South Star Battery Metals Announces Santa Cruz Graphite Mine Phase 1 Construction and Licensing Update
{00030678:1}
NEWS RELEASE
South Star Battery Metals Announces Santa Cruz Graphite Mine Phase 1 Construction
and Licensing Update
Highlights:
• Santa Cruz Phase 1 construction has zero lost time accidents through end of July.
• Santa Cruz Phase 1 construction is on budget and on schedule with commercial production planned for
the EOY 2023.
• All main construction contracts have been executed.
• Overall construction advance at 68% complete.
• Manufacturing of equipment at 80% complete.
• Foundations & concrete work on schedule to be substantially completed in September.
• Initial comments from Brazil’s National Mining Agency for the definitive mining concessions for Santa
Cruz’s Phases 1, 2 & 3 have been received & responses returned.
• The biannual environmental condition precedent report associated with Santa Cruz’s environmental
license has been submitted.
Vancouver, Canada, August 09, 2023 – South Star Battery Metals Corp. (“South Star” or the “Company”) (TSXV:
STS) (OTCQB: STSBF), is pleased to announce a Phase 1 construction update through the end of July for the
Company’s flagship Santa Cruz Graphite Mine in Bahia Brazil, as well as providing a permitting and licensing
update for Phases 2 and 3 operations.
Richard Pearce, CEO of South Star commented, “We are extremely pleased with the construction progress through
the end July on the Santa Cruz Phase 1 plant and mine installations . The build continues on budget and on
schedule, and we are very proud of our ongoing safety record. The team will continue to work hard and focus on
our ongoing commitment to safe, responsible operations. Significant progress has been made on the concrete and
foundation work, which should be substantially completed in next couple weeks. Equipment manufacturing is on
schedule and should be largely wrapped up in next 6 weeks, with all major equipment delivered to the mine. The
electrical and mechanical contractor is in the process of mobilizing. We are firmly on track to be commissioning
Santa Cruz in November and starting commercial production by EOY 2023. Notably, the start of commercial
production at Santa Cruz will be a significant milestone achievement marking the first new graphite producer in
the Americas since 1996. Additionally, our BamaStar projected is expected to commence vertically integrated
production in 2027.”
Santa Cruz Construction and Licensing Update
Construction through the end of July 2023 is on schedule and on budget for Phase 1 commercial production
planned for the EOY 2023. South Star’s Q3 2023 primary work programs include:
• Civil construction, foundations, and retention walls for the plant area;
• Structural, electrical and mechanical assemblies;
• Electrical substation and internal electrical distribution network;
• Laboratory, cafeteria, changing rooms, warehouse, shops and other appurtenant support structures; and
{00030678:1}
• Delivery of 100% of the major equipment.
Initial comments from Brazil’s National Mining Agency have been received and responded to for the majority of
the final mining concessions incorporating a phased approach to Phases 1, 2 and 3 and up to 50,000 tonnes per
year of concentrate production. The biannual condition precedents report associated with Santa Cruz’s
environmental license has also been submitted to the environmental regulatory agency . The Company expects
to receive the definitive mining licenses and environmental permits for Phases 1, 2 and 3 in early Q1 2024.
ABOUT SOUTH STAR BATTERY METALS CORP
South Star Battery Metals Corp. 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 Cg concentrate is +80 mes h with good recoveries and 95% -99% Cg. With excellent infrastructure and
logistics, South Star is fully funded for Phase 1, and the 12-month construction and commissioning are underway.
Santa Cruz will be the first new graphite production in the Americas since 1996 with Phase 1 commercial
production projected in Q4 2023. Phase 2 production (25,000 tpa) is partially funded and planned for 2026, while
Phase 3 (50,000 tpa) is scheduled for 2028.
South Star’s second project in the development pipeline is strategically located in Alabama in the center of a
developing electric vehicle, aerospace, and defense hub in the southeastern United States. The BamaStar Project
is a historic mine active during World Wars I & II. A NI43-101 technical report with the maiden resource estimate
has been filed on S EDAR. Trenching, phase 1 drilling, sampling, analysis, and preliminary metallurgic al testing
have been completed. The testing indicates a traditional crush/grind/flotation concentration circuit that achieved
grades of approximately 9 4-97% Cg with approximately 86% recoveries. 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.
This news release has been reviewed and approved 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 Board,
MR. RICHARD PEARCE
Chief Executive Officer
For additional information, please contact:
South Star Investor Relations
Email: [email protected]
+1 (604) 706-0212
{00030678:1}
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 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, moving Santa Cruz into production and scaling
operations 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 detailed 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 forw ard-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.