NEO Battery launches FPV strike drone battery

NEO Battery Launches FPV Strike Drone or Loitering Munition Battery with High-Power & Energy Performance Canada NewsWire Launches high-power & energy FPV strike drone battery delivering 82 and 103% respective increase in energy density and flight range vs. Chinese incumbents at identical size, dimensions, and current One of first non-Chinese pouch battery alternatives for FPV strike drones with U.S. NDAA compliance for procurement eligibility into DoW and allied military entities Targets mass-market deployment at competitive price points across Ukraine, the U.S., South Korea, Japan, and governments stockpiling FPV drones for national preparedness Strategic integration into dual-use markets , including drones for precision agriculture, surveillance, and industrial logistics TORONTO , June 4, 2026 /CNW/ - NEO Battery Materials Ltd. (" NEO " or the " Company ") (TSXV: NBM) (OTC: NBMFF), a low-cost, silicon-enhanced battery developer enabling longer-running, rapid-charging batteries for drones, robotics, and electronics, is pleased to announce the official launch of its high-power and energy battery products specifically engineered for First-Person View (FPV) strike drones or loitering munitions (LMs), demonstrating a 82% increase in energy density and doubling in flight range compared to Chinese incumbents . NEO's new high-performance battery products address the significant supply deficit in the global defense battery market, offering one of the first non-Chinese pouch battery alternatives for FPV strike drones . The Company's Drone Battery Platform offers a secure supply for defense drone/robotics applications and ensures compliance with the U.S. FY2026 National Defense Authorization Act (NDAA) 1 , supporting eligibility for direct procurement into the Department of War (DoW) and allied military organizations.

Both 6.5 and 11.5 Ah products are precision-engineered to deliver improved stability and flight time under the high-intensity discharge conditions required for one-way strike drones. At identical size and dimensions, NEO's 6.5 Ah packs delivered an 82% increase in energy density compared to a commercial Chinese pack , enhancing from 129 to 235 watt-hours per kilogram (Wh/kg) or raising capacity from 3.3 to 6.5 Ah. In a simulated 250 km/h strike mission, the optimization translated into a 102.9% increase in flight range from 24.4 km to 49.5 km , given the same amperage (current delivery).

The higher-capacity 11.5 Ah variant demonstrated a stronger power profile and lower temperature rise compared to a leading silicon battery product . Based on a 10C or 6-minute discharge test, NEO's cell retained 78.8% of capacity compared to 48% for its benchmark. Ensuring cost-competitive pricing, NEO developed the product lines to meet growing demand in Ukraine and the United States, where the transition toward a non-Chinese drone supply chain has become a procurement priority.

The Company is in discussions across Ukraine, the U.S., South Korea, and Japan regarding the integration of these cells into active defense systems . Serving a dual-use purpose, the FPV strike drone battery portfolio will be further distributed to drones for precision agriculture, security/inspection, and industrial logistics. To accommodate non-military use, both products are expected to retain a cycle life of approximately 1,000 (dis)charging cycles .

Beyond these initial engagements, NEO will actively support allied governments in building strategic drone inventories. Countries including Poland, Estonia, the Czech Republic, India, and Singapore are incorporating large-scale stockpiling of FPV strike drones for their national preparedness strategies . By providing a reliable alternative to Chinese-dependent components, NEO positions itself to directly support international efforts to secure drone manufacturing and ensure national security concerns are addressed through supply chain resilience.

The FPV drone battery product lines are undergoing UN 38.3, KC, and other relevant certifications to validate transport and usage safety. These qualifications will enable export readiness and support seamless commercial integration across international defense and industrial markets. NEO is advancing a portfolio of next-generation battery technologies, including customized, premium cells with energy densities in the 300-150 Wh/kg range for high-performance, bespoke drone and aerospace platforms .

These programs position NEO to expand beyond the mass-market FPV segment into higher-value defense and aerospace applications, supporting a multi-tier growth strategy and long-term margin expansion. For this product launch and short-term strategy, however, the Company is prioritizing the mass-market segment, where competitive price points relative to Chinese products are required to enable higher-volume deployment of FPV strike drones and loitering munitions . " We are witnessing a fundamental shift in the economics of modern defense, where low-cost FPV drones can now neutralize armored vehicles or missile systems costing millions of dollars ," stated Mr. Spencer Huh, President & CEO of NEO.

