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Neo Performance Materials Reaches Settlement in European Patent Litigation

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Neo Performance Materials Reaches Settlement in European Patent Litigation

Toronto, Ontario, January 2, 2026 – Neo Performance Materials Inc. (" Neo" or the " Company") (TSX:

NEO) (OTCQX:NOPMF) announced today that its wholly owned subsidiaries, Neo Chemicals & Oxides

(Europe) Ltd., NPM Silmet OÜ and NPM C&O Europe OÜ, have entered into a settlement agreement with

Rhodia Opérations S.A.S (“Rhodia”, a wholly -owned subsidiary of the Solvay Group) 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 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 ongoing sales of its current automotive

catalyst products or materially affect its earnings.

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 i s 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 located in China, Germany, Canada, Estonia, Thailand and the United Kingdom, as

well as a dedicated research and development center 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, production capacity of the new plant, launch of new

project awards, operational expectations resulting from such project awards, revenue expectations 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 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 launch and operations of the new project platform. 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 operations including the risks of a

material adverse change in 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

Investor Requests: Media Requests:

Jonathan Baksh Vasileios Tsianos

EVP, Chief Financial Officer VP, Corporate Development

(416) 367-8588 ext. 7318 (416) 367-8588 ext. 7335

email: [email protected] email: [email protected]

Website: www.neomaterials.com