NEO Battery Materials Signs MOU with South Korean Silicon Powder Manufacturer Korea Metal Silicon Co.

Vancouver, June 11, 2021 - NEO Battery Materials Ltd. (TSXV: NBM) (OTC: NBMFF) ("NEO" or the "Company") is pleased to announce it has entered into a Memorandum of Understanding ("MOU") with South Korean silicon powder manufacturer, Korea Metal Silicon Co., Ltd ("KMS"), to pursue strategic opportunities for the advancement of low-cost, scalable silicon anodes through leveraging the developments in silicon technologies from both parties.

Under the terms of the MOU, NEO will closely engage with KMS to collaborate with the intent of pursuing solutions to remove the cost bottleneck associated with nanosilicon powders and to develop manufacturing capabilities to mass produce low-cost nanosilicon powders at a scalable and commercially viable level for NEO's proprietary silicon anodes. The agreement would help accelerate NEO's commercialization plans of its silicon anode technology.

Korea Metal Silicon Co. has developed their unique, lean manufacturing process for over 15 years to provide cost-effective silicon powders that ranges from nanosilicon for lithium-ion batteries to polysilicon for semiconductors and solar-powered equipment. KMS has been building a record of securing commercial supply contracts for its silicon powders for over 20 companies located in South Korea and Japan. Additionally, KMS is engaged in multiple joint development agreements with established South Korean and Japanese companies to develop its silicon manufacturing process.

"We are very pleased to have entered into this MOU with NEO," said Jong Oh Choi, CEO of Korea Metal Silicon. "It is a demonstration of the versatility of our nanosilicon powder and our proprietary manufacturing process which is both scalable and commercially viable. This relationship opens the door to bring cost-effective silicon anodes to the electric vehicle market."

"KMS's refined and scalable technology will expedite the development of our silicon anode technology, which will allow us to reach the next stage of innovations and enable commercialization in a shorter timeframe," said Spencer Huh, CEO of NEO. "Leveraging the unique technologies of both parties will lead to synergies that will improve battery performance and sustainability and fulfill dire industry needs."

Golden Silica Mining Work Initiation

NEO is pleased to announce the commencement of the mapping and sampling program on its two wholly owned silica projects south of Golden, British Columbia. The program should take two to three weeks with the samples sent to Bureau Veritas Minerals where they will be analyzed to confirm the percentage of silicon in the quartzite samples. The samples will be analyzed by 32 element inductively coupled plasma spectroscopy to confirm the purity of the silicon analysis.

While the field program is in process, other possible sources will be examined and staked. Based on the results of the mapping and analyses, the Company will examine the possibilities of using ground geophysics to map the strike of the quartzite units where they are covered by overburden.

NEO has also engaged with Proactiveinvestors North America Inc. ("Proactive") to provide investor relations services through increased market awareness, investor portal, and digital marketing services to the Company. The agreement is for a 13-month term for a fee of $22,500. Proactive is one of the fastest growing financial media portals in the world, providing breaking news, commentary and analysis on publicly-listed and pre-IPO businesses.

About Korea Metal Silicon Co., Ltd.

Korea Metal Silicon Co., Ltd. is a manufacturer and supplier of MG-Si powder, which is the raw material of polysilicon, special alloy, and organic silicon. The company leverages a proprietary cost-effective process to produce a wide range of silicon powder materials. KMS is devoted to continuous research to increase the product competitiveness and to supply customers with superior silicon products.

About NEO Battery Materials Ltd.

NEO Battery Materials Ltd. is a Vancouver-based resource company focused on battery metals exploration in North America. The Company is focusing on developing silicon anodes through nanocoating an ion-conductive elastomer layer, which provides improvements in capacity and efficiency over lithium-ion batteries using graphite in their anode materials. The Company intends to become a silicon anode materials supplier to the electric vehicle industry. The Company has staked new mining claims in Golden, BC, along a strike with a quartzite bed, targeting silica in the quartzites for a total of 467 hectares. For more information, please visit the Company's website at: https://www.neobatterymaterials.com/.

On behalf of the Board of Directors

Spencer Huh
President and CEO
604-697-2408
shuh@neobatterymaterials.com

This news release includes certain forward-looking statements as well as management's objectives, strategies, beliefs and intentions. Forward looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, the effectiveness and feasibility of technologies which have not yet been tested or proven on a commercial scale, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements except as required by applicable law.

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