" Asymmetric warfare has prompted governments and defense ministries to pivot from high-cost legacy platforms towards mass-produced, uncrewed drones and robotics. In that context, a Chinese-independent supply chain has become a strategic requirement for national security. NEO intends to reliably deliver the high-performance battery solutions that allow allies to achieve true supply chain independence and maintain their strategic advantage ." 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 AI data centers. With a patent-protected, low-cost manufacturing process, NEO Battery enables longer-running and ultra-fast 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.

For more information, please visit the Company's website at: https://www.neobatterymaterials.com/ . On Behalf of the Board of Directors Spencer Huh Director, President, and CEO Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release . This news release includes certain forward-looking statements as well as management's objectives, strategies, beliefs and intentions.

All information contained herein that is not clearly historical in nature may constitute forward-looking information. Generally, such forward-looking information can be identified notably by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", 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". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: volatile stock prices; the general global markets and economic conditions; the possibility of write-downs and impairments; the risk associated with the research and development of battery-related technologies; the risk associated with the effectiveness and feasibility of battery material, electrode, and cell technologies that have not yet been tested or proven on commercial scale or under real-world operating conditions; the risks associated with battery-related manufacturing process scale-up, including maintaining consistent material, component, and cell quality, production yields, and process reproducibility at a pilot, semi-commercial, or commercial scale; the risks associated with compatibility of existing battery chemistries, formulations, components, or designs; unforeseen risks associated with entering into and maintaining collaborations, joint ventures, partnerships, or commercial contracts with battery cell manufacturers, original equipment manufacturers, and various companies in the global battery and downstream end-user supply chain; the risks associated with the failure to develop and produce commercially viable battery-related products or that technical goals may not be achieved within expected timelines or budgets under a joint development or collaboration; the risks associated with the Company's technologies and products not meeting performance requirements or customer specifications; the risks that prototype and pilot-scale products do not advance into commercially produced products or translate into commercial orders; the risk associated with battery components and cell purchase orders and offtake supply that may not be fulfilled in full, on time, or at all as actual revenue realization depends on delivery schedules, achievement of technical milestones, and customer acceptance and validation; the risk associated with losing official vendor registration or status with existing customers; counterparty risk upon delivery of prototype and commercial products; the risks associated with constructing, completing, securing, and financing pilot, semi-commercial, and commercial battery materials, components, and cell manufacturing facilities including the Canadian and South Korean facilities; the risks associated with potential delays or increased costs with site preparation, equipment procurement and installation, and facility commissioning; the risks associated with integrating silicon anode material production, electrode manufacturing, and cell assembly within a single operational cluster or the Company's business portfolio; the risks associated with supply chain disruptions or cost fluctuations in raw materials, processing chemicals, and additive prices, impacting production costs and commercial viability; the risks associated with uninsurable risks arising during the course of research, development and production; competition faced by the Company in securing experienced personnel, contracts and sales, and financing; access to adequate infrastructure and resources to support battery materials, components, and cell research and development activities; the risks associated with changes in the technology regulatory regime governing the Company; the risks associated with the timely execution of the Company's strategies and business plans; the risks associated with the lithium-ion battery industry and end-users' demand and adoption of the Company's silicon anode technology and battery products; market adoption and integration challenges, including the difficulty of incorporating silicon anodes and silicon battery products within battery manufacturers and OEMs' systems; the risks associated with the various environmental and political regulations the Company is subject to; risks related to regulatory and permitting delays; the reliance on key personnel; liquidity risks; the risk of litigation; risk management; and other risk factors as identified in the Company's recent Financial Statements and MD&A and in recent securities filings for the Company which are available on www.sedarplus.ca .

Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued R&D and commercialization activities, no material adverse change in precursor, raw material, equipment, and relevant cost prices, development and commercialization plans to proceed in accordance with plans and such plans to achieve their stated expected outcomes, receipt of required regulatory approvals, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information.

Such forward-looking information has been provided for the purpose of assisting investors in understanding the Company's business, operations, research and development, and commercialization plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is made as of the date of this presentation, and the Company does not undertake to update such forward-looking information except in accordance with applicable securities laws.

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