South Star Mining Corp. Announces an Additional Five‐Year Offtake Agreement and Conversion of Convertible Debt
NEWS RELEASE
South Star Mining Corp. Announces an Additional Five‐Year Offtake Agreement and
Conversion of Convertible Debt
Toronto, ON, May 12, 2021 – South Star Mining Corp. (“South Star” or “the Company”) (TSX‐V: STS) (OTCQB:
STSBF) is pleased to announce that it has entered into a Memorandum of Understanding (“Agreement”) for
20,000 tonnes of natural flake graphite concentrate over a period of five years for the Santa Cruz Graphite Project
(“Project”). The strategic offtake was signed on May 10 th, 2021 with a United States industrial specialist
(“Partner”) in high‐quality graphite including coated spherical purified graphite (CSPG), downstream processing
and marketing. Terms and conditions of the Agreement are confid ential for competitive market conditions.
Richard Pearce, President and CEO of South Star, commented: “Wi th this latest offtake agreement we have the
majority of our production sold for the Phase 1 operations and a great start on Phase 2 operations. The tonnages
associated with this agreement will mainly be processed into CSP G f o r t h e g r o w i n g l i t h i u m ‐ i o n b a t t e r y ( L i B )
markets. The recent offtake agreements reinforce the high‐quality nature of the deposit that create value for our
Partners and ensure that the future of Santa Cruz is very brigh t with a diversified product line across a broad
array of market sectors. I also think the recent agreements reinforce the phased approach to production, which
underscores risk management and effective allocation of capital. This is another important achievement in
moving the Project from development into production in 2022 and then scaling it up for Phase 2 operations. Once
again, we look forward to developing a long‐term relationship with our Partners, and we are excited about having
a strong presence in the LiB market and the electrification revolution. We are quickly building this Company into
the first new operation in continuous commercial production in the Americas in more than a decade.”
Convertible Debt
The Company is also announcing the retirement and conversion of 100% of the Convertible Debenture (May 6,
2020 Press Release). Pursuant to the terms and conditions of t he agreement, 5.6M common shares have been
issued along with 5.6M warrants for the aggregate gross proceed s of C$280,000. With the conversion of the
debenture, South Star is now debt free.
About South Star Mining Corp.
South Star Mining Corp. is focused on the selective acquisition and development of near‐term production projects
in Brazil. South Star is driven to create fundamental value in the battery metals sector for clients and investors
with real projects that have strong intrinsic financial and operating metrics, and that can be profitable throughout
the resource cycle. South Star has an experienced executive team with a strong history of discovering, developing,
building and operating profitable mines in Brazil.
The Santa Cruz Graphite Project, located in Southern Bahia, is the first of a series of 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. The Project has at‐surface minerali zation in friable materials, and successful large‐
scale pilot‐plant testing (>30t) has been completed. The results of the testing show that approximately 65% of Cg
concentrate is +80 mesh with good recoveries and 95‐99% Cg. Wit h excellent infrastructure and logistics, South
Star is carrying its development plan towards Phase 1 production projected in Q4 2022, pending financing.
The Santa Cruz project is being developed in a phased approach. Phase 1 operations for the 5,000 tpy pilot plant
operations are fully licensed, and the Company is preparing to start construction in September 2021 with
commercial production targeted for Q4 2022. Phase 2 operations will represent a larger scale concentration plant
currently planned to produce between 25,000 to 30,000 tpy of concentrate. The sizing of Phase 2 plant could be
increased depending on the successes of the Phase 1 operations, ongoing development of commercial
relationships, and market conditions.
South Star is committed to a corpo rate culture, project executi on 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.southstarmining.ca.
On behalf of the Board,
Mr. Richard Pearce
Chief Executive Officer
For additional information, please contact:
CHF Capital Markets
Cathy Hume, CEO
Phone: 416‐868‐1079 x251
Email: [email protected]
Mr. Dave McMillan
Chairman
Email: [email protected]
Twitter: https://twitter.com/southstarmining
Facebook: https://www.facebook.com/southstarmining/
LinkedIn: https://www.linkedin.com/company/south‐star‐mining‐corp/
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.
This news release and the Updated Technical Report contain refe rences to inferred resources. The Report is preliminary in
nature and includes inferred mineral resources that are considered too speculative geologically to have the economic
considerations applied to them that would enable them to be categorized as mineral reserves.
FORWARD‐LOOKING INFORMATION
The information contained herein contains "forward‐looking stat ements" 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 predictions, 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 are subject to a variety of risks an d 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; r isks 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 exploratio n, development or mining resu lts 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. Ac t u a l e v e n t s o r r e s u l t s c o u l d d i f f e r m a t e r i a l l y f r o m t h e
Company's expectations or projections.