Estonia Facility To Produce 2000 Metric Tons Of Magnet Blocks Annually

Neo Performance Materials Builds First European Plant for Rare Earth Magnets

Estonia Facility to Produce 2,000 Metric Tons of Magnet Blocks Annually

Key Suppliers Positioned for EV Growth and ICE Transition

Toronto, Canada – October 19, 2023 – Neo Performance Materials Inc. (TSX: NEO) ("Neo" or the "Company") is proud to announce that its wholly-owned subsidiary, Magnequench Sintered Magnets, has broken ground on a new manufacturing facility in Estonia. The facility will produce 2,000 metric tons of magnet block per year in Phase 1, marking a significant milestone for European manufacturing of rare earth magnets.

The plant will be the first of its kind in Europe to produce permanent magnets from rare earths, essential components for electric vehicles (EVs) and other high-tech applications. As Tier 1 powertrain suppliers navigate the transition from internal combustion engines (ICE) to EVs, Neo's investment positions the company as a key supplier for both legacy and future technologies.

This strategic move aligns with Neo's commitment to sustainability and the growing demand for rare earth materials. The Estonia facility will utilize state-of-the-art technologies to minimize environmental impact while meeting the increasing needs of the European market. The company's expertise in rare earth processing and magnet manufacturing ensures the production of high-quality, environmentally friendly products.