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– NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES –
South Star Battery Metals Corp. (” South Star ” or the ” Firm “) (TSXV: STS,OTC:STSBF) (OTCQB: STSBF) is happy to announce that, additional to its information releases dated September 30, 2025 and October 10, 2025, it has closed the second tranche of its beforehand introduced non-brokered non-public placement of models (the ” Unit Providing “), issuing 16,214,234 models (the ” Items “) at a worth of C$0.15 per Unit for gross proceeds of C$2,432,135 (roughly US$1,749,737).
Every Unit consists of 1 widespread share (a ” Share “) and one widespread share buy warrant (a ” Warrant “). Every Warrant entitles the holder to amass one further Share at a worth of C$0.20 per Share for a interval of 5 (5) years from the cut-off date, topic to acceleration. The expiry date of the Warrants could also be accelerated, on the choice of the Firm, if at any time after 4 (4) months following the cut-off date, the closing worth of the Firm’s widespread shares on the TSX Enterprise Alternate (the “Alternate”) is at or above C$0.40 for ten (10) consecutive buying and selling days, supplied that the Firm offers thirty (30) days’ prior discover to the holders by information launch.
The securities issued below the second tranche of the Unit Providing are topic to a statutory maintain interval of 4 months and in the future from the date of issuance in accordance with relevant securities legal guidelines. Internet proceeds from the Unit Providing might be used for exploration and improvement actions, normal and administrative bills, and dealing capital. The second tranche of the Unit Providing stays topic to ultimate approval of the Alternate.
The Firm anticipates closing a number of further tranches of the Unit Providing within the coming weeks, the closing of which stay topic to customary circumstances, together with the receipt of all obligatory company and regulatory approvals, together with approval of the Alternate.
Together with the primary tranche closed on October 10, 2025, the Firm has raised complete gross proceeds of C$3,260,362 (roughly US$2,345,584) below the Unit Providing.
In reference to this second tranche, the Firm paid combination finder’s charges of C$10,530 (roughly US$7,576) in money.
The Firm intends to carry a shareholder assembly on or about November 17, 2025 to hunt approval of shareholders for Mr. Tiago Cunha, the interim Chief Govt Officer and a director of Firm to turn into a management individual of the Firm in accordance with the necessities of the Alternate. Topic to and upon receipt of such shareholder approval, the funds directed and managed by Mr. Tiago Cunha will full the acquisition of an extra 12,342,088 Items, representing the stability of their C$2,085,000 (roughly US$1.5 million) funding dedication.
Insiders of the Firm bought an combination of 4,226,667 Items within the second tranche of the Unit Providing. Such insider participation constitutes a “associated get together transaction” below Multilateral Instrument 61-101 – Safety of Minority Safety Holders in Particular Transactions (” MI 61-101 “). The Firm is counting on exemptions from the formal valuation and minority shareholder approval necessities of MI 61-101 pursuant to sections 5.5(a) and 5.7(1)(a) thereof, because the truthful market worth of the securities subscribed for doesn’t exceed 25% of the Firm’s market capitalization.
This information launch doesn’t represent a proposal to promote or a solicitation of a proposal to purchase any of the securities in the USA. The securities haven’t been and won’t be registered below the USA Securities Act of 1933, as amended (the ” U.S. Securities Act “) or any state securities legal guidelines and is probably not supplied or offered inside the USA or to U.S. Individuals except registered below the U.S. Securities Act and relevant state securities legal guidelines or an exemption from such registration is on the market.
ABOUT South Star Battery Metals CORP.
South Star is a Canadian battery-metals undertaking developer centered on the selective acquisition and improvement of near-term manufacturing tasks within the Americas. South Star’s Santa Cruz Graphite Venture, situated in Southern Bahia, Brazil is the primary of a collection of industrial- and battery-metals tasks that might be put into manufacturing. Brazil is the second-largest graphite- producing area on the planet with greater than 80 years of steady mining. Santa Cruz has at-surface mineralization in friable supplies, and profitable large-scale pilot-plant testing (> 30 tonnes) has been accomplished. The outcomes of the testing present that roughly 65% of graphite focus is +80 mesh with good recoveries and 95%-99% graphitic carbon (Cg). With wonderful infrastructure and logistics, South Star Section 1 is ramping up business manufacturing with first gross sales shipped in Might 2025. Santa Cruz is the primary new graphite manufacturing within the Americas since 1996.
