Neo Battery increases ownership stake in Korean operating subsidiary

Canada NewsWire TORONTO , June 29, 2026 /CNW/ - NEO Battery Materials Ltd. (" NEO " or the " Company ") (TSXV: NBM) (OTC: NBMFF), a low-cost, silicon-enhanced battery manufacturer enabling high-performance capabilities for drones, robotics, and physical AI, is pleased to strategically acquire an additional 10% interest in its operating subsidiary, NEO Battery Korea Co., Ltd. (" NBM Korea "), through a Stock Purchase Agreement dated June 26, 2026, from Automobile & PCB Inc. (" A&P "), strengthening NEO's ownership of a key operating asset. Since expanding operations through the Gimje battery manufacturing facility, NBM Korea has initiated and continues to service Fortune 500 automotive and international drone and battery value chain companies, with foundry products and high-performance solutions targeted for defense and government customers. The increased ownership underscores NBM Korea's growing strategic and operational importance to the Company's interests and scale-up.

NEO has acquired 120,786 common shares of NBM Korea for an aggregate purchase price of KRW 715,542,466 (or approximately CAD 662,539) (the " Transaction "). Upon closing, NEO will directly own 1,156,102 common shares of NBM Korea, representing approximately 90% of the issued and outstanding common shares. The Transaction remains subject to customary closing conditions, including the acceptance by the TSX Venture Exchange (" TSXV ").

As NBM Korea progresses toward scaled battery manufacturing with its first and expansion factories, acquiring a greater interest at this stage, ahead of full production ramp, positions the Company and its stakeholders to capture a greater share of the value and economics created as both facilities mature. Furthermore, defense and government customers have increased scrutiny of suppliers' ownership and control during qualification and procurement reviews. Management considers consolidating ownership will reduce due diligence complexity and strengthen the Company as a controlled, traceable supplier, enabling it to compete for additional contract awards.

Simplified capital structure will further allow greater flexibility in structuring future financings at the subsidiary level, including potential participation by strategic partners and government-linked investors. Pursuant to TSXV Policy 1.1, A&P is considered a Non-Arm's Length Party with a board member in NBM Korea and held 258,828 common shares of NBM Korea prior to the Transaction. The Transaction is not subject to disinterested shareholder approval, and there are no shares, warrants, or securities of the Company issued as finder's fees.

About NEO Battery Materials Ltd . NEO Battery Materials is a Canadian-South Korean battery technology company focused on developing and producing silicon-enhanced lithium-ion batteries in drones, robotics, physical AI, electric vehicles, and energy storage systems. With a patent-protected, low-cost silicon manufacturing process, NEO Battery enables longer-running and ultra-fast charging properties 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 batteries and materials, building a secure, robust battery supply chain for Western manufacturers. 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 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.

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. SOURCE NEO Battery Materials Ltd. View original content to download multimedia: http://www.newswire.ca/en/releases/archive/June2026/29/c1121.html Canada Newswire June 29, 2026 - 2:48 PM PDT News by QuoteMedia www.quotemedia.com