South Star Launches First Product and Begins Production Ramp-Up at Santa Cruz Graphite Mine

South Star Battery Metals Corp. (TSXV: STS) (OTCQB: STSBF) has successfully completed commissioning at its Santa Cruz Phase 1 Graphite Mine in Bahia, Brazil, marking the start of commercial production. The first product has been packaged in a one-tonne big bag, with initial shipments of natural flake graphite concentrates expected by the end of October. The project has achieved 286,488 manhours and 678 days without a loss-time accident, making it the first new graphite production in the Americas since 1996.

As-built engineering drawings for the constructed Phase 1 process plant at Santa Cruz are in progress, covering electrical, mechanical, structural, foundations, and earthworks. A bottleneck and process optimization study is also underway to evaluate the potential for upgrading the plant's capacity. Much of the installed equipment consists of standard, off-the-shelf units that are oversized for current throughput. This study will assess what upgrades are necessary to achieve the estimated throughput for Phase 2. An operational mass and water balance, along with the as-built drawings, will support the production optimization analysis, with results expected by December 2024.

Richard Pearce, President and CEO of South Star, announced the start of commercial production after a 14-year journey. The company is poised to expand to 50,000 tonnes per year of graphite concentrate to meet growing demand. Pearce highlighted the strategic value of their Tier 1 assets and the quality of their natural flake graphite, emphasizing ongoing negotiations for significant agreements in 2025. He thanked the team and stakeholders for their support and reaffirmed South Star's commitment to safe, profitable operations and a phased production strategy in the Americas.

Eric Allison, former CEO and current Board member of South Star, has decided not to seek reflection and will retire in October following the upcoming AGM. Allison was instrumental in the company’s early development, serving as its first CEO from July 2017 to June 2019 and contributing over seven years as a Board member. He played a key role in bringing the Bama Star Graphite Project opportunity in the USA to the company.

Richard Pearce, South Star’s current CEO, commented on Allison's retirement with respect and gratitude, acknowledging his significant insights and hard work that provided outstanding value to both management and shareholders. Pearce expressed appreciation for Allison's dedication to the company and wished him the best in his future endeavours, emphasizing that his contributions have left a lasting impact on South Star's growth and strategic direction.

South Star is a Canadian developer focused on near-term battery-metals projects in the Americas. Its Santa Cruz Graphite Project in Southern Bahia, Brazil, is the first of several planned initiatives. Brazil is the second-largest graphite producer globally, with over 80 years of mining history.

The Santa Cruz project features at-surface mineralization, with successful pilot testing showing 65% of graphite concentrate is +80 mesh and recoveries of 95%-99% graphitic carbon. Commercial production is ramping up, with first sales expected in October 2024. Phase 1 has a capacity of 12,000 tonnes per year, marking the first new graphite production in the Americas since 1996. Future phases aim for 25,000 tonnes per year in 2026 and 50,000 tonnes per year in 2028.