Neo Performance Materials Inc. has entered in to a non-binding Memorandum of Understanding (the "MOU") with Meteoric Resources NL ("Meteoric") for offtake of 3,000 metric tonnes (MT) total rare earth oxide ("TREO") per year from Meteoric's Caldeira Project (the "Project") in Minas Gerais, Brazil, to supply Neo's magnet manufacturing plant. The MOU provides the framework for the parties to negotiate a binding commercial offtake agreement for the supply of mixed rare earth carbonate ("MREC") from the Caldeira Project. Under the contemplated offtake agreement NPM Silmet OU ("Silmet"), Neo's rare earth separation facility in Sillamae, Estonia, is expected to purchase 3,000 MT TREO per year from the Caldeira Project's initial production, and hold a right of first refusal to purchase additional material when the Caldeira Project produces more than 6,000 MT TRE O per year.

Annual offtake of 3,000 MT TREO from the Caldeira Project could supply Neo with as much as 900 MT of Nd-Pr oxide and 30 MT of Dy-Tb oxide, combined, to supply Neo's sintered rare earth permanent magnet manufacturing plant under development in nearby Narva, Estonia. Meteoric expects to obtain a construction permit by Fourth Quarter 2025 and aims to commence MREC production during the second half of 2027. The Minas Gerais region is one of larger producers of niobium, iron-ore, tantalum, lithium, vanadium and bauxite.

Offtake Agreement: The MOU outlines the general terms on which Neo is expected to, subject to final negotiations and customary conditions, enter into a binding offtake agreement for annual purchases of MREC containing 3,000 MT TREOfrom Meteoric's Caldeir Project. The term of the offtake agreement is expected to extend until Neo has purchased a total of 30,000 MT TREO, with a customary renewal provision for subsequent terms. The MOU also contemplates a right of first refusal for Neo to purchase additional MREC that Meteoric produces from the Caldeira Project in excess of 6,000 MT TREO peryear, on similar terms. The precise pricing mechanisms underpinning the offtake agreement, which is expected to be based on standard terms and conditions for such supply, remain subject to final negotiation of the binding offtake agreement.