South Star Battery Metals Announces the First Sale of Natural Flake Graphite Concentrate from its Santa Cruz Graphite Mine in Brazil
South Star Battery Metals Announces the First Sale of Natural Flake
Graphite Concentrate from its Santa Cruz Graphite Mine in Brazil
Vancouver, Canada, May 6, 2024 — South Star Battery Metals Corp. (“South Star” or the “Company”) (TSXV:
STS) (OTCQB: STSBF) is pleased to announce the execution of a binding sales agreement (the “Agreement”) for
the initial purchase of 100 tonnes of the Company’s graphite concentrate from its Santa Cruz Graphite Mine in
Brazil. The material will be shipped in five (5) industry-standard intermodal ISO 20-foot shipping containers, each
holding 20 one-tonne super sacks. South Star anticipates that initial orders will be fulfilled and delivered during
Q3 2024.
The Agreement was formally executed on May 3, 2024, with a prominent American industrial graphite customer
(the “US Client”). The US Client has also expressed interest in negotiating regular purchases, pending positive
test results for specific applications. For competitive reasons, the US Client's identity and the Agreement's specific
commercial details remain confidential.
Additionally, South Star is pleased to report that another major US graphite company has evaluated, tested and
successfully qualified Santa Cruz graphite concentrate on behalf of its leading customer, specifically qualifying
Santa Cruz graphite for a green-energy application. South Star has made significant progress qualifying its Santa
Cruz graphite concentrate with other major graphite end-users worldwide, who have undertaken extensive
product testing as part of their due diligence process for offtake agreements. The Company looks forward to
updating the market on the progress of developments with other potential customers if and when details are
finalized.
THE SANTA CRUZ GRAPHITE MINE UPDATE
South Star’s flagship Santa Cruz Graphite Mine (“Santa Cruz”) in northeastern Brazil’s Bahia state is scheduled to
complete construction of the Phase-1 Plant in June 2024. Once completed, Santa Cruz will be the first new
graphite mine in the Americas since 1996. The plant will undergo an estimated six-week commissioning process
before commencing commercial production in August 2024. Once steady-state production is reached, the current
Phase-1 Plant design can produce approximately 1,000 tonnes per month.
The upcoming drilling campaign and an NI 43-101-guided feasibility study technical report for Phase 2 at Santa
Cruz is in the final planning stages, with initial exploration commencing later this month. Environmental permits
for Phase 2 (based on a nameplate capacity of 25,000 tonnes/year) and Phase 3 (based on a nameplate capacity
of 50,000 tonnes/year) have already been approved. The definitive mining permits are in final review with Brazil’s
National Mining Agency (Agência Nacional de Mineração). The Company plans to have all permits and licenses
required for Phases 2 and 3 of development at Santa Cruz in place by the time the Phase-1 Plant is commissioned.
South Star’s commercial strategy is to initially produce high-quality graphite concentrates for various industrial
applications and sectors. Concurrently, studies and technical characterization and technical programs are
underway to advance midstream and downstream products for value-added applications –– specifically, battery-
graphite products, including specialty coated spherical purified graphite (“CSPG”) for lithium-ion (“Li-ion”) battery
applications and conductivity-enhancement products for a wide variety of commercial primary and secondary
battery chemistries –– with commercial sales planned for late 2026/early 2027.
Richard Pearce, CEO of South Star, remarked, “We are excited to see our first purchase order finalized and the
start of what we hope will be a great partnership with the US Client. As promised, our team is executing our
strategy to deliver responsible production with phased, modular plants, scalable assets in Tier-1 jurisdictions, and
a go-to-market strategy to take advantage of being one of the first movers in the Americas.”
“Santa Cruz has been in development since 2010 and has exceptional quality, crystalline graphite suitable for a
broad range of industrial and value-added applications,” said Mr. Pearce. “It is very gratifying to see this moment
finally arrive for our team, which has worked extremely hard to get us here. The next 18 months will be
transformational for South Star as we transition from a development company to a producer and look to scale
operations at a critical time for the sector. We look forward to working with great partners to bring our clients
the first new graphite production in the Americas since 1996, as well as important tangible benefits to our team,
local communities, stakeholders, and shareholders. There is much to be proud of, and thanks to all involved.”
# # #
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 graphite concentrate is +80 mesh with good recoveries and 95%-99% graphitic carbon (Cg). With excellent
infrastructure and logistics, South Star is fully funded for Phase 1, and the 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 Q3 2024. Phase 2 production (25,000 tonnes / year) is partially funded and
planned for 2026, while Phase 3 (50,000 tonnes / year) 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
includes a historic mine active during the First and Second World Wars. An NI 43-101 guided technical report with
the maiden resource estimate has been filed on SEDAR. 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 94-97% 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]
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 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 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.