Mr. Marc Leduc reports

SOUTH STAR ANNOUNCES CLOSING OF SECOND TRANCHE OF NON-BROKERED PRIVATE PLACEMENT OF UNITS

South Star Battery Metals Corp., further to its news releases dated Sept. 30, 2025, and Oct. 10, 2025, has closed the second tranche of its previously announced non-brokered private placement of units, issuing 16,214,234 units at a price of 15 Canadian cents per unit for gross proceeds of $2,432,135 (Canadian) (approximately $1,749,737 (U.S.).

Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to acquire one additional share at a price of 20 cents per share for a period of five years from the closing date, subject to acceleration. The expiry date of the warrants may be accelerated, at the option of the company, if at any time after four months following the closing date, the closing price of the company's common shares on the TSX Venture Exchange is at or above 40 cents for 10 consecutive trading days, provided that the company gives 30 days of prior notice to the holders by news release.

The securities issued under the second tranche of the unit offering are subject to a statutory hold period of four months and one day from the date of issuance in accordance with applicable securities laws. Net proceeds from the unit offering will be used for exploration and development activities, general and administrative expenses, and working capital. The second tranche of the unit offering remains subject to final approval of the exchange.

The company anticipates closing one or more additional tranches of the unit offering in the coming weeks, the closing of which remain subject to customary conditions, including the receipt of all necessary corporate and regulatory approvals, including approval of the exchange.

Including the first tranche closed on Oct. 10, 2025, the company has raised total gross proceeds of $3,260,362 (Canadian) (approximately $2,345,584 (U.S.)) under the unit offering.

In connection with this second tranche, the company paid aggregate finders' fees of $10,530 (Canadian) (approximately $7,576 (U.S.)) in cash.

The company intends to hold a shareholders meeting on or about Nov. 17, 2025, to seek approval of shareholders for Tiago Cunha, the interim chief executive officer and a director of company, to become a control person of the company in accordance with the requirements of the exchange. Subject to and upon receipt of such shareholder approval, the funds directed and controlled by Mr. Cunha will complete the purchase of an additional 12,342,088 units, representing the balance of their $2,085,000 (Canadian) (approximately $1.5-million (U.S.)) investment commitment.

Insiders of the company purchased an aggregate of 4,226,667 units in the second tranche of the unit offering. Such insider participation constitutes a related party transaction under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company is relying on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to sections 5.5(a) and 5.7(1)(a) thereof, as the fair market value of the securities subscribed for does not exceed 25 per cent of the company's market capitalization.

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 graphite concentrate is plus-80 mesh with good recoveries and 95 per cent to 99 per cent graphitic carbon (Cg). With excellent infrastructure and logistics, South Star phase 1 is ramping up commercial production, with first sales shipped in May, 2025. Santa Cruz is the first new graphite production in the Americas since 1996.

South Star's second project in the development pipeline is strategically located in the centre of a developing electric vehicle, aerospace and defence hub in Alabama. The BamaStar project includes a historic mine active during the First World War and Second World War. The vertically integrated production facilities include a mine and industrial concentrator in Coosa county in Alabama and a downstream value-add plant in Mobile, Ala., which will be upgrading natural flake graphite concentrates from both Santa Cruz and BamaStar mines. A National Instrument 43-101 preliminary economic assessment demonstrates strong economic results with a pretax net present value (NPV) (8 per cent) of $2.4-billion (U.S.) and an internal rate of return (IRR) of 35 per cent, as well as an after-tax NPV (8 per cent) of $1.6-billion (U.S.) with an IRR of 27 per cent. South Star has also received $3.2-million (U.S.) grant commitment from the U.S. Department of Defense Title III program to advance a feasibility study on the BamaStar project. 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 for South Star by Marc Leduc, PEng, a qualified person under NI 43-101 and chairman of South Star.

We seek Safe Harbor.