SOUTH STAR BTTEY METALS - STSBF STOCK NEWS

South Star Battery Metals has completed the second tranche of its non-brokered private placement, raising US$1,312,528. Combined with Tranche 1, total gross proceeds reach US$2,120,550.55. The placement consists of 3,052,390 Units at US$0.43 per unit, each including one common share and one purchase warrant exercisable at US$0.89 for 5 years. Insiders participated for US$812,528. Proceeds will fund exploration, development, production activities, and working capital. The company paid finder's fees of US$32,813.20 and issued 61,046 common shares. Units are subject to a four-month hold period and TSX Venture Exchange approval.

South Star Battery Metals (TSXV:STS)(OTCQB:STSBF) has announced the repricing of its non-brokered private placement. The new offering consists of units priced at US$0.43 per share with one warrant at US$0.89, valid for five years, aiming to raise up to US$2.5 million. The warrants include an acceleration clause that can be triggered if the stock trades above US$1.79 for ten consecutive days. The company may increase the placement size by 15% through an over-allotment option. Proceeds will fund exploration, development, and working capital. Additionally, shareholders have approved a new 10% rolling omnibus incentive plan, with 1,605,000 stock options and 334,035 RSUs currently issued.

South Star Battery Metals announced positive PEA results for its BamaStar Graphite Project in Alabama, showing a pre-tax NPV8% of US$2.4B and IRR of 35%. The project includes a 19-year open-pit mine producing an average of 47,147 tpy of graphite concentrate, with a significant 2.4x increase in Mineral Resources containing over 1Mt of graphite. The plan involves a phased development with two concentrator phases producing 25,000 tpy each, and a value-add plant in Mobile, AL with three phases producing 20,600 tpy each of upgraded graphite products. The project demonstrated successful preliminary electrochemical testing results comparable to Tier-1 commercial products.

South Star Battery Metals has announced a non-brokered private placement of common shares at US$0.43 (C$0.60) per share, aiming to raise up to US$2.5 million (C$3.46 million). The company may increase the placement size by up to 15% through an over-allotment option. Proceeds will fund exploration, development, corporate G&A, and working capital. The private placement requires TSX Venture Exchange approval, and shares will have a four-month hold period. Insiders may participate, with exemptions from formal valuation and minority shareholder approval requirements.

South Star Battery Metals Corp. (TSXV: STS) (OTCQB: STSBF) announced positive results from a NI 43-101 Preliminary Economic Assessment (PEA) for its BamaStar Graphite Project in Alabama, USA. The project includes a mine and concentrator plant in Coosa County and a value-add upgrading plant in Mobile.

Key highlights:

• Pre-tax NPV (8%) of US$2.4B with an IRR of 35%; after-tax NPV (8%) of US$1.6B with an IRR of 27%
• 19-year open-pit mine life with average concentration production of 47,147 tonnes per year
• 2.4x increase in Mineral Resource tonnage, containing over 1Mt of graphite
• Phased development approach for both the concentrator and value-add plants
• Value-add plant designed to produce 61,800 tonnes per year of upgraded products, including 38,000 tpy of coated, purified, spheronized graphite (CSPG)
• Successful preliminary electrochemical testing results comparable to Tier-1 commercial CSPG products

South Star Battery Metals (TSXV:STS)(OTCQB:STSBF) has announced the completion of commissioning and start of commercial production ramp-up at its Santa Cruz Phase 1 Graphite Mine in Bahia, Brazil. Key highlights include:

1. First one-tonne product placed in bulk bag
2. Commercial production ramp-up in October with first shipments expected by month-end
3. Phase 1 construction and commissioning completed with 286,488 manhours and 678 days without a loss-time accident
4. As-builts and bottleneck/optimization engineering analysis underway to explore potential plant throughput upgrade
5. Preparation for shipping large-scale industrial samples for final qualification in Brazil and USA
6. Director Eric Allison to retire from the Board of Directors

Santa Cruz is the first new graphite production in the Americas since 1996, with South Star fully permitted to expand to 50,000 tonnes/year of graphite concentrate production.

South Star Battery Metals (TSXV:STS, OTCQB:STSBF) has successfully purified graphite from its BamaStar Graphite Project in Alabama to 99.95% fixed carbon, suitable for lithium-ion batteries and other value-add applications. The company is advancing a process for producing coated, spheronized, purified graphite (CSPG) using standard technology. These results will be included in the upcoming Preliminary Economic Assessment (PEA), due in September 2024.

South Star's strategy involves producing high-quality graphite concentrates from its Santa Cruz Graphite Mine in Brazil starting in 2024, while developing value-added products from both Santa Cruz and BamaStar, with commercial sales planned by Q4 2026. The company aims to become a vertically integrated supplier in the Americas, addressing the need for secure, diversified supply chains in the battery industry.

South Star Battery Metals (TSXV:STS)(OTCQB:STSBF) has executed a new binding commercial sales agreement for 40 tonnes of natural-flake graphite concentrate from its Santa Cruz Graphite Mine in Brazil. This follows previous sales announcements in May and August 2024. The buyer is a prominent American industrial graphite customer who has expressed interest in regular purchases pending positive test results.

The company is on schedule to commission the Santa Cruz Phase 1 Plant in Q3 2024, which will produce approximately 12,000 tonnes per annum of natural-flake graphite concentrates at steady-state. South Star plans to fulfill initial sales agreements in Q4 2024.

South Star is also advancing its BamaStar Graphite Project in Alabama, USA, with a Preliminary Economic Assessment underway. The company's long-term strategy involves developing a vertically integrated battery-graphite manufacturing plant in the United States, with a combined production of 100,000 tonnes per year of high-quality concentrates from two mines.

South Star Battery Metals Corp. (TSXV:STS)(OTCQB:STSBF) has announced a binding commercial sales agreement for 100 tonnes of graphite concentrate from its Santa Cruz Graphite Mine in Brazil. This follows the company's first sale announcement in May 2024 and comes as the Phase-1 Plant commissioning is underway. The Santa Cruz mine is set to be the first new graphite mine in the Americas this century, with a planned production of 12,000 tonnes per annum at steady-state.

The sale agreement was executed after rigorous testing and qualification of South Star's graphite, which outperformed other suppliers' products. The company is focusing on producing high-quality graphite concentrates for various industrial applications while developing value-added products like Coated Spherical Purified Graphite for battery applications, with commercial sales planned for Q4 2026.