South Star’s second undertaking within the improvement pipeline is strategically situated within the middle of a creating electric-vehicle, aerospace, and protection hub in Alabama, U.S.A. The BamaStar Venture features a historic mine energetic through the First and Second World Wars. The vertically built-in manufacturing services embody a mine and industrial concentrator in Coosa County, AL and a downstream value-add plant in Cellular, AL, which might be upgrading pure flake graphite concentrates from each Santa Cruz and BamaStar mines. A NI 43-101 Preliminary Financial Evaluation demonstrates robust financial outcomes with a pre-tax Internet Current Worth (“NPV8%”) of US$2.4 billion and an Inside Charge of Return (“IRR”) of 35%, in addition to an after-tax NPV8% US$1.6 billion with an IRR of 27%. South Star has additionally acquired US$3.2 million grant dedication from the US Division of Protection Title III program to advance a feasibility research on the BamaStar undertaking. South Star trades on the TSX Enterprise Alternate below the image STS, and on the OTCQB below the image STSBF.
South Star is dedicated to a company tradition, undertaking execution plan and protected operations that embrace the best requirements of ESG ideas, based mostly on transparency, stakeholder engagement, ongoing schooling, and stewardship. To be taught extra, please go to the Firm web site at http://www.southstarbatterymetals.com .
This information launch has been reviewed and accepted for South Star by Marc Leduc, P. Eng., a “Certified Individual” below Nationwide Instrument 43-101 and Chairman of South Star Battery Metals Corp.
On behalf of the South Star Board of Administrators,
MR. MARC LEDUC,
CHAIRMAN OF THE BOARD OF DIRECTORS
For added data, please contact: South Star Investor Relations
CAUTIONARY STATEMENT
Neither the TSX Enterprise Alternate nor its Regulation Providers Supplier (as that time period is outlined in insurance policies of the TSX Enterprise Alternate) accepts duty for the adequacy or accuracy of this press launch.
FORWARD-LOOKING INFORMATION
This press launch incorporates “forward-looking statements” inside the which means of relevant securities laws. Ahead-looking statements relate to data that’s based mostly on assumptions of administration, forecasts of future outcomes, and estimates of quantities not but determinable. Any statements that categorical predictions, expectations, beliefs, plans, projections, aims, assumptions or future occasions or efficiency aren’t statements of historic reality and could also be “forward-looking statements”.
Ahead-looking statements on this press launch embody, however aren’t restricted to, the completion of subsequent tranches of the Unit Providing, the anticipated gross proceeds and the usage of proceeds therefrom, the timing and receipt of regulatory approvals, and the Firm’s general technique, plans, and future expectations.
Ahead-looking statements are topic to quite a lot of dangers and uncertainties which might trigger precise occasions or outcomes to vary from these mirrored within the forward-looking statements, together with, with out limitation: dangers associated to failure to acquire enough financing on a well timed foundation and on acceptable phrases; dangers associated to the result of authorized proceedings; political and regulatory dangers related to mining and exploration; dangers associated to the upkeep of inventory trade listings; dangers associated to environmental regulation and legal responsibility; the potential for delays in exploration or improvement actions or the completion of feasibility research; the uncertainty of profitability; dangers and uncertainties regarding the interpretation of drill outcomes, the geology, grade and continuity of mineral deposits; dangers associated to the inherent uncertainty of manufacturing and price estimates and the potential for sudden prices and bills; outcomes of prefeasibility and feasibility research, and the chance that future exploration, improvement or mining outcomes won’t be according to the Firm’s expectations; dangers associated to commodity worth fluctuations; and different dangers and uncertainties associated to the Firm’s prospects, properties and enterprise detailed elsewhere within the Firm’s disclosure document. Further data on these and different danger elements might be discovered within the Firm’s steady disclosure paperwork accessible below its profile on SEDAR+ at www.sedarplus.ca .
Ought to a number of of those dangers and uncertainties materialize, or ought to underlying assumptions show incorrect, precise outcomes could fluctuate materially from these described in forward-looking statements. Traders are cautioned towards attributing undue certainty to forward-looking statements. These forward-looking statements are made as of the date hereof and the Firm doesn’t assume any obligation to replace or revise them to replicate new occasions or circumstances. Precise occasions or outcomes might differ materially from the Firm’s expectations or projections.
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