Neo Material Technologies To Acquire Recapture Metals Limited

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Neo Material Technologies To Acquire Recapture Metals Limited

Neo Material Technologies Inc. (TSX: NEM) (the “Company” or “Neo”) and privately held Recapture Metals Limited of
Peterborough, Ontario (“Recapture”) jointly announced the signing of agreements today whereby Neo will acquire 100% of all issued and outstanding shares of Recapture. The transaction is expected to close on August 31, 2009.
 Recapture produces, reclaims, refines and markets high value niche metals and their compounds which are primarily used in the wireless, LED, flat panel, solar and catalyst industries. Recapture’s current commercial product lines include gallium and indium and it is in the process of commercializing a
rhenium recycling operation. In 2008 and 2007 Recapture had revenues of Cdn$22.5 million and Cdn$24.1 million, respectively. With operations in Canada, the United States and Germany, Recapture has approximately 65
employees.
   

Under the terms of the agreements, Neo will issue 4.5 million new common shares and pay CDN$6.5 million in cash to Recapture shareholders, subject to closing adjustments. Neo will also make additional payments in cash or new
common shares, at Neo’s option, conditional upon certain agreed upon EBITDA targets for three calendar years, commencing in 2010, being met or exceeded.
 “This acquisition provides Neo with a solid platform and is a first step in our stated strategy to diversify into other complementary rare elements and specialty materials. Recapture’s strong hydrometallurgical skills in both primary production and recycling coupled with Neo’s global sales organization, technical skills and presence in Asia make a powerful combination,” said Constantine Karayannopoulos, President and CEO, of Neo Material Technologies
Inc. “On behalf of everyone at Neo, we look forward to working with our new colleagues at Recapture.”
Larry Seeley, President of Recapture, commented: “The employees of Recapture Metals Limited have built a tremendous foundation for a world class rare metals organization. The partnering with Neo will provide experience,
resources and diversification to further facilitate growth and implementation
of our long term vision.” GMP Securities L.P. acted as financial advisor to Neo on this transaction.

About Neo Material Technologies

Neo Material Technologies is a producer, processor and developer of neodymium-iron-boron magnetic powders, rare earths and zirconium based engineered materials and applications through its Magnequench and AMR Performance Materials business divisions. These innovative products are essential in many of today’s high technology products. Magnequench’s Neo powders are used to produce bonded magnets, generally used in micro motors, precision motors, sensors and other applications requiring high levels of magnetic strength, flexibility, small size and reduced weight. Rare earth and zirconium applications include catalytic converters, computers, television display panels, optical lenses, mobile phones and electronic chips. The Company is headquartered in Toronto, Canada and has approximately 1,300 employees in 15 locations, across 10 countries.

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