

critical materials, serving rapidly accelerating markets.

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, 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 & 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

manufacturing facilities in Canada, China, Estonia, Germany, Thailand and the United Kingdom, as well as

a dedicated research and development centre in Singapore.

For more information, please visit www.neomaterials.com.

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", "would", "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 completion of construction and commissioning and

launch of operations of the facility in Narva; integration of operations of the new facility in Narva, Estonia

and Neo's rare earth separation facility in Sillamäe, Estonia ; and other 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 is 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 negotiation and drafting of a definitive offtake agreement and the terms and conditions

of such agreement. A number of factors could cause actual results to differ materially from those anticipated

by the Company , including but not limited to the risks and uncertainties inherent in the nature of the

Transaction, including the risks of a material adverse change to 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.

Information Contacts

Irina Kuznetsova Vasileios Tsianos

Investor Relations Media Requests

(416) 367-8588 ext. 7334 (416) 367-8588 ext. 7335

[email protected]

[email protected]

Website: www.neomaterials.com