Mr. Richard Pearce reports

SOUTH STAR BATTERY METALS ANNOUNCES UPSIZE OF NON-BROKERED PRIVATE PLACEMENT TO RAISE $7M AND EXTENSION ON CLOSING

As a result of significant demand, South Star Battery Metals Corp. has increased the size of its previously announced non-brokered private placement of common shares at a price of 72 cents per common share (see news release dated Dec. 13, 2023). South Star will now raise aggregate gross proceeds of up to $7-million.

Additionally, the TSX Venture Exchange has granted an extension to the closing time of the private placement. The extended date for final acceptance of the private placement is now Feb. 29, 2024.

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 accelerating exploration, development, construction activities, corporate G&A (general and administrative), and general working capital requirements.

The company may pay finders' 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.

Insiders may participate in the private placement, including subscriptions from related parties of the company as defined in Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The participation of insiders in the private placement is exempt from formal valuation and minority shareholder approval requirements pursuant to exemptions contained in sections 5.5(c) and 5.7(1)(a) of MI 61-101.

About South Star Battery Metals Corp

South Star Battery Metals is a Canadian battery metal project developer focused on the selective acquisition and development of near-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 metal 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 Cg (graphitic carbon) 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 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 Q1 2024. Phase 2 production (25,000 tonnes per annum) is partially financed and planned for 2026 while phase 3 (50,000 tonnes per annum) 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 the First and Second World Wars. A National Instrument 43-101 technical report with the maiden resource estimate has been filed on SEDAR+. 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 metal company with near-term operations in strategic jurisdictions. South Star trades on the TSX-V under the symbol STS and on the OTCQB under the symbol STSBF.

South Star is committed to a corporate culture, a 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.