Neo Accelerates Advanced AI Initiatives Through Partnership with Tallinn University of Technology

Anchored by Neo's 30 years of rare-earth leadership, the TalTech partnership will support the ongoing development of AI applications for product development and process optimization

TORONTO and TALLINN, Estonia, May 7, 2026 /CNW/ - Neo Performance Materials Inc. ("Neo" or the "Company") is pleased to announce a multi-year research partnership with Tallinn University of Technology ("TalTech"), further advancing its initiative to embed artificial intelligence ("AI") and machine learning ("ML") across its product development and manufacturing operations. Backed by 30 years of leadership in magnetics and advanced industrial materials, a deep proprietary operations dataset, and an established in-house data science team, Neo's AI implementation is translating process expertise into measurable improvements in end products and manufacturing processes.

"Neo has extensive meaningful magnet and rare earth separation operating data, and a dedicated in-house data science team, which gives us a foundation few in our industry can match." said Rahim Suleman, President and Chief Executive Officer of Neo Performance Materials. "By embedding AI across our product development and manufacturing operations, and partnering with research institutions such as TalTech, we are translating decades of rare-earth expertise and real-world data into tangible outcomes, primarily in permanent-magnet manufacturing and rare-earth separation. These advances support more efficient processing and a stronger, more resilient rare earth supply chain."

Neo's core success factors for AI include (a) a defined opportunity to deploy AI, (b) deep historical production and quality data, (c) industry-leading domain expertise in rare earth chemistry, physics and magnetics, (d) in-house data scientists and (e) integrated infrastructure that enables AI systems to learn and create live feedback loops to fully operationalize AI within the manufacturing process.

Partnering with TalTech and leveraging their AI capabilities will drive enhancements to Neo's existing AI and ML models across its value chain. These include applications that will optimize processes, improve yield, reduce consumption of reagents, energy, and water, and enhance consistency and capability in finished-material and magnetic performance. It will also provide opportunities to further develop and operationalize new grades of magnets. Beyond the technical scope, this partnership will integrate joint curricula, internships and student engagement initiatives designed to attract the sector's next generation of talent.

"At TalTech, we focus on turning cutting-edge research into real industrial impact," said Krister Kalda, Head of Industry Cooperation, Taltech. "Through our Centre for Intelligent Systems, we work with AI and machine learning in a practical way, from handling complex industrial data to improving and optimizing processes in real time. Working with Neo Performance Materials gives us a strong opportunity to apply this in a high-value manufacturing setting, where improvements in efficiency, yield, and resource-use translate directly into competitive advantage and more resilient supply chains."

About Neo Performance Materials

Neo manufactures the building blocks of many modern technologies that enhance efficiency and sustainability. Neo's advanced industrial materials – magnetic powders, rare earth magnets, magnetic assemblies, specialty chemicals, metals, and alloys – are critical to the performance of many everyday products and emerging technologies. Neo's products fast-forward technologies for the net-zero transition. The business of Neo is organized along three segments: Magnequench, Chemicals & Oxides and Rare Metals. Neo is headquartered in Toronto, Ontario, Canada; with corporate offices in Greenwood Village, Colorado, United States; Singapore; and Beijing, China. Neo has a global platform that includes manufacturing facilities located in Canada, Estonia, China, Germany, Thailand and the United Kingdom, as well as a dedicated research and development center in Singapore.

For more information, please visit www.neomaterials.com.

About Tallinn University of Technology

Creators of digital innovations, Tallinn University of Technology (TalTech) is leading Estonia and the world towards a sustainable digital future with confidence. As a leader in science, technology, and innovation, the school maintains ongoing interactions with universities worldwide, bringing together scientists, students, and entrepreneurs. Of the nearly 10,000 enrolled students, approximately 11% come from more than 100 countries worldwide.

The university-wide initiative TalTech Digital implements new digital solutions for studying, research, and the entire university campus. Research priorities at TalTech focus also on sustainable and resource efficient technologies, which development is carried out within in national Centre of Excellence in Circular Economy SOURCES. The Smart City Centre of Excellence, established in 2020, brings top expertise in smart urban space solutions to TalTech and will make the University's compact and beautiful campus one of the smartest campuses in the world in the near future.

Cautionary Statements Regarding Forward Looking Statements

This news release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, but not always, forward-looking information and statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negative connotation thereof 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" or the negative connotation thereof. Specific forward-looking statements in this news release include, but are not limited to, the negotiation and drafting of a definitive offtake agreement and the terms and conditions of such agreement and other matters relating thereto. In making the forward-looking information in this news release, the Company has applied certain factors and assumptions that are based on its current beliefs as well as assumptions made by and information currently available to the Company. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking information in this release is subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking information. 

There are many risk factors associated with the negotiation and drafting of a definitive offtake agreement and the terms and conditions of such agreement. A number of factors could cause actual results to differ materially from those anticipated by the Company, including but not limited to the risks and uncertainties inherent in the nature of the Transaction, including the risks of a material adverse change to the Company's assets or revenues, or risks of unknown liabilities that may arise.

Readers are cautioned not to place undue reliance on forward-looking information. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by law. For more information on Neo, investors should review Neo's continuous disclosure filings that are available under Neo's profile at www.sedarplus.ca.

Website: www.neomaterials.com

SOURCE Neo Performance Materials, Inc.

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