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South Star Battery Metals Announces Memorandum of Understanding with the University of Alabama - Alabama Mobility and Power Center to Develop Graphite Anode Materials

Partnerships & JV

South Star Battery Metals Announces Memorandum of Understanding

with the University of Alabama - Alabama Mobility and Power Center to

Develop Graphite Anode Materials

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES

Vancouver, Canada, March 04, 2025 – South Star Battery Metals Corp. (“South Star” or the “Company”) (TSXV:

STS) (OTCQB: STSBF), is pleased to announce that it has completed a Memorandum of Understanding (“MOU”)

with the University of Alabama at Tuscaloosa (“UA”) on behalf of its Alabama Mobility and Power Center (“AMP”)

to develop a binding Definitive Partnership Agreement (“Agreement”) to support a battery anode materials

program in the United States consisting of the following phases:

• R&D Development

• Pilot Demonstration

• Commercial Demonstration

• Commercial-Scale Manufacturing

South Star would be the primary supplier of natural-flake graphite concentrate (“NFGC”) in furtherance of

the Agreements objectives, and AMP ’s internal/house reference natural-flake anode graphite (“AG”)

material. The MOU establishes the conceptual framework for the Agreement and allow s for a 45-day

schedule to negotiate the definitive, binding agreement.

Richard Pearce, CEO of South Star commented, “ We are excited to announce this important strategic

initiative with our UA / AMP partners to advance a concrete, integrated solution to developing high-quality

battery anode testing , development and manufacturing expertise in the United States with world -class

expertise and facilities. UA / AMP and the State of Alabama are creating a unique critical materials

ecosystem to support the rapid advancement of a resilient, more diversified technology and battery supply

chain. South Star is honored to play a role with our partners in developing truly unique critical materials and

technology platforms essential for growth and stability in the coming decades. South Star is committed to

a partnering approach to developing these facilities with a proven, technically robust framework, a quick-

to-market strategy, and a commercially robust business plan.”

Mr. Pearce continued, “Santa Cruz, the first new graphite production in the Americas since 1996, is ramping

up commercial production in Brazil and is a fully licensed, scalable, world -class asset in a proven flake

graphite-producing district. We believe that BamaStar is one of a very select handful of flake graphite assets

in North America that is scalable, financeable, and permittable. It is a project that checks all the boxes with

strong techno-economics (See Nov. 14, 2024 Press Release), U.S Department of Defense funding (See Nov.

29, 2023 Press Release ), great support in the state, reliable power, nearby workforce, strong expansion

potential, excellent infrastructure and logistics, as well as located near numerous potential clients in the

heart of one of the most critical aerospace, defense, and automobile corridors in the contiguous United

States. We look forward to working with UA / AMP on what we believe will be a transformational initiative

essential for graphite materials and anode solutions for the industrial, defense, stationary storage and

energy transition sectors.”

# # #

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 (> 30 tonnes)

has been completed. The results of the testing show that approximately 65% of graphite concentrate is +80 mesh

with good recoveries and 95%-99% graphitic carbon (“Cg”). With excellent infrastructure and logistics, South Star

Phase 1 is ramping up commercial production in 2025 . Santa Cruz Phase 1 commercial production has a

nameplate capacity of 12,000 tpy and is the first new graphite production in the Americas since 1996. Phase 2

production (25,000 t py) is partially funded and planned for 2026, while Phase 3 (50,000 t py) is scheduled for

2028.

South Star’s second project in the development pipeline is strategically located in Alabama , U.S.A. in the center

of a developing electric -vehicle, aerospace, and defense hub in the southeastern United States. The BamaStar

Project includes a historic mine active during the First and Second World Wars. A NI 43-101 Preliminary Economic

Assessment was filed on SEDAR+ in November 2024 . Trenching, Phase 1 drilling, sampling, analysis, and

preliminary metallurgical testing have been completed. The testing included a traditional crush/grind/flotation

concentration circuit that achieved grades of approximately 94-99% Cg with approximately 90% recoveries. The

vertically integrated production facilities include a mine and industrial concentrator in Coosa County, AL and a

downstream value-add plant in Mobile, AL, which will be upgrading natural flake graphite concentrates from both

Santa Cruz and BamaStar min es. South Star is executing on its plan to create a multi -asset, diversified battery-

metals company with near -term operations in strategic jurisdictions. 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 principles, based on transparency, stakeholder engagement, ongoing education, and

stewardship. To learn more, please visit the Company website at http://www.southstarbatterymetals.com.

ABOUT UNIVERSITY OF ALABAMA - ALABAMA MOBILITY AND POWER CENTER

The Alabama Mobility and Power (AMP) Center is a public -private partnership between The University of

Alabama, Alabama Power Company, and Mercedes -Benz U.S. International, Inc. Focused on advancing battery

technology, charging infrastructure, and power delivery, the AMP Center drives re search, workforce

development, and economic growth in sustainable mobility. By fostering collaboration between industry,

academia, and government, the AMP Center is positioning Alabama as a leader in the EV ecosystem, supporting

innovation and attracting companies across the battery supply chain. To learn more, please visit AMP’s website

at https://amp.ua.edu/.

This news release has been reviewed and approved for South Star by Richard Pearce, P.E., a “Qualified Person”

under National Instrument 43-101 and President and CEO of South Star Battery Metals Corp.

On behalf of the South Star Board of Directors,

MR. RICHARD L. PEARCE,

President & Chief Executive Officer

For additional information, please contact:

South Star Investor Relations

Email: [email protected]

Phone: +1 (604) 706-0212

Website: www.southstarbatterymetals.com

Twitter: https://twitter.com/southstarbm

Facebook: https://www.facebook.com/southstarbatterymetals

LinkedIn: https://www.linkedin.com/company/southstarbatterymetals/

YouTube: South Star Battery Metals – YouTube

CAUTIONARY STATEMENT

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of

the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

FORWARD-LOOKING INFORMATION

This press release contains “forward-looking statements” within the meaning of applicable securities legislation.

Forward-looking statements relate to information that is based on assumptions of management, forecasts of

future results, and estimates of amounts not yet determinable. Any statements that express p redictions,

expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not

statements of historical fact and may be “forward-looking statements”. Forward-looking statements in this press

release include, but are not limited to statements regarding production and scaling of operations at Santa Cruz,

as well as advancing the Alabama project, and the Company’s plans and expectations.

Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or

results to differ from those reflected in the forward-looking statements, including, without limitation: risks related

to failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of

legal proceedings; political and regulatory risks associated with mining and exploration; risks related to the

maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for

delays in exploration or development activities or the completion of feasibility studies; the uncertainty of

profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity

of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential

for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future

exploration, development or mining results will not be consistent with the Company's expectations; risks related

to commodity price fluctuations; and other risks and uncertainties related to the Company's prospects, properties

and business det ailed elsewhere in the Company's disclosure record. Should one or more of these risks and

uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially

from those described in forward-looking statements. Investors are cautioned against attributing undue certainty

to forward -looking statements. These forward -looking statements are made as of the date hereof and the

Company does not assume any obligation to update or revise them to reflect new events or circumstances. Actual

events or results could differ materially from the Company's expectations or projections.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the

United States. The securities have not been and will not be registered under the United States Securities Act of

1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within

the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities

laws or an exemption from such registration is available.