Mr. Richard Pearce reports

SOUTH STAR BATTERY METALS ANNOUNCES CLOSING OF TRANCHE 1 OF OVERSUBSCRIBED NON-BROKERED PRIVATE PLACEMENT

South Star Battery Metals Corp. has completed an initial tranche of its oversubscribed, upsized non-brokered private placement of common shares for gross proceeds of $4,907,757.80. Proceeds from the private placement will be used for accelerating exploration, development, construction activities, as well as corporate G&A (general and administrative) and general working capital requirements.

Tranche 1 of the private placement consists of issuing 6,816,323 shares priced at 72 cents per share. The shares issued pursuant to the private placement will be subject to a four-month hold period. 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. In connection with the private placement, the company paid $144,170.86 in cash and issued 125,472 shares in equity as finders' fees.

A director and an officer of the company participated in the private placement for an aggregate amount of $57,600. The transaction with the officer constitutes a related party transaction as defined under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company is relying on the exemptions under Section 5.5(a) and Section 5.7(1)(a) from the formal valuation and minority shareholder approval requirements of MI 61-101, as the fair market value of the units issued to the related party and the consideration paid by the related party under the private placement does not exceed 25 per cent of company's market capitalization, as determined in accordance with MI 61-101. The company did not file a material change report in respect of the related party transaction at least 21 days before the closing of the private placement, as the details of the participation by related party of the company were not settled until shortly prior to closing of the private placement.

About South Star Battery Metals Corp.

South Star 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 (more than 30 tonnes) has been completed. The results of the testing show that approximately 65 per cent of curium (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 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 World War and the Second World War. 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 recoveries of approximately 86 per cent. South Star is executing on its plan to create a multiasset, diversified battery metals company with near-term operations in strategic jurisdictions. South Star trades on the TSX Venture Exchange under the symbol STS and on the OTCQB under the symbol STSBF.

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 NI 43-101 and president and chief executive officer of South Star.

We seek Safe Harbor.