Mr. Richard Pearce reports

SOUTH STAR BATTERY METALS ANNOUNCES 2023 POSITIVE DRILLING PROGRAM RESULTS FOR THE BAMASTAR GRAPHITE PROJECT IN COOSA COUNTY ALABAMA AND NI43-101 PRELIMINARY ECONOMIC ASSESSMENT STUDY UPDATE

South Star Battery Metals Corp. has completed its 2023 drilling campaign on its BamaStar graphite project in Coosa county, Alabama. The program was designed to test continuity and limits of mineralization in support of the upcoming National Instrument 43-101 preliminary economic assessment (PEA), scheduled for completion at the end of the first quarter of 2024. Fifteen holes totalling approximately 1,900 metres were successfully completed, and all holes at BamaStar have intercepted significant intervals of graphite mineralization.

During the drilling, several potentially promising zones were intersected.

Initial notable assay results have confirmed the prospectivity of several significant intersections based on a 1-per-cent cut-off grade (see an attached table).

Richard Pearce, chief executive officer of South Star, said: "Our 2023 drilling campaign was extremely successful, and every hole has significant intervals with graphite mineralization. We tested controls and limits at depth, across the orebody as well as along strike. We discovered a significant deeper mineralized package below what we had previously drilled, and there are several holes that ended in mineralization. We are open at depth and in both directions along strike. These results will be incorporated into an updated resource definition as part of our upcoming PEA scheduled for March, 2024, and this deliverable should complete our 75-per-cent earn-in requirements on the properties. We are also on schedule to complete our feasibility study for Santa Cruz mine, incorporating phase 3 (50,000 tonnes per annum of concentrates) by end of 2024. Our goals are to have two mines producing a total of 100,000 tpa of concentrates, and 60,000 to 70,000 tpa of vertically integrated graphite production, including active anode materials and other critical graphite products in the U.S. in 2027."

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 (greater than 30 tonnes) has been completed. The results of the testing show that approximately 65 per cent of carbon flake graphite (Cg) concentrate is plus-80 mesh with good recoveries and 95 per cent to 99 per cent Cg. 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 the fourth quarter of 2023. Phase 2 production (25,000 tpa) is partially financed and planned for 2026, while phase 3 (50,000 tpa) is scheduled for 2028.

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