South Star Announces Closing of First Tranche of Non-Brokered Private Placement of Units

- NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES -

VANCOUVER, British Columbia, Oct. 10, 2025 (GLOBE NEWSWIRE) -- South Star Battery Metals Corp. (“South Star” or the “Company”) (TSXV: STS) (OTCQB: STSBF) is pleased to announce that, further to its news release dated September 30, 2025, it has closed the first tranche of its previously announced non-brokered private placement of units (the “Unit Offering”), issuing 5,521,512 units (the “Units”) at a price of C$0.15 per Unit for gross proceeds of C$828,227 (approximately US$595,847).

Each Unit consists of one common share (a “Share”) and one common share purchase warrant (a “Warrant”). Each Warrant entitles the holder to acquire one additional Share at a price of C$0.20 per Share for a period of five (5) 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 (4) months following the closing date, the closing price of the Company’s common shares on the TSX Venture Exchange (the “Exchange”) is at or above C$0.40 for ten (10) consecutive trading days, provided that the Company gives thirty (30) days’ prior notice to the holders by news release.

The securities issued under the first 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 first 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.

The Company previously announced on September 30, 2025 that certain funds directed and controlled by Mr. Tiago Cunha, Interim CEO, President and a director of the Company, agreed to complete a non-brokered private placement of convertible notes for gross proceeds of up to C$2.085 million (US$1.5 million) (the “Note Offering”). The Company will no longer be proceeding with the Note Offering and the funds have instead agreed to purchase C$2.085 million (US$1.5 million) of Units under the terms of the Unit Offering. As a result, the Company has increased the size of the Unit Offering to up to C$6,255,000 (US$4.5 million).