NEO Battery closes non-brokered LIFE offering of units

Canada NewsWire

TORONTO , Aug. 14, 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 announce that it has closed its previously announced non-brokered private placement offering pursuant to the "listed issuer financing exemption" (the " LIFE Offering ") under Part 5A of National Instrument 45-106 – Prospectus Exemptions (" NI 45-106 "), as amended (the " Listed Issuer Financing Exemption "), as announced on August 4, 2026 and as amended on August 7, 2026.

Pursuant to the LIFE Offering, the Company issued 20,000,000 units of the Company (each, a " Unit ") at a price of $0.20 per Unit (the " Offering Price ") for aggregate gross proceeds of $4,000,000. Each Unit consists of one common share of the Company (each, a " Common Share ") and one non-transferable common share purchase warrant (each, a " Warrant "), with each Warrant entitling the holder thereof to acquire one Common Share at a price of $0.30 per Common Share for a period of 36 months from the closing date of the LIFE Offering or until August 14, 2029.

The net proceeds from the LIFE Offering are expected to be used to advance the Company's commercial battery manufacturing operations in South Korea, including the installation of additional cell assembly equipment at its 3.2-acre battery expansion factory, to advance the performance, qualification, and production of the Company's drone and robotics battery cells and packs, and for general working capital.

The Units were offered to purchasers resident in all provinces and territories of Canada pursuant to the Listed Issuer Financing Exemption and in certain offshore jurisdictions pursuant to available prospectus or registration exemptions in accordance with applicable laws. Subject to the rules and policies of the TSXV, the securities issued under the LIFE Offering are not subject to resale restrictions in accordance with applicable Canadian securities laws. The LIFE Offering remains subject to the final approval of the TSX Venture Exchange (the " TSXV ").

In connection with the LIFE Offering, the Company paid aggregate cash commissions of $25,680 and issued an aggregate of 128,400 non-transferable finder's warrants (each, a " Finder's Warrant ") to certain eligible finders. Each Finder's Warrant is exercisable to acquire one Common Share at a price of $0.20 per Common Share for a period of 36 months following the closing of the LIFE Offering. In accordance with applicable Canadian securities law, the Finder's Warrants are subject to a four-month-and-one-day hold period, which will expire on December 15, 2026.

There is an amended and restated offering document related to the LIFE Offering that can be accessed under the Company's profile at www.sedarplus.ca and on the Company's website at www.neobatterymaterials.com .

The securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the " U.S. Securities Act "), or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration under the U.S. Securities Act and all applicable state securities laws or compliance with the requirements of an applicable exemption therefrom. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.