South Star Battery Metals Announces Selection by BNDES and FINEP for Strategic Minerals Funding Program, Maiden Shipment of Flake Graphite from the Santa Cruz Mine and Operational Update

Highlights:

• South Star’s flagship graphite mine Santa Cruz was selected by Brazilian National Development Bank (“BNDES”) and Brazil’s Innovation Agency (“FINEP”) as part of the Transformation of Strategic Minerals initiative. The BNDES and FINEP partnership aims to promote investments to increase production, research and development as well as innovation in the processing of strategic minerals, such as graphite.
• The first shipment of natural flake graphite concentrates from the Santa Cruz Graphite Mine in Bahia, Brazil was shipped on June 5, 2025 to a North American client. The next orders are being prepared.
• Santa Cruz Phase 1 Operational Update.
  

VANCOUVER, British Columbia, June 16, 2025 (GLOBE NEWSWIRE) -- South Star Battery Metals Corp. (“South Star” or the “Company”) (TSXV: STS) (OTCQB: STSBF), is pleased to announce that it was selected by the R$5B (US$895M) Transformation of Strategic Minerals initiative sponsored by the BNDES and FINEP. The initiative targets increased production and transformation of minerals crucial for energy transition and decarbonization, focusing on developing supply chains for graphite, lithium, rare earth elements, and other strategic minerals in Brazil. The initiative is designed to accelerate the production and transformation of critical minerals essential for the global energy transition and decarbonization, with a strategic focus on building supply chains for priority resources.

South Star presented a work program and conceptual business plan for Santa Cruz Phase 2 and 3 expansions as well as the downstream transformation of graphite in Brazil for industrial and energy transition sectors. The Company will now submit a comprehensive business plan detailing market analysis, management, milestones, budgets, marketing strategy, operations plan, partnerships and socio-environmental impacts for increasing production with a phased, modular approach. South Star will work in partnership with BNDES and FINEP to assess the most appropriate potential financial structures for future funding, which could include credit facilities, equity participation, and grants to invest in productive capacity, research, development, and innovation (“RD&I”).