Mr. Richard Pearce reports

SOUTH STAR BATTERY METALS ANNOUNCES NON-BROKERED PRIVATE PLACEMENT

South Star Battery Metals Corp. intends to complete a non-brokered private placement of units at a price of 53 cents per unit to raise up to $4-million. Management expects the private placement to be fully subscribed.

Private placement

Each unit will consist of one common share of the company and one common share purchase warrant. Each warrant will entitle the holder to purchase one additional common share of the company at an exercise price of $1.25 per share for a period of five years from the date of issue. The warrants will be subject to an acceleration clause (described in more detail below).

Closing of the private placement is subject to customary closing conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. Proceeds from the private placement will be used for exploration, development, construction activities, corporate G&A (general and administrative) and general working capital requirements.

The company may pay finder's fees to eligible finders, in accordance with applicable securities laws and the policies of the TSX-V. The securities issued pursuant to the private placement will be subject to a four-month hold period. The company may, in its sole discretion, exercise an overallotment option, pursuant to which it may increase the size of the private placement by up to 15 per cent.

The acceleration clause of the warrants will provide that, if, during any period of 10 consecutive trading days between the date that is four months following the closing of the private placement and the expiry of the warrants, the daily volume-weighted average trading price of the common shares of the company on the TSX-V (or such other stock exchange where the majority of the trading volume occurs) exceeds $2.50 on each day, the company may, within 30 days of such an occurrence, give written notice to the holders of the warrants that all unexercised warrants will expire at 4 p.m. (Vancouver time) on the 30th day following the giving of such notice. Upon receipt of such notice, the holders of the warrants will have 30 days to exercise their warrants and any warrants that remain unexercised will expire.

About South Star Battery Metals Corp.

South Star Battery Metals is a Canadian battery metals project developer focused on the selective acquisition and development of near-term production projects in the Americas. South Star's Santa Cruz graphite project, located in southern Bahia, Brazil, is the first of a series of industrial and battery metals projects that will be put into production. Brazil is the second-largest graphite-producing region in the world with more than 80 years of continuous mining. Santa Cruz has at-surface mineralization in friable materials and successful large-scale pilot-plant testing (over 30 tonnes (t)) has been completed. The results of the testing show that approximately 65 per cent of Cg concentrate is plus-80 mesh with good recoveries and 95 per cent to 99 per cent Cg (graphitic carbon). With excellent infrastructure and logistics, South Star is fully financed for phase 1, and the 12-month construction and commissioning are under way. Santa Cruz will be the first new graphite production in the Americas since 1996, with phase 1 commercial production projected in Q4 2023. Phase 2 production (25,000 tonnes per year (tpy)) is partially financed and planned for 2026, while phase 3 (50,000 tpy) is scheduled for 2028.

South Star's second project in the development pipeline is strategically located in Alabama in the centre of a developing electric vehicle, aerospace and defence hub in the southeastern United States. The BamaStar project is a historic mine active during World Wars I and II. Trenching, phase 1 drilling, sampling, analysis and preliminary metallurgical testing have been completed. The testing indicates a traditional crush/grind/flotation concentration circuit that achieved grades of approximately 94 per cent to 97 per cent Cg, with approximately 86 per cent recoveries. South Star is executing on its plan to create a multiasset, diversified battery metals company with near-term operations in strategic jurisdictions.

South Star is committed to a corporate culture, project execution plan and safe operations that embrace the highest standards of ESG (environmental, social and governance) principles based on transparency, stakeholder engagement, continuing education and stewardship.

This news release has been reviewed and approved by Richard Pearce, PE, a qualified person under National Instrument 43-101, and president and chief executive officer of South Star Battery Metals.

We seek Safe Harbor.