Neo Material Technologies Signs Development Agreement for Brazilian Rare Earth Deposit

TORONTO, April 15 /CNW/ - Neo Material Technologies Inc. (TSX: NEM.TO) (the "Company" or "Neo") announced today that it has signed an agreement with Mineracao Taboca S.A. ("Taboca"), the Brazilian-based tin mining and processing subsidiary of Minsur S.A., the Peruvian privately owned mining company.

Under the terms of the agreement, Neo will have exclusive access for two years to Taboca's Pitinga tin mine located in the State of Amazonas, Brazil for the purpose of investigating the potential to commercially produce a heavy rare earth concentrate. Pitinga produces primarily a tin (cassiterite) concentrate as well as a niobium/tantalum (columbite/tantalite) ferro alloy. Based upon work done to date by Taboca and Neo, the tailings that have been produced and accumulated at the mine as well as the yet-to-be-mined resource, appear to contain attractive quantities, concentrations and distribution of heavy rare earths. In addition to a sampling program throughout the resource, the project will aim to determine the optimal process to produce a commercial rare earth concentrate, suitable for further processing by standard rare earth separation/purification plants. The sampling and drilling operations will provide material for an extensive ore beneficiation and hydrometallurgical testing program.

Early indications are that appreciable and possibly commercially attractive concentrations of heavy rare earths in the form of xenotime, and possibly other mineral forms, exist in the tailings and/or the reserves. Xenotime is a heavy mineral, consisting of predominantly yttrium phosphate but also containing other heavy rare earths. Heavy rare earths typically command higher prices than light rare earth elements, and are in higher demand, in applications such as energy efficient lighting, display panels, electronic ceramic chips, and high performance magnets for hybrid electric vehicle motors. In addition, as part of the agreement, Taboca has granted Neo a right of first refusal for the commercialization of the Pitinga rare earths.

"This development is in line with our strategy to diversify our access to key raw materials and meets a number of Neo's criteria and objectives in our search to secure additional sources of rare earths. In addition to its current products, Pitinga could also incrementally produce concentrates of heavy rare earths on a by-product basis. One of the exciting aspects of what we have identified so far is that this resource is unusually rich in dysprosium and terbium, two very important, rare and high value heavy rare earth elements." noted Constantine Karayannopoulos, President and CEO. "We look forward to working closely with Taboca in continuing our joint efforts to commercialize the Pitinga rare earths resource."

About Neo Material Technologies

Neo Material Technologies is a producer, processor and developer of neodymium-iron-boron magnetic powders ("Neo 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 in the production of bonded magnets for 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.

Forward Looking Statements

From time to time, the Company may publish forward-looking statements relating to such matters as expected financial performance, business prospects, technological developments, and development activities and like matters. These statements involve risk and uncertainties, including but not limited to the risk factors previously described. Actual results could differ materially from those projected as a result of these risks and should not be relied upon as a prediction of future events. Neo Material Technologies Inc. undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events.

Contacts

Michael Doolan
Chief Financial Officer
(416) 367-8588 ext.335
Website: www.neomaterials.com
e-mail: info@neomaterials.com

Ali Mahdavi
Investor Relations
(416) 962-3300 ext. 225
e-mail: amahdavi@neomaterials.com