South Star Announces Santa Cruz Operational Update; First Shipment of Graphite Shipped

Executive Summary

• South Star Battery Metals announced May operational results and continued ramp-up at its Santa Cruz graphite plant in Brazil, marking a transition to a continuous 24-hour operational cycle.
• The company reported substantial throughput increases, processing approximately 5,136 tonnes of ROM ore since restart and producing ~25 tonnes of graphite concentrate with grades up to 97% carbon.
• Near-term objectives focus on stabilizing filtration, optimizing the grinding circuit, and scaling production to meet the technical report target of 5,000 tonnes per annum (tpa) of graphite concentrate.

Key Details

• Operational Milestones: Commissioning completed in the first week of May; plant transitioned from a 9-hour single shift to a continuous 24-hour operational cycle; newly hired employees completed training and assumed permanent production roles; first graphite concentrate shipment prepared.
• Throughput Metrics: April 2026 ROM feed: 1,337.5 tonnes; May 2026 ROM feed: 3,798.5 tonnes; Total ROM ore processed since restart: ~5,136 tonnes; Total graphite concentrate produced: ~25 tonnes.
• Product Quality: Graphite concentrate grades achieved up to 97% carbon during the first month of startup.
• Process Optimization: Quality control and process engineering teams now generating reliable operating data across the full process circuit (feed, process streams, final products, tailings); modifications to the plant feed and front-end processing successfully stabilized the downstream process.
• Near-Term Objectives: Fine-tune filter press to determine optimal filter cloth for stable filtration; install already-purchased balls and rods in the grinding circuit to improve graphite liberation from gangue; adjust and monitor plant to reach 5,000 tonnes of graphite concentrate production per year (Years 1-3 goal per technical report filed with ANM, the Brazilian mining regulatory agency).
• Management: Tiago Cunha serves as Interim CEO; Rogerio Barcellos serves as COO.

Notable Quotes

• Tiago Cunha, Interim CEO: “Our team, led by COO Rogerio Barcellos, has delivered an exceptional 2 months of operational results. The plant is being monitored regularly and consistently in order to attain a production capacity of 5,000 tpa of graphite concentrate. The early indications show positive results thus far.”