dalesonnenbe
A very sad outcome. As you've probably learned by now if you've done some independent research, Alberta Spruces can be damaged by neem oil. They are also susceptible to spruce mites, fatal if left unchecked. Several sites say not to use neem oil on spruce, yet reputable agriculture/educational websites recommend using neem oil to combat Spruce Spider mites. What a dilemma.
Luckily, your state has a notable resource, Purdue University. Contact their agriculture extension service as soon as you can
https://extension.purdue.edu/a...
Meanwhile, I suggest frequently spraying the tree with a strong blast of water, which is recommended for mite control and might help dilute the effect of the neem. I've never read about any product that will counteract neem oil damage... you may have to just wait and hope for the best. Given how slowly dwarf Alberta spruce trees grow, it might take a long time to see improvement.
Here is some relevant reading material for you, none of which advises whether your tree will survive, but might give you some advice going forward. Good luck.
https://www.missouribotanicalg...
https://www.pennlive.com/garde....
https://mortonarb.org/plant-an....
https://extension.unr.edu/publ...