South Star closes $828,227 first tranche of placement

Mr. Tiago Cunha reports SOUTH STAR ANNOUNCES CLOSING OF FIRST TRANCHE OF NON-BROKERED PRIVATE PLACEMENT OF UNITS Further to the news release dated Sept. 30, 2025, South Star Battery Metals Corp. has closed the first tranche of its previously announced non-brokered private placement of units, issuing 5,521,512 units at a price of 15 cents per unit, for gross proceeds of $828,227 (approximately $595,847 (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 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 remains subject to customary conditions, including the receipt of all necessary corporate and regulatory approvals, including approval of the exchange. The company previously announced on Sept. 30, 2025, that certain funds directed and controlled by Tiago Cunha, interim chief executive officer, president and a director of the company, agreed to complete a non-brokered private placement of convertible notes for gross proceeds of up to $2,085,000 ($1.5-million (U.S.)). The company will no longer be proceeding with the note offering, and the funds have instead agreed to purchase $2,085,000 ($1.5-million (U.S.)) 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 $6,255,000 ($4.5-million (U.S.)). Funds directed and controlled by Mr. Cunha purchased 1,557,912 units in the first tranche of the unit offering, resulting in Mr. Cunha having direction and control of 19.9 per cent of the company's issued and outstanding shares. The company intends to hold a shareholder meeting on or about Nov. 17, 2025, to seek approval of shareholders for Mr. Cunha 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 ($1.5-million (U.S.)) investment commitment. Insiders of the company purchased an aggregate of 2,007,912 units in the first tranche of the unit offering (including the 1,557,912 units purchased by funds directed and controlled by Mr. Cunha). 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. The company also announces that it will not be proceeding with any further tranches of the company's prior offering of units originally announced on June 4, 2025. About South Star Battery Metals Corp. South Star is a Canadian battery metal 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 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 graphite concentrate is positive 80 mesh with good recoveries and 95 per cent to 99 per cent graphitic carbon. 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, United States. The BamaStar project includes a historic mine active during the First and Second World Wars. The vertically integrated production facilities include a mine and industrial concentrator in Coosa county, 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 (discounted at 8 per cent) of $2.4-billion (U.S.) and an internal rate of return of 35 per cent, as well as an after-tax NPV discounted at 8 per cent of $1.6-billion (U.S.) with an IRR of 27 per cent. South Star has also received a $3.2-million (U.S.) grant commitment from the U.S. Department of Defence 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 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 National Instrument 43-101, chairman of South Star. We seek Safe Harbor.